Chapter I. Criterion and Guidelines

We uphold the principle of selecting high-quality suppliers, and give priority to cooperation with suppliers who are well organized, protect the environment and exhibit social responsibility, including but not limited to the following conditions:

(1) The supplier has passed the management system standard certification of the International Organization for Standardization, such as ISO14001 or OHSAS18001 and other equivalent management system standards certification;

(2) The supplier has formulated its own sustainable development policy, supplier code of conduct or sustainable procurement policy.

(3) The supplier has positive ESG-related information, include but not limited to, environmental management, occupational safety and health, labour and human rights, such as prohibition of child labour, prohibition of inhumane treatment, protection of minimum wage, business ethics, anti-corruption, etc.

Scope of application:

The above policy is applicable to all suppliers and subcontractors cooperating within the scope of CIFI Group and its affiliates.

Adhering to the principle of "purchase only green supplies", the Group has taken part in the Green Supply Chain Action for China's real estate industry since 2016 and set strict requirements for our suppliers regarding environmental protection and product safety during the procurement process. To augment the green procurement standards, "Green Product Procurement Catalogue" has been devised, encompassing 13 categories of green products and materials, inclusive of companies and materials certified by the National Green Label.

As a member of the expert group of the joint purchasing of the China Urban Realty Association (the "CURA Joint Purchasing"), CIFI participated in the 13th batch of CURA Joint Purchasing in 2023, led the tender and procurement of 5 categories including air conditioners, solar water heaters and shower rooms and awarded tender to 14 tenderers, showing our engagement to actively promote the achievement of green joint procurement goals among the member companies. CIFI incorporated environmental compliance as a mandatory criterion for supplier shortlisting, utilizing tools such as environmental compliance whitelists to assess suppliers' corporate environmental regulatory records and mandating suppliers to disclose non-compliance reasons and implement corrective measures by specified deadlines.

Additionally, we engage with wood and flooring suppliers certified by the Forest Stewardship Council. Moreover, we allocate extra points in our evaluations to suppliers with environmental, quality, and safety certifications, including ISO 14001 for energy management systems, ISO 9001 for quality management systems, and OHSAS 18001 for occupational health and safety. As of the end of the Reporting Period, 150 strategic suppliers of the Group have attained ISO 14001 energy management system and ISO 9001 quality management system certifications.

Chapter II. Code of Conduct

Our suppliers shall strictly comply with the following code of conduct:

·Compliance with laws:

The supplier must abide by all applicable laws and regulations when conducting business, including matters related to product/service quality/safety, business ethics, labor practices, environment, anti-corruption, data protection and intellectual property rights.

·Environmental protection and green development:

(1) The supplier agrees with the development concept of green and low carbon, actively carries out green design, innovates green manufacturing technology, chooses green materials, implements green packaging and green transportation, fulfills green environmental protection in the whole business cycle, and minimizes damage caused by work and production to the ecological environment;

(2) If damage and obstruction to the environment or public interests is inevitable due to special reasons, the necessary administrative approval or permission shall be obtained before operation;

(3) The supplier shall strive to create a green office environment and promote green upgrading of industry infrastructure.

Insurance:

The supplier shall ensure the safety of life and property of itself and its employees, and cover insurance fees for the relevant departments according to the required insurance categories.

·Remuneration and work hours:

(1) The supplier shall sign written labor contracts in compliance with local laws and regulations with all employees hired to work for its project;

(2) The supplier shall respect and safeguard employees’ basic rights granted to citizens by law, including the right to rest, labor protection and wages;

(3) The supplier shall ensure that employees receive the minimum wage in accordance with the provisions of the national and local administrative departments;

(4) The supplier shall pay the employee's salary on time without delay;

(5) The supplier shall pay overtime compensation according to the legal requirements, and the hours shall be within the statutory working time limit.

·Employment requirements:

(1) The supplier shall not conduct any form of forced labor or coerced labor for any reason;

（(2) When employing employees, the supplier shall treat whether the candidates meet the job requirements as the main consideration, and shall not discriminate against employees on the grounds of gender, race, nationality, age, marital status, family status, sexual orientation, religion or physical disability;

(3) The supplier shall not employ minors under the age of 16 as laborers;

(4) The supplier shall provide working conditions that protect employees from hazards of the work they are engaged in and living conditions that meet the average living standards of local residents;

(5) The supplier shall have appropriate communication mechanisms and complaint procedures in place to enable employees to express their appeals and complaints to management.

·Health & Safety:

(1) The supplier shall have a sound health and safety guarantee system and specify preventive measures to maintain the health and safety of employees;

(2) The supplier shall provide employees with labor protection articles conforming to national or industrial standards, and regularly offer employees safety production education and training.

·Integrity requirements:

（(1) The supplier shall formulate policy documents related to honesty and a corruption-free office system, employee's professional ethics manual, etc., and publicize and implement them in time, and resolutely put an end to all bribery, including accepting bribes or asking for bribes that may occur in business activities;

(2) The supplier shall keep necessary and efficient whistle-blowing channels and report the results to the outside world in a timely manner for dishonest acts that have been verified.

·Fair competition:

(1) The supplier shall follow the principles of fairness, openness and impartiality, and maximize the transparency of business information;

(2) The supplier shall not engage in bid colluding or ringing actions in a tendering process;

·Win-Win cooperation:

(1) The supplier shall establish a mutually beneficial and cooperative relationship with the employer and agree with each other's development philosophy;

(2) A long-term communication mechanism shall be established between suppliers and employers, with regular visits and feedback;

(3) Incentive mechanisms shall be established between suppliers and employers to restrain conflicts of interest.

·Training Description:

The supplier shall carry out their own training on safety, quality, anti-corruption measures, labor rights and interests, etc., and agree to sign a corresponding letter of commitment or statement with employers when necessary.

Chapter III. Supervision and Appeal

·Information audit and supervision:

The supplier shall provide CIFI Group with relevant documents to prove compliance with this Code of Conduct. CIFI Group shall reserve the right to ask suppliers for relevant information and conduct on-site inspections to verify their performance.

·Deepen integrity procurement:

Before signing each contract, all of the suppliers were required to sign and have signed Letter of Undertaking of Integrity. As our important partners, we do not tolerate any malicious or bribery behavior from our suppliers. We blacklist suppliers who commit such behaviour and prohibit them from working with us for the next two years.

·Punishment mechanism:

If the supplier violates this Code of Conduct, CIFI Group will ask the supplier to deal with the problem. If the circumstances are serious or the supplier refuses to cooperate, CIFI Group will issue a warning, fine or terminate the cooperation pursuant to the terms of the contract.

·Contact data and appeal mechanism:

CIFI Group sets up a Whistle-blowing Policy that allows employees and outsiders to report suppliers and subcontractors who have violated this Code of Conduct in a confidential and anonymous manner. We provide diversified and convenient whistle-blowing channels for informers, including letters, telephone messages and e-mails, to effectively collect whistle-blowing information. Unless otherwise specified by law or judicial departments, the Group will strictly keep the whistle-blowing materials and identity information of informers confidential. CIFI Group takes whistle-blowing seriously, and will investigate and handle all reports.

If you have any questions about this Code of Conduct or have any complaints and reports, please contact CIFI Group with one of the following methods:

Mail	Phone/Messege	Email	Online
Address: No. 39, Lane 1088, Shenhong Road, Minhang District, Shanghai Post Code: 200335 Recipient: the chairman of the board of directors or the chairman of the board of supervisors	Phone：8009880268 SMS: 18516702393	Chairman's mailbox: ldsz@cifi.com.cn Email: jubao@cifi.com.cn	CIFI official website： https://www.cifi.com.cn/contact/check.html official WeChat account “Incorrupt CIFI"

Chapter IV. Enhance Communication with Suppliers

he Group attaches great importance to communicating with suppliers, and has established close and good cooperative relationships with both upstream and downstream.

For suppliers of debt crises who are cooperating with CIFI, the Group formulates protection measures and conduct risk mangament. For suppliers who are not cooperating with CIFI,the Group maps out potential cooperation risks. At the same time, the Group issues Notice on the Management and Control of Dedicated Use of Special Funds for Construction, requiring the region and suppliers to enter into Commitment Letter for Dedicated Use of Special Funds for Construction, as an annex to the contract when new projects are tendered.