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The Value Chain

Customer Relations

Customer Focus has always been one of WNC’s core value. WNC’s Customer Service Section is managed by the Quality Assurance Division and is responsible for customer-service tasks. Pertinent business groups or units, the quality assurance group, R&D, production planning, and manufacturing units are designated as the point-of-contact for each different customer. According to project needs, customers and pertinent point(s)-of-contact participate in weekly and monthly meetings to review product development progress and each item’s achievement rate. Each business group/unit, also appoints representatives to participate in a quarterly supplier business review meeting with their respective customer to immediately communicate and build mutual trust.

Local Sourcing

Based on calculating the purchase amount of raw materials, components, and production consumables from different regions, WNC’s main suppliers were from Taiwan, accounting for 43% of the total in 2019, while suppliers from mainland China accounted for approximately 23%. Other suppliers were from Europe, America, and other parts of Asia.

Locations of WNC’s Suppliers in the Last Three Years

42 % 44 % 43 % 25 % 24 % 23 % 6 % 4 % 4 % 6 % 8 % 11 % 9 % 9 % 8 % 12 % 11 % 11 % 201 7 201 8 201 9 Taiwan China the U.S. the U.K Singapore Others

Green Procurement

Supplier Code of Conduct

WNC has formulated the "WNC Supplier Code of Conduct" and requires all new suppliers to sign the “Supplier CSR Declaration” and the “WNC Group Supplier's Commitment for Code of Ethics,” in which they shall declare their commitment to fulfilling social responsibilities, guarantee and promise to ban child labor and forced labor, implement occupational safety and health management, fight against bribery and corruption, promote fair trade, and support employees’ freedom of association and bargaining rights with management. WNC also asks its suppliers to fill out the "WNC Supplier CSR Questionnaire" in order to ascertain supplier’s implementation outcome in the areas of labor, health and safety, environmental protection, management systems, and business ethics.

CSR Audit

WNC launched its supplier corporate social responsibility audit (hereinafter referred to as the "supplier CSR audit") program, in which different types of major suppliers are divided into A (high risk), B (moderate risk) and C (low risk) according to the level of risk they exhibit in aspects of labor, ethics, health and safety, and environment and management systems. Further, WNC requests select suppliers to conduct a CSR audit based on: "top 10 suppliers in previous year’s incoming quantities without being audited in the past year;" "strictly complying with customers' CSR requests;" and "prioritized deficiencies in previous year’s audit," and includes them in the annual CSR audit scheme. With the exception of specific suppliers designated by customers, Group C suppliers are only subject to document review given the low level of risk they exhibit, while the other two groups of suppliers must undergo supplier CSR audits according to the following four steps and be assessed on aspects of labor, ethics, health and safety, environment, and management systems.

L a b or E n v i r o n m e n t E t h i c s M g m t . S y s t e m He a l t h & S af e t y Freely chosen employment Abolition of child labor Standardized working hours Wages and benefits Humane treat - ment Non-discrimina - tion Freedom of association Environmental legal compliance and reporting Pollution preven - tion Avoidance of hazardous substances Wastewater and solid waste treatment Materials restric - tions Business integrity Legal compliance Organization and responsibility Policy and process Operation and evaluation Occupational safety and machine maintenance Avoidance of occupational injury and illness Health and safety communication Living conditions A Mechanical design suppliers in the fields of PCBs, paint, plastic injection parts, chemical plating, and stamped parts B Electromechanical design suppliers in the fields of antennas, packaging materials, wiring, adapters, connectors, and passive components C Other electronic material suppliers 1 Suppliers complete corporate social responsibility training and self-evaluation. 2 WNC designates personnel to audit each supplier’s production line and office. 3 WNC requires that suppliers address nonconformities in a timely manner and make continuous improvement. 4 Perform a complete audit and report the results. 3 Types 4 Steps 5 Aspects

Prohibition of Conflict Minerals

WNC conducts annual surveys on use of conflict minerals to conform whether the smelters associated with our suppliers participate in the Responsible Minerals Assurance Process (RMAP). WNC’s suppliers are required to pledge that materials or products provided to WNC do not contain conflict minerals that directly or indirectly finance or benefit any armed groups in the Democratic Republic of Congo (DRC) and its adjoining countries as defined in Section 1502 of the U.S. Dodd-Frank Act, and that they will comply with other international conflict minerals laws and regulations. WNC encourages suppliers to assist smelters that have not participated in RMAP to do so and to strive to be qualified smelters in accordance with the RMAP stipulations.

Contractor Management

WNC has drawn up a Contractor ESH Management Procedure to ensure the safety of both contractors and WNC employees, maintain facility safety, and observe related labor health and safety regulations. This document clearly demarcates the powers and responsibilities of company units and contractors and describes ESH issues requiring attention. Contractors are required to sign a "Commitment to Work Safety for Contractors in the WNC Plant" before applying to conduct in-plant operations, and are required to participate in the Notification of in-plant hazards and educational training for safety and health organized by the Industrial Safety Dept.