Sinoma International is committed to building a sustainable supply chain and expanding its sustainable development requirements to business partners, sharing and disseminating sustainable behavior, and gradually establishing a unified sustainable supply chain development value system. Therefore, the Company has developed the Sustainable Supply Chain Management Policy to standardize all aspects of the supply chain and make it meet the Company's sustainable development needs. All levels of affiliated companies of the Company can refer to this Policy to develop sustainable supply chain management policies on their own.

1. Supplier access

① The Company uses a due diligence process to evaluate and select suppliers, and conducts risk assessment and admission assessment through a combination of qualitative and quantitative scoring. Among them, suppliers with principled problems, such as those involved in unfair competition, industrial monopoly, corruption, etc., will not be adopted;

② The Company focuses on evaluating the performance of suppliers in ESG, especially in terms of environmental governance benefits, employee rights protection, work environment, and management structure, and examines the relevant policies and governance capabilities of enterprise management. Under the same conditions, the Company will prioritize selecting suppliers with excellent ESG management and performance for cooperation;

③ The evaluation results are publicly disclosed and subject to inspection and complaints from other departments.

2. Supplier classification

Suppliers are categorized as strategic suppliers, main suppliers and general suppliers. Strategic suppliers refer to suppliers whose products are essential to the company's production and only a few such products are available in the market; main suppliers refer to suppliers whose products are fully competitive in the market and whose annual purchasing volume is relatively large; general suppliers refer to suppliers whose products are highly substitutable in the market and whose purchasing volume is relatively small in the business.

3. Supplier management

① Every year, the procurement unit or a third-party agency hired by the Company shall conduct sustainability risk assessments on key suppliers in accordance with the Company's Supplier Code of Conduct. For suppliers with high sustainability risks (such as potential labor issues, high energy consumption, integrity issues, etc.), the Company shall develop rectification and improvement plans, and pay attention to their subsequent rectification and improvement actions. For suppliers who fail to rectify in place, the Company reserves the right to suspend and/or revoke business relationships in advance;

② In order to better enhance the sustainable development performance of suppliers, the Company regularly organizes sustainable development training for suppliers, such as the latest policies and awareness raising activities, and should cover all key suppliers as much as possible.

4. Procurement personnel training

The Company regularly conducts training on supply chain ESG issues for procurement personnel, including the promotion and implementation of the Company's Sustainable Supply Chain Management Policy and the specific implementation process of sustainable procurement, to enhance the Company's procurement personnel's awareness of sustainable supply chain.

（The English translation of the Code is for reference only and the Chinese version shall prevail in case of any inconsistency between the Chinese version and English translation thereof）