ANGAO 2015-07-05

To our stakeholders:

I am pleased to confirm thatANGAO PRECISION ASSEMBLY Co Ltd reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

C.ZORN
General Manager
On behalf of Mr MARTINEAU, Chairman of GMD group

Angao comit to follow strictly the principes of the Universal Declaration of Human Rights.
We act in a responsible way to ensure every worker of our company is treated equaly.

We ensure during suppliers audit, that working conditions and treatment of supplier's employees match with the principes of the Universal Declaration of Human Rights, and we refuse to have business with companies not providing acceptable working conditions.
In the futur, as we increase our business, we will keep the Human Rights as a parameter of our evaluation for new suppliers.
In our company, we are aware of employees working condition and we stay aware of any request from our employees to ensure fair and safe working condition.

in this past year, we have identified 2 potential suppliers not providing safe working condition to theyr workers. The customer which suggested these suppliers has been warned , an official report has been send to him and we have refused to work with these suppliers.

Angao conform to PRC labor regulation, we have a labor union in charge of collecting claims from employees and we have 2 ways to report issues to the top managment :
> Daily morning meeting 8am with all department managers.
>Weekly (thursday 7am meeting) with team leaders to keep in contact with the workers in a more direct way.

grievance report is ensured trough the morning meeting and the weekly meeting
we have set up vacuum systems to ensure no smoke from production stays in the workshops. These installation are on european standard and far exceed PRC labor regulation on the topic.
We have installed safety systems on each machines to ensure an European safety level : physical screen + optical fences stops the machines if any worker put his hands inside the machine.
We provide Individual protectiojn equipments : gloves, ear plugs, safety shoes, glasses for grinding operation.
We ensure yearly health examination for each employee.
Since the creation of the company , we have a internal regulation concerning the righst and duties of our employees. This regulation is updated as often as needed and communicated to each employee at the time he validates his contract.

We do not have a policy to limitate or forbid some jobs to male or female gender, therefore we don't need to monitor the male and female genders in our company.
We have no violations of global compact nor PRC regulation in the past years.
We have annual OHSAS 18001 and ISO 14001 third party evaluation.

The impact of Angao in terms of environnment is limited. We sell our steel scrap , wood, packaging and plastics to recycling companies or individuals.
We are certified ISO 14001 for our businesses.
We pay special attention for suppliers with high environment impact like surface treatment suppliers. They are all ISO 14001.

We have implemented recycling mechanisms using professional and non professional suppliers to collect and recycle our wastes :
> aluminum, steel, wood, papers, cartons , plastics : are collected monthly.
> food waste are collected to feed cattles
We have changed workshops lighting system for economical lights in order to reduce electricity consumption.
We have installed a device to extract as many oil as possible from our swarfs in order to :
- reduce oil snet out with the scraps we sell
- reuse this collected oil therefore reduce the oil we need to purchase outside.

we have procedures in case of oil leackage
we have an ISO 14001 certification which allows us to follow our impact in terms of environnment and follow the reach of our internal targets.

Angao comit to avoid all business involving in coruption and bribes.
We support the UN Convention Against Corruption.
We manage the risk of bribery and coruption by a strict control of all our purchasing. No purchasing can be done without following a validation process with trustable employees and a final validation by the company general manager.
Prices are négociated by a foreign purchasing or technical managers and recorded in ERP to ensure the contracts can not be changed after negociation. Changes of prices can only be made after re-validation by the foreign managment.

we ensure absence of coruption by controling the different steps of purchasing and selling with trustable foreign managers.

In case of suspicion or evidences of corruption, the company immediatly ends the working contract and prefers to pay compensation than to continue a cooperation with a suspected employee.
in the past years, 2 employees at logistic and sales department have been suspected of briberies. They have been fired immediatly.