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吉比特:G-bitsNetworkTechnology(Xiamen)Co.,Ltd.2023

公告原文类别 2024-03-29 查看全文

吉比特 --%

I

About this Report

Information about this Report

Reporting boundary

Reporting cycle

Data description

Preparation basis01 About this Report 02

Information about this Report Data description

This is the 2023 Corporate Social Responsibility Report of G-bits Network Technology (Xiamen) Co. Ltd (stock code: The information data and cases used in this report are from the Company's official documents statistical reports financial

603444). Through the Report we hope to fully communicate with all stakeholders on G-bits's social responsibility reports or public documents as well as the Company's functional departments statistics and summaries of ESG practice

philosophy performance and commitment to corporate sustainable development. information. The reporting currency of the financial data in this Report is Renminbi ("RMB").Reporting boundary Preparation basis

This Report covers the period from 1 January 2023 to 31 December 2023 (the "Reporting Period" or "this year") for all This Report is prepared and disclosed mainly in accordance with the No.1 Guidelines for Self-discipline Regulation

G-bits office locations. of Listed Companies on the Shanghai Stock Exchange- Operating in a Well-regulated Manner and Sustainability

Reporting Guidelines (GRI Standards) issued by the Global Sustainability Standards Board.Reporting cycle

This Report is simultaneously released with the Company's Annual Report.II

About G-bits

Company profile

Party-enterprise integration

Honors05 About G-bits 06

Company profile Corporate culture

G-bits Network Technology (Xiamen) Co. Ltd. (hereinafter referred to as "G-bits" "We" or "the Company") is a

company specialized in creative planning R&D production and commercial operation of online games. The Company G-bits strives to gather and nurture innovative talent and pursue efficient

aims to provide "original high-quality and ethical" online games and is committed to creating original online games with working methods. We aim to provide global users with differentiated

a focus on positive content as well as high cultural and artistic standards for entertainment experiences. products and services. We wish to create and disseminate delightful

Mission experiences in the cultural and entertainment field. We observe our corporate social responsibilities all the time to promote the co-development of the industry and the

co-creation of social value. We make unremitting efforts to create high-quality and healthy recreational products and

provide global users with differentiated products and services. In the future the Company will actively engage in R&D

and innovation continuously provide high-quality game products and spread wonderful experiences in the cultural and

recreational field. Act with Integrity (Integrity): We focus on long-term benefits do what is

more valuable and right for long-term development and establish positive

cooperative relationships with all those we work with.Emphasis on shareholder returns

Clarity of Essence (Clarity): We grasp the essence of things understanding

and addressing problems from the "source". We delve deeply into user

14 100 needs prioritize the user experience and guide our work by standing in

12.22 83.67 the user's perspective to evaluate the outcomes. We believe it is essential

12 11.50 78.30 to stay close to our users and clearly understand their evolving needs.

80 Therefore we must build a user-centric mindset within the organization

10

Values conducting and assessing our work with a user-driven approach.

8 60 44.82 Benefit from Humility (Humility): We encourage our employees to be

humble rather than arrogant or complacent. We believe it is essential to

6 5.04 40 respect others' opinions and view ourselves from their perspective.

4 Elegance in Behavior (Elegance): We pursue good product quality

20 instead of trying to profit from vulgarity or anything against humanity. We

2 encourage our employees to follow a decent discipline pursue a quality

0 0 lifestyle and cultivate an appreciation for aesthetics.

202120222023202120222023

Amount of cash dividend (RMB 100 million) Cash dividend amount as a percentage of net profit

attributable to shareholders of the Company (%)

Respect Integrity Compliance with Rules Professionalism Progress

Perseverance and Honesty

Behavioral

pattern07 About G-bits 08

Innovative R&D strategy - "Minimum Viable Product (MVP) Party-enterprise integration

Approach"

Adhering to Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and the Spirit of the 20th

National Congress of the Communist Party of China G-bits fully leverages the advantages of an internet enterprise

G-bits attaches great importance to product innovation and strives to improve competitiveness by creating differentiated to propel high-quality development. Grounded in party building and rooted in China's outstanding cultural heritage

and commercialized high-quality games. With a unique R&D strategy of "MVP Approach" the Company tests the core G-bits showcases cultural confidence through game content and demonstrated its mission responsibility through game

gameplay conception and painting style of the game by rapidly iterating. At the stage of project R&D the project team supervision.members produce the prototype according to the design idea. After conducting user tests to verify the feasibility of

core gameplay the project team members will iteratively update the feedback and optimize the prototype based on This year the Company continued to integrate party building into governance culture and responsibility. Combined with

test data constantly and rapidly. The verification will be repeated until the game is launched online. "MVP Approach" actual business operations we actively conducted various forms of learning and activities to strengthen party member

is beneficial for controlling product direction avoiding ineffective investment and controlling R&D costs. However education and enhance the level of corporate spiritual civilization.the "MVP Approach" does not imply that the project scale or total investment is small instead it means increasing

investment in situations where the project's certainty is relatively high. Furthermore with the "MVP Approach" the

operations team closely collaborates with and supports the R&D team through multiple tests and analyses to get an in-

depth understanding of market conditions and user characteristics of the products and to provide better-customized

launching plans for the products to reduce relevant risks and costs.Define the design Plan the

Build the core team 2 Demo Phase framework for demo In March 2023 all branches of the In April 2023 the party members On the occasion of the 102nd

the demo budget Company held a general meeting of of the Company participated in the anniversary of the founding of the

Develop game Evaluate the feasibility Slightly party members to convey the spirit theme activity of "Remembering Communist Party of China (CPC)

concepts and design of the concepts and Develop the expand the of General Secretary Xi Jinping's Revolutionary Martyrs Inheriting the the Company held a general

Y demo important speeches and the main Spirit of Dedication" on Qingming meeting of party members on 1

st

core gameplay gameplay team contents of the government's work Fest ival deeply remembering July to learn the great founding

report during the 2023 National the great achievements of the spirit of the CPC and continuously

N People's Congress (NPC) and the revolutionary martyrs reminiscing improve the political quality of

Analyze the 2023 Chinese People's Political t h e g l o r i o u s c o u r s e o f t h e party members. N

1 Concept Phase END END demo test Consultative Conference (CPPCC). revolutionary martyrs passing on

data The aim was to guide all party the red genes and carrying forward

members to take the initiative to the revolutionary spirit.study and put the spirit of the NPC

and CPPCC into practice.

4 Post-launch Period 3 Project Development Phase Plan the budget

END Initiate the Expand

project the team

N

Operate and Optimize game Launch the

Further

development & Analyze the Develop the analyze versions game optimizations test data game

In July 2023 party members of the Company In August 2023 the Party branch of the Company co-organized the

listened to the special lecture on "Learning and "Supporting Growth Safeguarding Youth" 2023 Siming District New

Implementing the Spirit of the 20th National Xiamen People's Library Summer Camp which was guided by the

Congress of the Party" at the Heron River Siming District Committee of the Communist Youth League Siming

Lecture Theatre to cultivate the love for the District Minors' Ideological and Moral Construction Center and other

Party and patriotism and to further cohesion of units aiming to strengthen the rule of law education and publicity and

the power of advancement. enhance the protection of the rights and interests of minors and crime

prevention work to create a good atmosphere of the rule of law.09 About G-bits 10

Honors

From 2017 to 2023 In March 2024

The Company was selected for 7 consecutive years in the "Top 100 China Internet The Company was selected as a "National Cultural Industry Demonstration Base" by the

Enterprises with Comprehensive Strength" list jointly issued by Internet Society of China Ministry of Culture and Tourism

and Ministry of Industry and Information Technology. It ranked 54th in 2023 climbed up

by 6 places from previous year

From 2019 to 2023 From 2022 to 2023

The Company was selected for 5 consecutive years as one of the "Top 100 enterprises The Company and its subsidiaries were selected as "Cases of Game Public Welfare

with competitiveness in software and information technology services". It ranked 49th in Ceremony" by People's Daily for 2 consecutive years

2023 climbed up by 2 places from previous year

From 2022 to 2023 From 2022 to 2023

The Company was awarded "Grade A1" by the Shanghai Stock Exchange (SSE) for The Company was awarded the honorary title of "Enterprise with Outstanding

its annual information disclosure work for 2 consecutive years; In 2023 among the Performance in Social Responsibility" in Gamma Data's "Social Responsibility Report of

2160 Shanghai-listed companies under evaluation a total of 400 companies ultimately Chinese Gaming Enterprises" for 2 consecutive years

received "Grade A" accounting for 18.5%.From 2019 to 2023 In 2023

The Company was included in the SSE Social Responsibility Index2 for 5 consecutive The Company was awarded the honorary title of "National Intellectual Property

years Advantageous Enterprise" by the National Intellectual Property Administration.From 2021 to 2023 From 2022 to 2023

The Company was awarded the honorary title of "Relatively Outstanding Enterprise in The Company was nominated as one of the "Top 10 Outstanding Game Technology

Social Responsibility Performance of Chinese Game Enterprises of the Year" by People's Innovation Enterprises" by China Audiovisual and Digital Publishing Association for 2

Daily for 3 consecutive years consecutive years

1 The annual evaluation of information disclosure work of Shanghai Stock Exchange (SSE) is an annual comprehensive assessment of the 2 S SE Corporate Social Responsibility Index is an index compiled from a sample of stocks in the corporate governance sector of the SSE that

quality of information disclosure and related work of listed companies conducted by SSE. The evaluation of information disclosure work have performed well in the fulfillment of social responsibility assessing the comprehensive performance of enterprises in economic social

covers compliance effectiveness and management of information disclosure affairs. and environmental aspects and the fulfillment of social responsibility.III

Social Responsibility

and ESG Management

In an increasingly complex and volatile business environment the Company aims to achieve high-

quality sustainable development continuously enhancing ESG management level and practicing social

responsibility. We firmly believe that good sustainable development strategy can effectively support the

Company realizing its long-term goals navigating and responding to opportunities and risks associated

with sustainable development. To this end the Company actively integrates social responsibility

and ESG management into its daily prerational framework taking on responsibility in the social and

environmental aspects towards shareholders players employees and other stakeholders.ESG management

Responsibility communication

Corporate governance

Business ethics13 Social Responsibility and ESG Management 14

ESG management

In order to fully perform corporate citizenship responsibilities and achieve the coordinated development of enterprises

and society the Company has constantly improved the policies and systems in respect of environment society and The highest responsibility organ for ESG management and disclosure;

governance (ESG) established a three-tier ESG governance structure of "Board of Directors - Strategic Committee Deliberate and approve corporate ESG governance vision objectives

- ESG Working Group" continuously improved the ESG management level of the Company and promoted the high- policies etc.;

quality and sustainable development of the Company. Board

of Deliberate and approve the ESG report and other significant ESG-

The Company will in accordance with the requirements of the Rules of Procedure of the Board of Directors and the Directors related issues.Working Rules of the Strategic Committee of the Board of Directors clearly stipulate that the Board of Directors is the

highest decision-making body for ESG matters of the Company and shall be mainly responsible for the supervision

management and decision-making of ESG matters of the Company. The Board of Directors authorizes the Strategy

Committee to be responsible for matters relating to the ESG of the Company and the Committee is mainly responsible Conduct research on corporate ESG governance and provide

for studying the vision objectives and policies of the ESG governance of the Company providing the Board of decision-making advice to the Board of Directors including ESG

governance vision objectives policies etc.;

Directors with advisory suggestions on decision-making supervising and inspecting the implementation of the ESG

Working Group of the Company and providing guidance in due time. The ESG Working Group is responsible for Board of Directors Supervise and inspect the implementation of the Company's

developing the ESG implementation plan coordinating the implementation of ESG issues and regularly reporting to the Strategy Committee ESG working group and provide guidance timely to continuously

Strategy Committee. improve the Company's management level in the field of ESG;

Deliberate the Company's ESG reports and other significant

ESG-related issues.Establish ESG work execution plans;

Coordinate and facilitate the implementation of ESG-

ESG Working Group related matters;

Prepare the ESG annual report etc.15 Social Responsibility and ESG Management 16

Responsibility communication Stakeholders Expectations and demands Major communication channels

Legitimate rights and interests

Stakeholder communication protection Staff union

Welfare system improvement Founder meetup event

The Company attaches importance to the communication with stakeholders establishes diversified communication Development opportunities Corporate culture conference

channels pays close attention to the demands of stakeholders actively responds to the expectations of the interested

parties for the Company and assists the Company to determine the priority of the sustainable development and jointly Employees Employee training Face-to-face interview with

defines the key directions for future sustainable development. (including management level) Occupational health employees

protection Employee feedback channel

Stakeholders Expectations and demands Major communication Democratic rights protectionchannels

High-quality gaming products

Periodic report

Innovating high-quality games Professional customer service

Temporary announcement

Player-centered Service and team

Shareholders' meeting Products Self-service platform

Financial performance Performance briefing Players Protection of privacy rights Social Media

growth Investor survey Player Surveys

Shareholders and Returns to shareholders Press releases

investors

Investor hotline

IR mailbox Regular communication

sns.sseinfo.com mechanisms

Fair just honest Tender and bid system

Corporate governance Win-win cooperation

Visits to suppliers

Partners

Phone e-mail and meetings On-site investigationProduct liability

Periodic report Supplier trainingInformation security and

Directors privacy protection Temporary announcement

Win-win cooperation Support in community Engage in public welfare

development activities

Routine inquiries Creating employment Community communication

Senior management Community and public opportunities and visits

Law-abiding operation meetings Rural revitalization Care for vulnerable groups

Boosting employment Open to supervision

Strict compliance with Proactive communication

laws and regulations Information reporting Fair industry competition Industry cooperation

Governments and

regulators Tax payment on time Working conferences

Industry growth facilitation

Intellectual property protection

Implementation of policies Policy participation Assistance in cultural exchange

Industry promotion

On-site inspection Cultural promotion

Industry barrier elimination

Information disclosure17 Social Responsibility and ESG Management 18

Materiality assessment Corporate governance

In order to identify the ESG issues that are most concerned by stakeholders and clarify the focus of ESG practice

and information disclosure we have invited internal and external stakeholders to identify and determine material ESG The Company strictly adheres to the requirements of the Company Law of the People's Republic of China the

issues by means of questionnaire survey review and summary exchange meeting etc. Securities Law of the People's Republic of China the Code of Corporate Governance for Listed Companies the

Rules Governing the Listing of Stocks on Shanghai Stock Exchange and other laws regulations and normative

Based on the data collected during this materiality assessment process and the results of the analysis we identified documents continuously improves the corporate governance policy system the "three meetings and one layer"

the most concerned stakeholders 10 material issues and responses in each section of this report to help stakeholders governance structure of G-bits composed of the General Meeting of Shareholders the Board of Directors the Board

better understand the Company's ESG performance. Among them there are 3 very material issues 5 material issues of Supervisors and the Management. This promotes the Company to establish a governance mechanism with clear

2 sub-material issues and the materiality assessment results are as follows: rights responsibilities and standardized operation guides the Company to operate in good faith and in compliance

with regulations effectively manage and control risks promotes the Company to achieve sustainable and high-quality

development and repays the society and the majority of shareholders with commendable performance.G-bits ESG Materiality Matrix

The Shareholders' Meeting is the highest authority of the Company. The Company convenes and holds Shareholders'

Meetings in strict accordance with relevant regulations and requirements to ensure that shareholders fully exercise their

rights as shareholders. The Board of Directors of the Company consists of a Strategic Committee an Audit Committee

Information security and a Nomination Committee and a Remuneration and Appraisal Committee. The Board of Directors and all special

privacy protection

committees shall jointly be responsible for determining the strategic direction and overall strategy of the Company

Green operation Business ethics 1

8 and supervise the work and business performance of the Management the operation and financial performance of the 4

2 Company. The Board of Directors currently consists of seven members including three independent directors and two

Employee rights and interests

Product liability female directors. The Audit Committee the Nomination Committee and the Remuneration and Appraisal Committee 5 are all chaired by independent directors and independent directors constitute the majority of the committee members

3 thereby safeguarding the independence of major decisions of the Company. The members of the Board of Directors

9 Public welfare charity Win-win cooperation Corporate possess professional expertise and extensive industry experience in various domains including game research governance

6 and development operations law and finance. They are adept at integrating diverse perspectives and principles to Development and training

formulate corporate decisions aimed at safeguarding the long-term interests of shareholders and the Company.

7

Professional competence

Title Name Gender Education

background Industry Compliance Finance

10 Climate change experience management management

Chairman Lu Hongyan Male Bachelor's degree

Vice Chairman Chen Tuolin Male Master's

degree

Moderate High

Importance to the Company Director Zhai Jian Male Bachelor's degree

Environmental Dimension Social Dimension Governance Dimension

Director Gao Yan Male Master's degree

ESG Issues with ESG Issues with Moderate ESG Issues with Low

High Materiality Materiality Materiality Independent

Director Bao Huifang Female

Master's

Information security Business ethics Public welfare degree

and privacy protection Employee rights and interests charity Independent Bachelor's

Product liability Win-win cooperation Climate change Director Liang Yanhua Female degree

Corporate governance Development and training

Green operation Independent Wu Yibing Male Doctoral Director degree

Importance to the Stakeholders

Moderate High19 Social Responsibility and ESG Management 20

Business ethics

The Company strictly abides by laws and regulations including the Company Law of the People's Republic of China The Company operates persistently with integrity and honesty having formulated internal policies and systems including

the Securities Law of the People's Republic of China and the Anti-Money Laundering Law of the People's Republic of the Anti-Fraud Regulations the Code of Integrity and Honesty and the Gift Acceptance of Policy. Together with the Code

China and adheres to business ethics in daily operation and external cooperation. In doing so the Company strives of Ethical Business Conduct they frame the Company's code system of business ethics. Meanwhile the Company's Audit

to effectively control risks and creates a clean business environment to ensure the stable healthy and sustainable Department will revise or update policies and systems related to business ethics as necessary according to updates to

development of the Company. laws and regulations business development and risk assessment. The Company takes zero-tolerance attitude towards any

breach of business ethics and explicitly prohibits any form of integrity violations including corruption and fraud. In addition

the Company also sets out the four prohibitions of the integrity code that all employees must comply with:

Enhancing management system

The Company strictly abides by anti-unfair competition anti-bribery and anti-corruption laws and regulations of the

places where the Company operates including but not limited to the Anti-Unfair Competition Law of the People's

Republic of China and the Interim Provisions on Banning Commercial Bribery. The Company also formulates internal

policies and management systems based on business ethics standards and keeps refining the business ethics

management system so as to create a sound business environment.

1 Prohibition of accepting bribes kickbacks or

The Company has developed and released the Code of Ethical Business Conduct for G-bits Network Technology soliciting bribes;

(Xiamen) Co. Ltd (hereinafter referred to as "Code of Ethical Business Conduct") which covers anti-corruption and

anti-bribery intellectual property rights and information privacy conflicts of interest anti-fraud fair employment

discrimination and harassment anti-unfair competition and the prohibition of insider trading etc.. The Code of Ethical

Business Conduct is applicable to all directors management and employees (full-time and part-time employees 2 Prohibition of committing fraud;

consultants or those working for the Company on a temporary basis including contractors and interns) of the Company

all subsidiaries and related entities. Besides our suppliers contractors and other business partners must comply with

the Code of Ethical Business Conduct when providing goods and services to the Company or conducting businesses

(such as business negotiation and contract signing) on behalf of the Company.Prohibition of misappropriating or

A robust supervision mechanism is necessary for the effective enforcement of the Code of Ethical Business Conduct 3 transferring the Company's interests;

to address business ethics risks. The Company's Audit Department regularly reviews compliance operations and

fulfilment of the Code of Ethical Business Conduct under the guidance of the Audit Committee and performs business

ethics audits of the Company and all its subsidiaries once every three years which covers all business operations.

4 Prohibition of leaking confidential information and transferring benefits.

Board of

Directors

Audit Committee As a member of the Trust and Integrity Enterprise Alliance G-bits actively

participates in training and industry exchange meetings organized by the

Alliance and participated in five such training sessions and meetings in this

G-bits actively participated in

year. Besides G-bits are constantly learning from external anti-corruption

governance and audit experience to gradually improve our integrity culture such training sessions

Audit Department and anti-fraud system thus optimizing internal control systems and processes.

5

Moreover we strive to build a fair just and open cooperation platform and and meetings in this year

environment.21 Social Responsibility and ESG Management 22

Maintaining clear reporting channels Strengthening business ethics awareness

The Company has established a comprehensive reporting process clearly specifying the mechanism for protecting The Company focuses on daily integrity promotion and conducts business ethics training for new employees. After the

whistleblowers in the Code of Ethical Business Conduct and the Anti-Fraud Regulations to fully safeguard the training employees will be assessed to ensure that they are well aware of the Company's current policies systems and

legitimate rights and interests of whistleblowers from any infringement. The Company has authorized the Audit requirements on business ethics. In the year all employees of the Company (full-time and part-time employees interns

Department to conduct dedicated investigations into corrupt practices and report directly to the Board. The Audit and contractors) participated in business ethics training and more than 800 people (including interns) signed the Letter

Department gives top priority to the confidentiality of the reports and personnel of the department shall sign the of Commitment to the Integrity and Honesty of Employees.confidentiality agreement when they join the Company. The agreement requires absolute confidentiality of the

whistleblower's personal information and all the reporting materials during processes of acceptance registration To build a strong culture of integrity and support integrity operations we have tried different ways to raise our

storage and investigation. In the event of a breach of confidentiality such as the leakage of whistleblower's information employees' awareness of business ethics integrity anti-fraud anti-bribery and anti-corruption. In particular we

the Company will strictly and seriously punish the person held responsible for the incident. And any act that constitutes regularly send routine integrity promotion emails to all employees including integrity promotion emails during festivals

a violation of the law shall be subject to prosecution for criminal responsibility. and case sharing emails on International Anti-Corruption Day and all these efforts can help employees better

understand why complying with the Company's code of business ethics matters.The Company strictly prohibits any employee from retaliating against the whistleblower in any form. If the whistleblower

suffers retaliation in any form and to any degree he/she can report it to the Company's Audit Department immediately

and we will determine whether to refer the matter to a judicial authority depending on the severity of the case. In cases

of corruption or fraud that have been verified a corresponding cash reward will be given to the relevant person or Promoting supply chain integrity

whistleblower according to the system.A transparent supply chain system is a key element in the long-term development of enterprises. For this reason the

Reporting process and management Company has developed and released the Code of Integrity and Honesty and is working with its suppliers and other

partners to build a clean supply chain ecosystem and a business environment that advocates cooperation with integrity

Assessment Report Investi- Investi- Acceptance and and gation Case Follow-up

and honesty.Filing

of reports registration gation summary reports handling processing We have a unified supplier admission standard which stipulates specific onboarding requirements for different

suppliers. Apart from qualification and competence we also assess suppliers' performance in business ethics and

We have established multiple public reporting channels including telephone email postal mail and the Intranet to integrity. Supplier candidates who apply for the entry into the resource library must read the Code of Integrity and

facilitate joint supervision from both internal and external parties: Honesty before submitting qualification materials for review. While those included in the resource library will be notified

of integrity cooperation by letter on an annual basis. This year the Code of Integrity and Honesty was read more than

1300 times and a total more than 2700 letters were sent. And all our suppliers participated in the business ethics

training.E-mail for reporting: jubao@g-bits.com The Code of Integrity and Honesty was read Notified letters of integrity cooperation

more than were sent

Tel. for reporting: +86 182 5071 2733 1300 times 2700 times

Mailing address: Audit Department of G-bits

Building No. 4 Wanghai Road Software Park To ensure integrity and fairness in cooperation with suppliers we specify integrity

Phase II Siming District Xiamen clauses in each contract along with the channels for reporting commercial bribery.And fraud bribery corruption and other forms of ethical misconduct are strictly

prohibited. Suppliers are prohibited from giving or offering gifts items or kickbacks

Online report platform or taking or attempting to take any other disguised action directly indirectly or

under any guise to provide improper benefits to our employees. However suppliers

can report any breaches of integrity by relevant personnel of the Company using the

appropriate channels.To better prevent and detect fraud risks the Company's Audit Department is authorized to conduct fraud investigations

as part of its routine work in addition to collecting internal and external reporting information through whistleblower Employees who are confronted with a direct indirect or attempted bribe from a

channels and any findings are reported directly to the Board of Directors. This year the Company carried out anti- supplier or other partner must refuse and make it clear that such behavior is a

fraud investigations in three audit projects and no significant corrupt practices were detected. serious breach of the Company's requirements for integrity cooperation.IV

Product Empowerment

The Company adheres to the concept of player-centricity focusing on high-quality content creation research and

development and is dedicated to creating a vibrant enjoyable and entertaining gaming world for players. We

believe in the power of products. By skillfully integrating traditional cultural elements into the game design we

show the unique charm of Chinese culture so as to promote Chinese culture with all our heart and tell a good and

elaborate Chinese story. In addition in order to create a good atmosphere for innovation and R&D the Company

deeply implements the protection of intellectual property rights adheres to the respect and protection of R&D

achievements and continuously creates positive value for the industry and society through innovation.Player-centric approach

Promoting Chinese traditional culture

Intellectual property protection

Exploring technological frontiers25 Product Empowerment 26

Player-centric approach Case: The Conference on AskTao Mobile

In May 2023 the annual AskTao Mobile Conference was A total of

The Company believes that creating a quality gaming experience for its players is the key to success. The Company successfully held as scheduled. The event aimed to foster

actively responds to their demands and continues to optimize their experience. Simultaneously we have an in-depth communication with players of AskTao Mobile understand 1250 individuals

insight into the needs of game enthusiasts demands and market trends and create various unique game products to their actual needs and iterate the game based on their core registered for the offline event

meet the demands of the majority of players. requirements. A total of 1250 individuals registered for the offline

event reaching an online audience of 103.4 thousand users. Reaching an online audience of

Eventually 51 player representatives were invited to attend the

offline event. During the conference these player representatives 103.4 thousand users

Valuing the gamer experience expressed their views on 102 topics and through a voting

process 10 key issues were selected to guide the optimization

direction for AskTao Mobile in the upcoming year.The Company insists on the concept of "Serve as the Official Companion by the User's Side Creating an Exceptional

Service Experience" for a long time and is committed to providing professional efficient and satisfactory game

experience. This year in addition to adding game communities conducting player research visiting gamers of various

ages and locations The Company has also repeatedly organized face-to-face communication and offline events to

listen to players and determines game optimization and iteration direction based on players' demands.Case: Engage in face-to-face activities to listen to players' feedback

AskTao Mobile Conference Issues of the Conference

The Company attaches importance to player feedback and suggestions invites players and KOC (Key Opinion Case: National Competition of AskTao Mobile

Consumer) to participate in face-to-face activities communicates with the official development planning team

and operation team of the game on the spot and discusses issues such as the development direction and game

experience optimization of the game. The 2023 National Competition of AskTao Mobile concluded successfully on 16th December. During the

competition we established unified criteria for levels morals and martial arts. All participating players started

from the same point and the ultimate champion was determined through score matches elimination rounds

and offline finals. The live broadcasts and videos related to this event reached a total of 5.33 million views with

the official online live broadcast accumulating 190.9 thousand views.The live broadcasts and videos related to this The official online live broadcast

event reached a total of accumulating

5.33 million views 190.9 thousand views

In June 2023 Face-to-face activity of In September 2023 Face-to-face activity

players of AskTao Mobile of players of YiNian XiaoYao

2023 AskTao Mobile National Competition27 Product Empowerment 28

User communication and services

In order to ensure the high quality of the game experience and respond to the needs of the players in time the

Company has established internal user service systems such as "Leiting Customer Service Group Specification"

"Leiting Customer Service Review System" and "Quality Inspection Work Mechanism". In the design process of the

user service system we have followed the COPC3 standard established effective and fast user feedback mechanism

and diversified communication channels such as online interaction work order acceptance hotline answering user

visit reception to continuously enhance the user service capacity.In addition in order to improve the quality of customer service the

Company has established a service quality inspection mechanism to

analyze guide follow up and check the defects found in the inspection

process. Simultaneously the Company conducts regular training for

customer service personnel and holds monthly service case meetings to

share typical common and outstanding cases. Through this we set user

service optimization goals and elevate the team's service proficiency. This

year the Company was awarded the honorary title of "Top Ten ODR (Online

Consumer Dispute Resolution) Enterprises" by the Xiamen Consumer

Rights Protection Committee and our high quality customer service has

been recognized by others.The "Chinese-inspired Fashion" featuring traditional Chinese colors patterns and costumes in AskTao Mobile

Promoting Chinese traditional culture

Culture is a valuable treasure created accumulated and inherited by human society throughout its long-term Integrating ancient intangible culture heritage:

development. The Company insists on cultural confidence actively explores the method to integrate game products crafting a Qixi Festival velvet flower gift box

with Chinese traditional culture and is dedicated to promoting Chinese culture to users both domestically and

internationally.As the Qixi Festival approaches AskTao Mobile collaborates with Mr. Zhao Shuxian an intangible cultural heritage

inheritor of the craft of velvet flowers to jointly create a Qixi Velvet Flower Gift Box. This unique gift box transforms

Tapping into the charm of traditional patterns and lilies symbolizing friendship in the game into everlasting velvet flowers. By leading players to experience a unique

colors Disseminating the aesthetics of Chinese costumes oriental romance while conveying blessings it aims to promote the protection inheritance and innovation of the intangible cultural heritage craft of velvet flowers.In early 2023 AskTao Mobile collaborated with China Academy of Art to

create digital costumes with oriental colors in the game with "traditional

Chinese patterns and colors" as the main axis showing the charm of

the disappearing traditional Chinese patterns and colors through digital

methods. The creation and production team went deep into Luoyang

Guilin Beihai Huangshan and other places to observe how traditional

Chinese patterns and colors look like in nature and incorporated them

into the design of the game's costumes which ultimately presented the

"Chinese-inspired Fashion" in the game. The Interaction explores the

contemporary application of traditional culture expresses the integration

inheritance and innovation of excellent traditional Chinese culture in digital

form disseminates traditional Chinese color pattern and dress aesthetics

and promotes cultural self-confidence and self-strengthening.

3 COPC (Customer Operations Performance Center) is a global business management and certification standard designed to help Together with Mr. Zhao Shuxian AskTao Mobile collaborates in Velvet flower made by ancient intangible

organizations deliver superior user service and operational performance. crafting a Qixi Velvet Flower Gift Box culture heritage29 Product Empowerment 30

Implementing intangible culture heritage protection

projects public welfare projects

In 2023 YiNian XiaoYao started the cultural public welfare project of "Guarding and Inheriting" dedicated to promoting

traditional intangible culture heritage projects into daily life. This year has witnessed the successful implementation

of various intangible culture heritage public welfare activities including Cuju paper-cutting opera shadow play and

more with a cumulative donation amount exceeding RMB 400 thousand. In the future YiNian XiaoYao will continue to

promote the integration of intangible culture heritage culture and games allowing more young people to understand

and appreciate traditional culture.Traditional Style Limited Paper-cut Skin Ms. Yang Huizi paper-cut heritage artist

Protecting and Inheriting - Cuju Culture

Protecting and Inheriting - Opera Culture

In order to promote the Intangible Cultural Heritage of Cuju YiNian XiaoYao together

with Mr. Ma Guoqing (the first batch of inheritors of intangible cultural heritage of the In order to pay tribute to the traditional Chinese opera culture Yi Nian Xiao

State) and Mr. Yu Jian (the inheritor of intangible cultural heritage of Cuju production Yao inspired by the classic style of Peking opera Mu Guiying's Leading

skills) went to Fayi Primary School in Chuxiong Prefecture Yunnan Province with the The Company Role presents the theme costume "Ode to Chellona" in the game and

gamers to lead the children to learn and personally make Intangible Cultural Heritage donated to the Qi invites Mr. Li Xin an intangible cultural heritage craftsman specializing in The Company donated RMB

Cuju and held a special Cuju friendship match after the completion of the production Culture Museum RMB helmet-making. This initiative aims to immerse the younger generation

which successfully completed the study tour. In addition the Company donated to the 100 in the beauty of traditional Chinese opera culture. After the event the 100 thousandQi Culture Museum RMB 100 thousand for excavation and dissemination of intangible thousand Company donated RMB 100 thousand to Beijing Cultural Development to Beijing Cultural Development

cultural heritage Cuju. Foundation for the protection and dissemination of traditional operas. Foundation

Theme fashion of "Ode to Chellona"

Cuju competitions

Protecting and Inheriting - Paper-Cutting Culture Protecting and Inheriting - Shadow Play Culture

In order to help more young people understand and

In order to show the unique charm of Chinese paper-cut culture YiNian XiaoYao appreciate the shadow play culture YiNian XiaoYao

introduced the in-game "Traditional Style Limited Paper-cut Skin" and invited Ms. inspired by the traditional shadow play introduced the in-

Yang Huizi an artist of paper-cut heritage to create paper-cut works of Ling Rabbit

based on the prototype of the "Yue Ling Rabbit" in the game through which the A donation of RMB

game accessory "Earrings · A Dream of Light & Shadow

Play" and produced theme content of intangible culture

ancients' pursuit of beauty and love for life are expressed. The Company remains heritage shadow play. The Company donated RMB 100

dedicated to the preservation and promotion of paper-cutting culture. As part of the 100 thousand thousand to Chengdu Shadow Play Museum for the

"YiNian XiaoYao Guardian Inheritance" cultural public welfare project a donation was made to the Yangzhou inheritance and development of shadow play.of RMB 100 thousand was made to the Yangzhou City Intangible Cultural Heritage City Intangible Cultural

Protection Center (Yangzhou City Museum of Culture) to support the inheritance and Heritage Protection Center The Company donated RMB

development of paper-cutting culture as well as to enhance the skills of intangible (Yangzhou City Museum

of Culture) 100 thousand Intangible culture heritage shadow play theme contentcultural heritage workers.to Chengdu Shadow Play Museum31 Product Empowerment 32

Protecting intellectual property

The Company strictly complies with the Patent Law of the People's Republic of China the Trademark Law of the

People's Republic of China the Copyright Law of the People's Republic of China and other relevant laws and Case: Comprehensive criminal crackdown on the black and gray

regulations formulates the Administrative System for Intellectual Property the Administrative Measures for Copyright game industry chain

the Administrative Measures for Patent the Administrative Measures for Trademark the Administrative Measures

for Domain Name and other internal systems regulates the work relating to the administration of intellectual property Upholding a highly responsible attitude towards players and the game market the Company assisted the police

protection builds a robust intellectual property system and provides all-round protection for products. This year the in cracking 20 criminal cases one after another against violations of criminal acts such as game private servers

Company was honored with the title of "National Intellectual Property Advantage Enterprise" by the China National cheats unauthorized charging illegal trading of game accounts. The actions led to the arrest of 167 suspects

Intellectual Property Administration. and the implementation of criminal measures. Notably in the field of private servers the Company cracked down

In terms of the prevention of infringement upon others' intellectual property rights the Company has implemented on and closed 102 such servers involving a total sum exceeding RMB 200 million this year. Simultaneously the

a Business Compliance Self-inspection List studied the originality of the works in terms of font picture music and Company continued to dig deep into the whole chain of black and gray market expanding the radiation surface

screen strengthened the compliance risk inspection of publicity and promotion materials such as graphic and text of the rights protection and crackdown including the third-party illegal charging the fourth-party payment

contents and video materials and reduced the possible infringement upon intellectual property rights by the Company. platforms source code websites and other upstream and downstream of the black and gray production.Meanwhile typical cases discovered through "self-inspection" and "traceability" are shared within the Company in the

form of article push to further strengthen employees' awareness of Intellectual Property Compliance. In January 2023

In terms of safeguarding its intellectual property rights against infringement the Company continuously improves

its monitoring capacity realizes the coverage of the whole platform of independent monitoring network conducts The Company cooperated with the Public Security Bureau of Wuyi County Zhejiang Province and

infringement investigation through the monitoring system timely discovers infringement acts orders infringers to stop successfully cracked a surrogate charging case that utilized the loophole of Apple system recharging to

infringement shortens the handling cycle of infringement by means of sending letters warnings complaints and so on maliciously steal and swipe arresting five suspects and seizing a number of computers cell phones bank

removing infringing materials and products in a "short and quick" manner. This year the Company has continuously cards and other items involved in the case with the funds involved amounting to more than RMB 2 million.optimized the quality and efficiency of the monitoring and complaint handling of infringement incidents. This year the

Company continued to optimize the quality and efficiency of its infringement monitoring work and complaint handling

work and the number of external infringement links monitored and complaints handled for the year totaled 564412 a From February to December 2023

year-on-year increase of 837.8%.The Company cooperated with the public security bureaus of Zhejiang Hubei Hunan Shandong and other

places to successfully crack a number of cases of copyright infringement of AskTao Mobile with more than

The number of external infringement A year-on-year one hundred suspects arrested and a total amount exceeding RMB 100 million involved in the case. This

links monitored and complaints handled increase of cooperation strongly deterred the arrogance of the lawless elements practically protected the interests of

for the year amounted to the players and legitimate rights and interests of enterprises' intellectual property rights.

564412837.8%

The Company continued to deepen the work of intellectual property

rights protection and crackdown. This year the Company carried

out a number of special actions to "combat intellectual property

rights infringement" cracked down on the infringement of intellectual

property rights such as gaming private servers cheats trademark

infringement software copyright infringement phishing websites

unfair competition etc. and took a variety of measures to protect

the intellectual property rights of the Company's products vigorously

pursue brand rights protection.33 Product Empowerment 34

Exploring technological frontiers

Case: Breakthrough in civil rights protection against new types

of infringements In recent years the rapid development of Artificial Intelligence (AI) technology has brought great opportunities to the

game industry and AI technology will become an important part of the content productivity of the game industry in

the future. The Company is gradually integrating AIGC and other cutting-edge technologies into the development and

In March 2023 the Shenzhen Intermediate People's Court issued a judgment in the case of Leiting Game v. Xue operation of its game products with the aim of improving R&D efficiency and optimizing the game experience. In terms

and Zhejiang Taobao Network Co. Ltd. for infringement of the software copyright of Tale of Immortal. Xue was of image generation for game products the Company utilizes AI image generation technologies to generate original

the actual operator of the Taobao online store "Tom Game" which sold Steam offline accounts including Tale of art drawings and in-game icons which saves time and resources for image production and improves the efficiency of

Immortal operated by Leiting Game. The court determined that Xue's profitable sale of Steam offline accounts game art creation. In addition the Company strives to advance the use of algorithmic modeling and other technological

without Leiting Game's permission constituted an infringement of Tale of Immortal's copyright. Xue was ordered tools (such as AIGC) in its operational business to further improve operational efficiency.to pay RMB 200 thousand in compensation for Leiting Game's economic losses and RMB 51300 to cover

reasonable expenses for the defense of its rights. This is the first case in judicial practice that confirmed that In 2023 the Technology Center built an AI Web Hub within the Company assembling various commonly used AI

selling offline versions of games and accounts constitutes intellectual property infringement which has positive mapping tools and models to promote the rapid application of AI mapping in the Company's game development

significance and far-reaching impact on the protection of intellectual property rights in the game industry. process.In order to make better use of AI technology to produce high-quality games the Company periodically organizes AIGC

application experience sharing sessions technical exchanges meetings and other activities.In order to strengthen the awareness of the importance of intellectual property protection among all employees the

Company actively conducted intellectual property advocacy training such as "AIGC4 Compliance Lecture" and "The Pit

of Copyright Infringement Legal Affairs Teaches You to Avoid" this year synchronously sharing the latest regulatory

requirements and law enforcement dynamics and advocating at all times that the employees should protect their own Case: G-bits AI Programming Game Contest

work achievements and legally comply with the use of third-party intellectual property rights in daily work.The Company encourages continuous innovation among its employees and is committed to increases investment

in research and development. This year the Company filed 8 new patent applications and obtained 5 new patent

This year we launched the AI Programming Game Contest for all programmers and game enthusiasts in the

authorizations. As of the end of the Reporting period the Company and its subsidiaries have secured 17 invention

Company. Participants used the GS language code developed by the Company's technology center to create

patents (with 18 invention patents still under review) holding 1074 registered trademarks 270 software copyrights 56

AI-controlled game characters which learnt independently according to the programming instructions cleared

art copyrights 3 music copyrights 1 text copyrights as well as 131 domain names.the game levels and completed the actual combat duel. Through the duel and collision of the competition the

participants gained a deeper experience of the application of AI technology in game creation.Have secured With Holding

17181074270

invention patents invention patents registered trademarks software copyrights

still under review

as well as

5631131

art copyrights music copyrights text copyrights domain names

4 AIGC Artificial Intelligence Generated Content refers to AI automatically created and generated content. AI Programming Game ContestV

Data Ecological

Protection

In order to create a safe healthy inclusive and friendly network environment the Company actively

strengthens the ecological governance of the contents assumes responsibility for the protection of

minors constantly improves the protection system for minors and supports the healthy development of

minors. At the same time we are fully aware of the importance of data security and privacy protection

for users strengthen data protection capacity in the full life cycle of data and at various stages of the

product continuously improve upon data security management mechanism strengthen risk prevention and

contingency measures and protect user data and privacy.Content ecological governance

Data security management

Protection of minors37 Data Ecological Protection 38

Content ecological governance

Content compliance training for publications Compliance editing and testing

In the era of rapid digitization as we strive to deliver an enjoyable gaming experience for users we are dedicated to Based on con ten t cons t ruc t i on and i n The Company formulates compliance testing

fostering a clean gaming environment. Our goal is to establish a trusted and responsible gaming products for players. combination with the requirements of laws process for game products. All products and

regulations and moral norms relating to online versions must undergo multiple tests including

and digital publishing the Company conducts content compliance privacy compliance data

various content compliance training programs security and information security. They can

Game content review to enhance the responsibility awareness among only be announced or released to the public

all employees. Except for full-time publishing after successfully passing these tests. We have

and editing the Company shall vigorously formulated relevant standards for websites

The Company strictly adheres to the Provisions on the Administration of Online Publishing Services the Notice promote editorial education and cultivation in forums advertisements and other content and

on the Administration of Mobile Game Publishing Services the Provisions on Ecological Governance of Network product research and development promotion implemented multi-level review requirements

Information Content and other laws and regulations formulate the Content Editing and Review System the Online and operation stages enhance integrated full- to ensure that the content released by platform

Editing and Content Self-Review System the Game Operation and Content Self-Review System and other internal time and part-time education for editors ensure players is manageable and controllable. The

systems. These internal mechanisms regulate the Company's compliance review of game content at an institutional that the relevant personnel are responsible for Company conducts regular and irregular

level. The Company diligently enforces the editorial responsibility system and the requirements for content review and content compliance review at all stages from content self-inspections special verification and

proofreading. The scope of relevant reviews encompasses the entire lifecycle of both R&D and operational products project initiation of the product to publishing of other activities. We inspect and follow up the

guiding the Company's products into a virtuous cycle of high-quality development. the game ensure compliance of the contents of compliance of product content after the launch

the publication. and strengthen the supervision over published

products.39 Data Ecological Protection 40

Game content ecological governance Data security management

The Company strictly adheres to the Cybersecurity Law of the People's Republic of China Law of the People's

Republic of China on the Protection of Minors Law of the People's Republic of China on the Protection of Personal At G-bits security and compliance constitute the fundamental principles of our business. In our journey of R&D and

Information the Administrative Measures for Internet Information Services the Provisions on Ecological Governance innovationG-bits consistently prioritizes users' demands and expectations regarding data security placing utmost

of Network Information Content and other laws and regulations builds a work system for ecological governance and emphasis on user and data security. While building and improving our own security management system we also

security of game content. We strengthen the ecological regulatory process for content standardize the development of put efforts to strengthen the data security management capabilities of our partners to help build a security ecosystem

security platforms and improve the platform's collaborative efficiency and risk prevention capacity. across the industry.In order to build a strong security line and resist undesirable content the Company has established complaint and

reporting channels including in-game customer service public number of player service complaint mailbox complaint

website and player service hotline. Simultaneously various methods such as content security platform audit and

manual reviews are employed. Through the implementation of dynamic management the Company aims to create a Data security management system

clean online environment.Content ecological governance system In addition to upgrading the data security management system G-bits has also formulated and optimized internal rules and policies and established a special working group to strictly manage suppliers' data security so as to effectively

reduce data security risks.Top-level design and team development

The Company has established an information content security management group led directly by the Data security management mechanism

General Manager's Office coordinating work across various products and technical departments to improve

the top-level design of the Company's compliance system.Strictly observing the Cybersecurity Law of the People's Republic of China the Data Security Law of the People's

Republic of China and other laws and regulations the Company has developed and updated policies covered all

Normative content ecological governance system relevant business lines including the Security Protection Requirements for Key Information Infrastructure of Information

Security Technology the Guidelines for Filing Standard Contracts for Cross-border Transfer of Personal Information

the Management Measures for Compliance Audit of Personal Information Protection the Network Information Security

The Information Content Security Management Group promotes the establishment of various work norms

Management System and Technical Protection Measures the User Information Security Management System

and internal systems such as the Administrative Measures for the Information Security Assessment of New

the License and User Agreement for G-bits Games and the Website and Network Security Prevention Measures.Internet Technology and Business the Measures for the Operation of Strategies for the Hierarchical and

These policies clearly define the rules for collecting processing and protecting users' personal information and lay

Categorized Management of the Ecological Governance of Network Information Content the Self-review

institutional grounds for pre-event prevention in-event monitoring and post-event follow-up.System for Game Operating Content the Self-review System for Online Editing Content the Follow-up

Comment and Content Ecological Management System to strengthen internal constraints. The Company has set up a special security leadership team for network security headed by the CEO with relevant

business leaders and senior technical engineers tasked with guiding and coordinating data security work under him.Staff from the Security Department Operation and Maintenance Department Platform R&D Center and Information

Technology Center comprise the Network Security Execution Management Department working together to develop

Special promotion and optimization of tool construction and implement data security control strategies and protect the Company's data security. The team members are highly

professional and hold authoritative certifications in the information security sector such as Certified Information Security

Continuously enhance the construction of content security platform tools. Currently the image recognition Professional (CISP) Certified Information Security Assurance Worker (CISAW) and Network Communications Security

systems have been implemented across relevant business areas of the Company. Simultaneously internal Administrator.early warning and relevant tools shall be prepared in advance. The Company has set up special emergency

response personnel to be on duty around the clock to respond to various emergencies improve the efficiency

of emergency drills and the emergency response capacity of the Company carry out special resumption

optimization on a regular basis and further build a firewall for the information security of the platform.41 Data Ecological Protection 42

Supplier data security management Data lifecycle management

For the information security management of suppliers the Company has formulated the Management Measures

for Third Party Network and Information Security and has established a supervision and management mechanism For network security G-bits strictly complies with the Management Measures of Personal Information Protection

for supplier data security risks. We strictly provide suppliers with data beyond the contractual purpose and scope the Data Security Protection Management Policy the Data Classification and Grading Policy the Data Security

supervise their reasonable use of data and incorporate data security management requirements into supplier Management Measures the Data Collection Security Management Policy the Data Storage Security Management

admission cooperation audit and withdrawal processes so as to strengthen the security availability and confidentiality Policy and other internal regulations. Based on these we have established a data protection system with classified

of suppliers' data services. and graded user data and three lines of defense holding fast to the red line of user data privacy protection.Conduct background investigation and security qualification review comprehensively Three lines of defense

evaluate the candidates' data security capabilities and select suppliers with better data

security performance after evaluation.To guarantee data security the Company has built up three lines of defense and established appropriate and effective

Supplier internal data management policies and processes for data lifecycle management protecting the security of users'

Admission privacy and data with concrete actions.Sign the data security agreement or security responsibility commitment letter with the

supplier specifying the supplier's data access security responsibilities and necessary

security protection measures as well as responsibilities and penalties for violations;

Manage the supplier's data access account assigning job responsibilities and account

privileges based on the "minimum" principal; The first line of defense The second line of defense * The third line of defense

"defense-in-depth system in "security monitoring and attack/ "security test and audit"

Control and manage key processes where the suppliers are involved such as layers" defense drills"

Supplier debugging of collection system interfaces desensitization and destruction of sensitive

Cooperation data. The Company has formulated The independently developed We regularly organize security

appropriate management and security inspection system tests and audits on data

technical solutions for the regularly and automatically security protection work for

network host and application scans the Company's supervision purposes. The

Define audit requirements for the security of software development kits (SDKs) systems respectively such business systems for security Audit Department also conducts

conduct regular security tests on existing suppliers and their business partners and as physically isolating the vulnerabilities which maximizes specialized audits to check the

monitor potential risks in the supply chain; core network segments from the exposure of security effectiveness of the first and

other networks; deploying self- vulnerabilities in business second lines of defense and

Conduct third-party security assessments of purchased systems identify product developed intrusion detection systems and shortens the time urges the relevant execution

vulnerabilities via attack & defense and require suppliers to correct security issues suite on host systems for window for detecting security departments to rectify any

identified. For suppliers who still fail to meet the Company's requirements after periodic security scanning vulnerabilities. Additionally we problems detected in a timely

remediation the Company will terminate its relationship with them. Even after the and baseline checks; strictly conduct regular penetration manner.Supplier purchased system goes live the Company will also continue to track its vulnerabilities controlling access by third-party attack tests and organize

Audit and include the system in the regular security inspections and manual penetration applications and installing WAF company-wide network security

tests assessing the security of the system continuously and comprehensively. (Web Application Firewall) drills including but not limited

anti-DDoS (Distributed Denial to phishing emails network

of Service Attack) and other attack & defense to effectively

products to reinforce security raise all employees' awareness

The Company undertakes a range of initiatives to minimize the risk of data security protection for the Company's of security.breaches including detailed reviews and assessments secure destruction or return of applications and systems.data recovery of all access rights and related resources and audits of vendor logs and

usage records.Supplier

Withdrawal43 Data Ecological Protection 44

A holistic approach to data security Network communications

The Company manages data by its category and materiality and stipulates security strategy on specific data group. Different network segments are divided based on actual business needs and security levels and the core network

The Company encrypts the operational data of games including the private data of players the business data of segments are physically isolated from other networks to strictly control access of equipment to the network. Firewall

games; and strengthens authorizing management of office operational data including game code data and general is also deployed at the network boundary and security policies are configured in the firewall to detect abnormal

office data. And the code data of core projects is confined within the production of the Internet R&D. In addition the behaviors. For highly reliable network attacks corresponding network communication will be directly blocked by the

Company has stepped further to improve the safety management throughout the data lifecycle. Through this holistic device. The production network on the public cloud uses security groups and elastic networks provided by the cloud

approach G-bits has managed to decrease the safety risks of the internet information by strictly standardizing the data service provider to effectively control network traffic.management in all sectors including data collection transmission processing storage usage and destruction.Host devices

Data Collection Before being installed all devices within the Company undergo baseline configuration. In-office mainframe equipment

is only allowed to connect to the network after ensuring the successful deployment of host security protection and data

The Company rigorously adheres to the national standard of Information Security Technology - Basic Requirements leakage prevention software. Additionally in-office mainframe equipment deploys self-developed intrusion detection

for Personal Information Collection in Mobile Internet Applications (Apps)(GB/T 41391-2022) and strictly prohibits any suite and the host on the public cloud deploys the host security products of the cloud service provider. The intrusion

collection of service-irrelevant data resources and private information. Before collecting any user's personal privacy detection suite and the host security products periodically perform security scanning and baseline checking of the

data clear notification is provided specifying the data type purpose and destruction method. Additionally users are access devices.granted the right to independently access modify or delete their personal information. Adhering to the principle of

collecting user information on a legal open and minimal basis the Company minimizes the data collection and storage. Application systems

The Company strictly controls the security access of third-party systems. For systems that do not meet the security

Data Transmission requirements the supplier is required to make rectifications before launching. For the self-developed system the

Company formulates the corresponding security checklist while the R&D Department first carries out the security self-

G-bits attaches great importance to the confidentiality of the transmission. The Company has deployed anti-DDos inspection and the Security Department conducts a secondary security review of the self-developed system to improve

servers and WAP on the core systems and set flow surveillance and the early warning at the entry of the system. Once the security level of the application system and ensure the security of user data.the warning is triggered the system will identify it is caused by a hacker attack and intercept accordingly. The Company

ensures data safety intactness and confidentiality by encrypting the transmission channels and restricting accesses Data Usage and Sharing

when uploading the users' private data.The Company discloses the use purpose and method of the user's personal information in the user privacy policy limits

the use to the scope necessary for the operation of the product and obtains the consent of the player. At the same

Data Processing time the internal personnel of the Company must comply with the relevant rules when accessing data as follows:

The Company always removes sensitive individual information strictly limits the usage of users' information and Strictly controlling the retrieval and analysis of plaintext data a implementing a secondary encryption

collectively archives it after using. To better ensure the security of data processing the Company has set limits and obfuscation process to reduce data identifiability;

respectively on data access according to business workflow and positions maximizing the security of users' private data Restricting data access rights and keeping records of data access and data manipulation;

within the Company. For instance the R&D personnel in charge of coding encryption and decryption programs are denied

direct access to the encrypted database the key to which is kept by the O&M personnel. Separating the code from on-line environment by encrypting and storing all data in the database

which is only available at G-bits;

Data Storage Separating the data logic from keys by setting access limits according to positions and retraining the

R&D staff from accessing the on-line database;

Taking seriously the encrypted transmission storage of sensitive personal information and access control the All transmission of sensitive data require approval from the superior leader.Company adopted different storage strategies for different information based on types and privacy levels. To better

encrypt and store user data the Company has adopted the secure encryption algorithm and the key mechanism. The

encryption algorithm and keys are managed separately by different departments to ensure that the data cannot be Data Destruction

decrypted and analyzed by any single party.The Company complies with the process technical methods authority and retention of destruction records clarified

The Company has established a defense-in-depth system in layers to ensure the security of data computation in laws and regulations. For processed data the Company conducts regular checks destroys and anonymizes if

processing and storage. necessary securing the holistic approach for data security management.45 Data Ecological Protection 46

Data security monitoring and improvement Risk prevention and contingency plans

The Company has established the Network and Information Security Plan to enhance management of network

G-bits firmly believes that robust data monitoring serves as a cornerstone for ensuring data security and safeguarding and information security emergencies. We have clarified personnel in charge at all levels to effectively prevent and

personal information. Through compliance inspection security audit on internal and external data risk prevention control information security emergencies and minimize corresponding impacts guaranteeing the stable operation of

and contingency plans a healthy and safe data environment has been established within G-bits with security risks information systems and networks. We also require all department to complete periodical off-site and off-host backup.prominently lowered. For the primary backup room the Company implements periodically the logic back-up of the user core data. The

encrypted data is synchronously updated to and stored in other machines. Meanwhile it is stored in the cloud database

to prevent data damage and loss.Conducting specific compliance inspections

The Company also stipulates that all system users must perform operational tasks by logging into the host system

To better consolidate users' data security the Company abides by the Cybersecurity Law of the People's Republic through a bastion host and using multi-factor dynamic code authentication to ensure the authenticity of their operations.of China the Data Security Law of the People's Republic of China and the Personal Information Protection Law of The bastion host records and captures the actions of system users conducting security checks across various layers

the People's Republic of China. In 2023 the Company accomplished the specific compliance audit on the internet such as network system applications and databases. The records are stored in real-time on separate machines

data security and application in telecommunication and internet industry in Shen Zhen conducted by Shen Zhen ensuring that users or administrators cannot arbitrarily tamper with or delete audit logs providing authenticity

Communications Administration. The audit targeted at the security system of the internet and data internet security assurance for subsequent security audits and event tracing.protection and protection of the data security and personal information. The Company also employed a third party

for the on-site specific audit. The party conducted security inspection throughout the data lifecycle by scanning code

the sensitive data and loopholes of the interface and the safe storage of the data before recognizing and diffusing the Development of data security awareness

security risks.The Company conducts specialized security training for employees from different stages different departments and

In terms of data security compliance management of suppliers the Company regularly conducts security reviews of its different positions to continuously strengthen the data security awareness of all employees. For new employees the

suppliers and continuously pays attention to the status of systematic compliance audits conducted by itself. The aim Company disseminates information security awareness through promotional emails utilizing scenarios cartoons and

is to examine that whether it aligns with the relevant laws and regulations and the contract requirements. During the security principles to convey knowledge on information security. Additionally for all employees and suppliers the

Reporting Period the purchased public service system of Alibaba Cloud had passed the independent third-party audit Company's internal online learning platform has launched the "Information Security Awareness Training" video course.which was performed strictly in accordance with the ISO20000 and ISO27000. After the audit the third party released This initiative guides all employees as well as suppliers to learn the training content related to the information security

the Report on Alibaba Cloud System and Organization Control 2 (SOC2). anytime and anywhere.To consistently raise employees' awareness of data security the Company holds regular training related to data

Conducting internal and external security audits security. Additionally it encourages employees to participate in external training on data security. During the Reporting

Period 10 technical training sessions were conducted independently within the security department covering the

To better identify data security risk and evaluate the data security management attack and defense of security technologies and vulnerability mining.mechanism the Company conducts internal data security audit on an annual Additionally to help employees develop healthy mindset of the internet security and urge them comply with the internet

basis. The Company urged the relevant executive department to rectify the security principles the Company conducts related training regularly. During the Reporting Period the Company carried

exposed loopholes. During the Reporting Period the Security Department out 2 thematic trainings on email security Trojan Attack and other topics; at the same time the Company carried out

and the Audit Department conducted four security audits. The content covered information security awareness promotion for all employees on a regular basis and carried out data security related

the inspection of system access control password policy and data backup. promotion in the employees' onboarding emails and real-time work communication tools.Furthermore we internally reviewed resource management version update

and data backup permission management to promptly identify potential security

hazards.Besides the Company actively conducts external independent audits. 10 technical training sessions were conducted

Annually the Company invites third-party assessment organizations to

conduct comprehensive audits including gap analyses on the physical security independently within the security department

environment secure communication networks and regional security boundaries.The security evaluation serves as a benchmarking comparing the internal Third level Security of

security management technology system with the best practices from peers the Information System Protection

general standard thus effectively improving the security level of the Company. Certificate The Company carried out

During the Reporting Period the core information systems of the Company

and its subsidiaries have been archived as the third level of protection of the 2 thematic trainings on email security

information system security. Trojan Attack and other topics47 Data Ecological Protection 48

Protection of minors Enhancing the Parental guardian Platform

Young people represent the future of the country and the Company attaches importance to the healthy growth of young The Company continues to enhancing the development of

people. Safeguarding the physical and mental well-being of minors is considered an indispensable responsibility of the a the parental guardian platform ensuring the supervision

Company. The Company rigorously adheres to the requirements outlined in the Law of the People's Republic of China of minors' gaming behavior. Upon linking a minor's gaming

on the Protection of Minors Cybersecurity Law of the People's Republic of China Regulations on Network Protection account parents will receive real-time SMS notifications

of Minors the Notice on Preventing Minors from Indulging in Online Games and the Notice of the State Administration for the minor's logins and in-game transactions.of Press and Publication on Further Strict Management and Effective Prevention of Minors from Indulging in Online Additionally they can easily enforce restrictions on the

Games Opinions of the State Council Leading Group for the Protection of Minors on Strengthening the Protection minor's account preventing gameplay and restricting

of Minors and other laws regulations and relevant standards. Continuous efforts are made to deepen the protection top-up activities. Concurrently the Company is refining

of minors by strictly implementing requirements such as real-name authentication and addiction prevention. The the customer service infrastructure addressing parental

Company consistently enhances age-appropriate notifications and content restrictions for games continually optimizes inquiries promptly. This initiative aims to acquaint parents

workflows and protective measures and advances the implementation of a dynamic inspection mechanism. with the platform's operational procedures and assist

them in configuring the minor mode across various mobile Parent guardian platform of Leiting Games

Enhancing the system for minors protection in online devices fostering the healthy growth of minors.games Unobstructed Channels for Minor Complaints and

The Company takes proactive steps to establish and refine the protection system for minors in online games improving Reports

the efficiency of both machine and manual identification. Strict measures are implemented to address issues like online

bullying and internet addiction preventing the dissemination of content that may be harmful to the physical and mental

well-being of minors including vulgar and violent material. Since the State Council's announcement of the Regulation The Company consistently intensifies efforts in safeguarding minors further refining the development of user service

on the Protection of Minors in Cyberspace in October 2023 the Company has organized multiple learning sessions areas and the mechanisms for complaints and reports. Dedicated channels have been established to facilitate minors'

to study the regulation's contents. Additionally the Company has aligned its work functions with the requirements of complaints and reports. The Company has made public a specific email address for complaints and reports related to

the regulation. This year the Company conducted 4 special clean-up initiatives focusing on topics such as student minors (gmweicn@leiting.com.cn) on the Leiting game website. Additionally a designated "Reports Involving Minors"

vacations online hostility and cyberbullying. Furthermore seven sessions were dedicated to optimize the strategies page/menu option has been set up on the official account of the Leiting Game Service Center on WeChat. This

for enhancing the protection system for minors. underscores our unwavering commitment to a "zero-tolerance" stance against issues that compromise the legitimate

rights and interests of minors. Concurrently we proactively adjust our focus on the protection of minors based on their

gaming activities implementing relevant measures promptly.Optimize the real-name authentication and anti-addiction system of the operation platform

Attach great importance to topics

involving minors and rigorously handle

Improve game-age- statements that violate regulations or are

Consolidate minors-related appropriate tip and

detrimental to minors;

complaint and reporting descriptions of game

channel Schematic content restrictions Age- Enforce strict limitations on minors using Diagram of the appropriate tip adult identities to participate in games

Protection System analyzing assessing and addressing

of Minors on the suspected minor accounts through

Leiting Games

Platform various channels;

Continuously update and iterate rules for

handling minor incidents to ensure that

the measures taken are compliant and

reasonable.Further upgrade parent guardian Improve the ecosystem governance capacity of the Guidelines for minors-related reporting on the

platform online information content official website of Leiting GamesVI

Talent Attraction

and Development

G-bits firmly believes that employees are the Company's most valuable assets. Embracing a people-centric

development philosophy we strive to create a diverse equal and comfortable working environment. We

have established a robust system to safeguard employee rights developed a competitive compensation

and performance system and built effective channels for communication. Additionally we provide

multidimensional employee benefits and humane care to enhance the happiness of each employee

laying a solid talent foundation for the Company's sustainable development. Simultaneously we consider

it our responsibility to facilitate the comprehensive development of our employees. Guided by the belief

in cultivating talents with an innovative spirit we have established comprehensive and diverse training

programs and talent development pathways aiming to grow together with our employees.Talent development plan

Protection of employee rights and interests

Maintenance of smooth communication channels

Employee benefits

Innovation in talent cultivation

Supporting employee development51 Talent Attraction and Development 52

Talent development plan Through diverse recruitment channels we strive to build a stage for the excellent players in the industry to bring out their talents. The Company has formulated internal management systems such as the Passing a Probation Period and

Management Measures. During the recruitment we follow the "open and fair merit-based selection process that targets

internal candidate first" and develop a specialized recruitment assessment tool. Excellent candidates who are in

G-bits has established a comprehensive and sustainable talent ecosystem aligned with industry trends and our specific concert with the Company's philosophy are selected by interviews and written examinations. If there is interest-based

business requirements. The Company formulates the direction of talent development based on assessments of talent relationship (such as kinship and the relationship between a referee and a referrer) between the interviewee and the

gaps demand planning and the status of core talent reserves. This strategic approach ensures a rich pool of talent interviewer the interviewer will not be involved in any part of the interview.resources meeting the sustained development needs of the Company.By the end of the Reporting Period G-bits had 1447 full-time employees.We prioritize recruiting suitable and high-potential talents aligned with the Company's business strategy during the

recruitment and selection process. This ensures a strong fit between employees and the Company fostering team

diversity and collaboration. Additionally we actively unleash employees' potential by assigning them appropriate roles Employee remuneration performance and feedback

and responsibilities providing ample space for talent to flourish. Employee development is a key focus and we tailor

training programs for different talent types considering the characteristics and development of various businesses

and projects. These multidimensional training initiatives aim to support business breakthroughs in team management In line with laws and regulations such as the Labor Contract Law of the People's Republic of China the Provisional

talent motivation and cultural development. The Company has established a highly competitive compensation Regulations on Salary Payment the Regulations on Public Holidays for National Annual Festivals and Memorial Days

system featuring a bottom-up project approval mechanism an open competition mechanism for key positions a talent and the Regulations on Paid Annual Leave for Employees G-bits has formulated the Management Measures for Labor

rotation mechanism and diverse incentive plans as promotion paths. These measures offer outstanding talents more Contracts and the Management Measures for Salary and Benefit to establish a remuneration package competitive in

opportunities for development contributing to the overall dynamism of the organization. the industry for employees.We periodically evaluate our internal talent map to pinpoint strengths and weaknesses in both the quantity and quality The Company's remuneration package consists of basic salary performance-based compensation bonus subsidy

of our talent pipelines. Additionally we consistently enhance our competitiveness through refined talent strategy and benefit and others. We develop a multi-dimensional evaluation framework for employees' performance. Employees are

management aiming to establish a robust foundation for the Company's sustainable development. given face-to-face feedback on their daily performance and progress toward preset targets regularly.The Company has also established a confidential channel for employees to complain about their performance results.For any doubt about the performance assessment result employees can file a complaint anonymously through the

Protection of employee rights and interests complaint channel. Relevant management personnel will communicate with the assessment personnel in accordance with the feedback to help them optimize the performance management method.At G-bits we strictly comply with the laws and regulations and international practices such as the International Labor

Conventions the Labor Law of the People's Republic of China and the Labor Contract Law of the People's Republic of Contributing to diversification and equality

China. To protect the legitimate rights and interests of employees we also adopt a robust talent management system

that aligns with our sustainable development goals to ensure that our employees are treated equally and fairly.G-bits continuously strives to create a healthy diversified and equalized workplace. We abide by the Law of the

People's Republic of China on the Protection of Women's Rights and Interests and other laws and regulations. We

Employee recruitment guarantee equal pay for equal work and ensure an equal inclusive and free work environment free of discrimination based on religion gender age or disability for all employees.The Company always upholds the principle of fair and just employment when recruiting talent. In particular the

Company does not tolerate any form of discrimination in employment and is committed to creating an inclusive and Anti-discrimination and unfair competition

fair workplace for employees regardless of gender nationality age race ethnicity religion sexual orientation family

status and disability. Following a zero-tolerance attitude for discrimination and unfair competition in any form G-bits is

committed to creating a safe equal and diversified working environment for all employees.To eliminate all forms of child labor and forced labor we strictly abide by the Law of the People's Republic of China

on the Protection of Minors Regulations on the Prohibition of Child Labor and other relevant laws and regulations

and have formulated internal management systems such as Management Measures for Labor Contracts. Meanwhile Anti-harassment

during the conclusion of a labor contract the Company strictly verifies the employee's identity to ensure that no

incidents of employing child labor occur. All employees are employed voluntarily and of their own free will as the

The Company has a zero-tolerance policy towards workplace harassment in any form including but not

Company enters into employment contracts with them on an equal and voluntary basis. During the Reporting Period

limited to offenses abuse gender-based or race-based disparagement and sexual harassment.the Company had no violations in relation to human rights.53 Talent Attraction and Development 54

Believing that diverse minds can inspire innovation the Company continues building up a diversified team of talent

with different backgrounds and different professional specialities. Maintenance of smooth communication channels

G-bits strives to establish diversified communication channels for employees. Any employee can give feedback on

25.00% 31.38% 35.94% management opinions and suggestions at any time which will be followed up and resolved by the human resource

management personnel in time. In addition the Company conducts an annual 180-degree assessment for employees.Management Evaluation and feedback opinions on the management personnel are collected from their direct superiors and

By gender By gender By age group subordinates and then passed on to the evaluated management personnel to help them improve their management.

75.00% 68.62% 64.06% "Founder Meetup" events

All employees can ask questions that they are interested in give opinions or make suggestions confidentially or in

Male Male ≤ 30 their real names. After collecting and summarizing the questions we organize a "Founder Meetup" event every two or

Female Female 30 - 50 three months in which the Company founder answers each of the questions. In this way we build a bridge for smooth

communication. During the Reporting Period the Company held a total of 4 “Founder Meetup” activities and 177

0.48% 0.41% questions were collected and handled including 77 anonymous questions. In addition the Company published three

posts related to the "Founder Meetup" event through its internal platform with a total of 2703 views.

14.51%16.24%40.91%

By academic By By

qualification professionals geographical “Founder Meetup” Questions were Published With a total ofregion events collected and handled

69.25%59.09%99.10%417732073

posts related to the "Founder views

Meetup" event through

Master's degree and above R&D personnel The Chinese Mainland internal platform

Bachelor's degree Non-R&D personnel Hong Kong Macao and

Junior college degree and below Taiwan regions of China "Little G Listening" cultural interview activities

Overseas

We also prioritizes the protection and support of the legal rights and interests of our female employees. We care about The Company regularly organizes "Little G Listening" interview activities. By listening to the employees' voices the

the physical and mental health of female employees by providing a series of separate rights and interests and welfare Company understands their opinions and concerns and strives to develop an open and free culture for employees.for them such as special vacation health lectures and special holiday activities. The Company adopts an "Active + Passive" approach to build multiple channels at different levels and in all aspects

enabling employees to give voice to their thoughts and participate in management. Employees are encouraged to

communicate sincerely with the Company and put forward reasonable suggestions for the Company's management

and development. During the Reporting Period the Company organized a total of 4 batches of "Little G Listening"

cultural interviews with the participation of 48 employees.Corporate culture group meetings

The Company regularly holds corporate culture group meetings to convey the connotation of corporate culture and

allow employees to have a clearer understanding of the values advocated by corporate culture and the way of doing

things through the display and discussion of typical cases. During the Reporting Period the Company organized a total

Afternoon tea on "Women's Day" in Shenzhen office Health lecture on "Women's Day" in Shenzhen office of 11 corporate culture group meetings with 321 participants.55 Talent Attraction and Development 56

Employee benefits Mental health counselling for employees

The Company continues to pay attention to the mental health of its employees and has set up the online platform

"G-healing" (mental health counselling desk) to help employees reduce the psychological pressure and emotional

We provide all employees with benefits and care in respect of health life and financial support to help them maintain burden they face in their daily work. At the same time the Company opens up psychological counselling appointment

better work-life balance. We accompany employees and their families in different stages of life so as to enhance channels for employees in Xiamen Shenzhen and Guangzhou and screens qualified third-party psychological

employees' sense of happiness achievement and belonging. counselling agencies to provide one-on-one psychological counselling for employees and the psychological counselling

costs incurred in the counselling process are uniformly borne by the Company. During the year the Company's three

G-bits welfare offices in Shenzhen Guangzhou and Xiamen were used for EAP psychological one-on-one counseling expenses

totaling RMB 236.4 thousand. In addition the Company also provides employees with online mental health courses and

a wealth of group counselling activities to help people relax and reduce stress and advocate a healthier way to work

and live.Onboarding Daily life Housing Growth Marriage and Childbearing "Correct Understanding of Counseling"

* Off-site onboarding * Monthly funding for * Housing subsidies * Internal training * Wedding gift "Dealing with Stressful Communication with "Fear of Making Mistakes Increases the Likelihood of

transition hotel departmental activities * I nterest-free house sharing * Maternity gift Leaders: Identifying the Sources of Pressure" Errors Overcoming Fear for Improved Performance"

* Insurance and * M onthly film viewing purchase loan for * E xternal training * K indergarten (private)

housing fund activities five years funds tuition subsidies "How to Quickly Integrate into the Workplace "How to Break Through the Confusion of

* S upplementary * Company canteen * Paternity /maternity After Recruited From the Campus" Career Development"

commercial * Shuttle buses leave

insurance

* Gymnasium * Parental leave

"Live as Yourself and Grow with Experience" "See Your Own Strengths Refuse Self-Denial"

* Festival gift * Breastfeeding leave

* Paid annual leave * S upplementary

* A nnual medical commercial insurance

for employee's children "Get These Communication Skills to Communicate Efficiently without Meeting Difficulties"examination

"Correct Understanding of Social Phobia and

"A Correct Understanding of Procrastination"

How to Break Through"

Protecting employees' health

"Correct Understanding of Vacation Syndrome" "Insomnia Treatment"

We are committed to safeguarding the physical and mental well-being of our employees by implementing a range of "Positive Thought Meditation - Explore Yourself in "Methods of Emotion Regulation"

health management initiatives aiming to enable each individual to work and live in a state of positivity happiness and Positive Thoughts Relax and Relieve Stress"

wellness."Methods of Self-Regulation: Meditation" "Emotional Relief and Stress Management"

Annual medical examination service for employees

"The Difference Between Depressed Mood and Depression"

With the concept of caring about employees' health in mind we are

committed to providing employees with more comprehensive health "How to Recognize and Adjust to Emotional "How to Handle Intimate Relationships"

care services. We offer all employees a comprehensive medical Strengths"

examination each year and regularly invite doctors to interpret reports Our investment related to employees'

individually for each employee in the Company. Thus we make sure medical examinations totalled RMB "Attachment Types and Intimate Relationships" "Communication in Intimate Relationships"

employees are fully aware of their health status. During the Reporting

Period our investment related to employees' medical examinations 1 362.9 thousand

totalled RMB 1362.9 thousand. Online mental health courses

Online Mental Health Courses

Interpersonal

Relationship Self-Regulation and Stress Career Development and

Management Relief Growth57 Talent Attraction and Development 58

Support for employees' exercise Employee health and nutrition assurance

We help employees maintain good physical conditions by organizing a variety We place a significant emphasis on the daily diet of our employees. The ingredients used in our cafeteria are directly

of sports events. We have set up several sports and fitness clubs in all office sourced by our logistics personnel who also craft customized healthy meals to ensure employees enjoy fresh and safe

areas regularly hold entertaining sports events such as badminton basketball dishes. In addition we ensure clean and hygienic tableware by regularly sending the tableware used by employees to

and marathon competitions. We also provide rewards to motivate employees. third-party institutions for testing.Furthermore we have established gyms in workplaces which are equipped with The total investment related

fitness equipment such as treadmills elliptical machines steppers climbing to the Company's employees'

machines spinning bikes and table tennis tables. The equipment is available sports and exercise amounted

for employees at any time satisfying their daily exercise needs. We regularly to RMB Promotion and dissemination of health knowledge among employees

organize experiential sports courses such as yoga on mat Frisbee games fat-

burning boxing and yoga for shoulder and neck so that our employees can enjoy 1211.5 thousand

the healthy activities in their leisure time. To encourage the communication and We attach importance to the dissemination of health knowledge. We convey the concept of health in a variety of ways

sharing on health topics among employees we have established a sharing to encourage employees to develop healthy lifestyles and work habits. In 2023 we held 9 health lectures covering

session the Health Master. We help other employees develop good exercise diverse topics such as women's health shoulder and neck relaxation techniques family education eye protection

habits by inviting certain employees to share their rich fitness experiences. sub-health and nutritious diet. Employees improved their health protection awareness through the health lectures.During the Reporting Period the total investment related to the Company's They also received practical health instructions to maintain a good lifestyle and work status. Besides we share

employees' sports and exercise amounted to RMB 1121.5 thousand. health information with employees through internal communication channels and social platforms including practical

suggestions on nutrition sports and mental health. We are paying increasing attention to employees' health to help

them better manage their personal health and improve the quality of work and life.Fun sports events

A lecture on eye protection A lecture on shoulder and neck relaxation techniques

Flexible work arrangements for employees

Faced with extreme weather conditions such as typhoons and rainstorms G-bits takes into full consideration both

the weather and the safety of its employees' commutes. The Company has adopted a flexible working approach

allowing employees to choose between working in the office or remotely based on real-time conditions. Additionally

the Company provides employees with the option of flexible working hours enabling certain staff members to

Ancillary gym in the office area Badminton club activity autonomously arrange their work hours according to their specific job requirements.59 Talent Attraction and Development 60

Building a secure environment Enriching leisure activities

Regarding the safety of our employees as our top priority we are committed to building a secure and healthy working The Company practices humanistic care and consistently creates a heart-warming environment for employees. The

environment for them. We equip all workplaces with automated external defibrillators (AED) and fire extinguishing Company pays close attention to employees' needs innovates and improves the methods of humanistic care. The

equipment and conduct regular first-aid training. During the Reporting Period we organized two sessions of first aid Company also organizes diversified activities to ensure that each employee can feel warmth and care in the Company.training and participated in 3 safety inspections.The Company organizes and carries out collective movie watching activities every month which can provide

employees with easy social opportunities expand employees' horizons and help employees relieve work pressure.The Company organizes e-sports competitions to enrich the spare time life of employees while providing a platform for

teamwork and competition and enhancing team cohesion.In addition the Company organizes team building events for all employees from time to time. This year the Company

arranged special activities for holidays such as Lantern Festival Women's Day Dragon Boat Festival and International

Children's Day. We prepared holiday gifts and afternoon tea snacks for employees and shared happy moments with

them. During the Reporting Period we also organized a family open day inviting family members of employees to visit

the Company enjoy lunch together and participate in on-site interactive games which enhanced the understanding of

employees' family members about the Company and enhanced the sense of belonging of the Company's employees

to improve employee satisfaction.AED equipment in the workplace Fire Safety Equipment in the workplace

We also prioritize the physical health of our employees. We conduct regular cleaning of air conditioning units and

engage third-party testing services to ensure the quality of drinking water in the office. Before any new office is opened

formaldehyde tests are conducted to ensure a safe working environment. Furthermore in our commitment to providing

a comfortable workspace each employee is equipped with an ergonomic office chair.Women's Day Event Dragon Boat Festival Event

International Children's Day Event Family Open Day Event61 Talent Attraction and Development 62

Case: "Mooncake Game" at the Mid-Autumn Festival Innovation in talent cultivation

At the Mid-Autumn Festival the Company organized a "Mooncake Game" event a national intangible cultural G-bits places significant emphasis on the development of each employee

heritage for employees. The event created a joyful and harmonious festive atmosphere that promoted cultural continually refining its training mechanisms. This year the Company

inheritance and exchange while strengthening bonds among employees. established internal management policies such as the Training Management

Measures which standardizes the responsibilities of training managers

internal and external training processes and other training mechanisms. A total training investment of

RMB

The Company has launched diversified training programs to meet the

training needs of different employees. We have different types of training for

employees like professional competence training fresh graduate training 3526.8 thousand

leadership training among others. Such training may take various forms such

as a combination of "Internal + External" and "Online + Offline" courses. This

year the Company carried out a total of 168 training sessions with 504 training

hours and a total training investment of RMB 3526.8 thousand.

2023 Mooncake Game

Facilitate organizational growth

Empower business success

Talent incentive Leadership development Operations management

Game producer seminar Advanced leadership Thematic management development training training for newly case study weekly promoted managers seminar salon event

To motivate employees and boost their creativity the Company has implemented several effective incentive

Game Development Sequence Study X-Fan er public Business-specific G-bits Q&A

mechanisms. In October 2020 we launched a share-based incentive plan to grant 1.00% of our total share capital to Map sharing training program Community Experience in R&D

employees. The incentive plan targets all core technology and business employees of the Company representing 6.66%

of the total workforce for the year. Program Planning Planning Fan er data analysis Planning Valuable examples of

The performance of employees is evaluated on a regular basis and the high-performing employees will be provided R&D experienceProgram

with material and moral incentives. The Company explores the growth cases of personnel at different levels for sharing Sequenced and targeted Junior design Program Fan er user research

and strengthens the positive drivers of team growth. Employees Business Review Learning lecture covering Art Meeting

middle and junior level

employees Art Fan er marketing Operation

Mid-level Helping employees to

employees improve their professional …

competence Operation Fan er … Testing

Campus Recruits Social Recruits

Skill Career Introduction Mini Game Processes/ Experience

development transition to the games development systems series of Corporate sharing session for Job

training lecture industry series competition lecture culture employees in the Practicingsame position

General training: all-round enhancement of competence covering thinking training professional skills development

workplace communication use of office software etc.Knowledge Base: Help Employees find what they need for work anytime and anywhere and view the experiences shared

by various professionals

G-bits Employee Training System

All Employees G-bits Recruits G-bits Professionals Management63 Talent Attraction and Development 64

Job-specific development training Leadership development training

The Company offers employees various types of job-specific development training. Employees are provided with The company is dedicated to enhancing the leadership capabilities of its employees consistently providing diverse

appropriate training and learning resources based on their job responsibilities professional needs and preferences. leadership development training and networking opportunities for individuals at various management levels. These

initiatives aim to deepen their understanding of the market and products. Aligned with talent assessments the company

The Company organize general skills training for employees to help them master basic skills and improve the conducts a series of training sessions to empower management talents at every tier.overall business skills of teams. Besides we provide training in technology planning art and other aspects of game

production to enhance the professional and innovation skills of our employees. We also provide product launch support

training to improve collaboration across product teams and thus ensure that our product rollout is a market success. Leadership development training for newly promoted managers

This year the Company has organized a total of 76 job-

specific development training sessions including 46 Helping newly promoted managers achieve career development goals is a priority for us. In this regard we have

sessions on launches and operations 17 sessions on conducted a series of centralized training sessions to help them better adapt to job changes and master basic

R&D and 13 sessions on general knowledge and skills. management skills. We provide training on a wide range of topics for newly promoted managers. For example

These sessions were highly regarded by employees "Management Role-Based Training" helps them develop their leadership styles and explore their leadership potential;

with a total of 4314 participants. "Talent Finding Training" helps them improve their ability to discover and develop talent in the team thereby

allocating team resources more effectively; "Performance Management Training" helps them develop scientific and

effective approaches to performance management thereby improving team productivity; "Team Collaboration and

Communication Training" which teaches them how to establish efficient communication channels helps them build

teams where everyone gets along. This year the Company carried out a total of 9 management training sessions for

Job-Specific Development Training newly promoted managers with 237 participants.Graduate traineeship program

Carried out a total of With

To assist fresh graduates recruited from campuses in assimilating into our corporate culture and swiftly adapting from

student life to the professional realm the Company has organized a concentrated series of training sessions. The

company arranges "Skill Development" training for these fresh graduates involving diverse team activities to cultivate 9 237

teamwork and foster team cohesion in a relaxed environment. Addressing operational nuances mentors impart

knowledge on the company's distinctive "MVP Approach" in game development along with insights into business management training participants

operations marketing strategies and product optimization. This facilitates a rapid establishment of a foundational sessions for newly Leadership development training for newly

understanding of the company's operations and the game industry. promoted managerspromoted managers

In addition the Company has invited game production mentors and senior professionals in the game industry to share

their professional and personal development experience and answer questions to help fresh graduates better adapt to

the workplace. For new employees in positions related On-duty supervisor advanced management training

to game development the Company has organized

the "Mini Game Development Competition". Mentors The Company regularly conducts advanced leadership

provide feedback on game demos developed during development training for managers with certain

training sessions. They also coach campus recruits in experience. Mentors communicate with managers about

solving difficulties arising from the game production people management challenges in real-life scenarios

thus helping them form their own understanding of and help them find appropriate and distinctive ways to

game development. This year the Company organized address them. This year the Company carried out a

three forms of training for fresh graduates including total of four 2-day training sessions on communication

concentrated training sessions the "Mini Game and management such as "Leadership in Different

Development Competition" and working exchanges Scenarios" and "Inspiring Inner Drive" with 108

with a total of 77 hours of training courses. participants.Orientation training for campus recruits On-duty supervisor advanced management training65 Talent Attraction and Development 66

Game producer training Supporting employee progression

The Company organizes seminars to train game

producers and their managers. External experts are

invited to share their experiences answer questions Employee promotion system

and provide guidance. This year the Company

organized three major theme-based training sessions

for game producers: game development team

management and business review. Producers shared Employees are fundamental to the sustainable development of a company which is why we value and encourage our

their insights into game innovation and R&D team employees to develop and grow. The Company has established a dual-path promotion mechanism of "Technology +

collaboration and communication project operations Management" to better meet the career development needs of employees.and other aspects and discussed solutions to business Game producer training Employees can choose the promotion path based on their own aspirations and specialities. They can develop along the

and management problems. This year the Company technology development path into technology backbones company experts and authoritative experts in the industry or

carried out a total of 3 game producer training sessions along the management development path into middle and senior management. In addition the Company's promotion

each lasting 2 days with 46 participants. system is flexible enough to allow employees to advance their careers in a more open and diverse way. Employees can

choose to focus on one development path and make progression step by step. They can also change the path based

External joint training sessions on their personal interests and development aspirations actively explore other areas and better broaden their career horizons.Meanwhile the Company will regularly hold seminars to review job levelling and adjust the promotion path of different

At G-bits our employees are able to access excellent industry resources by attending exchanges and training positions to meet employees' expectations for future development. With our promotion mechanism our employees'

sessions. This allows us to keep abreast of the latest knowledge and skills in the game industry and to better adapt to abilities are enhanced in more targeted and clearer manner while their growth and contribution can be clearly reflected

changes in the industry. through the job levelling system.This year in cooperation with external professional

organizations the Company organized advanced

management training for management trainees at

all levels with the aim of cultivating their ability and Support for employee upskilling

preparing them for future management promotion.Working with external professional organizations such

as Mercer and Ram Charan's global partners we G-bits places great emphasis on the development of the employees. We are committed to providing a good learning

organized specialized training sessions for our game environment and encouraging them to keep upskilling. To this end we have clearly stated in the Training Management

producers. Through extensive interaction with industry Advanced leadership Mercer Consulting Game Measures that we will offer financial support to all regular employees for obtaining professional qualifications.professionals they have gained a wealth of expertise development training Producer Seminar

and management experience. The amount of financial support varies with the types of professional qualifications. The Company bears the full

education cost for employees who have obtained the qualification of Certified Public Accountant (CPA) the professional

In addition the Company has partnered with several universities in China to develop joint courses and develop industry qualification in publishing or other qualifications required by the Company while bearing 50% education cost for

talent with practical skills and expertise. This year we maintained the long-term partnership with universities such as employees who have obtained the qualification of Project Management Professional (PMP) international coaching

the Guangzhou Academy of Fine Arts the Shenzhen University and the China Academy of Art. Combining our first- qualification of ICF and other qualifications that are closely related to the industry or job position. For employees who

hand industry experience with the university teaching system we offered co-created projects and elective courses. have participated in the relevant qualification training but failed to obtain the certificate the Company will provide the

In this way we shared cutting-edge theory of knowledge and experience of industry with students fond of games. same financial support after validating their individual learning outcomes.These joint courses provided students with hands-on experience in a more comprehensive manner while giving us the

opportunity to work more closely with the academic community and learn from each other.G-bits × Shenzhen University New Manor Times Project Team × Super Meow Star Project Team ×

Business Practice of Game Release Guangzhou Academy of Fine Arts China Academy of Art Preparatory

Co-Created Elective Course Co-Created Course on Character Design Course on Conceptual DesignVII

Green Operation

G-bits focuses on sustainable development and practices the concept of

green development. This year G-bits continues to identify and assess

climate- related risks and develop responses to promote green operations

conserve biodiversity and reduce environmental dependency and impact in

corporate operations.Response to climate change

Practicing green operation

Protection of biodiversity69 Green Operation 70

Response to climate change Practicing green operation

Climate change represents a significant threat to humanity with global warming and extreme weather events G-bits pays attention to the efficiency of energy and resource use and waste recycling during green operation. In the

increasingly affecting both the global ecosystem and business operations. G-bits actively responds to climate change. light of the Environmental Protection Law of People's Republic of China the Law of the People's Republic of China on

In line with the Guidance on Climate Disclosures (TCFD) we identify assess and respond to the impacts of climate Prevention and Control of Water Pollution the Energy Conservation Law of the People's Republic of China the Law

change on our businesses and formulate mitigation and adaptation strategies that are more scientific and reasonable. of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste and other

relevant laws and regulations the Company carries the green and low-carbon philosophy into day-to-day operations

The climate change risks and opportunities identified during the Reporting Period and our responses are as follows: and continuously makes products and services more environmentally-friendly.Risk

type Identification and assessment Our responses Reducing energy consumption

Incorporate climate change considerations into supplier admission

standards select electronic equipment with higher energy efficiency

and lower energy consumption and encourage existing suppliers to Being aware of the importance of energy conservation and emissions reduction G-bits exercises fine management - Uncertainties in energy

procurement such as rising prices use clean energy to reduce the Company's market risk arising from of resources and energy-consuming equipment. To this end G-bits has established requirements for the Company's

Market risk of electricity and other energy fluctuations in electricity prices; air conditioners lighting fixtures and production equipment and selects third-party cloud servers with lower electricity

could lead to an increase in the Carry out more elaborate energy management establish specific consumption to ensure operating efficiency and reduce energy consumption.Company's operating costs. requirements for the use of air conditioners lighting fixtures and other

electric equipment in workplace and advocate green office among

employees to reduce the energy consumption in the workplace. Promoting

energy

conservation The Company pays close attention to electricity consumption data and employees'

awareness electricity-consuming activities in a timely manner periodically conducts electricity-

Pay close attention to the early warning of extreme weather events saving campaigns and places electricity-saving reminders on switches of air

formulate the Explosion Prevention Plan the Typhoon Emergency conditioners and lighting fixtures.Plan the Comprehensive Safety Emergency Plan and other safety-

- Extreme weather such as related plans and equip all workplaces with fire-fighting facilities and

typhoons droughts floods extreme equipment to ensure the safety of people and properties;

cold or heat caused by climate

Acute risk change may threaten our normal Establish mechanisms for rapid and effective disaster relief rescue

The Company designates dedicated maintenance personnel to make regular

operation resulting in higher and emergency response. Organize all employees to conduct fire drills

Monitoring rounds and turn off air conditioners and lights when employees leave the workplace.energy consumption and operating typhoon drills violent and terrorist attack drills and other activities. energy conservation Meanwhile the Company actively enforces accountability and urges employees to costs. Engage external professional institutions to assist the Company in on-

practices turn off air conditioners and lights when they leave the workplace significantly reducing site safety management and safety record management at least once

a year in an effort to ensure the safety of people and IT infrastructures monthly electricity expenses. In addition the Company minimizes unnecessary lighting

and minimize the losses caused by accidents. in public areas during off-work hours to reduce energy consumption. The Company

also regularly monitors employee computer usage and promptly remind colleagues who

have not turned off their computers after work for a long period of time to turn off their

computers in a timely manner so as to reduce unnecessary energy consumption.- Sea level rise may pose a higher

asset risk to the Company's IT Regularly inspect the use of equipment and deploy and maintain

infrastructures in coastal areas facilities to grapple with extreme weather such as backup power

Chronic risk such as Xiamen and Shenzhen supply;

resulting in higher costs for Increase the proportion of cloud services and protect important data The Company saves energy and reduces emissions through collaboration with cloud

maintenance repair or replacement through off-site backup and cross-device backup.of IT equipment. Selecting service providers and operates business swiftly and flexibly by leveraging cloud

energy-efficient services provided by Amazon Alibaba and Tencent. During the Reporting Period the

equipment PUE of Tencent cloud servers adopted by the Company was below 1.20 and that of

- The application of energy-saving Actively carry out distributed energy projects to increase the use of Alibaba cloud servers was 1.09 far lower than the average of the global data center

measures/technologies enables clean energy;

Energy the Company to lower energy industry. In addition the Company tracks changes in overall resource utilization rates

opportunity consumption in the course of Lease data centers with low power usage effectiveness (PUE) to and daily active users (DAU) of all projects and downgrades the servers for the

operation as well as operating increase electricity effectiveness per unit time and minimize energy projects below the threshold as well as the projects with a significant decrease in DAU.costs. consumption in the course of operation.Opportunities Physical risks Transition risks71 Green Operation 72

Advocating green office Recycling

G-bits actively builds a safe green and low-carbon workplace for employees by advocating low-carbon travel G-bits has integrated resource recycling into normal operations and takes multiple measures such as promoting

electronic office and the use of environmentally friendly materials. reusable tableware reusing idle items to extend the life cycle of waste and reduce emissions.Low-carbon commuting Reusable tableware

Electric vehicles are used for all shuttle bus routes of the Company's Shenzhen Office and Xiamen Office. Moreover Reusable melamine or stainless steel tableware is used at the staff restaurants of the Company's Xiamen Office and

the Company carries out fine management of shuttle buses adjusting the routes and frequency of shuttle buses Shenzhen Office with 108.17 thousand and 241.49 thousand repeats in 2023 respectively.based on employees' needs and prioritizing cinemas located more closely to minimize the use of shuttle buses when

organizing monthly movie-watching activities.Low-carbon office Reusing idle items

The Company is committed to raising employees' awareness of environmental protection by encouraging them to At the Company's Shenzhen Office we have relocated the original air conditioners ventilation system and fire

adopt double-sided printing and black-and-white printing and reuse wastepaper for scribbling or pasting expense claim protection system based on the original pipeline layout of the office building instead of replacements to minimize

forms to reduce waste. material consumption. Moreover we have some recycled furniture carpets raised floors air conditioners access

control surveillance equipment and other facilities and equipment for the new workplace. In addition the Company

takes a series of measures to accelerate waste recycling:

Environmentally friendly decoration

Organize in-house sales of idle furniture to provide benefits for employees in need;

The Company has used several energy-saving and environmentally friendly materials to decorate the new workplace Establish the Company's online group of used-items trade to fully circulate and utilize idle goods;

in Shenzhen. The company's air-conditioning system fresh air system air-conditioning and fresh air equipment and

pipelines of the original building lighting using LED energy-saving lamps decoration of the main materials (such Set up a free sharing area where excess goods/food are shared among employees to avoid waste;

as: paint flame retardant board gypsum board PVC flooring boards ceramic tiles artificial stone wall coverings

wallcoverings glue etc.) are on-site sampling for inspection (test items include but are not limited to environmental Recycle stationery from departing employees.protection radioactivity testing etc.) qualified for use indoor lighting pollutant concentration etc. The indoor lighting

pollutant concentration and other environmental indicators reach the current environmental standards and the air

quality has met testing standards upon the completion of the decoration.73 Green Operation 74

Environmental key performance indicators Protection of biodiversity

The Company's GHG emissions and resource consumption during the Reporting Period are presented below: The sharp decline of global biodiversity has become one of the most serious environmental risks in the future. The

Company is committed to the implementation of corporate responsibility working with employees and partners to

widely participate in biodiversity conservation carried out a series of conservation activities.Indicator Unit 2023 2022 2021

Mangrove Planting Activities

Indirect Greenhouse

Gas Emissions Tonne 2654.54 2235.42 2079.45 On the occasion of the 2023 Arbor Day the Company in collaboration with the Putian Lumeng Coastal Wetland

(Scope 2)67 Research Center and the Shenzhen Green Source Environmental Protection Volunteer Association has undertaken

mangrove planting activities in Xiamen and Shenzhen. A total of 73 employees and their family members actively

participated in the initiative collectively planting 610 mangrove seedlings.Total electricity

consumption in kWh 3427466.10 2800028.15 2607000.06

offices8

Energy intensity910 kWh/per person 2537.92 2546.64 3074.29

Employees participated in mangrove tree planting activities

Total water

consumption in Tonne 17545.44 20785.68 23394.17 Voluntary beach cleaning activity

offices1112

On the occasion of the World Ocean Conservation

Week the Company organized 15 employees in

Water consumption Tonne/per

intensity101113 person 12.99 18.90 27.59

Shenzhen to carry out voluntary beach cleaning

activities in Shenzhen Bay Park cleaning up about

21.19 kg of garbage.

Employees participated in beach cleaning activity

6 Due to our business nature the major gas emissions of the Group are greenhouse gases resulting from electricity converted from fossil

fuels. Ecological Bird-watching Activity

7 The Company's greenhouse gas inventories include carbon dioxide methane and nitrous oxide. GHG emissions are measured in carbon

dioxide equivalents. Since 2023 GHG emissions calculated based on the 2021 Baseline Emission Factors for Regional Power Grids in China

issued by the Ministry of Ecological Environment of the People’s Republic of China. In collaboration with the Shenzhen Mangrove Foundation the Company organized an ecological bird-watching activity

8 T he current electricity consumption statistics include those of three office premises of the Company in Guangzhou Shenzhen and Xiamen. in the Shenzhen Bay Nature Education Center in December 2023. Attended by 20 employees from the Shenzhen

This year the Company added two new office premises in the Shenzhen region resulting in an increase in electricity consumption. office this initiative encourages employees to engage in biodiversity conservation.

9 Energy intensity represents the energy consumed per person. The less the energy consumed per person the lower the energy intensity is.

10 This year the Company used the average total number of employees at the beginning and end of the year to measure energy intensity and

water consumption intensity and has recalled the data for 2022 and 2021 according to this caliber.

11 This year we improved our water resources data and statistics capabilities reorganized our water usage situation and improved the

disclosure of the Company's water consumption data for 2023.

12 The Company mainly uses municipal tap water. The current water consumption statistics include those of three office premises of the

Company in Guangzhou Shenzhen (in addition to the new office premises) and Xiamen. This year the water comsuption of the new office

pewmises cannot be separately calculated as the tap water cost is included in the property fee.

13 Water consumption intensity represents the water resources consumed per person. The less the water resources consumed per person the

lower the water consumption intensity is.Employee participation in ecological bird watchingVIII

Undertaking Social

Responsibility

G-bits has consistently prioritized corporate social responsibility

leveraging its strengths to share the Company's development

achievements with society and drive the industry towards

sustainable development. During the Reporting Period the total

amount of various public welfare donations amounted to over

RMB 3.77 million.Assisting rural revitalization

Focus on public welfare

Empowering sustainable

development in the industry77 Undertaking Social Responsibility 78

Assisting rural revitalization The Company also pays close attention to the healthy development of children. The Company is committed to providing improved conditions for the growth of rural children ensuring that they have access to a high-quality

educational environment and better opportunities for learning and development.G-bits recognizes the importance of rural revitalization. The Company actively responds to the call of the Party and the

country actively participates in grassroots assistance work and conducts on-site visits and donations after employee Case: YiNian XiaoYao "Qingyun Project" Public Welfare Scholarship

research to achieve effective one-on-one assistance. The Company has also made multiple purchases of agricultural Initiative for rural education

and sideline products from rural areas as holiday gifts and event souvenirs taking practical actions to support the

development of distinctive rural industries in various regions and contribute to the common prosperity of society.In 2022 the project team of the Company's gaming product YiNian XiaoYao initiated the "Qingyun Project " in

alignment with the game's philosophy. The initiative aims to provide better education for children and contribute

to their healthy growth. During the Reporting Period the Company introduced the "1 RMB Qingyun Scholarship

Case: Multi-region consumer support for agricultural development Package" in the game allowing players to participate in the "Qingyun Project" by purchasing the package and

contributing to the scholarship fund for public welfare education.This year YiNian XiaoYao project team of the Company donated and built a sports field for the Fayi Primary

In May and September 2023 the Company conducted School in Yunnan Province addressing the issue of insufficient sports facilities for rural schools. After the

consumer support activities to boost the development of completion of the playground the children gained a safer and more comprehensive sports environment. The

rural characteristic industries and increase income for total investment in the project for building the football field is 470.9 thousand yuan with 454.5 thousand yuan

farmers in various regions including Yanyuan County paid in 2023.Liangshan Yi Autonomous Prefecture of Sichuan

Province Shanwei City of Guangdong Province

Qiannan Buyi and Miao Autonomous Prefecture of

Guizhou Province Hechi City in Guangxi Zhuang

Autonomous Region Xunwu County of Jiangxi Province

and other regions. These efforts aim to promote overall

prosperity in these areas.

2023 G-bits Foodie Festival distributes Yunnan Province Fayi Primary School Sports Field Donation Charity Event

consumer support packages to employees79 Undertaking Social Responsibility 80

Focus on public welfare

We embrace and care for the special children's community providing dual support in both material and emotional

aspects aiming to improve their living conditions from multiple perspectives.Case: YiNian XiaoYao "Qingyun Project" Public Welfare Scholarship

Initiative for special children care

This year the "Qingyun Proiect" focuses on the donation work for special children's groups providing care and support At the same time the Company's game project team donated RMB 100 thousand to the Xiamen's Tongan

to vulnerable groups in society through initiatives such as caring for children with autism and supporting visually District Love and Crystal Baby Parent-Child Kindergarten to assist in renovating the long-neglected park and

impaired children. We strive to create a more inclusive and equitable environment for special children's groups maintaining a well-kept park environment.demonstrating our commitment to corporate social responsibility.Caring for Children with Autism

The Company's game project team engaged in visits to children with autism entering Xiamen's Tongan District Love

and Crystal Baby Parent-Child Kindergarten to play with autistic children providing care and companionship to warm

the hearts of each child. Additionally the Company's employees diligently captured precious moments depicted the

daily lives of children and produced public service videos. Through social media they shared the innocent smiles and

heartwarming scenes of autistic children with a broader audience fostering increased societal awareness and care for

this group of children with autism. Before park renovation After park renovation

Caring for children with visual impairment

In October 2023 the Company's game project team donated RMB 100 thousand to the Tianjin School for the

Visually Impaired to support the purchase of ethnic musical instruments and enhance the school's facilities

and equipment. The Company assisted in establishing a traditional Chinese music classroom providing music

courses to offer students a more extensive artistic experience and an enhanced learning environment.Engaging in "caring for children with autism" activity and illustrate daily life scenes of children

Chinese Traditional Music classroom event

The Company will continue to deepen the "Qingyun Project" in the future helping more children in need to grow

and thrive.81 Undertaking Social Responsibility 82

Empowering sustainable development in the industry

Case: Child-care education

G-bits consistently monitors the development of the game industry. The Company collaborates with universities

and partners to provide opportunities for industry talents to showcase their abilities empowering the sustainable

development of the game industry.In October 2023 the Company launched 200 sessions of "Girl Protection" child sexual abuse prevention

courses in Chongqing Sichuan and Guizhou employing various forms such as text and illustrations to

strengthen children's awareness of safety. Facilitating industry development

The Company remains attentive to industry development trends leveraging its own strengths and integrating internal

and external resources to share high-quality expertise externally thereby supporting the advancement and progress of

the industry.Offering advice and driving the prosperous development of the industry

The Company actively engages in industry events with the aim of contributing to the healthy and systematic

development of the game industry.Child sexual abuse prevention series "Girls Protection" courses In June 2023 the 29

th Beijing International Book Fair sponsored by the State Press and Publication Administration

and other ministries opened at the Beijing National Convention Center. The Book Fair for the first time established an

"Online Publishing Pavilion". The Company exhibited and participated in the development forum for online publishing

with its game operations platform Leiting Games and online publishing platform Yifan Technology actively promoting

the global outreach of Chinese culture.Case: Earthquake relief assistance

In December 2023 a 6.2-magnitude earthquake struck Jishishan County

Linxia Prefecture Gansu Province resulting in severe casualties and

property losses. Following the earthquake the Company promptly donated

a total of RMB 2 million in cash and materials through the Xiamen Charity Promptly donated a

Federation Shenzhen Charity Association and Shenzhen One Foundation. total of RMB th

This contribution was dedicated to supporting the rescue efforts and post- G-bits made an appearance at the 29 Beijing International Book Fair Online Publishing Theme Pavilion

disaster reconstruction in the earthquake-affected areas of Gansu. 2 million In September 2023 the 10th National Cybersecurity

Week jointly organized by the Central Propaganda

All donated materials have been successfully distributed to the local in cash and materials Department the Central Internet Information Office and

residents aiding them in overcoming the challenges brought about by the other ten departments was inaugurated at the Straits

disaster. International Convention and Exhibition Center in Fuzhou

City Fujian Province. The Company along with its game

operating platform Leiting Games participated in the

event actively fulfilling its responsibilities and showcasing G-bits participated in the 10th Cybersecurity Week

the achievements of our cybersecurity initiatives.In 2023 the Company has actively provided recommendations for the game industry offering feedback to the Game

Publishing Committee of China Audio-video and Digital Publishing Association on various group standards such

as Classification of Online Games and Basic Requirements for Game Distribution and Promotion. Additionally the

Company has collaborated with the Game Industry Committee in various research activities including investigations

into the public welfare activities of game enterprises party-building activities of game enterprises the international

expansion of Chinese game enterprises and the application and development of traditional Chinese culture in the

Distribution of Disaster Relief Supplies gaming sector.83 Undertaking Social Responsibility 84

Building platforms to facilitate industry exchange School-Enterprise Collaboration in Training

G-bits is committed to nurturing and guiding talent within the industry. Leveraging its significant industry influence

The Company places a high emphasis on the cultivation and reserve of professional talents consistently integrating

the Company utilizes new media channels to disseminate industry experiences and showcase outstanding works

its own advantageous resources to empower game development talents in universities. Through various means such

ultimately fostering collective progress within the industry. The Company actively shares and promotes specialized

as organizing university competitions establishing platforms for talent training and learning and hosting salon events

knowledge within the gaming profession. Through the creation of an in-depth interview series titled My Story with

the Company lays out a clear developmental path for young game talents in universities contributing to the sustainable

Games diverse individuals within the industry have the opportunity to showcase their authentic experiences. Seasoned

development of the industry.professionals use these interviews to convey the

Company's gaming philosophy share personal insights

and provide perspectives on the gaming business.This initiative aims to present the genuine ecosystem Organizing Game Competitions

of the game industry to the public dispelling societal

biases and misconceptions about the game industry The Company actively participates in industry activities aiming to contribute to the healthy and orderly development of

while promoting positive industry values. In this the gaming industry.interview series college students also share their game

development experiences and personal growth stories

presenting their unique perspectives on the game My Story with Games program promotion Case: G-bits Game Developer Contest

industry to the broader audience.Since 2019 the Company has consecutively organized the G-bits Game Developer Contest for five years. The

competition invites more than ten experienced R&D professionals from the industry to serve as mentors guiding

Providing platforms to guide job seekers young game developers from universities in designing and developing game projects. This support aims to help

them realize their game creation dreams and incubate high-quality creative products. The competition attracted

over 470 universities from both domestic and international locations with more than 1760 participants.The Company has established a series of columns such as Job Interpretation and Workplace Observation through

The competition adopted a format combining both online and offline elements as well as a structure that

new media platforms to disseminate knowledge about game industry positions and insights into the workplace ecology

emphasized differentiation and systematization. After a 70-day online preliminary round with unrestricted topics

of game companies.over 1760 participants competed leading to the selection of the top 10 teams. These teams then engaged in a

This assists the public in developing a correct face-to-face Game Jam13 challenge with their mentors completing the task within a 48-hour timeframe.understanding of the game industry and provides

guidance for industry talent recruitment. The Company

also offers a public exchange platform for job seekers in

the game industry. By organizing live Q&A recruitment

events it opens a window for job seekers to learn about

the game industry and seek information helping to

break down information barriers lower entry thresholds

and establish a foundation for the industry to attract

more high-quality talent. During the Reporting Period

the Company held a total of four live Q&A sessions. Recruitment Q&A Live Sessions G-bits Game Developer Contest Site

The college students boosted their confidence in game production expanded their understanding of the game

The Company offers a platform for university students industry and sparked more creative inspiration. Additionally they offered the competition mentors fresh game

passionate about the game industry to showcase their ideas from the younger generation contributing to the industry's future diversified development.talents. In May 2023 the Company conducted a live

streaming event through its corporate social accounts Over the five years of the competition the majority of participating contestants have entered the game industry

showcasing outstanding student works. This included after graduation becoming a new force in industry R&D. The winning team from the fourth competition has

information about team members an introduction to established a studio and successfully incubated their competition entry. The subsequent development and

gameplay game demonstration videos and more. production of the game are progressing in an orderly manner.Leveraging its industry resources the Company

provides opportunities for talented individuals to

Live Show of Excellent Works of College Students 13 G ame Jam is a time-limited game development activity where participants create a game within a relatively short timeframe and

showcase their abilities. publicly share their outcomes at the end of the event.85 Undertaking Social Responsibility 86

Building talent development and learning platforms

Case: The First G-bits College Game Art Concept Competition

Case: G-bits & University Game Development Alliance

In September 2023 the Company held the first G-bits College Game Art Concept Competition. The competition

featured diverse tracks including 2D and 3D scene and characters game illustrations and promotion providing

a platform for college students to explore and create in the realm of game art.Since 2021 G-bits has established the G-bits & University Game Development Alliance an organization for

Prior to the competition the Company conducted free live game art series courses where frontline artistic learning and exchanging among college game development enthusiasts. It provides students with systematic

talents from the Company outstanding college professors and renowned freelance artists shared their expertise learning resources and professional guidance in game development helping those who are passionate

with students. The courses garnered a total participation of 1843 individuals and received high praise from the about game creation enhance their professional skills and industry awareness. The G-bits & University Game

student community. The Company invites experienced professionals from the industry including in-house artists Development Alliance regularly conducts various practical and exchange activities inviting industry producers

and professors from art institutions as judges. These judges engaged in direct discussions with the creators experienced frontline professionals outstanding students and more to share knowledge and insights in the

of the shortlisted works. This competition not only offered college students a valuable opportunity to enhance game industry creating communication channels for game enthusiasts. Simultaneously the alliance supports

their professional skills but also played a crucial role in identifying and nurturing talent in the field of game art. It the establishment and growth of game societies in major universities providing necessary resources and

served as a magnet attracting more outstanding artistic individuals to contribute to the game industry. activity support for the development of these societies.In 2023 the G-bits & University Game Development

Alliance has organized over 60 live course broadcasts

and conducted various game education-related

activities including summer game development

training for college students and a 48-hour Game

Jam challenge for universities. As of the end of the

Reporting Period the alliance has nearly 3000 G-bits & University Game Development Alliance

members spanning across almost 500 universities Game Education Campaign (2023 Summer Game

and involving 90 university game development Development Practical Training Student Work)

societies.Organizing Game Salon Events

Case: G-bits & University Game Developer Salon

In December 2023 the Company held a game developer salon in Guangzhou to build an offline learning

platform for game developers. The event exhibits new games and excellent works of high school students and

provides trial play opportunities. Developers exchange experience with each other and give feedback on the

experience. The event also invited front-line producers and senior R&D staff to share their expertise and R&D

Excerpt of Excellent Entries experience. Talents in the game industry communicated with each other to burst into fresh inspiration and

creativity.Game Developer Salon Scene87 Appendix 88

Appendix Indicators Unit 2023 2022 2021

Master's degree Number 235 178 141

Key performance indicators and above

By academic

qualification Bachelor's degree Number 1002 874 652

Associate degree

Indicators Unit 2023 2022 2021 and below Number 210 202 152

Total electricity consumption in

offices kWh 3427466.10 2800028.15 2607000.06

Male Number 993 860 668

By gender

Electricity consumption in Female Number 454 394 277

Xiamen Office kWh 1427013.00 1352345.00 1413428.00

Male

Electricity consumption in Number 129 119 /

Shenzhen Office kWh 1689708.10 1169866.15 900360.06

management

By gender

Female Number 43 39 /

Electricity consumption in management

Guangzhou Office kWh 310745.00 277817.00 293212.00

R&D employees Number 855 692 530

Energy consumption intensity KWh/per person 2537.92 2546.64 3074.29

By

professionals Non- R&D

employees Number 592 562 415

Total water consumption in

Environment offices Tonne 17545.44 20785.68 23394.17 Society Mainland China Number 1434 1243 940

Water consumption in Xiamen

Office Tonne 10997.44 14695.68 17952.17 By Hong Kong

geographical Macao and Taiwan Number 7 6 4

Water consumption in region of China

Shenzhen Office Tonne 6422.00 5976.00 5406.00

Overseas Number 6 5 1

Water consumption in

Guangzhou Office Tonne 126.00 114.00 36.00

Total number of training sessions Session 168 177 87

Water consumption intensity Tons/per person 12.99 18.90 27.59 Total training hours of employees Hour 504 870 281

Indirect Greenhouse Gas

Emissions (Scope 2) Tonne 2654.54 2235.42 2079.45 Training investment RMB 10 thousand 352.68 389.88 25.05

Total number of employees Number 1447 1254 945

Support of public welfare RMB 10 thousand 292.95 226.69 879.77

Society ≤30 Number 927 805 565 Support of environmental RMB 10

By age group protection thousand 5.58 20.00 /

30-50 Number 520 449 380

Support of rural revitalization RMB 10 thousand 78.47 103.58 35.7989 Appendix 90

Index of indicators

Contents GRI Standards Contents GRI Standards

I. About this Report 2-1; 2-2; 2-3; 2-4 (I) Talent development plan 404-2

(I) Company profile 2-6

(II) Protection of employee rights 2-7; 2-25; 3-3; 403-1; 403-3; 403-5;

and interests 403-6; 403-7; 403-8; 405-1; 408-1; 409-1

II. About G-bits (II) Party-enterprise integration

(III) Maintenance of smooth

communication channels 2-25

(III) Honors VI. Talent Attraction and

Development

(I) ESG management 2-12; 2-13; 2-14; 2-16; 2-17; 2-18; (IV) Employee benefits 401-2; 401-2; 401-32-22; 2-24

(II) Responsibility communication 2-29; 3-1; 3-2 (V) Innovation in talent cultivation 404-1; 404-2

III. Social Responsibility and ESG

Management

(III) Corporate governance 2-12; 2-24

(VI) Supporting employee

progression 404-3

(IV) Business ethics 2-25; 2-26; 3-3; 205-2; 205-3

(I) Response to climate change 201-2

(I) Player-centric approach

302-1;302-3;302-4;302-5;303-1;

(II) Promoting Chinese traditional 417-1 VII. Green Operation (II) Practicing green operation 303-2; 303-5; 305-2; 305-4; 305-5; culture 306-2

IV. Product Empowerment

(III) Protecting intellectual property 3-3; 417-1 (III) Protection of biodiversity 3-3; 304-3

(IV) Exploring technological frontiers

(I) Assisting rural revitalization 203-1

(I) Content ecological governance 417-1

VIII. Undertaking Social

Responsibility (II) Focus on public welfare 203-1; 413-1

V. Data Ecological Protection (II) Data security management 417-1

(III) Empowering sustainable

(III) Protection of minors development in the industry91 Appendix 92

Feedback form

Dear readers 8. What do you think of our performance in fulfilling environmental responsibilities

We sincerely appreciate your time to read this Report. To provide more valuable information to you and other □ Excellent □ Good □ Average □ Below average □ Poor

stakeholders and improve our capabilities to fulfil social responsibilities we are earnestly looking forward to your

opinions and suggestions.

9. What do you think of the clarity accuracy and completeness of the information indicators and data disclosed in this

Report

□ Excellent □ Good □ Average □ Below average □ Poor

1. Your overall rating of this Report:

10. Do you think the layout and design of this Report is reader-friendly

□ Excellent □ Good □ Average □ Below average □ Poor

□ Yes □ No

2. What do you think of our responses and disclosure to stakeholders' concerns in this Report

□ Excellent □ Good □ Average □ Below average □ Poor

Open-ended question: What are your opinions or suggestions to G-bits on its performance of social responsibilities or

this Report

3. What do you think of our performance in fulfilling financial responsibilities

□ Excellent □ Good □ Average □ Below average □ Poor

Your contact information

Name: Tel:

4. What do you think of our performance in fulfilling responsibilities to users

□ Excellent □ Good □ Average □ Below average □ Poor Email: Company:

Title: Fax Number:

5. What do you think of our performance in data security management

□ Excellent □ Good □ Average □ Below average □ Poor You may give us your precious feedback or suggestions in the way as described below:

6. What do you think of our performance in fulfilling responsibilities to employees Contact: Securities Department of G-bits

□ Excellent □ Good □ Average □ Below average □ Poor Tel: 0592-3213580

Email: ir@g-bits.com

7. What do you think of our performance in fulfilling responsibilities to communities Address: Room 101 No. 4 Wanghai Road Software Park Phase II Siming District Xiamen

□ Excellent □ Good □ Average □ Below average □ Poor Postal Code: 361008

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