Wisdom Electronics(Xiamen) Co., Ltd. (hereinafter referred to as Wisdom Company) has prepared the “2023 Social Responsibility Report”based on the actual situation of the company. This report focuses on the company’s annual work and reviews the company’s active fulfillment of social responsibility while achieving its own development in 2023. It truthfully and objectively reflects the important information of the company’s fulfillment of social responsibility in its production, operation and management activities, and comprehensively interprets the company’s understanding and comprehension of corporate social responsibility. I hope this report can become a bridge for communication and exchange between the company and various sectors of society, as well as a window for investors, employees, customers and other parties to understand and recognize the company. At the same time, the company also hopes to take this opportunity to accept public supervision and suggestions, promote the progress and development of the company, and contribute to the harmonious development of society.

1. Overview

Wisdom Electronics(Xiamen) Co., Ltd. was founded in 2007. It is a professional enterprise engaged in electronic intelligent manufacturing services, integrating OEM and ODM. After 15 years of development, the company has established a research and development, production and operation team of nearly 200 people, and has a self purchased modern factory building of 6000 square meters (including an 800 square meter 100000 level dust-free workshop).

The company has introduced multiple domestically leading electronic manufacturing production lines (SMT machines under the Panasonic brand), implemented a software management system (SAP) that can connect with international first-class enterprise customers, and used domestically leading accurate and efficient visual management software (WMS, MES). With first-class software and hardware standards, the company strives to provide customers with more reliable and efficient PCBA products and services.

Since 2013, it has been continuously awarded honorary titles such as "National High tech Enterprise", "Fujian Province Specialized, Refined, Unique and New Small and Medium sized Enterprise", "Xiamen Specialized, Refined, Unique and New Small and Medium sized Enterprise", "Xiamen Citys Most Growing Small and Medium sized Enterprise", and "Xiamen Torch High tech Zone Tax Star Enterprise".

The company has a team of electronic technology professionals with over fifteen years of technical experience, providing comprehensive solutions from research and development to manufacturing. Mainly serving customers in industries such as electricity, smart homes, and the Internet of Things. Wisdom has maintained industry-leading product quality, delivery time, and technology with over ten years of experience serving hundreds of enterprises (including multiple Fortune 500 companies), and is highly recognized by the industry.

We adhere to the path of professional development, with the business philosophy of "reliability, efficiency, and professionalism". We prioritize customer and quality, and our mission is to focus on customer needs and continuously create value for them. Strive to become a leading professional electronic intelligent manufacturing enterprise in the industry.

2. The purpose and philosophy of fulfilling social responsibility of the company

Enterprise development originates from society, and giving back to society is the responsibility that enterprises should fulfill. The company insists on actively integrating social responsibility into its business philosophy, development strategy, and core values. While constantly pursuing corporate development, it also takes into account giving back to society, emphasizing the social value of the enterprise, and practicing corporate social responsibility. The company respects corporate social responsibility and regards it as a fundamental value for its development and growth. It strengthens the companys sense of responsibility and mission towards society, and regards fulfilling social responsibility as an important measure for sustainable development and enhancing core competitiveness. It integrates with the companys development strategy, production and operation, and corporate culture, striving to achieve coordinated unity between enterprise development, employee growth, ecological protection, and social harmony.

3. Performance of Social Responsibility in 2023

（1） Protection of Employee Rights and Interests

The company strictly abides by various laws and regulations related to labor employment and employee rights protection, such as the Labor Contract Law of the Peoples Republic of China and the Social Insurance Law, and strictly implements national regulations and standards in employment, labor safety and health, social security, and other aspects. At the same time, the company cares for its employees, improves the working environment, strengthens labor protection, safeguards employee rights and interests, emphasizes talent cultivation, values humanistic care, and implements humanized management.

1. Adhere to laws and regulations, safeguard employee rights and interests. The company has established and improved rules and regulations related to national laws and regulations such as the Labor Contract Law and the Social Insurance Law, improved labor employment management, legally protected the legitimate rights and interests of employees, continuously built a harmonious labor relationship, and effectively safeguarded the rights and interests of workers.

2. Establish a market-oriented salary system and share the achievements of enterprise development. The company establishes a value distribution system based on job value and work performance, and constructs an incentive assessment and distribution plan that is competitive in the market and follows market changes. Through the design of dynamic performance and commendation incentives, it focuses on reflecting job value, personal contribution, performance orientation, and market competitiveness, encourages employees to serve the enterprise for a long time, work together for enterprise growth, and share the achievements of enterprise development.

3. Strengthening talent cultivation and assisting enterprise development. The company always adheres to the talent concept of "having a platform for work, opportunities for innovation, space for development, and rewards for contributions", vigorously implements the strategy of "strengthening enterprises with talents and revitalizing enterprises with human resources", attracts talents from all over the world, leads industries with talents, and gathers talents with industries. The company has always adhered to the dual channel promotion and development path of management sequence and professional sequence, expanding the promotion channels and space for employees. Provide comprehensive career development planning and training support, fully tap into the potential of employees, and work together to achieve the common ideals of the enterprise and employees.

4. Pay attention to the physical and mental health of employees and create a good working atmosphere. The company always pays attention to the physical and mental health of employees, constantly enriches their spiritual and cultural life, and strives to create a positive, healthy, and energetic cultural atmosphere for employees. Continuously carrying out a variety of cultural and sports activities, such as employee birthday parties, departmental team building, holiday events, etc., have greatly enriched employees leisure life, creating a harmonious atmosphere of happy work and life for employees, increasing their cohesion and centripetal force, and enhancing their sense of belonging and identity with the company.

（2） Protection of supplier and customer rights and interests

1. Supplier Rights Protection The company follows the principles of sincere cooperation, complementary advantages, mutual benefit and common development, and adheres to the principles of fairness, voluntariness, honesty and credibility. It takes responsibility in both heart and action, fully respects and protects the legitimate rights and interests of suppliers, customers and consumers, and thus establishes a good partnership.

(1) Adhere to the cooperative concept of win-win cooperation. A stable and good cooperative relationship is of great significance for ensuring the quality of enterprise products and services, reducing raw material procurement and market expansion costs, and reducing market risks.

(2) Select suppliers based on merit. The company strictly controls the entry threshold of suppliers, conducts strict audits and appraisals of their qualifications and products, continuously monitors suppliers supply services, supply capabilities, product prices, product quality, and supply stability during cooperation, establishes supplier credit files and credit evaluation systems, implements dynamic management, and continuously optimizes the supplier team.

(3) Develop a Sunshine Procurement Platform. In order to make procurement more standardized, intelligent, convenient, and efficient, the company has developed the Sunshine Procurement Platform

2. Protection of Customer Rights and Interests

(1) Adhere to customer-centric approach and establish a lean service philosophy. The company always regards improving customer satisfaction as the core content of its work, and has established a collaborative mechanism for customer service to create differentiated value for customers.

(2) Strive to create value and enhance customer loyalty. In order to further serve customers and enhance the industry influence of the enterprise.

（3） Strengthen labor protection and ensure safe production

In 2023, the company adheres to the people-oriented concept, strengthens the awareness of red lines and bottom line thinking, continuously strengthens grassroots infrastructure construction, consolidates the main responsibility of enterprise safety production, establishes and improves the risk prevention and control system and hidden danger investigation and governance system, does a good job in safety standardization and upgrading, and rapidly improves the overall safety production level of the company. The main work measures are as follows:

1. Comprehensively strengthen the implementation of the safety production responsibility system for all employees. Each enterprise has established a safety production responsibility system for all organizations and positions, from the main person in charge of the enterprise to frontline employees. It has clarified the territorial management safety responsibilities, scope of responsibilities, and assessment standards for all employees, and continuously improved the incentive and restraint mechanism. By rewarding proactive implementation and comprehensive implementation of responsibilities, punishing failure to implement responsibilities and partial implementation of responsibilities, it continuously stimulates the enthusiasm and initiative of all employees to participate in safety production work, and forms a good safety culture atmosphere. The company has initially formed a safety supervision mechanism at the headquarters, with each enterprise fulfilling its main responsibility for safety and all employees participating in safety production management.

2. Actively promote the standardization and upgrading of safety production. Through the high-quality operation and continuous improvement of the standardization system, the company continuously consolidates the safety foundation management and actively promotes the first level compliance work. By increasing investment in safety production and continuously improving on-site hardware conditions, the company continuously enhances the level of intrinsic safety of the enterprise. Through the on-site evaluation of safety production standardization, the quality of employees has been generally improved, the basic management of the enterprise has been strengthened, and the institutional system has become more organized, systematic, and refined.

3. Carry out the construction of a dual control mechanism for risk classification control and hidden danger investigation and governance. The company has arranged and deployed risk classification control and hidden danger investigation and governance as a key task, and established a hidden danger investigation and governance information system covering all enterprises and departments. By mobilizing frontline employees to comprehensively identify safety risks in various aspects of production systems, equipment and facilities, operation processes, operational behaviors, management procedures, etc. that may lead to accidents, determine hazardous factors and risk levels, and determine management and control measures from management, technology, and personnel behavior aspects, formulate risk control lists and accident hidden danger investigation lists, regularly conduct hidden danger investigations, and initially realize the transformation from post management to pre control.

4. Relying on technology to improve the current level of safety production. The company actively promotes various enterprises to solve personnel safety problems in hazardous operations from a technical perspective through safety technology innovation, implementing "mechanization to reduce personnel and automation to replace personnel". The focus is on promoting technological innovation in performance testing operations, reducing the operational risks of manual testing by applying a one click testing method. At the same time, actively explore the use of technological means to reduce the safety risks of other hazardous operations.

5. Strengthen safety production training for all employees. The company organizes all enterprises to actively carry out various safety training work, and conscientiously carries out various forms of safety training at time nodes such as safety production month and fire day activities.

6. Key training was conducted on risk prevention measures, on-site accident hazard investigation methods, and safety standardization creation, continuously improving the awareness of regulations and standards among management and technical personnel, promoting the improvement of safety execution and management methods, and initially realizing the transformation from focusing on employee safety training to focusing on leadership cadres, management cadres, and engineering and technical personnel.

（4） Environmental Protection and Sustainable Development

The company conscientiously implements a series of national and local policies on environmental protection, regards strengthening environmental protection as an important means for enterprises to transform their development mode, increase efficiency, and fulfill social responsibilities, and solidly promotes the companys environmental protection work.

1. Waste gas emissions: In terms of pollutant reduction, the companys waste gas is collected through exhaust pipes and treated in activated carbon boxes. After testing, the waste gas emissions meet the standards.

2. Solid waste disposal: 100% of solid waste is processed by qualified units.

（5） Public relations and social welfare undertakings

1. Taxation in accordance with the law is a symbiotic relationship between enterprises and society. Paying taxes in accordance with the law is the most basic and important social responsibility of enterprises, as the saying goes, take from society and use for society. Only by paying taxes in accordance with the law can a company reflect its social value, establish a good business reputation and image, and achieve sustainable operation and long-term development. The company has always adhered to the principles of legal operation and honest taxation, and consciously fulfilled its tax obligations in accordance with the law.

2. Social welfare companies should not only maintain healthy development and improve production and operation efficiency, but also play a corporate role, pay attention to giving back to society, focus on building harmonious and friendly public relations, and actively participate in social welfare undertakings.