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Corporate social responsibility (hereinafter will be referred to as “CSR”) is strongly advocated by Focuslight Technologies Inc (hereinafter will be referred to as “Focuslight”). We firmly believe that corporate management which undertakes responsibilities can enhance the corporate value. CSR enables us to early identify various risks and opportunities and adjust our response strategies in a timely manner. We are actively promoting the construction of our environmental, health and safety management system, labor rights protection system, business ethics system, environmental management system, occupational health and safety system and other systems. CSR is an integral part of our corporate strategy and corporate development process. We are making a positive contribution to the development of our employees, the environment and society.

1.Compliance with the law and keep integrity in running business

Wherever and whenever possible, compliance with the law is our top priority. Focuslight adheres to the business principles of honesty and trustworthiness, creates a mutual benefit and win-win situation between our customers and us, and maintains a long-term good partnership with our customers and suppliers. We strictly abide by relevant national laws, regulations, departmental rules and norms, including export control laws, environmental protection laws, safety production laws and labor protection laws. We respect our customers, employees and investors. We fulfil our contractual obligations actively, operate our business legally and provide service in good faith. At the same time, we are committed to drive our employees to jointly comply with the law and build a society based on the rule of law.

We comply with the export control rules and customs regulations of the countries in which we operate our business, and our relevant staffs are obliged to comply with existing sanction regulations, export control regulations and custom laws and regulations as well as relevant guidelines and procedures in their work.

2.People-oriented, and protecting the interests of employees

Focuslight is people-oriented and respects the rights and interests of its employees. We do not discriminate against employees, do not engage in forced labor, do not subject employees to physical punishment and abuse. We respect freedom of association as permitted by law, do not use child labor, and our employees’ working hours, wages and benefits are complied with regulatory requirements, and is making continuous improvements to maintain compliance with regulatory requirements.

For us, our employees are not resources, but independent individuals whose abilities and skills are the most valuable things in our organization. We not only provide our employees with a stable platform for development, reasonable wages and salaries, but also offer attractive training opportunities. In addition, the health of our employees and their safety in the workplace are of paramount importance. The company provides equal opportunities for all employees and does not discriminate on the basis of their age, gender, nationality, religion, color or sexual orientation. The individual abilities and potentials of our employees are significant. We encourage employees from different geographical areas to work together to find innovative solutions, develop new markets and find new customers. The company respects and recognizes the right of employees to consult collectively through the establishment of a Staff Council to improve the working environment.

3.Business Ethics

Focuslight’s business principles are based on the principle of fair trading. Therefore, employees must not accept kickbacks, bribes, secret commissions or other personal favors. We do not advocate the acceptance of gifts or entertainment by employees in order to avoid influencing or potentially influencing employees to make objective and fair business decisions. In our opinion, any deceptive behavior which, subjectively and objectively, causes loss and harm to the interests of any party to the cooperation will be considered a breach of the code of business ethics.

Focuslight has established a Code of Business Conduct for this purpose and employees have signed an Integrity Pledge, which obliges each employee to comply with the laws of the region and country in which the Company is located. This includes, but is not limited to, laws relating to the acceptance of bribes and kickbacks, copyright, trademarks and trade secrets, privacy of information, insider trading, giving or receiving payments, harassment at work, environmental protection, occupational health and safety, false or misleading financial information or misuse of company’s assets. We prohibit any and all forms of corruption, extortion and misappropriation of public funds and has implemented monitoring and enhanced procedures to ensure compliance with Company requirements. Focuslight’s employees are prohibited from offering or accepting bribes or other forms of improper gain, and for this purpose, we have established relevant standards and offer regular compliance training for our personnel.

We take fairness and transparency very seriously and anyone reporting a suspected breach in good faith need not to be fear of adverse consequences.

We also expect our business partners to act with integrity in their business dealings, and for this purpose, we will carefully scrutinize our business partners upon request and ensure that they respect our recognized business codes of conduct as much as we do.

Each employee has a duty to maintain trade secrets and company’s confidential information, and other non-public information entrusted to Focuslight or otherwise received during the course of their employment. We also respect and protect the trade secrets of other companies.

We are committed to complying with data protection and information security regulations. We will protect personal data of employees, customers and suppliers and we will only record, process and use personal data to the extent that is permitted by law, regulations and internal guidelines and policies. We will actively promote the establishment of a high standard of IT security system.

The Company does not tolerate insider trading and the law prohibits the use of insider information to buy or sell securities or to give advice on buying or selling securities. A breach of this law will have serious consequences for both the employee concerned and the company. Therefore, Focuslight is committed to keep insider information confidential.

4.Protection of intellectual property rights

The protection of intellectual property is a requirement of CSR and is key to the success of Focuslight’s business. The company respects intellectual property rights and has established an Intellectual Property Management Procedure to ensure that the transfer of technology and production experience of the company and its customers is effectively protected. Intellectual property protection is a requirement of CSR. Focuslight respects intellectual property rights and has established a number of intellectual property-related systems and regulations, including the Intellectual Property Management System, the Intellectual Property Management Process, the Confidentiality System, the Key Technology Management System and the Patent Application Evaluation Process, and has established and improved a system for managing the entire process of cultivating high-value patents to ensure that the transfer of technology and production experience of Focuslight and its customers can be effectively protected. Focuslight has been awarded the National Intellectual Property Demonstration Enterprise by the China National Intellectual Property Administration, and has been awarded the Certificate of Intellectual Property Management System and has passed the IP compliance supervision audit.

As creators and users of intellectual properties, companies have a social responsibility to protect it in all areas of their operations, from production and management to sales. The company respects intellectual property and to this end has established an Intellectual Property Management Procedure to ensure that the transfer of technology and production experience of the Focuslight and its customers is effectively protected. The company recognizes and respects the intellectual property of its competitors and business partners and will not use their intellectual property unless expressly permitted or legally licensed to do so.

As an enterprise with a high sense of social responsibility, the long-term goal of Focuslight is to promote the common progress of other enterprises and even the whole society through its own strength. Adhering to the principle of non-infringement on intellectual property rights of other enterprises and actively safeguarding its own intellectual property rights, Focsulight attaches importance to the publicity and training of intellectual property rights, increases research and development investment and intellectual property incentives, encourages technical personnel to make outstanding innovation, and strives to make personnel at all levels of enterprise research and development, marketing, service, decision-making, etc. enhance their awareness of intellectual property rights, so as to further promote the common development of enterprises, industries and society.

5.Excellent Quality

Adhering to the values of quality, integrity, excellence and challenge, Focuslight strongly advocates the quality spirit of forging quality with personality (Company Quality, Service Quality, Product Quality and Personnel Quality), the integrity spirit of commitment over life (honesty and integrity, abiding by commitment, seeking truth from facts, reputation first), and the excellence spirit of innovation and pursuit of perfection (focusing on innovation, continuous improvement, pursuing perfection, and constantly surpassing), and our ultimate goal is to create values for customers through the spirit of challenging impossibilities and ourselves (accepting challenges, daring to face challenge, challenging ourselves, and challenging authority). We insist on continuously improving the quality management system, strengthening product quality management, carrying out quality control training, enhancing the skill level of relevant personnel, strictly controlling all aspects of product planning, research and development, production and sales, reducing the rate of defective products, providing customers with high-quality products, and respond to customers’ needs with sincerity.

Focuslight has been certified with the IATF16949:2016 for auto business and ISO9001:2015 for non-auto business.

Focuslight regularly carries out training on quality management, including quality awareness, quality tools, product quality improvement, etc., to enhance the quality awareness of all staff, improve the quality management system, and implement the concept of quality into our business operation.

6.Safety Production and Environmental Protection

Focuslight puts the health and safety of employees first, adheres to the principle of prevention first, and continuously improves, enhances and perfects the working environment in the workplace according to the requirements of applicable laws and regulations. Each employee is responsible for complying with the environmental, safety and health rules and implementing regulations, reporting accidents, injuries or unsafe equipment, operations or conditions, and maintaining a safe and healthy workplace for all employees. Any violent or threatening behavior is prohibited. Employees shall perform their duties without being affected by alcohol, illegal drugs or controlled substances. Employees have the right to refuse to carry out the command against rules from their superiors.

In the process of product development and production, Focuslight strictly abides by the laws and regulations on product safety and industrial standards, has formulated safety systems such as the Company’s Safety Management System, the Management System of the Safety Committee, and the Safety Management Regulations for Automobile Business

Products, and has obtained the certificate of Occupational Health and Safety Management System (Certification Standard: ISO45001:2018); A safe and reliable R&D and production platform and production process have been established, and the product quality and safety assurance mechanism has been strictly followed; An emergency plan has been established for product safety accidents to detect and handle safety accidents early and reduce losses in all aspects.

Focuslight always regards environmental protection as an important part of the company’s sustainable development, controls from the source, uses cleaner production processes, and saves resources and energy. We enhance employees’ awareness of energy conservation and environmental protection through internal publicity. Start small, pay attention to electricity saving, water saving, paper saving, green travel, etc. in daily office work, and advocate employees to develop a simple, moderate, green and low-carbon way of work and life. Focuslight and its subsidiaries have prepared Environmental and Occupational Health and Safety Management Manual, Environmental Factor Identification and Evaluation Control Procedure, Exhaust Gas Management System, Waste Management System, Energy Management Regulations and other relevant management systems, and implemented them in strict accordance with the above Systems. Focuslight has obtained the Environmental Management System Certification (Certification Standard: ISO14001:2015).

During the epidemic prevention and control period, in order to do a good job in the disinfection of the company’s parks and offices, ensure the environmental safety of the parks and the health and safety of the company’s employees, Focuslight arranges special personnel to disinfect and disinfection and sterilization the parks every day.

Focuslight regularly organizes fire safety training and fire drills, enhances employees’ fire safety quality, improves their ability to prevent fire and other emergencies, strengthens their awareness of epidemic prevention and control, and popularizes emergency rescue knowledge.

7.Employee Care

Focuslight regularly organizes birthday party, flower arrangement party, Arbor Day, Family Open Day, basketball match, employee physical examination, summer camp for employees’ children and other activities to enrich employees’ lives and improve team cohesion and happiness. We have a nursing room, staff lounge, gym, reading room, etc. to provide various care for employees.

In order to solve the problem that it is difficult for employees to take care of their children in summer vacation, Focsulight promises to open summer camps every summer vacation, so that parents can work at ease and children can have a safe, happy and meaningful summer vacation. By employing experienced teachers, elaborately arranging the site, carefully arranging the courses, we have launched Focuslight summer camp activities to provide care services for minor children for employees in need and solve their worries. At present, this activity has been successfully held for two periods and has been welcomed by employees and children.

As a local enterprise headquartered in Xi’an High tech Zone, under the general environment of epidemic prevention and control, Focuslight actively practices its social responsibility, actively participates in and supports the epidemic prevention and control work in Xi’an, donates living and epidemic prevention materials to the local community, and contributes to the epidemic prevention and control in the community. In January 2022, during the critical period of epidemic prevention and control in Xi’an, when Focuslight learned that the supply of living materials and epidemic prevention materials for the residents of the villages in the city near the company was under pressure, we immediately organized the purchase of all kinds of materials needed, contacted the channels to provide living materials for the villagers, and provided the village committee with alcohol, disinfectant, masks, electric spray and other epidemic prevention materials, contributing to the epidemic prevention and control work in the village.