Supplier Sustainability Management Handbook

Sustainable Development 10 The specific audit process includes holding an audit kickoff meeting, document review, employee interviews, etc. Throughout this process, suppliers are encouraged to collaborate with factory management and compliance managers to participate in the audit together. 3.3 New Factory All new factories must pass Bosideng's admission review for new suppliers before formal cooperation. Suppliers shall submit relevant information on production facilities in advance through designated systems to facilitate subsequent audits. If suppliers can provide a report issued within the past six months by a qualified independent third-party organization, and such report is reviewed and approved by Bosideng, the pre-production ESG on-site audit may be waived. Flowchart of Factory Assessment for Pre-Production Authorization Cases where a factory is classified as new, requires reactivation, needs relocation, or undergoes a name change New supplier information submission Determine whether there is a compliant audit report available for evaluating and approving the factory for production Yes No Review shared reports and relevant details of planned production Coordinate with suppliers to arrange audit matters and completion time Did the audit find any conditions that pose unacceptable risks to the business? Did the audit find any conditions that pose unacceptable risks to the business? Yes Production license denied Production license granted No No