Responsible Production and Procurement Management Policy

 

Chapter I General Provisions and Purpose

Article 1 Shenzhen Yite Holdings (Group) Co., Ltd. (referred as Yite Holdings) and its subsidiaries [KAI PENG MINING SARLU in the Democratic Republic of Congo (DRC), etc.] are dedicated to carrying out commercial activities by legal, compliant, and sustainable operational methods adopted in their business system and supply chain, including responsible production and procurement of non-ferrous resources and chemical products. This policy serves as our commitment to continuously carry out supervision and investigation on our product supply chain, to ensure that our products are produced responsibly in compliance with the relevant laws and regulations of the OECD and the places of operation.

This policy is consistent with our commitment to ethical business conduct and respect for human rights in our Labor and Human Rights Policy, Occupational Health and Safety Production Policy, Business Ethics and Integrity Policy, and Policy for Sustainable Environment and Ecology.

Article 2 This policy shall apply to the mining, processing, and trading businesses of Shenzhen Yite Holdings (Group) Co., Ltd. and its subsidiaries, as well as suppliers and partners who serve the above businesses.

 

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Chapter II Act Management

Article 3 Acts Concerning Human Rights

We recognize that engagement in mining, trading, processing, and export businesses in conflict-affected and high-risk areas involves risks that may have significant negative impacts. The company will neither tolerate nor aid, assist, or facilitate any party in any way to commit or profit from any form of infringement or abuse of human rights, including:

(1) Any form of cruel, inhuman, and degrading treatment;

(2) Any form of forced or compulsory labor;

(3) Any form of child labor;

(4) Any form of sexual violence;

(5) War crimes or other material violations of international humanitarian law;

(6) Crimes against humanity or acts of genocide.

If we have reasonable grounds to believe that such risks exist, that is, an upstream supplier is purchasing from or affiliated with any party who has committed the material infringements mentioned above, we will cease cooperation with the supplier in no time.

Article 4 Acts related to security forces and non-state armed groups

We will not tolerate any direct or indirect support for public or private security forces, non-state armed groups, or their related parties. If we identify any of the aforementioned risks in our business or supply chain, we will implement appropriate risk mitigation strategies, which may include suspending or ceasing cooperation with the affected suppliers, depending on the severity of the identified risks and the countermeasures taken.

Article 5 Acts related to financial crimes

We ensure that none of our employees, affiliates, or agents will promise, offer, accept, or solicit any bribes. We will not support any form of bribery or other violations of any local and applicable anti-corruption laws.

We will not offer, promise, give, or solicit any bribe, and will resist temptation and strive to eliminate the risk of money laundering. We will cooperate with suppliers and other relevant interested parties to prevent or mitigate the risk of financial crimes and improve the transparency of the supply chain.

 

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Chapter III System Management

Article 6 To date, we have established a complete procurement management system and a clean and efficient procurement process, including the introduction of policies such as the Management Process for Procurement Contract Review, Procurement Management System, and Measures for Management of Tendering and Procurement, and established a responsible production and procurement management system covering the whole business scope. Internally, we also define the management organizational structure, support due diligence in responsible production and supply chain, and ensure ongoing effective communication with internal and external interested parties. We also ensure the effective operation of the complaint mechanism so that any affected interested parties can express their opinions through the mechanism on the mining, trading, processing, and export of minerals in the company's proposed operations and broad supply chain.

 

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Chapter IV Responsibility Management

Article 7 We have made the Responsible Production and Procurement Management Policy available for public on the company's official website, which will also be communicated to internal and external interested parties and provided to suppliers. The management of the Group will be fully responsible for implementing this policy and supervising the implementations.

 

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Chapter V Supervision Management

Article 8 The company encourages all interested parties to report any complaints related to this policy or suspected violations of this policy through our Complaint Mechanism. Complaints can be made anonymously, and we will keep them strictly confidential to ensure the information and personal safety of whistle-blowers. For details of reporting methods, please refer to the Complaint Mechanism.

 

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Chapter VI Right to Interpretation

Article 9 The right to interpret, supervise, and implement this policy belongs to Shenzhen Yite Holdings (Group) Co., Ltd.

Article 10 This policy shall come into effect from the date of promulgation.