1. Company Management System

Establishing standardized company management systems is the intrinsic driving force behind a company's sustainable development. Since its establishment in 2005, the company has organically integrated company management with production and operation. Strictly following the requirements of relevant national laws, regulations, and rules, we have established a modern enterprise system, improved the corporate governance structure, and standardized company operations. A systematic and scientific regulatory system has been established, based on the Company Articles of Association and primarily structured around the rules of procedure for the shareholders' meeting, board of directors' meeting, supervisory board meeting, and general manager's work regulations. A decision-making, execution, operation management, and effective supervision power-balancing mechanism has been formed, with the shareholders' meeting, board of directors, supervisory board, and management as the main structural components. This ensures the healthy operation of various business activities, including production and operation, and achieves the company's sustainable and healthy development.

2. Company Development

Since its official launch in May 2005, the company has centered on reform and innovation, thoroughly implementing the Scientific Outlook on Development, innovating marketing strategies, actively responding to market changes, carrying out independent innovation, focusing on financial budgeting and cost assessment, and strengthening the company's risk prevention and control capabilities, thus promoting continued rapid growth in the company's operating performance.

Starting in 2018, Yubang Technology began expanding into the field of military component production and research and development, outside of medical products. To date, it has successfully provided component production tasks for five military units. The samples delivered in 2022 will significantly improve production and delivery in 2023. In 2020, annual sales revenue reached 70 million yuan, with taxes paid of 2.6515 million yuan; in 2021, sales revenue reached 80 million yuan, a 14% increase year-on-year, with taxes paid of 3.6407 million yuan; in 2022, sales revenue reached 100 million yuan, a 25% increase year-on-year, with taxes paid of 2.5261 million yuan; in 2023, sales revenue reached 120 million yuan, a 20% increase year-on-year, with taxes paid of 3.226 million yuan; in 2024, sales revenue reached 110 million yuan, an 8% decrease year-on-year, but taxes paid increased to 3.5652 million yuan due to increased new product development; it is expected that sales revenue will reach 160 million yuan in 2025.

3. Product Management

The company has always adhered to the quality policy of "survival through quality, brand building through quality, efficiency through quality, and development through quality." Product quality is considered the lifeblood of the enterprise. We strictly control product quality, establishing a long-term mechanism for product quality management and a comprehensive quality management system. Quality control and assurance are strengthened at every stage, from raw material control and technical support to production process control and sales control, to provide customers with reliable products.

The company has obtained 26 utility model patents and 6 invention patents authorized by the State Intellectual Property Office. It has also received honors and titles such as "Specialized, Refined, and Unique Enterprise of Shaanxi Province," "Advanced Intelligent Manufacturing Enterprise of Shaanxi Province," "High-tech Enterprise of Shaanxi Province," and "Xi'an Nuclear Magnetic Resonance Equipment Key Component Engineering Technology Center."

4. Talent Cultivation

The company has implemented a series of preferential policies and measures to attract and recruit talent, including assisting recruited personnel with their spouses' employment and housing, allowing them to feel our sincerity and ensuring they are happy to come and satisfied with their work. Through these measures, in recent years we have recruited more than 150 engineering and technical personnel with junior college or higher education and intermediate or senior technical titles from across the country, providing a talent guarantee for the company's technological innovation and development.

Employees are the company's greatest asset. Recognizing the hardships faced by employees in today's society, the company manages strictly while also prioritizing employee well-being and morale in daily work.

5. Environmental Protection

The company regards environmental protection as an important part of its sustainable development strategy, emphasizing its environmental protection responsibilities and actively practicing environmentally friendly and resource-saving development.

Environmental management is integrated into the company's management system and permeates all aspects of product production. First, the company strengthens publicity in various departments to enhance the environmental awareness of all employees. Second, environmental management indicators are implemented in every stage of the product production process, establishing a target responsibility system from senior management to grassroots teams, forming a management network, and promptly reporting the production and pollution discharge situation of each department. This ensures accountability and clear rewards and punishments, truly integrating environmental protection and environmental awareness into every employee. Modern information technology is utilized, such as paperless offices, to promote the construction of a resource-saving society. The company actively introduces modern information technology such as computerized accounting, ERP management, and intranets.

Employees are encouraged to innovate technologically, phasing out outdated production processes and building an environmentally friendly enterprise. In 2020, the production system launched a campaign for rationalization suggestions centered on "energy saving, cost reduction, increased production, and increased efficiency." This significantly improved the comprehensive utilization rate of energy and materials. Rationalization suggestions for improvements to equipment, obsolete equipment and facilities, materials, and energy sources were implemented to reduce the consumption of water, electricity, and gas and promote resource recycling. Production processes were optimized to achieve energy saving, emission reduction, increased production, and increased efficiency.

6. Undertaking the Responsibility of Developing Science and Technology and Creating Independent Intellectual Property Rights

Currently, nationwide, the economic efficiency of Chinese enterprises is not very good, and the resource input-output ratio is low. To solve the problem of low efficiency, we must attach importance to technological innovation. Through technological innovation, we can reduce the consumption of coal, electricity, oil, and transportation, further improving enterprise efficiency. Since the reform and opening up, national science and technology has developed rapidly, but intellectual property rights issues persist, mainly due to insufficient protection of patent-related intellectual property rights and a lack of emphasis from enterprises. For long-term enterprise development, core technologies are essential, and these technologies must be protected as intellectual property rights. Enterprises must attach great importance to technology introduction and scientific research and development, increasing investment in funds and personnel, and striving to make innovation enterprise-led. Our company encourages individual creativity, regularly publicizes knowledge about intellectual property rights, and has established a corresponding reward mechanism for created intellectual property rights.

December 31, 2024