Risk assessment

	Longchen P&P has executed relevant risk evaluation for important subjects in accordance with Corporate Social Responsibility Best Practice Principles, and according to the risk after evaluating, established risk management policy as follows：
	Important Subject Risk Evaluation Item Risk Management Policy Environment Energy Efficiency Enhancement / Environmental Pollution Prevention / Response to Climate Change 1.Upholding the concept of energy saving and carbon decreasing, driving energy management system complied with international standards. 2.Achieving the basic requirement of complying with environmental protection regulations with proper pollution technology and equipment, and committing to observing other requirements. 3.Keeping improving, resource saving, recycling and other pollution precautions, expecting that the environmental impact of the industry will decrease to the lowest. 4.Establishing and practice environmental goals through document standardization, PDCA management circulation; additionally holding employee training, making the personnel participate in the activities of cherishing resources and protecting the environment. 5.Timely disclosing environmental policies for the public, being neighborly and landscaping to raise corporate image, and achieve the goal of sustainable operation. Society Relationship of Labor and Capital / Occupational Safety and Health / Sustainable Supply Chain 1.Cultivating the excellent talent recognized company culture, prospect and core value, collectively striving to achieve Longchen P&P’s missions. 2.Practicing risk evaluation and improvement of safety and health in the factory, establishing Safety Committee, weekly discussing risk matters of safety and health in the factory, and progress of various improvement, announcing important work safety matters in morning meeting at regular intervals. 3.Choosing eco suppliers, executing safety and health management for main suppliers. Corporate Operating and Governance Regulation Compliance / Information Protection and Trade Safety Establishing operating strategy and industry culture of emphasizing risk management, and considering the results after qualifying and quantifying the risk management as the reference of establishing operating strategy.