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Honest business practices
Performance of Honest Business Practices

Performance of Honest Business Practices

Shape assessment project	yes	Abstract Description
Shape assessment project	Operation status		Differences between the Code of Conduct for Integrity Management of Listed and Over-the-Counter Companies and the Reasons Therefor
I. Formulate policies and plans for honest business operations
(i) Has the company formulated a policy of honest operation approved by the board of directors, and has it clearly stated the policy and practices of honest operation in its rules and regulations and external documents, as well as the commitment of the board of directors and senior management to actively implement the operating policy?	✔	(a) The Company has established a “Code of Conduct for Honest Business”, and the Audit Department is responsible for the formulation and supervision of the implementation of honest business policies and prevention measures, and reports to the Board of Directors on a regular basis.	No significant differences.
(ii) Has the company established a risk assessment mechanism for dishonest behavior, regularly analyzed and assessed business activities with a high risk of dishonest behavior within its business scope, and formulated a plan to prevent dishonest behavior accordingly, and at least covered the preventive measures for each of the behaviors in Article 7, Paragraph 2 of the "Code of Conduct for Honest Business Operations of Listed Companies"?	✔	(ii) The Company has established “Honest Business Operation Procedures and Code of Conduct”, which clearly defines the procedures and preventive measures for handling various business activities with higher risks of dishonest behavior.
(iii) Has the company clearly defined operating procedures, behavioral guidelines, penalties for violations, and appeal system in its plan to prevent dishonest behavior, and has it implemented and regularly reviewed and revised the aforementioned plan?	✔	(iii) The Company has established employee work rules and "Integrity Management Operating Procedures and Code of Conduct", which clearly define various operating procedures, code of conduct, penalties for violations and appeal system, and implements them.
II. Implementing Honest Business Practices
(i) Does the company assess the integrity records of its business partners and include integrity clauses in the contracts it signs with them?	✔	(i) Our company has established a “Code of Conduct for Honest Business”. When conducting business activities with external parties, we have taken into account the legality of the trading partners and whether they have a record of dishonest behavior. When entering into contracts with them, the rights and obligations of both parties are clearly defined to ensure that all business activities comply with the principle of honesty.	No significant differences.
(ii) Has the company set up a dedicated unit under the board of directors to promote corporate integrity and report to the board of directors regularly (at least once a year) on its integrity policy, measures to prevent dishonest behavior, and the implementation status?	✔	(ii) The Company has designated its Audit Department as the responsible unit for promoting corporate integrity and will regularly report on the implementation status to the Board of Directors. The results of this promotion are summarized in the table below for each assessment item and its operational status.
(iii) Has the company formulated a policy to prevent conflicts of interest, provided appropriate channels for disclosure, and implemented such a policy?	✔	(iii) The Company has clearly stipulated policies to prevent and avoid conflicts of interest for directors, managers and all employees in its "Code of Conduct for Honest Business", "Code of Ethical Conduct" and "Employee Work Rules", as well as appropriate channels for reporting illegal, unethical or related behaviors, in order to maintain the spirit of honest business operations of the Company. The following are the procedures for directors, managers, and other interested parties attending or participating in board meetings to avoid conflicts of interest during the meetings: If any proposal at each board meeting involves individuals who should recuse themselves, the emcee will remind them again to recuse themselves before the proposal is read. Four board meetings were held in 2014, all of which were conducted in accordance with the rules of procedure for board meetings.
(iv) Has the company established an effective accounting system and internal control system to implement honest operation, and has the internal audit unit formulated relevant audit plans based on the assessment results of the risk of dishonest behavior, and used them to check the compliance of the plan to prevent dishonest behavior, or has it commissioned an accountant to perform the audit?	✔	(iv) The Company has established effective accounting and internal control systems. Internal auditors regularly review compliance with these systems and prepare audit reports for submission to the Board of Directors. In the relevant audits conducted in 2014, all audited entities proposed improvement plans and established relevant preventative measures based on the audit findings. The audit department regularly tracks the progress of these improvements. Furthermore, the Company also complies with…Company LawandSecurities Exchange ActIn accordance with relevant laws and regulations, accountants are responsible for verifying and approving the relevant accounting statements.
(v) Does the company regularly conduct internal and external training on honest business practices?	✔	(v) Our company has established integrity-related regulations, which are promoted in various meetings. Before signing contracts with manufacturers, we also promote the relevant standards for honest business practices. In 2014, our company conducted 132.5 person-hours of internal and external education and training related to honest business practices (including courses on compliance with honest business practices regulations, food safety and hygiene management and inspection, accounting systems and internal controls).
III. Operation of the Company's Whistleblower System
(i) Has the company established a specific reporting and reward system, set up convenient reporting channels, and assigned appropriate personnel to handle reports?	✔	(a) The Company’s Code of Conduct and Code of Ethical Conduct both encourage employees to report to the Board of Directors, managers, internal auditors or other appropriate personnel when they suspect or discover any violation of laws, regulations or codes of ethical conduct.	No significant differences.
(ii) Has the company established standard operating procedures and related confidentiality mechanisms for handling whistleblower reports?	✔	(ii) Unless otherwise provided by law, the Company will keep confidential the personal information provided by the whistleblower and take appropriate protective measures in accordance with the law to protect them from unfair retaliation.
(iii) Has the company taken any measures to protect whistleblowers from being mistreated as a result of their whistleblowing?	✔	(iii) The Company maintains confidentiality and rigor in all reports received and subsequent investigations.
IV. Strengthen Information Disclosure Does the company disclose the content and effectiveness of its code of conduct for honest operation on its website and public information observation platform?	✔	Our company discloses its corporate culture and business philosophy on its website and will continue to strengthen the disclosure of relevant information on the company website. In addition, our company announces all major information on the public information observation station in accordance with laws and regulations.	No significant differences.
5. If the company has its own code of conduct for honest business operations in accordance with the "Code of Conduct for Listed Companies", please describe the differences between its operation and the established code: Our company has established the Code of Conduct for Honest Operations and the Operating Procedures and Guidelines for Honest Operations in accordance with the "Code of Conduct for Listed Companies". After self-examination in accordance with the regulations, our company's operation is not materially different from the "Code of Conduct for Honest Operations for Listed Companies".
VI. Other important information that helps to understand the company's integrity in its operations: (such as the company reviewing and revising its code of conduct for integrity, etc.) Our company reviews and revises its rules and regulations related to honest business practices and ethical conduct in accordance with changes in laws and regulations and the business environment, in order to meet legal requirements and the expectations of stakeholders, and to improve the effectiveness of honest business practices.