China Electronics Optics Valley Union : Environmental, Social and Governance Information

TABLE OF CONTENTS

CONTENTS

01

Openings

Introduction / 4

Overview of CEOVU / 6

CSV Management / 14

02

Special topics

Planning and exploration of low- carbon parks / 22

Climate change risk response / 27

03

Implementing national strategy, leading industrial reform

Building the nation into a strong cyberpower, nourishing Internet and information industrial ecology / 32

Sticking to innovation-driven development, concentrating on cultivating future industries / 40

Pursuing regional coordinated development, empowering local industrial upgrade / 48

Reviving national culture, ushering in integration of science, technology and art / 54

Promoting green development, driving energy consumption revolution / 61

04	05
Value vision in 2022
Gathering the strength
of multiple parties
and upholding social
responsibility

Service first, to meet the diversified needs of customers / 78

People-oriented, create a good employment environment / 92

Create value and protect the long-term interests of shareholders / 106

Mutual benefits and win-win partnerships / 110

Giving back to the public and creating sustainable value in society / 115

06

Postscript to the report

About this report / 122

Table of KPIs / 123

List of honors of the Group / 127

Rating of the Report / 128

Reporting Index / 129

List of internal policies, laws and regulations / 133

Reader's Feedback Form / 138

A glimpse of "CEOVU Social Value Report" / 139

Openings

Special Topics

Implementing national

Gathering the strength of

Value Vision in 2022

Postscript to

China Electronics Optics Valley

strategy, leading

multiple parties and upholding

the Report

Union Holding Co., Ltd.

industrial reform

social responsibility

Corporate Social Value Report 2021

Introduction

					57.7%
48.6%	37.9%		-Year
	-Year				Growth
		Year
	Growth		Growth			on-
	yearon-		year-on			year
			-
Sales	Net		Cash
Revenue	Profit	Flows From
					Operating
					Activities

It is the long-standing cultural value principle of CEOVU that social value leads corporate strategy. CEOVU has taken the annual corporate social value (CSV) report as an important initiative for corporate system and culture building for four years. We firmly believe that only companies that always take the social value mission as the core of their business and always maintain strategic determination will be able to grow forever.

The 14th Five-Year Plan began in 2021, when CEOVU was at a crucial moment of fully implementing digital transformation. While the macroeconomic environment was intricate and complex and some industry leaders were in deep trouble of debt risk and suffering a serious profit decline. CEOVU's has not only achieved accelerated growth, also its sales revenue, net profit and cash flows from operating activities increased by 48.6%, 37.9% and 57.7% year on year respectively. We have achieved realistic growth in a market of uncertainty, fully embodying the social value of transformation and reform. As a builder of the industrial ecology of China Electronics Corporation (CEC), CEOVU has made positive contribution in 2021. Taking implementing the national strategies, including building the nation into a strong cyber power, sticking to innovation-driven development, pursuing regional coordinated development, cultural rejuvenation and ecological civilization, as due responsibilities, CEOVU has contributed in driving regional economic coordination, upgrading industrial resources allocation, promoting integration of the dual circulation, and forming an industrial innovation system. CEOVU's achievements can be viewed in five aspects:

03 Speeding up innovation in industrial service model, providing professional support for industrial park upgrade in more cities

In 2021, CEOVU unswervingly improved its strategic potential, made use of its resource advantages, and integrated the internal and external industrial resources. While adhering to its development philosophy of One Platform, Two Methodologies (CEOVU takes the construction of a national leading "industrial resource sharing platform" as its strategic goal, fully implements the "system planning methodology" and "comprehensive operation methodology") and sticking to the mechanism of joint innovation, CEOVU has been following the customer-first principle, exploring better business models and deepening the innovative business philosophy. Thus, we are able to provide industrial comprehensive operation services, which are whole-process and all-around, covering the entire business chain. In 2021, many urban comprehensive operation projects were launched by CEOVU in Chenzhou, Hebi, Yichang, Huai'an, Xiangyang, and Hulan. While helping to boostregional coordination and urban industrial and economic development, CEOVU's projects coexist, achieve win-win results, and gain common development with the cities.

04 Focused on institutional and cultural innovation to continuously improve the effectiveness of artistic empowerment

01 Accelerating systematic contribution of digital industrial park, promoting building a strong cyber power with industrial cloud

"As a member of China Electronics Corporation ("CEC")" , CEOVU has developed an in- depth understanding of CEC's national mission and strategic positioning. In 2021, CEOVU took accelerating the construction of the core force and organizational platform of the Internet and information industry as the fundamental mission and chose digital capacity building as the beginning point, ths continued to upgrade the system platform for digital industrial parks. In particular, CEOVU independently developed the industrial cloud with powerful intelligent application functions in 2021, which has been put into use in 23 projects in 17 cities, including Wuhan, Hefei, Changsha, Chongqing, Qingdao and Chengdu, laying a solid foundation for promoting digital power in the country.

02 Sparing no effort in enhancing the platform for mass entrepreneurship and innovation, actively cultivating an innovative environment

Innovation is the primary driving force for development. Cultivating an innovative environment is the main responsibility of CEOVU. In 2021, it continued to step up efforts to build more first-class incubators and mass innovation spaces, playing a better leading role as a central enterprise. The mass entrepreneurship and innovation development system has been supporting companies of all sizes to jointly innovate. CEOVU has the most State-level science and technology business incubators and mass innovation spaces among the members of CEC enterprises.

In 2021, we have continued to use the United Art Museum and the Cultural and Creative Research Institute as our base to build a public platform, deliver education in the arts to the public, and empower industry with art and creativity through a rich variety of art exhibitions, academic events, and literary works. In 2021, the United Art Museum presented 10 academic exhibitions, 87 public education events, 125 new collections, 9 publications, and a total of 200,000 visitors.

05 Taken "low-carbon park" as a goal to promote energy consumption revolution

In 2021, CEOVU has followed the national green development strategy, put forward the "low- carbon park" construction target and plan, implemented the green low-carbon model in multiple business sectors, actively responded to climate change, and contributed to the national goal of "carbon peaking and carbon neutrality". This year, Wenzhou Company, Wuhan Company, Chongqing Company and Shanghai Company have integrated the target concept of "low carbon park" into their business management. Among them, in 2021, the Hanyang Smart Eco-city has an energy supply service area of 332,000 m2, and it is estimated that the project can reduce carbon dioxide emissions by about 20,000 tons per year, which will set a precedent in the province to help achieve the goal of "low-carbon park".

Social value is the core value of a business. CEOVU firmly roots social value in each business sectors, continues to respond the needs of the country and the times, continuously explores sustainable social value, and contributes CEOVU's solutions and theoretical thinking to the high-quality integrated development of industry and city.

4

5

Openings		Special Topics		Implementing national		Gathering the strength of
				strategy, leading		multiple parties and upholding
				industrial reform		social responsibility

Overview	01 / About Us
of CEOVU
General Introduction
	China Electronics Optics Valley Union Holding Co., Ltd. ("CEOVU", "the Group" or
	"we", stock code: 00798.HK) was listed on the Main Board of the Stock Exchange of
	Hong Kong Limited ("Hong Kong Stock Exchange") on March 28, 2014.
	Leveraging CEC's cybersecurity and electronic information industrial resources
	and built on full lifecycle operation services, CEOVU fully supports CEC's IT
	innovation industrial ecosystem and Digital China strategies. Adhering to the
	strategic orientation of industrial services, CEOVU is committed to facilitating the
	shaping of a new landscape of high-quality development for emerging industries
	whereby" central State-owned enterprises lead the joint innovation together
	with large enterprises and MSMEs", with a view to building an industrial resource
	sharing platform characterized by industry clustering, intelligent services and
	networked investment.
	During 2021, there were no significant changes in the Group's organizational size,
	structure or supply chain, other than those disclosed in this chapter.

Value Vision in 2022	Postscript to	China Electronics Optics Valley
	the Report	Union Holding Co., Ltd.
		Corporate Social Value Report 2021

Organizational Structure

Shareholders in general meeting
Board of Directors	Organizational structure
of listed company
Management Committee

Group Office Committee

President

Headquarter of The	Development	Operating	Industrial investment	Cultural and Creative
Company	Companies	Companies	Companies	units
Office Department	Qingdao Company	The CEOVU Design Institute	LingDu Capital	the United Art Museum
Board Secretary and Legal	Shenyang Company	Lidao Technology	Shenzhen Company
Department
Audit Department	Tianjin Company	JiTian Construction	Kaiyao Company
	Hefei Company	CEC Energy-saving	Optics Valley Union

Main Business

Following the idea of "city-specific approach", CEOVU has shaped a "one body and two wings" business mix with industrial park operation as the main body, park development as the underpinning, and industrial investment as the engine:

Industrial park
	operation
Underpingning	services
Engine

including design and construction services, property management services, park property leasing, energy services, digital park services, incubator and shared office services, park financial services, group catering and hotel services, digital apartment services, cultural, sports and entertainment services.

Financial Management		Industrial Investment Fund
Center	Luoyang Company
	Lidao Property
Human Resources Center		……
Project Management Center	Xianyang Company	OVU Technology
Planning and Development	Ezhou Company	Zhong Chuang Financing
Center	Xi'an Company	Chongqing Company
Industrial Cooperation Center	Huanggang Company	Yinchuan Company
Digital Center	Huangshi Company	Putian Company
Digital Park Business
Department	Xinzhou Company	CENSE
Publicity Department &	Caidian Company	Ziyuan Hotel
Cultural and Creative
Research Institute	Shapingba Company	Quanpai Catering
The Research Institute of	Chengdu Company	...
Industrial Economics
Industrial Ecology Research	Nantong Company
Institute
Research and Innovation	Changsha Company
Center Phase III Project	Xingsha Company
Department
	Shanghai Company

	Industrial park	Industrial
	development
	investment
	services
industrial park sales		industrial investment business related
		to industries in theme parks

Yichang Project Working
Group	Wenzhou Company
Xiangyang Project Working
Group	...
The Baotou Project Working
Group
Chenzhou Suxian Project
Working Group
...

6

7