[...] the Company’s Xinjiang-based subsidiaries strictly adhere to the laws and regulations of the People’s Republic of China (the “PRC”), as well as fundamental international labour and human rights standards, including the United Nations Guiding Principles on Business and Human Rights and the International Labour Organization Declaration on Fundamental Principles and Rights at Work, resolutely oppose all forms of forced labour and other violations against employees’ rights and interests. All recruitment, resignation and other activities adhere to the principle of voluntariness, and the personal freedom of employees is respected. A market-oriented and competitive compensation policy, where salary levels are higher than the local average by 34%, is adopted. Smooth communication and grievance mechanisms have also been established, and the rights to negotiation of employees and trade unions are fully respected. Besides, the Company has established a responsible supply chain management system in accordance with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals, ensuring that its suppliers and contractors adhere to the Corporate Code of Conduct of the Company at the same time. No credible evidence regarding the existence of forced labour within the supply chain has been identified or received. The Company expresses deep regret and shock over the unsubstantiated allegations from the U.S. Department of Homeland Security, which are not based on factual grounds. [...]