Responsible Mineral Procurement Policy

Simplo had committed to carrying out supply chain due diligence on purchase of Tantalum, Tin, Tungsten, Gold (hereinafter referred to as 3TGs), Co and Mica contained in the products in accordance with the Guidelines of Organization for Economic Cooperation and Development (OECD). At the same time, SMP also announced to the supplier and required the supplier to purchase all 3TGs, Co and Mica contained in the product, which must be conflict-free minerals approved by a specific third-party international organization such as the Responsible Business Alliance (RBA) and certified by Responsible Minerals Initiative (RMI, formerly known as the Conflict-Free Sourcing Initiative). Simplo will also instruct suppliers to actively urge smelters and refiners not yet RMI accredited to undergo the Responsible Minerals Assurance Process (RMAP).

Simplo executes the Responsible Minerals Initiative (RMI) program of the Responsible Business Alliance (RBA) for RCOI to identify smelters/refineries. All records are retained in the system database. Long-term relationships with most suppliers are established for leverage and compliance. The Company has not purchased virgin refined ore from the Democratic Republic of the Congo (DRC), Covered Countries (CC), or any other country/area.
Suppliers are required to sign the Conflict Minerals Declaration. The Company declares and requires suppliers that all 3TGs, cobalt and mica contained in products must be conflict-free minerals that have been reviewed and certified by the approved RMI (Responsible Minerals Initiative, former Conflict-Free Sourcing Initiative) recognized by specific third-party international organizations such as the Responsible Business Alliance (RBA). This requirement has been incorporated into the Regulations of Hazardous Substances Management. As of 2022, the signing rate of the Conflict Minerals Declaration by key suppliers was 86.6%.
Simplo adopts the guidelines of the Organization for Economic Co-operation and Development (OECD). Measures taken include establishing a management system, identifying and assessing risks, designing/implementing responding strategies, and conducting due diligence on the supply chain for the procurement of six minerals, namely tantalum, tin, tantalum, gold (3TGs), cobalt and mica pursuant to the guidelines of the OECD. For the 2022 supplier management of conflict minerals and due diligence results, among 273 smelters or refineries investigated, 251 were qualified, with qualified smelters accounting for 91.94%. The data collection results were compiled into the 2022 Conflict Minerals Survey Report of Simplo, announced on the official website of Simplo in September 2022(Refer to link).
Based on the Reasonable Country of Origin Inquiry (RCOI), good faith and efforts, we have created this Conflict Minerals Reporting Template (CMRT) and Extended Minerals Reporting Template (EMRT) based on the required elements. We aim to increase the overall conflict-free profile to 98% by the end of 2023. Simplo has indeed achieved 100% conflict free with reported and verified tungsten smelters. We hope to work together with suppliers to fulfill corporate responsibilities and eliminate inhumane treatment and infringement on human rights, to build an enterprise with sustainable operations.