We choose to cooperate with local suppliers in priority because we believe that purchase from the local suppliers is beneficial to the local economic growth while effectively reducing the carbon footprint at the same time. In 2022, there were 19 long-term cooperating suppliers, among which there were 8 suppliers in the service category and 11 suppliers in the equipment category, and 100% of the suppliers were local suppliers.
We conduct the pre-examination of the new supplier before cooperation in accordance with the six conditions of the “Supplier Selection Principle", including the criterion that suppliers shall be qualified established and have contracted business projects, have practical experience or ability, guarantee the labor safety and protect the ecology, so as to ensure the suppliers meet the Company’s standards in human rights, environment, labor and social impact. When the Company engages in the contract execution with a supplier, the supplier is requested to sign the “Supplier Ethics and Integrity Undertaking". The Company may rescind contracts in case where a supplier violates the Supplier Selection Principle and has dishonest behavior.
In order to strengthen the sustainable management mechanism of the supply chain, the Company uses the “Long-Term Cooperating Supplier Audit Form" for evaluation, conducts a field survey of outsourcing suppliers every year and issues a visit report to evaluate whether the supplier complies with the outsourcing operation specifications. In case where there is any negative impression, it is recorded in the “Special Event Table" to be used as a reference basis for future sessions of supplier selection. We hope to cooperate with suppliers that have ESG concept to achieve the vision of sustainable development.
