Conflict Mineral Purchasing Policy

EICC pointed out that some of the metal mineral has become the Democratic Republic of Congo armed rebel groups in Africa, the main source of funds for the exchange of arms, the continuation of its bloody conflict with the government, ravaged the local civilians, thus triggering international disputes. As a citizen of the world, Andaxing hereby makes a declaration and promises not to accept the use of metal from the conflict mining areas. And we also make a requirement for the suppliers of Andaxing as below:

(1) Must fulfill the social environmental responsibility;

(2) To ensure that the products do not use the “conflict minerals” from the countries and regions around the country;

(3) To trace all sources of gold (Au), tantalum (Ta), tin (Sn) and tungsten (W)

(4) To communicate this requirement to its upstream suppliers.

Conflict Metals: Refers to minerals from conflict zones in the Democratic Republic of the Congo in the form of niobium tantalite, cassiterite, wolframite and gold. These minerals are refined into tantalum (Ta), tin (Sn), tungsten (W), cobalt (Co) and gold (Au), respectively, for electronics and other products.

In the near future, the use of metals from certain smelters will be banned, so all key suppliers must trace the source of the metal used in their parts and the smelter.

In addition, metals exported by the following countries do not meet the “conflict-free norms”: the Democratic Republic of the Congo (DRC), Rwanda, Uganda, Burundi, Tanzania, (Kenya) (the United Nations Security Council finds that these countries are the mineral veins of the Congo).

Xiamen Andaxing Electric Group Co., Ltd. is hereby to develop a “conflict mineral policy”, and makes the following commitments:

1. Do not purchase conflict minerals from conflict areas.
2. To require suppliers to refuse the use of conflict minerals from conflict areas, and to sign the commitment to the conflict-free mineral resources to Xiamen Andaxing Electric Group Co., Ltd..
3. The requirements of the company’s suppliers, the need to manage their upstream and downstream suppliers, must comply with the requirements of non-conflict minerals.
4. To the extent that the Company can, to prohibit the purchase of Congolese and its surrounding countries may conflict minerals.