1. Management and Policies

During the reporting period, we revised the Code of Business Conduct, which clarifies how we should perform business ethics and legal responsibilities as a company, specifies the professional ethics and legal framework we need to comply with in conducting business activities, and covers the basic principles and norms applicable to the internal behavior of the group as well as those involving external partners and the public. The code is applicable to all employees of the Company. In 2022, the Company provided the full text of this specification and compliance training courses for all employees.

2. Anti-corruption

We strictly comply with the legal requirements on anti-corruption in the jurisdictions where the Group and its member companies operate, and have developed the Integrity Manual in accordance with relevant regulatory requirements such as the United Nations Convention against Corruption, the anti-corruption principles of Transparency International, to reduce integrity risks and enhance the competitiveness of the Company.

The Code of Business Conduct clearly stipulates the relevant provisions of anti-money laundering. We strictly comply with the Anti-Money Laundering Law of the People's Republic of China and the relevant procedures of the Company, as well as all accounting, bookkeeping and financial reporting regulations applicable to cash and payments for other transactions and contracts, and encourage employees to promptly report suspicious behavior of clients, consultants and business partners in the course of their work. Our goal is to work with clients, consultants and business partners who conduct legitimate business activities.

3. Whistleblower Protection

We allow and encourage employees and stakeholders to complain and report the facts or other fraud or violations in violation of the Code of Business Conduct and laws and regulations to the supervisor or human Resources Department, the Company Internal Audit Department, the Group Compliance Committee and other relevant departments. We strictly implement the Anti-fraud and Whistleblowing Management Regulations and other employee complaint and whistleblowing management procedures and establish special reporting channels in various forms, including email, hotline, and mailing address，etc. We stipulate that the internal audit department of the board of directors is responsible for accepting, investigating and handling complaint or reporting cases. We clearly stipulate that all the reported information will be kept confidential from the informant, and the staff who accept the complaint or participate in the investigation shall not provide the relevant information and report content of the informant to any department or individual without authorization. Although we encourage employees to report issues in their real names, all complaints/reports can be submitted confidentially, and we promise to keep confidential the personal information of the informant, the content of the report, and all reported documents to the extent permitted by law. We will not tolerate any retaliation against the informant, or those who disclose the informant's information in violation of regulations or take retaliation against the informant. Any person who divulges the information of a whistleblower in violation of regulations or takes retaliation against the whistleblower will be given a warning, demotion, or dismissal upon approval by the Internal Audit Department to the Audit Committee or the Board of Directors, who violate the law shall be transferred to judicial organs for handling according to law.

4. Training and Ability Enhancement

We train business ethics for all employees of CTI. In addition, we identify the integrity risk levels of different positions every year and carry out targeted training and special learning activities.

During the reporting period, we launched a training courseware on the E-Learning platform for all employees of the Company to learn the Code of Business Conduct. At the same time, according to the requirements of ESG management improvement of the Company, the internal audit department developed the E-Learning course of Training on Anti-Fraud. During the reporting period, the group's anti-fraud training coverage rate was 100%. The Company has formulated the Integrity Manual for the integrity management, which clearly stipulated the management mechanism of integrity training. We identified positions with high integrity risk including but not limited to: procurement, engineering construction or engineering subcontracting, investment and merger and acquisition, sampling, testing subcontracting, inspection, audit, certification, accounting, cashier and other positions. For personnel with high integrity risk, we use transparent procedures to standardize the work process, clarify the integrity responsibility of employees, and carry out supervision and inspection. For all personnel in middle and high integrity risk positions, we organize the systematic integrity training every year, and evaluate the effect of the training. The integrity specialists of each department are responsible for the supervision of the training.

5. Responsible Operation

Fair competition

We strictly abide by the principle of fair business conduct and follow the Law against Unfair Competition of the People’s Republic of China, prohibiting employees from disclosing company information to competitors, maliciously spreading false information about competitors or their products, damaging the commercial honor of competitors, and conducting activities violating fair competition, anti-monopoly or bidding rules.

Legal tax payment

We fulfill our tax obligations every year with the support of external and internal tax experts and in accordance with national tax regulations. All of our tax planning needs to be consistent with the principles of sustainability, corporate responsibility and risk management.

Intellectual property right

We attach great importance to intellectual property protection and respect proprietary technology, and formulate the Intellectual Property Rights Management Regulations to standardize the management of intellectual property of the Company. We stipulate that the research institute is the intellectual property management department of the Company, and the technology development department is responsible for the basic management of intellectual property rights. We develop the procedure of Protecting Customer Secrets and Ownership Rights to ensure effective protection of customer property and intellectual property. We strictly prohibit conducting and participating in activities and activities that infringe the intellectual property rights of other companies or individuals. At the same time, while exercising the protection of our own intellectual property rights, we have also put the expectations and basic needs of the society and the industry into our corporate consideration.

Advertising

CTI complies with the Advertising Law of the People's Republic of China, formulate the Publicity Management System of CTI, standardize the Company's information management and publicity work, adhere to the responsible marketing, and strictly prohibit all forms of false publicity. We are committed to showing the market its service ability and competitive advantages, and maintain absolute authenticity and objectivity, and strictly prohibit false advertising.