ESG

ESG Management (2024)

2024 ESG progress overview, key priorities across environment, social and governance, and the Company's internal control enhancements.

2024 ESG Progress Overview
ESG Evaluation

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.

Key ESG Priorities
Environment

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.

Social

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.

Governance

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.

Internal Control Enhancements

Datasea is strengthening internal controls and gradually introducing third-party oversight. Key initiatives include:

1. Internal Control Improvements

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.

2. Collaborative Oversight

Joint mechanisms between internal control and legal departments to identify risks and ensure prompt corrective actions.

3. Engagement with Financing Underwriters

Working with underwriters to enhance financing strategy and investor alignment.

4. Stronger Legal Collaboration

Reinforcing cooperation with internal and external legal professionals to mitigate risks.