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吉比特:G-bitsNetworkTechnology(Xiamen)Co.,Ltd.2024

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About this Report

Information about this Report Data description

This is the 2024 Sustainability Report of G-bits Network Technology (Xiamen) Co. Ltd. (hereinafter referred to as “G-bits” “We” The information data and cases used in this Report are sourced from the Company’s official documents statistical reports

or “the Company”) (stock code: 603444). Through the Report we hope to fully communicate with all stakeholders on G-bits’ financial reports or public documents as well as functional departments' statistics and summaries of environmental social and

sustainability philosophy performance and commitment to corporate sustainable development. governance (ESG) practice information. The reporting currency of the financial data in this Report is Renminbi (“RMB”).Reporting scope Preparation principles and basis

This Report covers the period from January 1 2024 to December 31 2024 (the “Reporting Period” or “this year”) for G-bits and This report has been prepared in accordance with the Guidelines No. 1 of Shanghai Stock Exchange for Self-Regulation of

all its subsidiaries. Listed Companies – Standardized Operation (revised in December 2023) with reference to the Global Reporting Initiative (GRI)

Standards and the UN Sustainable Development Goals (SDGs). In addition we have proactively referred to the Guidelines No.

4 of Shanghai Stock Exchange for Self-Regulation of Listed Companies – Sustainability Report Preparation and the Guidelines

No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies – Sustainability Report (Trial).Report release date

This Report is released concurrently with the Company’s Annual Report.

03 04About G-bits

Company profile Party-enterprise integration

G-bits Network Technology (Xiamen) Co. Ltd. is a company specialized in creative design R&D production and commercial Always adhering to General Secretary Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era the General

operation of online games. The Company aims to provide “original high-quality and ethical” online games and is committed to Party Branch of G-bits studies and implements the spirit of the 20th CPC National Congress and that of the third plenary session

creating original online games with a focus on positive content as well as high cultural and artistic standards for entertainment of the 20th CPC Central Committee. The Company has fully implemented the spirit of the Central Economic Work Conference

experiences. and the resolutions and plans of the CPC Central Committee and the State Council thereby actively promoting high-quality

development in the cultural industry. Grounded in party building and rooted in China’s outstanding cultural heritage G-bits

We observe our corporate social responsibilities all the time to promote the co-development of the industry and the co-creation showcases cultural confidence through game content and demonstrated its mission responsibility through regulation.of social value. Since our founding in 2004 we have remain deeply engage in the game market making unremitting efforts to

create high-quality and wholesome recreational products and providing global users with differentiated products and services. This year the Company continued to integrate Party building into governance culture and responsibility driving integration of

Looking ahead we will actively promote R&D and innovation consistently creating high-quality game products. By leveraging Party building efforts with business development. Besides we actively conducted various forms of learning and activities to

technology and creativity we aim to drive the sustainable development of the industry and contribute to the ongoing creation of strengthen Party member education and enhance the level of corporate spiritual civilization.social value.In January 2024

Emphasis on shareholder returns The Company’s General Party Branch actively participated in the Spring Festival

charity event organized by the Siming District Community Volunteers Association.We delivered care packages to migrant children demonstrating our commitment to

Amount of cash dividend (RMB 100 million) Cash dividend amount as a percentage of net profit supporting vulnerable groups through tangible actions and embodying the Company's

attributable to shareholders of the Company (%) compassion and care for the community.

12.2283.67

75.94 In March 2024

7.18 44.82 The Company’s Party members actively participated in the public welfare event

5.04 organized by the “New Xiamen Residents Library”. With the support from volunteers

and medical personnel they organized a one-day educational excursion to Gulangyu

Island for 30 migrant children as part of the 37th “Sparkling Red Star” event. Through

cultural immersion the event aimed to support the growth and development of the

migrant children.

202220232024202220232024

In April 2024

Corporate culture The Company’s party members held a Qingming Festival memorial event at theXiamen Revolutionary Martyrs Cemetery. Centered on the theme of “RememberingRevolutionary Martyrs Inheriting the Spirit of Dedication” the event commemorated

Act with Integrity (Integrity) Clarity of Essence (Clarity) the monumental achievements of the revolution promoted the national spirit and

inspired volunteers to learn from the dedication of the revolutionary martyrs.We focus on long-term benefits do what We grasp the essence of things and

is more valuable and right for long-term address problems from their root causes.development and establish positive We delve deeply into user needs prioritize In July 2024

cooperative relationships with all those we the user experience and guide our work

work with. by standing in the user’s perspective to The Company held a general meeting of Party members on 1st July where

evaluate the outcomes. participants delved into the discourse of Xi Jinping on new quality productive forces.Values The meeting emphasized the role of innovation in driving development guiding Benefit from Humility (Humility) Elegance in Behavior (Elegance) corporate practices and fostering high-quality growth.We encourage our employees to be We encourage our employees to follow

humble rather than arrogant or complacent. a decent discipline pursue a quality In September 2024

We believe that it is essential to respect lifestyle and cultivate an appreciation for

others’ opinions and view ourselves from aesthetics.their perspective. The Company’s General Party Branch convened a study session focused on the spirit

of the third plenary session of the 20th CPC Central Committee. The session centered

on studying the Resolution of CPC Central Committee on Further Deepening Reform

Mission Behavioral pattern

Comprehensively to Advance Chinese Modernization. All Party members probationary

members and applicants for Party membership integrated their professional practices

G-bits strives to gather and nurture innovative talent and pursue efficient working methods. Respect Integrity Compliance with

We aim to provide global users with differentiated products and services. We wish to Rules Professionalism Progress with the study engaging in in-depth exchanges of insights and offering suggestions.create and disseminate delightful experiences in the cultural and entertainment field. Perseverance and Honesty With such efforts we aimed to empower the Company’s sustainable development

through Party building and education.

07 08About G-bits

Honors

From 2017 to 2024 From 2021 to 2024The Company has been selected for 8 consecutive years in the “Top 100 China The Company has been awarded the honorary title of “Relatively Outstanding Enterprise in SocialInternet Enterprises with Comprehensive Strength” list jointly issued by the Internet Responsibility Performance of Chinese Game Enterprises” by People's Daily for 4 consecutive years

Society of China and the Ministry of Industry and Information Technology

From 2022 to 2024 In March 2024

The Company has been awarded “Grade A” by the Shanghai Stock Exchange (SSE) for the annual The Company was selected as a “National Cultural Industry Demonstration Base” by the Ministry of

information disclosure for 3 consecutive years.1 Culture and Tourism

From 2022 to 2024 In November 2024

The Company and its subsidiaries have been selected as “Cases of Game Public Welfare Ceremony” Shenzhen Leiting Information Technology Co. Ltd. a subsidiary of the Company was selected as

by People’s Daily one of the first member units of the Working Committee for Digital IP Application under the China

Audio-Video and Digital Publishing Association

In September 2024 In November and December 2024

The Company was listed in the “2024 Top 500 Chinese Private Enterprises in R&D Investment” The Company was honored with the titles of “Best Sustainable Development Practice Cases of Listedby the All-China Federation of Industry and Commerce Companies in 2024” “2024 Best Practice of the Board of Directors of Listed Companies” “2024 BestPractice of Listed Company Board Offices” and “Best Practice for 2023 Annual Results Conference ofListed Companies” by the China Association for Public Companies

1 The annual evaluation of information disclosure work of Shanghai Stock Exchange (SSE) is an annual comprehensive assessment of the quality of

information disclosure and related work of listed companies conducted by SSE. The evaluation of information disclosure work covers compliance

effectiveness and management of information disclosure affairs.

09 10Corporate Governance and ESG Management

Corporate governance ESG governance

The Company strictly adheres to the requirements of the Company Law of the People’s Republic of China the Securities Law

of the People’s Republic of China the Code of Corporate Governance for Listed Companies the Rules Governing the Listing ESG governance structure

of Stocks on Shanghai Stock Exchange and other laws regulations and normative documents. On this basis the Company

continually refines its corporate governance policies and systems enhancing the governance structure that includes the

Shareholders’ Meeting Board of Directors Board of Supervisors and Management. This promotes the Company to establish a The Company is committed to enhancing our Environmental Social and Governance (ESG) system and continuously

governance mechanism with clear rights responsibilities and standardized operation guides the Company to operate in good strengthening the governance structure to ensure the effective identification assessment management and monitoring of

faith and in compliance with regulations effectively manage and control risks promotes the Company to achieve sustainable impacts risks and opportunities related to sustainable development. We have continuously improved our ESG policies and

and high-quality development and creates long-term value for shareholders and society. systems establishing a robust ESG governance structure and fully integrated sustainable development issues into our strategic

and operational decision-making.The Shareholders’ Meeting is the highest authority of the Company. The Company convenes and holds Shareholders’

Meetings in strict accordance with relevant regulations and requirements to ensure that shareholders fully exercise their rights. The Company abides by the requirements of the Rules of Procedure of the Board of Directors and the Working Rules of the

The Board of Directors of the Company consists of a Strategy Committee an Audit Committee a Nomination Committee Strategy Committee of the Board of Directors. On this basis the Company has clearly stipulated that the Strategy Committee of

and a Remuneration and Appraisal Committee. The Board of Directors and its committees shall jointly be responsible for the Board of Directors is responsible for overseeing and inspecting the implementation of the Company's ESG Working Group

determining the strategic direction and overall strategy of the Company and supervising the work and business performance providing guidance when necessary reviewing the Company's ESG report ESG-related policies and other major ESG-related

of the Management as well as the operation and financial performance of the Company. In January 2025 G-bits completed matters conducting research on ESG governance and providing decision-making advice to the Board of Directors including

the re-election of its Board of Directors. The Company's sixth Board of Directors comprises seven members including ESG governance vision goals and policies. The ESG Working Group is primarily responsible for developing the ESG work

three independent directors and two female directors. The Audit Committee the Nomination Committee and the implementation plan and coordinating the assessment and management of ESG risks and opportunities.Remuneration and Appraisal Committee are all chaired by independent directors and independent directors constitute

the majority of the committee members thereby safeguarding the independence of major decisions of the Company.The Board members possess professional expertise and extensive industry experience in various domains including game Strategy Committee of the Board of Directors

research and development operations law and finance. They are adept at integrating diverse perspectives and principles to

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

Title Name Gender Education background Industry Compliance Finance

experience management management ESG Working Group

Chairman Lu Hongyan Male Bachelor’s degree

ESG governance structure

Vice Chairman Chen Tuolin Male Master’s degree

All members of the ESG governance structure possess extensive industry experience professional capabilities and ESG

Director Gao Yan Male Master’s degree

management skills which ensure the effective achievement of the ESG-related work. The Company has established an ESG

information reporting mechanism through which the ESG Working Group regularly reports to the Strategy Committee on ESG-

Director Lin Jiajin Male Master’s degree related matters such as the progress of ESG goals policy implementation and the risks and opportunities the Company faces.In this way the Company ensures that Committee members have access to ESG-related information in a timely manner and

Independent

Director Bao Huifang Female Master’s degree

that ESG matters are adequately discussed and monitored.Independent The Company monitors and evaluates the implementation of its ESG strategy through internal audits and compliance

Director Liang Yanhua Female Bachelor’s degree inspections and optimizes the ESG management system based on the assessment results. To ensure the effective

implementation of ESG targets the Company has established corresponding management mechanisms to ensure that the

Independent Wu Yibing Male Doctoral degree management and relevant departments focus on ESG issues and continuously optimize the relevant management practices.Director

13 14Corporate Governance and ESG Management

Materiality analysis Communications with stakeholders

Taking into account the characteristics of the Internet game industry the Company invites internal and external stakeholders to G-bits is committed to transparent and open communication. The Company strictly adheres to the relevant internal management

identify and determine the materiality of ESG issues through questionnaires reviews and summaries and exchange meetings. systems. This ensures that the concerns of investors directors and other stakeholders are fully heard and addressed. The

Based on the analysis results of the assessment process we have identified materiality issues of concern to stakeholders Company communicates with key stakeholders such as players investors regulators industry associations employee

developed a materiality matrix and submitted it to the Board for confirmation. representatives partners and the public through questionnaires regular communications interviews and other approaches.This enables the Company to comprehensively assess the potential economic social and environmental impacts of the issues.We have identified a total of 20 issues2 of materiality which are assessed as follows:

Stakeholder Issues of concern and communication Communication channels and frequency

Data security and customer privacy protection

8 Contribution to society

Innovation-driven 3 2 ● Regular reports (quarterly)

Environmental compliance management 9 Rural revitalization 4 Safety and quality of ●

11 10 products and services Safety and quality of products and ● Temporary announcements (irregular)

Ethics in science and technology 5 Employees services

Communications with stakeholders ● Shareholders’ Meeting (annual)

● Innovation-driven

● Performance presentation (quarterly)

15 Response to climate change 12 Equal treatment of small- and 6 Anti-bribery and anti-corruption Data security and customer privacy medium-sized enterprises

7 protection

● Investor research (irregular)

13 Anti-unfair competition

Supply chain security Shareholders and Employees ● ● Press releases (irregular)

16 Energy utilization 14 Due diligence

17 investors ● Anti-bribery and anti-corruption ● Investor hotline (real time on workdays)

18 Water resources utilization

Circular economy ● Anti-unfair competition ● IR mailbox (real time on workdays)

19 ● SSE E-Interaction (real time on workdays)

Ecosystems and biodiversity conservation

20 Waste disposal ● Employees

● Innovation-driven

Moderate high

● Data security and customer privacy

Importance to the Company protection ● Phone calls e-mails and meetings (irregular)

●●

2024 matrix of materiality issues for G-bits Ethics in science and technology Regular reports (quarterly)

● Anti-bribery and anti-corruption ● Temporary announcements (irregular)

Issues of high materiality Issues of moderate materiality Issues of general materiality Director ● Communications with stakeholders ● On-site inspections (irregular)

● Data security and customer ● Anti-bribery and anti- ● Ethics in science and technology Due diligence● Energy utilization

privacy protection corruption ● Environmental compliance ● Water resources utilization ● Environmental compliance

● Safety and quality of ● Supply chain security management ● Circular economy management

products and services ● Contribution to society ● Equal treatment of small- and ● Ecosystems and biodiversity

● Innovation-driven ● ● Rural revitalization medium-sized enterprises conservation Regular questioning (irregular)

● Employees ● Anti-unfair competition ● Waste disposal ● High-level meetings (irregular)

● Communications with ● Due diligence ● Data security and customer privacy

stakeholders ● Under supervision (real time)● Response to climate change protection

● Proactive communication (irregular)

● Contribution to society

We have responded to the above issues of materiality in sections of this report to help stakeholders gain a more comprehensive ● Anti-unfair competition

Information reporting (within statutory time

limits)

understanding of the Company's ESG performance.Government and ● Equal treatment of small and medium- ●

sized enterprises Working meetings (irregular)

At the same time we are proactively reviewing and exploring approaches to assessing and analyzing the financial materiality of regulators ● Policy engagement (irregular)

ESG issues. This will enable us to better guide the management and disclosure of information related to sustainable development. ● Environmental compliance

management ● Site visits (irregular)

2 We specialize in the development and operation of online games so the impact on the environment mainly arises from the consumption of energy and ● Information disclosure (based on statutory

resources and emissions during the operation. Our business model does not involve manufacturing or discharge of industrial pollutant such as wastewater requirements)

exhaust gas or waste dregs. Therefore no pollutant issues are involved.

1516

Importance to stakeholders

Moderate highCorporate Governance and ESG Management

Sustainability due diligence

Stakeholder Issues of concern and communication Communication channels and frequency The Company has established a systematic due diligence mechanism. This ensures its business compliance with industry

standards and regulatory requirements in areas such as data security business ethics environmental compliance and employee

● Employee union activities (irregular) management.● “Founder Meetup” events (quarterly)

● Employees The ESG Working Group is responsible for identifying and managing sustainability-related risks analyzing potential risks

● Corporate culture meetings (irregular) proposing improvement measures and overseeing the implementation of corrective actions. Meanwhile the Company

● Innovation-driven

Employee interviews (irregular) conducts independent reviews and compliance assessments in key areas to enhance the professionalism independence ●

Employees ● Ethics in science and technology and comprehensiveness of its due diligence. The areas covered include data security and privacy protection supply chain

(including ● Circular economy Employee feedback mechanism (real ● management and employee management.management) time)

Questionnaires (irregular) During the Reporting Period the Company conducted due diligence on the following core risk areas related to sustainability:●

Dimensions of due Responsible Procedures for impact/risk

High-quality game products (real time) diligence department identification

Initiatives to mitigate impacts and risks

● Safety and quality of products and

services Professional customer service team (real Security Conduct regular data ● time) Enhance server security optimize data encryption technology Department compliance reviews to identify

Data security and Legal and Public potential risks such as data and establish a sound data governance framework to ensure full ● Data security and customer privacy

protection Self-service platform (real time) customer privacy Affairs Department breaches and cyber-attacks

protection of user privacy

Players protection●

Ethics in science and technology Social media (real time)● Analyze user behavior data

● Player surveys (irregular) assess the implementation ● Continuously optimize game access restrictions and time

Customer Service of the anti-addiction system management functions and improve the content review mechanism

Department optimize the real-name to prevent the dissemination of inappropriate content

Protection of Legal and Public verification mechanism Affairs Department and conduct research in ● Step up the promotion of the parental guardian model to increase

● Supply chain security minors cooperation with parents and users’ awareness and usage of the minor protection mechanism

● Daily communication mechanism (real

Equal treatment of small and government regulators● time)

medium-sized enterprises ● Continuously optimize supply chain compliance management

● Bidding system (irregular) through regular audits and set up a reporting incentive mechanism

● Anti-bribery and anti-corruption to encourage employees to actively engage in compliance

● Suppliers revisit (irregular/annual) Audit Department Conduct supply chain monitoring thus enhancing risk prevention and control capabilities

Energy utilization Procurement compliance management

Business partners ● On-site investigation (irregular) Operations through daily audits review of ● Require partners to abide by the principles of fair competition

● Innovation-driven Business ethics Department historical cooperation records business integrity and sustainable development clearly define

● Supplier training (irregular/annual) and other approaches integrity requirements at the supplier admission stage and

● Circular economy strengthen the awareness of integrity and compliance by sending

annual integrity appreciation letters to suppliers

● Prioritize suppliers that meet environmental standards when

● Rural revitalization purchasing electronic equipment and encourage supply chain

● Engagement in public welfare donations partners to adopt low-carbon production models and sustainable

● Contribution to society (irregular) Assess suppliers' materials

Ecosystem and biodiversity Procurement environmental violations labor ● ●

● Community communication and visits Operations rights-related performance

Implement multi-brand product selection and diversified supply

conservation Supply chain Department and identify sustainability- strategy to reduce dependence on a single supplier and seek (irregular)

Community and sustainability related supply chain risks alternative suppliers to enhance supply stability● Waste disposal

the public ● Care for vulnerable groups (irregular) ● Optimize inventory management based on market supply and

● Water resources utilization demand dynamics and minimize supply delays and quality risks

through flexible delivery and contractual constraints

Conduct regular employee Optimize the working environment and remuneration system to

● Ecosystem and biodiversity satisfaction surveys to assess enhance employee satisfaction and loyalty based on the survey

conservation HR Department employees' satisfaction levels results

● Industry cooperation (irregular) Planning Employee Departmnet with the work environment ● Provide career development planning and training opportunities ● Innovation-driven Exchange on the protection of property management remuneration and career ● to support employees' professional growth and enhance team development

● Ethics in science and technology rights (irregular) cohesion

Industry

associations Anti-unfair competition

● Culture promotion (irregular) In the future the Company will further strengthen risk monitoring in the sustainability field enhance its due diligence system

● Due diligence and promote the sustainability of the online game industry. Through responsible corporate practices we aim to create long-term

value for society.

17 18Corporate Governance and ESG Management

Business ethics Conducting business ethics risk assessments

To prevent business ethics risks such as bribery and corruption G-bits has established a three-tier defense system comprising

the Audit Committee of the Board of Directors the Audit Department and relevant business units. The system ensures the full

G-bits strictly abides by the Company Law of the People’s Republic of China the Securities Law of the People’s Republic of implementation of the Company’s business ethics compliance and the effective enforcement of the Code of Ethical Business

China the Anti-Money Laundering Law of the People's Republic of China the Anti-Unfair Competition Law of the People's Conduct. The Audit Department regularly assesses and reviews compliance operations and fulfilment of the Code of

Republic of China and other laws and regulations. On such basis the Company adheres to business ethics in daily operations Ethical Business Conduct under the guidance of the Audit Committee of the Board of Directors and performs business

and external cooperation while strengthening integrity and compliance management. The Company continuously improves ethics audits of the Company and all its subsidiaries. The Company ensures that the audit of the Code of Ethical

the anti-bribery and anti-corruption management mechanisms fraud prevention and control systems and risk management Business Conduct covers all business areas of the Company and all its holding subsidiaries every three years.framework for unfair competition. Through strict internal control measures the Company effectively identifies and controls

compliance risks thus ensuring the transparency and fairness of business operations. We are committed to fostering a fair

honest and sustainable business environment. Together with industry partners we promote responsible corporate practices.Strengthening anti-bribery and anti-corruption management Audit Third line of defenseCommittee

of the Board

of Directors

G-bits strictly adheres to the Interim Provisions on Banning Commercial Bribery and relevant laws and regulations. In

addition the Company has established internal policies such as the Code of Ethical Business Conduct the Anti-Fraud

Regulations the Code of Integrity and the Gift Acceptance Policy. With these regulations the Company is committed

to upholding business ethics in its daily operations and external collaborations strictly prohibits bribery corruption Audit Department Second line of defense

and fraudulent activities and effectively control risks to foster a culture of integrity ensuring the Company’s stable

healthy and sustainable development.Enhancing the integrity management system

The Company has established a comprehensive anti-bribery and anti-corruption management system. The Code of Ethical Relevant Business Units First line of defense

Business Conduct explicitly prohibits bribery kickbacks or any form of corrupt practices requiring employees not to directly

or indirectly offer promise solicit or accept any improper benefits from any individual entity or organization. The Code of

Ethical Business Conduct is applicable to all directors management personnel and employees (full-time part-time interns and

outsourced employees) of the Company and all its subsidiaries ensuring that integrity standards are applied across the entire

business chain. We have also incorporated the anti-corruption and anti-bribery-related indicators from the Code of Ethical

Business Conduct into the employee performance and remuneration evaluation system further standardizing employee conduct. Three-tier defense system for business ethics and compliance management

The Company upholds the core values of “integrity clarity humility and elegance” taking a zero-tolerance attitude

towards any breach of business ethics. In the Code of Integrity the Company explicitly stipulates that all employees must This year the Company conducted audits on employee conflict of interest and employee rights and interests as stipulated in the

strictly adhere to the Code. Violation of any of its provisions will result in termination of employment. Code of Ethical Business Conduct ensuring its effective enforcement.During the Reporting Period the Company was not involved in any lawsuits related to commercial bribery or corruption. No

directors management personnel or employees were dismissed disciplined or investigated for related misconduct nor were

there any instances of contract termination or non-renewal with business partners due to commercial bribery or corruption.The First Prohibition Line The Second Prohibition Line

Prohibition of accepting bribes Prohibition of committing fraud;

kickbacks or soliciting bribes;

The Third Prohibition Line The Fourth Prohibition Line

Prohibition of misappropriating or Prohibition of leaking confidential

transferring the Company’s interests; information and transferring benefits.

19 20Corporate Governance and ESG Management

Maintaining clear reporting channels Building an integrity-driven supply chain

The Company has established a comprehensive reporting process clearly specifying the policies for protecting The Company places a strong emphasis on the integrity than 3400 letters were sent with all our suppliers

whistleblowers in the Code of Ethical Business Conduct and the Anti-Fraud Regulations ensuring the full protection of and ethical performance of suppliers striving to build a participating in the business ethics training.whistleblowers' legitimate rights and interests from infringement. The Company provides anonymous reporting channels and transparent open and compliant supply chain. The Company

requires the Audit Department to strictly maintain the confidentiality of the whistleblower’s name contact information requires all suppliers and other business partners to strictly This year the Company’s Audit Department conducted

and reported matters when investigating fraud corruption bribery and other misconduct. The Company adopts a strict and comply with the integrity system when providing goods audits focusing on conflicts of interest gifts gratuities

severe approach to handle retaliation. For any act that infringes on the rights of whistleblowers and constitutes a violation of and services to the Company or acting on behalf of the and hospitality and anti-corruption and anti-bribery.laws relevant person shall be subject to prosecution for criminal responsibility. In cases of corruption or fraud that has been Company. These efforts ensure that all collaborations meet Specifically the Company reviewed the employment

verified a corresponding cash reward will be given to the whistleblower according to the company policy. high standards of business ethics and compliance. If any histories of certain procurement staff to verify that they had

violations of the relevant policies are identified the Company no potential conflicts of interest. Furthermore through a

will immediately terminate the partnership and blacklist sampling approach the Company also reviewed whether

Assessment Report Investi- the relevant entity as a supplier permanently ending the employees involved in procurement and operations had Acceptance and Investi- and gation Case Follow-up

handling processing Filing partnership to maintain a fair and just business environment. improperly accepted gratuities from partners or clients of reports registration gation summary reports and examined the entire process of inquiries and price

To ensure integrity and fairness in cooperation with suppliers comparisons for any signs of fraudulent practices.Reporting process the Company includes integrity clauses in all contracts

and specifies reporting channels for commercial As a member of the Trust and Integrity Enterprise Alliance

bribery. Fraud bribery corruption and other forms of ethical G-bits actively participates in training and industry exchange The Company has established multiple public

misconduct are strictly prohibited. Suppliers are prohibited meetings organized by the Alliance. This year we participated reporting channels including telephone

from giving or offering gifts items or kickbacks or taking in four such events. G-bits continues to learn from external email postal mail and the Intranet. We E-mail for reporting: jubao@g-bits.com

encourage both internal and external parties or attempting to take any other disguised action directly

anti-corruption governance and audit experiences improving

Tel. for reporting: +86 182 5071 2733 indirectly or under any guise to provide improper benefits to its integrity culture and anti-fraud system while optimizing to report any violations of laws regulations

our employees. Suppliers are also encouraged to report any internal control systems and processes to create a fair and company policies or rules to the Audit Mailing address: Audit Department of

Department either openly or anonymously. breaches of integrity by our employees using the Company's

transparent business environment.G-bits Building No. 4 Wanghai Road

This aims to promote compliant operations reporting channels.Software Park Phase II Siming District

and safeguard a fair and just business Online report Xiamen platform We have a unified supplier admission standard which

This year the Code of Integrity was read

environment. stipulates specific onboarding requirements for different more than

suppliers. Apart from qualification and competence we times

also assess suppliers’ performance in business ethics and 1300

Enhancing integrity awareness integrity. Supplier candidates who apply for the entry into

the resource library must read the Code of Integrity before A total of more than

To further enhance employees’ integrity awareness and foster a corporate culture of honesty and fairness we continue to submitting qualification materials for review. While those

advance business ethics advocacy and compliance management ensuring that employees fully understand and adhere to the included in the resource library will be notified of integrity 3400 letters notified of integrity

Company’s integrity and compliance requirements. cooperation by letter on an annual basis. This year the

Code of Integrity was read over 1300 times and more cooperation were sent

Improving management mechanisms

for conflicts of interest Advancing integrity culture advocacy Combating unfair competition

This year the Company established The Company regularly delivers integrity and compliance promotion

a platform for employees to report content to all employees including integrity promotion emails during G-bits rigorously complies with anti-unfair competition We strictly prohibit false advertising monopolizing trade

and manage conflicts of interest and festivals and International Anti-Corruption Day awareness emails. These laws and regulations in all jurisdictions where it operates secret infringements and other unethical behaviors. Our

developed the Reporting Guidelines initiatives aim to enhance employees’ awareness of ethical business including but not limited to the Company Law of the People’s Code of Ethical Business Conduct explicitly requires

for Conflicts of Interest to ensure a practices anti-fraud anti-bribery and anti-corruption measures. The Republic of China the Anti-Unfair Competition Law of the employees to respect the legal rights and interests of users

clear understanding of the concept of Company also conducts business ethics training for all new employees. People’s Republic of China and the Anti-Monopoly Law of suppliers and competitors comply with the principles of

conflicts of interest and the reporting After the training employees will be assessed to ensure that they are the People’s Republic of China. In all business dealings fair trade in all business activities and refrain from gaining

requirements. well informed of the Company’s current policies on business ethics. the Company is committed to principles of fair trade mutual competitive advantages through unethical or illegal means.trust openness and win-win cooperation aiming to foster

a fair transparent and sustainable market environment for This year the Company did not encounter any lawsuits

During the year the Company's business ethics training covered all directors management personnel3 and all competition. G-bits has established a management system or significant administrative penalties arising from unfair

employees including full-time and part-time employees interns and outsourced employees. to prevent unfair competition with a focus on compliance- competition practices.driven operations. The Company continuously refines the

3 M anagement personnel refers to employees holding managerial responsibilities across the Company's business lines and functional departments internal compliance mechanism to ensure that all business

including supervisors at all levels department managers and those in higher management positions.activities align with regulatory requirements.

21 22Product and Service Empowerment

Developing high-quality products Crafting a celadon trophy with an inheritor of intangible cultural heritage

To preserve and innovate intangible cultural heritage we invited Master Huang Shunming an inheritor of Longquan Celadon

craftsmanship to design a customized Longquan celadon porcelain trophy for the Celebrity Championship of AskTao Mobile.G-bits always places great emphasis on product quality striving to provide users with high-quality games that offer an enjoyable The trophy draws inspiration from the Zuo Bo Gui the earliest known sports trophy dating back to the Western Zhou Dynasty (circa

game experience. The Company reinforces content governance to ensure the positive impact of game content on players 3000 years ago). Besides the trophy is decorated with coiled dragon patterns a traditional Chinese decorative motif which is

so as to effectively safeguard the physical and mental well-being of minors. Keeping up with cultural confidence we strive to creatively integrated with the official insignia of the Celebrity Championship embodying both aesthetic elegance and cultural

enrich our games with culture. To this end we integrate Chinese culture into the game design to present the unique charm and significance. In terms of the crafting process Master Huang Shunming meticulously adhered to the traditional firing techniques

profoundness of Chinese culture to the digital entertainment industry and players worldwide. We also prioritize production quality of Longquan Celadon. The trophy underwent 72 intricate steps to ensure its exceptional quality and artistic value.by improving various aspects of our game development process. We actively respond to player feedback and make every effort

to protect user rights so as to gain higher user satisfaction. During the Reporting Period the Company did not experience any

major safety or quality incidents related to our products and services.Promoting Chinese traditional culture with culturally

enriched games

At G-bits we are deeply aware that Chinese culture serves as the bedrock of the nation’s development and actively promoting

traditional culture is a responsibility of every enterprise. To honor this commitment we have developed games such as AskTao

(PC) AskTao Mobile YiNian XiaoYao and Immortal Sword seamlessly integrating traditional cultural elements into game design

and development. Our goal is to show the unique characteristics of Chinese cultural heritage. Cultures are preserved and

innovated as players are immersed in a rich cultural atmosphere during their gameplay.Celebrating the new year with a renowned calligrapher and painter

As part of AskTao Mobile's events we invited Master Zhou Zhenbang a distinguished Chinese calligrapher and painter and one

of the“Top 100 Meritorious Artists of the Republic” to write blessings for players for the new year. This not only showcases the Design draft of the trophy for Celebrity Championship The coiled dragon pattern on the trophy

unique charm of traditional calligraphy but also allows players to feel the warmth and beauty of the new year.Lighting up Zhanqi fish-shaped lanterns to celebrate folk traditions

The fish-shaped lanterns crafted in Zhanqi Village Anhui Province symbolize the longing for reunion and companionship. With a

history spanning over 800 years they have become a distinctive component of China’s intangible cultural heritage. In December

2024 we collaborated with the traditional fish-shaped lantern culture of Zhanqi Village to launch a limited-edition fish-shaped

lantern outfit in AskTao Mobile. We also hosted a New Year Fish-Shaped Lantern Festival in the game. Players could team up

to participate in a Koi Parade on fish-shaped lanterns sharing the festive atmosphere and experiencing the unique charm of

traditional folk culture with their in-game friends.Master Zhou Zhenbang a calligrapher and painter writing new year blessings for players The fish-shaped lantern festival for reunion and companionship The fish-shaped lantern outfit in the game of AskTao Mobile

25 26Product and Service Empowerment

Preserving traditional culture through intangible cultural heritage promotion

projects

In 2024 YiNian XiaoYao continued the cultural publicity project of “Protecting and Inheriting” dedicated to promoting traditional

intangible culture heritage projects into daily life. This year we successfully organized various intangible cultural heritage

promotion events promoting the Fire Dragon Steel Flower the dragon head crafting the Nuo culture and the mortise-and-tenon

craftsmanship. In the future YiNian XiaoYao will continue to integrate intangible culture heritage into game allowing more young

people to understand and appreciate traditional culture.*

Protecting and Protecting and Protecting and Protecting and

inheriting - the inheriting - the dragon head inheriting - the

inheriting - the

Fire Dragon Steel mortise-and-tenon

Flower crafting

Nuo culture

craftsmanship

The fire dragon dance Creating the dragon head framework with the inheritor of Caizha Handcrafting the Nuo Opera mask The mortise-and-tenon craftsmanship of Qingxu

Temple in the game of YiNian XiaoYao

“Fire Dragon Steel Flower” is one of China’s first intangible We invited players to visit Master Cao Shengqiong a city- Drawing inspiration from the Nuo culture we collaborated To promote the intangible cultural heritage of the mortise-

cultural heritage projects. Beneath a dazzling cascade level inheritor of Caizha (a kind of paper artwork) to learn with Master Wang Rubin an inheritor of Enshi Nuo Opera and-tenon craftsmanship YiNian XiaoYao collaborated

of molten iron sparks reaching 1600°C dragon dance about the intricate techniques behind this craft. Players mask-making to hand-carve a custom Nuo Opera mask with Master Liu Wenhui an inheritor of China’s ancient

performers move gracefully bringing the magnificent took part in creating the framework of a dragon head. avatar. architectural mortise-and-tenon techniques. Together we

spectacle of the “fire dragon” to life. To celebrate the third By practicing material selection cutting weaving and recreated Qingxu Temple an in-game Taoist temple as

anniversary of YiNian XiaoYao we invited players to visit assembling the participants learned of the stringency and Nuo dance is an artistic expression of divine power and a wooden building block model using traditional mortise-Tongliang Chongqing — the birthplace of the “Fire Dragon craftsmanship required to preserve the intangible cultural spiritual strength. We invited traditional Chinese dance and-tenon methods. These handcrafted Qingxu TempleSteel Flower”. With the guidance of Master Huang Tingyan heritage. performer Qisan 73 to create a dance performance which building blocks were offered as anniversary celebration

a nationally recognized inheritor of the dragon dance was guided by Master Ye Shijun an inheritor of Nuo Opera. products attracting more people to explore the art of

players personally experienced the art of dragon dance and This cross-disciplinary collaboration blended traditional Nuo mortise-and-tenon craftsmanship and appreciate the

immersed themselves in the mesmerizing tradition of molten Opera dance with contemporary elements breathing new beauty of classical Chinese architecture.iron fireworks. life into Nuo culture while introducing the ancient Chinese

cultural tradition to more people through our game.

27 28Product and Service Empowerment

Listening to users’ voices and enhancing user experience Case The AskTao Mobile conference

Focusing on user experience in depth the Company establishes a comprehensive communication mechanism to listen to On June 15 2024 the annual AskTao Mobile conference was held as scheduled in Xiamen gathering players and

players’ feedback collect their opinions and respond to their needs. This initiative ensures that user needs are fully attended to the development team to discuss game R&D plans and optimization directions. The conference bridged players and

and effectively responded to. developers for in-depth communication enabling the Company to better understand player needs and optimize game

design continually enhancing the overall game experience.Focusing on user experienceThe Company has always adhered to the concept of “Serve as the Official Companion by the User’s Side Creating anExceptional Service Experience” and is committed to providing professional and efficient services. This year the Company

organized a number of face-to-face communication activities and offline competitions to engage with players in-depth about the

current status of the products collect feedback and listen to their voices. Based on the feedback from players we continue to

refine our products striving to improve the game quality and user satisfaction in all aspects.Case The face-to-face gathering of AskTao Mobile

In June 2024 AskTao Mobile organized 2024 face-to-face gathering. During the event players engaged in in-depth

and lively discussions with the official development planning team and operation team of the game on topics such

as faction battle gameplay and experience optimization for account upgrades. We iterated and optimized the game

planning and performance according to suggestions from players.Group photo of AskTao Mobile conference

Case National competition of AskTao Mobile

On December 14 2024 the annual national competition of AskTao Mobile concluded successfully. Player teams

progressed through multiple rounds of auditions and elimination matches with the top-performing teams competing

in the offline finals. The competition not only provides players with a diverse combat experience but also offered a

platform for in-depth interaction between players and the project team.Discussion site Group photo

Champion team holding the trophy Group photo of the competition

29 30Product and Service Empowerment

User communication and services Upholding innovation-driven development

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

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

Review System and Quality Inspection Work Mechanism. In the design and establishment process of the user service system With a further focus on innovation and R&D G-bits actively explores the frontiers of technology and establishes a robust

the Company has strictly followed the COPC4 standard striving to provide diverse communication channels and high-quality R&D and innovation management system to drive the development of new quality productive forces. We are committed to

services. strengthening intellectual property protection and ensuring the security and compliance of technology application thereby

providing a solid foundation for the sustainable growth of the enterprise.Attaching great importance to communication with users the Company has established diverse complaint channels such

as online interaction work ticket handling hotlines and reception for user visits to easily voice their opinions and suggestions.We have also built a complaint handling platform aiming to provide users with a convenient and efficient complaint channel.To further refine customer service management the Company regularly conducts in-depth analysis of user complaint data This year the amount of R&D investment and the number of R&D accounting for

examining aspects like complaint types frequency geographic distribution and user groups. This move can identify weak links the proportion of operating revenue reached personnel was

in products and services accurately and assist in continuous product improvement and innovation thereby lifting the Company’s

products and services to a higher level. This year the Customer Service Department handled 1013 valid complaints5 all 20.50% 919 62.95%

of the

of which were properly resolved. total number of employees

In order to further improve the quality of customer service the Company has established a service quality inspection mechanism

to analyze guide follow up and check the defects and areas for optimization found in the inspection process thus forming a

closed-loop management of user services. The Company also cooperates with the Operation Department to conduct multiple

rounds of game ecosystem research and special update research with users. This move helps us to optimize products. Exploring technological frontiers

In addition we conduct regular training for customer service personnel and hold monthly service case meetings to share

typical common and outstanding cases. Through this we set user service optimization goals and elevate the team’s service

proficiency. Placing technological innovation at the heart of driving force G-bits continuously refines its R&D management system and

makes forward-looking arrangements for cutting-edge technologies to promote the development of new quality productive forces.Ensuring production quality and innovating high-quality games

Establishing R&D and innovation management systems

The Company has established a robust quality management system for game production. By implementing mechanisms to The Company highly values the key role of technological innovation in sustainable development. We have established a sound

ensure clear internal quality control standards the Company continues to provide users with high quality products and enhance technological innovation management system to ensure that R&D activities are in line with corporate governance requirements

the game experience. and industry standards for sustainable development providing system safeguards for the efficient advancement of R&D.To ensure the stability smoothness and security of game products the Company conducts quality reviews at multiple stages Under the leadership of the Chairman and General Manager the Head of R&D Business collaborates to guide and

including pre-launch development and testing through close collaboration between the R&D operations and technology coordinate various aspects of game R&D ensuring seamless integration between project teams and the R&D platform.teams. For products that do not meet the required standards we implement timely rectifications to ensure high-quality and on- As the core unit of game development project teams are responsible for the entire product development process from concept

time releases. creation to final launch as well as ongoing version updates and optimizations. The R&D platform provides comprehensive

support to project teams in areas such as technical development artistic design audio production and product testing. Through

We are committed to improving game quality across multiple dimensions. In terms of gameplay we continuously innovate game optimized resource allocation and cross-departmental collaboration we ensure that project teams can operate efficiently while

events level design and gameplay mechanics. For visuals we strive for high standards in art quality model precision motion continuously enhancing overall R&D effectiveness.smoothness and UI design. In the audio dimension we focus on enhancing immersion through sound effects voice acting

and music. At the same time we drive technological innovation through ongoing training programs such as game rendering The Company has established a systematic reporting mechanism under which product producers and business line heads

techniques AI- drawing applications and performance optimization ensuring an enhanced game experience for players. regularly report to the Chairman and General Manager on business progress ensuring the effective execution of R&D

management. Meanwhile the Company continues to increase R&D investment and drive sustained technological innovationAskTao Mobile has received multiple industry accolades including the “Sixth China Excellent Publication Award (Audio- through diversified approaches ensuring the high-quality implementation of innovative outcomes.Visual and Electronic Games Category)” from the China Publishing Association. It has also been recognized as one of the “Top

10 Most Popular Original Mobile Games of the Year” in the China Game Industry Annual Conference. YiNian XiaoYao has

been nominated for “Top 10 Excellent Creative Games” and “Top 10 Outstanding Emerging Games” by the China Audio-

Visual and Digital Publishing Association. It has also won the “Best Mobile Game Production Award” at the Fifteenth CGDA Strengthening new quality productive forces

Excellent Game Producer Competition.As a seasoned player in the game industry G-bits has consistently focused on cutting-edge technology trends and

4 C OPC (Customer Operations Performance Center) is a global business management and certification standard designed to help organizations deliver continuously optimized the R&D system. The Company has adopted a series of effective management measures to ensure

superior user service and operational performance. its competitiveness in the rapidly changing market environment and to continuously drive the enhancement of new quality

5 Valid complaints are those actually handled excluding repeated complaints and complaints where the complainant cannot be contacted. productive forces. This has laid a solid foundation for the long-term and stable development of the Company and the industry.

31 32Product and Service Empowerment

Innovative R&D strategy - “Minimum Viable Product (MVP) Approach” Protecting intellectual property

G-bits attaches great importance to product innovation and strives to create high-quality games that are both engaging

and commercially successful. The Company adopts the innovative R&D strategy - “MVP Approach”. In the early stages The Company strictly complies with the Patent Law of the People's Republic of China the Trademark Law of the People's Republic

producers must clearly define the project’s core concept including key elements such as core gameplay uniqueness of China the Copyright Law of the People's Republic of China and other relevant laws and regulations. In addition the Company

target audience market positioning and potential risks. Once the project passes the evaluation a prototype is quickly formulates the Administrative System for Intellectual Property the Administrative Measures for Copyright the Administrative

developed based on the creative concept and undergoes user testing to validate the core gameplay. Throughout the Measures for Patent the Administrative Measures for Trademark the Administrative Measures for Domain Name and other internal

development process the team continuously iterates and optimizes at a high frequency leveraging test results to conduct policies. By building a comprehensive intellectual property management system and standardizing the management of intellectual

precise user feedback analysis and promptly address issues to enhance development efficiency. The “MVP Approach” property protection the Company ensures all-round protection for products. The Company's proactive practices in the intellectual

model effectively helps the Company steer product direction avoid ineffective investments and ensure that property protection and transformation of innovative achievements have gained external recognition. We have been awarded the

validated core gameplay art assets and monetization mechanisms are seamlessly integrated. title of “National Intellectual Property Advantageous Enterprise” by China National Intellectual Property Administration.Under the “MVP Approach” strategy the operations team works closely with the R&D team conducting multiple rounds of In terms of the prevention of infringement upon others’ intellectual property rights the Company has implemented a Business

testing and analysis to gain in-depth insights into market trends and user characteristics. This collaboration enables the Compliance Self-Inspection Checklist strengthening the compliance risk assessments for game content and promotional materials

development of customized publishing strategies effectively reducing publishing risks and costs. including fonts images music and artwork.In terms of safeguarding its intellectual property rights against infringement the Company continuously enhances its monitoring

1 Concept phase 2 Demo phase Demo design

framework Demo budget capabilities and has established an independent monitoring network for the whole platform. Additionally the Company conducts

clarification planning infringement investigation through the monitoring system promptly discovers infringement acts requests infringers to stop Refining core project

strategies: gameplay Valuating whether to Demo Small-scale team infringement by means of sending letters warnings complaints and so on shortens the handling cycle of infringement removes

uniqueness target initiate the project development expansion infringing materials and products in an expedited manner.audience market Y

positioning & risks N The Company makes continuing efforts to protect intellectual property rights and crack down on infringement. The Company carried

N Demo testing out a number of special actions to “combat intellectual property rights infringement” cracked down on the infringement of intellectual Stop Stop & analysis property rights such as gaming private servers cheats trademark infringement software copyright infringement phishing websites

Y etc. A variety of measures have been taken to protect the intellectual property rights of the Company's products.Project budget planning The Company encourages continuous innovation among its employees and is committed to increasing investment in research and 4 Post-launch phase 3 Development phase Stop development. During the Reporting Period the Company obtained 4 new patent authorizations. As of the end of the Reporting

Team expansion Period the Company has secured 20 invention patents all of which were applied to its main business. At the same time the

N Company continues to accumulate intellectual property in the fields of software and cultural creation. We have obtained a total of

Version Business Game Development Y Game testing Game 446 copyrights including 358 software copyrights 60 art copyrights 8 music copyrights 7 literary copyrights 11 sound recording

tuning analysis launch tuning & analysis development copyrights and 2 copyrights for works created in a manner similar to film production.As of the end of the Reporting Period the Company has secured We have obtained a total of

Exploring technological frontiers

The Company is actively exploring the application of AI technology in game R&D to continuously improve R&D productivity. 20 invention patents 446 copyrights

In 2023 the Company established the AIWebHub platform integrating various commonly used AI drawing tools

and models to promote the application of AI drawing in game development. In 2024 the Company optimized the

platform based on user feedback improving underlying algorithms and the model training process to enhanced both its

usability and efficiency. By leveraging AIGC and other cutting-edge technologies in game art the Company has effectively Practicing ethics in science and technology

reduced content production time and resource consumption. While ensuring high-quality output these advancements have

also significantly enhanced artistic productivity and overall operational efficiency.Adhering to the concept of technology for good the Company strictly complies with ethical standards in cutting-edge technologies

such as AI and big data to ensure compliance and social responsibility in technology application.Deepening cloud computing applications

The Company remains committed to ethical issues in science and technology enhancing compliance management of technology

Cloud computing is reshaping the production mode of the game industry. G-bits enhances the utilization of computing application to mitigate potential risks. In fields such as AI drawing and game content generation the Company rigorously upholds

resources through cloud storage and computing optimization technologies thus improving the stability and flexibility of ethical principles of fairness justice and reasonableness while strictly enforces data compliance requirements to safeguard user

game services. information.Cloud storage optimization: Reduces local hardware dependency minimizes energy consumption during data transmission Additionally the Company irregularly conducts training and educational programs on ethics in science and technology. Through

and improve the efficiency of resource utilization thus providing technical support for sustainable development.Intelligent computing scheduling: Dynamically adjust computing resources according to business needs and improve diverse channels knowledge on ethics in science and technology is shared and employee awareness of ethics and compliance in

server utilization thus reducing energy waste caused by idle computing power. the application of technology is continuously enhanced.In the future G-bits will continue to advance technological innovation. Leveraging the application of AI and other cutting- This year the Company strictly observed the principles of ethics in science and technology and did not experience any violation of

edge technologies in game R&D and operations we will enhance our technical capabilities and product quality. such ethics.

33 34Protecting Data Ecosystem

Development of data security system Data security lines of defense

Strictly observing the Cybersecurity Law of the People’s Republic of China the Data Security Law of the People’s Republic For network security G-bits has developed the Management Measures of Personal Information Protection the Data Security

of China the Security Protection Requirements for Key Information Infrastructure of Information Security Technology the Protection Management Policy the Data Classification and Grading Policy the Data Security Management Measures the Data

Guidelines for Filing Standard Contracts for Cross-border Transfer of Personal Information and other laws and regulations G-bits Collection Security Management Policy the Data Storage Security Management Policy and other internal regulations. These

has developed a comprehensive data security and user privacy protection management system. The Company has formulated regulations collectively form a comprehensive data security compliance system ensuring that user data is protected throughout

and continuously updated policies covering all relevant business lines including the Data Security Management Measures the lifecycle.the Management Measures of Personal Information Protection the Network Information Security Management System and

Technical Protection Measures the User Information Security Management System the License and User Agreement for Leiting The Company has established a security protection system that encompasses key areas such as data security

Games and the Website and Network Security Prevention Measures. These policies clearly define the rules for collecting compliance management risk prevention and control and player privacy protection. Additionally the Company has

processing and protecting users’ personal information and lay institutional grounds for pre-event prevention in-event monitoring built up three lines of defense to ensure the standardization of data management policies and processes safeguarding

and post-event follow-up. the of user privacy and data security.The Company has established a dedicated cybersecurity leadership team led by the Chairman and General Manager.This team is responsible for overseeing and making strategic decisions on the Company's data security and privacy protection The Company has formulated appropriate management and technical solutions

ensuring that all operational practices comply with domestic and international regulatory requirements. The Company adopts The first line of defense for the network host and application systems respectively such as physicallya tiered management model. Under this model departments such as the Security Department the Technology Platform “defense-in-depth system isolating the core network segments from other networks deploying self-Department and the Information Technology Center perform their respective duties and the safety and quality center customer in layers” developed intrusion detection system for periodic security scanning and baseline

service team and legal team work in close collaboration to build a full-chain security management system. This ensures checks strictly controlling access by third-party applications and adopting WAF

that the Company operates in a legal and compliant manner. The Company strengthens the implementation of data security (Web Application Firewall) anti-DDoS (Distributed Denial of Service Attack) and

responsibilities of the team through a performance appraisal mechanism promoting standardized security management. The other measures to reinforce security protection for the Company’s systems.Company possesses extensive industry background and professional qualifications in data security and customer privacy

protection. The Chairman and General Manager has been deeply engaged in the game industry for many years ensuring a

systematic approach to security management from strategic decision-making to execution. Team members hold authoritative The self-developed security inspection system regularly and automatically

certifications in the security field such as Certified Information Security Professional (CISP) Certified Information The second line of defense scans the vulnerabilities in Company’s business systems shortening the timeSecurity Assurance Worker (CISAW) Certified for Information System Security Professional (CISSP) Certified Cyber “security monitoring andattack/ defense drills” for detecting security vulnerabilities. Additionally we conduct regular penetration Security Response Professional (CCSRP) Certified Information Security Professional - Penetration Test Engineer (CISP tests and organize company-wide network security drills including phishing

- PTE) and ISO 27001 Information Security Management System Auditor. emails network attack & defense simulations to effectively raise all employees’

The Company has established an emergency event reporting mechanism to ensure that in case of any data security incidents awareness and capabilities of data security.(such as a hacker attack or data leak) employees can report to the Board of Directors and relevant departments in a timely

manner. Thus they can initiate a cross-departmental emergency response and formulate remedial measures quickly to minimize

data security risks. We regularly organize security tests and audits for supervising the implementation The third line of defense

“security test and audit” of security measures at all stages. The Audit Department conducts special audits

to effectively supervise and check the effectiveness of the first and second lines

of defense and urges timely rectification for detected problems. This ensures the

Data lifecycle management continuous improvement and effective operation of the data security management system.The Company continues to improve the data lifecycle management system. By improving the management mechanism

conducting dynamic monitoring and fostering employees’ awareness of data security the Company ensures the security and Building a holistic data security framework

compliance of data collection storage usage and destruction.The Company classifies and manages data based on its type and importance developing dedicated security strategies to

ensure data security throughout its lifecycle. For game operations data such as players' personal information and business-

related data is encrypted while office and operational data including game code and general office data is strictly controlled

through authorization management. Additionally core project code is restricted to the R&D network’s production environment

minimizing potential security risks. Meanwhile the Company continuously enhances security management across all stages

including data collection transmission processing storage usage and destruction to ensure compliance and data integrity.

37 38Protecting Data Ecosystem

The Company rigorously adheres to the Information Security Technology - Basic Requirements Data security monitoring and improvement

for Collecting Personal Information in Mobile Internet Applications (Apps)(GB/T 41391-2022)to

ensure compliant and transparent data collection. In addition any unnecessary data collection is

Data strictly prohibited. Before collecting user privacy data clear notification shall be provided G-bits firmly believes that robust data monitoring serves as a cornerstone for ensuring data security and safeguarding personal

Collection specifying the data type purpose and destruction method. Additionally users are granted information. Through compliance inspection internal and external security audits risk prevention and contingency plans a

the right to independently access modify or delete their personal information. Adhering healthy and safe data environment has been established within G-bits with security risks prominently lowered.to the principle of collecting user information on a legal open and minimal basis the Company

minimizes the data collection and storage.Specific compliance inspections

The Company has deployed anti-DDos servers6 WAF(Web Application Firewall) and traffic

Data To better consolidate users’ data security the Company has employed a third party for the on-site specific audit. The party monitoring system to identify and intercept abnormal traffic and prevent hacking in real time. The

Transmission conducted a comprehensive inspection on aspects such as code scanning interface vulnerabilities and data storage Company ensures data safety intactness and confidentiality by encrypting the transmission security and promoted risk rectification. Furthermore the Company regularly conducts security reviews of its suppliers

channels and restricting accesses. and pays attention to the results of compliance audits to ensure alignment with the contracts and regulatory requirements.The Company always desensitizes users' personal information strictly limits the usage of users’

information and collectively archives it after use. To better ensure the security of data processing Internal and external security audits

Data

Processing the Company has set up role-based limits according to the actual business maximizing the

security of private data. For instance the R&D personnel in charge of coding encryption and To effectively and promptly identify data security risks and evaluate the

decryption programs are denied direct access to the encrypted database the key to which effectiveness of the data security management system the Company

is kept by the O&M personnel. conducts internal data security audits on an annual basis and drives

the rectification of identified vulnerabilities. In addition the Company

Taking seriously the encrypted storage of sensitive personal information and access control the engages third-party institutions to conduct comprehensive evaluations

Company adopts different storage strategies for different information based on types and privacy of its security environment and network boundaries and continuously

Data levels continuously enhancing its capabilities in encrypted storage data backup and recovery. To optimizes the security management system by benchmarking industry

Storage better encrypt and store user data the Company has adopted the secure encryption algorithm standards. During the Reporting Period the core information

Third level Security of Information System

Protection Certificate

and the key mechanism. The encryption algorithm and keys are managed separately by systems of the Company and its subsidiaries have been archived

different departments to ensure that the data cannot be decrypted and analyzed by any as the third level of protection of the information system security.single party.The Company discloses the purpose and method of the using user’s personal information Risk prevention and contingency plans

in the user privacy policy limits the use to the scope necessary for the operation of the

product and obtains the consent of the player. At the same time the internal personnel of the The Company has established the Network and Information Security Plan to enhance the emergency management of

Company must comply with the relevant rules when accessing data as follows: unexpected incidents. We have clarified the responsibilities for risk responses guaranteeing the stable operation of information

systems. The Company also requires all departments to complete periodical off-site and off-host backup. Core user data is

Strictly controlling the access and analysis of plaintext data and performing encrypted and backed up in both primary and secondary data centers and then synchronized to remote cloud databases

secondary encryption or obfuscation process to reduce the identifiability of the data; preventing data loss.Data Usage Restricting data access and keeping records of data access and data manipulation; All system maintenance operations are required to be conducted through a bastion host with multi-factor authentication

and Sharing adopted to ensure the authenticity of users’ identities. The bastion host keeps log records and audit logging for users’ activities

Restricting the data to internal use only. All data should be encrypted and stored in preventing tampering or deletion to support post-incident security analysis and event tracing.the database to realize the separation between code and production environment;

Setting up role-based limits to restrain the R&D personnel from accessing online Supplier data security management

databases so as to separate data logic from the key;

Requiring approval from the superior leader for all internal transmission of sensitive For the information security management of suppliers the Company has formulated the Management Measures for Third Party

data. Network and Information Security and has established a supervision and management mechanism for supplier data security

risks. We only provide suppliers with data within the contractual purpose and scope supervise their reasonable use of data and

incorporate data security management requirements into supplier admission cooperation audit and withdrawal processes so

The Company has established a strict data destruction process in line with regulations. We as to strengthen the security availability and confidentiality of suppliers’ data services.Data

Destruction conduct regular checks and destroy or anonymize expired data securing the holistic approach for

data security management and effectively eliminating residual risks. We require that all providers of cloud products and network data resource services obtain certifications such as

ISO9001 ISO20000 ISO27001 or TL9000. Additionally venue suppliers involved in data center operations must hold

CQC7 certification ensuring the security and compliance of our infrastructure.

6 Anti-DDos servers are servers designed with strong capability to prevent and mitigate DDoS (Distributed Denial of Service Attacks). These servers mainly

help protect against traffic-based attacks CC (Challenge Collapsar) attacks and other malicious network attacks ensuring the stable operation of the 7 CQC certification is a voluntary product certification implemented by the China Quality Certification Center (CQC). It aims to indicate that products meet

servers and the data security. relevant quality safety performance and electromagnetic compatibility certification requirements through the application of the CQC mark.

39 40准入阶段 Protecting Data Ecosystem

Safeguarding the healthy content ecosystem

Supplier ● Conduct background checks and security qualification review comprehensively evaluate the

Admission candidates’ data security capabilities and select suppliers with better data security performance.At G-bits we are committed to compliant operations and fulfilling our corporate social responsibility to promote the healthy and

sustainable growth of the cultural industry. The Company strictly adheres to relevant laws and regulations. We have established

● Sign the data security agreement or security responsibility commitment letter with the supplier a sound review mechanism for content compliance strengthened measures for minor protection and optimized the game

specifying the supplier’s data access security responsibilities and necessary security protection ecosystem. Through a multi- tiered governance approach we provide users with a healthy game environment.measures as well as responsibilities and penalties for violations;

Supplier

Cooperation ● Ensure job responsibilities and account privileges adhere to the principle of least privilege;

● Control and manage key processes where the suppliers are involved such as debugging of

collection system interfaces desensitization and destruction of sensitive data. Game content review

● Conduct security tests for the security of software development kits (SDKs) and review the Adhering to the philosophy of operation compliance the Company strictly complies with the Provisions on the Administration of

security status of the supply chain on a regular basis; Online Publishing Services the Notice on the Administration of Mobile Game Publishing Services the Provisions on Ecological

● Conduct third-party security assessments of purchased systems identify product vulnerabilities Governance of Network Information Content and other laws and regulations. In addition to ensure the safety of and control over

through offensive and defensive security testing and require suppliers to correct security issues product content we have established a comprehensive game content review system and implemented several internal

Supplier Audit identified. For suppliers who still fail to meet the Company’s requirements after remediation policies including the Content Editing and Review System the Online Editing and Content Self-Review System

the Company will terminate its relationship with them. Even after the purchased system goes and the Game Operation and Content Self-Review System covering the entire lifecycle of both R&D and operational

live the Company will continue to track its vulnerabilities and include the system in the regular products. In addition being an active party to the Convention on Anti-addiction and Self-discipline of the Online Game Industry

security inspections and manual penetration tests assessing the security of the system the Company fully embraces self-discipline principles. We implement stringent content controls across game development and

continuously and comprehensively. operations.In terms of content review the Company diligently enforces the editing responsibility system and the requirements for content

Supplier ● Implement measures such as data destruction authorization revocation and log review when a review and proofreading resolutely preventing any undesirable content that may negatively affect the physical and mental

Withdrawal supplier terminates cooperation to prevent data leakage. health of users including but not limited to violence sexual innuendo hate speech terrorism misinformation harassment self-

harm or suicide and discrimination. Our unwavering commitment is to create positive and culturally enriched game products. We

aim to deliver positive values through high-quality content and foster a healthy gaming culture thus driving the high-quality and

sustainable development of the industry.Development of data security awareness

The Company conducts security training for employees at different stages and in different positions to continuously

strengthen the data security awareness of all employees. For new employees the Company disseminates information security

awareness through promotional emails utilizing scenario-based comics and security principles to popularize security knowledge.For all employees the Company has launched “Information Security Awareness Training” video courses on its internal online

learning platform making learning available anytime and anywhere.The Company regularly conducts data security training and encourages employees to engage in external training. During the

Reporting Period the security department independently organized 10 technical training sessions covering topics

such as coding security and business operation security. Additionally the Company regularly conducts information security

awareness campaigns to ensure that security awareness is integrated into daily work.The Company always focuses on optimizing the data security and customer privacy protection management system and

cultivating relevant talents. We independently research and develop personal information security testing platform and regularly

participate in professional training organized by the Ministry of Industry and Information Technology and the Telecommunication

Terminal Industry Association to ensure that the data security management system always aligns with the latest industry

standards. At the same time the Company has established a regular security training model conducting regular security drills

professional skills training and simulated penetration testing to strengthen the team’s practical experience in data security

strategy implementation risk control and response capabilities. Under the dual guarantee of technological innovation and

professional training the Company maintains the stable operation of the data security system providing strong support for the

sustainable development strategy.

41 42Protecting Data Ecosystem

Content compliance training Content ecological governance system

The Company always prioritizes content development as the core focus. While strictly adhering to relevant laws regulations

and moral norms related to online and digital publishing the Company continues to conduct various content compliance training The Company has established an information content security management

programs to comprehensively enhance the compliance and responsibility awareness among all employees. Building on its efforts Top-level design group led directly by the General Manager’s Office coordinating work across

to strengthen the dedicated publishing editorial team the Company has further extended the editorial capability development and team development various products and technical departments to improve the top-level design of the

system to product R&D marketing promotion and user operations and intensified training and compliance publicity. To ensure Company’s compliance system.thorough content compliance review the Company assigns specialized personnel to oversee the entire process from project

initiation to game publishing and stipulates content review responsibilities at every stage so as to ensure that all publications

fully comply with legal and regulatory requirements. The Information Content Security Management Group promotes the establishment

of various work norms and internal systems such as the Administrative Measures

for the Information Security Assessment of New Internet Technology and Business

Compliance testing and management Standardized the Measures for the Operation of Strategies for the Hierarchical and Categorized

content governance

system Management of the Ecological Governance of Network Information Content the

Self-review System for Game Operating Content the Self-review System for Online

The Company has established a robust compliance testing process for game products ensuring that all products Editing Content the Follow-up Comment and Content Ecological Management

and their updated versions undergo multiple compliance reviews before official release. These reviews cover key System to strengthen internal constraints.areas such as content compliance privacy compliance data security and information security. A strict acceptance

mechanism is enforced to ensure that all products meet relevant laws regulations and industry standards. For websites

forums and advertising content the Company strictly adheres to advertising regulations formulates internal compliance policies The construction of content security platform tools is continuously being enhanced.and implements a multi-level review mechanism to ensure advertising’s compliance with laws and regulations. The Company Currently the image recognition systems have been implemented across relevant

explicitly prohibits or strictly limits advertisements related to tobacco alcohol weapons and gambling while enhancing controls business areas of the Company. Simultaneously internal early warning and

over content involving violence discrimination cultural sensitivities misinformation children’s rights and public safety and Special promotion relevant tools shall be prepared in advance. The Company has set up special

health. These measures ensure that our advertising content aligns with regulatory requirements and social responsibility and optimization of emergency response personnel to be on duty around the clock to respond to various

standards. tool construction emergencies improve the emergency response capacity of the Company carry out

special resumption optimization on a regular basis and further build a firewall for the

information security of the platform.Governance of game content ecosystem

The Company strictly adheres to the Cybersecurity Law of the People’s Republic of China Law of the People’s Republic of Protection of minors

China on the Protection of Minors the Law of the People’s Republic of China on the Protection of Personal Information the

Administrative Measures for Internet Information Services the Provisions on Ecological Governance of Network Information

Content and other applicable laws and regulations. The Company has established a governance system for game content Minors represent the future of the country. The Company proactively aligns

ecology and security enhancing regulatory processes standardizing security platform development and improving platform with the policies and initiatives of the state regarding the protection of minors

coordination efficiency and risk prevention capabilities. continuously working to create a clean and safe cyberspace. Safeguarding

To reinforce security measures and prevent undesirable content the Company has established multiple complaint and reporting the physical and mental well-being of minors is considered an indispensable

channels including in-game customer service a player service public account complaint mailbox complaint website and player responsibility of the Company. The Company rigorously adheres to the

service hotline. Simultaneously various methods such as content security platform audit and manual reviews are employed. requirements outlined in the Law of the People’s Republic of China on

Through the implementation of dynamic management the Company aims to create a clean online environment. the Protection of Minors Cybersecurity Law of the People’s Republic of

China Regulations on Network Protection of Minors the Guidelines for the

Construction of Juvenile Modes of Mobile Internet the Notice on Preventing

Minors from Indulging in Online Games and the Notice of the State

Administration of Press and Publication on Further Strict Management and

Effective Prevention of Minors from Indulging in Online Games Opinions of

the State Council Leading Group for the Protection of Minors on Strengthening

the Protection of Minors and other laws regulations and relevant standards.Comprehensive and in-depth efforts are made to enhance the protection

of minors by strictly implementing requirements such as real-name

authentication and addiction prevention. The Company consistently

enhances age-appropriate notifications and content restrictions for

games continually optimizes workflows and protective measures and

advances the implementation of a dynamic inspection mechanism.

43 44Protecting Data Ecosystem

Enhancing the protection mechanism for minors in online games Clear channels for minor complaints and reports

The Company takes proactive steps to establish and continuously refine the protection mechanism for minors in The Company consistently intensifies efforts in safeguarding minors further

online games improving the efficiency of both machine and manual identification. Strict measures are implemented refining the development of user service areas and the mechanisms for

to address issues such as online bullying and internet addiction preventing the dissemination of content that may complaints and reports. Dedicated channels have been established to facilitate

be harmful to the physical and mental well-being of minors including vulgar and violent material. The Company fully minors’ complaints and reports. The Company has made public a specific

implements the regulatory requirements outlines in the Regulations on Network Protection of Minors and the Guidelines for the email address for complaints and reports related to minors (gmweicn@leiting.Construction of Juvenile Modes of Mobile Internet. Besides the Company systematically reviews and optimizes the internal com) on the game website. Additionally a designated “Reports Involvingminor protection framework with responsibilities further clarified to ensure the effective implementation of all protective Minors” page/menu option has been set up on the official account of the

measures. Leiting Game Service Center on WeChat. This underscores our unwavering

commitment to a “zero-tolerance” stance against issues that compromise

This year to strengthen the governance of online environment for minors the Company has made continuous efforts to optimize the legitimate rights and interests of minors. Concurrently we proactively

the protection processes and improve their effectiveness. The Company has advanced a dynamic inspection mechanism and adjust our focus on the protection of minors based on their gaming activities

reinforced safety management for in-game social interactions ensuring a clean and healthy social space in games. Additionally implementing relevant measures promptly.during key periods such as student vacations the Company has carried out 6 special campaigns to combat improper

online language illegal external links to unlawful information and grandstanding behaviors of online content creators.The Company has also refined content management requirements within communities and groups for minors enhancing ● Rigorously handle statements that violate regulations or are

content oversight to foster a safer and healthier cyberspace. detrimental to minors;

● Enforce strict limitations on minors using adult identities to participate

Optimize the real-name authentication and anti- in games analyzing assessing and addressing suspected minor

addiction system of the operation platform accounts through various channels;

● Continuously update and iterate rules for handling minor incidents. Guidelines for minors-related reporting on

the official website of Leiting Games

Case “E-Protection for Minors: Building a Safer Digital Future” initiative by Cyberspace Administration of ShenzhenIn November 2024 the Company was invited to participate in the “E-Protection for Minors: Building a Safer DigitalConsolidate minors- Improve age-appropriate Future” - the 2024 Fair on Online Protection for Minors in Shenzhen jointly organized by Cyberspace Administration

related complaint and notifications and game of Shenzhen Shenzhen Women’s Federation and Shenzhen Commission of Spiritual Civilization.reporting channel Schematic Diagram content restrictions

of the Protection descriptions At the conference on the sharing of protection achievements the Company as a corporate representative delivered

System of Minors a speech introducing the minors protection framework and related public welfare initiatives which was recognized by

on the Leiting Cyberspace Administration of Shenzhen.Games Platform

Further upgrade parent Improve the ecosystem

guardian platform governance capacity of the

online information content

Enhancing the parental guardian platform

The Company continues to enhance development of the parental guardian platform ensuring the supervision of minors’ game

behavior. Upon linking a minor’s game account parents will receive real-time SMS notifications for the minor’s logins and in-

game transactions. Additionally they can easily enforce restrictions on the minor’s account preventing gameplay and restricting

top-up activities. Simultaneously the Company is refining the customer service infrastructure addressing parental inquiries

promptly. This initiative aims to acquaint parents with the platform’s operational procedures and assist them in configuring the The 2024 Fair on Online Protection for Minors in Shenzhen Letter of appreciation from Cyberspace

minor mode across various mobile devices fostering the healthy growth of minors. Administration of Shenzhen

45 46Talent Sustainability Development

Talent development strategy Protection of employee rights and interests

G-bits has always believed that talents are fundamental for corporate sustainable development. The Company in the context At G-bits we strictly comply with the laws and regulations and international practices such as the International Labor

of industry trends and business needs formulates talent development directions and plans based on talent gaps Conventions the Labor Law of the People's Republic of China and the Labor Contract Law of the People's Republic of China. To

demand surveys talent assessment and the status of core talent reserves. This strategic approach ensures a rich pool of protect the legitimate rights and interests of employees we also adopt a robust talent management system that aligns with our

talent resources meeting the sustained development needs of the Company. sustainable development goals.The Company follows a strategy-driven talent recruitment model. We accurately recruit and select high-potential professionals

aligned with the business development plan. This ensures a strong fit between employee capabilities and business demands.Meanwhile we continue to optimize the talent structure strengthen team diversity and collaboration and promote innovation

across the organization. By setting up global recruitment channels we attract excellent individuals from all over the Fair recruitment

world so as to support the Company’s development strategy of globalization. To enhance operational efficiency and

unlock employees’ potential the Company assigns employees appropriate roles and responsibilities based on their strengths

The Company consistently upholds the principle of fair and just employment when recruiting talent. In particular the Company

and development needs. We have fostered a fair inclusive and growth-oriented workplace so that each employee can give full

does not tolerate any form of discrimination in employment and is committed to creating an inclusive and fair workplace for

play to his or her professional value.employees regardless of gender nationality age race ethnicity religion sexual orientation family status and disability.Employee development is a key priority and we tailor training programs for employees at different departments and with

To eliminate all forms of child labor and forced labor we strictly abide by the Law of the People's Republic of China on the

different professional backgrounds considering the characteristics of various businesses and projects. These multidimensional

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

training initiatives aim to support business breakthroughs in team management capability enhancement and creative mindset

formulated internal management policies such as the Management Measures for Labor Contracts. All employees are employed

development. The Company has established a highly competitive compensation system promoted a bottom-up R&D approach

voluntarily and of their own free will as the Company enters into employment contracts with them on an equal and voluntary

and implemented open competition mechanism for key positions a talent rotation mechanism and diverse incentive plans.basis. During the Reporting Period the Company had no labor disputes.These measures offer outstanding talents more opportunities for development contributing to the overall dynamism of the

organization. Moreover the Company conducts regular employee satisfaction surveys thus accurately identifying key factors Through various recruitment channels we strive to build a stage for the excellent players in the industry to bring out their

that affect employee experience through data analysis and developing targeted improvement plans. In addition we carry out talents. The Company has formulated internal management policies such as the Passing a Probation Period and Management

diversified cultural building activities to strengthen collaboration and cohesion across teams. These efforts provide employees Measures. During the recruitment we follow the principle of "internal candidates first open and fair recruitment merit-

with a more positive and healthier working environment. based selection" and develop a specialized recruitment assessment tool. Excellent candidates who are in concert with the

Company's philosophy are selected by interviews and written examinations. If there is any conflict of interest (such as family

ties or a referral relationship) between the interviewee and the interviewer the interviewer will not be involved in any part of the

interview. This ensures fairness and transparency during recruitment and employment.Employee remuneration performance and feedback

Strictly abiding by laws and regulations such as the Labor Contract Law of the People’s Republic of China the Provisional

Regulations on Salary Payment the Regulations on Public Holidays for National Annual Festivals and Memorial Days and the

Regulations on Paid Annual Leave for Employees G-bits has formulated internal policies such as the Management Measures

for Salary and Benefit to establish a market-competitive remuneration package for employees. During the Reporting Period the

Company fulfilled its obligation to pay salaries on time and in full and made required contributions to social insurance and the

housing provident fund including pension insurance medical insurance work injury insurance unemployment insurance and

maternity insurance providing employees with a comprehensive social security system.The Company has developed a remuneration package consisting of basic salary performance-based compensation

bonus subsidy benefit and others. Moreover we adopt a multi-dimensional evaluation framework for employees’

performance. In response to different business needs the Company implements a mechanism combining quarterly and

monthly appraisals. During each appraisal cycle supervisors set targets with employees and provide coaching in daily work.In the performance evaluation stage employees conduct self-assessments before the supervisor provides a comprehensive

evaluation considering the self-assessment and offers feedback through interviews and other channels. If employees have

concerns about their performance evaluation results they can file an anonymous complaint through the designated channel.HR and the supervisor will conduct a further assessment to ensure fairness and protect employees' privacy. In addition the

Company requires supervisors to formally communicate with employees on performance at least once a quarter. During the

communication supervisors should recognize employees’ contributions clarify directions of improvement and help them make

career progress.

49 50Talent Sustainability Development

Contributing to diversity and equality

The Company strives to create a diversified equitable and inclusive workplace. We abide by the Law of the People's 31.30% 48.42% 14.93%

Republic of China on the Protection of Women's Rights and Interests and other laws and regulations. We guarantee 69.38%

equal pay for equal work and ensure equal opportunities in recruitment payment and promotion.We respect and safeguard the basic rights of all employees by banning human trafficking forced labor and child labor. We

ensure that all employees are free from any form of discrimination harassment or unequal treatment due to race gender 15.69%

religion age health condition political opinion and other factors as required by applicable regulations. At the same time the By gender By age group By academic qualification

Company requires suppliers and partners to follow the same standards and work together to maintain a working environment

that is fair legal and respectful of human rights. 68.70%

51.58%

Anti-discrimination and

anti-unfair competition The Company adopts a zero-tolerance policy toward any form of

discrimination and unfair competition. G-bits is committed to fostering a

safe equal and diversified working environment for all employees. Male Under 30 Master's degree and above

Female 30-50 Bachelor's degree

Junior college degree and below

Anti-harassment The Company maintains a zero-tolerance policy towards workplace

harassment in any form including but not limited to offenses abuse

gender-based or race-based disparagement and sexual harassment.

37.05% 0.62% 0.34% Female in positions

28.13%

The Company continues to advance the strategy of diversified talents. We attract and cultivate excellent individuals with different 26.49% 25.62%

backgrounds and professional specialties promote the exchange of diverse minds and inspire innovation so as to fuel the

Company’s sustainable development. Furthermore the Company has established smooth communication channels to ensure By

employees’ free expression of their demands. In case of unfair treatment or inappropriate behaviors employees can file a By geographical 16.44%professionals

complaint anonymously through the complaint channel. The Company will assess and address the complaint in a fair manner to region

protect employees’ rights and interests. 62.95% 8.07%

99.04%

R&D personnel The Chinese Mainland In all management positions

Non-R&D personnel Hong Kong Macao and In junior management8 positions

Taiwan regions of China In senior management9 positions

Overseas In revenue-generating management

positions

In STEM10-related positions

8 Junior management refers to supervisors and equivalent-level personnel responsible for management duties within various business lines of the Company.

9 Senior management refers to department managers and above including division heads.

10 STEM is an acronym for Science Technology Engineering and Mathematics representing the fields of education and career development in these four

disciplines.

51 52Talent Sustainability Development

Maintenance of smooth communication channels Employee welfare

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

opinions and suggestions at any time which will be followed up and resolved by the human resources and corporate culture We provide all employees with benefits and care in respect of health life and financial support to help them better maintain work-

management personnel in time. In addition the Company conducts an annual 180-degree assessment for employees. life balance. We accompany employees and their families through different stages of life continuously enhancing employees’

Evaluation and feedback on the management personnel are collected from their direct superiors and subordinates and then sense of happiness fulfillment and belonging.passed on to the evaluated management personnel to help them enhance their management skills.Meanwhile the Company actively fulfills its social responsibilities by continuously promoting employment and creating flexible

job opportunities providing stable career development prospects for different job seekers. During the Reporting Period the

“Founder Meetup” events Company mainly offered flexible jobs to outsourced personnel and provided them with basic benefits.All employees can ask questions provide opinions or make suggestions

at any time. After collecting and summarizing the questions the Company G-bits welfare

organizes a “Founder Meetup” event every two or three months in which

the Company founder responds to each question. During the Reporting held a total of

Period the Company held a total of 5 “Founder Meetup” activities with 334 334“Founderquestions collected and addressed. 5 questionsMeetup” activities collected and

addressed Marriage and

"Little G Listening" cultural interview activities Onboarding Daily life Housing Growth ChildbearingThe Company regularly invites employees to participate in “Little G ● Off-site onboarding ● Monthly funding ● Housing subsidies ● Internal training ● Wedding giftListening” interview activities. By listening to the employees’ voices transition hotel for departmental ● Interest-free house sharing ● Maternity gift

the Company understands their opinions and concerns and strives to conducted a total of with ● Insurance and activities purchase loan for ● External training ● K indergarten

develop an open and free culture for employees. We adopt the “active 5 housing fund ● Monthly film viewing five years funds (private) tuition + passive” approach to build a communication platform through multiple batches of ● Supplementary activities subsidies

channels at different levels and in all aspects encouraging employees to ● “Little G Listening” 50 commercial Company canteen ● Paternity /maternity

communicate sincerely with the Company and to put forward reasonable insurancecultural interviews participants ● Shuttle buses leave

suggestions for the Company's management and development. During ● Gymnasium ● Parental leavethe Reporting Period the Company conducted a total of 5 batches of “Little ● Festival gift ● Breastfeeding leaveG Listening” cultural interviews with 50 participants. ● Paid annual leave ● S upplementary

● A nnual medical commercial

examination insurance for

Corporate culture group meetings organized a total of with employee's children

corporate

The Company regularly holds group meetings to convey the connotation 5 103

of corporate culture and help employees have a clearer understanding of culture group participants Safeguarding employees’ health

the values of the corporate culture through the display and discussion of meetings

typical cases. During the Reporting Period the Company organized a total

of 5 corporate culture group meetings with 103 participants.We are committed to safeguarding the physical and mental well-being of our employees. Specifically we implement a range of

health management and protection initiatives including medical examinations mental health courses sports support healthy

Employee satisfaction survey diet and flexible work arrangements.In 2024 the Company worked with external research institutions to conduct a comprehensive survey on

employee satisfaction for all staff members aiming to thoroughly assess employee experience and organizational

management effectiveness. The survey covers five dimensions of development direction leadership corporate This year we invested RMB covering

culture job content and rewards reflecting employees' recognition of the Company's overall environment. The

Company has developed and implemented a series of targeted improvement measures for the dimensions with the thousand in work injury insurance of our employees

lower scores in the survey. These measures not only optimize organizational management but also continuously 901.2 100%

enhance the employee experience further strengthening team cohesion and business competitiveness.

53 54Talent Sustainability Development

Annual health check-ups for employees Employee fitness support

We provide all regular employees with a comprehensive medical examination each year and regularly invite doctors to the The Company actively promotes a healthy lifestyle. Through Sports Month activities such as fun sports events men’s 3x3

Company to offer personalized one-on-one report interpretations ensuring that employees are fully informed about their health. basketball tournaments football matches and badminton competitions we not only enhance employees’ physical fitness but

also foster greater teamwork and coordination. This further ignites employees’ enthusiasm and creativity at work infusing the

Company with vitality for sustainable development. The Company has set up sports and fitness clubs at Xiamen and Guangzhou

Employee mental health support offices equipped with a variety of professional fitness equipment. At the Shenzhen Office the Company collaborates with

the gym within the building where employees can experience training on fitness equipment take group classes and receive

guidance from professional trainers.The Company has established the “G-Healing” platform for

psychological counseling which offers mental health courses

group therapy sessions and workplace skills enhancement.This initiative helps employees reduce psychological stress and

emotional burdens they encounter in their daily work. Additionally

the Company has partnered with external organizations to offer

one-on-one psychological counseling to all regular employees

with confidentiality strictly maintained throughout the process

to alleviate any concerns employees may have. In 2024 the

Company provided a total of 399 hours of one-on-one

counseling services.Group counseling activities

"Correct Understanding of Counseling"

"Dealing with Stressful Communication with Leaders: "Fear of Making Mistakes Increases the Likelihood of

Identifying the Sources of Pressure" Errors Overcoming Fear for Improved Performance"

"How to Quickly Integrate into the Workplace After "How to Break Through the Confusion of Career

Recruited From the Campus" Development"

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

"Get These Communication Skills to Communicate Efficiently without Meeting Difficulties"

"A Correct Understanding of Procrastination" "Correct Understanding of Social Phobia and How to Break Through"

"Correct Understanding of Vacation Syndrome" "Insomnia Treatment"

"Positive Thought Meditation - Explore Yourself in Positive

Thoughts Relax and Relieve Stress" "Methods of Emotion Regulation"

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

"The Difference Between Depressed Mood and Depression" Sports Month group activities

"How to Recognize and Adjust to Emotional Strengths" "How to Handle Intimate Relationships"

"Attachment Types and Intimate Relationships" "Communication in Intimate Relationships"

Online mental health courses

5556

Online Mental Health Courses

Interpersonal

Relationship Self-Regulation and Stress Relief Career Development and

Management GrowthTalent Sustainability Development

Employee health and nutrition assurance Enriching leisure activities

We place a significant emphasis on the daily diet of our employees. The Company provides customized healthy meals to ensure The Company practices humanistic care and consistently creates a heart-warming environment for employees. The Company

that employees enjoy fresh and safe dishes. In addition we ensure clean and hygienic tableware by sterilizing the tableware in pays close attention to employees’ needs innovates and improves the way of showing care. We organize diversified activities to

time and regularly sending the tableware used by employees to third-party institutions for testing. ensure that each employee can feel a sense of achievement and care in the Company.The Company conducts collective movie watching activities every month inviting employees and their family members to

Promotion and dissemination of health knowledge among employees watch movies so as to help employees relieve work pressure. The Company regularly organizes e-sports competitions to enrich

the spare time life of employees while providing a platform for teamwork and competition exchanges further enhancing team

We prioritize the promotion and dissemination of health knowledge conveying health concepts through various channels. This cohesion.year we organized health lectures on topics such as women’s health and scientific fitness. Employees improved their In addition the Company periodically organizes team building events for all employees. This year we hosted a family open

health protection awareness through the health lectures. They also received practical health instructions to maintain a good day inviting employees’ family members to visit the Company enjoy lunch together and participate in on-site interactive games

lifestyle and work status. Moreover we share health information with employees through internal communication channels and which deepened the understanding of employees’ family members about the Company and enhanced the sense of belonging of

social platforms including practical suggestions on nutrition sports and mental health. We are paying increasing attention to the Company’s employees.employees’ health to help them better manage their personal health and improve the quality of work and life.Flexible work arrangements for employees

In response to extreme weather conditions such as typhoons and rainstorms G-bits takes into full consideration the safety of its

employees’ commutes. The Company has adopted a flexible working approach allowing employees to choose between working

in the office or remotely based on real-time conditions. Additionally the Company advocates flexible working hours enabling

certain staff members to autonomously arrange their work hours according to their specific job requirements.Creating a safe work environment

Family open day event

We always prioritize employee safety. Accordingly we conduct risk management in areas such as the working environment

occupational health food and water safety mental health and safety emergencies. In this way we provide a safe and pleasant

office environment for all our employees.We equip all workplaces with automated external defibrillators (AEDs) and fire extinguishing equipment. In addition we conduct Talent incentive

regular first-aid training to enhance employees’ emergency response capabilities self-rescue and mutual rescue skills and

their ability to handle emergencies. During the Reporting Period we conducted two sessions of first-aid training and five

sessions of fire safety training. These training sessions covered topics such as first-aid theory the use of AEDs and To motivate employees and boost their creativity the Company has implemented several effective incentive mechanisms. In

bandaging skills with the aim of reinforcing employees’ first-aid knowledge. October 2020 we launched a stock option incentive plan granting 1.00% of the Company’s total share capital to employees.The incentive plan targets core technology and business employees representing 6.66% of the total workforce for that year. As

We also prioritize the physical health of our employees. We ensure proper control of lighting air quality and temperature in the of December 16 2024 the stock option incentive plan has expired. The Company will optimize the stock option incentive system

working environment. We conduct regular cleaning of air conditioning units and employ third-party testing services to ensure the based on future business development and talent incentive needs to promote the long-term common growth of employees and

quality of drinking water in the office. Prior to the opening of any new office formaldehyde testing is conducted to ensure a safe the Company.working environment. In addition each employee is equipped with an ergonomic office chair which effectively alleviates physical

fatigue caused by long hours of work and supports a healthy comfortable working posture. The performance of employees is evaluated on a regular basis and the high-performing employees will be provided with

material and moral incentives. The Company explores the growth cases of personnel at different levels for sharing and

strengthens the positive drivers of team growth.

57 58Talent Sustainability Development

Innovation in talent cultivation Job-specific development training

G-bits places significant emphasis on the development of each employee continually refining its training mechanisms. This The Company offers employees various types of job-

year the Company revised internal management policies such as the Training Management Measures standardizing the specific development training. Employees are provided with

compensation criteria for non-managerial training courses and encouraging more employees to proactively share their expertise. appropriate training and learning resources based on their

To meet the needs of overseas market expansion the Company has added detailed rules for overseas talent recommendation job responsibilities professional needs and preferences.in the Talent Recommendation Management Policy thereby enhancing its international talent management capabilities.Meanwhile the Company has optimized its training management system to better align with the Company’s long-term The Company organizes general skills training for employees

development goals. to help them acquire foundational skills and improve the

overall business skills of teams. Additionally we provide

The Company has launched diversified training programs to meet the training needs of different employees. We have different training in technology planning art and other aspects of

types of training for employees like professional competence training graduate training leadership training among others. Such game production. We also provide product launch support

training may take various forms such as a combination of “Internal + External” and “Online + Offline” courses. training to improve collaboration across product teams and

thus ensure that our product rollout is a market success.Job-specific development training

This year we kept enhancing our employees’ professional capabilities. We delivered AIGC training to all employees with a

This year we organized a total of with a total duration of total of 613 participants. Additionally we provided specialized user research training for employees in game production roles

including operations and R&D staff with a total of 509 participants. We also introduced a specialized data analysis training

94 employee training sessions 334 hours program for our operations staff which attracted 236 participants.

The cumulative number of participants reached covering

4927 100% of the employees achieving a total we provided specialized user data analysis training program for our participation of research training with a total of operations staff which attracted

613 individuals 509 participants 236 participants

Facilitate organizational growth

Empower business success

Game producer seminar Newly promoted manager Art department employee Operations management case training training study weekly seminar Graduate traineeship program

Game development sequence study map X-Fan er public Business-specific G-bits Q&A sharing training program Community Experience in R&D

Program Planning Planning Fan er data analysis Planning Valuable examples To assist fresh graduates recruited from campuses in assimilating into our corporate culture and swiftly adapting from student

of R&D experience

Junior Sequenced and targeted design Program Fan er user research Program life to the professional realm the Company has organized a series of centralized training sessions. The Company arranges

Employees Learning lecture covering middle Art Business Review “Skill Development” training for these fresh graduates involving diverse team activities to cultivate teamwork and foster team

and junior level employees Art Fan er marketing

Operation Meeting cohesion in a relaxed environment. Additionally mentors impart knowledge on the Company’s distinctive “MVP Approach” Mid-level Helping employees to improve

employees their professional competence Operation Fan er … Testing … in game development along with insights into business operations marketing strategies and product optimization through

conducting business-related training sessions. This facilitates a rapid establishment of a foundational understanding of the

Campus Recruits Social Recruits Company’s operations and the game industry.Skill Career Introduction to the Mini Game

development transition games industry development Processes/systems Corporate

Experience sharing Job

training lecture series competition series of lecture culture

session for employees

in the same position practicing Moreover the Company has invited game development mentors and experienced industry professionals to share their

professional and personal development experience and answer questions to help fresh graduates better adapt to the workplace.For new hires in positions related to game development the Company organized the “Mini Game Development Competition”

Knowledge Base: Help employees find what they need for work anytime and anywhere and view the experiences shared where mentors provide feedback on game demos developed during the training sessions. They also guide new recruits in

by various professionals overcoming challenges encountered during the game production process thus helping them form their own understanding of

game development. This year the Company organized specialized training for 78 fresh graduates and continuously monitored

G-bits Employee Training System the implementation of training outcomes at each stage.

5960

All G-bits G-bits Professionals Manag-

Employees Recruits ementTalent Sustainability Development

Leadership development training Supporting employee development

The Company is dedicated to supporting the long-term development and enhancing the leadership capabilities of its

employees consistently providing diverse leadership development training and networking opportunities for individuals at The Company prioritizes the long-term development and career planning of its employees. Through continuously improving

various management levels. These initiatives aim to deepen their understanding of the market and products. Considering talent its internal promotion management system and optimizing talent pipeline planning we are dedicated to establishing an

assessments the Company conducts a series of training sessions to empower management talents at every tier. equitable and robust framework for career advancement. Our goal is to empower every team member to achieve a sense of

accomplishment and self-worth within the Company.Leadership development training for newly promoted management personnel

Supporting the career development of newly promoted Employee promotion system

management personnel is a key priority. In this regard we

have conducted a series of centralized training sessions to

help them better adapt to job changes and acquire essential Employees are fundamental to the sustainable development

management skills. We provide training on a wide range of of a company which is why we attach great importance to thetopics for newly promoted management personnel. “Management training and development of employees. The Company hasRole Awareness Training” helps them develop their leadership Authority Senior established a dual-path promotion mechanism of “Technology managementstyles and explore their leadership potential. “Talent Identification Leadership development training for newly + Management” to better meet the career development needs ofTraining” helps them improve their ability to discover and develop promoted management personnel employees. Expert

talent in the team thereby allocating team resources more effectively. “Performance Management Training” helps them Middledevelop scientific and effective approaches to performance management thereby improving team productivity. “Team Employees can choose the promotion path based on their own managementCollaboration and Communication Training” which teaches them how to establish efficient communication channels aspirations and professional expertise. They can develop along Technical

helps them build teams where everyone gets along. This year the Company carried out a total of four management backbonethe technology development path into technology backbones

training sessions for newly promoted management personnel with a total duration of 38 hours. company experts and authoritative experts in the industry or

along the management development path into middle and senior Entry-level Junior management

Game producer training management. Additionally the Company’s promotion system offers flexibility allowing employees to explore diverse career paths. Professional Management

Employees can either follow a single clear path for progressive development pathway development pathway

The Company invites experts from external professional organizations such as Mercer Ram Charan's global partners development or shift paths based on personal interests and career

Qingyeteng Coaching Center's partners and renowned external coaches to conduct seminar-style training sessions. aspirations enabling them to broaden their career horizons. G-bits employee promotion system

This year the Company organized one systematic training session and four seminars for game producers.Through leadership training team coaching individual coaching and business reviews the Company provided targeted This year the Company diligently refined the job leveling benchmarks for a range of positions. This initiative aims to ensure the

guidance on key issues related to specific projects. This approach aims to foster collaboration and growth between benchmarks are aligned with both our business goals and the career ambitions of our staff thereby enhancing the motivational

the producers and core team members. Additionally the Company invited distinguished game producers from outside effect of the job leveling system on the workforce. With our promotion mechanism our employees’ abilities are enhanced in a

to share their experiences in game production on topics such as overseas markets and user insights and game more targeted and clearer manner while their growth and contribution can be clearly reflected through the job leveling system.development. This initiative aims to help the R&D team gain a deeper understanding of market trends and directions for

product innovation.Support for employee upskilling

G-bits places great emphasis on employee development and is committed to providing a supportive learning environment

encouraging employees to continuously enhance their skills. To this end we have clearly stated in the Training Management

In-depth project reviews with industry professionals “Supplementary Management Skills” training for producers Policy that we offer financial support to all regular employees for obtaining professional qualifications.Key performance indicators relating to G-bits employee training in 2024 The level of financial support varies depending on the type of qualification. The Company fully covers education cost for

employees pursuing a professional qualification in publishing the qualification of Certified Public Accountant (CPA) or other

Average hours of training per FTE1112 Average costs of training per FTE1112 qualifications required by the Company. For Project Management Professional (PMP) certification International Coaching

Federation (ICF) certification and other industry- or role-related but non-mandatory qualifications the Company covers 50% of

0.23 hours 0.8 thousand the costs. In addition the Company may provide subsidies for employees who participate in relevant training but fail to obtain official certificates subject to evaluation of their learning outcomes.

11 FTE (Full-Time Equivalent) is a standardized metric used to measure the workload of full-time and part-time employees in an organization.

12 This year the Company used the average total number of employees at the beginning and end of the year to measure average hours and average costs

of training per FTE.

61 62Green Operations

Response to climate change We will conduct climate change-related training for employess continue exploring effective measures to reduce carbon emissions and optimize operational energy efficiency.The Company is continually refining its governance framework to guarantee the realization of its emission reduction goals.Additionally we have identified climate change risks and opportunities assessed their potential impact on our business and

We closely monitor the impacts of climate change including global warming and extreme weather events on the worldwide implemented appropriate measures to promote the smooth progress of our climate change management efforts. To encourage

ecosystem and our business operations and we proactively commit to combating climate change. We also identify assess members of the ESG Working Group to advance the Company’s climate initiatives the Strategy Committee has established

and respond to the impacts of climate change risks and opportunities on our businesses and formulate mitigation and a monitoring system. This system evaluates the performance and work progress of the ESG Working Group members by

adaptation strategies that are scientifically sound and pragmatic. assessing their effectiveness in achieving climate goals managing climate change risks and conducting relevant evaluations.Development of climate change management system Management of climate change risks and opportunities

The Strategy Committee of the Company's Board of Directors has ultimate responsibility for climate change-related matters. It

is responsible for reviewing climate-related strategic planning assessing risks and opportunities and overseeing the progress G-bits identifies and evaluates the impacts risks and opportunities related to climate change in line with its corporate strategy

of related initiatives. The ESG Working Group is responsible for coordinating the execution of climate-related matters including business model and the broader market environment. The Company assesses the impacts of rising energy costs resource

formulating work plans driving relevant departments to implement specific actions and regularly reporting progress to the Board shortages and other factors on its business operations. On this basis we assess the likelihood magnitude and impact of

Strategy Committee. sustainability-related risks and opportunities and prioritize climate change risks and opportunities according to their potential

impact and likelihood. High-priority risk is classified as a risk or opportunity with a high level of impact and a high likelihood of

occurrence; medium-priority risk is classified as a risk or opportunity with a medium level of impact and a medium likelihood of

The Company has put in place a systematic reporting system for

Strategy Committee of the Board occurrence; low-priority risk is classified as a risk or opportunity with a low level of impact and a low likelihood of occurrence.climate change to ensure the transparent management of climate-

related initiatives. The ESG Working Group regularly briefs the of Directors

Strategy Committee of the Board of Directors on the Company’s

climate change strategies evaluations of risks and opportunities

and progress towards the objectives. The Strategy Committee

regularly updates the Board on climate change-related matters

through regular meetings. This ensures that the Board of Directors

has timely access to insights on how climate change is affecting

the Company's sustainability including associated risks and ESG Working Group

opportunities.The Company invites external experts and industry associations Climate change management structure of G-bits

each year to conduct climate-related training sessions for relevant

management personnel. This ensures that they remain up-to-date

on the latest developments in climate change.In response to climate change risks and to capitalize on associated

opportunities we have established climate change-related goals

and priorities. This includes committing to reducing carbon

emissions and bolstering our capacity to adapt to climate change.

65 66Green Operations

The Company identifies the risks and opportunities related to climate change. In assessing climate resilience the Company

weighs factors including socioeconomic uncertainties and the irregularity of extreme weather events. The Company has Practicing green operation

thoroughly examined the enhanced strategies and business models necessary for adapting to climate change from the short-

medium- and long-term perspectives. The details are as follows: G-bits focuses on environmental compliance management and carries the green and low-carbon philosophy into the daily

operations. In strict compliance with the Environmental Protection Law of People’s Republic of China the Law of the People’s

Priority

Risk type Identification and assessment Time Republic of China on the Prevention and Control of Water Pollution the Energy Conservation Law of the People’s Republic horizon of risks/ Responses and transition planopportunities of China the Law of the People’s Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste

The state is continuously and other relevant laws and regulations the Company utilizes energy water and other resources intensively and efficiently

introducing policies related

to environmental protection. ● Follow the trend of policies and laws and regulations

to strengthen the conservation management in resource usage. We are committed to protecting the ecological environment

Regulators are requiring companies Short-term in the operation areas and continuously optimize the preserving biodiversity and developing the circular economy to promote the reduction reuse and recycling of resources. In the

Transition Policy to enhance their disclosure of

(1 year) development of climate change management system;

Medium- to High future we will continue to conduct trainings on green operations management continuously enhancing employees' awareness

risks risks sustainability information including ● Engage professional consulting firms to interpret climate change and improve long-term policies and provide guidance on disclosure thus of energy conservation water conservation and resource recycling.their capacity for sustainability (2-5 years) improving the quality of climate change information

management. This may lead to disclosure.higher compliance costs for the Reducing energy consumption

Company.We regularly conduct energy conservation promotion among employees and actively purchase energy-efficient

● Pay close attention to the early warning of extreme

weather events formulate the Typhoon Emergency equipment to reduce energy consumption in the operation.Plan and other safety-related plans and equip all

workplaces with anti-typhoon and flood control facilities

Extreme weather such as typhoons and equipment to minimize the Company’s risk of fixed Energy conservation awareness

Short-term Energy-saving inspectionsdroughts floods temperature Medium asset damage;

Acute extremes caused by climate (1 year) ● Establish mechanisms for rapid and effective disaster campaigns

risk change may threaten our normal Medium- to relief rescue and emergency response. Organize all The Company designates dedicated personnel to conduct operation resulting in higher long-term

energy consumption and operating employees to conduct fire drills typhoon emergency (2-5 years) regular inspections in office areas and promptly turn off

expenses. drills and other activities organized by the Company.We closely monitor electricity consumption data and

Engage external professional institutions to assist the employees’ energy usage behaviors posting electricity- air conditioners and lights in unoccupied office areas. We

Company in on-site safety management and safety

record management at least once a year in an effort to saving reminders around electrical equipment. This year advocate reducing the use of lighting in public access areas

ensure the safety of people and IT infrastructures and we conducted a series of awareness campaigns on topic during non-office hours to minimize unnecessary energy Physical minimize the losses caused by accidents.risks such as “Office Energy Conservation” “Earth Hour” “Zero consumption.Carbon Action: Together We Make It Happen” “Green andEnvironmentally Friendly Low-Carbon and Energy-Saving Promoting green procurement

Rising sea levels could result in

the inundation of our office spaces ● Regularly inspect the use of equipment and deployActions” and other topics. Through email notifications image

in coastal zones like Xiamen and and maintain facilities to grapple with extreme weather displays and other means we actively guide our employees The company actively purchases green electronic equipment.Shenzhen potentially flooding our such as backup power supply; to integrate the concept of environmental protection into their Specific usage requirements are set for the Company's

office buildings IT equipment and

Chronic Medium- to ● other fixed assets. This situation Increase the proportion of cloud services and protect long-term Low important data through off-site backup and cross- daily work and life. air-conditioning lighting and other electrical equipment. risk may necessitate repairs to the (2-5 years)

office building structures as well device backup; In addition we prioritize third-party cloud servers with low

as the maintenance restoration Add flood control design of building structures such We utilize information technology to monitor the shutdown ● energy consumption and high energy efficiency.or substitution of our IT equipment as use of waterproof boxes barriers coating and other status of office computers regularly conducting data analysis

and other fixed assets which could means.in turn elevate our capital spending. to assess the impact of computer on/off times on energy We prioritize the purchase of office computers and monitors

consumption. We also promptly remind colleagues who have that meet Energy Star certification. When purchasing

not turned off their computers after work for a long period of furniture boards we prioritize profiles made from recycled

The Company will plan to increase the proportion of time to turn off their computers in a timely manner thus reduce wood that meet national environmental requirements. ●

renewable energy use if the purchase cost of energy- unnecessary energy consumption. Through technological innovation and resource integration

consuming equipment is controllable in the course of

operation. The Company has already transitioned its we are advancing green and low-carbon development. When

entire fleet of commuter vehicles to electric vehicles. Enhancing equipment energy efficiency purchasing paper products we prioritize office paper that is

The application of energy-saving Moving forward we will explore the possibility of

Energy measures/technologies enables deploying distributed energy projects and other initiatives certified by FSC

13 and PEFC14

Medium- to .Opportunities opportu- the Company to lower energy long-term to expand the use of renewable energy while also ramp The Company optimizes the layout of equipment in the server Medium

nity consumption in the course of (2-5 years) up our investment in the R&D of clean energy; room and elaborately arranges the servers and switches to operation thus reducing operating

expenses. ● The Company will further invest in upgrading servers ensure smooth airflow in cold and hot aisles thus significantly

and office equipment if the purchasing cost of green

electronic equipment is controllable. This includes improving cooling efficiency. With virtualization technology we

incorporating more energy-efficient hardware such as can create multiple virtual servers on a single physical server

high-efficiency CPUs and low-power graphics cards to 13

reduce energy consumption during equipment operation. to reduce the number of physical servers and unnecessary

FSC (Forest Stewardship Council) is an independent non-profit non-

governmental organization that promotes environmentally responsible

energy consumption for cooling. We also adopt smart socially beneficial and economically viable forest management

systems to alternate the operation of multiple air conditioners worldwide by establishing recognized principles and standards.

14

In response to the identified risks and opportunities the Company has initiated targeted transition strategies which include a precisely controlling the temperature and effectively reducing P EFC (Programme for the Endorsement of Forest Certification) is an

phased implementation of sophisticated energy management initiatives the development of climate-focused emergency plans unnecessary energy waste. international non-profit non-governmental organization dedicated to promoting sustainable forest management through independent third-

and a planned increase in the share of renewable energy usage. For details of the latest developments in the Company’s 2024 party certification.climate change transition plans please refer to the “Practicing green operation” section of this report. The Company further collaborates with cloud service providers

to explore energy-saving and emission-reduction solutions.

67 68Green Operations

Promoting a low-carbon office Ecosystems and biodiversity conservation

G-bits continually navigates the path to low-carbon office. In 2024 the Company optimized approval processes and promoted

the online approval platform. In doing so the Company approved a total of 462171 online applications covering 1059780 We organized various public welfare activities themed on environmental protection and conducted special publicity campaigns

individuals which effectively reduced paper consumption for approvals reimbursements and file management in daily on topics such as “World Oceans Day” encouraging employees to get involved. During the Company’s Philanthropy and

operations. We also encourage employees to communicate through online meeting platforms to minimize unnecessary energy Environmental Protection Festival this year we organized a beach cleanup near our Xiamen office where employees picked up

consumption and carbon emissions caused by offline meetings and employee travel. litter and cleaned the coastline. We integrate the concept of sustainability into our game platform raising player awareness of

the importance of ecosystem and biodiversity conservation.The Company actively adopts clean energy. We use electric vehicles to replace traditional fuel vehicles for employee shuttle

buses. In addition we dynamically adjust the capacity and frequency of the buses according to actual occupancy to further

improve energy efficiency. Case “Hello Yangtze Finless Porpoise!” – A Rare Animal Protection Initiative

Paying attention to biodiversity conservation G-bits actively participates in the protection of the Yangtze finless porpoise.Strengthening water resource management We raise public awareness and participation in finless porpoise protection through the influence of our game platform.In June 2024 G-bits partnered with the China Green Carbon Foundation to launch the “Protect the Yangtze FinlessPorpoise” public welfare campaign and donated RMB 200 thousand to the fund for the purchase of a brand-new patrol

G-bits attaches great importance to the efficient utilization of water. The Company has actively adopted a series of effective boat supporting the protection of the Yangtze finless porpoise in Poyang Lake Jiangxi. As of the end of the Reporting

water resource management measures. To further ensure the efficient use of water resources the Company has established a Period the funds and the patrol boat donated by the Company have effectively assisted the patrol team in protecting the

strict inspection system which requires regular inspection of sanitary ware and valves in areas such as restrooms and pantries. 1667 Yangtze finless porpoises in Poyang Lake.By doing so leaky water equipment can be found and repaired in time avoiding water resource waste.In addition we raise employees’ awareness of water conservation by conducting internal training and awareness campaigns to

encourage them to develop water-saving habits in their daily work.The wastewater generated by the Company is discharged into the municipal sewage network and is properly treated by relevant

departments in compliance with regulations. The Company faces no issues with water intake as it is primarily supplied by the

municipal government.Protecting the ecological environment

Certificate of honor from China Green Yacht donated by G-bits to Poyang Lake

Carbon Foundation to G-bits patrol team

G-bits optimizes its waste management based on its operational characteristics and makes every effort to reduce the negative

impact on the ecosystem during its operations and enhance ecosystem and biodiversity protection. During the Reporting Period The Company’s licensed games Funny Fighters: Battle Royale

there were no unexpected major environmental incidents in the places where the Company operates nor was the Company and Lost Castle carried out joint public welfare activities for

subject to criminal liability by ecological and environmental and other relevant authorities for environmental incidents. finless porpoise protection to enhance players’ understanding

of and concern for this rare animal and to convey the

importance of protecting the ecology to players. Players who

Waste management completed the in-game knowledge popularization activities

about finless porpoise could obtain prizes such as character

We implement refined waste management practices strictly controlling waste generation and ensuring that all types of non- skins inspired by the creature commemorative porpoise props

hazardous and hazardous waste can be properly disposed of. designed with China Green Carbon Foundation and the Green Poster of the Lost Castle for the public welfare joint

Watch Achievement Badge. activity of finless porpoise protection

We place sorting bins to encourage employees to classify non-hazardous waste. Sorted waste will be collected and handed over

to the municipal waste disposal departments by the property management for recycling and disposal. This year we launched The cumulative number of players participating in the porpoise The cumulative number of players

a special awareness campaign themed on “Sort Waste Protect Our Environment” to raise the awareness of our employees on protection public welfare campaign in the two games exceeded participating in the porpoise protection

waste classification. 440 thousand and more than 310 thousand players claimed public welfare campaign in the twothe highest task reward “China Green Carbon Foundation games exceededHazardous waste such as waste toner cartridges and ink cartridges generated by the Company’s office printing equipment are Cooperative Commemorative Porpoise Props”. This projectcollectively recycled by qualified recyclers. We engage third parties to properly dispose of our electronic waste such as scrapped was selected as one of the “2024 Typical Cases of Gamehard disks and electronic components through cooperating with professional electronic waste recycling suppliers. Public Welfare” by people.cn. 440 thousand

69 70Green Operations

Developing circular economy Case “Recycle for Green” Philanthropy and Environmental Protection Festival

G-bits actively advocates the circular economy concept through the implementation of measures such as promoting To demonstrate the philosophy of circular development and raise the awareness of environmental protection among

reusable tableware and reusing idle items. These initiatives aim to improve the efficiency of resource utilization the employees the Company held the “Recycle for Green” Philanthropy and Environmental Protection Festival in

minimize resource waste and achieve resource recycling. October 2024 inviting all employees to participate.The activities mainly include:

This year we implemented the following measures to support a circular economy:

A collection point for idle books was set up at the event to encourage employees to

Idle book donate their idle books at home. The collected books were donated to Lanyi Primary

recycling School in Zuoquan Township Liling City Hunan Province.Promoting reusable tableware Shared stationery

A swap area was set up where employees exchanged their idle items such as

electronic products clothes and handicrafts.Reusable melamine or stainless-steel tableware The Company encourages employees to use Used-items

is provided in the Company’s staff restaurants. shared stationery by setting up a public stationery Exchange To encourage employee participation the Company awarded the “Aurora” virtual

In 2024 the cumulative reuse of melamine and station effectively reducing duplicate purchases medals to all employees who completed all activities.stainless-steel tableware amounted to 412.9 and minimizing waste.thousand times.Environmental key performance indicators

Encouraging Double-Sided Printing

and Paper Reuse Repurposing idle items The Company’s GHG emissions and resource consumption during the Reporting Period are presented below:

The Company encourages employees to adopt The Company has repurposed idle furniture

double-sided printing and recycle used paper by carpets raised floors air conditioners access Indicator Unit 2024 2023 2022

using or pasting discarded paper for reimbursement control systems surveillance equipment and other

1516

forms and other purposes. facilities for new office locations. Indirect greenhouse gas emissions (Scope 2) Tonne 1643.46 2654.54 2235.42

Total electricity consumption in offices17 kWh 3833963.30 3427466.10 2800028.15

Energy consumption intensity18 kWh/person 2637.75 2537.92 2546.64

Total water consumption in offices19 Tonne 29106.73 17545.44 20785.68

1819

This year the Company took the following measures to accelerate waste recycling: Water consumption intensity Tonne/person 20.03 12.99 18.90

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

16 G reenhouse gas emissions include carbon dioxide methane and nitrous oxide calculated in carbon dioxide equivalent. Starting from 2024 greenhouse

gas emissions calculated based on the 2022 Electricity Carbon Emission Factors issued by the Ministry of Ecological Environment of the People’s

Organize regular in-house sales of idle Set up a free-sharing area where excess Republic of China.furniture to provide benefits for employees goods/food are shared among employees 17 T he current electricity consumption statistics include those of three office premises of the Company in Guangzhou Shenzhen and Xiamen. Among the

in need. to avoid waste. Company’s leased office premises in Shenzhen two are charged for air conditioning electricity at a fixed rate and cannot be separately metered while

the other allows for independent electricity measurement and has been included in the electricity consumption statistics. This year the increase in the

Company’s total office electricity consumption in offices was mainly due to the inclusion of a full year of data from the measurable leased office premise in

Establish the Company’s online group of Shenzhen for the first time.used-items trade to fully circulate and utilize 18 T his year the Company used the average total number of employees at the beginning and end of the year to measure energy intensity and water

idle goods. consumption intensity.

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

Guangzhou Shenzhen and Xiamen. As the tap water cost is included in the property fee the water consumption of the leased office premises in

Shenzhen cannot be separately measured and has been estimated based on the usage coefficients provided in the 2022 China Water Resources Bulletin

published by the Ministry of Water Resources of the People’s Republic of China. This year the increase in the Company's total water consumption in

offices was primarily due to the inclusion of estimated water consumption for certain leased offices in Shenzhen as part of improved statistical coverage.

72

71Undertaking Social Responsibility

Contributing to rural revitalization Case Supporting the growth of rural students - One-on-one educational support

G-bits recognizes the vital importance of rural revitalization For years the Company has consistently provided One-on-one financial support to primary and secondary school

to the sustainable development of society. We implement As of the end of the Reporting Period the students who demonstrate strong academic performance but come from financially disadvantaged families helping

the rural vitalization strategy supporting rural revitalization Company had invested a total of RMB them complete their studies. As of the end of the Reporting Period the Company has cumulatively sponsored 9

and social development with concrete actions. With 998.5 thousand in the field of rural students from Fushun County and Rongxian County of Zigong City Sichuan Province. In 2024 we allocated funds multiple initiatives such as targeted scholarship one-on- for student aid primarily used for purchasing school supplies paying tuition fees and covering daily living expenses

one assistance education digitalization and infrastructure revitalization effectively alleviating the financial burden on the beneficiary families.improvement the Company provides rural students with

better learning environment and conditions enhancing benefiting nearly The Company arranges regular visits to track the students' learning and progress ensuring that the funds provided

public resources in rural areas. 51 thousand people are truly impactful. Through One-on-one support the Company has effectively fulfilled the social responsibility provided a better learning environment for rural students helped the sustainable development of rural education and

enhanced our positive impact on social welfare.Case Supporting rural education - Building a digital education environment

“Pomegranate Seed Project” student support event Case Supporting rural infrastructure construction - Street light donation

In response to the call from industry authorities we have taken

practical actions to support education. In June 2024 under the In September 2024 the Company donated 173 street lights worth a total of RMB 300 thousand to Fuquan Town

guidance of the China Audio-video and Digital Publishing Association Yantan District Zigong City Sichuan Province. The project has effectively improved local street lighting conditions

the “Pomegranate Seed Project” Public Welfare Donation Event was benefiting community residents in several villages. In response to the rural revitalization strategy the Company has

successfully held in Kashgar Xinjiang. The Company donated 69 made efforts in the balanced development of urban and rural infrastructures. Through this event the Company further

steel-wood doors and 4 Canon photocopiers to Qiaoda Township consolidated its brand image in the aspect of social responsibility.Primary School and Bashlak Village Primary School in Pishan County

Hotan Region Xinjiang Uygur Autonomous Region with a total

donation of RMB 98 thousand. These facilities provide a safer and

more comfortable learning and teaching environment for local teachersand students. Facilities donated during the “PomegranateSeed Project” student support event

Donation of teaching facilities

In October 2024 the Company donated 6 sets of multimedia teaching equipment valued at RMB 88.8 thousand

to 208 students across 6 classes of Kalong Township Primary School in Tibetan Autonomous Prefecture of Garzê

Sichuan Province. The donation effectively enhanced the digital teaching standard of the school providing students

with a better learning environment.Street lights donated to Fuquan Town Yantan District Zigong City Sichuan Province

Multimedia teaching equipment donated to Kalong Township Primary School in Tibetan Autonomous Prefecture of Garzê

Sichuan Province

Driven by our unwavering commitment to rural education the Company has fortified its reputation in corporate social

responsibility fostered stronger bonds with local communities and laid the foundation for future endeavors in rural

revitalization and educational welfare.

75 76Undertaking Social Responsibility

“Glimmering Light” lighting up the future Supporting children’s growth

G-bits remains steadfast in its founding mission actively participating in Case “Spring Bud Program” - Supporting children’s growth

public welfare to give back to the society within our capabilities. In 2024

the Company launched the “Glimmering Light Public Welfare Initiative” During the year the Company

a public welfare program that focuses on key areas such as children’s invested a total of RMB In 2024 the Company collaborated with the Beijing All in One Foundation to promote the girl protection project with

growth and education ecological environment protection and inheritance a total investment of RMB 88.8 thousand. The project reached 75 primary schools in Henan Shandong Shaanxi

of intangible cultural heritage to foster the sustainable development million Guangdong Guizhou and Xinjiang and established the “Spring Bud Program” with Girl Protection courses. As of the

of society. We provide practical support to the vulnerable groups in 1.09 end of the Reporting Period a total of 618 courses had been delivered benefiting 29353 students. The Company

the society. On this basis we proactively promote the construction of in public welfare remains committed to children’s well-being and together with the Foundation we provided systematic sex education

corporate culture of public welfare continuously expanding our influence to raise children’s self-protection awareness and contributed to building a safer and more secure environment for

on public welfare and contributing to the sustainability of the society. their development.Caring for vulnerable groups

Case YiNian XiaoYao - Assistance to hearing-impared children

In September 2024 the Company donated RMB 88 thousand to the Beijing Ihearu Charity Fund to support the “Spring Bud Program” with Girl Protection courses

construction of 4 cognitive learning centers which provide hearing-impaired children with teaching aids such as

picture books and audio materials for speaking and reading. The Company is dedicated to facilitating the linguistic

recovery and social integration of hearing-impaired children fulfilling its social responsibilities through concrete

actions. Case “Blue Letter Pen Pal Program” - Protecting children’s spiritual growth

In 2024 we teamed up with the Blue Letter Care Centerfor Left-behind Children to launch the “Village Children’sCase Love Action - Caring for special groups Pen Pal Program” offering psychological support to rural

children in Guangdong and Sichuan provinces through

letter exchanges.In 2024 the Company donated RMB 74 thousand of welfare supplies to the “Food Bank of Love” at Jialian Street

Xiamen City aimed at providing support for the disadvantaged groups. Through this initiative we provided practical Supported by Cyberspace Administration of Shenzhen

support to the residents in need conveyed the Company’s love and care for the community and contributed to the cybersecurity education events were held at three

positive cycle of social welfare. rural schools in Lianping County. These interactive and

engaging events were designed to help children raise

their awareness of cybersecurity and enhance their self-

protection ability.In addition to financial support for children the Company

encourages its employees to engage in letter exchanges

to offer lasting emotional support for rural children. In

pursuit of our social responsibility the Company has

created a warmer brand image.Promotional activities of the “Blue Letter Pen Pal Program”

77 78Undertaking Social Responsibility

Case Children’s book donation - Lighting up the reading dreams of rural children Natural disaster relief

In 2024 the Company initiated the children’s book donation program themed “Books for Children Love for All” aimed

at helping children in rural areas grow in reading through book donations collection of “Glimmering Light” messages Case Volunteering for flood relief - Supporting the rebuilding of affected areas

and guided-reading activities.The Company donated RMB 100 thousand to the Stars Youth Public Welfare Development Center for 10

township schools and 1 community library. A total of 5500 new books were donated benefiting more than In 2024 heavy rainfall caused severe flooding in many southern regions. To help the affected residents overcome

7000 teachers and students and attracting the attention of more than 130 thousand netizens to children’s these difficulties the Company together with Shenzhen One Foundation responded quickly by donating relief

education in the countryside through social media. We carefully selected books based on students’ age reading supplies with a total value of RMB 710 thousand to assist the affected areas including Wuping in Fujian Province

proficiency and interests covering a wide range of categories such as picture books children’s literature popular Meizhou in Guangdong Province Zhenyuan in Guizhou Province Pingjiang in Hunan Province and Dianjiang in

science encyclopedias and classic books. Chongqing Province.Furthermore the Company launched the “Glimmering Light” messages collection activity in which players sent their In addition the Company was concerned about the recovery of education in the affected areas. The donated

blessings to rural children on social platforms with warm words to express their care. Volunteers guided the children materials include desks and chairs with a value of RMB 210 thousand to support the reconstruction of damaged

to complete reading tasks discuss and express themselves creatively through theatre performances painting and schools helping students return to school as quickly as possible and restore a normal learning environment.writing helping them enhance their thinking skills and language expression. In the face of sudden disasters we acted swiftly and responsibly providing targeted support to help affected areas

The project was selected as one of the “2024 Typical Cases of Game Public Welfare” by People's Daily restore production and daily life.demonstrating our long-term commitment and innovative practice in promoting the development of rural children’s

education and further enhancing the brand’s social influence.Children’s book donation and reading experience day Delivery of relief supplies

79 80Undertaking Social Responsibility

Empowering industry development Standard formulation and topic research

This year G-bits as one of the drafting units participated in the development of four group standards for the Internet Society

G-bits keeps an eye on the development of the game industry. The Company collaborates with universities and partners to of China including the Guidelines on Carbon Disclosure for Internet Enterprises the Guidelines on Evaluation of Social

provide opportunities for industry talents to showcase their abilities empowering the sustainable development of the game Responsibility and ESG Information Disclosure for Internet Enterprises the Guidelines on Preparation of Social Responsibility

industry. The Company pays close attention to industry trends proactively engages in government and industry events and Report on the Protection of Teenagers and the Guidelines on Preparation of Social Responsibility Report on the Protection of

demonstrates its corporate responsibility through practical actions. We consistently contribute to the high-quality development of Personal Information.the game industry helping build a healthy stable and sustainable industry ecosystem.Moreover the Company actively contributed suggestions to the industry. Such efforts include submitting the opinions and

suggestions on the group standards of Requirements for Consumption Management of Teenagers’ Online Game Services to the

Promoting industry exchanges and cooperation Internet Society of China. In collaboration with relevant organizations such as the Game Publishing Committee the Cyberspace

Administration of Xiamen and the Cyberspace Administration of Shenzhen the Company participated in the research on the

Report on Anti-addiction of Online Games the current state of game IP derivatives and the anti-addiction mechanism for

The Company has actively participated in the development of industry organizations. We are selected as one of the first minors thereby assisting the industry in optimizing its policies and practices.members of the Digital IP Application Committee of the China Audio-video and Digital Publishing Association and

serve as a vice-chairman of the Shenzhen Game Specialized Committee of the Shenzhen Internet Federation as well as

the chairman of the Xiamen Game Industry Union demonstrating our commitment to driving the high-quality development of Empowering talents development

the industry.The Company continues to engage in industry events such as the Fine Game Development and Creation Forum on the 2024 G-bits is committed to cultivating and guiding talent within the industry. Leveraging our industry influence diverse platforms and

China Game Industry Annual Conference National Cybersecurity Awareness Week in Fujian Province Guangdong Game Expo. projects we promote knowledge sharing strengthen talent cultivation and deepen industry-university-research cooperation

Through these engagements the Company has collaborated with industry partners to build a healthy open and innovative facilitating sustainable development of the industry.ecosystem for the game industry.Eliminating industry barriers through knowledge sharing

Case Fine Game Development and Creation Forum at the 2024 China Game Industry Annual The Company actively shares and promotes specialized

Conference knowledge within the game profession. Through thecreation of an interview series titled “My Story withOn December 12 2024 the Fine Game Development and Creation Forum was successfully held in Shijingshan Games” frontline employees share their experiences

Beijing. The forum was hosted by the Game Working Committee of the China Audio-Video and Digital Publishing showcase the diversified ecology of the game industry

Association (CADPA) and the Expert Committee on Game Industry Research of the CADPA and organized by the and help eliminate social misunderstanding about

Company. With the theme “Upholding Integrity and Pursuing Relentless Innovation” this forum gathered professionals the industry. In addition we have established the

from the game industry and experts in related fields. Participants engaged in in-depth exchanges and intellectual “Game Trivia” series to popularize game development

discussions on topics such as game development concepts technical architecture and engineering capabilities. knowledge in a fun way stimulating young talents’

interest in the industry and raising the social awareness

At the forum participants not only explored the creation strategies and development directions of premium games of the game industry.but also shared successful cases and cutting-edge technologies which promoted continuous progress in content “My Story with Games” and “Game Trivia” series

creation technological innovation and high-quality development within the industry. As the organizer the Company

provided a platform for industry exchange promoting technological innovation and the advancement of high-quality Promoting practical exchanges and incubation innovative talent

game development significantly contributing to the growth of the game industry.In 2024 the Company has organized a series of college game developer salons in Wuhan Beijing Shenzhen Xiamen and

Chengdu. These events were designed to build an offline interactive platform offering college game developers opportunities

to showcase their works conduct games trial and engage in industry exchanges. The events invited the Company's frontline

producers senior R&D experts executives and school recruiters to share insights on game development industry trends and

career planning helping young developers improve their professional abilities and drive game innovation.

2024 China Game Industry Annual Conference - Fine Game Development and Creation Forum

81 82Undertaking Social Responsibility

Building industry bridges through enterprise open day Case Cultivating Future Game Developers and Promoting Sustainable Industry Development - G-bits & University Game Development Alliance

This year the Company held a corporate open day event inviting college teachers and students interested in the game industry

to G-bits and get a deeper understanding of the ecology of the game industry. The event included professional sharing sessions Since 2021 G-bits has established the G-bits & University Game Development Alliance an organization for learning

and interactive game trials providing young groups with industry insight and practice opportunities thereby helping to build the and exchanging among college game development enthusiasts. It provides students with systematic learning

industry talent pipeline. resources and professional guidance helping young developers enhance their skills and industry knowledge. The

alliance regularly organizes activities such as live course broadcasts summer game development practical training

University Game Jam challenge and invited industry experts and experienced producers to exchange and share

views. In addition the alliance provides resource support for university game culture ecosystem by sponsoring 14

game societies from universities such as Huazhong University of Science and Technology Shenzhen University and

Northeastern University.In 2024 the alliance organized over 40 live course broadcasts with members exceeding 6000 covering nearly 600

universities and involving 120 university societies.Enterprise open day visiting activity in Guangdong University of Technology and Harbin Institute of Technology

Deepening industry cooperation and promoting talent ecosystem

The Company actively engages in external academic research and industry technology exchanges. By promoting collaboration

among industries academia and research institutions we advance the talent cultivation in the game industry to build a more

inclusive industry talent ecosystem.Case Empowering Young Developers and Building a Global Game Talent Ecosystem - G-bits Game Developer Contest

Student work from practical training under G-bits & University Game Development Alliance Game Education Campaign

The Company has organized the G-bits Game Developer Contest for six consecutive years. With a global perspective

and professional guidance this contest invited core game developers as team leader and provided opportunities for

offline game trial opportunities providing a platform for university developers to show their talents and exchange their

ideas.In 2024 over 2000 developers from over 600 universities worldwide participated in the contest with more than

300 creative game works submitted. Among them 143 participants were from international locations covering 13

countries including top international institutions such as New York University and University of Southern California.The contest is committed to cultivating young game talents and incubating high-quality creative works contributing to

the creation of an open and collaborative talent ecosystem in the industry.G-bits Game Developer Contest

83 84Appendix

Appendix

Key Performance Table

Indicator Unit 2024 2023 2022 Indicator Unit 2024 2023 2022

Total electricity consumption in offices kWh 3833963.30 3427466.10 2800028.15 Male management Number 136 129 119

By gender

Electricity consumption in Xiamen Office kWh 1435269.00 1427013.00 1352345.00 Female management Number 49 43 39

Electricity consumption in Shenzhen Office kWh 2088971.30 1689708.10 1169866.15

R&D personnel Number 919 855 692

By

Electricity consumption in Guangzhou Office kWh 309723.00 310745.00 277817.00 professionals

Non-R&D personnel Number 541 592 562

Energy consumption intensity kWh/person 2637.75 2537.92 2546.64

China mainland Number 1446 1434 1243

Total water consumption in offices Tonne 29106.73 17545.44 20785.68

By Hong Kong Macao and Taiwan

Water consumption in Xiamen Office Tonne 14356.91 10997.44 14695.68 geographical region regions of China

Number 9 7 6

Water consumption in Shenzhen Office Tonne 14656.82 6422.00 5976.00 Overseas Number 5 6 5

Water consumption in Guangzhou Office Tonne 93.00 126.00 114.00 Total number of newly hired employees Number 514 493 553

Water consumption intensity Tonne/person 20.03 12.99 18.90 Percentage of vacant positions filled by internal

candidates % 3.47 2.53 3.58

Indirect greenhouse gas emissions (Scope 2) Tonne 1643.46 2654.54 2235.42

Average employment cost per FTE RMB/person 10448 10551 10906

Total non-hazardous waste generated21 Tonne 124.04 114.33 /

Total number of training sessions Session 94 168 177

Non-hazardous waste generated intensity22 Tonne/person 0.09 0.08 /

Total training hours provided by the Company Hour 334 504 870

Volume of waste recycled23 Tonne 2.07 2.23 /

Total number of employees Number 1460 1447 1254 Training hours per employee per year

24 Hours/person 0.23 0.37 0.79

Employee training coverage rate/percentage of

≤ 30 Number 753 927 805 trained employees % 100 100 /

By age group

30-50 Number 707 520 449 Total training investment RMB 10 thousand 117.84 352.68 389.88

Master's degree and above Number 229 235 178 Employee absence rate % 0% 0% 0%

By academic

qualification Bachelor's degree Number 1013 1002 874 Amount invested in employee work injury

insurance RMB 10 thousand 90.12 58.12 38.97

Junior college degree and below Number 218 210 202

Coverage rate of employee work injury

insurance % 100 100 100

Male employee Number 1003 993 860

By gender Investment in society contribution RMB 10 thousand 129.57 298.53 246.69

Female employee Number 457 454 394

Investment in public welfare donations RMB 10 thousand 109.34 292.95 226.69

21 The Company's operations generate non-hazardous waste primarily including household waste food waste and electronic waste all of which are Investment in environmental protection public

managed by the property management company. The current non-hazardous waste statistics include those of three office premises of the Company in welfare RMB 10 thousand 20.23 5.58 20.00

Guangzhou Shenzhen and Xiamen.

22 This year the Company used the average total number of employees at the beginning and end of the year to measure non-hazardous waste generated Investment in rural revitalization RMB 10 thousand 99.85 78.47 103.58

intensity.

23 The Company's recycled waste primarily includes electronic devices and their components such as mechanical hard drives solid-state drives laptops

monitors desktops and servers. 24 This year the Company used the average total number of employees at the beginning and end of the year to measure training hours per employee per

year.

8586

Society Environment

SocietyAppendix

Indicator Indexes

The Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies-

Sustainability Report (Trial) index

Disclosure dimension No. Disclosure issue Article Relevant Sections Disclosure dimension No. Disclosure issue Article Relevant Sections

Response to climate Ethics in science and Upholding innovation-driven

12 Article 43

change Practicing green technology development

1 Response to climate change Articles 21 to 28

operation

Key performance table 13 Supply chain security Article 45 ESG governance

2 Emissions of pollutants Article 30 Not Applicable2 Equal treatment of

14 small- and medium-sized Article 46 Not Applicable27

25 Practicing green enterprises3 Waste disposal Article 31

operation

Safety and quality of Developing high-quality

15 Article 4728

Ecosystems and biodiversity Practicing green products and services products

4 Article 32

conservation operation

Development of data security

Environment Environmental compliance 26 Practicing green Society Data security and system 5 Article 33

management operation 16 customer privacy Article 48 Data lifecycle management

protection Safeguarding the healthy

Practicing green content ecosystem

6 Energy utilization Article 35 operation

Key performance table Talent development strategy

Protection of employee rights

Practicing green and interests Maintenance

7 Water resources utilization Article 36 operation of smooth communication

Key performance table 17 Employees Article 5029 channels Employee

welfare Innovation in talent

Practicing green cultivation Supporting

8 Circular economy Article 3725 operation employee development

Key performance table Key performance table

Contributing assisting 18 Due diligence Article 52 ESG governance

9 Rural revitalization Article 39 rural revitalization

Key performance table Communications with 19 Article 53 ESG governance

stakeholders

Sustainability-related

“Glimmering Light”

Society governance

10 Contribution to society Article 40 lighting up the future Anti-bribery and anti-20 Article 55 Business ethics

Key performance table corruption

Upholding innovation- 21 Anti-unfair competition Article 56 Business ethics

11 Innovation-driven Article 42

driven development

27 T he Company was not involved in any situation where the balance of accounts payable (including notes payable) exceeded RMB 30 billion or accounted

25 The Company will progressively enhance the data collection capabilities for hazardous waste generation and renewable resource consumption to enable for more than 50% of total assets at the end of the Reporting Period. Additionally the Company was not subject to disclosure of overdue payments to

more comprehensive disclosure of relevant data and its statistical methodology. small and medium-sized enterprises (SMEs) through the National Enterprise Credit Information Publicity System.

26 28 A ccording to the classification standards for environmental emergencies outlined in the National Emergency Response Plan for Sudden Environmental The products related to the Company’s main business are all virtual products and do not involve product recalls.

Incidents issued by the Ministry of Ecology and Environment of the People’s Republic of China the Company specializes in the development and 29 Specializing in the development and operation of online games the Company does not fall within the scope of business entities mandated to take out

operation of online games and does not engage in activities such as the production storage or transportation of hazardous or toxic substances. work safety liability insurance under the Article 51 of the Work Safety Law of the People’s Republic of China. Therefore the Company does not purchase

Therefore we are not subject to major environmental incidents. work safety liability insurance for employees.

87 88Appendix

GRI Sustainable Development Report Standard index

Contents GRI Standards Contents GRI Standards

I. About this Report 2-1; 2-2; 2-3; 2-4 (I) Talent development strategy 404-2

2-7;2-25;3-3;401-1;403-8;405-1;

II. About G-bits 2-6 (II) Protection of employee rights and interests 408-1; 409-1

(I) Corporate governance 2-9; 2-11; 2-24 (III) Maintenance of smooth communication channels Not Applicable

VI. Talent Sustainability

III. Corporate Development

Governance and ESG 2-12; 2-13; 2-16; 2-17; 2-22; 2-24;

401-2;403-1;403-3;403-5;403-6-;

(II) ESG governance (IV) Employee welfare

management 2-29; 3-1; 3-2

(III) Business ethics 2-25; 2-26; 2-27; 3-3; 205-2; 206-1 (V) Innovation in talent cultivation 404-1; 404-2

(I) Developing high-quality products 417-1 (VI) Supporting employee development Not Applicable

IV. Product and Service

Empowerment

(II) Upholding innovation-driven development 417-1 (I) Response to climate change 201-2; 3-3

VII. Green Operations

302-1;302-3;302-4;302-5;303-1;

(I) Development of data security system 417-1 (II) Practicing green operation 303-2; 303-5; 305-2; 306-2

V. Data Ecosystem

(II) Data lifecycle management 417-1 (I) Contributing to rural revitalization 203-1Protection

VIII. Undertaking Social

(III) Safeguarding the healthy content ecosystem Not Applicable Responsibility (II) “Glimmering Light” lighting up the future 203-1; 413-1

(III) Empowering industry development Not Applicable

89 90Appendix

Reader Feedback

Dear Reader: 8. What do you think of our performance in fulfilling environmental responsibilities

We sincerely appreciate your time to read the 2024 Sustainability Report of G-bits Network Technology (Xiamen) Co. Ltd. Excellent Good Average Below average Poor

We sincerely welcome your comments and suggestions in order to provide you and other stakeholders with more valuable

information and effectively promote the Company's ability to perform its corporate sustainability management.

9. What do you think of the clarity accuracy and completeness of the information indicators and data disclosed in this Report

Excellent Good Average Below average Poor

1. What's your overall comment on the Report:

Excellent Good Average Below average Poor

10. Do you think the contents and formatting of this Report are easy to read

Excellent Good Average Below average Poor

2. What do you think of our responses and disclosure to stakeholders’ concerns in this Report

Excellent Good Average Below average Poor

Open-ended question: What are your opinions or suggestions to G-bits on its performance of sustainability management or this

Report

3. What do you think of our performance in fulfilling financial responsibilities

Excellent Good Average Below average Poor

Your contact details:

4. What do you think of our performance in fulfilling responsibilities to users Name: Tel:

Excellent Good Average Below average Poor Email: Employer:

Title: Fax:

5. What do you think of our performance in data security management

Excellent Good Average Below average Poor

You may give us your precious feedback or suggestions in the way as described below:

6. What do you think of our performance in fulfilling responsibilities to employees

Excellent Good Average Below average Poor Contact department: Securities Department of G-bits

Tel: 0592-3213580

7. What do you think of our performance in fulfilling responsibilities to communities Email: ir@g-bits.com

Excellent Good Average Below average Poor Contact address: Rm. 101 No. 4 Wanghai Road Software Park Phase II Siming District Xiamen

Postcode: 361008

9192

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