Supplier Partnership

1. Purpose of Green Supply Chain Management:
To comply with ESG requirements for ecological and environmental protection, fulfill social responsibilities, and enhance governance levels for sustainable operations, FITI Group ensures that suppliers and contractors understand and adhere to the Group’s policies on the non-use of conflict minerals, Responsible Business Alliance (RBA) Code of Conduct, and Hazardous Substance Free (HSF) standards, as well as comply with relevant domestic and international laws and regulations.
2.Supplier ESG & RBA Management:
FITI emphasizes environmental, health, and safety (EHS) performance, labor and ethical practices, and management systems among our suppliers and contractors. We require suppliers to commit to EHS standards, ethical labor conduct, anti-corruption and integrity, and continuous improvement of management systems. Additionally, FITI does not use conflict minerals sourced from conflict-affected regions or illegally obtained extended minerals. All suppliers are required to comply with conflict-free minerals regulations, with investigations conducted on suppliers whose products contain conflict minerals to verify their origins. We ensure that suppliers understand social responsibility standards and progressively improve their social performance to strengthen responsible supply chain management.
‧ Supplier Risk Classification: Suppliers are categorized into high, medium, and low risk levels. Different management approaches are applied according to each risk level.
‧ Annual Supplier Audits: Supplier audits are conducted annually and completed before the fourth quarter.
‧ Supplier Evaluation and Corrective Actions: Suppliers are required to provide explanations and implement corrective actions for any non-conformances identified during evaluations. The evaluation team then reviews the improvements to determine whether the supplier meets the acceptance criteria.
3. Hazardous Substance Free (HSF) Supplier Management:
1) Material and part risk levels are classified as high, medium, or low.
2) Annual audits are completed by the end of the fourth quarter each year.
4. Supplier Integrity, Ethics, and Confidentiality Requirements
5. ESG, RBA, and HSF Training and Audits for Suppliers
(1) Annual ESG, RBA, and HSF training is conducted for key suppliers in conjunction with annual audits, and suppliers are required to sign an ESG & RBA Training Declaration.
(2) Monthly follow-up reminders are issued for the training declarations. Suppliers failing to return signed declarations for over three months will be suspended.
(3) Annual ESG & RBA risk assessments and audits are performed for key suppliers alongside annual audits.
(4) Unscheduled audits are conducted for key suppliers in response to major environmental issues or changes in laws and regulations.

In recent years, human rights and environmental issues related to raw materials used in product manufacturing processes have become a major focus of international attention. Minerals sourced from the Democratic Republic of the Congo (DRC) and neighboring regions are widely recognized as "Conflict Minerals" due to their close association with armed conflict, humanitarian crises, and illegal mining activities. FITI Group supports the global movement to ban conflict minerals, commits that its products contain no metals sourced from conflict regions, and actively promotes supply chain transparency and responsible sourcing to uphold human rights and sustainability values together with suppliers.
(1) Corporate Commitment and Actions
1. FITI does not procure or use metals such as gold (Au), palladium (Pd), tantalum (Ta), tin (Sn), and tungsten (W) originating from conflict mineral regions.
2. We have established a conflict minerals policy and a responsible mineral sourcing management process, committing to use mineral sources that comply with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas or equivalent frameworks. Due diligence audits are conducted on suppliers.
3. Conflict minerals bans are incorporated into the Green Supply Chain Management Procedures and embedded in procurement contracts and order specifications to ensure supplier compliance.
4. Regular supply chain surveys and data audits are conducted to enhance overall mineral source transparency and responsible procurement awareness.
(2) Supplier Conflict Minerals Management Policy
1. Responsibility: All suppliers must assume social and environmental responsibilities, ensuring their products or parts do not involve any form of human rights violations or illegal mining activities.
2. Conflict Minerals Ban: FITI Group does not accept the use of conflict minerals sourced from the DRC and neighboring regions, including gold (Au), tantalum (Ta), tin (Sn), tungsten (W), and palladium (Pd).
3. Traceability Obligation: Suppliers shall trace the origin of the above metals and provide reasonable documentation proving they do not come from conflict areas or illegal supply chains.
4. Extended Minerals Investigation and Declaration: Starting in 2024, FITI has expanded its mineral management scope to include extended minerals such as cobalt and mica potentially contained in products. Suppliers are required to report source information and declare no use of materials from illegally mined areas.
5. Commitment Method: High-risk production suppliers are required to complete the Conflict Minerals Reporting Template (CMRT) and Extended Minerals Reporting Template (EMRT), undergo relevant assessments, and sign a Conflict Minerals Non-Use Declaration to demonstrate support for and commitment to the conflict minerals ban policy.

Implementation Status as of End 2024：Suppliers required to complete Conflict Minerals Survey: 65, Completion Rate: 96% ; Suppliers required to submit Conflict Minerals Non-Use Declaration: 103, Completion Rate: 96%

♦ Workplace Safety and Labor Dignity: FITI Supplier Responsible Business Alliance (RBA) Requirements

The Responsible Business Alliance (RBA) aims to ensure safe working conditions, respectful and dignified treatment of labor, and environmentally responsible business operations within the electronics industry supply chain. Suppliers are expected to publicly support the RBA and align their management systems accordingly. They must also ensure their suppliers adopt and apply RBA requirements. At minimum, suppliers should require their next-tier suppliers to acknowledge and implement the RBA standards. The RBA covers standards for labor, health and safety, environment, appropriate management systems, and business ethics. We encourage all supplier activities to comply with local laws and regulations of their operating countries/regions, and to actively advance internationally recognized standards to shoulder greater social and environmental responsibilities. Together with suppliers, we strive systematically and operationally to comply with RBA, aiming to provide a humane, safe, and green working environment. RBA audit items are incorporated into our supplier quality system audit checklist to ensure that FITI suppliers and supply chains achieve sustainability goals. For more details, please refer to the RBA official website.RBA。

Implementation Status as of End 2024: Suppliers required to comply with RBA Declaration: 95, Completion Rate: 96%

♦ Environmental Protection and Green Sustainability: FITI Product Environmental Management Standards — Material Requirements

To establish FITI’s environmental standards for green manufacturing and products, serving as green procurement guidelines for all FITI suppliers, we require suppliers to agree and comply with FITI’s environmental regulations incorporated in purchase contracts and order specifications. These standards apply to product design, manufacturing, assembly, and procurement (including materials, parts, components, accessories, products, batteries, and packaging materials) across all FITI business units. Material restrictions not covered are separately controlled in specific projects. Due to frequent changes in major customers' green procurement standards, all suppliers must ultimately comply with environmental protection laws and regulations applicable in production and usage locations.

Implementation Status as of End 2024: Suppliers required to submit Hazardous Substance Free (HSF) Declaration: 88, Completion Rate: 95%