When Tang Eng purchases raw materials from foreign suppliers, it must sign a purchase contract, clearly stipulating that suppliers should abide by local laws and regulations, including labor and human rights related laws and regulations. No child labor has been employed by suppliers in 2024. At the same time, suppliers must also clearly provide the source of their raw materials, so as to filter and avoid obtaining raw materials produced by upstream manufacturers that violate international regulations or consensus. In terms of the raw material supplier management mechanism, there is a list of rejected manufacturers. Through the above-mentioned procurement specification and review mechanisms, suppliers can be managed and screened for pre-qualification and contract performance capabilities.

In line with international trends, Tang Eng Company has gradually begun to promote corporate social responsibility to cooperative suppliers or contractors in addition to fulfilling our own corporate social responsibility. For the upstream and downstream supply chain, including raw material suppliers, manufacturing and assembly, labor transportation and even waste removal and other stages, we also actively promote the fulfillment of corporate social responsibilities to suppliers.

In terms of the raw material supplier management mechanism, Tang Eng Company manages and screens suppliers' qualifications and contract performance capabilities through supplier evaluation and other review mechanisms. In purchasing raw materials from suppliers, the Company upholds the principle of fairness, matching short-, medium- and long-term contracts according to actual production needs, establishing good partnerships with suppliers, and hoping to reduce costs and stabilize material sources.
For important raw material suppliers, the Company has established two mechanisms, namely the ISO 9001 Supplier Evaluation and JIS MARK Supplier Evaluation. Once a year, through auditing and review, the supplier's performance ability is managed and screened, in order to ensure the stable quality of steel coils.

Operation method of "JIS MARK raw material supplier evaluation" once a year:

• Selection of qualified suppliers: Every January, the contractors of the Procurement Department will evaluate the Qualified Supplier Evaluation Form according to the original material name and manufacturer name, and prepare the Qualified Supplier List according to the original material name for compilation.
• In January each year, the Procurement Department needs to send the Supplier Appraisal Table to all appraisal units (acceptance unit, user unit and procurement department) according to the name of the original materials and the name of the manufacturer, and score according to the scoring standard. After scoring, the Procurement Department will make statistics on the total score and make a Supplier Appraisal List for consolidation. If the evaluation result is a slightly worse manufacturer, the purchase quantity may be reduced and the manufacturer shall be notified to improve. Those manufacturers with poor evaluation results are classified as unqualified manufacturers in the next year.

In 2024, JIS MARK supplier evaluation was conducted on 163 raw material suppliers that had contact within the past three years. The evaluation results: Premium: 161 (accounting for 98.8%), Excellent: 1 (accounting for 0.6%), Ordinary: 1 (accounting for 0.6%).

For individual procurement cases, Tang Eng Company asks bidders to provide the Substances of Very High Concern (REACH-SVHC) Conformity Statement and the Prohibited Substances Conformity Statement to increase manufacturers' concern for the environment and actively take various effective measures to reduce the negative impact of purchased materials on the environment.

In terms of engineering and labor procurement, those who are listed as rejected by the competent authorities due to violations of relevant domestic laws and regulations will not be allowed to become contractors of Tang Eng Company. In addition, when Tang Eng Company signs procurement contracts or agreements with manufacturers, it strictly requires manufacturers to abide by relevant government laws and regulations as well as other implementation rules in hiring laborers. In 2024, there was no major change in the supply chain of Tang Eng Company.