In certain countries, the extraction and trade of natural resources such as diamonds, timber, and minerals have exacerbated civil wars and violent conflicts. The minerals known as "3TG" (tin, tantalum, tungsten, and gold) have drawn significant attention for their role in fueling ongoing conflicts.

Conflict minerals compliance has become a critical cross-border compliance issue for more enterprises and capital, given changes in supply chain traceability, labor and human rights issues, public listing regulations, and corporate evaluation systems. Responsible enterprises must conduct continuous and comprehensive due diligence on all their business activities, including potential risks within their supply chains during the acquisition of natural resources.

The significance of conflict minerals due diligence lies in ensuring the legality and ethics of a enterprise's supply chain, which is crucial for its social responsibility and sustainable development. Through due diligence, enterprises can identify the sources of minerals used in their products or services and determine whether these minerals come from conflict regions or sanctioned mines. This helps enterprises avoid supporting conflicts or human rights abuses while ensuring the sustainability and ethicality of their supply chains.

Additionally, due diligence helps improve a enterprise's transparency and reputation, increasing consumer and investor trust. By understanding the sources of their minerals, enterprises can take measures to reduce their environmental impact and comply with international laws and regulations.

Specific Investigation Contents:

1.Financial Situation: Examine the enterprise's financial reports, financial statements, and audit reports.

2.Business Situation: Review the enterprise's business scope, main activities, product types, sales channels, and customer base.

3.Personnel Situation: Verify the enterprise's employee numbers, structure, compensation and benefits, and training programs.

4.Compliance Situation: Check if the enterprise complies with relevant laws, regulations, and industry standards.

5.Risk Situation: Assess the various risks the enterprise may face, including market risk, political risk, legal risk, technological risk, human rights risk, environmental risk, social and ethical risks.

Process：