This policy implements the LAP's goal of establishing responsible supply chains for sourcing minerals.

Reflecting the values embodied in the LAP Code of Conduct, Zhejiang LAP Industry Co.,Ltd.  affirms the purpose of sustainable and responsible sourcing minerals that originate in conflict-affected and high-risk areas, which is to mitigate the contribution of conflict, serious human rights abuses or environmental threats.

Zhejiang LAP Industry Co.,Ltd. hereby adopts this policy for responsible supply chain operation.

Zhejiang LAP Industry Co.,Ltd. recognizes that due diligence for responsible supply chains of minerals from conflict-affected and high risk areas is an ongoing process. Accordingly, Zhejiang LAP Industry Co.,Ltd. will use its commercially reasonable best efforts to ensure only sustainable and responsible minerals are used in its supply chain.

To achieve this end, Zhejiang LAP Industry Co.,Ltd. shall institute a due diligence sourcing mineral program.Zhejiang LAP Industry Co.,Ltd. expects that its suppliers source all inputs, including minerals, responsibly.

Zhejiang LAP Industry Co.,Ltd. will communicate to its suppliers LAP's requirements to conduct reasonable due diligence of their own supply chains of minerals from conflict-affected and high-risk areas. Zhejiang LAP Industry Co.,Ltd. will incorporate its supply chain policy and due diligence processes into commercial contracts, written agreements and supplier evaluations with its suppliers which can be applied and monitored, including, if deemed necessary, the right to conduct unannounced spot-checks on suppliers and have access to their documentation.

Zhejiang LAP Industry Co.,Ltd. will work in tandem with its suppliers to implement reasonable controls within the supply chain to trace the origin of minerals from conflict-affected and high risk areas in order that contribution of conflict, serious human rights abuses or environmental threats minerals are not included within the products or materials they sell to Zhejiang LAP Industry Co.,Ltd. Furthermore, in the event that Zhejiang LAP Industry Co.,Ltd. discovers suppliers are not in compliance with its supply chain policy and due diligence processes, its first step is to work with them to bring them into compliance through corrective action plans. Zhejiang LAP Industry Co.,Ltd. will not work with those who do not work to meet its standards.

Reaching full traceability of minerals requires time and effort across industries and collaboration from all sectors in the supply chain. This is due, in a large part, to the complexity in the way that metals are produced and sold and the fact that ores from many different sources can be combined, thus multiplying the diligence necessary to trace the products. All of this is complicated by the geopolitical forces at work in the region. These factors make industry-wide cooperation of the utmost importance in achieving socially responsible sourcing. Zhejiang LAP Industry Co.,Ltd. strongly encourages its suppliers to comply with available international frameworks governing responsible sourcing minerals matters.

Zhejiang LAP Industry Co.,Ltd. is committed to the objectives of implementing responsible supply chains for minerals from conflict-affected and high-risk areas. As such, Zhejiang LAP Industry Co.,Ltd. is working diligently to put the systems and processes into place that will enable us to ensure that Zhejiang LAP Industry Co.,Ltd. is supporting responsible suppliers.

Established on April 1, 2022