Country Garden establishes mutually trusting and beneficial partnerships with various suppliers, including engineering contractors, subcontracting entities, material manufacturers, material agents, and service providers, to jointly advance the sustainable development of the supply chain.

The company has implemented a comprehensive supplier management system, comprising the Supplier Resource Management Process, the Post-Evaluation System for Suppliers, and the Supplier Penalty Mechanism. These regulations focus on a whole supplier life cycle management process —from supplier entry and appraisal to qualification to performance evaluation, from risk management to phase-out—ensuring continuous assessment of suppliers' infrastructure and operational capabilities.

Furthermore, a comprehensive organizational framework for supply chain management has been established. At the Group level, a Tendering and Procurement Department and an Internal Control Unit oversee planning and supervision functions. Clear mandates are defined for the Tendering and Procurement Department and also the Provincial Tendering and Procurement Management Platforms regarding supplier qualification, evaluation site visits, and random material quality inspections. This structure ensures the effective implementation of supplier governance measures.

To prevent corrupt practices among suppliers, Country Garden has implemented a comprehensive set of measures spanning from internal governance to external operational controls:

Internal Compliance & Governance

All new employees within the Tendering and Procurement Center are required to sign the Country Garden Integrity Agreement. This protocol strictly regulates businesses involving enterprises owned by employees or their family members, thereby mitigating conflicts of interest.

Supplier Code of Conduct

All suppliers must execute the Commitment Letter for Tender Contract Briefing and the Supplier Cooperation Framework Agreement. These documents explicitly mandate supplier integrity and strictly prohibit bribery. Suppliers are contractually obligated to promptly halt any suspected violations and report them to the designated responsible personnel at Country Garden.

Operational Process Controls

Country Garden enforces stringent controls throughout the whole life cycle of supplier engagement.

Supplier integrity is a mandatory criterion for entry, for which Third-party databases are utilized to verify the authenticity of suppliers’ information, and entities with adverse records are strictly disqualified. Costs are meticulously audited and split in detail items to eliminate possibility for corruption through inflated pricing. Regular annual evaluations are conducted to review supplier compliance. Comprehensive audits are performed to investigate malpractices such as bid rigging, bid collusion, and bid leakage. Violators are subject to targeted disciplinary actions commensurate with the severity of the breach and the specific situations involved.