According to the Zhithong Finance APP, recently, Doyin Ask (02438) released the "2023 Environmental, Social and Governance Report," outlining its environmental, social and governance performance for the fiscal year 2023 and its ongoing efforts in sustainable development.

Doyin Ask will be listed on the main board of the Stock Exchange of Hong Kong from April 24, 2024, and is dedicated to generative AI and voice interaction technology, providing AI-generated content (AIGC) solutions, AI enterprise solutions, smart devices, and accessories.

The Board of Directors of the Group has established clear responsibilities and duties; and engaged professionals to assist in assessing ESG-related risks, reviewing existing strategies, objectives and policies, and conducting materiality assessments. At the same time, the group actively establishes channels for communication with stakeholders such as employees, investors, customers, suppliers, distributors, and communities to promote timely and effective communication with stakeholders and adjust strategies and governance methods according to their feedback. Based on the assessment results, the group identified five material issues.

In terms of environmental protection, Doyin Ask is fully promoting the implementation of guidelines that comply with the country's carbon reduction targets and sustainable development, and has deep-rooted environmental protection concepts into the company's long-term development strategy. This year, the group's main energy consumption is electricity and water. The group's greenhouse gas emissions are mainly indirect energy emissions from offices and data centers. In 2023, the total energy consumption of the group was 291.51 MWh; the total water consumption was 367 cubic meters; and the total greenhouse gas emissions were 162.31 tons of carbon dioxide equivalents, with a greenhouse gas emission intensity of 0.32 tons of carbon dioxide equivalents per million yuan in revenue.

As of December 31, 2023, the total number of employees in the group was 394. As of the end of December 31, 2023, the group's employee turnover rate was 52%. The group attaches great importance to providing appropriate training for employees to meet the requirements of different positions, and has developed an employee training management system. During the reporting period, a total of 92 employees received completed training, with a total of 46 hours of training.

Doyin Ask's suppliers mainly include hardware and component suppliers and raw material suppliers, contract manufacturers, cloud computing service and cloud server providers, data source suppliers, and warehousing and logistics service providers. This year, the group has a total of 107 suppliers.

To manage the environmental and social risks of the supply chain, the group has taken various measures to ensure that its business activities on the value chain will not have a negative impact on the environment and society. For example, the group will work closely with suppliers to encourage them to develop and implement environmental and social responsibility policies to ensure that their operations do not have a negative impact on the environment and society. At the same time, the group will continue to monitor the environmental and social risks in the supply chain through regular communication and inspections, and take necessary measures to improve when appropriate. The group is committed to continuously improving supply chain management to effectively manage and control environmental and social risks, and make contributions to sustainable development.

As an AI company with generative AI and voice interaction technology as its core, Doyin Ask has invested a lot of resources in research and development. As of December 31, 2023, the company's R&D team consisted of 240 members, accounting for 60.9% of the group's total employees. This year, the group's R&D expenses amounted to RMB 154.7 million, accounting for 30.5% of the group's total revenue for the year.

The group also attaches great importance to data security and protection, and has adopted standardized protection measures such as confidentiality management, access controls, and de-identification of personal information to prevent unauthorized access, leakage, improper use, modification, damage or loss of data and personal information. In addition, the group has adopted technical and organizational measures to protect data security and privacy. In terms of technical measures, the group has deployed a data backup mechanism, and also uses vulnerability management tools and network attack detection mechanisms. In terms of organizational measures, the group has issued and implemented a comprehensive personal information protection policy and adopted an account and permission management system to ensure data security.

(Link ESG researcher, Xie Yuxia)