About this ReportI
Information about this ReportReporting boundaryReporting cycleData descriptionPreparation basis
This is the 2023 Corporate Social Responsibility Report of G-bits Network Technology (Xiamen) Co., Ltd (stock code:
603444). Through the Report, we hope to fully communicate with all stakeholders on G-bits's social responsibilityphilosophy, performance, and commitment to corporate sustainable development.
The information, data and cases used in this report are from the Company's o?cial documents, statistical reports, nancialreports or public documents, as well as the Company's functional departments statistics and summaries of ESG practiceinformation. The reporting currency of the nancial data in this Report is Renminbi ("RMB").
This Report covers the period from 1 January, 2023 to 31 December, 2023 (the "Reporting Period" or "this year") for allG-bits o?ce locations.
This Report is prepared and disclosed mainly in accordance with the No.1 Guidelines for Self-discipline Regulationof Listed Companies on the Shanghai Stock Exchange- Operating in a Well-regulated Manner and SustainabilityReporting Guidelines (GRI Standards) issued by the Global Sustainability Standards Board.
This Report is simultaneously released with the Company's Annual Report.
Information about this ReportData description
Reporting boundary
Reporting cycle
Preparation basis
0102About this Report
About G-bits
II
Company proleParty-enterprise integrationHonors
Company profile
G-bits Network Technology (Xiamen) Co., Ltd. (hereinafter referred to as "G-bits", "We" or "the Company") is acompany specialized in creative planning, R&D, production and commercial operation of online games. The Companyaims to provide "original, high-quality and ethical" online games and is committed to creating original online games witha focus on positive content, as well as high cultural and artistic standards for entertainment experiences.We observe our corporate social responsibilities all the time to promote the co-development of the industry and theco-creation of social value. We make unremitting e?orts to create high-quality and healthy recreational products andprovide global users with di?erentiated products and services. In the future, the Company will actively engage in R&Dand innovation, continuously provide high-quality game products, and spread wonderful experiences in the cultural andrecreational eld.
Corporate culture
Emphasis on shareholder returns
2021
Amount of cash dividend (RMB 100 million)
20222023
5.04
11.50
12.22
Cash dividend amount as a percentage of net protattributable to shareholders of the Company (%)
G-bits strives to gather and nurture innovative talent and pursue e?cientworking methods. We aim to provide global users with differentiatedproducts and services. We wish to create and disseminate delightfulexperiences in the cultural and entertainment eld.
Respect, Integrity, Compliance with Rules, Professionalism, Progress,Perseverance and Honesty
Act with Integrity (Integrity): We focus on long-term benefits, do what ismore valuable and right for long-term development, and establish positivecooperative relationships with all those we work with.Clarity of Essence (Clarity): We grasp the essence of things, understanding
and addressing problems from the "source". We delve deeply into userneeds, prioritize the user experience, and guide our work by standing inthe user's perspective to evaluate the outcomes. We believe it is essentialto stay close to our users and clearly understand their evolving needs.Therefore, we must build a user-centric mindset within the organization,conducting and assessing our work with a user-driven approach.Benefit from Humility (Humility): We encourage our employees to be
humble rather than arrogant or complacent. We believe it is essential torespect others' opinions and view ourselves from their perspective.Elegance in Behavior (Elegance): We pursue good product qualityinstead of trying to prot from vulgarity or anything against humanity. Weencourage our employees to follow a decent discipline, pursue a qualitylifestyle, and cultivate an appreciation for aesthetics.
Mission
Values
Behavioral
pattern
78.30
83.67
44.82
202120222023
0506About G-bits
Innovative R&D strategy - "Minimum Viable Product (MVP)Approach"G-bits attaches great importance to product innovation and strives to improve competitiveness by creating di?erentiatedand commercialized high-quality games. With a unique R&D strategy of "MVP Approach", the Company tests the coregameplay, conception and painting style of the game by rapidly iterating. At the stage of project R&D, the project teammembers produce the prototype according to the design idea. After conducting user tests to verify the feasibility ofcore gameplay, the project team members will iteratively update the feedback and optimize the prototype based ontest data constantly and rapidly. The verication will be repeated until the game is launched online. "MVP Approach"is beneficial for controlling product direction, avoiding ineffective investment, and controlling R&D costs. However,the "MVP Approach" does not imply that the project scale or total investment is small, instead, it means increasinginvestment in situations where the project's certainty is relatively high. Furthermore, with the "MVP Approach", theoperations team closely collaborates with and supports the R&D team through multiple tests and analyses to get an in-depth understanding of market conditions and user characteristics of the products, and to provide better-customizedlaunching plans for the products to reduce relevant risks and costs.
Party-enterprise integration
Adhering to Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and the Spirit of the 20thNational Congress of the Communist Party of China, G-bits fully leverages the advantages of an internet enterpriseto propel high-quality development. Grounded in party building and rooted in China's outstanding cultural heritage,G-bits showcases cultural condence through game content and demonstrated its mission responsibility through gamesupervision.This year, the Company continued to integrate party building into governance, culture and responsibility. Combined withactual business operations, we actively conducted various forms of learning and activities to strengthen party membereducation and enhance the level of corporate spiritual civilization.
In March 2023, all branches of theCompany held a general meeting ofparty members to convey the spiritof General Secretary Xi Jinping'simportant speeches and the maincontents of the government's workreport during the 2023 NationalPeople's Congress (NPC) and the2023 Chinese People's PoliticalConsultative Conference (CPPCC).The aim was to guide all partymembers to take the initiative tostudy and put the spirit of the NPCand CPPCC into practice.
On the occasion of the 102
nd
anniversary of the founding of theCommunist Party of China (CPC),the Company held a generalmeeting of party members on 1
st
July to learn the great foundingspirit of the CPC and continuouslyimprove the political quality ofparty members.
In April 2023, the party membersof the Company participated in thetheme activity of "RememberingRevolutionary Martyrs, Inheriting theSpirit of Dedication" on QingmingFestival, deeply rememberingthe great achievements of therevolutionary martyrs, reminiscingthe glorious course of therevolutionary martyrs, passing onthe red genes and carrying forwardthe revolutionary spirit.
In July 2023, party members of the Companylistened to the special lecture on "Learning andImplementing the Spirit of the 20th NationalCongress of the Party" at the Heron RiverLecture Theatre, to cultivate the love for theParty and patriotism, and to further cohesion ofthe power of advancement.
In August 2023, the Party branch of the Company co-organized the"Supporting Growth, Safeguarding Youth" 2023 Siming District NewXiamen People's Library Summer Camp, which was guided by theSiming District Committee of the Communist Youth League, SimingDistrict Minors' Ideological and Moral Construction Center and otherunits, aiming to strengthen the rule of law education and publicity, andenhance the protection of the rights and interests of minors and crimeprevention work to create a good atmosphere of the rule of law.
Build the core team
Plan the budget
Develop gameconcepts and designcore gameplay
Evaluate the feasibilityof the concepts andgameplay
Develop thedemo
Initiate theproject
Develop thegameFurtherdevelopment &optimizationsLaunch thegameOptimizegameversionsOperate andanalyze
Analyze thetest data
Slightlyexpand theteam
Expandthe team
Analyze thedemo testdata
Dene the designframework for
the demo
Plan the
demo
budget
END
YN
N
NEND
END
Demo Phase
Concept Phase
Post-launch Period
Project Development Phase
0708About G-bits
Honors
From 2017 to 2023The Company was selected for 7 consecutive years in the "Top 100 China InternetEnterprises with Comprehensive Strength" list jointly issued by Internet Society of Chinaand Ministry of Industry and Information Technology. It ranked 54
thin 2023, climbed upby 6 places from previous year
From 2019 to 2023
The Company was selected for 5 consecutive years as one of the "Top 100 enterpriseswith competitiveness in software and information technology services". It ranked 49
th
in2023, climbed up by 2 places from previous year
From 2022 to 2023
The Company was awarded "Grade A
" by the Shanghai Stock Exchange (SSE) forits annual information disclosure work for 2 consecutive years; In 2023, among the2,160 Shanghai-listed companies under evaluation, a total of 400 companies ultimatelyreceived "Grade A", accounting for 18.5%.
From 2021 to 2023
The Company was awarded the honorary title of "Relatively Outstanding Enterprise in
Social Responsibility Performance of Chinese Game Enterprises of the Year" by People'sDaily for 3 consecutive years
From 2019 to 2023
The Company was included in the SSE Social Responsibility Index
for 5 consecutiveyears
From 2022 to 2023
The Company and its subsidiaries were selected as "Cases of Game Public WelfareCeremony" by People's Daily for 2 consecutive years
In 2023
The Company was awarded the honorary title of "National Intellectual PropertyAdvantageous Enterprise" by the National Intellectual Property Administration.
From 2022 to 2023
The Company was nominated as one of the "Top 10 Outstanding Game Technology
Innovation Enterprises" by China Audiovisual and Digital Publishing Association for 2consecutive years
From 2022 to 2023
The Company was awarded the honorary title of "Enterprise with OutstandingPerformance in Social Responsibility" in Gamma Data's "Social Responsibility Report of
Chinese Gaming Enterprises" for 2 consecutive years
In March 2024
The Company was selected as a "National Cultural Industry Demonstration Base" by theMinistry of Culture and Tourism
The annual evaluation of information disclosure work of Shanghai Stock Exchange (SSE) is an annual comprehensive assessment of thequality of information disclosure and related work of listed companies conducted by SSE. The evaluation of information disclosure workcovers compliance, e?ectiveness and management of information disclosure a?airs.
SSE Corporate Social Responsibility Index is an index compiled from a sample of stocks in the corporate governance sector of the SSE thathave performed well in the fulllment of social responsibility, assessing the comprehensive performance of enterprises in economic, socialand environmental aspects and the fulllment of social responsibility.
0910About G-bits
Social Responsibility
and ESG Management
III
In an increasingly complex and volatile business environment, the Company aims to achieve high-quality sustainable development, continuously enhancing ESG management level, and practicing socialresponsibility. We rmly believe that good sustainable development strategy can e?ectively support theCompany realizing its long-term goals, navigating and responding to opportunities and risks associatedwith sustainable development. To this end, the Company actively integrates social responsibilityand ESG management into its daily prerational framework, taking on responsibility in the social andenvironmental aspects towards shareholders, players, employees, and other stakeholders.
ESG managementResponsibility communicationCorporate governanceBusiness ethics
ESG management
In order to fully perform corporate citizenship responsibilities and achieve the coordinated development of enterprisesand society, the Company has constantly improved the policies and systems in respect of environment, society andgovernance (ESG), established a three-tier ESG governance structure of "Board of Directors - Strategic Committee- ESG Working Group", continuously improved the ESG management level of the Company, and promoted the high-quality and sustainable development of the Company.The Company will, in accordance with the requirements of the Rules of Procedure of the Board of Directors and theWorking Rules of the Strategic Committee of the Board of Directors, clearly stipulate that the Board of Directors is thehighest decision-making body for ESG matters of the Company, and shall be mainly responsible for the supervision,management and decision-making of ESG matters of the Company. The Board of Directors authorizes the StrategyCommittee to be responsible for matters relating to the ESG of the Company, and the Committee is mainly responsiblefor studying the vision, objectives, and policies of the ESG governance of the Company, providing the Board ofDirectors with advisory suggestions on decision-making, supervising and inspecting the implementation of the ESGWorking Group of the Company and providing guidance in due time. The ESG Working Group is responsible fordeveloping the ESG implementation plan, coordinating the implementation of ESG issues and regularly reporting to theStrategy Committee.
BoardofDirectors
Board of DirectorsStrategy Committee
The highest responsibility organ for ESG management and disclosure;Deliberate and approve corporate ESG governance vision, objectives,policies, etc.;Deliberate and approve the ESG report and other significant ESG-related issues.
Conduct research on corporate ESG governance and providedecision-making advice to the Board of Directors, including ESGgovernance vision, objectives, policies, etc.;Supervise and inspect the implementation of the Company'sESG working group and provide guidance timely to continuouslyimprove the Company's management level in the eld of ESG;Deliberate the Company's ESG reports and other significantESG-related issues.
Establish ESG work execution plans;Coordinate and facilitate the implementation of ESG-related matters;Prepare the ESG annual report, etc.ESG Working Group
1314Social Responsibility and ESG Management
Responsibility communication
Stakeholder communicationThe Company attaches importance to the communication with stakeholders, establishes diversied communicationchannels, pays close attention to the demands of stakeholders, actively responds to the expectations of the interestedparties for the Company, and assists the Company to determine the priority of the sustainable development and jointlydenes the key directions for future sustainable development.
Shareholders andinvestors
Directors
Governments andregulators
Employees(including management level)
Players
Partners
Community and public
Industry
StakeholdersExpectations and demands
Major communicationchannels
Financial performancegrowthReturns to shareholders
Law-abiding operationBoosting employmentStrict compliance withlaws and regulationsTax payment on timeImplementation of policies
Corporate governanceProduct liabilityInformation security andprivacy protectionWin-win cooperation
Periodic reportTemporary announcementShareholders' meetingPerformance briengInvestor surveyPress releasesInvestor hotlineIR mailboxsns.sseinfo.com
Routine inquiriesSenior managementmeetingsOpen to supervisionProactive communicationInformation reportingWorking conferencesPolicy participationOn-site inspectionInformation disclosure
Phone, e-mail, and meetingsPeriodic reportTemporary announcement
StakeholdersExpectations and demands
Major communicationchannels
Legitimate rights and interestsprotectionWelfare system improvementDevelopment opportunitiesEmployee trainingOccupational healthprotectionDemocratic rights protection
Innovating high-quality gamesPlayer-centered Service andProductsProtection of privacy rights
Fair, just, honestWin-win cooperation
Support in communitydevelopmentCreating employmentopportunitiesRural revitalizationFair industry competitionIndustry growth facilitationAssistance in culturalpromotionIndustry barrier elimination
Sta? unionFounder meetup eventCorporate culture conferenceFace-to-face interview withemployeesEmployee feedback channel
High-quality gaming productsProfessional customer serviceteamSelf-service platformSocial MediaPlayer Surveys
Regular communicationmechanismsTender and bid systemVisits to suppliersOn-site investigationSupplier trainingEngage in public welfareactivitiesCommunity communicationand visitsCare for vulnerable groups
Industry cooperationIntellectual property protectionexchangeCultural promotion
1516Social Responsibility and ESG Management
Materiality assessment
In order to identify the ESG issues that are most concerned by stakeholders and clarify the focus of ESG practiceand information disclosure, we have invited internal and external stakeholders to identify and determine material ESGissues by means of questionnaire survey, review and summary, exchange meeting, etc.Based on the data collected during this materiality assessment process and the results of the analysis, we identiedthe most concerned stakeholders 10 material issues and responses in each section of this report to help stakeholdersbetter understand the Company's ESG performance. Among them, there are 3 very material issues, 5 material issues,2 sub-material issues, and the materiality assessment results are as follows:
G-bits ESG Materiality Matrix
Importance to the Company
Importance to the Stakeholders
Information security andprivacy protection
Product liability
Corporategovernance
Business ethicsEmployee rights and interests
Win-win cooperationDevelopment and trainingPublic welfare charity
Climate change
Green operation
Environmental Dimension
ESG Issues withHigh Materiality
ESG Issues with Moderate
Materiality
ESG Issues with LowMateriality
Information securityand privacy protection
Product liabilityCorporate governance
Business ethicsEmployee rights and interests
Win-win cooperationDevelopment and training
Green operation
Public welfarecharityClimate change
Corporate governanceThe Company strictly adheres to the requirements of the Company Law of the People's Republic of China, theSecurities Law of the People's Republic of China, the Code of Corporate Governance for Listed Companies, theRules Governing the Listing of Stocks on Shanghai Stock Exchange and other laws, regulations and normativedocuments, continuously improves the corporate governance policy, system, the "three meetings and one layer"governance structure of G-bits, composed of the General Meeting of Shareholders, the Board of Directors, the Boardof Supervisors and the Management. This promotes the Company to establish a governance mechanism with clearrights, responsibilities and standardized operation, guides the Company to operate in good faith and in compliancewith regulations, e?ectively manage and control risks, promotes the Company to achieve sustainable and high-qualitydevelopment, and repays the society and the majority of shareholders with commendable performance.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 theirrights as shareholders. The Board of Directors of the Company consists of a Strategic Committee, an Audit Committee,a Nomination Committee and a Remuneration and Appraisal Committee. The Board of Directors and all specialcommittees shall jointly be responsible for determining the strategic direction and overall strategy of the Company,and supervise the work and business performance of the Management, the operation and nancial performance of theCompany. The Board of Directors currently consists of seven members, including three independent directors and twofemale directors. The Audit Committee, the Nomination Committee and the Remuneration and Appraisal Committeeare 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 members of the Board of Directorspossess professional expertise and extensive industry experience in various domains, including game researchand development, operations, law, and nance. They are adept at integrating diverse perspectives and principles toformulate corporate decisions aimed at safeguarding the long-term interests of shareholders and the Company.
ChairmanLu HongyanMale
Bachelor's
degreeVice ChairmanChen TuolinMale
Master's
degreeDirectorZhai JianMale
Bachelor's
degreeDirectorGao YanMale
Master's
degreeIndependentDirector
Bao HuifangFemale
Master's
degreeIndependentDirector
Liang YanhuaFemale
Bachelor's
degreeIndependentDirector
Wu YibingMale
Doctoral
degree
TitleNameGender
Educationbackground
Professional competenceIndustryexperience
Compliancemanagement
Financemanagement
Social DimensionGovernance Dimension
High
High
Moderate
Moderate
1718Social Responsibility and ESG Management
Business ethics
The Company strictly abides by laws and regulations including the Company Law of the People's Republic of China,the Securities Law of the People's Republic of China and the Anti-Money Laundering Law of the People's Republic ofChina, and adheres to business ethics in daily operation and external cooperation. In doing so, the Company strivesto e?ectively control risks and creates a clean business environment to ensure the stable, healthy and sustainabledevelopment of the Company.Enhancing management systemThe Company strictly abides by anti-unfair competition, anti-bribery and anti-corruption laws and regulations of theplaces where the Company operates, including but not limited to the Anti-Unfair Competition Law of the People'sRepublic of China and the Interim Provisions on Banning Commercial Bribery. The Company also formulates internalpolicies and management systems based on business ethics standards and keeps refining the business ethicsmanagement system, so as to create a sound business environment.The Company has developed and released the Code of Ethical Business Conduct for G-bits Network Technology
(Xiamen) Co., Ltd (hereinafter referred to as "Code of Ethical Business Conduct"), which covers anti-corruption andanti-bribery, intellectual property rights and information privacy, conflicts of interest, anti-fraud, fair employment,discrimination and harassment, anti-unfair competition, and the prohibition of insider trading, etc.. The Code of EthicalBusiness Conduct is applicable to all directors, management and employees (full-time and part-time employees,consultants or those working for the Company on a temporary basis including contractors and interns) of the Company,all subsidiaries and related entities. Besides, our suppliers, contractors and other business partners must comply withthe Code of Ethical Business Conduct when providing goods and services to the Company or conducting businesses(such as business negotiation and contract signing) on behalf of the Company.A robust supervision mechanism is necessary for the e?ective enforcement of the Code of Ethical Business Conductto address business ethics risks. The Company's Audit Department regularly reviews compliance operations and
fullment of the Code of Ethical Business Conduct under the guidance of the Audit Committee, and performs businessethics audits of the Company and all its subsidiaries once every three years, which covers all business operations.
The Company operates persistently with integrity and honesty, having formulated internal policies and systems, includingthe Anti-Fraud Regulations, the Code of Integrity and Honesty and the Gift Acceptance of Policy. Together with the Codeof Ethical Business Conduct, they frame the Company's code system of business ethics. Meanwhile, the Company's AuditDepartment will revise or update policies and systems related to business ethics as necessary according to updates tolaws and regulations, business development and risk assessment. The Company takes zero-tolerance attitude towards anybreach of business ethics, and explicitly prohibits any form of integrity violations including corruption and fraud. In addition,the Company also sets out the four prohibitions of the integrity code that all employees must comply with:
As a member of the Trust and Integrity Enterprise Alliance, G-bits activelyparticipates in training and industry exchange meetings organized by theAlliance and participated in five such training sessions and meetings in thisyear. Besides, G-bits are constantly learning from external anti-corruptiongovernance and audit experience to gradually improve our integrity cultureand anti-fraud system, thus optimizing internal control systems and processes.Moreover, we strive to build a fair, just and open cooperation platform andenvironment.
G-bits actively participated in
such training sessionsand meetings in this year
Board ofDirectors
Prohibition of accepting bribes, kickbacks, orsoliciting bribes;
Prohibition of committing fraud;
Prohibition of misappropriating ortransferring the Company's interests;
Prohibition of leaking condential informationand transferring benets.
Audit Committee
Audit Department
1920Social Responsibility and ESG Management
Maintaining clear reporting channelsStrengthening business ethics awareness
Promoting supply chain integrity
The Company has established a comprehensive reporting process, clearly specifying the mechanism for protectingwhistleblowers in the Code of Ethical Business Conduct and the Anti-Fraud Regulations, to fully safeguard thelegitimate rights and interests of whistleblowers from any infringement. The Company has authorized the AuditDepartment to conduct dedicated investigations into corrupt practices and report directly to the Board. The AuditDepartment gives top priority to the confidentiality of the reports and personnel of the department shall sign theconfidentiality agreement when they join the Company. The agreement requires absolute confidentiality of thewhistleblower's personal information and all the reporting materials during processes of acceptance, registration,storage and investigation. In the event of a breach of condentiality, such as the leakage of whistleblower's information,the Company will strictly and seriously punish the person held responsible for the incident. And any act that constitutesa violation of the law shall be subject to prosecution for criminal responsibility.The Company strictly prohibits any employee from retaliating against the whistleblower in any form. If the whistleblowersu?ers retaliation in any form and to any degree, he/she can report it to the Company's Audit Department immediately,and we will determine whether to refer the matter to a judicial authority depending on the severity of the case. In casesof corruption or fraud that have been veried, a corresponding cash reward will be given to the relevant person orwhistleblower according to the system.
The Company focuses on daily integrity promotion and conducts business ethics training for new employees. After thetraining, employees will be assessed to ensure that they are well aware of the Company's current policies, systems andrequirements on business ethics. In the year, all employees of the Company (full-time and part-time employees, interns
and contractors) participated in business ethics training, and more than 800 people (including interns) signed the Letterof Commitment to the Integrity and Honesty of Employees.To build a strong culture of integrity and support integrity operations, we have tried different ways to raise ouremployees' awareness of business ethics, integrity, anti-fraud, anti-bribery and anti-corruption. In particular, weregularly send routine integrity promotion emails to all employees, including integrity promotion emails during festivalsand case sharing emails on International Anti-Corruption Day, and all these efforts can help employees betterunderstand why complying with the Company's code of business ethics matters.
To ensure integrity and fairness in cooperation with suppliers, we specify integrityclauses in each contract along with the channels for reporting commercial bribery.And fraud, bribery, corruption and other forms of ethical misconduct are strictlyprohibited. Suppliers are prohibited from giving or o?ering gifts, items or kickbacks,or taking or attempting to take any other disguised action, directly, indirectly orunder any guise, to provide improper benets to our employees. However, supplierscan report any breaches of integrity by relevant personnel of the Company using theappropriate channels.Employees who are confronted with a direct, indirect or attempted bribe from asupplier or other partner must refuse and make it clear that such behavior is aserious breach of the Company's requirements for integrity cooperation.
A transparent supply chain system is a key element in the long-term development of enterprises. For this reason, theCompany has developed and released the Code of Integrity and Honesty, and is working with its suppliers and otherpartners to build a clean supply chain ecosystem and a business environment that advocates cooperation with integrityand honesty.We have a unified supplier admission standard, which stipulates specific onboarding requirements for differentsuppliers. Apart from qualification and competence, we also assess suppliers' performance in business ethics andintegrity. Supplier candidates who apply for the entry into the resource library must read the Code of Integrity andHonesty before submitting qualication materials for review. While those included in the resource library will be notiedof integrity cooperation by letter on an annual basis. This year, the Code of Integrity and Honesty was read more than
1,300 times, and a total more than 2,700 letters were sent. And all our suppliers participated in the business ethicstraining.
To better prevent and detect fraud risks, the Company's Audit Department is authorized to conduct fraud investigationsas part of its routine work in addition to collecting internal and external reporting information through whistleblowerchannels, and any ndings are reported directly to the Board of Directors. This year, the Company carried out anti-fraud investigations in three audit projects, and no signicant corrupt practices were detected.
We have established multiple public reporting channels, including telephone, email, postal mail, and the Intranet, tofacilitate joint supervision from both internal and external parties:
Reporting process and managementAcceptance
of reports
Assessment
andregistration
Investi-gation
Reportandsummary
Investi-gationreports
Casehandling
Follow-upprocessing
Filing
Online report platform
E-mail for reporting: jubao@g-bits.comTel. for reporting: +86 182 5071 2733Mailing address: Audit Department of G-bitsBuilding, No. 4 Wanghai Road, Software ParkPhase II, Siming District, Xiamen
The Code of Integrity and Honesty was readmore than1,300
times
Notied letters of integrity cooperationwere sent2,700
times
2122Social Responsibility and ESG Management
Product Empowerment
IV
The Company adheres to the concept of player-centricity, focusing on high-quality content creation, research anddevelopment, and is dedicated to creating a vibrant, enjoyable, and entertaining gaming world for players. Webelieve in the power of products. By skillfully integrating traditional cultural elements into the game design, weshow the unique charm of Chinese culture, so as to promote Chinese culture with all our heart and tell a good andelaborate Chinese story. In addition, in order to create a good atmosphere for innovation and R&D, the Companydeeply implements the protection of intellectual property rights, adheres to the respect and protection of R&Dachievements, and continuously creates positive value for the industry and society through innovation.
Player-centric approachPromoting Chinese traditional cultureIntellectual property protectionExploring technological frontiers
Player-centric approach
The Company believes that creating a quality gaming experience for its players is the key to success. The Companyactively responds to their demands and continues to optimize their experience. Simultaneously, we have an in-depthinsight into the needs of game enthusiasts demands and market trends, and create various unique game products tomeet the demands of the majority of players.
Valuing the gamer experience
The Company insists on the concept of "Serve as the O?cial Companion by the User's Side, Creating an ExceptionalService Experience" for a long time, and is committed to providing professional, efficient and satisfactory gameexperience. This year, in addition to adding game communities, conducting player research, visiting gamers of variousages and locations, The Company has also repeatedly organized face-to-face communication and o?ine events tolisten to players, and determines game optimization and iteration direction based on players' demands.
In May 2023, the annual AskTao Mobile Conference wassuccessfully held as scheduled. The event aimed to fostercommunication with players of AskTao Mobile, understandtheir actual needs, and iterate the game based on their corerequirements. A total of 1,250 individuals registered for the o?ineevent, reaching an online audience of 103.4 thousand users.Eventually, 51 player representatives were invited to attend theo?ine event. During the conference, these player representativesexpressed their views on 102 topics, and through a votingprocess, 10 key issues were selected to guide the optimizationdirection for AskTao Mobile in the upcoming year.
In June 2023, Face-to-face activity of
players of AskTao Mobile
AskTao Mobile Conference
In September 2023, Face-to-face activity
of players of YiNian XiaoYao
Issues of the Conference
A total of
1,250
individualsregistered for the o?ine event
The o?cial online live broadcastaccumulating
190.9
thousand views
2023 AskTao Mobile National Competition
Case: Engage in face-to-face activities to listen to players' feedbackThe Company attaches importance to player feedback and suggestions, invites players and KOC (Key OpinionConsumer) to participate in face-to-face activities, communicates with the o?cial development planning teamand operation team of the game on the spot, and discusses issues such as the development direction and gameexperience optimization of the game.
Case: The Conference on AskTao Mobile
Case: National Competition of AskTao MobileThe 2023 National Competition of AskTao Mobile concluded successfully on 16
thDecember. During thecompetition, we established unied criteria for levels, morals, and martial arts. All participating players startedfrom the same point, and the ultimate champion was determined through score matches, elimination rounds,and o?ine nals. The live broadcasts and videos related to this event reached a total of 5.33 million views, withthe o?cial online live broadcast accumulating 190.9 thousand views.
Reaching an online audience of
103.4
thousand users
The live broadcasts and videos related to thisevent reached a total of
5.33
million views
2526Product Empowerment
User communication and services
Tapping into the charm of traditional patterns andcolors, Disseminating the aesthetics of Chinese costumes
Integrating ancient intangible culture heritage:
crafting a Qixi Festival velvet flower gift box
In order to ensure the high quality of the game experience and respond to the needs of the players in time, theCompany has established internal user service systems such as "Leiting Customer Service Group Specification","Leiting Customer Service Review System" and "Quality Inspection Work Mechanism". In the design process of theuser service system, we have followed the COPC
standard, established e?ective and fast user feedback mechanismand diversied communication channels, such as online interaction, work order acceptance, hotline answering, uservisit reception, to continuously enhance the user service capacity.
In early 2023, AskTao Mobile collaborated with China Academy of Art tocreate digital costumes with oriental colors in the game with "traditionalChinese patterns and colors" as the main axis, showing the charm ofthe disappearing traditional Chinese patterns and colors through digitalmethods. The creation and production team went deep into Luoyang,Guilin, Beihai, Huangshan and other places, to observe how traditionalChinese patterns and colors look like in nature, and incorporated theminto the design of the game's costumes, which ultimately presented the"Chinese-inspired Fashion" in the game. The Interaction explores thecontemporary application of traditional culture, expresses the integration,inheritance and innovation of excellent traditional Chinese culture in digitalform, disseminates traditional Chinese color, pattern and dress aesthetics,and promotes cultural self-condence and self-strengthening.
As the Qixi Festival approaches, AskTao Mobile collaborates with Mr. Zhao Shuxian, an intangible cultural heritageinheritor of the craft of velvet owers, to jointly create a Qixi Velvet Flower Gift Box. This unique gift box transformslilies, symbolizing friendship in the game, into everlasting velvet owers. By leading players to experience a uniqueoriental romance while conveying blessings, it aims to promote the protection, inheritance, and innovation of theintangible cultural heritage craft of velvet owers.
Promoting Chinese traditional cultureCulture is a valuable treasure created, accumulated, and inherited by human society throughout its long-termdevelopment. The Company insists on cultural condence, actively explores the method to integrate game productswith Chinese traditional culture, and is dedicated to promoting Chinese culture to users both domestically andinternationally.
The "Chinese-inspired Fashion" featuring traditional Chinese colors, patterns and costumes in AskTao Mobile
Together with Mr. Zhao Shuxian, AskTao Mobile collaborates in
crafting a Qixi Velvet Flower Gift Box
Velvet ower made by ancient intangible
culture heritage
COPC (Customer Operations Performance Center) is a global business management and certification standard designed to helporganizations deliver superior user service and operational performance.
In addition, in order to improve the quality of customer service, theCompany has established a service quality inspection mechanism toanalyze, guide, follow up and check the defects found in the inspectionprocess. Simultaneously, the Company conducts regular training forcustomer service personnel and holds monthly service case meetings toshare typical, common, and outstanding cases. Through this, we set userservice optimization goals and elevate the team's service prociency. Thisyear, the Company was awarded the honorary title of "Top Ten ODR (OnlineConsumer Dispute Resolution) Enterprises" by the Xiamen ConsumerRights Protection Committee, and our high quality customer service hasbeen recognized by others.
2728Product Empowerment
Implementing intangible culture heritage protectionprojects public welfare projects
In 2023, YiNian XiaoYao started the cultural public welfare project of "Guarding and Inheriting", dedicated to promotingtraditional intangible culture heritage projects into daily life. This year has witnessed the successful implementationof various intangible culture heritage public welfare activities, including Cuju, paper-cutting, opera, shadow play, andmore, with a cumulative donation amount exceeding RMB 400 thousand. In the future, YiNian XiaoYao will continue topromote the integration of intangible culture heritage culture and games, allowing more young people to understandand appreciate traditional culture.Protecting and Inheriting - Cuju Culture
Protecting and Inheriting - Paper-Cutting Culture
Protecting and Inheriting - Opera CultureIn order to promote the Intangible Cultural Heritage of Cuju, YiNian XiaoYao, togetherwith Mr. Ma Guoqing (the rst batch of inheritors of intangible cultural heritage of theState) and Mr. Yu Jian (the inheritor of intangible cultural heritage of Cuju productionskills), went to Fayi Primary School in Chuxiong Prefecture, Yunnan Province, with thegamers to lead the children to learn and personally make Intangible Cultural HeritageCuju, and held a special Cuju friendship match after the completion of the production,which successfully completed the study tour. In addition, the Company donated to theQi Culture Museum RMB 100 thousand for excavation and dissemination of intangiblecultural heritage Cuju.
In order to show the unique charm of Chinese paper-cut culture, YiNian XiaoYaointroduced the in-game "Traditional Style Limited Paper-cut Skin", and invited Ms.Yang Huizi, an artist of paper-cut heritage, to create paper-cut works of Ling Rabbitbased on the prototype of the "Yue Ling Rabbit" in the game, through which theancients' pursuit of beauty and love for life are expressed. The Company remainsdedicated to the preservation and promotion of paper-cutting culture. As part of the"YiNian XiaoYao Guardian Inheritance" cultural public welfare project, a donationof RMB 100 thousand was made to the Yangzhou City Intangible Cultural HeritageProtection Center (Yangzhou City Museum of Culture) to support the inheritance anddevelopment of paper-cutting culture, as well as to enhance the skills of intangiblecultural heritage workers.
In order to pay tribute to the traditional Chinese opera culture, Yi Nian XiaoYao, inspired by the classic style of Peking opera Mu Guiying's LeadingRole, presents the theme costume "Ode to Chellona" in the game, andinvites Mr. Li Xin, an intangible cultural heritage craftsman specializing inhelmet-making. This initiative aims to immerse the younger generationin the beauty of traditional Chinese opera culture. After the event, theCompany donated RMB 100 thousand to Beijing Cultural DevelopmentFoundation for the protection and dissemination of traditional operas.
The Company donated RMB
thousand
to Beijing Cultural DevelopmentFoundation
Cuju competitions
Traditional Style Limited Paper-cut Skin
Theme fashion of "Ode to Chellona"
Ms. Yang Huizi, paper-cut heritage artist
Protecting and Inheriting - Shadow Play Culture
In order to help more young people understand andappreciate the shadow play culture, YiNian XiaoYaoinspired by the traditional shadow play, introduced the in-game accessory "Earrings · A Dream of Light & ShadowPlay", and produced theme content of intangible cultureheritage shadow play. The Company donated RMB 100thousand to Chengdu Shadow Play Museum for theinheritance and development of shadow play.
The Company donated RMB
thousand
to Chengdu Shadow Play Museum
Intangible culture heritage shadow play theme content
The Companydonated to the QiCulture Museum RMB
thousand
A donation of RMB
thousandwas made to the YangzhouCity Intangible CulturalHeritage Protection Center(Yangzhou City Museumof Culture)
2930Product Empowerment
Upholding a highly responsible attitude towards players and the game market, the Company assisted the policein cracking 20 criminal cases one after another against violations of criminal acts such as game private servers,cheats, unauthorized charging, illegal trading of game accounts. The actions led to the arrest of 167 suspectsand the implementation of criminal measures. Notably, in the eld of private servers, the Company cracked down
on and closed 102 such servers, involving a total sum exceeding RMB 200 million this year. Simultaneously, theCompany continued to dig deep into the whole chain of black and gray market, expanding the radiation surfaceof the rights protection and crackdown, including the third-party illegal charging, the fourth-party paymentplatforms, source code websites and other upstream and downstream of the black and gray production.
Protecting intellectual propertyThe Company strictly complies with the Patent Law of the People's Republic of China, the Trademark Law of thePeople's Republic of China, the Copyright Law of the People's Republic of China and other relevant laws andregulations, formulates the Administrative System for Intellectual Property, the Administrative Measures for Copyright,the Administrative Measures for Patent, the Administrative Measures for Trademark, the Administrative Measuresfor Domain Name and other internal systems, regulates the work relating to the administration of intellectual propertyprotection, builds a robust intellectual property system, and provides all-round protection for products. This year, theCompany was honored with the title of "National Intellectual Property Advantage Enterprise" by the China NationalIntellectual Property Administration.In terms of the prevention of infringement upon others' intellectual property rights, the Company has implementeda Business Compliance Self-inspection List, studied the originality of the works in terms of font, picture, music andscreen, strengthened the compliance risk inspection of publicity and promotion materials such as graphic and textcontents and video materials, and reduced the possible infringement upon intellectual property rights by the Company.Meanwhile, typical cases discovered through "self-inspection" and "traceability" are shared within the Company in theform of article push to further strengthen employees' awareness of Intellectual Property Compliance.In terms of safeguarding its intellectual property rights against infringement, the Company continuously improvesits monitoring capacity, realizes the coverage of the whole platform of independent monitoring network, conductsinfringement investigation through the monitoring system, timely discovers infringement acts, orders infringers to stopinfringement, shortens the handling cycle of infringement by means of sending letters, warnings, complaints and so on,removing infringing materials and products in a "short and quick" manner. This year, the Company has continuouslyoptimized the quality and e?ciency of the monitoring and complaint handling of infringement incidents. This year, theCompany continued to optimize the quality and e?ciency of its infringement monitoring work and complaint handlingwork, and the number of external infringement links monitored and complaints handled for the year totaled 564,412, ayear-on-year increase of 837.8%.
The Company continued to deepen the work of intellectual propertyrights protection and crackdown. This year, the Company carriedout a number of special actions to "combat intellectual propertyrights infringement", cracked down on the infringement of intellectualproperty rights such as gaming private servers, cheats, trademarkinfringement, software copyright infringement, phishing websites,unfair competition, etc., and took a variety of measures to protectthe intellectual property rights of the Company's products, vigorouslypursue brand rights protection.
The number of external infringementlinks monitored and complaints handledfor the year amounted to564,412
A year-on-yearincrease of
837.8
%
The Company cooperated with the Public Security Bureau of Wuyi County, Zhejiang Province, andsuccessfully cracked a surrogate charging case that utilized the loophole of Apple system recharging tomaliciously steal and swipe, arresting ve suspects, and seizing a number of computers, cell phones, bankcards and other items involved in the case, with the funds involved amounting to more than RMB 2 million.
The Company cooperated with the public security bureaus of Zhejiang, Hubei, Hunan, Shandong and otherplaces to successfully crack a number of cases of copyright infringement of AskTao Mobile, with more thanone hundred suspects arrested and a total amount exceeding RMB 100 million involved in the case. Thiscooperation strongly deterred the arrogance of the lawless elements, practically protected the interests ofthe players and legitimate rights and interests of enterprises' intellectual property rights.
In January 2023
From February to December 2023
Case: Comprehensive criminal crackdown on the black and graygame industry chain
3132Product Empowerment
This year, we launched the AI Programming Game Contest for all programmers and game enthusiasts in theCompany. Participants used the GS language code developed by the Company's technology center to createAI-controlled game characters, which learnt independently according to the programming instructions, clearedthe game levels, and completed the actual combat duel. Through the duel and collision of the competition, theparticipants gained a deeper experience of the application of AI technology in game creation.
AI Programming Game Contest
The Company encourages continuous innovation among its employees and is committed to increases investmentin research and development. This year, the Company filed 8 new patent applications and obtained 5 new patentauthorizations. As of the end of the Reporting period, the Company and its subsidiaries have secured 17 inventionpatents (with 18 invention patents still under review), holding 1,074 registered trademarks, 270 software copyrights, 56art copyrights, 3 music copyrights, 1 text copyrights, as well as 131 domain names.
Exploring technological frontiers
In recent years, the rapid development of Articial Intelligence (AI) technology has brought great opportunities to thegame industry, and AI technology will become an important part of the content productivity of the game industry inthe future. The Company is gradually integrating AIGC and other cutting-edge technologies into the development andoperation of its game products, with the aim of improving R&D e?ciency and optimizing the game experience. In termsof image generation for game products, the Company utilizes AI image generation technologies to generate originalart drawings and in-game icons, which saves time and resources for image production and improves the e?ciency ofgame art creation. In addition, the Company strives to advance the use of algorithmic modeling and other technologicaltools (such as AIGC) in its operational business to further improve operational e?ciency.In 2023, the Technology Center built an AI Web Hub within the Company, assembling various commonly used AImapping tools and models to promote the rapid application of AI mapping in the Company's game developmentprocess.In order to make better use of AI technology to produce high-quality games, the Company periodically organizes AIGCapplication experience sharing sessions, technical exchanges meetings and other activities.
Case: G-bits AI Programming Game Contest
Have secured
invention patents
art copyrights
music copyrights
Holding1,074
registered trademarks
text copyrights
as well as
domain names
software copyrightsWith
invention patentsstill under review
In order to strengthen the awareness of the importance of intellectual property protection among all employees, theCompany actively conducted intellectual property advocacy training such as "AIGC
Compliance Lecture" and "The Pitof Copyright Infringement, Legal A?airs Teaches You to Avoid" this year, synchronously sharing the latest regulatoryrequirements and law enforcement dynamics, and advocating at all times that the employees should protect their ownwork achievements and legally comply with the use of third-party intellectual property rights in daily work.
AIGC, Articial Intelligence Generated Content, refers to AI automatically created and generated content.
Case: Breakthrough in civil rights protection against new typesof infringementsIn March 2023, the Shenzhen Intermediate People's Court issued a judgment in the case of Leiting Game v. Xueand Zhejiang Taobao Network Co. Ltd. for infringement of the software copyright of Tale of Immortal. Xue wasthe actual operator of the Taobao online store "Tom Game", which sold Steam o?ine accounts including Tale ofImmortal operated by Leiting Game. The court determined that Xue's protable sale of Steam o?ine accounts,without Leiting Game's permission, constituted an infringement of Tale of Immortal's copyright. Xue was orderedto pay RMB 200 thousand in compensation for Leiting Game's economic losses and RMB 51,300 to coverreasonable expenses for the defense of its rights. This is the rst case in judicial practice that conrmed thatselling o?ine versions of games and accounts constitutes intellectual property infringement, which has positivesignicance and far-reaching impact on the protection of intellectual property rights in the game industry.
3334Product Empowerment
Data Ecological
Protection
V
In order to create a safe, healthy, inclusive and friendly network environment, the Company activelystrengthens the ecological governance of the contents, assumes responsibility for the protection ofminors, constantly improves the protection system for minors, and supports the healthy development ofminors. At the same time, we are fully aware of the importance of data security and privacy protectionfor users, strengthen data protection capacity in the full life cycle of data and at various stages of theproduct, continuously improve upon data security management mechanism, strengthen risk prevention andcontingency measures, and protect user data and privacy.
Content ecological governanceData security managementProtection of minors
Content ecological governance
In the era of rapid digitization, as we strive to deliver an enjoyable gaming experience for users, we are dedicated tofostering a clean gaming environment. Our goal is to establish a trusted and responsible gaming products for players.
Game content reviewThe Company strictly adheres to the Provisions on the Administration of Online Publishing Services, the Noticeon the Administration of Mobile Game Publishing Services, the Provisions on Ecological Governance of NetworkInformation Content and other laws and regulations, formulate the Content Editing and Review System, the Online
Editing and Content Self-Review System, the Game Operation and Content Self-Review System and other internalsystems. These internal mechanisms regulate the Company's compliance review of game content at an institutionallevel. The Company diligently enforces the editorial responsibility system and the requirements for content review andproofreading. The scope of relevant reviews encompasses the entire lifecycle of both R&D and operational products,guiding the Company's products into a virtuous cycle of high-quality development.
Content compliance training for publicationsCompliance editing and testingBased on content construction and incombination with the requirements of laws,regulations and moral norms relating to onlineand digital publishing, the Company conductsvarious content compliance training programsto enhance the responsibility awareness amongall employees. Except for full-time publishingand editing, the Company shall vigorouslypromote editorial education and cultivation inproduct research and development, promotionand operation stages, enhance integrated full-time and part-time education for editors, ensurethat the relevant personnel are responsible forcontent compliance review at all stages fromproject initiation of the product to publishing ofthe game, ensure compliance of the contents ofthe publication.
The Company formulates compliance testingprocess for game products. All products andversions must undergo multiple tests, includingcontent compliance, privacy compliance, datasecurity, and information security. They canonly be announced or released to the publicafter successfully passing these tests. We haveformulated relevant standards for websites,forums, advertisements and other content, andimplemented multi-level review requirementsto ensure that the content released by platformplayers is manageable and controllable. TheCompany conducts regular and irregularcontent self-inspections, special verication andother activities. We inspect and follow up thecompliance of product content after the launch,and strengthen the supervision over publishedproducts.
3738Data Ecological Protection
Data security management
At G-bits, security and compliance constitute the fundamental principles of our business. In our journey of R&D andinnovation,G-bits consistently prioritizes users' demands and expectations regarding data security, placing utmostemphasis on user and data security. While building and improving our own security management system, we alsoput e?orts to strengthen the data security management capabilities of our partners to help build a security ecosystemacross the industry.
Data security management systemIn addition to upgrading the data security management system, G-bits has also formulated and optimized internal rulesand policies, and established a special working group to strictly manage suppliers' data security, so as to e?ectivelyreduce data security risks.
Data security management mechanismStrictly observing the Cybersecurity Law of the People's Republic of China, the Data Security Law of the People'sRepublic of China and other laws and regulations, the Company has developed and updated policies covered allrelevant business lines, including the Security Protection Requirements for Key Information Infrastructure of InformationSecurity Technology, the Guidelines for Filing Standard Contracts for Cross-border Transfer of Personal Information,the Management Measures for Compliance Audit of Personal Information Protection, the Network Information SecurityManagement System and Technical Protection Measures, the User Information Security Management System,the License and User Agreement for G-bits Games,and the Website and Network Security Prevention Measures.These policies clearly dene the rules for collecting, processing and protecting users' personal information, and layinstitutional grounds for pre-event prevention, in-event monitoring and post-event follow-up.The Company has set up a special security leadership team for network security, headed by the CEO, with relevantbusiness leaders and senior technical engineers tasked with guiding and coordinating data security work under him.Sta? from the Security Department, Operation and Maintenance Department, Platform R&D Center and InformationTechnology Center comprise the Network Security Execution Management Department, working together to developand implement data security control strategies and protect the Company's data security. The team members are highlyprofessional and hold authoritative certications in the information security sector such as Certied Information SecurityProfessional (CISP), Certied Information Security Assurance Worker (CISAW) and Network Communications SecurityAdministrator.
Game content ecological governanceThe Company strictly adheres to the Cybersecurity Law of the People's Republic of China, Law of the People'sRepublic of China on the Protection of Minors, Law of the People's Republic of China on the Protection of PersonalInformation, the Administrative Measures for Internet Information Services, the Provisions on Ecological Governanceof Network Information Content and other laws and regulations, builds a work system for ecological governance andsecurity of game content. We strengthen the ecological regulatory process for content, standardize the development ofsecurity platforms, and improve the platform's collaborative e?ciency and risk prevention capacity.In order to build a strong security line and resist undesirable content, the Company has established complaint andreporting channels, including in-game customer service, public number of player service, complaint mailbox, complaintwebsite, and player service hotline. Simultaneously, various methods, such as content security platform audit, andmanual reviews, are employed. Through the implementation of dynamic management, the Company aims to create aclean online environment.Content ecological governance system
Top-level design and team development
Normative content ecological governance system
Special promotion and optimization of tool construction
The Company has established an information content security management group, led directly by the
General Manager's O?ce, coordinating work across various products and technical departments to improve
the top-level design of the Company's compliance system.
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, the Measures for the Operation of Strategies for the Hierarchical and
Categorized Management of the Ecological Governance of Network Information Content, the Self-review
System for Game Operating Content, the Self-review System for Online Editing Content, the Follow-up
Comment and Content Ecological Management System, to strengthen internal constraints.
Continuously enhance the construction of content security platform tools. Currently, the image recognition
systems have been implemented across relevant business areas of the Company. Simultaneously, internal
early warning and relevant tools shall be prepared in advance. The Company has set up special emergency
response personnel to be on duty around the clock to respond to various emergencies, improve the e?ciency
of emergency drills and the emergency response capacity of the Company, carry out special resumption
optimization on a regular basis, and further build a rewall for the information security of the platform.
3940Data Ecological Protection
Data lifecycle management
For network security, G-bits strictly complies with the Management Measures of Personal Information Protection,the Data Security Protection Management Policy, the Data Classification and Grading Policy, the Data SecurityManagement Measures, the Data Collection Security Management Policy, the Data Storage Security ManagementPolicy, and other internal regulations. Based on these, we have established a data protection system with classied
and graded user data, and three lines of defense, holding fast to the red line of user data privacy protection.
Three lines of defenseTo guarantee data security, the Company has built up three lines of defense, and established appropriate and e?ectiveinternal data management policies and processes for data lifecycle management, protecting the security of users'privacy and data with concrete actions.
The rst line of defense,"defense-in-depth system in
layers"
The second line of defense,"security monitoring and attack/
defense drills"
?The third line of defense,"security test and audit"The Company has formulatedappropriate management andtechnical solutions for thenetwork, host and applicationsystems, respectively, suchas physically isolating thecore network segments fromother networks; deploying self-developed intrusion detectionsuite on host systems forperiodic security scanningand baseline checks; strictlycontrolling access by third-partyapplications, and installing WAF(Web Application Firewall),anti-DDoS (Distributed Denialof Service Attack) and otherproducts to reinforce securityprotection for the Company'sapplications and systems.
The independently developedsecurity inspection systemregularly and automaticallyscans the Company'sbusiness systems for securityvulnerabilities, which maximizesthe exposure of securityvulnerabilities in businesssystems, and shortens the timewindow for detecting securityvulnerabilities. Additionally, weconduct regular penetrationattack tests and organizecompany-wide network securitydrills, including but not limitedto phishing emails, networkattack & defense, to e?ectivelyraise all employees' awarenessof security.
We regularly organize securitytests and audits on datasecurity protection work forsupervision purposes. TheAudit Department also conductsspecialized audits to check thee?ectiveness of the rst andsecond lines of defense, andurges the relevant executiondepartments to rectify anyproblems detected in a timelymanner.
Conduct background investigation and security qualication review, comprehensivelyevaluate the candidates' data security capabilities, and select suppliers with better datasecurity performance after evaluation.
Sign the data security agreement or security responsibility commitment letter with thesupplier, specifying the supplier's data access, security responsibilities and necessarysecurity protection measures, as well as responsibilities and penalties for violations;Manage the supplier's data access account, assigning job responsibilities and accountprivileges based on the "minimum" principal;Control and manage key processes where the suppliers are involved, such asdebugging of collection system interfaces, desensitization and destruction of sensitivedata.
Define audit requirements for the security of software development kits (SDKs),conduct regular security tests on existing suppliers and their business partners, andmonitor potential risks in the supply chain;Conduct third-party security assessments of purchased systems, identify productvulnerabilities via attack & defense, and require suppliers to correct security issuesidentified. For suppliers who still fail to meet the Company's requirements afterremediation, the Company will terminate its relationship with them. Even after thepurchased system goes live, the Company will also continue to track its vulnerabilities,and include the system in the regular security inspections and manual penetrationtests, assessing the security of the system continuously and comprehensively.
Supplier data security managementFor the information security management of suppliers, the Company has formulated the Management Measuresfor Third Party Network and Information Security, and has established a supervision and management mechanismfor supplier data security risks. We strictly provide suppliers with data beyond the contractual purpose and scope,supervise their reasonable use of data, and incorporate data security management requirements into supplieradmission, cooperation, audit, and withdrawal processes, so as to strengthen the security, availability and condentialityof suppliers' data services.
Supplier
Admission
The Company undertakes a range of initiatives to minimize the risk of data securitybreaches, including detailed reviews and assessments, secure destruction or return ofdata, recovery of all access rights and related resources, and audits of vendor logs andusage records.
SupplierCooperation
SupplierAudit
SupplierWithdrawal
4142Data Ecological Protection
The Company strictly controls the security access of third-party systems. For systems that do not meet the securityrequirements, the supplier is required to make rectifications before launching. For the self-developed system, theCompany formulates the corresponding security checklist, while the R&D Department rst carries out the security self-inspection and the Security Department conducts a secondary security review of the self-developed system to improvethe security level of the application system, and ensure the security of user data.
Application systems
Data Usage and Sharing
Data Destruction
The Company discloses the use purpose and method of the user's personal information in the user privacy policy, limitsthe use to the scope necessary for the operation of the product, and obtains the consent of the player. At the sametime, the internal personnel of the Company must comply with the relevant rules when accessing data, as follows:
The Company complies with the process, technical methods, authority and retention of destruction records clariedin laws and regulations. For processed data, the Company conducts regular checks, destroys and anonymizes ifnecessary, securing the holistic approach for data security management.
Di?erent network segments are divided based on actual business needs and security levels, and the core networksegments are physically isolated from other networks to strictly control access of equipment to the network. Firewallis also deployed at the network boundary, and security policies are configured in the firewall to detect abnormalbehaviors. For highly reliable network attacks, corresponding network communication will be directly blocked by thedevice. The production network on the public cloud uses security groups and elastic networks provided by the cloudservice provider to e?ectively control network tra?c.
Before being installed, all devices within the Company undergo baseline conguration. In-o?ce mainframe equipmentis only allowed to connect to the network after ensuring the successful deployment of host security protection and dataleakage prevention software. Additionally, in-o?ce mainframe equipment deploys self-developed intrusion detectionsuite, and the host on the public cloud deploys the host security products of the cloud service provider. The intrusiondetection suite and the host security products periodically perform security scanning and baseline checking of theaccess devices.
Network communications
Host devices
Strictly controlling the retrieval and analysis of plaintext data, a implementing a secondary encryptionand obfuscation process to reduce data identiability;Restricting data access rights, and keeping records of data access and data manipulation;Separating the code from on-line environment by encrypting and storing all data in the database,which is only available at G-bits;Separating the data logic from keys by setting access limits according to positions and retraining theR&D sta? from accessing the on-line database;All transmission of sensitive data require approval from the superior leader.
A holistic approach to data security
Data Collection
Data Transmission
Data Processing
The Company manages data by its category and materiality, and stipulates security strategy on specic data group.The Company encrypts the operational data of games, including the private data of players, the business data ofgames; and strengthens authorizing management of o?ce operational data, including game code data and generalo?ce data. And the code data of core projects is conned within the production of the Internet R&D. In addition, theCompany has stepped further to improve the safety management throughout the data lifecycle. Through this holisticapproach, G-bits has managed to decrease the safety risks of the internet information by strictly standardizing the datamanagement in all sectors including data collection, transmission, processing, storage, usage and destruction.
The Company rigorously adheres to the national standard of Information Security Technology - Basic Requirementsfor Personal Information Collection in Mobile Internet Applications (Apps)(GB/T 41391-2022), and strictly prohibits anycollection of service-irrelevant data resources and private information. Before collecting any user's personal privacy
data, clear notication is provided, specifying the data type, purpose, and destruction method. Additionally, users aregranted the right to independently access, modify, or delete their personal information. Adhering to the principle ofcollecting user information on a legal, open and minimal basis, the Company minimizes the data collection and storage.
G-bits attaches great importance to the confidentiality of the transmission. The Company has deployed anti-DDosservers and WAP on the core systems and set ow surveillance and the early warning at the entry of the system. Oncethe warning is triggered, the system will identify it is caused by a hacker attack and intercept accordingly. The Companyensures data safety, intactness and condentiality by encrypting the transmission channels and restricting accesseswhen uploading the users' private data.
The Company always removes sensitive individual information, strictly limits the usage of users' information, andcollectively archives it after using. To better ensure the security of data processing, the Company has set limitsrespectively on data access according to business workow and positions, maximizing the security of users' private datawithin the Company. For instance, the R&D personnel in charge of coding encryption and decryption programs are denieddirect access to the encrypted database, the key to which is kept by the O&M personnel.
Data Storage
Taking seriously the encrypted transmission, storage of sensitive personal information and access control, theCompany adopted di?erent storage strategies for di?erent information based on types and privacy levels. To betterencrypt and store user data, the Company has adopted the secure encryption algorithm and the key mechanism. Theencryption algorithm and keys are managed separately by di?erent departments to ensure that the data cannot bedecrypted and analyzed by any single party.The Company has established a defense-in-depth system in layers to ensure the security of data computation,processing and storage.
4344Data Ecological Protection
Risk prevention and contingency plans
The Company has established the Network and Information Security Plan to enhance management of networkand information security emergencies. We have claried personnel in charge at all levels to e?ectively prevent andcontrol information security emergencies and minimize corresponding impacts, guaranteeing the stable operation ofinformation systems and networks. We also require all department to complete periodical o?-site and o?-host backup.For the primary backup room, the Company implements periodically the logic back-up of the user core data. Theencrypted data is synchronously updated to and stored in other machines. Meanwhile, it is stored in the cloud databaseto prevent data damage and loss.The Company also stipulates that all system users must perform operational tasks by logging into the host systemthrough a bastion host and using multi-factor dynamic code authentication to ensure the authenticity of their operations.The bastion host records and captures the actions of system users, conducting security checks across various layerssuch as network, system, applications, and databases. The records are stored in real-time on separate machines,ensuring that users or administrators cannot arbitrarily tamper with or delete audit logs, providing authenticityassurance for subsequent security audits and event tracing.Development of data security awarenessThe Company conducts specialized security training for employees from di?erent stages, di?erent departments anddi?erent positions to continuously strengthen the data security awareness of all employees. For new employees, theCompany disseminates information security awareness through promotional emails, utilizing scenarios, cartoons, andsecurity principles to convey knowledge on information security. Additionally, for all employees and suppliers, theCompany's internal online learning platform has launched the "Information Security Awareness Training" video course.This initiative guides all employees, as well as suppliers, to learn the training content related to the information securityanytime and anywhere.To consistently raise employees' awareness of data security, the Company holds regular training related to datasecurity. Additionally, it encourages employees to participate in external training on data security. During the ReportingPeriod, 10 technical training sessions were conducted independently within the security department, covering theattack and defense of security technologies and vulnerability mining.Additionally, to help employees develop healthy mindset of the internet security and urge them comply with the internetsecurity principles, the Company conducts related training regularly. During the Reporting Period, the Company carriedout 2 thematic trainings on email security, Trojan Attack and other topics; at the same time, the Company carried outinformation security awareness promotion for all employees on a regular basis and carried out data security relatedpromotion in the employees' onboarding emails and real-time work communication tools.
technical training sessions were conductedindependently within the security department
The Company carried out
thematic trainings on email security,
Trojan Attack and other topics
Data security monitoring and improvement
G-bits rmly believes that robust data monitoring serves as a cornerstone for ensuring data security and safeguardingpersonal information. Through compliance inspection, security audit on internal and external data, risk preventionand contingency plans, a healthy and safe data environment has been established within G-bits with security risksprominently lowered.Conducting specic compliance inspections
Conducting internal and external security audits
To better consolidate users' data security, the Company abides by the Cybersecurity Law of the People's Republicof China, the Data Security Law of the People's Republic of China, and the Personal Information Protection Law ofthe People's Republic of China. In 2023, the Company accomplished the specific compliance audit on the internetdata security and application in telecommunication and internet industry in Shen Zhen conducted by Shen ZhenCommunications Administration. The audit targeted at the security system of the internet and data, internet securityprotection, and protection of the data security and personal information. The Company also employed a third partyfor the on-site specic audit. The party conducted security inspection throughout the data lifecycle by scanning code,the sensitive data and loopholes of the interface, and the safe storage of the data before recognizing and di?using thesecurity risks.In terms of data security compliance management of suppliers, the Company regularly conducts security reviews of itssuppliers and continuously pays attention to the status of systematic compliance audits conducted by itself. The aim
is to examine that whether it aligns with the relevant laws and regulations and the contract requirements. During theReporting Period, the purchased public service system of Alibaba Cloud had passed the independent third-party audit,which was performed strictly in accordance with the ISO20000 and ISO27000. After the audit, the third party releasedthe Report on Alibaba Cloud System and Organization Control
(SOC
).
To better identify data security risk and evaluate the data security managementmechanism, the Company conducts internal data security audit on an annualbasis. The Company urged the relevant executive department to rectify theexposed loopholes. During the Reporting Period, the Security Departmentand the Audit Department conducted four security audits. The content coveredthe inspection of system access control, password policy, and data backup.Furthermore, we internally reviewed resource management, version update,and data backup, permission management to promptly identify potential securityhazards.Besides, the Company actively conducts external independent audits.Annually, the Company invites third-party assessment organizations toconduct comprehensive audits, including gap analyses on the physical security
environment, secure communication networks, and regional security boundaries.The security evaluation serves as a benchmarking, comparing the internalsecurity management, technology system with the best practices from peers, thegeneral standard, thus e?ectively improving the security level of the Company.During the Reporting Period, the core information systems of the Companyand its subsidiaries have been archived as the third level of protection of theinformation system security.
Third level Security ofInformation System Protection
Certicate
4546Data Ecological Protection
Enhancing the Parental guardian Platform
Unobstructed Channels for Minor Complaints andReports
The Company continues to enhancing the development ofa the parental guardian platform, ensuring the supervisionof minors' gaming behavior. Upon linking a minor's gamingaccount, parents will receive real-time SMS notificationsfor the minor's logins and in-game transactions.,Additionally, they can easily enforce restrictions on theminor's account, preventing gameplay and restrictingtop-up activities. Concurrently, the Company is refiningthe customer service infrastructure, addressing parentalinquiries promptly. This initiative aims to acquaint parentswith the platform's operational procedures and assistthem in conguring the minor mode across various mobiledevices, fostering the healthy growth of minors.
The Company consistently intensies e?orts in safeguarding minors, further rening the development of user serviceareas, and the mechanisms for complaints and reports. Dedicated channels have been established to facilitate minors'complaints and reports. The Company has made public a specic email address for complaints and reports related tominors (gmweicn@leiting.com.cn) on the Leiting game website. Additionally, a designated "Reports Involving Minors"page/menu option has been set up on the official account of the Leiting Game Service Center on WeChat. Thisunderscores our unwavering commitment to a "zero-tolerance" stance against issues that compromise the legitimaterights and interests of minors. Concurrently, we proactively adjust our focus on the protection of minors based on theirgaming activities, implementing relevant measures promptly.
Parent guardian platform of Leiting Games
Guidelines for minors-related reporting on theo?cial website of Leiting Games
Attach great importance to topicsinvolving minors and rigorously handlestatements that violate regulations or aredetrimental to minors;Enforce strict limitations on minors usingadult identities to participate in games,analyzing, assessing, and addressingsuspected minor accounts throughvarious channels;Continuously update and iterate rules forhandling minor incidents to ensure thatthe measures taken are compliant andreasonable.
Protection of minors
Young people represent the future of the country, and the Company attaches importance to the healthy growth of youngpeople. Safeguarding the physical and mental well-being of minors is considered an indispensable responsibility of theCompany. The Company rigorously adheres to the requirements outlined in the Law of the People's Republic of Chinaon the Protection of Minors, Cybersecurity Law of the People's Republic of China, Regulations on Network Protectionof Minors , the Notice on Preventing Minors from Indulging in Online Games, and the Notice of the State Administrationof Press and Publication on Further Strict Management and E?ective Prevention of Minors from Indulging in OnlineGames, Opinions of the State Council Leading Group for the Protection of Minors on Strengthening the Protectionof Minors and other laws, regulations and relevant standards. Continuous e?orts are made to deepen the protectionof minors by strictly implementing requirements such as real-name authentication and addiction prevention. TheCompany consistently enhances age-appropriate notications and content restrictions for games, continually optimizesworkows and protective measures, and advances the implementation of a dynamic inspection mechanism.Enhancing the system for minors protection in onlinegames
The Company takes proactive steps to establish and rene the protection system for minors in online games, improvingthe e?ciency of both machine and manual identication. Strict measures are implemented to address issues like onlinebullying and internet addiction, preventing the dissemination of content that may be harmful to the physical and mentalwell-being of minors, including vulgar and violent material. Since the State Council's announcement of the Regulationon the Protection of Minors in Cyberspace in October 2023, the Company has organized multiple learning sessionsto study the regulation's contents. Additionally, the Company has aligned its work functions with the requirements ofthe regulation. This year, the Company conducted 4 special clean-up initiatives focusing on topics such as studentvacations, online hostility, and cyberbullying. Furthermore, seven sessions were dedicated to optimize the strategiesfor enhancing the protection system for minors.
SchematicDiagram of theProtection System
of Minors on theLeiting Games
Platform
Optimize the real-name authentication and anti-addiction system of the operation platform
Improve game-age-appropriate tip anddescriptions of gamecontent restrictions Age-appropriate tip
Improve the ecosystem governance capacity of theonline information content
Consolidate minors-relatedcomplaint and reporting
channel
Further upgrade parent guardian
platform
4748Data Ecological Protection
Talent Attraction
and Development
VI
G-bits rmly believes that employees are the Company's most valuable assets. Embracing a people-centricdevelopment philosophy, we strive to create a diverse, equal, and comfortable working environment. Wehave established a robust system to safeguard employee rights, developed a competitive compensationand performance system, and built effective channels for communication. Additionally, we providemultidimensional employee benefits and humane care to enhance the happiness of each employee,laying a solid talent foundation for the Company's sustainable development. Simultaneously, we considerit our responsibility to facilitate the comprehensive development of our employees. Guided by the beliefin cultivating talents with an innovative spirit, we have established comprehensive and diverse trainingprograms and talent development pathways, aiming to grow together with our employees.
Talent development planProtection of employee rights and interestsMaintenance of smooth communication channelsEmployee benetsInnovation in talent cultivationSupporting employee development
Talent development plan
Protection of employee rights and interests
G-bits has established a comprehensive and sustainable talent ecosystem aligned with industry trends and our specicbusiness requirements. The Company formulates the direction of talent development based on assessments of talent
gaps, demand planning, and the status of core talent reserves. This strategic approach ensures a rich pool of talentresources, meeting the sustained development needs of the Company.We prioritize recruiting suitable and high-potential talents aligned with the Company's business strategy during therecruitment and selection process. This ensures a strong t between employees and the Company, fostering teamdiversity and collaboration. Additionally, we actively unleash employees' potential by assigning them appropriate rolesand responsibilities, providing ample space for talent to ourish. Employee development is a key focus, and we tailortraining programs for different talent types, considering the characteristics and development of various businesses
and projects. These multidimensional training initiatives aim to support business breakthroughs in team management,talent motivation, and cultural development. The Company has established a highly competitive compensationsystem, featuring a bottom-up project approval mechanism, an open competition mechanism for key positions, a talentrotation mechanism, and diverse incentive plans as promotion paths. These measures o?er outstanding talents moreopportunities for development, contributing to the overall dynamism of the organization.We periodically evaluate our internal talent map to pinpoint strengths and weaknesses in both the quantity and qualityof our talent pipelines. Additionally, we consistently enhance our competitiveness through rened talent strategy andmanagement, aiming to establish a robust foundation for the Company's sustainable development.
At G-bits, we strictly comply with the laws and regulations and international practices such as the International LaborConventions, the Labor Law of the People's Republic of China and the Labor Contract Law of the People's Republic ofChina. To protect the legitimate rights and interests of employees, we also adopt a robust talent management systemthat aligns with our sustainable development goals to ensure that our employees are treated equally and fairly.
Employee recruitment
Employee remuneration, performance and feedback
The Company always upholds the principle of fair and just employment when recruiting talent. In particular, theCompany does not tolerate any form of discrimination in employment, and is committed to creating an inclusive andfair workplace for employees regardless of gender, nationality, age, race, ethnicity, religion, sexual orientation, familystatus and disability.To eliminate all forms of child labor and forced labor, we strictly abide by the Law of the People's Republic of Chinaon the Protection of Minors, Regulations on the Prohibition of Child Labor and other relevant laws and regulationsand have formulated internal management systems such as Management Measures for Labor Contracts. Meanwhile,during the conclusion of a labor contract, the Company strictly verifies the employee's identity to ensure that noincidents of employing child labor occur. All employees are employed voluntarily and of their own free will as theCompany enters into employment contracts with them on an equal and voluntary basis. During the Reporting Period,the Company had no violations in relation to human rights.
In line with laws and regulations such as the Labor Contract Law of the People's Republic of China, the ProvisionalRegulations 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 the Management Measures for LaborContracts, and the Management Measures for Salary and Benet to establish a remuneration package competitive inthe industry for employees.The Company's remuneration package consists of basic salary, performance-based compensation, bonus, subsidy,benet and others. We develop a multi-dimensional evaluation framework for employees' performance. Employees aregiven face-to-face feedback on their daily performance and progress toward preset targets regularly.The Company has also established a condential channel for employees to complain about their performance results.For any doubt about the performance assessment result, employees can le a complaint anonymously through thecomplaint channel. Relevant management personnel will communicate with the assessment personnel in accordancewith the feedback to help them optimize the performance management method.
Contributing to diversification and equalityG-bits continuously strives to create a healthy, diversified and equalized workplace. We abide by the Law of thePeople's Republic of China on the Protection of Women's Rights and Interests and other laws and regulations. We
guarantee equal pay for equal work, and ensure an equal, inclusive and free work environment free of discriminationbased on religion, gender, age or disability for all employees.
Following a zero-tolerance attitude for discrimination and unfair competition in any form, G-bits iscommitted to creating a safe, equal and diversied working environment for all employees.
The Company has a zero-tolerance policy towards workplace harassment in any form, including but notlimited to o?enses, abuse, gender-based or race-based disparagement and sexual harassment.
Anti-discrimination and unfair competition
Anti-harassment
Through diverse recruitment channels, we strive to build a stage for the excellent players in the industry to bring outtheir talents. The Company has formulated internal management systems such as the Passing a Probation Period andManagement Measures. During the recruitment, we follow the "open and fair merit-based selection process that targetsinternal candidate first" and develop a specialized recruitment assessment tool. Excellent candidates who are inconcert with the Company's philosophy are selected by interviews and written examinations. If there is interest-basedrelationship (such as kinship and the relationship between a referee and a referrer) between the interviewee and theinterviewer, the interviewer will not be involved in any part of the interview.By the end of the Reporting Period, G-bits had 1,447 full-time employees.
5152Talent Attraction and Development
We also prioritizes the protection and support of the legal rights and interests of our female employees. We care aboutthe physical and mental health of female employees by providing a series of separate rights and interests and welfarefor them, such as special vacation, health lectures and special holiday activities.
Health lecture on "Women's Day" in Shenzhen o?ceAfternoon tea on "Women's Day" in Shenzhen o?ce
Believing that diverse minds can inspire innovation, the Company continues building up a diversied team of talentwith di?erent backgrounds and di?erent professional specialities.
Maintenance of smooth communication channelsG-bits strives to establish diversified communication channels for employees. Any employee can give feedback onmanagement opinions and suggestions at any time, which will be followed up and resolved by the human resourcemanagement personnel in time. In addition, the Company conducts an annual 180-degree assessment for employees.Evaluation and feedback opinions on the management personnel are collected from their direct superiors andsubordinates, and then passed on to the evaluated management personnel to help them improve their management."Founder Meetup" events
"Little G Listening" cultural interview activities
Corporate culture group meetings
All employees can ask questions that they are interested in, give opinions or make suggestions condentially or intheir real names. After collecting and summarizing the questions, we organize a "Founder Meetup" event every two orthree months, in which the Company founder answers each of the questions. In this way, we build a bridge for smoothcommunication. During the Reporting Period, the Company held a total of 4 “Founder Meetup” activities, and 177questions were collected and handled, including 77 anonymous questions. In addition, the Company published threeposts related to the "Founder Meetup" event through its internal platform, with a total of 2,703 views.
The Company regularly organizes "Little G Listening" interview activities. By listening to the employees' voices, theCompany understands their opinions and concerns, and strives to develop an open and free culture for employees.The Company adopts an "Active + Passive" approach to build multiple channels at di?erent levels and in all aspects,enabling employees to give voice to their thoughts and participate in management. Employees are encouraged tocommunicate sincerely with the Company, and put forward reasonable suggestions for the Company's managementand development. During the Reporting Period, the Company organized a total of 4 batches of "Little G Listening"cultural interviews, with the participation of 48 employees.
The Company regularly holds corporate culture group meetings to convey the connotation of corporate culture, andallow employees to have a clearer understanding of the values advocated by corporate culture and the way of doingthings through the display and discussion of typical cases. During the Reporting Period, the Company organized a totalof 11 corporate culture group meetings, with 321 participants.
“Founder Meetup”events
Questions werecollected and handled
Published
posts related to the "FounderMeetup" event throughinternal platform
views
With a total of
2,073
Management
By gender
75.00%
25.00%
MaleFemale
68.62%
31.38%
MaleFemale
R&D personnelNon-R&D personnel
≤ 3030 - 50
The Chinese MainlandHong Kong, Macao andTaiwan regions of ChinaOverseas
99.10%
0.41%
0.48%
Master's degree and aboveBachelor's degreeJunior college degree and below
69.25%
16.24%14.51%
59.09%
40.91%
64.06%
35.94%
By genderBy age group
By academicqualication
BygeographicalregionByprofessionals
5354Talent Attraction and Development
Employee benefits
We provide all employees with benets and care in respect of health, life and nancial support to help them maintainbetter work-life balance. We accompany employees and their families in different stages of life, so as to enhanceemployees' sense of happiness, achievement and belonging.
We are committed to safeguarding the physical and mental well-being of our employees by implementing a range ofhealth management initiatives, aiming to enable each individual to work and live in a state of positivity, happiness, andwellness.
Protecting employees' health
Annual medical examination service for employeesWith the concept of caring about employees' health in mind, we arecommitted to providing employees with more comprehensive healthcare services. We offer all employees a comprehensive medicalexamination each year, and regularly invite doctors to interpret reportsindividually for each employee in the Company. Thus, we make sureemployees are fully aware of their health status. During the ReportingPeriod, our investment related to employees' medical examinationstotalled RMB 1,362.9 thousand.
Mental health counselling for employees
The Company continues to pay attention to the mental health of its employees, and has set up the online platform"G-healing" (mental health counselling desk) to help employees reduce the psychological pressure and emotionalburden they face in their daily work. At the same time, the Company opens up psychological counselling appointmentchannels for employees in Xiamen, Shenzhen and Guangzhou, and screens qualified third-party psychologicalcounselling agencies to provide one-on-one psychological counselling for employees, and the psychological counsellingcosts incurred in the counselling process are uniformly borne by the Company. During the year, the Company's threeoffices in Shenzhen, Guangzhou and Xiamen were used for EAP psychological one-on-one counseling expensestotaling RMB 236.4 thousand. In addition, the Company also provides employees with online mental health courses anda wealth of group counselling activities to help people relax and reduce stress, and advocate a healthier way to workand live.
Online Mental Health Courses
Online mental health courses
"Correct Understanding of Counseling""Dealing with Stressful Communication withLeaders: Identifying the Sources of Pressure""How to Quickly Integrate into the WorkplaceAfter Recruited From the Campus""Live as Yourself and Grow with Experience""Get These Communication Skills to Communicate E?ciently without Meeting Di?culties"
"Fear of Making Mistakes Increases the Likelihood ofErrors? Overcoming Fear for Improved Performance""How to Break Through the Confusion of
Career Development""See Your Own Strengths, Refuse Self-Denial"
"A Correct Understanding of Procrastination""Correct Understanding of Vacation Syndrome""Positive Thought Meditation - Explore Yourself
in
Positive Thoughts, Relax and Relieve Stress""Methods of Self-Regulation: Meditation"
"The Di?erence Between Depressed Mood and Depression"
"Correct Understanding of Social Phobia and
How to Break Through""Insomnia Treatment""Methods of Emotion Regulation""Emotional Relief and Stress Management"
"How to Recognize and Adjust to Emotional
Strengths""Attachment Types and Intimate Relationships"
"How to Handle Intimate Relationships""Communication in Intimate Relationships"Our investment related to employees'medical examinations totalled RMB
thousand1,362.9
G-bits welfare
? Monthly funding fordepartmental activities? Monthly lm viewingactivities? Company canteen? Shuttle buses? Gymnasium? Festival gift? Paid annual leave? Annual medicalexamination
? Housing subsidies? Interest-free housepurchase loan forve years
? Internal trainingsharing? External trainingfunds
? Wedding gift? Maternity gift? Kindergarten (private)tuition subsidies? Paternity /maternityleave? Parental leave? Breastfeeding leave? Supplementarycommercial insurancefor employee's children
? O?-site onboarding
transition hotel? Insurance andhousing fund? Supplementarycommercialinsurance
OnboardingDaily lifeHousingGrowthMarriage and Childbearing
Career Development and
Growth
Self-Regulation and StressRelief
InterpersonalRelationshipManagement
5556Talent Attraction and Development
Support for employees' exerciseEmployee health and nutrition assurance
Promotion and dissemination of health knowledge among employees
We help employees maintain good physical conditions by organizing a varietyof sports events. We have set up several sports and tness clubs in all o?ceareas, regularly hold entertaining sports events such as badminton, basketball,and marathon competitions. We also provide rewards to motivate employees.Furthermore, we have established gyms in workplaces, which are equipped withfitness equipment such as treadmills, elliptical machines, steppers, climbingmachines, spinning bikes and table tennis tables. The equipment is availablefor employees at any time, satisfying their daily exercise needs. We regularlyorganize experiential sports courses such as yoga on mat, Frisbee games, fat-burning boxing and yoga for shoulder and neck so that our employees can enjoythe healthy activities in their leisure time. To encourage the communication andsharing on health topics among employees, we have established a sharingsession, the Health Master. We help other employees develop good exercisehabits by inviting certain employees to share their rich fitness experiences.During the Reporting Period, the total investment related to the Company'semployees' sports and exercise amounted to RMB 1,121.5 thousand.
The total investment relatedto the Company's employees'sports and exercise amountedto RMB
thousand1,211.5
Ancillary gym in the o?ce areaBadminton club activity
Fun sports events
We place a signicant emphasis on the daily diet of our employees. The ingredients used in our cafeteria are directlysourced by our logistics personnel, who also craft customized, healthy meals to ensure employees enjoy fresh and safedishes. In addition, we ensure clean and hygienic tableware by regularly sending the tableware used by employees tothird-party institutions for testing.
A lecture on eye protectionA lecture on shoulder and neck relaxation techniques
We attach importance to the dissemination of health knowledge. We convey the concept of health in a variety of waysto encourage employees to develop healthy lifestyles and work habits. In 2023, we held 9 health lectures, coveringdiverse topics such as women's health, shoulder and neck relaxation techniques, family education, eye protection,sub-health and nutritious diet. Employees improved their health protection awareness through the health lectures.They also received practical health instructions to maintain a good lifestyle and work status. Besides, we sharehealth information with employees through internal communication channels and social platforms, including practicalsuggestions on nutrition, sports and mental health. We are paying increasing attention to employees' health to helpthem better manage their personal health and improve the quality of work and life.
Flexible work arrangements for employeesFaced with extreme weather conditions such as typhoons and rainstorms, G-bits takes into full consideration boththe weather and the safety of its employees' commutes. The Company has adopted a flexible working approach,allowing employees to choose between working in the o?ce or remotely based on real-time conditions. Additionally,the Company provides employees with the option of flexible working hours, enabling certain staff members toautonomously arrange their work hours according to their specic job requirements.
5758Talent Attraction and Development
AED equipment in the workplaceFire Safety Equipment in the workplace
Regarding the safety of our employees as our top priority, we are committed to building a secure and healthy workingenvironment for them. We equip all workplaces with automated external defibrillators (AED) and fire extinguishingequipment and conduct regular rst-aid training. During the Reporting Period, we organized two sessions of rst aid
training and participated in 3 safety inspections.
The Company practices humanistic care and consistently creates a heart-warming environment for employees. TheCompany pays close attention to employees' needs, innovates and improves the methods of humanistic care. TheCompany also organizes diversied activities to ensure that each employee can feel warmth and care in the Company.The Company organizes and carries out collective movie watching activities every month, which can provideemployees with easy social opportunities, expand employees' horizons, and help employees relieve work pressure.The Company organizes e-sports competitions to enrich the spare time life of employees while providing a platform forteamwork and competition and enhancing team cohesion.In addition, the Company organizes team building events for all employees from time to time. This year, the Companyarranged special activities for holidays such as Lantern Festival, Women's Day, Dragon Boat Festival and InternationalChildren's Day. We prepared holiday gifts and afternoon tea snacks for employees and shared happy moments withthem. During the Reporting Period, we also organized a family open day, inviting family members of employees to visitthe Company, enjoy lunch together and participate in on-site interactive games, which enhanced the understanding ofemployees' family members about the Company, and enhanced the sense of belonging of the Company's employeesto improve employee satisfaction.
We also prioritize the physical health of our employees. We conduct regular cleaning of air conditioning units andengage third-party testing services to ensure the quality of drinking water in the o?ce. Before any new o?ce is opened,formaldehyde tests are conducted to ensure a safe working environment. Furthermore, in our commitment to providinga comfortable workspace, each employee is equipped with an ergonomic o?ce chair.
Building a secure environmentEnriching leisure activities
Women's Day Event
International Children's Day EventFamily Open Day Event
Dragon Boat Festival Event
5960Talent Attraction and Development
At the Mid-Autumn Festival, the Company organized a "Mooncake Game" event, a national intangible culturalheritage, for employees. The event created a joyful and harmonious festive atmosphere that promoted culturalinheritance and exchange, while strengthening bonds among employees.
Case: "Mooncake Game" at the Mid-Autumn Festival
2023 Mooncake Game
G-bits Employee Training System
Talent incentive
Innovation in talent cultivationG-bits places significant emphasis on the development of each employee,continually refining its training mechanisms. This year, the Companyestablished internal management policies such as the Training ManagementMeasures, which standardizes the responsibilities of training managers,internal and external training processes, and other training mechanisms.The Company has launched diversified training programs to meet thetraining needs of di?erent employees. We have di?erent types of training foremployees like professional competence training, fresh graduate training,leadership training, among others. Such training may take various forms, suchas a combination of "Internal + External" and "Online + O?ine" courses. Thisyear, the Company carried out a total of 168 training sessions with 504 traininghours, and a total training investment of RMB 3,526.8 thousand.
Management
G-bits Professionals
G-bits Recruits
All Employees
Facilitate organizational growth
Empower business success
A total training investment ofRMB3,526.8
Game producer seminar
Advanced leadershipdevelopment training
Leadership developmenttraining for newlypromoted managers
Operations managementcase study weeklyseminar
Thematic managementsalon eventGame Development Sequence Study
Map
X-Fan er publicsharing
Business-specictraining program
G-bits Q&ACommunity
Experience in R&D
General training: all-round enhancement of competence, covering thinking training, professional skills development,
workplace communication, use of o?ce software, etc.Knowledge Base: Help Employees nd what they need for work anytime and anywhere, and view the experiences shared
by various professionals
Campus RecruitsSocial RecruitsSkilldevelopmenttraining
Careertransitionlecture
Introductionto the gamesindustry series
Mini Gamedevelopmentcompetition
Processes/systems series oflecture
Corporateculture
JobPracticingExperiencesharing session foremployees in thesame position
ProgramPlanningPlanning Fan erdata analysis
Planning
Valuable examples ofR&D experienceProgram Fan eruser research
Program
Business ReviewMeetingArt Fan ermarketing
Art
…Operation Fan er…
OperationTesting
JuniorEmployees
Sequenced and targeteddesignLearning lecture coveringmiddle and junior levelemployeesHelping employees toimprove theirprofessionalcompetenceMid-levelemployees
thousand
To motivate employees and boost their creativity, the Company has implemented several effective incentivemechanisms. In October 2020, we launched a share-based incentive plan to grant 1.00% of our total share capital toemployees. The incentive plan targets all core technology and business employees of the Company, representing 6.66%of the total workforce for the year.
The performance of employees is evaluated on a regular basis, and the high-performing employees will be providedwith material and moral incentives. The Company explores the growth cases of personnel at di?erent levels for sharing,and strengthens the positive drivers of team growth.
6162Talent Attraction and Development
The Company offers employees various types of job-specific development training. Employees are provided with
appropriate training and learning resources based on their job responsibilities, professional needs, and preferences.The Company organize general skills training for employees to help them master basic skills and improve theoverall business skills of teams. Besides, we provide training in technology, planning, art, and other aspects of gameproduction to enhance the professional and innovation skills of our employees. We also provide product launch supporttraining to improve collaboration across product teams and thus ensure that our product rollout is a market success.
To assist fresh graduates recruited from campuses in assimilating into our corporate culture and swiftly adapting fromstudent life to the professional realm, the Company has organized a concentrated series of training sessions. Thecompany arranges "Skill Development" training for these fresh graduates, involving diverse team activities to cultivateteamwork and foster team cohesion in a relaxed environment. Addressing operational nuances, mentors impartknowledge on the company's distinctive "MVP Approach" in game development, along with insights into businessoperations, marketing strategies, and product optimization. This facilitates a rapid establishment of a foundationalunderstanding of the company's operations and the game industry.In addition, the Company has invited game production mentors and senior professionals in the game industry to sharetheir professional and personal development experience and answer questions to help fresh graduates better adapt to
Job-specific development training
Graduate traineeship program
Job-Specic Development Training
Orientation training for campus recruits
The company is dedicated to enhancing the leadership capabilities of its employees, consistently providing diverseleadership development training and networking opportunities for individuals at various management levels. Theseinitiatives aim to deepen their understanding of the market and products. Aligned with talent assessments, the companyconducts a series of training sessions to empower management talents at every tier.
Leadership development training
Leadership development training for newly promoted managers
Helping newly promoted managers achieve career development goals is a priority for us. In this regard, we haveconducted a series of centralized training sessions to help them better adapt to job changes and master basicmanagement skills. We provide training on a wide range of topics for newly promoted managers. For example,"Management Role-Based Training" helps them develop their leadership styles and explore their leadership potential;"Talent Finding Training" helps them improve their ability to discover and develop talent in the team, therebyallocating team resources more effectively; "Performance Management Training" helps them develop scientific andeffective approaches to performance management, thereby improving team productivity; "Team Collaboration andCommunication Training", which teaches them how to establish e?cient communication channels, helps them buildteams where everyone gets along. This year, the Company carried out a total of 9 management training sessions fornewly promoted managers, with 237 participants.
Leadership development training for newly
promoted managers
This year, the Company has organized a total of 76 job-
specific development training sessions, including 46sessions on launches and operations, 17 sessions onR&D, and 13 sessions on general knowledge and skills.These sessions were highly regarded by employees,with a total of 4,314 participants.
the workplace. For new employees in positions relatedto game development, the Company has organizedthe "Mini Game Development Competition". Mentorsprovide feedback on game demos developed duringtraining sessions. They also coach campus recruits insolving difficulties arising from the game production,thus helping them form their own understanding ofgame development. This year, the Company organizedthree forms of training for fresh graduates, includingconcentrated training sessions, the "Mini GameDevelopment Competition" and working exchanges,with a total of 77 hours of training courses.
Carried out a total of
management trainingsessions for newlypromoted managers
participants
With9237
On-duty supervisor advanced management training
The Company regularly conducts advanced leadershipdevelopment training for managers with certainexperience. Mentors communicate with managers aboutpeople management challenges in real-life scenariosand help them nd appropriate and distinctive ways toaddress them. This year, the Company carried out atotal of four 2-day training sessions on communicationand management, such as "Leadership in DifferentScenarios" and "Inspiring Inner Drive" , with 108participants.
On-duty supervisor advanced management training
6364Talent Attraction and Development
Advanced leadershipdevelopment training
Mercer Consulting Game
Producer Seminar
G-bits × Shenzhen University,Business Practice of Game Release,
Co-Created Elective Course
At G-bits, our employees are able to access excellent industry resources by attending exchanges and trainingsessions. This allows us to keep abreast of the latest knowledge and skills in the game industry and to better adapt tochanges in the industry.
In addition, the Company has partnered with several universities in China to develop joint courses and develop industrytalent with practical skills and expertise. This year, we maintained the long-term partnership with universities such asthe Guangzhou Academy of Fine Arts, the Shenzhen University and the China Academy of Art. Combining our rst-hand industry experience with the university teaching system, we o?ered co-created projects and elective courses.In this way, we shared cutting-edge theory of knowledge and experience of industry with students fond of games.These joint courses provided students with hands-on experience in a more comprehensive manner, while giving us theopportunity to work more closely with the academic community and learn from each other.
External joint training sessions
New Manor Times Project Team ×Guangzhou Academy of Fine Arts,Co-Created Course on Character Design
Super Meow Star Project Team ×China Academy of Art, Preparatory
Course on Conceptual Design
Supporting employee progression
Employee promotion system
Support for employee upskilling
Employees are fundamental to the sustainable development of a company, which is why we value and encourage ouremployees to develop and grow. The Company has established a dual-path promotion mechanism of "Technology +Management" to better meet the career development needs of employees.Employees can choose the promotion path based on their own aspirations and specialities. They can develop along thetechnology development path into technology backbones, company experts, and authoritative experts in the industry, oralong the management development path into middle and senior management. In addition, the Company's promotionsystem is exible enough to allow employees to advance their careers in a more open and diverse way. Employees canchoose to focus on one development path and make progression step by step. They can also change the path basedon their personal interests and development aspirations, actively explore other areas, and better broaden their careerhorizons.Meanwhile, the Company will regularly hold seminars to review job levelling and adjust the promotion path of di?erentpositions to meet employees' expectations for future development. With our promotion mechanism, our employees'abilities are enhanced in more targeted and clearer manner, while their growth and contribution can be clearly reectedthrough the job levelling system.
G-bits places great emphasis on the development of the employees. We are committed to providing a good learningenvironment and encouraging them to keep upskilling. To this end, we have clearly stated in the Training ManagementMeasures that we will o?er nancial support to all regular employees for obtaining professional qualications.The amount of financial support varies with the types of professional qualifications. The Company bears the fulleducation cost for employees who have obtained the qualication of Certied Public Accountant (CPA), the professionalqualification in publishing or other qualifications required by the Company, while bearing 50% education cost foremployees who have obtained the qualification of Project Management Professional (PMP), international coachingqualication of ICF and other qualications that are closely related to the industry or job position. For employees whohave participated in the relevant qualication training but failed to obtain the certicate, the Company will provide thesame nancial support after validating their individual learning outcomes.
This year, in cooperation with external professionalorganizations, the Company organized advancedmanagement training for management trainees atall levels, with the aim of cultivating their ability andpreparing them for future management promotion.Working with external professional organizations suchas Mercer and Ram Charan's global partners, weorganized specialized training sessions for our gameproducers. Through extensive interaction with industryprofessionals, they have gained a wealth of expertiseand management experience.
Game producer training
The Company organizes seminars to train gameproducers and their managers. External experts areinvited to share their experiences, answer questions,and provide guidance. This year, the Companyorganized three major theme-based training sessionsfor game producers: game development, teammanagement, and business review. Producers sharedtheir insights into game innovation and R&D, teamcollaboration and communication, project operations,and other aspects, and discussed solutions to businessand management problems. This year, the Companycarried out a total of 3 game producer training sessions,each lasting 2 days, with 46 participants.
Game producer training
6566Talent Attraction and Development
Green OperationVII
G-bits focuses on sustainable development and practices the concept of
green development. This year, G-bits continues to identify and assess
climate- related risks and develop responses to promote green operations,
conserve biodiversity, and reduce environmental dependency and impact in
corporate operations.
Response to climate changePracticing green operationProtection of biodiversity
Response to climate changePracticing green operation
Climate change represents a significant threat to humanity, with global warming and extreme weather eventsincreasingly a?ecting both the global ecosystem and business operations. G-bits actively responds to climate change.In line with the Guidance on Climate Disclosures (TCFD), we identify, assess and respond to the impacts of climatechange on our businesses, and formulate mitigation and adaptation strategies that are more scientic and reasonable.
The climate change risks and opportunities identied during the Reporting Period and our responses are as follows:
G-bits pays attention to the e?ciency of energy and resource use and waste recycling during green operation. In thelight of the Environmental Protection Law of People's Republic of China, the Law of the People's Republic of China onPrevention and Control of Water Pollution, the Energy Conservation Law of the People's Republic of China, the Lawof the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste and otherrelevant laws and regulations, the Company carries the green and low-carbon philosophy into day-to-day operations,and continuously makes products and services more environmentally-friendly.Reducing energy consumptionBeing aware of the importance of energy conservation and emissions reduction, G-bits exercises ne managementof resources and energy-consuming equipment. To this end, G-bits has established requirements for the Company'sair conditioners, lighting xtures and production equipment, and selects third-party cloud servers with lower electricityconsumption to ensure operating e?ciency and reduce energy consumption.
Risktype
Identication and assessmentOur responses
Transition risks
Market risk
- Uncertainties in energyprocurement, such as rising pricesof electricity and other energy,could lead to an increase in theCompany's operating costs.
Incorporate climate change considerations into supplier admissionstandards, select electronic equipment with higher energy efficiencyand lower energy consumption, and encourage existing suppliers touse clean energy to reduce the Company's market risk arising fromuctuations in electricity prices;Carry out more elaborate energy management, establish specificrequirements for the use of air conditioners, lighting xtures and otherelectric equipment in workplace, and advocate green office amongemployees to reduce the energy consumption in the workplace.
Physical risks
Acute risk
- Extreme weather such astyphoons, droughts, oods, extremecold or heat caused by climatechange may threaten our normaloperation, resulting in higherenergy consumption and operatingcosts.
Pay close attention to the early warning of extreme weather events,formulate the Explosion Prevention Plan, the Typhoon EmergencyPlan, the Comprehensive Safety Emergency Plan and other safety-related plans, and equip all workplaces with re-ghting facilities andequipment to ensure the safety of people and properties;Establish mechanisms for rapid and effective disaster relief, rescueand emergency response. Organize all employees to conduct re drills,typhoon drills, violent and terrorist attack drills and other activities.Engage external professional institutions to assist the Company in on-site safety management and safety record management at least oncea year in an e?ort to ensure the safety of people and IT infrastructuresand minimize the losses caused by accidents.
Chronic risk
- Sea level rise may pose a higherasset risk to the Company's ITinfrastructures in coastal areassuch as Xiamen and Shenzhen,resulting in higher costs formaintenance, repair or replacementof IT equipment.
Regularly inspect the use of equipment, and deploy and maintainfacilities to grapple with extreme weather, such as backup powersupply;Increase the proportion of cloud services, and protect important datathrough o?-site backup and cross-device backup.
OpportunitiesEnergyopportunity
- The application of energy-savingmeasures/technologies enablesthe Company to lower energyconsumption in the course ofoperation as well as operatingcosts.
Actively carry out distributed energy projects to increase the use ofclean energy;Lease data centers with low power usage effectiveness (PUE) toincrease electricity effectiveness per unit time and minimize energyconsumption in the course of operation.
The Company pays close attention to electricity consumption data and employees'electricity-consuming activities in a timely manner, periodically conducts electricity-saving campaigns, and places electricity-saving reminders on switches of airconditioners and lighting xtures.The Company designates dedicated maintenance personnel to make regularrounds and turn o? air conditioners and lights when employees leave the workplace.Meanwhile, the Company actively enforces accountability, and urges employees toturn o? air conditioners and lights when they leave the workplace, signicantly reducingmonthly electricity expenses. In addition, the Company minimizes unnecessary lightingin public areas during off-work hours to reduce energy consumption. The Companyalso regularly monitors employee computer usage and promptly remind colleagues whohave not turned o? their computers after work for a long period of time to turn o? theircomputers in a timely manner, so as to reduce unnecessary energy consumption.The Company saves energy and reduces emissions through collaboration with cloudservice providers, and operates business swiftly and flexibly by leveraging cloudservices provided by Amazon, Alibaba and Tencent. During the Reporting Period, thePUE of Tencent cloud servers adopted by the Company was below 1.20, and that ofAlibaba cloud servers was 1.09, far lower than the average of the global data centerindustry. In addition, the Company tracks changes in overall resource utilization ratesand daily active users (DAU) of all projects, and downgrades the servers for theprojects below the threshold as well as the projects with a signicant decrease in DAU.
Promoting
energyconservationawareness
Monitoring
energyconservation
practices
Selectingenergy-e?cientequipment
6970Green Operation
Advocating green officeRecycling
G-bits actively builds a safe, green, and low-carbon workplace for employees by advocating low-carbon travel,electronic o?ce and the use of environmentally friendly materials.
G-bits has integrated resource recycling into normal operations, and takes multiple measures such as promotingreusable tableware, reusing idle items to extend the life cycle of waste and reduce emissions.
Electric vehicles are used for all shuttle bus routes of the Company's Shenzhen O?ce and Xiamen O?ce. Moreover,the Company carries out fine management of shuttle buses, adjusting the routes and frequency of shuttle busesbased on employees' needs and prioritizing cinemas located more closely to minimize the use of shuttle buses whenorganizing monthly movie-watching activities.
Reusable melamine or stainless steel tableware is used at the sta? restaurants of the Company's Xiamen O?ce andShenzhen O?ce with
108.17
thousand and
241.49
thousand repeats in 2023, respectively.
The Company is committed to raising employees' awareness of environmental protection by encouraging them toadopt double-sided printing and black-and-white printing, and reuse wastepaper for scribbling or pasting expense claimforms to reduce waste.
The Company has used several energy-saving and environmentally friendly materials to decorate the new workplacein Shenzhen. The company's air-conditioning system, fresh air system, air-conditioning and fresh air equipment andpipelines of the original building, lighting using LED energy-saving lamps, decoration of the main materials (suchas: paint, ame retardant board, gypsum board, PVC ooring boards, ceramic tiles, articial stone, wall coverings,wallcoverings, glue, etc.) are on-site sampling for inspection (test items include but are not limited to environmentalprotection, radioactivity testing, etc.) qualied for use, indoor lighting, pollutant concentration, etc. The indoor lighting,pollutant concentration and other environmental indicators reach the current environmental standards, and the airquality has met testing standards upon the completion of the decoration.
Low-carbon commuting
Reusable tableware
Low-carbon o?ce
Environmentally friendly decoration
At the Company's Shenzhen Office, we have relocated the original air conditioners, ventilation system and fireprotection system based on the original pipeline layout of the office building instead of replacements to minimizematerial consumption. Moreover, we have some recycled furniture, carpets, raised floors, air conditioners, accesscontrol, surveillance equipment and other facilities and equipment for the new workplace. In addition, the Companytakes a series of measures to accelerate waste recycling:
Reusing idle items
Organize in-house sales of idle furniture to provide benets for employees in need;Establish the Company's online group of used-items trade to fully circulate and utilize idle goods;Set up a free sharing area where excess goods/food are shared among employees to avoid waste;Recycle stationery from departing employees.
7172Green Operation
Voluntary beach cleaning activity
Ecological Bird-watching Activity
On the occasion of the World Ocean ConservationWeek, the Company organized 15 employees inShenzhen to carry out voluntary beach cleaningactivities in Shenzhen Bay Park, cleaning up about
21.19 kg of garbage.
In collaboration with the Shenzhen Mangrove Foundation, the Company organized an ecological bird-watching activityin the Shenzhen Bay Nature Education Center in December 2023. Attended by 20 employees from the Shenzheno?ce, this initiative encourages employees to engage in biodiversity conservation.
Employees participated in beach cleaning activity
Employee participation in ecological bird watching
Protection of biodiversity
The sharp decline of global biodiversity has become one of the most serious environmental risks in the future. TheCompany is committed to the implementation of corporate responsibility, working with employees and partners towidely participate in biodiversity conservation, carried out a series of conservation activities.Mangrove Planting ActivitiesOn the occasion of the 2023 Arbor Day, the Company, in collaboration with the Putian Lumeng Coastal WetlandResearch Center and the Shenzhen Green Source Environmental Protection Volunteer Association, has undertakenmangrove planting activities in Xiamen and Shenzhen. A total of 73 employees and their family members activelyparticipated in the initiative, collectively planting 610 mangrove seedlings.
Employees participated in mangrove tree planting activities
Environmental key performance indicators
Due to our business nature, the major gas emissions of the Group are greenhouse gases, resulting from electricity converted from fossilfuels.
The Company's greenhouse gas inventories include carbon dioxide, methane and nitrous oxide. GHG emissions are measured in carbondioxide equivalents. Since 2023, GHG emissions calculated based on the 2021 Baseline Emission Factors for Regional Power Grids in Chinaissued by the Ministry of Ecological Environment of the People’s Republic of China.
The current electricity consumption statistics include those of three o?ce premises of the Company in Guangzhou, Shenzhen and Xiamen.This year, the Company added two new o?ce premises in the Shenzhen region, resulting in an increase in electricity consumption.
Energy intensity represents the energy consumed per person. The less the energy consumed per person, the lower the energy intensity is.
This year, the Company used the average total number of employees at the beginning and end of the year to measure energy intensity andwater consumption intensity, and has recalled the data for 2022 and 2021 according to this caliber.
This year, we improved our water resources data and statistics capabilities, reorganized our water usage situation, and improved thedisclosure of the Company's water consumption data for 2023.
The Company mainly uses municipal tap water. The current water consumption statistics include those of three office premises of theCompany in Guangzhou, Shenzhen (in addition to the new o?ce premises) and Xiamen. This year, the water comsuption of the new o?cepewmises cannot be separately calculated as the tap water cost is included in the property fee.
Water consumption intensity represents the water resources consumed per person. The less the water resources consumed per person, thelower the water consumption intensity is.
The Company's GHG emissions and resource consumption during the Reporting Period are presented below:
IndicatorUnit202320222021
Indirect GreenhouseGas Emissions
(Scope 2)
6,7
Tonne2,654.542,235.422,079.45Total electricityconsumption ino?ces
kWh3,427,466.102,800,028.152,607,000.06
Energy intensity
9,10
kWh/per
person
2,537.922,546.643,074.29Total waterconsumption ino?ces
11,12
Tonne17,545.4420,785.6823,394.17
Water consumptionintensity
10,11,13
Tonne/perperson
12.9918.9027.59
7374Green Operation
Undertaking Social
Responsibility
VIII
G-bits has consistently prioritized corporate social responsibility,leveraging its strengths to share the Company's developmentachievements with society and drive the industry towardssustainable development. During the Reporting Period, the totalamount of various public welfare donations amounted to overRMB 3.77 million.
Assisting rural revitalizationFocus on public welfareEmpowering sustainabledevelopment in the industry
Assisting rural revitalization
G-bits recognizes the importance of rural revitalization. The Company actively responds to the call of the Party and thecountry, actively participates in grassroots assistance work, and conducts on-site visits and donations after employeeresearch to achieve e?ective one-on-one assistance. The Company has also made multiple purchases of agriculturaland sideline products from rural areas as holiday gifts and event souvenirs, taking practical actions to support thedevelopment of distinctive rural industries in various regions and contribute to the common prosperity of society.
The Company also pays close attention to the healthy development of children. The Company is committed toproviding improved conditions for the growth of rural children, ensuring that they have access to a high-qualityeducational environment and better opportunities for learning and development.
In May and September 2023, the Company conductedconsumer support activities to boost the development ofrural characteristic industries and increase income forfarmers in various regions, including Yanyuan County,Liangshan Yi Autonomous Prefecture of SichuanProvince, Shanwei City of Guangdong Province,Qiannan Buyi and Miao Autonomous Prefecture ofGuizhou Province, Hechi City in Guangxi ZhuangAutonomous Region, Xunwu County of Jiangxi Provinceand other regions. These e?orts aim to promote overallprosperity in these areas.
2023 G-bits Foodie Festival distributesconsumer support packages to employees
Yunnan Province Fayi Primary School Sports Field Donation Charity Event
Case: Multi-region consumer support for agricultural development
In 2022, the project team of the Company's gaming product YiNian XiaoYao initiated the "Qingyun Project " inalignment with the game's philosophy. The initiative aims to provide better education for children and contributeto their healthy growth. During the Reporting Period, the Company introduced the "1 RMB Qingyun ScholarshipPackage" in the game, allowing players to participate in the "Qingyun Project" by purchasing the package andcontributing to the scholarship fund for public welfare education.This year, YiNian XiaoYao project team of the Company donated and built a sports eld for the Fayi PrimarySchool in Yunnan Province, addressing the issue of insufficient sports facilities for rural schools. After thecompletion of the playground, the children gained a safer and more comprehensive sports environment. Thetotal investment in the project for building the football eld is 470.9 thousand yuan, with 454.5 thousand yuanpaid in 2023.
Case: YiNian XiaoYao "Qingyun Project" Public Welfare ScholarshipInitiative for rural education
7778Undertaking Social Responsibility
Focus on public welfareWe embrace and care for the special children's community, providing dual support in both material and emotionalaspects, aiming to improve their living conditions from multiple perspectives.
This year, the "Qingyun Proiect" focuses on the donation work for special children's groups, providing care and supportto vulnerable groups in society through initiatives such as caring for children with autism and supporting visuallyimpaired children. We strive to create a more inclusive and equitable environment for special children's groups,demonstrating our commitment to corporate social responsibility.
The Company's game project team engaged in visits to children with autism, entering Xiamen's Tongan District Loveand Crystal Baby Parent-Child Kindergarten to play with autistic children, providing care and companionship to warmthe hearts of each child. Additionally, the Company's employees diligently captured precious moments, depicted thedaily lives of children, and produced public service videos. Through social media, they shared the innocent smiles andheartwarming scenes of autistic children with a broader audience, fostering increased societal awareness and care forthis group of children with autism.
Case: YiNian XiaoYao "Qingyun Project" Public Welfare ScholarshipInitiative for special children care
Caring for Children with Autism
Caring for children with visual impairment
Engaging in "caring for children with autism" activity and illustrate daily life scenes of children
Chinese Traditional Music classroom event
In October 2023, the Company's game project team donated RMB 100 thousand to the Tianjin School for theVisually Impaired to support the purchase of ethnic musical instruments and enhance the school's facilitiesand equipment. The Company assisted in establishing a traditional Chinese music classroom, providing musiccourses to o?er students a more extensive artistic experience and an enhanced learning environment.
The Company will continue to deepen the "Qingyun Project" in the future, helping more children in need to growand thrive.
At the same time, the Company's game project team donated RMB 100 thousand to the Xiamen's TonganDistrict Love and Crystal Baby Parent-Child Kindergarten, to assist in renovating the long-neglected park andmaintaining a well-kept park environment.
After park renovationBefore park renovation
7980Undertaking Social Responsibility
In December 2023, a 6.2-magnitude earthquake struck Jishishan County,Linxia Prefecture, Gansu Province, resulting in severe casualties andproperty losses. Following the earthquake, the Company promptly donateda total of RMB 2 million in cash and materials through the Xiamen CharityFederation, Shenzhen Charity Association, and Shenzhen One Foundation.This contribution was dedicated to supporting the rescue efforts and post-disaster reconstruction in the earthquake-a?ected areas of Gansu.All donated materials have been successfully distributed to the localresidents, aiding them in overcoming the challenges brought about by thedisaster.
Case: Earthquake relief assistance
Distribution of Disaster Relief Supplies
Child sexual abuse prevention series "Girls Protection" courses
G-bits made an appearance at the 29
th Beijing International Book Fair Online Publishing Theme Pavilion
Empowering sustainable development in the industryG-bits consistently monitors the development of the game industry. The Company collaborates with universitiesand partners to provide opportunities for industry talents to showcase their abilities, empowering the sustainabledevelopment of the game industry.Facilitating industry developmentThe Company remains attentive to industry development trends, leveraging its own strengths and integrating internaland external resources to share high-quality expertise externally, thereby supporting the advancement and progress ofthe industry.O?ering advice and driving the prosperous development of the industryThe Company actively engages in industry events with the aim of contributing to the healthy and systematicdevelopment of the game industry.In June 2023, the 29
thBeijing International Book Fair, sponsored by the State Press and Publication Administrationand other ministries, opened at the Beijing National Convention Center. The Book Fair, for the rst time, established an"Online Publishing Pavilion". The Company exhibited and participated in the development forum for online publishingwith its game operations platform, Leiting Games, and online publishing platform, Yifan Technology, actively promotingthe global outreach of Chinese culture.
In 2023, the Company has actively provided recommendations for the game industry, o?ering feedback to the GamePublishing Committee of China Audio-video and Digital Publishing Association on various group standards suchas Classification of Online Games and Basic Requirements for Game Distribution and Promotion. Additionally, theCompany has collaborated with the Game Industry Committee in various research activities, including investigationsinto the public welfare activities of game enterprises, party-building activities of game enterprises, the internationalexpansion of Chinese game enterprises, and the application and development of traditional Chinese culture in thegaming sector.
In September 2023, the 10th National CybersecurityWeek, jointly organized by the Central PropagandaDepartment, the Central Internet Information Office, andother ten departments, was inaugurated at the StraitsInternational Convention and Exhibition Center in FuzhouCity, Fujian Province. The Company, along with its gameoperating platform Leiting Games, participated in theevent, actively fullling its responsibilities, and showcasingthe achievements of our cybersecurity initiatives.
In October 2023, the Company launched 200 sessions of "Girl Protection" child sexual abuse preventioncourses in Chongqing, Sichuan, and Guizhou, employing various forms such as text and illustrations tostrengthen children's awareness of safety.
Case: Child-care education
Promptly donated atotal of RMB
in cash and materialsmillion
G-bits participated in the 10th Cybersecurity Week
8182Undertaking Social Responsibility
Building platforms to facilitate industry exchange
Providing platforms to guide job seekers
G-bits is committed to nurturing and guiding talent within the industry. Leveraging its significant industry influence,the Company utilizes new media channels to disseminate industry experiences and showcase outstanding works,ultimately fostering collective progress within the industry. The Company actively shares and promotes specializedknowledge within the gaming profession. Through the creation of an in-depth interview series titled My Story withGames, diverse individuals within the industry have the opportunity to showcase their authentic experiences. Seasoned
The Company has established a series of columns, such as Job Interpretation and Workplace Observation, throughnew media platforms to disseminate knowledge about game industry positions and insights into the workplace ecologyof game companies.
The Company o?ers a platform for university studentspassionate about the game industry to showcase theirtalents. In May 2023, the Company conducted a livestreaming event through its corporate social accounts,showcasing outstanding student works. This includedinformation about team members, an introduction togameplay, game demonstration videos, and more.Leveraging its industry resources, the Companyprovides opportunities for talented individuals toshowcase their abilities.
My Story with Games program promotion
Recruitment Q&A Live Sessions
Live Show of Excellent Works of College Students
G-bits Game Developer Contest Site
professionals use these interviews to convey theCompany's gaming philosophy, share personal insights,and provide perspectives on the gaming business.This initiative aims to present the genuine ecosystemof the game industry to the public, dispelling societalbiases and misconceptions about the game industrywhile promoting positive industry values. In thisinterview series, college students also share their gamedevelopment experiences and personal growth stories,presenting their unique perspectives on the gameindustry to the broader audience.
School-Enterprise Collaboration in Training
The Company places a high emphasis on the cultivation and reserve of professional talents, consistently integratingits own advantageous resources to empower game development talents in universities. Through various means suchas organizing university competitions, establishing platforms for talent training and learning, and hosting salon events,the Company lays out a clear developmental path for young game talents in universities, contributing to the sustainabledevelopment of the industry.Organizing Game CompetitionsThe Company actively participates in industry activities, aiming to contribute to the healthy and orderly development ofthe gaming industry.
Since 2019, the Company has consecutively organized the G-bits Game Developer Contest for ve years. Thecompetition invites more than ten experienced R&D professionals from the industry to serve as mentors, guidingyoung game developers from universities in designing and developing game projects. This support aims to helpthem realize their game creation dreams and incubate high-quality creative products. The competition attractedover 470 universities from both domestic and international locations, with more than 1,760 participants.The competition adopted a format combining both online and offline elements, as well as a structure thatemphasized di?erentiation and systematization. After a 70-day online preliminary round with unrestricted topics,over 1,760 participants competed, leading to the selection of the top 10 teams. These teams then engaged in aface-to-face Game Jam
challenge with their mentors, completing the task within a 48-hour timeframe.
Game Jam is a time-limited game development activity where participants create a game within a relatively short timeframe andpublicly share their outcomes at the end of the event.
The college students boosted their condence in game production, expanded their understanding of the gameindustry, and sparked more creative inspiration. Additionally, they o?ered the competition mentors fresh gameideas from the younger generation, contributing to the industry's future diversied development.
Case: G-bits Game Developer Contest
This assists the public in developing a correctunderstanding of the game industry and providesguidance for industry talent recruitment. The Companyalso o?ers a public exchange platform for job seekers inthe game industry. By organizing live Q&A recruitmentevents, it opens a window for job seekers to learn aboutthe game industry and seek information, helping tobreak down information barriers, lower entry thresholds,and establish a foundation for the industry to attractmore high-quality talent. During the Reporting Period,the Company held a total of four live Q&A sessions.
Over the ve years of the competition, the majority of participating contestants have entered the game industryafter graduation, becoming a new force in industry R&D. The winning team from the fourth competition hasestablished a studio and successfully incubated their competition entry. The subsequent development andproduction of the game are progressing in an orderly manner.
8384Undertaking Social Responsibility
In September 2023, the Company held the rst G-bits College Game Art Concept Competition. The competitionfeatured diverse tracks, including 2D and 3D scene and characters, game illustrations and promotion, providinga platform for college students to explore and create in the realm of game art.Prior to the competition, the Company conducted free live game art series courses, where frontline artistictalents from the Company, outstanding college professors, and renowned freelance artists shared their expertisewith students. The courses garnered a total participation of 1,843 individuals and received high praise from thestudent community. The Company invites experienced professionals from the industry, including in-house artistsand professors from art institutions, as judges. These judges engaged in direct discussions with the creatorsof the shortlisted works. This competition not only o?ered college students a valuable opportunity to enhancetheir professional skills but also played a crucial role in identifying and nurturing talent in the eld of game art. Itserved as a magnet, attracting more outstanding artistic individuals to contribute to the game industry.
Since 2021, G-bits has established the G-bits & University Game Development Alliance, an organization forlearning and exchanging among college game development enthusiasts. It provides students with systematiclearning resources and professional guidance in game development, helping those who are passionateabout game creation enhance their professional skills and industry awareness. The G-bits & University GameDevelopment Alliance regularly conducts various practical and exchange activities, inviting industry producers,experienced frontline professionals, outstanding students, and more to share knowledge and insights in thegame industry, creating communication channels for game enthusiasts. Simultaneously, the alliance supportsthe establishment and growth of game societies in major universities, providing necessary resources andactivity support for the development of these societies.
Case: The First G-bits College Game Art Concept Competition
Case: G-bits & University Game Development Alliance
Excerpt of Excellent Entries
Building talent development and learning platforms
G-bits & University Game Development AllianceGame Education Campaign (2023 Summer GameDevelopment Practical Training Student Work)
In 2023, the G-bits & University Game DevelopmentAlliance has organized over 60 live course broadcastsand conducted various game education-relatedactivities, including summer game developmenttraining for college students and a 48-hour GameJam challenge for universities. As of the end of theReporting Period, the alliance has nearly 3,000members, spanning across almost 500 universitiesand involving 90 university game developmentsocieties.Organizing Game Salon Events
In December 2023, the Company held a game developer salon in Guangzhou to build an offline learningplatform for game developers. The event exhibits new games and excellent works of high school students andprovides trial play opportunities. Developers exchange experience with each other and give feedback on theexperience. The event also invited front-line producers and senior R&D sta? to share their expertise and R&Dexperience. Talents in the game industry communicated with each other to burst into fresh inspiration andcreativity.
Case: G-bits & University Game Developer Salon
Game Developer Salon Scene
8586Undertaking Social Responsibility
Appendix
Key performance indicators
IndicatorsUnit202320222021
Environment
Total electricity consumption in
o?ces
kWh3,427,466.102,800,028.152,607,000.06Electricity consumption in
Xiamen O?ce
kWh1,427,013.001,352,345.001,413,428.00Electricity consumption inShenzhen O?ce
kWh1,689,708.101,169,866.15900,360.06Electricity consumption inGuangzhou O?ce
kWh310,745.00277,817.00293,212.00Energy consumption intensity
KWh/perperson
2,537.922,546.643,074.29Total water consumption in
o?ces
Tonne17,545.4420,785.6823,394.17Water consumption in Xiamen
O?ce
Tonne10,997.4414,695.6817,952.17Water consumption inShenzhen O?ce
Tonne6,422.005,976.005,406.00Water consumption inGuangzhou O?ce
Tonne126.00114.0036.00Water consumption intensity
Tons/per
person
12.9918.9027.59Indirect Greenhouse GasEmissions (Scope 2)
Tonne2,654.542,235.422,079.45
Society
Total number of employeesNumber1,4471,254945
By age group
≤30Number92780556530-50Number520449380
IndicatorsUnit202320222021
Society
By academicqualication
Master's degree
and above
Number235178141Bachelor's degreeNumber1,002874652Associate degreeand below
Number210202152By gender
MaleNumber993860668FemaleNumber454394277By gender
Malemanagement
Number129119/Femalemanagement
Number4339/Byprofessionals
R&D employeesNumber855692530Non- R&Demployees
Number592562415
Bygeographicalregion
Mainland ChinaNumber1,4341,243940Hong Kong,Macao and Taiwanof China
Number764OverseasNumber651Total number of training sessionsSession16817787Total training hours of employeesHour504870281Training investment
RMB 10
thousand
352.68389.8825.05Support of public welfare
RMB 10thousand
292.95226.69879.77Support of environmental
protection
RMB 10thousand
5.5820.00/Support of rural revitalization
RMB 10thousand
78.47103.5835.79
8788Appendix
Index of indicators
ContentsGRI StandardsI. About this Report2-1; 2-2; 2-3; 2-4
II. About G-bits
(I) Company prole2-6(II) Party-enterprise integration
(III) Honors
III. Social Responsibility and ESG
Management
(I) ESG management
2-12; 2-13; 2-14; 2-16; 2-17; 2-18;
2-22; 2-24(II) Responsibility communication2-29; 3-1; 3-2(III) Corporate governance2-12; 2-24
(IV) Business ethics2-25; 2-26; 3-3; 205-2; 205-3
IV. Product Empowerment
(I) Player-centric approach(II) Promoting Chinese traditional
culture
417-1(III) Protecting intellectual property3-3; 417-1(IV) Exploring technological frontiers
V. Data Ecological Protection
(I) Content ecological governance417-1(II) Data security management417-1(III) Protection of minors
VI. Talent Attraction and
Development
(I) Talent development plan404-2(II) Protection of employee rights
and interests
2-7; 2-25; 3-3; 403-1; 403-3; 403-5;403-6; 403-7; 403-8; 405-1; 408-1;
409-1
(III) Maintenance of smooth
communication channels
2-25(IV) Employee benets401-2; 401-2; 401-3(V) Innovation in talent cultivation404-1; 404-2
(VI) Supporting employeeprogression
404-3
VII. Green Operation
(I) Response to climate change201-2(II) Practicing green operation
302-1; 302-3; 302-4; 302-5; 303-1;303-2; 303-5; 305-2; 305-4; 305-5;
306-2(III) Protection of biodiversity3-3; 304-3
VIII. Undertaking SocialResponsibility
(I) Assisting rural revitalization203-1
(II) Focus on public welfare203-1; 413-1(III) Empowering sustainabledevelopment in the industry
ContentsGRI Standards
8990Appendix
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9192Appendix