Notes of Supplier Selection for Procurement

I. Vision Objectives of Procurement:

1. To put sunshine purchase into practice and create the strategic value.

2. To establish a cooperation environment of equality, mutual benefit, respect, transparency, development and win-win.

3. To be committed to providing supply chain services in a timely, accurate, high-quality and cost-effective manner.

II. Principles of Procurement Management:

1. Principle of authorization: the company authorizes the Supply Chain Guarantee Department as the only organization for 

business commitments to suppliers (business commitments include but are not limited to, supplier selection, contract, order, 

price, stock); other departments’ similar commitments to supplier bypassing the Purchasing Department are invalid, illegal 

behaviors;

2. Principle of integrity: cooperation with suppliers and all business activities must follow the standards of integrity and 

business ethics;

3. "Just, open and fair" is the basic principle for the procurement business behaviors. The Purchasing Department is responsible 

for obtaining the best overall value for the company, ensuring the openness of purchase behaviors, the fairness of treating 

suppliers, and the impartiality of purchasing decisions.

4. The products provided by suppliers must be in accordance with the contract requirements: delivery according to the quality, 

quantity and time.

III. Qualified Supplier Certification Process:

Supplier certification includes:

1. Access qualification certification: including two steps of data collection (company profile, business license, tax registration 

license, quality, safety certification, etc.) and qualification audit.

2. Investigation and certification: according to different circumstances, the content of certification includes three parts, i.e. 

quality system, technological process, business.

3. Sample certification: aiming to determine whether suppliers can supply products that meet quality requirements. The contents of 

the audit include, but are not limited to precision and reliability.

4. Evaluation, examination and approval: after the completion of the audit work, the results of certification should be evaluated 

comprehensively to determine whether the supplier is qualified.

5. Signing of relevant agreements: after approval, suppliers need to sign relevant agreements about procurement (product quotation, 

order signing, delivery packaging, invoice, after-sale service, etc.).

6. Access: only when the above conditions are satisfied or the agreement has been signed, does the supplier meet access conditions.

Welcome suppliers with good faith, ability and intentions of cooperation to join our company’s upstream supply guarantee chain!