Guangxi Shuoyi Packaging Co., Ltd. (the name in Chinese was “⼴西硕艺包装制品有限公司”, Business License No. was

91451400MA5PXL5G9B) was established in 2020 and the address indicated in business license was Longzan Park, ChinaThailand Industrial Zone, Gongye Road, Jiangzhou District, Chongzuo City, Guangxi, China (in The Workshop Of Guangxi Shuoyi Woodware Co., Limited). (the address in Chinese was “⼴西崇左市江州区⼯业⼤道中泰产业园之⻰赞产业园(⼴西硕艺

⽊制品有限公司⼚房内)”). The auditee specialized in the manufacture of wooden box, perfume box, cigar humidor, jewelry box

and watch box. The main production processes included preparing, polishing, spraying, assembly and packing. According to the

factory management, peak season was not obvious.

The auditee occupied one flat building as production floor, warehouse and office, one 4-storey building was used as dormitory;

kitchen and canteen located at the first floor of the 4-storey dormitory building was available for all workers of the zone. The total

land area of the factory was about 15,000 square meters.

There were a total of 48 employees with 22 males and 26 females. The youngest employee noted during this audit was 18 years

old.

The factory adopted a finger printing/face scanning system to record working hours of production employees. Per management

and document review, all employees work in one shift, the working hour is 8:00-12:00, 13:30-17:30. Wages of employee were

paid at the end of the next month by cash. Per payroll review and interviews with management and employees, all production

employees were paid by hourly rate.

During the audit, employees' time records and wage records were sampled as follows for working hour and wages testing: each

5 samples of employees from the most recent paid month of March 2021, random month of October 2020 and December 2020.

And 5 additional time records from the most recent yet-to-pay month April 2021 were sampled. According to the sampled time

records, it was noted that the maximum working hours were 11 hours per day, 60 hours per week and maximum overtime were

71 hours per month. Employees worked consecutive 6 days at most. According to the sampled payroll records, it was noted

that all employees were paid RMB9.09 per hour as equivalent to RMB1580 per month during tested period, which was same

as local minimum wage standard. Employees’ overtime hours worked on weekdays, weekends were paid with 150%, 200% of

employee’s normal wage, which was compliance with legal requirement. No overtime was ever arranged on holiday.

According to management, the auditee had not provided social insurance to employees yet.

Further, 5 employees were selected for private interviews from different workshops. No negative comment was issued during

employee interviews. Interviewed employees were satisfied with the working environment, compensation, working hour and

management team in the factory. A closing meeting was held with the factory representatives and all of the findings were discussed. Su Yue/Sales Manager, Cao Qiu Ju/Worker Representative attended the open meeting and the closing meeting and signed the onsite CAP and agreed to

take corrective actions.

Remark:

1. There was no contractors or agencies used by the auditee, which made the contractor license/permit and agency labour

contract not applicable. No Government waivers or Collective bargaining agreements was available.

2. Audit Company: Bureau Veritas Consumer Products Service Audit Company APSCA Number: 11600002

Lead Auditor Name: Mike Peng

APSCA Auditor Registered Number: RA21704159