SINO Corporate Code of Conduct

Qingdao SINO Textile is committed to responsible business behavior that respects people, society and the environment. This COC describes Qingdao SINO Textile 's requirements for social responsibility and environmental management activities, and applies to all Qingdao SINO Textile 's suppliers. We encourage our suppliers to do better than the requirements of these guidelines. In this context, "suppliers" means suppliers and contractors who provide products and services to Qingdao SINO Textile. We reserve the right to immediately terminate the business with any supplier who is in serious breach of the Code of Conduct or who is unwilling to make the necessary improvements.

We expect our suppliers and partners to comply with our SINO Code of Conduct, which covers basic requirements regarding human rights, labor rights and the environment, in a targeted and systematic manner. Our suppliers are expected to:

1. Comply with our SINO Corporate Code of Conduct

2. Conduct due diligence and perform responsible business practices. This includes carrying out risk assessments to identify potential negative impacts on people, society and the environment and to deter, prevent and minimize such impacts. Measures taken must be monitored and their effectiveness evaluated. Those affected by your actions must be informed of the measures taken. If the supplier is responsible for the negative impact/damage, it is their responsibility to take remedial measures.

3. Suppliers shall be able to document how it and its potential subcontractors comply with these guidelines in accordance with the requirements of SINO Textiles.

4. Suppliers shall have a complaint management system in place related to human rights, labor rights, environment, etc.

I Legal Compliance

1. Suppliers shall comply with national and local laws and regulations and applicable requirements.

2. Suppliers shall influence their supply chain and fulfill their social responsibility.

3. Suppliers shall maintain records of compliance with laws and regulations.

II Child labor

1. Suppliers shall not employ persons under the age of 16.

2. When employing employees who have reached the age of 16 and are under the age of 18, suppliers shall ensure that their working environment and working hours comply with national or local laws. Employees under the age of 18 shall not be required to perform labor that is harmful to their health, safety or morals.

3. Supplier shall file birth year of each employee , or verify age of each employee in a legal way.

4. Suppliers shall comply with laws and regulations regarding minimum working age. It is prohibited to hire employees of any age from including apprentices or technical school students, violation of local regulations regarding the minimum working age and the mandatory age of education.

III Remuneration

Suppliers shall pay wages fairly in accordance with the requirements of applicable law.

1. Suppliers shall ensure that all wages paid for hours worked meet at least the minimum legal wage or the relatively high local industry pay minimums.

2. Suppliers shall pay overtime and bonuses as required by law.

3. Suppliers shall communicate in writing to all employees the wages, incentives, benefits and bonuses they are entitled to under applicable law and at the workplace.

IV Fair Treatment

1. Supplier shall not engage in physically, sexually, psychologically, verbally, or otherwise abusive behavior.

2. All employees shall be treated with respect and dignity. There shall be no discrimination in hiring, pay, training, promotion, termination or retirement on the basis of religion, age, disability, gender, marital status, sexual orientation, or other grounds.

3. Suppliers shall comply with all applicable laws regarding fair treatment.

V Freedom of association, right to complain

Suppliers shall respect the right of employees to set up and join labor unions and have the right to bargain collectively in a peaceful and lawful manner under applicable laws.

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

2. Suppliers shall not interfere with or obstruct unionization or collective bargaining. They shall not harass, intimidate or retaliate against employees in the context of free association or collective bargaining.

3. Suppliers shall maintain the confidentiality of employee grievances.

VI Environment, Health and Safety

Suppliers shall comply with applicable national or local environmental, health and safety laws and regulations and continuously strive to improve environmental health and safety performance.

1. Suppliers shall provide a safe and hygienic working environment and shall manage hazardous chemicals and other substances carefully, taking into account general common sense and special hazards in specific industries. Hazardous materials and wastes shall be disposed of and stored appropriately, and disposed of safely and legally

2. Appropriate measures shall be taken to minimize the various hazardous factors inherent in the work environment and to prevent the occurrence of various accidents and incidents of damage to health arising out of, in connection with or in the course of work.

3. If employee accommodation is provided by the company, it should ensure safe and healthy living space, including safety, cleanliness, proper lighting and temperature, ventilation, and the availability of safe and clean restroom facilities. The workplace needs to be provided with hygienic drinking water and clean restroom facilities.

4. Suppliers shall provide employees with systematic training that can help them maintain health and prevent accidents and injuries on a regular basis, and make relevant records.

VII Working hours

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

1.Suppliers shall provide all employees with relevant documentation regarding pay, working hours (including overtime), wage rates, benefits, etc.

2.Employees shall be provided with at least one day off every 7 days.

3.Overtime activities must be voluntary for employees, and the overtime pay must not be lower than the minimum limit of relevant laws and regulations.

VIII Free choice of employment

Suppliers shall hire employees on a voluntary basis, shall not use prison labor, and shall not physically harm employees or perform any other kind of forced labor.

1.Suppliers shall not require employees to pledge identity documents or other personal legal documents at the beginning of employment.

2.Suppliers shall not use any forced labor, and forced overtime is prohibited.

3. Suppliers shall not detain employees or restrict their freedom of movement.

4. Suppliers shall sign labor contracts with all employees separately, explaining the respective obligations and rights of both parties in a language that the employees can understand.

IX Environmental Protection

1. Suppliers shall minimize negative environmental impacts throughout the supply chain. In accordance with the precautionary principle, measures shall be taken to minimize GHG emissions and localized pollution on a sustainable basis, to reduce the use of harmful chemicals and pesticides, and to ensure the sustainable exploitation and management of water, marine, forest and land resources as well as the conservation of biodiversity.

2. National and international environmental laws and regulations should be respected and relevant emission permits obtained.

X Other responsibilities

1.Suppliers shall not outsource Qingdao Sino Textile’s orders without the consent of Qingdao SINO Textile, and after the consent of Qingdao SINO Textile for outsourcing, the outsourced party shall also comply with the Guidelines.

2. Supplier shall respect and protect the intellectual property rights of Qingdao SINO Textile and shall not disclose them without authorization.

3. Suppliers are obliged to communicate the contents of this guideline to their employees.