We hold a supplier evaluation meeting each year to conduct a comprehensive review of our suppliers and evaluate their performance. Suppliers are graded according to the scores given to them in the supplier evaluation process. Suppliers with a Tier 1/Grade A rating will be given priority in contract renewal, whereas suppliers receiving a Tier 3/Grade D rating for two years in a row (Grade C for toxic chemical transportation contractors) or those found to have committed major violations will have their qualified supplier status removed. No suppliers were removed from our list of qualified suppliers in 2023. The results of general raw material suppliers evaluation for the last three years are provided as follows:
| Item | 2021 | 2022 | 2023 | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Raw materials | Packaging materials | Transportation | Raw materials | Packaging materials | Transportation | Raw materials | Packaging materials | Transportation | |
| Number of suppliers with a Tier 1/Grade A rating | 6 | 21 | 12 | 6 | 24 | 12 | 6 | 24 | 12 |
| 39 | 42 | 42 | |||||||
| Number of suppliers with a Tier 2/Grade B rating or below | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 0 | 0 | 0 | |||||||
| Proportion of suppliers with a Tier 1/Grade A rating | 100% | 100% | 100% | ||||||