In order to improve the stability of the supply chain, the Group carries out supply chain risk management with full participation of all employees, covering the prevention of risk events in advance, control during the event and improvement after the event.

The Group adopts measures such as multi-level suppliers, mutual trust in the supply chain, cooperation contracts, information sharing, and the establishment of a business sustainability plan (BCP) with a sustainable development supply chain as the main content, in order to cope with the climate environment, policies and regulations, quality , EHS, logistics, capital and other factors’ impact on the supply chain.

At the same time, in order to standardize the management of emergency procurement emergency plans, enhance the pertinence, practicality and operability of procurement emergency plans, and ensure the safety of supply, the centralized procurement center has formulated the "Procurement Emergency Plan Management System" to regulate the operation of the procurement business department. Supervise the situation and provide special training to relevant personnel. The induction training for new salesmen also includes the contents of the emergency plan to ensure the implementation of the emergency plan.

Emergency procurement of materials includes but is not limited to the following situations:
1. The production area urgently increases or adjusts production, and the inventory of production materials is insufficient;

2. National and local policy adjustments have a significant impact on material supply;

3. Major suppliers stop production or reduce production due to accidents or other negative impacts, which has an impact on the material supply library;
4. Major emergencies, natural disasters, epidemic control, etc. have a significant impact on material production or transportation;
5. Our own An accident occurs during the transportation of materials that affects the safety of the goods;
6. The impact of international finance and exchange rates, and the international trade environment and influence, leading to a sharp increase in prices or affecting supply;
7. The quality of purchased goods is substandard or defects occur during the production process Problems that affect production and use ; 

8. Serious adverse drug reactions or mass adverse events occur in preparation sales products at home and abroad, and they are suspected to be related to material quality;

9. EHS impacts such as abnormal climate impacts, national environmental protection regulations and policies, labor human rights impacts, business ethics impacts, etc.;

10. Other emergencies that may have a significant impact on material supply.