Annual Report 2024

49 2024 Annual Report Transport International Holdings Limited Supply Chain Management We believe an integrated upstream supply chain management is key to quality and logistics control. We work closely with our business partners to develop vehicles and spare parts that are adapted to the local climate and operational environment, while prioritising energy efficiency and the latest emission standards. We encourage fair and open competition to develop long-term relationships with suppliers based on mutual trust. Our supply chain policies and procedures are designed to ensure the ethical procurement of supplies and services, enabling us to deliver high-quality end products that our customers can trust. In 2024, KMB and LWB added 52 new suppliers after evaluating their potential capabilities and considering social criteria (100% of new suppliers were screened). During the same year, KMB and LWB procured from 373 local and 34 non-local suppliers and conducted vendor appraisals on 148 suppliers (36% of suppliers) to assess their performance in terms of quality, continuity of supply and general services. This allows us to continually monitor and improve their services or, if necessary, terminate procurement from individual suppliers. The proportion of spending on local suppliers was 72%. ZD 429 Our Green and Sustainable Procurement Policy spells out the environmental and social risk considerations that should be taken into account in every purchasing decision. To ensure compliance with our social and environmental requirements, we require all suppliers to confirm adherence to our guidelines upon supplier registration in the following areas: Environmental care; Health and safety; The prohibition of forced and child labour; and Anti-corruption. Procurement and Tendering Procedures Our criteria for the procurement and tendering of goods and services are based on price, quality, specifications, green and sustainable procurement and other relevant factors. The principles of our procurement and tendering procedures are as follows: Fair competition; Selection of appropriate contract types based on specifications; Compliance with laws, relevant regulations and contractual obligations; Consideration of environmental and social factors; and Adoption of an effective monitoring system, management controls and practices: to prevent bribery, fraud or other malpractices; and to ensure the declaration of conflicts of interest by staff involved in the selection process.