Zhejiang Furun Textile Co., Ltd. specializes in mid- to high-end worsted wool fabrics.

Report Description

1. Scope of the Report

This report is the Corporate Social Responsibility Report issued by Zhejiang Furun Textile Co., Ltd., and its information and data primarily cover 2020 year 1 month 1 Date to 2020 year 12 month 31 During the period, the company carried out various corporate social responsibility initiatives.

2. Principles for Preparation

This report has been prepared in accordance with the principles of stakeholder engagement, sustainable development, materiality, completeness, comparability, accuracy, timeliness, clarity, and reliability.

3. Content Selection

The report covers such areas as corporate overview, corporate governance, environmental protection, occupational health and safety management, employee development, and community engagement.

The data and information collection for this report was conducted in accordance with the company’s existing workflows.

4. Referential Explanation

In the report, Zhejiang Furun Textile Co., Ltd. is abbreviated as “ Furun Textile ” or “ Company ”。

5. The copyright of this report is owned by Zhejiang Furun Textile Co., Ltd.

I. Chairman’s Address

Furun Textile was formerly established in 1984 The state-owned Zhuji Wool Textile Factory of the year, 2003 In [year], the company was restructured and established as Zhejiang Furun Textile Co., Ltd., a Sino‑foreign joint venture. Over the past fifteen years, the dedicated team at Furun Textile has worked tirelessly and pressed forward with tenacity, securing a prominent position in the highly competitive worsted‑wool industry. Relying on… “ If others can do it, why can’t we? ” With unwavering conviction, they have made a name for themselves in the industry. “ High-quality and adept at producing specialty products. ” reputation. Furun Textile has always adhered to “ Be down-to-earth in character and meticulous in your work. ” Its ethical standards emphasize quality, integrity in business, and putting customers first.

Today, Furun Textile has earned the trust of its customers and the recognition of the market—yet this is only a promising beginning. Looking ahead, we are committed to becoming a world-class, specialized manufacturer of fine woolen fabrics. In shaping our product strategy, Furun Textile remains steadfast in delivering high‑quality, environmentally friendly products and services.

While pursuing growth, social responsibility is the guiding principle through which Furun Textile seeks to maximize its integrated economic, social, and environmental value. Furun Textile must, while safeguarding shareholder interests and striving for profit maximization, boldly assume its social responsibilities, proactively fulfill its public duties and civic obligations, adhere to ethical standards, and actively uphold its role as a corporate citizen—balancing the interests of customers, employees, government, and other stakeholders.

A better world begins with us; Furun Textile is committed to harmonious development with society and nature.

Going forward, Furun Textile will pursue harmonious development with society and the natural environment, becoming a truly responsible enterprise that integrates social responsibility with sustainable business growth, thereby setting an example for the industry’s advancement.

II. Company Profile

Zhejiang Furun Textile Co., Ltd. is a listed company, Zhejiang Furun Co., Ltd. ( 600070 )’s wholly owned subsidiary, formerly established in 1983 The state-owned Zhuji Wool Textile Factory, with total assets of… 2.3 hundred million yuan, covering an area of 300 Several mu, with nearly… employees 500 People, with an annual output of 450 Production capacity for 10,000-meter high-end worsted woolen fabrics.

Furun Textile adheres to the philosophy of “working diligently and conducting oneself with integrity,” placing ethical business practices above all else. The company boasts a stable team of seasoned professionals—hardworking, highly skilled, and bold in innovation—who embrace the product‑development principle of “creating what others cannot.” By pursuing a competitive strategy centered on product differentiation, Furun has earned a reputation in the industry for its distinctive, high‑quality offerings. Driven by technological innovation, the company consistently introduces new raw materials and processes, continuously expanding its portfolio of cutting‑edge products. With thirty years of expertise in producing fine worsted fabrics, Furun integrates development, manufacturing, and sales of premium worsted textiles under one roof. Its state‑of‑the‑art production facilities include world‑leading equipment: German automatic winding machines, doubling and twisting units, Saurer compact spinning frames, singeing machines, Swiss drawing frames, Italian rapier looms, shearing machines, combined washing‑and‑shrinkage units, vat‑steamers, as well as a comprehensive suite of precision testing instruments, such as yarn evenness testers, DATACOLOR Colorimeters and other instruments. The company operates a provincial-level technology R&D center and has successfully completed national Torch Program projects as well as major provincial research initiatives; numerous products have been recognized as… “ National-level New Product ” It is the designated manufacturer of uniform fabrics for the General Logistics Department, the People’s Armed Police Force, the Ministry of Public Security, the Supreme People’s Court, and the Supreme People’s Procuratorate.

The product line is divided into two series: men’s fabrics and women’s fabrics. The men’s fabric series includes gloss‑finished, casual wool‑linen, premium silk‑wool, ultra‑fine high‑count, wool jacquard, and functional‑treated collections, which are sold in the United States, Japan, the European Union, and other markets. Key customers include… Hugo Boss 、、 ESPIRT 、 M&S , including Longding, among others. Women’s apparel fabrics are categorized into series such as fancy yarns, piece-dyed fabrics, yarn-dyed fabrics, and printed fabrics, with key customers comprising well-known domestic women’s fashion brands like JNBY and DIZO.

Over the years, the company has developed a distinctive management approach that emphasizes meticulous and standardized operations, establishing a system that is both practical and highly effective. ISO9001 The organization has established a quality management system and, building on this foundation, adopted an excellence‑based performance management model. As a result, its management capabilities have been further enhanced, with clearly defined internal responsibilities, smooth communication of directives, and rapid responsiveness. With customer satisfaction as its primary focus, the organization was awarded the Shaoxing Mayor’s Quality Award.

The company champions “green environmental protection, safety, and civility,” placing great emphasis on environmental sustainability and workplace safety. Over the years, it has consistently invested in upgrading its wastewater treatment systems to ensure that industrial effluents meet regulatory standards, striving for harmonious development between people, society, and the environment. The company is a member of the China Textile Association’s whitelist, and its products have been certified to European eco‑textile standards. “OeKo Tex Standard 100” Certified as a Green Enterprise of Zhejiang Province, a Demonstration Enterprise for Industrial Circular Economy in Zhejiang Province, and an Environmentally Friendly Enterprise of Shaoxing City.

The company will remain committed to continuous innovation and uphold the spirit of craftsmanship, striving to refine and strengthen its products, with the aim of establishing Furun Textile as a renowned enterprise that wields significant influence in the global fine‑wool textile manufacturing industry.

III. Corporate Strategy

The company has established a strategic management team led by the general manager, put in place a strategic management process, and implemented strategic management, positioning strategy as the means to realize the company’s vision. The company has gathered internal and external environmental information and, through evaluation, analysis, review, and approval of this information, has defined its strategic direction.

The company’s near-term strategic direction is to “ Professionalization, differentiation, and women’s wear orientation ”。

In alignment with its strategic direction, the company has established both short-term and long-term strategic objectives, along with corresponding implementation plans. The short- and long-term strategic objectives are as follows:

Short-term strategic goal: “Achieve a production capacity of” 450 With a focus on the women’s apparel fabric market, we aim to further enhance the industry’s visibility and reputation. Internally, we will strengthen management; externally, we will expand our market reach. ”。

Long-term strategic objectives “ Optimize the organizational structure, continuously refine management mechanisms, enhance management capabilities, and elevate product R&D standards; by… 2021 Achieved annual sales revenue of 2.2 RMB 100 million. ”

By cascading the corporate strategy into functional strategies for each department and translating the corporate strategic implementation plan into departmental guideline‑based implementation plans, and by establishing key performance indicators for every role, a performance management system has been put in place to ensure the successful execution of the strategy.

IV. Corporate Governance

(1) Quality Management

In building its integrity system, the company places a strong emphasis on reinforcing the central role of quality management, embedding a commitment to high‑quality standards throughout all aspects of its operations. By continuously enhancing the comprehensive oversight capabilities of its quality management department, the company ensures that core quality principles—such as “quality is the lifeblood of the enterprise” and “the next process is the customer of the preceding one”—are integrated into every stage of production control and translated into concrete actions at each position and along every process step. This approach fosters a robust, collaborative, and sustained culture of enterprise‑wide quality management. Through dedicated efforts to cultivate and reinforce a sense of quality‑based integrity, the company is steadily elevating the overall quality of its products. We pay close attention to the needs and expectations of our customers and the market, consistently putting the customer at the heart of our priorities. By establishing strategic partnerships founded on “integrity, collaboration, mutual benefit, and win‑win outcomes,” we align and refine our production processes and management practices, thereby earning the trust of both the market and our customers.

(II) Occupational Health and Safety Management

To control and mitigate occupational health and safety risks, continuously improve the organization’s occupational health and safety management performance, boost employee productivity, meet the needs and expectations of customers and other stakeholders, enhance the relationship among government, enterprises, and employees, better fulfill the company’s social responsibilities, and strengthen both its social and economic benefits, the company has… 2004 Year introduced with GB/T28001 ( OHSAS18001 ) A standard occupational health and safety management system, which has been certified by a third party.

The company has appointed the Executive Deputy General Manager as the Management Representative for the Occupational Health and Safety Management System, organized the election of employee representatives responsible for occupational health and safety matters, and established the “Organizational Chart for Occupational Health and Safety Management” and the “Functional Assignment Matrix for Occupational Health and Safety Management,” clearly defining the responsibilities and authorities of each department in relation to the system. The company has also formulated its occupational health and safety management mission—“Prioritize safe production to ensure employees’ peace of mind; comply with laws and regulations to earn society’s trust”—along with relevant occupational health and safety management objectives, including: 1 , the incidence rate of occupational diseases is 0；2 Prevent major safety accidents and casualties. 3 Prevent fire accidents. This year, the system has successfully undergone recertification.

Table 2018 Year～ 2020 Status of Major Hazard Source Control for the Year

(3) Environmental Management

As global economic development continues to advance and energy consumption rises sharply, environmentally responsible production and green consumption have become major trends worldwide. The company is actively committed to eco‑friendly manufacturing, enhancing employees’ environmental awareness, promoting energy conservation and resource efficiency, and strengthening environmental management. By making environmental protection a parallel objective of its economic growth, the company is proactively transforming itself into an environmentally sustainable enterprise.

The company was established in 2004 It was introduced as early as year… GB/T 24001 ( ISO 14001 ) A standardized environmental management system has been established. The Executive Deputy General Manager has been appointed as the Management Representative for the environmental management system, and an “Environmental Management Organizational Chart” and an “Environmental Management Functional Assignment Matrix” have been developed, clearly defining the responsibilities and authorities of each department in relation to the environmental management system. The company has also formulated its environmental management mission—namely, its environmental policy—and set forth corresponding environmental management objectives. 1 • Production wastewater and noise are discharged in compliance with regulatory standards; 2 , waste material 100% Recycling and disposal ” The company has identified the environmental aspects arising from its production and management activities and has classified such aspects as “wastewater discharge, noise emissions, and solid waste disposal” as significant environmental aspects. For each of these significant environmental aspects, the company has established and implemented control procedures and criteria, while also conducting monitoring and measurement of the control processes to ensure that the intended control objectives are achieved.

2018– 2020 Status of Control over Wastewater Discharge as a Significant Environmental Aspect for the Year

(4) Green Supply Chain Management

To avoid trade barriers in the textile industry and enhance the brand reputation and influence of “Furun” products, the company places great emphasis on environmental protection and strictly adheres to… IS014001 The environmental management system organizes production by implementing green and environmentally friendly measures across all stages, from raw material procurement to product manufacturing, with the aim of achieving zero pollution and eliminating plant diseases. The company’s core principles for a green supply chain are: adopting sustainable development as its guiding management philosophy, leveraging clean production as its primary approach, and, through the entire supply chain, minimizing, recovering, and rendering harmless the waste generated during production. This enables the integrated utilization of resources and fosters a virtuous cycle between resource development and the ecological environment, ensuring that corporate growth objectives are aligned with social progress and environmental improvement, thereby realizing sustainable development.

To ensure the smooth operation of production, business activities, and project construction, the company rigorously controls each stage—ranging from “procurement initiation, procurement planning, tendering, supplier qualification verification and evaluation, procurement quoting, price comparison, to product inspection”—and strictly adheres to the company’s procurement management system in vetting suppliers and procured materials.

When evaluating partners in the supply chain , We not only consider the economic benefits of partner companies but also take ecological concerns into account, starting with internal logistics management. , Gradually establish supplier profiles. , Establish a scientific and reliable evaluation and selection system. , Incorporate green and ecological standards into supplier evaluation criteria. , Enable the scientific evaluation and selection of suppliers.

The company’s procurement management system requires suppliers to provide relevant qualification documents to ensure that purchased raw materials meet specified procurement requirements and to issue inspection reports for these materials. During the raw material selection phase, without compromising product quality, priority is given to green materials that are non‑toxic, harmless, pollution‑free, and have minimal environmental impact, thereby minimizing ecological footprint. Given the substantial volume of Furuun Textile’s exports, in order to circumvent trade barriers in textile production, the use of dyes and auxiliaries is strictly regulated; virtually all dyes employed in manufacturing are environmentally friendly, and the use of prohibited dyes is expressly forbidden.

(5) Employee Development and Career Advancement

The company’s culture has shaped its talent philosophy: “Talent is the most valuable asset of Furun Textile. We attract top talent, nurture their potential, and build elite teams that combine integrity with competence and excel in their respective fields—teams that share the company’s fortunes and strive for mutual growth, becoming the backbone of Furun Textile’s success. We care deeply for our employees, helping them achieve professional success, financial prosperity, intellectual advancement, and inner fulfillment.” By establishing a comprehensive human resources management system, the company treats its people as its most critical resource and implements systematic management. Through initiatives such as employee well-being programs, training, and corporate social responsibility activities like organizing volunteer service, the company strengthens team cohesion, builds a robust talent pipeline, fosters a sense of responsibility among employees, and ultimately enhances the organization’s human capital value.

The company has established systems and standards, and through mechanisms such as employee representation, internal promotion, and the submission of rationalization proposals, it creates platforms for employees’ proactive engagement. The company designs and organizes key business‑related initiatives—including management innovation programs, technological innovation campaigns, and labor competitions—inviting all employees to participate, thereby providing them with opportunities to showcase their talents. Depending on individual performance, outstanding employees are rewarded with promotions, financial incentives, training, and other benefits, further encouraging their active involvement. At the same time, the company actively sponsors a variety of cultural, sports, and social activities to strengthen team cohesion, foster a sense of ownership among employees, and cultivate an organizational culture that inspires employees to take initiative and contribute meaningfully to all aspects of the company’s operations.

The company conducts an annual review at year-end for employees who have demonstrated outstanding performance. “ Outstanding Employee ”、 “ Outstanding Team Leader ” The selection of honorary titles will be conducted, and the awardees will be commended at the year-end summary conference; each recognized employee will receive… 300-1000 Unequal rewards to boost employee motivation.

The company views employee learning and development as an “investment” and regards the establishment of a learning organization and the cultivation of a company-wide culture of continuous learning as integral components of its long-term strategic vision.

The company’s education and training initiatives for employees are structured into five tiers: onboarding training for new hires, specialized professional training, continuing education and retraining, management development programs for mid‑level and senior executives, and leadership‑level talent cultivation. The company has elevated employee training to the strategic level of talent development, aligning it closely with the goal of “cultivating the talent our organization needs.” Based on departmental training requests submitted at year‑end, the company formulates an Annual Training Plan at the beginning of each year, setting forth clear and specific requirements regarding training objectives, content, target participants, timing, budget, and delivery methods.

To better recruit, develop, and identify talent and to establish a well‑structured talent pipeline, the company has implemented a job‑rotation program. This program rotates frontline production team leaders and key production personnel among different roles. Additionally, newly hired professional talent is assigned to grassroots positions for rotational training, enhancing their production awareness and practical experience. Based on a comprehensive assessment of their performance during this period, the company selects high‑performing employees who meet its talent criteria to move into management roles.

We align employees’ personal development with the company’s strategic goals, providing the necessary support for their career advancement. The company’s key talent‑development initiatives include: first, encouraging the cultivation of versatile professionals who can excel in multiple roles and possess a broad range of skills; second, for training programs designed to enhance employees’ professional expertise and technical capabilities, the Office submits proposals to the relevant departmental leaders for approval, after which the company covers the associated costs to provide these learning opportunities.

V. Protection of Stakeholder Interests

(1) Protection of Shareholder Interests

The company’s Supervisory Board and Finance Department are responsible for safeguarding shareholder interests, overseeing and auditing the exercise of authority by senior management, major investments, financial transactions, and other business activities, thereby ensuring the legality, compliance, and effectiveness of organizational operations. The company has established a series of internal regulations, including the Articles of Association, the Board of Directors Rules, and the Supervisory Board Rules, which fully ensure that the Shareholders’ Meeting, the Board of Directors, and the Supervisory Board each perform their respective duties.

The company’s financial statements for each fiscal year are audited in accordance with the law and submitted to the Board of Directors within fifteen days of their preparation. The company implements an open tendering system, applying tender-based procurement for material supplies, centralized purchasing of bulk items, and bidding procedures for technological upgrade projects exceeding a specified threshold. These measures continuously enhance the company’s profitability, increase the value of its assets, and safeguard the investment interests of shareholders. The company annually… 4 The board of directors will convene in [month] to distribute dividends to all shareholders.

(II) Protection of Customer Interests

The company is committed to meeting customer needs, not only by providing products that satisfy their requirements and expectations, but also by establishing robust communication channels in response to market dynamics. In special circumstances, we proactively offer tailored, personalized products and services to safeguard our customers’ interests. We ensure timely and comprehensive pre‑sale, in‑sale, and after‑sale support, including customized solutions for select clients, while diligently delivering all necessary user‑focused services to guarantee proper product usage.

(3) Protection of Suppliers’ Interests

The company strictly adheres to the terms of its procurement contracts when making payments to suppliers. When suppliers face financial constraints, the company provides timely financial support through early payment or advance payments to key vendors. In addition, the company regularly conducts evaluations of qualified suppliers, shares its best practices, and offers constructive recommendations to help suppliers continuously enhance their technical capabilities, management systems, and service standards. Over the years, all supplier payments have been made promptly, with no instances of arrears or delays.

(4) Protection of Other Relevant Interests

The company strictly adheres to contractual borrowing and timely repayment, maintaining sound lending relationships with all financial institutions. In recent years, it has never incurred a single instance of overdue repayment or accrued interest while utilizing bank loans, and has been recognized as “…” for several consecutive years. AAA Tier-A Credit Demonstration Enterprise ” ; The company pays taxes in accordance with the law, actively cooperates with the local government and other institutions in all their initiatives, strictly complies with all applicable laws and regulations, and enthusiastically engages in environmental protection, energy conservation, social welfare, and charitable activities. For many consecutive years, the company has maintained a tax credit rating of A 。