1. Introduction

Wesmo has earned a reputation for conducting its business with integrity and with respect for the interests of those our activities can affect. This reputation is an asset, just as real as our people and products.

Our first priority is to be a successful business and that means investing for growth and balancing short term and long term interests. It also means caring about our customers, employees and shareholders, our business partners and the world in which we live. To succeed requires the highest standards of behaviour from all of us. The general principles contained in this Code set out those standards. More detailed guidance tailored to the needs of different countries and companies will build on these principles as appropriate, but will not include any standards less rigorous than those contained in this Code. We want this Code to be more than a collection of high sounding statements. It must have practical value in our day to day business and each one of us must follow these principles in the spirit as well as the letter.

2. Code of Business Principles

2.1 Standard of Conduct

We conduct our operations with honesty, integrity and openness, and with respect for the human rights and interests of our employees. We shall similarly respect the legitimate interests of those with whom we have relationships.

2.2 Obeying the Law

Wesmo companie and employees are required to comply with the laws and regulations of P.R. China, HongKong and the countries in which we supply our products.

2.3 Employees

Wesmo is committed to diversity in a working environment where there is mutual trust and respect and where everyone feels responsible for the performance and reputation of our company. We will recruit, employ and promote employees on the sole basis of the qualifications and abilities needed for the work to be performed. We are committed to safe and healthy working conditions for all employees. We will not use any form of forced, compulsory or child labour. We are committed to working with employees to develop and enhance each individual’s skills and capabilities. We respect the dignity of the individual and the right of employees to freedom of association. We will maintain good communications with employees through company based information and consultation procedures.

2.4 Customers & Consumers

Wesmo is committed to providing products and services which consistently offer value in terms of price and quality, and which are safe for their intended use. Products and services will be accurately and properly labelled, advertised and communicated.

2.5 Shareholders

Wesmo will conduct its operations in accordance with internationally accepted principles of good corporate governance. We will provide timely, regular and reliable information on our activities, structure, financial situation and performance to all shareholders.

2.6 Business Partner

Wesmo is committed to establishing mutually beneficial relations with our suppliers, customers and all kind of business partners. In our business dealings we expect our partners to adhere to business principles consistent with our own.

2.7 Community Involvement

Wesmo strives to be a trusted corporate citizen and, as an integral part of society, to fulfil our responsibilities to the societies and communities in which we operate.

2.8 Public Activities

Wesmo companies are encouraged to promote and defend their legitimate business interests. Wesmo will co-operate with governments and other organisations, both directly and through bodies such as trade associations, in the development of proposed legislation and other regulations which may affect legitimate business interests. Wesmo neither supports political parties nor contributes to the funds of groups whose activities are calculated to promote party interests.

2.9 The Environment

Wesmo is committed to making continuous improvements in the management of our environmental impact and to the longer-term goal of developing a sustainable business. Wesmo will work in partnership with others to promote environmental care, increase understanding of environmental issues and disseminate good practice.

2.10 Innovation

In our scientific innovation to meet consumer needs we will respect the concerns of our consumers and of society. We will work on the basis of sound science, applying rigorous standards of product safety.

2.11 Competition

Wesmo believes in vigorous yet fair competition and supports the development of appropriate competition laws. Wesmo companies and employees will conduct their operations in accordance with the principles of fair competition and all applicable regulations.

2.12 Business Integrity

Wesmo does not give or receive, whether directly or indirectly, bribes or other improper advantages for business or financial gain. No employee may offer, give or receive any gift or payment which is, or may be construed as being, a bribe. Any demand for, or offer of, a bribe must be rejected immediately and reported to the management. Wesmo’s accounting records and supporting documents must accurately describe and reflect the nature of the underlying transactions. No undisclosed or unrecorded account, fund or asset will be established or maintained.

2.13 Conflicts of Interests

All Wesmo employees are expected to avoid personal activities and financial interests which could conflict with their responsibilities to the company. Wesmo employees must not seek gain for themselves or others through misuse of their positions.

2.14 Compliance - Monitoring - Reporting

Compliance with these principles is an essential element in our business success. Wesmo’s Executive Board is responsible for ensuring these principles are applied throughout Wesmo. Wesmo’s Chief Executive Officer is responsible for implementing these principles and is supported in this by the other Executives members and Wesmo’s Staff.

2.15 Controller’s Risk and Control Report.

Day to day responsibility is delegated to Wesmo’s Senior Managers. They are responsible for for implementing these principles, if necessary through more detailed guidance tailored to local needs, and are supported in this by representatives from all relevant functions and departments.

Assurance of compliance is given and monitored each year. Compliance with the Code is subject to review by Wesmo’s Executive Board supported by Human Resource Department and Financial Audit Committee (External Accountancy). Any breaches of the Code must be reported. Wesmo’s Executive Board will not criticise management for any loss of business resulting from adherence to these principles and other mandatory policies and instructions. The Executive Board of Wesmo expects employees to bring to their attention, or to that of senior management, any breach or suspected breach of these principles. Provision has been made for employees to be able to report in confidence and no employee will suffer as a consequence of doing so.

In this Code the expressions ‘Wesmo’ is used for convenience and mean Wesmo Industries Ltd. and its respective subsidiary companies. The Executive Board of Wesmo means the President & Chief Executive Officer and the Managing Director of Wesmo Industries Ltd. and its respective subsidiary companies.