Purpose

1、Yanyi Group adheres to the business ethics and corporate governance standards of integrity, law-abiding, compliance, and transparency. It actively advocates and maintains a fair and just corporate environment. Employees of the group and external individuals are welcome to report any fraud and other irregularities existing in the operation process of Yanyi Group and its affiliated companies.

2、This policy aims to clarify Yanyi Group's policies and commitments regarding reporting and protecting whistleblowers, and to explain in detail how to report fraud and other irregularities.

3、This policy applies to employees of Yanyi Group and its affiliated companies (including ordinary employees, directors, supervisors, and senior management personnel), and also applies to third parties (such as customers, suppliers, etc.) having business dealings with Yanyi Group.

Matters for Reporting

Whistleblowers (including but not limited to employees or third parties) can report any fraud and other irregularities related to the group, including but not limited to the following matters:

1、Unauthorized use of certificates;

2、Disclosure of confidential information or damage to important business data;

3、Illegal pursuit of personal gain;

4、Dereliction of duty;

5、Fraudulent practices;

6、Theft of property;

7、Improper behavior and attitude;

8、Spreading negative or false information;

9、Having a conflict of interest with customers;

10、Potential safety hazards and safety accidents;

11、Chaotic relationships;

12、Absence from work without reason;

13、Illegal acts.

Policy for Protecting Whistleblowers

1、Confidentiality of reports: Except for disclosures in accordance with legal provisions or transferring fraud cases to the judicial department for handling, Yanyi Group will keep the received reporting materials confidential and strictly protect the identity information of whistleblowers.

2、Prevention of retaliation: Yanyi Group ensures that whistleblowers who truthfully report under this policy are treated fairly, including protecting whistleblowers from unfair dismissal, persecution, or improper disciplinary actions. Any acts of retaliation against whistleblowers and witnesses will be severely dealt with.

3、Priority for real-name reporting: Real-name reporting is encouraged, which is convenient for contacting whistleblowers to understand the reported matters and providing feedback on the investigation results to whistleblowers.

4、Anonymous reporting: Whistleblowers who do not want to reveal their identities can make anonymous reports.

Reporting Channels

1、Reporting by mail: Yanyi Group, located on the north side of Xinqu 8th Road and the east side of Fuyang 3rd Road, High-tech Zone, Hengshui City, Hebei Province; Zip code: 053000; To be received by the Director of Audit and Supervision (Jasper).

2、Reporting by phone: 13785888062

3、Reporting by text message: 13785888062

4、Online reporting: The official website of Yanyi Group

5、If relevant persons report fraud issues to their direct superiors or department heads, the superiors or department heads must transfer the reported issues to the Group Audit Committee.

Investigation and Handling

1、For clues of fraud and other irregularities of group personnel found through complaints, reports, accidents, case handling, audits, or other means, a responsibility determination team composed of the finance, operation, and business departments will conduct investigations, verifications, responsibility determinations, and loss assessments. In accordance with the Group's Red Line Management Measures, a investigation report and handling opinions will be submitted to the Audit Committee.

2、The Decision-making Committee will hold a special meeting to listen to the investigation report and handling opinions of the Audit Committee, and discuss and make decisions on the handling opinions.

3、The Human Resources Center will inform the persons in violation of the regulations, as well as their affiliated units and departments of the handling decision. If the persons in violation of discipline are not satisfied, they can submit a written appeal to the responsibility determination team within 3 days. If the responsibility determination team deems it necessary to conduct a re-investigation, it will conduct a review within 7 days and issue a written handling decision to inform the persons in violation of discipline. The Human Resources Center will implement the final handling decision, sign a penalty notice with the person in charge of the responsible management department, submit the notice to the finance department for filing, and the finance department will deduct the performance salary according to the corresponding penalty.

4、The Human Resources Center will file the relevant materials of the persons in violation of discipline into their personal files, and notify the event process, responsibility determination, and handling results. For violations of discipline caused by external information sources such as external customers, shareholders, and the media, the company's administrative department will promptly feedback the handling decision to the units and individuals of the information sources of the violations of discipline.

Investigation and Handling

Whistleblowers must report truthfully. If a whistleblower makes a false report, Yanyi Group reserves the right to pursue their legal responsibilities in accordance with the law. If an employee makes a false report, the company has the right to dismiss him/her.