Introduction to this report

Datasea is a leading provider of products, services, and solutions for enterprise and retail customers in three converging and innovative industries: 5G messaging, acoustic intelligence, and smart city technology. The Company possesses proprietary and cutting-edge technologies that build a solid foundation to design, develop and supply a broad range of solutions in each industry. We have a long-term sustainability strategy integrated into all areas of our business for the benefit of our stakeholders:regulatory bodies, customers, shareholders, employees and communities.
As a company committed to global best practices, we advocate for greater transparency. Datasea is committed to providing meaningful and accurate sustainability information to stakeholders.
Datasea disclose information about our environmental, social and governance (ESG) practices and performance to stakeholders through our Annual ESG Report and quarterly sustainability statements.
We recognise that the field of sustainability is ever-evolving and dynamic in nature. As the sustainability landscape evolves, we continue to enhance our sustainability reporting.
We commence our ESG disclosure aligned to the SASB framework. This is an initial step in our evolution as we build a more unified sustainability framework.
We look forward to providing additional reporting in the coming months.

2023 FIRST QUARTER ENVIRONMENTAL，SOCIAL AND GOVERNANCE (ESG) REPORT

The company is a leading provider of products, services, and solutions for enterprise and retail customers in three converging and innovative industries: 5G messaging, acoustic intelligence, and smart city technology. The Company possesses proprietary and cutting-edge technologies that build a solid foundation to design, develop and supply a broad range of solutions in each industry.

• Vision: Datasea’s vision is to become a global leader in Digital Intelligent Technology, to innovate and provide advanced technology to a broad client base, and within a decade, to evolve into a multinational company with a U.S. entity as the core of its business operations.
• Sales: The company generated $17,080,911 in the 2022 fiscal year
• Employees: The company has about 50 employees.
• Offices: It operates in 2 main offices in 4 main cities namely Beijing,and Shenzhen.
• Operation: Datasea is a micro-cap company listed in Nasdaq.

The company is organised in a matrix structure by reference market and business unit, identifying three macro-areas of activity.

Datasea as is company are aware of global environmental issues. The company is committed to improvement of the environment. It works actively to safeguard and protect the environment and conserve natural resources to satisfy stakeholders’ sustainability concerns and requirements.

The company’s commitment to safeguarding the environment and conserving natural resources is manifested in its modus operandi and the products it delivers. The company is set up to reduce the environmental impacts of consumers by providing them with online marketing services right from their fingertips. This reduces salesmen’s travel journeys and emissions.

Datasea’s environmental commitment is reflected in the application of the company’s sustainability policy. This policy was developed in 2023 to formalise the company’s environmental sustainability vision and commitment to operate in an environmentally conscious and sustainable way to improve the environment and satisfy stakeholders’ sustainability concerns and requirements.

In particular, the company has ambitions to minimise waste, energy and water consumption and reduce greenhouse gas emissions (GHG) at company level.

At the company level, an ISO14001-compliant environmental management system is used to manage our operational environmental impacts.

The commitment of the company to environmental sustainability has led to the development of environmental improvement initiatives launched over the years to enable the company to consume environmental resources more efficiently and reduce the negative environmental impact of its operations.

The company’s environmental management efforts and initiatives have already resulted in environmental benefits and cost reductions. As a result, the company will continue to intensify efforts to improve its environmental performance continually. In particular, the sustainability function, with the cooperation of other central functions and the operating units, will endeavour to ensure:

• The reporting of increasingly accurate and reliable data and information about the company’s consumption of environmental resources and greenhouse emissions
• The involvement of the company’s suppliers in monitoring and quantifying the impacts of climate change associated with the Datasea goods and services

Datasea are a company with a broad stakeholder base and, as such, it is important to align the company’s interest with all stakeholders. This stakeholder relationship requires the company to develop security measures to satisfy stakeholders’ (which include employees, investors suppliers, institutions, customers and communities in which we work in) data security and privacy concerns.

To this end, Datasea seek to uphold the highest standards of fair and ethical practice in every action taken across all areas in which we operate. We are committed to the management of customers’ data to ensure they are always protected and kept securely.

As a result, we established a data management strategy launched in 2023 in support of our business strategy in protecting and securing data and systems. The strategy guides the development of specific initiatives in this area to ensure that the company:

• Use customer data to provide them with online services only
• To protect and secure customer data throughout the information life cycle

Datasea are people-centric company, supporting and recognising the abilities of those who work for the company and for the community in which it operates. To achieve this, continuous multi-disciplinary and specialist training programmes have been developed for employees. The CEO owns about 45.7% shares of the company. Together with management, a significant part of the share capital is invested directly into the company.

The company has built its history and successes on the abilities of its employees, who have been leading actors in the achievement of these results. Their ability to transmit values, experience and attachment to the firm to younger colleagues, generation after generation, has proven to be a fundamental driver in the creation of value for the company for almost 10 years.

The human capital strategy launched in 2023 in support of our business strategy are based on the following pillars:

• Constant improvement and development of the business model consistent with our business strategies and priorities
• Strategic planning of resources to ensure the compatibility of our human capital with the needs of the company in terms of capacity and skills
• Development of employer branding to increase knowledge and awareness of the Datasea brand as an employer of labour and increase the positioning of the brand in the job market, partly via recruitment initiatives
• Creation of a strong talent pipeline that ensures the sustainability of the company’s human resources
• Development of employees’ technical, professional and managerial skills
• Meritocracy as a basic element for the development of resources to ensure long-term sustainability of the company
• Development of employee engagement and sense of belonging via structured approach to align management and initiatives with the priorities perceived by employees and, in particular, via a broad share ownership programme designed to make most of them shareholders