We adhere to the supplier management philosophy of "global sourcing, open cooperation, resource sharing, and mutual benefit", and uphold the principle of "compliance and dynamic management". We focus on the development of the supply chain management system, formulate and continuously improve relevant systems such as the Regulations on Material Supply Management and the Measures for Material Supplier Management, together with supporting implementation plans and standards, thereby continuously strengthening the supplier compliance management.
We require all suppliers to comply with the following Code of Conduct ,which promotes sustainable development, safeguard human rights, protect the environment and upholds sound business ethics.
I. Labor rights
1.No forced labor：Any form of forced labor, bonded or involuntary labor is strictly prohibited.
2. No child labor：In accordance with the Labor Law of the People's Republic of China and the Law of the People's Republic of China on the Protection of Minors, it is prohibited to employ workers under the age of 16. The recruitment of minors aged 16 to 18 must comply with national restrictions on high-risk occupations.
3. Working condition guarantee：Working hours shall not exceed the statutory limit. Wages must meetor exceed local minimum standard, and social insurance and legal welfare shall be paid in full.
4. Occupational health and safety: Suppliers shall establish accident prevention mechanism and conduct regular emergency drills to ensure that the working environments comply with the Company's QHSE standards.
5. Anti-discrimination and harassment: Any form of discrimination or harassment on the basis of race, gender, religion, or other grounds is prohibited.
6. Freedom of association: The rights of employees to form trade unions in accordance with the law shall be respected.
II. Environment conservation
1. GHG and energy: Suppliers shall endeavor to reduce GHG emissions and other environmental impacts arising from operations under their control.
2. Pollution prevention and waste: Hazardous waste must be disposed of in 100% compliance withregulations; concentrations of wastewater and waste gas emissions shall bestrictly controlled.
3.Resource efficiency: Suppliers are encouraged to adopt water-saving, material-saving and recycling technologies.
4. Ecological conservation: The purchase of illegally felled timber is prohibited. Suppliers shall avoid ecological protection areas during project implementation.
III. Business ethics
1. Anti-corruption and conflict of interest：The Company maintains Zero Tolerance for bribery, kickbacks, or any other improper transfer of benefits.Suppliers are prohibited from maintaining direct or indirect equity investment, private employment, kinship, or other interest relationships with Company employees who have decision-making authority over their business.
2. Fair competition: Anti-competitive behaviors such as price manipulation, collusion, or bid rigging are strictly prohibited.
IV. Supervision and execution
1.Top-level responsibility: The Company has established A Procurement and Supply Chain Management Committee, with the management responsible for supervising all procurement and supply chain-related work.
Supplier selection: Based on business relevance, all suppliers are required to comply with the Company's unified QHSE(incl. information safety) standards and fulfill obligations relating to labor rights, human rights protection and business ethics. Preference is given to suppliers with strong ESG performance.Suppliersthat fail to meet the minimum ESG requirements within the prescribed timeframe, or are found to have deficiencies in operations, quality, compliance, integrity, or service,maybe disqualified or removed from the supplier base in accordance with the Company's supplier management regulations.
Risk assessment and management：The Company identifies a wide range of supplier-related risks, including compliance, environment, health and safety, labor practices, and ethical risks, as well as geopolitical and trade policy risks (e.g. tariff barriers, trade bans, foreign exchange controls in specific countries/regions), industry structural risks (e.g. technological iteration, overcapacity, supply chain concentration), and commodity price risks (e.g. abnormal fluctuations in key raw material within the industry). Risks are assessed for relative significance, and appropriate procedures and control measures are implemented to ensure compliance and effective risk management.
Second-party review and corrective actions:The compliance of suppliers with the Code of Conduct and contractual requirements is verified through on-site assessments conducted by Company employees or designated representatives.The Company provides specialized ESG audit training to relevant staff. For non-conformities identified during audits, suppliers are required to implement corrective actions within a specified timeframe and provide objective evidence. Where appropriate the Company may share benchmarking information on suppliers'ESG performance relative to industry peers to guide improvements.
Improvement support：The Company is committed to working collaboratively with suppliers to enhance ESG performance. During the implementation corrective actions or improvement plans, the Company mayprovide remote support (e.g. consultation, data sharing, online training) or on-site support (e.g. technical guidance, process diagnosis) as needed. In particular, we implement in-depth technical support programs to help suppliers establish or strengthen capabilities in areas such as environmental management, occupational health and safety, and quality management, thereby systematically improving overall ESG performance