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"In terms of supplier introduction assessment, the Group conducts assessment through document evaluation, on-site visits, staff interviews and management interviews, etc. On the basis of reference to the Group’s own standards, the Group fully combines GB/T 36000-20157 , ISO 26000, OECD standards8 , ILO9 guidelines, SA800010, ETI11 standards, Disney ILS12, Intertek WCA13, Sedex14, SMETA15, BSCI16, SLCP17, RBA18, IETP19 and other national laws and regulations as well as international standards to ensure the objectivity and fairness of the assessment criteria. In addition to production factory suppliers’ basic information such as qualifications, scale requirements, quality system and production technology and other basic information, we will also conduct social compliance audits from the aspects of labor, occupational health, fire protection, chemical management, environmental protection and other aspects. If zero tolerance items such as commercial bribery, child labor or forced labor, and illegal discharge of sewage are found, the introduction will be terminated. In case of other major environmental and social risks, the introduction will be suspended, and restarted after the supplier completes systematic rectification. In 2023, a total of 15 formal suppliers entered the social compliance audit in the introduction stage, and 100% passed the introduction evaluation after first review and second review."