Technology

　　1 Operating Mechanism

　　The Technology Center is affiliated with Jiacheng Company, which serves as the investing entity, and the Technology Center provides services to the company. In line with the company’s development strategy and overall plan, it conducts research and development on new products, new technologies, new processes, and new equipment, while also tackling key technologies and critical manufacturing processes. All research outcomes are owned by the company.

　　2 R&D Mechanism

　　Technological innovation and product development are primarily undertaken by the Product R&D Department, with project leaders designated according to the complexity of each initiative. For routine projects, senior technical experts from the Technology Center serve as project leaders and assemble project teams to carry out research and development activities and tackle key technical challenges. For projects of moderate complexity, the heads of the Product R&D and Technical Departments within the Technology Center assume responsibility as project leaders and form cross‑functional teams to execute R&D and address critical technical issues. For particularly challenging projects, collaborative R&D is pursued through various modalities in partnership with universities and research institutes.

　　3 Institutional Development

　　In accordance with the requirements of the quality management system, relevant policies and procedures have been established and refined, integrating the R&D and administrative functions of the Technology Center into a scientific, standardized, and institutionalized management framework, thereby ensuring the Center’s smooth operation. The implementation of these policies has significantly boosted the enthusiasm and creativity of our technical personnel, driving the company’s technological innovation efforts. The established systems include: the “Research Project Management System,” the “R&D Funding Management Measures,” the “R&D Personnel Performance Evaluation and Incentive System,” the “R&D Investment and Expenditure Accounting Management Measures,” the “Composition and Responsibilities of the Technical Review Committee,” the “Science and Technology Project Award System,” the “Intellectual Property Management Measures,” and the “Talent Development and Recruitment Management Measures,” among others.

　　4 Technological Innovation Investment and Financial Management

　　The development of new products has yielded direct economic and social benefits for the company. Company leadership places great emphasis on product R&D and technological innovation, allocating ample funding to these areas each year. R&D expenditure has consistently accounted for no less than 4% of annual sales revenue over the past three years. Funding for the technology center encompasses dedicated grants and loans for technology development and innovation projects, as well as revenue generated from technical services and policy‑driven support. A “Regulations on the Administration of Research and Development Expenses” has been established to oversee the management of R&D budgets.