Anti-corruption and ethical corporate management practices with business partners

The Company complies with the Civil Code of the People's Republic of China,the Company Act,  the Act to Implement United Nations convention against corruption, and other regulations regarding the ethical management of companies. Furthermore, we have established a code of conduct for Suppliers and a Whistle-blowing System to conduct pre-trade due diligence with upstream and downstream companies and request them to issue integrity commitments according with their actual situations to minimize risks as much as possible. The Company also provides an internal legal supervisor hotline to receive and submit information regarding conflicts of interest.

Integrity Audit System

The Company has established accounting and internal control systems to ensure honest operations. The internal audit supervisor conducts relevant risk assessments based on possible dishonest business practices, includes these items in the annual audit plan for review, and reports the following audit results to the Audit Committee and the Board of Directors:

• A spot check of the accounting books found no external accounts or secret accounts.

• No directors, managers or employees have been found to have committed the following illegal acts:

  1.Offer or accept improper benefits.

  2.Providing illegal political contributions.

  3.Improper charitable donations or sponsorships.

  4.Conflict of interest with the position occurs.

  5.Violate confidentiality requirements for confidential and commercially sensitive information obtained in business.

  6.Transactions with suppliers, customers and business dealings involving dishonest conduct.

• The company attaches great importance to integrity in its transactions with the original agent, other suppliers and customers other than the original agent. After random inspection of the relevant signed integrity commitment letters and supplier code of conduct and review of the current situation, no illegal violations of the commitment were found.

• So far, no accountant has been entrusted to verify the situation.

• As of the end of December 2023, the Company had no corruption incidents.

Optimal Whistleblowing Mechanism

The Company has established internal and external whistleblower reporting hotlines so that relevant personnel can report to the Company's designated internal auditors and legal personnel to investigate any ethical violations.

Internal whistleblowing mechanism:

• The Company has an internal audit office and a legal unit with a reporting line and e-mail to establish a whistleblower reporting channel. Employees and related personnel can report improper business practices. After a confidential investigation, anyone who violates operational integrity rules will be punished according to the Company's personnel regulations related to incentives and penalties. Legal action will also be taken in the event of illegal conduct.

• The Company has established standard operating procedures (SOPs) authorized by the Chairman's Office and implemented by the internal audit office and the legal unit. These SOPs can be used for any confidential investigation of such cases.

• The Company takes whistleblower protection seriously because its core purpose is to protect diligent employees trying to identify potential wrongdoing from unlawful retaliation. The Company has a whistleblower protection hotline. If necessary, both senior management and the Board of Directors can directly review and determine the appropriate action to respond to the retaliation.

External whistleblowing mechanism:

We provide a whistleblowing hotline on the Company's official website:

• Whistleblower email: whistleblower@weikeng.com.cn

(This email will automatically forward the letter to the Head of the Legal Office.)

• Whistleblower hotline: (+86-021)33538989-273, for Miss. Yan, Shanghai Office;  (+86-755)82943322-274 for Miss. Chen, Shenzhen Office.