Social Responsibility – Topbi International Holdings Limited

Evaluation project	Operation situation
1. Implementation of corporate governance （I）Whether the company has set up a corporate social responsibility policy or system, and review the implementation effect regularly? （II）Does the company regularly organize social responsibility education training? （III）Is the company set up to promote corporate social responsibility (part-time) units and to be empowered by the board of directors to process and report to the board of directors? （IV）Does the company establish a reasonable remuneration policy，and to combine employee performance appraisal system with corporate social responsibility policy, and establish a clear and effective reward and punishment system?	Yes Yes Yes Yes	(I) The company has now established a corporate social responsibility policy or system, it provides other important information that will help to understand the corporate social responsibility. (II) The company holds the social responsibility education training program for employees on a regular basis to strengthen the cognition of the social responsibility of employees. (III)The company has a dedicated unit of corporate social responsibility at the board of directors, the board of directors has authorized senior management, and to report to the board of directors. (IV)We have established a reasonable wage policy, and we have on a regular basis to provide training for our employees, to strengthen our staff’s awareness of corporate social responsibility, and to improve the skills of our employee in order to pursuit better operational performance	There are no significant differences. There are no significant differences. There are no significant differences. There are no significant differences.
2.Development of a sustainable environment （I）Is the company committed to improving the utilization efficiency of various resources and using recycled materials with low impact on the environment? （II）Does the company establish an appropriate environmental management system according to its industrial characteristics? （III）Does the company pay attention to the influence of climate change on operating activities, and perform the scrutiny of greenhouse gases, to develop energy saving carbon reduction and greenhouse gas reduction strategy?	Yes Yes Yes	(I)Our company is committed to improving the utilization efficiency of various resources and encourages the employees to promote low-carbon office and water-saving electricity. (II)The subsidiary company – Topbi (China) Fashion Corporation Limited is a subsidiary company for research and sales, which is not related to relevant environmental pollution problems; The other subsidiary, Fujian SDO Textile & Industry Goods Corp., Limited has no business activity and does not involve in relevant environmental pollution problems. (III)Be aware and timely adjust the company’s operating location and office air conditioner temperature to achieve the goal of energy saving and carbon reduction.	There are no significant differences. There are no significant differences. There are no significant differences.
3.Maintaining social welfare （I）Does the company formulate relevant management policies and procedures in accordance with relevant regulations and international human rights conventions? （II）Does the company establish employee complaint mechanism, and completed the optimal processing? （III）Does the company provide employees safe and healthy working environment, and implement the safety and health education for employees on a regular basis? （IV）Does the company establish a mechanism for regular communication with the employee and notify in a reasonable way about operational changes that may have a significant impact on the employee? （Ⅴ）Does the company establish effective ability of career development for employees training plan? （Ⅵ）Does the company establish policies and procedures for the development, procurement, production, operation and services to protect consumer rights and interests? （Ⅶ）Does the company follow the marketing and labeling of products and services, the relevant laws and regulations and international standards? （Ⅷ）Prior to starting a relationship with suppliers, does the company evaluate the supplier’s past experience of influencing the environmental and social records? （Ⅸ）Is the contract between the company and its major supplier, including the supplier, such as policy relating to the violation of its corporate social responsibility, and the provision of the termination or cancellation of the contract at any time when there is a significant impact on the environment and society?	Yes Yes Yes Yes Yes Yes Yes Yes Yes	(I)The company has formulated relevant management policies and procedures in accordance with relevant regulations and international human rights conventions. (II)The company has been specially responsible for the staff grievance mechanism and pipeline from the executive center and should be properly handled。 (III)The company has been in accordance with the construction of public security, fire prevention and other relevant laws and regulations to provide employees with a safe and healthy working environment, as well as educational training for employees. (IV)The company has established a direct line of communication between management and staff, and in case of any operational changes that may significantly affect the operation, notice should be given to staff on the notice board. (（V）The company has established an effective career development training program for employees and regularly conducts relevant training. （VI）The company in accordance with related laws and regulations in mainland China, formulate related after-sales service, in order to protect consumers’ rights and interests. （Ⅶ）The company has complied with relevant regulations and international standards for the marketing and labeling of products and services. (（Ⅷ) The company shall promotes corporate social responsibility in the future and will consider the appropriate opportunity to cooperate with suppliers to promote corporate social responsibility. （Ⅸ）The company’s major suppliers, such as those involved in violation of their corporate social responsibility policies, will deal with the seriousness of the case when there is a significant impact on the environment and society.	There are no significant differences. There are no significant differences. There are no significant differences. There are no significant differences. There are no significant differences. There are no significant differences. There are no significant differences. There are no significant differences. There are no significant differences.
4. Enhance the disclosure of information （I）Does the company disclose information about the relevance and reliability of corporate social responsibility in its website and public information observatory?	Yes	(I)The company discloses the relevant information on corporate social responsibility of correlation and reliability, and further disclosed on the company’s website and public information observatory in accordance with relevant regulations。	There are no significant differences.
5.If the company has its own corporate social responsibility code according to the code of practice on corporate social responsibility of the listed company, please explain the difference between its operation and the code of practice: the company has established the code of practice on corporate social responsibility of the listed company, and there is no significant difference.
1.Other important information which contributes to an understanding of corporate social responsibility operation situation: the company has set up the professional unit of corporate social responsibility in the board office, the 2017 annual corporate social responsibility policy specific promotion plan and implementation results.In the following table:
7.The corporate social responsibility report should be explained in the form of verification by the relevant authorities. The company has passed ISO 9001:2008 international quality management system certification, ISO 14001:2004 environmental management system certification, OHSAS 18001:2007 occupational health and safety management system certification.

Evaluation project

Operation situation

The differences and reasons of the code of practice on corporate social responsibility of the listed company

Yes

Summary

1. Implementation of corporate governance

（I）Whether the company has set up a corporate social responsibility policy or system, and review the implementation effect regularly?

（II）Does the company regularly organize social responsibility education training?

（III）Is the company set up to promote corporate social responsibility (part-time) units and to be empowered by the board of directors to process and report to the board of directors?

（IV）Does the company establish a reasonable remuneration policy，and to combine employee performance appraisal system with corporate social responsibility policy, and establish a clear and effective reward and punishment system?

Yes

(I) The company has now established a corporate social responsibility policy or system, it provides other important information that will help to understand the corporate social responsibility.

(II) The company holds the social responsibility education training program for employees on a regular basis to strengthen the cognition of the social responsibility of employees.

(III)The company has a dedicated unit of corporate social responsibility at the board of directors, the board of directors has authorized senior management, and to report to the board of directors.

(IV)We have established a reasonable wage policy, and we have on a regular basis to provide training for our employees, to strengthen our staff’s awareness of corporate social responsibility, and to improve the skills of our employee in order to pursuit better operational performance

There are no significant differences.

2.Development of a sustainable environment

（I）Is the company committed to improving the utilization efficiency of various resources and using recycled materials with low impact on the environment?

（II）Does the company establish an appropriate environmental management system according to its industrial characteristics?

（III）Does the company pay attention to the influence of climate change on operating activities, and perform the scrutiny of greenhouse gases, to develop energy saving carbon reduction and greenhouse gas reduction strategy?

Yes

(I)Our company is committed to improving the utilization efficiency of various resources and encourages the employees to promote low-carbon office and water-saving electricity.

(II)The subsidiary company – Topbi (China) Fashion Corporation Limited is a subsidiary company for research and sales, which is not related to relevant environmental pollution problems; The other subsidiary, Fujian SDO Textile & Industry Goods Corp., Limited has no business activity and does not involve in relevant environmental pollution problems.

(III)Be aware and timely adjust the company’s operating location and office air conditioner temperature to achieve the goal of energy saving and carbon reduction.

There are no significant differences.

3.Maintaining social welfare

（I）Does the company formulate relevant management policies and procedures in accordance with relevant regulations and international human rights conventions?

（II）Does the company establish employee complaint mechanism, and completed the optimal processing?

（III）Does the company provide employees safe and healthy working environment, and implement the safety and health education for employees on a regular basis?

（IV）Does the company establish a mechanism for regular communication with the employee and notify in a reasonable way about operational changes that may have a significant impact on the employee?

（Ⅴ）Does the company establish effective ability of career development for employees training plan?

（Ⅵ）Does the company establish policies and procedures for the development, procurement, production, operation and services to protect consumer rights and interests?

（Ⅶ）Does the company follow the marketing and labeling of products and services, the relevant laws and regulations and international standards?

（Ⅷ）Prior to starting a relationship with suppliers, does the company evaluate the supplier’s past experience of influencing the environmental and social records?

（Ⅸ）Is the contract between the company and its major supplier, including the supplier, such as policy relating to the violation of its corporate social responsibility, and the provision of the termination or cancellation of the contract at any time when there is a significant impact on the environment and society?

Yes

(I)The company has formulated relevant management policies and procedures in accordance with relevant regulations and international human rights conventions.

(II)The company has been specially responsible for the staff grievance mechanism and pipeline from the executive center and should be properly handled。

(III)The company has been in accordance with the construction of public security, fire prevention and other relevant laws and regulations to provide employees with a safe and healthy working environment, as well as educational training for employees.

(IV)The company has established a direct line of communication between management and staff, and in case of any operational changes that may significantly affect the operation, notice should be given to staff on the notice board.

(（V）The company has established an effective career development training program for employees and regularly conducts relevant training.

（VI）The company in accordance with related laws and regulations in mainland China, formulate related after-sales service, in order to protect consumers’ rights and interests.

（Ⅶ）The company has complied with relevant regulations and international standards for the marketing and labeling of products and services.

(（Ⅷ) The company shall promotes corporate social responsibility in the future and will consider the appropriate opportunity to cooperate with suppliers to promote corporate social responsibility.

（Ⅸ）The company’s major suppliers, such as those involved in violation of their corporate social responsibility policies, will deal with the seriousness of the case when there is a significant impact on the environment and society.

There are no significant differences.

4. Enhance the disclosure of information

（I）Does the company disclose information about the relevance and reliability of corporate social responsibility in its website and public information observatory?

Yes

(I)The company discloses the relevant information on corporate social responsibility of correlation and reliability, and further disclosed on the company’s website and public information observatory in accordance with relevant regulations。

There are no significant differences.

5.If the company has its own corporate social responsibility code according to the code of practice on corporate social responsibility of the listed company, please explain the difference between its operation and the code of practice: the company has established the code of practice on corporate social responsibility of the listed company, and there is no significant difference.

1.Other important information which contributes to an understanding of corporate social responsibility operation situation: the company has set up the professional unit of corporate social responsibility in the board office, the 2017 annual corporate social responsibility policy specific promotion plan and implementation results.In the following table:

7.The corporate social responsibility report should be explained in the form of verification by the relevant authorities.

The company has passed ISO 9001:2008 international quality management system certification, ISO 14001:2004 environmental management system certification, OHSAS 18001:2007 occupational health and safety management system certification.