Climate Change Data

Environmental Metrics

Environmental Challenges

• Performance issues or an inability to provide good customer service
• Failure to retain existing or attract new customers or service providers
• Intense competition
• Inability to effectively manage growth and expansion
• Chinese government intervention or influence
• Changes in U.S. and Chinese regulations
• Uncertainties regarding interpretation and enforcement of PRC laws
• Complex and evolving laws and regulations regarding privacy and data protection
• Cybersecurity review requirements
• Approval of CSRC or other Chinese regulatory agencies
• Fluctuations in exchange rates
• Difficulties in protecting shareholder interests
• Increased regulatory scrutiny in the U.S.
• Highly volatile trading price of ordinary shares
• Difficulties in protecting shareholder interests due to Cayman Islands incorporation
• Exemptions from certain Nasdaq corporate governance standards
• Risks related to natural disasters, health epidemics, and COVID-19
• Increase in labor costs in the PRC
• Lack of business insurance coverage
• Material weaknesses in internal control over financial reporting
• Increased costs of being a public company
• Recently enacted economic substance legislation of the Cayman Islands

Mitigation Strategies

• Efforts to provide quality performance and good customer service
• Strategies to attract and retain customers and service providers
• Investments in expanding and upgrading business
• Dissolution of VIE structure
• Efforts to comply with applicable laws, regulations, and obligations
• Implementation of necessary mechanisms to protect information security
• Hiring additional internal staff familiar with US GAAP and SEC reporting
• Providing training to accounting personnel

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: U.S. GAAP

Third-party Assurance: TPS Thayer, LLC