Sinoma Advanced Nitride Ceramics Co.，Ltd.

Supplier Code of Conduct

 

The Supplier Code of Conduct applies to all engineering projects, equipment, service, and other types of suppliers of Sinoma Advanced Nitride Ceramics Co., Ltd. (hereinafter referred to as “Sinoma Nitride”). Suppliers must comply with and implement, and are required to include their employees, subsidiaries, affiliates, agents and subcontractors, as well as lower-tier suppliers (the aforementioned suppliers and their employees, subsidiaries, affiliates, agents and subcontractors) (collectively referred to as the "Suppliers") to comply with and implement the Supplier Code of Conduct in their business operations and throughout the supply chain. Suppliers must promptly notify their contact person at Sinoma Nitride or the contact person provided at the end of this document of any situation that causes them to operate in violation of this Code of Conduct. Sinoma Nitride reserves the right to conduct any necessary verification related to the Supplier's compliance with the Supplier Code of Conduct.

1. Labor and Employment

1.1 Suppliers must ensure that all employees are employed purely on a voluntary basis. Suppliers shall not force employees, restrict personal freedom, or withhold identification documents;

1.2 Suppliers shall respect the human rights of employees:

1.3 Refrain from using child labor and shall not accept the use of child labor by any supplier or subcontractor;

1.4 Provide employees with safe and hygienic working and living conditions;

1.5 Provide equal and fair working environment for employees and prohibit any discriminatory behavior;

1.7 Guarantee that employees are free from harassment as well as illegal discrimination;

1.8 Respect employees' rights to free association and collective bargaining;

1.9 Ensure that the treatment of employees is in line with the national legal minimum wage.

2. Commercial criterion

2.1 Honest business

Suppliers shall be honest and trustworthy and shall not engage in or permit any form of corruption, extortion, bribery, blackmail, embezzlement and other acts involving improper advantage.

Suppliers shall not engage in commercial bribery to obtain improper benefits or business opportunities, and shall not bribe or transfer improper benefits to Sinoma Nitride and its subsidiaries and affiliates and their employees and employees' family members, including but not limited to the provision of cash, securities, payment vouchers, goods and employment opportunities, etc. They are also prohibited from giving Sinoma Nitride employees and their family members inappropriate business courtesies or gifts, including but not limited to the provision of valuables, high-value cultural gifts, travel, study tours, high-profile receptions, etc.

2.2 Fair competition

Fair competition shall be achieved in the conduct of business, and no vicious competition of any kind shall occur.

2.3 Confidentiality of information

Suppliers shall safeguard the personal information security of employees and customers, and protect the business confidential information of partners.

2.4 Respect for intellectual property rights

Suppliers shall respect intellectual property rights and shall not engage in or participate in any form of infringement.

2.5 Compliance

Suppliers shall strictly comply with all applicable laws and regulations, regulatory requirements, industry guidelines and other provisions, and comply with all applicable national and international anti-monopoly and trade control regulations. No involvement in money laundering behavior.

3.Safety and Quality

3.1 Product and Service Safety

Suppliers shall attach great importance to product and/or service safety and ensure the implementation of safety and security from system to implementation to monitoring.

3.2 Product and Service Quality

Suppliers shall develop and implement policies and management systems to minimize the impact of crime, business threats, infectious diseases, natural disasters and major accidents to ensure that products and services of the contracted quality are provided from start to finish.

3.3 Safety and Health Policy

The Supplier shall formulate and implement relevant safety and health protection policies and management systems to ensure that the safety and health of its employees, contractual partners and the public are not exposed to unnecessary risks as a result of its operations.

3.4 Occupational Safety and Health

Suppliers must provide a safe and healthy working environment for their employees, take active and effective preventive measures to prevent potential accidents and injuries, and eliminate occupational safety and health hazards for their employees. For special positions, suppliers shall provide employees with necessary protective facilities and tools, and carry out the necessary maintenance, repair and replacement work on a regular basis. All employees must receive relevant OSH training. Suppliers shall formulate a system of workers' compensation and medical insurance for employees in accordance with the law.

3.5 Ensure safe operation

The supplier shall not allow any behavior or convenient operation that jeopardizes safety. Suppliers should ensure that employees whom in good condition and not under the influence of alcohol and illegal drugs.

3.6 Health and Safety Training

All employees of the supplier must receive appropriate OSH training.

4. Environmental Protection

4.1 Compliance with laws and regulations

Suppliers shall comply with local environmental protection laws and related regulations to minimize adverse impacts on the environment.

4.2 Energy saving and emission reduction

Suppliers shall try to achieve energy saving and emission reduction by improving processes; improve the use of water resources; and develop channels for recycling and reuse of materials as much as possible to minimize waste disposal.

4.3 Hazardous substances

Suppliers shall identify and control chemical substances and other materials that pose a hazard when released into the environment, and ensure that these substances are safely handled, transported, stored, used, recycled or reused, and disposed of. Suppliers shall provide us with raw materials or auxiliary materials that do not contain or use hazardous substances specified in our "HSF Environmental Management Laws and Regulations on Hazardous Substances".

If the Supplier and its employees violate the above code of conduct, the Supplier knows and agrees that Sinoma Nitride has the right to unilaterally terminate the contract with the Supplier at any time by written notice, and that the Supplier shall not have the right to claim a breach of contract on the part of Sinoma Nitride, and shall indemnify Sinoma Nitride for any losses, damages, costs, and expenses suffered by Sinoma Nitride as a result of the Supplier's violation of the above provisions.

The Supplier confirms that it has carefully read the contents of the terms and conditions, and that it is aware of the legal responsibilities stipulated in this Code of Conduct and undertakes to comply with them.