Commitment to Responsible Sourcing

Conflict minerals refer to minerals mined in areas of armed conflict or under conditions that violate human rights, specifically precious metal minerals mined by the Democratic Republic of the Congo and adjoining countries. Conflict minerals include gold (Au), tin (Sn), tantalum (Ta), tungsten (W), and Cobalt (Co) and are mainly used in electronic parts. In response to global control measures for conflict minerals, the Company has incorporated conflict minerals into its supplier management policies, and proposed policies, objectives and management practices to meet international trends and customer requirements. In 2022, Zhen Ding eliminated 30 smelters that did not pass or meet customer specifications, and monitored them at all times to ensure 100% compliance with regulations and customer requirements. VIEW <RIM MEMBER LIST>

Minerals Sourcing Target

The Company continues to promote supply chain improvement as required by laws and customers in order to eliminate the use of conflict minerals in its supply chain.
1. Supplier signing rate for commitment to using RMI-compliant smelters: 100%.
2. Supplier compliance rate for non-conflict mineral usage: 100%.
3. Compliance rate of using non-conflict minerals qualified suppliers for raw materials and products: 100%. VIEW CONFLICT MINERALS MANAGEMENT REPORT

Conflict Mineral Management Policy

• The Company promises that the smelters from which it purchases 3TG and cobalt materials are Responsible Minerals Initiative (RMI) certified smelters or customer-approved smelters.
• The Company promises to follow the OECD due diligence guidelines to conduct due diligence on its supply chain.
• The Company promises to not directly or indirectly purchase conflict minerals that directly or indirectly finance armed conflict groups.
• The Company shall not purchase 3TG and cobalt from the Democratic Republic of the Congo and adjoining countries.
• Suppliers shall impose the same conflict mineral management requirements on their upstream suppliers.

Conflict Mineral Management Practices

• Conduct investigation to trace conflict minerals in gold salts, electronic parts, tri-tin, and all products and materials in PCB that mainly contain gold, tantalum, tin, tungsten, cobalt, and mica. When applicable, we conduct investigations on special minerals requested by customers, such as nickel and zinc.
• Use the list of compliant smelters provided on the RBA website. If a smelter is not on the list, request for a response plan from the supplier.
• Require suppliers to impose the same conflict mineral management on their upstream suppliers.
• Require suppliers to sign a Declaration of Conflict-Free Minerals.