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Supplier Management Policy

In order to ensure supply chain stability and sustainable development, Sinopower Corporation has established the following policies: "Outsourcing Evaluation Guidelines," "Outsourcing Performance Review Measures," "Outsourced Raw Material Selection Specifications," and "Regulations on Human Rights, Labor Protection, Anti-Corruption, and Business Ethics." These emphasize social responsibility, environmental protection, and ethical compliance. The policy specifically includes the following aspects:
1.New Supplier Selection and Evaluation:
New suppliers must pass the selection and evaluation procedures conducted by a review committee. This process covers compliance in areas such as quality management, environmental standards, labor protection, and occupational safety and health management. Priority is given to suppliers certified with ISO 9001 and ISO 14001. Upon completion of the evaluation, approved suppliers are registered on the Approved Vendor List (AVL).
A supplier grading system is implemented to classify suppliers based on their performance, with a focus on encouraging and supporting those who excel in sustainability performance.


2. Annual Evaluation of Approved Suppliers
Sinopower Corporation conducts either on-site or document-based assessments of approved suppliers every year. Suppliers who fail the annual evaluation must implement corrective actions within a specified timeframe and reapply for re-evaluation. If the supplier fails the re-evaluation again, their approved status will be revoked.
The evaluation process includes criteria such as:
Quality management
Design/manufacturing process control
Documentation and records
Equipment maintenance and calibration
Warehouse management
It also covers green product management and Environmental, Social, and Governance (ESG) aspects.
In 2024, a total of 13 suppliers underwent annual assessments, and all successfully passed.


3. Supplier Performance Review
The supplier performance evaluation team consists of representatives from the Quality Assurance Department, Production Management Department, and related engineering departments. The evaluation criteria include:
Quality
Delivery performance
Pricing
Engineering collaboration
Evaluations are conducted for approved suppliers, and the results are compiled every six months. The outcomes are communicated to the suppliers and shared with the Production Management Department as a reference for future order placements.


4. Human Rights and Labor Protection
All suppliers must comply with fundamental labor rights, ensuring that no child labor, forced labor, or discriminatory practices exist in their operations. They are also required to provide a safe and healthy working environment.
Suppliers must regularly submit reports to the company on the implementation of human rights protections and are subject to periodic audits and supervision
.

5. Anti-Corruption and Business Ethics
Suppliers must adhere to the principles of ethical and honest business conduct, and any form of bribery or corruption is strictly prohibited.
All suppliers are required to sign an anti-corruption agreement and commit to maintaining integrity and transparency throughout their cooperation with the company.



 

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