April 4(th), 2022

To our stakeholders:

I am pleased to confirm that Guangxi Haidu Investment Development Co., Ltd reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Kai Huang
Chairman

We firmly support the human rights principles of the United Nations Global Compact, the Universal Declaration of Human Rights and other relevant guidelines.
We follow the principle of "all people are born equal, all people have equal opportunities, all people are fair and just"; We support "everyone has the right to work, freely choose an occupation, enjoy just and suitable working conditions and enjoy protection from unemployment" and "everyone has the right to equal pay for equal work without any discrimination". Do not discriminate against employees because of their age, race, sex, sexual orientation, marital status, religious belief, national origin or physical disability. The company guarantees to provide employees with a fair working environment and employment security. Without any discrimination, all employees have the right to equal pay for equal work. All applicants in the company must pass a series of tests to ensure the objectivity, fairness and equality of the company's recruitment process. The company promises to respect and protect the human rights of all people without reservation. The company publicly promises and guarantees to the whole world that it will never employ child labor under any circumstances.

We put the institutional guarantee of implementing the above commitments into the document "Outline of Strategic Project Construction of Enterprise Culture Construction".
In terms of employee treatment and employee rights and interests protection, we are implementing a management system consisting of the company's Human Resources Management Manual, Measures for the Management of Employee Medical Insurance, Measures for the Implementation of Post Grade Wages and other systems, and we have confirmed and guaranteed the issues related to the payment of labor treatment (including working hours, vacation, overtime, paid leave, subsidies for hot work, wages, etc.) from the system.
In terms of labor protection and safety, we have formulated the Regulations on Labor Protection and the Administrative Measures for the Purchase, Collection and Use of Labor Protection Articles. Every summer and winter, labor protection articles such as overalls and gloves are distributed to all employees.

As of 2021, the company has no human rights, health, safety and environmental protection incidents or complaints.

We firmly support the human rights principles of the United Nations Global Compact, the Universal Declaration of Human Rights and other relevant guidelines.
We follow the principle of "all people are born equal, all people have equal opportunities, all people are fair and just"; We support "everyone has the right to work, freely choose an occupation, enjoy just and suitable working conditions and enjoy protection from unemployment" and "everyone has the right to equal pay for equal work without any discrimination". Do not discriminate against employees because of their age, race, sex, sexual orientation, marital status, religious belief, national origin or physical disability. The company guarantees to provide employees with a fair working environment and employment security. Without any discrimination, all employees have the right to equal pay for equal work. All applicants in the company must pass a series of tests to ensure the objectivity, fairness and equality of the company's recruitment process. The company promises to respect and protect the human rights of all people without reservation. The company publicly promises and guarantees to the whole world that it will never employ child labor under any circumstances.

We put the institutional guarantee of implementing the above commitments into the document "Outline of Strategic Project Construction of Enterprise Culture Construction".
In terms of employee treatment and employee rights and interests protection, we are implementing a management system consisting of the company's Human Resources Management Manual, Measures for the Management of Employee Medical Insurance, Measures for the Implementation of Post Grade Wages and other systems, and we have confirmed and guaranteed the issues related to the payment of labor treatment (including working hours, vacation, overtime, paid leave, subsidies for hot work, wages, etc.) from the system.
In terms of labor protection and safety, we have formulated the Regulations on Labor Protection and the Administrative Measures for the Purchase, Collection and Use of Labor Protection Articles. Every summer and winter, labor protection articles such as overalls and gloves are distributed to all employees.

Abolition and forced labor is a basic human right, one of the provisions of the Universal Declaration of Human Rights, and the core conventions of ILO Nos. 29 and 105. Our company supports and abides by ILO Convention No.29-Forced Labor Convention, and regulates enterprise behavior in accordance with relevant national and international laws and regulations. In accordance with the principle of voluntariness, employees sign labor contracts with enterprises. Employees of the company are allowed to choose their jobs freely. When employees resign, the company will not restrict their choice of new jobs for any reason or means, nor will the company restrict their personal freedom in any way. It is absolutely not allowed to carry out forced labor by seizing documents and money, paying debts, monitoring and threatening.
As of 2021, the company has not had any complaints, petitions, letters and visits about forced and forced labor.

Our company regards environmental friendliness and resource conservation as the important contents of the company's sustainable development strategy, pays attention to fulfilling the company's responsibility of environmental protection, effectively realizes environmental protection and sustainable development through various measures, implements the company's environmental protection policy, and improves the environmental awareness of all employees.

Establish, implement, maintain and improve the overall environmental protection policy according to the company's specific conditions. The company has provided sufficient manpower, material resources, technical and financial support for environmental protection and sustainable development.
The company has established the Environmental Operation Control Procedure, Cost Management Control Procedure, Water and Electricity Management Regulations, Management Regulations for Saving Paper, Water and Electricity in Offices, Workshops and Staff Dormitories, and Management Regulations for Green Office and Green Procurement, and defined the responsibilities of each department. And the management representative and department head shall inspect the implementation of specific policies on environmental protection and energy conservation, establish and implement the resource saving index system and the assessment reward and punishment methods, and correct the behaviors that do not conform to the policies and take corresponding measures.

The company actively trains its employees to establish the awareness and behavior of saving and recycling resources, cherishing the environment and caring for the earth, and develop the good habit of turning off the lights and saving water and electricity anytime and anywhere. The company promotes waste recycling, including newspapers, paper double-sided use, old office appliances, electronic equipment, etc. The company places "classified waste recycling bins" with different colors in obvious positions in all office areas and production workshops to classify and recycle waste paper, peels, used batteries and other wastes.
Through the efforts of all staff, the company has achieved fruitful results in environmental beautification, environmental protection, environmental management and cleaner production, and has been recognized by the local government.

We oppose all forms of corruption, including extortion and bribery; Corruption is defined as "abusing public power to seek private interests", and its manifestations are diverse, ranging in degree from slight influence to institutional corruption. Corruption can pose a danger to a company's reputation and increase exposure to legal, financial and other risks. The OECD defines "extortion" as: asking or inducing others to pay bribes is asking for bribes. When this requirement is accompanied by a threat to the personal integrity or life of the relevant individual actors, it constitutes extortion. Bribery is defined as "offering anyone any gift, loan, expense, gratuity or other benefits from anyone to induce others to engage in dishonest, illegal or breach of trust in business operations".

According to the specific situation of the company, establish and implement several measures: introduce and implement effective zero tolerance policies and programs, and adopt the company's ethical standards; Train employees to ensure that moral culture has been formed within the company and integrated into the management system。

Be accountable and transparent for all transactions of the company; Join hands with peer enterprises to launch collective business actions to create an equal competitive environment; Code of business ethics, including requiring employees to regularly review and sign the code.