March 18, 2022

To our stakeholders:

I am delighted to declare that Kmind Strategy Consulting reaffirms its support for the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress we describe our actions of continually improving the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to sharing this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Weishan Xie
Co-founder, Chairman

1. Workplace harassment prevention
a) Any employee who disseminates rumors or maliciously makes false and damaging statements about other employees of the company, or maliciously talks about previous employees or clients of the company outside the company's information system, or who uses the internet or other media platforms to disseminate such rumors, statements and accusations, is deemed to be committing a disciplinary offence and shall be given a written warning.
b) Any employee who violates the provisions on the prohibition of harassment, including but not limited to sexual harassment, direct or implied, such as verbal or physical harassment of a sexual nature, commands or requests for sexual favors, sexual comments, sharing and distribution of pornographic materials, is deemed to be committing a serious violation of discipline, and the company retains the right to terminate his or her employment forthwith.
c) Any employee who takes part in or abets in fights and disturbances, including threatening, abusing or attacking any employee of the company, or publicizing or encouraging such actions on company premises or the premises of its contractors, agents, customers and other partners, is deemed to be committing a serious violation of discipline, and the company retains the right to terminate his or her employment forthwith.

2.Office safety and fire protection
a) Smoking is strictly prohibited on company premises;
b) Inflammable materials are strictly prohibited on company premises unless they are for business use, such as chemical samples, and whose use has been approved by the administrative department and are safely stored;
c) Tampering with or otherwise disturbing any fire alarm or other firefighting equipment is strictly prohibited;
d) All employees should be familiar with the emergency exits at the worksite for effective evacuations during workplace emergencies;
e) All employees should be familiar with basic operating procedures for fire-fighting equipment provided and should regularly take part in fire drills;
f) In case of a fire emergency, use stairs rather than elevators to exit premises;
g) Fire drills of different types (fire prevention, first aid and fire evacuation), fire protection tests and maintenance of fire-fighting equipment shall be conducted regularly.

3. Employee complaints
Any employee with a grievance against the company is encouraged to communicate with departmental heads or direct superiors so that an amicable solution can be reached. If the employee is dissatisfied with this process he or she can file a complaint with the higher level management.

a) The company plans to launch online mental health counseling for all employees.
b) Employees are provided with high-standard travel and accommodation allowances, including superior hotels, and an integrated business travel platform for flights, trains and taxis booking to ensure travel safety.
c) Employees are provided with comprehensive health management covering accident insurance, life insurance, supplementary medical insurance, family medical fund, quick appointment with specialist doctors and annual physical examination.
d) Employees are provided with expense cards for multiple food and beverage stores near the workplace for a convenient dining experience.
e) Employees are provided with fruits and snacks, etc, during afternoon tea time every day.
f) During the pandemic, the company provides all employees with pandemic protection kits (masks, disinfectants and thermometer, etc), regularly updates travel policies, and offers a door-to-door Covid-19 testing service to ensure the safe travel of employees.
g) Employees are provided with lift-top desks and laptop stands to create a healthy workplace environment and improve spinal health.

1. Demographics
a) Gender ratio in middle and top management:
➢ Female: 33, 44%
➢ Male: 42, 56%
b) Age ratio in middle and top management:
➢ Under 30: 5, 6.6%
➢ 30-40: 59, 78.7%
➢ 40-50: 9, 12%
➢ Above 50: 2, 2.7%

2. Human rights
a) Fire protection:
Fire drills: Twice a year
Equipment maintenance (AC, smoke detectors, fire extinguishers carpets): four times a year
Number of smokers: None
b) Employee benefits
Medical appointment with specialist doctors made: 95 appointments a year
Claims of family medical funds settled: 840 cases a year

1. Employment contract
a) Employees shall sign the employment contract immediately on their first day of work after submitting relevant materials as required by the company.
b) Any change of the employment contract (such as change of position and salary), shall be agreed to by both the company and the employee and signed by both in written form. The revised employment contract or relevant documents shall be made out in two original copies to be held by each party.

2. Working hours
The company implements different working schedules by law, namely standard working hours and irregular working hours, in accordance with the nature of different positions and business needs. The standard working shift starts between 9 am and 10 am and ends between 6pm and 7 pm, which includes a one-hour lunch break. For certain positions the company implements an irregular work scheduling.

3. Employee compensation
a) The company follows the minimum wage standard required by national laws and regulations.
b) Salaries are determined in accordance with the company's operating conditions, employees’ positions, qualifications and work performance and regional market factors. Basic salaries include subsidies for necessary employee expenses, including those stipulated by laws and regulations.

The company and all departments set performance objectives according to the performance evaluation cycle stipulated by company policy, and use work performance and ability of an employee in combination with their performance evaluation result in line with the performance objectives of the year as measurements for compensation, promotion, bonus, training, and employment status. In line with the company’s emphasis on value creation, the setting of performance objectives and evaluation of performance should be based on the actual value created by employees for customers and the company.

a) Labor disputes: None
b) Named a “Shanghai Harmonious Labor Relations Enterprise” by the Human Resources and Social Security Bureau of Pudong New Area, Shanghai

a) Employees shall strictly abide by waste classification regulations. All wet waste should be separated and thrown into the garbage bin placed in the tea room in the public area of the corridor. The office area only provides collection bins for dry and recyclable waste.
b) A lactation room is provided for employees who need it.
c) A telephone room is provided and cameras are set properly in reasonable locations to protect employee privacy.
d) To create a safe and low-carbon workplace environment, the last employee to leave the office should check that doors and windows are closed, and air conditioning and power supplies are turned off.
e) The company regularly invites professionals to conduct air quality tests to ensure a safe workplace environment.
f) The company regularly invites professionals for landscape maintenance to create an attractive workplace environment.
g) The company regularly conducts drinking water quality tests to ensure employee health and safety.
h) The company's office building is LEED platinum certified. The office area is vacuumed every day, and is regularly disinfected, sterilized and cleaned. During the pandemic, the office area is disinfected and sterilized regularly.

All the policies above are completely executed by Kmind's administration team and HR department.

a) Occupational disease cases: None
b) Occupational injuries: None

1. Article 4: Discipline and punishment; employee handbook
The following acts are serious violations of discipline, and in such cases the company has the right to terminate employment forthwith. If the company suffers any actual losses arising from such acts it retains the right to claim compensation from the employee in question:
a) Any deception or dishonest behavior in relation to the business, operation and management of the company or its customers;
b) Offering or accepting, or encouraging others to offer or accept bribes or illegal incomes or benefits in any other form resulting in a negative impact on or economic losses by the company;
c) Engaging or taking part in businesses or services that compete with those of the company without the approval of the company, including but not limited to investing in competing entities, holding equity or shares of such entities;
d) Establishing labor/service relations with, or providing consultation, suggestions, opinions to, or providing operational and management assistance in any other forms for a third party without the approval of the company;
e) Having close relatives or other persons or organizations engage or take part in businesses competing with the company without disclosing this to it in a timely manner;
f) Seeking business opportunities belonging to the company for oneself or on behalf of others;
g) Conducting business with the company (directly or indirectly) without its approval.

2. Article 5: Confidentiality, Employee Handbook
Employees shall keep confidential all technological, operational and any other valuable information of the company they have acquired during their employment with the company, and shall not disclose such information to any third parties. Employees acknowledge and agree that the company's information are the intellectual achievements of the company and of all employees, and are of commercial value to the company.

All the policies above are highly observed and monitored by HR department and Legal department .

a) Incidents of corruption: none
b) Investigations, legal cases, rulings, fines: none