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            Annual due diligence survey report

            2020 Due diligence Management Survey Report

            1.Company Information£º
            Taike Technology£¨Suzhou£©Co., Ltd£¨hereinafter referred to as Taike Technology£© is a foreign invested company of high technology Which located at No.20 Chengyang Road, Xiangcheng Economic Development Area,Suzhou city , Jiangsu province, China with the CID number 913205007394012595. Established on August 12,2002. Taike Technology specialized in research, design, manufacture, market and services of refractory metals,such as Tantalum.We always service our customers the tantalum products with high quality and favourable price .While providing satisfactory products to our customers,Taike Technology has never forgotten our social responsibilities,we strictly by relevant laws and regulations and international rules.
            Taike Technology adheres to "enhancing the creativity of R&D, refining on the quality of the products, pursuing the perfect to serve the clients", and with the technique service team of full professional experience, we provide stable quality and prompt service to the clients and grow up continuously to adjust to and satisfy the market's needs.In order to achieve the goal of common growth.To fully embody the company¡¯s social responsibility and values,as a member of TIC,we committed to establishing a sound due diligence management system, and promise to control and choose the source of raw materials strictly,resolutely avoiding procurement of non-compliant raw materials from high-risk areas so as to prevent benefiting interest groups in the region which results in continuous local unrest or conflict escalation or serious human rights violations.

            2.RMAP Assessment Summary:
            As a responsible company,Taike Technology has been actively supporting and participating in the annual audit of Responsible Mineral Assurance Process(RMAP).As of December 2020 Taike Technology has completed RMAP in 4 consecutive times and successfully passed the 2018-2019 annual audit.The latest RMAP audit time was on June 13, 2019.The assessment period starts from July 3, 2018 to June 13,2019.The audit was performed by an independent third party designed by RMI and passed successfully.

            3.Responsible Minerals Supply Chain Policy:
            Taike Technology strictly adhered to and fully complied with the OECD¡¯s due diligence guidance for responsible supply chains of mineral in conflict-affected areas and high-risk areas.In accordance with guidance and requirements, to avoid directly or indirectly funding for or benefiting armed groups from conflict minerals and/or conflict minerals involving other serious human rights violating in high-risk and conflict-affected areas,Taike Technology has developed its own responsible minerals supply chain policy. The policy is posted on Taike Technology website:www.bestyuce.com.As a result, Taike Technology has established a dedicated management team,which is led by the Executive Vice President.The team member include sells manager¡¢processing manager¡¢purchase manager¡¢warehouse keeper¡¢testing manager and other relevant staff.

            4.Management System£º
            Taike Technology has a very strict management system for the supply chains,and also has developed a series of complete supply chains control system.Through these measures and procedures, ensures that the conflict materials from conflict-affected areas are never purchased or used, and that any conflict raw materials and unidentified raw materials are allowed to enter the supply chains,in order to prevent mineral exploitation and trade from becoming a source of conflict,human rights violations and insecurity.In July 2018, we reviewed and revised all control procedures and documents again to ensure compliance with the latest requirements.
            Taike Technology strictly abides by its commitments in supply chains policies and has developed internal processes for due diligence.Taike Technology Executive Vice President is responsible for supervising the design and implementation of due diligence plans and risk management,Vice General Manager is appointed to be responsible for due diligence and coordinate the work of all relevant departments(including marketing,processing,purchasing,warehouse and testing)to ensure that all departments have fulfilled their duties ans executed due diligence plans and reported any warning signals and potential risks found;conducting a due diligence management system training for all relevant personnel every year in according to the requirements of the due diligence program, and if the plan is update, the company will carry out additional training as needed.

            5.Internal Control System£º
            5.1 Taike Technology has found its due diligence management system to align it with OECD guidance and RMAP.
            5.2 Taike Technology has informed all identified upstream suppliers of the latest supply chains policies and procurement requirements.
            5.3 Open and transparent procurement policy:
            1) Taike Technology¡¯s procurement statement of raw materials has been posted on Taike Technology public website so that each supplier has a clear understanding of our procurement policy.
            2) Taike Technology issued the "Responsible Purchasing Control Procedures" and the "Responsible Purchasing Policy" to all internal departments of the company, making every employee aware and follow.
            5.4 Control procedures for raw material procurement:Taike Technology has formulated and passed 15 procedures including "Tantalum materials Purchasing Management Control Procedures", '"The Supplier Risk Identification,Assessment and Control¡±,¡°Responsible for the audit and management procedure of the annual report¡±,¡°The  evidence is not complete or inconsistent material management method¡±,¡°staff responsibilities ans training¡±,¡°The regulations on the transport of goods¡±,¡°The vendor audit control ¡±,¡°Responsible for the supply chain¡±,Responsible Purchasing requirements for supplier", "the supplier risk category", "Risk identification,assessment and control for tantalum raw material acceptance", "Risk Assessment ",¡°Processing contract version¡±£¬¡°Purchase contract¡±£¬"Product identification and traceability management", and so on 15process control procedures, to restrict and stop any "conflict raw materials" or unidentified raw materials entering Taike Technology¡¯s supply chains.
            5.5 Tracking process for traceable materials: Through the implementation of ¡°The regulations on the transport of goods¡±¡¢¡°The regulations on the transport of goods¡±to track and control of all Tantalum raw materials in use is guaranteed.
            5.6 Conduct due diligence on suppliers and maintain continuity: In accordance with the OECD guidance and the audit requirements of the Responsible Minerals Initiative (RMI),Taike Technology regularly conducts due diligence on raw material suppliers, and reviews the legality, quality assurance and compliance of suppliers as the basis for accepting or disqualifying suppliers into the supply system. If we find any non-conformance, we will ask for rectification. After the rectification, if the requirements still cannot be met, we will immediately stop purchasing from the company and return the purchased non-conforming materials, and suspend cooperation with the supplier until the reassessment meets the requirements.
            5.7 Extensive public communication channels: 1) Taike Technology through due diligence investigation on upstream raw material suppliers, promotes to all suppliers "OECD's due diligence guidance for responsible supply chains of minerals in conflict-affected areas and high-risk areas", RMAP criteria and requirements of responsible supply chains. At the same time, the company reminds and urges upstream raw material suppliers to operate legally and compliantly, and do not operate any ',conflict materials" or unidentified raw materials. The special terms for 'non-conflict are set out in our contracts with all suppliers, and all suppliers are committed to providing "non-conflicting materials". 2) Taike Technology actively participates in international conferences organized by international organizations such as TIC, and often discusses with downstream customers to learn about the "OECD's due diligence guidance for responsible supply chains of minerals in conflict-affected areas and high-risk areas", RMI audit standards and transparency requirements for responsible Tantalum supply chains.
            5.8 Promote to the public through the Internet, internal announcements, etc. "OECD's due diligence guidance for responsible supply chains of minerals in conflict-affected areas and high-risk areas", the latest requirements of the Responsible Business Alliance's audit standards for Tantalum supply chains, and requirements for transparency in the mineral supply chains.
            5.9 To establish a channel of complaint, Taike Technology has opened relevant information to the society on its public website, including the telephone number and the person in charge, and is willing to accept supervision from the society.
            5.10 When necessary, Taike Technology is usually willing to share supply chains data and information with upstream suppliers and downstream customers.
            5.11 Training employees in various ways: Taike Technology trains all employees of the enterprise, including senior management, through centralized training, internal announcements means, so that they can fully understand that "OECD's due diligence guidance for responsible supply chainss of minerals in conflict-affected areas and high-risk areas, the latest requirements of the Responsible Business Alliance's audit standards for Tantalum supply chains, and requirements for transparency in the mineral supply chains.
            5.12 Actively fulfill social responsibilities, build a corporate image that is compliant and responsible to society. The company has always closely integrated the economic development of the company with the fulfillment of social responsibilities, ensuring the legal and ethical operation, and fulfilling its social responsibilities in a comprehensive manner through the realization of technological innovation, safe production, employee rights, energy conservation and emission reduction, and social welfare.

            6. Risk Identification
            6.1 The company has its own audit management standard for supplier , including information about the supplier's legal status and identity, and collection of relevant supporting documents. The company's due diligence program manager and the purchase team have reviewed the information provided by its supplier together,in order to confirm all of our suppliers are qualified.As long as inconsistencies, errors or incomplete information is found , the company will ask them to explain and improve. During the period of this report, no warning signal related was found. Based on the information provided by the supplier, the company conducts risk identification based on risk assessment management procedures£¬and carries out risk management based on the identification results.
            6.2 For each transaction, Taike Technology requires suppliers to provide legal set of traceability documents for the raw materials , including direct supplier names and addresses.

            7. Risk Assessment and Risk Reduction
            7.1 For regions and suppliers identified as high-risk by Taike Technology after evaluation, the company will not cooperate with the supplier considering the current auditing capabilities of our company.
            7.2  At present, Taike Technology only purchase the raw material from China domestic suppliers who is passed through the RMI certification,and also only co-operate with the company who is passed through the RMI certification, to do the processing business.
                                  
            Taike Technology(Suzhou)Co.,Ltd.
            August 31,2021


             



             
            Taike Technology£¨Suzhou£©Co.,Ltd
            Tel. +86-512-65760786 Fax.+86-512-65769909 E-mail: taike@taike-sz.com
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