About the Report

Yonyou Network Technology Co. Ltd. ("Yonyou" "the Group" "the Company" and "we") has been

disclosing its non-financial information annually since 2011 with a total of 13 social responsibility/

sustainability reports issued by 2023.Reporting Scope Data and Information Disclosure

Organizations covered by the Report: The report is primarily about Yonyou Network The data and information disclosed in the Report are derived from:

Technology Co. Ltd. and covers its headquarters industrial parks subsidiaries in China and

abroad its controlling shareholders and actual controllers. * Internal data collection system and relevant statistical statements of the Company

Reporting Period: From January 1 2023 to December 31 2023. Part of the Report is beyond * Outstanding sustainability practices of the Company

the reporting period in order to ensure consistency.* Questionnaires developed to collect qualitative and quantitative information based on the

Release Cycle: This is an annual report. The previous report was released in March 2023. report framework

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.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 indicators in this report please refer

to the "GRI Content Index" and the "SDGs Index" in the "Content Index" section. As a listed How to Get the Report

company on the main board of Shanghai Stock Exchange (hereinafter referred to as "SSE")

(stock code: 600588) this report also refers to the social responsibility disclosure suggestions The Report is released in electronic version it can be downloaded from our website:

of SSE. http://www.yonyou.com/.CONTENTS

Chairman's Message 01 Feature Story 07 Future Purpose 53

Let Leading Practices Become 07

About Yonyou 03 Universally Beneficial Content Index 55

Company Profile 03 GRI Content Index 55

ESG Management Framework 04 UN Sustainable Development Goals 56

Awards and Recognitions 05 (SDGs) Index

Social Responsibility 06

Certifications

132539

Environmental: Social: Governance:

Guarding Lucid Waters Co-Creating a Better Life Creating Long-term Value

and Lush Mountains

Enables the green 15 Creating a New Environment for 27 Drive the Continuous Improvement of 41

transformation of thousands Comprehensive Development of Corporate Governance Effectiveness

of industries Employees Continuously Improving Compliance 44

Building a Green and Low- 22 Building a New Ecosystem and 34 and Operational Systems

Carbon Operating System Mutual Benefit for the Industry Building a Secure Barrier in the Digital 46

Empowering a New Mechanism 36 Economy Era

for Charitable Causes for SocietyChairman's Message About Yonyou Feature Story Environmental Chapter Social Chapter Governance Chapter Future Purpose Content Index

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2023 Sustainability (ESG) Report

Chairman's Message

In 2023 as the wave of technological innovation foundational to our long-term healthy development

surged forward the era of AI's widespread application establishing comprehensive management

based on large models heralded a shift in global IT mechanisms and deepening technological innovation

technology and industry innovation from a cloud- to fortify the security barriers of the digital economy

centric to an AI-centric new phase. This year we era.diligently pursued our corporate mission to "use

creativity and technology to drive business and social People-focused we're painting a "new vision" for

progress" focusing on new patterns of business a better life for the people. As an industry leader

innovation. We iteratively upgraded the "Great Power" and a large listed company we earnestly undertake

YonBIP and launched the first enterprise service large our mission and responsibility in the socioeconomic

model in the industry YonGPT. This development development process. Adhering to a people-centric

enables the creation of new productive forces and approach we strived to make our company a platform

new drivers of growth across a multitude of industries. where "employees work happily achieve success

and share triumphs." We’ve built a multi-level

Empowered by technology we strive to become multi-dimensional employee growth system working

the "core force" driving a comprehensive together to create a better life. Focusing on business

green transformation of economic and social development we continuously attracted and gathered

development. We actively responded to the the powerful efficacy of our ecosystem partners to

national "dual carbon" strategy seamlessly create a thriving business environment. Leveraging

integrating environment social and governance our technological strengths we built and continuously

(ESG) concepts with the innovation and upgrade of improved an ecological model that empowers public

our products and services. Seizing the opportunity welfare organizations with technology constructing a

of our "industry-focused" strategic transformation branded public welfare project system to contribute to

we used innovations like "platform + dual carbon" a better life for the people.to provide precise green solutions to dozens of

industries including steel metallurgy chemicals Unwavering and hopeful for the future we firmly

and manufacturing and civil aviation powerfully believe that our core values of "Friend of Users

enabling a comprehensive green transformation Continuous Innovation and Professional Struggle"

of the economy and society. We also actively built will endow Yonyou with greater confidence and

an environmentally friendly operational system motivation in an increasingly uncertain development

diversifying and deepening green operational environment. We will persistently collaborate

practices and striving to achieve "dual carbon" goals with stakeholders including ecosystem partners

through our actions. employees and customers to practice sustainable

development concepts. We'll fully explore the

By sticking to the right path and innovation we potential of technological innovation ensuring digital

built a solid "stable foundation" for creating intelligence succeeds in more enterprises and public

long-term value. In 2023 we restructured the organizations and continually contribute to the high-

Board's Strategic Committee into the Committee quality development of the economy and society.on Strategy and Sustainable Development further

enhancing our company’s top-level ESG design

and elevating our ESG management level. Under this

new ESG framework we more efficiently explored

best practices in modern corporate governance Wang Wenjing

continually enhancing the performance capabilities of Chairman & CEO

our directors supervisors and senior management Yonyou Network Technology Co. Ltd.ensuring transparent information disclosure and

focusing on key compliance operations. We've always

viewed data security and privacy protection as

01 02Chairman's Message About Yonyou Feature Story Environmental Chapter Social Chapter Governance Chapter Future Purpose Content Index

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2023 Sustainability (ESG) Report

About Yonyou Environmental Social and Governance (ESG) Management Framework

To comprehensively enhance our company's ESG governance level and strengthen our core competitiveness and

sustainable development capabilities in 2023 we reorganized the Board Strategy Committee to the Board Strategy

Company Profile and Sustainable Development Committee which is now fully responsible for formulating and supervising the company's strategy and sustainable development plans.Founded in 1988 Yonyou Network Technology Co. Ltd. (Stock Code: 600588) is a global leading provider of digital We establish a Sustainability Committee under the Group Executive Council chaired by the Group CEO and

and intelligent services software for enterprises and public organizations. Yonyou is continuously committed to consisting of vice presidents from key positions. taking overall responsibility for the Company's environment

using creativity and technology to promote business and social progress. Through the popularization of YonBIP society and governance (ESG) work. Under the Sustainable Development Committee there are subcommittees for

(Yonyou Business Innovation Platform) serving enterprises in their digital and intelligent transformation and Product and Service Innovation Group Green Operations Group Social Harmony Group Corporate Governance

business innovation achieving success for millions of enterprises. Group and Information Disclosure Group. Each group is responsible for advancing the Company's sustainable

development initiatives in their respective areas ensuring the realization of the Company's long-term sustainable

YonBIP (Yonyou Business Innovation Platform) in terms of platform technology and application architecture filed development goals.and industry applications and ecosystem has realized comprehensive breakthrough and innovation achieving

a global leading level. Since its launch it has been selected and applied by a number of industry-leading large

and medium-sized enterprises. It has become the preferred platform for digital intelligence construction for many Yonyou Environmental Social and Governance (ESG) Management Framework

leading enterprises of various sizes in China and around the world bringing unique value to enterprises industries

the economy and society. It has been recognized by Chinese key central media as the "great power" for enterprise * We actively researched and proposed suggestions for the Company's long-term

digital intelligence. strategic development planning;

YonBIP is positioned as a digital intelligence business application-level infrastructure and a co-creation platform * We actively conducted studies and made recommendations on the Company's ESG

for the enterprise service industry. It provides innovative services covering 10 areas of enterprise production Board Strategy strategies and objectives;

operation and management including intelligent finance digital human resources smart supply chain intelligent and Sustainable

procurement intelligent manufacturing digital marketing digital and intelligent research digital projects digital Development * We actively scrutinized the progress of work implementation of ESG strategies and

and intelligent assets collaborative office and so on. It has accumulated nearly 100 leading enterprises' practices Committee objectives listened to the work report of the Company's President's Council and offer

in business and management digital intelligence innovation in various sub-industries enabling enterprises to feedbacks;

advance their digital transformation become digital and intelligent enterprises and move towards high-quality * We examined the Company's annual social responsibility report (ESG report) and

development. provided opinions.Yonyou adheres to the core values of "Friend of Users Continuous Innovation and Professional Struggle" and

create value for customers. Currently Yonyou has over 230 branches 3 major industrial parks 9 innovation centers Executive * Responsible for the specific implementation of ESG matters we reported to the Board

and more than 25000 employees worldwide. In the future Yonyou will collaborate with hundreds of thousands Sustainable Strategy and Sustainable Development Committee on the execution of ESG strategies

of ecological partners and hundreds of millions of community individuals making digital intelligence successful Development and decisions and provided necessary information for the research and suggestions

in more enterprises and public organizations helping enterprises develop with high quality enabling industrial (ESG) Committee on ESG development.upgrading serving the national economic transformation and contributing to the construction of the digital

economy.Board Strategy and Sustainable Development Committee

over 230 nearly 100

Branches worldwide Innovative practices in sub-sector industries Executive Sustainable Development (ESG) Committee

* According to Gartner research yonyou is the only Asia-Pacific manufacturer in the top 10 of the global

ERP SaaS market and the only Chinese enterprise SaaS manufacturer listed in the top 10 of the global Product

Application Platform Software and ranks among the top 10 in the global Financial Management System and Service Green Social Harmony Corporate Information

(FMS) market and Enterprise Asset Management (EAM) market. Innovation Operations Group Governance Disclosure

Group Group Group Group

* According to IDC data yonyou continues to lead the Chinese enterprise cloud service market ranking first

in the market share of Chinese application Platform as a Service APaaS China's enterprise applying SaaS

and it has ranked first in the market share of super-large and large enterprises applying SaaS in China for

many years in a row. It is a major brand of China's enterprise digital and intelligent service and independent

innovation of software localization.Environmental Social Governance

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2023 Sustainability (ESG) Report

Awards and Recognitions Social Responsibility Certifications

Granted By Awards In 2023 Yonyou continued to promote the social responsibility work to be organized professional and systematic

completed the supervision and follow-up review of ISO 14001 (environmental management system) ISO 45001

China Information Technology 2022 Top 100 Software and Information Technology Service (occupational health and safety management system) SA 8000 (social responsibility standard) and other

Industry Federation Competitiveness Enterprises authoritative certifications thereby solidifying our company's social responsibility management system.The 2nd prize of the National final Leader Group of "Industrial Internet +

The 5th China Industrial Internet Product Service solution" Competition

Competition

Most Commercial Value Award

Top 10 of the Global ERP SaaS Market

Top 10 of the Global Application Platform Software Market

Gartner Top 10 of the Global FMS Market

Top 5 of the Global EAM Market

Magic Quadrant for Cloud HCM Suites for 1000+Employee Enterprises

Top 1 of the China aPaaS Market Share

IDC

Top 1 of the China EA SaaS Market Share

Hurun Research Institute Hurun China IIoT Top 30 2023

EDGE AWARDS Annual Best Enterprise Service Brand List

People’s Daily Online 2022 "People's Craftsmanship Product Award"

2022 Energy Annual Conference

and 14th China Energy Enterprise Energy Digital Intelligence Excellent Leading Enterprise Award

Senior Forum

EO Intelligence Top 60 Information and Innovation Manufacturers in China

China Entrepreneur 25 Influential Enterprise Leaders for 2023

China Culture Administration Benchmark units of party building and corporate culture in the new era

Association 1st Prize for Excellent Cases of Cultural Strong Enterprises

Top 100 Enterprises in Digital Trade in 2023

Top 25 Global Digital Technology Trade Innovation Enterprises in 2023

Top 10 of the Global Enterprise Application Software Market

CCID Consultant China PaaS Market Leaders Quadrant SA 8000 Certification

New Generation Information Technology Innovation Products for 2022-2023

Leading Enterprise in New Generation Information Technology for 2022-2023

New Generation Information Technology Leaders for 2022-2023

Dictionary of Data Management Outstanding Product Award of Data Governance

China Information Technology

Industry Federation Famous Software and Information Technology Service Enterprises in 2023

China Media Culture Promotion Excellent Cases of Digital Intelligence Culture Typical Scenarios for Future

Association Benchmark Enterprises in Intelligent Manufacturing in 2023

China Light Industry Information Advanced Demonstration Cases of Digital Transformation in the Consumer

Center Goods Industry in 2023

Kantar Group Top 100 Most Valuable Chinese Brands by Kaidu BrandZ in 2023

China Academy of Information and Outstanding contributors to the Integrated Platform as a Service (iPaaS)

Communications Technology series standards

CHINA ASSOCIATION FOR PUBLIC

COMPANIES Excellent Cases of Digital Transformation of Listed Companies in 2023

2023 China International Big Data

Industry Expo Excellent technological achievements in 2023

Ministry of Industry and

Information Technology Ministry of Industry and Information Technology Industrial Internet

Cybersecurity Administration Security Real Network drill excellent Defense practice Enterprise

Future Turing and Public Network·

Poster News Top 10 AI celebrity enterprises

Koo Gallery 2022 Huawei Cloud Store "Joint Venture Leap Award" ISO 14001 Certification ISO 45001 Certification

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Feature Story: Expanding Horizons and Incremental

Growth Digitalization is No Longer a

Let Leading Practices Become Universally Distant Goal for Enterprises

Beneficial As a global leading enterprise of digital and intelligent software and As of the end of 2023

services Yonyou has always adhered to the practice of 'creating new

value through digitalization as the basis and intelligence' taking the

responsibility of 'Great Power Brand' to constantly exploring its own

potential for technological innovation. Over decades Yonyou focused 3.18

on the actual needs of enterprise digital and intellectual development Million enterprises Yonyou Jingzhi

In this new era and journey comprehensively advancing the construction of a powerful country and the great successively creating cutting-edge products including Yonyou BIP Industrial Internet Platform had

rejuvenation of the nation through Chinese path to modernization is a crucial task. This is an essential path to Yonyou Jingzhi Industrial Internet Platform and Yonyou BIP Intelligent served

shape new competitive advantages and a necessary choice to continuously meet the people's aspirations for a Manufacturing Solutions. Collaborating with numerous enterprises to

better life. Adhering to the philosophy of "making leadership universally beneficial" creating a model for digital and explore the best path for digital and intelligent transformation we drive

intelligent transformation and continuously extending leading practices to various industries and enterprises are the deep application and development of industrial digital intelligence. 1.44

central to accelerating the digital and intelligent transformation process across numerous sectors. This approach is In 2023 Yonyou launched the world's first integrated intelligent

the key to enabling every enterprise to gain diverse capabilities towards new industrialization. Million sets of industrial manufacturing operations management platform (MOM) as the core equipment connected

Yonyou launched the first Enterprise Management Software (ERP) in 1997 and being the first in the industry to engine providing industrial enterprises with an integrated production and

propose the concept of "Digital and Intelligent Transformation" (digitalization + intellectualization) in 2017. Yonyou operations control platform. This platform assists enterprises in achieving

start building and operating the world-leading Business Innovation Platform (BIP) and iterative Yonyou BIP to full element linkage in production and full value chain integration guiding

Yonyou BIP3 in 2022 and fully utilizing artificial intelligence in 2023 with the release of the industry's first enterprise numerous industrial enterprises towards steady high-quality development. 22000

service model YonGPT. Yonyou focuses on the characteristics of the era and the actual needs of enterprises in the By the end of 2023 Yonyou Jingzhi Industrial Internet Platform had Public welfare apps accumulated

economic and social development continuously enhancing the inclusiveness of digital intelligence technology served 3.18 million enterprises connected 1.44 million sets of industrial

through technological innovation helping thousands of enterprises to move steadily forward in the wave of digital equipment accumulated 22000 public welfare apps and 2926 industrial

intelligence. mechanism models and united 6600 ecological partners continuously

maintaining its global leadership position. 2926

Yonyou recognizing the key role of intelligent manufacturing in the Industrial mechanism models

process of new industrialization has built the "Yonyou BIP Intelligent

Manufacturing Solution based on the Industrial Internet" based on

2017 2023 decades of digital practice in the manufacturing sector. This solution over 2900deeply integrates new generation information technology with advanced

Launched the first Iterate Yonyou BIP to production management models assisting enterprises in quickly Industrial models from Yonyou's

Enterprise Management Yonyou BIP3 developing key core capabilities needed for intelligent manufacturing. Jingzhi Industrial Big Data Center

Software (ERP) Additionally addressing pain points in industrial production digitalization

Propose the concept such as significant industrial differences inefficiencies in industrial supply

of "Digital and Intelligent chains and mismatches between on-site management and information

Transformation" and start Release the industry's systems Yonyou's solution including technologies and services like

building and operating the first large enterprise service Industrial Internet Identification Resolution and Intelligent Operation

world-leading Business model Platforms helps enterprises build an intelligent production platform that

1997 Innovation Platform 2022 connects across companies disciplines and systems. It achieves a digital ——YonBIP twin encompassing all elements the entire industrial chain and the entire

value chain driving production operations with industrial big data and

reshaping high-quality enterprise competitiveness through digital and

intelligent innovation. By the end of 2023 Yonyou's Jingzhi Industrial Big

Data Center had aggregated billions of data points from a million industrial

enterprises and developed over 2900 industrial models.

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In July 2023 Yonyou released the industry's first enterprise service model YonGPT which is an important

component of Yonyou BIP it is compatible with the industry's mainstream general-purpose language models. By

providing general capability services field services and industry services YonGPT achieves enterprise intelligence

in four aspects: business operations human-computer interaction knowledge generation and application

generation.YonGPT is centered around "intelligent business operations" "natural human-computer interaction" "smart

knowledge generation" and "semantic application generation" constructing a "large model that better

In July 2023 Yonyou was invited to attend the 2023 Global Digital Economy Conference co-hosted by the People's understands enterprise services." It offers pervasive intelligence and intelligent applications throughout the entire

Government of Beijing Municipality the National Development and Reform Commission the Ministry of Industry value chain and all scenarios deeply integrated into the customer's business forefront.and Information Technology and the Ministry of Commerce. Yonyou exhibited its data intelligence solution based

on "Industrial Big Data + AI". This solution leverages big data technology and the latest generation of AI technology

integrating with the entire industrial lifecycle business scenarios. It unlocks the value of industrial big data assisting

manufacturing enterprises in developing core capabilities like rational production scheduling optimization of

ingredients and quality diagnosis making production simpler quality more stable costs lower and decision- Intelligent Business Operations Natural Human-Computer Interaction

making more scientific. YonGPT with its powerful data analysis and Through its powerful natural language processing

forecasting capabilities offers deep insights and understanding capabilities YonGPT enables

into enterprise operations identifies potential enterprise applications and services to engage in

business risks and opportunities and natural and smooth dialogues with users. It adopts

Focusing on the Forefront Large Models Make provides intelligent solutions. This enhances a human-centric approach to invoke connect and the level of business decision-making and assemble different applications accomplishing

Digital and Intelligent Innovation More Accessible operational efficiency. tasks more naturally and efficiently.Currently artificial intelligence is driving widespread technological transformations and industrial reshaping

worldwide. The generative artificial intelligence based on large models has garnered significant attention in

the industrial sector. Establishing industry-specific large models and accelerating their deep integration with

various industries have become crucial measures for empowering industry optimization and upgrading driving a Smart Knowledge Generation Semantic Application Generation

comprehensive leap in productivity. It also serves as one of the vital drivers for genuinely promoting the widespread YonGPT extracts and integrates knowledge By understanding user needs business

benefits of digital and intelligent technology helping enterprises to develop core technologies in the digital from vast amounts of data and information operations and data characteristics YonGPT

economy era. generating new and valuable knowledge can autonomously generate semantically

Yonyou initiated the training of a large enterprise service model at the beginning of 2023 leveraging its leading content. This includes industry solutions and capable applications significantly enhances

and comprehensive system of enterprise software and service products a customer base spanning millions across expertise sharing helping enterprises and the efficiency of creating personalized

dozens of industries and 35 years of accumulated industry knowledge and experience serving enterprise clients. users fully utilize their knowledge reserves application services for enterprises.Yonyou's artificial intelligence team utilizing a vast amount of business application data along with enterprise and promoting the dissemination and

application scenarios and field expertise has labeled a substantial volume of enterprise service corpus data. This application of knowledge.process has generated an extensive range of training materials for the enterprise service model integrating business

knowledge and field experience into the model ensuring its professionalism practicality and leading edge

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2023 Sustainability (ESG) Report

In November 2023 Sinochem and Yonyou Recruitment Cloud deepened their collaboration integrating intelligent

recruitment based on YonGPT focusing on the "talent discovery" scenario. They delved into the existing talent pool

according to job requirements intelligently recommending highly matched candidates. Additionally leveraging

YonGPT's autonomous learning ability the system optimizes recommendation rules based on the preferences of

recruitment personnel continuously enhancing the precision of job-candidate matching.By the end of 2023 numerous large enterprises including Sinochem XCMG Group HUAYOU COBALT and SZYD

had successively integrated YonGPT. Together with Yonyou they are exploring a new era of digital intelligence

development for enterprises in the digital economy era."Yonyou will continue to iterate and train YonGPT and constantly enrich various enterprise

services based on the large model. We hope to continuously empower our customers' digital

and intelligent construction and operation through innovative products and services making

digital and intelligent success in more enterprises and public organizations in China and

globally."

——Wang Wenjing

YonGPT has innovatively developed dozens of intelligent applications powered by the enterprise service large

model including business insights intelligent order generation supplier risk control dynamic inventory

optimization intelligent talent discovery intelligent recruitment intelligent budget analysis intelligent travel

expense control and code generation. Moreover YonGPT targeting complex industry application scenarios can

also provide more proficient intelligent scene services through fine-tuning of industry models.

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01

Environmental:

Guarding Lucid Waters

and Lush Mountains

Promoting the comprehensive green transformation of economic and

social development is integral to grasping the new development stage

implementing new development concepts building a new development

pattern and driving high-quality development. It is an inevitable choice

for the comprehensive construction of a modern socialist country. In

recent years from the issuance of documents such as the Working

Guidance for Carbon Dioxide Peaking and Carbon Neutrality in Full and

Faithful Implementation of the New Development Philosophy to the

Action Plan for Carbon Peaking Before 2023 provinces nationwide have

been comprehensively formulating and advancing implementation plans.Additionally various departments have successively introduced "dual

carbon" action plans for key fields and industries. With top-level designs

above and implementation paths below China has established the "1+N"

policy system for carbon peaking and neutrality outlining a construction

blueprint for achieving the "dual carbon" goals.As a global leader in enterprise digital intelligence software and services

Yonyou focuses on strategic planning in the "dual carbon" field. We fully

integrate environmental social and governance concepts with innovation

in products and services. Utilizing our rich digital intelligence service

capabilities we continuously explore sustainable solutions that support

the green transformation of various industries. Simultaneously we actively

deepen the construction of an environmentally friendly operational

system and mechanism implementing a series of high-quality practices to

address climate change thereby actively protecting our lucid waters and

lush mountains with practical actions.

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2023 Sustainability (ESG) Report

Enables the green transformation

of thousands of industries

Continuously Improve Top-Level Design

Yonyou focus on significant green development plans including the 14th Five-Year Plan for Industrial Green

Development integrating the concrete requirements for green development with the formulation of the

Company's development strategy. Centering around the decisive role of digital intelligence in promoting the green

transformation across all industries we have established a working mechanism led by the Board of Directors'

Strategic and Sustainable Development Committee. This mechanism involves the Sustainable Development (ESG)

Committee under the Group President responsible for formulating implementation plans and the Sustainable

Development (ESG) Coordination Groups of each business line in charge of executing these plans. This ensures our

sustainable solutions powerfully enable the green transformation of various industries.* We regularly held ESG thematic seminars to analyze and

identify major green development issues highly relevant to

Board Strategy YonBIP's Sustainable development application architecturethe Company's strategic development.Identification and Sustainable

and Decision Development * We actively guided and supervised the research and

Committee formulation of the Company's strategic planning related

to clean technology development with identified green

development issues.* Under the guidance of the Board's Strategy and Sustainable

Development Committee and in line with the cutting-edge

Planning Executive trends in clean technology development we designed and

and Sustainable planned innovative product and service solutions within the

Supervision Development (ESG) "dual carbon" target framework.Committee

* We actively formulated a carbon reduction strategy for the

Company organizing research related to goal setting.* We proactively established specialized coordination groups

such as the Product and Service Innovation Group and

Business Line Green Operations Group. Guided by the strategic plans

Implementation Sustainable and deployments of our decision-makers we developed

and Execution Development and ensured the implementation of these plans aiding in (ESG) Coordination the green transformation of our customers' and ecological

Groups partners' businesses and management. Simultaneously

we promoted the practical application of green operation

measures across the Company.In 2023 we further explored the core role of digital and intelligent technology in achieving intensive energy- In August 2023 Yonyou launched its sustainable development solution – Yonyou ESG Cloud at the 2023 Global

saving and environmentally friendly production and services. Utilizing "platform + dual carbon" and other clean Business Innovation Conference. This solution is characterized by a strong correlation between business finance

technology innovations and applications we built industry-oriented one-stop sustainable development solutions materials and carbon and integrates all these elements is natively integrated with Yonyou BIP and leverages

supporting steady progress in green transformation across all industries. Additionally we explored and established advanced technologies from the BIP such as IoT big data cloud computing blockchain AI and edge computing.a mechanism to identify customers with sustainable development goals offering targeted sustainable solutions This allows businesses and organizations to accurately calculate and manage carbon emissions also provides

to key customers in green transformation including high carbon-emitting enterprises continually contributing to third-party ESG-related organizations with traceable verifiable auditable certifiable and trustworthy data and

solving the challenges and difficulties faced by enterprises in their green transition. processes.

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Iterative Upgrade Implementation Plan

Entering the stage of high-quality development promoting industrial innovation through technological innovation

especially by fostering new industries new models and new dynamics with disruptive and cutting-edge

technologies and developing new quality productivity have become the core themes of the new era. In 2023 we

further explored the crucial role of enterprise digitization transformation and digital business innovation in driving

our own green transformation process. Relying on the largest organizational reform in the Company's history while

collaboratively accelerating digital and intelligent business innovation with customers and partners we precisely

identified the pain points and challenges of the industry's green transformation. Utilizing industry-specific green

development solutions we effectively propelled the sustainable green and low-carbon business models of various

industries into the "fast lane."

* We actively focused on the global energy transition trend of "low-carbon and clean energy" and guided by

Energy the concept of "Green Network Digital Intelligence Driven" we consider the digital transformation of energy enterprises as our core strategy. We have developed the Yonyou BIP solution for the energy industry leveraging

digital intelligence technology to drive the green and low-carbon transformation of energy enterprises.* We actively focused on the key aspect of carbon emission management in civil aviation — jet fuel usage.Relying on Yonyou BIP we have created an "Airline Intelligent Fuel Saving & Carbon Emission Reduction" smart

Aviation data analysis platform for airlines. We provided comprehensive data-driven solutions assisting airlines in

implementing precise carbon emission data collection automatically generating carbon emission monitoring

reports and comprehensively monitoring fuel-saving targets effectively promoting green aviation. In April 2023 we launched a new generation of smart energy solutions tailored to the digital transformation needs

of industries such as coal coal chemical power new energy and oil and gas. With a focus on carbon measurement

control and energy-saving and carbon-reduction requirements in the energy sector we utilized smart technology

* We redefined the technological approach to scrap steel grading decomposing and managing the software system

grading rule models deep learning models image acquisition and hardware network. By utilizing large-scale as the foundation. We seamlessly integrated carbon research commitment taxation measurement footprint and

artificial intelligence models we significantly enhanced the efficiency and quality of scrap steel identification. energy-saving and carbon-reduction utilization into the business system promoting optimization of production

technology and the establishment of a green low-carbon system strongly support the " dual carbon" goals.* At the end of 2023 Yonyou BIP Scrap Steel Intelligent Grading 3 has served more than 40 global steel companies

and scrap steel recycling enterprises including Ansteel Group Jiyuan Iro&Steel Jingye Group Xinyang Vanadium

Titanium Steel Minyuan Steel Group Zongheng Iron and Steel Nanjing Iron&Steel Group Baode Iron and Steel

Steel Xingcheng Special Steal Zhongshu Special Steel Hangzhou Iron&Steel Droup Longteng Special Steel Yaxin Iron and

Metallurgy Steel Sanbao Iron and Steel Tokyo Trading etc. with a cumulative sales of 248 sets a cumulative intelligent grading of 311000 vehicles and 5.65 million tons of scrap steel with an accuracy rate of over 96%. Yonyou BIP has become

the domestic scrap steel intelligent grading system with the highest number of contracts the most intelligent

grading vehicles the highest acceptance quantity and the best industry reputation. While helping companies reduce

procurement costs it has promoted the level of green circular development to a new level.* The "Scrap Steel Intelligent Grading Solution Based on Industrial Internet Platform" has continued to serve more

than 40 steel companies and scrap steel recycling enterprises with a cumulative cost reduction and efficiency

improvement of tens of millions of yuan and has helped reduce carbon dioxide emissions by 9.04 million tons.* We actively focused on the transformation and upgrading of key enterprises and the improvement of

Chemicals and green manufacturing systems. Using "Smart+" as our approach we concentrate on constructing intelligent

Papermaking management operations factories and industrial internet for chemical and paper enterprises. This helps businesses fundamentally achieve energy conservation consumption reduction quality improvement

efficiency enhancement and environmental protection through emissions reduction.* We actively respond to the strategic deployment of building a beautiful China firmly embracing the concept

that "lucid waters and lush mountains are invaluable assets." Leveraging our advanced technological

capabilities we robustly support pollution control enterprises in their quality improvement and upgrades

Environment continuously contributing to the sustained enhancement of ecological and environmental quality.Protection * By the end of 2023 we had formed collaborations with 168 environmental protection enterprises with a total

investment in related technology development reaching 116 million yuan. It is projected that by the end of Achieving full-process perception measurement and insight in the supply chain is a crucial aspect of building a

2024 the revenue generated from collaborations with environmental protection enterprises will have grown by green supply chain and attaining sustainable development in the energy industry. In March 2023 we launched a

18% compared to 2023. digitalized procurement and supply chain solution for the energy sector. This solution offers an integrated digital

approach across four dimensions: intelligent procurement material supermarket supply chain collaboration

and integrated warehousing and distribution. It empowers three core metrics: cost efficiency and reliability. This

1. Scrap steel is a green resource and the only alternative to iron ore for steelmaking making it of great environmental initiative aids businesses in optimizing procurement management costs enhancing supply chain collaborative

value to the steel industry. efficiency and achieving a green and low-carbon transformation in the supply chain system.

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Based on Yonyou BIP Intelligent Fuel Saving & Carbon Reduction Data Analysis Platform Chengdu Airlines has

successfully established a fuel data visualization platform. Leveraging 35 visual data analysis interfaces the

platform handles over 500 million data points resulting in an annual saving of more than 3 million yuan in aviation In February 2023 we collaborated with Minyuan Steel Group to construct the " 5G + ultra-low emission fugitive

fuel costs. emission management control and governance integrated platform". This collaboration aided Minyuan Steel

Group in accomplishing the ultra-low emission transformation and assessment monitoring required by the China

Industrial Association. It was also selected as the fifth batch of "green factories" by the Ministry of Industry and

Information Technology of China.Focusing on enhancing urban wastewater and sewage treatment capabilities we collaborated with Jiangsu

Pengyao Environmental Protection Group to build a digitalized water operation management platform centered on

sewage treatment in 2023. This platform achieves controllable visible perceivable and predictable water station In February 2023 we collaborated in the Jiyuan Iron&Steel Group "5G+ Innovative Application to Assist Energy

data; can effectively addresses long-standing pain points such as multiple sites difficult management high costs Saving and Emission Reduction in the Steel Industry" project and won the first prize in the "Smart Energy Special

low efficiency multiple platforms and scattered data. This initiative significantly boosts the efficiency of urban Competition" of the Ministry of Industry and Information Technology's "Blossom Cup" 5G Application Contest for

sewage treatment for businesses. the fourth season.

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2023 Sustainability (ESG) Report

Furthermore as a global leader in cloud services we continuously deepen the pivotal role of cloud service

technology in aiding energy conservation and consumption reduction committed to implementing the "dual

carbon" goals with our partners. Building a Green and Low-Carbon

Operating System

Steadily Promotion

YonBIP

Procurement Cloud We have long upheld the principles of green environmental protection and intelligence. We continuously explore

green and low-carbon management and operational mechanisms that align with our Company's actual situation

constantly improving the execution and supervision of related objectives. This ensures that our green operation

management plans are effectively implemented steadily advancing the company towards the "dual carbon" goals.In 2023 we invested more than 9 million yuan in environmental protection funds which were used for key tasks

such as optimizing garbage classification and collection upgrading and retrofitting energy-saving equipment and

promoting environmental protection culture achieving good results.YonBIP YonBIP In 2022 under the guidance of the Group's Sustainable Development (ESG) Committee the Company's Green

Collaborative Cloud Tax Cloud Operation Working Group compiled and published the Carbon Peak Implementation Plan of Yonyou Industrial

Park. In 2023 we took active measures and solidly advanced the relevant work according to the established goals

achieving commendable results.Yonyou Industrial Park (Beijing) will achieve carbon peak by 2030 (coverage category 1 and

2) and carbon neutrality by 2060.

Overall Goal

By the end of 2023 there have been 468000 enterprises registered on YonBIP procurement The status of goal

YonBIP cloud supply platform 139 large and medium-sized enterprises rely on YonBIP procurement

Goals 2023 Progress achievement

Procurement cloud to achieve 25000 online bidding 23000 participating suppliers and 50.6 billion yuan

Cloud in winning bids. 708 large and medium-sized enterprises relying on procurement cloud have Yonyou Industrial Park (Beijing) will

In 2023 the park began

achieved 983000 online inquiries 118000 participating suppliers and 827.6 billion yuan in achieve green power accounting using green electricity

winning bids; A total of 50 million yuan of travel costs has been saved. for not less than 50% of total power for the first time totaling 2500 megawatts which In progressGreen consumption no later than 2025 and

Energy green power coverage of 100% by 2030. accounted for 6% of its total electricity usage.By the end of 2023 YonBIP Collaborative Cloud has served more than 2.15 million enterprises In 2023 the park's western

and organizations of which the "You Space" collaborative platform built based on YonBIP Yonyou Industrial Park (Beijing) will and central areas used a

YonBIP collaborative cloud has served more than 10000 large and medium-sized customers 120000 realize that the proportion of reclaimed

Collaborative paid enterprise customers and more than 22.6 million end users. It has been selected as the water used for green land irrigation will

total of 59781 cubic meters

Cloud office product catalog recommended by more than 30 provincial and municipal governments not be less than 50% of the total water

of recycled water. Plans

are underway to extend In progress

and has become an important tool to comprehensively promote "paperless" office and Water consumption no later than 2023 and

promote resource conservation. 100% reclaimed water coverage will be

recycled water usage to the

achieved no later than 2024. eastern area of the park in 2024.In 2023 all shuttle buses

Yonyou Industrial Park (Beijing) will were replaced by electric

By the end of 2023 we have provided more than 82000 tax-paying enterprises with tax-related realize the overall replacement of fuel vehicles and routes were

YonBIP invoice-related and electronic accounting archiving services with 309 million electronic shuttle buses no later than 2025 and adjusted in real-time based

Tax Cloud invoices issued 214 million invoices received and 9 million electronic accounting vouchers CompletedGreen achieve 100% new energy shuttle bus on passenger occupancy

has achieved a cumulative carbon reduction of 532 tons. Commuting coverage. rates to minimize resource

wastage.

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2023 Sustainability (ESG) Report

Optimized Management

We integrated the concepts of green environmental and intelligent operation throughout the construction and

operational processes of our three major industrial parks in Beijing Nanchang and Sanya. This approach involves

fully protecting the native ecological environment while employing new energy-saving and environmentally

friendly technologies and materials such as ground source heat pumps energy storage rainwater harvesting

energy-saving masonry blocks and solar landscape lighting. These initiatives promote the application of a circular

economy in the parks significantly reducing waste emissions and effectively enhancing the level of green and low-

carbon operation and management. In 2023 aligning with the natural environmental features of the industrial

park's location and its actual operational requirements we specifically implemented several green operation

projects receiving widespread acclaim.Industrial Park Main Tasks Achievement

Energy System Renovation: We invested 7.28 * Following the renovation the park's

million yuan to implement the first phase of energy supply system showed significant

the ground source heat pump and ice storage energy-saving effects achieving physical In 2023 we focused on enhancing employee experience and reducing operational carbon footprint fully

central air conditioning renovation project. energy savings of 1.078 million kWh with a implementing the BIP Expense Control and Business Travel Platform. Throughout the year a total of 227000

This involved replacing the heat pump units comprehensive energy-saving percentage reimbursement documents were automatically and intelligently generated accounting for 55.6% of all

and circulating water pumps at the energy of 21.66%. During the 2022-2023 heating reimbursement documents. This saved 49000 hours of reporting time. Concurrently it conserved 668000 sheets

station upgrading the energy storage system season and the 2023 cooling season of printing paper equivalent to a reduction of 1.35 tons in carbon emissions. The digital employee independently

to water storage and refurbishing the interior compared to the conventional water- audited 133000 documents (unmanned mode) accounting for 32.5% of the total documents. Intelligent audit

Yonyou of the cooling tower along with upgrading the cooled unit cooling method of gas boilers checks were executed on 10.56 million checkpoints (5.21 million in business management and 5.35 million in

Industrial Park electrical automation equipment. the energy supply system reduced carbon invoice compliance) saving 41000 hours in auditing time.

(Beijing) dioxide emissions by 2087.6 tons.Lighting and Energy Consumption

Management Optimization: We actively * The lighting renovation and energy

continued to advance the transformation of consumption management optimization

traditional lighting replacing 500 energy- achieved more than a 30% energy saving

saving LED lights within the year; we also compared to the previous year. Strengthening Concept

replaced 15 high-energy-consuming water

heaters with energy-efficient ones and We fully implement the new development concept actively advocating and encouraging our employees to apply

descaled the water heaters quarterly to green and environmentally friendly principles in their work and daily lives. In 2023 we organized our employees

enhance their efficiency. to participate in activities such as tree planting festivals and eco-friendly hiking working together with every staff

Intelligent Operation for Heating and * In 2023 this system achieved an electricity member to jointly protect our beautiful home.Cooling: Enhanced efficiency in the use saving of 567192 kWh reducing carbon

of ground source heat pumps and energy dioxide emissions by 372.6 tons.storage central air conditioning significantly

reducing energy consumption generated by * In 2023 the photovoltaic power generation

traditional energy methods. reached 419736 kWh reducing carbon dioxide

emissions by approximately 253.53 tons.Photovoltaic Power Generation:

Yonyou

Industrial Park Strengthened the capacity of the photovoltaic

* In recent years related projects have

(Nanchang) power station in the park steadily increasing

successively been recognized as Jiangxi

the proportion of clean energy. Province's Renewable Energy Application

Demonstration Project Green Building

Design Identification Two-Star Building

Jiangxi Province Quality Construction

Project Award and the Ministry of Housing

and Urban-Rural Development's Green

Construction Science and Technology

Demonstration Project.Energy Substitution and Consumption * The project has been awarded the

Yonyou Reduction: The park adopted a solar water Hainan Province Green Building Design

Industrial Park heating system and installed external shading Identification Two-Star Building.(Sanya) devices on building facades to reduce energy In March June and October of 2023 we organized online and offline environmental protection activities

consumption in buildings. with over 3000 employee participations.

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02

Social:

Co-Creating a Better

Life

Opinions of the Central Committee of the Communist Party of China

and the State Council on Promoting the Development and Growth of the

Private Economy state: The private economy is a vital force in advancing

Chinese path to modernization and a significant foundation for high-

quality development. It is an important power in fully building a modern

socialist country and achieving the second Centenary Goal. Promoting

stable employment driving industrial chain development focusing on

common prosperity and actively fulfilling social responsibilities are

the inherent duties of private enterprises especially large listed private

enterprises in aiding high-quality development and helping the people

better share the fruits of economic growth.Yonyou is keenly aware of its mission and responsibility in the process

of high-quality economic and social development. Centering on people

we implement multiple measures and dimensions to create talent

development channels comprehensively enhancing employee capabilities

and helping them realize greater value. We continue to cultivate industry

ecosystems working together with a broad range of stakeholders to

build a prosperous business environment. Relying on our advantageous

technological strength we empower social welfare with practical actions

contributing to the digital transformation of public welfare undertakings.By deepening our focus on social responsibility including the protection

of commercial cultural heritage and employee volunteer activities we

deeply commit to our corporate social responsibilities in the new era. With

the sense of responsibility of a "Great Power Brand" we contribute to the

people's pursuit of a better life.

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Creating a New Environment for Campus Recruitment

Comprehensive Development of In 2023 we continued our campus recruitment efforts utilizing both online and offline methods for promoting to students contributing to broaden employment channels for fresh graduates.Employees We held the 2023 Spring Campus Recruitment "Youwei Youth Sharing" and "Interviewer Answering Questions"; held online lectures such as the 2024 Autumn Campus Recruitment "Q & A Special Session for

High Potential Batch" " Seniors Special Session for High Potential Batch" "Q&A Special Session for Advanced

Batch" "Senior Special Session for Advanced Batch" and other online lectures have been watched 36011

times online and the number of school recruits reached 871 in 2023.Talent Attraction In 2023 we actively promoted school-enterprise cooperation holding our inaugural school-enterprise

exchange meeting. This aimed to advance the integration of industry and education collectively exploring

Yonyou strictly complies with laws and regulations such as the Labor Law of In 2023 talent cultivation and school-enterprise cooperation in the context of digital and intelligent transformation.the People's Republic of China and the Labor Contract Law of the People's Nearly a hundred teachers from Project 211 key universities and colleges attended the meeting including

Republic of China continuously advancing Yonyou's vision of a platform several secretaries and deans.where "employees work happily achieve career success and share in

success" we established a system structure composed of Yonyou Group 34.0 % We actively explored various modes of school-enterprise cooperation providing colleges with students'

Recruitment Management Rules and Yonyou Group Intern Management Female employees practice training bases establishing joint laboratories setting up in-school scholarships and conducting

Rules etc. forming a complete talent attraction mechanism and building a specialized lectures at universities etc. These efforts aim to help universities cultivate high-quality talents

compliant harmonious and equal employment system. with strong theoretical and practical abilities.We are committed to treating all candidates fairly and justly with no 1192 In 2023 we established in-depth school-enterprise cooperation with nearly 30 universities including

discrimination based on race skin color religion gender age disability Tsinghua University Harbin Institute of Technology Beijing University of Aeronautics and Astronautics Employees from minority groups

marital status nationality ethnicity or any other legally protected status. Beijing University of Posts and Telecommunications Renmin University of China Central University of

We firmly oppose and prohibit any form of child labor and forced labor. Finance and Economics Northeastern University Dalian University of Technology Dalian Maritime University

Upholding equality and diversity in our recruitment process we support the 5719 Hebei University of Technology and Taiyuan University of Technology etc. supports the training and career development of female and minority employees this approach helps employment of university talents.attract outstanding talents from various backgrounds and skills thus building New employees recruited through

a competitive team. In 2023 female employees accounting for 34.0% of the diversified recruitment channels

total workforce and 1192 employees from minority groups.We build and continuously improve the Company's employer brand

communication matrix convey real employer information and employee

experience to potential employees through various social communication

channels. We engage in diverse forms of cooperation with universities

promoting our employer brand to fresh graduates and attracting outstanding

young talents and help the Company improve the quality and efficiency of

recruitment. In 2023 we recruited a total of 5719 new employees through

diversified recruitment channels and provided internships for 5132 interns.Social Recruitment

Based on business development and team requirements we formulate clear talent acquisition plans

regularly assess and adjust our talent acquisition strategies to ensure the process is scientific and efficient.Diverse recruitment channels: We carried out multi-channel recruitment through job websites social

media talent markets and more continuously attracting excellent talent to enhance and expand the

Company's talent pool.Diversity in talent backgrounds: We extensively recruited employees with diverse backgrounds

cultures and skills to increase the team's diversity and innovativeness; we deeply implemented the

introduction of overseas talents providing strong support for the Company's globalization business.Interviewer empowerment certification: We established competency standards for interviewers

standardized the interview process and criteria and comprehensively improved the professionalism and

expertise of interviewers. It became mandatory for interviewers to be certified for their role. During the

year a total of 2478 people obtained interviewer certification. Yonyou 2023 School-Enterprise Exchange Meeting

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Development Channels

Talent Development

We earnestly practice the value of "professional struggle" implement the "multi-channel" development mechanism

for employees to achieve separate development pathways for the management line (M series) and the professional

Staff Training line (P series). In 2023 we continued to optimize the “fast lane” development policy offering broader

development opportunities for talented individuals. Simultaneously we introduced several new job series in our

In 2023 we continued to optimize our employee development policies In 2023 professional development system clearly defining the developmental path and job requirements for each series

constantly strengthening the institutional foundation of Yonyou's talent providing more accurate and comprehensive guidance for the development of employees' professional ability.system. During the year we developed and published the Yonyou BIP Product

Management Rules for Knowledge Learning and Examination Certification to

ensure that employees master the essential knowledge and skills of Yonyou 174 Leadership Development

BIP products according to business needs advancing the implementation Training sessions conducted by

of the Yonyou BIP strategy. Additionally Yonyou Group Professional Yonyou Learning and Training

Development and Management System was updated to include requirements Center for all kinds of employees Cadre Standards Construction Cadre Talent Inventory Cadre Rank Evaluation

for employees' product learning examination and certification. We established the During the annual In 2023 we conducted an

cadre 12358 system and organizational review and optimization of the cadre

We have established a three-level training system consisting of Yonyou 7856 continuously promoted talent inventory project we rank evaluation standards Learning and Training Center training posts in business units at headquarters the implementation of conducted a talent inventory and workflow processes.and training posts in front-line institutions to form a training mechanism Person-times trained cadre 12358 system on the for key positions across the Throughout the year

with clear hierarchy and clear focus to help employees continuously improve ground. entire group recorded the we completed the 2023

their core competitiveness. In 2023 Yonyou Learning and Training Center historical evaluations of annual group cadre rank

conducted 174 training sessions for all kinds of employees trained 7856 cadres in archives and created evaluation.person-times and scored 4.7 points (out of 5 points) in training satisfaction. profiles of cadre talents."Youwei * We developed and launched the New Employee Training System V1.0 promoting the

Youth" New implementation of the "online self-learning + integrated training + on-the-job learning"

Employee model for new employees across various organizations aims to achieve comprehensive

Training enhancement in cultural integration strategic consensus and job competency.BIP Product * The all-hand's product learning and examination system optimization were carried out and

Knowledge

Learning and we applied the certification results in professional job reviews cadre appointments and

Examination the regularization of new employees. In 2023 a total of 20787 employees completed their

for All Staff learning with an examination pass rate of 88.17% and 20361 people received certification.* Successfully conducted nine phases of the new grassroots cadre initiation program covering

six organizations and subsidiaries.* We conducted cadre training and empowerment evaluating their progress through

Foster of performance reviews and facilitated newly appointed grassroots cadres to achieve role

Cadre transformation competency in management abilities and fulfillment of business objectives.* Conducted talent acceleration boot camps covering hundreds of outstanding grassroots

cadres from various business units and subsidiaries combining selection and training and

identifying top talents for group-level reporting at the conclusion of the program.* Learning Map Construction: Customized learning maps were created for different professional Professional Development Job Rotation Development

sequences. Throughout the year we completed the development of learning maps for R&D We initiated the Group's Outstanding Talent We actively promote cross-functional and

sales implementation and pre-sales sequences organizing a total of 168 learning plans. Program to discover identify and cultivate high- cross-organizational job rotations encouraging

Professional * Course System Development: We advanced the construction of courses in areas such as potential talents. By inventorying the talent pool employees from functions like marketing

Capacity intelligent accounting and digital intelligence human resources effectively promoting the we produced talent profiles recommended research and development and services to rotate

Training professional capacity building of functional departments. matching talents and conducted intensive among different business units enhancing their

* AI Training: We developed the AI Empowering Office Efficiency series of micro-courses to help training. We selected key talents at both the group global perspective and cultivates versatile talents.employees enhance their understanding and application of artificial intelligence effectively and BG/BU levels and designed subsequent

aiding in the improvement of their work quality and efficiency. development plans for these key talents.

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Talent Retention

Employee Care

We established a scientifically effective incentive system to fully unleash the

potential for employee growth. In 2023 we revised and improved the Post 5.2 Optimizing the Workplace Environment

Performance Management System of Yonyou Network Technology Co. Ltd. Million yuan reward fund was

and the 2023 Implementation Rules of Annual Post Performance Management. issued to 23 teams We are committed to creating a safe comfortable and inclusive workplace environment to ensure the physical

We continually refined and upgraded the target process management and and mental health and work efficiency of our employees. In 2023 we enhanced employees' work experience in

assessment evaluation process ensuring a scientific and efficient target all aspects including a green and environmentally friendly working environment a convenient and comfortable

management system and performance management system. 2615 commuting experience and a healthy and safe workplace life.In 2023 in accordance with the Company's Incentive Measures for Innovative Outstanding employees received

Achievements we continued to reward teams and employees who have equity rewards during the year Provide a Quality Office Environment Facilitate Daily Employee Commuting

produced innovative achievements in products and services business

models solutions management etc. During the year we issued a reward * We provided a safe working environment for * Provided shuttle bus services with 3 shuttle bus

fund of 5.2 million yuan to 23 teams. In addition we continued to promote 22000 our employees and adhered to the selection routes connecting key areas and transport hubs medium and long-term incentive plans such as equity incentives. A total of of green and environmentally friendly furniture as well as 11 city rail feeder buses to enhance

2615 outstanding employees received equity rewards during the year. People underwent lightweight for employees and all furniture panels were of the employee commuting experience.

and agile assessments across the high-quality environmental protection E1 level.We actively implemented lightweight and agile assessments for over 22000 group

people across the group and continuously promoted the implementation of * We conduct safety and quality inspection

a performance assessment result communication and feedback mechanism for new office areas and regularly clean and

in 2023. Throughout the year we achieved 4181 instances of communication disinfect the central air conditioning systems.feedback covering 100% of the organization playing a significant role in 4181

promoting employee goal achievement personal growth and development

and organizational goal accomplishment. Cadres at all levels and line business Instances of communication

directors/project managers of the Company provided comprehensive feedback Safeguard the Health and Safety of Employees

feedback on the performance results of employees and timely recorded the

communication results in the "My Feedback" module of the "You Space" * Added 4 automatic external defibrillators (AEDs) in all areas of the park to effectively guarantee the emergency

continuous performance system which was delivered to the employees in rescue needs of employees.real time.* Conducted safety inspection once a month to ensure the safety of electricity gas and fire protection and

increased frequency during major festivals or extended holidays.Employee Communication * Carried out fire drills twice a year normalized the promotion of safety production use of firefighting equipment safe use of electricity and other publicity activities and built safety protection barriers.We fully respect and guarantee employees' rights to be informed 3 * Regularly inspected the safety of all catering service providers in the park the environmental safety and food participate express and supervise in management affairs continuously safety guarantee work of the restaurant in the park was highly recognized by the regulatory authorities.improve the trade union organization and the democratic management Sessions of the group-level

system based primarily on the employees' representative assembly cultural program "CEO Meetup"

and regularly convene these assemblies. We actively listen to employee were held

opinions and establish efficient and transparent communication channels.Relying on the Company's internal SNS (Social Networking Service)

community and You Space and other information applications we Deepening the Employee Care

encourage all employees to express their views and suggestions on issues 1081 In 2023 we continued to carry out various activities offer more fringe benefits to help employees maintain physical

related to company management and technological development fully Attendees on-site and mental health and achieve happy work and healthy life.understand employees' core concerns and incorporate key suggestions

into the optimization of the Company's daily operations. Employee Benefits Innovation

In 2023 focusing on our annual strategic theme we held three sessions of 813

the group-level cultural program "CEO Meetup". The Group CEO engaged Questions wew collected from Adopting the concept of "My Benefits My Choice" employees are free to choose

closely with employees having open and sincere dialogues about strategy employees Customized Benefits their customized benefits based on their preferences during festive seasons

business culture and personal insights. The events were attended by 1081 significantly increasing their participation and satisfaction.individuals on-site with over 35000 participants online. We collected 813

questions from employees and answered 65 of them during the sessions. To alleviate occupational health issues caused by prolonged sitting among

Beyond addressing inquiries on-site we continued to actively resolve Year-Round Traditional employees we provide irregular monthly eye care and traditional Chinese

issues related to system process optimization business resource support Chinese Medicine medicine treatments for shoulder and neck issues. This includes prevention and

and office equipment upgrades effectively creating value for both the Treatments massage therapy for common ailments.organization and its employees.

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Building a New Ecosystem and

Mutual Benefit for the Industry

In 2023 we comprehensively upgraded our ecosystem strategy focusing on "Deep Industry Cultivation and Large-

Scale Development." We deepened industry-oriented operations and strengthened cooperation with various types of

ecological partners such as Independent Software Vendors (ISVs) Technology/Platform/Solution Strategic Partners

(GTPs) Professional Service Partners (ISPs) and Value-Added Resellers (VARs). We continued to build a closely

collaborative Yonyou ecosystem partner network jointly creating industry-integrated joint solutions and domain

application services bringing more professional and large-scale digital intelligence services to various industries. By

the end of 2023 the Company had a total of 3305 registered ISV partners (including Changjie Tong) with ISV ecosystem

cooperation in industry and scale accelerating. The total number of ecological solutions reached 302. Products

developed based on the YonBuilder low-code platform reached a total of 70. With 202 selected fusion partners we

nurtured 3 partners with revenues of 20 million each more than 10 partners with 10 million each and over 20 partners

with 5 million each becoming the fastest-growing enterprise digital intelligence ISV ecosystem in China.In 2023 we completed a 130000- During the Mid-Autumn Festival of 2023 we hosted the "Moon Over

word book titled Professional the Sea More Complete with You" event in the park aimed at fostering

Endeavor which narrates the friendship and unity among employees and together experiencing the

stories of 35 representative warmth and joy of the Mid-Autumn Festival. 3305 302 202

Yonyou employees it further Registered ISV partners Ecological solutions Selected fusion partners

enhances Yonyou members' (including Chanjet)

identification with the Company's

development values.

3 more than 10 over 20

Partners with a scale of 20 million Partners with a scale of 10 million Partners with a scale of 5 million

Case Yonyou Hosts ISV Ecological Forum Seeking the Development of a Digital and Intelligent Ecology

In August 2023 Yonyou hosted the "Deepening Industry Digitization Connecting to Drive Growth" ISV Ecological

Forum at the National Convention and Exhibition Center in Shanghai. Leaders and partner representatives

from Cattle and Cow Club Yonyou Industrial Investment iUAP Platform Customer Technical Solutions and

Empowerment Developer Ecology and ISV Ecology delved deeply into the development trends of the SaaS

ecosystem comprehensively interpreted the digitalization ecosystem pattern growth space and Yonyou's

comprehensive empowerment system for ISV partners in terms of technology policies and investments. They

openly shared valuable practical experiences of partners collaborating with Yonyou to assist customers in digital

transformation witnessing the flourishing development of Yonyou's ISV ecosystem together with hundreds of

partners present at the forum.In October 2023 the Company organized the "Rescue

Single Dogs and Cats" event aimed at caring for

single employees and encouraging them to find

partners and step towards happiness. This event was

jointly participated in by single men and women from

universities hospitals and institutions in Haidian In 2023 the Yonyou Company Club organized

District in collaboration with Yonyou. We conducted shuttlecock group badminton and basketball

various interactive games at the event to promote leagues with a total of 300 people participating in the

interaction deepen understanding and break the ice. competitions greatly enriched the employees' leisure time.

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Case Yonyou Collaborates with ISV Ecological Partners to Empower the Intelligent Transformation of the Food Processing Industry Empowering a New Mechanism for

Yonyou in collaboration with ISV ecological partner Weisai Technology Charitable Causes for Society

focuses on the core business needs of Beijing Ershang Group a leading

enterprise in the food processing industry. Leveraging the native development

of the Yonyou YonBuilder platform and deep integration with the Yonyou BIP Under the overall management of the Yonyou Foundation we have

platform they swiftly achieved enterprise-wide data collection transmission constructed three major public welfare brands: "Yonyou Public Welfare 6.757

and sharing within the factory by connecting production line equipment Cloud" project aimed at promoting the intelligent development of the

materials personnel and systems. Simultaneously they provided real-time Million yuan in charitable public welfare industry the "Great Wall of Commerce" funding project

monitoring statistics and analysis of key indicators at various production contributionsdedicated to advancing the protection of Chinese business cultural

stages offering data services for continuous improvement and management heritage and the employee volunteer service team "Walk side by side with

decision-making to the enterprise. This effectively addressed longstanding friendship." These brands serve as the core of our public welfare system

industry pain points in the food processing sector such as challenges in covering various societal business and internal spheres. In 2023 we 3025.5

data collection during production processes coarse granularity of data further refined institutional documents such as the Yonyou Foundation Hours for volunteer service

collection nodes and inadequacies in supply chain inventory management Volunteer Management Measures the Companionship in Love Volunteer

functionalities for on-site fine management. This solution has been effectively Service Team Charter and the Companionship in Love Volunteer Incentive

implemented in over thirty factories under Beijing Ershang Group establishing Mechanism strengthening the organization of employee volunteer

a standardized management system and achieving the digital transformation services and cultural development. During the year we conducted two

and innovative digital business in the food processing industry. sessions of social responsibility training that covered all employees with

a total charitable contribution of 6.757 million yuan. Additionally 217

volunteers cumulatively contributed 3025.5 hours of service.Case Yonyou Leads the Establishment of the Pharmaceutical Industry Ecological Alliance Deepening Digitization in the Healthcare Sector Yonyou Public Welfare Cloud

Yonyou actively collaborates with multiple ISV ecological partners to develop innovative products through Yonyou Public Welfare Cloud Project offers public welfare organizations

the YonBIP platform enhancing solutions for various sub-sectors such as pharmaceutical manufacturing free professional efficient and practical integrated products and services

pharmaceutical distribution and medical devices. This initiative rapidly develops products rich in industry for finance and project management. In 2023 we released the Digital

characteristics aiding agile project delivery for clients. In April 2023 Yonyou hosted the "In-depth Pharma Intelligence Solutions and Case Studies for the Public Welfare Industry

Ecological Convergence" Ecological Innovation Forum. Zhou Jun Assistant General Manager of Yonyou's continuing to increase our investments and serving more public welfare

Pharmaceutical and Pharmaceutical Distribution Industry Division shared insights on Yonyou's Pharmaceutical organizations. During the year we provided products and services to 48

Industry Ecological Strategy showcasing Yonyou's comprehensive business layout ecological circle construction public welfare organizations. Yonyou Public Welfare Cloud Project was

and achievements in the pharmaceutical sector. During the forum Yonyou spearheaded the formation of the selected as part of the China Computer Federation (CCF) Technology

Pharmaceutical Industry Ecological Alliance. Yonyou will collaborate with ecological partners to construct scenario- Public Welfare Case Collection 2023 Annual Outstanding Cases.based solutions for enterprises vigorously promoting specialized construction and digital transformation in the

pharmaceutical industry.

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List of newly signed public welfare organizations in 2023 Arrangement and Protection

Number Organization Number Organization of China's Commercial Cultural Heritage

1 Beijing Antai Charity Foundation 26 Ulanqab Public Welfare Promotion

Association In July 2017 we officially launched the "Great Wall of Commerce" project aimed at

2 The Open University of China Education excavating protecting organizing researching and showcasing China's commercial 29.905

Foundation （Beijing） 27 Xi'an Guangyuan Education Support cultural heritage through supporting theoretical research historical data collation Million yuan had been

Charity Centre and database construction. After seven years of development the " Great Wall of cumulatively donated to the

3 Hengshan Foundation Commerce" project has become a representative brand in public welfare initiatives "Great Wall of Commerce" project

28 Yiyang Ant Social Work Service Center exerting significant influence in the academic community and introducing new by the end of 2023

4 Evergreen Center for Sustainable perspectives and methods to China's public welfare sector.

Development 29 Yile Social Work Service Center Yunlong In July 2023 we announced the seventh "Great Wall of Commerce" funding project

5 Beijing Yunju Temple Charitable Foundation County donating 3 million yuan to support 15 outstanding projects focused on commercial 136

30 technology and data heritage received widespread acclaim and attention from Projects had been supported6 Beijing All in One Foundation Zhejiang Foundation of Nanhu School Affiliated To Beijing Normal University various social sectors. Numerous renowned academic public accounts including those focusing on quantitative historical research Chinese economic history and

7 Chengdu Wuhou Community Development 31 Zhejiang Yuhua Public Welfare of Seniors industrial history have published related information. The project received coverage Foundation

Development Center from several well-known media outlets such as Guangming Net Phoenix Net and

Public Welfare Times. By the end of 2023 the " Great Wall of Commerce" project had

8 Enshi Volunteer Association

32 Wanzhou District Deli Social Work Service been cumulatively donated 29.905 million yuan supporting 136 projects.

9 Fujian Education Aid Association Center Chongqing

2023 "Great Wall of Commerce" new funding projects (part)

10 One Heart Foundation of FuJian Province 33 DNVa Foundation Number Project Title Responsible Institution

High-Resolution Reconstruction and Information

11 Gansu QingSuo Philanthropy Development 34 Beijing Reteng Foundation 1 Accessibility Analysis of Modern China Commercial Institute of Chinese Historical Geography

Center Information Networks (1903-1942) Fudan University

35 Chengdu Jinniu Community Development Research on the "Suzhou Numerals Code" of China's School of Humanities and

12 Guangzhou Shi Yuan Charitable Foundation Foundation 2 Commercial Digital Cultural Heritage communication Ningbo University

3 Organization and Research of Chinese Maritime Customs School of History and Cultural Heritage 13 Family Education Promotion Association 36 Chengdu Concentric Charity Public Service Publications in the Shanghai Library Collection Xiamen University

Zengcheng District Guangzhou Center 4 Research on the Interaction between Commercial Development Institute of Economics Chinese Academy and the Monetary Evolution since the Qing Dynasty of Social Sciences

14 Lezhong Social Work Service Center 37 Arrangement Research and Database Construction of the Department of History Jiangxi Normal

Zengcheng District Guangzhou Gongming Public Welfare Center for Disability Inclusion Guangzhou 5 Documents of Tongrentang Pharmacy in Huizhou Jixi University

Collection and Compilation of Sino-Foreign Commercial Judicial Department of History School of Liberal

15 Guizhou For Love Qianxing Public Service 38 6Guolanying Arts Development Foundation Archives of the French Mixed Court of Shanghai (1869-1931) Arts Shanghai UniversityCenter

Research on the Price Data in Rural Households' Account Department of History School of

16 Houma City Social Work Service Center 39 Hui County Volunteer Service Center 7 Books in Qing Dynasty Humanities Shanghai Jiao Tong University

17 Shandong Zhongtou Philanthropic 40 Jiande Guangfu Charitable Foundation 8 Collection and Organization of Salt Price Historical Data in Department of History Sun Yat-sen

Foundation the Qing Dynasty University

41 Jiangxi Love Public Welfare Association

18 Shaanxi Youth Entrepreneurship and

Employment Foundation 42 Nanchong Charity Federation "Walk side by side with

19 Shanghai PuTuoDistrict Merry Memory friendship" Employee Volunteer Services43 Nanning Huiguang Social Work Service

Senior Care Center Center Our employee volunteer service strategy focuses on professional and environmental

20 Shenzhen Social Commonweal Foundation volunteer services. We engage in volunteer activities through various forms 44 Shanghai Make-A-Wish Charity Foundation including connecting with external resources and collaborating with outstanding

21 Shenzhen We-i Charity Foundation charitable organizations. By the end of 2023 the "Walk side by side with friendship" 45 Shenzhen Dapeng Coral Conservation volunteer service team had 501 officially registered volunteers. During the year 217

22 Education Foundation of Shenzhen Volunteer Federation volunteers contributed a total of 3025.5 hours of service; 8 individuals participated in

University of Advanced Technology professional volunteer activities conducted under the Yonyou Public Welfare Cloud

46 Xuzhou Yitong Social Work Development project accumulating approximately 3270.5 hours of service.

Center In the outstanding volunteer 23 Songyuan Blue Sky Volunteer Association recognition event of 2022 we actively

24 TianJin Xinyu Public Foundation 47 BAYU Public Welfare Development Center 501 3270.5 encouraged employees to participate

of Yuzhong District Chongqing in volunteer services and specially

25 Weifang New-achieve Social Work Service Officially registered volunteers in the Hours of accumulated service time acknowledged those volunteers

Center 48 Jafron sunshine Medical Foundation "Walk side by side with friendship" who made exceptional efforts for the

volunteer service team community environment and others.

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2023 Sustainability (ESG) Report

03

Governance:

Creating Long-term

Value

Listed companies are the cornerstone of the capital market and a key

driving force for the high-quality development of China's economy. In

recent years with the introduction of policies such as Opinions on Further

Improving the Quality of Listed Companies and the implementation

of multiple rounds of action plans to enhance the quality of listed

companies robust support has been provided for the stable and healthy

development of China's capital market. Facing the profound changes

in internal and external environmental development trends solidifying

corporate governance concepts and persistently focusing on standardized

development is an essential aspect of continuously enhancing the

developmental quality of listed companies. This is also an inevitable

requirement as the economy and society enter a stage of high-quality

development.As a large listed enterprise Yonyou consistently adheres to exploring

the best practices in modern corporate governance. With a focus on the

intrinsic requirements for high-quality corporate development Yonyou

deeply integrates the concepts of Environment Social and Governance

(ESG) into all aspects of business operations. We have established an

ESG management mechanism that spans from the board of directors to

the grassroots frontline and continuously improve the related system

infrastructure. Focusing on key aspects of corporate governance such

as investor relations management information disclosure and data

and privacy security we consistently deepen our capacity building and

reinforce a culture of compliance laying a solid foundation for the long-

term sustainable development of the enterprise.

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2023 Sustainability (ESG) Report

Drive the Continuous Improvement of Independence and Diversity

of the Board of Directors

Corporate Governance Effectiveness

In 2023 in accordance with new regulatory requirements such as the Measures

for the Administration of Independent Directors of Listed Companies 1/2

we revised and improved the Working System for Independent Directors Independent directors in the

of Yonyou Network Technology Co. Ltd. This revision standardized the

Establish a Solid Governance Foundation board of directors by the end of appointment conditions and election procedures for independent directors 2023

considering factors like educational background industry experience and

In 2023 in accordance with the Company Law of the People's Republic of China and the Securities Law of the professional skills and it stipulated that independent directors should ideally

People's Republic of China we revised and improved various system norms including the Rules of Procedure for serve in no more than three domestic listed companies.the Board of Directors of Yonyou Network Technology Co. Ltd. the Articles of Association of Yonyou Network

Technology Co. Ltd. and the Implementation Details of the Board's Strategic Committee. This continuous effort By the end of 2023 independent directors comprised half of our Board

aims to better translate institutional advantages into governance efficacy. bringing diverse expertise from regulatory agencies information technology and corporate management. The independent directors actively participated

We established a corporate governance system comprised of the Shareholders Meeting Board of Directors Board of in the work of the Board's special committees and effectively played an

Supervisors and senior management. The Shareholders' Meeting is the highest authority in Yonyou responsible for independent role in the Board's decision-making. Two of them served

managing significant corporate matters. The Board of Directors acts as the decision-making institution undertaking as chairpersons of the Audit Committee Nomination Committee and

responsibilities related to business operations decisions. The Board of Supervisors serving as the supervisory Related Transactions and Control Committee. In the future Yonyou will

body oversees the fulfillment of duties by the directors and management and is accountable to the Shareholders continue to optimize the composition of the Board members strengthen the

Meeting. This governance structure of "three committees and one layer" ensures that each entity performs its independence of the Board enhance the diversity of the Board and advance

respective duties effectively balances and coordinates operations thereby guaranteeing that Yonyou's corporate the recruitment of female directors to ensure efficient operation of the Board.governance is standardized scientific and efficient.In 2023 Yonyou convened Investor Communication and

* The shareholders' meeting was held 2 times deliberating and passing 2 proposals such as the Company's Information Disclosure

2022 Annual Financial Settlement Scheme and the Proposal on Amending Certain Clauses of the Company's

Fundraising Management Method. We always adhere to the compliance transparency and professionalism

of information disclosure constantly improve the timeliness and quality of 321

* The board of directors convened 7 times deliberating and passing 55 proposals including the Company's information disclosure through multiple channels and ensure that investors Investor hotline calls were

2022 Sustainable Development (ESG) Report the Proposal on Renaming the Ninth Board of Directors' timely complete accurate and equal access to company-related information. answered

Strategic Committee and Revising the Implementation Rules of the Board's Strategic Committee and the In 2023 we completed the preparation of 147 temporary announcements and

Company's 2023 Employee Stock Ownership Plan Management Rules. the disclosure of relevant documents such as the announcement of share

repurchase equity incentive and the use and management of raised funds

* The supervisory board met 6 times deliberating and passing 27 proposals such as the Company's 2022 through the website of the Shanghai Stock Exchange the Shanghai Securities 16

Board of Directors Report and the Company's 2022 Supervisory Board Report. News the Securities Daily the China Securities News the Securities Times and Questions on the SSE E interactive

other legal information disclosure media. platform were answered

We attach great importance to the protection of the rights and interests of minority

Under Yonyou's Board of Directors various specialized shareholders. During the year we answered 321 investor hotline calls answered

committees are established including the Audit The highest authority The highest body supervisory body 16 questions on the SSE E interactive platform and responded to 121 investor 121

Committee Nomination Committee Compensation the shareholders' the supervisory emails. Additionally we held three regular report performance briefings ensuring

and Assessment Committee Strategy and Sustainable meeting board investors are well-informed about the latest developments of the Company. In Investor emails were responded

Development Committee and Related Transactions 2023 we actively engaged in thorough discussions with investors regarding ESG-

The highest decision- decision-

and Control Committee. Among them the Strategy making body making supervise related issues. Addressing investor concerns about corporate governance energy

and Sustainable Development Committee is wholly the board of directors conservation and emission reduction and employee benefits the Company's 3

responsible for the Company's ESG (Environment investor relations coordinated with the ESG Committee to actively respond

Social and Governance) initiatives offering ensuring transparency and efficiency in our ESG efforts. Regular report performance

strategic guidance and decision-making support briefings were held

The highest executive

for Yonyou's long-term sustainable development. body Executive

supervise

In 2023 Yonyou held a total of 9 special committee management team

meetings. These meetings focused on key topics such

as internal control audits selection of directors and

senior management equity incentives and related

transactions providing crucial support for enhancing

the Company's governance and operational efficiency.

4142

Other

Departments

Human Resources

Department

Finance

Department

Legal

Department

Business

DepartmentChairman's Message About Yonyou Feature Story Environmental Chapter Social Chapter Governance Chapter Future Purpose Content Index

Yonyou Network Technology Co. Ltd.

2023 Sustainability (ESG) Report

Yonyou Network Investor Communication Channels

Continuously Improving Compliance

Investor hotline calls "Investors Step into Yonyou" Official Website "Investor and Operational SystemsSeries Activities Relations Column"

We provide answers to In 2023 Yonyou actively We regularly publish all

investors' concerns actively cooperated with external announcements Business Ethics

communicate the Company's organizations such as Wanhe on the "Investor Relations

business progress and Securities and Bank of China Column" page. With a Organizational and Systematic Safeguards

industry trends listen to their International Securities monthly cycle we disclose

suggestions and promptly inviting small and medium information on product We established an independent Group Audit and Supervision Department separate from business and other functional

relay feedback to the investors to visit Yonyou and development business departments responsible for the Company's internal audit investigation of reported illegal and non-compliant behaviors

Company's management. participate in activities such operations and model and handling of violations. This department is accountable to the Board's Office and reports to it. A member appointed by

as tours on-site exchanges customer contracts. the Board's Office (the director in charge) represents the Board's Office in overseeing the audit and supervision work. A senior

and Q&A sessions. management member is also appointed to concurrently serve as the General Manager of the Group Audit and Supervision

Department responsible for the internal audit and supervision work under the leadership of the director in charge.We have established a comprehensive internal control management system covering financial management risk

management compliance review and other areas. In 2023 we publicly posted systems such as the Supervision System of

Yonyou Network Technology Co. Ltd. and the Internal Audit System of Yonyou Network Technology Co. Ltd. Internal Audit

Case Shanghai Stock Exchange and Bank of China Securities Jointly Organize "I am a Shareholder" System online. This initiative was aimed at enabling employees and other stakeholders to gain a more comprehensive and in-Event Investors Gain In-Depth Understanding of Yonyou Networks. depth understanding of the Company's management norms and behavior guidelines thereby enhancing the transparency

and compliance of the Company.In November 2023 Bank of China Securities in collaboration with the Shanghai Stock Exchange organized

the "I am a Shareholder" event at Yonyou Networks. Fourteen investor clients from the Beijing branch of Bank

of China Securities participated in this event. Wang Ke the Director of Investor Relations at Yonyou Networks Audit and Supervision

reviewed the 35-year development journey of Yonyou and introduced the latest R&D application achievements. In 2023 we made solid progress in audit supervision carrying out 48 audit supervision projects including departure

She also answered the questions raised by investors one by one. This event provided the investors with a more audit performance audit special audit and internal control evaluation during the year covering all the Company's

comprehensive and multidimensional understanding of Yonyou guiding them to better recognize the investment main business operations and significant risk areas. In total 69 audit projects were conducted identifying over

value of Yonyou and fostering a positive awareness of exercising their rights as shareholders. 300 issues. Additionally we engaged external organizations to conduct annual internal control audits providing a

comprehensive and objective assessment of the Company's internal control processes. Upon identifying issues and

risks during the audit process we promptly proposed rectification measures and organized orderly rectification

efforts enhancing the Company's operational efficiency and risk resistance ensuring standardized and efficient

operational management and safeguarding the Company's sustainable development.We are committed to helping the group build a scientific business operation management system that adheres to

the principle of "establishing rules beforehand controlling risks during and strict accountability afterward." We

actively constructed and operated a comprehensive compliant fair and efficient audit and supervision system.Through audit activities reporting channels and internal feedback we conducted comprehensive supervision of all

company employees partners and suppliers; conducted initial inquiries case establishment and investigations for

illegal and non-compliant matters strictly according to procedural regulations ensuring the compliance of the audit

and supervision work itself; and implemented a multi-department joint meeting and collective decision-making

mechanism for handling non-compliant behaviors ensuring the fairness of the outcomes. In 2023 the Company

further strengthened the supervision team intensified efforts to crack down on violations and disciplinary offenses

reinforced the promotion of a culture of integrity and fully safeguarded Yonyou's long-term healthy development.Reporting and Protection of Informants

We have developed and perfected the Yonyou Group Reporting Management Regulations applicable to all group

employees including interns and contract staff as well as external consultants supplier service personnel and

partners involved in joint on-site development. We will reward informants whose reports are substantiated through

investigation and make significant contributions to the Company. Simultaneously we require staff who receive

reports or participate in investigations to strictly adhere to confidentiality not to disclose the identity of the

complainant or reporter to any department or individual without authorization and prohibit any discriminatory or

retaliatory actions against informants ensuring their protection during the investigation process.

43 44Chairman's Message About Yonyou Feature Story Environmental Chapter Social Chapter Governance Chapter Future Purpose Content Index

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2023 Sustainability (ESG) Report

Employee Behavior Management and Incorruptibility Education

We continue to build a long-term mechanism of " Dare not corrupt can't corrupt and don't want to corrupt" Building a Secure Barrier in the

deepen the approach of addressing both symptoms and root causes and strive to create a clear honest and

integrity-driven cultural ecosystem for the Company. We seriously address any behavior that violates the Digital Economy Era

Company's integrity management system in accordance with the Employee Standard of Commercial Conduct and

Regulations of Yonyou Network Technology Co. Ltd. on Punishment of Employees' Violations. In 2023 we released

the "Eight Dos and Don'ts" for Yonyou cadre behavior emphasizing the need to adhere to "transparent operations." We strictly comply with laws and regulations such as the Network Security Law of the People's Republic of China

Throughout the year we dealt with 23 employees for violations including two cases where employees were the Data Security Law of the People's Republic of China Administrative Measures for Data Security in the Field of

dismissed or disciplined for corruption. Industry and Information Technology (for Trial Implementation) and Interim Measures for the Administration of

Generative Artificial Intelligence Service to establish our data security and privacy protection governance system.In 2023 we conducted a total of 239.1 hours of business ethics training for all new employees. At the same time

we carried out three comprehensive integrity promotion and education activities for all employees partners and We have set up the Group Information Security and Privacy Protection Committee with subordinate Information

suppliers. These efforts aimed to fully integrate the concept of business compliance into the minds and hearts of Security and Privacy Protection Leadership Group Information Security Working Group and Privacy Protection

our employees and in collaboration with partners and suppliers build a transparent fair and integrity-driven Working Group. The members of these groups include security directors from 23 industry and business divisions

business environment. who are fully responsible for the group's information security and privacy protection tasks.* Assessed the overall security risks according to the Company's development strategy

and national laws and regulations and industry regulatory requirements and

Responsible Procurement Information formulated the Group's overall information security and privacy protection strategy

Security and goals.In 2023 we further strengthened the construction of the supplier management system revised he Yonyou Procurement and Privacy Protection * Provided decision-making and resources for information security and privacy Management System and improved the management methods and work mechanisms related to supplier selection Leading protection work and reviewed and approved important matters related to information

training assessment supervision elimination and safety management. We promoted the establishment of an ESG Group security. Coordinated and promoted the construction of various safety tools and

supply chain management system to deepen the construction of a sustainable supply chain. protective measures guided and designed and supervised the implementation of

various safety work.Information

Yonyou Supplier Management Security * We promoted internal security governance handled security incidents and promoted

Working the promotion and implementation of various Group security requirements within the

* To enhance supplier management efficiency and improve Group organization to meet regulatory compliance and Group security objectives.Supplier supplier experience we adopted a role management approach.Admission Suppliers were categorized into four types based on different

backgrounds with distinct admission criteria and material * Interpreted relevant national laws and regulations on privacy protection and met Privacy

requirements for each category. Working customers' needs for privacy protection. Handled privacy security risks optimized

Group privacy protection systems and processes and promoted the realization and

* We mandated ESG social responsibility audits for corporate-type implementation of privacy protection foundations.suppliers covering the establishment of anti-corruption policies

and the construction of social responsibility management systems.By the end of 2023 our Sunshine Cooperation Commitment and

Supplier Supplier Social Responsibility Commitment signed have covered Yonyou Group Board of Directors

Auditing 100% of the Company's suppliers.* We require all suppliers to fill out a safety audit form before being Yonyou Group Executive Council

added to our database and to sign a security confidentiality

agreement based on the project background. Group Product and Business Group Information Security and Group Technical Planning

Planning Management Committee Privacy Protection Committee Management Committee

* We actively conducted safety assessments on suppliers involved in

supply chain security during their admission phase evaluating their

Supplier performance and capabilities in data and network security.Assessment

* Annual supplier re-evaluations are conducted assessing risks and Information Security and Privacy

potential on both the project and operational sides of the suppliers. Protection Leadership Team

Supplier * We conduct special on-site inspections during supplier admission

Supervision certification and re-evaluation based on the importance of Information Security Working Group Privacy Protection Working Group

upcoming projects or past comprehensive performance. Inspection of Lenovo

45 46Chairman's Message About Yonyou Feature Story Environmental Chapter Social Chapter Governance Chapter Future Purpose Content Index

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2023 Sustainability (ESG) Report

Data Security Upstream supply chain Downstream supply chain security control Supply chain self-security security control

Institutional Safeguards

Supplier Management Trusted research development Project delivery and and operations customer service

We practice the principles of "people-centricity" and "everyone is responsible for cybersecurity" continually

improving our security management system. In 2023 we revised the Yonyou Data Management System clarifying Client device Supplier Procurement Security Implement

the departments responsible for data and privacy protection. We standardized the methods for data and privacy requirements Security design security and open source admission management software security

protection and set clear standards for data classification and grading ensuring orderly and efficient collection

management processing and application of data resources. Throughout the year various product lines and Secure Security testing Deployment Service

subsidiaries implemented data classification and grading as per the data management system encrypting and development security security

anonymizing sensitive data. Third-party security

management

Our system applies to all domestic organizations within the group headquarters. Subsidiaries within the group

develop their own data management systems based on the group system while overseas entities create

appropriate data management systems combining the group system with local legal requirements. Product security emergency responseThird-party product security

Third-party service security

Risk Management and Emergency Mechanisms PSIRT organization Vulnerability collection

Third-party personnel security

We developed Yonyou Group Operational Security Management Specification and YonBIP Network and Information

Security Emergency Plan establishing and improving mechanisms for the prevention and emergency handling of

network and information security incidents. We standardized the emergency response processes and measures for Vulnerability remediation Vulnerability disclosureOpen source software security

security incidents enhancing our ability to respond to network and information security events and ensuring the

secure and stable operation of crucial YonBIP networks and information systems.We continually improve our security risk management mechanisms to comprehensively prevent data breach

risks. In 2023 we progressively advanced the construction of a zero-trust security system unified our account

management systems and strengthened authentication and authorization mechanisms. Through situational Security Auditing

awareness systems and normalized monitoring of internet exposure we provide timely security alerts for potential

risks and through an internal security notification mechanism send emails for security rectification to relevant We actively engaged external organizations to conduct regular IT audits annually ensuring that information

departments urging them to make timely corrections. assets are fully protected. In 2023 these external organizations audited the Company's overall information system

For potential data leakage incidents we established a robust response mechanism. In the event of a data breach control environment and mechanisms ensuring the effective implementation of internal controls for information

We can immediately take protective and isolation measures disconnecting the affected systems or devices from the technology and the ability to identify threats related to information systems and assess the impact of each threat.network to prevent further leakage and damage. Operational and technical personnel urgently carry out recovery

or rebuilding work continually tracking subsequent issue resolution until closure.Supply Chain Information Security Management

We are committed to enhancing our supply chain security management capabilities ensuring a secure and reliable

supply chain. In 2023 we formulated and revised several institutional documents including Yonyou Group Supply

Chain Security Management Specification Yonyou Group Project Implementation and Customer Service Security

Management Specification and Yonyou Group Product Security and Emergency Response Management Rules. This

achieved security control throughout the entire supply chain from upstream to downstream.For upstream suppliers we required them to sign security confidentiality agreements perform security audits

for supplier onboarding and conduct at least annual security assessments. We reviewed suppliers' security

qualifications information security and privacy protection and compliance with security agreements. In 2023 we

conducted security audits on hundreds of suppliers.For downstream customers we standardized security work methods and requirements for frontline

implementation services customization development and partner management departments ensuring the

security of customer systems and data. By timely sending risk notification letters and providing free patch

distribution tools and repair verification tools we effectively reduced customer security risks.

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2023 Sustainability (ESG) Report

Data Protection Mechanisms

Privacy Protection

We integrated data protection measures deeply into the product development process ensuring that products

Institutional Safeguards are compliant and secure before launch. For example we establish a DPIA (Data Protection Impact Assessment)

system at the early stages of product development. This system assesses business scenarios involving personal

We place high emphasis on the protection of users' personal privacy and have developed and issued the Yonyou information in products clarifies the protection needs and risks of personal information and implements sensitive

Group Personal Information Protection Management Specification applicable to all business groups (BG/BU) data identification management during the product design phase identifying and marking sensitive data within the

functional organizations regional institutions industry customer business departments and subsidiaries of the product throughout its data lifecycle.Yonyou Group. Overseas institutions formulate their own personal information and privacy protection standards in

reference to local laws and regulations. In 2023 we continuously updated and publicly released our product privacy We offered customized data security capabilities for sensitive data management. By controlling access to sensitive

policies and registration agreements such as the You Space Privacy Policy Yonyou Cloud Registration Agreement personal information and encrypting its transmission and storage and employing techniques like anonymization

and Youfeikong Privacy Policy constantly refining rules for personal information processing and strengthening to desensitize data we enhance the overall security of the data. In 2023 we conducted data security governance for

privacy management. group mobile apps uniformly adopting HTTPS protocol encryption and implementing strict certificate verification

to further strengthen the protection of personal information.Management Process

We actively uphold principles of transparency compliance and respect for users. Before collecting and processing

information we seek user consent through pop-up forms thereby fully safeguarding users' right to be informed Technological Ethics

and to make decisions. Throughout the entire lifecycle of information management we strictly adhere to standards

regarding the collection transmission storage use and sharing of personal information ensuring users' rights to We regard technological ethics as a crucial foundation for technological innovation committed to creating a harmonious

access modify and delete their personal data. Additionally we stringently regulate our collaborations with third friendly fair inclusive and safe algorithm system. We pay particular attention to respecting and protecting individual

parties setting clear guidelines for the scope duration purpose and method of third-party personal information basic rights in technological ethics especially safeguarding vulnerable groups and striving to eliminate the digital divide

collection. We commit to not renting selling or providing personal data to third parties for purposes other than sharing the benefits of technological progress fairly with everyone.transactions and services.We actively promote the construction of a technological ethics and security risk governance system and mechanism. The

Yonyou Group YonBIP Algorithm Security Management Specification have been formulated we integrate technological

Yonyou Group Personal Information Protection Management Specification (Excerpt) ethics management into the entire lifecycle of product development and business operations achieving the goals

Responding to Requests from Personal of open collaboration shared responsibility and agile governance in technological ethics. We effectively prevent

Information Subjects Delegated Processing of Personal Information technological ethics and security risks establishing self-assessment mechanisms for algorithm security and monitoring

systems to ensure that algorithms operate on a legal compliant and secure basis.* For personal information queries and changes * If it is necessary to entrust a third party to process

the Company should provide customers with personal information collected by the Company the

a channel to query their personal information. delegation should not exceed the scope of consent

If a personal information subject finds that authorized by the personal information subject. Algorithmic Technology Ethics and Safety Risks

the Company holds incorrect or incomplete * Evaluate the entrusted party to ensure they have an

information about them the company should adequate level of personal information protection. This * The risk where the behavior and impact of the algorithm exceed the pre-set Loss of Control

provide a method for them to request correction includes but is not limited to security qualifications Risk understood and controllable range of developers designers and deployers

or supplementation. personal information protection norms/data security negatively impacting societal values.* For personal information deletion the Company regulations capabilities and practices.should provide a channel for customers to * If the entrusted party does not process personal

delete their personal information especially information as required or fails to effectively Societal Risk * The risk of negative impact on societal values due to unreasonable use of

if the personal information subject finds that fulfill personal information security protection algorithms including abuse and misuse.the Company has violated legal regulations or responsibilities the Company should demand that

agreements made with them the Company should the entrusted party immediately delete all personal

delete the personal information as requested. information obtained from the Company. Infringement * The risk of algorithms infringing on basic human rights including physical integrity

* For withdrawal of personal information * If entrusted by a third party to process personal Risk privacy property etc. or causing negative impacts.authorization a method for users to withdraw information collected by that third party a delegation

their consent to the processing of their personal contract must be signed with the third party. The

information should be provided. After consent personal information should be processed according

is withdrawn the Company should no longer * The risk of algorithms leading to unfairness and injustice due to subjective or to the terms of the contract and processing should not Discriminatory

process the corresponding personal information. objective biases against specific human groups resulting in rights infringements or exceed the agreed-upon purposes or methods. If the Risk negative impacts.* If a product's service or operation is terminated delegation contract is not effective invalid revoked or

users should be notified at least thirty days in terminated the personal information must be returned

advance and after termination of the service or to the data processor or deleted and not retained. * The risk of negative impacts on social trust and societal values due to improper

operation users' personal information should be Responsibility actions of parties involved with the algorithm or unclear delineation of

deleted or anonymized. Risk responsibilities.

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2023 Sustainability (ESG) Report

Capacity Building and Industry

Ecosystem

Capacity Building

We are firmly advancing the construction of our emergency response

capabilities organizing at least one emergency training annually. In 2023

we conducted security training focused on the control measures and

recovery strategies outlined in our emergency plans. Additionally we

organized information security awareness exams covering over 15000

participants across the group and its subsidiaries.We regularly conduct security attack and defense drills to solidify our

security defenses. In 2023 adopting the "attack to defend" model we

conducted internal security self-inspections and rectifications. The group

carried out 14 security attack and defense drills targeting critical internal

business and subsidiaries significantly improving our overall security

level. Moreover we actively participated in five national and Beijing-

level cybersecurity operations and were recognized for two consecutive

years by the National Information Security Vulnerability Sharing Platform

(CNVD) for our outstanding contribution to vulnerability handling. This

not only enhanced our internal emergency response capabilities but also

strengthened our collaboration and overall defense capabilities with

various regulatory departments.We have obtained multiple information security system certifications

including ISO 27001 (Information Security Management System)

ISO 27701 (Privacy Security Management System) ISO 27017 (Cloud

Computing Information Security Management System) ISO 27018 (Public

Cloud Personal Identifiable Information Management System) CSA-

Star (Cloud Security Management System) DCMM (Data Management

Capability Maturity Assessment) Level 3 Cybersecurity Protection Trusted

Cloud Service Trusted Cloud Security Trusted R&D Operations and EAL3+ Industry Activities and Standard Setting

(Information Technology Product Security Evaluation Certification). Our

certifications cover all products and services of the group ensuring the We actively participate in industry activities and engage in

security and compliance of products used by our customers. In 2023 we deep industry exchanges. As a member we joined various

launched the Group Trust Center further enhancing information security industry organizations including the Technical Committee

transparency and enabling customers partners and other stakeholders to for Information Security Standardization (TC260) the China

fully understand our information security management level. Communications Standards Association Cloud Computing and

Open-Source Promotion Committee (TC608) the Data Security

Industry Research Group of the China Computer Industry

Association Data Security Professional Committee and the

Industry Ecosystem "Zhuoxin Big Data" plan of the China Academy of Information

and Communications Technology. In 2023 we participated in

In 2023 we established good communication mechanisms and cooperative drafting several security-related standards led by the China

relationships with organizations such as the Ministry of Industry and Academy of Information and Communications Technology

Information Technology and various local regulatory agencies ensuring such as Business Security Capability Requirements and Cloud

the compliance and robustness of our business development. Throughout Application Security Capability Requirements contributing

the year we formed close partnerships with several well-known security to enhancing the overall security level of the industry with

vendors to jointly provide security services to customers and create Yonyou's efforts.comprehensive solutions. This not only enhanced our customers' security

capabilities but also drove technological innovation and service upgrades

across the industry.

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2023 Sustainability (ESG) Report

Future Purpose

The year 2024 is crucial for achieving the goals and tasks

of the 14th Five-Year Plan and a significant milestone in

promoting high-quality development of the digital economy.This year accelerating the formation of new productive

forces and deepening the integration of the digital economy

with the real economy will be essential paths to further

promote innovative development in the digital economy.Utilizing new-generation information technologies to

accelerate the scaled application of the industrial internet

and thoroughly implement industrial digital transformation

will be key actions and important tasks for developing new

productive forces and creating new engines for economic

growth.In the wave of the digital economy era Yonyou has always

stood at the forefront of technological innovation. With a

forward-looking strategic vision we lead the transformation

and development of industries. Looking forward we will

deeply carry out the strategic layout of "Artificial Intelligence +

Industrial Internet" focusing on the technological ecosystem

centered on YonBIP. We will continue to explore and

break through technological boundaries drive digital and

intelligent transformation of industries and empower

economic development enrich people's lives and enhance

the modernization of social governance with a broader and

more profound digital revolution.We are keenly aware that a company's success lies not only

in its pursuit of wealth creation but also in its commitment

to social responsibility. We will always stay focused on the

strategic direction of sustainable development integrate

the concept of Environment Social and Governance (ESG)

into every aspect of our company's operations and work

together with a wide range of stakeholders to explore new

areas and opportunities in the digital economy. On the path

of high-quality development supported by technological

innovation we are committed to creating long-term value

and jointly writing a brilliant chapter for this era.

53 54Chairman's Message About Yonyou Feature Story Environmental Chapter Social Chapter Governance Chapter Future Purpose Content Index

Yonyou Network Technology Co. Ltd.

2023 Sustainability (ESG) Report

GRI Content Index UN Sustainable Development

Goals (SDGs) Index

Yonyou Network Technology Co. Ltd. reported the information cited in this GRI Content

Statement of use Index Summary by reference to the GRI standard from January 1 2023 to December 31

2023 (some content is outside the above time frame). Chapter Content SDGS

The title of GRI1

used GRI 1：Foundation 2021

* Expanding Horizons and

Incremental Growth

Digitalization is No

Feature Story: Let Longer a Distant Goal for

Enterprises

Chapter Content GRI Standards Leading Practices Become Universally * Focusing on the

Reporting Scope Beneficial Forefront Large Models

Reporting Standards Make Digital and

About the report 2-1 2-2 2-3 Intelligent Innovation

Data and Information Disclosure More Accessible

How to Get the Report

Enables the green

Chairman's Message / 2-22 transformation of

Environmental thousands of industries

Company Profile Chapter: Guarding

Organizational Structure Lucid Waters and

Lush Mountains

About Youyon ESG management Framework 2-1 2-6 2-9 2-13 2-14

Awards and Recognitions Building a Green and Low-

Carbon Operating System

Social Responsibility Certifications

Expanding Horizons and Incremental

Feature Story: Let Growth Digitalization is No Longer a Distant

Leading Practices Goal for Enterprises 203-2 Creating a New Environment Become Universally Focusing on the Forefront Large Models for Comprehensive

Beneficial Make Digital and Intelligent Innovation More Development of Employees

Accessible

Environmental Enables the green transformation of Social Chapter: Co- Building a New Ecosystem

Chapter: Guarding thousands of industries 3-3 2-9 2-12 201-2 301-1 and Mutual Benefit for the

Lucid Waters and Lush 302-1 302-2 302-4 302-5 303-1

Creating a Better Life Industry

Building a Green and Low-Carbon Operating

Mountains 303-5 305-5 System

Empowering a New

Creating a New Environment for Mechanism for Charitable

Comprehensive Development of Employees Causes for Society

Social Chapter: Co- Building a New Ecosystem and Mutual 3-3 2-7 2-8 401-1 401-2 403-2 403-

Creating a Better Life Benefit for the Industry 3 403-6 404-1 404-2 404-3 405-1 Drive the Continuous 406 407 408 409 413 Improvement of

Empowering a New Mechanism for Corporate Governance

Charitable Causes for Society Effectiveness

Drive the Continuous Improvement of

Corporate Governance Effectiveness Governance Chapter: Continuously Improving

Governance Chapter: Creating Long-term Compliance and

Creating Long-term Continuously Improving Compliance and 3-3 2-9 2-12 205-2 205-3 414-1 Value Operational Systems

Value Operational Systems 418

Building a Secure Barrier in the Digital

Economy Era Building a Secure Barrier in

the Digital Economy Era

Future Purpose / /

55 56Yonyou 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