I. Purpose

Joincare Pharmaceutical Industry Group Co., Ltd. and its subsidiaries (“Joincare” or the “Company”) expect all suppliers to conduct their business in an ethical business manner and to comply with all applicable laws, regulations as well as internationally recognized environmental, social, and corporate governance standards. We also expect our suppliers to do their best efforts to convey this philosophy to their upstream and downstream enterprises in the supply chain, so as to promote the sustainable development of the industry.

We expect that your company, as a supplier of the Group, to support, accept, and comply with the requirements of the Code of Conduct for Suppliers of Joincare Pharmaceutical Industry Group Co., Ltd. (the “Code”). The Code sets forth the main principles that your company, as a supplier of the Group, shall follow in its business activities.

II. Scope of application

The Code applies to all entities and their subsidiaries (“Suppliers”) that provide goods or services to the Company. In addition, Suppliers shall ensure that their suppliers properly comply with the Code. Suppliers shall also ensure that the Company has the right to audit its suppliers for compliance with the Code and shall actively cooperate with the audit by the Company. The term “employees” in the Code refers specifically to the employees of Suppliers.

III. Business operation Compliance with Laws

Suppliers must comply with all applicable laws and regulations in the conduct of their business, including matters relating to product/service quality/safety, business ethics, labor practices, environmental standards anti-corruption measures, data protection, and intellectual property rights.

IV. Labor rights and human rights

1. No child labor

1.1 Suppliers shall not employ persons aged under 16 unless it’s permitted by national or local law and complied with the principles of the International Labor Organization. Suppliers shall ensure that the working environment and working hours comply with national or local laws when employing employees who are over 16 years old but under 18 years old.

1.2 Suppliers shall comply with laws and regulations regarding the minimum working age.

1.3 Employment of employees of any age (including apprentices or vocational school students) that violates local regulations regarding the minimum working age and the mandatory age of education, is prohibited.

2. Employee employment terms

2.1 The employment terms of Suppliers, including hiring, training, working conditions, compensation, benefits, promotion, discipline, contract termination, or retirement, shall be based on the qualifications, performance, skills, and experience of an employee.

2.2 Suppliers shall pay wages and provide benefits to all employees in an equitable and fair-minded manner in accordance with the requirements of applicable law.

2.3 Suppliers shall ensure that all payments of hours, wages, and salaries meet at least the minimum legal wage level or the higher local industry minimum standard of compensation.

2.4 Suppliers shall pay overtime and bonuses as required by law and pay all legally required benefits without unlawful deductions.

3. Anti-discrimination and harassment

3.1 Discrimination and harassment, directly or indirectly, based on race, color, age, gender, sexual orientation, disability, pregnancy, language, religion, political beliefs, community membership, marital status, national or social origin, social status, property, descent or other circumstances, are prohibited, and equal opportunity and fair treatment must be ensured in employment and work. In addition, employees or prospective employees shall not be forced to subject themselves to discriminatory medical examinations.

4. Freedom of association

4.1 Suppliers shall respect the right of employees to form and join trade organization unions as well as to have collective bargaining rights in a peaceful and lawful manner under applicable laws.

4.2 Suppliers shall comply with all applicable laws regarding freedom of association and collective bargaining.

4.3 Suppliers shall not harass, intimidate, or retaliate against employees in connection with free association or collective bargaining.

4.4 Suppliers shall maintain confidentiality concerning employee complaints.

5. Reasonable working hours

5.1 Suppliers shall comply with all applicable laws relating to regular working hours, overtime hours, and benefits during working hours.

5.2 Suppliers shall provide all employees with documentation regarding pay, working hours (including overtime), wage rates, benefits, and any deductions.

5.3 Suppliers shall provide statutory rest days, public holidays, and paid vacations.

5.4 Under normal circumstances, employees shall have at least one rest day in each of seven days, and overtime work shall not exceed the requirements of national or local laws.

6. Voluntary employment

6.1 Suppliers shall not use forced or compulsory labor, including but not limited to bonded labor. Suppliers shall ensure that the relationship between the employee and the employer is free of choice and free from coercion.

6.2 Suppliers shall allow their employees to quit their jobs freely after giving a reasonable period of notice. Employees shall be exempt from payment of deposits, identification documents, or similar documents to secure or retain employment.

V. Health and safety

1. Suppliers shall have a sound health and safety protection system with clear and specific preventive measures to maintain the health and safety of employees.
2. Suppliers shall provide employees with a safe and healthy working environment.
3. Suppliers shall properly manage the operation of hazardous materials and equipment.
4. Suppliers shall provide systems and training that can help prevent accidents and injuries.
5. Suppliers shall take appropriate measures to save resources and energy and avoid waste.
6. Suppliers shall handle and store appropriately hazardous materials and wastes and dispose of them in a safe and legal manner.
7. Suppliers shall provide employees with labor protection equipment that meets national or industry standards, and provide regular education and training for employees on production safety.

VI. Business Ethics

1. Suppliers are required to behave with utmost integrity, honesty, and transparency, and to comply with all applicable anti-bribery, anti-corruption, and anti-unfair competition related laws and regulations.
2. All acts of corruption, extortion, and misappropriation of public funds are strictly prohibited. Under no circumstances shall Suppliers receive, directly or indirectly through third parties, any bribes, kickbacks, or other illegal payments. Suppliers must comply with all applicable anti-corruption laws and rules.
3. Suppliers shall not conceal from the Company any situation that may constitute a conflict of interest, including, but not limited to, the fact that an employee of the Company has a position in any of the Supplier's businesses and/or may have any economic interest.

VII. Environmental protection and green development

1. Suppliers shall acknowledge the concept of green and low-carbon development by actively conducting green design, innovating green manufacturing processes, selecting green materials, implementing green packaging, practicing green transportation to realize green environmental protection in the complete business cycle, so as to minimize the waste, exhaust gas and wastewater emissions, improve the efficiency of utilization of energy and resources, and reduce the damage to the ecological environment due to the work and production.
2. If any damage or hindrance to the environment or public interest is unavoidable for special reasons, operations shall be allowed only upon obtaining the necessary administrative approvals or permits.
3. Suppliers shall to create a green office environment and promote green upgrading of industrial infrastructure.
4. Suppliers shall comply with laws and regulations related to biodiversity protection, continuously reduce the adverse impacts of their business activities on biodiversity, and avoid operations in protected areas or areas with significant biodiversity.

VIII. Other responsibilities

1. Suppliers shall respect and protect the intellectual property rights of Joincare Pharmaceutical Industry Group Co., Ltd. and its subsidiaries, and shall not disclose them without permission.
2. Suppliers are obliged to communicate the contents of the Code to their employees.

IX. Others

1. Matters not covered herein shall be executed in accordance with relevant national and local laws and regulations.

2. We reserve the right to amend, modify, or abrogate the Code at any time and for any reason. We will regularly review and amend the Code when necessary. The latest version of the Code is disclosed on the Company’s website (https://www.joincare.com) and we will notify suppliers of any updates to the Code promptly.

Joincare Pharmaceutical Group Industry Co., Ltd.

25 October 2023