Universal Scientific Industrial

Conflict Minerals refer to tantalum, tin, tungsten, gold (3TG), and other minerals from the Democratic Republic of Congo and its neighboring countries, where the armed groups use forced labor, human right abuses, and other illegal means to mine, sell and fund weapons, causing regional unrest. Tantalum, tin, tungsten, and gold are minerals necessary for the functional operation of electronic products. In order to fulfill the social responsibility of human rights and environmental protection, USI has placed a conflict-free mineral procurement policy, and promises not to use conflict minerals, and requires suppliers to gradually purchase minerals from conformant smelters to reach a conflict-free supply chain and customer requirements.

USI Corporate Policy for Sourcing Conflict Minerals

The mining and distribution of “conflict minerals1” originating from the Democratic Republic of the Congo (the “DRC”) are sometimes controlled by violent organizations in order to fund conflict in that country and adjacent regions. Our industry supply chains are inadvertently subject to metals derived from these conflict minerals which can be introduced through the metals we use such as gold, tin, tantalum and tungsten. Universal Scientific Industrial (Shanghai) Co., Ltd. and all its affiliates (hereafter collectively referred to as “USI”) is dedicated to the elimination of these conflict minerals in our supply chain and to using only responsibly sourced conflict-free minerals2. We expect our suppliers to source conflict-free minerals from smelters or refineries that have been certified by an independent third-party audit program to fulfill our objective. It is also our objective to support the continued use of conflict-free minerals from the DRC and its adjacent regions such that responsible mining is not diminished. We exercise due diligence with our suppliers on the origin and supply chain of minerals in accordance with the “OECD Due Diligence for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas” to establish conflict minerals management mechanism.

To protect the human rights, health and environment for workers in the material production areas, we commit to widening the scope of investigation and information disclosure; in addition to gold, tin, tantalum and tungsten, more minerals (such as cobalt and mica) will be included gradually from conflict-affected and high-risk areas("CAHRAs") in accordance with the Responsible Minerals Initiative ("RMI") standards. USI requires suppliers must support this policy by the following guidelines and widen their scope of investigations and disclosures to continuously strengthen our responsible sourcing programs.

• A. Being diligent in their assessment and validation of their supply chains to ensure USI’s objectives of a transparent supply chain, and conflict-free purchases as inputs to the services and products we produce.
• B. At all times be in compliance with all regional and international regulations for conflict minerals.
• C. At all times be in compliance with industry standards for the sourcing and reporting of conflict minerals.
• D. Being diligent and accurate in their formal assurances of conflict-free minerals provided to us.

*Conflict minerals include columbite-tantalite (coltan), cassiterite, gold, wolframite, or their derivatives as defined in the Dodd-Frank Act section 1502 and SEC Rule 13p-1 under the Securities Exchange Act of 1934.
**Conflict-free minerals are conflict minerals that through their distribution directly or indirectly do not benefit violent organizations in the Democratic Republic of Congo and its adjacent regions.

USI continues to promote the procurement of conflict-free minerals to the supply chain, and expanded supply chain due diligence. In 2021, a total of 416 suppliers completed the CMRT (Conflict Minerals Reporting Template) survey. In addition, we completed the CRT (Cobalt Reporting Template) survey of 150 suppliers, response rate reached 100%.

Number of Qualified Suppliers:

In the three product lines of USI, System in Module, Visual Products, and Advanced Mobile Products accounts for a total of 75% company revenue, sourced from qualified 3TG smelters.

Qualify smelter numbers and 3TG Distributions:

Product Line	System in Module			Visual Product			Advanced Mobile			Qualify Smelter Percentage
Materials/ Status	Conformant	Active	Non-Participating	Conformant	Active	Non-Participating	Conformant	Active	Non-Participating
Tantalum	38	-	-	37	-	-	39	-	-	100%
Tin	55	12	-	55	11	-	55	12	-	100%
Tungsten	42	6	-	42	1	-	42	6	-	100%
Gold	109	6	-	109	1	-	109	6	-	100%

Independent Private Sector Audit and Public Disclosure

1.Every year , USI undergo IPSA² on the results of supplier due diligence and our targeted supplier³ used 100% only from qualified smelters.

2.USI as a subsidiary of ASEH, discloses conflict minerals investigation results through ASEH annal Conflict Minerals report filing to the US Security and Exchange Commission. For complete Conflict Minerals report: