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Procurement Policy On Conflict Mineral

The mining of rare metals in Congo (gold) and the surroundingcountries and regions such as gold (Au), tantalum (Ta), tin (Sn)and tungsten (W)has caused serious human rights andenvironmental issues.Sales of these minerals might be able to provide financial support for continuous armed conflicts in these countries and but leads to long-term instability in theregion, so it’s called "conflictminerals".Xiamen Peaks Electric Co.,Ltd. Attaches a high importance to the problem ofconflict minerals, without purchasing or supportting the use of conflict minerals.

Xiamen Peaks Electric Co.,Ltd. does not use"conflict minerals" fromDr Congo and surrounding countries and regions, and it also requires suppliers to extend thisrequirement to sub-suppliers and trace the sources of gold (Au), tantalum (Ta), tin (Sn) and tungsten (W) contained in all these products.

Business Principles

Xiamen Peaks ElectricCo.,Ltd.is committed tocomplying with the high standards ofbusiness ethics and integrity, therefore the Peaks Electric promises:

1. Human rights

• Respectpersonal dignity, privacy and other rights;

• Don't hire employees by going against their individual wishes or force them to work;

• Any sexual harassment or compulsive, threatening, abusiveor exploitative behaviors are prohibited, including gestures, language and physical contact.

2.Fair labor conditions and childlabor

Provide fairlabor conditions. In particular:

• No employment discriminationbased on factors such as gender, skin color, race,religion, disability or sexual orientation, union membership and political factions is allowed. Also shall further comply with all applicable laws relating to theemployment discrimination;

• Respectemployees' rights of in the freedom of association andcollective bargaining;

• Nochild labor should be tolerated or used in any stage of general activities.

• Never engage any form of forced or compulsory labor or involuntary prison labor, and allow all employees to freely leave after reasonable notice is given;

• Provide fair compensation toemployees, and to comply with the requirements of the localwage regulations and/or collectiveagreements; and should provide employees with their ward at least being able to meet their basic needsif there are no applicable wage regulations and/or collective agreements.

• Ensure the working hours, including overtime, without exceeding the applicable legal requirement; when there are no such regulations, it’s suggested that working hours (including overtime)should not exceed every sixty  (60) hours per week;and ensure to allow employees to take at least one (1) complete day off per week.

3.Health, safety and environmentalmanagement

Provide all staffa safe and healthy workplace, and run business in environmentallysustainable way.In particular:

• Formally appoint qualified personnel to manage health, safety and environmental projects as well as measures for improvement;

• Formulate the corresponding organizational structure and system to managehealth, safety and environmental risks;

• Ensure that all workers are fully aware of these risks, and receive proper training on the implementation ofthe corresponding control measures.

4.Material compliance and conflictminerals

Peaks is committed to abiding by regulations and customerrequirements on relevant banned and restrictedsubstances, including harmful substances and conflict minerals. In particular:

• Peaks requires that the goods provided by their cooperation suppliers should comply with all relevant laws and regulations on the work scope of disabled or restricted substances and the cooperation suppliers shouldissue a statement to Peaks if the goods provided by their cooperation suppliers contain the substancescontained in the List Of Disable Restricted Substances Of Xiamen Peaks Electric;

• Implement the policy on conflict mineralsand perform due diligence to determine the source of the minerals.

5.Business ethics

Run business in the form of conforming to business ethics. In particular:

• Avoid any formof corruption, extortion and bribery. In particular, ensure that the money, thegifts, or other commitments paid to customers, government officials andany other relevant parties conform to the applicable laws;

• Comply with the antitrust laws and other anti-unfair competitionlaws;

• Require suppliers to disclose possible information on conflicts of interest to Peaks as therole of Peaks’s suppliers, including the disclosure of any possible economic benefits of the Peaks’s employees in any business of suppliers;

• Protect all of the confidential information provided by suppliers and their business partners;

• Respect other people's intellectual property rights and comply withinternational trade regulations and export control regulations.

6.Security of business running

Run in a secure way. In particular:

Take reasonablesteps to reducethreats of security risks such as terrorism, crime, epidemics andnatural disasters;

7. Procurement of suppliers,

Procure goods and services with a responsible attitude. In particular:         

In choosing First-tier suppliers to provide goods or servicesto Peaksdirectly or indirectly, thesuppliers shall agree to abide by "Code of Conduct or Similar Standards for Suppliers of Peaks Electric”;