Taihu Snow strictly adheres to the Labor Law of the People's Republic of China and other legal and regulatory requirements, as well as international human rights norms such as the International Bill of Human Rights and the International Labour Convention. Our employment and talent development policies, detailed in our Employee Handbook, adhere to principles of fairness and excellence, ensuring a diverse workforce is recruited without biases towards gender, education, age, race, family status, religious belief, or cultural background. Practices such as child labor, forced labor, discriminatory actions, or the unlawful gathering of applicant personal information are vehemently opposed, reinforcing our commitment to ethical employment and equitable job access. We are dedicated to promoting gender equality and diversity, actively supporting the career advancement of women, and striving to cultivate an inclusive and diverse workplace. Our unwavering efforts are
aimed at achieving gender equality and embracing diversity in our operations. During the reporting period, the proportion of female employees in the Company reached an impressive 80.92%.

The Company also conducts orientations for every new employee, elaborating on the policies and codes of conduct outlined in the Employee Handbook. This ensures that all staff members are fully aware of their legal rights to equal employment opportunities and career advancement. The Company has incorporated compliant employment into the evaluation for relevant positions and established a Labor Inspection Committee to conduct regular and rigorous audits of recruitment and hiring practices, ensuring the effective implementation of corporate policies. During the reporting period, Taihu Snow did not experience any incidents involving child labor or forced labor, nor did we encounter cases of employee discrimination or labor disputes.

Taihu Snow places great emphasis on its employees' rights to participate, express, and supervise. The establishment of a trade union and the creation of systems such as the Democratic Consultation System and the Employee Representative Congress System truly protect the legitimate rights and interests of employees. For significant matters and policies related to company reform, operational decisions, and employees' vital interests, the Company solicits feedback from employee representatives through regular meetings of the Employee Representative Congress, staff discussions, and individual conversations. These platforms facilitate the gathering of employee representatives' feedback and suggestions, and enable thorough discussion, review, and voting on significant issues and policies. Furthermore, we have established multiple communication channels such as suggestion boxes and bulletin boards, encouraging employees to actively and independently contribute to the critique and improvement of our management systems, reinforcing democratic oversight and administration. We also regularly conduct employee satisfaction surveys, listening to the voices and demands of employees from various dimensions such as the company's management system, work atmosphere, corporate culture, etc. Based on the results of the surveys, we continually refine our management practices to enhance the work environment.

Taihu Snow strictly abides by laws and regulations such as the Work Safety Law of the People's Republic of China, the Law of the People's Republic of China on Prevention and Control of Occupational Diseases, the Fire Control Law of the People's Republic of China, the Regulations on the Safe Management of Hazardous Chemicals, and the Provisions on the Supervision and Administration of Occupational Hygiene in Workplaces. We have developed standards and systems including the Environmental and Occupational Health and Safety Management Manual to consistently improve our occupational health and safety management system, and employed multiple measures to ensure the physical and mental well-being of employees. As of the end of 2023, the Company has been certified under the Sedex social responsibility management system, achieved ISO45001 Occupational Health and Safety Management System certification, and passed the Level 3 standardization audit for industrial and commercial enterprise safety production.

In alignment with our organizational development plan and the training regulations outlined in the Employee Handbook, we consistently enhance the construction of our existing training system. We aim to refine our comprehensive training for all staff and across all systems, developing a multidimensional training curriculum that includes new employee training, leadership development, and critical position training. This approach is designed to support the holistic development of our employees.

We have established the Jinxiu Academy to foster the development of specialized silk professionals, contributing to the progress of the silk industry. The academy offers relevant training and education to broaden understanding of silk culture and craftsmanship, aiming to elevate the overall industry standards. In this manner, we can both preserve and promote silk culture, while providing talent support for the Company's development.