Letter of Commitment by Principal Officers of Production and Operating Entities in Shenzhen on the Primary Responsibility for Production Safety

Letter of Commitment by Principal Officers of Production and Operating Entities in Shenzhen on the Primary Responsibility for Production Safety

As the principal officer of a production and operating entity, and the first person responsible for production safety, I acknowledge that the occurrence of a production-safety accident would not only cause serious injury to employees and their families and material damage to our brand and economic interests, but could also expose the principal officer to severe administrative and criminal penalties.

I am familiar with the relevant law and regulations — including the Production Safety Law of the People's Republic of China, the Guangdong Province Production Safety Regulations, the Shenzhen Safety Management Regulations and the Provisions on the Primary Production-Safety Responsibility of Shenzhen Production and Operating Entities — which set out the full body of the entity's production-safety duties. The principal commitments include the following:

1. Establish and operate a company-wide production-safety responsibility system; ensure that all safety rules and operating procedures are observed; the principal officer shall regularly receive reports on production-safety work, examine production-safety issues, and organise a comprehensive production-safety inspection at least once every six months.
2. Lawfully establish a production-safety management body, staff it with qualified safety management personnel, and ensure that the body and its personnel fulfil their safety-management duties.
3. Guarantee investment in production-safety funding; lawfully accrue and apply production-safety expenditure; never embezzle or divert it; subscribe to production-safety liability insurance as required.
4. Implement an all-personnel production-safety training programme; clearly inform employees of post-related hazard factors, preventive measures and emergency procedures; ensure that personnel who fail the training are not assigned to operate, and that uncertified personnel are not assigned to special operations.
5. Ensure that the production-operating premises and the associated equipment, facilities and process flows meet national or industry standards; lawfully provide personal protective equipment to employees and train them in its correct use; promptly correct any unsafe practice and resolutely refuse direction to violate rules or to compel risky operation.
6. Strictly operate within the permitted scope; never carry out production or operation in violation of law; observe regulations on the production, storage, transport, use and disposal of hazardous materials; tighten the safety management of hazardous operations.
7. Carry out a risk-point and hazard-source investigation at least every six months; identify safety risks comprehensively; implement effective risk-control measures; conduct periodic hazard inspections, resolve hidden hazards in good time and report any major hazards to the local production-safety regulator.
8. Implement the "Three Simultaneousness" principle for the safety facilities of construction projects; provide safety warnings and routine maintenance for safety equipment; never use processes, equipment or materials that have been phased out or expressly prohibited.
9. Organise and implement the entity's production-safety emergency response plan; build an emergency-management team as required and stock the necessary emergency supplies; organise at least one emergency drill per year; if a production-safety accident occurs, ensure timely and truthful reporting to the local production-safety regulator.
10. Fulfil any other primary production-safety responsibilities imposed by law, regulation or rule.

I understand that if this entity fails to perform its primary production-safety responsibility properly, it will bear administrative, economic and criminal liability:

1. Administrative: the entity may be ordered to rectify within a deadline, to suspend production for rectification, or ultimately to close; the principal officer may receive a warning or a record, be removed from post, be expelled from the Party, and be barred for life from acting as principal officer of an entity in the same industry.
2. Economic: conduct in violation of production-safety law may be fined in varying amounts; for a general production-safety accident the fine may reach CNY 500 000, and for a particularly major accident the fine may reach CNY 20 000 000.
3. Criminal: under the relevant provisions of the Criminal Law, if the violation constitutes the offence of causing a serious liability accident, the maximum sentence is seven years; if it constitutes the offence of illegal operation or of compelling risky operation in violation of rules, the maximum sentence is fifteen years; in case of combined offences the maximum sentence is twenty years.

I commit to performing my production-safety management duties to the letter — actively studying production-safety law and regulation, continuously analysing risk, identifying hazards, lowering risk, eliminating hidden dangers in good time, preventing accidents and ensuring safety. We welcome public oversight of our entity's production-safety conditions; the public-interest production-safety reward hotline is "12350".

Principal officer (signature): _______________________
Committing entity (stamp): _______________________
Date of commitment: ______ year ______ month ______ day

Original scanned letter — Shenzhen Beike Biotechnology Co., Ltd. (signed and stamped):