Information about this ReportData description
Reporting scope
Report release date
This is the 2024 Sustainability Report of G-bits Network Technology (Xiamen) Co., Ltd. (hereinafter referred to as “G-bits”, “We”or “the Company”) (stock code: 603444). Through the Report, we hope to fully communicate with all stakeholders on G-bits’sustainability philosophy, performance, and commitment to corporate sustainable development.
The information, data and cases used in this Report are sourced from the Company’s o?cial documents, statistical reports,nancial reports or public documents, as well as functional departments' statistics and summaries of environmental, social andgovernance (ESG) practice information. The reporting currency of the nancial data in this Report is Renminbi (“RMB”).
This Report covers the period from January 1, 2024 to December 31, 2024 (the “Reporting Period” or “this year”) for G-bits andall its subsidiaries.
This Report is released concurrently with the Company’s Annual Report.
Preparation principles and basis
This report has been prepared in accordance with the Guidelines No. 1 of Shanghai Stock Exchange for Self-Regulation ofListed Companies – Standardized Operation (revised in December 2023), with reference to the Global Reporting Initiative (GRI)Standards and the UN Sustainable Development Goals (SDGs). In addition, we have proactively referred to the Guidelines No.4 of Shanghai Stock Exchange for Self-Regulation of Listed Companies – Sustainability Report Preparation and the GuidelinesNo. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies – Sustainability Report (Trial).
0403
About this Report
Company profileParty-enterprise integrationG-bits Network Technology (Xiamen) Co., Ltd. is a company specialized in creative design, R&D, production and commercialoperation of online games. The Company aims to provide “original, high-quality, and ethical” online games and is committed tocreating original online games with a focus on positive content, as well as high cultural and artistic standards for entertainmentexperiences.We observe our corporate social responsibilities all the time to promote the co-development of the industry and the co-creationof social value. Since our founding in 2004, we have remain deeply engage in the game market, making unremitting e?orts tocreate high-quality and wholesome recreational products and providing global users with di?erentiated products and services.Looking ahead, we will actively promote R&D and innovation, consistently creating high-quality game products. By leveragingtechnology and creativity, we aim to drive the sustainable development of the industry and contribute to the ongoing creation ofsocial value.
Always adhering to General Secretary Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the GeneralParty Branch of G-bits studies and implements the spirit of the 20th CPC National Congress and that of the third plenary sessionof the 20th CPC Central Committee. The Company has fully implemented the spirit of the Central Economic Work Conferenceand the resolutions and plans of the CPC Central Committee and the State Council, thereby actively promoting high-qualitydevelopment in the cultural industry. Grounded in party building and rooted in China’s outstanding cultural heritage, G-bitsshowcases cultural condence through game content and demonstrated its mission responsibility through regulation.This year, the Company continued to integrate Party building into governance, culture and responsibility, driving integration ofParty building e?orts with business development. Besides, we actively conducted various forms of learning and activities tostrengthen Party member education and enhance the level of corporate spiritual civilization.The Company’s General Party Branch actively participated in the Spring Festivalcharity event organized by the Siming District Community Volunteers Association.We delivered care packages to migrant children, demonstrating our commitment tosupporting vulnerable groups through tangible actions and embodying the Company'scompassion and care for the community.The Company’s Party members actively participated in the public welfare eventorganized by the “New Xiamen Residents Library”. With the support from volunteersand medical personnel, they organized a one-day educational excursion to GulangyuIsland for 30 migrant children as part of the 37th “Sparkling Red Star” event. Throughcultural immersion, the event aimed to support the growth and development of themigrant children.
The Company held a general meeting of Party members on 1st July, whereparticipants delved into the discourse of Xi Jinping on new quality productive forces.The meeting emphasized the role of innovation in driving development, guidingcorporate practices, and fostering high-quality growth.
The Company’s party members held a Qingming Festival memorial event at theXiamen Revolutionary Martyrs Cemetery. Centered on the theme of “RememberingRevolutionary Martyrs, Inheriting the Spirit of Dedication”, the event commemoratedthe monumental achievements of the revolution, promoted the national spirit, andinspired volunteers to learn from the dedication of the revolutionary martyrs.
The Company’s General Party Branch convened a study session focused on the spiritof the third plenary session of the 20th CPC Central Committee. The session centeredon studying the Resolution of CPC Central Committee on Further Deepening ReformComprehensively to Advance Chinese Modernization. All Party members, probationarymembers, and applicants for Party membership integrated their professional practiceswith the study, engaging in in-depth exchanges of insights and o?ering suggestions.With such efforts, we aimed to empower the Company’s sustainable developmentthrough Party building and education.
In January 2024
In March 2024
In July 2024
In April 2024
In September 2024
Corporate culture
Emphasis on shareholder returns
202220222023202320242024
12.2283.67
Amount of cash dividend (RMB 100 million)Cash dividend amount as a percentage of net prot
attributable to shareholders of the Company (%)
Act with Integrity (Integrity)We focus on long-term benets, do whatis more valuable and right for long-termdevelopment, and establish positivecooperative relationships with all those wework with.
Clarity of Essence (Clarity)We grasp the essence of things andaddress problems from their root causes.We delve deeply into user needs, prioritizethe user experience, and guide our workby standing in the user’s perspective toevaluate the outcomes.
G-bits strives to gather and nurture innovative talent and pursue e?cient working methods.We aim to provide global users with di?erentiated products and services. We wish tocreate and disseminate delightful experiences in the cultural and entertainment eld.
Respect, Integrity, Compliance withRules, Professionalism, Progress,
Perseverance and Honesty
We encourage our employees to behumble rather than arrogant or complacent.We believe that it is essential to respectothers’ opinions and view ourselves fromtheir perspective.
We encourage our employees to followa decent discipline, pursue a qualitylifestyle, and cultivate an appreciation foraesthetics.Values
MissionBehavioral pattern
Benet from Humility (Humility)Elegance in Behavior (Elegance)
5.04
44.82
7.18
75.94
0807
About G-bits
Honors
The Company has been selected for 8 consecutive years in the “Top 100 ChinaInternet Enterprises with Comprehensive Strength” list jointly issued by the InternetSociety of China and the Ministry of Industry and Information Technology
From 2017 to 2024
Shenzhen Leiting Information Technology Co., Ltd., a subsidiary of the Company, was selected asone of the rst member units of the Working Committee for Digital IP Application under the China
Audio-Video and Digital Publishing Association
In November 2024
The Company has been awarded the honorary title of “Relatively Outstanding Enterprise in SocialResponsibility Performance of Chinese Game Enterprises” by People's Daily for 4 consecutive years
From 2021 to 2024
The Company was listed in the “2024 Top 500 Chinese Private Enterprises in R&D Investment”
by the All-China Federation of Industry and Commerce
In September 2024
The Company has been awarded “Grade A” by the Shanghai Stock Exchange (SSE) for the annual
information disclosure for 3 consecutive years.
From 2022 to 2024
The Company was selected as a “National Cultural Industry Demonstration Base” by the Ministry of
Culture and TourismIn March 2024
The Company was honored with the titles of “Best Sustainable Development Practice Cases of Listed
Companies in 2024” “2024 Best Practice of the Board of Directors of Listed Companies” “2024 BestPractice of Listed Company Board O?ces” and “Best Practice for 2023 Annual Results Conference of
Listed Companies” by the China Association for Public Companies
In November and December 2024
The Company and its subsidiaries have been selected as “Cases of Game Public Welfare Ceremony”
by People’s DailyFrom 2022 to 2024
The annual evaluation of information disclosure work of Shanghai Stock Exchange (SSE) is an annual comprehensive assessment of the quality ofinformation disclosure and related work of listed companies conducted by SSE. The evaluation of information disclosure work covers compliance,e?ectiveness and management of information disclosure a?airs.
1009
About G-bits
Corporate governanceESG governance
The Company strictly adheres to the requirements of the Company Law of the People’s Republic of China, the Securities Lawof the People’s Republic of China, the Code of Corporate Governance for Listed Companies, the Rules Governing the Listingof Stocks on Shanghai Stock Exchange and other laws, regulations and normative documents. On this basis, the Companycontinually refines its corporate governance policies and systems, enhancing the governance structure that includes theShareholders’ Meeting, Board of Directors, Board of Supervisors, and Management. This promotes the Company to establish agovernance mechanism with clear rights, responsibilities and standardized operation, guides the Company to operate in goodfaith and in compliance with regulations, e?ectively manage and control risks, promotes the Company to achieve sustainableand high-quality development, and creates long-term value for shareholders and society.The Shareholders’ Meeting is the highest authority of the Company. The Company convenes and holds Shareholders’Meetings in strict accordance with relevant regulations and requirements to ensure that shareholders fully exercise their rights.The Board of Directors of the Company consists of a Strategy Committee, an Audit Committee, a Nomination Committeeand a Remuneration and Appraisal Committee. The Board of Directors and its committees shall jointly be responsible fordetermining the strategic direction and overall strategy of the Company, and supervising the work and business performanceof the Management, as well as the operation and nancial performance of the Company. In January 2025, G-bits completedthe re-election of its Board of Directors. The Company's sixth Board of Directors comprises seven members, includingthree independent directors and two female directors. The Audit Committee, the Nomination Committee and theRemuneration and Appraisal Committee are all chaired by independent directors, and independent directors constitutethe majority of the committee members, thereby safeguarding the independence of major decisions of the Company.The Board members possess professional expertise and extensive industry experience in various domains, including gameresearch and 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.
ESG governance structureThe Company is committed to enhancing our Environmental, Social, and Governance (ESG) system and continuouslystrengthening the governance structure to ensure the effective identification, assessment, management and monitoring ofimpacts, risks and opportunities related to sustainable development. We have continuously improved our ESG policies andsystems, establishing a robust ESG governance structure and fully integrated sustainable development issues into our strategicand operational decision-making.The Company abides by the requirements of the Rules of Procedure of the Board of Directors and the Working Rules of theStrategy Committee of the Board of Directors. On this basis, the Company has clearly stipulated that the Strategy Committee ofthe Board of Directors is responsible for overseeing and inspecting the implementation of the Company's ESG Working Group,providing guidance when necessary, reviewing the Company's ESG report, ESG-related policies and other major ESG-relatedmatters, conducting research on ESG governance and providing decision-making advice to the Board of Directors, includingESG governance vision, goals and policies. The ESG Working Group is primarily responsible for developing the ESG workimplementation plan and coordinating the assessment and management of ESG risks and opportunities.
All members of the ESG governance structure possess extensive industry experience, professional capabilities and ESGmanagement skills, which ensure the e?ective achievement of the ESG-related work. The Company has established an ESGinformation reporting mechanism through which the ESG Working Group regularly reports to the Strategy Committee on ESG-related matters, such as the progress of ESG goals, policy implementation, and the risks and opportunities the Company faces.In this way, the Company ensures that Committee members have access to ESG-related information in a timely manner, andthat ESG matters are adequately discussed and monitored.The Company monitors and evaluates the implementation of its ESG strategy through internal audits and complianceinspections, and optimizes the ESG management system based on the assessment results. To ensure the effectiveimplementation of ESG targets, the Company has established corresponding management mechanisms to ensure that themanagement and relevant departments focus on ESG issues and continuously optimize the relevant management practices.
TitleNameGender
Educationbackground
Professional competenceIndustryexperience
Compliancemanagement
FinancemanagementChairmanLu HongyanMaleBachelor’s degreeVice ChairmanChen TuolinMaleMaster’s degree
DirectorGao YanMaleMaster’s degreeDirectorLin JiajinMaleMaster’s degreeIndependentDirector
Bao HuifangFemaleMaster’s degreeIndependentDirector
Liang YanhuaFemaleBachelor’s degreeIndependentDirector
Wu YibingMaleDoctoral degree
ESG governance structure
Strategy Committee of the Board of Directors
ESG Working Group
1413
Corporate Governance and ESG Management
Materiality analysisCommunications with stakeholdersTaking into account the characteristics of the Internet game industry, the Company invites internal and external stakeholders toidentify and determine the materiality of ESG issues through questionnaires, reviews and summaries, and exchange meetings.Based on the analysis results of the assessment process, we have identified materiality issues of concern to stakeholders,developed a materiality matrix and submitted it to the Board for conrmation.We have identied a total of 20 issues
of materiality, which are assessed as follows:
G-bits is committed to transparent and open communication. The Company strictly adheres to the relevant internal managementsystems. This ensures that the concerns of investors, directors, and other stakeholders are fully heard and addressed. TheCompany communicates with key stakeholders such as players, investors, regulators, industry associations, employeerepresentatives, partners, and the public through questionnaires, regular communications, interviews, and other approaches.This enables the Company to comprehensively assess the potential economic, social and environmental impacts of the issues.
We have responded to the above issues of materiality in sections of this report to help stakeholders gain a more comprehensiveunderstanding of the Company's ESG performance.At the same time, we are proactively reviewing and exploring approaches to assessing and analyzing the nancial materiality ofESG issues. This will enable us to better guide the management and disclosure of information related to sustainable development.
We specialize in the development and operation of online games, so the impact on the environment mainly arises from the consumption of energy andresources and emissions during the operation. Our business model does not involve manufacturing or discharge of industrial pollutant such as wastewater,exhaust gas or waste dregs. Therefore, no pollutant issues are involved.
StakeholderIssues of concern and communicationCommunication channels and frequency
●Safety and quality of products andservices
●Innovation-driven
●Data security and customer privacyprotection
●Employees
●Anti-bribery and anti-corruption
●Anti-unfair competition
●Regular reports (quarterly)
●Temporary announcements (irregular)
●Shareholders’ Meeting (annual)
●Performance presentation (quarterly)
●Investor research (irregular)
●Press releases (irregular)
●Investor hotline (real time on workdays)
●IR mailbox (real time on workdays)
●SSE E-Interaction (real time on workdays)
●Employees
●Innovation-driven
●Data security and customer privacyprotection
●Ethics in science and technology
●Anti-bribery and anti-corruption
●Communications with stakeholders
●Due diligence
●Environmental compliancemanagement
●Phone calls, e-mails and meetings (irregular)
●Regular reports (quarterly)
●Temporary announcements (irregular)
●On-site inspections (irregular)
●Data security and customer privacyprotection
●Contribution to society
●Anti-unfair competition
●Equal treatment of small and medium-sized enterprises
●Environmental compliancemanagement
●Regular questioning (irregular)
●High-level meetings (irregular)
●Under supervision (real time)
●Proactive communication (irregular)
●Information reporting (within statutory timelimits)
●Working meetings (irregular)
●Policy engagement (irregular)
●Site visits (irregular)
●Information disclosure (based on statutoryrequirements)
Shareholders andinvestors
Government andregulators
DirectorImportance to the Company2024 matrix of materiality issues for G-bitsIssues of high materialityIssues of general materialityIssues of moderate materiality
Importance to stakeholders
Data security and customer privacy protection
Safety and quality ofproducts and servicesInnovation-drivenEnvironmental compliance management
Water resources utilization
Waste disposalCircular economyEcosystems and biodiversity conservation
Supply chain securityCommunications with stakeholdersContribution to societyRural revitalizationEqual treatment of small- andmedium-sized enterprisesAnti-unfair competitionDue diligence
Ethics in science and technologyResponse to climate changeEnergy utilization
Anti-bribery and anti-corruptionEmployees
highModerate
Moderatehigh
●Anti-bribery and anti-corruption
●Supply chain security
●Contribution to society
●Rural revitalization
●Ethics in science and technology
●Environmental compliancemanagement
●Equal treatment of small- andmedium-sized enterprises
●Anti-unfair competition
●Due diligence
●
Response to climate change
●
Energy utilization
●Water resources utilization
●Circular economy
●Ecosystems and biodiversityconservation
●Waste disposal
●Data security and customerprivacy protection
●Safety and quality ofproducts and services
●Innovation-driven
●Employees
●Communications withstakeholders
1615
Corporate Governance and ESG Management
Sustainability due diligenceThe Company has established a systematic due diligence mechanism. This ensures its business compliance with industrystandards and regulatory requirements in areas such as data security, business ethics, environmental compliance and employeemanagement.The ESG Working Group is responsible for identifying and managing sustainability-related risks, analyzing potential risks,proposing improvement measures, and overseeing the implementation of corrective actions. Meanwhile, the Companyconducts independent reviews and compliance assessments in key areas to enhance the professionalism, independenceand comprehensiveness of its due diligence. The areas covered include data security and privacy protection, supply chainmanagement, and employee management.During the Reporting Period, the Company conducted due diligence on the following core risk areas related to sustainability:
In the future, the Company will further strengthen risk monitoring in the sustainability eld, enhance its due diligence system,and promote the sustainability of the online game industry. Through responsible corporate practices, we aim to create long-termvalue for society.
StakeholderIssues of concern and communicationCommunication channels and frequency
●Employees
●Innovation-driven
●
Ethics in science and technology
●Circular economy
●Employee union activities (irregular)
●“Founder Meetup” events (quarterly)
●Corporate culture meetings (irregular)
●Employee interviews (irregular)
●Employee feedback mechanism (realtime)
●Questionnaires (irregular)
●Safety and quality of products andservices
●Data security and customer privacyprotection
●Ethics in science and technology
●High-quality game products (real time)
●Professional customer service team (realtime)
●Self-service platform (real time)
●Social media (real time)
●Player surveys (irregular)
●Supply chain security
●Equal treatment of small andmedium-sized enterprises
●Anti-bribery and anti-corruption
●Energy utilization
●Innovation-driven
●Circular economy
●Daily communication mechanism (realtime)
●Bidding system (irregular)
●Suppliers revisit (irregular/annual)
●On-site investigation (irregular)
●Supplier training (irregular/annual)
●Rural revitalization
●Contribution to society
●Ecosystem and biodiversityconservation
●Waste disposal
●Water resources utilization
●Engagement in public welfare donations(irregular)
●Community communication and visits(irregular)
●Care for vulnerable groups (irregular)
●Ecosystem and biodiversityconservation
●Innovation-driven
●Ethics in science and technology
●Anti-unfair competition
●Due diligence
●Industry cooperation (irregular)
●Exchange on the protection of propertyrights (irregular)
●Culture promotion (irregular)
Dimensions of due
diligence
Responsibledepartment
Procedures for impact/riskidentication
Initiatives to mitigate impacts and risksSecurityDepartment,Legal and PublicA?airs Department
Conduct regular datacompliance reviews to identifypotential risks such as databreaches and cyber-attacks
●Enhance server security, optimize data encryption technologyand establish a sound data governance framework to ensure fullprotection of user privacyCustomer ServiceDepartment,Legal and PublicA?airs Department
Analyze user behavior data,assess the implementationof the anti-addiction system,optimize the real-nameverication mechanism,and conduct research incooperation with parents andgovernment regulators
●Continuously optimize game access restrictions and timemanagement functions, and improve the content review mechanismto prevent the dissemination of inappropriate content
●Step up the promotion of the parental guardian model to increaseusers’ awareness and usage of the minor protection mechanism
Audit Department,ProcurementOperationsDepartment
Conduct supply chaincompliance managementthrough daily audits, review ofhistorical cooperation recordsand other approaches
●Continuously optimize supply chain compliance managementthrough regular audits, and set up a reporting incentive mechanismto encourage employees to actively engage in compliancemonitoring, thus enhancing risk prevention and control capabilities
●Require partners to abide by the principles of fair competition,business integrity and sustainable development, clearly deneintegrity requirements at the supplier admission stage, andstrengthen the awareness of integrity and compliance by sendingannual integrity appreciation letters to suppliers
Procurement
OperationsDepartment
Assess suppliers'environmental violations, laborrights-related performanceand identify sustainability-related supply chain risks
●Prioritize suppliers that meet environmental standards whenpurchasing electronic equipment, and encourage supply chainpartners to adopt low-carbon production models and sustainablematerials
●Implement multi-brand product selection and diversied supplystrategy to reduce dependence on a single supplier and seekalternative suppliers to enhance supply stability
●
Optimize inventory management based on market supply anddemand dynamics, and minimize supply delays and quality risksthrough exible delivery and contractual constraintsHR Department,
PlanningDepartmnet
Conduct regular employeesatisfaction surveys to assessemployees' satisfaction levelswith the work environment,remuneration and careerdevelopment
●Optimize the working environment and remuneration system toenhance employee satisfaction and loyalty based on the surveyresults
●Provide career development planning and training opportunitiesto support employees' professional growth and enhance teamcohesion
Employees(includingmanagement)
Players
Business partners
Community andthe public
Industryassociations
Data security andcustomer privacy
protection
Employeemanagement
Supply chainsustainability
Business ethics
Protection ofminors
1817
Corporate Governance and ESG Management
This year, the Company conducted audits on employee conict of interest and employee rights and interests as stipulated in theCode of Ethical Business Conduct, ensuring its e?ective enforcement.During the Reporting Period, the Company was not involved in any lawsuits related to commercial bribery or corruption. Nodirectors, management personnel, or employees were dismissed, disciplined, or investigated for related misconduct, nor werethere any instances of contract termination or non-renewal with business partners due to commercial bribery or corruption.
Conducting business ethics risk assessments
To prevent business ethics risks such as bribery and corruption, G-bits has established a three-tier defense system comprisingthe Audit Committee of the Board of Directors, the Audit Department, and relevant business units. The system ensures the fullimplementation of the Company’s business ethics compliance and the e?ective enforcement of the Code of Ethical BusinessConduct. The Audit Department regularly assesses and reviews compliance operations and fullment of the Code ofEthical Business Conduct under the guidance of the Audit Committee of the Board of Directors, and performs businessethics audits of the Company and all its subsidiaries. The Company ensures that the audit of the Code of EthicalBusiness Conduct covers all business areas of the Company and all its holding subsidiaries every three years.
Business ethicsG-bits strictly abides by the Company Law of the People’s Republic of China, the Securities Law of the People’s Republic ofChina, the Anti-Money Laundering Law of the People's Republic of China, the Anti-Unfair Competition Law of the People'sRepublic of China and other laws and regulations. On such basis, the Company adheres to business ethics in daily operationsand external cooperation, while strengthening integrity and compliance management. The Company continuously improvesthe anti-bribery and anti-corruption management mechanisms, fraud prevention and control systems, and risk managementframework for unfair competition. Through strict internal control measures, the Company effectively identifies and controlscompliance risks, thus ensuring the transparency and fairness of business operations. We are committed to fostering a fair,honest and sustainable business environment. Together with industry partners, we promote responsible corporate practices.Strengthening anti-bribery and anti-corruption managementG-bits strictly adheres to the Interim Provisions on Banning Commercial Bribery and relevant laws and regulations. Inaddition, the Company has established internal policies such as the Code of Ethical Business Conduct, the Anti-FraudRegulations, the Code of Integrity, and the Gift Acceptance Policy. With these regulations, the Company is committedto upholding business ethics in its daily operations and external collaborations, strictly prohibits bribery, corruption,and fraudulent activities, and e?ectively control risks to foster a culture of integrity, ensuring the Company’s stable,healthy, and sustainable development.Enhancing the integrity management systemThe Company has established a comprehensive anti-bribery and anti-corruption management system. The Code of EthicalBusiness Conduct explicitly prohibits bribery, kickbacks, or any form of corrupt practices, requiring employees not to directlyor indirectly offer, promise, solicit, or accept any improper benefits from any individual, entity, or organization. The Code ofEthical Business Conduct is applicable to all directors, management personnel and employees (full-time, part-time, interns andoutsourced employees) of the Company and all its subsidiaries, ensuring that integrity standards are applied across the entirebusiness chain. We have also incorporated the anti-corruption and anti-bribery-related indicators from the Code of EthicalBusiness Conduct into the employee performance and remuneration evaluation system, further standardizing employee conduct.The Company upholds the core values of “integrity, clarity, humility, and elegance”, taking a zero-tolerance attitudetowards any breach of business ethics. In the Code of Integrity, the Company explicitly stipulates that all employees muststrictly adhere to the Code. Violation of any of its provisions will result in termination of employment.
Third line of defense
Second line of defense
First line of defense
AuditCommitteeof the Boardof Directors
Audit Department
Relevant Business Units
Three-tier defense system for business ethics and compliance management
The First Prohibition LineProhibition of accepting bribes,kickbacks, or soliciting bribes;The Third Prohibition LineProhibition of misappropriating ortransferring the Company’s interests;
The Fourth Prohibition LineProhibition of leaking condentialinformation and transferring benets.
The Second Prohibition LineProhibition of committing fraud;
2019
Corporate Governance and ESG Management
Building an integrity-driven supply chain
The Company places a strong emphasis on the integrityand ethical performance of suppliers, striving to build atransparent, open, and compliant supply chain. The Companyrequires all suppliers and other business partners to strictlycomply with the integrity system when providing goodsand services to the Company or acting on behalf of theCompany. These efforts ensure that all collaborations meethigh standards of business ethics and compliance. If anyviolations of the relevant policies are identied, the Companywill immediately terminate the partnership and blacklistthe relevant entity as a supplier, permanently ending thepartnership to maintain a fair and just business environment.To ensure integrity and fairness in cooperation with suppliers,the Company includes integrity clauses in all contractsand specifies reporting channels for commercialbribery. Fraud, bribery, corruption and other forms of ethicalmisconduct are strictly prohibited. Suppliers are prohibitedfrom giving or offering gifts, items or kickbacks, or takingor attempting to take any other disguised action, directly,indirectly or under any guise, to provide improper benets toour employees. Suppliers are also encouraged to report anybreaches of integrity by our employees using the Company'sreporting channels.We have a unified supplier admission standard, whichstipulates specific onboarding requirements for differentsuppliers. Apart from qualification and competence, wealso assess suppliers’ performance in business ethics andintegrity. Supplier candidates who apply for the entry intothe resource library must read the Code of Integrity beforesubmitting qualification materials for review. While thoseincluded in the resource library will be notified of integritycooperation by letter on an annual basis. This year, theCode of Integrity was read over 1,300 times, and more
than 3,400 letters were sent, with all our suppliersparticipating in the business ethics training.This year, the Company’s Audit Department conductedaudits focusing on conicts of interest, gifts, gratuitiesand hospitality, and anti-corruption and anti-bribery.Specifically, the Company reviewed the employmenthistories of certain procurement sta? to verify that they hadno potential conflicts of interest. Furthermore, through asampling approach, the Company also reviewed whetheremployees involved in procurement and operations hadimproperly accepted gratuities from partners or clients,and examined the entire process of inquiries and pricecomparisons for any signs of fraudulent practices.As a member of the Trust and Integrity Enterprise Alliance,G-bits actively participates in training and industry exchangemeetings organized by the Alliance. This year, we participatedin four such events. G-bits continues to learn from externalanti-corruption governance and audit experiences, improvingits integrity culture and anti-fraud system while optimizinginternal control systems and processes to create a fair andtransparent business environment.
Combating unfair competitionG-bits rigorously complies with anti-unfair competitionlaws and regulations in all jurisdictions where it operates,including but not limited to the Company Law of the People’sRepublic of China, the Anti-Unfair Competition Law of thePeople’s Republic of China, and the Anti-Monopoly Law ofthe People’s Republic of China. In all business dealings,the Company is committed to principles of fair trade, mutualtrust, openness, and win-win cooperation, aiming to fostera fair, transparent, and sustainable market environment forcompetition. G-bits has established a management systemto prevent unfair competition, with a focus on compliance-driven operations. The Company continuously refines theinternal compliance mechanism to ensure that all businessactivities align with regulatory requirements.
We strictly prohibit false advertising, monopolizing, tradesecret infringements, and other unethical behaviors. OurCode of Ethical Business Conduct explicitly requiresemployees to respect the legal rights and interests of users,suppliers, and competitors, comply with the principles offair trade in all business activities, and refrain from gainingcompetitive advantages through unethical or illegal means.This year, the Company did not encounter any lawsuitsor significant administrative penalties arising from unfaircompetition practices.
This year, the Code of Integrity was readmore than1,300
timesA total of more than3,400
letters notied of integritycooperation were sent
Enhancing integrity awarenessTo further enhance employees’ integrity awareness and foster a corporate culture of honesty and fairness, we continue toadvance business ethics advocacy and compliance management, ensuring that employees fully understand and adhere to theCompany’s integrity and compliance requirements.
During the year, the Company's business ethics training covered all directors, management personnel
, and allemployees, including full-time and part-time employees, interns, and outsourced employees.
This year, the Company establisheda platform for employees to reportand manage conicts of interest, anddeveloped the Reporting Guidelinesfor Conflicts of Interest to ensure aclear understanding of the concept ofconicts of interest and the reportingrequirements.
The Company regularly delivers integrity and compliance promotioncontent to all employees, including integrity promotion emails duringfestivals and International Anti-Corruption Day awareness emails. Theseinitiatives aim to enhance employees’ awareness of ethical businesspractices, anti-fraud, anti-bribery, and anti-corruption measures. TheCompany also conducts business ethics training for all new employees.After the training, employees will be assessed to ensure that they arewell informed of the Company’s current policies on business ethics.
The Company has established multiple publicreporting channels, including telephone,email, postal mail, and the Intranet. Weencourage both internal and external partiesto report any violations of laws, regulations,company policies, or rules to the AuditDepartment, either openly or anonymously.This aims to promote compliant operationsand safeguard a fair and just businessenvironment.
Improving management mechanismsfor conicts of interest
Advancing integrity culture advocacy
Reporting process
E-mail for reporting: jubao@g-bits.comTel. for reporting: +86 182 5071 2733Mailing address: Audit Department ofG-bits Building, No. 4 Wanghai Road,Software Park Phase II, Siming District,Xiamen
Online reportplatform
Maintaining clear reporting channels
The Company has established a comprehensive reporting process, clearly specifying the policies for protectingwhistleblowers in the Code of Ethical Business Conduct and the Anti-Fraud Regulations, ensuring the full protection ofwhistleblowers' legitimate rights and interests from infringement. The Company provides anonymous reporting channels andrequires the Audit Department to strictly maintain the condentiality of the whistleblower’s name, contact information,and reported matters when investigating fraud, corruption, bribery, and other misconduct. The Company adopts a strict andsevere approach to handle retaliation. For any act that infringes on the rights of whistleblowers and constitutes a violation oflaws, relevant person shall be subject to prosecution for criminal responsibility. In cases of corruption or fraud that has beenveried, a corresponding cash reward will be given to the whistleblower according to the company policy.
Management personnel refers to employees holding managerial responsibilities across the Company's business lines and functional departments,including supervisors at all levels, department managers, and those in higher management positions.
Acceptance
of reports
Assessment
andregistration
Investi-gation
Reportandsummary
Investi-gationreports
Casehandling
Follow-upprocessing
Filing
2221
Corporate Governance and ESG Management
Crafting a celadon trophy with an inheritor of intangible cultural heritage
To preserve and innovate intangible cultural heritage, we invited Master Huang Shunming, an inheritor of Longquan Celadoncraftsmanship, to design a customized Longquan celadon porcelain trophy for the Celebrity Championship of AskTao Mobile.The trophy draws inspiration from the Zuo Bo Gui, the earliest known sports trophy dating back to the Western Zhou Dynasty (circa3,000 years ago). Besides, the trophy is decorated with coiled dragon patterns, a traditional Chinese decorative motif, which iscreatively integrated with the o?cial insignia of the Celebrity Championship, embodying both aesthetic elegance and culturalsignicance. In terms of the crafting process, Master Huang Shunming meticulously adhered to the traditional ring techniquesof Longquan Celadon. The trophy underwent 72 intricate steps to ensure its exceptional quality and artistic value.
Lighting up Zhanqi fish-shaped lanterns to celebrate folk traditionsThe sh-shaped lanterns crafted in Zhanqi Village, Anhui Province, symbolize the longing for reunion and companionship. With ahistory spanning over 800 years, they have become a distinctive component of China’s intangible cultural heritage. In December2024, we collaborated with the traditional sh-shaped lantern culture of Zhanqi Village to launch a limited-edition sh-shapedlantern outt in AskTao Mobile. We also hosted a New Year Fish-Shaped Lantern Festival in the game. Players could team upto participate in a Koi Parade on sh-shaped lanterns, sharing the festive atmosphere and experiencing the unique charm oftraditional folk culture with their in-game friends.
Master Zhou Zhenbang, a calligrapher and painter, writing new year blessings for players
Design draft of the trophy for Celebrity ChampionshipThe coiled dragon pattern on the trophy
The sh-shaped lantern festival for reunion and companionshipThe sh-shaped lantern outt in the game of AskTao Mobile
Developing high-quality products
G-bits always places great emphasis on product quality, striving to provide users with high-quality games that o?er an enjoyablegame experience. The Company reinforces content governance to ensure the positive impact of game content on players,so as to e?ectively safeguard the physical and mental well-being of minors. Keeping up with cultural condence, we strive toenrich our games with culture. To this end, we integrate Chinese culture into the game design, to present the unique charm andprofoundness of Chinese culture to the digital entertainment industry and players worldwide. We also prioritize production qualityby improving various aspects of our game development process. We actively respond to player feedback and make every e?ortto protect user rights, so as to gain higher user satisfaction. During the Reporting Period, the Company did not experience anymajor safety or quality incidents related to our products and services.
Promoting Chinese traditional culture with culturallyenriched gamesAt G-bits, we are deeply aware that Chinese culture serves as the bedrock of the nation’s development, and actively promotingtraditional culture is a responsibility of every enterprise. To honor this commitment, we have developed games such as AskTao(PC), AskTao Mobile, YiNian XiaoYao and Immortal Sword, seamlessly integrating traditional cultural elements into game designand development. Our goal is to show the unique characteristics of Chinese cultural heritage. Cultures are preserved andinnovated as players are immersed in a rich cultural atmosphere during their gameplay.Celebrating the new year with a renowned calligrapher and painter
As part of AskTao Mobile's events, we invited Master Zhou Zhenbang, a distinguished Chinese calligrapher and painter and oneof the“Top 100 Meritorious Artists of the Republic”, to write blessings for players for the new year. This not only showcases theunique charm of traditional calligraphy but also allows players to feel the warmth and beauty of the new year.
2625
Product and Service Empowerment
Preserving traditional culture through intangible cultural heritage promotionprojects
In 2024, YiNian XiaoYao continued the cultural publicity project of “Protecting and Inheriting”, dedicated to promoting traditionalintangible culture heritage projects into daily life. This year, we successfully organized various intangible cultural heritagepromotion events, promoting the Fire Dragon Steel Flower, the dragon head crafting, the Nuo culture and the mortise-and-tenoncraftsmanship. In the future, YiNian XiaoYao will continue to integrate intangible culture heritage into game, allowing more youngpeople to understand and appreciate traditional culture.
To promote the intangible cultural heritage of the mortise-and-tenon craftsmanship, YiNian XiaoYao collaboratedwith Master Liu Wenhui, an inheritor of China’s ancientarchitectural mortise-and-tenon techniques. Together, werecreated Qingxu Temple, an in-game Taoist temple, asa wooden building block model using traditional mortise-and-tenon methods. These handcrafted Qingxu Templebuilding blocks were offered as anniversary celebrationproducts, attracting more people to explore the art ofmortise-and-tenon craftsmanship and appreciate thebeauty of classical Chinese architecture.
Drawing inspiration from the Nuo culture, we collaboratedwith Master Wang Rubin, an inheritor of Enshi Nuo Operamask-making, to hand-carve a custom Nuo Opera maskavatar.Nuo dance is an artistic expression of divine power andspiritual strength. We invited traditional Chinese danceperformer Qisan 73 to create a dance performance, whichwas guided by Master Ye Shijun, an inheritor of Nuo Opera.This cross-disciplinary collaboration blended traditional NuoOpera dance with contemporary elements, breathing newlife into Nuo culture while introducing the ancient Chinesecultural tradition to more people through our game.
The mortise-and-tenon craftsmanship of QingxuTemple in the game of YiNian XiaoYaoHandcrafting the Nuo Opera mask
Protecting andinheriting - themortise-and-tenon
craftsmanshipProtecting andinheriting - theNuo culture
“Fire Dragon Steel Flower” is one of China’s rst intangiblecultural heritage projects. Beneath a dazzling cascadeof molten iron sparks reaching 1,600°C, dragon danceperformers move gracefully, bringing the magnificentspectacle of the “fire dragon” to life. To celebrate the thirdanniversary of YiNian XiaoYao, we invited players to visitTongliang, Chongqing — the birthplace of the “Fire DragonSteel Flower”. With the guidance of Master Huang Tingyan,a nationally recognized inheritor of the dragon dance,players personally experienced the art of dragon dance andimmersed themselves in the mesmerizing tradition of molteniron reworks.
We invited players to visit Master Cao Shengqiong, a city-level inheritor of Caizha (a kind of paper artwork), to learnabout the intricate techniques behind this craft. Playerstook part in creating the framework of a dragon head.By practicing material selection, cutting, weaving, andassembling, the participants learned of the stringency andcraftsmanship required to preserve the intangible culturalheritage.
The re dragon danceCreating the dragon head framework with the inheritor of Caizha
?
Protecting andinheriting - theFire Dragon SteelFlower
Protecting andinheriting - thedragon headcrafting
2827
Product and Service Empowerment
Listening to users’ voices and enhancing user experience
Focusing on user experience in depth, the Company establishes a comprehensive communication mechanism to listen toplayers’ feedback, collect their opinions, and respond to their needs. This initiative ensures that user needs are fully attended toand e?ectively responded to.Focusing on user experienceThe Company has always adhered to the concept of “Serve as the Official Companion by the User’s Side, Creating anExceptional Service Experience”, and is committed to providing professional and e?cient services. This year, the Companyorganized a number of face-to-face communication activities and o?ine competitions to engage with players in-depth about thecurrent status of the products, collect feedback, and listen to their voices. Based on the feedback from players, we continue torene our products, striving to improve the game quality and user satisfaction in all aspects.
In June 2024, AskTao Mobile organized 2024 face-to-face gathering. During the event, players engaged in in-depthand lively discussions with the o?cial development planning team and operation team of the game on topics suchas faction battle gameplay and experience optimization for account upgrades. We iterated and optimized the gameplanning and performance according to suggestions from players.
On June 15, 2024, the annual AskTao Mobile conference was held as scheduled in Xiamen, gathering players andthe development team to discuss game R&D plans and optimization directions. The conference bridged players anddevelopers for in-depth communication, enabling the Company to better understand player needs and optimize gamedesign, continually enhancing the overall game experience.
The face-to-face gathering of AskTao Mobile
The AskTao Mobile conference
Discussion site
Group photo of AskTao Mobile conference
Group photo
Case
Case
On December 14, 2024, the annual national competition of AskTao Mobile concluded successfully. Player teamsprogressed through multiple rounds of auditions and elimination matches, with the top-performing teams competingin the o?ine nals. The competition not only provides players with a diverse combat experience but also o?ered aplatform for in-depth interaction between players and the project team.
National competition of AskTao Mobile
Champion team holding the trophyGroup photo of the competition
Case
3029
Product and Service Empowerment
In order to respond to the needs of the players in time and ensure the high quality of the game experience, the Company hasestablished internal user service systems such as Leiting Customer Service Group Specification, Leiting Customer ServiceReview System and Quality Inspection Work Mechanism. In the design and establishment process of the user service system,the Company has strictly followed the COPC
standard, striving to provide diverse communication channels and high-qualityservices.Attaching great importance to communication with users, the Company has established diverse complaint channels, suchas online interaction, work ticket handling, hotlines, and reception for user visits to easily voice their opinions and suggestions.We have also built a complaint handling platform, aiming to provide users with a convenient and e?cient complaint channel.To further refine customer service management, the Company regularly conducts in-depth analysis of user complaint data,examining aspects like complaint types, frequency, geographic distribution, and user groups. This move can identify weak linksin products and services accurately, and assist in continuous product improvement and innovation, thereby lifting the Company’sproducts and services to a higher level. This year, the Customer Service Department handled 1,013 valid complaints
, allof which were properly resolved.In order to further improve the quality of customer service, the Company has established a service quality inspection mechanismto analyze, guide, follow up and check the defects and areas for optimization found in the inspection process, thus forming aclosed-loop management of user services. The Company also cooperates with the Operation Department to conduct multiplerounds of game ecosystem research and special update research with users. This move helps us to optimize products.In addition, we conduct regular training for customer service personnel and hold monthly service case meetings to sharetypical, common, and outstanding cases. Through this, we set user service optimization goals and elevate the team’s serviceprociency.
COPC (Customer Operations Performance Center) is a global business management and certication standard designed to help organizations deliversuperior user service and operational performance.
Valid complaints are those actually handled, excluding repeated complaints and complaints where the complainant cannot be contacted.
Upholding innovation-driven developmentWith a further focus on innovation and R&D, G-bits actively explores the frontiers of technology and establishes a robustR&D and innovation management system to drive the development of new quality productive forces. We are committed tostrengthening intellectual property protection, and ensuring the security and compliance of technology application, therebyproviding a solid foundation for the sustainable growth of the enterprise.
Exploring technological frontiersPlacing technological innovation at the heart of driving force, G-bits continuously refines its R&D management system, andmakes forward-looking arrangements for cutting-edge technologies to promote the development of new quality productive forces.
Establishing R&D and innovation management systemsThe Company highly values the key role of technological innovation in sustainable development. We have established a soundtechnological innovation management system to ensure that R&D activities are in line with corporate governance requirementsand industry standards for sustainable development, providing system safeguards for the e?cient advancement of R&D.Under the leadership of the Chairman and General Manager, the Head of R&D Business collaborates to guide andcoordinate various aspects of game R&D, ensuring seamless integration between project teams and the R&D platform.As the core unit of game development, project teams are responsible for the entire product development process, from conceptcreation to final launch, as well as ongoing version updates and optimizations. The R&D platform provides comprehensivesupport to project teams in areas such as technical development, artistic design, audio production, and product testing. Throughoptimized resource allocation and cross-departmental collaboration, we ensure that project teams can operate e?ciently whilecontinuously enhancing overall R&D e?ectiveness.The Company has established a systematic reporting mechanism, under which product producers and business line headsregularly report to the Chairman and General Manager on business progress, ensuring the effective execution of R&Dmanagement. Meanwhile, the Company continues to increase R&D investment and drive sustained technological innovationthrough diversied approaches, ensuring the high-quality implementation of innovative outcomes.Strengthening new quality productive forces
As a seasoned player in the game industry, G-bits has consistently focused on cutting-edge technology trends andcontinuously optimized the R&D system. The Company has adopted a series of e?ective management measures to ensureits competitiveness in the rapidly changing market environment and to continuously drive the enhancement of new qualityproductive forces. This has laid a solid foundation for the long-term and stable development of the Company and the industry.
This year, the amount of R&D investment andthe proportion of operating revenue reached
20.50%
accounting for
62.95%
of thetotal number of employeesthe number of R&Dpersonnel was
User communication and services
Ensuring production quality and innovating high-quality games
The Company has established a robust quality management system for game production. By implementing mechanisms toensure clear internal quality control standards, the Company continues to provide users with high quality products and enhancethe game experience.To ensure the stability, smoothness, and security of game products, the Company conducts quality reviews at multiple stages,including pre-launch, development, and testing, through close collaboration between the R&D, operations, and technologyteams. For products that do not meet the required standards, we implement timely rectications to ensure high-quality and on-time releases.We are committed to improving game quality across multiple dimensions. In terms of gameplay, we continuously innovate gameevents, level design, and gameplay mechanics. For visuals, we strive for high standards in art quality, model precision, motionsmoothness, and UI design. In the audio dimension, we focus on enhancing immersion through sound e?ects, voice acting,and music. At the same time, we drive technological innovation through ongoing training programs, such as game renderingtechniques, AI- drawing applications, and performance optimization, ensuring an enhanced game experience for players.AskTao Mobile has received multiple industry accolades, including the “Sixth China Excellent Publication Award (Audio-Visual and Electronic Games Category)” from the China Publishing Association. It has also been recognized as one of the “Top10 Most Popular Original Mobile Games of the Year” in the China Game Industry Annual Conference. YiNian XiaoYao hasbeen nominated for “Top 10 Excellent Creative Games” and “Top 10 Outstanding Emerging Games” by the China Audio-Visual and Digital Publishing Association. It has also won the “Best Mobile Game Production Award” at the Fifteenth CGDAExcellent Game Producer Competition.
3231
Product and Service Empowerment
G-bits attaches great importance to product innovation and strives to create high-quality games that are both engagingand commercially successful. The Company adopts the innovative R&D strategy - “MVP Approach”. In the early stages,producers must clearly define the project’s core concept, including key elements such as core gameplay, uniqueness,target audience, market positioning, and potential risks. Once the project passes the evaluation, a prototype is quicklydeveloped based on the creative concept and undergoes user testing to validate the core gameplay. Throughout thedevelopment process, the team continuously iterates and optimizes at a high frequency, leveraging test results to conductprecise user feedback analysis and promptly address issues to enhance development e?ciency. The “MVP Approach”model effectively helps the Company steer product direction, avoid ineffective investments, and ensure thatvalidated core gameplay, art assets, and monetization mechanisms are seamlessly integrated.Under the “MVP Approach” strategy, the operations team works closely with the R&D team, conducting multiple rounds oftesting and analysis to gain in-depth insights into market trends and user characteristics. This collaboration enables thedevelopment of customized publishing strategies, e?ectively reducing publishing risks and costs.
Protecting intellectual property
The Company strictly complies with the Patent Law of the People's Republic of China, the Trademark Law of the People's Republicof China, the Copyright Law of the People's Republic of China and other relevant laws and regulations. In addition, the Companyformulates the Administrative System for Intellectual Property, the Administrative Measures for Copyright, the AdministrativeMeasures for Patent, the Administrative Measures for Trademark, the Administrative Measures for Domain Name and other internalpolicies. By building a comprehensive intellectual property management system and standardizing the management of intellectualproperty protection, the Company ensures all-round protection for products. The Company's proactive practices in the intellectualproperty protection and transformation of innovative achievements have gained external recognition. We have been awarded thetitle of “National Intellectual Property Advantageous Enterprise” by China National Intellectual Property Administration.In terms of the prevention of infringement upon others’ intellectual property rights, the Company has implemented a BusinessCompliance Self-Inspection Checklist, strengthening the compliance risk assessments for game content and promotional materials,including fonts, images, music, and artwork.In terms of safeguarding its intellectual property rights against infringement, the Company continuously enhances its monitoringcapabilities and has established an independent monitoring network for the whole platform. Additionally, the Company conductsinfringement investigation through the monitoring system, promptly discovers infringement acts, requests infringers to stopinfringement by means of sending letters, warnings, complaints and so on, shortens the handling cycle of infringement, removesinfringing materials and products in an expedited manner.The Company makes continuing e?orts to protect intellectual property rights and crack down on infringement. The Company carriedout a number of special actions to “combat intellectual property rights infringement”, cracked down on the infringement of intellectualproperty rights such as gaming private servers, cheats, trademark infringement, software copyright infringement, phishing websites,etc. A variety of measures have been taken to protect the intellectual property rights of the Company's products.The Company encourages continuous innovation among its employees and is committed to increasing investment in research anddevelopment. During the Reporting Period, the Company obtained 4 new patent authorizations. As of the end of the ReportingPeriod, the Company has secured 20 invention patents, all of which were applied to its main business. At the same time, theCompany continues to accumulate intellectual property in the elds of software and cultural creation. We have obtained a total of446 copyrights, including 358 software copyrights, 60 art copyrights, 8 music copyrights, 7 literary copyrights, 11 sound recordingcopyrights, and 2 copyrights for works created in a manner similar to lm production.
Practicing ethics in science and technologyAdhering to the concept of technology for good, the Company strictly complies with ethical standards in cutting-edge technologiessuch as AI and big data to ensure compliance and social responsibility in technology application.The Company remains committed to ethical issues in science and technology, enhancing compliance management of technologyapplication to mitigate potential risks. In elds such as AI drawing and game content generation, the Company rigorously upholdsethical principles of fairness, justice, and reasonableness while strictly enforces data compliance requirements to safeguard userinformation.Additionally, the Company irregularly conducts training and educational programs on ethics in science and technology. Throughdiverse channels, knowledge on ethics in science and technology is shared, and employee awareness of ethics and compliance inthe application of technology is continuously enhanced.This year, the Company strictly observed the principles of ethics in science and technology and did not experience any violation ofsuch ethics.
Innovative R&D strategy - “Minimum Viable Product (MVP) Approach”
The Company is actively exploring the application of AI technology in game R&D to continuously improve R&D productivity.In 2023, the Company established the AIWebHub platform, integrating various commonly used AI drawing toolsand models to promote the application of AI drawing in game development. In 2024, the Company optimized theplatform based on user feedback, improving underlying algorithms and the model training process to enhanced both itsusability and e?ciency. By leveraging AIGC and other cutting-edge technologies in game art, the Company has e?ectivelyreduced content production time and resource consumption. While ensuring high-quality output, these advancements havealso signicantly enhanced artistic productivity and overall operational e?ciency.
Exploring technological frontiers
Cloud computing is reshaping the production mode of the game industry. G-bits enhances the utilization of computingresources through cloud storage and computing optimization technologies, thus improving the stability and exibility ofgame services.Cloud storage optimization: Reduces local hardware dependency, minimizes energy consumption during data transmission,and improve the e?ciency of resource utilization, thus providing technical support for sustainable development.
Intelligent computing scheduling: Dynamically adjust computing resources according to business needs, and improveserver utilization, thus reducing energy waste caused by idle computing power.In the future, G-bits will continue to advance technological innovation. Leveraging the application of AI and other cutting-edge technologies in game R&D and operations, we will enhance our technical capabilities and product quality.
Deepening cloud computing applications
N
N
Y
Y
Y
N
Rening core projectstrategies: gameplay,uniqueness, targetaudience, marketpositioning & risks
Valuating whether toinitiate the projectStopStop
Stop
Demodevelopment
Demo design
frameworkclarication
Concept phase
Post-launch phase
Development phase
Demo phase
As of the end of the Reporting Period, the Company has secured
invention patents
We have obtained a total of
copyrights
Demo budget
planning
Project budget planning
Small-scale team
expansionDemo testing& analysis
Team expansionGamedevelopmentGame testing& analysisDevelopmenttuningGamelaunchBusinessanalysisVersiontuning
3433
Product and Service Empowerment
Development of data security system
Data lifecycle management
Strictly observing the Cybersecurity Law of the People’s Republic of China, the Data Security Law of the People’s Republicof China, the Security Protection Requirements for Key Information Infrastructure of Information Security Technology, theGuidelines for Filing Standard Contracts for Cross-border Transfer of Personal Information, and other laws and regulations, G-bitshas developed a comprehensive data security and user privacy protection management system. The Company has formulatedand continuously updated policies covering all relevant business lines, including the Data Security Management Measures,the Management Measures of Personal Information Protection, the Network Information Security Management System andTechnical Protection Measures, the User Information Security Management System, the License and User Agreement for LeitingGames, and the Website and Network Security Prevention Measures. These policies clearly define the rules for collecting,processing and protecting users’ personal information, and lay institutional grounds for pre-event prevention, in-event monitoringand post-event follow-up.The Company has established a dedicated cybersecurity leadership team led by the Chairman and General Manager.This team is responsible for overseeing and making strategic decisions on the Company's data security and privacy protection,ensuring that all operational practices comply with domestic and international regulatory requirements. The Company adoptsa tiered management model. Under this model, departments such as the Security Department, the Technology PlatformDepartment, and the Information Technology Center perform their respective duties, and the safety and quality center, customerservice team and legal team work in close collaboration to build a full-chain security management system. This ensuresthat the Company operates in a legal and compliant manner. The Company strengthens the implementation of data securityresponsibilities of the team through a performance appraisal mechanism, promoting standardized security management. TheCompany possesses extensive industry background and professional qualifications in data security and customer privacyprotection. The Chairman and General Manager has been deeply engaged in the game industry for many years, ensuring asystematic approach to security management from strategic decision-making to execution. Team members hold authoritativecertifications in the security field, such as Certified Information Security Professional (CISP), Certified InformationSecurity Assurance Worker (CISAW), Certied for Information System Security Professional (CISSP), Certied CyberSecurity Response Professional (CCSRP), Certied Information Security Professional - Penetration Test Engineer (CISP- PTE), and ISO 27001 Information Security Management System Auditor.The Company has established an emergency event reporting mechanism to ensure that in case of any data security incidents(such as a hacker attack or data leak), employees can report to the Board of Directors and relevant departments in a timelymanner. Thus, they can initiate a cross-departmental emergency response and formulate remedial measures quickly to minimizedata security risks.
The Company continues to improve the data lifecycle management system. By improving the management mechanism,conducting dynamic monitoring, and fostering employees’ awareness of data security, the Company ensures the security andcompliance of data collection, storage, usage, and destruction.
Data security lines of defense
Building a holistic data security framework
For network security, G-bits has developed the Management Measures of Personal Information Protection, the Data SecurityProtection Management Policy, the Data Classication and Grading Policy, the Data Security Management Measures, the DataCollection Security Management Policy, the Data Storage Security Management Policy, and other internal regulations. Theseregulations collectively form a comprehensive data security compliance system, ensuring that user data is protected throughoutthe lifecycle.The Company has established a security protection system that encompasses key areas such as data securitycompliance management, risk prevention and control, and player privacy protection. Additionally, the Company hasbuilt up three lines of defense to ensure the standardization of data management policies and processes, safeguardingthe of user privacy and data security.
The Company classifies and manages data based on its type and importance, developing dedicated security strategies toensure data security throughout its lifecycle. For game operations, data such as players' personal information and business-related data is encrypted, while o?ce and operational data, including game code and general o?ce data, is strictly controlledthrough authorization management. Additionally, core project code is restricted to the R&D network’s production environment,minimizing potential security risks. Meanwhile, the Company continuously enhances security management across all stages,including data collection, transmission, processing, storage, usage, and destruction, to ensure compliance and data integrity.
The Company has formulated appropriate management and technical solutionsfor the network, host and application systems, respectively, such as physicallyisolating the core network segments from other networks, deploying self-developed intrusion detection system for periodic security scanning and baselinechecks, strictly controlling access by third-party applications, and adopting WAF(Web Application Firewall), anti-DDoS (Distributed Denial of Service Attack) andother measures to reinforce security protection for the Company’s systems.The self-developed security inspection system regularly and automaticallyscans the vulnerabilities in Company’s business systems, shortening the timefor detecting security vulnerabilities. Additionally, we conduct regular penetrationtests and organize company-wide network security drills, including phishingemails, network attack & defense simulations, to e?ectively raise all employees’awareness and capabilities of data security.We regularly organize security tests and audits for supervising the implementationof security measures at all stages. The Audit Department conducts special auditsto e?ectively supervise and check the e?ectiveness of the rst and second linesof defense and urges timely rectication for detected problems. This ensures thecontinuous improvement and e?ective operation of the data security managementsystem.
The third line of defense,“security test and audit”
The rst line of defense,“defense-in-depth system
in layers”
The second line of defense,
“security monitoring and
attack/ defense drills”
3837
Protecting Data Ecosystem
The Company rigorously adheres to the Information Security Technology - Basic Requirementsfor Collecting Personal Information in Mobile Internet Applications (Apps)(GB/T 41391-2022)toensure compliant and transparent data collection. In addition, any unnecessary data collection isstrictly prohibited. Before collecting user privacy data, clear notication shall be provided,specifying the data type, purpose, and destruction method. Additionally, users are grantedthe right to independently access, modify, or delete their personal information. Adheringto the principle of collecting user information on a legal, open and minimal basis, the Companyminimizes the data collection and storage.The Company has deployed anti-DDos servers
, WAF(Web Application Firewall) and tra?cmonitoring system to identify and intercept abnormal tra?c and prevent hacking in real time. TheCompany ensures data safety, intactness and condentiality by encrypting the transmissionchannels and restricting accesses.
Anti-DDos servers are servers designed with strong capability to prevent and mitigate DDoS (Distributed Denial of Service Attacks). These servers mainlyhelp protect against tra?c-based attacks, CC (Challenge Collapsar) attacks, and other malicious network attacks, ensuring the stable operation of theservers and the data security.
The Company always desensitizes users' personal information, strictly limits the usage of users’information, and collectively archives it after use. To better ensure the security of data processing,the Company has set up role-based limits according to the actual business, maximizing thesecurity of private data. For instance, the R&D personnel in charge of coding encryption anddecryption programs are denied direct access to the encrypted database, the key to whichis kept by the O&M personnel.Taking seriously the encrypted storage of sensitive personal information and access control, theCompany adopts di?erent storage strategies for di?erent information based on types and privacylevels, continuously enhancing its capabilities in encrypted storage, data backup and recovery. Tobetter encrypt and store user data, the Company has adopted the secure encryption algorithmand the key mechanism. The encryption algorithm and keys are managed separately bydi?erent departments to ensure that the data cannot be decrypted and analyzed by anysingle party.The Company discloses the purpose and method of the using user’s personal informationin the user privacy policy, limits the use to the scope necessary for the operation of theproduct, and obtains the consent of the player. At the same time, the internal personnel of theCompany must comply with the relevant rules when accessing data, as follows:
The Company has established a strict data destruction process in line with regulations. Weconduct regular checks and destroy, or anonymize expired data, securing the holistic approach fordata security management, and e?ectively eliminating residual risks.
DataCollection
DataTransmission
DataProcessing
DataStorage
Data Usageand Sharing
DataDestruction
Data security monitoring and improvementG-bits rmly believes that robust data monitoring serves as a cornerstone for ensuring data security and safeguarding personalinformation. Through compliance inspection, internal and external security audits, risk prevention and contingency plans, ahealthy and safe data environment has been established within G-bits with security risks prominently lowered.
To better consolidate users’ data security, the Company has employed a third party for the on-site specific audit. The partyconducted a comprehensive inspection on aspects such as code scanning, interface vulnerabilities, and data storagesecurity, and promoted risk rectification. Furthermore, the Company regularly conducts security reviews of its suppliersand pays attention to the results of compliance audits to ensure alignment with the contracts and regulatory requirements.
To e?ectively and promptly identify data security risks and evaluate thee?ectiveness of the data security management system, the Companyconducts internal data security audits on an annual basis, and drivesthe rectification of identified vulnerabilities. In addition, the Companyengages third-party institutions to conduct comprehensive evaluationsof its security environment and network boundaries, and continuouslyoptimizes the security management system by benchmarking industrystandards. During the Reporting Period, the core informationsystems of the Company and its subsidiaries have been archivedas the third level of protection of the information system security.
The Company has established the Network and Information Security Plan to enhance the emergency management ofunexpected incidents. We have claried the responsibilities for risk responses, guaranteeing the stable operation of informationsystems. The Company also requires all departments to complete periodical o?-site and o?-host backup. Core user data isencrypted and backed up in both primary and secondary data centers, and then synchronized to remote cloud databases,preventing data loss.All system maintenance operations are required to be conducted through a bastion host, with multi-factor authenticationadopted to ensure the authenticity of users’ identities. The bastion host keeps log records and audit logging for users’ activities,preventing tampering or deletion, to support post-incident security analysis and event tracing.
For the information security management of suppliers, the Company has formulated the Management Measures for Third PartyNetwork and Information Security, and has established a supervision and management mechanism for supplier data securityrisks. We only provide suppliers with data within the contractual purpose and scope, supervise their reasonable use of data, andincorporate data security management requirements into supplier admission, cooperation, audit, and withdrawal processes, soas to strengthen the security, availability and condentiality of suppliers’ data services.We require that all providers of cloud products and network data resource services obtain certifications such asISO9001, ISO20000, ISO27001, or TL9000. Additionally, venue suppliers involved in data center operations must holdCQC
certication, ensuring the security and compliance of our infrastructure.
Specic compliance inspections
Internal and external security audits
Risk prevention and contingency plans
Supplier data security management
Third level Security of Information System
Protection Certicate
Strictly controlling the access and analysis of plaintext data, and performingsecondary encryption or obfuscation process to reduce the identiability of the data;Restricting data access and keeping records of data access and data manipulation;Restricting the data to internal use only. All data should be encrypted and stored inthe database to realize the separation between code and production environment;Setting up role-based limits to restrain the R&D personnel from accessing onlinedatabases, so as to separate data logic from the key;Requiring approval from the superior leader for all internal transmission of sensitivedata.
CQC certication is a voluntary product certication implemented by the China Quality Certication Center (CQC). It aims to indicate that products meetrelevant quality, safety, performance, and electromagnetic compatibility certication requirements through the application of the CQC mark.
4039
Protecting Data Ecosystem
Development of data security awareness
Game content review
The Company conducts security training for employees at di?erent stages and in di?erent positions to continuouslystrengthen the data security awareness of all employees. For new employees, the Company disseminates information securityawareness through promotional emails, utilizing scenario-based comics and security principles to popularize security knowledge.For all employees, the Company has launched “Information Security Awareness Training” video courses on its internal onlinelearning platform, making learning available anytime and anywhere.The Company regularly conducts data security training and encourages employees to engage in external training. During theReporting Period, the security department independently organized 10 technical training sessions, covering topicssuch as coding security and business operation security. Additionally, the Company regularly conducts information securityawareness campaigns to ensure that security awareness is integrated into daily work.The Company always focuses on optimizing the data security and customer privacy protection management system andcultivating relevant talents. We independently research and develop personal information security testing platform and regularlyparticipate in professional training organized by the Ministry of Industry and Information Technology and the TelecommunicationTerminal Industry Association to ensure that the data security management system always aligns with the latest industrystandards. At the same time, the Company has established a regular security training model, conducting regular security drills,professional skills training, and simulated penetration testing to strengthen the team’s practical experience in data securitystrategy implementation, risk control, and response capabilities. Under the dual guarantee of technological innovation andprofessional training, the Company maintains the stable operation of the data security system, providing strong support for thesustainable development strategy.
Adhering to the philosophy of operation compliance, the Company strictly complies with the Provisions on the Administration ofOnline Publishing Services, the Notice on the Administration of Mobile Game Publishing Services, the Provisions on EcologicalGovernance of Network Information Content, and other laws and regulations. In addition, to ensure the safety of and control overproduct content, we have established a comprehensive game content review system and implemented several internalpolicies, including the Content Editing and Review System, the Online Editing and Content Self-Review System,and the Game Operation and Content Self-Review System, covering the entire lifecycle of both R&D and operationalproducts. In addition, being an active party to the Convention on Anti-addiction and Self-discipline of the Online Game Industry,the Company fully embraces self-discipline principles. We implement stringent content controls across game development andoperations.In terms of content review, the Company diligently enforces the editing responsibility system and the requirements for contentreview and proofreading, resolutely preventing any undesirable content that may negatively affect the physical and mentalhealth of users, including but not limited to violence, sexual innuendo, hate speech, terrorism, misinformation, harassment, self-harm or suicide and discrimination. Our unwavering commitment is to create positive and culturally enriched game products. Weaim to deliver positive values through high-quality content and foster a healthy gaming culture, thus driving the high-quality andsustainable development of the industry.
Safeguarding the healthy content ecosystem
At G-bits, we are committed to compliant operations and fullling our corporate social responsibility to promote the healthy andsustainable growth of the cultural industry. The Company strictly adheres to relevant laws and regulations. We have establisheda sound review mechanism for content compliance, strengthened measures for minor protection, and optimized the gameecosystem. Through a multi- tiered governance approach, we provide users with a healthy game environment.
准入阶段
SupplierAdmission
Supplier Audit
SupplierCooperation
SupplierWithdrawal
●Conduct background checks and security qualification review, comprehensively evaluate thecandidates’ data security capabilities, and select suppliers with better data security performance.
●Implement measures such as data destruction, authorization revocation, and log review when asupplier terminates cooperation to prevent data leakage.
●Sign the data security agreement or security responsibility commitment letter with the supplier,specifying the supplier’s data access, security responsibilities and necessary security protectionmeasures, as well as responsibilities and penalties for violations;
●Ensure job responsibilities and account privileges adhere to the principle of least privilege;
●Control and manage key processes where the suppliers are involved, such as debugging ofcollection system interfaces, desensitization and destruction of sensitive data.
●Conduct security tests for the security of software development kits (SDKs) and review thesecurity status of the supply chain on a regular basis;
●Conduct third-party security assessments of purchased systems, identify product vulnerabilitiesthrough o?ensive and defensive security testing, and require suppliers to correct security issuesidentified. For suppliers who still fail to meet the Company’s requirements after remediation,the Company will terminate its relationship with them. Even after the purchased system goeslive, the Company will continue to track its vulnerabilities, and include the system in the regularsecurity inspections and manual penetration tests, assessing the security of the systemcontinuously and comprehensively.
4241
Protecting Data Ecosystem
Governance of game content ecosystem
Protection of minors
Minors represent the future of the country. The Company proactively alignswith the policies and initiatives of the state regarding the protection of minors,continuously working to create a clean and safe cyberspace. Safeguardingthe physical and mental well-being of minors is considered an indispensableresponsibility of the Company. The Company rigorously adheres to therequirements outlined in the Law of the People’s Republic of China onthe Protection of Minors, Cybersecurity Law of the People’s Republic ofChina, Regulations on Network Protection of Minors, the Guidelines for theConstruction of Juvenile Modes of Mobile Internet, the Notice on PreventingMinors from Indulging in Online Games, and the Notice of the StateAdministration of Press and Publication on Further Strict Management andE?ective Prevention of Minors from Indulging in Online Games, Opinions ofthe State Council Leading Group for the Protection of Minors on Strengtheningthe Protection of Minors and other laws, regulations and relevant standards.Comprehensive and in-depth e?orts are made to enhance the protectionof minors by strictly implementing requirements such as real-nameauthentication and addiction prevention. The Company consistentlyenhances age-appropriate notifications and content restrictions forgames, continually optimizes workows and protective measures, andadvances the implementation of a dynamic inspection mechanism.
Content compliance training
Compliance testing and management
The Company always prioritizes content development as the core focus. While strictly adhering to relevant laws, regulations,and moral norms related to online and digital publishing, the Company continues to conduct various content compliance trainingprograms to comprehensively enhance the compliance and responsibility awareness among all employees. Building on its e?ortsto strengthen the dedicated publishing editorial team, the Company has further extended the editorial capability developmentsystem to product R&D, marketing promotion and user operations, and intensied training and compliance publicity. To ensurethorough content compliance review, the Company assigns specialized personnel to oversee the entire process, from projectinitiation to game publishing, and stipulates content review responsibilities at every stage, so as to ensure that all publicationsfully comply with legal and regulatory requirements.
The Company has established a robust compliance testing process for game products, ensuring that all productsand their updated versions undergo multiple compliance reviews before official release. These reviews cover keyareas such as content compliance, privacy compliance, data security, and information security. A strict acceptancemechanism is enforced to ensure that all products meet relevant laws, regulations, and industry standards. For websites,forums, and advertising content, the Company strictly adheres to advertising regulations, formulates internal compliance policiesand implements a multi-level review mechanism to ensure advertising’s compliance with laws and regulations. The Companyexplicitly prohibits or strictly limits advertisements related to tobacco, alcohol, weapons, and gambling while enhancing controlsover content involving violence, discrimination, cultural sensitivities, misinformation, children’s rights, and public safety andhealth. These measures ensure that our advertising content aligns with regulatory requirements and social responsibilitystandards.
Content ecological governance system
The Company has established an information content security managementgroup, led directly by the General Manager’s O?ce, coordinating work acrossvarious products and technical departments to improve the top-level design of theCompany’s compliance system.Top-level design
and teamdevelopment
The construction of content security platform tools is continuously being enhanced.Currently, the image recognition systems have been implemented across relevantbusiness areas of the Company. Simultaneously, internal early warning andrelevant tools shall be prepared in advance. The Company has set up specialemergency response personnel to be on duty around the clock to respond to variousemergencies, improve the emergency response capacity of the Company, carry outspecial resumption optimization on a regular basis, and further build a rewall for theinformation security of the platform.Special promotionand optimization oftool construction
The Company strictly adheres to the Cybersecurity Law of the People’s Republic of China, Law of the People’s Republic ofChina on the Protection of Minors, the Law of the People’s Republic of China on the Protection of Personal Information, theAdministrative Measures for Internet Information Services, the Provisions on Ecological Governance of Network InformationContent and other applicable laws and regulations. The Company has established a governance system for game contentecology and security, enhancing regulatory processes, standardizing security platform development, and improving platformcoordination e?ciency and risk prevention capabilities.To reinforce security measures and prevent undesirable content, the Company has established multiple complaint and reportingchannels, including in-game customer service, a player service public account, complaint mailbox, complaint website, and playerservice hotline. Simultaneously, various methods, such as content security platform audit, and manual reviews, are employed.Through the implementation of dynamic management, the Company aims to create a clean online environment.
The Information Content Security Management Group promotes the establishmentof various work norms and internal systems, such as the Administrative Measuresfor the Information Security Assessment of New Internet Technology and Business,the Measures for the Operation of Strategies for the Hierarchical and CategorizedManagement of the Ecological Governance of Network Information Content, theSelf-review System for Game Operating Content, the Self-review System for OnlineEditing Content, the Follow-up Comment and Content Ecological ManagementSystem, to strengthen internal constraints.
Standardizedcontent governancesystem
4443
Protecting Data Ecosystem
Enhancing the protection mechanism for minors in online games Clear channels for minor complaints and reports
The Company takes proactive steps to establish and continuously refine the protection mechanism for minors inonline games, improving the e?ciency of both machine and manual identication. Strict measures are implementedto address issues such as online bullying and internet addiction, preventing the dissemination of content that maybe harmful to the physical and mental well-being of minors, including vulgar and violent material. The Company fullyimplements the regulatory requirements outlines in the Regulations on Network Protection of Minors and the Guidelines for theConstruction of Juvenile Modes of Mobile Internet. Besides, the Company systematically reviews and optimizes the internalminor protection framework, with responsibilities further clarified, to ensure the effective implementation of all protectivemeasures.This year, to strengthen the governance of online environment for minors, the Company has made continuous e?orts to optimizethe protection processes and improve their e?ectiveness. The Company has advanced a dynamic inspection mechanism andreinforced safety management for in-game social interactions, ensuring a clean and healthy social space in games. Additionally,during key periods such as student vacations, the Company has carried out 6 special campaigns to combat improperonline language, illegal external links to unlawful information, and grandstanding behaviors of online content creators.The Company has also refined content management requirements within communities and groups for minors, enhancingcontent oversight to foster a safer and healthier cyberspace.
Optimize the real-name authentication and anti-
addiction system of the operation platform
Improve age-appropriatenotications and gamecontent restrictionsdescriptionsConsolidate minors-related complaint andreporting channel
Improve the ecosystemgovernance capacity of theonline information contentFurther upgrade parent
guardian platform
The Company consistently intensies e?orts in safeguarding minors, furtherrefining the development of user service areas, and the mechanisms forcomplaints and reports. Dedicated channels have been established to facilitateminors’ complaints and reports. The Company has made public a specificemail address for complaints and reports related to minors (gmweicn@leiting.com) on the game website. Additionally, a designated “Reports InvolvingMinors” page/menu option has been set up on the official account of theLeiting Game Service Center on WeChat. This underscores our unwaveringcommitment to a “zero-tolerance” stance against issues that compromisethe legitimate rights and interests of minors. Concurrently, we proactivelyadjust our focus on the protection of minors based on their gaming activities,implementing relevant measures promptly.
Enhancing the parental guardian platformThe Company continues to enhance development of the parental guardian platform, ensuring the supervision of minors’ gamebehavior. Upon linking a minor’s game account, parents will receive real-time SMS notications for the minor’s logins and in-game transactions. Additionally, they can easily enforce restrictions on the minor’s account, preventing gameplay and restrictingtop-up activities. Simultaneously, the Company is refining the customer service infrastructure, addressing parental inquiriespromptly. This initiative aims to acquaint parents with the platform’s operational procedures and assist them in conguring theminor mode across various mobile devices, fostering the healthy growth of minors.
In November 2024, the Company was invited to participate in the “E-Protection for Minors: Building a Safer DigitalFuture” - the 2024 Fair on Online Protection for Minors in Shenzhen, jointly organized by Cyberspace Administrationof Shenzhen, Shenzhen Women’s Federation, and Shenzhen Commission of Spiritual Civilization.At the conference on the sharing of protection achievements, the Company, as a corporate representative, delivereda speech introducing the minors protection framework and related public welfare initiatives, which was recognized byCyberspace Administration of Shenzhen.
“E-Protection for Minors: Building a Safer Digital Future” initiative by CyberspaceAdministration of Shenzhen
The 2024 Fair on Online Protection for Minors in ShenzhenLetter of appreciation from Cyberspace
Administration of Shenzhen
Guidelines for minors-related reporting onthe o?cial website of Leiting GamesCase
Schematic Diagram
of the ProtectionSystem of Minors
on the LeitingGames Platform
●
Rigorously handle statements that violate regulations or aredetrimental to minors;
●Enforce strict limitations on minors using adult identities to participatein games, analyzing, assessing, and addressing suspected minoraccounts through various channels;
●Continuously update and iterate rules for handling minor incidents.
4645
Protecting Data Ecosystem
Talent development strategyProtection of employee rights and interests
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 of China. Toprotect the legitimate rights and interests of employees, we also adopt a robust talent management system that aligns with oursustainable development goals.
Employee remuneration, performance and feedback
Fair recruitment
Strictly abiding by 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 theRegulations on Paid Annual Leave for Employees, G-bits has formulated internal policies such as the Management Measuresfor Salary and Benet to establish a market-competitive remuneration package for employees. During the Reporting Period, theCompany fullled its obligation to pay salaries on time and in full and made required contributions to social insurance and thehousing provident fund, including pension insurance, medical insurance, work injury insurance, unemployment insurance, andmaternity insurance, providing employees with a comprehensive social security system.The Company has developed a remuneration package consisting of basic salary, performance-based compensation,bonus, subsidy, benefit and others. Moreover, we adopt a multi-dimensional evaluation framework for employees’performance. In response to different business needs, the Company implements a mechanism combining quarterly andmonthly appraisals. During each appraisal cycle, supervisors set targets with employees and provide coaching in daily work.In the performance evaluation stage, employees conduct self-assessments before the supervisor provides a comprehensiveevaluation, considering the self-assessment, and o?ers feedback through interviews and other channels. If employees haveconcerns about their performance evaluation results, they can le an anonymous complaint through the designated channel.HR and the supervisor will conduct a further assessment to ensure fairness and protect employees' privacy. In addition, theCompany requires supervisors to formally communicate with employees on performance at least once a quarter. During thecommunication, supervisors should recognize employees’ contributions, clarify directions of improvement, and help them makecareer progress.
The Company consistently upholds the principle of fair and just employment when recruiting talent. In particular, the Companydoes not tolerate any form of discrimination in employment, and is committed to creating an inclusive and fair workplace foremployees regardless of gender, nationality, age, race, ethnicity, religion, sexual orientation, family status and disability.To eliminate all forms of child labor and forced labor, we strictly abide by the Law of the People's Republic of China on theProtection of Minors, the Regulations on the Prohibition of Child Labor and other relevant laws and regulations and haveformulated internal management policies such as the Management Measures for Labor Contracts. All employees are employedvoluntarily and of their own free will as the Company enters into employment contracts with them on an equal and voluntarybasis. During the Reporting Period, the Company had no labor disputes.Through various recruitment channels, we strive to build a stage for the excellent players in the industry to bring out theirtalents. The Company has formulated internal management policies such as the Passing a Probation Period and ManagementMeasures. During the recruitment, we follow the principle of "internal candidates rst, open and fair recruitment, merit-based selection," and develop a specialized recruitment assessment tool. Excellent candidates who are in concert with theCompany's philosophy are selected by interviews and written examinations. If there is any conict of interest (such as familyties or a referral relationship) between the interviewee and the interviewer, the interviewer will not be involved in any part of theinterview. This ensures fairness and transparency during recruitment and employment.
G-bits has always believed that talents are fundamental for corporate sustainable development. The Company, in the contextof industry trends and business needs, formulates talent development directions and plans based on talent gaps,demand surveys, talent assessment, and the status of core talent reserves. This strategic approach ensures a rich pool oftalent resources, meeting the sustained development needs of the Company.The Company follows a strategy-driven talent recruitment model. We accurately recruit and select high-potential professionalsaligned with the business development plan. This ensures a strong t between employee capabilities and business demands.Meanwhile, we continue to optimize the talent structure, strengthen team diversity and collaboration, and promote innovationacross the organization. By setting up global recruitment channels, we attract excellent individuals from all over theworld, so as to support the Company’s development strategy of globalization. To enhance operational efficiency andunlock employees’ potential, the Company assigns employees appropriate roles and responsibilities based on their strengthsand development needs. We have fostered a fair, inclusive and growth-oriented workplace, so that each employee can give fullplay to his or her professional value.Employee development is a key priority, and we tailor training programs for employees at different departments and withdi?erent professional backgrounds, considering the characteristics of various businesses and projects. These multidimensionaltraining initiatives aim to support business breakthroughs in team management, capability enhancement, and creative mindsetdevelopment. The Company has established a highly competitive compensation system, promoted a bottom-up R&D approach,and implemented open competition mechanism for key positions, a talent rotation mechanism, and diverse incentive plans.These measures offer outstanding talents more opportunities for development, contributing to the overall dynamism of theorganization. Moreover, the Company conducts regular employee satisfaction surveys, thus accurately identifying key factorsthat a?ect employee experience through data analysis and developing targeted improvement plans. In addition, we carry outdiversied cultural building activities to strengthen collaboration and cohesion across teams. These e?orts provide employeeswith a more positive and healthier working environment.
5049
Talent Sustainability Development
The Company adopts a zero-tolerance policy toward any form ofdiscrimination and unfair competition. G-bits is committed to fostering asafe, equal and diversied working environment for all employees.
Anti-discrimination andanti-unfair competition
Anti-harassmentThe Company maintains a zero-tolerance policy towards workplaceharassment in any form, including but not limited to offenses, abuse,gender-based or race-based disparagement and sexual harassment.The Company continues to advance the strategy of diversied talents. We attract and cultivate excellent individuals with di?erentbackgrounds and professional specialties, promote the exchange of diverse minds, and inspire innovation, so as to fuel theCompany’s sustainable development. Furthermore, the Company has established smooth communication channels to ensureemployees’ free expression of their demands. In case of unfair treatment or inappropriate behaviors, employees can file acomplaint anonymously through the complaint channel. The Company will assess and address the complaint in a fair manner toprotect employees’ rights and interests.
8 Junior management refers to supervisors and equivalent-level personnel responsible for management duties within various business lines of the Company. 9 Senior management refers to department managers and above, including division heads.
STEM is an acronym for Science, Technology, Engineering, and Mathematics, representing the elds of education and career development in these fourdisciplines.
Contributing to diversity and equalityThe Company strives to create a diversified, equitable and inclusive workplace. We abide by the Law of the People'sRepublic of China on the Protection of Women's Rights and Interests and other laws and regulations. We guaranteeequal pay for equal work and ensure equal opportunities in recruitment, payment and promotion.We respect and safeguard the basic rights of all employees by banning human tra?cking, forced labor and child labor. Weensure that all employees are free from any form of discrimination, harassment or unequal treatment due to race, gender,religion, age, health condition, political opinion and other factors as required by applicable regulations. At the same time, theCompany requires suppliers and partners to follow the same standards and work together to maintain a working environmentthat is fair, legal and respectful of human rights.
Female in positions
99.04%
0.62%
0.34%
26.49%
25.62%
28.13%
16.44%
8.07%
68.70%
15.69%
51.58%
31.30%
48.42%
69.38%
14.93%
The Chinese MainlandOverseasHong Kong, Macao andTaiwan regions of ChinaR&D personnelNon-R&D personnel
BygeographicalregionByprofessionals
MaleFemale
Junior college degree and belowBachelor's degreeMaster's degree and aboveUnder 3030-50
By gender
By academicqualicationBy age group
In all management positionsIn junior management
positionsIn senior management
positionsIn revenue-generating managementpositionsIn STEM
-related positions
62.95%
37.05%
5251
Talent Sustainability Development
Employee welfare
We provide all employees with benets and care in respect of health, life and nancial support to help them better maintain work-life balance. We accompany employees and their families through di?erent stages of life, continuously enhancing employees’sense of happiness, fulllment and belonging.Meanwhile, the Company actively fullls its social responsibilities by continuously promoting employment and creating exiblejob opportunities, providing stable career development prospects for di?erent job seekers. During the Reporting Period, theCompany mainly o?ered exible jobs to outsourced personnel and provided them with basic benets.
Maintenance of smooth communication channels
G-bits strives to establish diverse communication channels for employees. Any employee can give feedback on managementopinions and suggestions at any time, which will be followed up and resolved by the human resources and corporate culturemanagement personnel in time. In addition, the Company conducts an annual 180-degree assessment for employees.Evaluation and feedback on the management personnel are collected from their direct superiors and subordinates, and thenpassed on to the evaluated management personnel to help them enhance their management skills.
All employees can ask questions, provide opinions, or make suggestionsat any time. After collecting and summarizing the questions, the Companyorganizes a “Founder Meetup” event every two or three months, in whichthe Company founder responds to each question. During theReportingPeriod, the Company held a total of 5 “Founder Meetup” activities, with 334questions collected and addressed.
The Company regularly invites employees to participate in “Little GListening” interview activities. By listening to the employees’ voices,the Company understands their opinions and concerns, and strives todevelop an open and free culture for employees. We adopt the “active+ passive” approach to build a communication platform through multiplechannels at di?erent levels and in all aspects, encouraging employees tocommunicate sincerely with the Company, and to put forward reasonablesuggestions for the Company's management and development. Duringthe Reporting Period, the Company conducted a total of 5 batches of “LittleG Listening” cultural interviews, with 50 participants.
The Company regularly holds group meetings to convey the connotationof corporate culture and help employees have a clearer understanding ofthe values of the corporate culture through the display and discussion oftypical cases. During the Reporting Period, the Company organized a totalof 5 corporate culture group meetings, with 103 participants.
In 2024, the Company worked with external research institutions to conduct a comprehensive survey onemployee satisfaction for all sta? members, aiming to thoroughly assess employee experience and organizationalmanagement effectiveness. The survey covers five dimensions of development direction, leadership, corporateculture, job content and rewards, reflecting employees' recognition of the Company's overall environment. TheCompany has developed and implemented a series of targeted improvement measures for the dimensions with thelower scores in the survey. These measures not only optimize organizational management but also continuouslyenhance the employee experience, further strengthening team cohesion and business competitiveness.
“Founder Meetup” events
"Little G Listening" cultural interview activities
Corporate culture group meetings
Employee satisfaction survey
conducted a total of
batches of“Little G Listening”cultural interviews
with
participants
Safeguarding employees’ health
We are committed to safeguarding the physical and mental well-being of our employees. Specically, we implement a range ofhealth management and protection initiatives, including medical examinations, mental health courses, sports support, healthydiet, and exible work arrangements.
This year, we invested RMB
901.2
thousand in work injury insurance
covering
100%
of our employees
G-bits welfare
Onboarding
held a total of
“FounderMeetup” activities
questionscollected andaddressed
organized a total of
corporateculture groupmeetings
with
participants
Daily lifeHousingGrowth
Marriage andChildbearing
●
O?-site onboardingtransition hotel
●Insurance andhousing fund
●Supplementarycommercialinsurance
●Monthly fundingfor departmentalactivities
●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) tuitionsubsidies
●Paternity /maternityleave
●Parental leave
●Breastfeeding leave
●Supplementarycommercialinsurance foremployee's children
5453
Talent Sustainability Development
The Company actively promotes a healthy lifestyle. Through Sports Month activities such as fun sports events, men’s 3x3basketball tournaments, football matches, and badminton competitions, we not only enhance employees’ physical tness butalso foster greater teamwork and coordination. This further ignites employees’ enthusiasm and creativity at work, infusing theCompany with vitality for sustainable development. The Company has set up sports and tness clubs at Xiamen and Guangzhouoffices, equipped with a variety of professional fitness equipment. At the Shenzhen Office, the Company collaborates withthe gym within the building, where employees can experience training on tness equipment, take group classes, and receiveguidance from professional trainers.
Employee tness support
Sports Month group activities
We provide all regular employees with a comprehensive medical examination each year, and regularly invite doctors to theCompany to o?er personalized one-on-one report interpretations, ensuring that employees are fully informed about their health.
The Company has established the “G-Healing” platform forpsychological counseling, which offers mental health courses,group therapy sessions, and workplace skills enhancement.This initiative helps employees reduce psychological stress andemotional burdens they encounter in their daily work. Additionally,the Company has partnered with external organizations to o?erone-on-one psychological counseling to all regular employees,with confidentiality strictly maintained throughout the processto alleviate any concerns employees may have. In 2024, theCompany provided a total of 399 hours of one-on-onecounseling services.
Annual health check-ups for employees
Employee mental health support
Group counseling activities
Online mental health courses
Online Mental Health Courses
"Correct Understanding of Counseling""Dealing with Stressful Communication with Leaders:
Identifying the Sources of Pressure""How to Quickly Integrate into the Workplace After
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 PositiveThoughts, 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"
Career Development andGrowth
Self-Regulation and Stress Relief
InterpersonalRelationshipManagement
5655
Talent Sustainability Development
Talent incentive
To motivate employees and boost their creativity, the Company has implemented several e?ective incentive mechanisms. InOctober 2020, we launched a stock option incentive plan, granting 1.00% of the Company’s total share capital to employees.The incentive plan targets core technology and business employees, representing 6.66% of the total workforce for that year. Asof December 16, 2024, the stock option incentive plan has expired. The Company will optimize the stock option incentive systembased on future business development and talent incentive needs to promote the long-term common growth of employees andthe Company.The performance of employees is evaluated on a regular basis, and the high-performing employees will be provided withmaterial and moral incentives. The Company explores the growth cases of personnel at different levels for sharing, andstrengthens the positive drivers of team growth.
Family open day eventCreating a safe work environment
Enriching leisure activitiesThe Company practices humanistic care and consistently creates a heart-warming environment for employees. The Companypays close attention to employees’ needs, innovates and improves the way of showing care. We organize diversied activities toensure that each employee can feel a sense of achievement and care in the Company.The Company conducts collective movie watching activities every month, inviting employees and their family members towatch movies, so as to help employees relieve work pressure. The Company regularly organizes e-sports competitions to enrichthe spare time life of employees while providing a platform for teamwork and competition exchanges, further enhancing teamcohesion.In addition, the Company periodically organizes team building events for all employees. This year, we hosted a family openday, inviting employees’ family members to visit the Company, enjoy lunch together and participate in on-site interactive games,which deepened the understanding of employees’ family members about the Company, and enhanced the sense of belonging ofthe Company’s employees.
We place a signicant emphasis on the daily diet of our employees. The Company provides customized healthy meals to ensurethat employees enjoy fresh and safe dishes. In addition, we ensure clean and hygienic tableware by sterilizing the tableware intime and regularly sending the tableware used by employees to third-party institutions for testing.
We prioritize the promotion and dissemination of health knowledge, conveying health concepts through various channels. Thisyear, we organized health lectures on topics such as women’s health and scientic tness. Employees improved theirhealth protection awareness through the health lectures. They also received practical health instructions to maintain a goodlifestyle and work status. Moreover, we share health information with employees through internal communication channels andsocial platforms, including practical suggestions on nutrition, sports and mental health. We are paying increasing attention toemployees’ health to help them better manage their personal health and improve the quality of work and life.
In response to extreme weather conditions, such as typhoons and rainstorms, G-bits takes into full consideration the safety of itsemployees’ commutes. The Company has adopted a exible working approach, allowing employees to choose between workingin the o?ce or remotely based on real-time conditions. Additionally, the Company advocates exible working hours, enablingcertain sta? members to autonomously arrange their work hours according to their specic job requirements.
Employee health and nutrition assurance
Promotion and dissemination of health knowledge among employees
Flexible work arrangements for employees
We always prioritize employee safety. Accordingly, we conduct risk management in areas such as the working environment,occupational health, food and water safety, mental health and safety emergencies. In this way, we provide a safe and pleasanto?ce environment for all our employees.We equip all workplaces with automated external debrillators (AEDs) and re extinguishing equipment. In addition, we conductregular first-aid training to enhance employees’ emergency response capabilities, self-rescue and mutual rescue skills, andtheir ability to handle emergencies. During the Reporting Period, we conducted two sessions of rst-aid training and vesessions of re safety training. These training sessions covered topics such as rst-aid theory, the use of AEDs, andbandaging skills, with the aim of reinforcing employees’ rst-aid knowledge.We also prioritize the physical health of our employees. We ensure proper control of lighting, air quality, and temperature in theworking environment. We conduct regular cleaning of air conditioning units and employ third-party testing services to ensure thequality of drinking water in the o?ce. Prior to the opening of any new o?ce, formaldehyde testing is conducted to ensure a safeworking environment. In addition, each employee is equipped with an ergonomic o?ce chair, which e?ectively alleviates physicalfatigue caused by long hours of work and supports a healthy, comfortable working posture.
5857
Talent Sustainability Development
Job-specific development training
Graduate traineeship program
The Company offers employees various types of job-specic development training. Employees are provided withappropriate training and learning resources based on theirjob responsibilities, professional needs, and preferences.The Company organizes general skills training for employeesto help them acquire foundational skills and improve theoverall business skills of teams. Additionally, we providetraining in technology, planning, art, and other aspects ofgame production. We also provide product launch supporttraining to improve collaboration across product teams andthus 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 from studentlife to the professional realm, the Company has organized a series of centralized training sessions. The Company arranges“Skill Development” training for these fresh graduates, involving diverse team activities to cultivate teamwork and foster teamcohesion in a relaxed environment. Additionally, mentors impart knowledge on the Company’s distinctive “MVP Approach”in game development, along with insights into business operations, marketing strategies, and product optimization throughconducting business-related training sessions. This facilitates a rapid establishment of a foundational understanding of theCompany’s operations and the game industry.Moreover, the Company has invited game development mentors and experienced industry professionals to share theirprofessional and personal development experience and answer questions to help fresh graduates better adapt to the workplace.For new hires in positions related to game development, the Company organized the “Mini Game Development Competition,”where mentors provide feedback on game demos developed during the training sessions. They also guide new recruits inovercoming challenges encountered during the game production process, thus helping them form their own understanding ofgame development. This year, the Company organized specialized training for 78 fresh graduates and continuously monitoredthe implementation of training outcomes at each stage.
This year, we kept enhancing our employees’ professional capabilities. We delivered AIGC training to all employees, with atotal of 613 participants. Additionally, we provided specialized user research training for employees in game production roles,including operations and R&D sta?, with a total of 509 participants. We also introduced a specialized data analysis trainingprogram for our operations sta?, which attracted 236 participants.
Job-specic development training
achieving a totalparticipation of
individuals
we provided specialized userresearch training with a total of
participants
data analysis training program for ouroperations sta?, which attracted
participants
G-bits Employee Training System
Innovation in talent cultivationG-bits places signicant emphasis on the development of each employee, continually rening its training mechanisms. Thisyear, the Company revised internal management policies such as the Training Management Measures, standardizing thecompensation criteria for non-managerial training courses and encouraging more employees to proactively share their expertise.To meet the needs of overseas market expansion, the Company has added detailed rules for overseas talent recommendationin the Talent Recommendation Management Policy, thereby enhancing its international talent management capabilities.Meanwhile, the Company has optimized its training management system to better align with the Company’s long-termdevelopment goals.The Company has launched diversied training programs to meet the training needs of di?erent employees. We have di?erenttypes of training for employees like professional competence training, graduate training, leadership training, among others. Suchtraining may take various forms, such as a combination of “Internal + External” and “Online + O?ine” courses.
This year, we organized a total of
employee training sessions
with a total duration of
hourscovering
100%
of the employeesThe cumulative number of participants reached
4,927
G-bits ProfessionalsG-bits
RecruitsAllEmployees
Skilldevelopmenttraining
Careertransition
lecture
Introduction to the
games industryseries
Mini Gamedevelopmentcompetition
Processes/systemsseries of lecture
Corporateculture
JobpracticingExperience sharingsession for employeesin the same position
Game producer seminar
Newly promoted manager
training
Art department employee
training
Operations management casestudy weekly seminarGame development sequence study map
X-Fan er publicsharing
Business-specictraining program
G-bits Q&ACommunity
Experience in R&DSequenced and targeted designLearning lecture covering middleand junior level employeesHelping employees to improvetheirprofessional competence
data analysisPlanningValuable examples
of R&D experienceuser research
Programmarketing
Art
……
OperationTesting
Planning Fan erProgram Fan erArt Fan erOperation Fan er
Business ReviewMeetingProgramPlanningJuniorEmployeesMid-levelemployees
Campus RecruitsSocial Recruits
Facilitate organizational growthEmpower business success
Knowledge Base: Help employees nd what they need for work anytime and anywhere, and view the experiences shared
by various professionals
Manag-ement
6059
Talent Sustainability Development
Supporting employee development
The Company prioritizes the long-term development and career planning of its employees. Through continuously improvingits internal promotion management system and optimizing talent pipeline planning, we are dedicated to establishing anequitable and robust framework for career advancement. Our goal is to empower every team member to achieve a sense ofaccomplishment and self-worth within the Company.
Employee promotion system
Support for employee upskilling
Employees are fundamental to the sustainable developmentof a company, which is why we attach great importance to thetraining and development of employees. The Company hasestablished a dual-path promotion mechanism of “Technology+ Management” to better meet the career development needs ofemployees.Employees can choose the promotion path based on their ownaspirations and professional expertise. They can develop alongthe technology development path into technology backbones,company experts, and authoritative experts in the industry, oralong the management development path into middle and seniormanagement. Additionally, the Company’s promotion system o?ersflexibility, allowing employees to explore diverse career paths.Employees can either follow a single clear path for progressivedevelopment or shift paths based on personal interests and careeraspirations, enabling them to broaden their career horizons.
G-bits places great emphasis on employee development and is committed to providing a supportive learning environment,encouraging employees to continuously enhance their skills. To this end, we have clearly stated in the Training ManagementPolicy that we o?er nancial support to all regular employees for obtaining professional qualications.The level of financial support varies depending on the type of qualification. The Company fully covers education cost foremployees pursuing a professional qualication in publishing, the qualication of Certied Public Accountant (CPA), or otherqualifications required by the Company. For Project Management Professional (PMP) certification, International CoachingFederation (ICF) certication, and other industry- or role-related but non-mandatory qualications, the Company covers 50% ofthe costs. In addition, the Company may provide subsidies for employees who participate in relevant training but fail to obtaino?cial certicates, subject to evaluation of their learning outcomes.
FTE (Full-Time Equivalent) is a standardized metric used to measure the workload of full-time and part-time employees in an organization.
This year, the Company used the average total number of employees at the beginning and end of the year to measure average hours and average costsof training per FTE.
In-depth project reviews with industry professionals
Key performance indicators relating to G-bits employee training in 2024
“Supplementary Management Skills” training for producers
G-bits employee promotion system
AuthoritySenior
managementExpert
Middle
managementTechnicalbackboneEntry-levelJunior managementProfessionaldevelopment pathway
Managementdevelopment pathway
0.23
Average hours
of training per FTE
11,12
hoursthousand
0.8
Average costs
of training per FTE
11,12
Leadership development training
The Company is dedicated to supporting the long-term development and enhancing the leadership capabilities of itsemployees, consistently providing diverse leadership development training and networking opportunities for individuals atvarious management levels. These initiatives aim to deepen their understanding of the market and products. Considering talentassessments, the Company conducts a series of training sessions to empower management talents at every tier.
The Company invites experts from external professional organizations, such as Mercer, Ram Charan's global partners,Qingyeteng Coaching Center's partners, and renowned external coaches, to conduct seminar-style training sessions.This year, the Company organized one systematic training session and four seminars for game producers.Through leadership training, team coaching, individual coaching, and business reviews, the Company provided targetedguidance on key issues related to specific projects. This approach aims to foster collaboration and growth betweenthe producers and core team members. Additionally, the Company invited distinguished game producers from outsideto share their experiences in game production on topics such as overseas markets and user insights, and gamedevelopment. This initiative aims to help the R&D team gain a deeper understanding of market trends and directions forproduct innovation.
Leadership development training for newly promoted management personnel
Game producer training
Leadership development training for newly
promoted management personnel
Supporting the career development of newly promotedmanagement personnel is a key priority. In this regard, wehave conducted a series of centralized training sessions tohelp them better adapt to job changes and acquire essentialmanagement skills. We provide training on a wide range oftopics for newly promoted management personnel. “ManagementRole Awareness Training” helps them develop their leadershipstyles and explore their leadership potential. “Talent IdenticationTraining” helps them improve their ability to discover and developtalent in the team, thereby allocating team resources more e?ectively. “Performance Management Training” helps themdevelop scientic and e?ective approaches to performance management, thereby improving team productivity. “TeamCollaboration and Communication Training”, which teaches them how to establish e?cient communication channels,helps them build teams where everyone gets along. This year, the Company carried out a total of four managementtraining sessions for newly promoted management personnel, with a total duration of 38 hours.
This year, the Company diligently rened the job leveling benchmarks for a range of positions. This initiative aims to ensure thebenchmarks are aligned with both our business goals and the career ambitions of our sta?, thereby enhancing the motivationale?ect of the job leveling system on the workforce. With our promotion mechanism, our employees’ abilities are enhanced in amore targeted and clearer manner, while their growth and contribution can be clearly reected through the job leveling system.
6261
Talent Sustainability Development
Response to climate change
We closely monitor the impacts of climate change, including global warming and extreme weather events, on the worldwideecosystem and our business operations, and we proactively commit to combating climate change. We also identify, assessand respond to the impacts of climate change risks and opportunities on our businesses, and formulate mitigation andadaptation strategies that are scientically sound and pragmatic.
Development of climate change management system
The Strategy Committee of the Company's Board of Directors has ultimate responsibility for climate change-related matters. Itis responsible for reviewing climate-related strategic planning, assessing risks and opportunities, and overseeing the progressof related initiatives. The ESG Working Group is responsible for coordinating the execution of climate-related matters, includingformulating work plans, driving relevant departments to implement specic actions, and regularly reporting progress to the BoardStrategy Committee.The Company has put in place a systematic reporting system forclimate change to ensure the transparent management of climate-related initiatives. The ESG Working Group regularly briefs theStrategy Committee of the Board of Directors on the Company’sclimate change strategies, evaluations of risks and opportunities,and progress towards the objectives. The Strategy Committeeregularly updates the Board on climate change-related mattersthrough regular meetings. This ensures that the Board of Directorshas timely access to insights on how climate change is a?ectingthe Company's sustainability, including associated risks andopportunities.The Company invites external experts and industry associationseach year to conduct climate-related training sessions for relevantmanagement personnel. This ensures that they remain up-to-dateon the latest developments in climate change.In response to climate change risks and to capitalize on associatedopportunities, we have established climate change-related goalsand priorities. This includes committing to reducing carbonemissions and bolstering our capacity to adapt to climate change.
Climate change management structure of G-bits
We will conduct climate change-related training for employess, continue exploring effective measures to reduce carbonemissions and optimize operational energy e?ciency.The Company is continually refining its governance framework to guarantee the realization of its emission reduction goals.Additionally, we have identied climate change risks and opportunities, assessed their potential impact on our business, andimplemented appropriate measures to promote the smooth progress of our climate change management e?orts. To encouragemembers of the ESG Working Group to advance the Company’s climate initiatives, the Strategy Committee has establisheda monitoring system. This system evaluates the performance and work progress of the ESG Working Group members byassessing their e?ectiveness in achieving climate goals, managing climate change risks, and conducting relevant evaluations.Management of climate change risks and opportunitiesG-bits identies and evaluates the impacts, risks, and opportunities related to climate change in line with its corporate strategy,business model, and the broader market environment. The Company assesses the impacts of rising energy costs, resourceshortages, and other factors on its business operations. On this basis, we assess the likelihood, magnitude, and impact ofsustainability-related risks and opportunities, and prioritize climate change risks and opportunities according to their potentialimpact and likelihood. High-priority risk is classied as a risk or opportunity with a high level of impact and a high likelihood ofoccurrence; medium-priority risk is classied as a risk or opportunity with a medium level of impact and a medium likelihood ofoccurrence; low-priority risk is classied as a risk or opportunity with a low level of impact and a low likelihood of occurrence.
Strategy Committee of the Board
of Directors
ESG Working Group
6665
Green Operations
The Company identies the risks and opportunities related to climate change. In assessing climate resilience, the Companyweighs factors including socioeconomic uncertainties and the irregularity of extreme weather events. The Company hasthoroughly examined the enhanced strategies and business models necessary for adapting to climate change from the short-,medium-, and long-term perspectives. The details are as follows:
In response to the identied risks and opportunities, the Company has initiated targeted transition strategies, which include aphased implementation of sophisticated energy management initiatives, the development of climate-focused emergency plans,and a planned increase in the share of renewable energy usage. For details of the latest developments in the Company’s 2024climate change transition plans, please refer to the “Practicing green operation” section of this report.
Priorityof risks/opportunitiesTimehorizonRisk typeResponses and transition planIdentication and assessment
The state is continuouslyintroducing policies relatedto environmental protection.Regulators are requiring companiesto enhance their disclosure ofsustainability information, includingclimate change, and improvetheir capacity for sustainabilitymanagement. This may lead tohigher compliance costs for theCompany.
Extreme weather such as typhoons,droughts, oods, temperatureextremes caused by climatechange may threaten our normaloperation, resulting in higherenergy consumption and operatingexpenses.
Transitionrisks
Physical
risks
Policyrisks
Acuterisk
Chronicrisk
Short-term(1 year),Medium- tolong-term(2-5 years)
Short-term(1 year),Medium- tolong-term(2-5 years)
Medium- tolong-term(2-5 years)
High
Medium
Low
Medium
Practicing green operation
G-bits focuses on environmental compliance management and carries the green and low-carbon philosophy into the dailyoperations. In strict compliance with the Environmental Protection Law of People’s Republic of China, the Law of the People’sRepublic of China on the Prevention and Control of Water Pollution, the Energy Conservation Law of the People’s Republicof China, the Law of the People’s Republic of China on the Prevention and Control of Environmental Pollution by Solid Wasteand other relevant laws and regulations, the Company utilizes energy, water and other resources intensively and efficientlyto strengthen the conservation management in resource usage. We are committed to protecting the ecological environment,preserving biodiversity, and developing the circular economy to promote the reduction, reuse and recycling of resources. In thefuture, we will continue to conduct trainings on green operations management, continuously enhancing employees' awarenessof energy conservation, water conservation, and resource recycling.
Reducing energy consumption
We regularly conduct energy conservation promotion among employees, and actively purchase energy-efficientequipment to reduce energy consumption in the operation.
We closely monitor electricity consumption data andemployees’ energy usage behaviors, posting electricity-saving reminders around electrical equipment. This year,we conducted a series of awareness campaigns on topicsuch as “Office Energy Conservation”, “Earth Hour”, “ZeroCarbon Action: Together We Make It Happen”, “Green andEnvironmentally Friendly, Low-Carbon and Energy-SavingActions” and other topics. Through email notications, imagedisplays, and other means, we actively guide our employeesto integrate the concept of environmental protection into theirdaily work and life.We utilize information technology to monitor the shutdownstatus of o?ce computers, regularly conducting data analysisto assess the impact of computer on/off times on energyconsumption. We also promptly remind colleagues who havenot turned o? their computers after work for a long period oftime to turn o? their computers in a timely manner, thus reduceunnecessary energy consumption.
Energy conservation awarenesscampaigns
The Company designates dedicated personnel to conductregular inspections in office areas and promptly turn offair conditioners and lights in unoccupied office areas. Weadvocate reducing the use of lighting in public access areasduring non-office hours to minimize unnecessary energyconsumption.
Energy-saving inspections
The company actively purchases green electronic equipment.Specific usage requirements are set for the Company'sair-conditioning, lighting and other electrical equipment.In addition, we prioritize third-party cloud servers with lowenergy consumption and high energy e?ciency.We prioritize the purchase of o?ce computers and monitorsthat meet Energy Star certification. When purchasingfurniture boards, we prioritize profiles made from recycledwood that meet national environmental requirements.Through technological innovation and resource integration,we are advancing green and low-carbon development. Whenpurchasing paper products, we prioritize o?ce paper that iscertied by FSC
and PEFC
.
Promoting green procurement
The Company optimizes the layout of equipment in the serverroom and elaborately arranges the servers and switches toensure smooth airow in cold and hot aisles, thus signicantlyimproving cooling e?ciency. With virtualization technology, wecan create multiple virtual servers on a single physical serverto reduce the number of physical servers and unnecessaryenergy consumption for cooling. We also adopt smartsystems to alternate the operation of multiple air conditioners,precisely controlling the temperature and e?ectively reducingunnecessary energy waste.The Company further collaborates with cloud service providersto explore energy-saving and emission-reduction solutions.
Enhancing equipment energy efficiency
●Follow the trend of policies and laws and regulationsin the operation areas, and continuously optimize thedevelopment of climate change management system;
●Engage professional consulting rms to interpretpolicies and provide guidance on disclosure, thusimproving the quality of climate change informationdisclosure.
●Pay close attention to the early warning of extremeweather events, formulate the Typhoon EmergencyPlan and other safety-related plans, and equip allworkplaces with anti-typhoon and ood control facilitiesand equipment to minimize the Company’s risk of xedasset damage;
●Establish mechanisms for rapid and e?ective disasterrelief, rescue and emergency response. Organize allemployees to conduct re drills, typhoon emergencydrills and other activities organized by the Company.Engage external professional institutions to assist theCompany in on-site safety management and safetyrecord management at least once a year in an e?ort toensure the safety of people and IT infrastructures andminimize the losses caused by accidents.
●Regularly inspect the use of equipment, and deployand maintain facilities to grapple with extreme weather,such as backup power supply;
●
Increase the proportion of cloud services, and protectimportant data through o?-site backup and cross-device backup;
●Add ood control design of building structures, suchas use of waterproof boxes, barriers, coating and othermeans.
Rising sea levels could result inthe inundation of our o?ce spacesin coastal zones like Xiamen andShenzhen, potentially ooding ouro?ce buildings, IT equipment andother xed assets. This situationmay necessitate repairs to theo?ce building structures, as wellas the maintenance, restoration,or substitution of our IT equipmentand other xed assets, which couldin turn elevate our capital spending.
Energyopportu-
nity
Medium- tolong-term(2-5 years)
●The Company will plan to increase the proportion ofrenewable energy use if the purchase cost of energy-consuming equipment is controllable in the course ofoperation. The Company has already transitioned itsentire eet of commuter vehicles to electric vehicles.Moving forward, we will explore the possibility ofdeploying distributed energy projects and other initiativesto expand the use of renewable energy, while also rampup our investment in the R&D of clean energy;
●The Company will further invest in upgrading serversand o?ce equipment if the purchasing cost of greenelectronic equipment is controllable. This includesincorporating more energy-e?cient hardware, such ashigh-e?ciency CPUs and low-power graphics cards, toreduce energy consumption during equipment operation.
The application of energy-savingmeasures/technologies enablesthe Company to lower energyconsumption in the course ofoperation, thus reducing operatingexpenses.
Opportunities
FSC (Forest Stewardship Council) is an independent, non-prot, non-governmental organization that promotes environmentally responsible,socially beneficial, and economically viable forest managementworldwide by establishing recognized principles and standards.
PEFC (Programme for the Endorsement of Forest Certication) is aninternational non-profit, non-governmental organization dedicated topromoting sustainable forest management through independent third-party certication.
6867
Green Operations
Promoting a low-carbon office
G-bits continually navigates the path to low-carbon o?ce. In 2024, the Company optimized approval processes and promotedthe online approval platform. In doing so, the Company approved a total of 462,171 online applications, covering 1,059,780individuals, which effectively reduced paper consumption for approvals, reimbursements, and file management in dailyoperations. We also encourage employees to communicate through online meeting platforms to minimize unnecessary energyconsumption and carbon emissions caused by o?ine meetings and employee travel.The Company actively adopts clean energy. We use electric vehicles to replace traditional fuel vehicles for employee shuttlebuses. In addition, we dynamically adjust the capacity and frequency of the buses according to actual occupancy to furtherimprove energy e?ciency.
G-bits attaches great importance to the e?cient utilization of water. The Company has actively adopted a series of e?ectivewater resource management measures. To further ensure the e?cient use of water resources, the Company has established astrict inspection system, which requires regular inspection of sanitary ware and valves in areas such as restrooms and pantries.By doing so, leaky water equipment can be found and repaired in time, avoiding water resource waste.In addition, we raise employees’ awareness of water conservation by conducting internal training and awareness campaigns toencourage them to develop water-saving habits in their daily work.The wastewater generated by the Company is discharged into the municipal sewage network and is properly treated by relevantdepartments in compliance with regulations. The Company faces no issues with water intake, as it is primarily supplied by themunicipal government.
Strengthening water resource management
Protecting the ecological environmentG-bits optimizes its waste management based on its operational characteristics and makes every e?ort to reduce the negativeimpact on the ecosystem during its operations and enhance ecosystem and biodiversity protection. During the Reporting Period,there were no unexpected major environmental incidents in the places where the Company operates, nor was the Companysubject to criminal liability by ecological and environmental and other relevant authorities for environmental incidents.Waste management
We implement rened waste management practices, strictly controlling waste generation and ensuring that all types of non-hazardous and hazardous waste can be properly disposed of.We place sorting bins to encourage employees to classify non-hazardous waste. Sorted waste will be collected and handed overto the municipal waste disposal departments by the property management for recycling and disposal. This year, we launcheda special awareness campaign themed on “Sort Waste, Protect Our Environment” to raise the awareness of our employees onwaste classication.Hazardous waste such as waste toner cartridges and ink cartridges generated by the Company’s o?ce printing equipment arecollectively recycled by qualied recyclers. We engage third parties to properly dispose of our electronic waste such as scrappedhard disks and electronic components through cooperating with professional electronic waste recycling suppliers.
Ecosystems and biodiversity conservation
We organized various public welfare activities themed on environmental protection and conducted special publicity campaignson topics such as “World Oceans Day”, encouraging employees to get involved. During the Company’s Philanthropy andEnvironmental Protection Festival this year, we organized a beach cleanup near our Xiamen o?ce, where employees picked uplitter and cleaned the coastline. We integrate the concept of sustainability into our game platform, raising player awareness ofthe importance of ecosystem and biodiversity conservation.
Paying attention to biodiversity conservation, G-bits actively participates in the protection of the Yangtze nless porpoise.We raise public awareness and participation in nless porpoise protection through the inuence of our game platform.In June 2024, G-bits partnered with the China Green Carbon Foundation to launch the “Protect the Yangtze FinlessPorpoise” public welfare campaign, and donated RMB 200 thousand to the fund for the purchase of a brand-new patrolboat, supporting the protection of the Yangtze nless porpoise in Poyang Lake, Jiangxi. As of the end of the ReportingPeriod, the funds and the patrol boat donated by the Company have e?ectively assisted the patrol team in protecting the1,667 Yangtze nless porpoises in Poyang Lake.
The Company’s licensed games Funny Fighters: Battle Royaleand Lost Castle carried out joint public welfare activities fornless porpoise protection to enhance players’ understandingof and concern for this rare animal and to convey theimportance of protecting the ecology to players. Players whocompleted the in-game knowledge popularization activitiesabout finless porpoise could obtain prizes such as characterskins inspired by the creature, commemorative porpoise propsdesigned with China Green Carbon Foundation, and the GreenWatch Achievement Badge.The cumulative number of players participating in the porpoiseprotection public welfare campaign in the two games exceeded440 thousand, and more than 310 thousand players claimedthe highest task reward, “China Green Carbon FoundationCooperative Commemorative Porpoise Props”. This projectwas selected as one of the “2024 Typical Cases of GamePublic Welfare” by people.cn.
“Hello, Yangtze Finless Porpoise!” – A Rare Animal Protection Initiative
Certicate of honor from China GreenCarbon Foundation to G-bits
Yacht donated by G-bits to Poyang Lake
patrol team
Poster of the Lost Castle for the public welfare joint
activity of nless porpoise protection
Case
The cumulative number of playersparticipating in the porpoise protectionpublic welfare campaign in the twogames exceeded
thousand
7069
Green Operations
Developing circular economyG-bits actively advocates the circular economy concept through the implementation of measures such as promotingreusable tableware and reusing idle items. These initiatives aim to improve the efficiency of resource utilization,minimize resource waste and achieve resource recycling.
To demonstrate the philosophy of circular development and raise the awareness of environmental protection amongthe employees, the Company held the “Recycle for Green” Philanthropy and Environmental Protection Festival inOctober 2024, inviting all employees to participate.The activities mainly include:
“Recycle for Green” Philanthropy and Environmental Protection FestivalCase
This year, the Company took the following measures to accelerate waste recycling:
A collection point for idle books was set up at the event to encourage employees todonate their idle books at home. The collected books were donated to Lanyi PrimarySchool in Zuoquan Township, Liling City, Hunan Province.A swap area was set up, where employees exchanged their idle items, such aselectronic products, clothes and handicrafts.To encourage employee participation, the Company awarded the “Aurora” virtualmedals to all employees who completed all activities.
Idle bookrecycling
Used-itemsExchange
This year, we implemented the following measures to support a circular economy:
Environmental key performance indicators
The Company’s GHG emissions and resource consumption during the Reporting Period are presented below:
IndicatorUnit202420232022
Indirect greenhouse gas emissions (Scope 2)
15,16
Tonne1,643.462,654.542,235.42Total electricity consumption in o?ces
kWh3,833,963.303,427,466.102,800,028.15Energy consumption intensity
kWh/person2,637.752,537.922,546.64Total water consumption in o?ces
Tonne29,106.7317,545.4420,785.68Water consumption intensity
18,19 Tonne/person20.0312.9918.90
Reusable melamine or stainless-steel tablewareis provided in the Company’s staff restaurants.In 2024, the cumulative reuse of melamine andstainless-steel tableware amounted to 412.9thousand times.
The Company has repurposed idle furniture,carpets, raised floors, air conditioners, accesscontrol systems, surveillance equipment, and otherfacilities for new o?ce locations.
The Company encourages employees to useshared stationery by setting up a public stationerystation, effectively reducing duplicate purchasesand minimizing waste.
Promoting reusable tableware
Repurposing idle items
Shared stationery
The Company encourages employees to adoptdouble-sided printing and recycle used paper byusing or pasting discarded paper for reimbursementforms and other purposes.
Encouraging Double-Sided Printingand Paper Reuse
Organize regular in-house sales of idlefurniture to provide benefits for employeesin need.Establish the Company’s online group ofused-items trade to fully circulate and utilizeidle goods.
Set up a free-sharing area where excessgoods/food are shared among employeesto avoid waste.
Green Operations
Due to our business nature, the major gas emissions of the Group are greenhouse gases, resulting from electricity converted from fossil fuels.
Greenhouse gas emissions include carbon dioxide, methane, and nitrous oxide, calculated in carbon dioxide equivalent. Starting from 2024, greenhouse
gas emissions calculated based on the
2022 Electricity Carbon Emission Factors
issued by the Ministry of Ecological Environment of the People’s
Republic of China.
The current electricity consumption statistics include those of three o?ce premises of the Company in Guangzhou, Shenzhen and Xiamen. Among the
Company’s leased o?ce premises in Shenzhen, two are charged for air conditioning electricity at a xed rate and cannot be separately metered, while
the other allows for independent electricity measurement and has been included in the electricity consumption statistics. This year, the increase in the
Company’s total o?ce electricity consumption in o?ces was mainly due to the inclusion of a full year of data from the measurable leased o?ce premise in
Shenzhen for the rst time.
This year, the Company used the average total number of employees at the beginning and end of the year to measure energy intensity and water
consumption intensity.
The Company mainly uses municipal tap water. The current water consumption statistics include those of three office premises of the Company in
Guangzhou, Shenzhen and Xiamen. As the tap water cost is included in the property fee, the water consumption of the leased office premises in
Shenzhen cannot be separately measured and has been estimated based on the usage coe?cients provided in the
2022 China Water Resources Bulletin
published by the Ministry of Water Resources of the People’s Republic of China. This year, the increase in the Company's total water consumption in
o?ces was primarily due to the inclusion of estimated water consumption for certain leased o?ces in Shenzhen as part of improved statistical coverage.
Contributing to rural revitalization
G-bits recognizes the vital importance of rural revitalizationto the sustainable development of society. We implementthe rural vitalization strategy, supporting rural revitalizationand social development with concrete actions. Withmultiple initiatives such as targeted scholarship, one-on-one assistance, education digitalization and infrastructureimprovement, the Company provides rural students withbetter learning environment and conditions, enhancingpublic resources in rural areas.
In response to the call from industry authorities, we have takenpractical actions to support education. In June 2024, under theguidance of the China Audio-video and Digital Publishing Association,the “Pomegranate Seed Project” Public Welfare Donation Event wassuccessfully held in Kashgar, Xinjiang. The Company donated 69steel-wood doors and 4 Canon photocopiers to Qiaoda TownshipPrimary School and Bashlak Village Primary School in Pishan County,Hotan Region, Xinjiang Uygur Autonomous Region, with a totaldonation of RMB 98 thousand. These facilities provide a safer andmore comfortable learning and teaching environment for local teachersand students.
In October 2024, the Company donated 6 sets of multimedia teaching equipment, valued at RMB 88.8 thousand,to 208 students across 6 classes of Kalong Township Primary School in Tibetan Autonomous Prefecture of Garzê,Sichuan Province. The donation e?ectively enhanced the digital teaching standard of the school, providing studentswith a better learning environment.
Driven by our unwavering commitment to rural education, the Company has fortied its reputation in corporate socialresponsibility, fostered stronger bonds with local communities, and laid the foundation for future endeavors in ruralrevitalization and educational welfare.
Supporting rural education - Building a digital education environment
Facilities donated during the “PomegranateSeed Project” student support event
Multimedia teaching equipment donated to Kalong Township Primary School in Tibetan Autonomous Prefecture of Garzê,
Sichuan Province
Case
“Pomegranate Seed Project” student support event
Donation of teaching facilities
As of the end of the Reporting Period, theCompany had invested a total of RMB
998.5
thousand in the eld of ruralrevitalizationbeneting nearly
thousand people
For years, the Company has consistently provided One-on-one nancial support to primary and secondary schoolstudents who demonstrate strong academic performance but come from nancially disadvantaged families, helpingthem complete their studies. As of the end of the Reporting Period, the Company has cumulatively sponsored 9students from Fushun County and Rongxian County of Zigong City, Sichuan Province. In 2024, we allocated fundsfor student aid, primarily used for purchasing school supplies, paying tuition fees, and covering daily living expenses,e?ectively alleviating the nancial burden on the beneciary families.The Company arranges regular visits to track the students' learning and progress, ensuring that the funds providedare truly impactful. Through One-on-one support, the Company has effectively fulfilled the social responsibility,provided a better learning environment for rural students, helped the sustainable development of rural education, andenhanced our positive impact on social welfare.
Supporting the growth of rural students - One-on-one educational supportCase
In September 2024, the Company donated 173 street lights worth a total of RMB 300 thousand to Fuquan Town,Yantan District, Zigong City, Sichuan Province. The project has e?ectively improved local street lighting conditions,beneting community residents in several villages. In response to the rural revitalization strategy, the Company hasmade e?orts in the balanced development of urban and rural infrastructures. Through this event, the Company furtherconsolidated its brand image in the aspect of social responsibility.
Supporting rural infrastructure construction - Street light donationCase
Street lights donated to Fuquan Town, Yantan District, Zigong City, Sichuan Province
7675
Undertaking Social Responsibility
Caring for vulnerable groups
“Glimmering Light” lighting up the future
G-bits remains steadfast in its founding mission, actively participating inpublic welfare to give back to the society within our capabilities. In 2024,the Company launched the “Glimmering Light Public Welfare Initiative”,a public welfare program that focuses on key areas such as children’sgrowth and education, ecological environment protection and inheritanceof intangible cultural heritage, to foster the sustainable developmentof society. We provide practical support to the vulnerable groups inthe society. On this basis, we proactively promote the construction ofcorporate culture of public welfare, continuously expanding our inuenceon public welfare and contributing to the sustainability of the society.
In September 2024, the Company donated RMB 88 thousand to the Beijing Ihearu Charity Fund to support theconstruction of 4 cognitive learning centers, which provide hearing-impaired children with teaching aids such aspicture books and audio materials for speaking and reading. The Company is dedicated to facilitating the linguisticrecovery and social integration of hearing-impaired children, fulfilling its social responsibilities through concreteactions.
YiNian XiaoYao - Assistance to hearing-impared childrenCase
In 2024, the Company collaborated with the Beijing All in One Foundation to promote the girl protection project, witha total investment of RMB 88.8 thousand. The project reached 75 primary schools in Henan, Shandong, Shaanxi,Guangdong, Guizhou and Xinjiang, and established the “Spring Bud Program” with Girl Protection courses. As of theend of the Reporting Period, a total of 618 courses had been delivered, beneting 29,353 students. The Companyremains committed to children’s well-being, and together with the Foundation, we provided systematic sex educationto raise children’s self-protection awareness, and contributed to building a safer and more secure environment fortheir development.
In 2024, we teamed up with the Blue Letter Care Centerfor Left-behind Children to launch the “Village Children’sPen Pal Program”, o?ering psychological support to ruralchildren in Guangdong and Sichuan provinces throughletter exchanges.Supported by Cyberspace Administration of Shenzhen,cybersecurity education events were held at threerural schools in Lianping County. These interactive andengaging events were designed to help children raisetheir awareness of cybersecurity and enhance their self-protection ability.In addition to nancial support for children, the Companyencourages its employees to engage in letter exchangesto offer lasting emotional support for rural children. Inpursuit of our social responsibility, the Company hascreated a warmer brand image.
“Spring Bud Program” - Supporting children’s growth
“Blue Letter Pen Pal Program” - Protecting children’s spiritual growth
Case
Case
“Spring Bud Program” with Girl Protection courses
Promotional activities of the “Blue Letter Pen Pal Program”
Supporting children’s growth
During the year, the Companyinvested a total of RMB
1.09
millionin public welfare
In 2024, the Company donated RMB 74 thousand of welfare supplies to the “Food Bank of Love” at Jialian Street,Xiamen City, aimed at providing support for the disadvantaged groups. Through this initiative, we provided practicalsupport to the residents in need, conveyed the Company’s love and care for the community, and contributed to thepositive cycle of social welfare.
Love Action - Caring for special groupsCase
7877
Undertaking Social Responsibility
In 2024, the Company initiated the children’s book donation program themed “Books for Children, Love for All”, aimedat helping children in rural areas grow in reading through book donations, collection of “Glimmering Light” messagesand guided-reading activities.The Company donated RMB 100 thousand to the Stars Youth Public Welfare Development Center for 10township schools and 1 community library. A total of 5,500 new books were donated, beneting more than7,000 teachers and students and attracting the attention of more than 130 thousand netizens to children’seducation in the countryside through social media. We carefully selected books based on students’ age, readingprociency and interests, covering a wide range of categories such as picture books, children’s literature, popularscience encyclopedias and classic books.Furthermore, the Company launched the “Glimmering Light” messages collection activity, in which players sent theirblessings to rural children on social platforms with warm words to express their care. Volunteers guided the childrento complete reading tasks, discuss and express themselves creatively through theatre performances, painting andwriting, helping them enhance their thinking skills and language expression.The project was selected as one of the “2024 Typical Cases of Game Public Welfare” by People's Daily,demonstrating our long-term commitment and innovative practice in promoting the development of rural children’seducation, and further enhancing the brand’s social inuence.
Case
Children’s book donation and reading experience day
Natural disaster relief
In 2024, heavy rainfall caused severe ooding in many southern regions. To help the a?ected residents overcomethese difficulties, the Company, together with Shenzhen One Foundation, responded quickly by donating reliefsupplies with a total value of RMB 710 thousand to assist the a?ected areas including Wuping in Fujian Province,Meizhou in Guangdong Province, Zhenyuan in Guizhou Province, Pingjiang in Hunan Province, and Dianjiang inChongqing Province.In addition, the Company was concerned about the recovery of education in the affected areas. The donatedmaterials include desks and chairs with a value of RMB 210 thousand to support the reconstruction of damagedschools, helping students return to school as quickly as possible and restore a normal learning environment.In the face of sudden disasters, we acted swiftly and responsibly, providing targeted support to help a?ected areasrestore production and daily life.
Volunteering for ood relief - Supporting the rebuilding of a?ected areasCase
Delivery of relief supplies
Children’s book donation - Lighting up the reading dreams of rural children
8079
Undertaking Social Responsibility
Standard formulation and topic research
Promoting industry exchanges and cooperation
This year, G-bits, as one of the drafting units, participated in the development of four group standards for the Internet Societyof China, including the Guidelines on Carbon Disclosure for Internet Enterprises, the Guidelines on Evaluation of SocialResponsibility and ESG Information Disclosure for Internet Enterprises, the Guidelines on Preparation of Social ResponsibilityReport on the Protection of Teenagers, and the Guidelines on Preparation of Social Responsibility Report on the Protection ofPersonal Information.Moreover, the Company actively contributed suggestions to the industry. Such efforts include submitting the opinions andsuggestions on the group standards of Requirements for Consumption Management of Teenagers’ Online Game Services to theInternet Society of China. In collaboration with relevant organizations such as the Game Publishing Committee, the CyberspaceAdministration of Xiamen and the Cyberspace Administration of Shenzhen, the Company participated in the research on theReport on Anti-addiction of Online Games, the current state of game IP derivatives, and the anti-addiction mechanism forminors, thereby assisting the industry in optimizing its policies and practices.The Company has actively participated in the development of industry organizations. We are selected as one of the firstmembers of the Digital IP Application Committee of the China Audio-video and Digital Publishing Association andserve as a vice-chairman of the Shenzhen Game Specialized Committee of the Shenzhen Internet Federation as well asthe chairman of the Xiamen Game Industry Union, demonstrating our commitment to driving the high-quality development ofthe industry.The Company continues to engage in industry events, such as the Fine Game Development and Creation Forum on the 2024China Game Industry Annual Conference, National Cybersecurity Awareness Week in Fujian Province, Guangdong Game Expo.Through these engagements, the Company has collaborated with industry partners to build a healthy, open and innovativeecosystem for the game industry.
On December 12, 2024, the Fine Game Development and Creation Forum was successfully held in Shijingshan,Beijing. The forum was hosted by the Game Working Committee of the China Audio-Video and Digital PublishingAssociation (CADPA) and the Expert Committee on Game Industry Research of the CADPA, and organized by theCompany. With the theme “Upholding Integrity and Pursuing Relentless Innovation”, this forum gathered professionalsfrom the game industry and experts in related elds. Participants engaged in in-depth exchanges and intellectualdiscussions on topics such as game development concepts, technical architecture, and engineering capabilities.At the forum, participants not only explored the creation strategies and development directions of premium games,but also shared successful cases and cutting-edge technologies, which promoted continuous progress in contentcreation, technological innovation, and high-quality development within the industry. As the organizer, the Companyprovided a platform for industry exchange, promoting technological innovation and the advancement of high-qualitygame development, signicantly contributing to the growth of the game industry.
Fine Game Development and Creation Forum at the 2024 China Game Industry AnnualConferenceCase
2024 China Game Industry Annual Conference - Fine Game Development and Creation Forum
Empowering talents development
G-bits is committed to cultivating and guiding talent within the industry. Leveraging our industry inuence, diverse platforms andprojects, we promote knowledge sharing, strengthen talent cultivation, and deepen industry-university-research cooperation,facilitating sustainable development of the industry.Eliminating industry barriers through knowledge sharing
The Company actively shares and promotes specializedknowledge within the game profession. Through thecreation of an interview series titled “My Story withGames”, frontline employees share their experiences,showcase the diversied ecology of the game industry,and help eliminate social misunderstanding aboutthe industry. In addition, we have established the“Game Trivia” series to popularize game developmentknowledge in a fun way, stimulating young talents’interest in the industry, and raising the social awarenessof the game industry.Promoting practical exchanges and incubation innovative talent
In 2024, the Company has organized a series of college game developer salons in Wuhan, Beijing, Shenzhen, Xiamen andChengdu. These events were designed to build an o?ine interactive platform, o?ering college game developers opportunitiesto showcase their works, conduct games trial, and engage in industry exchanges. The events invited the Company's frontlineproducers, senior R&D experts, executives and school recruiters to share insights on game development, industry trends andcareer planning, helping young developers improve their professional abilities and drive game innovation.
“My Story with Games” and “Game Trivia” series
Empowering industry development
G-bits keeps an eye on the development of the game industry. The Company collaborates with universities and partners toprovide opportunities for industry talents to showcase their abilities, empowering the sustainable development of the gameindustry. The Company pays close attention to industry trends, proactively engages in government and industry events, anddemonstrates its corporate responsibility through practical actions. We consistently contribute to the high-quality development ofthe game industry, helping build a healthy, stable, and sustainable industry ecosystem.
8281
Undertaking Social Responsibility
Building industry bridges through enterprise open day
Deepening industry cooperation and promoting talent ecosystem
This year, the Company held a corporate open day event, inviting college teachers and students interested in the game industryto G-bits and get a deeper understanding of the ecology of the game industry. The event included professional sharing sessionsand interactive game trials, providing young groups with industry insight and practice opportunities, thereby helping to build theindustry talent pipeline.
The Company actively engages in external academic research and industry technology exchanges. By promoting collaborationamong industries, academia, and research institutions, we advance the talent cultivation in the game industry to build a moreinclusive industry talent ecosystem.
Enterprise open day visiting activity in Guangdong University of Technology and Harbin Institute of Technology
The Company has organized the G-bits Game Developer Contest for six consecutive years. With a global perspectiveand professional guidance, this contest invited core game developers as team leader and provided opportunities foro?ine game trial opportunities, providing a platform for university developers to show their talents and exchange theirideas.In 2024, over 2,000 developers from over 600 universities worldwide participated in the contest, with more than300 creative game works submitted. Among them, 143 participants were from international locations, covering 13countries, including top international institutions such as New York University and University of Southern California.The contest is committed to cultivating young game talents and incubating high-quality creative works, contributing tothe creation of an open and collaborative talent ecosystem in the industry.
Empowering Young Developers and Building a Global Game Talent Ecosystem - G-bitsGame Developer Contest
Case
G-bits Game Developer Contest
Since 2021, G-bits has established the G-bits & University Game Development Alliance, an organization for learningand exchanging among college game development enthusiasts. It provides students with systematic learningresources and professional guidance, helping young developers enhance their skills and industry knowledge. Thealliance regularly organizes activities such as live course broadcasts, summer game development practical training,University Game Jam challenge, and invited industry experts and experienced producers to exchange and shareviews. In addition, the alliance provides resource support for university game culture ecosystem by sponsoring 14game societies from universities such as Huazhong University of Science and Technology, Shenzhen University andNortheastern University.In 2024, the alliance organized over 40 live course broadcasts, with members exceeding 6,000, covering nearly 600universities and involving 120 university societies.
Cultivating Future Game Developers and Promoting Sustainable Industry Development -G-bits & University Game Development AllianceCase
Student work from practical training under G-bits & University Game Development Alliance Game Education Campaign
8483
Undertaking Social Responsibility
Appendix
Key Performance Table
IndicatorUnit202420232022Total electricity consumption in o?ceskWh3,833,963.303,427,466.102,800,028.15
Electricity consumption in Xiamen O?cekWh1,435,269.001,427,013.001,352,345.00Electricity consumption in Shenzhen O?cekWh2,088,971.301,689,708.101,169,866.15Electricity consumption in Guangzhou O?cekWh309,723.00310,745.00277,817.00Energy consumption intensitykWh/person2,637.752,537.922,546.64
Total water consumption in o?cesTonne29,106.7317,545.4420,785.68Water consumption in Xiamen O?ceTonne14,356.9110,997.4414,695.68Water consumption in Shenzhen O?ceTonne14,656.826,422.005,976.00Water consumption in Guangzhou O?ceTonne93.00126.00114.00Water consumption intensityTonne/person20.0312.9918.90Indirect greenhouse gas emissions (Scope 2)Tonne1,643.462,654.542,235.42Total non-hazardous waste generated
Tonne124.04114.33/Non-hazardous waste generated intensity
Tonne/person0.090.08/Volume of waste recycled
Tonne2.072.23/Total number of employeesNumber1,4601,4471,254By age group
≤ 30Number75392780530-50Number707520449By academicqualication
Master's degree and aboveNumber229235178Bachelor's degreeNumber1,0131,002874Junior college degree and belowNumber218210202By gender
Male employeeNumber1,003993860Female employeeNumber457454394
IndicatorUnit202420232022
By gender
Male managementNumber136129119Female managementNumber494339Byprofessionals
R&D personnelNumber919855692Non-R&D personnelNumber541592562Bygeographicalregion
China mainlandNumber1,4461,4341,243Hong Kong, Macao and Taiwanregions of China
Number976OverseasNumber565Total number of newly hired employeesNumber514493553Percentage of vacant positions lled by internalcandidates
%3.472.533.58Average employment cost per FTERMB/person10,44810,55110,906Total number of training sessionsSession94168177Total training hours provided by the CompanyHour334504870
Training hours per employee per year
Hours/person0.230.370.79Employee training coverage rate/percentage oftrained employees
%100100/Total training investmentRMB 10 thousand117.84352.68389.88Employee absence rate%0%0%0%Amount invested in employee work injuryinsurance
RMB 10 thousand90.1258.1238.97Coverage rate of employee work injuryinsurance
%100100100Investment in society contributionRMB 10 thousand129.57298.53246.69Investment in public welfare donationsRMB 10 thousand109.34292.95226.69Investment in environmental protection publicwelfare
RMB 10 thousand20.235.5820.00Investment in rural revitalizationRMB 10 thousand99.8578.47103.58
The Company's operations generate non-hazardous waste, primarily including household waste, food waste, and electronic waste, all of which aremanaged by the property management company. The current non-hazardous waste statistics include those of three o?ce premises of the Company inGuangzhou, Shenzhen and Xiamen.
This year, the Company used the average total number of employees at the beginning and end of the year to measure non-hazardous waste generatedintensity.
The Company's recycled waste primarily includes electronic devices and their components, such as mechanical hard drives, solid-state drives, laptops,monitors, desktops, and servers.
This year, the Company used the average total number of employees at the beginning and end of the year to measure training hours per employee peryear.
EnvironmentSociety
Society
8685
Appendix
Indicator Indexes
The Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies-Sustainability Report (Trial) index
The Company was not involved in any situation where the balance of accounts payable (including notes payable) exceeded RMB 30 billion or accountedfor more than 50% of total assets at the end of the Reporting Period. Additionally, the Company was not subject to disclosure of overdue payments tosmall and medium-sized enterprises (SMEs) through the National Enterprise Credit Information Publicity System.
The products related to the Company’s main business are all virtual products and do not involve product recalls.
Specializing in the development and operation of online games, the Company does not fall within the scope of business entities mandated to take outwork safety liability insurance under the Article 51 of the Work Safety Law of the People’s Republic of China. Therefore, the Company does not purchasework safety liability insurance for employees.
The Company will progressively enhance the data collection capabilities for hazardous waste generation and renewable resource consumption to enablemore comprehensive disclosure of relevant data and its statistical methodology.
According to the classication standards for environmental emergencies outlined in the National Emergency Response Plan for Sudden EnvironmentalIncidents issued by the Ministry of Ecology and Environment of the People’s Republic of China, the Company specializes in the development andoperation of online games and does not engage in activities such as the production, storage, or transportation of hazardous or toxic substances.Therefore, we are not subject to major environmental incidents.
Disclosure dimensionNo.Disclosure issueArticleRelevant Sections
Environment
1Response to climate changeArticles 21 to 28
Response to climatechange, Practicing greenoperation,Key performance table2Emissions of pollutantsArticle 30Not Applicable
3Waste disposalArticle 31
Practicing greenoperation
Ecosystems and biodiversityconservation
Article 32
Practicing greenoperation
Environmental compliancemanagement
Article 33
Practicing greenoperation6Energy utilizationArticle 35
Practicing greenoperation,Key performance table7Water resources utilizationArticle 36
Practicing greenoperation,Key performance table8Circular economyArticle 37
Practicing greenoperation,Key performance table
Society
9Rural revitalizationArticle 39
Contributing assistingrural revitalization,Key performance table10Contribution to societyArticle 40
“Glimmering Light”lighting up the future,Key performance table11Innovation-drivenArticle 42
Upholding innovation-driven development
Disclosure dimensionNo.Disclosure issueArticleRelevant Sections
Society
Ethics in science andtechnology
Article 43
Upholding innovation-drivendevelopment13Supply chain securityArticle 45ESG governance
Equal treatment ofsmall- and medium-sizedenterprises
Article 46Not Applicable
Safety and quality ofproducts and services
Article 47
Developing high-qualityproducts
Data security andcustomer privacyprotection
Article 48
Development of data securitysystem,Data lifecycle management,Safeguarding the healthycontent ecosystem
17EmployeesArticle 50
Talent development strategy,Protection of employee rightsand interests, Maintenanceof smooth communicationchannels, Employeewelfare, Innovation in talentcultivation, Supportingemployee development,Key performance table
Sustainability-related
governance
18Due diligenceArticle 52ESG governance
Communications withstakeholders
Article 53ESG governance
Anti-bribery and anti-corruption
Article 55Business ethics21Anti-unfair competitionArticle 56Business ethics
8887
Appendix
VI. Talent SustainabilityDevelopment
(I) Talent development strategy404-2(II) Protection of employee rights and interests
2-7; 2-25; 3-3; 401-1; 403-8; 405-1;408-1; 409-1(III) Maintenance of smooth communication channelsNot Applicable(IV) Employee welfare
401-2; 403-1; 403-3; 403-5; 403-6-;403-7(V) Innovation in talent cultivation404-1; 404-2(VI) Supporting employee developmentNot Applicable
VII. Green Operations
(I) Response to climate change201-2; 3-3(II) Practicing green operation
302-1; 302-3; 302-4; 302-5; 303-1;303-2; 303-5; 305-2; 306-2
VIII. Undertaking SocialResponsibility
(I) Contributing to rural revitalization203-1(II) “Glimmering Light” lighting up the future203-1; 413-1(III) Empowering industry developmentNot Applicable
GRI Sustainable Development Report Standard index
ContentsGRI Standards
I. About this Report2-1; 2-2; 2-3; 2-4II. About G-bits2-6
III. CorporateGovernance and ESGmanagement
(I) Corporate governance2-9; 2-11; 2-24(II) ESG governance
2-12; 2-13; 2-16; 2-17; 2-22; 2-24;2-29; 3-1; 3-2(III) Business ethics2-25; 2-26; 2-27; 3-3; 205-2; 206-1
IV. Product and ServiceEmpowerment
(I) Developing high-quality products417-1(II) Upholding innovation-driven development417-1
V. Data EcosystemProtection
(I) Development of data security system417-1(II) Data lifecycle management417-1(III) Safeguarding the healthy content ecosystemNot Applicable
ContentsGRI Standards
9089
Appendix
Open-ended question: What are your opinions or suggestions to G-bits on its performance of sustainability management or thisReport?
You may give us your precious feedback or suggestions in the way as described below:
Contact department: Securities Department of G-bitsTel: 0592-3213580Email: ir@g-bits.comContact address: Rm. 101, No. 4 Wanghai Road, Software Park Phase II, Siming District, XiamenPostcode: 361008
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Reader Feedback
Dear Reader:
We sincerely appreciate your time to read the 2024 Sustainability Report of G-bits Network Technology (Xiamen) Co., Ltd.We sincerely welcome your comments and suggestions in order to provide you and other stakeholders with more valuableinformation and e?ectively promote the Company's ability to perform its corporate sustainability management.
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Appendix