Supply chain management

Supplier identification measures

In the strategy of identifying suppliers, the company first uses "price", "quality" and "lead time" as the measurement factors to select the domestic suppliers that best meet the needs; and aims to establish long-term cooperative relationships to ensure the stability of the supply chain. The following will reveal the company's relevant measures in supplier evaluation.
1. The purpose of this operating standard is to establish the basic principles for supplier evaluation, and to determine the quantity, priority and payment period of procurement in a grading manner, and to provide the contractor and related personnel with a standardized basis for their operations.
2. Suppliers whom we purchase raw materials, molds, and packaging equipment for the first time should purchase them in small quantities on a trial basis for half a year or three to five times. After the trial period is over, they will be evaluated according to regulations. However, this is not applicable to one-time purchases to cooperate with the company's new product development and testing materials.
3. Suppliers who score less than 60 points after the evaluation are unqualified, that is, they are not ranked. Manufacturers whose evaluation results are disqualified should stop purchasing for six months before re-evaluating and proceeding with the evaluation method of the initial purchase. Manufacturers whose re-evaluation results are negative will also need to stop purchasing for six months before re-evaluation, and will be processed in the same way as the initial purchase evaluation. In 2022, there will be no unqualified manufacturers with scores lower than 60 points.
4. According to the cooperative factory (supplier) evaluation manual, except for suppliers who purchase for the first time, other suppliers will be evaluated once a year as a principle. Suppliers who have not purchased in the current year will not be scored, but will still be included in the list of qualified suppliers; those who have not transacted for three consecutive years will no longer be included in the list of qualified suppliers. The company has 97 suppliers with a transaction turnover of more than 1 million yuan in 2022, and 97 of them have been evaluated, with a total of 100%.
5. ChunYu requires suppliers/contractors to fulfill the management requirements of the corporate social responsibility commitment letter. Suppliers/contractors must abide by corporate social responsibility standards and local competent authorities’ regulations on labor rights, health and safety, environmental protection and business ethics, and educate relevant personnel on the following matters, including prohibiting the use of child labor and forced labor, and not Accept suppliers and subcontractors who use child labor or forced labor; provide an equal and fair working environment and prohibit any form of abuse, sexual harassment and discrimination. Respect basic human rights and prohibit any form of humiliation, corporal punishment, mental or physical coercion; provide safe and hygienic working and living conditions to ensure the safety and health of employees; promote labor-management cooperation and respect employees' freedom of association and collective bargaining rights; Properly arrange production plans and workers’ working hours, breaks and vacations; comply with applicable labor, environmental, safety and health regulations and international standards, minimize pollution and continuously improve it; provide reasonable wages and benefits to at least meet the basic needs of workers and local minimum wage standards; do not tolerate or engage in any corruption, extortion and bribery, and respect intellectual property rights.
6. Suppliers/contractors must accept ChunYu’s on-site audits and inspections, provide truthful and complete information required for the audit, promptly take corrective and remedial actions for any non-conformities that violate corporate social responsibility standards, and regularly review compliance status and report to All employees shall make announcements to better meet and exceed the requirements of corporate social responsibility standards.
7. Any newly applied cooperative factory shall be rated by the Purchasing Department together with the Quality Assurance Department and the Technical Department based on the content of the "Affiliated Factory Evaluation Report" (a score of 60 points is considered a qualified manufacturer).
8.The evaluation process is based on environmental safety 18%, machinery and equipment 20%, material management 15%, testing equipment and testing capabilities 25%, price level 8%, quality level 10%, and management system 4%, totaling 100%.

Safety and Health

Safety and health requirements are the company's primary goal. If the company's production environment does not have safety and health flaws, it will violate the requirements of social responsibility. Therefore, the company not only pays attention to the work safety and hygiene of its employees, but also those who perform labor in the company are employees that ChunYu intends to protect. The details of our company’s safety and health policy for contractors are as follows:

1. ChunYu Company has a goal of zero work-related injuries for contractors. In addition to complying with labor safety and health regulations, contractors must also cooperate with the "Contractor Labor Contracting" and other operating standards established by Chunyu Company. When contractors enter the factory, they must carry out safety and health education and publicity, and must fill in the "Contractor's Safety Construction Application Form", "Contractor's Construction Personnel List" and "Other Operation Permit Application Form" to ensure that the contractor understands the relevant environmental, safety and health regulations; At the same time, contractors are required to sign a "Safety and Health Responsibility Commitment Letter" to ensure that their staff ensure that they comply with safety and health work regulations when entering the factory.

2. Chunyu Company has participated in the Occupational Safety and Health Administration of the Ministry of Labor - Safety Family since 2010. Through the Safety Family, it has enhanced occupational safety and disaster prevention capabilities, improved workplace safety and health, and enhanced independent management capabilities. So far, 21 contractors have participated, since 2022 there was no work safety incident involving any contractor throughout the year.

Supplier Manual

Document Name

File Area

Boiler Operation Safety Management

Handling of Vendor Violations of Chunyu Company's Safety Regulations

Tobacco Hazard Prevention

Forklift

Management Regulations for Hot Work Operations

Aerial Work

Aerial Work Platform

Crane Safety Management

Confined Space Work Safety

Air Compressor Safety Management

Flammable Chemicals Loading and Unloading Safety Management

Contractor Labor Contracting Work Standards

Contracting Work Safety Control

Agreement Organization Operational Regulations

Refrigeration and Air Conditioning Maintenance and Replacement

Chemical Tanker Site Management

DC-35 Supplier Manual