To ensure we are not sourcing any conflict minerals which were mined through abuses of human rights or under the coercion of armed groups, the Company has established the Phison Conflict-free Minerals Management Policy and required suppliers and subcontractors to sign a letter of commitment for avoidance use of conflict minerals or non-use of conflict minerals before they become qualified supply chain partners. The process for conflict minerals inquiry: after the product requirements and specifications are submitted, if any of the product materials involve metal, a conflict minerals inquiry is conducted to identify the type of the metal, the name of smelter and its country of origin, whether the mineral comes from recycled or scrap sources, and the country where the mineral was mined from, through conflict minerals inquiry forms (Conflict Minerals Reporting Template CMRT, Cobalt Reporting Template-CRT, Extended Minerals Reporting Template-EMRT). If the supplier is found to be in breach of the Phison Conflict-free Minerals Management Policy, we will cease all purchases from such supplier immediately. The supplier will be required to provide its plans for corrective and preventive measures.