Supply Chain Management

Category	Description
Policy and Commitment	Solar Applied Materials Technology Corp. Supplier Code of Conduct
Code of Conduct Review	Suppliers are required to comply with the “Solar Applied Materials Technology Corp. Supplier Code of Conduct,” which covers aspects including labor, health and safety, environment, business ethics, and management systems.
Training for Procurement Personnel	Conduct annual ESG education and training sessions for procurement personnel to ensure their comprehension of their roles and their ability to drive and manage supplier ESG programs.

Aspect	Description
Business Relevance	Transactions exceeding 10 million annually Sole source of supply / limited alternatives available Advanced technical and innovative capabilities／dependence on supplier’s technology
Environmental	Significant non-compliance incidents related to environmental, social, and governance matters. Potential risks, including but not limited to wastewater, waste, hazardous substances, human rights, labor rights, corruption, and bribery.
Social
Governance
Sector-specific Risk	Identify industry-specific risks associated with suppliers based on their respective industry attributes.
Commodity-specific Risk	Identify suppliers with potential risks associated with the characteristics of raw materials, addressing concerns like conflict minerals, hazardous substances, and other relevant factors.

Assessment Method	Description
Desk Assessment	Suppliers are required to complete the Supplier ESG Questionnaire.
On-site Assessment	Perform regular on-site supplier audits and evaluations conducted by the SOLAR team to assess supplier ESG performance and associated risks.

Category	Description
Corrective and Improvement Programs	Assist suppliers in developing improvement plans and ensuring their implementation to address any deficiencies.
Capacity Building Programs	Environmental Education: Guide suppliers to environmental certification organizations for environmental education and assist them in building environmental knowledge.

In order to ensure the safety of working environments for suppliers, contractors, and service providers, as well as to uphold environmental responsibilities, adhere to ethical standards, and ensure the dignity and respect of employees, SOLAR establishes this Supplier Code of Conduct. SOLAR requires suppliers to adhere to this code and also comply with the regulations of their operating countries and regions. Suppliers are encouraged to cascade and implement this code to their downstream suppliers. Through close collaboration, communication, and subsequent evaluations with suppliers, SOLAR aims to drive continuous improvement.