Stakeholders

The Company has established the “Supplier Code of Conduct” (please refer to the link for details), requiring suppliers to comply with relevant standards on topics including labor and human rights, occupational safety and health, environmental protection, and ethical norms (including ethical corporate management and anti-corruption and anti-bribery, intellectual property rights, fulfillment of raw material procurement responsibilities, privacy, and information security). In accordance with the “Supplier Evaluation Procedures,” suppliers are evaluated for compliance with national laws and industry standards based on legality, good reputation, safeguarding employees’ rights and interests, and emphasis on food safety and environmental protection, as conditions for supplier approval. A cross-departmental team conducts supplier evaluations to assess suppliers’ compliance with relevant laws and regulations and urge improvements, establishing a sustainable supply chain management mechanism.

The Company’s supply chain management practices are as follows：

＜On-site evaluation of new suppliers＞

• 1.Qualification screening:We evaluate suppliers from multiple perspectives, including legality, compliance with factory sample specifications, quality management, and emphasis on food safety.Suppliers must submit relevant documents for evaluation, including business and factory registration certificates, as well as system certifications such as ISO 22000,ISO 9001, or HACCP. These documents are used to assess the soundness of the supplier's systems and plans.
• 2.Sample evaluations:Suppliers are required to provide product samples for inspection by our quality control unit to ensure product quality and safety.
• 3.On-site evaluations:Before entering into formal transactions with new suppliers, Grape King Bio conducts on-site evaluations through an interdepartmental team comprising procurement, quality control, manufacturing, and quality assurance personnel. Our evaluation team conducts irregular audits and reviews on raw material suppliers, who are required to provide relevant documents such as factory management and control documentation, production history, analysis of product hazards or Certificates of Analysis (COA), and other information. We also conduct actual inspections of production and operation areas to evaluate ESG-related criteria such as renewable energy usage, occupational safety and health audits and training (including the most recent fire inspection records and fire drill attendance logs), occupational safety and health management procedures, business continuity planning (e.g., backup power supply in case of outages), status of mechanical equipment, quality and designs, raw material management, process control, finished product management, corrective actions for abnormalities, and customer complaint handling. In 2025, we conducted on-site evaluations of 18 new suppliers.
• 4.Tracking improvements for audited items:After conducting on-site evaluations, we ask suppliers to respond to and discuss our suggested improvements before conducting a second review of overall evaluation results and responses. We halt collaborations with suppliers who have major deficiencies or incompetencies until improvements are implemented.  After the new supplier has completed the initial on-site evaluation and become an existing supplier of Grape King Bio, we continue to conduct on-site evaluations at existing suppliers from time to time to ensure that the supplier maintains its internal quality management system, as well as other systems including environmental hygiene, food safety are effectively implemented, which is to prevent slackness and encourage continuous improvement among suppliers.
• 5.At the time of contract signing: New suppliers are required to sign our "Supplier Code of Conduct" and "Supplier Integrity Commitment Letter" to ensure that they uphold sustainability commitments throughout their operations and production processes.

＜Continuous monitoring of qualified suppliers＞

• Grape King Bio conducts regular annual evaluations of our Tier-1 suppliers,including raw material suppliers and outsourcing vendors, with whom we engage in transactions. Apart from the four main aspects including Q (Quality), C (Cost),D (Delivery), and S (Service), evaluations and scoring are based on anti-corruption and anti-bribery considerations which are incorporated in response to ISO 37001 in 2025. These aspects are also used as a basis for risk management. We prioritize on-site visits to existing suppliers that have had major abnormalities in quality and signif icant suppliers of raw materials. Of our 144 evaluation items, 21 are ESG-related evaluation items.

＜Supplier ranking management＞

• According to the annual regular evaluation results of suppliers, Companies that scored above 81 were deemed to be Class A (excellent) suppliers, those that scored between 65-80 were deemed to be Class B (qualified) suppliers, and those that scored less than 65 were deemed to be Class C (unqualified) suppliers.
• The results of the supplier audit conducted in the past three years are shown in the table below： 

• We will cease procurement from unqualified suppliers, provide assistance in the form of consultation and counseling, and set clear goals and timelines for improvement so that suppliers can improve their current conditions and meet Grape King Bio expectations. These evaluation cycles and counseling mechanisms facilitate early detection of potential problems as we work with our suppliers to continually improve and refine relevant issues.
• Our evaluation team conducts irregular audits and reviews on raw material suppliers,who are required to provide relevant documents such as factory management and control documentation, production history, analysis of product hazards or Certificates of Analysis (COA), and other information. We also conduct actual inspections of production and operation areas to evaluate ESG-related criteria such as renewable energy usage, occupational safety and health audits and training (including the most recent fire inspection records and fire drill attendance logs), occupational safety and health management procedures, business continuity planning (e.g., backup power supply in case of outages), status of mechanical equipment, quality and designs, raw material management, process control, finished product management, corrective actions for abnormalities, and customer complaint handling. 

＜Contractor Management＞

• Grape King Bio adheres to government procurement regulations when selectingcontractors through procurement evaluation, price comparison, or price negotiation procedures in an open and fair manner. We prioritize collaborations with domestic suppliers. 
• We have designed"Hazard Prevention Notices"for our contractors and implement a strategy that combines counseling, auditing, and dissemination as we actively work to provide safety management guidance to our contractors, strengthen promotion of work safety measures, and enhance  worker awareness of labor safety prior to construction work within our factories to ensure that we maintain safety protections and labor safety in workplace environments.