Sustainable Procurement Policy

Fitipower is a professional fabless semiconductor design company, whose business development is closely interconnected with its supply chain partners. We fully recognize that sustainable procurement is pivotal to building corporate resilience and ensuring sustainable operations. We therefore commit to leveraging our procurement influence to collaborate with partners across the value chain, mitigate sustainability risks, and create shared opportunities.

This Policy is developed with reference to the ISO 20400 Sustainable Procurement Guidance and supports the Company’s “Human Rights and Diversity Inclusion Policy,” “Environment, Health and Safety Policy,” “Biodiversity and No Deforestation Policy,” “Business Ethics Policy,” “Information Security Policy,” and “Sustainable Supplier Code of Conduct.” It emphasizes leveraging procurement influence to strengthen supply chain management, thereby implementing the principles of the foregoing policies and relevant international standards. This Policy applies to the Company and its subsidiaries, joint ventures, and other group-affiliated entities over which the Company exercises substantive control. “Suppliers” under this Policy include, but are not limited to, outsourced suppliers, manufacturers, service providers, and contractors.

We Commit To:

• Ensure that each purchase requisition is necessary and reasonable, while taking into account life-cycle costs and social benefits, and proactively adopt more sustainable procurement practices. Such practices include, but are not limited to, local sourcing; prioritizing materials with lower environmental footprints and circular attributes; low-carbon logistics and transportation; and selecting products or services that promote employment and quality of life for disadvantaged groups.

• Ensure that suppliers comply with the Universal Declaration of Human Rights (UDHR), the UN Global Compact, the International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work, and the Responsible Business Alliance (RBA) Code of Conduct; take actions consistent with these principles; treat their employees and business partners with dignity; and require their own supply chain partners to adhere to the same principles.

• Ensure that product materials do not contain minerals sourced from conflict-affected and high-risk areas (CAHRAs), including but not limited to gold, tin, tantalum, tungsten, cobalt, and mica. In alignment with the OECD Due Diligence Guidance, require suppliers to periodically submit the most recent CMRT or EMRT, as applicable, using the RMI-developed templates, and to implement corrective actions and risk mitigation measures for high-risk sources.

• In accordance with relevant international standards and customer requirements for hazardous substances management, require suppliers to implement restricted substance management and information disclosure, including RoHS, REACH (including SVHC), halogen-free requirements, and customer-specific prohibited and restricted substances lists, to ensure that product design and manufacturing comply with applicable regulatory requirements.

• Avoid sourcing key raw materials from biodiversity-sensitive hotspots, including areas defined internationally or nationally as critical habitats or designated as nature reserves. Implement responsible sourcing for forest-related products used in operations (e.g., paper-based materials).

• Establish a product carbon footprint management mechanism, and require suppliers to conduct carbon footprint assessments for relevant products, materials, and components, perform greenhouse gas inventories, and assess climate-related risks and opportunities, while continuously improving data quality to achieve the Company’s decarbonization targets (across Scopes 1, 2 and 3) and to support the Company’s disclosures and assurance and audit activities in accordance with applicable international standards and regulatory requirements (including GRI, IFRS S2, ESRS, etc.).

• Ensure transparency and fairness in procurement, strictly prohibit any unethical procurement practices (including but not limited to kickbacks, acceptance of improper benefits, and conflicts of interest), and maintain procedural integrity through internal oversight mechanisms.

• Require suppliers to establish and maintain appropriate information security management mechanisms, properly control access permissions and fulfill confidentiality obligations, and prevent unauthorized access, use, or leakage of the Company’s and customers’ confidential information and personal data during collection, processing, transmission, and storage; and in accordance with contractual and legal requirements, conduct incident reporting and response.

Management Approach

• Integrate sustainability requirements into its procurement processes and supplier management system, establish mechanisms for sustainable supplier selection and tiering, and use the Sustainable Supplier Code of Conduct and relevant contractual provisions as the baseline compliance requirements for suppliers.

• Conduct due diligence, risk assessments, and tiered management based on factors such as supplier category, supply criticality, geopolitical/regulatory risks, and sustainability-related risks. Where necessary, the Company may require suppliers to provide supporting documentation or undergo on-site/remote audits.

• Periodically review suppliers’ sustainability performance, require nonconforming suppliers to implement corrective actions within a specified timeframe, and track corrective action progress. For material nonconformities, refusal to improve, or repeated violations, the Company will take necessary actions based on risk, including restricting transactions, suspending cooperation, or terminating the business relationship.

• Establish an accessible and confidential communication mechanism with suppliers and other partners to clearly convey the Company’s policies and related requirements, and provide training or advisory resources as needed to enhance supply chain sustainability capabilities; implement whistleblower protection and a non-retaliation principle. Suggestions or reports may be submitted through the following channels:

• Establish performance indicators for sustainable procurement and supplier management (such as due diligence results, evaluation outcomes, and remediation status), regularly track progress, and report to management and disclose externally as appropriate, in order to continuously enhance sustainable procurement governance and supply chain management effectiveness.