--Hubei Hongbo Vehicle Co., Ltd. 2021 Social Responsibility Report

I. Overview of the company's business management

  1、Enterprises engaged in the segment, the time of practice and the position in the segment engaged in.

  Hubei Hongbo Vehicle Co., Ltd. was founded in 2010, is a professional automotive steering knuckle research and development, manufacturing and sales in one of the professional, high-tech private enterprises. At present, the company has formed an annual output of 800,000 pieces of automotive steering knuckle forging capacity, and an annual output of 700,000 pieces of finished steering knuckle machining capacity.

  In 2011, the company was awarded by the Ministry of Finance of the National Development and Reform Commission as a national "urban minerals" demonstration base, and a key industrial project enterprise in Hubei Province, and was awarded as a "digital production line" demonstration unit by the Xiangyang Municipal Commission of Economy and Informatisation in 2019, and a "digital production line" demonstration unit by the Xiangyang Municipal Commission of Economy and Informatisation. In 2018-2019, Xiangyang City Market Supervision Bureau selected Xiangyang City Market Supervision Bureau as a "contract-abiding and credit-abiding enterprise", and in 2018-2019, Xiangyang City Municipal Spiritual Civilisation Construction Steering Committee Office of the Communist Party of China (CPC), Xiangyang City Market Supervision Administration, Xiangyang City Individual Workers' and Private Enterprises Association selected Xiangyang City Municipal Spiritual Civilisation Construction Steering Committee Office as a "10-star civilised and sincere enterprise". "Ten-star Civilised and Honest Enterprise"; in 2017, Hongbo Vehicle Company was identified as a national high-tech enterprise by Hubei Provincial Department of Science and Technology, Hubei Provincial Department of Finance, Hubei Provincial Bureau of National Taxation and Hubei Provincial Bureau of Local Taxation; and in 2020, it was selected as a pilot demonstration enterprise for the fusion of two technologies by Hubei Provincial Department of Informatisation and Industrialisation. The company passed IATF16949:2016 quality system certification in 2013.

  The company focuses on automobile chassis class front axle steering knuckle and steering knuckle arm parts and components manufacturing industry has been 10 years, to develop the advantage of the regional economy as the core, and constantly carry out the product process technology innovation and equipment design and manufacturing innovation, with a perfect raw material testing, forging, heat treatment, surface treatment, finished product processing, assembly, and other complete production, testing process technology and equipment, formed from the raw material inputs, blank manufacturing, It has formed a whole industry chain network from raw material input, billet manufacturing, finished product production, product sales, bridge factory supporting, and automobile assembly. The forging and processing technology level of the company's steering knuckle is at the forefront of the same industry in China, and its manufacturing technology level. After years of development, the company has gradually become the second largest professional production base of steering knuckle in China after "Three Ring Forging".

  2、Enterprise management strategy

  The company adheres to the enterprise spirit of "leading, innovation, breakthrough", and the development concept of "based on components, looking at the whole situation, product upgrading, technology first", according to the modernised management principle of "advanced equipment, novel technology, quality assurance, thoughtfulness," the company has become the second largest professional production base of steering knuckles in China after "Three Ring Forging". In accordance with the modern enterprise goal of "advanced equipment, novel technology, high quality products, considerate management" and the business strategy of "culture navigation, brand opening, open development, win-win co-operation", the company is mainly engaged in the manufacturing of steering knuckle, supplemented by the manufacturing of steering knuckle arm as an extension of ancillary products, and is striving to make the company an automotive parts production base in China. With science and technology innovation as the driving force, the main attack direction is to improve production capacity, optimise product structure, reduce production cost, break through bottleneck technology, comprehensively deepen the reform, comprehensively lean management, comprehensively promote the integration of resources, transformation and improve quality, enhance the comprehensive efficiency, and form an industrial system integrating renewable resources utilization, technology research and development, manufacturing and trade. We will make Hongbo an excellent enterprise with sustainable competitiveness in China's auto parts manufacturing industry.

  The company will follow the general idea of the first five-year plan "improve efficiency, strong management, excellent service, stable development", take the strategic plan as a guide, strengthen basic management, optimise business processes, improve resource allocation, continue to strengthen the qualification construction, pay close attention to the risk of internal control of the indicators, be innovative and hardworking.

  The company takes forging and machining of steering knuckle products as its main business, promotes the improvement of production capacity of other accessories, creates sustainable profitability, relies on well-known domestic supporting enterprises such as Dongfeng Dana, Fangsheng Axle, Qingte Group, China National Heavy Duty Truck, Hand Axle, etc., lays out the industrial structure, transforms from rough management to lean management, gradually improves the soft power of enterprise culture, brand and innovation, and achieves the market share of more than 30% by 2024. 30%. By the end of 2024, the annual operating income will be RMB 1 billion and profit tax will be RMB 230 million. The comprehensive ability of steering knuckle manufacturing enters the top 3 in the same industry in China, and the market share ranks the 2nd in the province.

  3、Management Team

  The company currently employs more than 300 people, the management team consists of the chairman of the board, general manager, deputy general manager and other top management 5 people, other departments including technology, quality, production, procurement, finance, sales, human resources and other middle management 15 people. The company has set up R&D and innovation technology centre with more than 30 R&D and innovation technicians