China Gingko Education : 2019 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

2019

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Environmental, Social and Governance Report

Content
ABOUT THE REPORT � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �	2
SCOPE OF THE REPORT	2
REPORTING FRAMEWORK	2
SUGGESTIONS AND FEEDBACK	2
ABOUT THE GROUP � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �	3
ESG GOVERNANCE � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �	3
STAKEHOLDER ENGAGEMENT � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �	4
STUDENT-ORIENTED� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �	6
PROVISION OF QUALITY COURSES AND DIVERSIFIED ACTIVITIES	6
TEACHING PERFORMANCE MANAGEMENT	7
CAMPUS SECURITY AND FIRE SAFETY	8
CATERING SERVICE AND FOOD SAFETY	8
STUDENTS' PHYSICAL AND MENTAL HEALTH	9
STUDENT COMPLAINT AND SATISFACTION	10
EMPLOYMENT AND LABOUR STANDARDS � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �	10
EMPLOYMENT POLICIES	10
HEALTH AND SAFETY	14
DEVELOPMENT AND TRAINING	15
OPERATING PRACTICES � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �	16
SUPPLY CHAIN MANAGEMENT	16
ADVERTISING MANAGEMENT	17
PROTECTION OF STUDENT DATA AND PRIVACY	17
PROTECTION OF INTELLECTUAL PROPERTY RIGHTS	17
ANTI-CORRUPTION	18
ENVIRONMENTAL MANAGEMENT � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �	19
EMISSION MANAGEMENT	19
WASTE MANAGEMENT	20
RESOURCES CONSERVATION	21
COMMUNITY INVESTMENT � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �	22
POVERTY ALLEVIATION	22
VOLUNTEERING ACTIVITIES	23
SCHOLARSHIP	26
AWARDS AND RECOGNITION� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �	27
APPENDIX: THE STOCK EXCHANGE ENVIRONMENTAL, SOCIAL AND
GOVERNANCE REPORTING GUIDE CONTENT INDEX � � � � � � � � � � � � � � � � � � � � �	31

Environmental, Social and Governance Report 2019 China Gingko Education Group Company Limited 1

Environmental, Social and Governance Report

About the Report

China Gingko Education Group Company Limited (the "Company") and its subsidiaries (including the consolidated affiliated entities) (collectively known as the "Group" or "we") is pleased to publish the Environmental, Social and Governance ("ESG") Report covering the period from 1 January 2019 to 31 December 2019 (the "Reporting Period"). The ESG Report not only elaborates our commitments and strategies but also summarises our efforts and achievements on corporate social responsibility and sustainable development. As for the information of corporate governance, please refer to the Corporate Governance Report of the Group's 2019 Annual Report.

Scope of the Report

The ESG Report details the Group's overall environmental and social policies when operating its businesses (namely the provision of higher education service provider business) in the People's Republic of China (the "PRC"). In the Year, the environmental and social key performance indicators ("KPIs") as disclosed are based on the performance of the Group's major operating activities of Gingko College of Hospitality Management (formerly known as Yinxing Hospitality Management College of CUIT) ("Yinxing College") in the PRC during the Reporting Period.

Reporting Framework

The ESG Report is prepared by the Group in accordance with the Environmental, Social and Governance Reporting Guide as set out in Appendix 27 of Rules Governing the Listing of Securities issued by the Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange") and in compliance with the "comply or explain" provisions thereof.

Suggestions and Feedback

Our continuous improvement relies on your valuable opinions. Your opinions will be highly valued. Should you have any advice or suggestions, please feel free to email us at [e-mail].

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Environmental, Social and Governance Report

About the Group

The Group is a higher education service provider which has been offering multifarious education programmes in Sichuan Province since 2002. Upholding our fundamental educational philosophy of "Bringing Excellence to Students and Serving Society (成就學生，服務社會)" and adhering to our motto of "Cultivating Service Awareness and Achieving the Unity of Knowledge and Action (服務養 成，知行相濟)", we are committed to offering a variety of comprehensive programmes and training talents with practical skills applicable to the modern service industry.

Our college currently has 8 departments, which provide a wide range of courses spanning six disciplines, namely management, literature, engineering, education, economics and arts. Our college offers 25 bachelor's degree programmes and 22 junior college diploma programmes, among which the hospitality management program is the leading programme, providing students with practical training courses taught by teachers with relevant industry experience and various internship opportunities in high-end hotels. Since the founding of our college, our diverse programs, quality and experienced teachers as well as the active school-enterprise cooperation have gained recognitions and won many accolades from both national authorities and enterprises of the industry. As at 31 December 2019, approximately 11,000 students were enrolled in our college.

ESG Governance

The Group believes that sound ESG principles and practices will increase investment value and provide long-term returns to stakeholders. In a bid to ensure the establishment of appropriate and effective ESG risk management measures and internal control system, the Board of Directors is responsible for overseeing the Group's ESG strategies and reporting, as well as assessing and determining ESG-related risks.

Environmental, Social and Governance Report 2019 China Gingko Education Group Company Limited 3

Environmental, Social and Governance Report

Stakeholder Engagement

With the goal to strengthen the sustainability approach and performance of the Group, we highly value the feedback and opinions from stakeholders. Through active engagements, we gain a better understanding on stakeholders' requirements, expectations and concerns towards our business, which is one of the key factors that shape our success. We have therefore established multiple engagement channels and proactively engaged our internal and external stakeholders so as to identify the material topics that we should focus on.

	Expectations	Means of communication
Stakeholders	and requirements	and response
Government and regulators	•	Compliance with national	•	Regular information reporting
		policies, laws and regulations
	•	Support for local economic	•	Regular meetings with
		growth		regulators
	•	Contribution in local	•	Dedicated reports
		employment
	•	Tax payment in full and on	•	Examination and inspection
		time
Shareholders	•	Returns	•	General meetings
	•	Operational compliance	•	Announcements
	•	Transparency and effective	•	Email, telephone
		communication		communication and company
				website
	•	Growth in corporate value	•	Dedicated reports
			•	Site visits
Business partners	•	Operation with integrity	•	Review and assessment
				meetings
	•	Fair competition	•	Business communication
	•	Performance of contracts	•	Engagement and cooperation
	•	Mutual benefits	•	Discussion and exchange of
				opinions
Students and parents	•	High-quality education	•	Student service center and
				hotlines
	•	Safe learning environment	•	Student feedback surveys
	•	Health and safety of students	•	Regular visits
			•	Education exposition
			•	Parent-teacher conferences

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Environmental, Social and Governance Report

	Expectations	Means of communication
Stakeholders	and requirements	and response
Environment	•	Promotion of green teaching	•	Green teaching
	•	Energy saving and emission	•	Environmental inspection
		reduction
	•	Environmental protection
Industry	•	Establishment of industrial	•	Participation in industry
		standards		forums
	•	Enhancement of industrial	•	Visits and mutual inspections
		development
Employees	•	Protection of rights	•	Employee meetings
	•	Occupational health	•	House journal and intranet
	•	Remunerations and benefits	•	Employee mailbox
	•	Career development	•	Training and workshop
	•	Equal employment	•	Employee activities
		opportunity and diversified
		development
Community and the public	•	Improvement in community	•	Company website and
		environment		announcements
	•	Participation in charity	•	Volunteer activities
	•	Transparency	•	Media interviews
			•	Social media platforms

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Environmental, Social and Governance Report

Student-oriented

Adhering to the motto of "Cultivating Service Awareness and Achieving the Unity of Knowledge and Action (服務養成，知行相濟)", the Group is committed to providing industry-leading higher education to students through career-focused teaching strategies and methods. We have continually improved teaching quality through innovation and strived to provide a safe and healthy leaning environment for students, allowing all our students to thrive in Yinxing College.

Provision of Quality Courses and Diversified Activities

The Group strictly complies with the laws and regulations regarding private education, such as the Education Law of the PRC, the Higher Education Law of the PRC, and the Non-state Education Promotion Law of the PRC. As an education service provider, we are dedicated to offering comprehensive and diversified programmes and curriculum to students in order to cultivate talents who are equipped with practical skills applicable to the modern service industry. In order to ensure the quality of courses, we have the Regulation on Course Planning and Course Management in place which sets out the principles of course planning, course objectives, assessment methods, etc. when launching a new course. Also, all new courses are required to pass the review from the Academic Registry to ensure course quality.

Apart from traditional in-class teaching and online education platform, we have established a workplace simulation training platform in each department to simulate the workplace environment and conduct situational teaching. For example, our Hospitality Management Department has established a platform that simulates the operation of a star rated hotel, through which teachers can demonstrate the operational details in a workplace setting. Besides, we cooperate with renowned enterprises to provide our students with extensive practical training to enhance their competitiveness. In addition, students are also provided with overseas exchange opportunities and participated in different competitions to broaden their horizons.

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Environmental, Social and Governance Report

To cultivate students with all-round development and enrich their learning experience, a number of special activities were organised by Yinxing College and over 50 student societies during the Reporting Period, such as Hotel Service Skills Competition, Service Etiquette Competition, Technology and Creativity Festival, Yinxing Marketing & Planning Competition, and Sichuan Resort Hotel Creative Design Symposium and Show.

Teaching Performance Management

The satisfying performance of our teachers is essential for us to deliver high quality education services. In order to regulate and monitor the performance of our teachers, we have established the Basic Guidelines for Teaching Performance pursuant to relevant laws such as the Teachers Law of the PRC to guide their daily teaching activities. Regular performance reviews on our teachers are conducted based on different criteria, such as course design, course contents, teaching skills, interaction with students, and application of new technologies and media, by their supervisors, students and peers so as to ensure that they have followed our guidelines and met our standards. In case of serious teaching issues, we will strictly follow relevant procedures to carry out investigations and formulate resolution plans.

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Environmental, Social and Governance Report

Campus Security and Fire Safety

The Group has always put the health and safety of students in the first place and is committed to providing students with a safe environment to facilitate their studies. We have formulated a series of safety policies in both campus and dormitories, under which our Department of Safety and Security is responsible for maintaining campus security and implementing safety measures. Our security guards stationed in the main entrances will examine and record the entrance and exit of visitors and prohibit unauthorized entry. Also, regular patrols are carried out and 24/7 surveillance cameras are installed in different areas of the campus to prevent crimes or incidents.

In terms of fire safety management, we strictly adhere to the Administrative Measures of Campus Fire Safety, which was prepared in accordance with the Fire Protection Regulation of the PRC and the Provisions on the Administration of Fire Safety at Institutions of Higher Learning. To ensure our fire service installation or equipment are in line with the latest standards, we formulate fire safety work plan and budget plan annually, and organise fire safety meeting and inspections on a regular basis. In the events that any potential hazards are detected, immediate rectification will be carried out. Besides, the code of conduct of student dormitories clearly stipulates that any behaviors which may pose high fire risk, such as the use of high voltage electrical appliances, are strictly forbidden. In addition, we organise drills and provide training on fire safety and natural disasters to students, teachers and other staff regularly to enhance their ability in handling emergency situations.

Catering Service and Food Safety

The Group attaches great importance to food safety during the provision of catering service and strictly complies with relevant laws and regulations such as the Food Safety Law of the PRC and the Measures for Food Safety Management in School Canteens in Sichuan Province. We have formulated the Management System of Food Safety to provide standard operation guidelines for staff working in canteens. In addition to maintaining high cleanliness and hygiene standards of both kitchen and food warehouse, we constantly inspect the food supplies and standardise the storage methods and duration of different types of food. In the event that food poisoning occurs, we will suspend the operation of canteens immediately and report to the authority in a timely manner. Investigation and remedial actions will be taken to prevent recurrence of similar incidents.

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Environmental, Social and Governance Report

Students' Physical and Mental Health

We understand that our students may from time to time be subject to different level of stress due to academic or non-academic factors. Therefore, we pay high attention to the physical and mental well-being of our students. Apart from providing various student activities, sport centres, and leisure space for students to enrich their college lives and release stress, we also set up a medical centre in our college to provide on-campus medical care services, in which routine medical services and emergency treatment are provided. Moreover, medical check-ups are arranged for new students in order to identify the students who may need special care and attention.

To promote the importance of mental health, we have appointed counsellors to serve as a bridge between students and our college. Along with providing support and guidance to students, counsellors also regularly visit the student dormitories and help students with socialising and behavioral issues. Apart from counsellors, teachers are also advised to pay attention to the psychological conditions of students and provide timely support to students in need. Furthermore, psychological courses and psychological support activities are provided to students so as to raise the awareness of mental health. To protect students' privacy, all records of counselling and consultation are kept in strict confidence.

Environmental, Social and Governance Report 2019 China Gingko Education Group Company Limited 9

Environmental, Social and Governance Report

Student Complaint and Satisfaction

In order to improve administration management and enhance education quality, as well as to safeguard student rights, we have formulated the Administrative Measures of Complaints, under which various complaints channels are set up, including telephone, visit, mailbox and school website. All complaints received will be recorded and further investigated in a timely, fair and objective manner. During the Reporting Period, the Group did not receive any complaint regarding our education service.

Employment and Labour Standards

The Group is convinced that teachers are the core driving force for the success of an educational institution. In view of this, we not only safeguard the legal right of our teachers and other staff, but also make best efforts to satisfy their needs and offer a board development platform for every one of them.

Employment Policies

We have compiled our employment policies in accordance with the laws and regulations such as the Labor Law of the PRC, the Labor Contract Law of the PRC, the Teachers Law of the PRC, and the Education Law of the PRC. During the Reporting Period, we were not aware of any non-compliance with relevant laws and regulations in regard to employment matters.

Equal employment opportunities

To expand our education service business and to improve our education quality, we adopt strict standards in recruiting our teachers. Before hiring each teacher, we usually consider his or her prior teaching experience, academic background and qualification as well as his or her performance in the interview and trial classes. Background checks are also conducted during the recruiting process. Apart from the above-mentioned criteria, we undertake to provide equal employment opportunities to candidates and will treat everyone equally irrespective of gender, sexual orientation, age, disability, race, marital status, religion, etc.

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Environmental, Social and Governance Report

Total Workforce by Gender*

		300
	251	38%
	37%			Male
494
426			Female
62%
	63%

2018

2019

Total Workforce by Age*

	130		176
	17%
		111	22%
		154
		16%
		23%
				30 years old or below
					31-40 years old
200	172				41-50 years old
25%				51 years old or above
25%		240
			36%
2018			288
			36%
2019

Environmental, Social and Governance Report 2019 China Gingko Education Group Company Limited 11

Environmental, Social and Governance Report

Total Workforce by Type*

204

26%

321	199			Management and
29%	282
40%
		administrative
		42%

			personnel
			Teachers
	196		Supporting staff
	29%
2018	269
34%
	2019

Total Workforce by Geographical Region*

0

0%

0

0%

The PRC

Hong Kong

677

2018100%

794

2019100%

*  The number of total workforce did not include the number of part-time teachers.

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Environmental, Social and Governance Report

Remuneration and benefits

In a bid to attract and retain talents, we offer competitive remuneration packages to our employees according to external and internal salary benchmark, which typically includes a base salary and a performance-based bonus. The Group values employees' wellbeing by providing a series of benefits and subsidies, such as holiday and birthday gifts, lunch subsidies, transportation service, dormitories, annual medical check-ups and free parking. Employees are also entitled to statutory holiday, paid annual leave, marital leave, maternity leave, paternity leave and compassionate leave. Besides, we have in place a comprehensive insurance policy to provide our staff and teachers with endowment insurance, medical insurance, unemployment insurance, child birth insurance, work-related injury insurance and Chengdu critical illness supplemental insurance, etc.

During the Reporting Period, a variety of activities, such as annual reunion dinner, festival celebration and staff's sports day, were organised for our staff to relax and foster their interactions.

Promotion and dismissal

We believe continuous teacher performance review is important to maintain high quality education service. We therefore have established a rigorous evaluation system, which directly links the overall performance of teachers to their promotion opportunities, professional titles and salary. Apart from teacher performance review, we also take other criteria, such as length of service, academic attainment and management skills into account. Internal promotion of talents with excellent work performance and potential is also preferred over external recruitment. Upon receiving resignation, an exit interview will be arranged to understand the reasons of leaving in an attempt to identify room for improvement.

Environmental, Social and Governance Report 2019 China Gingko Education Group Company Limited 13

Environmental, Social and Governance Report

During the Reporting Period, a total of 47 employees left the Group (turnover rate: 6%). All of them are full-time employees from the PRC. The employee turnover rate of the Group by different categories is as follows:

Turnover Rate*	2019
By Gender
Male	6%
Female	6%
By Age Group
Below 30	1%
31-40	1%
41-50	11%
51 or above	15%
By Geographical Region
The PRC	6%
Hong Kong	0%

*  Turnover rate of part-time teachers is not considered in the calculation.

Labour practices

The Group has strictly observed the Labour Law of the PRC against practices of employing child labour and forced labour. To comply with relevant laws and regulations, our human resources department will verify the identity card of the candidates to ensure they have reached the legal working age. In light of our business nature, we have implemented two working hour systems, under which a standardised 8 hours working time is applied to normal employees, while a flexible working hour system is applied to the teaching staff. Overtime work is not encouraged by the Group unless it is mutually agreed by both the employee and supervisor in order to ward off forced labour.

Health and Safety

We undertake to provide a safe and healthy working environment to our employees and comply with relevant laws and regulations such as the Law of the PRC on the Prevention and Control of Occupational Diseases. In addition to health insurance and annual medical check-ups, we also pay attention to the physical health of our employees by organising different activities. For example, we have organised sports day for teachers and staff and joined joint school networking events.

To reduce safety risks, on the one hand we provide suitable personal protection equipment to the staff working for high risk duties and provide them with guidance and training before performing the duties. On the other hand, we constantly examine potential safety hazards and rectify all problems immediately to protect the safety of our employees. During the Reporting Period, there were no work-related fatalities but 75 lost days due to one case of work injury among our employees.

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Environmental, Social and Governance Report

Development and Training

We believe that maintaining a high-caliber teaching team with extensive experience is able to ensure the quality of our programmes and help us achieve long-term sustainable growth. Hence, we strive to improve our teachers' performance by providing them with extensive opportunities to receive continuing education and trainings.

We encourage our teachers to participate in on-campus and off-campus training programmes. The Academic Center of our college provides on-campus trainings in various ways, including orientations and on-the-job trainings to new teachers and e-Learning resources to existing teachers, and invites renowned guest speakers to share their insights and experiences by holding lectures. On the other hand, teachers are encouraged to participate in off-campus training. For example, new teachers can participate in the Professional Skills Training for Higher Education Institution Teachers held by the Higher Education Institution Teachers Training Center of Sichuan Province. Subsidies are provided to teachers during and after training to encourage continuing education. Moreover, teachers can also enjoy overseas training opportunities from overseas institutions.

Indicator		2019	2018
Percentage of employees trained*	%	%
By gender	Male	31	41
	Female	52	34
By category	Management and administrative personnel	45	59
	Teachers	60	29
	Supporting staff	31	13
Average training hours completed per employee*	hrs	hrs
By gender	Male	3.3	5.8
	Female	11.4	9.0
By category	Management and administrative personnel	9.1	12.9
	Teachers	16.6	7.4
	Supporting staff	0.9	1.0

*  Training of part-time teachers is not included in the calculation.

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Environmental, Social and Governance Report

Operating Practices

During our business development, we not only maintain mutually beneficial relationships with business partners and strive to develop our business in an upright and ethical manner, but also spare no efforts in protecting the rights of our students with a view to charting a course for long-term prosperity.

Supply Chain Management

As an education services provider, we mainly engage suppliers to provide us with office supplies, teaching devices, teaching material, electronic resources, and food. In order to ensure the quality of suppliers and establish a safe and stable supply chain, we have formulated the Supplier Management System to provide guidance in terms of supplier evaluation and approval. Before entering into business relationships, we conduct background checks and quality assessments on the potential suppliers, and make sure they have obtained all required operating permission and licenses. Besides, we also integrate environmental considerations into the supplier selection process that suppliers with proximity to our campus are first considered so that carbon emissions from transportation can be minimised. To ensure the stability of our supply chain, we avoid engaging with suppliers who have high corruption risks.

For all current suppliers, performance evaluation will be conducted regularly in respect of suppliers' services, product quality, pricing, delivery schedule, credibility, etc. Suppliers who failed in the assessment will be disqualified from further cooperation.

Number of Suppliers by Geographical Region

	1	3	1
4	1%	3%
5%			1%	1

1%

		Dongguan
		Shanghai
		Zhengzhou
		Luzhou
79		Chengdu
89%		Beijing

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Environmental, Social and Governance Report

Advertising Management

The Group is committed to carrying out our advertisement in an objective manner and strictly abides by relevant laws and regulations, such as the Education Law of the PRC and the Advertising Law of the PRC. A team has been designated in Yinxing College to be responsible for student recruitment, which promotes our programmes and services among high school students. All advertising materials must be assessed by relevant department to ensure there are no misleading or exaggerated information in order to allow students to make fully informed decision.

Protection of Student Data and Privacy

During our operations, we have to handle an enormous amount of personal data collected from our students, and therefore, we attach great importance to the protection of student privacy pursuant to the Archives Law of the PRC and the Administrative Measures for Archives of Institutions of Higher Education. To achieve this goal, we have set up an Archives Center for collecting, sorting, storing and monitoring the usage of restricted information, including student personal data. All employees are required to protect student information and are forbidden to divulge the information to any third parties during or after their employment.

Protection of Intellectual Property Rights

Due to our business nature, we always emphasise the importance of academic honesty and are committed to protecting the intellectual property rights of Yinxing College and its students in accordance with the Patent Law of the PRC and the Rules for Implementation of the Patent Law of the PRC.

The Group has compiled with the Administrative Measures on Intellectual Property Rights and the Administrative Measures on Intangible Assets, under which our Scientific Research Office is responsible for the application, protection, sponsorship and transfer of intellectual property rights. Terms regarding the duty of confidentiality are clearly stated in our labour contract that all employees are obligated to protect the intellectual properties of Yinxing College, including teaching materials and administrative documents. In addition, all teaching materials and software installed in our computers are required to be purchased from legal sources and should not infringe the intellectual property rights of other parties.

We adopt a policy of "zero tolerance" on academic dishonesty. Plagiarism, tampering, forging, or buying or selling of graduation dissertation or research publication is regarded as a major misconduct and will lead to disciplinary actions including termination of studies.

Environmental, Social and Governance Report 2019 China Gingko Education Group Company Limited 17

Environmental, Social and Governance Report

Anti-corruption

The Group understands that corruption could be a source of risk that weakens a business's stability and hampers its development. Thus, we strictly abide by relevant laws such as the Criminal Law of the PRC and the Anti-Unfair Competition Law of the PRC. The Group has compiled with the Implementation Measures on Corruption Risk Management for detecting, evaluating and mitigating corruption within the Group. A set of internal rules and policies have also been formulated for governing the conduct of our employees. Besides that, a monitoring system is in place to identify misconduct such as (i) acceptance or payment of bribes or rebates, (ii) illegal use, embezzlement or misappropriation of the Group's assets; and (iii) forgery or alteration of our accounting records.

To ward off corruption during the student admission process, all involved employees are required to uphold the principle of integrity and all corruptive behaviors are strictly prohibited. To preclude conflict of interest, an avoidance system has been set up, under which employees whose immediate family members applying for admission are banned from participating in the admission process.

In an effort to enhance employees' knowledge and raise their awareness of anti-corruption regulations and relevant professional conduct, the Group offers training courses, which are mandatory to attend, to our existing and new employees. During the Reporting Period, the Group was not aware of any breach of laws and regulations that had a significant impact on the Group in relation to bribery, extortion, fraud and money laundering.

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Environmental, Social and Governance Report

Environmental Management

Despite the fact that our business operations do not pose significant impacts to the environment, we still shoulder the responsibility to improve our performance in terms of energy conservation and emission reduction. We have strictly complied with all environment-related laws and regulations, such as the Environmental Protection Law of the PRC, the Law of the PRC on the Prevention and Control of Environmental Pollution by Solid Wastes, and the Energy Conservation Law of the PRC. We will continue to push forward green initiatives and promote the awareness of environmental protection among teachers and students so as to build a green and environmentally-friendly campus.

Emission Management

During our operations, the sources of greenhouse gas (GHG) emissions include direct emissions (scope 1) from fuel consumption in school canteen and vehicle use, and GHG removals from newly planted trees; energy indirect emissions (scope 2) from purchased electricity; and other indirect emissions (scope 3) from fresh water and wastewater treatment, and disposal of waste paper at landfills. Vehicles, such as passenger cars and school buses, consuming gasoline and diesel also produce pollutants, which include nitrous oxides, sulphur oxides, and particulate matter.

Indicators		2019	2018
GHG Emissions
Total emission (tCO2e)	3,671	3,256
Scope 1	- Direct emissions (tCO2e)	752	678
Scope 2	- Energy indirect emissions (tCO2e)	2,794	2,460
Scope 3	- Other indirect emissions (tCO2e)	125	118
Emission per number of employees and students (tCO2e)	0.31	0.30
Pollutants
Nitrogen oxides (kg)	89.14	106.08
Sulphur oxides (kg)	0.50	0.39
Particulate matter (kg)	5.82	5.55

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Environmental, Social and Governance Report

In the face of climate change, the Group is mindful of its obligation to reduce emission during its operation. In light of this, we have compiled the Administrative Measures of Company Vehicles to prevent the abuse of company vehicles and hence overuse of energy. In general, we encourage our staff to take public transportation and adopt carpooling for commuting. When organising events, locations that can be easily accessed by public transportation are preferred. We also promote the use of telephones and video calls to substitute unnecessary overseas business or academic trips. Besides, we put a great effort into tree planting in campus which not only helps to build an aesthetically pleasing environment, but also reduce the emission of GHG.

During the Reporting Period, the Group was not involved in any case of non-compliance with relevant laws and regulations that have a significant impact on the Group relating to emissions.

Waste Management

The Group strives to properly manage and dispose of wastes produced by our business activities, which can be classified into non-hazardous waste and hazardous waste. The non-hazardous waste mainly consists of daily garbage, waste paper, yard waste as well as food waste, waste cooking oil and residue from grease traps in school canteen. We have engaged a qualified professional agency to collect, transport and properly dispose of all canteen wastes. In terms of hazardous waste, it consists of general office supplies, such as light bulbs, light tubes and medical waste, which are collected by qualified collectors to avoid polluting the environment.

Indicators	2019	2018
Total non-hazardous waste (tons)	2,741	1,491
Non-hazardous waste per number of employees and students (kg)	233.06	136.67
Total hazardous waste (kg)	312	239
Hazardous waste per number of employees and students (g)	26.49	21.89

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In order to properly handle the waste generated, we have formulated the Administrative Measures for Waste Separation, which provide a clear guidance in sorting daily garbage, recyclable waste, hazardous waste, and food waste, along with their corresponding handling methods to avoid land contamination. We have adopted a pragmatic approach to reduce waste at source in office by encouraging our employees to use reusable products instead of disposable and non-recyclable products. For example, we encourage employees to reuse office supplies like envelopes, files and other stationery, and procure reusable toner cartridges. For paper consumption, in addition to paper recycling and reminding employees to print on both sides of paper, we disseminate information by electronic means wherever possible to reduce paper use. Also, regular evaluations on the usage of materials are conducted to avoid overstock and wastage.

Resources Conservation

Energy and water are the major resources consumed during our operations. Energy consumption can be divided into direct energy consumption, which includes fuel consumption in school canteen and the use of vehicles, and indirect energy consumption, which is primarily the consumption of purchased electricity.

Indicators	2019	2018
Total energy consumption (MWh)	8,790	8,009
Direct energy consumption (MWh)	3,475	3,330
Indirect energy consumption (MWh)	5,315	4,679
Energy consumption per number of employees and students (MWh)	0.75	0.73
Total water consumption (m3)	176,149	205,550
Water consumption per number of employees and students (m3)	14.98	18.84

Since students and teaching activities are the major sources of resources consumption, the Group has pushed forward energy-saving and water-saving measures in office, classrooms and student dormitories through various means. For example, we have installed energy-efficient lighting and independent light switches for different light zones. For electrical appliances, we set computer to standby mode when they are not in use and make sure all unnecessary electrical appliances are turned off during non-business hours. We also set the temperature of air conditioners to be no less than 25.5 degree Celsius and it is regularly cleaned to maintain its efficiency. In order to improve energy efficiency, we compile monthly electricity statistics to monitor power consumption and make appropriate improvements accordingly.

In terms of water saving, we have posed water-saving reminder labels in toilets and carried out regular inspection to check for water leakage. Dripping taps will also be fixed immediately. In student dormitories, we set monthly water consumption quota for students in a bid to prevent water wastage. During the Reporting Period, the Group did not face any issue in sourcing water.

Since we are not involved in any production procedures, no significant amount of packaging materials were used during the Reporting Period.

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Environmental, Social and Governance Report

Community Investment

Upholding our fundamental educational philosophy of "Bringing Excellence to Students and Serving Society (成就學生，服務社會)", the Group has always placed emphasis on the all-round development of its students and advocate social and community contribution as part of the education. During the Reporting Period, our teachers and students have participated in various volunteering activities and assisted in social development in underdeveloped regions in order to help the people in need and build a better community.

Poverty Alleviation

To better address the problem of poverty in some rural areas of the PRC, the Group has set up a task force for poverty alleviation, which holds meetings and visits poverty-stricken regions on a regular basis. During the Reporting Period, the task force has mainly focused on the execution of anti-poverty initiatives in Mabian Yi Autonomous County ("Mabian Yi") in Sichuan Province and exerted itself to provide supports and improve the living conditions of the locals. This is the second year of the Group in supporting the Mabian Yi Community. Leveraging our capability in hospitality and tourism industry, we not only provided material or financial aids to the underprivileged people in Mabian Yi, but also actively assisted them to develop Mabian Yi into a tourist spot in a bid to sustain a long-term prosperity in those regions.

Visited underprivileged families to carry out agricultural product research and formulate product promotion proposals so as to make improvement in future work.

Provided a series of lectures, such as etiquette training, anti-fraud, environmental protection to the people living in Mabian Yi in order to enhance their social well-being.

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Provided daily necessities and goods such as rain boots, blanket, food, stationary, clothing, toys etc. to the people in need.

Launched a 3-day programme, "San Xia Xiang (三下鄉)", to spread knowledge in science, culture and hygiene and raise literacy levels of the people living in rural areas.

Volunteering Activities

Yinxing College has established the Youth Volunteering Association, which organises and offers different voluntary services in areas such as poverty alleviation, environmental protection, technology promotion, healthcare, and assistance to the disabled. During the Reporting Period, it has cooperated with different societies and organised a diversity of volunteering activities, which have accumulated more than 6,000 beneficiaries and contributed approximately RMB149,933 in total.

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Environmental, Social and Governance Report

Caring for the Elderly

Respecting and caring for the elderly is one of the traditional virtues of Chinese society. The Group understands that the elderly living alone or living in elderly home may from time to time face the problems of loneliness and suffer from different health problems. Therefore, during the Reporting Period, we have actively organised various visits to the elderly. During the visitation, we entertained the elderly by dance and music performance specially prepared for them. Moreover, our students have spent time to accompany the elderly people and assisted them to clean the public area in the elderly centre. Through the visitation, our students not only brought the elderly love and care, but also created a harmonious atmosphere and built up a sense of responsibility to take care of elderly people.

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Supporting Child Care and Education

As an education provider, we understand the importance of the accessibility to quality education. In addition to acquiring knowledge, we also encourage our students to share their knowledge, especially to children who cannot receive quality education or afford quality learning materials. During the Report Period, our students have provided free tutoring to primary school students on a regular basis to improve their learning outcomes, which has not only helped to create a better future for the children, but also established close relationships between our tutors and children.

Besides, we also care about the children having special educational needs and strive to arouse the attention of the public to provide more assistance to them. During the Report Period, we have organised volunteer service to special schools and carried out different activities such as painting and writing, after which our students have better understood the difficulties faced by the children with special educational needs currently. We hope to achieve the ultimate goal of building an inclusive society within which all individuals can enjoy equality and respect in different areas of life.

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Environmental, Social and Governance Report

Promoting Healthy Lifestyle

To raise the public's interest in living a healthy lifestyle and improve the public's quality of life and health condition, we have organised various activities in the communities to promote the prevention of drug abuse and AIDS and healthy lifestyle during the Reporting Period. For example, our students have organised promotional events both within and outside the campus and delivered promotional pamphlet to educate the public. The activity has accumulated a significant amount of participants, allowing more people to realise the detrimental effects of drug abuse and the related policies, laws and regulations concerning drugs abuse and created an anti-drug atmosphere in campus.

On the other hand, we also organised exhibitions and lectures in different communities on health-related topics, such as knowledge on social security system, how to avoid influenza, and anti-AIDS and drugs. We believe that the activities enable the locals to adopt a healthier and drug-free lifestyle and improve their health-related knowledge in order to achieve a better physical, social and mental well-being.

Scholarship

The Group understands that students from low-income families may face difficulties in affording the tuition fee. As higher education is considered as a ticket out of poverty, we believe that grants and scholarships open doors for students from low-income families and make education accessible and affordable. Hence, we are committed to providing financial aid for the students in need. A scholarship committee, comprising of a wide range of representatives, has been established for the approval of scholarship based on the principle of openness, impartiality and fairness. Upon approval of the scholarship, a financial assistance will be provided in accordance with the students' performance in school and the financial conditions of their families so as to sustain their basic living needs and relieve their burden during studying, while at the same time stimulating students to take initiative in learning.

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Awards and Recognition

During the Reporting Period, our high-quality education service and continuing supports and contributions in social and environmental aspects have gained us both awards and recognition from different governmental organizations and enterprises.

Category	Awarding Organization	Award
Education Service	Chengdu Convention & Exhibition	2019 Most Popular Institution
	Service Association 「( 成都市會議	「( 2019年度最受歡迎院校」)
	及展覽服務行業協會」)
	Chengdu Tourism and Tourist	Vice President Unit 「( 副會長單位」)
	Guide Association Study Travel
	Committee
	「( 成都旅遊導遊協會研學專委會」)

China Association for Student Employment

「( 高校畢業生就業協會」)

The China Association for Non- Government Education, Sichuan Branch 「( 四川省民辦教育協會」)

Outstanding Unit of the 8th National Professional Core Proficiency 「( 第 八屆全國職業核心能力優秀單位」)

Outstanding Teaching and Research Team of Sichuan Non-GovernmentUniversity (Hotel Management Professional Teaching and Research Team) 「( 四川省民辦高校 優秀教學科研團隊（酒店管理專業教 學科研團隊）」)

Outstanding Teaching and Research Team of Sichuan Non-GovernmentUniversity (Tourism Management Professional Teaching and Research Team) 「( 四川省民辦高校 優秀教學科研團隊（旅遊管理專業教 學科研團隊）」)

Extraordinary Profession of Non-

Government College in Sichuan

(English Language Profession)

「( 四川省民辦高校特色專業（英語專 業）」)

Extraordinary Profession of Non-

Government College in Sichuan

(Sports and Leisure Profession)

「( 四川省民辦高校特色專業（休閒體 育專業）」)

Environmental, Social and Governance Report 2019 China Gingko Education Group Company Limited 27

Environmental, Social and Governance Report

Category	Awarding Organization	Award

Department of Human Resources and Social Security of Sichuan Province 「( 四川省人力資源和社會保障廳」) & Department of Finance of Sichuan Province 「( 四川省財政廳」) &The Education Department of Sichuan Province 「( 四川省教育廳」) & Sichuan Committee of the Chinese Communist Youth League 「( 共青團 四川省委員會」)

Sichuan Employment Service Administration 「( 四川省就業服務 管理局」) & Sichuan University Student Innovation and Entrepreneurship Activity Center 「( 四川省大學生創新創業活動中心」)

Sichuan Employment Training Center 「( 四川省就業訓練中 心」) & the Sichuan Provincial Entrepreneurship Service Guidance Center 「( 四川省創業服務 指導中心」)

Provincial University Student Innovation and Entrepreneurship Park (Incubation base) 「( 省級大學 生創新創業園區（孵化基地)」)

Entrepreneurship Incubation Center

「( 創業飛地服務站」)

Sichuan University Student

Innovation and Entrepreneurship

"Seed Project" Cultivation Base

「( 四川省大學生創新創業《種子計畫》 培養基地」)

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Category	Awarding Organization	Award

The Sichuan Cultural Industry Chamber of Commerce 「( 四川省文 化產業商會」)

BTG HOMEINNS Hotels (Group) Co.,

Ltd. 「( 首旅如家酒店集團」)

InterContinental Hotels Group plc 「( 洲際酒店集團」)

The Alliance of Asia-PacificIndependent Hotels Expert Review Committee 「( 亞太單體酒店聯盟專家

評審委員會」)

Organising Committee of the China Convention and Exhibition and Technology Forum 「( 中國會展教育

Member Unit of the Sichuan Cultural Industry Chamber of Commerce 「( 四川省文化產業商會會員單位」)

2019 Best Partner Institution

「( 2019年度最佳合作院校」)

Best School-Enterprise Cooperation and Loyalty Award

「( 最佳校企合作忠誠獎」)

Asia Pacific (China) Best Industry Talent Training Contribution Award 「( 亞太（中國）最佳行業人才培養貢獻

獎」)

The Outstanding School Award of China Exhibition and Information Education 「( 中國會展資訊化教育優

與科技發展論壇組委會」)秀院校獎」)

Academic	Talent Exchange Center of the
	Ministry of Industry and Information
	Technology 「( 工業和資訊化部人才
	交流中心」) & Seentao Technology
	Co.,Ltd. 「( 新道科技股份有限公司」)
	China Chamber of International
	Commerce Commercial Chamber
	of Commerce 「( 中國國際商會商業
	行業商會」) & The China Council
	for the Promotion of International
	Trade Commercial Sub-Council
	「( 中國國際貿易促進委員會商業行
	業委員會」) & China Convention
	Exhibition Event Society
	「( 中國會展經濟研究會」)

1st Runner-upof Sichuan Finals in the 13th "Xindao Cup" National College Students Accounting Information Skills Competition 「( 第 十三屆《新道杯》全國大學生會計資訊 化技能大賽四川省總決賽二等獎」)

Champion of Business Meeting and Tourism Planning Competition, the 2019 National College Business Elite Challenge 「( 2019年全國高校 商業精英挑戰賽商務會議旅遊策劃競 賽一等獎」)

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Environmental, Social and Governance Report

Category	Awarding Organization	Award
	The Education Department of	Champion of Group of 2019 Sichuan
	Sichuan Province 「( 四川省教育廳」)	Provincial College Physical
		Education Profession, Youth
		Teacher Class Demonstration
		Competition 「( 2019年四川省普通高
		等院校體育專業青年教師說課比賽團
		體一等獎」)
Cultural Development	Chengdu Executive Committee of	Awarded the Certification flag of
	China Netcasting Conference	"Promote the spirit of volunteer
	「( 中國網路視聽大會成都執委會」)	service, Showcase Gingko
		education philosophy"
		「( 獲得「弘揚志願服務精神，展現
		銀杏教育風範」之錦旗」)

Committee of Hongguang Zhen, the Chinese Communist Youth League of Chengdu Pidu District 「( 共青團 成都市郫都區紅光鎮委員會」)

The 18th World Police & Fire Games Organizing Committee Office

「( 第十八屆世界員警和消防員運動會 組織委員辦公室」)

Chengdu Pidu District Civilisation Construction Committee 「( 成都市 郫都區精神文明建設委員會」)

Outstanding Volunteer Service

Organisation of the 2019 Youth

Day of Hongguang Zhen

「( 《2019年紅光鎮五四青年節》優秀 青年志願服務組織」)

Chengdu • 2019 World Police & Fire Games Certificate of Volunteer Organizing Work 「( 中國‧成都2019 第十八屆世界員警和消防員運動會志 願者服務組織工作證書」)

Outstanding Team of Pidu District Volunteer Service of "Universities + Branches + Farmers" 「( 郫都區《高 校+支部+農戶》志願服務 - 結對共 建 優秀團隊」)

Office of the Headquarters of the Pidu District of Chengdu Municipality for the Prevention and Control of Major Human Diseases 「( 成都市郫都區防治人類重大疾病工

作指揮部辦公室」)

2nd Runner-upof the 6th College Students Health Knowledge Contest in Pidu District 「( 成都市郫 都區第六屆大學生健康知識競賽三等 獎」)

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Appendix: The Stock Exchange Environmental, Social and Governance Reporting Guide Content Index

ESG Aspect	General Disclosure and Key Performance Indicator ("KPI")	Reporting Chapter
A. Environment
A1: Emissions	General Disclosure	Emission Management;
			Waste Management
	KPI A1.1	The types of emissions and respective	Emission Management
		emissions data.
	KPI A1.2	Greenhouse gas emissions in total and, where	Emission Management
		appropriate, intensity.
	KPI A1.3	Total hazardous waste produced and intensity.	Waste Management
	KPI A1.4	Total non-hazardous waste produced and	Waste Management
		intensity.
	KPI A1.5	Description of measures to mitigate emissions	Emission Management;
		and results achieved.	Resources
			Conservation
	KPI A1.6	Description of how hazardous and non-	Waste Management
		hazardous wastes are handled, reduction
		initiatives and results achieved.
A2: Use of	General Disclosure	Resources
Resources			Conservation
	KPI A2.1	Direct and/or indirect energy consumption by	Resources
		type in total and intensity.	Conservation
	KPI A2.2	Water consumption in total and intensity.	Resources
			Conservation
	KPI A2.3	Description of energy use efficiency initiatives	Resources
		and results achieved.	Conservation
	KPI A2.4	Description of whether there is any issue in	Resources
		sourcing water that is fit for purpose, water	Conservation
		efficiency initiatives and results achieved.
	KPI A2.5	Total packaging material used for finished	Resources
		products and with reference to per unit	Conservation
		produced.
A3: The	General Disclosure	Emission Management;
Environment			Waste Management;
and Natural			Resources
Resources			Conservation
	KPI A3.1	Description of the significant impacts of	Emission Management;
		activities on the environment and natural	Waste Management;
		resources and the actions taken to manage	Resources
		them.	Conservation

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Environmental, Social and Governance Report

ESG Aspect		General Disclosure and Key Performance Indicator ("KPI")	Reporting Chapter
B. Social
Employment and Labour Practices
B1: Employment		General Disclosure	Employment Policies
		KPI B1.1	Total workforce by gender, employment type,	Employment Policies
			age group and geographical region.
		KPI B1.2	Employee turnover rate by gender, age group	No relevant disclosure
			and geographical region.
B2: Health and		General Disclosure	Health and Safety
Safety
	KPI B2.1	Number and rate of work-related fatalities.	Health and Safety
		KPI B2.2	Lost days due to work injury.	Health and Safety
		KPI B2.3	Description of occupational health and safety	Health and Safety
			measures adopted, how they are implemented
			and monitored.
B3: Development		General Disclosure	Development and
and Training				Training
		KPI B3.1	The percentage of employees trained by gender	Development and
			and employee category.	Training
		KPI B3.2	The average training hours completed per	Development and
			employee by gender and employee category.	Training
B4: Labour		General Disclosure	Employment Policies
Standards
	KPI B4.1	Description of measures to review employment	Employment Policies
			practices to avoid child and forced labour.
		KPI B4.2	Description of steps taken to eliminate such	No relevant disclosure
			practices when discovered.
Operating Practices
B5: Supply Chain		General Disclosure	Supply Chain
Management				Management
		KPI B5.1	Number of suppliers by geographical region.	Supply Chain
				Management
		KPI B5.2	Description of practices relating to engaging	Supply Chain
			suppliers, number of suppliers where the	Management
			practices are being implemented, how they are
			implemented and monitored.

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ESG Aspect	General Disclosure and Key Performance Indicator ("KPI")	Reporting Chapter
B6: Product	General Disclosure	Advertising
Responsibility			Management; Campus
			Security and Fire
			Safety; Catering
			Service and Food
			Safety; Students'
			Physical and Mental
			Health
	KPI B6.1	Percentage of total products sold or shipped	Not Applicable
		subject to recalls for safety and health reasons.
	KPI B6.2	Number of products and service related	Student Complaint and
		complaints received and how they are dealt	Satisfaction
		with.
	KPI B6.3	Description of practices relating to observing	Protection of
		and protecting intellectual property rights.	Intellectual Property
			Rights
	KPI B6.4	Description of quality assurance process and	Provision of quality
		recall procedures.	courses and
			diversified activities;
			Teaching Performance
			Management
	KPI B6.5	Description of consumer data protection and	Protection of Student
		privacy policies, how they are implemented and	Data and Privacy
		monitored.
B7: Anti-corruption	General Disclosure	Anti-corruption
	KPI B7.1	Number of concluded legal cases regarding	Anti-corruption
		corrupt practices brought against the issuer or
		its employees during the reporting period and
		the outcomes of the cases.
	KPI B7.2	Description of preventive measures and whistle-	Anti-corruption
		blowing procedures, how they are implemented
		and monitored.
Community
B8: Community	General Disclosure	Poverty Alleviation;
Investment			Volunteering Activities;
			Scholarship
	KPI B8.1	Focus areas of contribution.	Poverty Alleviation;
			Volunteering Activities;
			Scholarship
	KPI B8.2	Resources contributed to the focus area.	Volunteering Activities

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