Handa Enterprise Culture

In order to better enable employees to reach agreement with Handa's Company culture and ideas, and build a harmonious and stable Company development environment, in December 2020, Handa's Company culture has been upgraded to version 2.0 to enhance the company's centripetal force, enhance its innovation capabilities, and promote the company's long-term sustainable development.

Company spirit: Innovation, Integrity, Faithfulness, Customer first

Company mission:Aim to be the world's most competitive fabric & garment intelligent manufacturer

Company vision：Create a better fashion life together with the global benchmark brands

Operation strategy:Hi-Tech Handa， Fashion Handa， Green Handa

Operation philosophy:Strive harder as we are common; Become remarkable as we strive harder！

Staff behavior policy: dedicated, cooperative, efficient, progressive

Factory management strategy:Full lean, continuous improvement

Quality concept:Quality base, quality first

Handa red line:

1. Damage the benefits of the Company and disclose the business secrets of the Company.

2. Abuse of power and use of his position to take bribes.

3. To operate own or for others businesses, products and services which are the same kind as Handa Industries

4. Fraud, inaction, negligence and dereliction of duty cause economic losses to the Company.

5. Disseminate false or bad information about the Company to the public.

6. Any act that intentionally destroys the property of the Company and affects the safety of the Company.

Three principles of working: Perfect work, complete work, Self-improvement

Interpretation:

‘Perfect work’ principle

Strive for perfection is not only about accomplishment, but also excelsior;

 The standard for ‘perfect’ is: being neat and orderly, can be seen with half an eye.

Being neat: the results must be uniform and meet the 6S requirements

Being orderly: having standards, processes and requirements for working.

Can be seen with half an eye: the way of doing things and the results must be known and executed by anyone at a glance.

‘Complete work’ principle
Finishing what was required is only one-third of the whole work .

The standard  for ‘complete ’is: Doing, Communicating, Organizing.
Doing: doing a good job correctly as required.
Communicating: communicating with relevant departments and personnel on the processes and results of the work,which means reporting to higher authorities;contacting with related departments;guiding and instructing the subordinates.
Organizing: all content of the work is done according to the principle of perfect work, sorting and filing to save the work information and experience as a reference for future work.

‘Self-improvement’ principle

When there is a problem in the work, trace the cause according to ‘Self-improvement’ principle.

When there is a problem in the work, the first thing that must be considered is whether the self (or the department) does not do a good job, what can be improved, and how to improve, so there can be improvements; it should not be considered first what problems the other departments have or what has caused those problems. Leave the problems of the other departments or people to the superiors.

Three principles of quality: do not produce defective products, do not accept defective products, and do not allow defective products to flow into the next process.

Three principles of quality: Do not produce bad products

                                            Do not accept bad products

                                            Do not allow bad products to flow into the next process

Working method - 5W1H : WHAT    

                                            WHERE         

                                            WHEN     

                                                   WHO                 

                                                   WHY            

                                                   HOW      

Working order - PDCA : PLAN→DO→CHECK→ACTION   

Social Responsibility Strategy

In the development of more than 20 years, according to the spirit of CSC9000T management system, Handa Industriess summarized the management methods of social responsibility suitable for Handa in the practice of continuously fulfilling social responsibility. The healthy and sustainable development of Handa provides the basis and guarantee for Company to undertake social responsibility. Handa's active social responsibility can further promote the development of Company, thus forming a positive cycle of sustainable development.

Handa Industries integrates the social responsibility development concept, goal, Company development concept and strategic goal of China's textile industry. We strive to achieve the consistency of corporate social responsibility objectives with corporate development goals and long-term benefits, to achieve a win-win situation of responsibility and interests, and to promote the healthy development of Company as follows:

At the beginning of 2020, Handa Industries set up a new annual economic growth target. Under the coronavirus epidemic, company was facing unprecedented challenges, but company made positive actions, adjusted our production lines in time according to changes in external demand, and produced self-developed anti-virus masks, which are accepted by various brands and generated nearly 200 million sales. At the end of the year, the company achieved a sales growth of 6.59%, and average income of employees increased more than 21.3%.

Win Customer's Trust with Quality Guarantee and Maintain the Interests of Both Parties

Quality management operates strictly in accordance with ISO 9001 quality system standards and quality internal control standards, continuously improves the level of technology and production management, standardizes the operation process, strengthens the inspection of products manufactured, ensures the product qualification rate and customer satisfaction, safeguards the interests of both parties, and establishes the reputation of Companys.

Promoting Company Benefit by Optimizing Management

During the year, the company's organizational structure was continuously optimized to meet the management needs of the company's continuous changes and development in the new era. Handa Industries continuously improve the management of the Company's smart clothing production factory, and introduce advanced intelligent and automated production equipment and management systems on the basis of the full use of the hanging system, which promotes the digital transformation and intelligent development of the Company, and further improves the industrialization and informatization of the Company.Handa Industries eventually is to promote the steady growth of efficiency and effectiveness.

Enhancing the Competitiveness of Companys by Innovating New Products and Technologies

Handa Industries has established a research and development center to increase the research and development of fabrics and garments, carry out technological research, and continuously introduce to the market products that meet people’s needs, lead trends, and are green and environmentally friendly; With the domestic and overseas exhibitions and product promotion activities, the company's products are well-known in the industry.

Gathering the Company's Development Strength with the Growth of Employees

Handa Industries attaches great importance to the secondary growth of employees, and provides employees with opportunities and resources for growth and progress through the Handa Business School; The company is people-oriented, cares for employees, and provides employees with opportunities for promotion through fair and open competition, evaluation and other methods，which provides employees the stage and space to display their talents, and  creates a stable and high-quality workforce for the company at the same time.

Protecting the Environment by Energy Conservation and Emission Reduction and Promoting Harmonious Development

Rebuilding and eliminating backward production capacity and equipments; Using new environmental protection facilities and equipments to reduce wastewater, waste gas and solid waste discharge.

Implementing Corporate Social Responsibility with Responsible Investment

In response to my country's "One Belt One Road" initiative, Handa Industries established its first overseas garment factory in Yangon, Myanmar in 2014. Till 2020, Handa has opened four garment factories in Myanmar, as well as supporting dyeing and knitting factories are under construction. In addition to the Myanmar plant, the Egypt plant of Handa has also completed the infrastructure construction at the end of 2020 and started to recruit a large number of workers. In the course of our operations, based on the identification and assessment of risks, we have adopted a series of measures to ensure that the company's business and operations will not have a negative impact on the rights and interests of employees, the environment and local communities.

Promoting Intellectual Property Awareness and Protecting the Interests of Company and Customers

As a strategic resource for Companys to improve their core competitiveness, intellectual property has a very important position. The company attaches great importance to the protection of technological innovation achievements and intangible assets such as trademarks and patents. Till 2020, Handa Industries has 18 valid patents. The company also respects the innovations of others, and no intellectual property disputes occurred during the year.

    Social ResponsibilityPolicy

In order to ensure the safe, efficient, green and harmonious development of the Company, Handa integrates the expectations and needs of all stakeholders into the daily management and operation of the Company.

 Honest Management, No Fraud

Never produce or sell inferior goods or shoddy， and never use fraudulent means to seek self-interest.

Beneficiaries: consumers, customers, employee

    Fair competition, no monopoly

Win the market with strength, never engage in vicious competition, maintain market order.

Beneficiaries: Peer companies

    Honest cooperation, no bribery

Against the behavior of corruption, standby the standard business practices and refuse commercial bribery.

Beneficiaries: suppliers, customers, consumers

Law-abiding, no malicious violations

Being law-abiding and perform corporate & citizenship obligations according to law.

Beneficiaries: government, industry, employees, consumers

Healthy development without damaging the environment

The development of the company is not at the cost of damaging the environment, and strictly regulates the disposal of waste and wastewater.

Beneficiaries: community residents, government, society

Perform duties, being responsible

Being responsible for employees, customers, consumers, investors, and society.

Beneficiaries: all stakeholders

Social Responsibility Management

The concept of social responsibility is an important component of Handa Industries culture. Integrating social responsibility into Company development strategy, establishing Social Responsibility Office and leading group of social responsibility management, Handa improves the management system of social responsibility and realize the organic unity of economic responsibility, environmental responsibility and social responsibility.

The chairman of the board of Handa Industries is also the general manager of the leading group of corporate social responsibility management in accordance with the structure. The Social Responsibility Office is responsible for the specific implementation of deployment, goal setting, task tracking, supervision, guidance and error correction by the chairman, and organizes the preparation and publication of social responsibility reports.Companies and departments under each line carry out the objectives and tasks of social responsibility construction, feedback the results of implementation, and accept the guidance, supervision and inspection of the Social Responsibility Office, so as to continuously improve the implementation effect.

In order to cultivate the sense of social responsibility of the whole staff, Handa Industries organizes managers and employees at all levels to participate in social responsibility trainings every year. From the significance and value of corporate social responsibility to how to participate in it, these trainings make managers and employees have a clear understanding of social responsibility and improve their sense of social responsibility.At the same time, we use corporate websites and Wechat public platform to publicize social responsibility, and stimulate employees'sense of social responsibility and participation to promote them to fulfill their duties in their own work practice, keep safety in production, keep quality and quantity of products, pay attention to energy conservation and environmental protection at any time and anywhere, and join in the ranks of sharing social responsibility with Company as partners.

Social Responsibility Objectives, Ways of Stakeholders’ Participation in Management and Communication

Compliance and risk

Company will encounter various kinds of business risks in the process of continuous operation. Company should establish risk awareness, conduct risk assessment on environment, economy, society and other aspects, and prevent and eliminate the risk of adverse effects through the operation of management system, so as to ensure the stable development of Company.

In 2020, a sudden coronavirus epidemic broke our daily work plan. In the face of this crisis, the construction and improvement of a Company emergency management system is extremely important.

After the outbreak of the epidemic, how the company will actively respond to emergencies and ensure the stable development of the company becomes an important topic which company concerns. Handa Industries continuously improve the emergency management system, and publicize and implement the sense of responsibility to effectively respond to the risks that may arise during the operation of the company under the epidemic, and take effective measures to maintain the continuity of daily operations and management.

While improving the emergency management system, the company continues to improve the standardization process and system documents. In 2020, the company has completed the sorting and release of all process system documents, effectively avoiding risks in production, operation and management.

Main operational risks and control measures of the Company