Happy Employees

Talent is the key driving force behind the development of Griffin and its business. Griffin adheres to the principle of “people-oriented,” caring for the physical and mental health of employees, and improving their talents. Griffin strives to develop effective communication channels, and create an equal, safe, and inclusive workplace environment. Griffin endeavours to enhance employees’ sense of happiness and accomplishment.

Employment

The Company abides by the Labour Law of the People’s Republic of China, the Labour Contract Law of the People’s Republic of China, the Trade Union Law of the People’s Republic of China, the Law of the People’s Republic of China on the Protection of Women’s Rights and Interests and other laws and regulations, and has formulated relevant systems related to employment, salary and benefits, as well as humanistic care, employee communication, working hours and vacation management, diversity, anti-discrimination, and human rights protection. These measures are regularly reviewed and revised as appropriate to take account of recruitment conditions and relevant laws and regulations. Griffin provides equal opportunities for employees in recruitment, benefits, training, development, and promotion, adhering to the principle of equal pay for equal work and avoiding discrimination based on factors such as race, age, gender, marital status, or religious beliefs. Griffin operates a transparent and fair recruitment process, adopting a dualchannel recruitment approach, both internal and external, with the aim of encouraging employee development and introducing fresh talent. In 2024, Griffin established a recruitment mechanism in collaboration with third-party agents to assist in identifying and recruiting specialised personnel, effectively improving recruitment efficiency and alleviating the demand for talented personnel.

As of 31 December 2024, Hebei Hua Ao had 501 employees with a further 4 employees elsewhere in the Griffin Group of companies.

Employee Well-being

The Company abides by the Social Insurance Law of the People’s Republic of China, Regulations on Paid Annual Leave for Employees, Regulations on the Administration of Housing Accumulation Funds and other laws and regulations. Griffin continuously reviews and amends as appropriate payroll structures, compensation and benefits to employees to provide employees with good pay and conditions.

Griffin seeks to provide fair compensation for work undertaken taking account of employee experience, skills, and workplace environment, whilst having due regard to local pay levels. Griffin sets personal performance bonus indicators, which include safety compliance, behavioural standards, attendance, and other factors, to stimulate employees’ enthusiasm and work motivation. Griffin follows global trends concerning executive compensation incentives and industry practice so as to align compensation and incentives with Griffin’s development.

Griffin provides employees with comprehensive welfare benefits including, five insurances and one fund in accordance with PRC law, transportation to and from work, triple wages for statutory holidays, annual leave, sick leave, work-related injury leave, marriage leave, maternity leave and other compassionate leave. Griffin abides by the PRC national working hours system and implements standard working hours of 8 hours a day and no more than 40 hours a week. If overtime is required, the Company will pay overtime or give employees the right to take compensatory time off. Griffin strives to ensure employees have a balanced work life. Griffin arranges regular health checkups for employees, and gives shopping cards and gifts to employees in the Spring and Mid-Autumn Festivals. Griffin strives to create a safe and harmonious working environment, whilst enhancing employees’ sense of identity within the Company.

Griffin recognises the challenges female employees may face at work and provides them with appropriate support. Griffin follows PRC protection regulations for female employees, prohibiting the assignment of female employees to underground mining operations, high or low-temperature environments, cold-water operations, and prohibited tasks during pregnancy. Additionally, Griffin applies enhanced protection for female employees during maternity and post natal periods, implementing relevant leave regulations and ensuring they receive applicable compensation and benefits. To help female employees balance work and family, the Company provides free accommodation and food at the Caijiaying Mine site, allows them to bring family members and children until the child reaches one year old. During holidays such as International Women’s Day, Griffin offers female employees a half-day leave and distributes special benefits, effectively ensuring their quality of life and mental health, demonstrating Griffin’s care for its employees.

Employee Equality

Griffin believes in democratic management and strives to create an equal working environment. Griffin champions the Universal Declaration of Human Rights, the International Human Rights Conventions, and other relevant conventions and norms of the International Labour Organisation. Griffin follow the principles of equality and nondiscrimination. Griffin promote employees’ legal rights through internal bulletin boards, emails, training, and other means, raises awareness about human rights protection, implements human rights measures, and firmly opposes any actions that may cause human rights violations.

Griffin explicitly prohibits the employment and use of child labour, opposes any form of forced labour, and requires suppliers to adhere to the same employment standards. Should any child labour be discovered, Griffin will immediately stop the work of child labourers, provide them with comprehensive health checks, notify the relevant departments, and rectify the internal recruitment process to prevent the reoccurrence of child labour. Griffin provides human rights protection training for every new employee, covering fair treatment, respect for the individual, employee safety and health, opposition to forced labour, prohibition of child labour, and the implementation of non-discriminatory employment policies regarding gender, ethnicity, belief, and age. Griffin require employees to follow the Company’s prescribed exit procedures when resigning, allowing them to freely submit their resignation and preventing coercion through violence, threats, or illegal restrictions on personal freedom.

Griffin fully respects employees’ rights of participation, information, supervision by public opinion and freedom of association, protects employees’ legitimate rights and interests through trade unions, supervises the performance of labour contracts and mediates employees’ labour disputes. Griffin has set up communication platforms such as employee feedback email boxes and suggestion boxes to encourage employees to give feedback on violations of their own rights and interests, and put forward valuable opinions for the Company’s development, whilst keeping employees’ personal information strictly confidential. In addition, Griffin has set up activity rooms, gymnasiums and other places for employees to interact and communicate, and regularly holds group building activities, such as holiday-themed dinners and departmental friendships, in doing so striving to create a warm and harmonious working atmosphere and continuously enhance employees’ sense of belonging and happiness.

In 2024, the Company had no major labour disputes or human rights complaints from employees.

Employee Development and Training

Griffin recognizes that employee development is crucial for maintaining a competitive advantage and driving innovation within the Company. Griffin is committed to providing employees with diverse career development opportunities, career advancement and promotion. Griffin regularly conducts job assessments and market surveys to ensure that employees’ development paths align with market demand. Through various communication channels, Griffin gathers feedback on employees’ job satisfaction. Through regular assessments Griffin considers employees abilities and performance, makes appropriate promotions and transfers, offering opportunities for advancement or salary incentives to employees with good work attitude, quality, and abilities. Griffin operates a job rotation system to ensure that new and existing employees are matched with positions suited to their personal development and potential.

Griffin recognizes that the development of employees skills is essential to the development of the Company’s business and its efficient running. Griffin has created targeted training plans that align corporate development with employees’ personal development goals and job responsibilities. Griffin continues to provide onboarding training for new employees, covering corporate culture, company policies, and occupational health and safety, to help them better understand their job responsibilities so as to integrate them into Griffin’s culture and work environment. Griffin has established partnerships with professional skill training schools to cultivate specialised skills for employees in certain job functions. To achieve safety production goals, Griffin runs training programs based on PRC national requirements and site conditions, focusing on safety production and conducting training around various performance indicators, setting performance bonuses to motivate employees’ development and enhance their skills and enthusiasm.

In 2024, the Company’s employee training coverage rate reached 100%, with a total of 20,480 hours of various training sessions held and a total of 512 employees trained, resulting in an average of 40 hours of training per person. The details of the training activities are as follows:

• Management personnel training: 29 management personnel received safe production knowledge and management ability training; • Special operation training: 40 operators received training on getting Certificates for Special Operations;

• Special equipment training: 9 operators and management personnel received special equipment management and operation training;

• New employee training: 72 new employees received conducted employee orientation level 3 training;

• Safety training: Internal safety training for all employees.

Employee Occupational Health

Griffin prioritises employee safety and health in its operations and strictly abides by the Law of the People’s Republic of China on the Prevention and Control of Occupational Diseases, Measures for the Supervision and Administration of Employers’ Occupational Health Surveillance, and other laws and regulations. Griffin regulates operational procedures in accordance with these requirements, providing employees with good working conditions and health protection measures, ensuring a safe and healthy work environment.

Griffin continuously assesses disease risks and takes appropriate measures to mitigate any such risk. Griffin engages qualified third-parties to develop and update the Implementation Plan for the Identification and Rectification of Hazards of Occupational Hazards for the Company to detect and assess workplace occupational hazards, identify the severity of these hazards, and take appropriate preventive measures. Griffin offers pre-employment, in-service, and post-employment health checks, provides medical insurance, critical illness insurance, and health insurance. Griffin informs employees of the occupational disease risks associated with their roles, raising their awareness of proactive prevention. Throughout their employment, Griffin periodically informs employees in writing about the potential occupational hazards of their positions, ensuring they remain vigilant. Griffin cooperates with local hospitals to arrange annual health checkups and disease screenings for employees, enhancing monitoring of their health and preventing diseases.

Griffin also recognizes the importance of employees’ mental health. Through various communication channels Griffin seeks to promptly understand employee workrelated needs and challenges, assess their psychological state, and provide psychological counselling. This helps employees maintain a positive and optimistic mindset.

Griffin displays hazard warning labels in prominent areas and uses bulletin boards to spread safety messages, continually reinforcing health education and enhancing employees’ safety awareness. All personnel entering the plant are provided with protective gear such as helmets, protective eye wear, and earplugs. Special protective equipment such as rubber boots, felt socks and mining lamps, are also provided to workers in specific roles. Relevant employees are required to master the use and maintenance of health protection equipment and personal protective gear, understand the properties, health hazards, equipment operation, and potential dangers of materials, and regularly participate in fire drills and emergency exercises to ensure they are prepared to handle emergencies effectively.

Safety Management

With mining being the core of Griffin’s business, safety is paramount to Griffin’s operations. Accordingly, Griffin strictly abides by the Work Safety Law of the People’s Republic of China, the Mine Safety Law of the People’s Republic of China and other laws and regulations. Griffin adheres to the safety production principle of “safety first, focusing on prevention and integrated control” and has obtained ISO 45001 occupational health and safety management systems certification.

Griffin places great importance on the establishment of safety production systems and continually seeks to improve safety procedures, including the Safety Production Responsibility System, Safety Production Rules and Regulations, and Safety Production Operating Procedures. Griffin engages professional institutions to review and audit compliance and applicability of these regulations. In 2024, Griffin established and revised 106 safety production rules and regulations, and 159 safety operation procedures. Griffin requires all employees to be familiar with the content of safety regulations and understand their responsibilities. Griffin also promotes the “Golden Rules to Ensure Life Safety”, emphasizing the prevention of safety accidents and maintaining standardised and regulated safety management practices, ensuring that “safety production is everyone’s responsibility, and everyone knows their responsibility”.

Griffin continuously seeks to improve its safety management structure. In 2024, Griffin updated and adjusted the Safety Production Management Committee (hereinafter the “Safety Committee”) reflecting latest production and operational needs. Griffin’s Operations Manager serves as the director of the Safety Committee, while the Deputy Operations Manager and Safety Director are appointed as deputy directors. Heads of departments and key contractors are members of this committee and are made responsible for overseeing safety production work. The Safety Committee has a dedicated office led by the Safety Director, who also serves as the Office Director, ensuring the committee’s daily operations are handled effectively. A dedicated safety production management department is also established, staffed with a sufficient number of safety management personnel, all of whom have received training from the relevant government authorities and hold certificates, ensuring they have the necessary expertise in safety management. Griffin continues to strengthen requirements for on-site safety inspections, implementing a “horizontal to the edge, vertical to the bottom” approach, which establishes a safety production responsibility system across all levels. Griffin clearly defines the safety responsibilities for each role across all levels from the Operations Manager to front line workers, and undertakes safety performance assessments. All employees are required to sign safety production responsibility agreements, ensuring continuous communication of the Company’s safety philosophy, policies, regulations, and methodologies.

Griffin formulates an Annual Work Safety Plan at the beginning of each year, which specifies the annual work safety objectives. Griffin assesses potential risks, sets job safety protocols and countermeasures, holds safety meetings and conducts regular and special inspections. For high-risk positions, employees are required to conduct a “Job Safety Analysis” (JSA) before starting work and make a risk assessment prior to commencing any task. In 2024, Griffin conducted four quarterly safety production inspections, 12 leadership comprehensive safety inspections, and over 280 safety inspections in areas including processing, mining, south ventilation shaft, various workshops, bases and warehouses. Griffin also completed nearly 70 specialised safety inspections. All identified safety hazards during these inspections have been addressed and closed.

Note – This table only covers Hebei Hua Ao employees and not contractors’ employees for which one fatality at the Caijiaying mine was recorded in 2024.

Emergency Response Plan for Safety Accidents

Griffin continuously reviews and revises its emergency management protocols for any accidents to comply with relevant laws, regulations, and system documents such as Measures for the Administration of Contingency Plans for Work Safety Accidents, the Guidelines for enterprises to develop emergency response plan for work place accidents (GB/T 29639-2020), Griffin revised its Emergency Plan for Production Safety Accidents and the Special Emergency Plan for Tailings Dam, Underground and Processing Plant based on risk identification assessments. After expert reviews, these revised plans were promptly filed with the relevant departments and notified to all relevant personnel to ensure that emergency rescue actions can be carried out promptly and effectively.

Safety Training and Emergency Drill

Griffin continues to strengthen safety education for its employees. At the beginning of each year Griffin prepares and implements a safety education and training plan. Various forms of safety education and training are then organised, with mining safety experts to conduct multiple training sessions and assessments. The training content covers topics such as enhancing safety leadership, identifying safety hazards, and preventive measures, aimed at improving overall safety awareness. Griffin conducted several safety exercises, including tailings dam flood prevention drills, underground fire escape drills, and underground poisoning and suffocation accident response drills, to enhance the risk awareness and rescue capabilities of all operational personnel.

In 2024, the various safety training organised by the Company is as follows:

The total duration of safety education and training is 85,533 hours.

Contractor Safety Management

Griffin follows the Interim Measures for Safety Management of Outsourcing Projects in Non-Coal Mines Safety, the Strengthening Safety Management of Outsourcing Projects in Metal and Non-metal Underground Mines and other management measures. Griffin has formulated the Foreign Construction Team Management System, the Construction Project Safety Management System, and the Contractor Assessment Management System, ensuring contractors are managed in the same manner and comply with the same protocols as employees regarding health and safety. This includes unified management in areas such as administration, training, inspection, assessment, and rewards/punishments (“five unifications”). Griffin examines contractors’ qualifications to ensure they meet the necessary professional standards and sign Work Safety Management Agreements with contractors to clarify the safety responsibilities of all parties.

Griffin integrates contractor employees into its safety goals and education programs, including a three-level safety education training and annual safety re-training programme. Griffin conducts regular safety inspections and assessments of contractors, identifies potential risks, and demands corrective actions. Violations are penalised to strengthen safety management. In October 2024, a haulage contractor’s employee was tragically killed when waste was discharged from a tailings chute. Griffin immediately instigated rescue operations but was unable to save the injured contractor employee. Griffin promptly reported the incident to the local authorities, suspended all mining activities, and carried out an enhanced safety investigation to identify safety failings and to rectify these.

During the suspension of operations, Griffin conducted a thorough analysis of the cause of the accident and organised special safety risk identification and assessment activities. Griffin conducted safety hazard inspections and corrective actions in specific areas on-site, and Griffin reassessed and improved the organisational structure to enhance safety management levels. To further strengthen safety awareness and reduce the likelihood of accidents, Griffin simultaneously carried out training for all departments and the safety department. Griffin invited external experts to provide safety education training for all staff, with a 100% pass rate on exams.

Responsible Management

Griffin maintains a responsible attitude towards product quality, abiding by the Product Quality Law of the People’s Republic of China and other laws and regulations, to enhance product quality, optimise production processes, undertake digital construction and scientific research innovation, and undertake monitoring measures to ensure that the grade and moisture content of the concentrates meet customer expectations, and produce high-quality and qualified lead and zinc concentrates. Griffin has successfully passed the ISO 9001 quality management systems certification.

Product Quality Management

Griffin focuses on the quality of the concentrate it produces. After ore is mined it is fed to the mill for processing which includes crushing, milling, lead flotation, zinc flotation, lead concentrate dewatering, and zinc concentrate dewatering. Appropriate equipment for each process step has been installed taking due account of the characteristics of the ore, and latest mineral processing technology. Processes are continuously monitored to optimise production to ensure quality concentrates as efficiently as possible.

A three-stage and one closed-circuit crushing process has been installed at the Caijiaying Mine to crush the ore for screening before passing to the mill. In 2024, Griffin undertook a review of the crushing section to further optimise the crushing process and improve the operational efficiency.

A number of ball mills and cyclones have been installed in the processing plant, monitored to ensure the most advantageous fineness for flotation thereby optimizing recovery rates. Slurry in the milling process is sampled every half hour to test for key indicators such as moisture, granularity, and grade to take appropriate corrective action where necessary to ensure slurry quality.

Griffin performs detailed tests and analysis in the flotation circuits using automatic samplers to identify and rectify any issues during flotation and ensure recovery rates are maximised. Supplement manual samples are taken at key points in the flotation process to ensure the integrity of critical data. After immediate analysis of the samples, feedback is given to the operators to adjust the operating parameters and maintain the stability of flotation process and maximise recovery rates. In 2024, Griffin further reviewed zinc circuit processes to reduce the loss of zinc metal and improve the recovery rate and stability of the zinc circuit. Griffin engages professional third parties to review ore processing to maximise recovery rates and improve efficiencies.

A two-stage dewatering process, combining thickener and ceramic filters, to extract water to produce concentrates with a moisture content of some 10%. Lead and precious metals in concentrate are bagged for security and customer requirements.

Equipment is regularly inspected and maintained with shut downs planned to maintain the operational efficiency of the plant and equipment. In 2024, Griffin instigated a plant automation project in collaboration with Société Générale de Surveillance SA (SGS), with a view to introducing advanced automation equipment.

Intellectual Property Management

Griffin is committed to intellectual property protection, integrating intellectual property management into all activities. Griffin complies with all regulations concerning intellectual property rights and data protection. Griffin prohibits employees from engaging in any activities that may infringe upon other persons or entities confidentiality or intellectual property rights.

Digital Mining Construction

Computer aided systems play a key role in mining operations and development. The use of computer aided tools are critical in the planning and construction of a mine and management of operations thereafter, enhancing efficiencies, product quality, safety and environmental management. Griffin continually invests in research and development to support sustainable development, and market competitiveness. Griffin investigates innovative technologies, engages and cooperates with third parties to stimulate innovation. Griffin has formed talented technical teams for scientific and technological research. Griffin continues to provide funding to support technology innovation.

Griffin constantly seeks improvements in mining technologies introducing advanced digital software and tools, upgrading digital systems such as automated control systems, automated mine systems, and unmanned mine equipment. Griffin utilises 3D computer modeling of resource reserves, and resource management. Griffin investigates and uses digital technologies to modernise traditional production methods, including management of detonators and explosives. Programmable Logic Controller (PLC) control systems are used in crushing and grinding. Technologies used by Griffin include:

• Micromine 3D mining engineering software for ore block modelling, stope design and resource estimation.

• “Six systems for underground safety” for, inter alia, location of personnel underground, online monitoring, and gas detection.

• Intelligent remote control systems for underground water pumping stations, and surface ventilation fans.

• Frequency conversion control system to remotely adjust the operation of ventilation fans and air compressors.

• Ventsim mine ventilation software for efficient ventilation for the mine.

In 2024, Griffin continued to promote industry-universityresearch cooperation, maintaining collaboration with the University of Science and Technology Beijing to improve the quality of wet sprayed retaining walls and mixing stations. Griffin further co-operated with China ENFI Engineering Technology Co., Ltd on increased production and carried out exchanges with Dalian University of Technology to study ways to improve filling efficiency.

Protection of Rights and Interests of Customers

Griffin adheres to the principle of “promoting cooperation, mutual benefit”, and strives to improve product quality and after-sales service. Griffin monitors any complaints regarding its products to resolve any product related issues and protect customer rights and interests. Any post sale issue will arise from the grade of metals in concentrate and moisture content. The concentrates are assayed by both Griffin and the customer and by third party laboratories to resolve any discrepancies.

Griffin abides by the Personal Information Protection Law of People’s Republic of China, the Cybersecurity Law of the People’s Republic of China and other laws and regulations. Griffin ensures all customer information is kept confidential. Griffin only collects and retains information on business partners and customers necessary for the related business activities. Griffin designates specific personnel to be responsible for the management and encryption of customer files, minimising the risk of leaking confidential or sensitive information. Griffin arranges training for employees on information confidentiality management and has established a penalty mechanism to strictly prevent the occurrence of customer privacy leakage.

In 2024 Griffin did not receive any complaints or returns regarding product quality, did not recall products sold due to any safety or health concerns, and did not experience any breaches of customer privacy or business information.

Sustainable Supply Chain

Griffin recognizes the importance of supply chain management to ensure timely purchase and delivery of quality goods and services and has set formal procurement protocols. Griffin expects certain standards and conduct from all suppliers of goods and services and evaluates this through procurement management, logistics management, and information management. Griffin evaluates supplier performance based on a number of factors, including quality, price and delivery time. Griffin promotes the purchase of green and local goods and services while ensuring the quality of suppliers. Griffin has implemented an integrated “audit, evaluation, and supervision inspection” process for suppliers, setting clear requirements for them in terms of environment, compliance, health and safety.

Supplier Access and Daily Management

Griffin applies supplier standards, and undertakes regular supplier evaluations set out in Company policy documents such as the Selection and Evaluation of Suppliers and the Procurement Department Business Division Regulations. When considering suppliers regard is made to changes of production scale and production demand, combined with the requirements of risk management, cost control, quality control, laws and regulations. Griffin assesses supplier product prices through multi-party inquires and price comparison. Griffin prioritises suppliers who obtain professional qualification certifications such as quality management, environmental management, occupational health and safety management, and requires all suppliers to sign the Environmental Compliance Commitment Letter and includes those who have not signed the letter in the list of unqualified suppliers. For supplies of products such as mineral processing chemicals, Griffin focuses on quality assessments, taking samples to send to third-party authoritative institutions for analysis. Following which, Griffin will decide whether to cooperate with the supplier based on the quality tests and the opinion from the Production Technology Department. For suppliers of toxic chemicals and explosive chemicals, Griffin implements stricter controls requiring them to provide appropriate certificates such as hazardous chemical operating licences and will verify the authenticity and validity of the licenses through official channels to minimise potential risks.

Griffin will select and regularly evaluate suppliers based on quality, price, delivery time and other factors. Griffin will ensure timely delivery of goods with real-time integration of production, warehousing, and purchasing information. Griffin uses a ERP system to integrate supply chain information and monitor production progress in real time to ensure no interruptions in production. Griffin has developed supplier evaluation standards covering product quality, delivery capacity and price level, and evaluates suppliers’ performance in product quality, delivery and price based on supplier qualifications. If suppliers do not meet the relevant standards, or have or may have a significant negative impact on the environment and society, Griffin requires suppliers to rectify in a timely manner. Griffin will terminate any suppliers who do not meet such standards or requirements in respect of unwarranted delayed delivery, dishonesty, insolvency or poor after-sales service.

In 2024, Griffin evaluated 375 suppliers in total, with over 50% of the suppliers certified with professional qualifications.

Environmental and Social Risk Management

Griffin continually seeks to improve standards for suppliers, whilst minimising environmental and social risks. Griffin communicates with suppliers through various channels sharing information to assist suppliers to enhance their awareness of environmental and social risks.

Griffin actively monitors updates in policies, laws and regulations to manage the environmental and social risks that suppliers may face. Griffin has established an evaluation system covering environmental management, labour rights, business ethics and other relevant areas, and regularly collects information on suppliers to evaluate their performance. When purchasing equipment, building materials, steel, chemicals and other products, Griffin contractually requires suppliers to abide by the latest national and local laws and regulations to ensure transportation safety and vehicle emission compliance. Griffin will request relevant compliance certification. Griffin gives priority to suppliers with quality management, environmental management and occupational health and safety management qualifications. When purchasing underground trackless vehicles, the equipment is required to meet the emission standard of the Limits and Measurement Methods for Exhaust Pollutants from Diesel Engines of Nonroad Mobile Machinery (GB 20891-2014).

Griffin actively take various measures to guide suppliers to use environmentally friendly products. Griffin is committed to establishing long-term and stable cooperative relationships with suppliers who adopt environmentally friendly products or services, and incorporate environmental protection requirements into the contract terms. For suppliers who refuse to accept the concept of green environmental protection and refuse to make improvement, Griffin will terminate the cooperative relationship in order to avoid serious environmental damage caused by their actions. Griffin continues to strengthen communication and cooperation with suppliers, conduct regular training, share best practices on sustainable development with suppliers, enhance suppliers’ understanding of sustainable development, encourage suppliers to bring good benefits by using environmentally friendly products or services, and enhance suppliers’ awareness of environmental protection.

Griffin requires suppliers to sign a Legal Employment Commitment, confirming adherence to requirements and standards on health and safety. Griffin prohibits the employment of child labour, and ensure that employees receive reasonable and legal remuneration on a regular basis. Griffin places importance on the legitimate rights and interests of employees. Griffin checks the fulfillment of suppliers’ social responsibilities, and gives priority to suppliers where Griffin has experienced good service and cooperation from the supplier. Griffin will immediately terminate the relationship with a supplier if Griffin finds that the supplier has violated the rules that directly or indirectly lead to serious human rights violations, conflicts, environmental damage or damage to business ethics. Griffin observes the local market, and will prioritize local high-quality suppliers, protect the legitimate rights and interests of local suppliers, promote the consolidation and development of cooperative relations with local suppliers, and help local economic development while reducing procurement costs.

As of 31 December 2024, Hebei Hua Ao had 434 suppliers in total, of which 430 were in Mainland China and 4 were in other countries and regions.