Local procurement

Local Procurement Percentage

Qisda strives to implement local procurement to establish a closer cooperative relationship with suppliers and improve supply efficiency and support local economic development. Based on the procurement ratio of Qisda in 2024, the local procurement ratio of Qisda in China was 75.8%, the local procurement ratio in Vietnam was 85.9%, and the local procurement ratio in Taiwan was 51.8%.

Conflict Mineral Management

Being a global citizen, Qisda supports the boycott activities of the international society for conflict minerals and establishes the Qisda Conflict Mineral Commitment. In addition, we refer to the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas of the Organization for Economic Cooperation and Development and work with the suppliers to perform conflict mineral investigations in order to prevent direct or indirect purchase of the conflict minerals by the suppliers. To mitigate risks related to sustainability, continuous supply, and compliance associated with single raw materials, our company regularly seeks alternative sources for all materials used.

We have developed an internal management procedure. After the review, we return the documents to the suspected supplier for confirmation. In case of confirming that the supplier uses a smelter not listed in the Responsible Minerals Assurance Process (RMAP), we will ask it to fill in the implementation plan and inform it of related risks. In 2024, a total of 215 suppliers were investigated. By signing the Code of Conduct for Sustainable Development of Suppliers, we ensure compliance with the OECD's relevant requirements for conflict minerals.

• In 2024, the proportion of suppliers signing the Code of Conduct for Sustainable Development of Suppliers was 100%.