Datasea's environmental, social and governance disclosures, as published on the Company's investor relations website.
Datasea remains committed to integrating ESG (Environmental, Social, and Governance) principles into its operations and long-term strategy, positioning ESG as a key engine for sustainable development. We recognize that ESG is not only an important tool for risk management and opportunity identification but also a pathway to strengthening resilience, enhancing competitiveness, and building long-term, positive relationships with stakeholders.
In 2025, the Company worked closely with core suppliers to establish green production standards. By introducing energy-saving equipment across supplier networks, energy consumption per production line decreased by more than 10%, saving tens of thousands of kWh annually. A full lifecycle management system was also established, increasing the compliant disposal rate of waste by 20%.
The Shenzhen subsidiary continued upgrading its green office initiatives, adding a smart waste-sorting system. With special recycling for biodegradable waste, sorting accuracy for recyclables improved to over 90%. Paperless workflows reduced quarterly paper usage by 50% year-over-year, while office energy consumption per unit area fell by 15%.
The Company launched an ESG data transparency platform with a new supply chain carbon footprint tracking module. Most Tier-1 suppliers have achieved real-time data integration, laying the foundation for building supplier carbon accounts in the future.
ESG training coverage rose to 85% in fiscal year 2025, up 10 percentage points from the previous quarter. Adoption of internal green proposals increased by 35%. The Company launched an internal "ESG Action Points Program", with over 90% employee participation, collectively logging more than 12,000 kilometers of green commuting.
The Company continued initiatives such as "Love Education" and the "Sunshine Volunteer Charity Club." CEO Ms. Zhixin Liu, serving as a council member of the National Association of Women Entrepreneurs, actively promoted female entrepreneurship and philanthropic collaboration.
The proportion of female employees continued to rise, with women holding 40% of management positions, reflecting the Company's strong commitment to diversity, equality, and inclusion.
In Q2 2024, Datasea conducted a comprehensive ESG evaluation to assess current performance and identify improvement priorities. This assessment informed our ESG roadmap and clarified top priorities across environmental, social, and governance dimensions.
Keywords: Sustainability Initiatives, Carbon Footprint, Renewable Energy, Eco-friendly Materials, Energy Efficiency
Datasea continues advancing sustainability initiatives by setting emission-reduction targets, increasing renewable energy usage, and adopting eco-friendly materials. We have implemented energy-efficient technologies and advanced energy management systems in offices and new facilities to reduce overall consumption and environmental impact. These actions strengthen environmental performance and support industry sustainability leadership.
Keywords: Community Support, Workplace Culture, Inclusivity, Diversity, Talent Development, Employee Health & Safety
Philanthropy & Community Engagement — Datasea actively participates in charitable programs, including "Love and Support Education" and the Sunshine Volunteer Charity Club. CEO Ms. Liu Zhixin has received multiple honors (Charity Ambassador 2020, Loving Entrepreneur 2021, Vice President of Shenzhen Women Entrepreneurs Association 2023/2024).
Talent Development & Employee Support — The company continues improving recruitment standards and employee development systems. We provide career-growth platforms, protect employee rights, and create an inclusive, positive workplace. International talent development includes sending R&D leadership for overseas training and hiring professionals in both China and the U.S.
Datasea upholds diversity, equity, and inclusion across age, ethnicity, region, political belief, religion, sexual orientation, marital/fertility status, education, and experience. We comply with PRC labor laws, sign legal contracts, pay social insurance and housing funds, and updated internal policies following the latest Women's Rights Protection Law. The proportion of female employees grew 12% in 2024.
Employment, Compensation & Incentives — Datasea created tens of thousands of job opportunities in 2024 across multiple cities. The company has built a competitive compensation system (base salary, performance pay, subsidies, bonuses) supported by formal incentive policies. We maintain multi-layered incentives for directors, executives, employees, and contributors through stock rewards and subsidiary equity platforms. In 2024, R&D contributors to 5G AI multimodal digital business and product innovation received equity incentives, further strengthening talent retention and forming a value co-creation community across key subsidiaries.
Keywords: Corporate Governance, Independent Board, Transparency, Cybersecurity, Data Privacy
Datasea maintains robust governance through an independent board (40% women), diverse executive leadership (Asian and Caucasian executives), and comprehensive ethical conduct policies. Transparency remains a key commitment as we regularly disclose ESG practices and collaborate with professional market and investor relations institutions. As a technology company, Datasea continues enhancing cybersecurity and data privacy through advanced protection systems to safeguard user data and strengthen customer trust.
Datasea is strengthening internal controls and gradually introducing third-party oversight. Key initiatives include:
Continuous optimization of budgeting, procurement, asset management, credit control, internal audits, and cost accounting. Comprehensive internal control policies now include procurement, inventory, and fraud prevention standards, with external monitoring introduced.
Joint mechanisms between internal control and legal departments to identify risks and ensure prompt corrective actions.
Working with underwriters to enhance financing strategy and investor alignment.
Reinforcing cooperation with internal and external legal professionals to mitigate risks.
Datasea is a leading provider of products, services, and solutions for enterprise and retail customers in three converging and innovative industries: 5G messaging, acoustic intelligence, and smart city technology. The Company possesses proprietary and cutting-edge technologies that build a solid foundation to design, develop and supply a broad range of solutions in each industry. We have a long-term sustainability strategy integrated into all areas of our business for the benefit of our stakeholders: regulatory bodies, customers, shareholders, employees and communities.
As a company committed to global best practices, we advocate for greater transparency. Datasea is committed to providing meaningful and accurate sustainability information to stakeholders. Datasea discloses information about our environmental, social and governance (ESG) practices and performance to stakeholders through our Annual ESG Report and quarterly sustainability statements. We recognise that the field of sustainability is ever-evolving and dynamic in nature. As the sustainability landscape evolves, we continue to enhance our sustainability reporting. We commence our ESG disclosure aligned to the SASB framework. This is an initial step in our evolution as we build a more unified sustainability framework. We look forward to providing additional reporting in the coming months.
The company is a leading provider of products, services, and solutions for enterprise and retail customers in three converging and innovative industries: 5G messaging, acoustic intelligence, and smart city technology.
Datasea's vision is to become a global leader in Digital Intelligent Technology, to innovate and provide advanced technology to a broad client base, and within a decade, to evolve into a multinational company with a U.S. entity as the core of its business operations.
Sales: The company generated $17,080,911 in the 2022 fiscal year. Employees: about 50 employees. Offices: 2 main offices in 4 main cities, namely Beijing and Shenzhen. Operation: Datasea is a micro-cap company listed on Nasdaq.
Datasea is aware of global environmental issues. The company is committed to improvement of the environment. It works actively to safeguard and protect the environment and conserve natural resources to satisfy stakeholders' sustainability concerns and requirements. The company's commitment to safeguarding the environment and conserving natural resources is manifested in its modus operandi and the products it delivers. The company is set up to reduce the environmental impacts of consumers by providing them with online marketing services right from their fingertips. This reduces salesmen's travel journeys and emissions.
Datasea's environmental commitment is reflected in the application of the company's sustainability policy. This policy was developed in 2023 to formalise the company's environmental sustainability vision and commitment to operate in an environmentally conscious and sustainable way. In particular, the company has ambitions to minimise waste, energy and water consumption and reduce greenhouse gas emissions (GHG) at company level. At the company level, an ISO14001-compliant environmental management system is used to manage our operational environmental impacts. In particular, the sustainability function, with the cooperation of other central functions and the operating units, will endeavour to ensure: the reporting of increasingly accurate and reliable data and information about the company's consumption of environmental resources and greenhouse emissions; and the involvement of the company's suppliers in monitoring and quantifying the impacts of climate change associated with the Datasea goods and services.
Datasea is a company with a broad stakeholder base and, as such, it is important to align the company's interest with all stakeholders. This stakeholder relationship requires the company to develop security measures to satisfy stakeholders' (which include employees, investors, suppliers, institutions, customers and communities in which we work in) data security and privacy concerns. To this end, Datasea seeks to uphold the highest standards of fair and ethical practice in every action taken across all areas in which we operate. We are committed to the management of customers' data to ensure they are always protected and kept securely.
As a result, we established a data management strategy launched in 2023 in support of our business strategy in protecting and securing data and systems. The strategy guides the development of specific initiatives in this area to ensure that the company: uses customer data to provide them with online services only; and protects and secures customer data throughout the information life cycle.
Datasea is a people-centric company, supporting and recognising the abilities of those who work for the company and for the community in which it operates. To achieve this, continuous multi-disciplinary and specialist training programmes have been developed for employees. The CEO owns about 45.7% shares of the company. Together with management, a significant part of the share capital is invested directly into the company. The company has built its history and successes on the abilities of its employees, who have been leading actors in the achievement of these results.
The human capital strategy launched in 2023 in support of our business strategy is based on the following pillars: constant improvement and development of the business model consistent with our business strategies and priorities; strategic planning of resources to ensure the compatibility of our human capital with the needs of the company in terms of capacity and skills; development of employer branding to increase knowledge and awareness of the Datasea brand as an employer of labour; creation of a strong talent pipeline that ensures the sustainability of the company's human resources; development of employees' technical, professional and managerial skills; meritocracy as a basic element for the development of resources to ensure long-term sustainability of the company; and development of employee engagement and sense of belonging via a structured approach and a broad share ownership programme designed to make most of them shareholders.