2022 Sustainability (ESG) Report 1 Yonyou Network Technology Co., Ltd. 2022 Sustainability (ESG) Report Yonyou Network Technology Co., Ltd. ("Yonyou", "the Group", "the Company" About the and "we") has been disclosing its non-financial information annually since CONTENTS 2014, with a total of nine social responsibility/sustainability reports issued by Report 2022. About the Report Future Prospects 58 Reporting Scope Chairman's Message 02 Content Index 60 Organizations covered by the Report: The report is primarily about Yonyou Network Technology Co., Ltd., and covers its GRI Content Index 60 headquarters, industrial parks, subsidiaries in China and abroad, its controlling shareholders and actual controllers. About Yonyou 04 UN Sustainable Development Goals 61 Reporting Period: From January 1, 2022 to December 31, 2022. Part of the Report is beyond the reporting period in order (SDGs) Index Company Profile 04 to ensure consistency. Improving Environmental, Social and 06 Release Cycle: This is an annual report. The previous report was released in March 2022. Governance Management Architecture Awards and Recognitions 08 Social Responsibility Certifications 09 Reporting Standards … The report has been prepared to comply with the GRI Sustainability Reporting Standards by the Global Sustainability Standards Board (GSSB) and the United Nations 2030 Agenda for Sustainable Development (SDGs). For the disclosure of Feature Story: indicators in this report, please refer to the "GRI Content Index" and the "SDGs Index" in the "Content Index" section. As a listed company on the main board of Shanghai Stock Exchange (hereinafter referred to as "SSE") (stock code: 600588), this With the Spirit of Craftsmanship for 35 Years, YonBIP Enables Digitalization and 10 report also refers to the social responsibility disclosure suggestions of SSE. Intellectualization Successful in More Enterprises and Public Organizations Sound Governance 16 Talent Development 42 Data and Information Disclosure The data and information disclosed in the Report are derived from: Improving Corporate Governance 18 Improving Recruitment Management 44 Internal data collection system and relevant statistical statements of the Company Adhering to Compliance Operation 20 Expanding Development Space 45 Outstanding sustainability practices of the Company Strengthening Data Security and 26 Deepening the Employee Care 49 Questionnaires developed to collect qualitative and quantitative information based on the report framework Privacy Protection All financial data disclosed in the Report is derived from the Yonyou Network Technology Co., Ltd. 2022 Annual Report (“Annual Report”). Should there be any inconsistencies between the Report and the Annual Report, the Annual Report shall prevail. Unless otherwise indicated, the currency used is RMB. Green Practice 32 Better Society 52 Providing Green and Sustainable 34 Gathering Ecological Partners 54 How to Get the Report Solutions Innovating Public Welfare Practice 55 Practicing Green and Low-carbon 39 Operations The Report is released in electronic version, it can be downloaded from our website: http://www.yonyou.com/ 2 01 Yonyou Network Technology Co., Ltd. 2022 Sustainability (ESG) Report In 2022, we have set up a sustainable technology products and services During the year, we completed the Chairman's development committee at the as the core, we enable thousands registration of "walk side by side senior management level to of industries to accelerate the with friendship" volunteers in the Message promote the deep integration green transformation, build an volunteer association in city level, of the Environment, Social and environment-friendly production and the volunteer management Governance (ESG) concept and and operation mode, and moved forward to specialization the company's all business jointly address the challenges and systematization. The company's management activities from the of climate change. We focus on public welfare activities are top level, and comprehensively ourselves, continue to improve wonderful and fruitful. improved the company's ESG the green operation mechanism, management level. Yonyou's increase the use of clean energy, The development of enterprises in sustainable development work has comprehensively promote the the new era requires Environmental, entered a new stage. scientific management of energy Social and Governance concepts and resources consumption, and do with a sustainable development By sticking to the right path, a good job in energy conservation, perspective. In the magnificent era we build a solid foundation for consumption reduction and carbon of comprehensively accelerating development. reduction. the digital and intelligent process Since the listing, we have strictly of thousands of industries, Yonyou followed relevant laws and Build a platform to protect the will work hand in hand with the regulations and various regulatory growth of talents. vast number of stakeholders, focus rules, constantly improved the We systematically promote on building a "great power" in the corporate governance structure, the construction of employee digital economy era, earnestly strengthened internal control, development platform, improve fulfill social responsibilities, disclosed information according to the effectiveness of talent retention practice sustainable development, law, managed investor relations, and employee career development and continuously contribute to adhered to equity distribution and in multiple dimensions, carry out comprehensively supporting value management, and attached employee training at different levels, Chinese path to modernization. great importance to the protection implement medium and long- of the rights and interests of term incentive plans such as equity shareholders and creditors of the incentives, care about the physical company. As the world's leading and mental health of employees, cloud service and software provider, and strive to build the company into Wang Wenjing we regard data security and privacy a platform for employees to "work protection as the core priorities happily, achieve careers, and share Chairman & CEO of the company's development, success", and create a better life Yonyou Network establish and continuously improve with each employee. Technology Co., Ltd. the system, strengthen the technical 2022 is an extraordinary year. progress with innovation and support and training mechanism, To carry out public welfare, we In this year, the 20th National technology", and launched a new and lay a solid foundation for help build a better society. Congress of the Communist Party business innovation platform - ensuring the information security. We build the Yonyou public welfare of China was successfully held, YonBIP 3 within the year to upgrade cloud ecosystem, empower many which comprehensively planned the integrated service matrix and Through technology public welfare organizations with the strategy of Chinese path to product ecology. At the same time, empowerment, we protect the advantageous cloud technology modernization. The goal of high- we have opened the era of ecological ecological environment. services and products, and quality economic and social 2.0, comprehensively constructed We fully support the "3060" goal of contribute to digital and intelligent development puts forward higher the "Yonyou Ecological Partnership carbon peak and carbon neutrality. transformation in the public welfare requirements for the digital and Network", enabling customers to With the Yonyou Jingzhi Industrial industry; We expand the scope intelligent transformation of acquire innovation capabilities in the Internet Platform as the core, we and depth of China's commercial thousands of industries. We have new era of economic development implement the "platform + carbon and cultural heritage protection, always adhered to the mission of characterized by digitalization and peak and carbon neutrality" plan. and further enhance our support "promoting business and social intellectualization. With the industry-leading clean for relevant research projects. 02 03 Yonyou Network Technology Co., Ltd. 2022 Sustainability (ESG) Report About Company Profile Yonyou Founded in 1988, Yonyou Network Technology Co., Ltd. (Stock Code: 600588) office and so on, providing is a global leading provider of cloud services, software for enterprises and customers with digital, intelligent, public organizations. Yonyou is continuously committed to using creativity highly flexible, safe and reliable, According to Gartner research, Yonyou is the only Asia-Pacific and technology to promote business and social progress. It built and operated platform-based, ecological, global manufacturer in the top 10 of the global ERP SaaS market, and a world-leading business innovation platform, YonBIP, to help enterprises and social enterprise cloud service the only Chinese enterprise SaaS manufacturer listed in the conduct digital and intelligent transformation and business innovation and has products and solutions, and helping top 15 of the global Application Platform Software, and ranks helped over 10 million enterprises. enterprises develop with high among the top 10 in the global Financial Management System quality. (FMS) market and Enterprise Asset Management (EAM) market. From platform technology, application architecture to scenario service and ecosystem, YonBIP has achieved a comprehensive breakthrough and Yonyou adheres to the core values According to IDC data, Yonyou continues to lead the Chinese innovation, reaching the global leading level, allowing enterprise cloud services of "Friend of Users, Continuous enterprise cloud service market, ranking first in the market to be used on demand, making digital and intelligent value everywhere, making Innovation, and Professional share of Chinese application Platform as a Service APaaS, business innovation so convenient, bringing unique value to enterprises, Struggle" and create value for China's enterprise applying SaaS, and it has ranked first in the industrial economy and society, and building the "great power" of digital and customers. At present, Yonyou has market share of super-large and large enterprises applying SaaS intelligent enterprise in the era of digital economy. more than 230 branches and more in China for many years in a row. It is a major brand of China's than 10,000 ecological partners in enterprise digital and intelligent service and independent YonBIP focuses on the core fields of digital and intelligent platform and the world. Many leading enterprises innovation of software localization. intelligent finance, digital human resources, smart supply chain, intelligent in the industry have chosen YonBIP procurement, intelligent manufacturing, digital marketing, digital and as the platform for digital and intelligent research, digital projects, digital and intelligent assets, collaborative intelligent business innovation. 04 05 Yonyou Network Technology Co., Ltd. 2022 Sustainability (ESG) Report In 2022, Yonyou set up a Sustainable Development Committee under the Improving Board of Governors of the Group, with the chairman and CEO of the Group and Yonyou Sustainable Development (ESG) Committee the Vice President of each key post as members, taking overall responsibility Environmental, In the direction of carbon neutrality, we actively promoted product and service innovation, helped for the company's environment, society and governance (ESG) work. ESG Product customers and ecological partners operate and manage green operations, implemented quantitative management of the Group entered the 2.0 mode. and Service performance of product emission reduction, achieved resource and energy saving, and reduced the Social and Innovation Group impact on the environment Governance We actively responded to the state's strategic planning and deployment requirements on carbon peak Yonyou Sustainable Development Green and carbon neutrality, formulated the company's carbon reduction strategy and implementation strategy, Management (ESG) Committee Operations put the focus of green operation such as clean energy use, energy consumption management, deepening Group environmental concepts, etc. into practice in its own operation process, achieved low-carbon internal Architecture operation, and promoted the realization of the company's carbon neutrality strategic goal. We actively promoted the harmonious development between the company and stakeholders, including: paying attention to the rights, welfare, safety and health of employees, maintaining a compliance and fair investor relationship, safeguarding the rights and interests of users and customers, fulfilling supply chain Social Product Social Corporate Information responsibility management, monitoring healthy cooperation with suppliers and business partners, good Green Harmony and Service Harmony Governance Disclosure communication with the community, participating in community development, responding to social needs Group Operations Innovation Group Group Group through public welfare donations, and improving social performance to achieve corporate social value. Group Group We optimized the rights and responsibilities of shareholders, the board of directors and senior Corporate management, strengthened internal control, avoided out-of-order business behavior, established a Governance perfect anti-corruption punishment mechanism, standardized moral behavior standards, established Group and improved the modern management system, formed a scientific and rational corporate governance organizational structure, and ensured the sustainability of enterprise development. Environmental Social Governance We established and promoted the company's ESG information disclosure mechanism, undertook the collection and submission of the company's ESG information, the preparation and release of the ESG report, Information internal and external publicity, etc.; We actively communicated with stakeholders about the company's ESG Disclosure strategy and related information to enhance the company's sustainable development influence. Group 06 07 Yonyou Network Technology Co., Ltd. 2022 Sustainability (ESG) Report Awards and Recognitions Social Responsibility Certifications In 2022, Yonyou continued to improve the social responsibility management system and promote the social responsibility work to be organized, Granted By Awards professional and systematic. During the year, the company completed the CCTV "Great Power Brand" project team CCTV " Great Power Brand" honorary enterprise title supervision and follow-up review of ISO14001 (environmental management system), ISO45001 (occupational health and safety management system), "Huapu" Award, the Top Annual Award on Branding Achievements for SA8000 (social responsibility standard) and other authoritative certification, Chinese Enterprises and maintained the validity of relevant certificates. The 16th China Brand Festival Top 500 Chinese Brands Forbes 2022 China's Top 100 Digital Economy National Technical Committee for 2022 National Advanced Group for Standardization of Integration of Standardization of Integrated Management of Industrialization and Urbanization Industrialization and Urbanization China Communications Society, Fujian Provincial Department of Industry and Information Top 10 Industrial Internet platform brands in 2022 Technology, etc CCID Media and China Computer News Best Enterprise Award for ICT Industry Ecological Service in 2022 2021-2022 Leading Enterprise of New Generation Information Technology CCID Consultant 2021-2022 New Generation of Information Technology Innovation Products 2022 China's Digital Economy Leader China's Leading Science and Technology Industry SA8000 certification Think Tank JAZZYEAR 2022 China Digital Economy Product Innovation List 2022 China Digital Transformation and Innovation "Cloud Computing Digital Industry Innovation Research Center, etc Innovative Products" Award BiJiXia&InfoQ 2022 Top 50 Digital and Intelligent Innovation Of Chinese Enterprises Global technology community InfoQ APICloud Won the "Technology Development Driving Force Award" Ebrun Top 100 Industrial Internet Companies In 2022 2022 China Information Technology Application Innovation Excellent Product Award Hap Academy, Soft6.com 2022 China Information Technology Application Innovation PaaS Platform Excellent Product Award 2022 Platform-type All Scene SaaS Excellent Product Award ISO14001 certification ISO45001 certification Tsinghua University Technology Innovation 2022 China MIKE Excellent Award (China's most innovative knowledge- Research Center, Lanling Software based organization) 08 09 Yonyou Network Technology Co., Ltd. 2022 Sustainability (ESG) Report Thirty-five years ago, the Beijing New Technology Development Pilot Zone was In the Eventful established. At that time, "Yonyou Software" was born. The company insisted on the top-level concept of "making friends with users" in the past uncommon Years, the Feature Story: 30 years. In 1993, the certificate of Beijing's first independently developed high- tech enterprise was awarded to Yonyou. Since then, Yonyou has stepping onto Original the road of building a "great power" and comprehensively serving the country's economic and social development with digital and intelligent innovation. Intention With the Spirit of Craftsmanship Remains for 35 Years, YonBIP Enables Unchanged Digitalization and Intellectualization Successful in More Enterprises and 01 Public Organizations On June 29, 1993, Yonyou obtained the high-tech enterprise certificate issued by Beijing Municipal Science&Technology Commission In 1996, the financial software of many domestic enterprises could not meet Sailing Against the demand, and the promotion of enterprise management informatization was urgently needed. However, due to the early start in foreign countries, the Current enterprises could only purchase foreign software, and the funds were often tens of millions or even billions. Many large domestic enterprises felt the and Taking pressure from costs. Responsibility In August 1997, Yonyou launched the first enterprise management software ERP (Enterprise Resource Planning, ERP), which provides comprehensive application of software from finance to purchase, sales and inventory for 02 enterprise management, and solves the need of "improving management, technology and level" in most enterprise reforms. In the following years, Yonyou has served the informatization construction of more than 2 million enterprises through ERP software. Not only has it established the first position of Yonyou's enterprise management software, but it has also deeply embedded From application software development to digital and intelligent cloud the gene of scientific and technological innovation in Yonyou, and has become platform construction, at a new starting point, Yonyou is building and the unremitting power and source for Yonyou to reach the forefront of the running the world's leading business innovation platform - Business world in the future. Innovation Platform (BIP), with our own digital and intelligent technology with independent intellectual property, to serve the digital and intelligent Up to now, Yonyou has become the only Asia-Pacific manufacturer of the transformation of enterprises. Yonyou takes the responsibility of the world's top 10 enterprise-level application software1. Behind the transcript is times and contribute to the high-quality development of the economy. Yonyou's spirit of craftsmanship and the solid support of struggle. According to Gartner research 1 10 11 Yonyou Network Technology Co., Ltd. 2022 Sustainability (ESG) Report As the digital economy is becoming a key force in restructuring global factor As a leading enterprise of domestic cloud services and software, Yonyou Focusing on resources, reshaping the global economic structure and changing the global Starting with has always adhered to independent innovation. From the leading financial competition pattern, enterprises are also facing more uncertainties of the times software in China, to the ERP leading the Asia-Pacific, to the world's leading Innovation and while experiencing the sustained and rapid development of digital technology. the End and YonBIP, the pace of Yonyou innovation has never stopped. Taking digitalization and intellectualization as the professional path to achieve Working Hard transformation and upgrading, and promoting "digital intelligent enterprises" Keeping In August 2022, after several years of large-scale research and development to become a new paradigm for enterprise development in the digital economy and continuous iteration, Yonyou officially released a landmark new product era is the key to achieving high-quality development of enterprises. Improving - YonBIP 3, which achieved comprehensive breakthroughs and innovations 03 In the era of constant change of events, Yonyou become clearer and focus on in platform technology, application architecture, scenario services and ecosystem. enterprise services, deeply integrate technology and applications, and form a new strategic layout with "Yonyou Cloud" as the core, and integrate cloud services and software development, officially entering the "Yonyou 3.0" era. In 04 2020, focusing on the three elements of "digitalization and intellectualization, We pioneered the YMS (Yon Middleware Service) cloud middleware localization and globalization", Yonyou launched a new business innovation technology to achieve cross-cloud technology breakthroughs and multi- platform - YonBIP, to boost the new "intelligent manufacturing" of Chinese cloud adaptation capabilities. enterprises. We initiated the continuous delivery system on and off the cloud, built a complete automation engineering system, achieved the agile delivery of the same set of code on and off the cloud, and accelerated enterprise business innovation. Leading multi-tenant and multi-data center technology. We independently developed a multi-dimensional data engine (integration of storage and calculation), realizing 100% independent, safe and controllable, and supporting rapid consolidation of "multi- criteria, multi-currency, primary and secondary tables" under the scale of hundreds of billions of data, and one-click tabulation. Safe and reliable domestication of information and innovation adaptation provides enterprises with reliable, independent and controllable digital and intelligent platform services. YonBIP build a variety of scenario-based applications, comprehensively promoting the digital and intelligent transformation of enterprises in terms of customer-oriented, ecological co-development, employee initiative, real-time perception, data- driven and intelligent operation, and is affectionately called "omnipotent Internet platform" by many users. Based on the latest information technology, YonBIP empowers enterprises to carry out product and business innovation, organizational and management reform, build or reconstruct a platform-based and ecological multi-service body for enterprise development through digitalization and intellectualization, and help thousands of industries' business innovation "go deep and pratical", and achieve digital and intelligent transformation. As of the first quarter of 2022, YonBIP has more than 2,300 enterprise service application models covering the core fields of finance, human resources, supply chain, manufacturing, marketing, research and development, and has built more than 300 enterprise core scenario applications of "process By combining digitization, intellectualization and information innovation, YonBIP 3 realize the real domestic value substitution of service+data service". Chinese enterprises and become a "great power" serving the digitization and intellectualization of enterprises. 12 13 Yonyou Network Technology Co., Ltd. 2022 Sustainability (ESG) Report By the end of 2002, YonBIP 3 had 2,468 independent software vendors (ISV), After more than 30 years of hard work, the vision of "popularizing YonBIP and 419 professional service partners, more than 3,400 certification consultants, making digitization and intellectualization successful in more enterprises and 3,066 business partners, more than 72 strategic alliance partners, over 4,500 public organizations" which throughout the development history of Yonyou colleges and training partners, and 1.1 million registered developers. has become a reality. Today, more than millions of enterprises and public organizations in China and Asia-Pacific choose Yonyou software and cloud services, more than 16,000 products and services have been entered, and nearly 80% of China's "Top 500" enterprises have become long-term strategic customers of Yonyou. Nearly 65% of state-owned enterprises choose Yonyou Case Under the digitized and intelligent innovation, we created a "new engine" for high-quality as their digital partner, and Yonyou dominates the market among large and development with YonBIP. medium-sized enterprise customers. Hangzhou Steel Group was founded in 1957. After as well as key applications such as intelligent more than 60 years of development, it has become finance, human resources management, contract a large modern enterprise group with the pattern management, etc. to help the Group continuously of "2+2" industry. The pattern of "2+2" industry improve its innovation ability, consolidate and We will continue to use creativity and technology to promote refers to the strategic superiority industry with steel deepen the application of the group systematic business and social progress. Yonyou has been in its 35th year since intellectual manufacturing and modern circulation, construction system, effectively docking group and the strategic emerging industry with energy industrial data such as energy conservation, its establishment in 1988 to 2022. It has witnessed the different conservation, environmental protection and digital environmental protection, steel manufacturing, stages of the application of information technology in Chinese technology. trade, digital economy and technological innovation enterprises, from lagging behind developed countries, to catching service industry etc. "Speak with data and make up, and now to leading. It is precisely because of the environment Through YonBIP digital, intelligent base and key decisions with data", YonBIP provided strong that we have the confidence to create a global leading digital field services, Yonyou has provide Hangzhou support for the group industrial budget, decision- Steel Group with data center, collaborative office making, investment, operation, supervision, etc. intelligent platform to serve our customers, the industry and the portal entrance and collaborative office platform, society. ——Wang WenJing 14 15 Yonyou Network Technology Co., Ltd. 2022 Sustainability (ESG) Report Sound 01 Governance Yonyou continuously explores the best model of modern corporate governance, and establishes a sustainable development committee at the senior management level to coordinate the ESG management of the whole group, continues to deepen the compliance operation, improves the management mechanism and institutional system, and takes the construction of compliance culture to a new level. Yonyou further strengthens the data security and privacy protection, lays a solid foundation for ensuring information security, and the connotation of "friend of users" is more profound. Improving Corporate Governance 18 Adhering to Compliance Operation 20 Strengthening Data Security and Privacy Protection 26 16 17 Yonyou Network Technology Co., Ltd. 2022 Sustainability (ESG) Report Yonyou persists in exploring the best practices of modern corporate Improving governance, actively promotes the integration of Environment, Social and Information Disclosure Governance (ESG) concepts into all aspects of corporate governance, and We always adhere to the compliance, transparency and professionalism of Corporate continuously optimizes corporate governance capabilities. 273 information disclosure, constantly improve the timeliness and quality of information disclosure through multiple channels, and ensure that investors Governance Hotline calls of timely, complete, accurate and equal access to company-related information. investors answered Institutional Construction In 2022, we completed the preparation of 200 temporary announcements and the disclosure of relevant documents, such as the announcement of share In 2022, in combination with new regulations and requirements, we revised repurchase, the announcement of equity incentive, the announcement of the and improved the Articles of Association of Yonyou Network Technology 51 use and management of raised funds, through the website of the Shanghai Co., Ltd., the Rules of Procedure of the Board of Directors of Yonyou Network Stock Exchange, the Shanghai Securities News, the Securities Daily, the China Technology Co., Ltd., the Rules of Procedure of the Board of Supervisors of Questions on the SSE Securities News, the Securities Times and other legal information disclosure E interactive platform Yonyou Network Technology Co., Ltd., the Rules of Procedure of the General media, without receiving inquiries from the CSRC and the Exchange. responded Meeting of Shareholders of Yonyou Network Technology Co., Ltd., the Management System of Related Transactions of Yonyou Network Technology We attach great importance to the protection of the rights and interests of Co., Ltd., and the External Investment Management System of Yonyou Network minority shareholders. During the year, we answered 273 investor hotline calls, Technology Co., Ltd and so on which were reviewed and approved by the board 107 answered 51 questions on the SSE E interactive platform, and responded to 107 of directors, to further build a solid institutional foundation to ensure the legal investor emails. At the same time, we established a "weekly report on investors' compliance of corporate governance and the steady development of business Emails of investor concerns" system to facilitate the company's management to understand the responded operations. feelings and thoughts of minority shareholders in a timely manner. In 2022, we made investors know the latest development of the company in a timely manner by holding an online investor roadshow and participating in the performance briefing organized by the Shanghai Stock Exchange Roadshow Quality and Efficiency of Execution of Duty Center.In addition, we actively organized offline company research and reverse roadshows to promote investors to fully and intuitively understand the We stipulate the attendance rate of the board of directors in the Articles of Association of Yonyou Network Technology company's new products and business progress. Co., Ltd., and made it clear that the board members should attend the board of directors of the company and exercise their voting rights, except in the case that they are unable to attend the board of directors for non-business reasons. The board meeting should be held only when more than half of the directors are present. In 2022, all the directors of the company performed their duties diligently, and the attendance rate of the board meeting was 100%. The Company's 2021 Annual Report and Summary, the Company's 2021 Sustainable Development (ESG) Report, the Company's 2022 Semi- annual Financial Report and other proposals were reviewed and passed. The improvement of ESG management level was promoted at the top-level of corporate governance. We attach great importance to the independence and professionalism of directors. The members of the special committees of the board of directors are all composed of directors, among which the independent directors of the audit committee, the nomination committee, and the remuneration and evaluation committee account for the majority and serve as the convener; The independent directors of the company independently perform their duties and are not affected by the major shareholders, actual controllers or other organizations or individuals having interest relation with the listed company. We actively explore the diversification path of the board of directors, scientifically and fully consider the term of office, responsibilities, qualifications and other factors of independent directors, and promote the selection and employment of female independent directors. We are committed to continuously improving the performance and governance ability of the directors, supervisors and senior executives of the company, and organize the directors, supervisors and senior executives to participate in the training of the Shanghai Stock Exchange, the China Securities Regulatory Commission, the China Association of Listed Companies, the Beijing Association of Listed Companies, etc. every year, and provide full service for their participation in the training and daily performance, and actively feed back their opinions and suggestions during the performance of their duties to the company to ensure compliance performance. In 2022, the board of directors, supervisors and senior executives of the company participated in eight training sessions with the theme of "listed companies do a good job in ESG" and "ESG helps enterprises develop with high quality", and the ESG management concept and ability were In August 2022, we held the annual business innovation annual meeting in Guangzhou - a special exchange conference for effectively improved. investors. We invited the company's core investors and mainstream securities companies to participate in various sub-forums, and organized a special exchange conference for investors, and facilitated stakeholders to understand the highlights of the company's new products and business performance, which was widely praised. 18 19 Yonyou Network Technology Co., Ltd. 2022 Sustainability (ESG) Report Yonyou strictly abides by the baseline of compliance, insists on fully integrating Adhering to the business ethics concept into daily operation, and is committed to System Optimization continuously improving the responsibilities of each responsibility entity We establish and continuously improve the "Three in One" policy consisting of employee behavior management, anti- Compliance of compliance management to ensure the long-term stable and healthy fraud work management, and reporting and handling management to lay a solid institutional foundation for the stable development of the company. development of the company. In March 2022, we completed the revision and optimization of several key compliance Operation management systems, such as the Supervision System of Yonyou Network Technology Co., Ltd., the Internal Audit System of Yonyou Network Technology Co., Ltd., and the Regulations of Yonyou Network Technology Co., Ltd. on Punishment of Firmly Establishing the Baseline of Compliance Employees' Violations, and officially released them. The quality and efficiency of the company's compliance operation, employee behavior management, and audit supervision were further improved. At the same time, we paid attention to We focus on the current high-quality compliance management of enterprises, the management of subsidiaries, promoted the formulation and release of audit supervision and punishment policy of 12 establish and improve the compliance management mechanism, constantly subsidiaries in the year, and the compliance operation management of subsidiaries reached a new level. improve the compliance operation system, deeply promote audit supervision and integrity education, cultivate the compliance culture, and the compliance concept is deeply rooted among the people. Certification/ Release Scope of Policy Main Content Approval Mechanism Support Date Application Authority We establish a business ethics management mechanism in which the Supervision The responsibilities and authorities of the supervisory March 4, All staff Board of directors and senior management are directly responsible and the functional System of organization, supervisory personnel and the supervision 2022 directors Yonyou Network department of the Group, the supervision work procedures, departments have a clear division of labor. The Company's Audit and Technology Co., the punishment rules, the supervision opinions and the Supervision Department is responsible for internal audit, reporting and Ltd implementation of the punishment decisions. investigation and handling of violations, and reporting the audit work to the Board of Directors and the Audit Committee. The Board of Directors of Internal Audit The responsibilities and authorities of the internal audit March 4, All staff Board of the Company appoints a member (director in charge) to take charge of the System of institutions, auditors and the Group Audit Department, 2022 directors Company's internal audit and supervision work on behalf of the Board of Yonyou Network the audited objects and business scope, the internal audit Technology Co., procedures, penalty rules, the implementation of audit Directors. The company appoints a senior manager to concurrently serve as Ltd recommendations and punishment decisions. the general manager of the Group Audit and Supervision Department, who is responsible for the specific internal audit and supervision work under the Regulations of The types and application of punishment for violations, the March 7, All staff Board of leadership of the director in charge. The Human Resources Department is Yonyou Network person responsible for violations, and the punishment and 2022 directors responsible for staff compliance training and education. Technology decision-making procedures of the person responsible for Co., Ltd. on violations. Punishment of Employees' Violations Yonyou Group Ensure that the informant is protected in the process of July 16, All staff Director Reporting assisting the investigation. The staff who accept the report 2021 in charge Management or participate in the report investigation shall strictly abide Regulations by the confidentiality discipline, and shall not disclose or report about the informant's identity information to any department or individual without authorization. Any act of discrimination or retaliation against the informant is strictly prohibited. Regulations The concept and form of fraud, the attribution of anti-fraud December All staff Director on the responsibilities, the prevention and control of fraud, the 21, 2016 in charge Management reporting, investigation and statement of fraud cases, the of Anti-fraud permanent organization and functions of anti-fraud work, Practice of the communication channel of anti-fraud information, the Yonyou Group guidance and supervision of anti-fraud work, and the remedial measures and punishment of fraud. Yonyou Formulate and standardize the relevant contents of the July 24, All staff Board of Employee basic standard of conduct for employees to ensure that 2019 directors Standard of employees act correctly in business conduct. Specify the Commercial laws and regulations, social ethics and company rules and Conduct regulations to be observed, prohibited behaviors related to employees' interests, avoidance of conflicts of interest, job avoidance, etc. The principles and ways of reporting, the process of accepting and handling, and the punishment regulation for violations. 20 21 Yonyou Network Technology Co., Ltd. 2022 Sustainability (ESG) Report Audit Supervision Regulations of Yonyou Network Technology Co., Ltd. on Punishment of Employees' Violations (Excerpt from anti-corruption content) In 2022, we made solid progress in audit supervision, carrying out 48 audit supervision projects including departure audit, performance audit, special audit, and internal control evaluation during the year, and corrected the problems found in the audit and supervision process, so as to ensure the long- Corruption refers to the behavior of the company's employees or a third party to obtain improper or term and stable development of the company. illegal benefits by cheating and other illegal means. Investigate the completion of the audit object's business Practices of corruption include but are not limited to the following: performance, whether there are major decision-making mistakes and control defects in management, and whether 01. Expenditures for improper purposes, such as bribery; Departure there are fraud matters in the pending matters within the scope Audit of responsibility. 02. Solicit and accept property, kickbacks or other improper interests (borrowing cars, loans, houses or Within the year, 27 departure audit projects were completed. other properties of high value from suppliers or partners are considered as accepting bribes); Audit the authenticity of the audited entity's performance. 03. False performance: including but not limited to false report of business income, profit, number of Performance paying customers and other performance data related to the assessment; Audit 10 performance audit projects were completed during the year. 04. Conceal or delete important information that should be disclosed to the public; Carry out comprehensive evaluation of the operation and management of audited entities. Special 05. Forge or alter seals, forge signatures or similar illegal acts; 3 operations management audits were completed within the Audit year. 06. Forge or alter accounting records or vouchers; Carry out internal control evaluation of subsidiary companies based on regulatory requirements and actual conditions of their own operations. Internal Control 07. Evasion of taxes; Evaluation A total of 8 internal control evaluation projects were implemented during the year. 08. Disclose and transfer the trading opportunities that can make the organization profitable to others; We strive to strengthen the construction of the audit talent system, build a 09. Possession and use of company property in violation of laws and regulations, encroachment, learning organization, and strengthen auditors' learning of professional skills, misappropriation and theft of company property; management skills and the company's core values; we systematically sort out and optimize the professional development model of auditors, carry out special training in audit thinking explanation, project exchanges, and company 10. Make the company pay money or generate input for false transactions; business, train and exercise auditors' project management capabilities and audit thinking relying on key audit project. The audit talent team and capabilities were improved with remarkable results: the implementation 11. Disclose the company's business or technical secrets; efficiency of our departure audit and performance audit projects increased by 74% year-on-year, the release efficiency of departure audit and performance audit reports increased by 108% year-on-year, and the number of the 12. Other fraudulent behaviors that seek personal or organizational improper interests or damage the completion of departure audit and performance audit projects increased by interests of the company. 17% year-on-year. 74 % 17 % 108 % Growth in implementation Growth in number of the Growth in release efficiency of efficiency of departure audit and completion of departure audit and departure audit and performance performance audit projects performance audit projects audit reports 22 23 Yonyou Network Technology Co., Ltd. 2022 Sustainability (ESG) Report Employee Behavior Management and Incorruptibility Education Practicing Responsible Procurement We continue to build a long-term mechanism of "Dare not corrupt, can't We continue to strengthen the responsibility construction of the procurement corrupt, and don't want to corrupt", deepen the handling of both symptoms system, and under the framework of the Yonyou Procurement Management and root causes, and build a good transparent business culture and ecology. System , we have developed a secondary procurement system for the three In 2022, we strengthened the implementation of supervision work, carried out major business types of conventional procurement (including IT equipment 10 supervision projects, strengthened the audit supervision and punishment procurement), outsourcing procurement and third-party commodity of violations in high-risk business links, and punished and notified 17 integration procurement, further refining the procurement operation employees with serious violations; We accepted and completed the handling specifications, and improving the responsible procurement management of 10 integrity reports in accordance with the Supervision System of Yonyou mechanism. Network Technology Co., Ltd., effectively curbed the occurrence of violations of employees, and further improved the company's compliance culture We fully implement the SA8000 social responsibility management system, Yonyou Network construction level. By the end of 2022, our audit and supervision coverage of 100 % and take the Sunshine Cooperation Commitment and Supplier Social Technology Co., Ltd. the Group's own high-risk business has reached 100%. Responsibility Commitment as the annexes to the Supplier Qualification Status Incorruptibility Culture Coverage of signed Table , requiring all suppliers to sign and promise to effectively cooperate with Promotion Page company supplier We accelerate the promotion of integrity education and integrity culture the comprehensive implementation of the company's social responsibility promotion methods iterative updates, the company's official website launched management system. In 2022, we conducted a social responsibility audit on the integrity culture promotion page within the year, to convey the company's 24 suppliers involved in key project cooperation through on-site inspection, management to the integrity issue of the "zero tolerance" attitude and voice, covering the formulation of anti-corruption policies and the construction of and established the company's clean operation image of going straight, going social responsibility management system. By the end of 2022, our Sunshine far, and operating in the sunshine. Cooperation Commitment and Supplier Social Responsibility Commitment signed have covered 100% of the company's suppliers, and required all In 2022, we continued to carry out the study and examination of the Code of suppliers cooperating with the company to establish a sound anti-corruption Conduct for Yonyou Employees covering all regular employees, promoted the and social responsibility management policy system. compliance training of employees' business behavior through the method of "online learning + offline training",and implemented the training and During the year, we adhered to the concept of "Yonyou should be the model assessment. The pass rate of the examination reached 93.9%. We compiled the 3 user of Yonyou products", relying on our own advantages of cloud service publicity and implementation materials of incorruptibility culture for subsidiary technology, promoted the use of the professional procurement platform companies and new employees, organized and carried out three times of Working days reduction of "youGo" throughout the group, integrated the procurement business into publicity of incorruptibility culture for all employees, and comprehensively procurement approval time an efficient cloud platform for implementation, and realized the transparent promoted the business compliance concept of employees to be deeply rooted online operation of the procurement business throughout the whole process. in the hearts of the people. In addition, we actively publicized the concept of The company could supervise every procurement activity in the whole process incorruptibility to suppliers and partners. During the year, we carried out four 10 % and all links, and the business implementation and approval could be fully targeted publicity activities on incorruptibility culture. At the same time, we open and traceable, realizing the visibility, control and check of purchase explicitly required all sides to abide to abide by business ethics in emails to all Growth of efficiency business. At the same time, the online procurement system of youGo, which suppliers and partners, emphasized that the company holds a "zero tolerance" has comprehensive and integrated advantages, significantly saved the labor attitude towards bribery and corruption, and worked with suppliers and and time costs of offline operation and approval. Compared with multi- partners to create a transparent business environment. 2.7 % platform operation2, the procurement approval time is reduced by an average of 3 working days, the efficiency is increased by 10%, and the procurement cost Reduction of procurement cost is reduced by 2.7%. Take outsourcing business as an example 2 24 25 Yonyou Network Technology Co., Ltd. 2022 Sustainability (ESG) Report Data security and privacy protection are the core tasks of Yonyou as a software In 2022, we prepared and revised several data security and privacy protection Strengthening and information service enterprise. Yonyou strictly complies with laws and systems covering account passwords, data, privacy, content, emergency regulations such as the Network Security Law of the People's Republic of response, etc. in accordance with the latest laws and regulations and industry Data Security and China, the Data Security Law of the People's Republic of China (hereinafter regulatory requirements such as the Administrative Measures of Data referred to as the Data Security Law ), the Personal Information Protection Security in the Industry and Information Technology (Trial), the Rules for Privacy Law of the People's Republic of China (hereinafter referred to as the Personal Implementation of Personal Information Protection Certification, the Rules for Information Protection Law ), and takes network security, data security and Implementation of Data Security Management Certification, and the Measures Protection privacy protection as the baseline of the company's operation, and continues for the Evaluation of Data Situation Security, effectively ensure that the to improve the management mechanism. In 2022, we focused on a series of company's information security work is comprehensive, orderly and efficient. newly issued national information security and privacy protection laws and regulations and regulatory provisions, and carried out key work in regulation and system construction, security capacity construction, internal security governance, and security awareness deepening, to ensure the effective implementation of the company's various security strategies and objectives, and improve the company's overall information and privacy protection level. Policy Main Content Release Date Scope of (status) Application Optimizing Mechanism and System Establish a product safety and emergency April 2022 (officially Group wide response team, clarify the specification released) In 2022, we comprehensively upgraded the security organizational structure, upgraded the Group Information Security requirements of data protection measures Management Committee to the Group Information Security and Privacy Protection Committee, fulfilled the group's Product Safety and Emergency such as vulnerability collection, evaluation, internal security management and supervision responsibilities, and ensured that national laws and regulations related Response Specification repair, disclosure, and incorporate them into the management of the whole to information security and privacy protection and industry regulatory requirements were fully implemented. The Group product lifecycle. Information Security and Privacy Protection Committee consists of the Information Security and Privacy Protection Leading Group, the Information Security Working Group and the Privacy Protection Working Group. Among them, the Information Security and Privacy Protection Leading Group is headed by the Senior Vice President in charge of security, Clarify the division of responsibilities April 2022 Group wide the members include the main leaders in charge of product research and development, human resources, legal affairs, IT, between the network area and the Internet (tentative to official agency management and various business groups and subsidiaries within the Group. Internet Export Security Management export management department, and release) Rules clarify the processes and requirements for opening Internet exports. Information Security and Privacy Information Security Protection Leading Group Working Group Conduct classified management on July 2022 (revised Group wide Account and Password Security accounts and standardize password and issued) Management Rules setting requirements for various accounts. Assessed the overall security We promoted internal security risks according to the company's governance, handled security development strategy and national incidents, and promoted the Implement the Data Security Law and August 2022 Group wide laws and regulations and industry promotion and implementation of clarify the requirements of data ownership, (revised and regulatory requirements, and various Group security requirements Data Security Management System data classification and data lifecycle issued) (Trial) management. formulated the Group's overall within the organization to meet information security and privacy regulatory compliance and Group protection strategy and goals. security objectives Implement the Personal Information August 2022 Group wide Provided decision-making and Protection Law , and stipulate the (officially released) resources for information security company's requirements and privacy Personal Information Protection and privacy protection work, and provisions in the collection, storage, Management Specification Privacy Working Group reviewed and approved important sharing, use and destruction of personal information. matters related to information Interpreted relevant national security. laws and regulations on privacy protection and met customers' Carry out security control on the September Group wide Coordinated and promoted the needs for privacy protection. Content Security Management platform providing registration and 2022 (officially construction of various safety tools Specification content publishing, and fulfill the main released) and protective measures, guided Handled privacy security risks, responsibilities. and designed and supervised the optimized privacy protection implementation of various safety systems and processes, and Standardize the security management October 2022 Group wide Mobile Application Security requirements and procedures for mobile (officially released) work. promoted the realization and Management Specification App online implementation of privacy protection foundations. 26 27 Yonyou Network Technology Co., Ltd. 2022 Sustainability (ESG) Report Building a Secure System YonBIP Network and Information Security Emergency Plan (Excerpt) We steadily promote the construction of information security capabilities, improve the information security system, and take multiple measures to improve the information security and data protection capabilities; we do a good job in the annual inspection and maintenance of information security certification to ensure that the company's information security level is always at a high level. In 2022, we joined the Data Security Professional Committee of the China Computer Emergency organization structure (part): Network and information security incident Industry Association, and also became a member of the "Zhuoxin Big Data Program" of the China Academy of Information the leading group is composed of persons response process (part, taking Level I and Communications Technology. in charge of all fields, responsible for the incidents as an example): for data leakage organization, management, coordination and security incidents, the leading group shall implementation of YonBIP system network and report in time according to the relevant Capacity Building information security work, and responsible for provisions of the National Network Security the evaluation of major events and emergency Incident Emergency Plan . The report contents During the year, we continued to improve the company's information security assurance capability through various ways response command; the security expert group include but are not limited to: the overall including system upgrading, platform construction, technical cooperation, security audit, etc. is composed of security architects or security situation of the type, quantity, content and managers in various fields, providing decision- nature of the personal information subject, making suggestions and technical guidance the possible impact of the incident, and the R&D Process Management: We issued R&D Management System 5.0, which integrates safety and credible for emergency response, tracking the follow- disposal measures that have been taken or requirements on the original basis, and defined specific safety activities, key roles and outputs. At the up problem repairing to the closed loop, and will be taken, contact information of relevant same time, we conducted inspections through decision review and technical review points to ensure the participating in the emergency response of personnel for incident handling, etc. System implementation effect of safety activities. network and information security incidents Upgrading when necessary. Product Security: We established the PSIRT organization of the Group, established a complete security issue handling and grading process, patch release process, vulnerability response and repair SLA and standardized vulnerability disclosure standards. Situation-aware Platform: The construction of dual centers on and off the cloud, with a security probe coverage rate of more than 99%, realized dynamic perception of security issues, and constructed an infrastructure network security inspection and early warning system Yonyou Security Center: Covered YonBIP, NCC, U8, Yonyou Government Affairs, Changjietong, U9C and According to the classification of security Emergency training and drill (part): hold other product lines, gathered the historical information security vulnerabilities of each product line, uniformly events, formulate the processing flow of emergency plan training at least once a year released security patches, and focused on the group's security release channels to create a unified outlet for network interruption, hacker attack, large- for relevant personnel of information security the group's security information release, so as to better help customers improve the security of operating scale virus (including malware) attack, system; organize emergency action drills at products. database system failure, and equipment least once a year to improve the emergency response capacity. Network Space Exposure Monitoring Platform: The group-level Internet service asset exposure risk Platform hardware failure. Construction monitoring platform was officially operational, which can obtain the security risk warning of the group's external Internet services and handle it at any time. At the same time, in accordance with the Internet export security Management Rules , it follows the principle of non-opening if not necessary, and strictly controls the relevant violations in the management of network security exports. Content Security Audit Platform: Strictly implemented the Group Content Security Management Certification System Specification , vigorously carried out content security governance within the Group, and all systems involving In 2022, we successfully passed the annual inspection of security certification user registration and content release were forced to access the content security audit platform. At the same time, the auditors of each business department conducted manual verification to ensure the compliance of classified protection, ISO2700 series and trusted cloud series. By the end of operation of the Group's business. 2022, the proportion of self-owned businesses certified by ISO27001, ISO27701, ISO27017, ISO27018, C-Star, DCMM (Data Management Capability Maturity Expanded technical cooperation in security ecology, carried out in-depth communication and cooperation Assessment Model), classified protection, trusted cloud service, trusted cloud with multiple data security technology companies within the year, and comprehensively strengthened the Technical security, trusted R&D operation, EAL3+, etc. reached 100%, The company's ability of threat intelligence collection, vulnerability scanning, risk assessment, code audit, etc. Cooperation information security management level has reached the top level. Deeply promoted the code security audit of key products and business lines. By the end of 2022, the Group had scanned 17 billion lines of code. Through the research and development of the production line security control system, information security vulnerabilities were found and handled in a timely manner, and the Passed the "Trusted R & D Operation Security Capacity Security Audit security of released products was systematically improved. Maturity Assessment (Enhanced Level) Certification" of the China Academy of Information and Communications Technology, and the overall pass rate reached 99.5%. For key products such as YonBIP, we have prepared, continuously revised and improved the emergency plan for information security incidents, formulated the classification, response process, early warning and prevention mechanism, emergency response measures, etc. of information security incidents, and ensured that active and passive response Passed the China Electronic Information Industry measures are deployed in place and targeted. In 2022, we participated in the attack and defense drills organized by the Federation DCMM (Data Management Competency Ministry of Industry and Information Technology of the People's Republic of China (hereinafter referred to as the MIIT) Maturity Assessment) Party B Level III certification, and other national institutions for many times, and won the title of "Excellent Defense Practice Enterprise" in the "Casting marking the Group's data products and data service network 2022" industrial Internet security real network drill of the MIIT. capabilities as the industry leader. 28 29 Yonyou Network Technology Co., Ltd. 2022 Sustainability (ESG) Report Strengthen Privacy Protection We regularly audit the personal information management of the main responsible department for personal information protection, including but not limited to the implementation of various security specifications and privacy agreements, In 2022, we formulated and issued the Yonyou Group Personal Information Protection Management Specification the effectiveness of security technology, relevant approval and time processing records, etc. We formulated and applicable to all business groups of the Group, all cloud and software subsidiaries, all regional institutions and customer signed the Supplier Information Security Agreement with suppliers to clarify the information security requirements business departments, which made clear provisions and commitments on the collection, transmission, storage and use and responsibilities of suppliers in terms of products, services, systems, etc. In 2022, we conducted a review of the of personal information, and further clarified the personal information subject's3 right to delete, query and change, copy implementation of the Supplier Information Security Agreement on 10 suppliers, and the review qualification rate reached and transfer, and revoke the authorization of personal information, to ensure the compliance and legality of the Group's 100%. personal information and data processing, prevent the disclosure or illegal use of personal information, and effectively protect the interests of customers. During the year, we added personal information and data protection functions such as user login confirmation, dynamic update of privacy policy, and pop-up window of privacy policy to the company's products. At the same time, we further strengthened the management of group applications (Apps), and carried out special governance of privacy security for the first-level departments, business groups, and branch offices within the group. The rectification rate of privacy security Yonyou Group Personal Information Protection Management Specification (Excerpt) vulnerabilities reached 97.6%, and the privacy security risk of the group's core business App was significantly reduced. In 2022, there were no incidents reported due to violations in the country's high-intensity supervision work by regulators at all levels. Collection of Storage Management of Personal Information Personal Information Any organization, department or personnel shall Unless otherwise specified by laws and Improving Employee Training not collect personal information in the form administrative regulations, the storage period of fraud, deception or misleading, or obtain of personal information set shall be the shortest We regularly carry out information security training covering all employees, personal information from illegal channels, or time necessary for processing purposes, and focusing on employees with technical lines such as research and development, collect personal information that is explicitly meet the requirements of national laws and testing, operation and maintenance, and operation, and provide employees prohibited by laws and regulations and relevant regulations and relevant provisions of the with training covering information security defense, high-frequency fore-end provisions of the industry authorities. industry authorities. vulnerabilities, privacy information security protection, threat intelligence active defense and other contents in a combination of online and offline. In Minimum necessity requirements: the type If the service or operation of the product is 2022, we further expanded the training coverage, including fresh graduates of of personal information collected should be terminated, the user shall be notified at least 2022, and comprehensively strengthened the information security awareness directly related to the business function of the 30 days in advance, and the user's personal of new employees through various types and multi-dimensional security product or service, and personal information information shall be deleted or anonymized awareness training. By the end of 2022, we had conducted 12 training sessions should not be collected beyond the scope; after the service or operation is terminated. on information security, involving 23,000 employees. In addition, we conducted Personal information should be collected in security training for third-party personnel for suppliers, with 500 participants the way that has the least impact on personal during the year. interests. By the end of 2022 Sharing and Transfer of Entrusted Processing of Personal Information Personal Information The sharing and transfer of personal If it is necessary to entrust a third-party information is prohibited. If there is a real and organization to process the personal 12 23,000 objective need to share and transfer personal information collected by the company, the information (such as legal requirements), the entrustment should not exceed the scope of Trainings on Annual participants of information security employees initiating department of personal information the authorization of the personal information sharing and transfer shall fill in the application subject. The relevant business department and submit it to the company's Network should jointly evaluate the entrusted party In addition, we conducted security training for third-party personnel Security Department for approval. At the same with the Group Network Security Department for suppliers. time, the initiating department shall sign a data to ensure that it has sufficient personal sharing and transfer agreement with the data information protection level, including but not receiver to clarify the relevant responsibilities limited to: security qualification, the system, 500 and obligations. The sharing and transfer ability and practice of personal information agreement shall be reviewed by the Group protection specification/data security Annual training participants of third-party personnel Network Security Department and the Group specification. Legal Department. Natural person identified or associated with personal information 3 30 31 Yonyou Network Technology Co., Ltd. 2022 Sustainability (ESG) Report Green 02 Practice Yonyou fully supports the "3060" goal of carbon peak and carbon neutrality, constantly improves the top-level design of product strategy and development, relies on the advantages of technology and products to enable the green transformation of thousands of industries, insists on promoting the implementation of clean energy use, scientifically implements energy consumption management and emissions management, practices green operation, and works with partners to minimize the disturbance of the operation process to the environment, and jointly safeguard the green waters and mountains. Providing Green and Sustainable Solutions 34 Practicing Green and Low-carbon Operations 39 32 33 Yonyou Network Technology Co., Ltd. 2022 Sustainability (ESG) Report Yonyou is committed to using its advantageous products, services and Providing Green technologies to help customers achieve environmental sustainability, and Empowering Circular Economy works with customers and partners to jointly address the challenges of The "Fourteenth Five-Year Plan" for the Development of Circular Economy and Sustainable environment and climate change. points out that vigorously developing circular economy is of great significance to safeguard national resource security, promote the realization of carbon peak Solutions and carbon neutrality, and promote the construction of ecological civilization. Optimizing Product strategy and Development Yonyou Jingzhi integrates 5G, Internet of Things, artificial intelligence and other new generation information technologies, integrated full connection We have actively responded to policies including the Opinions of the CPC intelligent factory solutions, scrap5 intelligent identification solutions, etc., to Central Committee and the State Council on the Complete and Accurate create a solution suite of "Jingzhi Industry Internet + carbon peak and carbon Implementation of the New Development Concept to Do a Good Job of neutrality", and achieve energy consumption, emissions and consumption Carbon Peak and Carbon Neutrality, the Action Plan for Carbon Peak before reduction by digital and intelligent means. 2030 , and the "Fourteenth Five-Year Plan" for Industrial Green Development , integrating the strategic goal of "Carbon Peak and Carbon Neutrality" with our The traditional inspection and grading of scrap steel mainly rely on visual own development, and actively participating in the response to global climate inspection, caliper measurement and other means. There are many defects change with the support of our own advantageous technologies and products. such as large human factors, cumbersome procedures, many objections to grading quality, low efficiency and low accuracy. Yonyou has built a "5G In 2022, we set up the Sustainable Development (ESG) Committee under the + industrial Internet + scrap intelligent recognition solution" by combining board of governer to identify opportunities related to clean technologies, advanced technologies such as image acquisition, automatic photography, set strategic plans and goals for clean technology development, promote in-depth learning, data interface, 5G communication, etc. It uses the most innovation in clean technology-related products and services, and help advanced in-depth learning algorithm based on convolutional neural network customers and ecological partners reduce their carbon footprint and achieve to build a scrap intelligent recognition model by training a large number environmentally friendly operations. At the same time, we incorporated of scrap images, so as to achieve remote monitoring of scrap inspection, "platform + carbon peak and carbon neutrality4" and other clean technology intelligent grading of scrap and intelligent determination of the amount of innovation and application related plans into the company's core long-term impurities deducted. strategy "Development BIP", and strategically promoted products and services with cloud technology and industrial Internet as the core to provide more green By the end of 2022, Yonyou's scrap intelligent identification solution has development solutions for customers. applied for 9 patents and software copyrights, and has full independent intellectual property rights. It has been widely used in more than 10 iron and During the year, we continued to increase R&D investment, introduced high- steel enterprises, such as Ansteel Group, Jiyuan Iron and Steel, Minyuan Iron end R&D talents, and enhanced the core application ability of clean technology- Scrap is a green resource and the and Steel, Xinyang Iron and Steel, Jingye Iron and Steel, and Xinhua Metallurgy, 5 only resource that can replace iron related products, platforms, and services. The R&D investment reached 2.92997 to help iron and steel enterprises significantly improve the scrap recycling ore for steelmaking. It has high billion yuan, up 24.5%.% year on year. environmental protection value for efficiency and help the steel industry achieve the "carbon peak and carbon the steel industry. neutrality" goal. In order to help enterprises save energy and reduce consumption and help achieve the goal of 4 "carbon peak and carbon neutrality", Yonyou integrates intelligent factory system, scrap grading system and post equipment service system to create a "Jingzhi Industry Internet + carbon peak and carbon neutrality" solution, helps enterprises reduce energy consumption, resources Case "Yonyou Jingzhi + carbon peak and carbon neutrality" solution helped the steel industry consumption and emissions, and achieve green manufacturing. achieve the goal of "carbon peak and carbon neutrality" Minyuan Iron and Steel: Jiyuan Iron and Steel: Deepening Product Technology Empowerment The "5G + ultra-low emission fugitive emission Based on the solution of "Jingzhi industry Internet Technology empowers "carbon peak and carbon neutrality" goals and management, control and governance integrated + carbon peak and carbon neutrality", Jiyuan Iron innovation drives development. As the world's leading enterprise cloud service platform" jointly built by Yonyou and Minyuan and Steel has achieved an accuracy rate of more and software service provider, we continue to strengthen the independent Iron and Steel met the environmental monitoring, than 95%, a quantity of nearly 500,000 tons of scientific and technological innovation capability of Yonyou Jingzhi Industrial pollution prevention and scientific decision-making scrap, and an annual cost savings of tens of millions Internet Platform (hereinafter referred to as " Yonyou Jingzhi") by building and needs of fugitive dust under the new situation, of yuan. operating the world's leading business innovation platform - YonBIP, and jointly and helped Minyuan Iron and Steel to complete with the leading enterprises in thousands of industries to explore new paths, the announcement of the ultra-low emission create new synergy and build a new ecosystem for the "5G+industrial Internet", transformation and evaluation and monitoring promote the deep integration of "5G+industrial Internet" technology and entity progress of iron and steel enterprises of the China industry, and help achieving the goal of "carbon peak and carbon neutrality". Association of Industry, it was also selected as the By the end of 2022, Yonyou Jingzhi has been deployed and launched in 33 fifth batch of "green factories" by the Ministry of provinces, cities and regions across the country, with 1.42 million sets of Industry and Information Technology of China. industrial equipment connected and 22,000 industrial applications, providing more than 286 industrial enterprises with lower cost and higher value services. 34 35 Yonyou Network Technology Co., Ltd. 2022 Sustainability (ESG) Report Empowering Energy-saving Products Yonyou intelligent factory system helped multiple Case Yonyou smart factory The service extension is one of the new modes of the industrial internet, high-energy-consuming industries to achieve energy system enables enterprises and it is also a key "booster" to help the manufacturing industry explore saving and consumption reduction. to make energy-saving and formulate green product standards and service standards, guide green manufacturing production, optimize energy consumption management of high-energy- consuming equipment, and realize energy conservation and consumption Welding Material Industry: In Sichuan Daxiyang, an intelligent reduction in the manufacturing process. The "post-equipment service system" factory based on Yonyou Jingzhi built an intelligent manufacturing is a specific product of Yonyou Jingzhi Industrial Internet service extension. system that integrated software and hardware, human-material- The system takes intelligent equipment as the core and comprehensively equipment-information system interconnection, introduced a links equipment manufacturers, equipment service providers and equipment Production series of intelligent equipment such as Automated Guided Vehicle owners based on the Internet. It provides services for the whole lifecycle of Equipment (APV), Rail Guided Vehicle (RGV), robot, and stereo storehouse, and the equipment. Through intelligent Internet of Things, remote monitoring, realized the integrated interconnection of intelligent equipment. intelligent operation and maintenance, intelligent diagnosis and other tools, Replace the old high- It realized refined, intelligent and unmanned production of the equipment operation conditions are monitored in real time to ensure energy-consuming material distribution based on in the whole process based on that the equipment always runs in the optimal energy consumption state and equipment in the factory production process pull, and promoted enterprises to reduce achieve resource conservation. with green, innovative water consumption by 90%, gas consumption by 30%, and and energy-saving comprehensive energy consumption by 10,000 yuan added value intelligent equipment, by 30%. reduce carbon emissions Case Yonyou Jingzhi helped professional equipment manufacturers transform to zero-carbon from the source, and Petrochemical Industry: In Fujian Petrochemical Group, the green energy service providers realize the green intelligent factory built by Yonyou realized the integration of upgrading and intelligent production and operation, and improved the coordination transformation of the efficiency by 30%. By opening up the production plan, workshop Shuangliang Group is a leading domestic enterprise monitoring, intelligent after-sales, intelligent factory. scheduling, workshop tasks and various production links, the in the field of energy-saving and environmental energy and other functions, helping a customer's scheduling efficiency was increased by 20%, the equipment idle protection equipment. It has core competitiveness air-cooling system to significantly improve energy rate was reduced, and energy consumption was reduced. Through in the high-end manufacturing field of "energy efficiency, and saving 1.38 million yuan in annual the optimization of the device, energy conservation and emission saving, water saving and environmental electricity bills. reduction could be achieved, and electricity could be saved by 7,700 protection", and has ranked among the top 500 Production kWh per day. Chinese enterprises for many years. Based on In addition to Shuangliang Group, at present, the Management Yonyou's Jingzhi industrial internet platform, post-equipment service system has been promoted Metallurgical Industry: In Jiangxi Copper Guiye, Yonyou Shuangliang Group built an "intelligent operation and applied in more than 50 enterprises such as Based on the intelligent Intelligent Factory assisted enterprises to build a centralized and and maintenance platform for energy equipment", Shuangliang, Longgong and Cangnan Appearance, algorithm, the "zero" idle integrated intelligent manufacturing platform, eliminated isolated reconstructed the products and industrial forms helping enterprises in the fields of clean energy, of the entire production islands of information, and realized the comprehensive collection of post-equipment service and operation and combined energy heating and other fields to build process is realized of factory "data does not fall to the ground"; Through human- maintenance service, and provided equipment- B2B2C heating service platform, and achieving through reasonable machine data calculation, intelligent key operations were realized, centered full-life cycle services such as installation intelligent energy operation and maintenance of scheduling, ensuring that and the full-load operation rate of flash furnace and converter services, Internet of Things services, fault diagnosis more than 330,000 heating users and more than each "drop" of energy is blowing time ratio of smelting workshop were significantly and forecasting, and after-sales services based on 400 million square meters of planned heating area. used in production, and improved, and the energy consumption per ton of copper in anode public cloud service models, realizing intelligent reducing energy loss furnace was significantly reduced. caused by equipment shutdown, material transportation, etc. Empowering Energy-saving Manufacturing Through big data analysis and intelligent The goal of "carbon peak and carbon neutrality" points out the path of green development for enterprise development. decision-making, How to effectively save energy, reduce consumption and emission in the production process and realize economical continuously optimize manufacturing has become a "necessary question" related to the survival and development of every manufacturing the production structure enterprise. Yonyou builds a smart factory system based on Jingzhi Industrial Internet Platform, helps enterprises build and management smart factories according to their own pain points, realizes intelligent manufacturing in a new mode, helps enterprises mode, improve energy realize production structure optimization and production benefit promotion through digital and intelligent means, utilization, and reduce and promotes energy consumption reduction, resource reduction and emission reduction, thus realizing economical comprehensive energy As the world's leading cloud service provider, we rely on high-quality cloud manufacturing. consumption of smart service technology capabilities to help customers achieve energy conservation factories. and emission reduction in multiple scenarios, endow thousands of industries with more green genes, and take solid steps to achieve the goals of carbon peak and carbon neutrality together with stakeholders. 36 37 Yonyou Network Technology Co., Ltd. 2022 Sustainability (ESG) Report Yonyou pays close attention to the impact of its own operations on the Promote carbon reduction through electronic and paperless procurement processes; Help companies acquire supplier carbon emission data and promote new material replacement to achieve carbon reduction in the Practicing environment, adheres to the concepts of green, environmental protection and intelligence, and is committed to minimizing the impact of its own operations supply chain trading process. on the environment through measures such as using clean energy, scientifically Green and managing energy consumption, strictly implementing waste disposal, and By the end of 2022, there have been 280,000 enterprises registered on YonBIP procurement cloud supply deepening employees' environmental protection concepts. In 2022, we set up platform, 139 large and medium-sized enterprises rely on YonBIP procurement cloud to achieve 24,000 online bidding, 20,000 participating suppliers, and 43 billion yuan in winning bids. 295 large and Low-carbon a green operation working group under the Group's Sustainable Development (ESG) Committee, which is responsible for formulating the company's carbon medium-sized enterprises relying on procurement cloud have achieved 740,000 online inquiries, 90,000 emission reduction strategy and implementation strategy, ensuring that participating suppliers, and 230.4 billion yuan in winning bids; A total of 20 million yuan of travel costs has Operations key management plans for green operations are implemented, effectively been saved, which is equivalent to 140,000 tons of carbon emissions reduction based on the price of 1.5 promoting the greening of the company's internal operations, and supporting yuan per kilometer of air travel . the achievement of the "carbon peak and carbon neutrality" goal. During the year, we formulated the Carbon Peak Implementation Plan of Yonyou Industrial Park , determined the carbon peak and carbon neutrality Calculated in mid-distance aircraft travel (200-1000 km) timeline, and difined the long-term goals of energy conservation and 6 consumption reduction. YonBIP Yonyou Industrial Park (Beijing) will achieve carbon peak by 2030 (coverage category 1 and Procurement Overall 2) and carbon neutrality by 2060. Cloud Goal Green Yonyou Industrial Park (Beijing) will achieve green power accounting for not less than 50% of YonBIP YonBIP Energy total power consumption no later than 2025, and green power coverage of 100% by 2030. Collaborative Tax Cloud Cloud Yonyou Industrial Park (Beijing) will realize that the proportion of reclaimed water used for green land irrigation will not be less than 50% of the total water consumption no later than Water 2025, and 100% reclaimed water coverage will be achieved no later than 2030. Resources Build a one-stop work portal, combined Yonyou Industrial Park (Beijing) will realize the overall replacement of fuel shuttle buses no with various common office functions, With cloud technology as the core, Green later than 2025, and achieve 100% new energy shuttle bus coverage. reduce multi-system and multi-channel comprehensively reduce traditional financial Commuting access, and greatly improve work efficiency; and tax business consumables, and use the Through a variety of information-based technical advantages of platforms such as collaboration methods, smoothly realize electronic invoice management with large remote and implementation collaboration, capacity and high degree of automation Clean Energy Use reduce business travel, and reduce carbon to help enterprises effectively achieve low- footprint; Relying on comprehensive carbon environmental protection. In 2022, we expanded the use of clean energy such as geothermal and photovoltaic in multiple industrial parks, and the resource management and intelligent robots, company's clean energy utilization capacity was further enhanced. resources are allocated reasonably and waste By the end of 2022, we has provided more is reduced. than 61,500 tax-paying enterprises with tax-related, invoice-related and electronic By the end of 2022, YonBIP Collaborative accounting archiving services, with 190 Ground-source Heat Pump and Energy- Photovoltaic Cloud has served more than 1 million million electronic invoices issued, 240 storage Central Air-conditioning System enterprises and organizations, of which million invoices received, and 23 million the "You Space" collaborative platform electronic accounting vouchers (excluding built based on YonBIP collaborative cloud electronic business documents and Deploy ground-source heat pump units and energy By the end of 2022, a photovoltaic power station has served more than 100,000 large and attachments). According to the calculation storage central air-conditioning systems in Beijing with a total installed capacity of 280 kilowatts and medium-sized customers, 50,000 paid of reducing carbon dioxide by 0.002 kg per and Nanchang Industrial Parks to achieve intelligent an annual power generation capacity of 416,902 enterprise customers, and more than 6 A4 paper, YonBIP Tax Cloud has achieved a operation of air-conditioning systems for cooling kWh has been deployed in Nanchang Industrial million end users. It has been selected as cumulative carbon reduction of 906 tons. and heating, and significantly reduce energy Park, reducing carbon dioxide emissions by about the office product catalog recommended consumption generated by traditional energy 251 tons. by more than 30 provincial and municipal methods. A total of 1,546,855 kWh of electricity was governments, and has become an important saved in 2022, and carbon dioxide emissions were tool to comprehensively promote "paperless" reduced by 934 tons. office and promote resource conservation. 38 39 Yonyou Network Technology Co., Ltd. 2022 Sustainability (ESG) Report Comprehensive Management of Energy Waste Management Consumption We have established an energy-saving work leading group set up by the We strictly abide by the Law of the People's Republic of China on Prevention and Control of Environmental Pollution by Property Management Department as the authority, in conjunction with the Solid Wastes, Administrative Measures of the Prevention and Control of Environmental Pollution by Electronic Wastes, Park Operation Department, property companies, air-conditioning terminal the Environmental Protection Law of the People's Republic of China and other laws and regulations, and standardize the maintenance and protection companies, etc., to be responsible for formulating disposal process of different types of waste. No violations related to waste disposal occurred during the year. and implementing energy-saving and consumption-related plans and measures; We have revised and improved the Energy Conservation Initiative of Yonyou Industrial Park , combined with the daily inspection work carried Case out by the park property company, to detect and stop energy waste in a timely Yonyou Beijing Industrial Park deepened the practice of waste classification manner, and guide all employees to cultivate saving concepts and habits. The company establishes a garbage classification work path covering the main links such as garbage classification container setting, garbage classification propaganda, garbage classification supervision, and centralized treatment at garbage stations: In 2022, we updated and revised the Energy Lighting Water Use Office Consumables 1. Set up four types of garbage classification and treatment facilities for kitchen waste, recyclable Conservation Proposal of waste, hazardous waste and other garbage according to Regulations of Beijing Municipality on the Yonyou Industrial Park and Promoted the In 2022, the Broadly promoted Administration of Domestic Garbage. released it to all employees transformation of construction of paperless offices, 2. The garbage site was equipped with garbage bins of 4 types of garbage, and at the same time, obvious to promote the company's employees to more intuitively traditional lighting municipal reclaimed encouraged guidance signs were set at the garbage collection place. and perceptually understand in Beijing Industrial water connection or employees to avoid 3. Kitchen waste was disposed of by qualified garbage sorting units. The staff was responsible for the carbon emissions Park, and replaced rainwater collection unnecessary printing, publicizing the "Regulations of Beijing Municipality on the Administration of Domestic Garbage" to each generated by business 842 energy-saving system in Beijing used recycled paper, tenant and supervising the implementation of garbage classification. The tenant was responsible for activities, and to practice LED lamps within Industrial Park was set up double- sorting the garbage into garbage storage sites, and the environmental protection staff was responsible for energy conservation and the year, saving completed, and the sided printing, etc., transporting the garbage-to-garbage stations. emission reduction. 40% of the total use of underground and saved a total power consumption water was reduced of 84,435 sheets of compared with the by 59,703 tons in the paper in 2022. original lighting year source Publicity and Implementation of Environmental Protection Concept We actively encourage employees to uphold the concept of environmental protection in the daily office process, practice environmental protection, and build an environment-friendly office culture in which everyone participates and everyone Greenhouse Gas Emissions acts. In 2022, we continued to promote the "zero waste office" campaign, launched the "net zero" initiative for all employees, established an environmental protection cultural wall, carried out tree planting activities in the "Yonyou non- We fully implement the new development concept, take the realization of commercial forest" of the ant forest, and joined hands with each employee to practice low-carbon emission reduction and the "carbon peak and carbon neutrality" goal as a guide, and take a series of care for the environment. positive measures to effectively reduce greenhouse gas emissions. In 2022, we continued to carry out carbon verification work in the company's Beijing Industrial Park, forming a complete and accurate carbon verification report through third-party professional institutions, comprehensively clarifying the carbon emission situation in the park and implementing targeted carbon reduction measures. As early as 2017, the Yonyou Greenhouse Gas Emissions from Yonyou Industrial Park Industrial Park was awarded (Beijing) the "Ecological Community Certification" by the China Ecological City Research Tons of carbon dioxide equivalent Institute, marking that the comprehensive management 2020 24,118.01 of energy consumption and environmental protection of 2021 26,101.12 the Yonyou Industrial Park were highly recognized by the 2022 28,487.20 authoritative institutions. 40 41 Yonyou Network Technology Co., Ltd. 2022 Sustainability (ESG) Report Talent 03 Development Yonyou regards talents as the precious wealth of enterprises, regards talent growth as the core driving force for enterprise development, continuously improves the multi-channel recruitment mechanism, and widely accepts high-quality talents; We establish and constantly improve talent development channels to help employees realize more value; We improve the training mechanism, comprehensively improve the capabilities of employees, deepen employee care, build a harmonious workplace, and work together with every Yonyou employee to work healthy and live a happy life. Improving Recruitment Management 44 Expanding Development Space 45 Deepening the Employee Care 49 42 43 Yonyou Network Technology Co., Ltd. 2022 Sustainability (ESG) Report Yonyou is committed to building the company into a "platform for employees Improving to work happily, achieve careers and share successes", establishing a system Campus Recruitment structure composed of Yonyou Group Recruitment Management Rules and Recruitment Yonyou Group Intern Management Rules , etc., forming a complete talent attraction mechanism, and building a compliant, harmonious and equal Management employment system. We adhere to the concept of diversification in the We broaden the channels of information exchange and comprehensively improve the quality and efficiency of recruitment process and support the career development of female employees campus recruitment through online lectures, live broadcast and other ways. and minority nationality employees. The proportion of female employees has increased for 3 consecutive years, reaching 34.3% in 2022; the number of Held the 2022 Spring Campus Recruitment "Youwei Youth Sharing" and "Interviewer Answering Questions"; minority nationality employees reached 1,246, the highest level in history. Held online lectures such as the 2023 Autumn Campus Recruitment " Q & A Special Session for High Potential We build and continuously improve the company's employer brand Batch", " Seniors Special Session for High Potential Batch", "Q&A Special Session for Advanced Batch"," communication matrix, convey real employer information and employee Senior Special Session for Advanced Batch" and other online lectures have been watched 21,151 times experience to potential employees through various social communication online, and the number of school recruits reached 2,106 in 2022. channels, and help the company improve the quality and efficiency of recruitment. In 2022, there were 425,976 views or broadcasts on our external With the goal of improving the recruitment experience of the school, gave full play to the advantages of recruitment channel accounts, and we recruited a total of 10,200 new "You Space ", optimized and upgraded the process of each link of the school recruitment, relied on cloud employees through diversified recruitment channels, and provided internships technology and platform as the core, and comprehensively improved the efficiency of recruitment links such for 4,792 interns. as signing contracts, internship applications, entry applications, and information collection. Cooperated with more than 10 universities including Tsinghua University, Harbin Institute of Technology, Beijing University of Aeronautics and Astronautics, Dalian University of Technology, etc., actively explored school-enterprise cooperation models, including providing colleges with students' practice training bases, 34.3 % 1,246 establishing joint laboratories, setting up in-school scholarships, etc., and work with colleges to train high- quality talents with strong theoretical and practical abilities. Of female employees Ethnic minority in 2022 employees You Space is an information application developed by the company. It is the unified application entrance to "Yonyou Cloud" ecology. It is 7 a social collaborative office platform specially created for large and medium-sized enterprises and organizations. It provides enterprises with core values such as office collaboration, communication collaboration to improves management and work efficiency. Social Recruitment Continued to increase the introduction of outstanding talents, started the recruitment of key positions in 3 Yonyou promotes employees to continuously improve their core business groups based on the company's talent needs, and introduced more than 200 outstanding talents. Expanding competitiveness and organically integrate their own capabilities with the company's development through the construction of a sound employee Development training system, the establishment of multi-track parallel career development Expanded recruitment channels: channels, and the establishment of a complete talent retention mechanism. organized centralized procurement through online recruitment channels, increased the number of Space headhunting suppliers, and focused on supporting technical and marketing positions. The talent satisfaction rate for key positions reached 100%. Employee Training Optimized the recruitment process: We have established a three-level training system consisting of Yonyou promoted the recruitment management system in all branches of the company, and promoted Learning and Training Center, training posts in business units at headquarters, the online and collaborative process of recruitment; Completed the docking of the recruitment and training posts in front-line institutions with the core of the employee management system and the back-end human resources system, opened up the recruitment and training and cultural system based on the Management Rules for Delivery of induction process, and greatly improved the management efficiency. Yonyou Learning and Training Center, the Management Rules for Knowledge Learning and Examination Certification and Operations Guide for Cultural Comprehensive recruitment service: Teams of Yonyou Group , so as to form a training mechanism with clear promoted the sharing of recruitment evaluation tools, introduced special evaluation tools according hierarchy and clear focus to help employees continuously improve their core to the requirements of job sequence, and improved the quality and efficiency of recruitment; Provided competitiveness. In 2022, Yonyou Learning and Training Center conducted 223 training courses, recruitment interview skills courses and other resources to the interviewers, and training sessions for all kinds of employees, trained 38,048 person-times, and promoted the company's interviewers to enhance "soft power". scored 4.6 points (out of 5 points) in training satisfaction. 44 45 Yonyou Network Technology Co., Ltd. 2022 Sustainability (ESG) Report Upgraded the online culture and public quality micro-courses and examination question bank of new Development Channels employees We earnestly practice the value of "professional struggle", implement the Deepend the training system for new employees, form a combination of "online self-study + integration "multi-channel" development mechanism for employees, establish and "Youwei training + on-the-job learning", a training model that is strongly related to learning and examinations, and improve the employee development system, and provide solid support for youth" New Employee comprehensively improved the quality and efficiency of new employee training. improving the company's professional ability. During the year, 23 training sessions for social recruitment of new employees of the "Youwei Youth" were Training completed, 4 training sessions for fresh graduates, and 1,795 people were trained. The number of online " First acquaintance with Yonyou" students reached 5,780. The all-hand's product learning and examination system optimization were carried out, and the two stages of Built a systematic development mechanism, ensured the accuracy and sustainability of the selection of outstanding talents, and helped the optimization of the company's talent structure and high-quality business BIP Product the first and second half of the year and the Yonyou BIP 3 marketing training were organized and completed. A development. Knowledge Learning and total of 21,420 people completed the study, with a passing rate of 91.1%. Examination Took the position and rank system as an important starting point for the construction of sequence capacity, for All Staff the professional position development system added 34 position sequences, all of which completed the Promoted 100% participation of new grassroots cadres in training, carried out a mechanism that combines preparation of ability development path and job standards, providing more accurate and comprehensive "business scenarios + management scenarios" seminars with "compulsory + selective" course learning, and guidance for the development of employees' professional ability. effectively promoted new cadres to achieve role change and management competence. In 2022, a total of 463 In the rank promotion in 2022, more than 1,200 employees were promoted to "senior", nearly 300 were trainees completed their studies, with a defense rate of 92 percent and a qualified rate of 99 percent. promoted to "expert", and the proportion of personnel above "senior" increased year by year. Professional Development Foster of Dadre Completed the curriculum schedule construction, curriculum case development and serial case collection We continued to optimize the "fast lane" development policy, and allowed employees with outstanding ability based on the "cadre five forces8". and performance to break the rules for promotion. The proportion of fast lane promotion personnel accounts Focused on the necessary skills needs of cadres and employees in key positions, and carried out special for 56% of the overall promotion. training on employee management and business management. During the year, 46 training sessions were Since 2021, we have launched the master's degree program for research and development core engineering conducted with 1,690 participants. management, and organized and funded the company's research and development core personnel to Scene Course Construction: Coordinated with business departments to promote scene course construction apply for the master's degree in engineering management of Tsinghua University and Harbin University through micro-course competitions, extracted business experience and promoted it. of Technology. The company has registered 61 people, participated in the examination of 20 people, and admitted 4 people in 2022. Precise Improvement of Professional Skills: Precision training on digital and intelligent consulting skills, professional operation of major projects, and value creation skills was conducted for professional sequences Established a management/professional dual-channel separation development model, established cadre such as pre-sales, sales, delivery and customer success. A total of 67 training sessions were conducted during rank evaluation rules and evaluation procedures, completed cadre evaluation covering the entire group, and Professional the year, with 3,477 participants. The company's professional sequence employees achieved remarkable gave full play to the guiding role of cadre qualifications in rank management. results in improving their skills. Started cadre archives and information construction, prepared for the construction of a cadre talent portrait Capacity Leadership information system, and promoted the management of cadre talent labeling. Development Partner Empowerment: Carried out training including products, implementation methodology and consulting Development capabilities for professional consulting partners, implementation partners, traditional business partners, Promoted the application of Yonyou cadres' common competency models, developed standard training ecological partners, etc. A total of 19 channel transformation and special empowerment training sessions were courses of competency model, established Yonyou competency model case databases, and promoted their carried out during the year, with 666 participants, effectively promoting the overall organizational capabilities use in various training camps and talent training projects. of partners. In 2022, guided by business objectives, we implemented multiple cadre talent team construction projects, broadened In 2022, we made efforts to enhance the promotion and operation of online talent development and promotion channels, and helped the company's human resources construction accelerate 285 learning relying on the advantages of digital technology, and built the iteration and updating. company's online learning platform "Youle Learning" as the main platform for Cadres, experts lecturers course learning, and promoted the organization of employees of all sequences were trained and levels to participate in learning and examinations according to plans. The Research and Development High-end Business Group Mid-end Business Group company's per capita learning time was up to 130 minutes/month. At the same Center HTTP High Potential "Cadre Reservoir Project" "Banmufangtang" Project" time, we have accelerated the promotion of cadres and experts as lecturers, Talent Development Project and carried out training in teaching skills and experience summary. During the year, a total of 11 authorized lectures were held in 6 high-quality courses, and With the goal of enriching the business Constructed a training mode consisting Combining the requirements of 285 cadre and expert lecturers were trained to teach, tutor and improve the reserve resource pool, implemented of three steps: tapping potential "cadre five forces", the college was business skills of the company's employees nationwide. a three-level progressive training talents, planning development paths, empowered from the three dimensions model from talent selection to vision and providing tools and resource of "empowering individuals", During the year, we cooperated with educational institutions such as Keruihua expansion to job recommendation support. Through a professional "activating teams" and "focusing on 350 and Hundun College to provide external training and joint training programs to ensure sufficient talent reserves in and systematic talent development business". Through the elimination and covering strategy, innovation and other contents for employees to promote business lines. mechanism, improved the thinking replacement mechanism of dynamic Employees participated all-round development of employees. By the end of 2022, we have worked ability, project planning and review management, employees were with nine institutions to jointly develop 12 training programs that involved 350 ability of the talent team, effectively motivated to continue learning, and the employees. solved the problem of insufficient training results were verified by means talent team reserves, and promoted of technical challenges, so as to quickly Learning, execution, synergy, decision-making, insight the accurate achievement of key identify, cultivate and promote talents 8 business tasks. with department-level management capabilities. 46 47 Yonyou Network Technology Co., Ltd. 2022 Sustainability (ESG) Report Talent Retention Yonyou regards employees as the foundation of the company's healthy and Deepening sustainable development, cherishes the physical and mental health of each We further improved the talent retention mechanism, established and employee, and works with employees to create a better life by continuously improved the policies and systems covering employee motivation, the Employee improving the office environment, organizing cultural and sports activities, performance assessment and employee communication, such as Yonyou and providing timely help to employees in need. In 2022, we innovated Network Technology Co., Ltd. Post Performance Assessment System, Yonyou Care the employee welfare system and implemented "My Benefits to Choose", Network Technology Co., Ltd. Stock Option and Restricted Stock Incentive Plan, allowing employees to customize non-salary benefits including annual festival and Innovation Achievement Award. benefits according to their preferences, comprehensively increasing employee participation, and increasing employee identity and sense of belonging. In 2022, in accordance with the company's Incentive Measures for Innovative 21,707 Achievements , we continued to reward teams and employees who have produced innovative achievements in products and services, business models, Optimizing the Workplace Environment Employees were achieved solutions, management, etc., and encouraged employees to better practice the lightweight and agile the company's mission and achieve higher value. During the year, we issued We actively responded to the Healthy China 2030 Planning Outline. In 2022, we assessment of the whole group a reward fund of 4.78 million yuan to 27 teams. In addition, we continued to actively promoted a series of measures covering the improvement of the office promote medium and long-term incentive plans such as equity incentives. A environment, commuting, health and safety of employees, and started bit by total of 387 outstanding employees received equity rewards during the year. bit to protect employees' physical and mental health. 4,988 We constantly improved the employee performance appraisal system, and in combination with the Post Performance Management System of Yonyou Communication feedback Network Technology Co., Ltd., revise and improve the Implementation achieved Rules of Annual Post Performance Management every year, promoted the Provide a Safeguard the continuous detailing and upgrading of assessment scope, indicator setting, Quality Office Health and Safety scoring requirements, etc., to ensure that the target management system and Environment of Employees performance management system are scientific and efficient. In 2022, the lightweight and agile assessment of 21,707 people in the group were realized; Adhered to the selection of Added automatic external 100 % We established and improved the communication mechanism for performance green and environmentally defibrillators (AEDs) in all appraisal results, and achieved a total of 4,988 communication feedback friendly furniture for employees, areas of the park to effectively Organizational coverage and all furniture panels were guarantee the emergency throughout the year, with an organizational coverage rate of 100%. Cadres at all levels and line business directors/project managers of the company provided of high-quality environmental rescue needs of employees. comprehensive feedback on the performance results of employees, and timely protection E1 level. recorded the communication results in the "My Feedback" module of the "You Regularly inspected the Space" continuous performance system, which was delivered to the employees The air quality inspection of safety of all catering service in real time. the newly built office area providers in the park to was carried out within the ensure the safety and health We continued to deepen the construction of the employee communication year, equipped with 36 sets of of food, food containers and 81.5 % platform, relying on the company's internal SNS (social network service) air purifiers, and the central food operators. No abnormal community, You Space and other information applications, promoted all air conditioners in the park events occurred during the Of employee satisfaction was cleaned and disinfected year. The environmental safety employees of the company to put forward their personal views and suggestions in 2022 on the company's business management, technology development and other regularly. and food safety guarantee issues, and irregularly organized online exchange and discussion on the focus work of the restaurant in the issues to solicit employees' opinions. We carried out an employee satisfaction park was highly recognized by survey once a year to fully understand the core concerns of employees and the regulatory authorities. incorporate key recommendations into the optimization process of the company's daily operation. In 2022, the company's employee satisfaction was Facilitate Daily Conducted safety inspection 81.5%, up 6 percentage points from 2021. Employee once a month to ensure the Commuting safety of electricity, gas and fire protection; Carried out fire drills twice a year, normalized Provided shuttle bus services the promotion of safety for employees, and added a production, use of firefighting number of shuttle bus routes equipment, safe use of connecting the company with electricity and other publicity key areas and transportation activities, and built safety hubs to enhance the employee protection barriers. commuting experience. 48 49 Yonyou Network Technology Co., Ltd. 2022 Sustainability (ESG) Report In 2022, we continued to carry out various activities to help employees maintain physical and mental health and achieve happy work and healthy life. In August 2022, we held a small and medium-sized "Love Confession Day with Yonyou's love" Qixi social activity for single employees of the company, with 107 participants We organized 6 emergency rescue training sessions in In 2022, we launched the batches and phases. A total second season of the Friends of 300 employees of the of Users cultural storybook, group and the park service In the Mid-Autumn Festival completed the editing of unit passed the on-site study of 2022, we held the Mid- the Everything Based on and practice. They have Autumn Festival activity of Creating Customer Value completed the assessment "Companion with Heart, cultural storybook, and and successively obtained the Reunion with friendship" further enhanced employees' "Ambulance Skills Certificate" in the park, with 1,000 recognition of the company's issued by the Beijing Red participants development values. Cross. Rescuing Employees in Difficulties We have formulated the Measures for Subsidy of Medical Expenses for Serious Illness and Personal Accident Injuries of Employees and the Management Rules for Employee Assistance Fund to provide timely assistance to employees and their families in need and reduce the burden of employees. In 2022, we provided 584,000 yuan of medical supplement for 288 employees. In 2003, the Company established the Management Rules for Employee Assistance Fund to help employees and their spouses, children and parents to survive special difficult periods in the event of major diseases, personal accidents or major natural disasters. By the end of 2022, the accumulated amount of aid spent by the relief fund had exceeded 7.49 million yuan. In 2022, the company assisted 92 employees and their families through the Employee Assistance Fund. On October 22, 2022, we organized the "Leading Digitization and Intellectualization and Jump Acceleration" autumn MINI 584,000 7,490,000 marathon to promote employees to "step away, practice and happy work". yuan of medical supplement was yuan of accumulated relief provided in 2022 amount 50 51 Yonyou Network Technology Co., Ltd. 2022 Sustainability (ESG) Report Better 04 Society Yonyou insists on releasing innovation vitality, focusing on building a good ecological structure, bringing together large-scale ecological partners, and promoting industrial development and employment security to go hand in hand; with our core technology as the fulcrum, Yonyou develops a new driving force for the development of digitization and intellectualization in the public welfare industry and helps the vigorous development of philanthropy. Yonyou takes the protection of China's commercial cultural heritage as one of the core tasks of fulfilling social responsibilities, and continuously invests funds to support relevant research, improves the construction of staff volunteer team, and promotes the company's public welfare actions to enter a new stage of specialization and systematization. Gathering Ecological Partners 54 Innovating Public Welfare Practice 55 52 53 Yonyou Network Technology Co., Ltd. 2022 Sustainability (ESG) Report In recent years, a new round of scientific and technological revolution and By the end of 2022, the development of Yonyou Ecological Partnership has Gathering industrial changes have accelerated the restructuring of the global economy, achieved fruitful results. Yonyou had 2,468 ISV partners, 1.1 million registered and the service market for Chinese enterprises has entered a new stage of developers in the developer community, 419 professional service partners, Ecological accelerated development. With the digital transformation of enterprises and 72 strategic alliance partners, and more than 3,000 commercial partners; the increasing demand for business innovation, the development in the new YonStore, the Yonyou Cloud Market Mall, had more than 10,000 partners, more Partners era and new pattern has put forward higher requirements for the further than 16,000 products, 28 new BIP native application products; There were 37 formation of a cohesive and win-win new ecosystem in the enterprise service OEM product partners, 85 company-level third-party product and solution market. Yonyou always adheres to the "integrated" ecological strategy, takes partners, and Yonyou carried out BIP ecological cooperation with more than "integrate intelligence and gather strength" as the core concept, and works 1,700 banks and enterprises. with the majority of ecological partners to build a new ecology of enterprise services to help more enterprises move towards high-quality development. Yonyou firmly believes that the success of any business activity depends on its Build and operate the world's leading business innovation platform, Innovating value and contribution to the society. A great enterprise has done something bring together 100,000 ecological partners, 100 million communities, of great significance in its era and created great social value. Relying on the and jointly serve more than 10 million corporate and public Public Welfare Yonyou Public Welfare Foundation established in 2016, we continued to carry organization customers. out organized and professional philanthropy, and have achieved outstanding Practice results in the fields of digital and intelligent empowerment of charitable organizations, commercial heritage protection, etc. In 2022, we launched the Eco-2.0 era, comprehensively built the "Yonyou Ecological Partner Network", upgraded the ecological plan and established a Yonyou Public Welfare Cloud sound ecological support system, and worked with partners to promote the establishment of a global leading aggregated enterprise service ecology. We are committed to promoting the digital and intelligent development of the public welfare industry by relying on our own advantageous products and services. In 2022, we focused on providing public cloud-based financial and project management services for public welfare organizations. On the Yonyou Ecological Partnership System basis of preliminary research and pilot projects, we officially launched the "Yonyou Public Welfare Cloud" project, comprehensively expanded the scope of promotion in the public welfare industry, provided more public welfare Guided by the Yonyou BIP strategy, Yonyou and top partners in the industry make strong institutions with public cloud-based financial and project management alliances, relying on the advantages of Yonyou's cloud service application, combining products (YonSuite) and services for free, and improved the informatization Technology/ with the partner platform and advanced technology to carry out joint innovation, level, transparency and credibility of public welfare institutions, helped the Platform/Solution create joint solutions, and jointly promote the digital and intelligent transformation and public welfare industry open a new era of digitalization and intellectualization. Strategic Partner business innovation of enterprises. (GTP) Professional The Yonyou professional service ecosystem relies on the integration of Yonyou software Services Partners and cloud products and services, provides professional services for customers, and (ISPs) forms a integrated, complementary and win-win joint customer operation service system with Yonyou. Professional service partners include five major categories of professional service partners: consulting, implementation, integrated solutions, project management, and platform technology. Independent ISV partners can carry out product innovation and development based on YonBIP Software Vendors business innovation platform. Yonyou provides ISV partners with complete technology (ISV) and empowerment, rich rights and resources, and helps ISV partners build integrated applications of "business and finance" and "business and management" based on YonBIP, expands the joint marketing between partners and Yonyou, enables customers to achieve operation and management innovation of integration of "business and finance" and "business and management", and enables partners to achieve cost reduction, income increase and sustainable development. Business Partner Yonyou provides VAR partners with a series of services, including organizational system (VAR) construction, market support, sales support, and knowledge empowerment support to help business partners improve market competitiveness and profit margin from multiple dimensions and enhance their brand awareness. 54 55 Yonyou Network Technology Co., Ltd. 2022 Sustainability (ESG) Report By the end of 2022, Yonyou Construction of Staff Volunteer Team has provided public cloud List of funded institutions of "Yonyou Public Welfare Cloud" products and implementation We encourage, advocate and support the company's employees to participate services for 13 public welfare Number Organization in social services and public welfare activities as volunteers, and rely on institutions, of which 10 professional voluntary services to carry forward the company's public welfare institutions have completed 1 Beijing IHEARU Charity Foundation spirit. In 2022, 245 volunteers of our "Walk side by side with friendship" online. In the future, the volunteer service team completed group certification on the "Volunteer 2 China Foundation for Rural Development Public Welfare Cloud project Beijing" platform of the Beijing Volunteer Service Federation, and the will further expand the scope 3 Beijing Hanhong Love Charity Foundation cumulative volunteer service time in 2022 was 1,673 hours. During the year, we of funding according to the cooperated with Alipay to launch the "Yonyou Non-commercial Forest" project, needs of the public welfare 4 New Sunshine Charity Foundation with a total of 6,700 people participating, achieving a total watering volume industry, solve the digital of 3.9 tons and planting 27 Pinus sylvestris. In addition, we actively carried problems for more public 5 Audiology Development Foundation of China out offline public welfare activities involving environmental protection and welfare institutions, and take donation of old clothes. We carried out 6 activities in the year and participated the public welfare digital level 6 Love Save Pneumoconiosis in more than 500 people. to a new level. In addition to providing products and 7 Beijing AngelMom Charity Foundation In the new era, the volunteer service team of "Walk side by side with friendship" implementation services, it will continuously improves the volunteer service system of Yonyou through 8 Lingshan Charity Foundation also provides professional the four dimensions of cultural construction, institutional construction, financial knowledge, financial 9 Shenzhen Ageing Development Foundation organizational construction and project construction. We organizes a series software, information of volunteer service activities around "carbon neutrality" and professional capability training and service 10 Dandangzhe Foundation volunteer service, fully demonstrates the enthusiasm and love of Yonyou, support for public welfare "Beautiful China I am an Actor" and demonstrates our professionalism and responsibility to contribute to the organizations and rural 11 Sichuan Haihui Poverty Alleviation Service Center protection of "blue water, blue sky and pure land" and enables public welfare financial accounting. ——Yonyou Non-commercial digital intelligent innovation. 12 Shanxi Gender Development Solution Forest Project 13 Beijing University of Technology Education Development Foundation Arrangement and Protection of China's Commercial Cultural Heritage Commercial cultural heritage is a precious and non-renewable resource. With the rapid development of the economy and society and the great changes in the commercial cultural ecology, the traditional commercial civilization and its living environment are seriously threatened. With the goal of "inheriting the commercial culture of the Chinese nation and promoting the development of China's commercial civilization", we adhere to the development concept of "innovation, coordination, green, open and sharing", and excavate, sort out, publish and display China's commercial cultural heritage by supporting theoretical research, discipline construction, database construction etc., help to inherit and develop and expand the excellent business culture of the Chinese nation and promote the development of business civilization. In 2022, we continued to carry out the "Great Wall of Commerce" funding project, donating 3.6 million yuan to fund 16 outstanding Chinese commercial cultural heritage research and protection projects at home and abroad. We added a major project category with a funding standard of 600,000 yuan, forming three levels of funding for major projects, key projects and general projects, and guiding scholars at different levels to participate in the arrangement and research of historical materials of commercial cultural heritage and commercial basic heritage from funding amount and achievement value. By the end of 2022, we have successively carried out six "Great Wall of Commerce" funding projects, with a total of 26.625 million yuan donated and 119 projects funded, which have attracted wide attention and praise from all social circles, and won public welfare awards selected by many well-known media such as Southern Weekend, 21st Century Business Herald and Public Welfare Times. In the future, Yonyou will continue to promote the arrangement and protection of China's commercial and cultural heritage with the "Great Wall of Commerce" project as a handle. A total of more than 100 caring colleagues participated in the on-site donation activity of "old clothes with warm heart and go forward together with love", donated 454kg of clothing, about 1,000 pieces of clothing, some shoes and hats and education assistant book for children in mountainous areas. 56 57 Yonyou Network Technology Co., Ltd. 2022 Sustainability (ESG) Report The year 2023 is a key year for the continuation of the 14th Five-Year Plan and our technological advantages and connect with the new mode of production Future the first complete year of construction after the 20th CPC National Congress. and social operation that is platform-based and ecological. With the hard work The new journey of Chinese path to modernization is fully launched. After of Yonyou employees, "making the industry more efficient and the society Prospects years of development, China's digital economy has connected horizontally greener" is accelerating into reality. and vertically, forming a trend of systematic promotion. A series of top- level documents have deployed the development of the digital economy. Up to now, we have gradually incorporated the concept of Environment, The position of the digital economy in the national economy has become Society and Governance (ESG) into all aspects of the company's operation, and more stable. China's digital economy industry will continue to release new promoted the company's sustainable development management into a high- momentum, and present a diversified radiation development trend. The digital quality stage with a matching mechanism. With a view to the future, challenges and intellectual transformation of thousands of industries will burst into more and opportunities coexist on the road of digitalization and intellectualization vigorous vitality. of enterprises. The core concept of "Friends of Users" will, as always, guide us in fulfilling our social responsibilities and practicing sustainable development. We have written continuous innovation into the development gene. Over We will continue to focus on the technology ecology with YonBIP as the core, the past three decades, we have adhered to the development concept of increase investment, work with the majority of stakeholders, and continue to "responsibility, openness, innovation, cooperation and green", committed contribute to the "3060" goal of carbon peak and carbon neutrality and other to promoting the sustainable development strategy of "digital and intelligent sustainable development strategies, writing a new chapter of Chinese path to inclusiveness, security and credibility, integration of ecology and green modernization. development". In the era of digital economy, we continue to give full play to 58 59 Yonyou Network Technology Co., Ltd. 2022 Sustainability (ESG) Report Content Index UN Sustainable Development Goals (SDGs) Index Chapter Content SDGS In the Eventful Years, the Original Intention Remains Unchanged GRI Content Index Sailing Against the Current and Feature Taking Responsibility Yonyou Network Technology Co., Ltd.reported the information cited in this GRI Content Index Story Focusing on Innovation and Statement of use Summary by reference to the GRI standard from January 1, 2022 to December 31, 2022 (some Working Hard content is outside the above time frame). Starting with the End and Keeping Improving The title of GRI 1 used GRI 1: Foundation 2021 Improving Corporate Governance Chapter I. Chapter Content GRI Standards Adhering to Compliance Sound Operation Reporting Scope Governance Reporting Standards About the Report 2-1 2-2 2-3 Data and Information Disclosure How to Get the Report Strengthen Data Security and Privacy Protection Chairman's Message / 2-22 Company Profile Providing Green and Sustainable Organizational Structure Solutions About Yonyou 2-1 2-6 Awards and Recognitions Social Responsibility Certifications Chapter II. In the Eventful Years, the Original Green Intention Remains Unchanged Practice Sailing Against the Current and Practicing green and low-carbon Taking Responsibility operations Feature Story 413-1 417-1 Focusing on Innovation and Working Hard Starting with the End and Keeping Improving Improving Corporate Governance Improving Recruitment Adhering to Compliance Management Chapter I. Operation 3 2-9 2-17 205 414 418 Sound Governance Strengthen Data Security and Privacy Protection Chapter III. Talent Expand Development Space Providing Green and Sustainable Development Chapter II. Solutions 3 201-2 301-1 302-1 302-2 302-4 302-5 303-1 305-5 417-1 Green Practice Practicing Green and Low-carbon Operations Deepen the Employee Care Improving Recruitment Chapter III. Management 3 2-7 2-8 2-20 201-3 401-1 401-2 404-1 404-2 404-3 405-1 409 Talent Development Expanding Development Space Deepening the Employee Care Gather Ecological Partners Chapter IV. Chapter IV. Gathering Ecological Partners 3 413-1 Better Better Society Innovating Public Welfare Practice Society Innovating Public Welfare Future prospects / / Practice 60 61 Yonyou Network Technology Co., Ltd. Yonyou Industrial Park ( Beijing ) , No.68 Beiqing Road, Haidian District, Beijing, China 100094 Web: www.yonyou.com E-mail: ir@yonyou.com Tel: 010-62436838