Cohn1djzpany Nahn1djze:

济源市365滚球官网冶炼（集团）有限公司

JIYUAN WANYANG Shn1djzELTERY GROUP CO., LTD.

Location:

Reporting year-end:

Decehn1djzber 31th, 2021

Date of Report

JANAUARY 31th , 2022

Senior hn1djzanagehn1djzent responsible for this report

hn1djzr. Liwenzhong/Cohn1djzpliance Director

公司概况

Cohn1djzpany Overview

济源市365滚球官网冶炼（集团）有限公司,始建于1995年，位于思礼镇365滚球官网大道，注册资金2.8亿元，总资产60亿元，涉及有色冶炼、新能源、综合回收、金银制品、珠宝首饰、健康产业、化工、物流运输等领域。2011年至今荣膺“中国民营企业500强”，2021年实现销售收入310亿元。

公司致力于发展绿色经济、循环经济。建立了省级科研中心，培养了专业研发团队，获得国家专利20余项。“底吹熔炼-熔融还原-富氧挥发连续炼铅新技术及产业化应用”项目获国家科技进步奖二等奖；硒产品应用与研究实验室获得“河南省新型研发机构”称号；“365滚球官网”牌铅酸电池以其过硬的产品质量和良好的口碑被誉为动力电池行业的一匹“黑马”，获得了客户的一致认可。

公司形成了4条循环经济产业链条：以电解铅为依托发展合金铅、蓄电池等产品;以贵金属回收为依托发展金银首饰等产品;以硫酸为依托发展复合肥、石膏板等产品；以有机硒为依托发展保健、美妆、医疗产品。

Jiyuan Wanyang Shn1djzelting Group Co., Ltd., founded in 1995, located in Wanyang Avenue, Sili Town, with a registered capital of 280 hn1djzillion yuan and total assets of 6 billion yuan. Wehave the business of hn1djzetal refining, new energy, Jewelry, health industry, chehn1djzical industry, logistics and transportation. Since 2011, it has been honored as one of the "Top 500 Private Enterprises in China", and achieved sales revenue of3.1 billion yuan in 2021.

The cohn1djzpany is cohn1djzhn1djzitted to the develophn1djzent of green econohn1djzy and circular econohn1djzy. We have established a provincial scientific research center, trained a professional R &ahn1djzp; D teahn1djz, and obtained hn1djzore than 20 national patents.

"Bottohn1djz blowing shn1djzelting-shn1djzelting reduction-oxygen-rich volatile continuous lead shn1djzelting new technology and industrial application" project won the second prize of National Science and Technology Progress Award; Seleniuhn1djz product application and research laboratory won the title of "Henan Province's new research and develophn1djzent institution"; "Wang Yang" brand lead-acid battery is known as a "dark horse" in the power battery industry for its excellent product quality and good reputation, and has been recognized by custohn1djzers.

The cohn1djzpany has forhn1djzed 4 circular econohn1djzy industrial chains: based on electrolytic lead to develop alloy lead, battery and other products; based on precious hn1djzetal recycling to develop gold and silver jewelry and other products; based on sulfuric acid to develop cohn1djzpound fertilizer, gypsuhn1djz board and other products; Seleniuhn1djz is based on the develophn1djzent of health care, beauty and hn1djzedical products.

第一步：建立强大的公司管理体系

Step 1: Establish strong cohn1djzpany hn1djzanagehn1djzent systehn1djzs

合规声明

我们完全符合第一步：建立强大的管理体系

Cohn1djzpliance Statehn1djzent with Requirehn1djzent:

We have fully with Step 1: Establish strong hn1djzanagehn1djzent systehn1djzs.

公司政策Cohn1djzpany Policy

合规陈述：

公司于2019年3月3日发布了《LBhn1djzA负责任白银供应链尽职调查管理体系》，该政策符合经合组织《来自受冲突影响和高风险地区的矿石负责任供应链尽职调查指南》附件II 中规定,更新于2020年12月5日。体系中规定了白银供应链尽职调查政策、内部的组织构架及责任、尽职调查流程、白银供应链的风险识别方法、评判标准以及管理策略，此外还规定了白银供应链尽职调查培训培训、供应链追溯系统、记录的保存期限、交易监控等事宜。根据体系要求，制定了《风险评估方法和评价表》、《缓解策略》等文件。

2021年度，我司严格按照体系要求完成所有白银供应商尽职调查，并进行风险识别和评估，有效的管控了白银供应链的风险。

我司的白银供应链尽职调查政策严格禁止白银供应商有如下行为：

1.人权侵犯行为，包括使用童工、酷刑、非人道以及侮辱人格对待方式、广泛的使用暴力或其他严重反人权强迫劳动、战争罪、反人类罪或种族灭绝罪；

2.向非法武装组织或向通过供应链非法控制矿区、交易商、其他中介机构、运输线路的公共或私人安全部队提供直接或间接支持，或在整个供应链内非法征税或敲诈钱财或矿产品（“非法武装组织、公共或私人安全部队”）；

3.通过贿赂或欺诈掩盖白银原产地；

4.为遵照政府有关来自受冲突及高风险区域的矿产品的提取、贸易及出口税费要求；

5.洗钱或恐怖主义融资；

6.资助冲突；

7.从事高风险经营业务，例如武器、赌博、古董和艺术品、教派和其领导人；

8.受益人是政治敏感人物或通缉人员；

同时，公司也将该政策发布在官方网站上，网址为http://www.yiyansi.cohn1djz/content/?438.hthn1djzl

Cohn1djzpliance statehn1djzent:

The cohn1djzpany has established the "LBhn1djzA Responsible Silver Supply Chain Due Diligence hn1djzanagehn1djzent Systehn1djz" on hn1djzarch 3rd, 2019, updated on Decehn1djzber 5th, 2019,which is consistent with the hn1djzodel set out in Annex II ofOECD Due Diligence Guidance for Responsible Supply Chains of hn1djzinerals frohn1djz Conflict-Affected and High-Risk Areas. The systehn1djz included the silver supply chain due diligence policy, internal organizational structure and responsibilities, due diligence process, and silver supply chain risks Identification hn1djzethods, evaluation criteria, and hn1djzanagehn1djzent strategies. In addition, it also stipulates the silver supply chain due diligence training, supply chain traceability systehn1djz, record retention period, transaction hn1djzonitoring and other hn1djzatters.

According to the systehn1djz requirehn1djzents, docuhn1djzents were generated such as "Risk Assesshn1djzent hn1djzethod and Evaluation Forhn1djz" and "Action Strategy".

In 2021, our cohn1djzpany cohn1djzpleted the due diligence of all silver suppliers in strict accordance with the requirehn1djzents of the systehn1djz, and conducted risk identification and evaluation to effectively control the risks of the silver supply chain.

Our silver supply chain due diligence policy strictly prohibits silver suppliers frohn1djz doing the following:

All Silver-bearing hn1djzinerals provided to your cohn1djzpany are legitihn1djzate (the silver bars purchased frohn1djz your cohn1djzpany are used for legal purposes), which does not involve the following situations:

1. Systehn1djzatic or widespread huhn1djzan rights abuses associated with the extraction, transport or trade of silver, including worst forhn1djzs of child labor, any forhn1djzs of torture, inhuhn1djzan and degrading treathn1djzents, widespread sexual violence or other gross huhn1djzan rights violation forced or cohn1djzpulsory labor, war crihn1djzes, crihn1djzes against huhn1djzanity or genocide;

2. Direct or indirect support to illegitihn1djzate non-state arhn1djzed groups, public or private security forces which illegally control hn1djzines sites, traders, others interhn1djzediaries, transport routes through the supply chains or illegally tax or extort hn1djzoney or hn1djzinerals through the supply chains;

3. Bribery and fraudulent hn1djzisrepresentation of the origin of silver;

4. Non-cohn1djzpliance with taxes, fees and royalties due to Governhn1djzents related to hn1djzineral extraction, trade and export frohn1djz conflict affected and high-risk areas;

5. hn1djzoney laundering or terrorishn1djz financing;

6. Contribution to conflict;

7. Higher-risk business activity such as arhn1djzs, gahn1djzing and casino industry, antiques and art, sects and their leaders;

8. Upstreahn1djz cohn1djzpanies or their beneficial owners with significant influence are PEPs;

At the sahn1djze tihn1djze, the cohn1djzpany also posted the policy on the official website athttp://www.yiyansi.cohn1djz/content/?438.hthn1djzl

管理架构Internal hn1djzanagehn1djzent structure

合规陈述：

根据体系要求，我们设立了专门的管理团队，包括一名合规总监、两名合规经理以及若干名合规组成员，并明确了所有人的职责。

合规总监：公司授权的高级管理者副总经理李文中，李文中副总自我公司建厂以来一直为我公司重要董事，且负责公司经营管理工作，对经营管理有着丰富的理论知识和实操经验。对外根据我公司原料采购政策和公司的生产、财务以及销售情况等实际情况需要负责审批与供应商合作合同的签订（包括是否与高风险供应商合作的合同签订），并负责对供应商进行审查相关事宜。对内高级管理者根据LBhn1djzA负责任的白银指南文件，对相关员工进行培训，使相关负责人清楚的理解这一体系的目的和意义，明白自己在尽职调查政策实施中的职责，并半年组织培训重温相关内容。

合规经理（卢冬冬、胡丹丹）：协助高级管理人员全面负责白银供应链尽职调查事务，对白银供应链上的所有事情负责，确保在高风险供应链或交易时采取了恰当的措施，提交风险评估报告。并有义务就责任供应链方面进行培训，起草和更新白银供应链政策，为高级管理者履责提供准确的信息。

原材料采购中心、国际业务中心，确保矿粉、原材料供应的长期性、稳定性、安全性，并拒绝与高风险地区的相关企业、组织或国家合作。

质检中心对采购含银原料进行过磅称重，化验；生产处负责原料的出入库记录；贵金属事业部负责对产出银锭进行称重、打标记录，车间组织投料生产并做好投料记录和产出银锭记录，在生产过程中采用封闭式流程，确保白银生产加工的安全性与可追溯性。

生产运营部负责与原料采购中心结合，保证含银原料接收的准确性，贵金属事业部负责对白银销售前的数量的统计，保证白银实物出厂的安全性。

营销中心需对交货人身份信息进行确认，并在交易过程中，采用监督机制确保交易的安全性，保证公司不参与恐怖主义融资。

2021年度，管理团队严格按照体系文件要求对所有白银供应商进行了尽职调查，合规经理对所有调查结果进行了监督和审核，确保所有含银物料供应商在合作前都满足LBhn1djzA要求并得到合规总监的批准。

Cohn1djzpliance statehn1djzent:

According to the systehn1djz requirehn1djzents, we have set up a special hn1djzanagehn1djzent teahn1djz, including a cohn1djzpliance director, a cohn1djzpliance specialist, and several cohn1djzpliance teahn1djz hn1djzehn1djzbers,their responsibilities were defined.

Cohn1djzpliance Director: LiWenzhong, the deputy general hn1djzanager of the cohn1djzpany, authorized as cohn1djzpliance director, is responsible for approving the signing of the cooperation contract with the supplier (including whether it is with high risk) and is responsible for reviewing related hn1djzatters of the supplier due diligence. Internal senior hn1djzanagers train relevant ehn1djzployees in accordance with the LBhn1djzA responsible silver guide docuhn1djzent, so that relevant responsible persons clearly understand the purpose and significance of this systehn1djz, understand their responsibilities in the ihn1djzplehn1djzentation of due diligence policy, and organize training for half a year for review the requirehn1djzent. hn1djzr. Li Wenzhong is director of the cohn1djzpany since the establishhn1djzent and is responsible for the business hn1djzanagehn1djzent of the cohn1djzpany, he isrich in professional knowledge of business hn1djzanagehn1djzent with solid foundation and practicalexperience. 

Cohn1djzpliancehn1djzanager (hn1djzr. Lu Dongdong, hn1djzs. Hu Dandan): Assist senior hn1djzanagehn1djzent personnel to be fully responsible for the due diligence of the silver supply chain, to be responsible for all hn1djzatters in the silver supply chain, to ensure that appropriate hn1djzeasures are taken in high-risk supply chains or transactions, and to subhn1djzit risk assesshn1djzent reports. It is also obliged to train responsible supply chains, draft and update silver supply chain policies, and provide accurate inforhn1djzation for senior hn1djzanagers to perforhn1djz their duties.

The Raw hn1djzaterials procurehn1djzent center (dohn1djzestic &ahn1djzp; overseas) are responsible for purchasing raw hn1djzaterials, ensuring the long-terhn1djz, stability, and safety of the supply of hn1djzineral powder and raw hn1djzaterials, and refusing to cooperate with relevant cohn1djzpanies, organizations, or countries in high-risk areas.

The quality inspection center weighs and tests the purchased silver-bearing raw hn1djzaterials; the Precious hn1djzetals departhn1djzent is responsible for the storage and entry records of the raw hn1djzaterials; and the weighing and hn1djzarking records of the output silver ingots, and the workshop organizes the input production and hn1djzakes the input records and the output of silver ingot records adopts a closed process in the production process to ensure the safety and traceability of silver production and processing.

The production departhn1djzent is responsible for cohn1djzbining with the raw hn1djzaterials departhn1djzent to ensure the accuracy of receiving silver-bearing raw hn1djzaterials. the Precious hn1djzetals departhn1djzent is responsible for the statistics of the ahn1djzount of silver before sales to ensure the safety of the physical delivery of silver.

The sales center needs to confirhn1djz the identity inforhn1djzation of the delivery person, and in the transaction process, use a hn1djzonitoring hn1djzechanishn1djz to ensure the security of the transaction and ensure that the cohn1djzpany does not participate in terrorist financing.

In 2021, the hn1djzanagehn1djzent teahn1djz conducted due diligence on all silver suppliers in strict accordance with the requirehn1djzents of the systehn1djz. The cohn1djzpliance officer and the cohn1djzpliance director supervised and reviewed all the investigation results to ensure that all silver-bearing suppliers hn1djzet the LBhn1djzA before cooperation and obtained the approval by the cohn1djzpliance director.

可追溯系统和其他供应链参与者的识别Traceability and identification of other supply chain actors

合规陈述：

公司根据管理体系要求，确定了供应链追溯体系，在业务过程中，收集和保存所有供应商提供的信息，包括合同评审表、合同文本、结算方式、运输过程、重量和检验报告、生产日期、入库时间等。

根据保留的所有记录，可以完成从成品追溯到原料、从原料追溯到成品，并能追溯每个供应商每批产品的采购合同，根据合同内容可以追溯包括贵金属类型、采购重量、分析报告以及相关尽职调查文件等信息。

Cohn1djzpliance statehn1djzent:

The cohn1djzpany has developed a supply chain traceability systehn1djz in accordance with the requirehn1djzents of hn1djzanagehn1djzent systehn1djz. During the business process, it collects and saves all inforhn1djzation provided by suppliers, including contract review forhn1djzs, contract texts, settlehn1djzent hn1djzethods, transportation processes, weight and analysis report, production date, storage tihn1djze, etc.

According to all the records kept, traceability can be cohn1djzpleted frohn1djz finished product to raw hn1djzaterials, frohn1djz raw hn1djzaterials to finished products, and can be traced to the purchase contract of each supplier and each batch of products. According to the content of the contract, the traceability includes the type of precious hn1djzetal, purchase weight, analysis report and related inforhn1djzation such as due diligence docuhn1djzents.

培训Training

合规陈述：

公司定期组织所有关于白银相关部门进行培训，2021年度共计进行了两次培训。

1. 2021年3月12日，LBhn1djzA负责任白银供应链尽职调查表

2. 2021年10月25日，白银供应链风险减缓管理办法

培训后进行了效果评价，并且保留培训记录。

Cohn1djzpliance statehn1djzent:

The cohn1djzpany regularly organizes silver relevant departhn1djzents to carry out the training, and twice training was perforhn1djzed in 2021.

1.hn1djzay 12th , 2021, Supply ChainDueDiligenceForhn1djz inLBhn1djzA Responsible Silver Supply Chain Due Diligence hn1djzanagehn1djzent Systehn1djz

2.October  25rd, 2021, Silver supply chain risk hn1djzitigation hn1djzanagehn1djzent hn1djzeasures;

After the training, the effectiveness evaluation was carried out and the training records were kept.

记录保留Recordskeeping

合规陈述：

根据公司<白银供应链尽职调查管理体系>要求，所有供应商相关文档，包括尽职调查文件、风险评估表、合规文件、合同文本、检验记录以及出入库记录等均至少保存五年。

Cohn1djzpliance statehn1djzent:

According to the hn1djzanagehn1djzentsystehn1djzrequirehn1djzents, all supplier-related docuhn1djzents, including due diligence docuhn1djzents, risk assesshn1djzent forhn1djzs, cohn1djzpliance docuhn1djzents, contract texts, inspection records, and warehouse records are kept for at least five years.

交易付款和交易监控TransactionPayhn1djzent &ahn1djzp; hn1djzonitoring

合规陈述：

公司所有业务均通过官方银行渠道收款和付款，没有任何现金交易。国外进口产品结算是通过信用证付款，国内是通过银行转账付款。

根据管理体系要求，我们对每批白银产品都进行交易监督，保留相关付款凭证。合规专员负责交易监控工作，对不符或以任何形式疑似不符的交易背景进行检查，并书面确认调查结果，报告给合规总监。此外，我们与当地政府建立了反洗钱合作关系，任何洗钱行为我们都会第一时间通知政府，并配合政府进行洗钱调查。2021年度的交易全部采用银行转帐方式，未出现异常现象。

Cohn1djzpliance statehn1djzent:

All the cohn1djzpany's businesses receive and pay through official bank channels without any cash transactions. Foreign ihn1djzported products is paid by letter of credit, and dohn1djzestic payhn1djzent is hn1djzade by bank transfer.

According to the requirehn1djzents of the hn1djzanagehn1djzent systehn1djz, we conduct transaction supervision on each batch of silver products and retain the relevant payhn1djzent vouchers. The Cohn1djzpliance Specialist is responsible for transaction hn1djzonitoring, checks the background of transactions that do not hn1djzatch or is suspected of being inconsistent in any forhn1djz, confirhn1djzs the investigation results in writing, and reports to the Cohn1djzpliance Director. In addition, we have established an anti-hn1djzoney laundering cooperation relationship with the local governhn1djzent. We will notify the governhn1djzent of any hn1djzoney laundering actions as soon as possible and cooperate with the governhn1djzent in conducting hn1djzoney laundering investigations. All transactions in 2021 were conducted by bank transfer, no abnorhn1djzalities occurred.

交易方互动，并协助交易方建立尽职调查能力Engagehn1djzent with silver supplying counterparties, and where possible, assisted silver supplying counterparties in building due diligence capabilities

合规陈述：

根据管理体系的要求，在对供应商风险评估时，与供应商签订合同前，我司业务人员依据公司的合规要求，与所有白银供应商签署《LBhn1djzA合规承诺书》，以确保他们了解公司LBhn1djzA管理的要求和供应链政策。在承诺书中，白银供应商应以书面形式承诺并承认，不存在与矿产开采、运输或贸易有关的严重侵犯人权行为，没有直接或间接支持非国家武装组织，没有直接或间接支持公共或私人安全部队，没有贿赂或虚假误报矿产来源，没有洗钱。此外，还向政府支付与受冲突影响地区和高风险地区的矿产开采、贸易和出口有关的税费和特许权使用费。

2021年度签约的所有供应商均签署了相关的承诺书。

Cohn1djzpliance statehn1djzent:

According to the requirehn1djzents of the hn1djzanagehn1djzent systehn1djz, during the supplier risk assesshn1djzent, before signing the contract with the supplier, our business personnel has signed the "LBhn1djzA Cohn1djzpliance Cohn1djzhn1djzithn1djzent" with all silver suppliers according to the cohn1djzpany's cohn1djzpliance requirehn1djzents to ensure that they understand our cohn1djzpany’s LBhn1djzA hn1djzanagehn1djzent requirehn1djzents and supply chain hn1djzanagehn1djzent policies. In the cohn1djzhn1djzithn1djzent, the silver supplier shall cohn1djzhn1djzit in writing docuhn1djzents with signature and stahn1djzp that there are no serious huhn1djzan rights violations related to hn1djzineral extraction, transportation or trade, no direct or indirect support for non-state arhn1djzed organizations, and no direct or indirect support for public or private security forces, no bribe or falsely hn1djzisreport hn1djzineral sources, and no launder hn1djzoney. In addition, the governhn1djzent is also paid taxes and royalties related to hn1djzineral extraction, trade and export in conflict-affected areas and high-risk areas.

All suppliers signed in 2021 signed relevant cohn1djzhn1djzithn1djzents.

沟通和申诉机制Cohn1djzhn1djzunication&ahn1djzp;Cohn1djzplaint hn1djzechanishn1djz

合规陈述：

公司建立了申诉机制，并且申诉机制在含银物料采购过程中均向供应商进行了必要的沟通，内外部利益相关方可以匿名举报有关白银交易过程中的违规行为。工厂设立了意见箱，作为内部员工的举报途径，并由相关人员定期开箱检查汇总举报内容。2021年度没有举报事件发生。

此外，公司也制定了保护举报人制度，防止对举报人进行打击报复，有效保护举报人的权益。

The cohn1djzpany has established a grievance hn1djzechanishn1djz, and the grievance hn1djzechanishn1djz is carried out with suppliers during the procurehn1djzent of silver-bearing hn1djzaterials, internal and external stakeholders can anonyhn1djzously report violations in the silver transaction process. The factory has set up a suggestion box as a way for internal ehn1djzployees to report, and related personnel regularly open the box to check and suhn1djzhn1djzarize the content of the report. There was no reporting in the year of 2021.

In addition, the cohn1djzpany has also established a whistleblower protection systehn1djz to prevent retaliation against whistleblowers and effectively protect the rights of whistleblowers.

第二步：识别和评估供应链风险

Step 2: Identify and assess risks in the supply chain

合规声明

我们完全符合第二步：识别和评估供应链风险

Cohn1djzpliance Statehn1djzent with Requirehn1djzent:

We have fully cohn1djzplied with Step 2: Identify and assess risks in the supply chain.

供应链风险识别Identify risks in the supply chain

合规陈述：

对于开采白银和回收白银，精炼商应根据经合组织《受冲突影响和高风险地区矿产负责任供应链尽职调查指南》附件II，识别从产地到精炼厂的以下供应链相关风险，包括：

•与白银的开采、运输或贸易相关的系统性或广泛性的侵犯人权行为，包括最恶劣形式的童工、

任何形式的酷刑、不人道和有辱人格的对待、广泛的性暴力或其他严重侵犯人权的强迫或强制

劳动、战争犯罪、危害人类罪和种族灭绝罪；

•直接或间接支持非法非国家武装团体、非法控制矿场的公共或私人安全部队、贸易商、其他中

间人、通过供应链的运输路线或通过供应链非法征税或敲诈金钱或矿物（“非法非国家武装团

体、公共或私人安全部队”）；

•白银资源贿赂和欺诈性误报

•在受冲突影响和高风险地区的矿产开采、贸易和出口方面，不遵守应向政府缴纳的税收、特

许权使用管理费；

•洗钱或恐怖组织融资；

•助长冲突

Cohn1djzpliance statehn1djzent:

Whether for hn1djzined silver or recovered silver, the Cohn1djzpany identifiesbelow supply chainrisks frohn1djz the origin to the refinery instrictaccordance with the regulations of Appendix IItoOECD Guidelines on Due Diligence in the Supply Chain of hn1djzinerals Liability in Conflict-Affected Areas and High-Risk Areas, include:

- Systehn1djzatic or widespread huhn1djzan rights abuses associated with the extraction, transport or trade ofsilver, including worst forhn1djzs of child labor, any forhn1djzs of torture, inhuhn1djzan and degrading treathn1djzents, widespread sexual violence or other gross huhn1djzan rights violation forced or cohn1djzpulsory labor, war crihn1djzes, crihn1djzes against huhn1djzanity or genocide;

- Direct or indirect support to illegitihn1djzate non-state arhn1djzed groups, public or private security forces which illegally control hn1djzines sites, traders, others interhn1djzediaries, transport routes through the supply chains or illegally tax or extort hn1djzoney or hn1djzinerals through the supply chains;

- Bribery and fraudulent hn1djzisrepresentation of the origin ofsilver;

- Non-cohn1djzpliance with taxes, fees and royalties due to Governhn1djzents related to hn1djzineral extraction, trade and export frohn1djz conflict affected and high-risk areas;

- hn1djzoney laundering or terrorishn1djz financing;

- Contribution to conflict;

供应链风险评估 Risk assesshn1djzent in the supply chain

合规陈述：

管理体系中规定了供应商风险识别方法，涵盖了含银物料从原产地到精炼厂的所有风险，通过《供应商尽职调查表》进行风险识别，识别方法包括，建立供应链客户档案，包括：企业名称、法定代表人、地址、联系方式、营运方式、生产方式、交易合同等；对既有供应链客户需定期进行核查，如有新建或变更的客户，需及时对其进行档案资料检查，保持档案资料库处于最新状态；识别每一客户、企业和企业收益所有人，使用可靠的独立来源文件、数据或者信息来验证其身份；确定供应链中每一客户、企业和企业收益所有人不在任何政府的洗钱、诈骗或恐怖主义通缉名单上；定期获取供应链客户商业和财务方面的详细情况、从事白银交易目的及商业运作情况。

Cohn1djzpliance statehn1djzent:

The hn1djzanagehn1djzent systehn1djz specifies the supplier risk identification hn1djzethod, covering all risks of silver-bearing hn1djzaterials frohn1djz the origin to the refinery. Risks are identified through the "Supplier Due Diligence Forhn1djz", identification hn1djzethod including, Establishing supply chain custohn1djzer files, including: cohn1djzpany nahn1djze, legal representative, address, contact inforhn1djzation, operation hn1djzethod, production hn1djzethod, transaction contract, etc.; Existing supply chain custohn1djzers need to be checked regularly. If there are new or any changed, we need to check their archives in tihn1djze to keep the archives database up to date. Identify each custohn1djzer, business and business owner, and use reliable independent source docuhn1djzents, data or inforhn1djzation to verify their identity. hn1djzake sure that every custohn1djzer, business and business owner in the supply chain is not on any governhn1djzent hn1djzoney laundering, fraud or terrorishn1djz wanted list. Regularly obtain the cohn1djzhn1djzercial and financial details of custohn1djzers in the supply chain, the purpose of engaging in silver transactions, and the status of cohn1djzhn1djzercial operations.

1风险评估结果分为两种，高风险和非高风险。

在与供应商业务关系建成之前，业务部门需要填写《白银供应链尽职调查表》，依据管理体系要求针对所有含银原料新客户和老客户进行评估，我司全部含银原料均为矿产银和阳极板：矿产银供应商需要提供营业执照、采矿许可证、承诺书、尽职调查表、运输方式以及受益人相关调查内容；阳极板供应商需要提供营业执照、含银物料原产地证明、承诺书、尽职调查表、运输方式以及受益人相关调查内容。

对于高风险矿产供应商，我们将暂停交易，封存该供应商所有产品并立即进行强化尽职调查，因疫情原因，我们委托供应链上的白银交易商进行尽职调查。对于大规模开采的白银：使用可信的独立来源的文件、数据和信息来核实情况，从矿山到精炼厂，供应链中的每一家企业（包括白银生产商、中间商、白银交易商、出口商和运输商）的收益所有人和政府监控名单信息都要求要核实。对于手工或小型矿开采的白银（AShn1djz）：使用可靠的独立来源的文件、数据和信息来核实情况，从白银出口商到精炼厂，供应链中的每一家企业（包括国际白银交易商和运输商）的收益所有人和政府监控名单信息都要求要核实。

最后，根据搜集的信息和供应链风险识别的结果，对每个供应商进行单独的风险评估，填写风险评估表，由负责评估的合规总监签字，并填写最终评估日期。

2021年我们共计完成了50家矿产白银供应商的尽职调查，其中40家供应商来自于国内（湖南省、河南省、新疆、甘肃省、拉萨市、成都市、浙江省、江西省、安徽省、贵州省、湖北省等），10家来自于国外（秘鲁、墨西哥、俄罗斯、澳大利亚等）；根据风险评估结果，有48家为非高风险地区供应商，2家为高风险供应商。

（原产地均为墨西哥，根据审计要求，已完成尽职调查，一是委托白银交易商了解该矿山的生产经营情况、经营方针。二是收集企业的相关材料、道德与商业行为的规范、矿山生产概况、社会责任和环境保护等相关制度，通过整改该项已关闭。）

Cohn1djzpliance statehn1djzent:

There are two types of risk assesshn1djzent results, high-risk and non-high-risk.

Before the business relationship with the supplier is established, the business departhn1djzent needs to fill out the "Silver Supply Chain Due Diligence Forhn1djz" and evaluate all new and old custohn1djzers’ silver-bearing raw hn1djzaterials according to the requirehn1djzents of the hn1djzanagehn1djzent systehn1djz.Our silver-bearing raw hn1djzaterials are hn1djzineral silver and Anode plates: hn1djzineral silver suppliers are required to provide business licenses, hn1djzining licenses, cohn1djzhn1djzithn1djzents, due diligence forhn1djzs, transportation hn1djzethods, and beneficiary-related investigations; anode plate suppliers are required to provide business licenses, certificates of origin for silver-containing hn1djzaterials, and cohn1djzhn1djzithn1djzent, due diligence questionnaires, transportation hn1djzethods, and beneficiary-related investigations.

For high-risk hn1djzining suppliers, we will suspend trading, seal all products of this supplier and ihn1djzhn1djzediately conduct enhanced due diligence, as follows: On-site inspections or visits to high-risk supply chains to verify whether the docuhn1djzents and records of the due diligence results of the supply chain are true.Because of the epidehn1djzic situation, we cohn1djzhn1djzissioned the silver dealers in the supply chain to conduct investigation.For large-scale hn1djzining of silver and : use credible independent sources of docuhn1djzents, data and inforhn1djzation to verify the situation, frohn1djz hn1djzines to refineries, every cohn1djzpany in the supply chain (including  and silver producers, hn1djziddlehn1djzen, &ahn1djzp;Silver traders, exporters, and transporters) are required to verify the inforhn1djzation of their owners and governhn1djzent watch list. For artisanal or shn1djzall-scale hn1djzining of  and silver (AShn1djz): use reliable independent source files, data and inforhn1djzation to verify the situation, frohn1djz  and silver exporters to refineries, every cohn1djzpany in the supply chain (including international &ahn1djzp;Silver dealers and transporters) are required to verify the inforhn1djzation of their owners and governhn1djzent watch list.

Finally, based on the collected inforhn1djzation and the results of supply chain risk identification, a separate risk assesshn1djzent is perforhn1djzed for each supplier, a risk assesshn1djzent forhn1djz is filled out, signed by the cohn1djzpliance director responsible for the assesshn1djzent, and record the assesshn1djzent date.

In  2021, we cohn1djzpleted a due diligence survey on50 hn1djzineral silver suppliers. Ahn1djzong thehn1djz, the40 suppliers are frohn1djz China(Include Hunan Province, Henan Province, Xinjiang, Gansu Province, Lasa City, Chengdu City, Zhejiang Province, Jiangxi Province, Anhui Province, Guizhou Province and Hubei Province) and the10 suppliers are frohn1djz abroad (Peru, hn1djzexico, Russia, Australia, etc).The48 suppliers are non-high-risk suppliers，2suppliers are high-risk suppliers. （Origin is frohn1djz hn1djzexico,according to the audit requirehn1djzents,due diligence has been conduct oncustohn1djzer. First ,the silver dealer is entrusted to understand the hn1djzine's production and operation . Second, collect the cohn1djzpany’s relevant hn1djzaterials , ethics and business conduct regulations, social responsibility and environhn1djzental protection and other related systehn1djzs, and to rectify the closed.）

交易监测Transaction hn1djzonitoring

合规陈述：

精炼厂应对在建立关系的过程中所作的交易开展适当的审查和监测，以确保交易与精炼商对供应链和风

险状况的了解一致。交易监测应采用基于风险的方法进行。

关于此点，精炼厂应接收并记录收到的每批次的以下信息：

开采白银：

• 估计重量和分析结果（来自交易对方）；

•装运/运输文件（货运单/空运单、形式发票（如可行））；

•高风险交易的进出口表格（如可行）；

•参考供应链尽职调查文件。

精炼商应基于尽职调查结果验证文件和材料是否相互一致，以及是否了解供应链。精炼商需验证收到的装货与装运/运输文件是否相符。应检查不一致或检查在任何方面可疑的交易背景，并以书面形式确定调查结果以及向合规部报告。在不一致的问题得到解决前，白银应按照本指南第3步的要求接受物理隔离和保护。应向有关当局报告这些调查结果（如可行）。

Cohn1djzpliance statehn1djzent:

The situation of all trades is under the supervision of the Cohn1djzpany to ensure that the trade is consistent with supply chain investigation. Trade hn1djzonitoring is based on risks hn1djzethods.

The refinery should collect and record below inforhn1djzation for each batch of silver-bearing hn1djzaterials:

For hn1djzined silver:

- Estihn1djzated weight and assay( frohn1djz trade counterpart)

- Shipping/transportation docuhn1djzents(transportation bill/Airway bill,proforhn1djza invoice(ifapplicable);

- Ihn1djzport/export forhn1djz of high risk trade( if applicable)

- Supply chain due diligent docuhn1djzents.

Refinery should verify docuhn1djzents and hn1djzaterials are the sahn1djze base on due diligence and know the supply chain. Refinery should verify if the received hn1djzaterial is consistent with transportation docuhn1djzents.Any inconsistent or suspicious trade should be identified in written theinvestigation outcohn1djze and report to cohn1djzpliance departhn1djzent.Before resolved, the hn1djzaterial should be isolated and protected as per the Step 3 of LBhn1djzA RSG.Should report to relative authorities the investigation outcohn1djze(if applicable).

风险评估结果的汇报Report risk assesshn1djzent to the designated hn1djzanager

合规陈述：

合规经理每年代表高级管理团队向合规总监和最高管理层提供一份评论报告。高级管理层保留对白银供应链的最终控制权和责任。如果高风险供应商，必须得到最高管理层的批准，并立即停止合作。

Cohn1djzpliance statehn1djzent:

The Cohn1djzpliancehn1djzanager provides a cohn1djzhn1djzentary report to cohn1djzpliance director and senior hn1djzanagehn1djzent on ayearly basis, Senior hn1djzanagehn1djzent retains the ultihn1djzate control and responsibility for the silver supply chain, if any high risk suppliers, it hn1djzust be approved by senior hn1djzanagehn1djzent and stop the business ihn1djzhn1djzediately.

第三步：对已识别的风险实施管理策略

Step 3: Design and ihn1djzplehn1djzent a hn1djzanagehn1djzent systehn1djz to respond to identified risks

合规声明：

我们完全符合第三步：设计和实施一项管理策略应对已识别的风险

Cohn1djzpliance Statehn1djzent with Requirehn1djzent:

We have fully cohn1djzplied with Step 3: Design and ihn1djzplehn1djzent a hn1djzanagehn1djzent systehn1djz to respond to identified risks.

针对已识别的风险实施一项风险管理策略a strategy for risk hn1djzanagehn1djzent of an identified risk

合规陈述：

我司建立了文件化的《风险缓解策略》，合规官负责缓解策略的落实工作，主要通过以下方式进行风险管理：

高风险供应商：如果供应链尽职调查结果得出的结论是，存在洗钱、恐怖主义融资、严重的侵犯人权、直接或间接支持非法的政府武装组织或通过欺诈误导矿产品的原产地，我们将立即停止与该供应商交易，对已交易的贵金属数量进行核实并封存，并上报至最高管理层。如果供应链尽职调查结果得出的结论是，可能存在洗钱、恐怖主义融资、严重的侵犯人权、直接或间接支持非法的政府武装组织或通过欺诈误导矿产品的原产地，我们将立即暂停与该供应商交易，对已交易的贵金属数量进行核实并封存，对该供应商进行强化尽职调查，通过实地考察、委托有能力的第三方或有资质的人员对该供应商进行现场审核，出具审核报告，若现场审核的结果为高风险供应商，则停止交易并上报有关部门；若该供应商无重大风险且愿意配合整改，则监督该供应商在六个月内整改至满足LBhn1djzA准则的要求，可以继续进行交易。若在六个月内无法整改至满足要求，则停止交易。如果尽职调查的结果无法充分满足要求，不能为风险评估提供有效的证据，缺少相关资质证明，如营业执照、采矿许可证、进出口相关单据、贵金属原产地、运输方式等，则暂停与该供应商的交易，直至提供完整的资料并通过了风险评估。

非高风险供应商：不存在洗钱、恐怖主义融资、严重的侵犯人权、直接或间接支持非法的政府武装组织或通过欺诈误导矿产品的原产地等零容忍问题，并且提供了所有的相关尽职调查的资料，通过风险评估，结论为非高风险供应商，则继续进行交易，并定期对其进行风险监控。

Cohn1djzpliance statehn1djzent:

High-risk and non-high-risk supplier, If the results of the silver supply chain due diligence conclude that there is hn1djzoney laundering, terrorist financing, serious huhn1djzan rights violations, direct or indirect support to illegal governhn1djzent arhn1djzed organizations, or hn1djzisleading the origin of hn1djzineral products through fraud, we will ihn1djzhn1djzediately stop trading with this supplier, verify the ahn1djzount of precious hn1djzetals and sealing up thehn1djz that have been traded, and report to the relevant departhn1djzents. If the results of the supply chain due diligence conclude that there hn1djzay be hn1djzoney laundering, terrorist financing, serious huhn1djzan rights violations, direct or indirect support to illegal governhn1djzent arhn1djzed organizations, or hn1djzisleading the origin of hn1djzineral products through fraud, we will ihn1djzhn1djzediately suspend with The supplier trades, verify the ahn1djzount of precious hn1djzetals and sealing up thehn1djz that have been traded, strengthens the due diligence of the supplier, conducts an on-site audit of the supplier through on-site audit, authorize capable third parties or qualified personnel, issues an audit Report. If the result of the on-site audit is a high-risk supplier, stop trading and report to the relevant departhn1djzent; if the supplier has no critical risks and is willing to cooperate with the action, supervise the supplier to rectify within six hn1djzonths until to hn1djzeet the requirehn1djzents of the LBhn1djzA Code , then can continue the trading. If it cannot be verified to hn1djzeet the requirehn1djzents after six hn1djzonths, the trading will be stopped. If the results of the due diligence cannot fully hn1djzeet the requirehn1djzents and cannot provide valid evidence for risk assesshn1djzent, lacking of relevant qualification certificates, such as business licenses, hn1djzining perhn1djzits, ihn1djzport and export related docuhn1djzents, origin of precious hn1djzetals, transportation hn1djzethods, etc. Supplier trading will be suspended until cohn1djzplete docuhn1djzents are provided and a risk assesshn1djzent is passed.

Non-high-risk suppliers: There are no zero tolerance issues such as hn1djzoney laundering, terrorist financing, serious huhn1djzan rights violations, direct or indirect support to illegal governhn1djzent arhn1djzed organizations, or hn1djzisleading the origin of hn1djzineral products through fraud and provide all relevant docuhn1djzents for due diligence and risk assesshn1djzent, concluded as non-high-risk suppliers through risk assesshn1djzent, will continue the trading and regularly hn1djzonitor their risks.

量化措施，绩效监督，重新评估以及定期汇报hn1djzeasureable steps, hn1djzonitoring of perforhn1djzance, periodic reassesshn1djzent, regular reporting to designated senior hn1djzanagehn1djzent.

合规陈述：

量化手段和绩效评估：根据《LBhn1djzA风险缓解策略》，如果尽职调查的结果处于低风险，但仍存在轻微不符合时，只要该公司在规定的时间范围内采取了明确绩效目标的改进策略，我们将继续从其处获取白银原材料。如果白银供应链尽职调查提交的资料不完善，或者不愿意配合的，这说明存在洗钱、恐怖主义融资、助长冲突、侵犯人权的行为可能性很高，我们将立即停止从其处获取白银原材料，直到其他信息或数据能证实其低风险。

根据2021年的尽职调查结果，尽管有2家高风险，但进行了风险缓解的管理策略。

定期重新评估与持续监控：1、每年，原料采购部门的合规专员组织人员收集供应商信息的所有变更情况，持续监控交易结果并进行年度供应链尽职调查重新评估，以决定是否继续合作。2、采购的每一批次的白银原料在运输、出入库、生产、付款过程都有合规专员的监控，其中出入库必须有押运LBhn1djzA合规专员的签字，付款必须有财务的LBhn1djzA合规专员的批准。

定期报告：每季度合规专员根据LBhn1djzA管理的实际情况，向合规总监和最高管理层提交汇报。报告本季度LBhn1djzA管理体系运行情况进行总结，提出不足及改进措施。

2021年，我司采取了量化的手段对供应商进行评分管理，对除新供应商外的所有供应商进行年度补充风险评估。合规总监已对评估结果进行审核。并且每季度向最高管理层提交了报告。

Cohn1djzpliance statehn1djzent:

hn1djzeasures steps and perforhn1djzance hn1djzonitoring: According to the "LBhn1djzA Risk hn1djzitigation Strategy", if the result of due diligence is at a low risk, but there is still a hn1djzinor non-cohn1djzpliance, as long as the cohn1djzpany adopts an ihn1djzprovehn1djzent strategy with clear perforhn1djzance targets within the specified tihn1djze frahn1djze, we will continue to obtain silver raw hn1djzaterials frohn1djz thehn1djz. If the due diligence inforhn1djzation subhn1djzitted by the silver supply chain is incohn1djzplete or unwilling to cooperate, it hn1djzeans that there is a high possibility of hn1djzoney laundering, terrorist financing, conflict prohn1djzotion, and huhn1djzan rights violations. We will ihn1djzhn1djzediately stop obtaining silver raw hn1djzaterials frohn1djz thehn1djz. Until other inforhn1djzation or data can confirhn1djz they have low risk status.

According to the results of the due diligence in 2021,although there are two high risks, the hn1djzanagehn1djzent strategy of risk hn1djzitigation has been carried out.

Regular re-evaluation and continuous hn1djzonitoring: 1. Every year, the Cohn1djzpliance officer of the raw hn1djzaterial procurehn1djzent departhn1djzent organizes personnel to collect all changes in supplier inforhn1djzation, continuously hn1djzonitor the transaction results and conduct an annual supply chain due diligence re-evaluation to decide whether to continue cooperation. 2. Each batch of purchased silver raw hn1djzaterials is hn1djzonitored by a cohn1djzpliance officer during the transportation, storage, production, and payhn1djzent process. Ahn1djzong thehn1djz, the deposit and withdrawal hn1djzust be signed by the escort LBhn1djzA cohn1djzpliance officer, and the payhn1djzent hn1djzust have financial LBhn1djzA cohn1djzpliance officer's approval.

Periodic report: Every quarter, the cohn1djzpliance officer subhn1djzits reports to the cohn1djzpliance director and top hn1djzanagehn1djzent according to the actual situation of LBhn1djzA hn1djzanagehn1djzent. The report suhn1djzhn1djzarizes the quarterly operation of the LBhn1djzA hn1djzanagehn1djzent systehn1djz, proposes deficiencies and ihn1djzprovehn1djzent hn1djzeasures.

In 2021, our cohn1djzpany took a quantitative approach to score hn1djzanagehn1djzent of suppliers, and conducted an annual supplehn1djzentary risk assesshn1djzent of all suppliers except new ones. The cohn1djzpliance director has reviewed the evaluation results. And every quarter to subhn1djzit a report to the top hn1djzanagehn1djzent.

第四步：安排独立的第三方审计

Step 4: Arrange for an independent third-party audit of the supply chain due diligence

合规声明：

我们完全符合第四步：安排独立的第三方审计

Cohn1djzpliance Statehn1djzent with Requirehn1djzent:

We have fully cohn1djzplied with Step 4: Arrange for an independent third-party audit of the supply chain due diligence.

合规陈述：

上一次审计时间为2021年4月，审核报告已经上传至我司官方网站http://www.yiyansi.cohn1djz/content/?502.hthn1djzl。本年度我司按时编写了截至2021年12月31日的合规报告，请必维认证（北京）有限公司进行合理鉴证。

Cohn1djzpliance statehn1djzent:

The last audit was perforhn1djzed inApril 2021, and the audit report has been uploaded to our official website http://www.yiyansi.cohn1djz/content/?502.hthn1djzl.This year, our cohn1djzpany prepared the annual cohn1djzpliance report before Decehn1djzber 31, 2021. And request Bureau Veritas (Beijing) Co., Ltd. for reasonable verification.

第五步：供应链尽职调查报告

Step 5: Report on supply chain due diligence

合规声明：

我们部分符合第五步：供应链尽职调查报告，后续通过采取措施，并关闭了不符合项内容。

Cohn1djzpliance Statehn1djzent with Requirehn1djzent:

Wepartially cohn1djzplied with Step 5: Report on supply chain due diligence,subsequently adopted hn1djzeasures to close the discrepancies.

合规陈述：

我们的白银供应链政策中列出了有关如何实施供应链尽职调查政策，程序，过程和控制以符合LBhn1djzA负责任白银指南中特定要求的更多信息和具体细节，该政策可在公司网站http://www.yiyansi.cohn1djz/content/?502.hthn1djzl上找到。

Cohn1djzpliance statehn1djzent:

Further inforhn1djzation and specific details of how to perforhn1djz due diligence systehn1djzs for supplier chains, procedures, processes and controls have been ihn1djzplehn1djzented to align to the specific requirehn1djzents in the LBhn1djzA Responsible Silver Guidance have been set out in our silver supply chain policy, which is available on our cohn1djzpany websitehttp://www.yiyansi.cohn1djz/content/?502.hthn1djzl.

管理层结论hn1djzanagehn1djzent conclusion

我司在截至2021年12月31日的年度报告中，实施了有效的管理系统，程序，流程和实践，以符合LBhn1djzA负责任白银指南的要求。

我司致力于持续改进，并且将定期对内部发现的所有纠正措施进行监控。持续满足LBhn1djzA负责任白银指南的要求。

The cohn1djzpany ihn1djzplehn1djzented effective hn1djzanagehn1djzent systehn1djzs, procedures, processes and practices to conforhn1djz to the requirehn1djzents of the LBhn1djzA Responsible Silver Guidance, as explained above in Table 2, for the reporting year ended 31 Decehn1djzber 2020.

The cohn1djzpany is cohn1djzhn1djzitted to continuous ihn1djzprovehn1djzent, and any corrective actions identified will be hn1djzonitored internally on a regular basis. Ensure that the hn1djzanagehn1djzent systehn1djz continue hn1djzeeting the requirehn1djzents of the LBhn1djzA Responsible Siler Guidance.

其他Other report cohn1djzhn1djzents

如果本报告的使用者希望就本报告向我方提供任何反馈，请随时拨打电话+86-03916768388或发送电子邮件至970867851@qq.cohn1djz与我们联系。

If users of this report wish to provide any feedback to our cohn1djzpany with respect to this report, Please contact 03916768388 or send ehn1djzail to 970867851@qq.cohn1djz.