Sinotruk (Hong Kong) Limited Supplier Code of Conduct

1. Applicability

This Code applies to individuals, organizations and companies (suppliers) who can supply or intend to supply goods and services, which include, but not limited to: raw materials, contract manufacturing, excipients, trade of goods, packaging, logistics (distribution and warehousing), equipment, machines and supplies, marketing and creative agency, printing, market research, travel related services, meeting services, IT hardware, software, and related support services, professional services (consulting and employee dispatching system), fleet, factories, finance, human resources, and R&D related suppliers. The suppliers include, but not limited to distributors, bidding agents, sales agents, clinical research services, laboratory and outsourced development services and business partners of Sinotruk and its affiliates and subsidiaries.

2. Complying with Applicable Laws, Regulations and Supplier Standards

Suppliers must comply with the laws, rules, regulations and industry and local ethical standards applicable to their operations, as well as the Sinotruk Supplier Code of Conduct.

3. Commercial Practice

Suppliers are required to conduct business ethically and with integrity, the details are as follows:

3.1  Counter  Bribery,  Kickbacks,  Illegal  Payments  and  Other  Corrupt Practices

Suppliers shall not bribe or provide any valuable items directly or indirectly through a third party to government officials, civil servants, party or personal, so as to gain unfair advantage, to win or retain business, improperly affect the behavior or decision of the person or organization, or illegally affect the action of any person, customers, the company or company representative. Suppliers must maintain accurate and transparent records that reflect actual transactions and payments. Suppliers shall not accept bribes or engage in other illegal commercial or governmental inducement activities.

3.2 Fair Competition and Anti-monopoly

Suppliers shall conduct fair competition and comply with all anti-monopoly laws. Suppliers shall adopt fair business practices, including truthful advertising.

3.3 Conflicts of Interest

 

The supplier must disclose any perceived or actual conflict of interest to Sinotruk. The Group must review any apparent or actual conflict, and if a conflict of interest is allowed, this decision must be documented. The conflict of interest arises when a personal interest or activity affects or appears to affect the company to act in its best objective interests. Supplier shall disclose to the company if its employee or a professional contracted by the company may have any type of interest in the suppliers business or have an interest association with the supplier.

3.4 Gifts and Hospitality

Gifts and hospitality are not required for the purpose of doing business with Sinotruk and its affiliated enterprises. We will select suppliers based on fair and objective criteria and will not have any preferences based on any personal relationship. We do not accept or solicit any illegal or improper  advantage, including money, commodities, hospitality, gifts or any other item of value, from suppliers or other persons with whom we conduct business.

4. Animal Welfare

We should treat animals with kindness and minimize pain and stress. Suppliers should seek opportunities to reduce the need for animal testing by adopting innovative analytical methods, reducing the number of animals used or improving procedures to minimize suffering. Alternatives should be adopted if they are scientifically valid and acceptable to regulators.

5. Data Privacy

Suppliers shall operate in accordance with the provisions of the Applicable Personal Information Protection Law, which includes privacy and security protection appropriate to the sensitivity of personal information collected or otherwise processed by suppliers on behalf of Sinotruk. Suppliers shall have appropriate organizational structures and procedures in place to protect personal information from accidental, unauthorized or illegal loss, damage, alteration, disclosure, use or access. This includes policies and procedures that address technical and organizational security, as well as confirmation of compliance with these requirements. Suppliers must comply with laws governing the transfer of data across borders

6. Human Rights, Labour and Employment Practices, Health and Safety

Suppliers shall commit to support the human rights of its employees and Sinotruk stakeholders, including its patients, and treat them with dignity and respect. In providing services or manufactured and other products to Sinotruk, suppliers must comply with laws and regulations governing human rights, including those governing human trafficking and slavery.

 

6.1 Freedom of Employment

Suppliers shall not use forced labour, bonded or indentured labour or involuntary prison labour.

6.2 Child Labour and Youth Labour

Suppliers shall not use child labor. Suppliers shall not employ workers under 18 years of age to perform dangerous work or night work and shall only employ workers under 18 years of age if they are above the legal age of employment or the age at which they have completed compulsory education.

6.3 Non-discrimination

Suppliers must comply with all applicable employment laws and regulations and must provide a workplace free from harassment and discrimination. Suppliers shall not  discriminate against individuals because of race, color, age, sex, sexual orientation, disability, religion, political  affiliation, union membership, marital status, or other grounds prohibited by law.

6.4 Fair Treatment

Suppliers shall provide a workplace free from harsh and unkind treatment (including any sexual harassment, sexual assault, physical punishment, mental or physical coercion or verbal abuse of employees) and free from any threatening behavior.

6.5 Wages, Benefits and Working Hours

Suppliers shall pay employees in accordance with applicable wage laws, including minimum wage, overtime hours and statutory benefits (including social insurance). Suppliers shall communicate to the employee the basis on which he/she is paid on time as required by local laws and Supplier policies, including overtime hours and overtime rates. Any payroll deductions should be reasonable, in accordance with applicable  law, and clearly understood by employees. Supplier shall provide appropriate rest periods, adequate rest days or rest periods and comply with applicable laws and agreements relating to the maximum number ofworking hours.

6.6 Health and Safety

The supplier shall provide a safe and healthy working environment and shall ensure the health and safety of any living place provided by the Supplier. Supplier must comply with all applicable health and safety laws and regulations and relevant regulations of Sinotruk. The Sinotruk develops appropriate supervision procedures, conduct regular safety inspections and audit assessments, report results and take improvement measures promptly to minimize the possibility of accidents.

6.7 Employee Protection

Suppliers shall protect employees from excessive exposure to chemical, biological, physical hazards and physically demanding tasks and working conditions (e.g., extreme heat or cold) in the workplace and in any company-provided housing.

6.8 Process Security

The supplier shall have a plan in place to avoid or mitigate the catastrophic release of chemicals or other substances, including specific plans to avoid fires and

 

explosions.

6.9 Emergency Preparedness and Response

Suppliers shall identify and assess emergency situations in the workplace and any company-provided housing and shall endeavour to minimize their potential impact by implementing emergency plans and response procedures.

6.10 Danger Information Draft

Suppliers shall be provided with safety information relating to hazardous substances to educate, train and protect employees from potential hazards. Such safety information shall be contained in a written document, in a language commonly used in the suppliers workplace. Suppliers shall ensure proper communication with other business partners in the value chain, including Sinotruk and its logistics and distributor partners, where appropriate, to ensure proper disclosure and management of risks.

6.11 Safety and Hygiene of Workplace Facilities

Suppliers workplace  facilities  (including  toilets,  canteen  and  any  employee accommodation provided) shall be safe, clean and hygienic and shall meet the basic needs of employees. Drinkable water should be provided to employees.

7. Environmental

Suppliers are required to operate in an environmentally responsible and efficient manner in order to minimize adverse environmental impacts. We encourage suppliers to conserve natural resources, avoid the use of hazardous materials as much as possible and engage with stakeholders (e.g., their employees and communities) in promoting reuse and recycling programs.

7.1 Environment Rights

Suppliers shall comply with all applicable environmental regulations. Supplier shall obtain all required environmental approvals, permits, information registrations and restrictions and comply with its operational and reporting requirements.

7.2 Waste and Discharges

Suppliers shall have appropriate systems in place to ensure the safe treatment, movement, storage, recycling, reuse or management of waste, gas discharge and wastewater discharge. Any waste, effluents or discharges with potential adverse effects on human or environmental health shall be properly managed, controlled and treated before being released into the environment.

7.3 Overflow and Release

Suppliers shall have systems in place to avoid and reduce accidental spills and releases in the environment.

 

7.4 Environmental Efficiency

Suppliers are required to take measures to conserve energy, reduce water consumption in areas with water stress or water scarcity, and seek to regularly measure and report GHG emissions from their operations.

7.5 Biodiversity Protection

Suppliers shall comply with the requirements of relevant laws and regulations on biodiversity protection, take measures to protect the ecological environment and resources such as forests, water and land, avoid and reduce the impact of operations on biodiversity.

8. Management System

The Supplier shall adopt a management system to promote continuous improvement and meet the expectations of this Supplier Code. Elements of the management system include:

8.1 Commitment and Accountability

The Supplier shall demonstrate its commitment to the concepts stated in this document by allocating appropriate resources.

8.2 Risk Management

Suppliers shall develop mechanisms to judge and manage risks in the multiple areas addressed by this Supplier Code.

8.3 Accurate Records and Draft Documents

Supplier shall maintain accurate records and documentation as necessary to demonstrate that it meets these expectations and complies with applicable regulations. The supplier must provide records to Sinotruk or its designated auditors for inspection upon request to confirm compliance with these standards. Records must be legible, transparent and reflect actual transactions and payments. The supplier shall not hide, fail to record or falsely record entries.

8.4 Training and Competency

The Supplier shall have a training programme to equip management and staff with the appropriate level of knowledge, skills and capabilities to cope with such expectations.

8.5 Continuous Improvement

We expect suppliers to set performance targets, implement action plans and take necessary corrective actions in response to deficiencies identified by internal or external assessments, inspections and management review to achieve continuous improvement in a number of elements of this Code.

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