All the procurement of TSC must comply with the relevant provisions of the Government Procurement Act in order to achieve justice, openness and fairness, and the results have been good. The internal control system set up the Key Points for Financial and Labor Procurement Operations, Key Points for Bulk Grain Purchase, Operating Points of Project Purchase and Performance Management, and Operating Points of Public Selection of Technical Service and Labor Procurement. TSC has set up an outsourcing center as a dedicated unit in charge of purchasing and organizes doubts, objections, complaints and consulting related to the Government Procurement Act so as to complete the procurement system and increase procurement efficiency. New suppliers and existing suppliers should all meet the requirements of the Procurement Act.

      The reason for TSC to operate so steadily is because we have reliable partners throughout the value chain. The selection of suppliers follows the prescriptions of the Government Procurement Act and also considers the sources of supply or services provided by domestic suppliers to support domestic industries. At present, apart from the 100% of bulk grain raw materials in the Animal Industry Business and sugar raw materials in the Sugar Business that are imported from abroad, domestic suppliers are prioritized for the supply of the remaining raw materials.

Aspect	Issues of concern	Conditions of new suppliers
Environment	New environment management	New suppliers shall comply with environmental regulations such as the Air Pollution Control Act, Water Pollution Control Act, and regulations concerning waste and resources management. If there are any violations of related laws and regulations, improvements have to be made as prescribed. If the circumstances are serious, TSC may terminate or cancel the contract with the supplier.
Human rights	Employee grievance channel	1. Due to the complexity of human rights assessment mechanism, TSC currently screens the suppliers based on the self-assessment of the human rights compliance prescribed in the agreement by the suppliers 2. The suppliers shall hire people with disabilities and aborigines in accordance with Peoples with Disabilities Rights Protection Act, Indigenous Peoples Employment Rights Protection Act and Government Procurement Act. 3. The new suppliers shall not have gender discrimination or discriminate against indigenous or vulnerable groups in the hire of employees.
Society	Anti-corruption advocacy  Community impact response mechanism	1. New suppliers must not request, agree to accept, accept or provide a bribe, commission, percentage, brokerage, kickback, rebate, gift, treat or other improper benefits from the procurement personnel.   2. The bidding documents shall specify the contact number, fax and address of the audit team and the report hotline and mail box of the investigation station (station or group) of the Investigation Bureau of Ministry of Justice to report cases of corruption.
Labor	Employee salary and benefits Occupational safety and health Industrial safety performance	To maintain labor conditions and safety, it is required to comply with the relevant regulations concerning labor safety and health. In addition, the Precautions for Occupational Safety and Health of Engineering and Labor Services” is formulated, prescribing that when handling procurement cases that exceed one-tenth of the amount announced, the precautions shall be included in the tender documents as part of the procurement contract, requiring suppliers to implement occupational safety and health management.
Product	Quality assurance Product labeling	1. To formulate “Key Points for the Quality Management Operations of the Manufacturing Companies” to ensure the quality of the products comply with the requirements of TSC and the provisions of the Act Governing Food Safety and Sanitation. In addition, vendor review, production supervision, product acceptance and vendor evaluation are also conducted for the new suppliers’ design, manufacture and assembly of products.  2. Quality plan shall be established based on the project contract, design drawings, specifications, relevant technical regulations and the outline of the reference quality plan for the promotion and implementation.

      TSC conducts assessment of its partner suppliers in terms of the technical capacity, production performance, corporate image and responsibility and contract performance reliability so as to maintain its market sensitivity and keep abreast of the dynamics of supplier and if necessary, TSC will perform or entrust a third impartial inspection agency to conduct on-site inspection of the factory and the assessment results will be included in the score. Related defects will be asked to improve to ensure all the products and services the suppliers provide meet the needs of TSC. The assessment results are also used as reference for contract renewal.

      TSC attaches great importance to the sustainable development of the Company. In addition to strictly demanding the self-implementation of CSR responsibilities and commitments, we also drive our suppliers to move toward sustainable development together. TSC conducted a CSR evaluation system for suppliers with more than 5 million purchase amount to complete a self-assessment questionnaire. According to the self-evaluation results, the suppliers were divided into three levels, gold, silver and copper based on the scores. 86% of them are gold; 14% are silver.