Stock Code:603313
ENVIRONMENTAL SOCIALAND GOVERNANCE REPORT
Healthcare Co.,Ltd.No.999, Gaonan Road, Dingyan Town,Rugao City, Jiangsu Province, China.0513-68169482www.mlily.comCompany Name:
Address:
Tel:
Company Website:
CONTENTS
Dreams Rest on Green Water, andClouds AccompanyGreen Mountains
Hundreds of Aisans MeticulouslyCraft a Sma Way toEnsure You Enjoy a Better Night’sSleep
Future OutlookAppendixKey Peormance FormIndexesSuggestion Feedback
Product and Seice Safety and QualityInnovation-driven InitiativeSupply Chain SecurityProtection of Employees
, Rights and InterestsContribution to SocietyRural Revitalization
Response to Climate Change
Environmental Compliance ManagementEnergy UtilizationCircular EconomyPollutant EmissionsWaste DisposalWater Resource UtilizationEcosystem and Biodiversity Protection
About the RepoStatement of ChairmanAbout Healthcare Co.,Ltd.Sustainable DevelopmentGovernance
Work Together to Achieve aBetter Future
Strengthen the Leadership of Pay BuildingCorporate Governance ComplianceCompliance and Risk ManagementProtection of Shareholders’ Rights and InterestsAnti-unfair CompetitionAnti-Commercial Bribe and Anti-Corruption
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Healthcare 2024 Environmental Social And Governance RepoAbout theReport
Statement ofChairman
About Healthcare
Co.,Ltd.
SustainableDevelopmentGovernance
For the sake of convenient expression, The interpretations of the Company, its subsidiaries, and otherabbreviations are shown in the following table:
Appellation Description
About the Repo
You can view and download the electronic version of the report and obtain more company information on theShanghai Stock Exchange (https://www.sse.com.cn), cninfo (http://www.cninfo.com.cn), and the official websiteof Healthcare Co.,Ltd. (https://www.mlily.com/cn).
Access to the Report
This report is the second annual Environmental, Social and Governance (ESG) report released by HealthcareCo.,Ltd. Based on the principles of objectivity, standardization, transparency and comprehensiveness, thisreport discloses in detail the management and performance in the fields of environment, society and corporategovernance of Healthcare Co.,Ltd. in 2024.
This report takes Healthcare Co.,Ltd. as the main body and covers Healthcare Co.,Ltd. and its wholly-ownedand holding subsidiaries. Unless otherwise specified, the scope of this report is consistent with that of thecompany’s annual report.
The time range of this report is from January 1, 2024 to December 31, 2024 (hereinafter referred to as the“Reporting Period”). In order to enhance the completeness and comparability of the report, some of thecontents may appropriately trace back to previous years or have forward-looking descriptions.
The data sources used in this report include Healthcare Co.,Ltd.’s official documents, statistical reports andfinancial reports, third-party questionnaires, public documents, etc. Unless otherwise specified, all amounts inthis report are expressed in RMB. The organizational boundaries of this report are determined based on theoperational control method, which covers all companies under the actual operational control of the Company.Unless otherwise specified, the statistical caliber of the report data is consistent with the scope of thecompany’s consolidated financial statements.
?ShanghaiStock Exchange Self-Regulatory Guidelines for Listed Companies No. 14 - Sustainability Report (Trial)?Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 4 - Preparation of Sustainability Report?The “Reference” standard of the GRI Sustainability Reporting Standards (GRI Standards) issued by the GlobalReporting Initiative (GRI)?China Enterprise Reform and Development Research Association Guidelines for Sustainable DevelopmentReporting for Chinese Enterprises (CASS—ESG 6.0)?Task Force on Climate-related Financial Disclosures (TCFD) Framework?Sustainable Development Goals (SDGs) of the United Nations?Sustainability Accounting Standards Board (SASB) Standards
Introduction
Organizational Scope
Reporting Period
Data Explanation
Preparation Basis
If you have any opinions or suggestions regarding the sustainable development of our company, you arewelcome to provide feedback via Healthcare Co.,Ltd.’s telephone, email and other means, so as to help ourcompany continuously improve this report.Address: No. 999, Gaonan Road, Dingyan Town, Rugao City, Nantong City, Jiangsu ProvinceTel.: 0513-68169482Company Email: hkfoam@hkfoam.com
Feedback Form
AbbreviationFull NameHealthcare Co.,Ltd., theCompany the parent company
Healthcare Co.,Ltd.NiscoNisco Co., Ltd.Deeplant New MaterialJiangsu Deeplant New Material Technology Co., Ltd.
Shanghai HenglvShanghai Henglv Network Technology Co., Ltd.Shanghai NiscoShanghai Nisco Furniture Co., Ltd.Nantong Zero PressureNantong Zero Pressure Home Technology Co., Ltd.Shanghai MlilyShanghai Mlily Beddings Co., Ltd.Nisco (Thailand)Nisco(Thailand)Co.,Ltd
Mlily USA, IncMlily USA,IncMORMOR Furniture For Less,Inc.Matresses Dreams, S.L.MATRESSES DREAMS,S.L.Overseas production bases
The production base in South Carolina, USA, the production base inArizona, USA, the production base in Serbia, the production base in
Thailand, and the production base in Spain.
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Healthcare 2024 Environmental Social And Governance Repo
In 2024, the global economic situation is characterized by complexity and rapid shifts, presenting bothchallenges and opportunities. Against this backdrop, Healthcare Co.,Ltd. has always centered around itsmission of “committed to enhancing the deep sleep of humanity” and its beautiful vision of “making HealthcareCo.,Ltd. a respected global brand”. In the process of deepening the global layout of production capacity andimplementing the international brand strategy, Healthcare Co.,Ltd. actively integrates the ESG concept intoits corporate development while upholding Mlily’s core value of zero-pressure. By maintaining its core valueof zero-pressure, Mlily not only delivers a healthy sleep experience to consumers but also contributes to thesustainable development of society.
Healthcare Co.,Ltd. has always adhered to the concept of green development, continuallyenhancing its environmental management system and establishing a sustainablegovernance framework. We have continuously explored carbon reduction measures suchas energy conservation, emission reduction and the use of clean energy to improveenergy utilization efficiency. We have carried out pollution prevention and control in anorderly manner to ensure that the discharge of “three wastes” meets the standards. Weare committed to making green the distinct characteristic of its corporate development.
Healthcare Co.,Ltd. focuses on its core business to carry out product research anddevelopment and innovation, and continuously improves product competitiveness. In2024, MLILY was confirmed by iiMedia Consulting for three market positions: “No. 1 inNational Smart Bed Sales”, “No. 1 Brand of China’s Smart Beds”, and “Leading in NationalSmart Bed Sales”. We drive the advancement of informatization and digitalization,enhancing the Company’s operational quality and efficiency through supply chainoptimization and digital operations. We protect the legitimate rights and interests ofemployees, actively engages in social welfare, and demonstrate Healthcare Co.,Ltd.’sresponsibility and commitment with actions.
Looking back on the past, we’ve shared the trials and tribulationstogether. With our sights firmly set on the main course, we lookahead to embracing new landscapes and challenges. In 2025,Healthcare Co.,Ltd. will focus on mutual benefit and harmoniouscoexistence, safeguarding the ecological environment, fulfillingsocial responsibilities, and promoting shared development.
With green initiatives to drive development, we move forward steadily forlong-term success. This year, we practiced environmental protection andexplored the future with “carbon”.
We uphold rock-solid craftsmanship and embrace proactive responsibility.is year, we adhered to innovation-driven development and headed for thebright future.
Chairman of Healthcare Co..Ltd.
Ni Zhanggen
Statement of Chairman
Adhering to the core values of “Be Collaborative, Be Innovative,Have A Positive Attitude, and Honor Your Commitments”, we builda solid bottom-line thinking of compliance, strengthen internalrisk control, and continuously improve the Company's businessmanagement level. We strengthen our integrity defenses withzero tolerance for illegal activities such as commercial bribery,embezzlement, and unfair competition. With the concerted effortsof all employees from top to bottom, it helps the Companydevelop healthily.
We perform standardized governance to build trust and drive trustworthygrowth. is year, we adhered to compliance management and consolidatedthe foundation.
About theReport
Statement ofChairman
About Healthcare
Co.,Ltd.
SustainableDevelopmentGovernance
Healthcare Co.,Ltd. was founded in 2003 and was listed on the main board of the Shanghai Stock Exchange on October 13, 2016 (stockcode: 603313). It is one of the earliest companies in China engaged in the research and development, design, production and sales ofmemory foam home products. It is currently a major domestic manufacturer and brand of memory foam home products. The Companyadheres to the development strategy of “globalization of production capacity and internationalization of brand”. With production basesin China, Serbia, the United States, Thailand, and Spain, the globalization of its production capacity is now taking shape. The Companyhas gradually established its own brand system including “MLILY梦百合”, “0-pressure Room”, “Zero-pressure Room”, “NISCO里境” and“VALUE榀至”. Among them, the “MLILY” brand has been rated as an internationally renowned brand that is key to the cultivation anddevelopment of Jiangsu Province and a well-known cross-border e-commerce brand that is key to the cultivation and development ofJiangsu Province. The “MLILY梦百合” trademark awarded the title of a highly renowned trademark in Jiangsu Province, and the “MLILY梦百合” Zero-pressure Cotton series mattresses have been recognized as “Jiangsu Boutique Products”. In the process of developingits own brands, the Company has laid out its market with a global vision, with subsidiaries such as Shanghai MLILY, Shanghai Henglv,Nantong Zero Pressure and MLILY USA, Inc as its main business platforms. It has continuously strengthened the market promotion andsales channel construction of its own brands, including “MLILY梦百合”. Its digital marketing networkspans all over the world, and itsproducts are sold to 110 countries and regions around the world, including the United States, Japan, and the United Kingdom.
About Healthcare Co.,Ltd.
Company Pro?le
Healthcare Co.,Ltd. Organization Chart
Healthcare Co.,Ltd. Product Matrix
MLILY Memo Foam Home Furnishing Products
GeneralMeeting ofShareholdersBoard of DirectorsBoard of Supeisors
Oce of the Boardof DirectorsPresident’s Oce
Special Meeting ofIndependent Directors
Audit Committee
Compensation andAppraisal CommitteeNomination CommitteeStrategic and SustainableDevelopment Committee
Managerial Level
Audit DepamentInvestmentDepamentBrand ManagementDepamentLegalDepamentInfrastructureDepamentPublic RelationsDepamentFinancialManagement CenterHuman ResourcesCenterInformationManagement CenterTechnology R&DDepamentGlobalProduction BaseGlobalSupply ChainBusinessCenter
Lean ProductionDepamentProduct R&DDepament
Production PlanningDepament
SupplyCenter
Warehousing andLogistics Depament
Safety and EnvironmentalProtection DepamentEquipment ManagementDepament
Memo Foam Mattress
Sma MattressSma PillowZero-pressure
Function Sofa
Zero-pressure ChairSma Bed
Ordina ProductHONOR Sans
Memo PillowZero-pressure SofaSofa BedElectric BedOther Home Furnishing Products
VISION
Make MLILY a Respectable World
Brand.
Dedicated to Improving People's
Deep Sleep and Changing theChinese Practice of Using Hard
Beds
MISSIONVALUES
Be Collaborative, Be Innovative,Have A Positive Attitude, and Honor
Your Commitments.
Corporate Culture
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Healthcare 2024 Environmental Social And Governance RepoAbout theReport
Statement ofChairman
About HealthcareCo.,Ltd.
SustainableDevelopmentGovernance
2003
2012
2016
2020
Healthcare Co.,Ltd. Home,the predecessor ofHealthcare Co.,Ltd.was established.
The Mlily zero-pressureroom brand was establishedto provide decompressionand sleep-aiding rooms forbusiness travelers.
Healthcare Co.,Ltd.successfully listed on theA-share market with thestock code: 603313.
2008
MLILY 梦百合 brandwas founded with thededication to improvingpeople’s deep sleepquality.
2013
It became the designatedsupplier of “Stress ReliefProducts for the ChineseNational Go Team”.
Healthcare Co.,Ltd. acquired theAmerican home furnishing chainchannel MOR.
The Spanish production base wasestablished.
It obtained patents for non-temperature-sensitive zero-pressure cotton in manycountriesHealthcare Co.,Ltd. landed inthe United States, embarkingon its global journey ofproviding zero-pressureexperiences..
2023As a partner ofThe Three-Body The Three-BodyProblemProblem, Healthcare Co.,Ltd.have co-branded with theseries to raise awareness of theshared issue of human sleepand released the “Caretaker’sManifesto”.2021
The factory in Arizona, theUnited States, was opened.
Healthcare Co.,Ltd. establishedcooperative relationship withGerman MC.
2019
The Thailand factory and theSouth Carolina factory in theUnited States opened,which was another step forwardin the process of globalization ofHealthcare Co.,Ltd.
The South Carolina Factory in the
United States
The Thailand Factory
2022
The production base in Arizona, USA,was expanded. A new brand, NISCOsofa, was established.2024
Healthcare Co.,Ltd. held theMlily Zero-pressure SmartSeries Strategic Conference.
2014
Healthcare Co.,Ltd.officially entered thedomestic market and themarkets such as Britain,South Korea, Japan andGermany.
2017
Healthcare Co.,Ltd. acquiredMattresses Dreams.
Healthcare Co.,Ltd. enteredthe Israeli, Malaysian andThai markets.2015
Healthcare Co.,Ltd.entered the Canadian andAustralian markets.
The first overseasproduction base, theSerbia factory, officiallystarted production.
Development History
Healthcare Co.,Ltd. becamethe official global partner ofManchester United.
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Healthcare 2024 Environmental Social And Governance RepoAbout theReport
Statement ofChairman
About HealthcareCo.,Ltd.
SustainableDevelopmentGovernance
Business Layout
THE COMPANY'SSIX MAJORPRODUCTION BASES
Honors & Certi?cates
2024Home FurnishingIndustry Service
Model
2024
Jiemian NewsHomeHonor List
2024
100 ChineseHome FurnishingCompanies by Value
in 2024
2024China's MostInfluential Product
Award
2024
EO New DomesticCooltop10 Overseas
List
2024
Top 500 ChineseDomestic ConsumerBrands in 2024AwardingAuthority
AwardTime
NetEaseHomeMarch2024
Awarding
Authority
Award
Time
iiMediaResearchJuly2024
Awarding
Authority
Award
Time
EOIntelligenceSeptember2024AwardingAuthority
AwardTime
JiemianNewsAugust2024
AwardingAuthority
AwardTime
SohuHomeDecember2024
Awarding
Authority
Award
Time
iiMediaResearchDecember2024
South Carolina, USA—Production Base
Spain—Production BaseJiangsu, China—Production Base
Arizona, USA—Productio Base
Serbia—Production BaseThailand—Production Base
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Healthcare 2024 Environmental Social And Governance RepoAbout theReport
Statement ofChairman
About HealthcareCo.,Ltd.
SustainableDevelopmentGovernance
2024
China’s No. 1 Smart
Bed Brand
2024
National LeadingSales of Smart Beds
2024
No. 1 in NationalSmart Bed Sales in
2024
the Company’s cases inthe field of green andlow-carbon developmentinnovation were includedin the Top 100 Low-CarbonBrands, and the cases weredisplayed at the 2024 ChinaInternational Service TradeExchange-Carbon NeutralityAction and Corporate ESGInnovation Forum.
the Company’s 2023 ESGreport was reviewed byexperts from the SocialResponsibility Report Rat-ing Expert Committee ofthe China Corporate PublicTransparency ResearchCenter and received an “AA”rating. It also participated inthe “Industry and Informa-tion Technology Thousandsof Companies” centralizeddisplay of outstanding sus-tainable development re-ports.
ESG Honors and Recognition
In September 2024In November 2024
中国企业公众透明度研究中心社会责任报告评级专家委员会Social Responsibility Report Rating Expert Committeeof China Enterprise Public Transparency Research Center
2024年11月6日November 6, 2024
梦百合家居科技股份有限公司：
贵公司《梦百合家居科技股份有限公司2023年环境、社会及治理（ESG）报告》经过中国企业公众透明度研究中心社会责任报告评级专家委员会专家评审，获得了“AA”级评价，并参加了“工信千家”优秀可持续发展报告集中展示， 特发此证。
The ESG Reportof your company has been reviewedby the expert of the Social Responsibility Report RatingExpert Committee of the China Enterprise PublicTransparency Research Center, obtained the “AA” classevaluation, and has been displayed in the “ExcellentSustainability Reports among the One ThousandEnterprises from Industry and Information Sector”.
the Company’s case titledPolishing a New Business Cardof Climate Value and Creatingthe Art of Green Sleep wasselected into the 2024 Report onGreen Transformation Practicesof Chinese Enterprises and wasreleased at the China Corner ofthe United Nations COP29.
In November 2024
China Chengxin (CCX) Green Gold ESG Rating
Grade A-WIND ESG Rating
Grade ANote: The above ratings are for 2024 as of the end of the reporting period.
Easy-board ESG+8 value rating
Grade A
ESG Rating
AwardingAuthority
AwardTime
iiMediaResearchJanuary2025
AwardingAuthority
AwardTime
iiMediaResearchJanuary2025
AwardingAuthority
AwardTime
iiMediaResearchJanuary2025
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Healthcare 2024 Environmental Social And Governance RepoAbout the
Report
Statement of
Chairman
About HealthcareCo.,Ltd.
SustainableDevelopmentGovernance
Totalenvironmentalinvestment
Total hours ofenvironmentaltraining
Incidents of administrative penalties imposed by relevantdepartments such as ecological and environmentaldepartments due to environmental problems
RMB
2.6015
million
RMB8,449.3862
millionOperating Income
hours
Investment in R&D
Total Taxes
Total investment in both externaldonations and public welfare projects.
Performance Highlights
EconomicPerformanceGovernancePerformance
EnvironmentalPerformanceSocialPerformance
税
Total number ofauthorized patents
Social InsuranceCoverage Rate
100%
Solar powergeneration
2,936,217.10
kWh
Meetings of the Board ofDirectors Convened
The number ofannouncementsdisclosed to the public
Meetings of the Board ofSupervisors Convened
Total number ofsuppliers under in-stock management
2,044
General Meeting ofShareholders Convened
Percentage ofIndependentDirectors
42.86%
RMB
141.5059
million
RMB
260.1398
million
RMB
3.2585
million
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Healthcare 2024 Environmental Social And Governance RepoAbout theReport
Statement of
Chairman
About HealthcareCo.,Ltd.
SustainableDevelopmentGovernance
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Sustainable DevelopmentGovernanceSustainable Development SystemHealthcare Co.,Ltd. adheres to the sustainable development strategy of “Mutual Benefit and Harmony (MBH)” and deeply implementsthe concept of sustainable development. By focusing on the two goals of mutual benefit, win-win results, and harmonious symbiosis,the Company promotes sustainable development in four major aspects from the three dimensions of environment, society, andgovernance: creating greener zero-pressure products, improving more standardized corporate governance, building more harmoniouscooperative relationships, and creating more diverse social values. The Company is committed to becoming a guardian of theecological environment, a bearer of social responsibilities, and a facilitator of common development.
ESG Strategic Direction
M
Link the value symbiosis network, promote a fair, transparent and inclusive development model, conductfull due diligence in business activities, and build a community of development with employees, suppliers,customers and the community. Establish a multi-dimensional employee capability training system and aclear career advancement path.Deepen supply chain collaboration and promote sustainable development ofthe supply chain.Establish and improve compliance and risk management mechanisms, firmly oppose unfaircompetition, commercial bribery and corruption, practice business ethics, and maintain market order.
Mutual: Unifying to Achieve Dreams and WinTogether
Denition
Implement the full lifecycle management of products, apply technologies that comply with social values andlaws and regulations, and comprehensively accelerate the pace of product innovation.Create more value forsociety through innovative products and services, and enhance the social responsibility of the enterprise.Improve customer satisfaction with lean quality control, while protecting customer data and privacy andmaintaining customer trust.Drive sustainable value growth effectively give back to shareholders.We promotethe rural revitalization strategy. By providing employment opportunities and driving upstream and downstreamindustries, we aim to form an industrial synergy effect.
? Protection of employees’
rights and interests? Supply Chain Security? Communications withStakeholders? Equal Treatment of Small andMedium-Sized Enterprise? Firmly Lead with PartyBuildings
? Response to Climate Change? Environmental ComplianceManagement? Energy Utilization? Circular Economy? Pollutant Emissions
? Compliance and RiskManagement? Anti-unfair Competition? Anti-commercial Briberyand Anti-corruption? Due Diligence? Corporate GovernanceComplianceBenet: Creating Value through DiversityB
Corresponding topics
Corresponding topics
Denition
We comply with environmental laws and regulations and standards, promote the use of renewable energy sourcessuch as solar photovoltaic power, continuously optimize energy-saving and emission-reduction solutions in productionand operations, so as to achieve a dynamic balance between energy consumption and ecological capacity.Byimproving the efficiency of water resource utilization, controlling and reducing pollutant emissions, promoting therecycling of resources, and reducing waste, we aim to achieve environmental sustainable development.
Harmony:Harmonious Coexistence andShared Future.H
Denition
SDGs
SDGs
? Product and Service Safety
and Quality? Innovation-driven? Protection of Shareholders’
Rights and Interests? Technology Ethics
? Data Security andCustomer Privacy Protection? Contribution to Society? Rural Revitalization
Corresponding topicsSDGs
? Waste disposal? Water Resource Utilization? Ecosystem and Biodiversity
Protection
MBH
Sustainable Development
Strategy
HarmoniousRelationship
GreenProduct
StandardizedGovernanceSocialValue
Mutual Benetand Win-Win
| 01 | 02 | |
MBHGoals
MBH’sMeaning
"MBH" closely aligns with the MLILY brand name. "M - Mutual" corresponds to "梦" (Dream),representing "Unifying to Achieve Dreams and Win Together"; "B - Benefit" corresponds to "百"(Hundred), representing "Creating Value Through Diversity"; "H - Harmony" corresponds to "合"(Harmony), representing "Harmonious Coexistence and Shared Future".
HarmoniousCoexistenceMBHGoals
DevelopmentPromoters
of
Common
Bearers
of
Social
ResponsibilityGuardians
of
th
e
Ecological
Enviro
nment
1718
In January 2024, Healthcare Co.,Ltd. held an ESG project launch meeting and sustainable development training.The content of the meeting deeply analyzed the conceptual connotation and extension of ESG. On this basis, itelaborated in detail the external environment faced by the Company’s ESG work from seven aspects: international,domestic, investment, rating, industry development, market value and supervision. It highlighted the importance of theCompany's ESG management and emphasized that the Company’s ESG work has long-term and positive sustainablevalue. Only by effectively balancing the needs of the environment, society and stakeholders can a win-win situation beachieved for all parties. In addition, the meeting alsofocused on analyzing and discussing four aspects:
improving the ESG management system, enhancingESG management capabilities, strengthening ESGinformation disclosure, and continuously improvingESG ratings. Participants gained a clearer andmore specific understanding of the importance ofcarrying out ESG work in a systematic manner andthe implementation path. Through this meeting, theCompany’s staff gained a more comprehensive and in-depth understanding of ESG, laying a good foundationfor subsequent sustainable development work.
The Company has formulated the Sustainable Development Risk Management System and Implementation Rules of the Boardof Directors’ Strategy and Sustainable Development Committee to build a hierarchical sustainable development managementorganizational structure to ensure that the Company can effectively promote the practice of social and environmentalresponsibilities while pursuing economic benefits and achieve long-term sustainable development goals.
Due diligence is a key part of a company’s ESG management. Healthcare Co.,Ltd. regards due diligence as an important part of theCompany’s risk management system. The Company uses risk-oriented audit as a benchmark, dynamically allocates audit resourcesbased on risk maps, and identifies and manages relevant risks in the environmental, social and governance areas. It thoroughlyanalyzes the causes and impact of risks, and works with the audited units to develop actionable, quantifiable, and verifiablerectification plans based on business scenarios. The aim is to ensure that rectification responsibilities are assigned to specificpositions and individuals, and that progress is recorded throughout the process. The Company has established a special auditmanagement system to target fraud risks. It maintains a professional and prudent attitude towards risks such as fraud that damagesthe organization’s economic interests and fraud that seeks to obtain the organization’s economic interests. It conducts special auditson abnormal signs and provides dynamic warnings to the governance level. By converting audit results into management improvementactions and systematically improving the risk prevention and control system, we will safeguard the Company’s sustainable and stabledevelopment and achieve comprehensive prevention and control of ESG risks.
Effective stakeholder communication is an important basis for the Company to carry out ESG management. Based on its own industrycharacteristics and operating conditions, Healthcare Co.,Ltd. identifies key stakeholders such as government or regulatory agencies,shareholders, customers, suppliers, employees, and industry associations, and systematically collects the demands and suggestionsof all parties on sustainable development issues through questionnaires, communications and other communication methods. Takingthe protection of shareholders’ rights and interests as the core, the Company strictly implements the compliance disclosure systemfor listed companies, improves the internal control and risk management system, enhances the operational efficiency, focuses onthe strategy of enhancing long-term value, ensures the shareholders’ right to know and the right to supervise, and safeguards thelegitimate rights and interests of shareholders. For customers, suppliers, employees and other entities, the Company achieves valueresonance between corporate development and social development through targeted measures such as compliance review, supplychain collaboration, and employee welfare protection.
Due Diligence
Communications with Stakeholders
ESG Project Kick-o Meeting and Sustainable Development Training 案例CaseStudy
StakeholdersDemands and ExpectationsCommunication and ResponseGovernmentor regulatory
agencies
? Comply with laws and regulations? Tax contribution? Environmental compliance management? Maintain fair competition? See regional economic development
? Run the business legally? Pay taxes in full according to law? Environmental monitoring and testing? Build a compliance prevention system? Promote local employmentShareholders
? Information disclosure and transparency? Protect Shareholders’ rights and interests? Increase the Company’s market value
? Disclose information in accordance with the law? Strengthen business management? Standardize market value management
Employees
? Equal Employment? Occupational health and safety? Focus on employees’ growth? Compensation and benets? Employee Care
? Protect employees’ rights and interests? Safety production management? Employee training? Employee benets system? Employee activitiesSuppliers
? Supply chain management? Transparent procurement? Cooperation and mutual benet? Information interconnection
? Supplier audit and supeision? Anti-commercial bribe? Promote strategic cooperation? Indust exchange and training
? Approve the Company's sustainable development strategies, goals, and indicators;? Make decisions on major issues related to the Company's sustainable development;? Regularly listen to the work reports of the Strategic and Sustainable Development Committeeand the Strategic and Sustainable Development Review Team.? Conduct research on the Company's sustainable development and ESG-relatedpolicies and put forward suggestions;? Review the Company's ESG-related reports, assess material topics, and report to theBoard of Directors;? Analyze the impact of the Company's business on sustainable development goals,and evaluate potential risks and opportunities.? Be responsible for the specific implementation of ESG-related resolutions;? Collect feedback during the implementation process, and adjust and improvethe implementation plan in a timely manner.
Decision-making Level
ImplementationlevelStrategic and Sustainable Development
Review Team
Strategic and SustainableDevelopment Committee
Board of DirectorsManagerialLevel
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2024 Environmental Social And Governance RepoHealthcare
Healthcare Co.,Ltd. collects feedback from stakeholders such as shareholders, customers, employees, suppliers and communitiesthrough online questionnaires and other forms to identify key issues that are of strategic significance to the Company's sustainabledevelopment. Based on the two core dimensions of “importance to the Company’s financial situation” and “importance to economic,social and environmental impacts”, the Company conducted an in-depth assessment and identified 25 issues, and constructed ascientific and reasonable matrix of material issues.
Management of Material Issues
MaterialityESG Issues
Dual material issues
Product and service safety and quality, innovation-driveninitiatives, employee rights protection, supply chain security, andclimate change response
Issues with Only ImpactMateriality
Corporate Governance Compliance、data security and customerprivacy protection, environmental compliance management,energy utilization, compliance and risk management, anti-unfaircompetition, circular economy, shareholder rights protection,pollutant emissions, stakeholder communication, waste disposal,anti-commercial bribery and anti-corruption、Firmly Lead withParty Building
General Material Issues
Equal treatment of small and medium-sized enterprises, waterresource utilization, due diligence, social contribution, scienceand technology ethics, rural revitalization, ecosystem andbiodiversity protection
Materiality to Corporate Finance
The Importance of the Impact on theEconomy, Society and EnvironmentStakeholdersDemands and ExpectationsCommunication and Response
Customers
? After-sales seice management? Control product quality? Protect information security and privacyprotection
? Conduct customer satisfaction sueys? Provide high-quality products? Improve data security management systemCommunity or non-prot organization
? Address the needs of vulnerable groups? Contribute to the community
? Suppo via diverse approaches? Conduct public welfare activitiesMedia
? Accept social supeision? Establish positive interactions
? Enhance information disclosure? Respond to media attentionIndustassociations
? Technological innovation? Contribute to the development of the indust
? R&D and innovation system? Promote standard setting
Ecosystem and Biodiversity ConservationRural RevitalizationTechnology Ethics
Social ContributionDue DiligenceWater Resources Utilization
Equal Treatment of Small and Medium-sized EnterprisesWaste DisposalAnti-commercial Bribery and Anti-corruptionPollutant EmissionsProtection of shareholder’s interests and rights
Circular economy
Countering Unfair Competition
Compliance and RiskManagementData Security and CustomerPrivacy Protection
Safety and Quality of Products and ServicesInnovation-driven initiativeProtection of employees’ rights and interests
Supply Chain SecurityAddress Climate Change
Environmental Compliance
Management
Stakeholder Communication
Issue with Only Impact MaterialityGeneral Material Issues
Dual material issuesIssue with Only Financial Materiality
Through the analysis of the Company's strategic positioning, business development, and business model,we focus on identifying the Company’s “financial material issues”. Through peer benchmarking and industrytrend development, we identify the issue of “importance of impact on the economy, society and theenvironment”.
Analysis of theCompany'sCurrentSituation
The questionnaire survey results are analyzed and ranked, and after internal review and expert evaluation,the ranking of topics is comprehensively determined to form a four-dimensional matrix of material topics.
Ranking ofImportanceof Issues
With reference to the United Nations Sustainable Development Goals (SDGs), SASB, and the guidelinesof stock exchanges and other domestic and international indicator systems, we compiled a complete listof topics, conducted an online questionnaire survey for stakeholders and leaders, and collected 308 validquestionnaires. We conducted a survey on material topics through expert evaluation.
Investigationon theImportanceof the Issues
To ensure the accuracy and comprehensiveness of material topics, ESG external experts conductprofessional reviews of the initially identified issues and make optimization suggestions based on feedbackfrom stakeholders The Company's management reviews the material topics and their ranking to ensure thatthe issues are consistent with the Company's strategic goals and business priorities; Five material issueswith financial materiality are identified. Based on the evaluation results of these issues, a material issuematrix is constructed. In the ESG report, the issues that stakeholders are concerned about or have financialsignificance are disclosed with emphasis.
Matrix ofMaterialIssues
Energy Utilization
Corporate Governance Compliance
Firmly Lead withParty Building
GovernanceDevelopmentSustainableCo.,Ltd.About HealthcareChairmanStatement ofReportAbout the
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Healthcare 2024 Environmental Social And Governance Repo
Dreams Rest on Green Water, and CloudsAccompany Green Mountains
Response to Climate ChangeEnvironmental Compliance ManagementEnergy UtilizationCircular EconomyPollutant EmissionsWaste DisposalWater Resource UtilizationEcosystem and Biodiversity Protection
2324
Healthcare 2024 Environmental Social And Governance Repo
The Company actively responds to the national policy call for “carbon peaking and carbon neutrality”, and systematically promotesthe management of climate change risks and opportunities. The Company has established a sustainable governance framework,setting up a Strategy and Sustainability Committee and a Strategy and Sustainability Review Team. It implements climate governanceresponsibilities at different levels, promotes the implementation of specific measures such as the use of clean energy and theimprovement of energy efficiency, and achieves the deep integration of climate governance and business development.
Healthcare Co.,Ltd. refers to the Guidelines for Financial Disclosures Related to Climate Change (TCFD), comprehensively analyzesthe climate change risks and opportunities that may be faced under different carbon emission scenarios and economic and socialdevelopment paths, and formulates a systematic response strategy based on industry characteristics and business realities. TheCompany has clearly defined its low-carbon transformation path and plans to increase the annual use of photovoltaic powergeneration by 2025 to reduce carbon emissions. At the same time, the Company conducts a climate adaptability assessment. Basedon the Company's non-high-carbon industry attributes and the low-carbon characteristics of its products, it focuses on the upstreamfabric procurement links with high-carbon attributes, and responds to customers’ green needs and balances supply chain carbonconstraints through measures such as selecting recyclable yarns to weave fabrics, thereby continuously improving climate resilience.
Response to Climate ChangeClimate Change Governance
Climate Change Strategy
Transformation Risks
Resource Usage RisksClimate change could leadto water shortages or strictercontrols on the use of forestresources, which couldresult in higher prices forraw materials and packagingor a reduction in availableresources.
LowMedium
Medium tolong term
Upstream,Operations
Medium
Increasedmaterialprocurement
costs andoperatingcosts
Monitor raw materialsupplier price trends andredesign products whenappropriate to ensure acontinuous supply of inputmaterials.
Reputation Risks
Climate change may triggerthe public's increasedattention to environmentalprotection. If the Companyfails to effectively address thechallenges posed by climatechange, it may damage itsreputation and brand image.
LowMedium
Medium tolong term
Operations,downstream
Medium
Decreasedoperatingincome
Actively fulfill socialresponsibilities,strengthen environmentalprotection publicity andcommunication, andestablish a good corporateimage.
Physical risks
Natural disaster risksDrastic weather changessuch as floods and typhoonsmay affect the Company'supstream and downstreamsupply chains, factoryproduction and producttransportation.
LowHigh
Medium tolong term
OperationsMedium
Decreasedoperatingincome.Increase inoperatingcosts
Pay timely attention toextreme climate eventsand establish a morecomplete extreme weatheremergency managementplan.
Chronic weather change riskThe long-term transformationof natural patterns such assea-level rise and persistenthigh temperatures may havean impact on the Company'sproduct production and theupstream and downstreamsupply chains.
LowMedium
Medium tolong term
OperationsLow
Decreasedoperatingincome.Increase inoperatingcosts
Establish a diversifiedsupply chain system toreduce dependence on asingle region or supplier;optimize inventorymanagement and maintainappropriate safety stock.
RiskType
Risk Description
ProbabilityofOccurrence
ImpactMagnitude
ImpactTime frame
Value ChainLinks of Impact
PriorityRanking
Explanationof FinancialImpact
Response Measures
Transformation Risks
Policy and Legal RisksThere may be risks oflegal liabilities, regulatorysanctions, disciplinaryactions, financial losses, orreputational damage dueto non-compliance withclimate-related policies orregulations.
LowHighMid-termOperationsMedium
Increasednon-operatingexpenses
All departments shouldstrengthen theirattention and study ofclimate change-relatedpolicies and laws, andeffectively identify andmanage climate changerisks and opportunities.Domestic and foreignregulatory agencies,capital market ratingguidelines, etc. have allincreased their attention tocorporate climate changeor carbon emissions.
LowMedium
Short-termto Medium-
term
OperationsMedium
Increasedoperating
costs
Strengthen themanagement of climatechange and carbonemissions, strictlyabide by laws andregulations, and makecompliance disclosuresin accordance with thelaw.
Technology RisksDuring the processof technologicaltransformation, thedevelopment andapplication of energy-saving and environmentalprotection technologiessuch as raw material use,waste management, andgreen packaging mayhave an impact on theCompany's operations andbusiness.
MediumHigh
Short-termto Medium-
term
OperationsHigh
Increasedinvestment inresearch anddevelopment
Focus on cutting-edgetechnologies, rationallyplan R&D investment,and continuously carryout technologicalinnovation and improveenergy efficiency.The progress of producttechnology research anddevelopment may lagbehind expectations.
LowMedium
Short-termto Medium-term
OperationsMedium
Increasedinvestment inresearch anddevelopment
Track the entire R&Dprocess in a timelymanner, reasonablyadjust the R&Dprogress, and activelyabsorb R&D talents.
The time dimensions of all financial materiality in this article are defined as: short-term: within 1 year (inclusive); medium-term: 1 to 5 years (inclusive);long-term: more than 5 years.
Response toClimate Change
Environmental
ComplianceManagemenEnergy UtilizationCircular Economy Pollutant EmissionsWaste Disposal
Water ResourceUtilization
Ecosystem andBiodiversityProtection
2526
Healthcare 2024 Environmental Social And Governance Repo
IndicatorObjectives
CO
emissions
In 2025, the annual use of photovoltaic powergeneration will increase by 5%, thereby reducingcarbon dioxide emissions by approximately 110 tons.
To effectively identify and assess the Company’s risks and opportunities in responding to climate change and take proactive measures,the Company has formulated and implemented the Sustainable Development Risk Management System to build a systematic systemfor identifying, evaluating and responding to risks and opportunities.
Healthcare Co.,Ltd. belongs to the furniture manufacturing industry. The greenhouse gases generated by the Company mainly comefrom product production, logistics and transportation, and office links. The emission sources include direct greenhouse gas emissionsgenerated by the combustion of fuels such as natural gas, gasoline and diesel, and indirect greenhouse gas emissions generatedby purchased electricity and purchased heat. In order to enrich the path to achieve carbon emission reduction, the Company paysattention to emissions during operations, analyzes energy-saving potential, and promotes emission reduction implementation.
IndicatorUnitNumericTotal GHG Emissions tCO
e37,690.85Direct GHG Emissions (Scope 1)tCO
e2,708.17Indirect GHG Emissions (Scope 2)tCO
e34,982.68GHG Emission IntensitytCO
e/ RMB 1 million (revenue)4.46GHG Emission Reduction tCO
e4,010.80Impact, Risk and Opportunity Management
Metrics and Targets
e Company’s Greenhouse Gas Emissions in 2024
The Company refers to the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) framework, identifying risks and opportunitiesfaced by the company in three main categories: physical risks, transition risks,and opportunities. Additionally, the Company defines and elaborates on therisks and opportunities posed by climate change, taking into account nationallaws and regulations, policy directions, and the company's specific operationalcircumstances.RiskIdenti?cation
Based on the preliminary identification results, the Company conducts a qualitativeand quantitative assessment of the identified risks or opportunities from fiveaspects: potential major financial impacts, size of the impact, time dimension,probability of occurrence, and prioritization.
RiskAssessment
Based on the risk identification and assessment results, the risks are categorizedas major, significant, or general, according to the degree of impact of one or morerisk combinations.
RiskAnalysis
For each identified risk, the Company employs a combination of risk avoidance, riskreduction, risk sharing, and risk acceptance strategies, based on its risk tolerance,to effectively control the risks.
RiskControl
?Data Explanation:
Scope 1: The direct emissions generated by the greenhouse gas emission sources (natural gas, gasoline, diesel) owned or controlled by HealthcareCo.,Ltd.Scope 2: Indirect greenhouse gas emissions from purchased electricity and heat from Healthcare Co.,Ltd.?GHG Accounting Standards: It is calculated according to the standards of Guidelines for the Calculation and Reporting of Greenhouse GasEmissions from Other Industrial Industries (Trial), 2022 Electricity Carbon Dioxide Emission Factors, and China's Electricity Industry AnnualDevelopment Report 2024.The greenhouse gas emission reduction is based on the scope of the parent company of Healthcare Co.,Ltd.GHG reduction caliber is Healthcare Co.,Ltd.
OppounityType
OppounityDescription
ProbabilityofOccurrence
ImpactMagnitude
Impact
Timeframe
PriorityRanking
Explanationof FinancialImpact
Response Measures
MarketOpportunities
The public's attentionto green productionis increasing. If theCompany takes aleading position in theindustry in aspectsrelated to greenproduction, it is likely toattract more consumers.Customers' demand forlow-carbon productsand related services hasincreased.
HighHigh
Mediumtolong-term
Medium
Augmentedoperatingincome
Promote green procurement, greenpackaging and green productionto reduce the carbon footprintof products throughout their lifecycle; incorporate environmentalfactors such as greenhouse gasemissions into supplier assessmentsto promote green developmentof the supply chain; carry outdiversified sustainable consumptionadvocacy activities to strengthenthe dissemination of the Company'sgreen brand among the public.
Energyalternatives
Use photovoltaic powergeneration to reduceelectricity purchasesand thus reduce carbondioxide emissions.
HighHigh
Mediumtolong-term
High
Decreasedoperatingcosts
Adopt cleaner and more efficientenergy solutions and increase theuse of photovoltaics.
Response toClimate Change
EnvironmentalComplianceManagemenEnergy UtilizationCircular Economy Pollutant EmissionsWaste Disposal
Water ResourceUtilization
Ecosystem andBiodiversityProtection
2728
Healthcare 2024 Environmental Social And Governance Repo
案例CaseStudy
Environmental Management Program Training
Environmental ComplianceManagementEnvironmental Management System
Healthcare Co.,Ltd. has established a regular mechanism for detecting hidden dangers. Based on self-inspection and combinedwith regular patrol inspections and professional evaluations, this mechanism aims to promptly identify and eliminate potentialenvironmental hazards, so as to minimize the impact of production activities on the environment. In daily operations, the Companystrictly implements the hidden danger inspection plan and conducts detailed inspections of key areas such as production workshops,storage areas, and environmental protection facilities to ensure that various environmental protection measures are effectivelyimplemented. During the reporting period, through self-inspection and other means, Healthcare Co.,Ltd.'s daily work of identifyingpotential environmental hazards has achieved remarkable results. No environmental protection issues were found. This reflects theCompany's good management in environmental protection.
Environmental Risk Control
Identication of Hidden Hazards
In order to further strengthen environmental supervision, the Company has formulated an environmental monitoring plan based on theproduction characteristics and regulatory requirements of different companies. Healthcare Co.,Ltd. conducts environmental monitoringtwice a year, and its subsidiaries Jiangsu Nisco and Deeplant New Material conduct environmental monitoring once a year. Such amonitoring frequency can not only meet the requirements of environmental protection supervision, but also effectively identify andrespond to potential environmental problems, thereby ensuring the environmental compliance of the Company's production activities.
Environmental Monitoring
Emergency Management
Risk Assessment
Healthcare Co.,Ltd. strictly carries out corporate environmental risk assessment in accordance with the requirements of the Ministryof Environmental Protection’s Guidelines for Risk Assessment of Sudden Environmental Events in Enterprises (Trial) and otherrelevant technical specifications. In order to achieve effective risk assessment, the Company has clarified the specific process of riskassessment.
In order to prevent environmental accidents, we have formulated an emergency plan.We adhere to the principle of “people-oriented, reducing hazards” and implement amanagement system of “unified command and hierarchical responsibility”. Under theleadership of the Emergency Command Center, we integrate internal and externalresources and work together to strive to quickly handle and provide timely rescue whenan accident occurs. At the same time, we regulate emergency management work inaccordance with the law, conduct regular training and drills, and enhance employees’self-rescue and mutual rescue capabilities. Through the formulation and implementationof emergency plans, we can minimize the harm caused by accidents, protect the livesand health of employees and the public, and enable the Company to respond in anorderly and efficient manner when faced with sudden environmental incidents. TheEmergency Response Plan for Environmental Emergencies formulated by the Companyhas been filed with the Rugao Ecological Environment Bureau of Nantong City.
On November 28, 2024, Healthcare Co.,Ltd. conductedenvironmental management procedures training forworkshop team leaders and environmental managementpersonnel, including management procedures such asenvironmental factor identification and evaluation, solidwaste management, waste gas emission control, wastewateremission control and noise control. Through this training,the Company standardized the disposal process of the threewastes and enhanced employees’ environmental protectionawareness and related professional skills.
Healthcare Co.,Ltd. strictly abides by the Environmental Protection Law of the People'sRepublic of China and other laws and regulations in carrying out environmentalmanagement in its production and operation. The Company formulates internal systemssuch as the Policy of Environmental Management System and the Environmental FactorIdentification and Evaluation Management Procedure based on its own actual situation.The Company builds the organizational structure of the Safety and EnvironmentalProtection Department and establishes a special safety and environmental protectiondepartment. Under this department, environmental protection engineers are equipped.These engineers are mainly responsible for implementing laws and regulationsrelated to the environment, identifying environmental factors, managing the dischargeof industrial wastes (waste gas, waste water, and industrial residue), and regularlymonitoring environmental indicators to ensure the effective operation of the company'senvironmental management. In 2023 and 2022, Healthcare Co.,Ltd. and Jiangsu Niscorespectively commissioned external agencies to carry out clean production audits,and the audit results were both clean production level 2. The Company’s productionand operation activities do not have significant negative impacts on ecosystems andbiodiversity.As of the end of the reporting period, Healthcare Co.,Ltd. and its subsidiary JiangsuNisco both passed the ISO 14001 environmental management system certification.During the reporting period, the Company and its subsidiaries were not subject toadministrative penalties for environmental issues.
Environmental Management
System Certification
Data Preparation and
Environmental Risk
Identification
Analyze possiblesudden environmental
incidents and theirconsequences
Analyze the gaps inexisting environmentalrisk preventionand control andenvironmentalemergencymanagement
0203
Formulate and improvethe implementationplan for environmentalrisk prevention andcontrol and emergencymeasures
Determine the risk levelof sudden environmental
events
During the Reporting PeriodEnvironmental Investment : The Company's total environmental protection investment amounted to
RMB
2.6015
million;Environmental Training : A total of
environmental protection training sessions were carried out, with
person-timesparticipating in the training, and the total training duration was
hours.
ChemicalleaksFireincidents
2024 Environmental
long-term goals
Response toClimate Change
Environmental
ComplianceManagemenEnergy Utilization Pollutant EmissionsWaste Disposal
Water Resource
Utilization
Ecosystem and
BiodiversityProtectionCircular Economy
2930
Healthcare 2024 Environmental Social And Governance Repo
Healthcare Co.,Ltd. Chemical Leakage Emergency Rescue Drill 案例CaseStudy
On March 29, 2024,Healthcare Co.,Ltd. conducted a chemicalspill emergency drill in a hazardous waste warehouse with awell-equipped leakage containment system. The Companyquickly activated the emergency response plan, establishedan emergency response team, and carried out the work ofcontaining, adsorbing and cleaning up the leaked substancesin an orderly manner. During the drill, it was found that theemergency supplies were damaged and expired, and theCompany had taken measures to rectify the situation. This
On July 26, 2024, Jiangsu Nisco conducted an adhesiveleakage emergency drill in a chemical warehouse. Thedrill simulated a scenario where the warehouse managerdiscovered an adhesive leakage during the transportation, ,immediately notified the warehouse manager, and reportedit to the emergency command center. The command centerquickly activated the emergency response plan, establishedan emergency response team, and carried out the work ofcontaining, adsorbing, cleaning up and flushing the leaked
The Company has introduced CNC special-shaped cuttingmachines. By combining modern industrial control machinetechnology and using a motion control card, it can achieveprecise control over the movement of the motors on the X, Y,and Z axes. At the same time, it is equipped with advancedservo motor equipment. On the basis of ensuring processingaccuracy, it significantly reduces the energy consumptionand operating noise of the equipment. On this basis, the CADprogramming control system based on the industrial computerworks together with the drive servo motor to complete thethree-dimensional cutting operation. Through the optimizationof the three-dimensional cutting path, it not only effectivelysuppresses the generation of processing dust, but also furtherimproves the product processing accuracy. This intelligentsystem integrates mechanical automation and digital controltechnology to achieve a dual upgrade in processing efficiencyand environmental performance.The Company has built a fully automatic mattress rolling andpackaging production line based on the PLC control system.This enables automated operations throughout the entireprocess, including material feeding, bag sealing, compression,and rolling and packaging. Through the precise regulation ofthe process connection rhythm by the PLC, the efficient andcoordinated operation of the assembly line is ensured. Whileenhancing the stability of production, it remarkably lessens theworkload of manual operation. This effectively averts the risksof fabric contamination and mechanical damage that resultfrom manual contact during the traditional packaging process.
Emergency Drill for Adhesive Leakage Accident in Nisco, Jiangsu
Energy Saving Measures
案例
案例
CaseStudy
CaseStudy
Energy Utilization
Energy Online Monitoring Platform
Healthcare Co.,Ltd. strictly abides by the Energy Conservation Law of the People's Republic of China, the Circular EconomyPromotion Law of the People’s Republic of China and other relevant laws and regulations, and actively promotes the efficient useof resources. The Company has established an energy management committee, and each department and workshop has identifiedmanagement responsibilities to control and implement energy management at all levels. At the same time, the Company collectsenergy consumption data every month, analyzes the data, conducts a cause analysis for the departments with excessive consumption,and implements rectification measures. To further optimize energy management, the Company uses digital electricity meters toautomatically collect power consumption data, and transmits the data to the energy online monitoring platform through a gateway.The platform calculates and analyzes the power consumption situation according to established logical formulas, and graduallyimproves the management of the entire process of power usage. During the reporting period, the Company carried out EnergyManagement System training for all employees to enhance their energy-saving awareness.
The Company’s photovoltaic power generation project
The Company follows a scientific and rigorous process inenergy management. Each workshop improves processingefficiency and reduces energy consumption throughtechnological updates and renovations. The Company activelyuses cleaner and more efficient energy solutions. For example,the cafeteria has replaced the induction cooker with a gasstove, and the warehouse insulation has been changed fromair-conditioning heating to gas heating. The Company alsoactively invests in the construction and use of solar energy. Asof 2024, the installed photovoltaic capacity has reached 2.45megawatts.
The Company installs frequency converters on electricalequipment with large load fluctuations (such as baggedspring production lines, automatic cutting beds, multi-needle and single-needle machines, and air compressors). Byadopting frequency conversion technology, it can effectivelysolve the losses caused by non-uniform load currents duringthe operation of the motors and save electricity. Accordingto industry experience, frequency conversion air compressorscan save about 15% of electricity compared with fixedfrequency air compressors.
CNC special-shaped cutting machine is used
Controlled by PLCFrequency conversion technology is usedPLC： A programmable logic controller (PLC) is a digital computing electronic system designed specifically for use in industrial environments.It uses a programmable memory to store instructions for performing operations such as logical operations, sequential control, timing,counting, and arithmetic operations internally. It controls various types of mechanical equipment or production processes through digital oranalog inputs and outputs.
drill improved employees' safety awareness and emergency response capabilities, exposed deficiencies in emergency materialmanagement, and provided valuable experience for the Company to further improve its emergency response plans andstrengthen emergency management.
substances in an orderly manner. The drill went smoothly and the emergency response measures were effective. This drilleffectively tested Jiangsu Nisco’s ability to respond to chemical leak accidents and tested the feasibility and effectiveness ofthe emergency plan.
Response toClimate Change
Environmental
ComplianceManagemenEnergy Utilization Pollutant EmissionsWaste Disposal
Water ResourceUtilization
Ecosystem and
BiodiversityProtectionCircular Economy
3132
Healthcare 2024 Environmental Social And Governance Repo
During the production and operation process, the Company has taken measures such as replacing electric heating with natural gasheating, introducing infrared heating tubes with higher heating efficiency to replace the original stainless steel heating tubes, so asto optimize the composition structure of energy consumption. It has actively carried out technical transformation projects for energyconsumption, such as expanding the capacity and application scope of solar power generation, optimizing the lighting system inthe workshop, and renovating the gas pipeline in the workshop, and other measures to improve the efficiency of resource use. TheCompany has also installed energy storage devices. These devices charge during off-peak and normal periods and discharge duringpeak and super-peak periods. This measure reduces the energy supply risk caused by the intermittency of solar power generationand enhances the flexibility and reliability of the company's energy system. At the same time, it balances the supply and demand ofthe power grid, provides backup power, reduces the costs of power transmission and distribution, and decreases the overall carbonemissions.
IndicatorUnitData for 2024Comprehensive Energy Consumptiontce9,956.12
Including: Natural gasm
906,440.71DieselLiter231,489.50GasolineLiter66,923.33Purchased heatGJ3,112Purchased ElectricitykWh64,555,275.96Renewable energy (solar power
generation)
kWh2,936,217.10Total non-renewable energyconsumption
tce9,595.26Total renewable energy consumptiontce360.86Comprehensive energy consumptionintensity
tce/ RMB 1 million (revenue)1.18
Circular Economy
Healthcare Co.,Ltd. upholds the concept of a circular economy. With material management as its cornerstone, it makes great efforts tocreate green products and implement green office practices. It has established a comprehensive system that encompasses resourceutilization, the full life cycle management of products, and green operations. This system effectively lays a solid foundation for theCompany's sustainable development.
The Company has established a standardized management system coveringthe entire cycle of material storage, transportation and collection. In thestorage link, the Company implements classified labeling and dynamicenvironmental monitoring. By combining regular inventory checks andquality inspections, it ensures that the accounts match the actual materials.Additionally, it conducts safety inspections, such as fire preventionand moisture prevention, to prevent losses and accident risks. In thetransportation link, it formulates route planning and packaging protectionstandards, selects suitable transportation vehicles, and tracks the logisticsstatus throughout the entire process. At the same time, it establishesan emergency response plan to deal with sudden abnormalities. In therequisition link, based on the process data of the production system,the Company implements a quota material requisition system. Throughdigital approval and usage verification, it achieves accurate requisition,which effectively avoids the waste and misuse of raw materials. Duringthe packaging and processing of products, the Company attaches greatimportance to the recycling of packaging materials, avoids excessivepackaging, and actively practices the circular economy.
Standardized Control of Materials
Create Green Products
Implement Green O?ce
Healthcare Co.,Ltd. continues to launch green products to meet the market demand for sustainability and healthy living. The Companyhas obtained CertiPUR-EUR and CertiPUR-US certifications issued by the Flexible Polyurethane Foam Association of the United States.These certifications signify the safety, environmental friendliness, and healthiness of the sponge products, and also minimize theenvironmental impact during the product manufacturing process. The main fabrics of the Company's products have consecutivelyreceived the Oeko-Tex Standard 100 certification for many years. As a globally recognized and most authoritative and influentialecological label for textiles, this certification covers the entire production process of textiles from raw materials to finished products.It rigorously tests substances that are legally prohibited or regulated, as well as substances harmful to the environment or health. Thecertification results confirm that the Company's products do not incorporate any harmful chemical substances during the productionprocess. As a result, they are able to meet the health and safety requirements of individuals of all ages, including infants. This reflectsthe Company's firm commitment to health and environmental protection. In addition, the Company's zero-pressure mattresses passthe zero-formaldehyde test conducted by the internationally authoritative organization SGS every year, further demonstrating theCompany's commitment to the environmental protection and health performance of its products.
Healthcare / Healthcare Europe / Healthcare SC /Nisco Thailand / Healthcare Foam S.L.U. /
Healthcare Arizona LLCThis company has successfully completed all product evaluation, analysis, testing and program requirements andhas achieved CertiPUR-US? certification for the following flexible polyurethane foam products. This certificate was
last updated October 9, 2024.
| FOAM FAMILY | LAB REPORT I.D. | RENEWAL DATE mm/dd/yyyy |
| Air foam | ||
| Conventional foam | ||
| Conventional FR foam |
Lavender air foam
| Lavender air foam |
Molded foam
| Molded foam |
Smart foam
| Smart foam |
Viscoelastic (memory) foam w/gel
| Viscoelastic (memory) foam w/gel |
Viscoelastic (memory) FR foam
| Viscoelastic (memory) FR foam |
CertiPUR-US CertificationCertiPUR-EUR CertificationOeko-Tex Standard 100 Certification
| ????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ????????????????????7????????????????????????????7???????????????????????????????????????????????????????????????????????????????????7???????????????????????????? ??????????????????????????????????????????????????????????????????????????????????? | ||
Healthcare Co.,Ltd. deeply integrates green office practices into its operation and management system, continuously strengthens thelow-carbon and environmental protection awareness of all employees, systematically reduces the energy consumption and resourceconsumption in daily office work, and comprehensively creates an environmentally friendly office ecosystem.
Paper ManagementWater managementOther Management?Healthcare Co.,Ltd. actively applies modern officesoftware, including OA mobile office system,MES system and SAP system, so as to achievepaperless and systematic process and demandflow?Except for the documents that must be preservedas paper materials or are confidential documentsof the company, the Company reduces the use ofprinting paper?Single-sided printed documents must be recycledfor double-sided use?Paper clips and other foreign objects are removedduring recycling?Make a clear void mark on the invalid pages toavoid confusion?Paper with no writing value shall be handled inaccordance with the Solid Waste Pollution ControlProcedure
?When using tap water for cooling, flushingthe road surface, cleaning, and watering, itis necessary to save water on the premise ofensuring the desired effect?For the water usage in the canteen, it requires toarrange a reasonable cleaning process and payattention to water conservation while ensuringthe cleaning effect?When employees get drinking water, they shouldpour it according to their personal needs?High-efficiency energy-saving toilets with Grade 1energy efficiency is used. Siphon water dischargeoutlets and dual-button flushing technology areadopted, which can effectively reduce the waterconsumption per flush?The intelligent sensor urinal can accuratelycontrol the amount of water each flush, so as toavoid the unstable water consumption caused bymanual pressing?Copper core faucets are installed to avoid waterleakage caused by rust of iron core faucets
?The design of a large open-plan office layout isadopted, enabling centralized office work. Thisnot only enhances teamwork but also reducesthe need to turn on office lighting and airconditioners?The Company fully adopts LED energy-savinglamps, which are about 10 times brighter thanordinary incandescent lamps and save more than80% of energy consumption?The Company strengthens the greeningconstruction of the factory area and build agreen isolation belt of a certain width to reducethe impact of exhaust gas and noise on thesurrounding environment?The Company has opened special commutingroutes for employees to and from work, solvingtheir commuting problems and encouragingthem to travel in a low-carbon way. Additionally,the company has installed charging piles in itsparking lot to encourage employees to use newenergy vehicles
Response toClimate Change
Environmental
ComplianceManagemenEnergy Utilization Pollutant EmissionsWaste Disposal
Water Resource
Utilization
Ecosystem and
BiodiversityProtectionCircular Economy
Packaging materials Unit2024Paper packaging
materials
Piece 20,210,168PE bagPiece21,900,938EPE coiled materials Kilogram11,670EPE sheet materialsPiece469,700EPE tubular materialsMeter119,144
EPSPiece290,858Polyethylene Ton31.5Non-woven fabric bagPiece2,370,063
Steel wire packagePiece22,665PE film Kilogram3,142,174
3334
Healthcare 2024 Environmental Social And Governance Repo
Dormito OceCopper core faucetModern oce software
Pollutant Emissions
Wastewater Management
Healthcare Co.,Ltd. strictly complies with the Law of the People’s Republic of China on the Prevention and Control of WaterPollution. The Company mainly uses domestic water and only generates domestic sewage. There is no process wastewatergenerated during the production process. To effectively manage the discharge of domestic sewage, the company has formulatedthe Wastewater Discharge Control Management Procedure. It has clearly defined the responsibilities of each department andestablished corresponding sewage treatment processes to ensure that the wastewater discharged complies with environmentalprotection standards. In the process of sewage treatment, the Company adheres to the principles of “separation of clean waterand sewage, and separation of rainwater and sewage”. By regularly cleaning the grease traps and septic tanks, it controls the totalamount of domestic sewage and ensures that the domestic wastewater is discharged up to the standard. The Company entrustsa qualified third-party organization to test the wastewater every six months. In 2024, the Company's factory achieved compliancewith domestic wastewater discharge standards.
Wastewater Management
Healthcare Co.,Ltd. complies with the Law of the People's Republic of China on the Prevention and Control of AtmosphericPollution and other relevant laws and regulations, and is committed to reducing waste gas emissions during the productionprocess. The Company has formulated the Waste Gas Emission Control Management Procedure to clarify the responsibilities ofeach department. The Company has adopted a series of strict waste gas treatment measures to ensure that volatile waste gasesin the production process are effectively controlled. During the foaming pre-curing stage, the Company uses the air extractionsystem on the top of the oven to extract the volatile foaming waste gas to the activated carbon adsorption and steam desorptiondevice for treatment with a collection rate of 98%. After the waste gas is treated to meet the standards, it is discharged througha 15-meter-high exhaust stack. At the same time, the Company installed electricity monitoring devices in the distribution boxesof the foaming machine and the waste gas treatment device, and connected them to the Environmental Protection Bureau'smonitoring system to ensure that when the production equipment is turned on, the waste gas treatment equipment runssynchronously. To ensure the long-term and stable effectiveness of waste gas treatment, the Company adheres to replacing asufficient amount of activated carbon once a year to maintain its adsorption efficiency. In accordance with the requirements ofthe pollutant discharge permit, the Company also entrusts a qualified third-party organization to conduct waste gas environmentaltesting every six months to ensure that waste gas emissions meet environmental protection standards. In 2024, the exhaust gas inthe Company's factory met emission standards.
Waste Gas Management
The Company attaches great importance to noise control work. To effectively manage noise emissions, the company has formulatedinstitutional documents such as the Noise Control Management Procedure. By giving priority to the selection of low-noise equipment,adjusting the layout of the workshop, and implementing comprehensive noise reduction measures including sound insulation, soundabsorption, and vibration damping, the Company ensures that the noise emissions at the factory boundary continuously comply withthe national standards for industrial enterprises. The Company’s Safety and Environmental Protection Department is responsible forannual outsourced testing management to ensure that noise emissions meet national standards. The Production Department proposesreasonable prevention and control requirements for noise pollution and supervises their implementation to ensure prevention andcontrol effects. The Equipment Department, on the other hand, is responsible for the daily maintenance of mechanical equipment toreduce the generation of noise. According to the Class 2 standard in the GB 12348-2008 Emission Standard of Environmental Noisefrom Boundary of Industrial Enterprises, the Company stipulates that the limit of noise emissions at the factory boundary shall notexceed 60dB(A) during the daytime and 50dB(A) at night. In 2024, the Company's factory area achieved compliant noise emissions.
Noise Management
Types of pollutantsTotal emissions in 2024Waste Gas Emissions388,338,368 cubic metersWaste Gas Emission Intensity45,960.54 Cubic meters/million yuan in revenue
Industrialwaste gas
Nitrogen oxide (NOx)0.01 tonsSulfur dioxide0.21 tons
Volatile Organic Compound (VOC)0.08 tonsParticulate matter (PM)0.69 tonsNon-methane hydrocarbons0.70 tons(Statistical scope:the parent company of Healthcare Co.,Ltd., Nisco, Deeplant New Material, overseas production bases.Among them, the exhaust gas emission intensity per million yuan of revenue refers to the operating revenue in the consolidated financial statements of the Company forthe year 2024.)
The workshop ventilation system uses low-noisefans and high-efficiency silencers, and strictlyregulates the direction of the exhaust ventsto avoid pointing at environmentally sensitiveareas.
In response to mechanical vibration noise, acombination of steel springs, rubber vibrationreduction materials and vibration reduction groovesare used to reduce the intensity of the noise sourcewhile extending the service life of the equipment.
We strengthen equipment maintenance toensure normal operation of equipment andavoid high noise.
At the same time, tall evergreen trees areplanted at the factory boundary to form a three-dimensional noise reduction barrier.
Noise Prevention
Measures inthe Company
Response toClimate Change
2024 Environmental long-term goalsWastewater dischargemeets standards
Exhaust gas meetsemission standards
EnvironmentalComplianceManagemenEnergy Utilization Pollutant EmissionsWaste Disposal
Water ResourceUtilization
Ecosystem andBiodiversityProtectionCircular Economy
3536
Healthcare 2024 Environmental Social And Governance Repo
During the Reporting Period
Healthcare Co.,Ltd. complies with the requirements of the Law of thePeople’s Republic of China on Prevention and Control of EnvironmentalPollution by Solid Wastes, formulates the Solid Waste ManagementProcedure system, conducts full-process management of waste, andperforms waste storage, collection, transportation and disposal inaccordance with laws and regulations. In order to achieve compliancewith waste treatment regulations, the Company divides waste into generalwaste and hazardous waste and makes the following clear regulations onmanagement:
General wastewarehouse
General waste
Hazardous wastewarehouseHazardouswaste
Entry as requiredReport to the Safetyand EnvironmentDepartment, recordthe quantity, completethe entry ledger, andpaste the QR code
Hand it over to aqualified manufacturerfor disposal, declare it inthe national hazardouswaste transfer systemand record the entiretransfer process throughGPS
Comprehensive
Utilization
SellComply with therequirements ofno omissions andno scatteringthroughout theprocess to maintainthe cleanliness of thefactory environment
Healthcare Co.,Ltd. aims to improve the utilization efficiencyof water resources and actively implements the concept ofsustainable development. The water resources used by thecompany mainly come from municipal water supply. TheCompany has implemented a number of water-saving measuresto enhance the utilization efficiency of water resources. Interms of equipment cooling, the Company has adopted acirculating water tower. By recycling water, it has reduced waterconsumption. At the same time, the Company has changed thecooling method of the air compressor from water cooling to aircooling. This change not only effectively reduces the consumptionof water resources, but also reduces the waste caused bydripping during the process. As a result, it further enhances theutilization efficiency of water resources.
The Company has always incorporated biodiversity protection into the strategic framework of sustainable development. It strictlycomplies with laws and regulations such as the Law of the People’s Republic of China on the Protection of Wildlife and theRegulations of the People’s Republic of China on Nature Reserves. The Company ensures that in all aspects of its production andoperation, it will not have any negative impact on the protection of ecosystems and biodiversity.
Waste Disposal Water Resource Utilization
Ecosystem and BiodiversityProtection
The Company's municipal water purchase volumewas339,334.85
m
, and the waterconsumption intensity was
40.16
Cubicmeters/million yuan in revenue
(Statistical scope: the parent company of Healthcare Co.,Ltd., Jiangsu Nisco, Deeplant New Material and overseas production bases.Among them, the waste generation amount intensity per million yuan of revenue refers to the operating revenue in the consolidated financial statements of theCompany for the year 2024.)
DisposalTranspoationCollection
The total amount of non-hazardous waste generated by the Company is
9,773
tons, and the intensity of non-hazardous waste generation is
1.16
ton(s) per million yuan of revenue. The total amount of hazardous waste generatedis
226.88
tons, and the intensity of hazardous waste generation is
0.03
ton(s) per million yuan of revenue.the compliance disposal rate of waste is
100%
.
During the Reporting Period
Response toClimate Change
Environmental
ComplianceManagemenEnergy Utilization Pollutant EmissionsWaste Disposal
Water ResourceUtilization
Ecosystem and
BiodiversityProtectionCircular Economy
Solid waste classification,collection and disposal rat
2024 Environmental long-term goals
100%
3738
Product and Seice Safety and QualityInnovation-driven InitiativeSupply Chain SecurityProtection of Employees’ Rights and InterestsContribution to SocietyRural Revitalization
Hundreds of Aisans Meticulously Craft aSma Way to Ensure You Enjoy a BetterNight’s Sleep
3940
Oppounity
Type
Description
Probability
ofOccurrence
ImpactMagnitude
ImpactTime frame
Value ChainLinks ofImpact
PriorityRanking
Explanationof FinancialImpact
Response Measures
Technology opportunitiesThe emergency of newtechnologies, new materialsand new processes providesenterprises with technicalsupport for improving thesafety and quality levelsof products. Enterprisescan enhance their marketcompetitiveness by developingsafer, more efficient andmore environmentallyfriendly products throughtechnological innovation.
HighLarge
Medium-and long-
term
Operations,downstream
High
Improvebargainingpower andgross profitmargin
Accurately promote productupdates and iterations, andactively explore the applicationof new technologies, newequipment and new processesto maintain the competitivenessand innovation of products.
Market Opportunities
With economic developmentand improvement ofconsumers' living standards,consumers' requirementsfor the quality of productsand services are increasing.This demand trendprovides the Company withopportunities to upgradeproduct safety and quality,and enhance brand imageand market share.
HighLarge
Medium-and long-term
Operations,downstream
HighIncreaseoperatingrevenue,enhancebargainingpower, andraise thegross profitmargin
Conduct in-depth researchon emerging markets, adjustproducts according tomarket demand, cooperatewith local distributors ande-commerce platforms toexpand sales channels,and carry out personalizedmarketing to enhance brandawareness;Increase investmentin the R&D of high-end products,introduce advanced technologymaterials, expand customizedservices, strengthen the brand'shigh-end image, provideimmersive experience andprofessional sleep advice throughexperience stores, and meet theneeds of consumer upgrades.Jiangsu Nisco High QualityManagement System CertificationHealthcare Co.,Ltd. QualityManagement System Certification
Product and Service Safetyand Quality
Healthcare Co.,Ltd. has always maintained a rigorous and responsible attitude to provide customers with high-quality, safe andreliable home products. To this end, the Company has established a full-process quality management system covering raw materialprocurement, production and processing, finished product acceptance and enry, and factory inspection to ensure product quality inall aspects. The advanced Potential Failure Mode and Effects Analysis (FMEA) method is introduced during the product research anddevelopment stage. Through a systematic evaluation of the product design and manufacturing processes, potential quality risks are
Product and Service Safety and Quality Governance
Product and Seice Safety and Quality Strategy
According to the degree of impact of one or more risk combinations, risks are classified into major risks,significant risks, and general risks.RiskClassication
RiskControl
For risks of different levels, they are divided into three categories: difficult to remedy, partially remediable,and remediable. And the responsible departments are assigned. All the information is recorded in detail onthe Risk and Opportunity Identification and Response Form. Each person responsible for risk managementneeds to report according to the risk category: General risks are handled directly by the responsible person;important risks and major risks must be reported to the office of the Board of Directors as soon as possible.At the same time, the responsible person must promptly report the corresponding risk response and disposalplans and expected results to ensure that risks are effectively managed and controlled.
Based on three aspects, namely the severity of the risk, the duration of its impact, and the probability of itsoccurrence, the identified product and service quality and safety risks are analyzed and ranked. According tothe risk levels, they are classified into major risks, significant risks, and general risks.
Risk Assessment
The Quality Department identifies the potential risks in each link of raw material procurement, productionand processing, inspection and entry of finished products, and ex-factory inspection by conducting in-depthresearch on laws and regulations related to product quality and safety.
Risk Identication
Impact, Risk and Opportunity ManagementIn order to ensure the quality and safety of the Company's products and services, the Company has established a managementprocess covering key links such as risk identification, assessment, classification, and control.RiskType
Risk Description
Probability
ofOccurrence
ImpactMagnitude
ImpactTime frame
Value ChainLinks ofImpact
PriorityRanking
Explanationof FinancialImpact
Response MeasuresProduct quality riskFactors such as raw materialdefects, insufficient designverification, deviationsin process parameters,or improper storage andtransportation may causeissues with the product,such as unstable structure,dimensional deviations, andappearance flaws. Theseissues can lead to customercomplaints, return requests,and claims for compensation,resulting in direct economiclosses.
LowLarge
Short- andmedium-
term
Upstream,
Operations
Medium
Decreasedoperatingincome
We strictly comply withthe quality managementsystem covering rawmaterial procurement,production andprocessing, inspectionand entry of finishedproducts, and ex-factory inspection tocomprehensively controlproduct quality.Company Reputation RiskThe Company's reputationmay be damaged due toreasons such as productquality defects, serviceissues, or negative news.
LowLarge
Medium-and long-
term
DownstreamLow
Decreasedoperatingincome
Implement a riskmanagement and controlsystem for the entireproduct manufacturing lifecycle; improve after-salesmanagement to promptlymeet customer needs;establish a sound crisispublic relations mechanismto respond to and handlenegative news in a timelymanner.
proactively identified, and preventivecontrol measures are implemented. At thesame time, the Company has establishedstrict product and semi-finished producttesting standards and keeps detailedrecords of the testing process to ensurethat the quality of each production linkis controllable, so as to improve productquality and reliability. As of the end of thereporting period, the Company and itssubsidiary Jiangsu Nisco have passed theISO 9001 quality management system.
Product andService Safety andQuality
Innovation-drivenInitiative
Supply ChainSecurity
Protection ofEmployees’ Rightsand Interests
Contribution toSociety
Rural Revitalization
4142
During the Reporting PeriodThe qualified rate of Jiangsu Nisco products is
98.84%
, the qualified rate of Nisco (Thailand) products is
98.92%
, and the qualified rate of Healthcare Co.,Ltd. and other overseas factories' products is
99.61%
.The Company does not have any products that need to be withdrawn or recalled due to health and safety reasons.
Metrics and TargetsHealthcare Co.,Ltd. takes “zero occurrence of major product quality and safety accidents” as the core objective of qualitymanagement, constructs a full-process quality assurance system, and is committed to providing customers with safe, reliable, andhigh-quality products, so as to win the trust and good reputation of the market. In 2024, the Company had no major product qualityand safety accidents and achieved its product quality goals.
Taking quality as the core, the Company has established a risk management system that encompasses the entire product life cycle. Itplaces emphasis on two crucial core aspects: the design and development stage as well as the production and manufacturing stage.During the design and development phase, a strict design input and output review mechanism is used to ensure a precise matchbetween product function, safety and quality standards. During the manufacturing stage, the Company implements three levels ofquality control: strictly control the quality of raw materials through incoming material inspection, strengthen process monitoring byperforming first-piece inspection and production process inspection, and conduct full inspection before the entry of finished productsto ensure the final quality. This systematic management and control model effectively ensures the controllability of product qualitythroughout the entire process from design to manufacturing.
Whole-Life-Cycle Management
Quality Training and Activities
Product Recall Procedures
Customer Seice and After-Sales Management
The Company has formulated a Product Recall Procedure,which covers the recall product evaluation, initiation of therecall procedure, implementation of the recall, recalled productprocessing, product recall cause analysis and summary,correction and prevention, record keeping and other links.Through this process, the Company is able to respond quicklyto product issues, protect consumer rights, maintain theCompany's reputation, and promote continuous improvement ofproduct quality. The Company had no product recall incidentsin 2024.
The opportunity for possible
recall of products already
delivered to customersEvaluationof recall of
productsInitiate the recall procedureImplement the recallDisposal of recalled productsAnalysis and summary of the
reasons for product recallCorrection and prevention
Keep record
Y
N
The Company comprehensively promotes the construction of quality culture. The Quality Department regularly conducts internaltraining, deeply analyzes the core elements and key links of quality management, and ensures that all department staff are proficientin the necessary quality knowledge and management skills. At the same time, the Company's business school has tailored trainingcourses for the 2024 management trainees to meet their growth needs and cultivate their quality management awareness. TheCompany encourages full employee participation in quality management. It motivates employees to actively spot quality problemsduring their daily work, propose improvement suggestions, and collectively contribute to the enterprise's high-quality development.
Product Quality Training
案例CaseStudy
In order to enhance the product knowledge and professionalcapabilities of the 24th batch of management trainees, theCompany has carried out special product quality training formanagement trainees. The training content focuses on theoverview of the home furnishing industry, the Company'score product lines, and comparative analysis of differentmattress materials. Through systematic explanations, it helpsnewcomers quickly build a product knowledge framework andimprove market business adaptability.
Product Quality Training
案例CaseStudy
In 2024, the Company's Quality Department carried outregular special training sessions centered around the productquality management system. The training content coveredcore sections such as quality sampling standards, non-conforming product control procedures, the understandingof quality definition and value, basic knowledge of goodsinspection, and the eight common misunderstandings aboutquality. Through the systematic output of knowledge, it aimedto enhance employees' professional capabilities and solidify the foundation of quality control.
Protection of Customers’ Rights and Interests
Healthcare Co.,Ltd. strictly abides by the Law of the People’s Republic of China on the Protection of Consumers’ Rights and Interests.It has formulated the Customer Complaints, Returns and After-sales Management Procedures management document. This documenthas been fully implemented in every service link. During the customer consultation stage, the Company provides customers withprofessional consultation and personalized recommendations to ensure that customers clearly understand the product features andselect the most suitable products. During the customer's purchasing process, the Company maintains close communication withcustomers to ensure a smooth purchasing experience and that the products can be accurately and quickly delivered to the customers.During the customer’s usage process, the Company has established a sound after-sales service system. Through the first inquiryresponsibility system and the dedicated person responsibility system, it provides fast and professional solutions to ensure customersatisfaction. In addition, the Company has established a membership ecosystem to provide customized services to members, meetcustomer needs in a differentiated manner, and enhance the emotional connection between customers and the brand.
Quality ControlStrategies
During the Reporting Period
The Company organized a total of
quality management trainingsessions. A total of
employees participated in these sessions, and thetotal training duration amounted to
hours.
Product andService Safety andQuality
Innovation-drivenInitiative
Supply ChainSecurity
Protection ofEmployees’ Rightsand Interests
Contribution toSociety
Rural Revitalization
4344
During the Reporting PeriodThe average global customer satisfaction rate of Jiangsu Nisco and Nisco (Thailand) is
98%
, while the average globalcustomer satisfaction rate of Healthcare Co.,Ltd. and its other overseas factories is
92.50%
.
During the Reporting Period
The Company conducted a data security drill once, with
participants. The Company did not have any data securityor customer privacy leakage incidents.
StepOperation DescriptionCustomer complaintchannels
Customers can make complaints through various channels including telephone, offline stores, andonline platforms.Record the content ofcomplaints
After-sales staff shall register complaints of different contents from various channels accordingly andfeedback to the responsible departments.Determine complaintinformation
Complaints will be reviewed for validity and accepted after confirmation that the information is correct.If they do not meet the acceptance criteria, the specific reasons will be explained to the customer in atimely manner.Handle complaints
quickly
In response to customer complaints, the responsible department will formulate solutions and properlyhandle related issues.Response to customer
feedback
The after-sales staff communicate and negotiate with the customer about the solution. If the customeris not satisfied, the matter will be escalated for handling.Completion of customerfollow-up visit
After the problem is resolved, the customer will evaluate and provide feedback on the handling result.
While attaching great importance to the timelinessof handling customer complaints, the Company alsokeeps a close eye on tracking the improvementoutcomes and drawing lessons from pastexperiences. It makes sure to learn from and makeimprovements based on each complaint, promptlymeet customers' needs, enhance the quality of itsservices, fully protect customers' rights and interests,and win customers' trust and recognition with high-quality services.
Healthcare Co.,Ltd. conducts customer satisfaction surveys every year. During the reporting period, the Company conductedsatisfaction surveys on domestic and foreign customers through email distribution and follow-up visits. To ensure the accuracy andvalidity of the survey results, the Company developed a standardized customer satisfaction survey form and conducted in-depthstatistical analysis on the collected data. To further optimize the customer experience, the Company has also incorporated customersatisfaction into its monthly assessment system, which is directly linked to employees' performance coefficients. In this way, it aimsto motivate employees to continuously improve the quality of their services.
Customer Satisfaction
Data Security and Customer Privacy Protection
Responsible Marketing
Healthcare Co.,Ltd. strictly abides by the Advertising Law of the People's Republic of China, the Anti-Unfair Competition Law ofthe People's Republic of China and other laws and regulations, effectively identifies, evaluates, prevents and responds to variouslegal risks, ensures that all the Company's advertising activities are true and legal, do not contain false content, and do not misleadconsumers. At the same time, it resolutely resists all unfair competition and maintains a fair market competition environment.During the reporting period, the Company did not engage in any behavior that damaged the legitimate rights and interests of otheroperators or disrupted the market order.
Healthcare Co.,Ltd. strictly abides by the Data Security Law of the People's Republic of China, Personal Information ProtectionLaw of the People's Republic of China and other laws and regulations. Aiming for zero occurrence of data security incidents andcustomer privacy breaches, it spares no effort to enhance its capabilities in information security and customer privacy protection. Itbuilds an information security system from three aspects: institutional construction, security control, and emergency management.In the future, the company will comprehensively strengthen its data security protection system through measures such asupgrading the data storage architecture, increasing the vulnerability repair rate, enhancing cooperation with third-party services,implementing encryption of sensitive data, updating anti-virus software, and configuring the linkage between situational awarenessand security devices.
The Company applies data accesscontrol, data encryption, data backupand recovery, security configurationmanagement, backup and recoveryplan and other related measuresto strengthen data security;TheCompany provides security awarenesstraining to employees to improvethe Company's overall data securityprotection level.
A Data Information SecurityEmergency Plan has beenformulated and data security drillswere organized. The emergency plancovers a full range of measures fromincident response to subsequentimprovements to effectively deal withdata security incidents.
SecurityControl
| 02 | 03 |
EmergencyManagement
The Company formulates rules andregulations such as the InformationSecurity Training System, InformationSystem Data Management System,Data Access Control ManagementSystem, and Information System DataBackup System.
Systemdevelopment
In September 2024, on the occasion of the National CyberSecurity Awareness Week, the Company actively respondedto the national call and specially invited Internet policeexperts to conduct a cyber security themed training for theCompany's employees. During the training, experts from thecyber police force explained in detail important contentssuch as potential network security hazards, common fraudmethods and prevention measures. By analyzing commonnetwork security issues through real-life cases, employeesgained a deeper understanding and comprehension ofnetwork security. This training effectively enhanced theemployees' awareness of network security.
During the Reporting Period
he number of customer complaints received by the Company was31,145
Among them,
24,360
customer complaintswere successfully resolved, with a customer complaint resolutionrate of
78.21
%.
Cybersecurity Training 案例
CaseStudy
Product andService Safety and
Quality
Innovation-driven
Initiative
Supply Chain
Security
Protection ofEmployees’ Rightsand Interests
Contribution toSociety
Rural Revitalization
4546
2024 Environmental Social And Governance RepoHealthcare
Innovation-driven GovernanceHealthcare Co.,Ltd. has always regarded R&D and innovation as the core driving force for high-quality development. It focuses onthe coordinated development of market demand and independent technologies, continuously leads the technological innovation inthe furniture industry, and provides a solid guarantee for strengthening its market competitiveness. The Company has formulatedmanagement systems such as the R&D Organization Management System, Engineering Technology Research Center ManagementCharter, and R&D Investment Accounting Rules and Regulations to normalize the Company’s scientific research managementwork and continuously improve the Company’s scientific research management level. The Company’s Engineering and TechnologyDepartment is responsible for the Company’s technological research and development work. The Engineering and TechnologyResearch Center adopts a system of director overall responsibility and technical guidance and supervision. The center has a generaloffice, a financial office and various research center branches.
Innovation-driven Initiative
Innovation-driven Strategy
Provincial Recognized Enterprise Technology Center
Healthcare Co.,Ltd. High-tech Enterprise Ceicate Jiangsu Nisco High-tech Enterprise Ceicate
RiskType
Risk Description
ProbabilityofOccurrence
ImpactMagnitude
ImpactTimeframe
Value Chain
Links ofImpact
PriorityRanking
Explanationof FinancialImpact
ResponseMeasuresTechnology Investment RiskThe R&D of newtechnologies faces technicalchallenges such as keytechnological breakthroughsand knowledge acquisition,which may lead to delays inR&D progress, cost overrunsor project failure.
LowMedium
Short- and
medium-term
OperationsMedium
Increasedoperatingcosts
The Company hasincreased its investmentin technological researchand development,established a professionalteam, and carried outindustry-university-research cooperationto enhance its abilityto make technologicalbreakthroughs andthe overall utilizationefficiency of resources.Technical Testing RiskInnovative technologies thathave not been fully testedand verified are prone topoor stability and insufficientreliability in practicalapplications, which will affectthe progress of projectsand the implementation ofresults.
LowMedium
Short- and
medium-term
OperationsMedium
Increasedoperatingcosts
Improve the testingand verification system,conduct multi-scenariotests, and strengthenprocess optimization andquality traceability.
Intellectual Property RisksThe designs of personalizedand intelligent furnitureare easily imitated. If anenterprise fails to provideeffective protection forits intellectual propertyrights, it may suffer frominfringement, which willdampen its enthusiasm forinnovation.
LowMedium
Short- and
medium-term
OperationsMedium
Increasedoperatingcosts
Strengthen intellectualproperty management,apply for patents in atimely manner, optimizepatent layout, andstrengthen protection andrights protection.
Opportunity
Type
Opportunity Description
ProbabilityofOccurrence
ImpactMagnitude
ImpactTimeframe
ValueChain Linksof Impact
PriorityRanking
Explanationof FinancialImpact
ResponseMeasuresMarket Opportunities
Through technologicalinnovation, enterprisescan develop coretechnologies withindependent intellectualproperty rights,thereby expandingproduct functions andapplication scenariosand enhancing productmarket competitiveness.
MediumLarge
Medium-and long-term
Operations,downstream
Medium
Increase inoperatingrevenue
Accelerate technologyR&D and optimizetechnologyreserves;Develop coretechnology patentsto form technicalbarriers;Create innovativeapplication scenariosand promote thedemonstration applicationand market promotionof new technologies andproducts.Brand Opportunities
Continuoustechnological innovationhelps companiesestablish a good brandimage, enhance brandcompetitiveness andincrease corporatemarket visibility.
MediumLarge
Medium-and long-term
Operations,downstream
Medium
Increase inoperatingrevenue
Focus on coretechnology innovationand increase productadded value;Leveragedigital platforms tostrengthen brandpositioning;Strengthenintellectual propertyprotection and maintainbrand value.
During the Reporting Period
national high-tech enterprises,The Company and its subsidiaries have
specialized and sophisticatedenterprise, and
provincially
In order to strengthen the cultivation of innovative talents, the Companyhas formulated internal systems such as the Science and Technology TalentIntroduction Management System and the Science and Technology Personnel
certified enterprise technology centers.
Training Management System. In terms of the introduction of scientific andtechnological talents, the Company recruits openly from the whole society,considering professional background and work experience. It sources talentthrough various channels, such as cooperation with universities and researchinstitutes, internal employee recommendations, social recruitment and onlinerecruitment. At the same time, the Company also attaches great importance tothe training of scientific and technical personnel. The Human Resources Centeris responsible for formulating and implementing the training plan. Throughtraining, it aims to improve the application level of the knowledge and skills ofscientific and technical personnel, so as to meet the needs of the Company’sscientific and technological innovation and development. With these initiatives,the Company is committed to establishing a systematic and standardized talentintroduction and training system to ensure the continuous supply of scientificand technological talents and the continuous improvement of their capabilities,thereby promoting the Company’s technological innovation and development.
Product andService Safety andQuality
Innovation-drivenInitiative
Supply ChainSecurity
Protection ofEmployees’ Rightsand Interests
Contribution toSociety
Rural Revitalization
4748
Closed-loop
Control
The relevant responsible departments shall conduct risk assessments on a regular basis, prepare riskmanagement and control implementation reports, and report risk developments in a timely manner toensure that risk exposure is controllable.
Based on the evaluation results, relevant functional departments formulate full-process risk responseplans from R&D project establishment to market application and promotion to achieve preventivemanagement and control.DynamicControl
Evaluate and classify risks in each link based on the identified potential risks and their impact levels,duration cycles, and probabilities of occurrence.Risk Assessment
On May 30, 2024, a delegation from Nantong University visited Healthcare Co.,Ltd.and launched a special campaign titled “visiting enterprises, expanding jobsand promoting employment”. Through the discussion, both the school and theenterprise expressed that they will take this action as an opportunity to deepenschool-enterprise cooperation, effectively promote high-quality employment ofgraduates, give full play to the respective advantages and resources of enterprisesand schools, cultivate high-quality talents, and jointly explore and implementschool-enterprise cooperation models to solve student employment problems.
Indust-Academia Integration to Achieve Win-win Outcome between School and Enterprise
案例CaseStudy
Impact, Risk and Opportunity Management
Metrics and Targets
Healthcare Co.,Ltd. has gradually established a risk management system covering the entire cycle of R&D and innovation, runningthrough core technology areas. Through systematic risk identification, quantitative assessment, dynamic control and closed-loopmonitoring, it effectively manages potential risks such as technological breakthroughs and market transformation, and grasps the keylinks of product innovation and application.
Healthcare Co.,Ltd. has set up strategic R&D goals and is committed to developing high-quality home products. In the past few years,the Company has won market recognition and customer trust with its excellent quality and innovative design, which lays a solidfoundation for development. Looking ahead, the Company will continue to innovate, expand its market, and create a zero-pressurehome living experience for customers.
Innovation Incentive Mechanism
In the process of promoting sustainable development and achieving long-term value creation, Healthcare Co.,Ltd. deeplyunderstands the importance of innovation and talent. In order to stimulate employees’ innovative potential and promotetechnological breakthroughs and business growth, the Company has formulated and implemented the System for the OrganizationalImplementation, Incentives and Rewards of Scientific and Technological Achievements Transformation and the Performance Appraisaland Reward System for Scientific and Technological Personnel. The Company clarifies the definition, scope of application, divisionof responsibilities, and specific organizational implementation procedures of the transformation of scientific and technologicalachievements. By focusing on the performance appraisal and reward mechanisms for scientific and technological personnel, iteffectively promotes the transformation and application of scientific and technological achievements and stimulates the enthusiasm ofscientific research personnel.Industry-University-Research Cooperation
Healthcare Co.,Ltd. continues to deepen the collaborative innovation between industry, academia and research, formulates theIndustry-University-Research Cooperation Management System, improves the school-enterprise cooperation mechanism, and enhancesthe results transformation capabilities of the Company's Engineering and Technology Research Center. The Company has establishedan open innovation and entrepreneurship platform, integrating internal research and development resources to fully stimulate theinnovation vitality of all employees. At the same time, it strengthens strategic cooperation with universities and relevant partners, andjointly builds an innovation consortium to promote the efficient integration and sharing of elements such as technology and talents.This lays a solid foundation for the company's technological upgrading and sustainable development.
The Company's R&D investment is RMB
141.5059
million and R&D investment accounts for
1.67%
ofthe Operating Income; The R&D team of the parent company of Healthcare Co.,Ltd.and Nisco has
people.During the Reporting Period
Contributing to Industry Development
Healthcare Co.,Ltd. adheres to the concept of shared and win-win cooperation and exchange, deeply participates in the constructionof a collaborative innovation ecosystem in the home furnishing industry. Through diverse cooperation models and innovative initiatives,the company promotes technological innovation and the standardization process within the industry.
Product andService Safety andQuality
Innovation-drivenInitiative
Supply ChainSecurity
Protection ofEmployees’ Rights
and Interests
Contribution toSociety
Rural Revitalization
?Optimize and upgrade existingproducts to improve productquality and performance;?Expand the domestic market andincrease the domestic sales scaleof independent brands.
Sho-term goals(1-2 years)
?Strengthen the research anddevelopment and applicationof new materials and launchinnovative products;?Promote brand internationalizationstrategy and expand brandinfluence.
Medium-term goals(3-5 years)
Long-term goal(5 years and above)
?Promote memory foam productsto change the Chinese habit ofsleeping on hard beds;?Enhance deep sleep for all, andmake MLILY a respected globalbrand.
Based on factors such as industry policy orientation, the evolution of consumption trends, and theupgrading of green manufacturing technologies, the Company systematically identifies the potentialrisks in the process of product innovation and research and development.Risk Identication
e Structure of R&D Personnel (By Educational Background)e Structure of R&D Personnel (By Age)
Master's Degree and AboveBachelor's DegreeJunior College DegreeSenior High School and Below
Under 30 Years Old30-40 Years Old (Incl. 30)40-50 Years Old (Incl. 40 )50 Years Old + (Incl. 50)
16%64%16%
4%1%
35%23%
41%
During the Reporting Period
Three industry-university-research cooperation projects have been carried out, andcooperation agreements have been signed with two institutions of higher learning.
4950
From November 5 to 10, 2024, the 7th China InternationalImport Expo was held in Shanghai. MLILY brought itsdomestic and overseas series of products to the consumergoods exhibition area, displaying the latest smart bedproducts and a series of mattresses imported from Europeand the United States, demonstrating its innovative strengthin improving sleep quality and its influence and brand charmin the global home furnishing market.
Healthcare Co.,Ltd. Paicipated in the 7th China International Impo Expo
案例CaseStudy
Healthcare Co.,Ltd. Participated in the 7th China International
Import Expo
On November 21, 2024, the Company participated inthe Training on Patent Navigation Practice in 2024 andReplacement and Upgrade of Enterprises with QualifiedPerformance Evaluation of Implementing the IntellectualProperty Management System Standard organized by theNantong Intellectual Property Office. Through this training,the Nantong Intellectual Property Office provided systematicguidance to the enterprise.This assistance enabled the enterprise to enhance itsintellectual property management capabilities and alsoplayed a role in promoting the high-quality development ofintellectual property within the region.
Intellectual Propey Training
案例CaseStudy
The Company continues to make breakthroughs in technological innovation andstandard leadership. The Company’s research center has been recognized asthe Jiangsu Space Memory Foam Engineering and Technology Research Centerby the Department of Science and Technology of Jiangsu Province and theDepartment of Finance of Jiangsu Province, and as the Jiangsu Memory FoamEngineering Research Center by the Jiangsu Provincial Development and ReformCommission. It has successively participated in the drafting and evaluation of anumber of international, national, industrial and group standards, covering keyfields such as furniture testing methods and polyurethane foam plastics. In 2024,the Company was awarded the title of “Leader” in the digital transformation ofChina’s light industry, and its own brand “MLILY梦百合” was awarded the “JiangsuProvince Highly Recognized Trademark” certificate.
Intellectual Property Protection
Healthcare Co.,Ltd. attaches great importance to the standardized management of intellectual property rights. It strictly abides byrelevant laws and regulations such as the Patent Law of the People’s Republic of China and the Trademark Law of the People'sRepublic of China. In combination with the Company’s specific situation, it has formulated internal systems such as the IntellectualProperty Management System and the Patent Management System, and established and improved the intellectual propertymanagement system. Through means such as patent applications, legal trademark registrations, and software copyright registrations,it enhances the protection of its independent intellectual property rights.
Healthcare Co.,Ltd.’s membership in indust associations and chambers of commerce
On April 19, 2024, the 83rd China Educational EquipmentExhibition was held in Chongqing. MLILY held a newproduct launch conference for youth zero-pressure sleepwith the theme of “Caring for Children: Don’t Sleep on aHard Bed”. The theme focused on the sleep difficultiescommonly faced by young people today. Through patentedtechnology and AI smart sleep monitoring, it helps youngpeople enjoy high-quality sleep and safeguards theirhealthy growth.
A new product launch conference for the youth series titled "Caring for Children: Don't Sleep on a Hard Bed” was held
案例
CaseStudy
Healthcare Co.,Ltd. Participated in the 83rd China Educational
Equipment Exhibition
From September 11 to 14, 2024, the 54th China (Shanghai)International Furniture Fair was held at the ShanghaiHongqiao National Convention and Exhibition Center.MLILY showcased its sleep products such as zero-pressurepillows, zero-pressure mattresses, and zero-pressure smartbeds, presenting visitors with a multi-faceted zero-pressureliving scenario.
Healthcare Co.,Ltd. Paicipated in the 54th China (Shanghai) International Furniture Fair 案例CaseStudy
Healthcare Co.,Ltd. Participated in the 54th China (Shanghai)
International Furniture Fair
During the Reporting Period
The Company has compiled / revised
national standard.
Product andService Safety andQuality
Innovation-driven
Initiative
Supply Chain
Security
Protection ofEmployees’ Rights
and Interests
Contribution toSociety
Rural Revitalization
S/N
China Chamber of Commerce for Import & Export of Light Industrial Handicrafts
China National Furniture AssociationPolyurethane Products Professional Committee of China Plastics Processing Industry Association
All-China Furniture and Decoration Industry Chamber of CommerceJiangsu Furniture Industry Association, Jiangsu Furniture Decoration Industry Chamber of Commerce
Nantong Home Furnishing Industry Chamber of CommerceShenzhen Furniture Industry AssociationChina Home Textile Industry AssociationChina Chamber of Commerce for Import & Export of Textiles
China Polyurethane Industry AssociationISPA International Sleep Products AssociationChina Industrial Textiles AssociationRugao Entrepreneurs AssociationChinese Sleep Research SocietyJiangsu Educational Equipment Industry AssociationChina Chamber of International Commerce
Indust name and job level
Part-time Vice President Unit
Executive Director UnitExecutive Director Unit
Vice President UnitExecutive Vice President Unit
Vice President UnitGoverning UnitGoverning UnitGoverning UnitMemberMemberMemberMemberMemberMemberMember
Class of Position
5152
During the Reporting Period
The cumulative number of authorized patents reaches
, including
invention patents,
utility model patents, and
design patents.
Supply Chain Security GovernanceHealthcare Co.,Ltd. continues to advance the strategic layout of “global production capacity and international brand” and establish andimprove the supply chain management system. The Company has formulated systems such as the Supplier Management Measures,Procurement Management Operation Measures, Procurement Price Management Operation Measures, and Procurement Payment andInvoice Management System. It has established a full-life cycle management system covering supplier access assessment, cooperationmanagement, dynamic assessment, and exit mechanisms. By standardizing the application of the performance assessment results ofsuppliers, it is ensured that the assessment results can provide targeted rectification suggestions for suppliers, motivate suppliers tocontinuously optimize supply chain management, and achieve a coordinated improvement in the overall competitiveness of the supplychain.
Equal Treatment of Small and Medium-Sized EnterprisesHealthcare Co.,Ltd. strictly abides by relevant laws and regulations and establishes a fair and transparent cooperation mechanism. In2024, the Company ensured the timely and full settlement of payables to small and medium-sized partner enterprises, maintainingstrong cooperative relationships, upholding financial responsibility, and practicing sound asset management to ensure equal treatmentof all partners.
Supply Chain Security
Supply Chain Security Strategy
Science and Technology EthicsHealthcare Co.,Ltd. has always adhered to the development concept of using technology for good and strictly followed the ethicalstandards of science and technology. The Company focuses on the research, development, production and sales of memory foammattresses, memory foam pillows, sofas, electric beds and other household products. During the reporting period, the main businessdid not involve sensitive areas of scientific and technological ethics such as life sciences and genetic engineering.
RiskType
Risk Description
Probability ofOccurrence
ImpactMagnitude
ImpactTimeframe
Value ChainLinks of Impact
PriorityRanking
Explanationof FinancialImpact
ResponseMeasuresRaw material price risk
Affected by factors suchas market supply anddemand relationships,climate, and policyadjustments, if there aresignificant fluctuations inraw material prices, it mayincrease the Company'sproduction and operationcosts and compress theprofit margin.
LowLarge
Short- andmedium-term
Procurement,production
High
Increasedpurchasingcosts andoperatingcosts
We will negotiate withsuppliers to formulatemarket pricing rules,clarify the basis for priceadjustments, regularlyquery and analyze marketconditions and reportthem, and ensure thatprice adjustments aretimely and reasonable.Transportation cost riskAffected by factors suchas climate, transportationdistance, transportationmode, and businessmode, it may lead to adecrease in transportationefficiency, an extensionof the warehousingcycle, and an increase indistribution difficulties,thus triggering the risk ofrising transportation costs.
MediumLarge
Short- andmedium-
term
Warehousing and
transportation
High
Increasedoperational
costs
We will select high-quality logisticssuppliers, conduct strictassessments based onKPIs, ensure the qualityof logistics services andtransportation safety,and require suppliersto flexibly use a varietyof transportationmethods to respond toemergency needs.Policy and Legal Risks
Factors such as thetightening of environmentalprotection policies, the riseof trade protectionism, andadjustments to import andexport policies may causefluctuations in the supplychain, affect the timelinessof order delivery, andincrease the pressure ofoperating costs.
High Large
Medium-and long-
term
Procurement,production, sales
High
Increasedoperational
costs
We will conduct researchon the laws, regulations, andpolicies in key regions. Wewill also communicate withsupply partners in a timelymanner, dynamically adjustthe production capacity andsupply chain, and implementthe strategy of internal andexternal coordination.
Opportunity
Type
Opportunity Description
Probability of
Occurrence
ImpactMagnitude
ImpactTimeframe
Value ChainLinks of Impact
PriorityRanking
Explanationof Financial
Impact
ResponseMeasures
Policy Opportunities
Against the backdropof global industriallayout and under theinfluence of Sino-US trade frictions,the Company canmake full use ofoverseas productionbases to enhance itscompetitiveness.
MediumLarge
Medium-and long-
term
Purchase,
Sales
High
Increaserevenue
We will optimize the layoutof global production basesand focus on regionalcooperation opportunities;Pay close attention topolicy developments,and actively seek policysupport; Effectively respondto tariff barriers, improvecost competitiveness,and optimize resourceallocation.Market OpportunitiesBy settling one-commerce platformsand collaboratingwith new retailenterprises, theCompany canexpand its marketcoverage and obtainreal-time marketfeedback, thusincreasing its marketshare.
HighLarge
Medium-and long-term
Production andsales
High
Increasedoperatingincome
Accelerate theestablishment of ane-commerce team toimprove the operatingefficiency of onlinestores; Join hands withnew retail enterprisesto jointly carry outmarketing activities; Usebig data to gain insightinto consumer needsand optimize productsand services.
Product andService Safety andQuality
Innovation-drivenInitiative
Supply ChainSecurity
Protection ofEmployees’ Rightsand Interests
Contribution toSociety
Rural Revitalization
The Company expands supplier resources through channels such as industry exhibitions and market research according to theannual development plan. The Procurement Department conducts preliminary screening based on key indicators such as scalestrength and qualification duration, and carries out on-site or online due diligence investigations to form supplier files thatinclude evaluation reports, qualification documents, and other relevant information. The Procurement Department completesthe information entry into the SRM/SAP system and establishes the master data of suppliers after being approved through theOA system.Supplier
Entry
Establish three-level exit criteria: 1) Those with major violations will be included in the blacklist and permanently prohibited fromentry; 2) If the KPI is rated at level C for three consecutive times, the last-ranked elimination mechanism will be initiated; 3)Cooperation will be terminated when the product life cycle ends and there is no business match. All exit decisions are recordedand executed through the SRM system.Supplier
Exit
By implementing the annual purchase and sales contract signing model, a four-dimensional evaluation system of “quality, delivery,cost, and service” is established, and performance evaluations are carried out on a quarterly basis. The annual on-site audit planis promoted simultaneously, and a cross-departmental audit team will conduct on-site verification and issue a rectification report.The rectification results will be archived after being confirmed by the joint signature.
SupplierAssessment
5354
Supply Chain Security Impact, Risk and Opportunity Management
Supply Chain Security Metrics and Targets
Clean Purchasing
Healthcare Co.,Ltd. has established a sound supply chain risk management system that comprehensively covers key aspects such asrisk identification, assessment, and control. This enables the Company to effectively deal with uncertainties in the supply chain andcontinuously optimize its risk management processes. At the same time, the Company focuses on exploring potential opportunities,transforming risks into competitive advantages, and constantly enhancing the stability and resilience of its supply chain.
With the goal of building a sustainable supply chain, Healthcare Co.,Ltd. continues to optimize its supplier control system andstrengthen supplier management.
Healthcare Co.,Ltd. regards integrity building as an important guarantee for the Company's sustainable development, and deeplyintegrates it into corporate culture and operational management. During the reporting period, the Company carried out systematicintegrity training for internal procurement personnel. The content covers case analysis of professional ethics and psychology,interpretation of the Company and department-related systems, analysis of typical internal and external cases, and popularization ofcriminal law knowledge. Through multi-dimensional education, it helps procurement staff clearly define the red line of honest andclean work, build a solid ideological defense line, and enhance the awareness of risk prevention.In order to continuously strengthen employees' awareness of integrity, the Company's Procurement Department regularly conductsspecial integrity training to ensure that integrity education becomes normalized and institutionalized. In addition, the Company signedan integrity agreement with external suppliers to constrain cooperation behavior at the contract level, clarify the responsibilities andobligations of both parties, and jointly create a clean procurement environment.
CategoryIndicatorGoalsProgressSupplier AssessmentManagement
Supplier audit rateWillingness to cooperate in signing thesupplier code of conduct
Efforts are made to ensure that suppliers haveundergone strict audits and that 100% of them arequalified; the signing rate of the supplier code ofconduct has increased to maintain the complianceand transparency of the supply chain.
Achieved
Supplier OperationManagement
Supplier Sustainability Training
Efforts are made to improve the suppliersustainability training rate and strengthenthe construction of sustainable supply chainprocurement capabilities.
Achieved
Supplier Training
Healthcare Co.,Ltd. attaches great importance to the ESG managementof suppliers. During the reporting period, the Company held ESG onlinetraining for material suppliers, with focus on in-depth discussions onthe current status and gaps of ESG practices. Through the training,suppliers have gained an in-depth understanding of ESG concepts andhave actively put these concepts into practice in their actual operations.As a result, they have further enhanced their environmental, social,and governance performance. At the same time, the ESG practices ofsuppliers have been effectively integrated with the Company’s on-siteinspection work, ensuring the compliance and coordination of all supplychain links and achieving the goal of building a robust and transparentsupply chain ecosystem.Digitalization
During the reporting period, the Company focused on informatizationand digitalization to promote improvement in the quality and efficiencyof its operations in terms of supply chain optimization and digitaloperations. In the field of supply chain optimization, the Company hasdeepened the application of RFID technology and actively expanded itto overseas production bases to improve global production efficiencyand management level. In the field of digital operation, based on theOrder Management System (OMS), the Company has strengthened itsbusiness analysis function, and optimized inventory management andorder fulfillment strategies by leveraging data insights. By deployingdata analysis tools, it has strengthened the management of stores anddistributors, monitored performance indicators, integrated channelresources, and achieved sales empowerment.
Closed-loopControl
It is necessary to conduct superficial and root cause analysis of identified risks and their potentialconsequences, standardize risk monitoring procedures and mitigation measures, define risk controlelements and assign responsible personnel based on risk assessment results, report categorized risksthrough established channels, and implement closed-loop risk management throughout the entireprocess.
Identified risks should be responded to according to established measures. If the measures areineffective, new measures should be formulated in a timely manner to reduce losses and optimizestrategies. For unidentified risks, response measures should be formulated and verified. If they areeffective, the risk identification list should be updated and submitted for approval.DynamicControl
Analyze and sort the identified supply chain security risks, divide them into major risks, important risksand general risks according to the risk level, and clarify the priorities.Risk Assessment
Risk Identication
Based on the definition of risk levels, the comprehensiveness and effectiveness of risk managementare ensured through periodic identification and graded management. Each business group conductscomprehensive supply chain risk identification on a periodic basis based on the risk identification list.
During the Reporting PeriodThe Company has a total of
2,044
suppliers in in-stock management, among which:
suppliers have passedthe ISO 9001 Quality Management System Certification,
suppliers have passed the ISO 14001 EnvironmentalManagement System Certification, and
suppliers have passed the ISO 45001 Occupational Health and SafetyManagement System Certification.
During the Reporting Period
The Company has carried out a total of
ESGtraining sessions for suppliers. A total of
people have participated in these trainings, andthe total training duration amounts to
hours.
Product andService Safety and
Quality
Innovation-driven
Initiative
Supply Chain
Security
Protection ofEmployees’ Rights
and Interests
Contribution to
Society
Rural Revitalization
5556
Governance of Employee Rights ProtectionHealthcare Co.,Ltd. strictly abides by the Labor Law of the People's Republic of China, the Labor Contract Law of the People'sRepublic of China and other laws and regulations and relevant human rights standards. It has formulated a series of talent recruitmentand employee management systems such as the Recruitment Management System, the Probationary Period Management Measures,the Attendance Management System, and the Position Management Measures. It optimizes employee recruitment, retention,resignation and contract renewal processes, improves the talent selection and appointment system, and builds a team of high-qualitytalents.The Company advocates a fair, diverse and inclusive culture. It does not impose unreasonable restrictions based on gender, age,region, etc. The Company firmly opposes any form of discrimination, forced labor, child labor and other improper practices, andactively protect the legitimate rights and interests of employees. At the same time, the Company pays special attention to the workand living conditions of employees with disabilities and disadvantaged groups, and provides them with necessary help and support.The Company respects and adapts to different cultural backgrounds and values, and provides local culture and policy training toemployees assigned overseas to promote better cross-cultural integration.During the recruitment process, the Company adheres to the principles of “equal opportunity, job matching, fair competition, andadmission based on merit” and encourages the recruitment of talents with different backgrounds and professions to ensure thediversity of the workforce. The Company employs diversified social recruitment channels, such as online recruitment, headhuntingservices, internal referrals, and government-organized job fairs. At the same time, it actively introduces talents through campusrecruitment channels like career talks and job fairs. Through measures such as rights and interests protection, performance appraisal,rank promotion, and welfare systems, the company continuously attracts talents. During the reporting period, the company and itssubsidiaries Shanghai Mlily, Nantong Zero Pressure, Nisco, Shanghai Nisco and Deeplant New Material participated in a total of
job fairs and
recruitment seminars. In addition, the Company actively responds to national policies and actively recruits veteransand disabled people through channels such as participating in job fairs organized by the Veterans Affairs Bureau and special job fairsfor people with disabilities.
Campus Presentation Site
Protection of Employees’Rights and Interests
The Company pays great attention to the occupational health and safety of its employees and has formulated a series of occupationalhealth and safety management documents, including the “Three Simultaneous” Management System for Occupational Health inConstruction Projects and the Workers' Occupational Health Monitoring and File Management System. The Company has establisheda health and safety committee, which is mainly responsible for the company’s occupational health and safety-related decisions andthe handling of major occupational health and safety issues. Through activities such as convening the Health and Safety Committee,organizing Occupational Health Promotion Week, and conducting internal training, the Company promotes the construction ofoccupational health and safety culture. In 2024, the Company and its subsidiary Jiangsu Nisco have passed the ISO45001 occupationalhealth and safety management system certification.
Director of theHealth and SafetyCommittee
Deputy Director of the Healthand Safety Committee
Member of the Health and Safety
Committee
Shall allocate the responsibilities and authorities of relevant roles withinthe environmental, occupational health and safety management system toall levels within the company, communicate them, and maintain them asdocumented information.General Manager
Shall assume the responsibilities for the environmental,occupational health and safety management system in the partsunder their control.e Deputy General Manager and the Management Representativeof the Occupational Health and Safety Management System
Shall assume the responsibilities for the environmental,occupational health and safety management system in theparts under their control.e Heads of Each Depament and theRepresentatives of the Sta
e Structure of theCompany's Health andSafety Committee
During the Reporting PeriodThe total number of employees in the Company is
7,663
. Among them, the number of employees with disabilitiesis
, and the number of employees from ethnic minority groups is
. The labor contract signing rate is100%
. There have been no incidents of child labor or forced labor in any form.
3%Employee structure by gender
47%53%
Number of male employeesNumber of female employees
Employee structure byeducation level
21%
76%
Below Bachelor’s DegreeMaster’s Degree and aboveBachelor’s Degree
Employee structure by age
14%
28%22%
36%
Number of employees aged 30 and belowNumber of employees aged 41-50Number of employees aged 31-40Number of employees aged 51and above
Employee structure divided by
work region
47%
53%
DomesticInternational
Product andService Safety andQuality
Innovation-driven
Initiative
Supply Chain
Security
Protection ofEmployees’ Rightsand Interests
Contribution toSociety
Rural Revitalization
5758
Occupational Health and Safety Management System Certification
Strategy for the Protection of Employees’ Rights and InterestsImpact, Risk and Opportunity ManagementHealthcare Co.,Ltd. is committed to comprehensively managing risks in the human resources field. By systematically identifyingpotential risks and opportunities, it continuously optimizes the human resources risk management system from multiple dimensions toimprove overall management effectiveness.
OpportunityType
OpportunityDescription
Probability
ofOccurrence
ImpactMagnitude
ImpactTimeframe
Value ChainLinks ofImpact
PriorityRanking
Explanationof FinancialImpact
ResponseMeasuresMarket OpportunitiesIn the current context offierce market competition,if the Company canestablish a competitivecompensation and benefitssystem and provide asound talent cultivationmechanism, it will be ableto stand out in the talentmarket, attract a largenumber of professionaltalents to join, and injectvitality into the company'sdevelopment.
MediumLargeMid-termOperationsHigh
Reducedoperatingcosts
Develop a competitivesalary system; establisha tiered and classifiedtalent developmentsystem, and provideopportunities for internaltraining, external furtherstudies, and mentoring;strengthen employer brandbuilding, and publicize theCompany's advantagesthrough social media,campus recruitment andother channels.Management EfficiencyWhen the Companyattaches great importanceto employees’ rights andinterests and providesreasonable compensation,benefits and a goodworking environment,employees' satisfactionand loyalty will beenhanced. As a result,employee turnover will bereduced and managementefficiency will be improved.
MediumMediumMid-termOperationsMedium
Reducedoperatingcosts
Provide diversifiedbenefits, such assupplementary insuranceand flexible leave; createa comfortable officeenvironment, optimizespace layout, andequip with advancedfacilities; establish a fairpromotion and careerdevelopment system toprovide employees witha clear growth path.
RiskType
Risk Description
Probability ofOccurrence
ImpactMagnitude
ImpactTimeframe
Value ChainLinks of Impact
PriorityRanking
Explanationof FinancialImpact
ResponseMeasuresLegal RisksIf the Company failsto strictly comply withrelevant laws andregulations during thelabor managementprocess, it is highly likelyto trigger legal risks andmay bear the liability forfines or civil compensation.
LowMedium
Short-,medium-,and long-term
OperationsMedium
IncreasedoperatingcostsIncreasednon-operatingexpenses
Organize relevantpersonnel to study newpolicies and regulationsin a timely manner;standardize the signingof labor contracts andprovide labor protection;conduct self-inspectionsregularly to promptlyidentify and reducepotential legal risks.
Operational RisksIf the issues concerningemployees' rights andinterests are not properlyaddressed, it will intensifythe tension in laborrelations. Consequently,it will reduce employees'work enthusiasm andefficiency, exertingan adverse impact onthe Company's overalloperation. At the sametime, rising employeeturnover will also increaserecruitment and trainingcosts.
MediumMedium
Short-andmedium-
term
OperationsMedium
Increasedoperating
costs
Unblock thecommunicationchannels withemployees, understandand resolve employeedemands in a timelymanner; improveemployee satisfactionand loyalty byoptimizing salary andbenefits, providingtraining and promotionopportunities, andimproving the workingenvironment.
Product andService Safety andQuality
Innovation-drivenInitiative
Supply ChainSecurity
Protection ofEmployees’ Rights
and Interests
Contribution to
Society
Rural Revitalization
Potential employee rightsrisks are mainly identifiedthrough reviewing labor lawsand regulations, collectingemployee feedback, andanalyzing past cases.
RiskIdentification
The probability of occurrenceand the degree of impactof the identified potentialrisks are evaluated fromdimensions such as legalimpact, reputation damage,and operational obstacles,and continuously track therisk situation.
Riskassessment
RiskResponse
Based on the results of riskidentification, assessmentand monitoring, measuressuch as formulatingcompliance systems andstreamlining communicationmechanisms are taken torespond to risks.
5960
Metrics and Targets
Employee Compensation and Bene?ts
Employee Training and Development
Healthcare Co.,Ltd., in accordance with relevant laws and regulations such as the Labor Law of the People's Republic of China,follows the principle of equal pay for equal work and establishes a compensation system based on the evaluation of job value. TheCompany has formulated employee compensation management systems such as the Performance Management System. Employees’compensation consists of basic salary, post allowance, performance salary, and welfare subsidies. The compensation distributionmethods for different job groups have their own emphases. The performance appraisal cycle covers monthly, semi-annual and annualperiods. The appraisal dimensions focus on both performance and value evaluation. The appraisal process is rigorous and fair toensure the scientific accuracy and effectiveness of performance management. The Company has also established a performancefeedback and complaint mechanism, through which employees can report problems and make suggestions to department leadersor the Human Resources Center through telephone, email or mailbox. On the basis of ensuring fair remuneration, the Company hasestablished a complete employee welfare system to attract and retain outstanding talents and build a stable and efficient team.
Healthcare Co.,Ltd. has formulated the Training Management System and Healthcare Co.,Ltd. Management Trainee Training Methods to improve thestandardization and institutionalization of the Company's training management work. The Company is dedicated to establishing a comprehensiveemployee training and development system. On the one hand, it offers new employees systematic orientation training. This training encompassescareer development guidance and skills training, with the aim to enable them to quickly adapt to the Company and be competent in their positions.On the other hand, the Company continues to improve the construction of its internal lecturer team, and improves the professional level and teachingability of lecturers through measures such as high-quality training team, multi-channel selection and training, practical training and continuousimprovement. In addition, the Company also provides a wealth of online learning platform course resources to meet the learning needs of differentpositions and provide all-round support for employee growth and development.The Company has established a team of internal trainers who possess high professionalism and teaching ability. As of the end of thereporting period, the Company’s in-house trainer team consisted of 73 members. During the reporting period, a total of 93 courseswere pre-trial lectured and qualified. These courses cover multiple categories such as new employee onboarding training, professionalskills training, comprehensive quality training, corporate culture and management training, work safety and quality managementtraining, marketing and customer service training, as well as information technology and office software training. They fully meet thelearning needs of the Company’s employees in various career development fields.The Company is committed to providing employees with good promotion opportunities and development channels. It has formulatedthe Administrative Measures for Job Grade Evaluation and established a diversified job grade system, which covers the managementsequence, professional sequence, and worker sequence. This system provides employees in different positions with a clear careerdevelopment path, ensuring that employees can realize their own values within the company and contributing to the Company’ssustainable development.
Healthcare Co.,Ltd. sets clear employee management objectives, creates a fair and inclusive working environment, safeguardsemployees' equal rights, promotes their all-round development, and ensures their physical and mental health.
ObjectivesAchievements in 2024
No discrimination or child laborAchievedNew employee training coverage rate: 100%AchievedAnnual coverage rate of employees' occupational health examinations: 100%Achieved
“Eaglet Program” TrainingCorporate culture training
High temperature subsidies, overseassubsidies, departmental team building,health check-ups, holiday gifts, movietickets, physiotherapy coupons andother living benefits
| 01 | 02 | 03 | ||||
Pension insurance, unemploymentinsurance, work-related injuryinsurance, maternity insurance,medical insurance, housing providentfund
Basic Protection
National statutory annual leaveand holidays
LeaveManagement
Corporate
Benets
Healthcare Co.,Ltd. has formulated a series of internal systems such as the Responsibility System for the Prevention and Control ofOccupational Disease Hazards, the Annual Plan and Implementation Plan for the Prevention and Control of Occupational Hazards,and the System for the Promotion, Education and Training of Occupational Disease Prevention and Control. Through a series ofmeasures such as establishing monitoring and evaluation records, conducting regular training, and implementing a job rotationmechanism, Healthcare Co.,Ltd. ensures the health and safety of employees at work.
Occupational Health and Safety
Occupational Disease Prevention
The Company has invested a total of a
3.6769
million in employee training. It has carried out
1,229
employee training sessions, with a total of
7,663
people participating in the training. the total training duration is56,396
hours. On average, each employee has received
7.36
hours of training, and the employee trainingcoverage rate is
100%
.
The Company’s social insurance coverage rate is
100%
,The Company’s welfare expenditure was RMB
286.5441
million, of which basic welfare expenditure was RMB
234.1913
million and specialwelfare expenditure was RMB
52.3529
million.
During the Reporting Period
During the Reporting Period
Product andService Safety andQuality
Innovation-drivenInitiative
Supply Chain
Security
Protection ofEmployees’ Rightsand Interests
Contribution toSociety
Rural Revitalization
6162
Occupational Health Initiatives
Healthcare Co.,Ltd. regularly carries out safety hazard inspection and rectification work, covering all departments, workshops,positions and all production facilities, equipment and venues. The aim is to ensure that there are no blind spots and no omissions.During the reporting period, the Company conducted safety hazard inspections and discovered hidden dangers and problems inequipment and facilities, fire safety, and personnel safety.
In terms of emergency management, the Company has formulated comprehensive emergency response plans, special emergencyresponse plans, and on-site disposal plans to standardize the emergency management work for production safety accidentswithin the company. This ensures that the Company can respond to various types of accidents in a timely and effective manner,and minimize casualties and property losses to the greatest extent possible. The emergency plan covers response measures foreach link, including information reporting, early warning, response initiation, emergency disposal, emergency support, responsetermination, post-disposal, and emergency guarantee. The Company has established an emergency organization system consistingof an emergency leading group, emergency working groups, daily management institutions, etc., and has clearly defined theresponsibilities and work processes of organizational institutions at all levels. At the same time, the Company has established anemergency materials and equipment support system, equipped with necessary emergency rescue equipment, apparatus, andprotective supplies, and conducts regular inspections and maintenance.In order to further improve the safety management system, the Company has formulated an efficient safety accident handlingprocess. When a safety accident occurs, the information must be passed to the relevant departments step by step to ensure that thesituation is grasped in a timely manner. According to the severity and characteristics of the accident, the Company will immediatelyactivate the corresponding emergency plan and conduct on-site disposal. Subsequently, the Company conducts a detailed accidentinvestigation, formulates an accident investigation report that includes cause analysis and improvement suggestions, and circulates thereport. Based on the investigation results, the Company implements necessary rectification measures and properly handles the follow-up matters for the affected personnel. Finally, the number of safety incidents is statistically analyzed to identify potential risk points inorder to strengthen preventive measures and reduce the likelihood of future accidents.By integrating the processes of emergency management and safety accident handling, the Company has ensured all-round safetymanagement, ranging from prevention and response to post-accident handling. This provides a solid safeguard for the safety of bothemployees and the company.
?We have established a complete occupational health monitoring file to track andrecord employees’ occupational health status in real time and archive it.?We have regularly organized occupational health education and training toimprove employees’ occupational health awareness and self-protection ability.?We have implemented a rotation/job change mechanism for personnel at riskof occupational diseases, formulated detailed rotation plans, and providednecessary training and health monitoring to reduce health risks caused by long-term exposure to occupational disease hazards.?We strictly require employees to wear appropriate protective equipment whenexposed to occupational hazards, and regularly update and upgrade protectiveequipment.?Through facility renovation, such as closed renovation, installation of ventilation,dust prevention and forced exhaust devices, the hazards of occupationaldiseases such as dust have been effectively reduced.?We have truthfully informed employees of occupational hazards, theirconsequences, and protective measures in the labor contract. Additionally, wehave set up a bulletin board in a prominent location to publicize the regulationsand systems for occupational disease prevention and control, operationprocedures, emergency rescue measures, and the detection results of hazardfactors, so as to enhance employees' awareness of occupational health.a
Workplace Warning Signs
Healthcare Co.,Ltd. Occupational Health
Management System Certification
In response to these hidden dangers and problems, the Company respondedquickly, formulated practical and feasible rectification measures, and strictlyimplemented them one by one according to the plan. In terms of therectification of equipment and facilities, the Company has repaired or replacedthe aging and damaged equipment, improved the safety protection devices,and ensured the safe operation of the equipment. In terms of fire safetyrectification, the Company has strengthened the ventilation in the workshops,improved the fire protection facilities, and ensured the unobstructed fireescape routes. In terms of personnel safety rectification, the Company hasstrengthened safety education and training, enhanced employees' safetyawareness and skill levels, and formulated detailed safety operation proceduresand emergency response plans.
Safety Hazard Assessment
Occupational Health Risk Management
The risk detection and rectification rateof the Company:
100%
The Company conducted
emergency drills for production safety.
The rate of the Company's special operation personnel with valid certificates is
100%
. The investment amount indomestic work-related injury insurance is
RMB
2.2935
million, and the coverage rate of domestic work-relatedinjury insurance for employees is
100%
. The coverage rate of employee physical examinations is
100%
; thedetection rate of occupational disease hazard factors is
100%
; the qualification rate of monitoring of occupationaldisease hazard factors is
100%
; and the number of newly diagnosed occupational diseases is zero.
During the Reporting Period
During the Reporting Period
During the Reporting Period
Product andService Safety and
Quality
Innovation-drivenInitiative
Supply ChainSecurity
Protection ofEmployees’ Rightsand Interests
Contribution toSociety
Rural Revitalization
RiskAssessment
RiskMonitoring
RiskIdentication
By means of on-site investigations, data analysis, expert consultations, and employee interviews, weidentify the occupational disease hazard factors in the workplace, which cover all aspects such asproduction processes, raw materials, equipment, working environment, and employees’ operation habits. Inaddition, we regularly entrust a qualified occupational health technical service institution to conduct testson occupational disease hazard factors for more accurate risk identification.A variety of methods such as the occupational health survey method and the inspection and testingmethod are adopted to comprehensively analyze, qualitatively and quantitatively evaluate the degree ofoccupational hazard operations. According to the level of the risk value, the hazard factors are classifiedinto high, medium and low risk levels.
Monitor the changes in the risk level through means such as regular inspections, occupational healthsurveillance, and daily monitoring, and promptly announce the inspection results.
RiskResponse
Based on the results of risk assessment and monitoring, the Company formulates and implements targetedrisk management measures, including engineering controls, administrative controls, personal protection,and emergency rescue plans. Meanwhile, it establishes and improves occupational health managementsystems, provides protective facilities and personal protective equipment, and organizes occupationalhealth education and training to comprehensively manage occupational health risks and ensure the healthand safety of employees.
6364
On October 25, 2024, in order to enhance employees’ emergency response and rescue capabilities after an accident andenable them to master the accident handling procedures, the Company’s workshop carried out a special drill on chemicalleakage. This drill simulated a chemical leakage incident in a real-life scenario, and detailed rehearsals were conductedfor all aspects, from the discovery of the leakage, the activation of the emergency response plan to on-site handling,and the evacuation of personnel. Through this drill, the emergency response team for leakage prevention has received acomprehensive training, which has enhanced the team’s actual combat capabilities and level of coordinated operations. At thesame time, it has strengthened the employees’ safety awareness of preventing potential hazards in their minds.
From April 25th to May 1st, 2024, it was the OccupationalHealth Publicity Week. The Company actively respondedto the theme call of “having prevention primarily andsafeguarding occupational health”. Guided by Xi JinpingThought on Socialism with Chinese Characteristics for aNew Era, the Company, through various forms, reviewedits achievements, interpreted relevant laws and regulations,promoted exemplary cases, and publicized policies andexperiences. This is conducive to enhancing employees’
On April 24, 2024, the Company held the first quarter safetycommittee meeting of 2024. The meeting comprehensivelysorted out various safety-related matters. It shared safety andenvironmental protection data such as the reporting data ofnear-miss incidents, and presented the situation regardingthe mobile red flag. At the same time, it clearly pointed outtypical accident hazards such as unsafe human behaviorsand unsafe conditions of objects. Discussions were alsocarried out on matters such as traffic safety training andthe filing of personnel transferred to new positions. In thisway, it effectively enhanced employees’ safety awarenessand emergency response capabilities, providing a strongguarantee for the Company's safe production.
Chemical Spill Drill
Launch of Occupational Health Promotion Week
e meeting of the Safety Committee in the rst quaer of 2024 was convened
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On February 27, 2024, the Company’s workshop conducted afire drill to enhance employees’ fire awareness and improvetheir ability to respond to emergencies such as fires. Duringthe drill, the employees acted quickly and proactively. Theywere basically familiar with the methods of evacuationand escape. They mastered the usage of dry powder fireextinguishers proficiently. In the face of the fire danger, theyremained calm and composed, demonstrating excellentemergency response capabilities and a strong spirit ofteamwork.
Fire Drills
案例CaseStudy
In terms of occupational health, the Company provides strategic guidance and a basis for decision-making for occupationalhealth training work by regularly convening meetings of the Health and Safety Committee. By means of the Occupational HealthPublicity Week activities, the Company popularizes occupational health knowledge among employees to enhance their awarenessof self-protection. It also conducts diversified internal training sessions, covering content such as occupational health risks andcorresponding countermeasures for various positions. By implementing multiple measures simultaneously, the Company makesevery effort to promote the construction of occupational health and safety culture, and effectively safeguards the occupationalhealth rights and interests of employees.
Cultivation of Occupational Health and Safety Culture
Supplier Safety ManagementHealthcare Co.,Ltd. attaches greatimportance to safety management incooperation with suppliers. The Companyhas formulated the Safety ManagementSystem for Contractors, Suppliers andRelated Parties and has conducted strictsafety assessments and on-site safetyinspections. Through the safety evaluationand assessment system, potential issuesare promptly identified and contractorsare urged to carry out rectification, so asto ensure the continuous improvement ofthe Company's overall safety level.
Special Operations Training PhotosSupplier Safety Briefing Training
The Company carried out
safety education and training sessions, with a total of
53,673
person-timesparticipating in the training. The total training duration was
80,509
hours, and the coverage rate of employeesreceiving safety education and training reached
100%
.
Employee Care
The Company attaches great importance to employees’ demands and opinions, continuously deepens democratic management,and builds harmonious labor relations. In order to protect employees’ right to know, right to participate, right to express and rightto supervise, the Company has established diversified communication channels, including suggestion boxes, online communicationplatforms and employee seminars. It listens to employees’ voices in real time and continuously improves the existing managementmechanism and other aspects to ensure that employees’ opinions can be fed back to higher levels. At the same time, the Companyconvenes Employee Congress, elects employee supervisors to participate in the company's daily operations and supervision,promotes the continuous deepening of the Company’s democratic management process, and creates a fair, just and transparentworking environment. In addition, all major matters and decisions of the Company will be announced through the internal OAplatform to ensure that all employees have a sense of participation and the right to know about company affairs.
Democratic Governance
awareness of occupational health and hygiene, protecting their health rights and interests. Meanwhile, it helps to foster astrong corporate atmosphere where occupational health is highly valued.
During the Repoing Period
Product andService Safety and
Quality
Innovation-driven
Initiative
Supply Chain
Security
Protection ofEmployees’ Rightsand Interests
Contribution toSociety
Rural Revitalization
6566
Healthcare Co.,Ltd. advocates gender equality and actively cares for and protects the rights and interests of female employees.The Company strictly complies with laws and regulations such as the Law of the People's Republic of China on the Protection ofRights and Interests of Women and the Special Provisions on Labor Protection for Female Employees. It provides eligible femaleemployees with statutory holidays such as maternity leave and breastfeeding leave, and also sets up a mother and baby roomto provide convenience for employees who are pregnant or breastfeeding. On the basis of protecting the rights and interests offemale employees on a daily basis, the Company also pays special attention to holiday care and carries out International Women’sDay activities every year. It cares for female employees in various ways by organizing activities, distributing benefits and othermeasures.
International Women’s Day Activities
Protection of the Rights and Interests of Female Employees
Suppo for Employees in Diculty
Employee Activities
Healthcare Co.,Ltd. actively cares for the disabled, employees from disadvantaged groups and employees in difficulties. TheCompany regularly organizes health examinations and psychological counseling to provide necessary security and psychologicalsupport for the disabled and disadvantaged groups. In terms of daily life, the Company provides convenience in accommodation,transportation and other aspects for employees in need, helping them solve practical difficulties. This demonstrates the Company'shumanistic care. At the same time, the Company attaches great importance to helping employees in difficulties, provides financialassistance to employees and their families who have difficulties in life or suffer from serious illnesses, and provides necessarymedical assistance to help them overcome difficulties.
Healthcare Co.,Ltd. attaches great importance to employee care and is committed to creating a vibrant and cohesive workingenvironment for its employees. The Company regularly organizes various types of employee activities to enrich employees’ leisurelives and enhance team cohesion. During the reporting period, the Company organized a series of activities, including the NewYear’s Day welcome party, grand annual meeting, birthday parties, outdoor expansion activities, etc. Through these team-buildingactivities, a warm, harmonious and positive working atmosphere has been created, enabling employees to feel the warmth of homeand enhancing their sense of identity with the Company.
Company's Annual Meeting
New Year’s Day Welcome Event
Team-building Dinner Activity
Outdoor Expansion ActivityCompany’s Birthday Party
The Company has provided assistance to
employees in need through the Rugao Charity Foundation, with the totalamount of assistance reaching
RMB
thousand.During the Repoing Period
Product andService Safety andQuality
Innovation-driven
Initiative
Supply ChainSecurity
Protection ofEmployees’ Rights
and Interests
Contribution toSociety
Rural Revitalization
6768
Contribution to Society
Practice Social WelfareIn the process of promoting its own sustainable development, Healthcare Co.,Ltd. has long been enthusiastic about supporting publicwelfare undertakings. It takes the initiative to shoulder social responsibilities, actively engages in various public welfare and charitablepractices, and contributes its part to social harmony and progress. During the reporting period, The total investment of the Companyin external donations and public welfare projects is RMB
3.2585
million.
Healthcare Co.,Ltd. has launched the “Hundred Cities, Ten Thousand Volumes” public welfare project, which covered 100 citiesin 2024. This project particularly focuses on senior high school students who are about to take the National College EntranceExamination (Gaokao). It is committed to improving their sleep conditions and enhancing their sleep quality so that they canbetter cope with academic pressure. During the reporting period, the Company donated 3,800 MLILY zero-pressure thinmattresses to adolescent students.
During the May Day holiday, Healthcare Co.,Ltd. donatedzero-pressure mattresses to the sand control workers in theTengger Desert and the actors who played “Monkey King” inthe Wuzhishan Scenic Area in Handan. The move is aimed atimproving their sleep quality and ensuring that these hard-working people can get adequate rest and physical recoveryafter a hard day’s work.
Healthcare Co.,Ltd. has launched a “Sunset Plan” specificallyfor the elderly, which aims to transform hard mattresses sothat the elderly can experience firsthand the positive effectsof soft and well-supported mattresses on sleep quality andphysical health. Through this action, the Company hopes toencourage more elderly people to abandon the outdatedconcept of sleeping on hard mattresses, so that more seniorcitizens can benefit from it.
Healthcare Co.,Ltd. actively supports the development of Go and has contributed to the inheritance and promotion of Goculture by hosting children's Go exchange competitions and the World Go Open. As of the end of 2024, the “MLILY梦百合 Zero-pressure Mattress Cup” Children’s Go Exchange Tournament has covered 29 provinces, autonomous regions, andmunicipalities across the country. A total of 209 games was held, which attracted more than 15,000 children to participate.Among them, 121 games were held in 2024, with more than 8,000 participants. At the same time, the Mlily Cup WorldGo Open has also become one of the indispensable heavyweight events in the Go field. Through these competitions, theCompany enables more teenagers to get exposed to Go, stimulates their interest, and helps to inherit and promote the Goculture among the younger generation.
“Hundred Cities, Ten ousand Books” Public Welfare Project
Mattress Donation Program for Special Workers
Twilight Project
Protect Chess Players’ Sleep
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Support Cultural and Sports UndertakingsFor many years, Healthcare Co.,Ltd. has been supporting cultural and sports undertakings. By sponsoring diverse cultural and sportsactivities such as football matches and Go competitions, it has built a platform for football players and Go players to showcasetheir talents. At the same time, Healthcare Co.,Ltd. has made contributions to promoting the prosperity of social cultural and sportsundertakings. By accurately positioning the two major areas of physical exercise and mental exercise, the Company’s product functionsare closely integrated with cultural and sports scenes. This strategic approach achieves optimal alignment between products and userneeds, further strengthening the brand’s unique advantages in helping physical and mental recovery and providing consumers withmore professional sleep optimization solutions.
Donate Mattress
Product andService Safety andQuality
Innovation-driven
Initiative
Supply ChainSecurity
Protection ofEmployees’ Rights
and Interests
Contribution to
Society
Rural Revitalization
6970
In 2024, Healthcare Co.,Ltd. joined hands with Manchester United Football Club to hold a variety of football culture and brandpromotion activities at home and abroad, including legendary star meet-and-greets, Chinese fans’ UK tour, Manchester Unitedcaravan tour, ILOVEUNITED event, etc. These activities not only effectively enhanced MLILY’s brand awareness in China andoverseas, but also further spread Manchester United’s culture and football spirit.During the Legendary Star Meet-and-Greet event, legendary Manchester United stars paid a visit to the New Century ForeignLanguage School in Shangcheng District, Hangzhou. They carried out football culture exchanges with the school’s footballteam, with the aim to inspire the young players through skill guidance and heart-to-heart talks about dreams. With a specialemphasis on the significance of scientific post-exercise recovery, they donated MLILY zero-pressure thin mattresses to theteam to enhance sleep quality.At the event, both sides jointly launched the co-branded “Dream Theater Sofa”. The football stars personally demonstratedthe product’s ergonomic design and shared their recovery experience from “the pitch to the living room”, marking the officialexpansion of the collaboration from bedroom sleep products to the living room and rest spaces. After the release, the starsparticipated with fans in the “Zero-Pressure Citywalk” themed event. They engaged in a cycling interaction on the mostbeautiful QIU riding track at Binjiang, combining the co-branded sofa experience with landmark buildings, and advocatingMLILY’'s “zero-pressure” lifestyle.
Suppo the Development of Football 案例CaseStudty
Nantong Zhiyun Football Club hassigned a strategic cooperationagreement with MLILY. As thestrategic partner of the club for the2024 season, MLILY will stand on thefield of the Chinese Super League2024 together with Nantong Zhiyun,pursuing the dream in the ChineseSuper League. It will also focus on theurban football cause with NantongZhiyun and make concerted efforts topromote the vigorous development ofurban sports.
Product andService Safety andQuality
Innovation-drivenInitiative
Supply ChainSecurity
Protection ofEmployees’ Rights
and Interests
Contribution toSociety
Rural Revitalization
7172
Establish Scholarship 案例
CaseStudty
Rural RevitalizationWith the acceleration of urbanization, rural areas are faced with numerous challenges, such as population loss, lagging economicdevelopment, and weak infrastructure. To address these issues and promote coordinated urban-rural development, the governmenthas introduced the Rural Revitalization Strategy. This strategy aims to drive the comprehensive development of rural economiesand societies through improvements in industries, culture, ecology, and other aspects. The Company actively implements the ruralrevitalization strategy and deeply integrates the concept of rural revitalization into the project construction and operation process.Through project implementation, the Company has injected new vitality into local economic development, directly stimulated economicgrowth, created substantial employment opportunities, and effectively enhanced residents’ income and living standards. These effortshave laid a solid foundation for stable rural economic development while making active contributions to the deeper implementation ofrural revitalization strategy.Assist Local DevelopmentHealthcare Co.,Ltd. places high value on education. By setting upscholarships in local schools and donating products to collegefreshmen, it actively supports local education and encouragesstudents to pursue excellence. In addition, the Company regularlyconducts stakeholder questionnaires and takes the initiative tocommunicate with the community, so as to collect the opinionsand suggestions of community members. By doing so, it canpromptly adjust and optimize its social responsibility practices,ensuring that its business activities are in harmony with theinterests of the community and promoting the sustainabledevelopment of both parties.
Healthcare Co.,Ltd. has successively established scholarshipsin four local schools in Rugao to reward and commendoutstanding students and teaching staff. This initiative aims toencourage students to study diligently and strive for progressactively. At the same time, it promotes the development oflocal education.
The Company presented MLILY zero-pressure thin mattresses and zero-pressurepillows to the students from Dingyan, Rugao,who had been admitted to undergraduateprograms in that year. With such practicalactions, the Company supported localeducation and encouraged the students toachieve greater academic accomplishments.
Donate Mattresses to Students in Dingyant
案例CaseStudty
Respond to the Construction of the Belt and Road InitiativeHealthcare Co.,Ltd. has always adhered to the development strategy of “globalization of production capacity and internationalization ofbrand”. In response to China’s Belt and Road Initiative for cooperation and the development pattern of the domestic and internationaldual circulation, the Company has successively established production bases in places such as Serbia and Thailand, contributing tothe promotion of regional economic development and the deepening of international cooperation. At present, Healthcare Co.,Ltd.’sproducts have covered hundreds of countries and regions around the world, including countries along the “Belt and Road”. Theseinitiatives demonstrates its strong international competitiveness and market penetration.In response to the construction of the “Belt and Road Initiative”, Nisco Thailand Co., Ltd., the Thai production base, attaches greatimportance to employee care and cultural integration. During the Thai New Year (Songkran Festival), all employees participated ina sacred water blessing ceremony to pray for smooth production, safety, and prosperity in the coming year. Additionally, staff andmanagement engaged in a mutual water-pouring ritual to exchange good wishes. For Christmas, the Company organized a giftexchange activity, where Chinese and Thai employees exchanged mystery gift boxes within a set budget to strengthen camaraderie.In addition, the Company has established a care mechanism for dispatched employees, regularly organizing activities such ascommunication meetings and group purchasing. These measures help to alleviate the homesickness of foreign employees and ensurethe stability of the talent team.
Songkran Festival ActivityChristmas Gift Exchange
Healthcare Co.,Ltd. allocated RMB
1.2119
million for its special scholarship program and donatedRMB
72.7
thousand to support college-boundstudents in Dingyan.
During the Repoing Period
Product andService Safety andQuality
Innovation-driven
Initiative
Supply ChainSecurity
Protection ofEmployees’ Rightsand Interests
Contribution toSociety
Rural Revitalization
7374
Healthcare 2024 Environmental Social And Governance Repo
Work Together to Achieve aBetter Future
Strengthen the Leadership of Pay BuildingCorporate Governance ComplianceCompliance and Risk ManagementProtection of Shareholders’ Rights and InterestsAnti-unfair CompetitionAnti-Commercial Bribe and Anti-Corruption
7576
Healthcare 2024 Environmental Social And Governance Repo
Strengthen Political ConstructionIn its Party building work, Healthcare Co.,Ltd. has always been guided by XiJinping Thought on Socialism with Chinese Characteristics for a New Eraand adhered to the spirit of the 20th National Congress of the CommunistParty of China. It has been constantly strengthening the work of grassrootsParty building. Considering the study and education of Party discipline as animportant way to enhance political awareness, Healthcare Co.,Ltd. activelyexplores the mode of grassroots Party building work that is characteristic ofnon-public enterprises. By doing so, it converges the ideological consensusfor promoting the healthy development of the enterprise, promotes theintegration of Party building work and business operations, and continuouslyinjects "red impetus" into the enterprise's development.
Healthcare Co.,Ltd. integrates the study and education of the history of the Communist Party of China, and continuouslystrengthens the work of primary-level Party building. The Party members fully fulfill their original aspirations and missions,strengthen their sense of responsibility and commitment, and enhance their political literacy through strengthening educationand training. The Party Committee of the Company adheres to regarding education and training as an important means toimprove political literacy. Through multi-level and multi-faceted institutional training, it has greatly enhanced the sense of missionand responsibility of Party members at the front line of projects, improved their political literacy, and laid a solid foundation forpromoting the in-depth development of Party building work.At the same time, the Company insists that party building work on the front line of the project must improve organizational structureand establish activity bases. The Party Committee of the Company formed a special research group on Party building and carriedout research work at the front line of projects four times. Through forms such as conversations with project personnel and fillingout questionnaires, it gradually ascertained the construction situation of Party building work in each project. In light of the actualconditions of each project, we established a “Red Alliance” with the construction party and established party member activity roomsin strict accordance with the “six-have” standards. The Company adheres to setting examples and leading the way, and give full play
Strengthen the Leadership ofPay Building
Healthcare Co.,Ltd. organized and carried out specialtraining sessions three times for Party members,Party membership activists, and candidates for Partymembership at the front line of projects, with a totalof
person-times receiving the training.
Focus on Gathering Strength and Cultivating the Soul
Corporate Governance ComplianceHealthcare Co.,Ltd. strictly complies with the requirements of laws, regulations, and regulatory documents such as the CompanyLaw of the People's Republic of China, the Securities Law of the People's Republic of China, and the Governance Code for ListedCompanies. It formulates and improves internal systems such as the Articles of Association of the Company, and establishes agovernance structure in which the General Meeting of Shareholders, the Board of Directors, the Board of Supervisors, and themanagement team (the “three meetings and one level”) each perform their respective responsibilities and cooperate in a coordinatedmanner. Together, they ensure the scientific, standardized, and efficient operation of the Company's governance.
General Meeting of Shareholderst
The General Meeting of Shareholders is the Company's highest authority.The Company strictly follows the rules and requirements of the Rules forthe General Meeting of Shareholders of Listed Companies to standardizethe convening and notification of shareholders' meetings, agenda review,voting procedures and other processes, and hires lawyers to witnessthe legality and standardization of shareholders’ meetings to ensurethat the shareholders' meeting exercises its decision-making power onmajor matters in accordance with the law and that the resolutions of theshareholders' meeting truly reflect the wishes of shareholders.
to the exemplary role. The Party branch of the Companyattaches great importance to giving full play to the vanguardand exemplary leading role of Party members during theimplementation of projects. It has set up Party memberresponsibility areas and Party member demonstration postsat the front line of projects, and actively carried out activitiessuch as “Showing Identity, Being a Vanguard, and Establishinga Brand". It guides Party members and leaders at the frontline of projects to take the lead in in-depth study, promotingwork, and doing a good job in team building, thus creating astrong atmosphere of “comparing, learning, catching up, andsurpassing”.
During the Repoing Period
The Company has
party branch, with
party members.
During the Repoing Period
GeneralMeeting ofShareholders
Board of DirectorsBoard ofSupervisorsO?ce of the Boardof Directors
Special Meeting ofIndependent DirectorsStrategic and SustainableDevelopment CommitteeNominationCommittee
Audit Committee
President’s Oce
Managerial Level
The Company held
GeneralMeeting of Shareholders and reviewed
proposals.
During the Repoing Period
Strengthen theLeadership of PartyBuilding
CorporateGovernanceCompliance
Compliance andRisk Management
Protection ofShareholders’Rights and Interests
Anti-unfairCompetition
Anti-commercial
Bribery andCorruption
7778
Healthcare 2024 Environmental Social And Governance Repo
Training on the New Company Law
案例CaseStudty
Board of DirectorsThe Company abides by national laws and regulations and management rules such as the Rules of Procedure for the Boardof Directors, the Implementing Rules of the Strategy and Sustainable Development Committee, the Implementing Rules of theNomination Committee, the Implementing Rules of the Audit Committee, and the Implementing Rules of the Remuneration andAppraisal Committee. It clarifies the procedures for the deliberation and work of the Company's board of directors and variousspecial committees, as well as the responsibilities and authorities of each governance entity, ensuring that the Company'sgovernance structure is scientific and reasonable, the decision-making procedures are rigorous and compliant, and the operation isefficient and transparent. It makes decisions with a scientific attitude to protect the rights and interests of shareholders.Healthcare Co.,Ltd. is committed to building a professional and diversified board of directors. The Company has formulated the Systemof Work of Independent Directors to provide professional and objective advice for the Company's business development and effectivelyensure the Company's compliance operations. The Company's Board of Directors consists of 7 directors, including 3 independentdirectors, accounting for 42.86% of the board members; and 1 female director, accounting for 14.29% of the board members. TheCompany selects board members based on the principle of diversity, taking into account factors such as the candidates' gender, age,cultural and educational background, and professional experience, in order to improve the scientific and professional nature of theBoard of Director's decision-making. The board members of the Company have diverse professional backgrounds and rich experiencein industry technology, financial management, corporate governance and other fields. They combine their professional advantages toprovide decision-making support for the Company and promote the Company's sustainable and healthy development.
Executive Compensation
Healthcare Co.,Ltd. strictly complies with the relevant provisions of the Company Law of the People’s Republic of China, theGovernance Code for Listed Companies, and the company’s salary management system. Adhering to the principles of “openness,fairness, and transparency”, it has formulated the Salary Management System for Directors, Supervisors and Senior ManagementPersonnel. The salaries of senior executives consist of fixed annual salaries, floating annual salaries, and other benefits. In addition,senior executives can be given term incentives or medium- and long-term incentives according to relevant regulations, which fullystimulates and mobilizes their work enthusiasm and creativity. At the same time, in light of the Company's profitability, fluctuations inthe market salary levels, and the Company's operational and development strategies, the Company will make irregular adjustments tothe remuneration of its directors, supervisors, and senior management personnel following the established procedures. This ensuresthat the salaries of directors, supervisors, and senior management personnel are in line with the Company's business performance,and promotes the sustainable and stable development of the company.
Compliance operations are the cornerstone of sustainable development of an enterprise and a basic requirement for an enterpriseto gain a foothold in the market. Healthcare Co.,Ltd. strictly complies with relevant laws and regulations and has formulated theMeasures for Contract Management, the Measures for Supplier Management Operations, and the Measures for Procurement RiskManagement. At the same time, the Company closely combines risk management requirements, establishes a sound compliancemanagement system and continuously improves the company's legal and compliant business management level. Meanwhile, theCompany has formulated the Group Tax Management System. The Group Tax Management Department conducts regular taxinspections and risk assessments of each subsidiary. In the face of major external tax inspections and audits of each subsidiary, itactively provides technical support and assists each subsidiary in handling these situations, thereby enhancing the ability to complywith tax management regulations.
Compliance and RiskManagement
During the reporting period, the Company conductedan interpretation of the key revised contents of theNew Company Law for the personnel of the Company’sinternal Board Secretary’s Office, Finance Department,Audit Department, and other departments related to theCompany’s operations. The purpose of this training was todeeply analyze the impact of the new law’s revisions on theCompany’s operations, ensuring that the personnel of alldepartments accurately understand and effectively implementthe provisions of the new law. In this way, the Company’scompliance management level can be improved, and theCompany’s stable development can be guaranteed.
The Company held
board meetings and reviewed
proposals. Convened the Strategy and Sustainable DevelopmentCommittee
time, the Audit Committee
times, and the Remuneration and Appraisal Committee
time, with a totalof
motions being deliberated.
Board of SupervisorsThe Board of Supervisors is an important supervisory body within the Company.It supervises the Company's decision-making procedures, the establishment andimplementation of internal control systems, and other legal operations to promotethe Company’s standardized operations. The Company has formulated the Rulesof Procedure for the Board of Supervisors to strictly regulate the meeting methodsand procedures of the Board of Supervisors. Through regular and irregularmeetings, it conducts comprehensive supervision on the performance of theCompany's directors and senior management and the Company's standardizedoperations, strictly performs its supervisory duties, and ensures that the rights andinterests of the Company and shareholders are effectively protected. As of the endof the reporting period, the Company’s Fourth Board of Supervisors had a total ofthree supervisors, one of whom was an employee representative supervisor.
The Company has carried out legal training
times in total, with a total of
4,437
people receiving thetraining.
Male50 to 60 years old (excluding 60 years old)Junior college educationFemale
Aged 70 and aboveMaster’s degree and above
14%86%57%
43%29%28%29%14%
60 to 70 years old (excluding 70 years old)Undergraduate education
Distribution by age
Distribution by educationbackground
During the Repoing Period
Distribution by gender
The Company held the Board ofSupervisors meeting
timesand deliberated
motions.
During the Repoing Period
During the Repoing Period
Compliance Management
Strengthen theLeadership of Party
Building
CorporateGovernanceCompliance
Compliance andRisk Management
Protection ofShareholders’Rights and Interests
Anti-unfairCompetition
Anti-commercial
Bribery andCorruption
7980
Healthcare 2024 Environmental Social And Governance Repo
The Company has completed
audit plans, yielding a direct benefit of about
million yuan. In addition, a total of
initiatives, such as streamlining and standardizing processes and systems and facilitating the solidification of the ITsystem, have been implemented.
During the Repoing Period
Internal ControlBased on the internal control management of the enterprise, Healthcare Co.,Ltd. continuously improves the Company’s compliance,internal control, and legal management system. By formulating enterprise management and internal control systems such as theInternal Audit Management System, the Measures for Accountability Management, and the Measures for the Assessment andManagement of Audit Rectification Efficiency, it clarifies the division of responsibilities and rights of various institutions as well asprocess rules. It integrates compliance and internal control into all aspects of the enterprise's operations, standardizes the Company'sinternal control behaviors, and promotes the Company to achieve its long-term development strategic objectives.Healthcare Co.,Ltd.is committed to building a comprehensive and effective risk management system to ensure the safe and stable operation of theCompany and achieve sustainable development. By establishing and improving the risk management mechanism, the Company hasformed a management closed loop of pre-risk prevention and control, in-process monitoring and early warning, and post-evaluationand optimization to ensure safe and stable operations. At the same time, Meanwhile, the Company gradually improves the riskassessment form, establishes a risk map, formulates a risk control list, monitors risks, and effectively implements internal control ofrisks.
Information DisclosureHealthcare Co.,Ltd. strictly complies with the requirements of laws and regulations such as the Administrative Measures for InformationDisclosure of Listed Companies and does a good job in information disclosure. It formulates internal systems such as the ManagementSystem for Information Disclosure and the Registration Management System for Registration of the Insider Information. The Companystrengthens the management of information disclosure affairs. These efforts ensure the truthfulness, accuracy, completeness andtimeliness of the information disclosure content, improve the quality and transparency of information disclosure, and protect theinvestors’ right to know. At the same time, the Company effectively manages the confidentiality, registration, and control of insideinformation. It also enhances the legal awareness and self-discipline of the Company’s shareholders, directors, supervisors, seniorexecutives, and other insiders with access to such information. By doing so, the Company aims to prevent illegal and unethicalactivities, such as insider trading.
In 2024, the Company actively communicated with the capitalmarket through General Meeting of Shareholders, performancebriefings, and other means. It held a semi-annual performancebriefing in the form of video and online interaction, which moreintuitively demonstrated the Company’s operating conditions andhighlights. At the same time, the Company also communicateswith small and medium-sized investors through various channels,such as the Shanghai Stock Exchange E-interaction platform,telephone hotline, email, and the investor relations column onthe Company’s official website. This is to listen to the demandsof small and medium-sized investors and help them betterunderstand the company's development situation.Returns to Shareholders
In accordance with the requirements of documents such as the Regulatory Guidelines for Listed Companies No. 3—Cash Dividends ofListed Companies the Company convened the 2023 Annual General Meeting of Shareholders on May 17, 2024. The Motion on Revisingthe Articles of Association of the Company was deliberated and approved at the meeting. The relevant clauses regarding profitdistribution were revised. The deliberation procedures and content comply with the requirements of laws and regulations, which fullyprotects the legitimate rights and interests of small and medium-sized investors. The dividend standards and dividend ratios are clear,and the conditions and procedures for adjusting the profit distribution policy are compliant and transparent safeguarded the legitimaterights and interests of the company and all its shareholders.The Second Interim General Meeting of Shareholders of the Company in 2024, which was convened on November 29, 2024,deliberated and approved the Proposed Profit Distribution Plan of the Company for the First Three Quarters of 2024, and agreedthat the Company would distribute a cash dividend of 0.05 yuan (including tax) per share to all shareholders. On January 9, 2025, theCompany completed the implementation of this equity distribution, and distributed a total cash dividend of RMB 28,529,344.25 (taxincluded).
Anti-unfair CompetitionThe Company strictly abides by the Anti-Monopoly Law of the People's Republic of China, the Anti-Unfair Competition Law ofthe People's Republic of China and other laws and regulations. It advocates fair trade and fair competition, and is committed tomaintaining a healthy competitive environment. It also aims to establish good relationships of mutual trust and mutual benefit withcustomers, partners, employees, and all sectors of society. In order to effectively prevent unfair competition, the Company hasestablished a prevention system covering multiple aspects such as monitoring, rights protection, and standardized management. TheCompany has not been sued or subject to major administrative penalties due to unfair competition behavior.
The Company has establisheda dedicated market intelligenceteam. This team is responsible forcollecting and analyzing marketdynamics information, monitoringsales data on e-commerceplatforms, consumer reviews, andthe sale of counterfeit and shoddyproducts. It can detect maliciouscompetition behaviors in a timelymanner.
DataMonitoring
Differentiated rights protectionstrategies are formulatedaccording to factors such as theseverity of the infringement andthe situation of the infringing party.For example, warning letters aresent for small-scale infringements,while lawsuits are taken for large-scale infringements.
RightsProtection Strategy
The Company standardizes themanagement of online marketingchannels, closely cooperates withe-commerce platforms, cracksdown on false advertising andunfair competition behaviors, andensures that marketing activitiescomply with the Advertising Lawof the People's Republic of China,the Anti-Unfair Competition Lawof the People's Republic of China,and the rules of the platforms.
StandardizedManagement
Investor Relations
The Company attaches great importance to investor relations management and strictly abides by the Company Law of the People’sRepublic of China, the Guidelines for Investor Relations Management of Listed Companies and other laws and regulations. TheCompany has formulated the Investor Relations Management System to strengthen effective communication between the Companyand investors. These efforts have further improved the corporate governance structure, and effectively protected the legitimate rightsand interests of investors, especially small and medium-sized investors.
The Company held
performance briefings, interactedwith investors
times on the E-interaction platformwith a response rate of
100%,
and answeredinvestors' phone calls
times.
The Company disclosed
announcement documents, including
regular reports and
interimannouncements. The Company had no penalties due to information disclosure violations.
During the Repoing Period
During the Repoing Period
Protection of Shareholders’ Rightsand Interests
Strengthen theLeadership of Party
Building
CorporateGovernanceCompliance
Compliance andRisk Management
Protection ofShareholders’Rights and Interests
Anti-unfairCompetition
Anti-commercial
Bribery andCorruption
8182
Healthcare 2024 Environmental Social And Governance Repo
In December 2024, Healthcare Co.,Ltd. launched a coursetraining on the theme of anti-unfair competition on the onlineOA platform for all company members. The training contentincludes seven aspects: commercial confusion, commercialbribery, false advertising, infringement of trade secrets,false sales with prizes, commercial defamation, and unfaircompetition in the Internet field. Through case analysis andrule interpretation, it helps employees clearly understand therelevant national legal requirements and standardize dailybusiness operations.
Anti-Unfair Competition Training
案例CaseStudty
Anti-unfair Competition Law Training
Anti-commercial Bribe andAnti-corruption
Healthcare Co.,Ltd. has formulated the Fraud Audit Management System, which strictly standardizes the internal audit process. Itfocuses on preventing and controlling the risks of commercial bribery, embezzlement, and fraud, and always maintains a high level ofvigilance against commercial bribery, embezzlement, and fraudulent acts in its internal audit operations. The Company continuouslystrengthens its efforts in combating commercial bribery and embezzlement, and strictly adheres to the fraud audit managementsystem. By systematically assessing the likelihood of fraud occurring, it maintains professional prudence regarding risks such asfraud that damages the organization's economic interests and fraud committed to seek the organization's economic interests. Itpromptly detects potential signs of fraud and conducts a comprehensive analysis of the possible scope and complexity involved. Onthis basis, the Company designs and implements targeted audit procedures. At the same time, the audit department maintains closecommunication with relevant management and the Board of Directors to ensure information transparency and timely decision-making,and effectively safeguard the Company's economic interests and operational security.
Anti-commercial Bribe and Corruption Measures
The Company signs an employee integrity agreement with employees when they join the Company, and incorporatesanti-commercial bribery and anti-corruption content into the employee reward and punishment system trainingsystem to educate and constrain employees to strictly abide by it;The Company stipulates that an integrity clause shall be added to the text of every contract concluded in the company'sname. This clause is also incorporated as a key inspection item in the contract review process. By embedding anti-commercial bribery and anti-embezzlement measures into the day-to-day business operations at the front line, theCompany aims to improve the effectiveness of its prevention and response strategies;The Company now has a complaint hotline and an audit complaint hotline to accept reports on integrity and keep thereported information strictly confidential.
?
??
Future Outlook
Riding the wind and breaking the waves, we reflect on ouroriginal aspiration; with dedication and practical actions, we willwrite a new chapter. Looking into the future, although HealthcareCo.,Ltd. has gone through ups and downs, its original intentionremains the same. We will go through cyclical fluctuations,maintain our value pursuit, and insist on “improving the deepsleep of human beings”. In the face of a market environmentfull of challenges and opportunities, we will always maintains asense of awe and a positive mindset, and continuously enhanceour core competitiveness and innovation capabilities.
The Company carried out anti-monopoly and fair competition training, with a totalof1,789
person-times participating.During the Repoing Period
The total anti-bribery and anti-corruption training provided by the Company to employees lasted
393.89
hours,and
employees participated in the training; The number of management personnel who participated in the anti-commercial bribery and anti-corruption training is
. The signing rate of the commercial ethics documents, such asthose regarding the integrity in employment, among newly recruited employees of the Company is
100%
; TheCompany has not had any commercial bribery or corruption incidents.
During the Repoing Period
Anti-unfairCompetition
Anti-commercial
Bribery andCorruption
FutureOutlook
8483
Healthcare 2024 Environmental Social And Governance Repo
IndicatorUnit2024
EconomicPerformance
Operating IncomeRMB 10,000844,938.62Total TaxesRMB 10,00026,013.98General Meetingof Shareholders
Number of General Meeting of Shareholders heldTime3Matters approved by General Meeting of ShareholdersItem20
Board of
Directors
Number of Board of Directors heldTime6Matters approved by the Board of DirectorsItem42Number of board membersName7Including: Number of independent directorsName3
Number of female directorsName1
Board of
Supervisors
Number of meetings of the Board of SupervisorsTime5Matters reviewed and approved by the Board of SupervisorsItem21Number of the Board of Supervisors membersName3Among them: The number of employee-representative supervisorsName1Compliance andinternal control
Number of legal training sessionsTime26Number of people trained in legal trainingPerson4,437Business EthicsAnti-monopoly and fair competition training Person-time1,789
The number of management personnel who participated in the anti-commercial bribery and anti-corruption training
Person40Number of employees who participated in anti-commercial bribery and anti-corruption training
Person967Total instructional hours dedicated to anti-commercial bribery and anti-graftcompliance training delivered to employees
Hour393.89The signing rate of the business ethics book such as the integrity andprofessional conduct of newly recruited employees of the Healthcare Co.,Ltd
%100Commercial bribery and corruption incidentsTime0Amount of money involved in lawsuits or major administrative penalties dueto unfair competition by the Company
RMB 10,0000Party Building
Number of Party BranchesUnit1Number of Party membersPerson103Special training for front-line Party members, Party-entry activists, and Party-development candidates in projects
Time3Person-times of special training for front-line Party members, Party-entryactivists, and Party-development candidates in projects
Person-time47Investorengagement
Number of performance briefings heldTime4Number of interactions with investors on E-interactionTime99E-interaction and investor interaction response rate%100Number of investor calls receivedTime961InformationDisclosure
Number of periodic reports disclosed externallyCopy4The number of interim announcements disclosed externallyCopy120Number of penalties for violations in information disclosureTime0
Key Performance FormGovernance PerformanceEnvironmental Peormance
Appendix
Key Performance Form
IndicatorUnit2024
Environmental
protection
Total environmental investmentRMB 10,000260.15Incidents of administrative penalties imposed by relevantdepartments such as ecological and environmentaldepartments due to environmental problems
Case0Number of environmental training sessionsTime11Number of participants in environmental trainingTraining participant271Total hours of environmental trainingHour521
Greenhouse gases
Total GHG EmissionstCO
e37,690.85Direct GHG Emissions (Scope 1)tCO
e 2,708.17Indirect GHG Emissions (Scope 2)tCO
e34,982.68GHG Emission IntensitytCO
e/ RMB 1 million (revenue)4.46GHG Emission ReductiontCO
e4,010.80
Energy Utilization
Comprehensive Energy Consumptiontce9,956.12Including: Natural gasm
906,440.71DieselLiter231,489.50GasolineLiter66,923.33Purchased heatGJ3,112Purchased ElectricitykWh64,555,275.96Renewable energy (solar power generation)kWh2,936,217.10Total non-renewable energy consumptiontce9,595.26Total renewable energy consumptiontce360.86Comprehensive energy consumption intensitytce/RMB 1 million (revenue)1.18Waste gasemissions
Waste Gas Emissionsm
388,338,368Waste Gas Emission Intensity
Cubic meters/million yuan in
revenue
45,960.54
8586
IndicatorUnit2024
Emission ofvarious typesof exhaust gas
pollutants
Nitrogen oxide (NOx)ton0.01Sulfur dioxideton0.21Volatile Organic Compound (VOC)ton0.08Particulate matter (PM)ton0.69Non-methane hydrocarbonston0.70
Solid waste
Volume of non-hazardous waste generatedton9,773The intensity of non-hazardous waste generation ton(s) per million yuan of revenue1.16Total amount of hazardous waste generatedton226.88The intensity of hazardous waste generationton(s) per million yuan of revenue0.03Waste disposal compliance rate%100WaterResourceUtilization
Quantity of Municipal Water Purchasedm
339,334.85Water consumption intensity ton(s) per million yuan of revenue40.16
Environmental Peormance
1、The statistical scope for waste gas emissions, types of waste gas pollutants emitted, and solid waste statistics includes Healthcare Co.,Ltd., Jiangsu
Nisco, Deeplant New Material, overseas production bases.
2、The statistical caliber of GHG Emission Reduction is the parent company of Healthcare Co.,Ltd.
3、The “revenue per million yuan” in greenhouse gas emission intensity, comprehensive energy consumption intensity, exhaust gas emission intensity,
the waste generation amount intensity ，and water consumption intensity all refers to the operating revenue in the consolidated financialstatements of the Company for the year 2024.
IndicatorUnit2024
Innovation-driven
Investment in R&DRMB 10,00014,150.59The proportion of R&D investment in operating revenue%1.67Participate in the formulation/revision of national standardsItem1Industry-university-research cooperation projects Number3Cooperation agreements signed with educational institutions Number 2Total number of authorized patentsItem297Including: Cumulative number of authorized invention patentsItem48
Cumulative number of authorized utility model patentsItem108Cumulative number of granted design patentsItem141
Quality and safety ofproducts and serviceszZ
Number of products that are required to be withdrawn and recalled forhealth and safety reasons
Case0Number of participants in quality management training
Trainingparticipant
Total hours of quality management trainingHour481Number of quality management training sessionsSession21Protection of Customers’
Rights and Interests
Number of customer complaintsCase31,145Number of customer complaints resolvedCase24,360Customer Complaint Resolution Rate%78.21Data Security and PrivacyProtection
Number of data security and customer privacy leakage incidentsCase0Data security drills carried outTime1Number of people participating in data security drillsPerson556
Supply Chain Security
Total number of suppliers under in-stock managementNos.2,044Among them: number of suppliers with ISO 9001 Quality Management
System certification
Nos.220Number of suppliers with ISO 14001 EnvironmentalManagement System certification
Nos.176Number of suppliers with ISO 45001 Occupational Healthand Safety Management System certification
Nos.122The ESG training sessions conducted for suppliersSession 18The total participants in the ESG training sessions conducted for suppliers
Trainingparticipant
The total duration of ESG training conducted for suppliersHour 137
Product Performance
8788
Healthcare 2024 Environmental Social And Governance Repo
IndicatorUnit2024年
Labor rights
Percentage of contract workers%100Social Insurance Coverage Rate%100Incidents of child labor and forced laborCase0Welfare expenditureRMB 10,00028,654.41Amongthem: Expenditureson basic benefitsRMB 10,00023,419.13
Special welfare expenditureRMB 10,0005,235.29Total Number of EmployeesPerson7,663Amongthem: Number of employees of minority nationalitiesPerson646
Number of employees with disabilitiesPerson55
Proportion of male employees%53
Proportion of female employees%47
Proportion of employees aged 30 and below%28
Proportion of employees aged 31-40%36
Proportion of employees aged 41-50%22
Proportion of employees aged 51 and above%14
Proportion of employees with education below bachelor’s
degree
%76
Proportion of employees with bachelor’s degree%21
Proportion of employees with master’s degree and above%3
Proportion of domestic employees%53
Proportion of overseas employees%47Number of employees assisted through Rugao Charity FoundationPerson28Amount of assistance through Rugao Charity FoundationRMB 10,0005.90Investment in employee trainingRMB 10,000367.69Number of training sessionsSession1,229Total training hoursHour56,396Total number of employees receiving trainingPerson7,663
Occupationalhealth and safety
Investment in work-related injury insuranceRMB 10,000229.35Coverage rate of work-related injury insurance for employees%100Coverage rate of physical examinations for employees%100The detection rate of occupational disease hazards%100Pass rate of occupational disease hazard detection%100Number of new cases of new occupational diseasesType0Number of safety training sessionsSession120Number of participants in safety training
Trainingparticipant
53,673Total training durationHour80,509Employee coverage rate in safety training%100Hidden danger investigation and rectification rate%100Number of emergency drills for work safetyTimes29Contribution toSociety
The total investment of the Company in external donations and publicwelfare projects
RMB 10,000325.85Investment in Healthcare Co.,Ltd. special scholarshipRMB 10,000121.19Investment in donations for Gaokao students in DingyanRMB 10,0007.27
Peormance of Employee and Social Contribution
PrimaryHeadings
Secondary HeadingsGRI StandardsCASS-ESG6.0
Shanghai StockExchange Self-Regulatory Guidelinesfor Listed Compa-niesNo. 14 - SustainabilityReport (Trial)ABOUT THIS REPORT2-2/2-3P1.1/P1.2Articles4, 6Letter from Chairman2-22P2.1/About Healthcare Co.,Ltd.2-1/2-6/2-9/201-1P3.1-P3.3/Sustainable Development Governance2-12/2-16/2-17/2-29/3-1/3-2/3-3
G1.1.1-G1.1.3/G1.1.9-G1.1.10/G1.2.1-G1.2.4/G1.3.1-G1.3.2
Articles 5, 9, 11–12,52–53
Dreams Reston GreenWater, andCloudsAccompanyGreenMountains
Response to ClimateChange
2-27/201-2/305-1/305-2/305-4/305-5
E1.1.1-E1.1.8/E1.1.14/E1.1.16/G1.1.8
Articles 11-19,21–28Environmental ComplianceManagement
2-27E2.4.1-E2.4.4Article 33Energy Utilization2-27/302-1/302-3/302-4E3.1.1-E3.1.5Article 35Circular Economy2-27/301-1E3.3.1-E3.3.2Article 37Pollutant Emissions2-27/303-2/305-7E2.1.1-E2.1.3/E2.1.5-E2.1.6Article 30Waste Disposal2-27/306-1/306-2/306-3E2.2.1-E2.2.6/E3.3.4Article 31Water Resource Utilization303-1/303-3E3.2.1-E3.2.4Article 36Ecosystem andBiodiversity Protection
2-27/304-2E2.3.3Article 32
Hundredsof ArtisansMeticulouslyCraft a SmartWay to EnsureYou Enjoy aBetter Night’sSleep
Product and Service Safetyand Quality
416-2/417-3/418-1
S3.3.2-S3.3.6/S3.4.1-S3.4.4/G1.1.8
Articles 11-16,18-19,47,48Innovation-driven2-27/203-2S2.1.1-S2.1.7/S2.1.10/G1.1.8Articles 11-16,18-19,42,43Supply Chain Security2-6/2-27/308-1/414-1S3.1.1-S3.1.4/G1.1.8Articles 11-16,18-19,45,46Protection of employees’rights and interests
2-7/2-27/401-2/403-1/403-2/403-3/403-5/403-6/403-7/403-10/404-1/404-2/404-3/405-1/406-1/408-1/409-1
S4.1.3-S4.1.4/S4.1.6/S4.1.11-S4.1.12/S4.2.1-S4.2.5/G1.1.8
Articles 11-16,18-19,50Contribution to Society203-1/203-2/413-1S1.2.1-S1.2.2/S1.2.5-S1.2.6Article 40Rural Revitalization203-1/203-2S1.1.2Article 39
Indexes
8990
PrimaryHead-ings
Secondary HeadingsGRI StandardsCASS-ESG6.0
Shanghai StockExchange Self-Regulatory Guidelinesfor Listed Compa-niesNo. 14 - Sustainability
Report (Trial)
Work
Together to
Achieve aBetter Future
Strengthen the Leadership
of Party Building
///Corporate Governance
Compliance
2-9/2-10/2-19/2-20/2-27/405-1//Compliance and RiskManagement
2-27//Protection of Shareholders’
Rights and Interests
2-27/2-29G1.3.1-G1.3.2Article 9,53Anti-unfair Competition2-27/206-1G2.2.1-G2.2.3Article 56Anti-commercial Bribery
and Embezzlement
2-27/205-2/205-3G2.1.1-G2.1.3/G2.1.6-G2.1.8Article 55FutureOutlook
/A1/
Appendix
Key Performance Form/A2Article 6Indexes/A3Article 57Feedback/A6Article 9
Suggestion FeedbackThank you for reading the 2024 Environmental, Social and Governance Report of Healthcare Co.,Ltd.. In order to continue to promoteESG work and further enhance sustainable development management, we sincerely invite you to fill in the relevant questions in thefeedback form and send the feedback to the Company through the following channels.Your opinions are an important basis for the Company to continuously improve its ESG work and further enhance its sustainabledevelopment management. Thank you for your strong support for our company’s ESG work!
1. Your identity is:
□ Customer □ Investor □ Supplier □ Employee □ Government and regulator
□ Media / Industry Association □ Community □ Others (please specify)
2. Are you satisfied with the overall report?
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3. Are all the information you are concerned about reflected in this year's ESG report?
□ Yes □ No □ General
4. Do you think the report truthfully reflects Healthcare Co.,Ltd.'s ESG work content and its impact on stakeholders?
□ Yes □ No □ General
5. Can you easily find the information you are concerned about in the report?
□ Yes □ No □ General
6. Are you satisfied with the layout design of the report?
□ Yes □ No □ General
7. What do you think are the deficiencies of this report?
——————————————————————————————————————————————————————————————
8. Which contents of this report do you hope to be disclosed regularly?
——————————————————————————————————————————————————————————————
9. Do you have any other opinions or suggestions on our company's ESG report, ESG work, and sustainable development
management?——————————————————————————————————————————————————————————————Please fill in your opinions in the form and mail it to: No. 999, Gaonan Road, Dingyan Town, Rugao City, Jiangsu Province.Tel.: 0513-68169482Fax: 0513-80296666-8059Postal Code: 226521Email: hkfoam@hkfoam.com
Stock Code:603313
ENVIRONMENTAL SOCIALAND GOVERNANCE REPORT
Healthcare Co.,Ltd.No.999, Gaonan Road, Dingyan Town,Rugao City, Jiangsu Province, China.0513-68169482www.mlily.comCompany Name:
Address:
Tel:
Company Website: