EX-1.01 2 applied_ex0101.htm CONFLICT MINERALS REPORT FOR THE REPORTING PERIOD FROM JANUARY 1, 2024 TO DECEMBER 31, 2024.

Exhibit 1.01

 

Applied Optoelectronics, Inc.

Conflict Minerals Report

For The Year Ended December 31, 2024

 

This report for the year ended December 31, 2024 is presented to comply with Rule 13p-1 under the Securities Exchange Act of 1934, as amended (the “Rule”). The Rule was adopted by the Securities and Exchange Commission (“SEC”) to implement reporting and disclosure requirements related to conflict minerals as directed by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The Rule imposes certain reporting obligations on SEC registrants whose manufactured products contain Conflict Minerals which are necessary to the functionality or production of their products. Conflict Minerals are defined as cassiterite, columbite-tantalite, gold, wolframite, and their derivatives, which under current guidance are limited to tin, tantalum, and tungsten (“3Ts”). These requirements apply to registrants whatever the geographic origin of the Conflict Minerals and whether or not they fund armed conflict.

 

1.Company Overview

 

This report has been prepared by the management of Applied Optoelectronics, Inc. (herein referred to as “AOI,” the “Company,” “we,” “us,” or “our”). The information includes the activities of all majority-owned subsidiaries.

 

AOI is a leading, vertically integrated provider of fiber-optic networking products, primarily for four networking end-markets: internet data center, cable television, or CATV, and fiber-to-the-home, or FTTH, and telecom. We design and manufacture a range of optical communications products at varying levels of integration, from components, subassemblies and modules to complete turn-key equipment. Conflict Minerals are necessary to the functionality or production of semiconductor and module products.

 

In designing products for our customers, we begin with the fundamental building blocks of lasers and laser components, which require the use of metals, including the 3Ts and gold (“3TG”). From these foundational products, we design and manufacture a wide range of products to meet our customers’ needs and specifications, and such products differ from each other by their end market, intended use and level of integration. We are primarily focused on the higher-performance segments within all four of our target markets, which increasingly demand faster connectivity and innovation. Therefore, the majority of our semiconductor and module products, as well as components that are part of those products, require the use of Conflict Minerals.

 

2.Supply Chain

 

The supply chain for 3TG consists of many supplier chain tiers. Before reaching AOI’s direct suppliers, 3TG will go from mines, to traders, exporters, smelters or refiners (referred to collectively as smelters), alloy producers and component manufacturers, and sometimes intermediate suppliers. Since one or more of the 3TG metals are contained in the majority of AOI’s products, a significant portion of AOI’s suppliers also use these metals in their products. AOI sources products and components from approximately 1184 first tier suppliers globally. First tier suppliers are those suppliers that AOI selected and with whom we have a direct business relationship. These first tier suppliers select their suppliers (second tier suppliers), which in turn have their own group of suppliers (third tier), and so on. AOI works with and through its first tier suppliers to investigate the deeper levels of our supply chain, in order to determine the origin of 3TG metals contained in AOI products.

 

Because of our size, the complexity of our products, and the depth, breadth, and constant evolution of our supply chain, it is difficult to identify actors upstream from our direct suppliers. Accordingly, we participate in a number of industry-wide initiatives as described below.

 

 

 

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3.Conflict Minerals Policy

 

AOI is committed to working with our global supply chain to ensure compliance with the SEC’s conflict minerals rules. We have established a conflict minerals compliance program that is designed to follow the framework established by the Organization for Economic Co-operation and Development (“OECD”).

 

Pursuant to our conflict minerals compliance program, our supplier contracts include conflict mineral due diligence and reporting requirements. Any direct sourcing by AOI of tin, tungsten, tantalum and gold is sourced with the goal that it only be from Democratic Republic of Congo Conflict-Free sources, as defined in the SEC’s conflict minerals rule. As we become aware of instances where minerals in our supply chain potentially finance armed groups, as defined in the SEC’s conflict minerals rule, we work with our suppliers to find alternate conflict-free sources.

 

Our policy is publicly available on our website at https://ao-inc.com/legal/

 

4.Due Diligence Overview

 

We conducted a survey of our supply chain by adopting the template developed by the Responsible Minerals Initiative (“RMI”) Conflict Minerals Reporting Template (“CMRT”). The CMRT was developed to facilitate disclosure and communication of information regarding smelters that provide material to a company’s supply chain. It includes questions regarding a company’s conflict-free policy, engagement with its direct suppliers, and a listing of the smelters the company and its suppliers use. In addition, the template contains questions about the origin of conflict minerals included in their products, as well as supplier due diligence. Written instructions and recorded training illustrating the use of the tool is available on RBA’s website. The CMRT is being used by many companies in their due diligence processes related to conflict minerals.

 

AOI does not engage directly with mines or smelters and thus AOI does not have information on 3TG country of origin. We rely on information from the Responsible Minerals Assurance Process (“RMAP”), a voluntary initiative managed by the RMI in which an independent third party audits the procurement activities of a smelter or refiner to determine, with reasonable confidence that the minerals it processes originated from conflict-free sources. Upon completion of a successful audit, the smelter or refiner is designated by the RMI as “Compliant.”

 

5.Due Diligence Process

 

AOI has established management systems and due diligence measures as a basis for supply-chain management and disclosure compliance relating to the Conflict Minerals necessary to the functionality or production of our products and required to be reported under the Rule. Our due diligence measures have been designed to conform, in all material respects, to the five step framework in the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (OECD Guidance). The design of AOI’s Conflict Mineral Process includes the following:

 

Step #1: Establish Strong Company Management Systems

 

•AOI’s management is committed to sourcing conflict free materials. A conflict minerals policy was adopted and is available on our website at https://ao-inc.com/legal/.
•Our commitment is reflected in our Quality Objective, Purchasing Agreements, Purchasing Orders and SOPs.

 

 

 

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Step #2: Identify and Assess Risk in the Supply Chain

 

•AOI requests that its suppliers complete in full the CMRT. The CMRT is used to provide AOI with information regarding its suppliers’ practices with respect to the sourcing of conflict minerals to enable it to comply with its requirements under the Rule.
•AOI’s legal, quality assurance and supply chain departments manage the collection of information reported on the CMRT by its suppliers.
•Once AOI receives CMRTs from our supply chain, we identify high risk vendors. High risk vendors are those that use non RMI-Compliant smelters or those that do not submit a completed CMRT.

 

Step #3: Design and Implement a Strategy to Respond to Identified Risks

 

•Once a high risk vendor has been identified, AOI will hold an internal stakeholders meeting to discuss corrective actions to be taken.
•Such corrective actions include, but are not limited to, disengaging in trade with the high risk vendor and finding alternate vendors.

 

Step #4: Carry Out Independent Third-Party Audit of Supply Chain Due Diligence at Identified Points in the Supply Chain

 

•Given that we do not have a direct relationship with the smelters and refiners that process the conflict minerals that are present in our products, we rely on the RMI to conduct third party audits of smelters and refiners.
•AOI relies on the RBA and GeSI initiative to validate supply chain due diligence.
•AOI expects our supply chain to adhere to all local, national and international laws and requirements.

 

Step #5: Report on Supply Chain Due Diligence

 

•As a publicly traded company in the United States, AOI will submit an annual SD Report to the SEC per the Securities and Exchange Act of 1934 Section 1502 as amended by the Dodd-Frank Act of 2010.

 

6.Due Diligence Performed

 

Annually, AOI requests CMRTs from our supply chain. It is the responsibility of our supply chain to provide AOI with a CMRT and to ensure their supply chains are conflict free. Once AOI receives the completed CMRT, AOI will review the submission for completeness and consistency. AOI will then compare smelter data, made available by the RMI, concerning the country of origin. If a vendor submits a CMRT that does not contain a non RMI-Compliant smelter, then no further action will be taken by AOI.

 

For vendors that do not submit a CMRT, AOI will follow up with the vendor and continue to request a completed CMRT. If the vendor does not submit a CMRT after multiple requests, then corrective actions, up to and including disengaging in trade, will be taken.

 

For vendors that submit a CMRT containing a non RMI-Compliant smelter, AOI will request that the vendor take corrective actions and become conflict free. If the vendor does not satisfactorily implement steps to become conflict free, then corrective actions, up to and including disengaging in trade, will be taken.

 

AOI works with and through its first tier suppliers to investigate the deeper levels of our supply chain, in an effort to determine the origin of 3TG metals contained in AOI products.

 

 

 

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7.Due Diligence Results

 

The results of our due diligence indicates that the sources of Conflict Minerals are (1) from recycled or scrap materials, (2) from within the Democratic Republic of the Congo or adjoining countries (the “Covered Countries”), or (3) from outside the Covered Countries. From the responses we have received from our direct suppliers from our supply chain survey for 2024, 222 smelters and refiners were listed within their supply chains. All 222 have been designated as of December 31, 2024 as Active or Compliant under the RMAP. The complete list of smelters and

refiners is attached in Exhibit A.

 

AOI does not engage directly with mines or smelters and thus AOI does not have information on 3TG country of origin.

 

8.Conflict-Free Sourcing Continuous Improvements

 

As part of AOI’s commitment to Conflict Minerals due diligence, AOI has taken, or will take, the following steps to further mitigate the risk that our Conflict Minerals benefit armed groups in the Covered Countries:

 

•Continue to engage with suppliers to obtain complete CMRTs;
•Encourage the development of supplier capabilities to perform conflict-minerals related due diligence;
•Review our supply chain quarterly to ensure new vendors are aware of the conflict-mineral free policy and to encourage existing vendors to submit their CMRTs timely;
•Provide ongoing training regarding emerging best practices and other relevant topics to legal, quality assurance and supply chain staff responsible for conflict mineral compliance.

 

9.Forward-looking Statements

 

Statements relating to due diligence improvements are forward-looking in nature and are based on our management’s current expectations or beliefs. Forward-looking statements can also be identified by words such as “expects,” “plans,” “intends,” “will,” “may,” and similar terms. These forward-looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors that may be outside of our control and that could cause actual events to differ materially from those expressed or implied by the statements made herein. Subsequent events may affect AOI’s future determinations under Rule 13p-1.

 

10.Conflict Minerals Disclosure

 

This Conflict Minerals Report and our Conflict Minerals Policy are available on our web site at https://ao-inc.com/legal/.

 

 

 

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Exhibit A:

List of Smelters and Refiners

 

Metal Smelter Name Smelter ID
Gold Elite Industech Co., Ltd. CID004755
Gold Aida Chemical Industries Co., Ltd. CID000019
Gold Almalyk Mining and Metallurgical Complex (AMMC) CID000041
Gold AngloGold Ashanti Corrego do Sitio Mineracao CID000058
Gold Argor-Heraeus S.A. CID000077
Gold Asahi Pretec Corp. CID000082
Gold Asahi Refining Canada Ltd. CID000924
Gold Asaka Riken Co., Ltd. CID000090
Gold Aurubis AG CID000113
Gold Bangko Sentral ng Pilipinas (Central Bank of the Philippines) CID000128
Gold CCR Refinery - Glencore Canada Corporation CID000185
Gold T.C.A S.p.A CID002580
Gold NH Recytech Company CID003189
Gold Ogussa Osterreichische Gold- und Silber-Scheideanstalt GmbH CID002779
Gold Metalor USA Refining Corporation CID001157
Gold Materion CID001113
Gold JX Nippon Mining & Metals Co., Ltd. CID000937
Gold Valcambi S.A. CID002003
Gold Shandong Zhaojin Gold & Silver Refinery Co., Ltd. CID001622
Gold Yokohama Metal Co., Ltd. CID002129
Gold Rand Refinery (Pty) Ltd. CID001512
Gold Royal Canadian Mint CID001534
Gold Ishifuku Metal Industry Co., Ltd. CID000807
Gold Italpreziosi CID002765
Gold Jiangxi Copper Co., Ltd. CID000855
Gold Metalor Technologies (Hong Kong) Ltd. CID001149
Gold Metalor Technologies (Suzhou) Ltd. CID001147
Gold Shandong Gold Smelting Co., Ltd. CID001916
Gold Sichuan Tianze Precious Metals Co., Ltd. CID001736
Gold Zhongyuan Gold Smelter of Zhongjin Gold Corporation CID002224
Gold Nihon Material Co., Ltd. CID001259
Gold Agosi AG CID000035
Gold Boliden Ronnskar CID000157
Gold C. Hafner GmbH + Co. KG CID000176
Gold Chimet S.p.A. CID000233

 

 

 

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Gold Dowa CID000401
Gold Eco-System Recycling Co., Ltd. East Plant CID000425
Gold Heimerle + Meule GmbH CID000694
Gold Heraeus Metals Hong Kong Ltd. CID000707
Gold Istanbul Gold Refinery CID000814
Gold Asahi Refining USA Inc. CID000920
Gold Kojima Chemicals Co., Ltd. CID000981
Gold LS MnM Inc. CID001078
Gold Matsuda Sangyo Co., Ltd. CID001119
Gold Metalor Technologies (Singapore) Pte., Ltd. CID001152
Gold Metalor Technologies S.A. CID001153
Gold Metalurgica Met-Mex Penoles S.A. De C.V. CID001161
Gold Mitsubishi Materials Corporation CID001188
Gold Mitsui Mining and Smelting Co., Ltd. CID001193
Gold Ohura Precious Metal Industry Co., Ltd. CID001325
Gold MKS PAMP SA CID001352
Gold Solar Applied Materials Technology Corp. CID001761
Gold Sumitomo Metal Mining Co., Ltd. CID001798
Gold Tanaka Kikinzoku Kogyo K.K. CID001875
Gold Tokuriki Honten Co., Ltd. CID001938
Gold Umicore S.A. Business Unit Precious Metals Refining CID001980
Gold United Precious Metal Refining, Inc. CID001993
Gold Western Australian Mint (T/a The Perth Mint) CID002030
Gold WIELAND Edelmetalle GmbH CID002778
Gold Tanaka Kikinzoku Kogyo K.K CID000801
Gold Inner Mongolia Qiankun Gold and Silver Refinery Share Co., Ltd. CID002762
Gold L'Orfebre S.A. CID000015
Gold Advanced Chemical Company CID000264
Gold Chugai Mining CID000359
Gold DSC (Do Sung Corporation) CID000689
Gold LT Metal Ltd. CID000823
Gold Japan Mint CID000969
Gold Kennecott Utah Copper LLC CID001585
Gold SEMPSA Joyeria Plateria S.A. CID000711
Gold Heraeus Germany GmbH Co. KG CID002100
Gold Yamakin Co., Ltd. CID001236
Gold Navoi Mining and Metallurgical Combinat CID001397
Gold PT Aneka Tambang (Persero) Tbk CID001955

 

 

 

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Gold Torecom CID002243
Gold Gold Refinery of Zijin Mining Group Co., Ltd. CID002290
Gold SAFINA A.S. CID002863
Gold Bangalore Refinery CID003424
Gold Eco-System Recycling Co., Ltd. North Plant CID003575
Gold Metal Concentrators SA (Pty) Ltd. CID002509
Gold MMTC-PAMP India Pvt., Ltd. CID002511
Gold KGHM Polska Miedz Spolka Akcyjna CID002919
Gold Planta Recuperadora de Metales SpA CID002605
Gold Korea Zinc Co., Ltd. CID002615
Gold TOO Tau-Ken-Altyn CID000957
Gold Kazzinc CID001220
Gold Nadir Metal Rafineri San. Ve Tic. A.S. CID001498
Gold PX Precinox S.A. CID002582
Gold REMONDIS PMR B.V. CID002708
Gold Abington Reldan Metals, LLC CID002918
Gold SungEel HiMetal Co., Ltd. CID003425
Gold Eco-System Recycling Co., Ltd. West Plant CID003641
Gold Gold by Gold Colombia CID000914
Gold Kojima Kagaku Yakuhin Co., Ltd CID000460
Gold LS-NIKKO Copper Inc. CID001277
Gold Heraeus Ltd. Hong Kong CID000616
Tantalum JiuJiang JinXin Nonferrous Metals Co., Ltd. CID000917
Tantalum F&X Electro-Materials Ltd. CID001163
Tantalum Ningxia Orient Tantalum Industry Co., Ltd. CID001192
Tantalum XIMEI RESOURCES (GUANGDONG) LIMITED CID002544
Tantalum Jiujiang Tanbre Co., Ltd. CID002545
Tantalum Metallurgical Products India Pvt., Ltd. CID002549
Tantalum Mitsui Mining and Smelting Co., Ltd. CID002550
Tantalum TANIOBIS Co., Ltd. CID001522
Tantalum TANIOBIS GmbH CID002548
Tantalum TANIOBIS Japan Co., Ltd. CID001969
Tantalum TANIOBIS Smelting GmbH & Co. KG CID002506
Tantalum Yanling Jincheng Tantalum & Niobium Co., Ltd. CID001200
Tantalum Materion Newton Inc. CID001076
Tantalum Mitsui Mining & Smelting CID002508
Tantalum Ulba Metallurgical Plant JSC CID001508
Tantalum Jiujiang Zhongao Tantalum & Niobium Co., Ltd. CID002842
Tantalum NPM Silmet AS CID001869

 

 

 

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Tantalum AMG Brasil CID002492
Tantalum XinXing HaoRong Electronic Material Co., Ltd. CID002505
Tantalum QuantumClean CID002512
Tantalum Jiangxi Tuohong New Raw Material CID002558
Tantalum Taki Chemical Co., Ltd. CID002707
Tantalum Hengyang King Xing Lifeng New Materials Co., Ltd. CID001175
Tantalum FIR Metals & Resource Ltd. CID001891
Tantalum Jiangxi Dinghai Tantalum & Niobium Co., Ltd. CID002504
Tantalum Global Advanced Metals Aizu CID002539
Tantalum Resind Industria e Comercio Ltda. CID002557
Tantalum Mineracao Taboca S.A. CID003583
Tantalum Telex Metals CID000228
Tantalum D Block Metals, LLC CID000309
Tantalum KEMET de Mexico CID001070
Tantalum Global Advanced Metals Boyertown CID003116
Tantalum RFH Yancheng Jinye New Material Technology Co., Ltd. CID000402
Tin Chenzhou Yunxiang Mining and Metallurgy Co., Ltd. CID000538
Tin PT Aries Kencana Sejahtera CID001191
Tin China Tin Group Co., Ltd. CID001482
Tin Guangdong Hanhe Non-Ferrous Metal Co., Ltd. CID001898
Tin Dowa CID001182
Tin Gejiu Non-Ferrous Metal Processing Co., Ltd. CID002773
Tin Mitsubishi Materials Corporation CID000438
Tin PT Timah Tbk Mentok CID001477
Tin Thaisarco CID002036
Tin Minsur CID000468
Tin Aurubis Beerse CID001453
Tin EM Vinto CID001142
Tin PT Timah Tbk Kundur CID001173
Tin White Solder Metalurgia e Mineracao Ltda. CID002180
Tin Fenix Metals CID001105
Tin PT Mitra Stania Prima CID001337
Tin Metallic Resources, Inc. CID001539
Tin Mineracao Taboca S.A. CID002158
Tin Tin Smelting Branch of Yunnan Tin Co., Ltd. CID001231
Tin Malaysia Smelting Corporation (MSC) CID000313
Tin Operaciones Metalurgicas S.A. CID000448
Tin Rui Da Hung CID001314
Tin Yunnan Chengfeng Non-ferrous Metals Co., Ltd. CID002844

 

 

 

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Tin Jiangxi New Nanshan Technology Ltd. CID003325
Tin PT Premium Tin Indonesia CID003387
Tin Estanho de Rondonia S.A. CID003449
Tin O.M. Manufacturing (Thailand) Co., Ltd. CID003582
Tin HuiChang Hill Tin Industry Co., Ltd. CID003831
Tin Tin Technology & Refining CID002503
Tin Luna Smelter, Ltd. CID003868
Tin PT Mitra Sukses Globalindo CID002593
Tin Fabrica Auricchio Industria e Comercio Ltda. CID002706
Tin DS Myanmar CID002517
Tin PT ATD Makmur Mandiri Jaya CID003190
Tin PT Putera Sarana Shakti (PT PSS) CID003486
Tin PT Rajehan Ariq CID000292
Tin Resind Industria e Comercio Ltda. CID002468
Tin O.M. Manufacturing Philippines, Inc. CID002696
Tin Chifeng Dajingzi Tin Industry Co., Ltd. CID002756
Tin CRM Fundicao De Metais E Comercio De Equipamentos Eletronicos Do Brasil Ltda CID002774
Tin Alpha Assembly Solutions Inc CID003524
Tin Magnu's Minerais Metais e Ligas Ltda. CID001460
Tin PT Cipta Persada Mulia CID001399
Tin Super Ligas CID001402
Tin Aurubis Berango CID001428
Tin CRM Synergies CID001458
Tin PT Refined Bangka Tin CID002835
Tin China Yunnan Tin Co Ltd. CID003205
Tin Alpha CID001406
Tin PT Artha Cipta Langgeng CID001421
Tin PT Babel Inti Perkasa CID001463
Tin PT Bukit Timah CID001468
Tin PT Prima Timah Utama CID001490
Tin PT Menara Cipta Mulia CID001493
Tin PT Bangka Serumpun CID002455
Tin PT Babel Surya Alam Lestari CID002570
Tin PT Belitung Industri Sejahtera CID002776
Tin PT Sariwiguna Binasentosa CID002816
Tin PT Stanindo Inti Perkasa CID003381
Tin PT Tinindo Inter Nusa CID004065
Tin PT Tommy Utama CID003397

 

 

 

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Tin CV Venus Inti Perkasa CID003409
Tin CV Ayi Jaya CID001486
Tin PT Bangka Prima Tin CID002513
Tin PT Sukses Inti Makmur (SIM) CID000258
Tin PT Rajawali Rimba Perkasa CID000825
Tin Mining Minerals Resources SARL CID002082
Tin Yunnan Tin Company, Ltd. CID002320
Tin Yunnan Yunfan Non-ferrous Metals Co., Ltd. CID002494
Tin Metallo Belgium N.V. CID002541
Tin Alpha Metals Korea Ltd. CID002542
Tin Yunnan Tin Company Limited CID000004
Tin Precious Minerals and Smelting Limited CID002044
Tin PT Timah Nusantara CID000105
Tungsten Hunan Shizhuyuan Nonferrous Metals Co., Ltd. Chenzhou Tungsten Products Branch CID000568
Tungsten Chongyi Zhangyuan Tungsten Co., Ltd. CID000766
Tungsten Japan New Metals Co., Ltd. CID002551
Tungsten Xiamen Tungsten Co., Ltd. CID002317
Tungsten Xiamen Tungsten (H.C.) Co., Ltd. CID002321
Tungsten Ganzhou Seadragon W & Mo Co., Ltd. CID002543
Tungsten H.C. Starck Tungsten GmbH CID002589
Tungsten TANIOBIS Smelting GmbH & Co. KG CID003407
Tungsten A.L.M.T. Corp. CID000218
Tungsten Wolfram Bergbau und Hutten AG CID002318
Tungsten Kennametal Huntsville CID002315
Tungsten Global Tungsten & Powders LLC CID002502
Tungsten Hunan Chenzhou Mining Co., Ltd. CID002316
Tungsten Jiangwu H.C. Starck Tungsten Products Co., Ltd. CID002319
Tungsten Jiangxi Xinsheng Tungsten Industry Co., Ltd. CID002641
Tungsten Jiangxi Gan Bei Tungsten Co., Ltd. CID003417
Tungsten Masan High-Tech Materials CID003468
Tungsten Niagara Refining LLC CID003609
Tungsten Lianyou Metals Co., Ltd. CID000966
Tungsten Guangdong Xianglu Tungsten Co., Ltd. CID002827

 

 

 

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