TCL Conflict Mineral Announcement

Understanding Conflict Minerals

Conflict minerals are minerals mined in conditions of armed conflict and human rights abuses, notably in the eastern provinces of the Democratic Republic of the Congo and neighboring countries. The most commonly mined minerals are cassiterite, wolframite, coltan, and gold, which are extracted from the Eastern Congo. Minerals mined in Eastern Congo pass through the hands of numerous middlemen as they are shipped out of Congo, through neighboring countries such as Uganda of Burundi, to East Asian processing plants. Because of this, the US Conflict Minerals Law applies to materials originating (or claimed to originate) from the DRC as well as the nine adjoining countries: Republic of the Congo, South Sudan, Uganda, Rwanda, Burundi, Tanzania, Zambia, Angola, and Central African Republic.

A recent study conducted by IPIS indicates that armed groups are present at more than 50% of mining sites. At many sites, armed groups illegally tax, extort, and coerce civilians to work. Miners, including children, work up to 48 hour shifts amidst tunnel collapses that kill many people.

TCL's Commitment to Responsible Sourcing

TCL is a worldwide well-known mobile manufacturer. TCL holds a zero-tolerance attitude towards any activities that impede the legitimate rights and interests of human rights. This commitment has led the Company to devote resources to the due diligence program by OECD and RMI, auditing its supply chain to determine if the metals contained in TCL products are sourced from the nine covered countries as well as conflict-affected and High-Risk Areas (CAHRA). This initiative is integral to the development of TCL's core strategy and a significant driver of TCL's sustainable development.

Minerals such as tantalum, tin, gold, and tungsten are essential in the manufacture of electronic products, including mobile phones, digital cameras, laptops, game machines, and MP3 players. Given that many of these minerals are mined in the Congo, it presents a significant challenge for electronic products to avoid using these conflict minerals. However, TCL believes that with the support of all relevant stakeholders, including cooperative partners, employees, clients, and society, TCL can play a significant role in prohibiting the use of conflict minerals.

Supplier Requirements and Due Diligence

TCL encourages all suppliers to actively and positively coordinate with TCL to complete the questionnaire of the Responsible Minerals Initiative (RMI). Based on the policy above, TCL requires its suppliers to sign a Declaration: Not use conflict minerals, and conduct Conflict Mineral surveys for their relevant suppliers using the latest RMI_CMRT template at the product level. Furthermore, suppliers are required to update the report annually or whenever there is any change. All applicable smelter information received from suppliers will be reported in TCL's RMI_CMRT report. The reports collected in the recent year are version 6.31.

Summarized information received during the declaration period indicates that all conflict minerals in TCL's supplier chain originate from smelters or refineries that meet the RMAP audit protocols. However, TCL has established processes and rules for situations where a supplier uses or purchases metals sourced from smelters or refineries not on the active/conformant list. These actions include:

• Remove the smelters or refineries from their supply chain, or;
• Provide an improvement plan verified by TCL to replace or encourage the Smelter or Refiner to validate conformance with RMAP standards.