Employee Rights and Interests

1.Protection of employee rights and interests.The Company follows the eight core principles related to basic human rights of the International Labor Organization (ILO) and the relevant requirements of the United Nations Universal Declaration of Human Rights and other conventions, so as to provide employees with an equal and harmonious working environment. Under the strict implementation of the requirements of laws such as the Labor Law of the People's Republic of China, the Labor Contract Law of the People's Republic of China, and the Juvenile Employee Protection Law, the Company standardizes the management of employees’ labor contracts, protects the legitimate rights and interests of employees, and ensure legal and compliant labor use in accordance with the Employee Handbook of Yibin Grace Co., Ltd. The Company has formulated the Code of Conduct for Social Responsibility to protect employees’ right of free choice, resolutely resists the use of child labor and forced labor, and avoids any workplace discrimination based on race, religion, gender, age, marital status, disability or nationality

2.Remuneration and welfare.The Company provides all employees with generous remuneration and welfare. The Company has formulated the Salary Payment Management Regulations and provides employees with “Five Insurances and One Fund” (including endowment insurance, employment injury insurance, medical insurance, maternity insurance, unemployment insurance and housing provident fund), and the social insurance coverage rate reaches 100%; it implements a series of vacation policies such as the national statutory vacation system and paid annual vacation; it also provides employees with high-quality benefits such as accommodation, transportation, family visitation, and physical examination. In addition, the Company also provides funds to organize employees to regularly carry out team building activities, selects and rewards outstanding employees every year, regularly offers care to employees in need, and carries out assistance activities for employees in need, etc.

3.Diversity and equal opportunity.The Company supports the diversity and equal opportunities of employees, opposes discrimination, provides equal employment opportunities for female employees and minority employees, and gives full play to employees’ personality characteristics and self-worth. The Company actively protects the legitimate rights and interests of female employees, adheres to the principle of gender equality, ensures that the female employees can enjoy equal labor rights and social security rights with male employees, and strictly implements the regulations on the leave of pregnancy, childbirth, and lactation period for female employees, and the regular physical examination. The Company actively encourages female employees to participate in the democratic management of the Company, and realizes a proper number of female employees as the leading members.

4.Communication and participation.The Company follows the requirements of laws and regulations such as the Trade Union Law of the People’s Republic of China, the Articles of Association of the Trade Union of China, the Provisions on the Election of Grass-roots Trade Union Organizations, the Provisions on Grass-roots Trade Union Member Congress, the Provisions on the Work of Enterprise Trade Unions, and the Provisions on the Democratic Management of Enterprises to establish trade union organizations, so as to protect and guarantee the vital interests of employees. The Company respects the autonomy of the trade union, cooperates with and strongly supports their work, gives full play to their role, and jointly builds a more harmonious labor-capital relationship. The Company has been awarded as the national and industrial “Enterprise with Harmonious Labor Relationship” many times.

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