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朗新科技:2021年度环境、社会及管治(ESG)报告(英文版)2022-04-26  

                                     LongShine Technology Co., Ltd.

 nvironmental, Social and Governance
                    (ESG) Report 2021
                                                           1                                        3                                           5
                         LongShine Technology                       Purse Excellent                          Take Social
                                                                    Management and Advocate                  Responsibility and Repay
                    Company Prole                         10        Sustainable Development                  the Society Wholehearted

                    Corporate Culture                     12
                                                               Adhere to compliance and            32   Adhere to Low-Carbon Operation         60
                    Main Business                         12   ecient management
                                                                                                        Intelligent Anti-Pandemic Activities   62
                    Sustainable Development               14   Innovative Product Quality          36
                    Management                                 Management
                                                                                                        Assist Social Welfare                  63

                                                               Strengthen Information Security     43
                                                               Management

                                                           2   Standardize Supplier Management     46
About This Report         evelop Digital                                                                     Future Prospect
                         Technology and Lead
                         A Low-Carbon Future
                                                                                                    4
                                                                    Adhere to People-                        Key Performance Indicator
                    Enable Low-Carbon Energy Transition   20        Oriented Principle and
                                                                    Assist Employees Growth
Chairman's Speech   Lead A Convenient Low-Carbon Life     24                                                 Feedback Form


                                                               Protect The Interest of Employees   50


                                                               Support Employee Development        52


                                                               Care for Employees' Life            54
LongShine Technology Co., Ltd.       Environment, Social and Governance (ESG) Report 2021                                                                                                                                                            05




         About This Report

This report is the rst Environmental, Social and Governance (ESG) Report issued by LongShine Technology Group Co., Ltd.

Based on the principles of objectivity, standardization, transparency and comprehensiveness, it discloses in detail the practice

and achievements of LongShine Technology in practicing sustainable development.




               Time Frame                                                                                                            Abbreviation description
               The time frame of this report is from January 1, 2021 to December 31, 2021, with part of its contents trace back to   For ease of expression and reading, LongShine Technology Group Co., Ltd. is also represented by 'LongShine

               previous years.                                                                                                       Technology', 'company' and 'we' in this report.




               Organizational Scope                                                                                                  Data Description
               This report takes LongShine Technology Group Co., Ltd. as the principal part, and further includes its branches,      All information and data quoted in this report are quoted from the company's ocial documents, statistical

               subsidiaries and directly aliated organizations.                                                                      records and nancial reports. The content of this report is provided by employees and partners of LongShine

                                                                                                                                     Technology. The sole purpose of this report is to disclose the progress of sustainable development management

                                                                                                                                     of LongShine Technology, not for commercial purposes.




               Compilation References
               This report is compiled and edited with extensive reference to the Guidelines for the Standardized Operation of
                                                                                                                                     Report acquisition
               Listed Companies of Shenzhen Stock Exchange, the Guidelines for the Disclosure of Environmental, Social
                                                                                                                                     E-mail:jiyue@longshine.com
               Responsibility and Corporate Governance Information of Listed Companies of Shenzhen Stock Exchange (Draft
                                                                                                                                     Address:18F, North Star Times Tower, No.8 Beichen East Road, Chaoyang District, Beijing
               for advice) and the Sustainable Development Report Standards issued by the Global Reporting Initiative (GRI
                                                                                                                                     Web site:https://www.longshine.com/
               Standards).
LongShine Technology Co., Ltd.        Environment, Social and Governance (ESG) Report 2021                                                                                                                                                                        07




         Chairman's Speech

                                                                                                                                    Electricity eectively connected to 0.1 million  lectric vehicles charging stations and provided services to 0.5 million electric

                                                                                                                                    vehicle users. In 2021, the number of charging stations connected to LongShine  indiantu electric vehicle aggregation charging

                                                                                                                                    platform expanded to 0.3 million, serving over 2.1 million car owners, with an eight-fold increase in charging capacity. Mean-

                                                                                                                                    while, it began to explore a new scenario of green travel service which integrates photo-voltaic, energy storage, and charging.

                                                                                                                                    It is foreseeable that as electric vehicles become the primary mode of transportation, such a paradigm shift will have a

                                                                                                                                    profound eect on the entire energy industry, creating additional market opportunities for LongShine.



                                                                                                                                    Along with the business development, we fully recognize that green and low-carbon are the keys to high-quality economic and

                                                                                                                                    social development, prompting us to re-examine corporate social responsibility and release the Environmental, Social and

                                                                                                                                    Governance report for the rst time. The sustainability of the business is strongly intertwined to the support of partners, govern-

                                                                                                                                    ments, employees, and shareholders. In the challenging year of 2021, we overcame the impact of unfavourable factors like the

                                                                                                                                    pandemic, created value for partners, protected the rights and interests of employees, provided space for employees' growth,

                                                                                                                                    and participated in public welfare undertakings. At the same time, we invested in constructing LongShine Zero Carbon Technol-

                                                                                                                                    ogy Industrial Park. The company was named one of China's top 500 enterprises in 2021 for its exceptional contributions to

                                                                                                                                    charity and public welfare.



                                                                                                                                    Using this report as a guide, LongShine Technology will continue to strengthen its ESG governance, internal corporate gover-

In September 2020, President Xi Jinping promised the world that “China will strive to peak carbon dioxide emissions by 2030        nance, and business ethics, rmly establish a defense line of information security and privacy protection, pay attention to talent

and achieve carbon neutrality by 2060”. China's 'dual carbon' goal will entail signicant economic and social systemic chang-       development needs, place an emphasis on professional talent training, and implement the concept of green development.

es. LongShine Technology has persistently focused on the energy and power sector related to national energy security and            LongShine will give full play to its advantages of digital technologies in the energy sector, enable low-carbon energy transition,
economic development. It has become the main battleeld of carbon emission reduction.                                                lead a green and low-carbon life. By constructing energy internet scenarios, providing care for vulnerable groups, and practic-

                                                                                                                                    ing social responsibilities, LongShine will diligently contribute to the sustainable development of society.
In the past 20 years, the digital revolution of the communication industry has advanced a tremendous development of its own

and at the same time, derived the current consumer internet. The power energy industry is in a similar circumstance to that of
                                                                                                                                    LongShine Technology is at the crossroad of energy  evolution and the digital revolution.  igitization makes the digital world a
the communication industry 20 years ago, undergoing massive changes in digitization. Beginning in 2020, China's energy
                                                                                                                                    better place, enables energy consumption to be greener, more convenient and more ecient is not only a generational oppor-
system will transition from a relatively closed, traditional fossil fuel-based, secure, and unied one-way power grid to a

multi-level network-based new power system with an increasing share of renewable energy, openness, and interactive                  tunity, but also a mandatory mission. LongShine Technology will seize the great opportunity of 'double carbon,' joining hands

supply-demand, intelligent. In this new energy system, 'the proportion of new energy will gradually increase,' 'energy supply       with partners to help achieve the 'double carbon' goal and create extraordinary value for partners, government, employees,

will shift from concentration to distribution,' and 'energy system will become more open and market-oriented, these character-      and shareholders with the steady operation and sustainable development, and excellent service. LongShine will rmly stand at
istic developments will turn into strategic trends, and the key element connecting these trends is ‘digitization’.                the forefront of the new era of ‘energy revolution + digital revolution’!


As a digitization company deeply involved in the power energy industry for over 20 years, with its leading energy digitization

capabilities and rich experience in energy consumption scenario operation, LongShine has been deeply involved in the
                                                                                                                                                                                                                  Chairman:
digitization transition of the energy industry. We believe that integrating energy and power and digital technology will generate

new forms of power and energy,new market operation mechanisms and set the stage for new power load and power

consumption scenarios. Taking the electric vehicle aggregation charging service as an example, in 2020, LongShine's  indiantu                                                                                                                         March 2022
      01
            About
            LongShine Technology

 ongShine Technology invariably adheres to the corporate mission of digitization enables

energy consumption greener, more convenient and more ecient. While having cultivated in

power and energy digitization and achieved excellent business performance, the company

stands rmly in supporting sustainable development, actively communicates with all stake-

holders, and has contributes to the carbon neutralization development  y leveraging its indus-

try advantages in digitized energy industry and rich scenario operation experience.
LongShine Technology Co., Ltd.         Environment, Social and Governance (ESG) Report 2021                                                                                                                                                                                              11




   Company Prole

Founded in 1996, LongShine Technology Group Co., Ltd. has been focusing on providing power and energy consumption
                                                                                                                                                              Calendar Year Honor
services. The business model of Business to Business to Customer (B2B2C) focuses on the two driving development strategies

of 'Energy Digitization + Energy Internet.' LongShine Technology (300682 SHE) was listed on the Shenzhen Stock Exchange in

August 2017.                                                                                                                                                                      2021 Leading Enterprise in Digital Ecology Smart Energy Sector


Since 2012, with  ity of Wuxi as its headquarters, LongShine technology has set up 8 R&D centers in various regions, with                                                         2021 Top 500 Chinese Enterprises on Charity
business and branches in 31 provinces and regions. It now has more than 6,000 employees. LongShine Technology has continu-

ously provided digital technology and operation services for over 12,000 government and enterprise customers and over 350                                                         Enlisted as one of the top 100 Software Enterprises by The Ministry of Industry a
                                                                                                                                                                                  nd Information Technology in 2021
million household users in China.

                                                                                                                                                                                  2021 Top 100 Competitive Enterprises in Software and Information Technology
                                                                                                                                                                                  Service Sector


Performance Indicators in 2021                                                                                                                                                    Top ten leading enterprises in China's software and information service industry
                                                                                                                                                                                  in 2021


                                                                                                                                                                                  China's leading digitization energy application enterprise in 2021


                                          et income attributed
    Operation revenue: RMB                                              Cash dividend: RMB              Total number of employees
                                         to shareholders: RMB
                                                                                                                                                                                                                                              two driving development strategies of
   ,639  illion yuan                    47 million yuan               32 million yuan                            ,020                                                                                                                         'Energy Digitization + Energy Internet'.




                                                                                                                                                                                              LongShine was listed on
                                                                                                                                                                                                                                                              2021
                                                                                                                                                                                              Stock Exchange GEM sector.
                                                                                                                                      LongShine built a domestic energy
Development History of LongShine Technology                                                                                          service scenario and introduced the                                                           2019
                                                                                                                                     strategic investor Ant Group
                                                                                 IDG Capital invested                                                                                                     2017
                             Hangzhou LongShine Co., Ltd
                                                                                 in LongShine Technology.
                                                                                                                                                                              2015
                             was established
                                                                                                                                                                                                                        completed the restructuring of
                                                                                                                                                   2014                                                                 Bang Dao Technology and

                                                                                                                          2012                                                                                          YSTen Technology.
                                                                                             2010
                                                                 2005                                                                                        trategic development of charging stations,
          1996                         2003                                                                                                                 distributed photo-voltaic and
                                                                                                                                                            other new energy services.
                                                                                                            the headquarter of LongShine
                                                                                                            relocated to the city of Wuxi.
                                      Amdocs, a listed company in the US NASDAQ
Beijing LongShine Co., Ltd            Stock Exchange, invested in LongShine Technology,
was founded.                          and fully introduced the world's leading management system.
LongShine Technology Co., Ltd.       Environment, Social and Governance (ESG) Report 2021                                                                                                                                                                                  13




   Corporate Culture


                                                                                                                                                  In the power and energy industry, LongShine Technology provides core systems for energy consumption services and

                                                                                                                                                  other solutions for major enterprise customers including State Grid and China Southern Power Grid. The power and
                                                                                                                                     Energy
                                                                                                                                                  energy customers served by the company locates in 22 provinces / autonomous regions / municipalities directly
                                                                                                                                   Digitization
  Mission statement                 Value proposition                     Five principles of business operation                                   under the central government, serving more than 270 million energy end users. The company actively explores the

                                                                                                                                                  new energy industry and provides distributed photo-voltaic cloud platform and other products as well as SAAS
                                                                      Insist on creating value through technology innovation
                                                                                                                                                  services. In the gas industry, the company provides core system solutions for large gas enterprises such as China
      igitization makes
                                         ely on digital                           Adhere to central customer spirit                               Resources Gas and China Gas. With rich experience in business and high-quality technical services, LongShine
      the digital world
                                      services anddigital                                                                                         Technology has established a solid and leading position in the eld of power and energy digitization.
  a better place, enables                                                Adhere to lawful and legally compliant operation
                                      operation,create
 energy consumption to be                                               dhere to the mission of enabling employees to gain
                                      new values,share
 greener, more convenient
                                          new values                                   the sense of fullment
    and more ecient.
                                                                    Adhere to the establishment of a sound corporate ecology                      LongShine Technology develops its own energy internet service platform and builds energy consumption service

                                                                                                                                                  scenarios with Alipay, UnionPay and other portal.
                                                                                                                                      nergy
                                                                                                                                    Internet          Concerning the household energy consumption, the company is ranked as the largest online service platform in

                                                                                                                                                      China, covering over 400 cities nationwide. The company has provided professional and convenient online

朗新             【朗新】,语出《淮南子》“日开天霁,朗而新之”其意是描绘宇宙形成、天地初开时一派清                                                    household payment services for over 5300 utility providers of water, electricity and heat, and over 350 million

LongShine        新、隽朗的天气。朗新科技以龙的精神,不断突破,勇于创新,聚力数字化,创造新价值,让数                                                 household users. It has promoted quantitative household energy services and low-carbon life services, as well as
                 字化的世界更美好。
                                                                                                                                                      explored household energy management scenarios.


                                                                                                                                                      In the eld of electric vehicle charging, LongShine created New Electricity Approach, a third-party integrated

                                                                                                                                                      charging service platform, and provides 'faster, better and more commercial' charging services to new energy

                                                                                                                                                      owners. By the end of 2021, the  indiantu platform has connected to over 400 charging operators, with over 0.32

                                                                                                                                                      million charging station in operation, over 2.1 million new energy charging car owners in service, and an accumu-


   Main Business                                                                                                                                      lated charging capacity of over 630 million kWh. A classic energy operation service mode is being formed.




LongShine Technology is a leading technology enterprise in the energy industry, providing power and energy consumption
                                                                                                                                                  The company has formed a partnership of mutual trust and win-win cooperation with operators of China Mobile,
services. It focuses on the double development strategies of "energy digitization + energy Internet" with a B2B2C business
                                                                                                                                                  Internet TV License Holders Future TV, and local radio and television stations to serve Home Smart TV users jointly.As
model; something deeply rooted in the company is the energy industry. On the one hand, it has established a complete solution
                                                                                                                                    Smart TV      a technical service provider, the company ensures standardized business, ecient operation and good user
system assisting customers like State Grid, China Southern Power Grid, Gas Group, and Photo-Voltaic Power Station in achieving
                                                                                                                                                  experience. It is responsible for the construction of Smart TV platform, system maintenance, operation support, big
digital upgrading. It optimized its Mid-End (service and resource allocation platform) capacity, and its platform products aided
                                                                                                                                                  data analysis, business promotion, after-sales and customer service to ensure the viewing of smart TV family users,

in the market-driven development of new power systems and the innovation and upgrading of energy industry services. On the                        and participates in the dividend sharing based on the prots gained from active users.

other hand, the company aims to accomplish the electrication transition and develop a scenario of terminal energy consump-

tion. It will provide new platforms for end-users to access various energy services, including household energy consumption,

electric vehicle charging, and energy eciency management, through Alipay, UnionPay, and City Super Application portals. The

company is developing a new energy internet service platform to manage the energy demand associated with sector service

and collaborate with strategic partners so as to realize the digitization of energy sector.
LongShine Technology Co., Ltd.       Environment, Social and Governance (ESG) Report 2021                                                                                                                                                                                                                      15




   Sustainable Development Management

Based on our mission  Digitization makes the digital world a better place, enables energy consumption to be greener, more
                                                                                                                                                Stakeholders      Issues of concerns                     Response channel                            Communication eectiveness
convenient and more ecient, we actively provide economic, social, and environmental values for customers, employees,

investors, partners, and other stakeholders through our eorts allowing everyone to be beneted from the development.
                                                                                                                                                               Lawful operation
Establishing a sustainable development management system improves the management level and the company's perfor-                                Government     Pay taxes according to law           Daily report and communication               Strategic cooperation with local governments
                                                                                                                                                    and
                                                                                                                                                               Increase employment opportunities    Special research and on-site meeting         Create a good external environment for corporate
mance in terms of environment, society, and corporate governance. In 2021, we established a sustainable development                             supervising
                                                                                                                                                               Promote sustainable and healthy      Forum and exchange project                   development
                                                                                                                                                institutions
                                                                                                                                                               economic development
management system led by the Board of Directors, guided by the ESG working unit, and implemented by relevant functional

departments. The Board of Directors is responsible for the overall corporate strategic planning upon achieving sustainable

development, supervising and guiding the formulation and implementation of ESG objectives, and coordinating the manage-                                                                             Annual report and announcement               Establish good relationship with investors
                                                                                                                                                Shareholders                                        Road show
                                                                                                                                                               Satisfactory return on investment                                                 Improve investor trust
                                                                                                                                                     and
ment of ESG aairs.                                                                                                                                             Good market value                    Investor conference                          Obtain support from shareholders and investors in
                                                                                                                                                  investors
                                                                                                                                                                                                    Shareholders meeting                         major decisions




                                                             Environmental     Procurement
                                                                                              Administration
                                                                                                               Operation and
                                                                                  service                      management                                                                                                                        Continuously   improve   the   business      according   to
                                                                                               department
                                                              aairs group      department                       department                                     Stable product supply
                                                                                                                                                                                                    Customer Symposium                           customer feedback
                                                                                                                                                               High quality and safe products
                                                                                                                                                 Customers     Considerate and convenient service
                                                                                                                                                                                                    Telephone service hot-line                   Customers' demands are eectively and timely solved
     LongShine                                                                                                                                                                                      Customer satisfaction survey                 The level of customer service has been continuously
                                                                                                                                                               Smooth communication channels
    Technology's                          ESG                                                                                                                                                                                                    improved
                         Board of                               Social           Human        Public welfare   Public relations     Corporate
                                        working                                 resources        service       and marketing      development
  ESG Governance         Directors                            aairs group
                                         group                                 department      department       department         department


      Structure
                                                                                                                                                               Fair procurement                                                                  Strengthen supplier management and improve supply
                                                                                                                                                  Business                                          Supplier conference
                                                                                                                                                               Honesty and mutual benet                                                          chain eciency
                                                                                                                                                  partner                                           Strategic cooperation
                                                              Governance        Securities     Legal aairs
                                                                                                               Accounting and       Quality
                                                                                                                                                               Long term stable cooperation                                                      Drive the common development with partners
                                                                                                               internal control   management
                                                                               department      department
                                                                group                                            department       department



                                                                                  Safety
                                                                             management and
                                                                                 product                                                                       Complete protection of rights and
                                                                               department                                                                                                                                                        Communication and interaction between employees
                                                                                                                                                               interests
                                                                                                                                                                                                    Sta congress                                 Clear career development path
                                                                                                                                                   Sta         Career development platform
                                                                                                                                                                                                    Complaint mailbox                            Create a harmonious working environment
                                                                                                                                                               Work life balance
                                                                                                                                                                                                                                                 Build a healthy and safe working environment
                                                                                                                                                               Occupational health




Stakeholders Communication                                                                                                                                                                                                                       Establish good community relations
                                                                                                                                                Communities    Community development                Community publicity
                                                                                                                                                                                                                                                 Create a good external environment for corporate
                                                                                                                                                 and NGOs      Build a harmonious community         Participation in public welfare activities
Enhancing the communication and participation of stakeholders is a crucial part of realizing sustainable development. We pay                                                                                                                     development


close attention to stakeholder demands and communicate with them via a variety of channels. According to the company's

characteristics and development and industry trends, we identify and actively establish a communication mechanism with
                                                                                                                                                                                                    Annual report and announcement
internal and external stakeholders, listen to their suggestions, and respond promptly. We pay visits to shareholders in mainland                               Financial performance                                                             Establish good relationship with the media
                                                                                                                                                                                                    Press conference
                                                                                                                                                   Media       Corporate governance                                                              Maintain the company's image and obtain public
China and abroad, organize performance symposiums, and actively participate in relevant investment conferences.                                                Information disclosure
                                                                                                                                                                                                    Press releases and publications
                                                                                                                                                                                                                                                 recognition
                                                                                                                                                                                                    Media interview




The company provides direct communication channels for local stakeholders to listen to their suggestions. We highly value the
                                                                                                                                                               Practice energy conservation and     Annual report and announcement
concerns and suggestions of all relevant parties and will respond and handle them promptly and properly. Any stakeholders                                      emission reduction                   Public survey of project and                 Practice energy conservation and emission reduction

                                                                                                                                                Environment    Practice green operation             environmental impact                         plan
related to the company's local business and development can send an email directly to jiyue@longshine.com to contact us for
                                                                                                                                                               Develop environmentally friendly     Environmental protection organization        Launch environmental protection products

                                                                                                                                                               products                             communication
company aairs.
LongShine Technology Co., Ltd.      Environment, Social and Governance (ESG) Report 2021                                                                                                                                                                                                                                                 17




   Sustainable Development Management


Judgment on Major Issues                                                                                                       We use an anonymous online questionnaire to select prioritized topics so to understand the impor-

Regarding the requirements on social responsibility in The Guidelines for The Standardized Operation of Listed Companies on    tance of sustainable development issues to internal and external stakeholders. Through the analysis

the Shenzhen Stock Exchange, LongShine Technology understands stakeholders' concerns, expectations, and demands for the        and calculation of the questionnaire data, the disclosure degree and the boundary of the topic are
company's sustainable development through various ways. We fully understand the degree of concern of stakeholders and
                                                                                                                               nally determined. Based on these, the analysis matrix of the critical topics on sustainable develop-
identify critical issues. We recognize and screen the sustainable development issues related to LongShine Technology through

the suggestions of the company's management, peer-to-peer benchmarking research domestically and abroad, media                 ment of LongShine technology is drawn.

information analysis, and on-site research.



                                                                                                                                                                  Moderate importance issues                                                 Major importance issues                                      Product R & D and innovation


                                                                                                                                                                                                                                                                                                                  VIP customer service
                                                                                                                                                                                                                                                          Protection of employees' rights and interests

                    Screening process of social responsibility topics                                                                                                                                                                                     Privacy and information security                   Leading the development
                                                                                                                                                                                                                                                                                                             of the industry


                                                                                                                                                                                                                                                                Compliance operation                       Sta training and education




                                                                                                                                                                                                                                                    Employee care


                                                                                                                                                                                                                       Occupational health and safety




                                                                                                                                   Importance to stakeholders
                                                                                                                                                                                                                                                        Intellectual property protection

                                                                                                                                                                                                           Stakeholder communication                                                                            Corporate governance




                                                                                                                                                                                                                                                                      Social welfare

                                                                                                                                                                                                           Anti-corruption


                                                                                                                                                                                                                                  Supplier management
                    Topics source                                                  Screening standards                                                                                                                                                                                         Low-carbon products




                                                                                                                                                                                                                                                                                                          green operation management
        Suggestions from the company's                                     Contribution to sustainable development
                                                                                                                                                                                                Resource utilization
                                                                                                                                                                                                           Addressing climate change
        management team                                                    General concerns of stakeholders
                                                                                                                                                                              Greenhouse gas emission and management

        Analysis and suggestions from internal                             Focus points of social responsibility
                                                                                                                                                                                     Pollutant discharge

        and external experts                                               guidelines
                                                                                                                                                                  Low importance issues
        Media information analysis                                         Meet the company's strategic development
                                                                                                                                                                Environment              Importance to the sustainable development of LongShine Technology
        Research on peer bench-marking                                     needs
                                                                                                                                                                Society


        domestically and abroad                                                                                                                                 Governance



        Standard guidelines for social responsibility

                                                                                                                                                                 Matrix of signicant issues concerning ESG of LongShine Technology in 2021
      02
            Develop Digital
            Technology and Lead A
            Low-Carbon Future

 he 'double carbon' strategy promotes the sustainable development of government adminis-

tration, corporate production, and people's lifestyle. LongShine Technology is a leading tech-

nology enterprise in the power and energy industry,focuses on the dual-wheel-drive strategy

of 'energy digitization + energy Internet', and continues to concentrate on digital transition and

upgrading of the energy industry as well as service operation of the energy internet platform.

The company is at the intersection of 'energy revolution + digital revolution'. Digitization makes

the digital world a better place, enables energy consumption to be greener, more convenient

and more ecient, which is not only an opportunity of the era, but also our indispensable

mission.
LongShine Technology Co., Ltd.               Environment, Social and Governance (ESG) Report 2021                                                                                                                                                                                                                               21




    Enable Low-Carbon Energy Transition

LongShine Technology focuses on the power and energy industry, deeply participates in digital transformation and the

construction of new power systems, complies with the market-oriented development trend, helps customers in the power and
                                                                                                                                                              Case

energy industry reduce costs and increase eciency internally, expand innovation externally, and improve energy utilization

eciency and energy service quality.                                                                                                                           Smart green energy cloud
                                                                                                                                                              The 'Smart Green Energy Cloud' of Hebei Provincial Energy Big Data Centre jointly built by State Grid Hebei  lectric Power Company and LongShine Technology

                                                                                                                                                              Group is a exploration of the digital transition in power industry , which provides essential digital support for the construction of new power systems and the
Assisting energy enterprises to realize the digital management of energy in the entire industrial chain is the key to the realiza-
                                                                                                                                                              development of digital economy in Hebei province.As the technical platform and operation service portal of Hebei Energy Big Data Centre, Smart Green
tion of the dual carbon path of energy by LongShine Technology. The goal of 'double carbon' promotes the continuous deepen-
                                                                                                                                                              Energy Cloud breaks the industry information barrier, gathers energy data on electricity, oil, gas, and water, and data in meteorology, transportation, nance,
ing of the digital transformation of the energy industry. While supporting the pilot  mplementation of the  ew core system of
                                                                                                                                                              and other elds. The  latform holds a 'green energy development map' that monitors carbon emission, a function to monitor industry development, water
power consumption services of the State Grid, the company has also become the main partner of power and energy customers
                                                                                                                                                              resource conservation and air pollution prevention, standardized power credit products, and other functions. The system provides agile and open data
in the elds of new  rid digital infrastructure and energy service operation. LongShine has established energy big data centers
                                                                                                                                                              analysis and sharing services for government departments, nancial institutions, energy-consuming enterprises, and ecological partners.Smart Green

with several provincial energy enterprises, developed various data products such as power index and carbon emission index,                                    Energy Cloud successfully collects internal and external data, builds the interactive channel between data and services through the digital ecological model

provided energy big data support services for governmental pandemic prevention and control, resumption of work and factory                                    of 'platform+product+operation,' and fullls the integrated entire chain management model and control of energy big data based on ensuring data security.

production, industrial support as well as carbon emission monitoring. With the promotion of electricity price reform and the                                  The platform gives full play to the advantages of various resources and power data as a 'barometer,' establishes a high-value energy big data ecosystem,

                                                                                                                                                              uses data to reect economic development and industry dynamics, assists the government in scientic decision-making, helps enterprises to save energy and
formation of a unied national power market, the company has developed a variety of products such as market-oriented
                                                                                                                                                              reduce consumption, promotes the transition and upgrading of the energy industry and ensures the improvement of people's livelihood.
energy sales and electricity load forecasting, which have been successfully applied to  rid enterprises in many provinces and

cities.



     Case


     Construction of  igital and smart power supply stations

     LongShine Technology cooperates with State Grid Zhejiang Electric Power  ompany to  upport Rural Revitalization, and helps Zhejiang Electric Power 

     company to build a digitized smart power supply station platform with 'management collaborative integration, business worksheets driving, personnel

     all-round eciency and smart operation', realize the business model of 'one platform and one terminal' of power supply station, and signicantly improve

     the management of worksheets, worksheets digitization and digital performance.
LongShine Technology Co., Ltd.                Environment, Social and Governance (ESG) Report 2021                                                                                                                                                                                           23




   Enable Low-Carbon Energy Transition


                                                                                                                                                                    Industry Awards
    Case
                                                                                                                                                                    As a leading digital energy technology and operation service provider in China, LongShine Technology actively participated in

                                                                                                                                                                    industry forums to exchange and discuss technology innovation and development transition of the energy industry. In 2021, the
    LongShine technology assists Guizhou  ower grid company to build a 'measurement
    automation system.'                                                                                                                                             company was invited to participate in the National Energy Inter-Net Conference.During the meeting, the company's representa-

                                                                                                                                                                    tives shared innovative applications and classic cases on energy digitization, integrated energy services, and distributed
    LongShine Technology assists Guizhou Power Grid Co., Ltd. in developing the 'Smart Brain' of the power grid and assists the power grid to fulll the automatic

    metering system.                                                                                                                                                photovoltaic cloud, and was recognized as the Excellent Partner of the National Energy Inter-Net Industry and Technology

                                                                                                                                                                    Innovation Alliance in 2020-2021.
        Intelligent meter reading: it has the functions of centralized automatic meter reading, accounting, and distribution, resolves the problems of time-con-

        suming, laborious, and inaccurate manual meter reading, and reaches intelligent management of electricity bill reading.


        Intelligent management: it focuses on electric energy data acquisition and application and has the functions of metering device monitoring, metering

        operation and maintenance management, centralized management of electric energy data, etc. The abnormal analysis and management of line loss by

         ierent region, voltage level, line, and station area can timely update the power grid fault and eectively improve the power supply service capacity and

        line loss quality control.


    In addition, based on the measurement automation system, LongShine Technology fully excavates the application value of electric energy data and provides

    intelligent services for the government and enterprises. By building a big data analysis model, the company provides data support for government monitor-

    ing and power consumption statistics in high energy consumption, nance, construction, and other industries. In enterprise production management, the

    metering automation system can accurately locate the weaknesses of the power  upply, such as 'low voltage' and 'bottleneck,' shorten the time required for

    judgment on power failure and improve the energy production eciency of enterprises.

    As of December 31, 2021, the system has supported more than 0.56 million metering terminals in Guizhou, with about 18 million users. The average automatic

    meter reading rate is as high as 99.8%, avoiding the waste of resources caused by power waste, and continuously promoting the  igital transition and

    upgrading in the power industry to achieve green and low-carbon development.




                                                                                                                                                                                 LongShine joined the Award Ceremony of National Energy Internet Conference
LongShine Technology Co., Ltd.        Environment, Social and Governance (ESG) Report 2021                                                                                                                                                                                                            25




   Lead a Convenient Low-Carbon Life

By building its own energy internet service platform, LongShine Technology connects clean energy and consumption scenarios,
                                                                                                                                   Payment               interconnect with Alipay, Unionpay, Bank APP, City Super APP and other open payment platform, provide the vast amount of users with
improves new energy eciency, provides end energy users with new scenarios of energy services, including household energy           function
                                                                                                                                                         convenient payment portal and payment channel.
consumption, electric vehicle charging, smart energy conservation and so on, and reduces carbon emissions from daily life and

industrial production.

                                                                                                                                     uto-
                                                                                                                                   payment               provide  uto-payment function to solve problems such as in the situation of water and power supply being stopped due to users

                                                                                                                                   function              forgetting to pay, and it also helps users to avoid delayed payment fees.

 ousehold Energy Consumption

                                                                                                                                 Operational             attract users to pay online by means of payment with cost reduction.
                                                                                                                                  activities

                 Number of users                        Average daily                        Connection to

                  accumulated:                          payment:                            public service                     Meanwhile, we have been continuously making eorts to improve the connection coverage with various public service institu-
                 350 million users                  over 5.5 million times                 institutions:5300+                   tions, such as those supplying water, gas and heat. These providers are relatively scattered, and the coverage of intelligent

                                                                                                                                 billing meter is low, and still in the stage of rapid development. We connect these  tility institutions by providing SAAS and other

                                                                                                                                 services, in order to enable more users to enjoy convenient online payment and contribute to realizing a low-carbon life.



With the product mission of 'let everyone enjoy convenient services' and 'let every family practice energy conservation', Bang

Dao Technology has developed an online payment platform, provided a number of convenient payment services, and realized

the online  tility bill payment service, including water, electricity, gas, property service fee and television broadband fee.       Case



                                                                                                                                     Bang Dao Technology helps Inner Mongolia to realize online payment

                                                                                                                                     Improving the payment service project is one of the important livelihood projects in Inner Mongolia. In view of the weak information infrastructure of thermal

                                                                                                                                     energy enterprises located in Inner Mongolia, Bang Dao Technology provides thermal energy institutions with a digital customer service cloud (SAAS)

                                                                                                                                     platform, which realizes the integrated management of the whole process of thermal energy business while inter-connecting its functionalities with the open

                                                                                                                                     payment platform.



                                                                                                                                         It can inter-connect with Alipay, WeChat,  nionPay, Bank APP, City Super APP and other open payment platform, with users being able to pay online.



                                                                                                                                         It provides a modular service system. The utilities can select the entire business service module according to its own business attributes. The modular

                                                                                                                                         system realizes the entire process and integrated service functions such as customer management, meter-reading management, billing management,

                                                                                                                                         charging management and business analysis, and improve the digital function of online payment service.




                                                                                                                                     As of December 31, 2021, Bang Dao Technology has provided high-quality and convenient revenue management system for 24 thermal enterprises in 12

                                                                                                                                     municipal level administrative regions of Inner Mongolia Autonomous Region, covering approximately 0.5 million users.


                                              Online Utility Payment Portal
LongShine Technology Co., Ltd.      Environment, Social and Governance (ESG) Report 2021                                                                                                                                                                          27




   Lead a Convenient Low-Carbon Life


 indiantu                                                                                                                         LongShine Technology's  indiantu  onnects with Alipay, 

                                                                                                                                  AutoNavi Map application, and other super trac portals, 

                                                                                                                                  breaks the technical barriers between dierent charging

                                                                                                                                  stations,  stablishes a fast charging platform with a single
                 The number of
                                                    The Accumulated                     Charging stations                         scan by mobile application. The platform prevents users from
                  V owners with
                                                   charging capacity:                     in operation:                           repeatedly downloading charging mobile applications of
                service provided:
                                                  630 million kilowatts                 over 0.32 million                         various brands. It also dramatically improves the charging
                 over 2.1 million
                                                                                                                                  experience of car owners provides exemplary management,

                                                                                                                                  quality service, and brand operation for charging station

                                                                                                                                  operators. Convenient and straightforward energy-charging
On the road to achieving the dual carbon goal, electric vehicles play an essential role in the energy transition process in the
                                                                                                                                  services stimulate the new development of electric vehicles
transportation sector. To improve the driving experience of  lectric vehicle users, LongShine Technology has directly hit the
                                                                                                                                  and enhance the transition towards a low-carbon life.
critical point of 'charging diculty' within the  lectric vehicle's industry chain. The company has independently developed the

aggregated energy-charging service platform, integrated upstream and down-stream sectors of  V industry, including leading

engine manufacturers, charging operators, vehicle service companies, and  o on, built a newly aggregated energy-charging

business that served operators and  V owners, eventually making the operation more ecient and making energy-charging                  Industry Award
services easier to access.
                                                                                                                                      In 2021, the 7th China International Electric Vehicle Charging and Replacement Industry Conference (BRICS Energy-Charging

                                                                                                                                      Forum) was grandly held in Shanghai Automobile Exhibition Center. Relying on the innovation and breakthrough of aggrega-

                                                                                                                                      tion charging  ervice,  indiantu system won the highly valued award Unicorn of China's Charging and Replacement Industry

                                                                                                                                      in 2021.




                                             Charging portal of  indiantu
LongShine Technology Co., Ltd.                Environment, Social and Governance (ESG) Report 2021                                                                                                                                                                                                                                  29




   Lead a Convenient Low-Carbon Life


Distributed Photo-Voltaic Cloud Platform                                                                                                                        Smart Energy Saving
                                                                                                                                                                LongShine Technology is committed to enabling enterprises with digital technology to assist enterprises in managing daily

    Case                                                                                                                                                        energy consumption. The company creates an integrated energy big data platform for energy enterprises, gathering internal

                                                                                                                                                                business data, customer IoT data, products, and other data so that enterprises can better understand its energy use during

                                                                                                                                                                daily operation, improve energy use eciency, and achieve sustainable development. At the same time, LongShine technology
    Distributed photovoltaic cloud platform
                                                                                                                                                                builds a smart green energy platform, integrates various energy data service ecological units, provides enterprises with
    The company's  inyao PV Cloud Platform is supported by Energy Internet of Things technologies to escort more ecient power generation of many distributed    comprehensive energy management and operation services, ranging from energy eciency management, market-oriented
    photovoltaic power stations. Through comprehensive monitoring, intelligent alarm, AI decit diagnosis, big data analysis, rened operation and
                                                                                                                                                                power sales, to smart electricity and charging operation. It aims to eventually help enterprises use energy scientically, improve
    maintenance, and other core capabilities, the platform improves the power generation eciency of the power station by digital and intelligent means. It
                                                                                                                                                                energy eciency and achieve low-carbon operations.
    further reaches the low-cost operation and management goal of 'unattended and few people on duty, and eventually maximizes the outcome of the

    photovoltaic power station. This platform has eectively contributed to the low-carbon and green development of society. More than 15,000 photovoltaic

    power stations have been connected, with an installed capacity of nearly 10GW, which adds up to 16.406 billion kWh of green power generation, and a total

    reduction of 17.817 million tons of carbon dioxide emissions.                                                                                                   Case



                                                                                                                                                                     ongshine helps Suzhou Shishan Plaza to launch  uilding smart energy (BSE) system

                                                                                                                                                                     ongshine deploys BSE system for Shishan Plaza in Suzhou city. It successfully achieves real-time monitoring of terminal fan coil unit, fresh air system, air

                                                                                                                                                                    treatment system, and other equipment and facilities by installing sensors, articial intelligence algorithms, and a digital platform. By calculating the

                                                                                                                                                                    operation data, the digital  latform can accurately analyze the actual energy demand and automatically send instructions to the host, energy consumption

                                                                                                                                                                    terminal, and cold storage system to adjust the temperature, ow, air volume, etc. While ensuring the safety of energy use in venues, it puts an end to the

                                                                                                                                                                    waste of energy consumption such as 'super-cooling' and 'over-heating.' Through this system, the annual carbon emission of Shishan square in Suzhou city

                                                                                                                                                                    is reduced by 5,000 tons.
      03
            Pursue Excellent
            Management and
            Promote Sustainable
            Development

LongShine Technology strictly abides by laws and regulations, improves its established man-

agement system, standardizes its internal governance structure, optimizes the risk control

mechanism, ensures the company's compliance, safe and ecient operation from the aspects

of company structure, information security, product quality, and supplier management to lay a

solid foundation for the company's sustainable development with excellent management

capacity.
LongShine Technology Co., Ltd.        Environment, Social and Governance (ESG) Report 2021                                                                                                                                                                                                                       33




   Adhere to Compliance and Ecient Management

LongShine Technology is committed to building an ecient and suitable corporate governance structure, in strict accordance                                                             The company's Board of Directors consists of eight directors (including one female director), within which three are independent

                                                                                                                                                                                      directors. The members of the Board of Directors have in-depth industrial background, professional nancial audit experience or
with the requirements of relevant laws, regulations and normative decisions such as the Company Law of The People's Republic
                                                                                                                                                                                      rich corporate management experience. The Board of Directors earnestly performs various duties entrusted to the Board of
of China, the Securities Law of The People's Republic of China, the Listing Rules of Shenzhen Stock Exchange, the Guidelines for
                                                                                                                                                               Board of               Directors by the company and shareholders in strict accordance with the provisions of the Company Law, the Securities Law, the
 he Shenzhen Stock Exchange Regulatory Guidelines for Listed Companies No. 2 - Standardized Operation of GEM Listed                                            Directors
                                                                                                                                                                                      Shenzhen Stock Exchange Regulatory Guidelines for Listed Companies No. 2 - Standardized Operation of GEM Listed Companies
Companies, etc. The company continuously improves its corporate governance mechanism and optimize its internal manage-
                                                                                                                                                                                      and other laws and regulations, as well as the Articles of Association, Rules of Procedure of The Board of Directors and other
ment system to safeguard its standardized operation.
                                                                                                                                                                                      rules and regulations. It implements the resolutions adopted by the general meeting of shareholders and carry out various work

                                                                                                                                                                                      diligently to ensure the rapid, healthy and sustainable development of the company. The Board of Directors has a Strategy

                                                                                                                                                                                      Committee, a Remuneration and Appraisal Committee, a Nomination Committee and an Audit Committee. Each committee


Corporate Governance                                                                                                                                                                  carries out its work on the development of the company according to their respective responsibilities, and provides opinions and

                                                                                                                                                                                      suggestions for the decision-making of the board. During the reporting period, the company has hold 17 general meetings of the

In accordance with the requirements of laws, regulations, and normative guidelines issued by China Securities Regulatory                                                              Board of Directors.

Commission and Shenzhen Stock Exchange, LongShine Technology has established the legal operational structure of share-

holder meetings, the Board of Directors and the Board of Supervisors and senior management and handled the relationship
                                                                                                                                                               The Strategy Committee consists of three directors, including one independent director.
with the controlling shareholders, standardized and improved the level of corporate governance.
                                                                                                                                                               This committee is responsible for conducting researches and making suggestions on the company's long-term

                                                                                                                                                               development strategies and major investment decisions.
                              Board of                                           Strategy Committee
                             Supervisors                                                                                                                       The Nomination Committee consists of three directors, including two independent directors.

                                                                                                                                                               This committee nominates senior managers according to the company's strategic planning, and puts forward
                                                                               Nomination Committee
                                                                                                                                        peration and
  Shareholder                 Board of                                                                                                                         suitable suggestions on the structural system and process for appointing and removal of directors and senior
                                                                                                                                       Management
    Meeting                   Directors
                                                                                                                                           Team
                                                                    Remuneration and Appraisal Committee                                                       managers.

                                                                                                                                                               The Remuneration and Appraisal Committee consists of three directors, including two independent directors.
                                                                                    Audit Committee
                                                                                                                                                               This committee reviews the annual performance and salary payment of directors and senior managers, participates

                                                                                                                                                               in the formulation of annual salary evaluation and performance standards, and formulates equity incentive plans.

                                                                                                                                                               The Audit Committee consists of three directors, including two independent directors.
                               Shareholder meeting represents the highest decision-making authority of the company. In accordance with the requirements of
                                                                                                                                                               This committee is mainly responsible for guiding and supervising the company's internal audit system as well as the
                               the Company Law, the Securities Law and other legal regulations, as well as the Articles of Association and the Rules of
                                                                                                                                                               implementation, supervising and evaluating work carried out by external audit team.
                               Procedure of Shareholders Meeting, the company standardized the convening procedures for shareholder meetings, recruited

    Shareholder                lawyers to provide legal advice on the legitimacy of shareholder meetings. All shareholders are treated equally, ensuring all
      Meeting
                               shareholders, especially small and medium-sized shareholders, have equal status and hold legitimate rights and interests.

                               During the reporting period, the company had 3 shareholder meetings.




                                he company's Board of Supervisors consists of three supervisors, including one employee representative supervisor (female).

                               In strict accordance with the provisions and requirements of laws, regulations and normative documents such as the company

                               law, the securities law, as well as the Articles of Association, the Rules of Procedure of the Board of Supervisors and other

      Board of                 relevant laws and regulations, perform their duties diligently and independently, and monitor the company's legal operation,
     Supervisors
                               production and management to ensure the company's standardized operation. During the reporting period, the company has

                               hold 9 Board of Supervisors' meetings.
LongShine Technology Co., Ltd.       Environment, Social and Governance (ESG) Report 2021                                                                                                                                                                                               35




   Adhere to Compliance and Ecient Management


Investors' Rights and Interests                                                                                                                             Internal Controls
LongShine Technology is focusing on protecting investors’ rights and interests and sharing its value with investors through fair,                          In accordance with the Company Law of the People's Republic of China, the Securities Law of the people's Republic of China,

timely, and complete company information disclosure, continuous and stable cash dividend policy, active and equal investor                                  the Basic Regulations of Enterprise's Internal Control, and other relevant rules, laws, and regulations, and in combination with

relationship management, and other methods.                                                                                                                 the actual circumstances and management needs of the company, LongShine Technology has developed a suitable internal

                                                                                                                                                            control system to standardize operation, management, and control risks and ensure the daily operation of the company's

                                                                                                                                                            business activities.
                                    Enhance investors' understanding of the company’s status, actively listen to market suggestions and opinions, and

                                    respond to investors' suggestions, the company actively builds communication channels with investors, maintains
         Investor
                                    interaction and communication with investors and potential investors in various ways, including regular updates on      To optimize internal risk control, accelerate the digitization of the enterprise’s internal operation, the company continued to
    Communication
                                    its status through regular performance summits and road-shows and attending analyst meetings. The company               deepen and improve internal information system in 2021 to control online risk on the business, legal and nancial levels. The

                                    guarantees that all investors are treated fairly, particularly in maintaining smooth communication and protecting the   company's internal control system facilitates information exchange across all departments, strengthens internal coordination
                                    rights and interests of small and medium-sized shareholders, setting up communication channels such as investor
                                                                                                                                                            and collaboration, and streamlines the company's management process. In addition, the company regularly monitors the
                                    email, telephone hotline, and ocial website column, hosting timely Q&A and online annual performance brieng.
                                                                                                                                                            implementation of relevant systems and publishes its annual Internal Control Evaluation Report to ensure that the company has
                                    In 2021, the company received 10 investigations and held 1 performance presentation meeting, communicated with
                                                                                                                                                            no major decits.
                                    the market right after the performance announcement, published the record of investor activities, to ensure that all

                                    investors can fairly and timely understand the business development of the company.




                                    The opinions of shareholders (especially small and medium-sized shareholders), independent directors, and               Anti-corruption
                                    supervisors must be considered while drafting the company's shareholder return plan. The company's prot
     Shareholders'                                                                                                                                          LongShine Technology strictly abides by relevant laws and regulations such as the Supervision Law of The People's Republic of
                                    distribution policy should maintain its continuity and stability, considering the long-term interests of the company,
         Return                                                                                                                                             China, the Provisions of the National Audit Oce on Internal Audit, the Governance Standards of Listed Companies, the Listing
                                    the overall interests of all shareholders, and the sustainable development of the company, and prioritize cash
                                                                                                                                                            Rules of Shenzhen Stock Exchange, the Guidelines for The Standardized Operation of Listed Companies of Shenzhen Stock
                                    dividend prot distribution. Since its IPO in 2017, the company has paid out four consecutive cash dividends, totaling

                                    RMB 246 million.                                                                                                        Exchange, and strengthens the all-round supervision system to ensure the integrity and eciency of the company's operation.

                                                                                                                                                            The company has also established rules and regulations such as the Anti-Commercial Bribery Regulation in 2016, and imple-

                                                                                                                                                            ment a series of specic measures to ensure the honest operation of enterprises.
LongShine Technology Co., Ltd.        Environment, Social and Governance (ESG) Report 2021                                                                                                                                                                    37




   Innovative Product Quality Management

LongShine Technology pursues excellent product quality, improves the quality management system, establishes product life                                      7   Unit:RMB 100 million                                                                 15.00%
cycle management process, encourages technological innovation and intellectual property management, and provides users

with ecient, safe, and stable products and services based on the outstanding technical advantages of the company.                                             6
                                                                                                                                                                                                                                    5.85                14.00%


As of December 31, 2021, LongShine Technology has acquired CMMIL5, CS4, ITSS2 certication and ISO9001 quality manage-                                         5                                                                                         13.00%
ment system certication, and many of its subsidiaries have also acquired CMMIL, CS, ITSS certication and ISO9001 certication
                                                                                                                                                                                                                                  12.60%
respectively.                                                                                                                                                 4                                             3.75                                        12.00%
                                                                                                                                                                               3.26

                                                                                                                                                              3                                                                                         11.00%
                                                                                                                                                                                                           11.08%
                                                                                                                                                                             10.97%
Research, Development and Innovation                                                                                                                          2                                                                                         10.00%
One of LongShine Technology’s core competitive advantages has always been its superior technology application capacity.

Therefore, the company continues to invest heavily in R&D. This year, LongShine Group continues to invest in the R&S of new                                   1                                                                                         9.00%
technology applications, upgrading of technology platforms, development platforms upgrades, and the R&D of utility software

products, modules, and components. At the same time, the group increased its R&D investment in cloud computing, big data,                                     0                                                                                         8.00%
Internet of Things, articial intelligence, and various other new technology applications, platforms, and tools to support the                                                  2019                         2020                    2021

development of innovative business. It has conducted research and development on multiple industry application platforms                                                    Total investment in research            Proportion of R&D (research and development)
and products for the innovative business. The overall R&D progress is on track, ensuring that the group maintains a leadership                                              and development                         expenses within operating revenue

position in industry technology, and greatly contributes to the rapid expansion of its innovative business.




                            In 2011, the company introduced the industry's advanced product development concept and management IPD system (Integrat-

                            ed Product Development). It successfully acquired the information security service certication based on SDL (Security Develop-
   Research and
   Development              ment Life-Cycle) in 2014 and the CMMI L5 certication (Software Capability Maturity Model Integration) in 2017. After years of

       System               practices, the company has established a mature integrated product R&D management system integrating IPD+CMMI+SDL and

                            the corresponding project management process.




                            Talents are the essential driving force for corporate development. We have put together a high-quality research team. The

                            company has 3,465 R&D personnel, counts for 57.56% of the total number of the company. The company has set up research

                            institutes and technology R&D centers to conduct forward-looking and basic research. It has established a number of business
   Research and
                            development departments to conduct product research and development in various application sectors and has established an
   Development
                            excellent quality supervision system that includes safety and quality management systems. In the eld of energy digitization,
        Team
                            there are more than 100 industry leaders with over 20 years of industry experience and more than 600 senior experts with over

                            10 years of industry experience. The research covers various high-tech sectors such as Internet of Things, cloud computing, big

                            data, and block-chain.
LongShine Technology Co., Ltd.       Environment, Social and Governance (ESG) Report 2021                                                                                                                                                                 39




   Innovative Product Quality Management


Intellectual Property Right                                                                                                     Quality Management
Adhering to the management policy of "technological innovation drives development and intellectual property protection",        To enforce the company's quality management measures, standardize quality management processes, clarify the functional

LongShine Technology develops the "taking defense as the attack" intellectual property management strategy in combination       responsibilities of all parties and improve product quality control capacity, LongShine Technology developed a series of

with its own development, aiming to strengthen the transition of the company's innovation capacity and improving the compa-     management systems, such as the Full Process Management Measures of Construction Projects, the Management Measures of

ny's core competitiveness. To standardize the intellectual property management of LongShine Technology, the company has         Key Construction Projects, the Management Measures of Operational Project Delivery and Maintenance, and the Management

issued the Intellectual Property Management System and Intellectual Property Reward System, developed an intellectual           Measures of Consulting Projects. The company has established an advanced quality management team with exquisite technol-

property management system covering legal aairs, nance, manpower, sales, R&D, IT, procurement, quality, and various other       ogy, rich experience, unity, and cooperation, and set up a quality management department to coordinate and organize relevant

departments, and received the Intellectual Property Management System Certication in 2021.                                      work. The business management unit is responsible for drafting specic work planning and is consisted of a quality improve-

                                                                                                                                ment department, a qualication management department, and a baseline management department to eectively support

The company values its core technology highly. It places a strong emphasis on patent applications, formulates patent applica-   the sustainable, ecient and rapid development of the company's basic and innovative businesses, and thus enhance the level

tion objectives, sets up annual intellectual property planning, regularly tracks and reviews, and manages its intellectual      of organizational quality management capacity.

property. At the same time, to improve its intellectual property management capacity, LongShine Technology provides regular

intellectual property training to drive innovation and development.
                                                                                                                                                                             Quality management department


The company actively encourages its employees to invent and innovate. Based on the various type of patent applications, the
                                                                                                                                                          Business management unit
company establishes an inventor reward structure to promote the output of intellectual property.




                                                   Quantitative data                                                                     Qualication management                    Baseline management                      Quality improvement
                                                                                                                                                   ce                                       ce                                       ce


           Quantitative index                                Unit                                  Data in 2021                                                    Quality and Safety Team Structure Diagram



       Number of patents applied                             set                                       313
                                                                                                                                The company improves the project management specications, implements the quality monitoring of the entire life cycle for the

                                                                                                                                project, which include processes such as construction, delivery, operation and maintenance, consultation and operation cash

                                                                                                                                management, and takes management measures over risk control, progress monitoring and process optimization around the
        Number of major patents                              set                                       196
                                                                                                                                stages of project delivery and implementation. In 2021, the quality control pilot program included a total of 221 construction

                                                                                                                                projects, 26 operation and maintenance projects, and 10 consultancy projects. The leakage rate of product development
     Number of authorized patents                            set                                       122                      defects was reduced by  .8% and the discovery rate of internal test defects was increased by  .2%.



                                                                                                                                To further deepen the quality assurance and improvement work, the company has arranged multiple product quality training
     Number of licensed copyrights                           set                                       880
                                                                                                                                and project review activities, strengthened employee quality and safety awareness, and summarized and shared its experience

                                                                                                                                of key projects. In 2021, LongShine Technology arranged two quality improvement exchange training activities with its subsid-

         Number of trademarks                                set                                       348                      iaries, eight training on improvement methods and specications with the network provincial center and business depart-

                                                                                                                                ments, and organized the business and technology departments to carry out 34 resumption work.
LongShine Technology Co., Ltd.                 Environment, Social and Governance (ESG) Report 2021                                                                                                                                                                                           41




   Innovative Product Quality Management


    Case Study                                                                                                                                                                      Product Life Cycle Safety Management

                                                                                                                                            Overview of
                                                                                                                                                               Safety                       Construction                                           Baseline                        Operation and
                                                                                                                                            Product Life                       Demand                       Development                                          Implementation
     Create high-quality products, innovative units and carry out quality system training                                                   Cycle Safety
                                                                                                                                                           management
                                                                                                                                                                             department
                                                                                                                                                                                              design
                                                                                                                                                                                                            department
                                                                                                                                                                                                                               Testing team      management
                                                                                                                                                                                                                                                                    department
                                                                                                                                                                                                                                                                                   management
                                                                                                                                                            department                      department                                               eam                            department
                                                                                                                                            Management

    On May 29, 2021, the innovation business unit of the company invited the quality

    management department to hold a knowledge sharing event of LongShine

    quality system, which was attended by the principals and business backbones of                                                                            Start of
                                                                                                                                                              project
    six subsidiaries, including Bangdao Technology, ChangLife, HanClouds and                                                                                construction


    Hango Technology. The training is carried out in the form of 'classroom teaching +

    case analysis', involving quality management norms, quality improvement

    methods, measurement and tool kits utility, rapid functional point estimation,                                                                                                                                                                                                     Oine
                                                                                                                                                           Safety demand      Complete                        Safety           Version check       Overall
                                                                                                                                                                                              Develop                                                                                 planning
                                                                                                                                               Hand         investigation,    structural                   measurements         code safety       planning            Safety
    version management, DevOps and Archimedes platform. Through comprehen-                                                                                                                   codes and                                                                              formulation
                                                                                                                                             inltration      planning and     design of                     and sensor         ssuance and     formulation and       operation




                                                                                                                                    Phase
                                                                                                                                                                                              checking                                                                                  and
                                                                                                                                                                editing      safety plan                     scanning           acceptance     implementation
    sive discussion, each innovation unit has an in-depth understanding of the                                                                                                                                                                                                    implementation

    company's quality system, with the aim to further improve the product capability

    as well as to enhance the market competitiveness of the company.
                                                                                           LongShine Technology                                               Demand
                                                                                                                                                              planning
                                                                                                                                                                             Architecture
                                                                                                                                                                               planning
                                                                                                                                                                                                               Project
                                                                                                                                                                                                            safety report
                                                                                                                                                                                                                               Inter-media
                                                                                                                                                                                                                                                    System
                                                                                                                                                                                                                                                   allocation
                                                                                                                                                                                                                                                                      Operation
                                                                                                                                                                                                                                                                       report
                                                                                                                                                                                                                                                                                       Oine
                                                                                                                                                                                                                                                                                       report
                                                                                                                                                                                                                               conrmation
                                                                                           quality system training                                          conrmation
                                                                                                                                                                and
                                                                                                                                                                             conrmation
                                                                                                                                                                                 and
                                                                                                                                                                                                            conrmation
                                                                                                                                                                                                                and
                                                                                                                                                                                                                                   and
                                                                                                                                                                                                                                                 conrmation
                                                                                                                                                                                                                                                      and
                                                                                                                                                                                                                                                                    conrmation
                                                                                                                                                                                                                                                                        and
                                                                                                                                                                                                                                                                                    conrmation
                                                                                                                                                                                                                                                                                        and
                                                                                                                                                                                                                                submission
                                                                                                                                                             submission       submission                     submission                           submission         submission      submission

                                                                                                                                                                                                                         KCP                                  KCP


LongShine Technology attaches importance to the development of a product safety system. It has issued relevant product
                                                                                                                                              Keep in
                                                                                                                                            the archives
safety systems such as Product Life Cycle Safety Management, Third-Party Product Safety Management System, and Third-Party                                                                        Product safety factory verication    Product safety factory verication
                                                                                                                                                                                                             (rst stage)                        (second stage)
Product Safety Management Detailed Regulations, to illustrate the safety technology structure in the company's product life

cycle and standardize the safety requirements across the entire implementation process of products, including design, devel-                                                                                                                                         KCP:Key Control Parameter

opment, testing, release, certication, implementation, maintenance, oine and emergency processes. The company has

been working to improve its product safety development capacity and ensure that its product fullls the safety requirements of
                                                                                                                                   The company regularly conduct full-scale special product safety management training, including publicity, implement and
customers. It continues to improve the safety management mechanism at each stage, requiring each responsible department
                                                                                                                                   conduct the examination of DingDing (mobile application) classroom safety training, the establishment of internal safety
to establish and implement corresponding safety specication les, checking the safety work at each stage based on the
                                                                                                                                   knowledge database, sharing of classic cases, etc., to distribute safety information and technology better and to build a good
circumstances, and continuously improving and optimizing the safety specications and systems according to the problems
                                                                                                                                   safety culture. In 2021, the company held special training on the third-party product compliance and safety management
that have been identied.
                                                                                                                                   system. A total of 204 safety ocers and representatives attended the training.


The company tests the security function of dierent projects in areas such as application vulnerability scanning and product

security. Test reports will be issued based on the results, and rectication and repair will be performed, reducing losses caused

by security vulnerabilities and improving the company's overall product security control capacity. In 2021, the company's

baseline safety test and internet application security vulnerability bugs were both blocked 221,491 times, with the internal

baseline blocking 202,294 security vulnerability bugs. Its Beijing Winter Olympic Games project blocked more than 890 security

vulnerability bugs, and the Bangdao Ali-pay mobile application program blocked 78 security vulnerability bugs.
LongShine Technology Co., Ltd.       Environment, Social and Governance (ESG) Report 2021                                                                                                                                                                     43




   Innovative Product Quality Management                                                                                              Strengthen Information Security Management


Customer Service                                                                                                                   LongShine Technology attaches great importance to information security management and is continually improving its capaci-

                                                                                                                                   ty to provide information security and customer privacy protection services. The company is fully committed to providing safe
LongShine Technology is completely devoted to a service-oriented principle and is fully committed to providing customers with
                                                                                                                                   and reliable technical services to its customer and is constantly establishing and improving the company's network and
ecient and comprehensive quality services to grow with customers. The company abides by the Law on the Protection of
                                                                                                                                   information security management system.
Consumers' Rights of the People's Republic of China and other laws and regulations, establishes internal systems such as

Customer Complaint Handling Management System and Operation and Maintenance Service Handling Process, sends profes-
                                                                                                                                   In accordance with the Network Security Law of China, the Law on Protection of Personal Information of China , the Data Securi-
sional service teams to assist with consultation, planning, implementation, operation and maintenance, and other aspects, and
                                                                                                                                   ty Law of China and other laws and regulations, the company has established Internet System Security Work Specication
improves its information technology service system.
                                                                                                                                   Requirements, and regulations such as Customer Sensitive Information Desensitization Specication, On-Site service Security

                                                                                                                                   Management Specication, Document Transparency Encryption Management Measures, etc. As of December 31, 2021,
LongShine Technology attaches great importance to the company's operation and maintenance service quality, employing
                                                                                                                                   LongShine Technology and its several subsidiaries have received a range of relevant certications on information security
hierarchical management for service requests such as consulting, operation, data, and conguration, appropriately allocating
                                                                                                                                   management system, information security service qualication, information system construction and service capacity, so as to
resources, and timely repairing equipment faults, to minimize the impact on customers. The company actively communicates
                                                                                                                                   further strengthen the development of information security system.
with users, coordinates and resolves disputes, monitors event completion, and returns visit to collect customers' satisfaction

feedback.
                                                                                                                                   The company strictly implements the responsibility principles concerning network and information security, implements unied

                                                                                                                                   leadership and hierarchical management, and follows the "who is in charge is responsible, who operates the department who
Moreover, to increase the service quality even further, the company provides customers channels to complain and standardizes
                                                                                                                                   is responsible, who uses  nd who is responsible, and who manages business must manage security" principle. The company
the customer complaint handling process to ensure that all kinds of customer feedback and complaints are addressed promptly
                                                                                                                                   has established a security management department that is responsible for the overall management of the company's security
and properly. At the same time, the company pays a follow-up visit to customers based on complaint handling circumstances,
                                                                                                                                   work to fully promote the overall security work implementation. Every business management department has set up security
makes reasonable suggestions to relevant departments and requests for improvement, to prevent complaints from recurring.
                                                                                                                                   posts to rene and dene the responsibilities of network and information security systems.


The company continues to conduct customer satisfaction surveys, to better understand customers' multi-dimensional evalua-
                                                                                                                                   The company eectively identies and manages network and information security risks, avoids security incidents, integrates
tions of the rationality, safety, and stability of the company's product design. A satisfaction survey report will be published,
                                                                                                                                   network and information security work in all aspects of production and operation. It has standardized the company's security
aiming to steadily improve the company's service quality and create value for customers. In 2021, the comprehensive compa-
                                                                                                                                   management system into all aspects including physical security, safe operation, safe production, on-site service, and conden-
ny's customer satisfaction score was 85.99, which was signicantly higher than in 2020.
                                                                                                                                   tiality management, and establishes emergency response, security monitoring, secure communication, and other mechanisms

                                                                                                                                   to further enhance the network and information security management system.


                                                                                                                                      Physical
                                                                                                                                                       Comply with the company's and site's physical safety-related regulations.
                                                                                                                                      security
                                                                                                                                                       Properly handle sensitive information les and mobile media.
                                                                                                                                   management



                                                                                                                                        Safe           ollow the password security policy and standardize the application and approval procedure of account
                                                                                                                                     operation         and authorization.
                                                                                                                                   management
                                                                                                                                                       Strengthen business computer security management and conduct regular vulnerability inspections.

                                                                                                                                                       Strengthen personnel safety management, review and oversee cooperative partners' operation quali-
                                                                                                                                                       cation, and sign security condentiality agreements.
LongShine Technology Co., Ltd.         Environment, Social and Governance (ESG) Report 2021                                                                                                                                                                                                    45




   Strengthen Information Security Management

                                                                                                                               The company continues to strengthen its information security capability and carry
    Safety           Ensuring safety production and construction relies on the principle of 'three synchronization', and it
                                                                                                                               out comprehensive information security management for employees, including
 production          needs to ensure that the network security technical measures are 'planned, constructed and operated
management           synchronously'.                                                                                           signing security related Condentiality Agreement and Security Commitment,

                                                                                                                               issuing induction manual LongShine Security Red Line 15 Prohibitions, regularly
                     Follow the multi-level protection system of the national network security and implement the company's
                     product life cycle security technical specications.                                                       carrying out employee security training and examination, preparing and publishing

                     According to the safety production standards required by the state, industry and customers, it includes   security briengs and require resigned personnel to sign the Resignation Statement

                     but not limited to: physical network security, environment security of host machinery, application and    and promise to continue to keep the company's information condential. In 2021,
                     data security, information content security, business security, etc.
                                                                                                                               the company carried out special training on the Data Security Law and Personal                                     Sta Training on Network
                                                                                                                               Information Protection Law, special training on the safety of fresh graduates,                                      and Information Security
   On-site           Follow the instructions of the buyer or customer for personal data processing, transferring, and other    special training on the safety management of third-party products, etc.
service safety       related businesses.
management
                     Prohibited to attack or harm customer's network, obtain any data or information from customer’s
                                                                                                                               The company conducts regular safety inspections and audits on safety management systems, personnel management, termi-
                     network without permission, nor log in to the equipment with an unauthorized account or other
                     accounts.                                                                                                 nal security, data security, document asset management, oce environment security, and other aspects. The goal is to conduct

                     The on-site service project team must formulate and strictly implement local management specica-          a more thorough assessment of the company's safety management capacity, formulate and follow up the implementation plan

                     tions and apply Implementation Guidelines of On-site Service Safety Management specications in            and rectication measures for safety risks.
                     accordance with the customer's safety management requirements.



                      he company complies with national laws and regulations on data security, personal data and privacy
 ata security
                     protection, network security operations safeguarding and so on, and manages condential data in
                                                                                                                                   Entrapment exercises
management
                     accordance with relevant national regulations and requirements on company security and customer
                     condentiality.
                                                                                                                                   Enhance the company's safety awareness culture and carry out e-mail entrapment practice
                     Data storage and document transmission must comply with the measures according to the Document
                                                                                                                                   In order to strengthen personal security awareness and prevention skills, the security management department organized and carried out specic e-mail
                     Condentiality Management Guidelines. Employees are prohibited from copying and transferring
                                                                                                                                   entrapment exercises, imitation attack drills, and conduct network information security awareness publicity and education. These exercises monitor the
                     condential documents and internal documents without prior authorization.
                                                                                                                                   entrapment success rate of employees in each department in various stages, understands the safety awareness level and risk positioning of each
                     Employees must follow the company's condentiality regulations, handle condential documents and
                                                                                                                                   department, improves the sensitivity of employees to entrapment emails, and carries out targeted safety awareness training to further improve the overall
                     contents with care, and not transfer, forward or copy the company's condential information via email
                                                                                                                                   safety awareness level of the company.
                     in violation of company’s rules and regulations.



  mergency           Manage network and information security incidents by various levels based on their severity, and
response and         implement the working mechanism of early warning, analysis, disposal, and notication.
  safeguard
                     Comprehensively manage network information security through the security system, security depart-
 mechanism
                     ments and personnel, daily security monitoring, emergency response mechanism, personnel security
                     training, security mechanism supervision, inspection, and other relevant mechanisms.



                 Network and Information Security Management Regulations and Guidelines
LongShine Technology Co., Ltd.         Environment, Social and Governance (ESG) Report 2021




   Standardize Supplier Management

LongShine Technology highly values supplier management, establishes rules and regulations such as Supplier Management

Procedures, formulates standard processes, agreements, or contracts, conducts eective cost management, and constructs a

fair, transparent, and sustainable supply chain for suppliers. The company sets up a procurement business department to

manage the third-party and internal procurement to ensure the procurement process compliance. In addition, the company’s

operation management platform further standardizes the electronic management of the entire procurement process, including

procurement application management, payment application management, and supplier information management, to make

the procurement process simpler and more ecient and thus improve customers satisfaction on the products and services.



The company standardizes the supplier access system and examinants qualication, access, audit, evaluation, and other

management mechanisms to develop reliable supplier networks. The company sets up access conditions based on supplier’s

types and requires suppliers to provide corresponding audit materials to establish a Directory of Qualied Suppliers, including

Supplier Audit Form, business operation license, account opening permit, product certicate, safety evaluation report, illegal

and criminal records, etc. In 2021, LongShine Technology has 396 cooperative suppliers registered in mainland China.



The company regularly reviews its suppliers, evaluating their product quality, price, personnel qualication, nancial status,

technical capability, after-sales, customer satisfaction, etc., and puts forward rectication requirements or disqualication of

unqualied products, to improve the company's supplier management capacity. In 2021, the company integrated supplier

resources to further screen high-quality suppliers which provide high-quality products and services.




                                                                  after-sales

                                                                                                technical capability


                     product quality

                                                         396
                                                      cooperative
                                                                                        nancial status
                                                       suppliers
             price


                                                                                            customer satisfaction
                          personnel qualication




                                           provide high-quality products and services
                                                                                                    17




      04
            Adhere to People-
            Oriented Principle and
            Help Employees Grow

 mployees are the foundation for the company to survive and develop. Adhering to people-ori-

ented principles and paying attention to humanistic care is essential for the company to achieve

sustainable development. Longshine Technology thoroughly adheres to the career and talent

development concept of 'rely on people for the success of work, rely on work for the success of

people'. It pays close attention to employee rights, employee development and employee

welfare, and has been continuously creating a straightforward, friendly, just and inclusive work-

ing environment. The company persists in setting up a stage for talent growth, paving ways for

employee's career development, as well as creating a cohesive spiritual home for all.
LongShine Technology Co., Ltd.             Environment, Social and Governance (ESG) Report 2021                                                                                                                                                                                             51




   Protect the Rights and Interests of Employees

Employees promote the development and growth of the company, while the company also endorses the development of                                                                                                 Employee Status
employees. Based on mutual respect and equality, the company is obligated to safeguard and protect its employees' legitimate                                                           As of December 31, 2021, the company has 6020 employees.
rights and interests. On the path of co-development with its employees, based on the principle of protecting employees'
                                                                                                                                                                                                                                                         Senior management
reasonable rights and interests, the company is committed to creating an equal and transparent employment mechanism for                                                                                                                                             37         Middle management
                                                                                                                                                                                            Older than 50
                                                                                                                                                                                                                                                                                      516
each employee and resolving their most concerning and realistic problems.                                                                                                                        47

                                                                                                                                                                        Female
                                                                                                                                                                        1,645    27%                                                 51%                                         9%

Rights and Interests of Employees                                                                                                                                                                     Between 30
                                                                                                                                                                                                                     Less than 30
                                                                                                                                                                                                   to 50 years old
                                                                                                                                                                                                                         years old
                                                                                                                                                                                                                                                         General sta
LongShine Technology strictly abides by the Labor Law of The People's Republic of China and signs legal labor contracts with                                     Male
                                                                                                                                                                                                        2,913
                                                                                                                                                                                                                          3,060
                                                                                                                                                                                                                                                            5,467
                                                                                                                                                                4,375
employees from the date of employment. The company adheres to the principle of fair employment and will never discriminate

based on gender, age, race, religious belief, and physical condition. Forced labor and child labor are strictly prohibited as well.
                                                                                                                                                             By gender                                          By age                                    By rank


According to national laws and regulations, the company provides the 've insurances and one fund' for all employees and

provides employees with an annual physical examination. At the same time, it purchases supplementary medical insurance, full

scheme accident insurance, major disease insurance, and other commercial insurance for its employees. It assists employees in

handling supplemental medical joint insurance for their families, generally providing full coverage of supplementary commer-
                                                                                                                                                     Suitable Payment
cial insurance.                                                                                                                                      LongShine Technology believes in “adapting to the market environment, reecting the value of talents and maximizing the

                                                                                                                                                     potential of the incentive role,” principle and following the concept of “paying mainly for the value of the position and

The company has established the Vacation Management System. Based on ensuring that employees enjoy legal holidays and                                personal ability, supplemented by paying for personal performance contribution.” It has issued the Salary Management

weekends required by the state, each employee can also enjoy legal annual leave, marriage leave, maternity inspection leave,                         System of LongShine Technology and established an incentive mechanism that considers internal fairness and market competi-

maternity leave, paternity leave, parental leave, funeral leave and other specic vacations. Each employee is also provided with                      tion. Placing “consistent responsibility and interests, consistent ability and value, consistent risk and return, consistent perfor-

the welfare of annual paid leave and annual paid sick leave of 12 days.                                                                              mance and income” as the goal of employee salary distribution, the company is committed to empowering employees to

                                                                                                                                                     focus all their eorts on business development and share the company's dividend along with its development.


                       Safeguard measures for employees' rights and interests                                                 Relevant system

                                                                                                                                                                                        Payment and welfare structure of LongShine Technology
                       Employment principle: openness, equality and non-discrimination.

                       Child labour: take the personnel's age above 18 as employment condition, and eliminate the employ-      ecruitment System
   Recruitment
                       ment of child labour.

                       Forced labour: limit overtime working, and the working hours are recorded in the system on time.
                                                                                                                                                                  Monthly salary             Short term incentive                 Long term incentive                Welfare
     Dismissal         Terminate the labour contract after equal consultation with employees.                                   ismissal System


  Working hours        Working hours: standard working hours of 40 hours per week. Employees who requires irregular
                                                                                                                                orking hours and                  Base payment                Sales commission                        Equity incentive      Statutory benets
       and             working hours and comprehensive working hours, the system shall adjust the time according to the
                                                                                                                              holiday leave System
  holiday leave        actual situation.

                                                                                                                                                                  Merit payment                Year-end bonus                                               Corporate welfare
                       Employees' work content, position ranking, work performance, employee potential and labour market
                                                                                                                               Employee Payment
     Payment           status are the main basis for determining employees' salary, and the payment are moderately inclined
                                                                                                                                    System
                       in favour towards freshly graduated students.                                                                                             Other allowances                Other bonus
LongShine Technology Co., Ltd.                   Environment, Social and Governance (ESG) Report 2021                                                                                                                                                                                                          53




   Support Employee Development

LongShine Technology pays great attention to the training of employees and regards the growth of employees as an essential                                                To help new employees successfully adapt to and integrate into the new working environment, the company has established a

factor for enterprise development. LongShine Technology has set up a human resources COE (Center of Expertise) learning and                                               newcomer training channel. It considers the growth stage of new employees, accelerate new employees' in-depth understand-

development team, aiming at intensely carrying out training courses to improve the comprehensive qualication of employees.                                                ing of the company's business team through task allocation, set periodic assessments, and other methods. The company

The company aims to optimize the learning and development system, normalize the precipitation of internal high-quality                                                    assigns a tutor to each fresh graduate and provides guidance and skill training during their employment to regular employ-

resources and experience, and build LongShine knowledge center and training resource database. It has been carrying out                                                   ment. It also set up customized tools such as Fresh Graduates Knowledge and Capability Model, Learning Map, and 1.5-Year

talent training and manager training programs for key posts, build a 'knowledge + learning' management platform, meet the                                                 Training Plan for Fresh Graduates to help them successfully pass all stages of the training path.As of December 31, 2021,

growth needs of all employees, and continuously stimulate the creativity and initiative of the organization.As of December 31,                                            LongShine Technology has provided a total of 14,524 training hours to fresh graduates, with 82 hours per capita.

2021, LongShine Technology has provided a total of 48,321.52 training hours to employees, with 4.43 hours per capita, and the
                                                                                                                                                                                                                                                                                      Promotion stage
proportion of trained employees has reached 100%.
                                                                                                                                                                                                                                                        Positional practice
                                                                                                                                                                                                                                                               stage
                                                                                                                                                                                                                               Positional training                                       improve core
                                                                                                                                                                                                                                      stage                                              capability of
                                                                                                                             Vocational qualication                                                                                                      improve general
              Routine training                                         Key project training                                                                                                            General training
                                                                                                                                  examination                                                                                                                                            the position
                                                                                                                                                                                                           stage                                            positional
                                                                                                                                                                                                                                    technical
                                                                                                                                                                                                                                                            knowledge
                                                                                                                                                                                Intern stage                                    knowledge and
  Training   for   new   employees     of   social            The company designs exclusive training                   The company takes into consideration of all                                    improve personal
                                                                                                                                                                                                                                  skills training
  recruitment: at the rst day, the rst week,                  programs for newly appointed grass-roots                 employees, aims to creates a learning                                             qualication
                                                                                                                                                                               knowledge on
  the rst month, the rst employment time                      managers. It arranges managers from all                  organization,    provide     possibilities   for
                                                                                                                                                                                                          and ability
  and other occasions, through mixed training                 over the country to gather together to turn              employees to attend training and certicate              all information
  methods, such as online teaching, oine                      their roles from experts to managers through             examination,     reimburses     training     and     about the company
  department guidance and national online                     courses and seminars. Under the guidance of              examination expenses, encourages employ-

  communication      meeting,    the   company                the tutor, these managers will be able to                ees to actively improve their vocational skills,

  creates a training camp for new employees to                adjust to the position quickly and be                    and provides certicate renewal services for
                                                                                                                                                                                                             Cultivation growth path for fresh graduates
  quickly integrate and adjust to their posts.                independent.                                             some key certicates.




                                                                                                                                                                                                                                                                           Let the fresh graduates feel and
                                                     In 2021 LongShine Technology and
                                                                                                                                                                                                                                                                           understand LongShine, cultivate
                                                      Oracle held technical exchanges.
                                                                                                                                                                                                                                                                           the   fresh   students'   sense   of

                                                                                                                                                                                                                                                                           belonging and responsibility in

                                                                                                                                                                                                                                                                           order to integrate into LongShine,

                                                                                                                                                                                                                                                                           and help them adjust their roles,

                                                                                                                                                                                                                                                                           improve their skills and grow

                                                                                                                                                                                                                                                                           rapidly. In 2021 fresh graduates will

                                                                                                                                                                                                                                                                           have a nine day long general

                                                                                                                                                                                                                                                                           training and a ve day long

                                                                                                                                                                                                                                                                           technical training.




                                                                                    In order to fully improve the ability of operators from formulating

                                                                                    strategies to implementing strategies, as well as to stimulate each

                                                                                    business unit to make better achievements, Bangdao Technology

                                                                                    launched a three day strategic special training camp in mid

                                                                                    November.
LongShine Technology Co., Ltd.      Environment, Social and Governance (ESG) Report 2021                                                                                                       55




   Care for Employees' Life

Adhering to the “paying equal attention to work and life, and living with happiness concept, LongShine Technology continues

to prioritize taking care of its employees, creating a comfortable working environment and enhancing cohesion and sense of     Sta Steps Walk
belonging through various types of employee activities.                                                                        The company carries out step walking activities for all

                                                                                                                               employees in May and November every year, and awards the

                                                                                                                               winning employees with a bonus of RMB 100,000, in order to

                                                                                                                               promote employees to pay attention to their own health.

Employee Activities
To make employees feel the warmth of home and enrich their daily cultural life, LongShine Technology holds various forms of

employee activities every year.
                                                                                                                               Induction Celebration
                                                                                                                               The company holds an annual induction celebration to send

                                                                                                                               good wishes to students for the special induction anniversa-

                                                                                                                               ry. In 2021, a total of 563 employees participated in the

                                                                                                                               induction ceremony.




                                                                                                                               910 Teachers' Day
       Women's Day Festival
                                                                                                                               On Teachers' Day, the company organizes thanksgiving
       In order to celebrate International Women's day, the company presents special gifts to female employees on March
                                                                                                                               activities on the theme of expressing thanks to tutors, so as
       8 every year.
                                                                                                                               to create an atmosphere of mutual help and learning within

                                                                                                                               the company. In 2021, the company held a Teachers' Day

                                                                                                                               activity with the theme of 'three people walking together,

                                                                                                                               one of them must be my teacher'. Flowers and greeting cards

                                                                                                                               were placed in each oce area to encourage employees to

                                                                                                                               express their gratitude to their tutor.




                                                                                                                               Mid-Autumn Festival Activities
                                                                                                                               The company oers mid-autumn moon cakes to employees

       Annual Outstanding Employee Tour                                                                                        at every Mid-Autumn Festival, and holds mid-autumn

       The company holds annual excellent employee tour activities in May every year, which not only provides employees        reunion activities to create a warm atmosphere for employ-

       with opportunities to travel and relax, but also helps employees to integrates into the construction of the company's   ees. In 2021, the company launched the LongShine Three

       culture. In 2021, the company organized tours in northwest regions and Anji Club vacation tour.                         Line Family Letter Activity.
LongShine Technology Co., Ltd.           Environment, Social and Governance (ESG) Report 2021                                                                                                                                                         57




   Care for Employees' Life


                                                                                                                              Employee Assistance
                                                                                                                              The company established the LongShine Love Special Charity Foundation to establish a long-term mechanism in special charity

                                                                                                                              fund to assist employees with medical-care diculties and living diculties. The company sets October 28 as its annual Charity

                                                                                                                              Day and advocates employees to donate on this day. As of December 31, 2021, the company has assisted four employees with

                                                                                                                              family diculties, 322 employees have made voluntary contributions, and a total of RMB 118,900 has been raised.




       1024 Program Day Festival
       The company holds 1024 Program Day Festival on October 24 every year to celebrate the era of digital technology

       with employees.




                                                                                                                              Employee Communication
    Table tennis club in Hangzhou city                             Roller skating club in Wuxi city
                                                                                                                              The company is organizing a family forum to stimulate communication among employees. It aims to help employees create an

                                                                                                                              open, harmonious, inclusive, and positive working atmosphere through online activities. This community will cover three

                                                                                                                              sections: LongShine family aairs, technical exchange, and colorful life.




    Yoga activities                                                Badminton activities

                                                                                                                                       Family                     LongShine family aairs            Technical exchange                Colorful life

       Sports Club                                                                                                                     Forum
       In 2021, LongShine Technology ocially established its sports club, which aims to enrich employees' spare time life,             Sector                        Corporate business
                                                                                                                                                                                                           Technical
       help employees to develop tness habits, and advocate the concept of happy life and healthy work. As of December                                               and management                                             Daily life exchange area
                                                                                                                                                                                                         exchange zone
       31, 2021, the company has established 90 sports clubs in 20 cities across the country, with a total of 821 employees                                            exchange zone

       participating. In order to encourage employees to continuously participate in sports, the company has created a

       sports talent IP, and more than 900 employees take physical exercise in various forms. Moreover, the company pays

       attention to the health of employees through health-care lectures and public health lecturing mobile application.
     05
             ake Social
            Responsibility and Repay
            the Society wholehearted

LongShine Technology has always viewed green and low-carbon operations and participation

in public welfare as vital parts of the company's long-term sustainable development strategy.

Based on creating value for customers, generating prots for shareholders, building future for

employees, and  epaying for the society, LongShine Technology always considers its mission

and responsibility. It adheres to energy conservation and consumption reduction strategies and

helps the development of public welfare undertakings.
LongShine Technology Co., Ltd.      Environment, Social and Governance (ESG) Report 2021                                                                                                                                                                                                               61




   Adhere to Low-Carbon Operation

LongShine Technology  onsist with the global trend toward green development, pursuing the goal of "carbon peaking and
                                                                                                                               Energy Consumption Management
carbon neutrality" and implementing a low-carbon strategy through its emission and energy consumption management. The
                                                                                                                               The company attaches great importance to energy management, strictly abides by the Energy Conservation Law of The
company seeks to demonstrate its determination to practice low-carbon operations and develop sustainability.
                                                                                                                               People's Republic of China, develops energy consumption management system, standardizes daily behaviors such as air

                                                                                                                               conditioning, electricity and paper in oce areas, denes the responsibilities of administrative departments, constantly

                                                                                                                               improves energy management system, and realizes all-round control of energy use process. As of December 31, 2021,
Emission Management                                                                                                            LongShine Technology and its ve subsidiaries have acquired the ISO14001 Environmental Management System Certication,

The company has carried out relevant training and established a waste classication management system to advocate the           and the company's daily operation and production have not aected the environment and natural resources.

reduction, recycling, and harmlessness of domestic waste. The company places waste bins centrally and requires employees to

classify and dispose of waste. To promote environmental protection and energy conservation, the company endorses the green
                                                                                                                                  Case
oce concept. It reduces the waste discharge in the oce area by the following activities: distributing non-consumable oce

supplies, setting waste battery recycling bins, and using printing paper on both sides; achieving the recycling of oce waste
                                                                                                                                   LongShine technology creates a zero-carbon technology industrial park
by recycling printing paper, cartons, plastic bags, and document baskets; reduce oce energy consumption by posting

energy-saving signs and using energy-saving and environmental protection materials for decoration in the oce. As of Decem-         To actively respond to the national low-carbon policy, LongShine Technology implemented the LongShine Technology Industrial Park project in Wuxi city,

                                                                                                                                   which became the rst batch of science and technology industrial park projects with zero carbon as the theme in Jiangsu Province. LongShine Technology
ber 31, 2021, the company had no environmental accidents, illegal discharges, or other such events.
                                                                                                                                   Industrial Park project is located in the central area of 'Internet of Things' Town at Huihai Bay High Tech Zone, with a total construction area of about 250,000

                                                                                                                                   square meters.During the construction, the relevant requirements of green buildings will be strictly implemented, and the comprehensive energy-saving rate
The data of emissions and energy consumption in 2021 are as follows                                                                of the project building will reach 65%. In terms of energy conservation in the park, rst of all, a 1.2 MW distributed photo-voltaic power station is designed by

                                                                                                                                   using photo-voltaic power generation and roof, which is expected to generate about 1.3 to 1.4 million kilowatts of green power every year. At the same time,

         Types of emissions, energy consumption and utilization                  Unit                 Data in 2021                 a roof garden is built on the roof without solar photo-voltaic panels to reduce the energy exchange between the roof and the outside. Secondly, a 'sponge

                                                                                                                                   city' will be build. The proportion of permeable ground area is more than 40% of hardened ground within the park. A new rainwater collection system is built

                                   Waste batteries                               Ton                    0.009                      and utilized by biological purication technology, and the utilization rate of rainwater resources is more than 5%. Thirdly, there will be full-scale energy

                                                                                                                                   management. The park implies BSE smart energy-saving system independently developed by LongShine Technology to achieve accurate control of tempera-

        Waste and                                                                                                                  ture and humidity within buildings and save energy to the greatest extent. In addition, numerous new energy charging stations are planned to be built within
       contaminants
                                 Waste selenium drum                             Ton                    0.071
                                                                                                                                   the park to encourage employees to actively use new energy vehicles and practice the concept of low-carbon travel together.



                                  Waste ink cartridge                            Ton                    0.023


                             Oce paper consumption                               Ton                     4.42


          esource
         utilization
                             Fresh water consumption                             Ton                    9,458


                              Electricity consumption                           KWh                   1,573,200
LongShine Technology Co., Ltd.       Environment, Social and Governance (ESG) Report 2021                                                                                                                                                                         63




   Intelligent Anti-Pandemic Activities                                                                                                Public  elfare

After an in-depth analysis of the infection screening workow in other regions with pandemic risks in China, combined with the       LongShine Technology consistently adheres to the principals of leading the digital world, helping digitization transition, active-

characteristics of pandemic prevention in Wuxi city, the company quickly developed the 'nucleic-acid test link' product. Wuxi       ly participating in public welfare events and re-pay the society with practical actions.

citizens can book a nucleic-acid test via the 'pandemic prevention and control' directory on the Lingxi mobile app. After quickly

completing the nucleic acid test individual application following the functional index, they can go to an oine nucleic-acid test

center to take the tests. Afterward, applicants can also acquire the nucleic-acid test results online on Lingxi mobile app.
                                                                                                                                    Education assistance
                                                                                                                                    LongShine Technology promotes the development of the company's educational public welfare undertakings through Beijing

                                                                                                                                    Daisy Public Welfare Foundation, CITIC Trust Student Fund,  uch as online free education platform, content, etc.



                                                                                                                                    In 2017, LongShine technology and Yishiteng technology jointly launched the Beijing Daisy Public Welfare Foundation to help

                                                                                                                                    poor communities in remote areas. In 2019, Beijing Daisy Public Welfare Foundation launched the daisy summer public welfare

                                                                                                                                    camp project. They invited 6 teachers and 30 students from Kuoshtag town primary school in Pishan County, Xinjiang, and

                                                                                                                                    Keping Bilingual Huzhou Primary School Xinjiang to come to Beijing for a week-long visit and study tour.




In August 2021, the situation in Lukou at Nanjing reminded Wuxi city to ring the

pandemic prevention alarm again. To assist the government in conducting accurate

and ecient community nucleic-acid tests, nearly 200 LongShine Technology employ-

ees formed a science and technology anti-pandemic team to develop the rst online

nucleic-acid test platform, solidify the digital 'defense line,' and assist the government

in conducting nucleic-acid screening and testing (stress testing) for all employees.
LongShine Technology Co., Ltd.      Environment, Social and Governance (ESG) Report 2021                                                                                                                                                                      65




   Public  elfare


Book donation activities                                                                                                         onation during pandemic
On September 30, 2021, the company carried out book donation activities for Huade county in Inner Mongolia, which is a sister   In early 2020, facing the outbreak of Covid-19 pandemic, all sectors of society joined in the ght against the pandemic.  ta of

city of Beijing, and donated 5,000 books to Huade County Cultural library of  lanqab City in Inner Mongolia Autonomous          LongShine Technology donated a total of RMB10 million worth of medical supplies and funds to ght against the pandemic and

Region.                                                                                                                         protect front-line worker's safety in Hubei province.




Caring co-development activities
In November 2021, the Beijing Daisy Public Welfare Foundation, together with the Wuxi Municipal Committee of the Communist      Rural development
Youth League and the Wuxi Youth Federation, held the "young people's warm childlike innocence - big hands pull small hands"     LongShine Technology has always adhered to the concept of "working seriously, developing enterprises and  ive back to
care activity. Through letter exchange and micro wish help activities, young people paired up with those in Aheqi county and    society", and actively promotes rural development. In October 2021, Beijing Daisy Public Welfare Foundation donated RMB 0.1
provided them with 30 love help packages.                                                                                       million to Shule county in Xinjiang, to help the construction project of human settlements in Tokuzi Otak village No. 6 of Tagarqi

                                                                                                                                Township in Shule county, and promote the consolidation and expansion of poverty alleviation in Shule county.



                                                                                                                                                          LongShine Technology Public Welfare Investment Amount


                                                                                                                                                           Project                                                    Total amount (RMB 10,000)



                                                                                                                                                                                                                                  23
                                                                                                                                             Targeted poverty alleviation in 2021




                                                                                                                                                                                                                                  50
                                                                                                                                               Social welfare activities in 2021
LongShine Technology Co., Ltd.       Environment, Social and Governance (ESG) Report 2021                                                                                                                                                   67




         Future Prospect                                                                                                                  ey Performace Indicator

Digitization is the  ost important technical theme  n dierent industries in the 21st century. Along with it, technology and

productivity in the energy sector have been making continuous progress. The state rmly dedicated to promoting the 'double
                                                                                                                                                                                 Index                         Unit           ata in 2021

carbon' strategy, driving a magnicent energy revolution. The integration of electric energy and digital technology will initiate
                                                                                                                                                                           Operation revenue                   illion yuan        ,639
new forms of electric energy, new market operation mechanisms, multi-level energy network structure, and give birth to a
                                                                                                                                                                  Net income attributed to shareholders        illion yuan         47
                                                                                                                                     Economic
series of new scenarios of electricity load and electric energy consumption. LongShine Technology is at the  ntersection of                                                   Cash dividend                    illion yuan         32
                                                                                                                                   performance
'energy revolution + digital revolution'.  igitization makes the digital world a better place, enables energy consumption to be                                          Total investment in R&D               illion yuan        585

                                                                                                                                                        Proportion of R&D expenses within  peration revenue        %             12.6%
greener, more convenient and more ecient, which is not only an opportunity of the era, but also our indispensable mission.


                                                                                                                                                                             Waste batteries                      Kg               9
In the future, LongShine Technology Group will rmly focus on the energy industry, as well as focus on the dual development                          Waste and
                                                                                                                                                                           aste toner cartridge                   Kg               71
                                                                                                                                                   contaminants
driving strategy of 'energy digitization + energy internet' based on the business model of B2B2C. The company will continue to                                             Waste ink cartridge                    Kg               23
                                                                                                                                   Environmental
make eorts on the two main business lines of digital transition and upgrading of the energy industry as well as the service
                                                                                                                                   performance                          Oce paper consumption                     Ton             4.42
operation of the energy internet platform. On the one hand, we will focus on major customers of electric energy and promote                         Resource
                                                                                                                                                                           Water consumption                      Ton            9,458
                                                                                                                                                    utilization
digital energy services applications. On the other hand, we will focus on customer's needs and expand scenario driven energy                                             Electricity consumption                 KWh            1,573,200

consumption and electric energy operation. In terms of business model, the company will optimize the relationship between

supply and demand through technology and business model innovation, not only improve the user experience, but also
                                                                                                                                                                            Electric service user               Million          >270

achieve scene partners. From software to platform, from service to operation, the company will diligently upgrade its business                                         Number of patents applied                  Set             313

and enhance its value, continue to contribute to the 'double carbon' goal and promote the sustaining socio-economic develop-                                            Number of major patents                   Set             196

                                                                                                                                                                      Number of authorized patents                Set             122
ment!
                                                                                                                                                                      Number of licensed copyrights               Set             880

                                                                                                                                                                         Number of trademarks                     Set             348

                                                                                                                                                                     Number of cooperative suppliers               -              396

                                                                                                                                                                       Total number of employees                Person           6,020

                                                                                                                                                                            female employees                    Person            1,645

                                                                                                                                                                            male employees                      Person           4,375

                                                                                                                                                                    Employees less than 30 years old            Person           3,060

                                                                                                                                                                  Employees between 30 to 50 years old          Person           2,913
                                                                                                                                      Social
                                                                                                                                                                        Employees older than 50                 Person             47
                                                                                                                                   performance
                                                                                                                                                                           Senior management                    Person             37

                                                                                                                                                                          Middle management                     Person            516

                                                                                                                                                                            rdinary employees                   Person           5,467

                                                                                                                                                                       Training hours to employees               Hour           48,321.52

                                                                                                                                                                  Training hours to employees per capita      Hour/capita         4.43

                                                                                                                                                                     Proportion of trained employees               %              100

                                                                                                                                                                    Training hours to fresh graduates            Hour            14,524

                                                                                                                                                             Training hours to fresh graduates per capita     Hour/capita          82

                                                                                                                                                                  employees of Voluntary contributions          Person            322

                                                                                                                                                                         Voluntary contributions               Thousand           18.9

                                                                                                                                                                       Targeted poverty alleviation            Thousand           230

                                                                                                                                                                         Social welfare activities             Thousand           500
LongShine Technology Co., Ltd.       Environment, Social and Governance (ESG) Report 2021                                       69




         Feedback Form

Dear readers:

      Hello! Thank you very much for reading the Environmental, Social and Governance (ESG) Report of LongShine Technolo-

gy Group Co., Ltd. in 2021. We attach great importance to and look forward to hearing your feedback on the sustainable devel-

opment management, practice and information disclosure of LongShine technology. Your opinions and suggestions are an

important basis for us to continuously promote the management and practice of sustainable development. We look forward

to your reply!



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