I. Company Overview

As a national-level specialized and new "Little Giant" enterprise and a national (industry) standard-setting unit, Shanxi Taibao Technology Co., Ltd. has always been committed to the mission of "developing high-end sealing localization" and has been deeply involved in the rubber and plastic sealing field for 38 years. The company has provincial-level enterprise technology centers, Shanxi Province key laboratories and other innovation platforms. It is a core member of the National Rubber Standardization Committee Sealing Sub-Technical Committee and the China Hydraulic Pneumatic Sealing Industry Association. It has led the formulation of 20 national and industry standards and obtained more than 30 patented technologies, filling a number of domestic sealing technology gaps. In 2022, it won the National "May 1st" Labor Award. In 2024, its market share will remain in the top three in the industry. Its products cover leading companies such as Zhengmei Machinery, Tiandi Technology, and Sany Heavy Equipment, and are exported to countries along the "Belt and Road" with complete machine sets, becoming a benchmark enterprise for the localization of key seals for high-end equipment manufacturing.

II. Economic Responsibility

In the past year, the company has achieved steady growth in operating income and profits. Through market expansion, optimization of product structure, and refined operation and management, the revenue of high-end seals has increased to 65%, which significantly enhances the ability to resist risks and makes important contributions to national and local fiscal revenue.

Taking the market as the guidance, implement a strategy of continuous technological innovation. Focusing on high-pressure resistant sealing devices, pressure-holding test methods, and key process equipment materials, 8 new invention patents have been added, including "a sealing device for hydraulic support water medium jacking jack" which has been applied in batches in Xishan Jiao Coal, Guizhou Qinglong Coal Industry, etc., and related technologies have been selected into the "New Technology and New Product Catalog of Shanxi Province for Key Promotion". As a member of the "Industrialization Collaboration Working Platform for High-end Hydraulic Systems for Construction Machinery" of the Ministry of Industry and Information Technology, the company's electro-hydraulic control high-pressure valve sealing rings and heavy-duty mining card oil and gas suspension cylinder seals have been successfully applied to domestic intelligent coal mining equipment and transportation equipment, breaking the 20-year monopoly of European and American companies.

Through participating in domestic exhibitions such as the Beijing International Mining Machinery Exhibition, the complete machine set has achieved positive growth year-on-year, and some products have been exported to countries such as Belarus with the complete machine, becoming the preferred sealing parts supplier for domestic and foreign coal mining machinery companies. Joint laboratories have been established with domestic and foreign users to carry out localization technology research and industrialization of extreme working condition seals for high-end equipment, and promote the "Taibao Seal" technology to global harsh working condition scenarios.

III. Environmental Responsibility

Strictly implement the ISO 14001 environmental management system to achieve closed-loop management from raw material selection to production process to product use and recycling. In the production process, efficient and low-pollution materials are used, such as degradable packaging materials in the feeding process, and environmentally friendly peroxide system additives are used to replace traditional sulfur system additives and granular additives, which reduces the emission of volatile organic compounds (VOCs) and dust; in the production and operation process, the company vigorously promotes energy conservation and emission reduction measures by optimizing production processes and introducing advanced low-energy-consumption process equipment. Actively participate in environmental protection public welfare activities, organize employees to carry out tree planting and other activities, carry out environmental protection publicity and education, improve public awareness of environmental protection, and build a garden-style factory, contributing to environmental protection.

The traditional coal mining process uses traditional hydraulic supports with emulsion as the working medium, which has high mining costs and high leakage risks. More than 8,000 mines and more than 20,000 working faces across the country consume nearly 4 million tons of emulsion annually, and the phenomenon of running,冒, dripping and leaking has caused large-scale water pollution and soil oilification. Ultra-high pressure water medium sealing is an anti-corrosion and sealing technology that our company has broken through in cooperation with Sany Heavy Equipment, overcoming the industry problems of poor water medium lubrication and corrosion resistance and short service life, and avoiding pollution from the source, representing the direction of green energy technology innovation; it has been recognized as the "Shanxi Province Innovation Product and Service Recommendation List" and Shanxi Boutique. Relevant information is released through technical conferences, exhibitions, official websites, and public accounts, covering an audience of more than 50,000 people.

IV. Social Responsibility

The company always adheres to the core value of "people-oriented", and attaches great importance to and safeguards the legitimate rights and interests and personal development of employees. It has established an industry-leading compensation system to provide employees with competitive compensation and comprehensive welfare guarantees; it insists on carrying out activities such as "sending warmth in winter, sending coolness in summer, and sending care during festivals", sending condolences to employees in difficulty before the Spring Festival, sending flowers and benefits to employees on Women's Day, "sending coolness" to employees in summer, and sending condolences to retired soldiers in the company on the "August 1st" Army Day, organizing full health checkups (100% participation rate), special screening for female employees, establishing a psychological counseling hotline, and the annual employee satisfaction rate reaches 92%. It has established a sound vocational training system to provide employees with vocational skills training and promotion opportunities. 70% of promoted managers are from internal training to help employees realize their personal value. By establishing a workers' congress, it actively builds a harmonious and stable labor relationship, and the current labor relationship harmony index has reached 95 points.

Safe production is the cornerstone of enterprise development. The company has established a sound safety production management system, strengthened safety education and training for employees, and regularly conducts safety inspections and hidden danger investigation and management activities. It has achieved "zero serious injuries and zero deaths" for 9 consecutive years, creating a safe and stable working environment for employees.

The company has always adhered to public welfare activities such as helping education with love, supporting medical and health care, and urban construction, and fulfilling its social responsibilities. Actively participate in social glory undertakings such as helping students with love and donating to the Shanxi Province Fanting Education Foundation. At the same time, the company's main负责人 serves as the executive director of the Promotion Association, which profoundly reflects the company's emphasis on social glory undertakings.

The company has arranged employment for 50 migrant workers, 30 college graduates, 7 veterans, and 2 disabled people. The company not only actively builds a harmonious labor relationship, but also continuously promotes employee career development. Actively participate in social welfare undertakings and pay attention to education, poverty alleviation, disaster relief and other fields. In December 2023, it was awarded the title of "Shanxi Province Civilized Unit" by the Propaganda and Ideological Culture Work Leading Group of the Shanxi Provincial Committee of the Communist Party of China.

V. Future Outlook

The company will continue to fulfill its social responsibilities, tackle key technologies for extreme working condition seals for high-end equipment, promote the development of the new energy industry, protect the environment, and promote social harmony. Increase R&D investment, launch efficient and environmentally friendly new energy products, enhance core competitiveness, and provide high-quality services. Strengthen energy conservation and emission reduction, explore new models of green development, and promote sustainable development. Pay attention to social issues, participate in public welfare activities, and contribute strength. Strengthen cooperation with governments, industry associations, and social organizations to promote the healthy development of enterprises. Shanxi Taibao Technology will closely integrate enterprise development with national strategies and people's livelihood needs. In the future, with innovation as the engine, green as the background, and responsibility as the link, we will forge ahead bravely and contribute to the construction of a manufacturing power and sustainable social development.

March 15, 2025