Since 2016, Huayou has openly and transparently discussed and took measures on the challenges of child labour in cobalt procurement in the DRC. Meanwhile, according to the UN, OECD and CCCMC's responsible supply chain management guide, we have established and operated the  first responsible cobalt supply chain due diligence system based on the six-step framework in the whole industry. We work closely with all suppliers and customers to meet and exceed all global environmental, social and governance (ESG) standards relevant to our business. This includes a zero-tolerance policy towards forced labor or child labour. Our business is regularly independently audited in accordance with globally recognized standards for responsible procurement, including the "OECD Due Diligence Guidance for Responsible supply Chains of Minerals from Conflict-Affected and High-Risk Areas", and actively adheres to the "UN Guiding Principles on Business and Human Rights".

On 5 April, 2020, the company announced that it was banning hand-mined cobalt from entering our cobalt supply chain until a related standard was established. While the company has suspended procurement, we remain committed to working with partners such as the Responsible Minerals Initiative (RMI) to monitor and mitigate ESG risks in mines related to our business, including child labour, as well as with organizations such as the Responsible Critical Minerals Initiative (RCI) and the Fair Cobalt Alliance (FCA), through active engagement and efforts to improve conditions for workers and mining communities.