2023

2023 Environmental Social and Governance Report

360 Security Technology Inc.REPORT PREFACE Reporting PeriodThis report covers the fiscal year (January to December ). To estab-

lish benchmarks and ensure comprehensiveness certain information may pertain to

About the Report dates or periods outside the specified reporting period.This is the second Environmental Social and Governance (ESG) Report released by Security Reporting Scope

Technology Inc. This Report has been prepared in accordance with the principles of impartiality This Report presents the performance of Security Technology Inc. and all its sub-

standardized reporting transparency and completeness and provides details on Security’s sidiaries. Unless otherwise specified the reporting scope of this Report aligns with

ESG actions and performance in . Security’s consolidated financial statements.Reporting Guidelines

This Report has been prepared in accordance with key reporting standards and guide-

lines including Rules Governing the Listing of Stocks on Shanghai Stock Exchange

Guidelines No. of the Shanghai Stock Exchange for Self-Regulation of Listed Compa-

nies Standardized Operation Guidelines for the Preparation of Chinese Corporate

Social Responsibility Reports (CASS-ESG .) issued by Research Center for Corporate

Social Responsibility of Chinese Academy of Social Sciences GRI Standard and

the United Nations Sustainable Development Goals (SDGs).Data Sources

This Report has been prepared based on information from official sources of Securi-

ty. We have implemented appropriate procedures to ensure that the Report does not

contain any false or misleading representations and that information presented herein

is accurate and complete.Report Release Method

This Report is available for download in electronic format from the website of the

Shanghai Stock Exchange (SSE) (http://www.sse.com.cn).About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development: the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Message from the Chairman “Prioritizing breakthroughs in critical technological “Supporting micro small and medium-sized areas” enterprises (MSMEs) and fostering digital commonAt 360 Security we leverage our technological exper- prosperity”“Focusing on AI and security while accelerating tise to serve our country prioritizing investment in In the digital transformation journey we recognizeresearch and development to drive positive change. In the significant challenges faced by small andthe development of new quality productive forces” 2023 our R&D spending amounted to 1.560 billion yuan medium-sized enterprises (SMEs). Limited financial

accounting for 34.64% of our revenue marking a 1.21 resources manpower shortages and lack of access to

In 2023 China’s focus on technological innovation percentage-point increase from the previous year. Our advanced technologies are major hurdles to their digitali-

continued to drive high-quality development in the industrial focus is on addressing AI security concerns and advancing zation efforts. To help them address these challenges we

sector fueling growth in the digital economy and fostering homegrown general-purpose large model technology launched a subsidy program through the 360 Security ensuring we have control over the technology. Our home- Cloud for Enterprises and set aside 10 billion yuan for this

“new quality productive forces”. The rise of large AI models grown cognitive large model 360 Smart Brain boasts program. The program provides annual subsidies ranging

has sparked a new wave of innovation in the global AI hundreds of billions of parameters and tackles a wide from 10000 to 20000 yuan for each SME as well as

industry. Large AI models have become a key battleground in range of application scenarios. Its robust capabilities complimentary access to Security as a Service (SECaaS)

the global technology race with the potential to transform solidify its place among the leading large models in China. solutions including asset security network security and

the economic landscape. The deep integration of AI into By integrating our security and AI capabilities we’ve data security. By supporting MSMEs in their digital developed homegrown solutions that safeguard national journey our aim is to bridge the digital divide and contrib-

manufacturing especially the deployment of advanced AI network security. We’ve identified 54 national-level ute to digital common prosperity.models in key industries is an inevitable trend promising to advanced persistent threats (APTs) overcoming a major

transform China’s modern industrial system and propel it up hurdle in national-level cyber attack detection. These AI is a powerful catalyst for the development of new

the global value chain. achievements position us as a leader in national cyber quality productive forces. Digital security is the foundation

As digitization unlocks new opportunities it also opens defense. We launched the 360 Security Large Model the for their sustainable development. Looking ahead we’ll country’s first security-focused large model cementing deepen our focus on AI and security. Committed to

more doors for cyber criminals. AI is also a double-edged our position as the industry leader. sustainable development we will continue to leverage the

sword. While it enhances production efficiency it also innovative power of Chinese technology companies tointroduces new vulnerabilities that cyber attackers can “Implementing a Blue Ocean Strategy to empower accelerate the development of new quality productiveexploit resulting in an evolving threat landscape that industry digitalization” forces and propel China’s modernization journey. As

constantly pushes the boundaries of network and informa- We empower businesses with our AI and security pioneers in AI and security we champion sustainable solutions helping them capture“ blue oceans”. During the value creation and embrace the“ Technology for Good”

tion security systems. The rapid rise of security threats in the reporting period we launched an enterprise-grade AI movement. By fostering new quality productive forces we

digital age necessitates that the cybersecurity industry large model solution facilitating customized deployment contribute to the continuous evolution of both AI and

continuously adapt innovate and elevate its capabilities. of large models across diverse scenarios. We’ve security driving technological innovation and industry

At 360 Security we are committed to leveraging our embarked on a mission to develop large models specifi- transformation.expertise in digital security and AI to support small and micro cally tailored to the needs of the Chinese market. By leveraging the power of large models we’ve enhanced

enterprises. By closely aligning with the SDGs and integrating our entire product and service portfolio. This includes

ESG principles into our daily operations we aim to maximize introducing innovative AI-powered offerings like the 360 AI

our positive social and environmental impact and create Browser and 360AI Search. In the security domain we

sustainable value for all stakeholders. We aim to catalyze have embraced the“ Security as a Service” concept and

sustainable development throughout the industry by foster- launched the 360 Security Cloud. Our cloud-based service-oriented approach integrates national-level threat

ing collaboration with a diverse array of partners. identification with large models. This powerful combina-

tion allows us to deliver comprehensive security solutions

tailored to the needs of cities governments and business-

es. We are dedicated to transforming security into an

important element of digital infrastructure promoting

360集团创始人:周鸿祎 inclusive access to digital security and driving the

development of the cybersecurity industry. These efforts

are crucial for shaping a secure environment that empow-

ers the development of“ new quality productive forces”.“Prioritizing breakthroughs in critical technologicalareas”

At 360 Security we leverage our technological exper-

tise to serve our country prioritizing investment in

research and development to drive positive change. In

2023 our R&D spending amounted to 1.560 billion yuan

accounting for 34.64% of our revenue marking a 1.21

percentage-point increase from the previous year. Our

focus is on addressing AI security concerns and advancing

homegrown general-purpose large model technology

ensuring we have control over the technology. Our home-

grown cognitive large model 360 Smart Brain boasts

hundreds of billions of parameters and tackles a wide

range of application scenarios. Its robust capabilities

solidify its place among the leading large models in China.By integrating our security and AI capabilities we’ve

developed homegrown solutions that safeguard national

network security. We’ve identified 54 national-level

advanced persistent threats (APTs) overcoming a major

hurdle in national-level cyber attack detection. These

achievements position us as a leader in national cyber

defense. We launched the 360 Security Large Model the

country’s first security-focused large model cementing

our position as the industry leader.“Implementing a Blue Ocean Strategy to empowerindustry digitalization”

We empower businesses with our AI and security

solutions helping them capture“ blue oceans”. During the

reporting period we launched an enterprise-grade AI

large model solution facilitating customized deployment

of large models across diverse scenarios. We’ve

embarked on a mission to develop large models specifi-

cally tailored to the needs of the Chinese market. By

leveraging the power of large models we’ve enhanced

our entire product and service portfolio. This includes

introducing innovative AI-powered offerings like the 360 AI

Browser and 360AI Search. In the security domain we

have embraced the“ Security as a Service” concept and

launched the 360 Security Cloud. Our cloud-based

service-oriented approach integrates national-level threat

identification with large models. This powerful combina-

tion allows us to deliver comprehensive security solutions

tailored to the needs of cities governments and business-

es. We are dedicated to transforming security into an

important element of digital infrastructure promoting

inclusive access to digital security and driving the

development of the cybersecurity industry. These efforts

are crucial for shaping a secure environment that empow-

ers the development of“ new quality productive forces”.About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development: the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Our Contribution to the SDGs

Sustainable Business Practices: Industry Responsible Contributing to a thriving Obtained ISO 27001 information

Innovation Consumption

The SDGs cover the three dimensions of sustainable development: economic social and Solidifying Digital Security 9 12 industry ecosystem security management system、ISO and and

Infrastructure Production 27701 privacy information

environmental sustainability. Recognizing the importance of these goals Security has User privacy protection management system

adopted a systematic approach to sustainable development actively addressing sustainability Reported zero major information

Partnerships leakage incidents during the

challenges and pursuing opportunities in an orderly manner. 17 to Achieve reporting periodGoals

Achieved 100% employee security

training

Partnerships

to Achieve No Poverty

Peace Justice Goals Sustainable Innovation: 9 Industry 12Responsible Technological innovation Our R&D team consisted of 3332 and Strong Zero Hunger Spearheading Digital Innovation Consumption individuals comprising 55.6% of

Institutions and andand AI Transformations Infrastructure Production User experience our total workforce

17 1 Good Health R&D spending totaled 3.104 billion

Life on Land 16 2 and Well-being yuan representing 34.28% of revenue.

15 3 Response rate to customer

Quality complaints reached 100%

4 EducationLife Below

Water 14 Customer satisfaction rate>96%

5 GenderEquality

Climate 13 Sustainable Empowerment: 3 Good Health 4 Quality Occupational health Women represented 20.1% of our Action 6 Growth Hand in Hand and Education management teamWell-being

Clean Water with Partners Work environment for

12 and Sanitation females

Persons with disabilities represent-

ed 1.5% of our workforce

7

Responsible Talent training and Achieved 100% employment contract

Consumption 11 8 5 Gender Decent Work

development signing rate

and Affordable Equality 8 and Economic

Production 10 9 and Clean GrowthEnergy Equal employment Ensured 100% employee social

insurance coverage

Sustainable Decent Supply chain management

Cities and Work and Employee satisfaction rate > 95%

Communities Reduced Industry EconomicInnovation Growth 10 Reduced 17 PartnershipsInequality and Inequality to Achieve Achieved 100% employee training

Infrastructure Goals

Over 90% of our suppliers received

the excellent rating

Sustainable Governance: 5 Gender 8 Decent Work Female managers Hosted over 300 investor receptions Equality and Economic

Strengthening Accountability during the reporting periodGrowth High-quality development Sustainable Development: 1 No Poverty 13 Climate Supporting rural Donated 6.49 million charitable of the Company Reported zero significant Jointly Pursuing a Action revitalization causes

deficiencies in internal control

during the reporting period Better Future for AllFair competition Social welfare Greenhouse gas emission intensity

10 ReducedInequality 16Peace Justice 0.85tCO2e/million yuan of revenueand Strong Standardizing corporate All employees have signed the

Institutions governance Integrity Commitment Letter Energy conservation and

3 Good Health emissions reduction Reported zero environmental and pollution accidents

Well-being

Green operations Our data center reported a PUE of 1.3About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development: the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

01 / About 360 Security 02 / Feature: “All in AI” Fuels the Development of CONTENTS New Quality Productive Forces

Corporate profile

Corporate culture

Business segments

Milestones

Rewards and honors

ESG Management

Sustainable Governance: Sustainable Business Practices:

03 / Strengthening Accountability 04 / Driving Growth in Digital Security

Standardized governance Security management systems

Internal control Security governance measures

Risk control Security emergency management

Compliance management User privacy protection

Integrity Security awareness programs

Fair competition

Party building

05 / Sustainable Innovation:Spearheading Digital and AI Transformations 06 / Sustainable Empowerment:Growth Hand in Hand with Partners

R&D and innovation The talent pool

Customer services Win-win cooperation

Industry development

07 / Sustainable Development:Jointly Pursuing a Better Future for All 08 / Appendix

Green operation Performance Table

Social welfare Report Index About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development: the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

01

Chapter One

About 360 Security

Corporate profile Milestones

Corporate culture Rewards and honors

Business segments ESG Management

01 02About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development: the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Corporate profile Business segments

Founded in 2005 360 Security is committed to empowering users with free cybersecurity solutions. Over the 360 Security primarily operates in four sectors. We integrate the large model capabilities of 360 Smart

past 20 years the Company has established itself as a global leader in AI-powered digital security solutions. Brain into all aspects of our business operations embodying a commitment to ‘ALL IN AI’.Supporting China’s digitalization strategy has long been a core mission of 360 Security. In 2023 we

positioned AI and security as the twin pillars of our business strategy. Considering “security as a service” the

bedrock of a thriving digital economy we strive to empower industrial digitalization with AI large models. Our

strategy can be broken down into three prongs: i) championing disruptive innovation in key technological Digital AI IoT & Internet

security Smart Life services

sectors; ii) empowering industry digitalization with the Blue Ocean Strategy and iii) supporting MSMEs. Through

these efforts we contribute to fostering China’s competitive edge in the digital landscape.Corporate culture Digital security

In line with our commitment to developing homegrown digital security solutions we launched 360 Security

Cloud a new-generation digital security product. This cloud platform consolidates two decades of cybersecurity

Vision Mission expertise data intelligence and knowledge to offer a one-stop Managed Security Services (MSS) solution for

Provide innovative Make the world users delivering state-grade protection to cities governments and businesses (including SMEs).solutions for a safer and better

safer world

360 security model

Pioneering the “AI + security” paradigm we developed 360 Security Smart Brain the

industry’s first security-focused large model. This AI innovation empowers our 360 Security AI

Agent system which seamlessly connects configures and manages various security tools

delivering a significant boost in security performance of both individual products and the

entire system.

360 security cloud for enterprises

Core values To help SMEs address challenges in digital transformation we’ve launched a

User first mission-driven subsidy program through the 360 Security Cloud for Enterprises and set aside 10

innovation open collaboration billion yuan for this program. The program provides annual subsidies ranging

and integrity from 10000 to 20000 yuan for each SME as well as complimentary access to

SECaaS solutions including asset security network security and data security.Over 1.6 million customers Downloads surpassing 22 million

03 04About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development: the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

AI IoT & Smart Life

Our homegrown AGI large model 360 Smart Brain boasts hundreds of billions of parameters and tackles a

wide range of application scenarios. Its robust capabilities solidify its place among the leading large models in Guided by the vision of Smart Security we leverage our extensive technological expertise to create intelligent

China. hardware products and cloud services powered by AI large models . Our smart security hardware business includes

smart cameras doorbell cameras dashboard cameras and more offering families and SMEs comprehensive

security solutions.Safety Technology for Good trustworthi- To empower individual users we upgrad-

ness and controllability are the core values ed our flagship products 360 Browser and 360

that guide our development of enter- Search to AI-powered versions – 360 AI

prise-grade vertical AI large models for Browser and 360 AI Search. Moving forward

businesses embarking on AI-powered digital we plan to integrate 360 Smart Brain’s large over 20 million users

transformation. 360 Smart Brain has contribut- model capabilities across our entire product

ed to the development of new quality produc- portfolio. This will redefine the paradigm of

tive forces. human-machine collaboration. more than 120 countries

and regions

Public services Transportation Cultural tourism AI content Smart generation Smart office management turst our security hardware and solutions

20 core industries Over 100 scenarios

Internet services

Our Internet business leverages high-performing

traffic channels to drive online revenue through Internet PC security products

advertising and services and value-added businesses MAU 470 million

like e-commerce and online games. By efficiently

Securing the top position in the

connecting businesses with consumers we effectively security market

monetize web traffic.Our Internet business generates revenue through

two primary channels. First we display advertising Browser and portal for PCs

within our computer software products like 360 Search MAU 410 million

360 Browser and 360 Safeguard. Second we offer Capturing a market

premium features and services that complement the share exceeding 85%

core functionalities of software products for paid mem-

berships.With the continued maturation of disruptive AI

applications like 360 AI Browser and 360 AI Search we

expect to see growth in both market share and traffic for

our PC products in 2024.

05 06About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development: the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Milestones

200520092011201320152016

Incorporation of Pioneered the free antivirus model Qihoo 360 went public at the New York Launched the Internet Security Established 360 Enterprise Security Completed the privatization of 360

360 Group reshaping the landscape of the global Stock Exchange (NYSE) Conference (ISC) a gathering for the Group Group

antivirus market security industry Completed a state-grade enhanced

security projet

2020201920182017

Renamed 360 Government and Enterprise Security Group Eliminated a high-risk RDP vulnerability Achieved a successful A-share listing Released the world’s first WannaCry

Built a next-generation security capability framework Published 360 Digital Security Strategy 3.0 360 Security Brain Deployment Strategy ransomware detection tool and

The 8th Information Security Conference (ISC 2020) made Some of our researchers were recognized by Microsoft as Achieved world-first defense against “Double Kill” APT self-rescue guide

history as the world’s first cloud-based summit to connect over MSRC Most Valuable Security Researchers zero-day

10000 attendees and earned the name “Everlasting ISC” Made the World Internet Conference’s Top Internet Achieve- First in the world to identify high-risk security vulnerabilities in

Made the World Internet Conference’s Top Internet Achieve- ments List again the EOS blockchain technology

ments List for the third time

202120222023

Launched the digital security capability framework Built urban digital security centers in more than 20 large and Strategically positioned AI and security as the twin pillars of our business strategy—more specifically AI as an engine for digital advancements and

Brain of Cloud Security (later upgraded to Brain of Digital medium-sized cities including the four municipalities directly digital security as the foundation for a thriving digital landscape—with the goal of empowering MSMEs

Security) under the Central Government and some provincial capitals Launched our homegrown 360 Security Large Model 4.0 which boasts 100 billion parameters and has passed national standard testing.Adopted a systematic approach to digital transformation and launched an enterprise security cloud to support MSMEs Launched the industry’s first security large model—360 Security Large Model

Named a Growth Stage Vendor by Forrester on their journey to digital prosperity Launched 360 Security Cloud a strategic digital security solution offering state-grade protection to cities governments and businesses (including

Spearheaded the development of an international standard SMEs)

for automotive cybersecurity

07 08Featured in 2023 Knowledge Graphs about Large Model

and AIGC Industries published by CAICT under the Ministry

of Industry and Information Technology

Featured in the World Artificial Intelligence Conference’s

2023 Most Innovative AGI Applications: Case Studies

Ranked among China’s Top 50 Most Innovative Organiza-

tions in AGI

360 Smart Brain’s AI large model solution for the tax indus-

try was ranked among Beijing’s Top 10 Industry-Specific

AGI Applications

About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development: the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Rewards and honors

Oct. 2023 Dec. 2023

Four Employees recognized as Chaoyang District’s 2023 360 Security Cloud’s SECaaS Solution was recognized by

Phoenix Plan High-Level Talents Xinhuanet as a Leading Digital Innovation for Empowering

Ranked No.7 on the 2023 List of Top 500 Private Enterprises Industrial Progress

for Invention Patents Named the Innovation Leader of the Year (2022-2023) by

Ranked among the 2023 Top 500 Private Enterprises by R&D China Business Herald

investment (the sole digital security company on the list for Named the Innovative Enterprise of the Year (2023) by The

two consecutive years) Economic Observer

Digital Security Named as a Famous Brand of 2023 in Software and Zhou Hongyi was ranked among the Top 25 Most Influential

Information Technology Services Business Leaders of 2023

Made the 2023 List of China’s Top 100 Internet Companies Ranked No.3 among Chaoyang District’s Top 20

We are committed to serving the nation through technological innovation and addressing invisible critical for Comprehensive Strength (for the 11th consecutive year) Fastest-Growing High-Tech Companies in 2023Claimed First Place in the 2023 Quanzhou Cybersecurity Zhou Hongyi was re-elected as Vice President of the Second

national security attacks. Our focus lies on developing robust digital security infrastructure. We prioritize Competition (Group Category) Council of China Federation of Internet Societies

360 Security Cloud was named a Leading 2023 Innovation

“security for all” and empower SMEs during their digital transformation journeys. for Driving Digital Transformation

Nov. 2023 One of the first companies to achieve Level-1 national

certification for data security services

Ranked among China’s Top 50 Fastest-Growing High-Tech

Jan. 2023 June 2023 Won the Golden Hat Award (Solution of the Year) Companies in 2023Won the Most Influential Enterprise of the Year Award at the Ranked among Snowball’s 2023 Top 100 Most Influential

2022-2023 Golden Wisdom Awards which recognizes

Achieved an AAA technology credit rating placing us Obtained certification for ISO/IEC 27001 and ISO/IEC 27701 Public Companiesexcellence in China’s cybersecurity and IT industries

among the first group of smart technology companies Ranked among the 2023 China Top 100 IT Innovation Enter- Zhou Hongyi won the Leader of Year Award at the 2024 Won the Solution of the Year Award at the 2022-2023

Zhou Hongyi won the 2022 Flag Bearer Award prises Jinge AwardsGolden Wisdom Awards

Made the 2022 List of Cornerstones of China’s Smart Manu- Won the Most Influential Company of the Year Award at the Ranked among Beijing’s Top 100 Enterprises

facturing 2023 Jinxi Awards

Zhou Hongyi’s proposal to the National Committee of the July 2023 Ranked 7th among Beijing’s Top 100 Digital Economy Enter-prises

Chinese People’s Political Consultative Conference in 2022 Ranked among Beijing’s Top 100 “Little Giant” Enterprises

was named ‘Proposal of the Year’ by the committee Ranked No. 1 among Beijing-based “Little Giant” compa- Recognized for expertise in digital chain solutions for SMEs

360 Security Cloud is featured as a best practice in IDC nies by the number of invention patents Selected as a Tier-1 IT service provider for the Chinese

PeerScape: China Digital Government Data Security Designated as the governing member of Zhongguancun National Vulnerability Database (CNNVD)

Practices Chaoyang Park’s Data Chain Industry Party Building Received a 4-star rating from the Ministry of Industry and

Alliance Information Technology as an IT service provider for

Made the 2023 World IoT Ranking List Top 500 CAPPVD

Feb. 2023

Recognized as the Most Influential Brand of 2022. Aug. 2023

Designated as the National Digital Literacy and Skills

Training Base Ranked among Top 3 in the 2023 Digital Human Companies

Won the top honor at the 2022 China Industry-Universi- Ranking List

ty-Research Institute Collaboration Innovation and Promo- Surpassed GPT-4 in the C-Eval Rankings by Tsinghua

tion Awards University and Shanghai Stock Exchange

March 2023 Sept. 2023

Featured as a best practice in the China Software Testing Ranked among Beijing’s Top 100 Private Enterprises

Center’s 2022 Cyber and Data Security Case Studies Ranked among Beijing’s Top 100 Small and Medium-Sized

Zhou Hongyi won the Outstanding Contribution Award at Private Enterprises

the Third Science and Technology Awards sponsored by the Ranked No.2 among Beijing’s Top 100 Private Enterprises

China Society for the Promotion of Science and Technology for Scientific and Technological Innovation

Commercialization Won the 2023 Golden Tripod Award in Financial Technology

Designated by the Ministry of Industry and Information Solutions

Technology as the Center for Promoting Innovative Securi-

ty-Focused 5G Applications (Henan Center)

09 10About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development: the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Nov. 2023 360 Smart Brain’s Large Model for the Tax Industry and 360

Security Large Model were featured in 2023 Knowledge

360 Smart Brain was named “New Light Product” at the Graphs about Industry-Specific AI Applications in China

2023 Light of Internet Expo Made the 2023 List of AI Large Models with the Most

360 Smart Brain won the Innovation Project Award at the Commercial Potential

2023 World IoT Awards Ranked among Top 50 Leading AI Enterprises

Named “China’s AI Large Model Pioneer for 2023” Ranked among Top10 Best AI Products of the Year 2023

Featured in 2023Q3 AIGC Industry Insights 360 Smart Brain’s Large Model for Finance was featured in

AI Featured in How Digital Technology Empowers the Real

Beijing’s White Paper on Innovative AI Large Model Appli-

Economy: Case Studies (2023) cations

Won the AI Breakthrough Award by The Time Weekly 360 Smart Brain was ranked among the 2023 List of Top 50

Our general-purpose large model 360 Smart Brain has 100 billion parameters. It aims to address global Zhou Hongyi was named “Person of the Year” at Cutting-Edge AI Large Models published at the Communi-

security challenges in large models. We’re committed to providing secure enterprise-grade AI large WISE2023 Kings of Business Conference cations Industry Conference 2023.model solutions and customizing safe and controllable vertical large models tailored to the specific Won the Security-Focused AI Innovation of the Year Award Featured in White Paper on Industry-Specific Large Model

at WIT2024 Applications in Chinaneeds of governments cities and enterprises. Successfully passed the compliance test for large model

standards conducted by China Electronics Standardization

Dec. 2023 Institute under the Ministry of Industry and Information Technology

April 2023 Selected as the deputy leader unit of AIIA’s Security Gover-360 Smart Brain’s AI large model solution for business nance Committee

incubation was ranked among Beijing’s Top 10 Indus- Featured in AIIA’s 2023 AI4SE “Silver Bullet”Applications:

Recognized as Chaoyang District’s Best Scientific and try-Specific AGI Applications Case Studies

Technological Innovation Team Selected by the China Electronics Standardization Institute 360 Smart Brain’s Large Model for Finance was featured in

(CESI) an organization affiliated to the Ministry of Industry huanqiu.com’s 2023 Global Trends: Case Studies (“Scien-and Information Technology to lead the Large Model Task tific and Technological Innovation” part)

Force under the National Artificial Intelligence Standard-

May 2023 ization Team

Featured in 2023 Most Innovative AGI Applications: Case

360 Smart Brain’s application Tuchacha (map search) was Studies

selected as a generative AI best practice example Featured in Potential of China’s AIGC Market 2023

Selected for the Beijing AGI Innovation Partnership Featured in Research Report of AI Business Investment

Program (one of the first organizations to be selected for Value in China 2023

the program)

June 2023 Sept. 2023

Selected as the deputy leader unit of the Large Model Task

Ranked among China’s Top 10 Most Innovative Enterprises Force of CAICT’s Key Laboratory of Artificial Intelligence

in Artificial Intelligence for 2023 Zhou Hongyi was selected for the 2023 Beijing Scholars

360 Smart Brain became the first to pass the China Acade- Program

my of Information and Communications Technology Awarded the highest rating (4A+) in CAICT’s AI trustworthi-

(CAICT)’s trustworthy AIGC test ness evaluation

Selected by AIIA to develop China’s Large Model Applica- Became one of the first members of AIIA’s AI4SE (AI for

tion Standard—Large-scale Pre-training Model Technology Software Engineering) team

and Application Evaluation Methodology Part IV: Model Leading AI Enterprise Award (Application Innovation

Application Category)

July 2023 Oct. 2023

Featured in 2023 Knowledge Graphs about Large Model Won the “5G+AI” Security Large Model for Smart City

and AIGC Industries published by CAICT under the Ministry Award (5G Cybersecurity Situational Awareness and

of Industry and Information Technology Monitoring Category)

Featured in the World Artificial Intelligence Conference’s

2023 Most Innovative AGI Applications: Case Studies

Ranked among China’s Top 50 Most Innovative Organiza-

tions in AGI

360 Smart Brain’s AI large model solution for the tax indus-

try was ranked among Beijing’s Top 10 Industry-Specific

AGI Applications

11 12About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development: the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

ESG Managemen

Stakeholder identification and communication

At 360 Security 360 Security we uphold the highest standards of legal and regulatory compliance and priori-

tize social responsibility and sustainable development. We actively engage with stakeholders including regula-

Public Welfare and Social Responsibility tors investors users employees and partners through various channels to understand and address their ESG

concerns.We believe in the impact of every act of goodwill anyhow no good deed is too small.Stakeholders Concerns Communication and feedback

Compliance with laws and Policies and guidelines

Government and regulations Oversight and inspection

March 2023 Nov. 2023 regulatory bodies Compliant operation VisitsFair competition Disclosure of information

Zhou Hongyi won the 2022 “Glory Star” Figure of the Zhou Hongyi was recognized as China’s Most Socially

Year Award. Responsible Entrepreneur of the Year 2023 by the All-China

Federation of Industry and Commerce Annual general meetings of

Made the List of Top 10 Corporate Givers of the Year

July 2023 Shareholders

Financial stability

published at the 2023 Public Welfare Ceremony held by /investors Transparency

stakeholders

ifeng.com’s Action League Risk control Corporate announcements

Selected as an exemplary model for CSR practices in the Investor communication

Internet sector by China’s Cyberspace Administration

Won the Outstanding Party Award by the Beijing Internet Dec. 2023

Association Party Committee

Recognized for excellence in Party building by the Beijing Became Love & Hope’s brand promotion partner in 2023 Quality products and services

Internet Association Party Committee User feedback channels

Clients and users User experience Social media engagement

Data security and privacy

Sept. 2023 Customer satisfaction surveys

Ranked among Beijing’s Top 100 Private Companies with

the Best CSR Reputations Recruitment

Employees Employee rights protection

Employee training and communication

Oct. 2023 Employee training and development Employee wellness programs

Work-life balance Employee feedback channels

Ranked among China’s Top 500 Most Philanthropic Employee satisfaction surveys

Companies in the Services Sector

Ranked among China’s Top 500 Most Philanthropic

High-Tech Companies Fair cooperation

Won the 2023 CPSE Golden Tripod Award Supplier management

Won the 2023 G-Mark Good Design Award Mutual benefitsSuppliers and partners Supplier meetingsSustainable supply chain Industry events

Supplier empowerment Technical cooperation

Environment protection Strategic partnerships

Communities and media Social welfare programs Media engagement

Corporate social responsibility Community engagement

13 14About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development: the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Material issue identification and materiality matrix

We identify our sustainability challenges and priorities through a comprehensive analysis process Materiality matrix

which takes into account national policies industry trends development strategies our business

Low-priority issues Medium-priority issues High-priority issues

performance as well as input from both internal and external stakeholders.

51

After assessing identified material ESG issues we create a materiality matrix based on their signifi- 8

3

cance to both the Company and our stakeholders. 9 4

1811

127

6

1913210

14

21201615

17

22

High-priority issues Medium-priority issues Low-priority issues Significance to the Company

1、Data security and privacy 11、Investor relations 20、Low-carbon practices

2、Safety and emergency management 12、Internal control and risk management 21、Energy management

3、Corporate governance 13、Business ethics 22、Pollution control

4、Disclosure of information 14、Employee right protection

5、Compliant operation 15、Employee compensation and benefits

6、Technological innovation 16、Occupational health and safety

7、Intellectual property protection 17、Supplier management

8、Talent training and development 18、Industry cooperation and development

9、Customer services 19、Social welfare

10、User experience

Note: Green = Environmental Issues Red = Social Issues Blue = Governance Issues.Horizontal Axis: Significance to the Company; Vertical Axis: Significance to Stakeholders

1516

Significance to StakeholdersAbout 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

02

Chapter Two

Feature:“ All in AI” Fuels

the Development of New

Quality Productive Forces

17 18About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

The rapid advancement of AI technology has positioned AI large models at the forefront of the 360 Smart Brain is gaining recognition for its multifaceted capabilities

global technological race. These powerful models are unlocking a wealth of niche opportunities By applying the aforementioned training methods we ensure reliable performance for real-world

acting as a new engine for economic growth with immense potential across a wide range of applica- applications. This commitment to reliability is a key factor behind our customers’ high satisfaction.By

tions. China hasn’t missed a beat in this race. Recognizing the immense potential of AI China has applying the aforementioned training methods we ensure reliable performance for real-world appli-

placed significant focus on the advancement of the technology in recent years. By elevating AI to a cations. This commitment to reliability is a key factor behind our customers’ high satisfaction.national priority and implementing a series of supportive initiatives China has cultivated a fertile

ground for the AI large model industry to flourish.Driven by the rapid advancement of AI technology worldwide and the need to address AI security Indusry-specific models Exceed 95% accuracy

challenges 360 Security has entered the field of AI large models. Leveraging our extensive experience

in AI and the unique advantages of our search engine browser and other products we’ve dedicated

significant resources to core technology R&D in the past year. This has resulted in the development of Tex Security Healthcare Insurance Government

knowledge

360 Smart Brain a cognitive large model boasting hundreds of billions of parameters. Designed for affairs

broad applicability 360 Smart Brain boasts comprehensive capabilities that position it among the

leading large models in China.

360 Smart Brain a key player regarding China’s national AI strategy

During the reporting period 360 Security was selected by the CESI to

360 Smart Brain has seen continuous improvement in its core functionalities lead the Large Model Task Force under the National Artificial Intelligence

Standardization Team. This positions 360 Security at the forefront of

To support our growing training and inference needs we’re continuously scaling up our comput-

shaping large model standards in China. In December during the plena-

ing center and optimizing the performance and stability of our GPU cluster. This has enabled us to

ry meeting of the Artificial Intelligence Subcommittee of the China

achieve world-class training performance for our 100-billion parameter model with computing power

National Information Technology Standardization Network (NITS)

that seamlessly handles even the most demanding workloads.China’s first official compliance test results for large model standards

The 360 Smart Brain team has developed a comprehensive suite of training methods specifically

were announced. 360 Smart Brain emerged as one of the first four

designed for vertical large models. These methods encompassing everything from pre-training to

domestic large models to successfully pass the test.reinforcement learning have significantly enhanced the model’s capabilities in various areas. Addi-

tionally the integration of cutting-edge RAG technology has led to substantial improvements.

360 Security contributes to overcoming the world’s most complex problems

Improvements through its focus on AI security

With a focus on large model security 360 Security has helped companies like Google and Meta

fix over 200 vulnerabilities in AI frameworks safeguarding over 4 billion devices worldwide. We

have developed a comprehensive suite of large model security solutions. This includes security

Multi-round Long text Parameter Code Multi-model

dialogue understanding analysis generation recognition constraints within the Agent framework enabling co-pilot mode and essentially reining in large

models. Additionally 360 Security has launched the AISE large model security risk evaluation

system laying a strong foundation for the sustainable development of large models in China.

19 20About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

During the reporting period 360 Security launched the GPT Industry Alliance a consortium Enterprise-grade knowledge management system

designed to unite leaders align strategies and combine resources and expertise across the industryto promote research development and application of AI technologies. Through the “AI for Business KMSPHERE our enterprise-grade knowledge management system tackles challenges relating toGrowth” initiative we facilitated collaboration across the value chain with over 1000 application high complexity of knowledge and the vast amount of storage required to store information by using

partners empowered more than 100 partners within the industry and incubated over 10 unicorns in data collected real-time from internal and external sources. It features a plug-in architecture for multi-

the AI industry accelerating their growth and contributing to the broader vision of Digital China. modal data processing and retrieval powered by a homegrown vector database. With an ability to

search over 10 billion of vector datasets KMSPHERE supports over 100 data formats and boasts

Enterprise-grade knowledge management system impressive recall and accuracy rates both exceeding 90%.Safety technology for good trustworthiness and controllability are the core values that guide our develop-

ment of enterprise-grade vertical AI large models for businesses embarking on AI-powered digital transforma-

tion. By empowering organizations across 20 core industries including public services finance tax healthcare

manufacturing and cultural tourism with enterprise-grade AI solutions 360 Smart Brain has contributed to the

development of new quality productive forces.Public services sector KMSPHERE

Within the public services sector we have collaborated with the government of a city to develop a

public services-focused large model and continuously improve its applications. This effort has

increased the accuracy of responses to knowledge-based questions in public services from 74.49% to

94.44%.

Financial sector

In the financial sector we have built customized AI-powered solutions for banks including AI meeting

assistants AI tools for compliance documentation and AI-powered customer service chatbots. These

solutions have led to a 20% increase in first contact resolution rates and a 15% jump in customer satis- AI Agents framework

faction rates.The R&D team at 360 Smart Brain has developed an AI Agent framework incorporating flow

orchestration API plug-ins knowledge bases and prompt management. This framework serves as a

Taxation sector comprehensive development platform for building vertical scenario Agent products. Additionally 360

Smart Brain has established a business collaboration platform based on this Agent framework. The

In the field of taxation 360 Security has built a large model that achieves an accuracy of 75% on collaboration platform integrates large models with the Company’s existing digital systems. This

the Certified Tax Agent Qualification Examination outperforming GPT4.0. allows for targeted optimization within the business workflow enhancing overall automation and AI

capabilities without disrupting existing digital processes.During the reporting period 360 Security launched the GPT Industry Alliance a consortium

designed to unite leaders align strategies and combine resources and expertise across the industryto promote research development and application of AI technologies. Through the “AI for BusinessGrowth” initiative we facilitated collaboration across the value chain with over 1000 application

partners empowered more than 100 partners within the industry and incubated over 10 unicorns in

the AI industry accelerating their growth and contributing to the broader vision of Digital China.

21 22About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

360 security model

AI is rapidly transforming every industry. Companies with access to large models are well-posi-

Drawing on 20 years of security expertise 360 Security has amassed a vast collection of securi- tioned to leverage this technology to unlock new possibilities and elevate the user experience. We

ty-related big data including data on offensive and defensive techniques vulnerabilities and viruses. have upgraded our widely used Internet portals 360 Search and 360 Browser to 360 AI Search and 360

These extensive datasets are used to generate high-quality training materials for our AI models built AI Browser – powered by the advanced capabilities of 360 Smart Brain.on 360 Smart Brain. By combining big data strong computing power and cutting-edge algorithms

we’ve developed 360 Security Large Model the country’s first security-focused large model. This pow-

erful model enhances our entire product suite enabling features like efficient security consultations

analysis of security threats incident processing and pinpointing the source of attack threats.A recent report by CCID Consulting China Security Large Model Technology and Application 360 AI Search（https://www.sou.com/）

Research Report (2023) evaluated security large model providers across technology capability and

application. With exceptional strengths in data processing and computing power 360 Security Large

Model secured the top spot for comprehensive capabilities.Search engines have become an indispensable tool in our daily lives. Users of traditional search

engines face three pain points:

Traditional search Users often have to The quality of

engines are sensitive click through information can vary

to the specific countless links before wildly making it hard

keywords used in a they find the relevant to tell what’s reliable.search query. Minor information they are Users often have to

variations in wording looking for. sort through a sea of

can lead to significant- information to find

ly different results. the most accurate sources.The rise of large language models is fundamentally changing how people search. Users are no

longer satisfied with simply finding information – they want results that are useful. Subscription

360 Security is dedicated to providing government and businesses with effective solutions and best services for example have become a new revenue stream for them. Fueled by this growing demand for

practices to combat challenges and threats in today’s dynamic digital security landscape shaped by the useful information the search industry is rapidly integrating AI.evolving political climate and international relations.

360 security AI Agent

Opinion Engines:

Our 360 Security AI Agent built on 360 Security Large Model connects configures and manages Traditional Search These engines curate

Engines: These and present content AI-powered Answer

various security tools. It has achieved a remarkable feat by autonomously identifying APT attacks engines help users that they believe Engines: These

within just one minute with analysis reports generated – all without human intervention. This AI Agent find fact-based users can trust; engines synthesize information or fact-based responses

system has significantly boosted the security performance of individual products and the entire system locations on the to user queries from

web; third-party sources.as a whole.

23 24About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

360 AI Search represents the next generation of answer engines. Building upon traditional web 360 AI Browser could generate mind maps and highlights for long videos

retrieval capabilities it integrates advanced technologies such as intent recognition information

extraction summarization organization and text generation of large language models to mimic

human thought and language patterns. This enables the engine to produce high-quality logically

coherent answers. User testing demonstrates that answer engines significantly boost their information

acquisition efficiency.Comparison of search results of a traditional search engine (left) and 360 AI Search (right)

360 AI Browser could generate mind maps and highlights for long articles

360AI Browser（ai.se.360.cn）

In the past browsers primarily focused on delivering news and fact-based information. However

browsing habits are evolving. Today users are consuming more in-depth content like articles and

videos leading to longer browsing sessions. This shift creates a demand for improved browsing

efficiency. They want browsers that can automatically extract key points and highlights from lengthy

articles and videos. AI large models are revolutionizing industries by creating new forms of value adapting to new

To address this pain point of users we launched the 360 AI Browser which is powered by our needs and reshaping new growth engines. They’re a key driver in accelerating the development of

large model 360 Smart Brain. This browser empowers users to boost productivity and learning new quality productive forces. At 360 Security we’re committed to continuous innovation. We’ll keep

efficiency. It can condense lengthy content – videos articles books and long web pages – into easily refining our large models and empowering 360 Smart Brain with even greater capabilities. Through

digestible summaries and mind maps. It also provides multi-language translation. Users can navi- the integration of generative AI across all applications and operations we aim to deliver more

gate to specific sections by clicking on content of interest in the progress bar. An AI assistant is also value-added services to our users fostering both the diversification and commercialization of AI tech-

available to answer questions redefining browsing experience for users. nology to boost high-quality development of China’s digital economy.

25 26About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

03 B R E A K I N G N E W SH E A D L I N E S B R E AL KA I NTO D AY ’ S H E A D L I N E S S T E S G N E W NS EA N WD SV I D E O S

Chapter Three

H E A D L I N E S

Sustainable Governance:

Strengthening Accountability

R E A D M O R E

Standardized governance Integrity TO D AY ’ S H E A D L I N E S

Internal control Fair competition

Risk control Party building

Compliance management

27 28About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

At 360 Security we recognize the critical role of a strong gover-

nance system in achieving sustainable corporate development. We Disclosure of information

are committed to continuous improvement in this area focusing on

optimizing our governance structure strengthening internal control We diligently fulfill our information disclosure obligations in accordance with relevant laws and regu-

and risk management practices and upholding the highest ethical lations. Our information disclosure framework including the Information Disclosure Policy and the Policy

standards. Through these efforts we strive to create sustainable on Suspension and Exemption of Information Disclosure ensures that all shareholders and investors

value for all stakeholders. have equal and timely access to accurate and complete information concerning the Company. This is part

of our efforts to safeguard investor rights.Global transparency: We have published ESG reports for two consecutive years highlighting our commitment to sustainable development and

Standardized governance showcasing our achievements in ESG areas to investors worldwide. This transparent approach aims to provide global investors with comprehen-sive insights into 360 Security.Governance structure Demystifying tech talk: We understand that our field can involve technical terms and jargons like ‘AIGC’ ‘APT’ and ‘IoT.’ That’s why we

360 Security is committed to operating with the highest standards of corporate governance. We prioritize clear and easy-to-understand language in all our external communications. We also offer explanations of these terms ensuring every investor grasps the full meaning behind our message.

adhere to all relevant laws regulations and standards including Company Law of the People’s Republic

of China Securities Law of the People’s Republic of China Guidelines for Corporate Governance of Listed

Companies and Rules Governing the Listing of Stocks on Shanghai Stock Exchange. Our governance

framework is built upon a clear structure comprising annual general meetings the Board of Directors Standardized insider information management: We take insider information management

the Board of Supervisors and the management team. The Board of Directors has three specialized com- seriously. Through rigorous registration and management procedures for those accessing insider

information we prioritize the confidentiality of insider information while upholding fairness and

mittees: the audit committee the nomination and remuneration committee and the strategy committee. transparency in information disclosure. This commitment protects the rights of our investors and

Each committee has clearly defined roles and responsibilities fostering collaboration and ensuring ensures a level playing field for all.effective checks and balances. We prioritize continuous improvement in our governance practices

emphasizing standardized operations to safeguard the long-term interests of both the Company and its

shareholders.Annual general meetings the Board of Directors Investor relations

and the Board of Supervisors

We have established a comprehensive set of procedural guidelines including those for annual gen- We prioritize strong investor relations. Our Investor Relations Policy guides our active engagement

eral meetings Board of Directors’ meetings independent directors and the Board of Supervisors. These with investors and potential investors. Through regular performance briefings strategy discussions

procedures comply with all relevant requirements of the Articles of Association of the Company and reverse roadshows and interactive platforms we actively engage with investors and potential investors

govern the convening and holding of meetings and voting processes within our various governance to help them foster a deep understanding of the Company and build a long-term stable relationship with

bodies. Our specialized committees are structured and operate in accordance with relevant regulations investors. In addition to routine updates on our development strategies and performance we proactively

to ensure that all major decisions and actions undertaken by the Company are lawful compliant accu- spread our ESG initiatives providing valuable insights that empower investors to make informed deci-

rate and effective thereby contributing to the Company’s long-term stability. sions.Policy revision: During the reporting period we revised the Operational Framework for Independent Directors of 360 Security Technology

Inc. This revision aligns with the latest regulatory guidelines including the Guidelines for the Reform of the Independent Director System of

Listed Companies and Measures for the Management of Independent Directors of Listed Companies and reflects the latest standards for

independent director appointment meeting participation and annual performance reporting.Compliance training: We offer training for directors supervisors and senior executives to keep them up-to-date on key compliance Investor Hotline: Responded to Securities Department’s

topics ensuring they are well-equipped to fulfill their duties in accordance with relevant laws and regulations. Hosted over 300 investor

receptions throughout the year over 95% of calls received Public Email: Reviewed

Board diversity: As of the end of 2023 our Board of Directors comprises six members including three independent directors and one during working hours all incoming emails.female director all with a master’s degree or higher. Their expertise spans security technology finance law accounting and other relevant

29 fields. 30About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Internal control Risk control

We have established a robust internal control framework aligned with the Basic Standards for We continuously refine our risk management framework which includes risk tracing risk identifi-

Enterprise Internal Control and related guidelines. This framework includes internal control and cation and formulation of corresponding risk management measures based on the assessment of the

routine oversight mechanisms such as the Internal Audit Policy. We regularly evaluate the effective- severity likelihood and frequency of potential risks. By proactively identifying assessing and

ness of internal control and promptly address any deficiencies. The Internal Audit Department oper- mitigating potential risks we are able to adapt to evolving internal and external environments and

ates independently under the guidance of the Board of Directors and reports to the Board of Directors’ fostering long-term sustainable growth.Audit Committee.During the reporting period we evaluated the effectiveness of internal control and identified no Risk control process

significant deficiencies in financial or non-financial reporting.Identifying sources of risk Risk assessment

Prioritizing identified risks based on their potential

Internal control measures Interviewing stakeholders impact and likelihood of occurrence etcReviewing past litigations customer complaints and

Internal control targets Segregation of duties administrative penaltiesRisks and disputes relating to product compliance and

To ensure compliance with all applicable laws Authorization controls contractual performanceAnalyzing laws regulations and government policies

regulations and rules Accounting controls impacting our core business activities and developing

To ensure the safety of company assets Budgetary controls corporate bylaws to ensure compliance with all relevant Risk monitoring measureslegal and regulatory requirements

To ensure that disclosed information is true accu- Operational analysis and Risks associated with other operational activities etc

Process monitoring and auditing

rate complete and accessible to all investors Routine inspections and follow-up checks

performance appraisal Policy development and implementationTo enhance operational efficiency and effectiveness Risk awareness training and management

To support the implementation of our development Information security controls Complaint mechanism etc.strategies

Risk handling

Enhancing systems and addressing vulnerabilities

Optimizing management processes and enhancing Outcomes of risk handling efforts

business oversight

Establishing clear individual accountability and Preventing and mitigating risks through various

improving reward and punishment mechanism measures etc.Establishing risk limits formulating risk guidelines

standardizing business practices etc.

31 32About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Compliance management Integrity

We are dedicated to fostering a culture of compliance. We achieve this by continuously strengthen- At 360 Security we are committed to fostering a culture of integrity. We have formulated a series of

ing our compliance management system and offering regular training learning and awareness policies including Malpractice Prevention Policy Gift Acceptance Policy Supplier Blacklisting Policy

programs. This commitment to compliance is a cornerstone of good corporate governance and contrib- and Key Personnel Management Policy to prevent fraudulent activities and cultivate a business envi-

utes significantly to our long-term sustainability. ronment built on honesty and mutual benefits. No instances of fraud or commercial bribery were

reported during the reporting period.Contractual Dispute and Risk

Management Measures Official Seal Management Policy

All employees signed the Intergrity Pledge

Legal Review Guidelines for Business

Registrations and Their Modifications Procedure for the Loan

and Cancellations of the Official Seal

Guidelines for Drafting Compliance

system Contract Management MeasuresProduct-Specific Privacy Policies

Procedure for the Loan of Certificates Contract Archiving andAccessibility Policy

Malpractice prevention

Business Seal Management Policy Training Policy of the Legal and Compliance Department etc. We promote ethical conduct throughout our supply chain by entering into

Business Integrity Agreements with our partners. These agreements establish a

shared code of business integrity helping to prevent commercial bribery.By signing the Integrity Pledge employees are committed to acting with

Case: Compliance training integrity avoiding conflicts of interest and upholding highest ethical

standards.In 2023 we conducted over 10 online training sessions (approximately 40 minutes per session) on Our Whistleblower Protection and Reward Policy encourages

employees and business partners to report suspected wrongdoing. Reporting channels

compliance covering critical areas like personal information handling Internet advertising regula-

tions and how to navigate legal risks in contracts. Additionally we tailored training sessions for each This policy ensures strict confidentiality of the identity of report- Email: jubaoxin@360.cn

ers and provides special protection for named whistleblowers.business division ensuring a deep understanding of industry-specific compliance expectations and A dedicated team manages these reports and eligible Telephone: 010-58781520

code of conduct. whistleblowers may receive appropriate rewards.Online: Use the “360 Ethics Committee” WeChat

account

Mail: Ethics Committee Building of 360 Securi-

ty No. 6 Jiuxianqiao Road Chaoyang District

Beijing

184In-person: Visit the designated report-

ing location

Legal Compliance Compliance Training for Marketing Compliance Official Seal Management

Training Centralized for the Technical and Contract Review

Supply Chains Middle Office Guidelines

33 34About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Case: Malpractice prevention training Fair competition

In 2023 we conducted 18 in-person malpractice prevention training sessions for new employees At 360 Security we are committed to upholding the highest ethical standards and promoting fair

and those in critical positions also external partners. These training programs have significantly raised competition. We strictly adhere to the Anti-Monopoly Law and Anti-Unfair Competition Law of the

awareness of integrity among both our employees and business partners. People’s Republic of China as well as other relevant regulations. We have developed a robust anti-mo-

nopoly framework which includes a compliance manual training program appraisal mechanism and

relevant processes. This framework ensures all employees are equipped with the knowledge to act in

Over 630 employees Over Over 120 individuals full compliance with anti-monopoly regulations in every aspect of their work thereby contributing to an 40 Suppliers

120 individuals from suppliers from suppliers open fair and just market environment.

Building a Culture of Fair Competition

Case: Ethical conduct promotion

We keep our employees informed about the latest anti-monop-

oly regulations and urge them to uphold the Company’s commit-

We promote ethical conduct through engaging offline and online campaigns. These campaigns ment to fair competition through a comprehensive communication

utilize a diverse mix of content including posters graphics emails videos and interactive activities strategy utilizing our internal website announcements and emails.to reach all employees and encourage their active participation. They have been effective in ensuring

employees keep integrity top of mind.Employees are required to complete mandatory video

training modules on our internal website. Additionally we

conduct targeted internal sessions for key departments

and personnel. These sessions delve deeper into relevant

regulations and equip participants with the practical skills

necessary to navigate anti-monopoly compliance risks in

their daily work.Case: Observations on Anti-Unfair Competition Cases

Given the frequent updates to anti-unfair competition laws and increased regulatory scrutiny inrecent years we’ve compiled a 34000-word report titled “Observations on Anti-Unfair CompetitionCases”. This report analyzes various forms of unfair competition including counterfeiting deceptive

marketing marketing or selling cheating programs unauthorized commercial use of resources owned

by others and unlawful comparative advertising/smear campaign through real-world cases in the

industry. By studying these cases we equip employees with the skills and knowledge they need to

identify and prevent unfair practices.

35 36About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Party building

In 2023 we formulated the Work Plan of 360 Security’s Party Committee for Surveys and

Guided by the principles of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Research and conducted more than 20 surveys across our business lines. Through these

Era the Company has conducted training programs aligned with the spirit of the 20th National Con- surveys we gathered valuable insights to guide problem solving and solution development.gress of the Communist Party of China (CPC). These programs emphasize the importance of learning

theories of the CPC and putting them in to practice carrying forward the spirit of the Party and achiev- Party building meetings and lectures Held a expansive meeting of the Party Committee

ing new milestones in Party building. Through these initiatives we are steadfastly advancing towards

high-quality development.Party Committee establishment

Party basic The Company established a Party branch in 2011. In 2013 the Party organization’s oversight was transferred to the Beijing Internet Association Party Committee. In January 2014 it was upgraded to a

information Party committee.Members of the

Party Committee The Party Committee has 9 members including one Party Secretary.The Company has 1194 Party members with an average age of 31.7 years old. These Party members

Party members are spread across 23 business lines including digital security smart products urban industries

Internet smart life and commercialization.Designated as the governing member of Zhongguancun

Won the title of Outstanding Party Organization

Chaoyang Park’s Data Chain Industry Party Building Alliance Fostering a strong and unified leadership structure through Party building

In 2023 we strengthened Party leadership by inviting Party Committee members to

attend major business and management meetings where over 100 important proposals

were discussed. We also assigned Party Committee members to oversee party branches of

our business lines.We released Key Objectives of Party Building for the Party Committee of 360 Security

conducted four quarterly Party building meetings and distributed task lists to ensure

relevant personnel have a good understanding of their Party building responsibilities.Solidifying the foundation for stronger support

Party building activities In 2023 we implemented a comprehensive improvement

initiative to address identified weak links in Party building.Strengthening political consciousness Grassroots Party organizations actively participated in this initiative completing all rectification tasks.Our Party Committee has conducted training programs on Xi Jinping Thought on Social- We also organized special Party branch activities

ism with Chinese Characteristics for a New Era. In 2023 we organized 12 study sessions and collaborated with Party organizations from other

focused on this subject and facilitated reading classes to delve deeper into its principles. companies and institutions to conduct joint Party build-ing activities and launch a collaborative Party building

program called “Party Branches Hand in Hand”.We utilize our WeChat account intranet and other platforms to offer open access learning

materials relating to Party building.

37 38About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

The Ninth Party Branch organized community The Ninth Party Branch celebrated the PLA Day Prioritizing talent development

outreach Party building activities Quiz Contest centering around Party building

We have built a talent pool of 44 management professionals and 12 individuals with

expertise in Party affairs identified through both internal recommendations and self-recom-

mendations.In 2023 we conducted a special training program on the spirit of the 20th National Con-

gress of the CPC for middle and senior managers. Over 50 managers participated in the train-

ing.We have mobilized resources to support the establishment of exhibition areas showcasing

Party building achievements grassroots Party building initiatives and a Party education

resource library.

360 Security partnered with the Bank of Beijing 360 Security partnered with the Office of Cyberspace Outstanding Party building programs

to host a Party Day event Administration of Beijing to host a Party Day event.Our Party Committee integrates Party building

initiatives with our corporate strategy. Building on

the success of supporting MSMEs we remain

committed to our mission by leveraging our core

strengths to launch the 360 Security Cloud for

Enterprises. This comprehensive digital security

and management platform provides one-stop

services for MSMEs simplifying security compliance

reducing operational costs and improving office

efficiency. By empowering MSMBs in their digital

transformation journey we help them mitigate Won Outstanding Party Building

security risks and overcome digital challenges and Program Award

strengthen the brand image of our Party Committee.

39 40About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

04

Chapter Four

Sustainable Business

Practices: Driving Growth

in Digital Security

Security management systems

Security governance measures

Security emergency management

User privacy protection

Security awareness programs

41 42About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Security governance framework

Security is at the core of everything we do at 360 Security. Our com-

mitment to product security data security and user privacy has been We have established a comprehensive data security governance framework with clearly defined

unwavering throughout our journey of technological innovation. We roles and responsibilities. This framework consists of four key elements: a dedicated data security com-

implement rigorous security standards and continuously improve our mittee a specialized data security team a data security audit function and an operational team

security management system. By leveraging cutting-edge technologies responsible for execution. Working collaboratively these teams ensure comprehensive data security

we strive to foster a secure and trustworthy digital ecosystem. management and compliance throughout the organization. This framework provides overarching guid-

ance for our data security compliance efforts.Security management systems Data Security Committee

Privacy Ecological and Strategic Legal Center InformationDepartment Cooperation Cente Security Data platforms

Internal Audit and Marketing and

Supervision Center Communications Center

Data audit agency

Execution Department (Business Department)

ISO 27001 information security ISO 27701 privacy information

management system management system Security governance principles

The Company strictly adheres to relevant security and privacy laws and regulations including the

Cybersecurity Law the Data Security Law and the Personal Information Protection Law of the People’s Our commitment to data security compliance and risk

Republic of China. We have put in place a comprehensive information security management system management practices safeguard the sustainable growth of

which includes security thresholds and standardized practices for infrastructure security data security our business. Through responsible data development and

privacy protection product security and secure third-party collaboration. utilization practices we ensure our data is leveraged effec-

During the reporting period we revised our Supply Chain Security Management Policy Data Security tively while adhering to established data use standards and

Management Manual Information Security Management Guide and other relevant corporate policies. ensuring data security across all scenarios. We also facili-

tate lawful and controlled data sharing and implement

practices that promote both data security and business

Corporate policies relating to data compliance development.Employee Information Security Manual

Information Security Risk

Management Standard

Data Security Management Manual Data security management principles

Personal Information Protection Policy Guidelines for Compliance with Personal Principle of Clear Roles and Responsibilities Principle of Non-Transferable Responsibility

Supply Chain Security Management Policy Information Laws and Regulations

Data Security Management Policy Information Security Management Guide Principle of Compliance Principle of Least Privilege

Data Security Emergency Management Policy Principle of Quality Assurance Data Protection Principle

Cyber Incident Response Plan

Principle of Data Minimization Auditability Principle

43 44About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Risk control Security governance measures

We have formulated the Information Security Risk Management Standard to provide a standardized We are actively building a robust defense system specifically designed to address real-world threats

approach for all departments to identify assess and mitigate potential security risks. This standard and integrate it into our everyday operations. To achieve this we continuously strengthen our internal

clearly defines roles and responsibilities of related personnel and aims to control security risks associat- security capabilities and bolster our risk warning detection analysis research and response functions.ed with information generated during business operations management and internal controls By prioritizing resource integration and capability development we effectively meet the evolving needs

ultimately contributing to the safe sustainable and stable operation of our business. of our business lines.We have established a four-tier information security governance structure. This structure comprises

an information security management committee an information security department information secu- Defense system

rity specialists within each department and a security audit team.Actions and Processes Our security products and platforms are We are committed to enhancing and We are developing a security analysis

designed to provide comprehensive standardizing the processing of security platform that focuses on threat data

protection across all critical user scenarios data across all dimensions enabling gathering. This platform will empower our

Prepare for risk assessment including networks devices applications security analysts to make timely and security teams to analyze operational data

user authentication and sensitive data. informed decisions. with greater efficiency.This multi-layered approach empowers us

to detect security events with greater

accuracy and significantly reduce the risk

of missing potential threats that might

evade single-scenario defenses.Identify asset Identify threat Identify vulnerability

Security operation practices

Confirm existing security measures

We leverage advanced analytics to We implement standardized procedures for We have developed emergency plans for

transform vast amounts of raw data into security incident handling. These diverse threat scenarios. These plans

actionable security insights prioritize procedures bolstered by closed-loop based on expert experience aim to

high-risk incidents and minimize false assessments ensure a consistent baseline minimize operational disruptions during

Calculate risk positives. These practices ultimately reduce of security across all our operations. emergencies and mitigate potential losses

the overall burden on our security from security incidents.management system.Is the risk within Yes Current security measures

acceptable be maintained Efficiency of security operations

levels

No

We leverage the Security We simulate real-world We conduct regular We are at the forefront of

Select appropriate security measures Brain SOC platform to intrusion attempts to offensive and defensive deploying large models in security

and assess residual risks continuously gather evaluate the effectiveness security exercises. These operations. By leveraging the

security data. We have of our security measures. exercises allow our analysis judgment and reasoning

No developed a security security teams to gather capabilities of 360 Security Large

operation indicator (SOI) critical data to strengthen Model we have automated a

Are residual risk evaluation system to our overall security significant portion of our security

within acceptable enhance our security posture. analysis and task processing

levels capabilities and thereby remarkably enhancing the

operational efficiency. efficiency of our daily security

operations.Take risk management actions

45 46About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Functions of our defense system Case: 360SRC’s incentive programs for white hats

The 360SRC Emergency Response Center is our external platform for collecting security vulnerabili-

Threat Detection: Our security ties and threat intelligence related to our products. This center is dedicated to safeguarding both our

Threat Visibility: We leverage model built on expert experience Threat Response: We have products and operations while maintaining collaboration and knowledge exchange with security

comprehensive security detection incorporates multi-dimensional combined our operational

products to collect and centrally researchers known as “white hats”. We actively contribute to a vibrant white hat community by recog-security operation analysis processing platform information

manage data from various capabilities including security security platform automated nizing contributions through reward programs and an honor roll. Our commitment extends beyond

sources including security alerts monitoring analysis traceability response technology and recognition with online thank-you events offline salons and annual White Hat Awards ceremonies cele-

and original logs. This system evidence collection defense standardized procedures to

allows for traceability of original assessment and operations ensure effective closed-loop brating their achievements. These initiatives are instrumental in building a robust digital security ecosys-

logs and large-data analysis of management. This enables our response to security incidents. tem safeguarding businesses and products for hundreds of millions of users.security alerts. security teams to make informed

judgments about security alerts.Information security platform

Our information security platform plays a vital role in ensuring security. It is embedded throughout

the entire application development lifecycle. We integrate security management and control into every

stage from research and development to testing release and operation through four major platforms:

compilation and release security incident handling and operations automated scanning and threat

detection platforms. We manage vulnerabilities in accordance with industry standards and regulatory

requirements. To ensure timely remediation we maintain frequent connections with CVE databases for

real-time vulnerability updates classify vulnerabilities define resolution timelines and promote efficient

remediation through batch vulnerability patching. Additionally we have established a vulnerability

disclosure process transparently disclosing high-risk vulnerabilities through our official channels such Case: 360 Wentian China’s first mobile security threat detection platform

as the WeChat account and company website. To further enhance our vulnerability management efficien-

cy we’ve developed a suite of in-house automated security scanning tools. These tools integrate seam- 360 Wentian leverages cutting-edge technologies like big data deep learning and correlation

lessly into our dynamic management system minimizing delays and enhancing the efficiency of vulnera- analysis and integrates proprietary security and derived data to provide a comprehensive accurate

bility management. and real-time analysis of potential business risks.The platform leverage data to empower businesses and developers helping them enhance appli-

cation experiences. It also offers in-depth real-time analysis of industries and applications generat-

ing reports on industry ecology industry performance and application performance thereby maxi-

Process Develop Code Security MonitorRelease and Handletest feedback mizing the value of the data it collects.analyze

Vulnerability detection/remediation

Platform Compilation Source code Automated Security

and release scanning scanning Security incident SRC platform

platform platform platform handling platform

monitoring

platform

Security development Security operations

47 48About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Security emergency management Process of data security emergency response

We have formulated a series of policies and standards including Data Security Emergency Manage-

ment Policy to strengthen our security incident response mechanism and minimize the impact of poten-

tial security incidents. These policies outline clear procedures for managing security emergencies Threat Review and

including incident classification reporting handling and assessment as well as emergency drills. Discovery Reporting Containment Removal Recovery summarization

Structure of the emergency response mechanism

Data security incident handling

We have established a data security emergency response task force to effectively manage data secu-

rity incidents. This task force comprising four teams: a leadership team an execution team a support

team and a team of external experts. Type of incident Emergency response procedure Containment Review

Data leakage Upon discovery of a data This includes inspecting system The task force then works with

breach the data security logs databases and applica- technical personnel to analyze

emergency response task force tions to identify the source of the system logs determine the root

is immediately notified. The leakage. Affected systems are cause of the leakage and

Data Security Emergency task force promptly coordinates isolated from external networks compile a detailed incident

Response Leadership Team technical personnel to to prevent further compromise summary.investigate the issue and and evidence is preserved. Law

prevent further data leakage. enforcement will be involved

when necessary.Technical Support Data Security

Assist in emergency

Data Security response Data SecurityEmergency Emergency Data tampering Upon discovery of large-scale After data is restored using Following the incident a Emergency Engaged when the Response Response Support data tampering with our core backups and services are thorough review is conducted Response External incident is serious Execution Team databases the data security restarted the task force then to analyze the specific causes of

Expert Panel Team emergency response task force investigates the cause of the the tampering. Based on the and the internal is immediately notified. The tampering. If an external attack analysis results enhanced

execution team has task force works with database is suspected the task force security measures are adopted

trouble handling it administrators and operation analyzes logs and other data to for our core databases.Data Security personnel to verify the extent of identify the source. Law

Emergency the tampering. Simultaneously enforcement will be involved

they activate the emergency when necessary.Response Plan response procedure which

involves suspending relevant

services and notifying relevant

personnel.Security incident response

Data loss In the event of a data loss The task force then works with Following the incident

incident the data security technical personnel to resolve resolution the task force

Upon confirmation of a data security incident the security emergency response support team imme- emergency response task force the issue and restore data and analyzes the specific causes of

diately notifies the data security committee. This committee in collaboration with the affected depart- is immediately notified. The services using the latest the data loss and identify areas

task force promptly works with effective backups. for improvement.ments assesses the incident’s severity and classifies it accordingly. They then initiate the reporting relevant departments to

process and activate the emergency response procedure. Following the incident resolution a compre- investigate the issue and assess

hensive report is compiled within five work days and submitted to the data security emergency response the scope of the data loss and evaluate its potential impact on

leadership team for review. The report focuses on lessons learned and preventive measures to strength- the business.en our defenses against future incidents.

49 50About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Emergency response training and exercises Security awareness programs

We conduct regular training sessions for our emergency response teams. These sessions incorporate Information security training programs are an important part of our effort to build a strong security

a variety of engaging methods including case studies scenario simulations discussions emergency culture. We’ve invested in a comprehensive cybersecurity training mechanism providing basic security

drills and strategy analysis. By using diverse training methods we ensure that our emergency response training for all employees and specialized technical training for security personnel. Through these

teams are familiar with reporting and response procedures. Key takeaways from exercises and drills are efforts we aim to cultivate a workforce with a heightened awareness of information security and

compiled into an emergency response toolkit. enhanced security skills. In 2023 we achieved a 100% completion rate for the online security awareness

assessment.Case: Red team vs. blue team exercises

Case: Online learning and assessment

We conduct regular red team vs. blue team exercises simulating real-world attacks to help our

response teams hone offensive and defensive skills and familiarize with emergency response proce-

dures. These exercises reveal system vulnerabilities and allow us to enhance our security emergency We conduct information security training and assessment for all employees.New hires are

response readiness and improve monitoring and defensive capabilities. required to complete mandatory security awareness training and exams before assuming their

roles.User privacy protection

We are committed to protecting the privacy of our users. We have implemented a robust personal

information protection system with clearly defined procedures outlined in official documents like the

Personal Information Protection Policy and 360 Security User Privacy Protection White Paper. These docu-

ments provide clear guidelines for the collection storage use processing transmission provision

disclosure and deletion of personal information. We are pleased to report that we experienced no major

information leakage incidents throughout the reporting period.We have implemented an app lifecycle management We believe that everyone plays a role in information security. We require

system with defined procedures approval workflow employees to adhere to the guidelines outlined in our Employee Informa-

and technical control measures. Its functions include tion Security Manual which is designed to safeguard the Company’s

compliance review record-keeping data traceabili- information assets and mitigate the risk of information leakage. Employees

ty and information management throughout the handling personal information are required to sign a Personal Information

entire app lifecycle. Confidentiality Agreement. Any violations of the terms of this agreement

will be subject to appropriate disciplinary action.

51 52About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Case: Cybersecurity awareness campaigns Case: Offline security training

We’ve launched a series of online and offline cybersecurity awareness campaigns including We also offer tailored security awareness training quarterly to address specific needs of each busi-

security reminders concerning the use of ChatGPT informative sessions on data security Cyberse- ness line based on their security incidents and system vulnerabilities.curity Week events and open discussions about data security.

53 54About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

05

Chapter Five

Sustainable Innovation:

Spearheading Digital and

AI Transformations

R&D and innovation

Customer services

55 56About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

360 Security remains at the forefront of innovation through continuous R&D and innovation measures

investment in R&D. This commitment translates to a portfolio of secure

products and services that empower our clients and users. Upholding a Encouraging R&D and innovation

customer-first approach we’ve established a comprehensive service

system to empower a secure and thriving digital future for all. We foster a culture of innovation by recognizing and inspiring our R&D teams through innovation

competitions. These competitions encourage them to integrate creative thinking into their daily work

igniting their passion for innovation.R&D and innovation Case: Smart Brain Cup Innovation Competition

To celebrate Programmers’ Day we launched the Smart Brain Cup Innovation Competition. Over

Management of R&D and innovation 1500 employees participated submitting more than 60 innovative projects and 20 testing projects. This

program enhanced business innovation product incubation and advancements in our Smart Brain tech-

R&D talents nology. By recognizing outstanding projects the competition fueled our employees’ passion for innova-

tion.We foster a culture of innovation by actively cultivating a R&D talent pool and building a professional

innovation-oriented R&D team. We now have 16 research groups 8 research institutions and 4 national

engineering laboratories. As of the end of the reporting period our R&D team consisted of 3332 talented

individuals comprising 55.6% of our total workforce and 34.1% of our R&D personnel held master’s

degrees or higher. They contribute to our strong foundation for independent research and innovation.R&D team in the past three years

202320222021

Number of employees in our R&D team 3，332 3，602 4，081

As a percentage of our workforce (%) 55.6% 55.6% 55.2%

R&D investment

To maintain our technological leadership we stay attuned to industry trends identify product and

business innovation opportunities and drive efficient R&D cycles for continuous product updates. We

continued to ramp up our R&D efforts and investments in the reporting period. In 2023 our R&D spending

totaled 3.104 billion yuan representing 34.28% of revenue.R&D expenses in the past three years

202320222021

R&D expenses (100 million yuan) 31.04 33.14 31.29

As a percentage of our revenue (%) 34.28 34.81 28.74

57 58About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Industry-university collaboration Respecting others’ IP rights

We actively engage in industry-university partnerships. These partnerships promote development We’ve implemented a robust IP risk management system. This system integrates IP considerations

of talent with a focus on innovation and practical skills and deliver win-win outcomes for universities throughout the product lifecycle from project approval to market launch to discontinuation and

and the Company. ensures all of our R&D and operational activities respect intellectual property rights.We’ve also established a comprehensive system for handling copyright patent and trademark

Case: 360 Security partnered with Tsinghua University to establish a Student Hands-on Learning Center infringement complaints. To ensure efficient complaint processing we’ve established clear guidelines

for handling complaints regarding different product lines and intellectual property rights. We have a

rigorous review process in place to verify the legitimacy and relevance of IP rights before we use them.We partnered with Tsinghua University to offer students practical experience in 20 critical cyberse- This helps us ensure that we are respecting the rights of IP holders. We take swift actions to address

curity areas including IoT vulnerability identification security frameworks for virtual-physical integra- potential intellectual property infringement notices. This includes notifying offenders taking down or

tion data security innovation platforms and security challenges in AI models. In 2023 23 computer disabling access to infringing content or blocking offenders. We keep rights holders informed

science students from Tsinghua University successfully completed required hands-on training at the throughout the process providing timely updates on the outcome of each case.center.As of the end of 2023

Over 6700 Over 6000 Over 2000

patents trademarks copyrights

IP protection

Scientific ethics

We prioritize IP protection and strictly comply with relevant laws including Patent Law Trademark

Law Copyright Law and Anti-Unfair Competition Law of the People’s Republic of China. To safeguard There are primarily four ethical considerations for AI: transparency and explainability fairness

and manage the Company’s intellectual property (IP) assets we have established internal IP and patent privacy protection and data security. Ethical oversight of AI technology has become imperative within

quality management systems and implemented a comprehensive IP management framework covering the industry. The Guiding Opinions on Strengthening the Governance of Science and Technology Ethics

patents trademarks copyrights and trade secrets. In 2023 we revised our Patent Quality Review Policy issued in March 2022 mandates companies to establish science and technology ethics committees

Open Source Software Legal Compliance Guidelines and other relevant policies. tailored to their specific circumstances especially those engaged in AI and other sensitive areas of

science and technology ethics.Protecting our own IP assets数据安全

We have established a patent review committee to strengthen our technological edge and ensure We are committed to enhancing awareness and understanding of 透明可

AI ethics. We adhere to relevant laws regulations and national

comprehensive protection for our R&D and innovation results. We leverage a lifecycle approach for 解释标准cybersecurity standards fulfilling our data security protection

efficient patent management. This approach includes online application for evaluation and standardized obligations. This includes establishing data security management

application and evaluation processes. Through a strategic pre-evaluation process considering technical responsibilities implementing data security protection measures conducting data security risk assessments and formulating

commercial and legal factors we identify innovations with strong IP potential and implement a hierar- network security incident contingency plans to promptly address

chical protection system. This approach effectively strengthens and enriches our IP portfolio. security incidents. Additionally we conduct regular security

education and training sessions. We handle data acquisition

We have established a special team dedicated to managing and safeguarding our IP assets. Utilizing storage management analysis application and disposal in a 公平性

our robust infringement monitoring systems they proactively identify and address violations of our manner consistent with ethical principles and social responsibili- 评价 隐私保护

patents and trademarks ensuring the protection of our key technologies and core brands. ties.

59 60About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Customer services Smart Life Wargaming 360 Games Internet

Number of

Customer services system training sessions 107 13 42 28

We are committed to delivering industry-leading user services. This commitment is backed by a com- Number of participants 1789 298 200 270

prehensive customer service system and continuous improvement initiatives. During the reporting

period we revised and updated the User Service Management Standard White Paper and User Service

White Paper.Feedback channels

Professional team

We provide multiple convenient channels for customer services including a robust user feedback

Behind this commitment lies a dedicated team of over 500 customer service professionals. Span- mechanism. Feedback options are prominently displayed on our website and product interfaces encour-

ning software hardware and game services they efficiently handle and respond to user feedback aging user input and ensuring swift responsive support.across various business sectors. Through regular training and assessments we ensure our team

remains efficient in handling and responding to user feedback continuously improving service quality. Customer service hotline

Regulatory reporting channels

Online service

Training system Ministry of Industry and Email support

Information Technology E-commerce pre-purchase

New employee Quarterly skills On-demand targeted Job-specific knowledge User Experience/User Job-specific

induction training skills development base (updated daily) Service White Paper manuals Complaint Platform Customer and post-purchase support

Assessment system Tools Black Cat Complaint Platform

service After-sales support

New employee Quarterly assessments Hotline/online Product defect

Entry examination training certification of proficiency customer management VOC platform

and assessment of job-specificstandards service system system

Indicators Feedback on WeiboIn-app feedback Product Multiple customer Social Feedback on Zhihu

Pick-up rate and response time Customer service satisfaction Quality inspection pass rate and first Feedback from

feedback service channels media

contact resolution rate Video feedback

uninstall surveys

Case: User service training in 2023 F yo itru unm mm

Co

Face to

360 user community face User chat group on WeChat

User chat group on QQ

User experience feedback sessions

User interviews

6162

Co

h man pd lali in ng t

es

r-s

al

Aft

eAbout 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Timely response Customer response mechanism

We take a meticulous approach to verifying user-reported issues. We also have established clear

Scope of customer Channels Timeframe and other escalation processes for different types of complaints. This ensures complaints reach the right teams

services requirements promptly leading to fast and effective resolutions for our customers.Hotline: 400-669-3600

Technical support for software Online Customer Service: For inquiries please contact us at

products: 400-669-3600 and enter the extension number 0. Users will receive

an SMS notification directing them to our online customer service

handling customer feedback on portal at http://urlqh.cn/mXDLS

computers mobile software search We have launched a specialized online customer service for senior

engines 360kuai and other products users at the same portal. 12315

of 360 Security

Email: kefu@360.cn

Hotline:

Hotline: 400-682-2360 Ensuring 80% of calls are Customer complaint handling processCustomer service for hardware

products: Online Customer Service: Visit https://mall.360.cn and click on the answered in 30 seconds.Providing after-sales support for 360 “Online Customer Service” button located on the right side of the We’ve implemented a comprehensive customer complaint handling process to ensure prompt

Security’s smart hardware products. page. Online Customer Service: resolutions and safeguard user rights.Instant processing.Email: yingjiankefu@360.cn

Email Response: Product Team Customer Service/Operations Managers/VPs

Within 1 working day.Understanding customer

Mobile Game/Web Game Hotline: For inquiries and support related Complaint Handling: complaints and needs

to our mobile and web games please call 400-669-3600 and enter Complaints are processed in

the extension number 4.accordance with the time Providing and

Game Customer Service: 360 Security Non-360 Security

World of Tanks/World of Warships Hotline: 0536-3565177/5277 limits specified by the optimizing solutions related inquires related inquiries

Providing support and Mobile Game/Web Game Online Customer Service: complaint platform.gathering feedback on game https://gm.game.360.cc

products from users logged in World of Tanks/World of Warships Online Customer Service: Visit Customer Service Unable to reach

with 360 Security accounts. https: //kf.wf.360.cn and click on the“ Online Customer Service”

Reaching agreements

with users agreements; users Severe problems: problems

button located on the right side of the page Satisfaction: making a complaint causing massive property

Maintaining a satisfaction againstthe service staff; losses injuries a large

Mobile Game/Web Game Email: m-kefu@360.cn rate of over 95%. users requiring an number of complaints etc.escalation

World of Tanks/World of Warships Email: pcgame_kefu@360.cn Reaching clear conclusions

and conducting

reviews as needed Escalating the case to

Customer Service

Operations Manager

Advertising Sales Customer Hotline: 400-036-0360

Service:

Responsible for handling Online Customer Service: No

feedback related to 360 Visit https://e.360.cn/ and click on the inquiry button located on the Is it resolved Escalating the case to

Dianjing marketing promo- right side of the page. Managers/VPs

tions and advertising Yes

Email: sskf@360.cn

Closing the loop

63 64About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Customer complaint handling measures Case: 360 Wallpaper

We have conducted a detailed analysis of user interactions and experiences across 18 key

Our customer service team is committed to providing solutions to users within 24 hours after touch points related to installation activation main interface wallpaper customization screen

receiving a reported issue ensuring prompt and effective resolution. saver settings and personalized preferences. By focusing on user goals behaviors satisfaction

levels emotional responses pain points and improvement opportunities the Company identi-

fied 24 specific areas for optimizing the user experience.We actively leverage user feedback to identify areas for product and service improvement. By

prioritizing these insights we deliver better experiences and enhance user satisfaction. Wallpaper customization

Activation Personalized preferences

Rating of reported issues Requirements Installation

P0 P0 issues receive immediate attention from senior management and are guaranteed resolution

Main interface

Screen saver settings

within 24 hours.P1 P1 issues are closely monitored by general managers and are guaranteed resolution. Case: 360 Smart Camera

P2 P2 issues are monitored by corresponding product managers with a resolution rate exceeding 85%. To improve user satisfaction and reduce returns we conducted a one-month evaluation of the

P8max against leading competitors. Twelve users participated in surveys and in-depth interviews

providing valuable insights into user needs and areas for improvement. This user feedback directly

Optimization of user services contributed to increased adoption of our cloud recording and AI features leading to a reduced

return rate.User experience enhancement plan

In 2022 we rolled out the Enhanced User Experience Plan. This initiative allows us to gather exten-

sive user feedback to gain deeper insights into consumer needs and experiences. These insights are

instrumental in implementing targeted optimizations ultimately leading to a continuously improved

user experience and enhanced consumer satisfaction.Analyze testing

Conduct user

results and

Define testing

implement

evaluation Recruit user compiling user Tester actionable

criteria for experience experience training recommenda-

user testers reports and tions for

experience interviewing

product

user testers

improvements

65 66About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Responsible marketing Client engagement

We actively engage with users through a variety of online and offline events including product

We’ve cultivated a vibrant social media presence through product accounts on platforms like exchange meetings and User Public Betas. These events facilitate open communication and valuable

Weibo WeChat and Bilibili. These accounts including 360 Bulletin 360 Fan Group and 360 feedback strengthening the connection between users and the Company.Customer Service act as a hub for user engagement promoting our Company and products. These

accounts effectively bridging the gap between the Company and its users. Case: Product exchange meetings

We hosted eight product exchange meetings in 2023 fostering in-depth discussions between

Over 2 million interactions Reached 250 million indivials target users and product managers on key products. A total of 190 users and employees participated

generating over 200 actionable insights.Case: User Thanksgiving Day

We celebrated User Thanksgiving Day in 2023 with a dynamic online and offline experience. The

online event garnering over 200 million views featured a collaborative song creation project weaving

user stories with ours into a music video. Simultaneously an offline gathering with 82 participants was

broadcast across five channels engaging over 10 million viewers and generating 17000 live interac-

tions.

67 68About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

06

Chapter Six

Sustainable Empowerment:

Growth Hand in Hand

with Partners

The talent pool

Win-win cooperation

Industry development

69 70About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Diverse composition

Adhering to the “people-oriented” philosophy 360 Security

recruits various talents and realizes the common growth of em- The Company is committed to creating a diversified workplace respecting the differences of all

ployees and the Company. The Company attaches great impor- employees and treating every employee or job seeker equally. By the end of the reporting period the

tance to supply chain management ensures that the procure- Company had 5990 employees including 8 foreign employees.ment process is “fair just and open” and promotes the devel-

opment of the industry together with its partners.

41 and above 702 R&D personnel 3332

31 to 40 years old 3345 Salesmen 2100

30 years old and below 1943 Manager 558

Male : 4125

The talent pool Female : 1865 PhD and professor 27Number of full-time employees：5990

Master 1109

umber of part-time employees ：0

The Company strictly abides by the Labor Law Bachelor 4012

Junior college and below 842

Labor Contract Law Social Insurance Law of the

People’s Republic of China and other laws regulations

and normative documents constantly improves the

human resource management system and attaches

importance to the protection of employees’ rights and

interests. Through diversified and equal employment

policies comfortable working environment and clear

career development channels the Company builds a By gender By type of By age By academic By profession

employment qualification

diversified talent team and creates a healthy warm

equal and inclusive workplace.Employee hiring

Employment and employee composition

Rights and interests and protection

Legal employment

The Company signs labor contracts with employees according to law and pays for five insurances

The Company adheres to the principles of fair competition talent selection based on needs and and housing provident fund for its employees.merit and provides equal employment opportunities for workers in the recruitment process. At the

same time it carries out campus recruitment and social recruitment broadens the recruitment chan- 100% employees were covered 100% employees were covered by labor contracts by social security programs

nels such as the Internet internal recommendation and headhunting standardizes the recruitment

process and enriches the talent team.The Company resolutely opposes employment discrimination treats employees fairly and equita- According to

bly and prohibits child labor forced labor restriction of employees’ freedom etc. and does not treat Employees who national regulations

employees differently because of their ethnicity age gender marital status and religious beliefs. The Company work overtime on employees are implements the approved rest days entitled to statutory

Attendance standard working Overtime and can take compen- Leave holidays annual

management hour system and compensated satory time off management

leave sick leave

sets a flexible marriage leave

The proportion of female managers is 20.1% The proportion of ethnic minority employees is 5.2% with 4 hours half-hour clock-in leave counted as 0.5 day funeral leave

time. and 8 hours as 1 maternity leave

day. breastfeeding leave and parental leave.The proportion of disabled employees is 1.5%

71 72About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Remuneration system Performance management system

Following the remuneration principle of being “fair internally and competitive externally” and The Company has established a scientific and effective performance appraisal

through a scientific position evaluation system the Company reasonably determines the value grade system and implemented the OKR performance management mechanism. By guiding

of each position and combines it with the career development system to determine the salary structure employees to participate in the whole process of performance management it helps

and level range of each position system. Within the salary range of each position the salary of employ- managers at all levels to objectively and fairly evaluate employees’ contribution to the

ees is determined according to factors such as performance contribution ability and quality. The Company and conduct timely and effective performance communication and feedback.Company conducts annual salary review and adjusts employees’ personal salary according to the The employee performance result is one of the reference bases for promotion and appointment.Company’s performance operating conditions personal annual performance evaluation results

social life indexes market trends and other factors.Performance feedback and appeal

If an employee disagrees with the performance results or related issues

Total annual he/she should first fully communicate with his/her immediate supervisor. If the

income disagreement cannot be resolved after communication a complaint can be filed in

the system within two weeks after the communication is completed. After the

employee submits the complaint the person in charge of the complaint node of the

department to which he/she belongs shall handle the complaint within two weeks.Variable salary

Basic salary corresponding

Long-term Other benefits

to each incentives and allowances Democratic communication

incentive plan

The Company attaches great importance to the democratic management of employees strength-

ens democratic communication actively responds to employees’ demands. Through employee

congresses staff exchanges setting up suggestion boxes employee satisfaction surveys and other

Welfare system forms the Company seeks an effective path for the harmonious development of the Company and its

employees builds a harmonious corporate culture and promotes the sustainable development of the

In order to attract and retain outstanding talents and improve the welfare and security level of Company.employees the Company provides supplementary benefits for employees in addition to the basic

welfare and security and promotes the occupational health management of employees in various Employee satisfaction survey

ways.The Company carried out one semi-annual and one annual employee satisfaction

surveys in 2023 to collect the opinions and suggestions of the employees on various

Commercial insurance: Health checkups: High-end medical care: Health management: aspects of work. It continuously improved the employee services and listened to the

We provide all employees On-the-job employees have a We offer high-quality A health management office voices of front-line employees. Both of the surveys recorded a satisfaction of over 95%.including regular employees free health examination once high-end medical insurance has been set up to provide

labor dispatch employees a year and their families can benefits for senior managers employees with regular

interns and their spouses also enjoy preferential health key talents and their spouses publicity on health

parents and children with checkup programs and children. knowledge helping them

commercial insurance enhance health awareness.programs such as life

insurance (accident insurance Collective labor contract

fixed life insurance) major

disease insurance outpatient The Company has improved the content of the collective labor contract for

emergency and hospitaliza-

tion supplemental medical two consecutive years. Through sample surveys and person-to-person communi-

care and maternity supple- cations and interviews the Company has collected dozens of opinions and

mental insurance for female

employees. suggestions. Through multiple rounds of communications with people from

All-China Federation of Trade Unions the Company refined the content of the

collective labor contract and finally completed the review and filing in order to

safeguard the legitimate rights and interests of employees.

73 74About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Professionalism

Development and training

Professional competence training is based on the professional compe-

tence model of the Company and a systematic professional talent training

Career development system is built to improve the job competence of employees. To build a

strong capability growth engine for the organization the Company

The Company has set up two promotion channels for employees: a management channel M and constantly improves its professional capabilities while gradually building a

a specialty channel S so that flexible career development paths are available for employees accord- technical culture and enhancing external technical influence which plays a

ing to the characteristics nature and level of jobs. In order to encourage employees to excel in the supportive role in technical development to meet the Company's business

channel to which they belong we have set up a mechanism for in-depth development and formulated development needs.a promotion program while encouraging employees to develop across channels.

7 first-level sequences Sales—government-enterprise sales training Instructor—IOT

instructor empowerment

A total of 43 training sessions were organized

covering 702 sales people with an average Empowerment training

Supply satisfaction of 9.4 points. for IOT internal lecturers Technology Safety Product Design Marketing Function

chain with 9 participants and Standard—Establishment of sequence training

Technology—Tech Talk 9.8 points of satisfaction.HR-HR creation camp mechanism

A total of 39 sessions were A total of 11 training A learning map was created

organized and shared with sessions were organized for product design and web

Training system 3696 participants and an with 305 participants and server development and 28

average satisfaction of 9.37 an average satisfaction expert resources were called

points

The Company attaches great importance to the development and cultivation of talents constantly of 9.56 points. to create and develop 12

improves the internal training mechanism and provides employees with different types forms and professional courses.levels of training according to the requirements of professional development to help employees grow

and promote enterprise development.Leadership

Leadership training aims at helping the implementation of corporate strategy supporting the

performance and building the core competence of leadership. According to its talent strategy and

organizational development needs the Company systematically cultivates the leadership and

business wisdom of managers at all levels promotes the learning development planning and

implementation of core talents and senior executives and builds the talent supply chain of

outstanding cadres.The Company has developed two sets of assessment mechanisms and cases namely “Morn-ing Star” and “Polaris” formed four sets of reproducible training programs and course

contents and trained nine internal part-time assessment officers supplemented by customized

workshops to provide assistance for the promotion of cadres.

125 training sessions 7982 participants Satisfaction rating of 9.52 points

Improvement of

Management certification cadre capabilities Management improvement

“ Venus” “ Polaris” “Venus” “Polaris”

certification certification Customized workshops /projects certification certification

75 76About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

General ability “Planet Gas Station” centers on the actual needs of employees and systematically designs aGeneral ability training focuses on the growth and ability improvement of all employ- general ability course system which include 16 contents in the four directions of “heart thoughtees in the Company. Based on the needs of strategic and organizational development a matter and presentation”. In order to solve the contradiction between work and study the system

comprehensive general ability improvement system is established. Through training takes 2-3 hours of excellent single-point courses as the main form which is convenient for employees

programs such as general ability improvement courses and tailor-made workshops to learn.personal effectiveness team effectiveness and organizational effectiveness are continu- 6 sessions 219 participants Satisfaction rating of 9.53 points

ously improved and sufficient skill reserves are provided for business departments.Learning ability Logical power

Self-awareness Structural thinking

Efficient learning Judgmental thinking

Career development Heart Thought Creative thinking

Individual ability Problem solution

General

ability

system

Office skills Matter Writing skills

In order to enhance the sense of belonging perception and speed of integration of new Plan execution Presentation Presentation skills

employees the Group upgraded the training program for recruiting new employees from society Effective review Communication impact

in October 2023—“Safe Planet Defense War”. The Company provided a login manual for new Project managemen

employees arranged clear integration tasks and paths and added links such as face-to-face Story presentation

meeting with senior executives and overall introduction of the Group’s business.Action ability Communication ability

3 sessions 110 participants Satisfaction rating of 9.85 points

77 78About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Culture and care Case: Values badge

Focusing on cultural building and warm-hearted care the Company makes continuous efforts in

creating an atmosphere and advocating behavioral transformation. Through the iterative upgrading of In 2023 the Company upgraded the values badge recognition project with 38% of personnel

organizational cultural concepts and colorful employee activities it constantly enhances organiza- incentivized up 6% from 2022. At the same time by upgrading the issuance rules opening the mobile

tional cohesion stimulates employees’ vitality and creativity enhances corporate cultural strength phone applet and adjusting the incentive cycle we provided incentive tools for BPs and managers

and creates a happy workplace. and the effective utilization rate of badges increased from 36% to 94% which contributed to the

In 2023 the Company further promoted the construction of the “staff home”. In the process of improvement of the internal atmosphere.employee service it understood the pressure of employees in life and work cared for special groups In addition the Company shapes the power of role models. Fifteen rounds of role model publicityespecially enhanced the psychological care for female employees and truly realized “timely received more than 7000 clicks with more than 15 excellent teams and 200 excellent individualsresponse and assistance to the needs of employees”. selected thus empowering management.Caring gift

Employees who are newly Holiday care

married have a child are

hospitalized or their Every year the Company

Team building fee immediate family members prepares special surprises

have passed away can for employees for Dragon

In order to strengthen team apply for and receive the Boat Festival Mid-Autumn

communication enhance Company’s caring gift Festival and Spring

employees’ feelings and money. Festival.promote organizational

coordination the Company

provides a unified standard

team building fee for each

team with which the teams

can plan and organize

activities that are conducive

to team integration.Seniority award

Every year the Company

awards specially custom-

ized commemorative gifts

to colleagues who meet the

seniority standards.Currently the Seniority

Employee activities Award is divided into

five-year award and Case: EAP employee care program

The Company regularly ten-year award which is a

organizes a variety of recognition of and

employee activities to encouragement for the The Company provides long-term and systematic psychological care for employees including

balance their work and life. hard work of veteran daily consultation by professional consultants crisis intervention health lectures etc. to convey orga-

employees who have

performed their duties for a nizational care help employees balance work and life ensure their psychological health and achieve

long time the goal of happy work and happy life.

79 80About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Case: Creating a comfortable working environment Case: Colorful activities

The Company provides employees with 24-hour administrative service guarantee including The Company carefully organizes and carries out various holiday activities such as Double New

basketball court gym yoga room bathroom laundry room and other facilities. The building is Year’s Day Lantern Festival Mid-Autumn Festival Winter Solstice Children’s Day Goddess Day and

equipped with a barber shop and massage room so employees can enjoy convenient services Programmer’s Day and guides employees to care for each other enhance their sense of belonging and

without leaving the building. raise the organizational warmth in the form of rewards and gifts.The Company pays attention to employees’ food clothing housing and transportation to

improve their office and life experience and provides services for home renting driving training

car purchase dentistry medical care etc. to create a warm workplace for employees.Double New Year’s

Day activities Lantern Festival activities Winter Solstice activities

Case: Caring for special people

Children’s Day activities on June 1.For pregnant and breastfeeding women the Company has created a female-friendly workplace

and set up a mother and baby room to provide a temporary milk collection area for working mothers.Independent and exclusive the area is equipped with sofas tables separate curtains paper towels

garbage cans hand washing stations and hand sanitizers. In addition the cafeteria opens a separate

dining area for pregnant mothers which is convenient for pregnant female employees.Mid-Autumn Festival activities

Programmer’s Day

Goddess Day activities

81 82About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Win-win cooperation Supplier-shared platform

The Company has formulated internal management systems such as Business Process of Central- Relying on the supplier-shared platform of centralized procurement the Company has realized

ized Procurement Department of 360 Group Management Specification of Centralized Procurement standardized efficient and comprehensive management of suppliers and project tendering and

Department of 360 Group and Management Measures for Procurement Operation of Centralized procurement.Procurement Center of 360 Group so as to standardize the implementation process of the Company’s

procurement business clarify key business process nodes and implement supplier management. Centralized procurement platform system

3200 suppliers 840 cooperative 460 suppliers Over 90% of suppliers

in reserve suppliers reviewed in 2023 rated as excellent or

good in 2023

Clean and open procurement

Scope of centralized procurement

Supplier management

The Company’s business scope of centralized procurement includes products and services needed

for daily operation and project delivery which are divided into 10 first-class categories and 38 In order to establish a sound the supplier management system the Company has formulated the

second-class categories. Supplier Management Measures to standardize the processes of supplier development access main-

Hardware and maintenance IDC and sources voice and tenance project participation performance evaluation rewards and penalties. It has set up and main-

IT telephone tained a supplier resource database to improve the quality and efficiency of procurement.Software maintenance and cloud services (SAAS) Through annual conferences the Company conveys its business philosophy and joins hands with

Software and maintenance partners to share opportunities and develop together.Project outsourcing

Integration and more

Events online communication media digital

marketing photography design/H5 entertainment

PR publicity marketing marketing Inspection and access Management change Examination and evaluation Supervision and elimination

Material commodity Directly purchased materials customized materials Supplier registration is The procurement and A comprehensive assessment Any violation of discipline can First-class Second-class completed through supplier whole-process management of suppliers’ price quality be reported to the Company cards and prints information entry supplier is completed through the SRM service response and through the reporting categories categories access review and supplier system. qualification is conducted on a channel.Financial services data resources testing/certification reserve evaluation. Supplier changes need to be quarterly basis and the Non-compliant suppliers will

Special services On-site inspection of key reviewed and approved on the annual level of suppliers is be penalized by freezing and professional services suppliers in conducted SRM platform. comprehensively evaluated blacklisting.according to the Supplier once every year.Inspection Form to fully The Company initiates

ITO category BPO category KPO category HRO understand the comprehensive corrective actions or

HR outsourcing category human resources service flexible strength of suppliers. interviews with suppliers Suppliers are required to sign whose performance

employment category the Letter of Commitment for evaluation results are

Honest Cooperation and Letter unsatisfactory and tracks their

of Confidentiality Commitment rectification.Business trip and strictly abide by the

Hotel ticketing taxi hailing business travel platform Company’s anti-fraud management regulations.Administration/Engineering Workplace services maintenance & repair furniture

equipment facilities and consumables

Fundamentals/Engineering Consulting services materials & equipment

construction engineering

83 84About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Supply chain security Industry development

To improve the reliability of the supply chain and to identify and control the potential threats and Adhering to the concept of common development the Company actively promotes the develop-

risks in the supply chain the Company has formulated the 360 Group Supply Chain Security Manage- ment of the industry while pursuing its own rapid and steady development and contributes to the

ment System according to the requirements of GB∕T 36637-2018 Guidelines for Security Risk Manage- high-quality development of the industry together with its partners by participating in the formulation

ment of Information Security Technology ICT Supply Chain and GBT 22239-2019 Information Security of standards strengthening industry exchanges and promoting technical cooperation.Technology—Baseline for Classified Protection of Cybersecurity to guide the Company’s supply chain

security management in its entire lifecycle and to facilitate the sustainable development of the Com- Strengthening industry exchanges

pany’s various business segments.The Company actively participates in industry exchange activities strengthens interaction with

Supply chain security management domestic and foreign enterprises and scientific research institutes and is widely recognized by the

industry in its pursuit of win-win development.The full-lifecycle management of supply chain is based on product design R&D procurement

production warehousing delivery operation and maintenance etc. to ensure the integrity availabili- Name of industry association Position

ty confidentiality and controllability of supply chain. National Technical Committee 485 on Communication of Member unit

Standardization Administration of China

The Company incorporates supply chain risk management training into the security training plan and China Communications Standards Association Council Member

implements it regularly. Telecommunication Terminal Industry Forum Association Member unit

Internet Society of China Vice Chairman

Beijing Software and Information Services Industry Association Member unit

The Company establishes and improves the emergency plan for security incidents in the supply chain Chinese Institute of Electronics Member unit

to ensure that the security emergency work is carried out quickly efficiently and orderly. 3GPP Independent member

Supply chain risk assessment

Participation in the formulation of standards

The Company actively promotes the standardization level of the industry continues to contribute

Risk identification

Risk its long-accumulated expertise to bring into full play its professional value. In 2023 it led or participat-

ed in the formulation of 53 standards including 14 national standards 21 industry standards and 18

group standards.In addition the Company actively led or participated in the preparation of a number of white

Riskcommunication Risk analysis

and documentation papers security reports and research reports.Case: The first domestic Smart City Digital Security Report (2022)

The 360 Tianshu Think Tank in conjunction with the National

Engineering Research Center of Big Data Collaborative Security Tech-

nology and Tianjin Smart City Digital Security Research Institute

Risk supervision released China’s first Smart City Digital Security Report (2022). For the Risk evaluation

and inspection first time the report builds a digital security capability framework

from a new perspective of the security subject of smart cities and as

the first “white paper” in the field of smart city digital security it

provides an overall guide to the construction of China’s smart city

Risk disposal digital security capability.

85 86About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Case: Release of the 2023 Global Advanced Persistent Threat Research Report Inventing a new security paradigmIn 2023 the Company took the lead in proposing a new paradigm of digital security “secu-The Research Report on Global Advanced Persistent Threats in 2023 rity Agent + security tools” and independently developed the industry’s first deliverable security

released by 360 Digital Security Group based on the empowerment of 360 model application—360 Smart Brain. Through the methodology of small incision and big depth

Security Cloud and relying on the digital security capability of 360 “seen” it helps enterprises to truly realize automatic secure and efficient operation and greatly improve

threats fully reveals active organizations deeply deduces the future devel- their capability of security protection.opment direction and is committed to providing effective reference and

guidance for governments institutions and enterprise to deal with

advanced threats.Case: Large Model Application Standard of China

360 Group was invited to participate in the compilation of China’s Large

Model Application Standard—Large-scale Pre-training Model Technology

and Application Evaluation Methodology Part IV: Model Application. Tucha-

cha an application of the 360 Smart Brain was rated as an excellent case of

generative artificial intelligence technology and application.Sharing of development achievements

Digital security ecology conference

The Company attaches importance to the sharing of achievements actively promotes technical

cooperation helps the transformation and upgrading in multiple industries and fields and promotes

industry development and ecological co-construction. In 2023 the Company held digital security ecology conferences in nearly 30 cities across the

country with the theme of “New Technology New Services and New Ecology”. Thousands of senior

Promoting industry transformation managers from partners gathered together to communicate on topics such as interpretation of digi-

tal security industry development opportunities technology empowerment experience sharing and

In 2023 the Company clouded the national security capability and officially released the benchmarking and open a new chapter of network security under the digital economy which will

“360 Security Cloud” which promoted the transformation of the security industry with the strengthen the foundation and vitality for the high-quality development of urban industries.concept of “Security as a Service” and escorted the construction of a network power and digital

China.New technique New ecology

New services

87 88About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Assisting the police in anti-fraud

Creating an industry benchmark

In 2023 the Company held three anti-fraud training camps In 2023 the Company’s business was fully laid out. In the fields of finance government energy med-

inviting police experts from all over the country to form a team of ical care education manufacturing scientific research etc. it expanded industry-level benchmark

lecturers with industry experts from the 360 Cyber Crime Research customers helped enterprises build a solid foundation for digital security and facilitated their digital

Center and cumulatively trained more than a hundred front-line transformation.police officers across the country creating a precedent in the indus-

try for the police and enterprises to train together. The Company has Hosting on the cloud to protect the digital security of the financial system

cooperated with more than 1300 provincial/municipal/dis-

trict/county-level public security organs nationwide supported the

Ministry of Public Security and local public security departments/bu- Global TOP50 banks have built a security operation platform based on 360 Security Cloud. By

reaus in more than 10 major battles and special operations and subscribing to the 360 digital security hosting operation services they have achieved internal protection

assisted them in cracking down on more than 1000 wire fraud cases. against data leakage and external protection against cyberattacks.Promoting the construction of smart campus to lay a solid foundation for digital security

Building and protecting the digital infrastructure of cities By subscribing to the 360 digital security hosting operation services national “double-first-class”

universities have realized 7×24 hours all-weather all-round threat monitoring to ensure the smooth

operation of the education system and protect the information security of teachers and students.In 2023 the Company assisted in the construction of new digital

infrastructure in more than 10 cities and formed a digital security Oil giants leverage the 360 Security Cloud in energy transformation

service system for the government and all kinds of large mediumsmall and micro enterprises through the “one cloud one brain and The Company help enterprises to deal with 170000+ alarms identify 1000+ digital assets discoverfive platforms” model. and handle nearly 300 high-risk ports dig up and reinforce more than 30 security vulnerabilities to

ensure information security.Whole-process protection of scientific research institutions

ISC digital transformation

With its 7×24-hour remote hosting operation service the Company helps scientific research institu-

ISC 2023 the world’s first AI digital security summit was tions to establish a digital security system discover and prevent network threats by analyzing monitor-

successfully held. In the application of AI technology in multiple ing and identifying potential attacks vulnerabilities and malicious behaviors in the network.scenarios and links such as digital hosts digital guests and

digital customer service the Company created a precedent for Digital security services help hospitals“ solve problems”

holding “AI+” conferences.The Digital Town New50 Forum received more than 10 The Company helps a city’s tertiary hospitals to monitor risks and handle security incidents realize

million clicks and the number of online participants exceeded continuous monitoring of and active response to security risks and threats and easily respond to security

one million. It brought together 1000+ guests from home and notifications and Internet attacks.abroad and 100+ eco-enterprises with 100+ activities held 20+

achievements commercialized and 30000+ offline partici- Promoting digital transformation and building safe infrastructure for manufacturing

pants.The conference was included in the Guinness Book of

World Records for its “most authoritative topic” with The Company helps an international manufacturing enterprise to realize all-weather and all-round

whole-network exposure exceeding one billion times. It not only threat monitoring find and deal with security risks promptly achieve the overall safe operation and

achieved profitability but the commercialization model was ensure the smooth operation of business systems.verified as well.

89 90About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

07

Chapter Seven

Sustainable Development:

Jointly Pursuing a

Better Future for All

Green operation

Social welfare

91 92About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Energy saving and emission reduction

The Company earnestly fulfills its social responsibility

adheres to green operation and promotes environmental pro- The Company implements a number of energy-saving measures in its office buildings to optimize

tection in the pursuit of dual-carbon goals. With the idea that energy and environmental management and reduce resource consumption.“no good deed is too small” it spreads the 360 public welfare

culture of “being always ready to do public welfare” through

which it has established a good corporate image.Solar photovoltaic panels are installed on the roof of Beijing Electronic

City Building to reduce the consumption of fossil energy.For Scope 2 the Company has strengthened energy management built a

Green operation Important green data center and realized efficient green operation thus reducing measures

greenhouse gas emissions.Addressing climate change By increasing environmental publicity education and staff training the

Company raises employees’ awareness of environmental protection

Upholding the principle of energy conservation and environmental protection the Company has advocates green office and low-carbon life and comprehensively

implemented a series of emission reduction strategies to reduce greenhouse gas emission and promotes greenhouse gas emission reduction.improve energy utilization by optimizing energy structure and carrying out environmental protection

publicity. BMS building intelligent control system

In the past three years the Company has not been penalized by relevant departments for any

major pollution accidents or ecological damage. Beijing Electronic City Building connects different systems through the building intelligent control

system and uses calculator control technology to remotely control various devices sensors and actua-

tors to manage the daily activity data of the building including:

Indicators and objectives

The Company’s greenhouse gases are mainly generated by energy consumption during office Remote control of independent fresh air supply system

operation and the greenhouse gas emissions during the reporting period are as follows: to ensure the air quality in the office.Intelligent air conditioning management system to

realize real-time monitoring and reasonable setting of

air conditioning temperature according to season and

Greenhouse gas emissions In 2023 Unit scientific management of running time.ABB intelligent lighting control system that adjusts the

lighting status in real time presets the turn-on and

Greenhouse gas emissions (Scope 1) 454.15 tCO2e turn-off time of lights and improves energy efficiency.Greenhouse gas emissions (Scope 2) 7252.92 tCO2e

Lighting system upgrade Use of renewable energy

Total greenhouse gas emissions 7707.07 tCO2e In 2023 the lighting system in the Solar PV panels are used public area of Beijing Tower was on the roof of the Beijing

upgraded with high-efficiency office building to integrate

Greenhouse gas emission intensity 0.85 tCO2e/million yuan of revenue and energy-saving lamps. distributed photovoltaic

Compared with the old models power generation into the

an average of 11.47 kW/h of office power supply

electric power was cut with system providing part of

Note: For 360’s operating sites in different regions the calculation of greenhouse gas emissions is 260800 kWh of electricity saved the building’s electricity.based on the applicable rules in the region where the operating site is located. in the whole year.

93 94About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Practice of green operations

Management of energy and resources

The company strictly abides by the Law of the People’s Republic of China on Environmental Protec-

tion the Law of the People’s Republic of China on Energy Conservation and other laws and regula-

tions promotes energy management rationally utilizes energy and reduces energy consumption.Comprehensive energy consumption: 1845.72 tons of standard coal

Comprehensive energy consumption intensity: 0.20 tons of standard coal/million yuan of revenue

Water resources management

The Company standardizes the management of water resources vigorously implements water

conservation measures and extensively carries out water conservation publicity and education. The

Company and its subsidiaries keep monthly statistics on water consumption aiming to reduce the

Advocating green office

consumption of water resources and the impact on the water ecosystem.Total annual water consumption: 80852 tons Saving energy Saving water

Water consumption intensity: 8.93 tons/million yuan of revenue

Turning off the lights office Employees are welcome to use their

equipment and air conditioning when own water cups when using the water

Standardized treatment of three wastes the office or meeting room is not in use dispenser

40% of the Company’s vehicles in Water-saving bubbler faucets are

Beijing are new-energy vehicles which adopted

are provided with charging stations in Water-saving signs are posted

the parking area

The kitchen fumes are treated by UV photo-oxidation equipment and electrostatic filters. In order to realize the

Waste gas accurate management and control of the kitchen fumes we reserve an online monitoring interface for the fume

exhaust flue so as to effectively monitor and control the fume exhaust in real time in the future.Kitchen wastewater is pre-treated through a sedimentation tank to remove large particles of pollutants and

suspended matters then introduced into an oil-water isolation device to separate the oil in the wastewater

and then discharged to the outdoor grease separation tank which is cleaned up once a month. Waste water

The domestic sewage of the building is discharged to the municipal sewage treatment plant for secondary

utilization.The Company has formulated the Measures for the Management of Solid Wastes (Hazardous Wastes) to ensure that

all kinds of solid wastes meet the national disposal standards. The rate of harmless treatment reaches 100% and

Solid there are no incidents of environmental pollution or damage.waste According to the Regulations of Beijing Municipality on the Management of Domestic Waste the Company carries out

garbage classification in its operation sites in Beijing. It uses four types of garbage bins with clear signs to ensure

that garbage classification reaches the standard while strengthening the employees’ awareness of garbage sorting.

95 96About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Saving consumables Indoor greening Case: Low-carbon reconstruction project of 360 DIGITECH Data Center

Paperless office is promoted Energy-saving equipment is widely used in 360 DIGITECH. By means of cascade utiliza-Green plants are introduced into the

“Green recycling stations” are set up for office area to improve employees’ tion of natural cold sources recovery of waste heat from computer rooms for reuse and

waste paper work-life balance productivity dynamic adjustment of control strategies energy efficiency is improved and carbon emissions

Purchase and use of office supplies are creativity and sense of well-being are reduced. At present the PUE index of data centers in Beijing and Zhengzhou is lower than

rationalized As of December 2023 there were 1.5 reaching the national average. In terms of environmental protection the 360 DIGITECH

The Management Measures for Low-value 3119 indoor plants of more than 20 Data Center has adopted low-impact technical measures such as “sponge city” construc-

Consumables is formulated and the types in Beijing Electronic City

service life of office equipment is Building tion roof greening rainwater recycling facilities and permeable pavement to control runoff

prolonged through enhanced daily pollution alleviate waterlogging rationally utilize rainwater resources and improve water

maintenance environment so that the annual total runoff control rate in the site reaches 70% and the

annual runoff pollution control rate reaches 50%. In terms of data usage the 360 DIGITECH

Data Center adopts dynamic scaling technology for the business servers so as to redistribute

the computing resources at the daily level allowing more resources to be used at the peak of

business and less resources to be used at the valley of business thus avoiding resource waste.Enhancing emergency capabilities

The Company has established internal systems such as Emergency Plan for Production Accidents

Crisis Handling Mechanism for Abnormal Visitors and Warehouse Safety Management System

defined the types of incidents three-level response measures emergency plans security drills mea-

sures to deal with extreme weather reporting procedures and disclosure requirements and set up a

leading group for production safety and emergency management and to co-ordinate the handling of

various emergency incidents.Leadership group of emergency organization system

Emergency office

Green data center

In terms of data center construction 360 is committed to building an energy-saving and efficient

Emergency office Support team Rescue team Medical team

low-carbon data center. It has taken measures such as waste heat recycling dynamic energy regula-

tion efficient cold source room and sustainable LID site design to reduce the energy consumption of

data room operation. In addition the 360 data center has been reconstructed according to the interna-

tional standard Uptime/Tier-IV and national standard GB50174/ Class A computer room construction Case: Emergency drill

requirements. In 2023 the Company held several emer-

gency drills including “519” and “119” fire

drills and organized flood control drills water

leakage drills and unplanned power outage

drills in response to extreme weather. Through

the drills problems were found and rectified in a

timely manner the safety awareness of all

employees was enhanced and the ability to deal

with emergencies was improved.

97 98About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Social welfareThe Company is committed to “solving social problems with the power of science and technolo- Digital charity—360 Public Welfare Platformgy”. Taking the 360 Public Welfare Platform the 360 Public Welfare Foundation and the 360 Public

Welfare Communication as the media the Company drives public welfare undertakings and practices While helping with public welfare projects the Company continuously improves the operation and

corporate social responsibility. maintenance of 360 Public Welfare Platform to create a reliable authoritative and transparent public

welfare image.In the reporting period social responsibility report project progress and other sections

were added to the display page of 360 Public Welfare Platform and eight public welfare foundations

Promoting public welfare—360 Public Welfare Foundation were introduced into the platform throughout the year expanding the project scope to new areas such

In active response to the call of national rural revitalization the 360 Public Welfare Foundation as disaster response and relief improvement of the environment in which young people grow govern-

makes donations to Xinjiang Hubei Inner Mongolia and other places to improve basic education and ment-related support services caring for veterans and environmental protection plans.healthcare facilities. In addition the Company carries out disaster relief provides special care for the

police and undertakes corporate social responsibility to pass on the power of love. 36 foundations 34 online projects Over 730000 yuan 17000 donators

on the platform

Donation project for

the development Donation project in support of

of collective economy in Hulijintu Village education and rural

Shibatai Town Zhuozi County revitalization in Horqin

Rural revitalization Left Wing Rear BannerDonation project for“ Guangcai 260000Rural revitalization

Tongxin Beijing Flood Control and 40000Disaster Relief”

Emergency donations for Donation project for Chinese

Police Heroes Foundation

disaster relief

Provide special care for

2 million police heroes

2 million

Case: Assisting in disaster relief

After the rainstorm in Beijing in August 2023 the 360 Group took the lead in responding to

the call of the Beijing Federation of Industry and Commerce and took part in the disaster relief

work in Fangshan and Mentougou. After the earthquake in Gansu in December the 360 Public

Welfare Foundation quickly joined local relief agencies and charitable organizations to raise

relevant relief materials for the disaster-stricken area.

99 100About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Case: Theme activities on “6.11” China Organ Donation Day Case: Environmental protection public welfare activity titled “I have a tree in Tibet”June 11 2023 is the seventh organ donation day in China. As an online strategic partner of China In 2023 360 Public Welfare actively responded to the “I have aOrgan Transplantation Development Foundation 360 broadcasted the donation day with the theme of tree in Tibet” public welfare activity jointly promoted it with China

“Walking in Starlight” and officially upgraded the “360 Great Security Public Welfare Office” from Charity Federation using the power of digital communication to mobi-

the original “Voluntary Organ Donation Registration Platform” to a sustainable public welfare lize the whole society to participate in the greening project of South

ecological platform matching the needs of donors and beneficiaries and boosting the development of and North Mountains in Lhasa. The exposure of the activity amounted

digital charity. to nearly one hundred million times.Public welfare culture of 360

Case: Public welfare activity titled “Don’t let hearing impairment become an obstacle to life” In an effort to elevate the philanthropic consciousness and participation among its workforce the

Company has consistently cultivated a robust charitable brand and instilled a culture of benevolence by

launching the engaging “Good Deeds Earn Drumsticks” series of public welfare activities. In the project

On June 1 2023 360 Public Welfare and IHEARU Charity Fund jointly set up the “Cognitive Learn- of “Don’t let hearing impairment become an obstacle to life” the organization championed an internaling Center for Hearing-impaired Children” in Xi’an to provide cognitive education for hearing-im- drive to collect children’s picture books which saw over 500 staff members actively contribute. Thispaired children in the rehabilitation stage and help them to better understand the world. concerted effort amassed a generous donation of more than 360 volumes all destined for the “Cogni-The project was launched in June 2023 calling on the public to pay attention to hearing-impaired tive Learning Center for Hearing-impaired Children”. This tangible demonstration of goodwill stands aschildren with a cumulative exposure of 336 million times and a cumulative reading of 32.24 million a testament to the Company’s commitment to the philosophy of “making charity a part of everyday lifetimes in Weibo which enhanced the spread of 360 Public Welfare brand and was followed up by other where small acts of love accumulate to build a tower of compassion”.public welfare platforms one after another.

101 102About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Appendix 1: Performance Table

Environmental performance CASS-ESG5.0 Average training hours for new employees Hour 10

Comprehensive energy consumption Ton of standard coal 1845.72 Training hours for R&D personnel Hour 34099

Comprehensive energy consumption intensity Ton of standard coal/million yuan of revenue 0.20 Number of cooperative suppliers Number 840

Outsourced electricity Megawatt hour 12623.97 Annual supplier excellence rate % >90

Outsourced heat GJ 520.52 Donation amount Ten thousand yuan 648.72

Petrol Ton 6.69 Governance performance

Diesel Ton 0.43 Shareholders meeting Time 2

Natural gas Standard cubic meter 200000

Number of proposals reviewed by the shareholders meeting Number 14

Greenhouse gas emissions (Scope 1) tCO2e 454.15

Board of Directors meeting Time 4

Greenhouse gas emissions (Scope 2) tCO2e 7252.92

Number of proposals reviewed by the board of directors meeting Number 22

Total greenhouse gas emissions tCO2e 7707.07

Greenhouse gas emission intensity tCO2e /million yuan of revenue 0.85 Board of supervisors meeting

Time 3

Total water consumption Ton 80852 Number of proposls reviewed by the board of supervisors meeting Number 15

Water consumption intensity Ton/million yuan of revenue 8.93 Number of motions unapproved at the three meetings Number 0

Total amount of harmless waste Ton 180 Audit Committee Time 5

Total amount of hazardous waste Ton 0.053 Number of proposls reviewed by the audit committee Number 16

PUE index of data centers in Beijing and Zhengzhou / 1.3 Nomination and Remuneration Committee Time 2

Social performance Number of proposls reviewed by the nomination and remuneration committee Number 2

R&D personnel number 3332 Strategy Committee Time 0

Proportion of R&D personnel to the total number % 55.6 Number of directors Number 6

of employees in the Company In which: number of independent directors Number 3

R&D expenses Hundred million yuan 31.04 In which: Number of female directors Number 1

Ratio of R&D expenses to operating income % 32.48 Number of supervisors Number 3

Customer complaint response rate % 100 In which: number of employee representative supervisors Number 2

Customer complaint resolution rate % >97

Number of periodic reports disclosed Number 4

Customer satisfaction % >96

Number of interim announcements disclosed Number 38

Total number of employees Number 5990

Time >300

Labor contract signing rate % 100 Number of investor receptions

Social security coverage rate % 100 Number of performance briefing sessions Time 2

Employee satisfaction % >95 Number of responses to E-interaction Time 38

Proportion of female managers % 20.1 Number of audited projects in the whole year Number 15

Proportion of ethnic minority employees % 5.2

Notes: 1. The Beijing Electronic City Building is the sole focus of our statistical analysis on purchased heat diesel gasoline and natural gas consumption.Proportion of employees with disabilities % 1.5

2. The scope of our statistical analysis on purchased electricity consumption includes Beijing Electronic City Building Chengdu Tianfu Software Park

Employee turnover rate % 7.6

Chengdu Artificial Intelligence Center as well as our offices in Guangzhou Nanjing Shenzhen Suzhou Wuhan Xi’an Shenyang and Shanghai.Employee training coverage rate % 100

3. The scope of our statistical analysis on water consumption includes Beijing Electronic City Building Chengdu Tianfu Software Park Chengdu Artificial

Total investment in employee training Ten thousand yuan 120.87 Intelligence Center as well as our offices in Guangzhou Nanjing Shenzhen Suzhou Wuhan Xi’an Shenyang and Shanghai.Total hours of employee training hour 42341 4. The scope of our statistical analysis on the customer complaint response rate customer complaint resolution rate and customer satisfaction includes

Training hours for senior management Hour 570 Smart Life Wargaming Division 360 Games and the Internet Division.

5. PUE is short for power usage effectiveness that is power utilization efficiency. PUE is an indicator to evaluate the energy efficiency of data centers which

is the ratio of all energy consumed by a data center to the energy consumed by IT load.

103 104About 360 Security Feature“: All in AI” Fuels Sustainable Governance: Sustainable Business Practices: Sustainable Innovation: Sustainable Empowerment: Sustainable Development:

the Development of New Quality Strengthening Accountability Driving Growth in Digital Spearheading Digital and AI Growth Hand in Hand with Jointly Pursuing a

Productive Forces Security Transformations Partners Better Future for All

Appendix 2: Report Index

Sustainable Innovation: Spearheading Digital and AI Transformations

Contents CASS- ESG 5.0 GRI

R&D and innovation V2.1 V2.2 V2.3 V2.4 V2.8 2-6 2-27

Introduction

About the Report P1.1 P1.2 P1.3 2-2 2-3 Customer services S4.5 S4.7 S4.8 2-25 416-1

Message from the Chairman P2.1 2-6 2-22 Sustainable Empowerment: Growth Hand in Hand with Partners

2-72-82-192-202-30401-1

Our Contribution to the SDGs P2.2 P3.1 / S1.1 S1.2 S1.3 S1.4 S1.5 S1.6 S1.7 S1.8

The talent pool 401-2 404-1 401-3 403-3 403-6

About 360 Security S1.9 S1.10 S1.11 S2.1 S2.2 S2.4 S3.1 403-8 404-1 404-2 405-1

Win-win cooperation V2.6 S5.1 S5.2 S5.3 414-1

Corporate profile P4.1 2-1

Industry development V2.5 V2.7 V2.8 2-28

Business segments P4.3 2-1 2-6

Sustainable Development:Jointly Pursuing a Better Future for All

Corporate culture P4.2 /

Green operation E1.2 E2.2 E2.3 E2.9 E2.10 E2.11 E2.14 302-1 303-5 305-1 305-2

Milestones / /

E2.15 E3.1 E3.3 E3.5 S3.6 E3.8 E5.5 E5.6 E5.7 305-4 306-3

Rewards and honors / /

Social welfare V3.4 V3.5 V3.6 203-1 203-2

ESG Management G3.5 G3.6 2-14 2-16 2-17 2-22 2-29 3-1 3-2 3-3

Feature: “All in AI” Fuels the Development of Appendix

New Quality Productive Forces V1.1 V1.2 V1.3 V1.4 2-6 203-2

Sustainable Governance: Strengthening Accountability Performance Table A2 \

Report Index A4 \

Standardized governance G1.1 G1.2 G1.10 2-9 2-10 2-11 2-12 2-13 2-15 2-27

Internal control G1.3 2-27

Risk control G1.3 2-27

Compliance management G1.3 G1.4 2-23 2-27

Integrity G1.6 G1.7 G1.8 205-1 205-2 205-3

Fair competition G1.5 206-1

Party building / /

Sustainable Business Practices: Driving Growth in Digital Security

Security management systems S3.4 V1.1 2-6 203-2

Security governance measures S3.4 V1.3 2-6 203-2

Security emergency management S3.7 2-6 203-2

User privacy protection S4.6 418-1

Security awareness programs S3.5 404-2

105106