Ningbo, 1st of July 2017

I hereby confirm with pleasure that Haitian International Holdings Limited reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this first annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Mr. Zhang Jianming
CEO of Haitian International Holdings Limited

Haitian International Holdings Limited (short "Haitian") has from its inception always kept a staunch commitment to the principles of human rights, labour rights, environment protection and sustainability as well as anti-corruption and fair business.
The company has also always acted according to the local laws and regulations of the PR China and has according to the ten UN Global Compact Initiative principles defined the following principles, policies and goals in terms of Human Rights, which can be found and have been distributed to all employees in form of our company's Code of Ethics (first drafted in August 2016):

1. Prohibition of Child Labor: Haitian has adopted a policy that strictly prohibits employment of child labor.
2. Elimination of Forced Labor: Haitian is committed to ensuring freedom of choice and movement in employment and actively seeks to eradicate all forms of forced and / or compulsory labor.
3. Non-discrimination: Haitian and its employees are forbidden from any sort of workplace or career management discrimination, especially but not only on the basis of gender, skin color, nationality, sexual orientation, age, health, disability, political or philosophical orientations, religion and / or trade union membership or sympathies.
4. Sexual Harassment: Haitian forbids and admonishes, in particular, any conduct which can be interpreted as sexual harassment, regardless of either party's relationship to the company or to each other.

Additionally to the Code of Ethics, these and related topics can be found in the company's employment contract as well as in the Haitian handbook which is distributed to all new employees. Also, applicable principles can be found in the company's supplier contract.

In the second half of 2016, the first draft of Haitian's Code of Ethics was published and additionally to the company's handbook which is distributed to all employees made available to all staff members.
The company has also started to organise regular trainings for all employees, especially team leaders and higher executives, to communicate and raise awareness about the general idea of human rights as well as implications on the company's everyday life operations in regard to Human Rights.
For years, Haitian, especially but not limited to the work by the Haitian Charity Foundation has organised and funded events to raise awareness for certain unprivileged groups or to fundraise or help these groups or the local community.
These events include on-time actions like fundraising events, camps or charity days, but also regular activities like financial support for members of the local community, support for medical, educational and household expenses and other supporting activities (community service, free maintanace of bicycles or electronics etc.) organised by charity foundation members or other employees of Haitian.

Haitian has set the respect for general human rights as a rule to its employees by making it part of its Code of Ethics as well as its handbook. Any breach with the Human Rights principles would be seen as a violation of the company's regulations and rules and can result in penalties or in dismissal, according to each individual case.
Employees aware of any violations to the principles and regulations established in the Code of Ethics are encouraged to bring these violations to the attention of his or her superior, either through the company internally or through the external procedure as stated in chapter V of the company's Code of Ethics.

The company has in 2016 participated in the Ecovadis survey, which provides an external assessment of the company's social responsibility performance. The areas covered in the Ecovadis survey are human and labor rights, environment, anti-corruption and fair business.

Haitian International Holdings Limited (short "Haitian") has from its inception always kept a staunch commitment to the principles of human rights, labour rights, environment protection and sustainability as well as anti-corruption and fair business.
The company has also always acted according to the local laws and regulations of the PR China and has according to the ten UN Global Compact Initiative principles defined the following principles, policies and goals in terms of Labor Rights, which can be found and have been distributed to all employees in form of our company's Code of Ethics (first drafted in August 2016):

1. Prohibition of Child Labor: Haitian has adopted a policy that strictly prohibits employment of child labor.
2. Elimination of Forced Labor: Haitian is committed to ensuring freedom of choice and movement in employment and actively seeks to eradicate all forms of forced and / or compulsory labor.
3. Non-discrimination: Haitian and its employees are forbidden from any sort of workplace or career management discrimination, especially but not only on the basis of gender, skin color, nationality, sexual orientation, age, health, disability, political or philosophical orientations, religion and / or trade union membership or sympathies.
4. Sexual Harassment: Haitian forbids and admonishes, in particular, any conduct which can be interpreted as sexual harassment, regardless of either party's relationship to the company or to each other.
5. Promotion of Health and Safety in Workplace: Implementation of policies which work to remove and prevent workplace health and safety hazards and continually monitor and improve these policies.
6. Contract Rights: Haitian is committed to promote fair and open contract consultation and negotiations.
7. Social Redeployment: Haitian is committed to continuously adapt to current trends and regulations regarding sustainable business and employee development. Any restructuring within the company will only happen after detailed and exhaustive dialogue, with an emphasis on the following: 1) continuously developing the employability of all its employees, 2) promoting mobility within the company, 3) considering the unique situation of every local environment and prioritizing local solutions, 4) involving employee representatives whenever possible, 5) developing and promoting progressive, goal-oriented approaches to any and all challenges, 6) treating all employees equally and justly
8. Development / Work Training: Haitian is committed to the responsibility of promoting the professional development of young people by cultivating access to different jobs and internships within the company for students and recent graduates. The company is committed to actively promote, regardless of gender, age or position, the full developmental training and career management of its employees. The company also considers the internal professional development of its employees as an integral factor in its success. As such, employees of the company and its subsidiaries are actively encouraged to participate in their own career development, with an emphasis on upward social and geographic mobility.
9. Social security and other benefits: Haitian provides the following benefits to its employees in China and in all overseas locations according to the applicable regulations to ensure its employees social security and health: 1) social security program incl. medical, work injury and retirement insurance schemes, 2) paid annual leave, 3) overtime-work compensation, 4) regular medical check-ups.

Additionally to the Code of Ethics, these and related topics can be found in the company's employment contract as well as in the Haitian handbook which is distributed to all new employees. Also, applicable principles can be found in the company's supplier contract.

Haitian's HR department is not only responsible to ensure that child labor and all forms of forced and / or compulsory labor are non existent within the company, it is also the department implementing the non-discrimination policy.
The staff members of the HR department also make sure that all employees are covered by the social security program, receive compensation for overtime work and are invited to regular medical check-ups.
The safety division not only informs all employees at the beginning of their careers as well as on a regular base about safety measurements (notes, trainings, demonstrations and rehearsals as well as the internal monthly "Safe Manufacturing Report" journal).
Employees receive regular trainings and opportunities to develop certain skills or deepen knowledge, but the company also offers a variety of recreational clubs and after-work activities (such as Tai-Chi, football, music, calligraphy etc.) as well as company paid travels on a regular base. In doing so, Haitian not only tries to ensure its employees are able to maintain a healthy work life balance, it also strengthens the company culture.
Haitian employees do also profit from a variety of benefits, such as loans to buy housing or cars, medical care and financial support, cheap or free housing within the company real estates as well as paid annual leave.

Workers have the option to join the Haitian International Holdings Limited internal worker's union, which covers all employees through several different divisions. Workers may bring their concerns or reports (e.g. violations of principles) to their representatives in the union.
In addition, the company now also offers a free WeChat Feedback Platform where employees can post comments anonymously. All personal information is kept strictly confidential.

Haitian has set the respect for general human and workers rights as a rule to its employees by making it part of its Code of Ethics as well as its handbook. Any breach with these principles would be seen as a violation of the company's regulations and rules and can result in penalties or in dismissal, according to each individual case.
Employees aware of any violations to the principles and regulations established in the Code of Ethics are encouraged to bring these violations to the attention of his or her superior, either through the company internally or through the external procedure as stated in chapter V of the company's Code of Ethics.

The company has in 2016 participated in the Ecovadis survey, which provides an external assessment of the company's social responsibility performance. The areas covered in the Ecovadis survey are human and labor rights, environment, anti-corruption and fair business.

Haitian International Holdings Limited (short "Haitian") has from its inception always kept a staunch commitment to the principles of human rights, labour rights, environment protection and sustainability as well as anti-corruption and fair business.
The company has also always acted according to the local laws and regulations of the PR China and has according to the ten UN Global Compact Initiative principles defined principles, policies and goals in terms of environment, which can be found and have been distributed to all employees in form of our company's Code of Ethics (first drafted in August 2016):

Haitian has implemented policies and protocols aimed at respecting the environment and is working towards its protection. In addition, the company also educates all employees on their responsibilities to respecting the environment, focusing on the following commitments: 1. the reduction of waste and pollutants, conservation of natural resources and recycling of materials throughout the manufacturing process, 2. the monitoring and limiting of energy consumption in order to reduce harmful emissions, 3. the establishment of a sustainable development policy and the implementation of pollution-reducing technology.

Haitian has established an environmental protection division for the assessment, the establishment of policies and goals as well as the implementation and evaluation regarding environmental responsibility; areas covered are: energy consumption, resource consumption, and pollution control.

Haitian's main products are hydraulic and electric plastic injection moulding machines and the manufacturing process can be mainly divided into processing of parts and components, assembling different parts and the testing of finished products. The main energy consumed during the manufacturing process is electricity and natural gas. The metal surface-processing includes painting, cleaning and powdering emits gas and consumes water and the packaging of finished products entails usage of packaging materials. Our manufacturing process will produce waste water, oil and gas and other industrial waste which, after specific steps of processing, will be emitted into the environment and dispensed into public sewage systems or collected by licensed contractors for toxic-removal processing according to applicable regulations and standards.
The company has adopted a specific policy on prevention of pollution and handling of industrial waste for all Haitian factories in China with reference to the applicable rules and regulations. The factory managers are responsible for implementing such policy to ensure all factories are able to comply with the environmental related rules applicable to their locations. For the overseas factories, we engage experts in the early design phase and during their operation to ensure that Haitian is able to comply with the environmental and waste disposal regulations in the relevant countries or districts.
Under applicable Chinese laws and regulations, any facility that will involve emission of gas, water and / or toxic- waste into the environment during its production process will require an environmental impact assessment to be performed before its construction to ensure that the legal requirements on emission would be satisfied. After the construction is completed, a post-completion check will be implemented. Before commencement of operation, the facility operator has to apply for an emission permit. Haitian has completed the environmental impact assessment for all its production facilities in China based on applicable regulations at the time of its construction and obtained the required emission permits.

Even though Haitian is not part of a pollution-intensive industry, the company pays high attention to the environmental impacts of the manufacturing process and its products and is committed to adopt measures in order to reduce the generation of industrial waste as well as to properly handle residual materials and lower the consumption of resources.
By making sustainability and environmental responsibility part of its Code of Ethics, the company hopes to raise awareness among its employees. Any breach with the principles regarding environment protection would be seen as a violation of the company's regulations and rules and can result in penalties or in dismissal, according to each individual case.
Employees aware of any violations to the principles and regulations established in the Code of Ethics are encouraged to bring these violations to the attention of his or her superior, either through the company internally or through the external procedure as stated in chapter V of the company's Code of Ethics.

The company has in 2016 participated in the Ecovadis survey, which provides an external assessment of the company's social responsibility performance. The areas covered in the Ecovadis survey are human and labor rights, environment, anti-corruption and fair business.

Haitian has set up an Environmental Protection Division in the group which is responsible for monitoring the environmental related work of all factories. It will conduct random assessments on the status of environmental protection measures for different factories and their compliance with the company's policy. They will also provide updates on the latest development and issues for environmental protection relevant to the company's operation.
Haitian has also adopted specific regulations for processing of waste generated from the manufacturing process and its implementation is continuously monitored by the Environmental Protection Division. Haitian has set up a detailed recording system for the processing of toxic waste that require special treatment under applicable regulations. This ensures the company is able to comply with such regulatory requirements and allows cross-checking of the status of different check-points in the system.
The company has last but not least implemented a reward and penalty mechanism for environmental protection within the group. Haitian encourages new measures for enhancement in energy consumption, emission reduction and pollution control with rewards and discourage failures in meeting environmental benchmarks with penalties. In 2016, the company succeeded in reducing phosphate waste through setting up new pollution control equipment. Haitian will continue to adopt latest technology and more efficient equipment to reduce waste generated in the manufacturing process and their impacts on the environment.

Haitian International Holdings Limited (short "Haitian") has from its inception always kept a staunch commitment to the principles of human rights, labour rights, environment protection and sustainability as well as anti-corruption and fair business.
The company has also always acted according to the local laws and regulations of the PR China and has according to the ten UN Global Compact Initiative principles defined the following principles, policies and goals in terms of anti-corruption, which can be found and have been distributed to all employees in form of our company's Code of Ethics (first drafted in August 2016):

1. Use of Company Services, Funds and Assets: Haitian strictly forbids any unlawful or unapproved use of company services, funds or assets. The company, its subsidiaries and its employees are strictly prohibited from engaging in the pursuit of special benefits or purchasing privileges or attempting to facilitate these practices through the use of bribery, gratuity or exchange of benefits. Similarly, the company and its agents are prohibited from accepting any benefits, cash or otherwise, in exchange for preferential treatment or in violation of any local laws or regulations.
2. Restrictions on Gifts: Haitian strictly forbids any employee or agent of the company from accepting any gift or gratuity from its business partners, either ongoing or potential, in any form beyond a reasonable level of hospitality. Likewise, it is strictly forbidden for any employee or agent to offer any form of benefit, cash or otherwise, with the goal of receiving preferential treatment for the individual or Haitian.

Additionally to the Code of Ethics, these and related topics can be found in the company's employment contract as well as in the Haitian handbook which is distributed to all new employees. Also, applicable principles can be found in the company's supplier contract.

Haitian adopts a zero-tolerance policy on illegal activities such as bribery, extortion, fraud and money laundering in the company's operation. Any employee or officer involved in such activities will have their employment terminated and relevant acts reported to the authority. Haitian also requests its suppliers in China to undertake that no benefit or gift, in whatever form, will be provided to the company's employees or officers in the course of business activities. Business relationships with any supplier which breaches such undertaking will be terminated.

Haitian has set its anti-corruption principles as a rule to its employees by making it part of its Code of Ethics as well as its handbook. Any breach with the principles regarding anti-corruption would be seen as a violation of the company's regulations and rules and can result in penalties or in dismissal, according to each individual case.
Employees aware of any violations to the principles and regulations established in the Code of Ethics are encouraged to bring these violations to the attention of his or her superior, either through the company internally or through the external procedure as stated in chapter V of the company's Code of Ethics.

The company has in 2016 participated in the Ecovadis survey, which provides an external assessment of the company's social responsibility performance. The areas covered in the Ecovadis survey are human and labor rights, environment, anti-corruption and fair business.