2023 Hengbao Protective Social Responsibility Report—Part One

Chapter 1: On Hengbao Protection

I. Company Overview

Guilin Hengbao Health Protection Co., Ltd. is a leading enterprise in China’s latex industry. Located in the Guilin Economic Development Zone, the company operates a compact, modern, garden-style factory. The first and second phases of the project cover an area of 85 mu and employ over 1,500 people. The third-phase project is planned to occupy an area of 200 mu. Hengbao Protective Products manufactures condoms, medical gloves, household gloves, as well as industrial and military protective gloves. The company aims to become a global smart manufacturing hub for latex—covering both natural and synthetic latex—within the next 3 to 5 years.

Hengbao Protective has already established 20 single-row production lines for medical surgical gloves, with an annual capacity of over 600 million pairs of high-quality medical surgical gloves—placing it first in China and among the top three worldwide. Among these, gloves made from new materials such as synthetic latex hold a significant global position. Hengbao Protective has also set up four production lines for condoms, with an annual output of over 500 million high-quality condoms. Currently, the company is planning a third-generation flexible polyurethane (synthetic latex) production line, which will become a global hub for the production and R&D of synthetic-latex condoms.

Hengbao Protective has obtained globally recognized certifications, including ISO system certifications (ISO13485, ISO14001, ISO45001) and product certifications (ISO9001), such as U.S. FDA product certification, UK SGS certification, EU CE and PPE certification, as well as Japan’s Ministry of Health, Labour and Welfare product certification and China’s Ministry of Commerce whitelist certification.

Hengbao Protective holds over 70 patented technologies and is the only “Little Giant” enterprise in China’s latex industry. It served as the medical glove supplier for the 2022 Beijing Winter Olympics and has been recognized by the Guangxi Zhuang Autonomous Region as an Enterprise Technology Center. The company enjoys a leading position in the research and development and production of new materials. In addition to natural latex materials, Hengbao Protective has taken the lead among its Chinese peers in graphene materials, polyurethane materials, and several other innovative materials. These materials can fully replicate the flexibility and performance of natural latex and are thus referred to as the next-generation synthetic latex.

In February 2023, Hengbao Protective merged with Zhonghong Medical. At the same time, Hengbao is planning its third-phase expansion. The new project will include the construction of 50 production lines for next-generation medical gloves and military gloves. Upon completion, Hengbao Protective will become the world’s largest and most technologically advanced latex enterprise. At that time, Hengbao Protective will pool resources from all sectors and strive toward becoming a world-class enterprise.

Hengbao Protective’s corporate culture upholds and promotes “Junzi Culture.” With the character of an honest (H) Junzi, a diligent (B) Junzi personality, a mutually prosperous (M) Junzi disposition, and a grateful (T) Junzi style, we strive to build, share, coexist, and thrive together with all sectors of society!

II. 2023 Highlights

• In February, Zhonghong Pulint and Hengbao Protective held a signing ceremony for their strategic merger. With the merger of Zhonghong Medical and Hengbao Protective, Hengbao officially joined the Guomao Holdings family.

• In March, Hengbao Protective and its parent company, Zhonghong Medical, were both named among the “Top 100 Chinese Rubber Industry Enterprises.”

• In April, Hengbao Protective was awarded the honor of “2022 Industrial Revitalization and Innovation Enterprise of Guilin City.”

• In May, Zhonghong Medical signed a strategic cooperation agreement and an exclusive agency agreement with Globemed Care LLC of the United Arab Emirates for Zhonghong Hengbao Medispo surgical gloves.

• In May 2023, at the Guangxi May Day Labor Award and Guangxi Worker Pioneer Award Commendation Conference, Hengbao Protective was awarded the “Guangxi May Day Labor Certificate.”

• In June, Hengbao Protective Medicis medical gloves were successfully included in the Guangxi Recommended Catalog of High-Quality Industrial Products.

• In August, Hengbao Protection officially launched its polyurethane vulcanization project, marking the company’s ability to produce polyurethane condom emulsion in-house and successfully breaking the monopoly of Japanese companies on polyurethane production technology.

• In August, Hengbao Protective won the Guangxi Enterprise Innovation and Entrepreneurship Award and the Guangxi Outstanding New Product Award.

• In September, Hengbao Protective was awarded the title of “Demonstration Enterprise for Single-Item Champions in Manufacturing of Guangxi Zhuang Autonomous Region” thanks to its production capacity, which ranks first in China and among the top three globally.

• In September, Hengbao Protective was awarded the title of “Green Factory” by the Guangxi Zhuang Autonomous Region, with the mission of “protecting resources, improving the environment, and promoting sustainable development.”

• In October, the “National Day Employee Long-Distance Running Event” organized by Zhonghong Pulint Group was held in relay fashion across its various branch offices. At the Guilin station, employees from Hengbao Protective Equipment took the lead and enthusiastically kicked off the race.

• In October, the lead-free, lightweight interventional radiation protection gloves jointly developed by a research team from the Russian Academy of Engineering and the National Academy of Sciences of Ukraine, in collaboration with Hengbao Protective Equipment, officially passed the inspection and certification conducted by the Radioactive Metrology Station of the China Institute of Radiation Protection and have now been successfully launched onto the market.

• In November, Guo Congming, Deputy Secretary of the Party Committee and General Manager of China National Trade & Investment Corporation Holdings, led a team to visit Hengbao for an inspection and held a symposium with the Mayor of Guilin City.

• In November, Hengbao Protective Products demonstrated its commitment to “gentlemanly culture” through concrete actions and was awarded the honorary title of “Guangxi Contract-Abiding and Creditworthy Enterprise.”

• In December, Hengbao Protective was named one of the “Top 50 Enterprises in Guilin,” and General Manager Hu Zhiqiang was recognized as an “Outstanding Entrepreneur in Guilin.”

• In December, Hengbao Protective successfully passed the final evaluation and acceptance, earning the title of one of Guilin’s first “Zero-Waste Cells” units and becoming one of Guilin’s first “Zero-Waste Factories.”

Chapter 2: The Construction of the Social Responsibility Report

I. Social Responsibility Philosophy

Corporate Vision: To become the world’s leading center for latex manufacturing.

Corporate Mission: Either don't do it at all, or do it better.

Corporate Values: The Honest Gentleman’s Character | The Diligent Gentleman’s Personality | The Prosperous Gentleman’s Style

Gentleman Culture:

A gentleman does not deceive: Employees do not engage in deceptive practices; companies do not produce deceptive products.

A gentleman is not a mere tool: Employees give more, striving to become their better selves; a company doesn’t prioritize profit above all else, instead focusing on creating better products.

A gentleman helps others achieve their excellence: Let’s build and share together, coexist and thrive together; by helping others succeed, we also achieve our own success.

II. Strategic Objectives for Social Responsibility

For a long time, the company has been committed to fulfilling its social responsibilities and has cultivated an outstanding corporate image. To drive the process of transformation and upgrading, the company has achieved remarkable results in the international market—Meds brand medical gloves have become China’s top exporter. In terms of customer satisfaction initiatives, the company rigorously controls product quality and provides exceptional services, striving to exceed customer expectations. In the realm of win-win cooperation, the company adheres to ethical business practices based on integrity, strictly upholds the principle of operating in compliance with laws and regulations, continuously strengthens communication and collaboration with partners, and actively promotes industry-wide cooperation, thereby earning the trust of customers, employees, shareholders, partners, and society at large. In the area of public welfare and charitable endeavors, the company actively participates in various public welfare and charitable activities through diverse channels, earnestly fulfills its social responsibilities, and gives back to society through concrete actions.

III. Corporate Management and Development

No.1 Employee Care

Hengbao Protection has always been committed to caring for and respecting its employees, emphasizing open communication between the company and its staff, listening closely to their voices, and providing practical assistance to employees facing difficulties.

Consistently building a heartwarming “safe haven” to demonstrate the company’s humanistic care.

The Hengbao Protective Dormitory Building has a total investment of 13 million yuan and covers a floor area of 4,330 square meters. It comprises six floors and provides over 100 well-equipped, fully-functional dorm rooms. Inside, there are representative facilities that showcase the company’s corporate culture, including a Party and Mass Activities Room, a Trade Union Activity Center, a Gym, a Movie Theater, and a Reading Room. Once completed, employees’ living conditions will be significantly improved, and the addition of recreational amenities will greatly enrich their leisure time. This project is a vivid demonstration of Hengbao’s commitment to putting people first, strengthening its roots in the Chinese Communist Party, delivering tangible benefits to the masses, and helping employees overcome their challenges.

No.2 Employee Activity

The company earnestly safeguards the legitimate rights and interests of its employees, organizes diverse and enriching cultural activities, and creates a comfortable work and living environment for them.

February: The union organizes a Lantern Festival garden party.

On the Lantern Festival, the Hengbao Protective Equipment Union organized a garden party within the factory premises, themed “The Jade Rabbit Welcomes Spring—Joyful Lantern Festival,” to enrich employees’ leisure time and create a harmonious and festive holiday atmosphere.

May: The 2nd “Hengbao Cup” Tug-of-War Competition

To enrich employees’ cultural and sports activities, foster a sense of collective pride among staff, create a positive and uplifting atmosphere, and enhance the company’s cohesion, the Hengbao Protective Equipment Union organized the second Hengbao Cup Tug-of-War Competition, which kicked off enthusiastically on the afternoon of May 4, Youth Day.

July: Organize a special Party Day activity for July 1st.

On July 1, on the occasion of the 102nd anniversary of the founding of the Communist Party of China, the Party branch organized party members, prospective party members, and mid-level and higher-level leaders of the company to visit the Xinxu Ambush Battle Memorial Park for the Xiangjiang Campaign of the Long March of the Red Army in Guanyang, where they carried out a special Party Day activity titled “Welcoming July 1st—Studying Party History—Recalling the Long March—Embarking on a New Journey.”

August: Launch a labor and skills competition.

In the second half of this year, from August to October, under the organization of the Hengbao Protective General Union, the company held a grand competition focused on labor and skills. During this event, more than 500 employees participated in competitions across 20 different categories. The purpose of this activity was to boost employees’ enthusiasm and creativity in production work, enhance their operational skills, and foster a positive atmosphere characterized by “rivalry, learning, emulation, assistance, and striving for excellence.”

September: Host a long-distance running event for employees to celebrate National Day.

On the eve of National Day 2023, the Party branch of Hengbao Protective Equipment and the Trade Union Department actively responded to the call from the parent company, Zhonghong Pulinh Group, for the “11th National Day Employee Long-Distance Running Event,” and successfully organized the Hengbao Protective Equipment National Day Employee Long-Distance Running Event at the Shanshui Park in Lingui District, Guilin City.

Due to space limitations, the “2023 Hengbao Social Responsibility Report” – Part II will be released next time.

Stay tuned!