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Responsible Supply Chain

We require all of our suppliers and contractors to conduct their business responsibly, in a manner consistent with business ethics and our ESG policies. This is the precondition of working with us.

Main Performance in 2020:
  • 66.26%
    Access Rate
    We conducted a qualification examination on 1384 new suppliers. 917 qualified suppliers were admitted after careful examination, with an access rate of 66.26%.
  • 155
    On-site Inspection of Suppliers
    The channel supplier team has carried out an on-site inspection on 155 suppliers, focusing on their ESG contents such as the on-site operation environment, safety production status, environmental protection measures and employment situation.
  • 458
    Maintenance of Channel Suppliers
    Through on-site investigation, centralized review and verification of daily problems, we have maintained 458 channel suppliers.
Our Approach:
  • Policies and Rules
    We have issued the Policy Statement on Supplier Management , which requires suppliers and contractors to comply with our code of conduct as much as possible, in terms of business ethics, health and safety, environment, human rights, labor and community. We have also formulated supply chain management rules to help develop responsible supply chains. These include the Procurement and Sales Management Rules, the Detailed Rules for Implementation of Material Procurement, the Detailed Rules for Implementation of Smelting Raw Material Procurement and Product Sales, and the Guidelines for Supplier Management.
    Policies and Rules
  • Access and Due Diligence
    We conduct systematic access evaluation and audit of suppliers and contractors, assessing their basic qualifications, production and technology, product quality, delivery and services, as well as their ESG performance, including business ethics and anti-corruption efforts, occupational health and safety, environmental and ecological protection, labor management, community participation and human rights protection, etc.. With the establishment of Black and White List Rules, we could maintain suppliers and contractors. We also conduct necessary Due Diligence Investigation on the access and routine maintenance of suppliers and contractors to ensure that they meet our requirements.
    Access and Due Diligence
  • Risk Assessment and Auditing
    We review the authenticity and legitimacy of our suppliers’ qualifications, as well as their commercial reputation, on a regular and random basis. In principle, we organize a centralized review of channel suppliers quarterly and a comprehensive assessment annually. We evaluate the supply chain risk after investigation and verification of some information to conduct daily management, and the information is gathered through irregular state authoritative industrial and commercial information system, internal and external feedback, or complaints and reports received by the company's compliant channels. We also conduct necessary risk-based audits on suppliers and contractors by internal audit or engaging external audit.
    Risk Assessment and Auditing
  • Communication
    We want to establish long-term, stable cooperative relations with our suppliers based on sincerity, and we have established a normalized communication mechanism with suppliers to improve the sense of suppliers to perform their duties. Besides, we also provide suppliers and contractors with relevant policies and rules to obtain our responsible supply chains in forms of websites and contracts, and we keep necessary communication and appropriate meetings with them on their responsibility and performance.