Tian Ge Interactive : Environmental, Social and Governance Report 2020

Environmental, Social and

Governance Report

2020

Table of Contents

1. ABOUT THIS REPORT
2. ABOUT TIAN GE
3. OUR APPROACH TO SUSTAINABILITY

1. MAKING OUR CUSTOMERS SMILE

1. MAKING OUR EMPLOYEES SMILE

1. MAKING OUR EARTH SMILE

1. MAKING OUR COMMUNITY SMILE
2. HKEX ESG REPORTING GUIDE CONTENT INDEX

02

Tian Ge Interactive Holdings Limited

Environmental, Social and Governance Report 2020

ABOUT THIS REPORT

We are pleased to present our fifth Environmental, Social and Governance ("ESG") Report (the "Report"), which has been prepared in accordance with the applicable disclosure requirements of the ESG Reporting Guide in Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong (the "Listing Rules") (the "HKEX ESG Reporting Guide").

The Report aims to provide stakeholders with complete, clear and candid information of our major ESG policies, sustainability performance and overview of the processes by which we create environmental and social value. To enhance the comparability and usability of the Report, we include information on past years, when relevant. Unless otherwise stated, the Report covers the work results of our core businesses in live streaming and Wuta Camera Application in our (i) Hangzhou Office, (ii) Jinhua Office, (iii) Beijing Office and (iv) Shanghai Office in PRC for the period from January 1, 2020 to December 31, 2020 (the "Reporting Period").

Environmental, Social and Governance Report 2020

Tian Ge Interactive Holdings Limited

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ABOUT TIAN GE

Tian Ge Interactive Holdings Limited (the "Company" or "Tian Ge", together with its subsidiaries referred to as the "Group" or "We") is a premier live streaming platform operator in China founded in 2008 and is based in Hangzhou.

Tian Ge's mission of bringing optimism and joy to the masses through social video interaction, drives our flagship social interactive entertainment platforms including 9158 Live Streaming, Sina Show, Miao Broadcasting (喵播), Happy Live Broadcasting (歡樂直播) and Feng Broadcasting (瘋播) to offer users to establish "many-to-many" and "one-to-many" social communities for both mobile and PC users. In the last decade, innovation is the critical enabler for Tian Ge to constantly foster the growth of "Mobile + PC" dual live-streaming platform. Leveraging on our leading industrial position, our live streaming mobile application Miao Broadcasting (喵播) has also entered overseas markets including Thailand and Taiwan.

Vision:

Tian Ge is here to make the world smile every day.

Mission:

Our mission is to bring optimism and joy to the masses by building technologies and platforms that enable live social video interaction.

• Showcasing the power of youth through every video window.
• Breaking geographic boundaries and sharing the world's sparkle and vitality through the global network.
• Establishing harmonious online ecosystems with an ever-changing horizon.
• Meeting and exceeding each and every customer's needs.
• Maintaining a consistent focus on corporate responsibility by introducing programs and activities that create a better and healthier society.

Core Values:

• Integrity and Honesty
• Optimism and Dedication
• Open Communication and Innovation

CONTACT US

We welcome comments and feedback on the Report, our sustainability approach and strategy. Your opinions can help define and strengthen the Group's future sustainability strategy. Please send your feedback to us at [e-mail].

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Tian Ge Interactive Holdings Limited

Environmental, Social and Governance Report 2020

OUR APPROACH TO SUSTAINABILITY

We passionately embrace our vision "to make the world smile every day" into sustainability and have long focused on creating long-term value to our employers, suppliers, customers, shareholders and the communities. Our sustainability approach aims to integrate ESG considerations and social responsibility into our businesses and operations, while supporting the Group in delivering excellent services to its clients, maintaining superior financial performance, and sustaining a strong portfolio of trusted, quality live streaming platforms in China.

• Social investment - We lead employees to actively care for people, leverage its expertise in Internet and extensive influence of the online platforms to organize charity activities and encourage employee participation in community services.
• Waste reduction - We promote waste minimization and diversion, apply 4R-principle, avoid unnecessary consumption at workplace and revise hygiene management strategy in response to national requirement in timely manner.
• Energy and water stewardship - We encourage employees to conserve water and energy resources whenever possible. All office areas will continue to target water saving measures to the greatest extent possible through application of modern technologies such as dripping irrigation and sprinkler controller. Employees are also required to power down idle machines and equipment and adopt green transport if possible.
• Integrity - Each employee is under the obligation to refrain from unethical behaviour that could signal a conflict of interest such as money laundering, bribery, extortion and fraud.
• Staff development - Employees are expected to undertake staff development and training. Human resource department is responsible for providing every employee with development opportunities such as orientation training, pre-employment training and on-the-job training. Supervisors are responsible for communicating with employee directly to ensure staff development requirements meet work-related needs.
• Staff welfare - We are fully committed to creating a harmonious environment which is conducive to the welfare and remuneration of all employees, and which enables them to develop to their full potential.
• Team innovation - We encourage staff to provide feedback, ideas, creativity and innovation from all perspectives to foster sustainable business growth and development of society.

SUSTAINABILITY GOVERNANCE

The changing sustainability landscape, consumer behaviour and market trend create new risks and opportunities to software and service companies. Our ESG-related risks and opportunity are integrated, evaluated and analysed by the top management of the Group through monthly management meeting. The analysis and response from the Group are delivered to the board (the "Board") of director (the "Director(s)") of the Company every 6 months for reviewing and approval. In response to the ever-changing market in the industry, the Board keeps reviewing the business strategy and sustainability policies in order to make appropriate actions to comply with the latest laws, regulations and industry standards.

More details in relation to our corporate governance is available in our "Corporate Governance Report" session of the annual report.

Environmental, Social and Governance Report 2020

Tian Ge Interactive Holdings Limited

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OUR APPROACH TO SUSTAINABILITY

APPROACH TO STAKEHOLDER ENGAGEMENT

We regularly meet with our key stakeholder groups, including shareholders, investors, employees, the government, business partners, end-users, community members, suppliers, peer companies as well as media partner and social media to engage them in open and honest dialogues and assimilate feedback into business planning and corporate strategic decisions. We are dedicated to understanding their views and acknowledging their concerns so that we can improve our business resilience and stay relevant.

Stakeholder Groups	Ways We Engage
Shareholders & Investors	•	General Meeting	•	Company Website
	•	Investor Meeting	•	Announcement
	•	Press Release	•	Social Media
	•	Telephone interview
Employees	•	Staff mailbox	•	Intranet interview
	•	Instant Messenger	•	Training Meeting
Government	•	Consultation	•	Conference
	•	Interview	•	Site Visit
Business Partners	•	Training	•	Cooperation meeting
(including distributors, sales agents, hosts	•	Site visit	•	Consultation
and room managers)	•	Instant Messenger	•	Interview
Media Partner & Social Media	•	Conference	•	Cooperation meeting
	•	Interview	•	Consultation
	•	Instant Messenger	•	Company Website
Peer Companies	•	Professional consultation	•	Company Website
	•	Research report	•	Meeting
	•	Training	•	Interview
	•	Intranet interview	•	Announcement
	•	Instant Messenger	•	Industry Sharing
End-Users	•	Visit and offline events	•	Meeting
	•	Intranet	•	Social media official accounts
	•	Interview
Suppliers	•	Site visit	•	Instant Messenger
	•	Interview	•	Cooperation Meeting
Community	•	Visit and offline events	•	Press release
	•	Social activity	•	Company website
	•	Social media official account	•	Consultation
	•	Campus recruitment	•	Meeting
			•	Interview

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Tian Ge Interactive Holdings Limited

Environmental, Social and Governance Report 2020

OUR APPROACH TO SUSTAINABILITY

Materiality assessment

Focusing on the top-priority ESG issues for the Group and our stakeholders is the fundamental step in how we conduct business and evolve our corporate strategy.

In 2020, a stakeholder engagement survey was conducted by our independent third-party sustainability consultant to obtain the order of priority of the material topics identified. Their opinions and concerns will also help us to review and shape our sustainability strategy and pinpoint emerging sustainability issues in the most appropriate areas.

Our materiality assessment has three major steps: issue identification, issue prioritisation and materiality analysis and reporting.

01 02 03

Issue Identification	Issue Prioritisation	Materiality Analysis
Identify a list of 29 relevant	Invite stakeholders and	& Reporting
material topics.	management to assess and	Aggregate scores assigned
	rate the importance of each
	to each issue and develop
	issue to the business and
	a materiality matrix.
	stakeholders.

Environmental, Social and Governance Report 2020

Tian Ge Interactive Holdings Limited

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OUR APPROACH TO SUSTAINABILITY

Materiality matrix

We mapped the results of our materiality analysis onto a matrix to reflect the relative importance and impact of the 29 issues to our stakeholders and the Group.

Materiality Matrix

PORTANCE TO STAKEHOLDERS High

													21
															4
							19
				3	23
				26
																2
				27									2
				20						2
				25
												24
	13		16	18
14	9
	29	1	17									6
	15

IM

5

117

10

28

	12		8
	Low
	Low		IMPORTANCE TO BUSINESS		High
1	Diversication and Anti-discriminatory	13	Supplier Evaluation and Management	28	Participation in Volunteer Activities
	(Age, Gender, Disability, etc.)	14	Supplier Environmental and Social Assessment	29	Donations
2	Employment Relationship/Communication	15	Anti-Fraud and Corruption Policy
3	Occupational Safety and Health	16	Anti-Money Laundering
4	Training and Development	17	Business Continuity Plan
5	Child and Forced labour	18	Game Development Ability
6	Employee Welfare	19	Platform Stability (Livestreaming and Game Server)
7	Greenhouse Gas Emissions	20	Legal Compliance
8	Air Emissions	21	Cyber Security
9	Energy and Water Conservation	22	Selection of Business Partners
10	Natural Resources	23	Customer Privacy
11	Waste Treatment	24	Game and Livestreaming Platform Health and Safety
12	Policy for Tackling Climate Change	25	Complaints Handling
		26	Customer Satisfaction
		27	Intellectual Property

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Tian Ge Interactive Holdings Limited

Environmental, Social and Governance Report 2020

OUR APPROACH TO SUSTAINABILITY

Material topics

By the end of the process, a total of 12 material topics were recognised and tabulated:

	Material Topics	Report section
	Labour Practices
2	Employment Relationship/Communication	Making our employees smile
3	Occupational Safety and Health	Occupational health and safety
4	Training and Development	Development and training
	Operating Practices
19	Platform Stability (Live-streaming and Game Server)	Information security and customer privacy protection
20	Legal Compliance	Making our customers smile
21	Cyber Security	Information security and customer privacy protection
22	Selection of Business Partners	Supply chain management
23	Customer Privacy	Information security and customer privacy protection
24	Game and Live-streaming Platform Health and Safety	Healthy live-streaming
25	Complaints Handling	Customer service
26	Customer Satisfaction	Customer service
27	Intellectual Property	Intellectual property protection

Environmental, Social and Governance Report 2020

Tian Ge Interactive Holdings Limited

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OUR APPROACH TO SUSTAINABILITY

Responding to our stakeholders

Their feedback and our corresponding responses are summarized as follows:

STAKEHOLDERS' OPINIONS

OUR RESPONSES

Stakeholders expect Tian Ge to participate in more community services to demonstrate its commitment to corporate social responsibility.

The Group donated personal protective equipment to over fifteen organizations during the pandemic outbreak.

Stakeholders look for the information about the Group's effort on combating the Novel

Coronavirus ("COVID-19").

The Group keeps monitoring developments of pandemic and has implemented various precautionary measures.

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Tian Ge Interactive Holdings Limited

Environmental, Social and Governance Report 2020

MAKING OUR CUSTOMERS SMILE

INFORMATION SECURITY AND CUSTOMER PRIVACY PROTECTION

The global pandemic in 2020 accelerates digital transformation. The widespread reliance on digital medium for modern life draws extra attention on cybersecurity. The Group values the privacy of our customers and users and steps up our security measures wherever possible to protect our customers' personal information and our system from loss, unauthorised access or modification and response to consumers' concerns about the security of their personal information.

With "Regulations of the PRC on the Protecting the Safety of Computer Information Systems"《( 中華人民共和國計算機信息系 統安全保護條例》), "Provisions on Technological Measures for Internet Security Protection"《( 互聯網安全保護技術措施規定》), "Regulation on Internet Information Service of the PRC"《( 互聯網信息服務管理辦法》) and "Measures for the Administration of Communication Network Security Protection"《( 通信網絡安全防護管理辦法》) as the governing principles, the Group established "Information Security Management Strategy"《( 天格科技信息安全事件管理策略》) "Information Security Management System Policy"《( 天格科技信息安全管理制度》) and "Information Security Management Approach"《( 天格科技信息安全管理方針》).

Our "Information Security Management Strategy"《( 天格科技信息安全事件管理策略》) concentrates on categorizing different information security issues with reference to their level of severity and setting out a comprehensive workflow and mitigation measures for handling these issues. Concerning international standard ISO/IEC 27001:2005, "Information Security Management System Policy"《( 天格科技信息安全管理制度》) lays out fundamental principles to frame our corporate behaviours and practices to flexibly respond to emerging issues or problems including the careful handling and usage of customers' personal information, safety precaution for internet access and using email. Our emergency response arrangements in response to information security are revised periodically to keep up with changes to the evolving security threats, vulnerabilities and business impacts. The system factors in the latest measures and working procedures to deal with incidents that threaten information security, such as being hacked and leakage of sensitive business information and personal data.

"Information Security Management Approach"《( 天格科技信息安全管理方針》) explicitly illustrates the management target and approach to ensure that information security management at all business sites is operating at the highest level and on the right track. As we are often entrusted with information of clients, protecting confidential information is in a high priority. Only permitted staff is eligible for accessing to customers' personal data.

The Group is dedicated to protecting against digital risks, and the security of our customers' data. We adopt comprehensive security controls as well as network and information security management policy, including information system failure contingency plan 《( 信息系統服務 器故障應急處理預案》), information security management protocol 《( 信息安全管理協會》), network security management policy,《( 網絡設備安全管理規定》), network security standard 《( 網絡設備安全配置規範》). These guidelines and policies provide the measures used to establish and enforce our security program for the purpose of ensuring the confidentiality, integrity as well as data privacy.

Environmental, Social and Governance Report 2020

Tian Ge Interactive Holdings Limited

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MAKING OUR CUSTOMERS SMILE

We always endeavour to empower users to fully exercise their right online. When users visit our application(s), they will see a pop-up dialogue showing our privacy policy and users' agreement and seeking users' consent to collect their personal information.

All employees are required to sign a confidentiality agreement upon or within one month from commencement of work. No confidential information including customers' information and personal data shall be disclosed to any third party without users' consent under general circumstances. Employees violating such agreement will be subject to disciplinary action, up to and including discharge.

CUSTOMER SERVICE

Our mission of "bringing optimism and joy to the masses" fosters our customer service excellence. We drive a culture of non-stop innovation in the Group to develop advanced broadcasting technology and optimize our platforms, thereby catching up with the growing trend of innovation as well as user experience. In order to stay committed to achieving the mission "meeting and exceeding each and every customer's demands", we dedicate in providing professional and tailored customer service. All enquiries are handled by our dedicated, well-trained customer service specialists. They provide a 24/7 service to communicate with users in a professional and courteous manner. To uniform quality of our treatment of all customers, a comprehensive complaint handling workflow (the "Standard Process") is established to provide clear guidance and support to customer service specialist. The Standard Process is as follows:

OUR SERVICE COMMITMENT: 1-2 HOURS

If the issue can be addressed by CS

	Communicating	Providing Solution
Receiving a Request	with Customer
according to
from Customer	to understand
CS Manual
	the situation

Collecting

Feedbacks &

Ratings from

Customers

If the issue cannot be

addressed by CSForwarding & Requesting

Communicating

Assistance from

the Solution to

Suitable Team

the Customer

OUR SERVICE COMMITMENT: 1-2 WORKING DAYS

For general cases which can be dealt solely by the customer service department, our average processing time is 1-2 hours. For the sake of delivering value-added services to our customers with the highest level of quality, we promise to offer solutions within one to two working days for issues that require technical support from other departments.

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Tian Ge Interactive Holdings Limited

Environmental, Social and Governance Report 2020

MAKING OUR CUSTOMERS SMILE

Customers are able to contact our service specialists on an array of different communication channels including Weibo, WeChat, hotline and live chat on our live streaming platforms. Multi-channel approach enables us to reach out and assist via that specific channel customers prefer, generate their satisfaction more easily and improve relationship with customer. They can also submit their feedback and enquiries to us in a seamless manner.

HEALTHY LIVE-STREAMING

Children are spending more time online than ever before. It is imperative to protect the youth from all possible threats of online sexual exploitation and abuse. Our measure includes filtering indecent or obscene contents that are clearly not suitable for children and teenagers. Since 2006, we have started to keep track and check the content through analysing screenshot of chatrooms. In 2008, the Group launched an auto-filtering system for screening indecent or obscene content. In 2012, we completed the patent application for "method for automatic filtering disqualified image based on multilayer characteristics"《( 基 於多層特徵的不良圖像自動過濾方法》), which can automatically analyse screenshot images of videos or live-streams and filter out inappropriate ones by skin colour and human body parts detection. This technology has been applied to our platforms. Content monitoring team will be notified once sensitive information is found in any live-stream broadcast. Any channel or user that is found violating the regulations will be warned. Serious breaches of regulations such as posting explicit content including pornography will be subjected to termination of user's account (including IP address blocking). The mechanism increases the efficiency and reliability of our monitoring work.

We have established a three-tiered content monitoring system as the following:

Before Broadcasting	Applicants are required to provide printed name on the Identity Card and registered mobile number
	under the Real-name Registration Provision upon new account registration.
	Prior to using any of our platforms, every user ought to abide by the terms of use to ensure that they
	agree with and clearly understand our terms and regulations including the "Social Platform Content
	Monitoring and Punishment Agreement".
	All registered users will be informed that certain types of messages and contents that are strictly
	prohibited on our live streaming platforms, consisting of illegal, unethical, harming, threatening
	messages as well as messages that infringe intellectual property.
During Broadcasting	When live streaming rooms begin to broadcast, our content monitoring system, room managers and
	technological specialists strictly manage and spot any non-compliance content.
	Screenshots of each broadcasting room will also be taken every 3 minutes and sent to undergo an
	automatic detection progress through the self-developed filtering system. Inappropriate content will
	be passed to our content monitoring team for further handling.
	Any host or audience who has broadcast restricted content will be warned and penalized once the
	non-compliance case is confirmed. By conforming to applicable laws, we apply penalties regarding
	violations on content regulatory requirements subject to level of severity comprising warning, room
	closure, suspension of the stream and/or account, permanent deletion of account with forfeiture of
	virtual currency and items as well as reporting to the police.
After Broadcasting	Record of cases of non-compliance will be retained for at least two years.
	We have made an agreement with the police to report illegal cases, special attention will be given to
	severe violations like drug use and obscenity, and a summary of violations of our terms of services will
	be reported to relevant local authority weekly. Administrative accounts of our platforms can also be
	accessed by the police if necessary.

Environmental, Social and Governance Report 2020

Tian Ge Interactive Holdings Limited

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MAKING OUR CUSTOMERS SMILE

INTELLECTUAL PROPERTY PROTECTION

The Group is obligated to develop a standard working procedure for Certificate for the Registration of Computer Software Copyright《( 計算器軟體著作權登記證書》). During the Reporting Period, a total of 17 pieces of intellectual property, including 2 patents, 3 domain names and 12 copyrights have been newly registered.

Our endeavour in innovation and the sound management system is recognised by the State as one of the Key Software Enterprises and eligible to enjoy tax benefits under "Announcement of the State Administration of Taxation on Issues concerning the Implementation of Preferential Income Tax Policies for Software Enterprises"《( 國家稅務總局關於執行軟體企業 所得稅優惠政策有關問題的公告》).

In order to ensure compliance with intellectual property laws, reduce the business risks associated with counterfeiting and piracy, we pledge to protect intellectual property right in general, notably the originality of the contents our hosts broadcast, while strictly comply with the Copyright Law of the PRC《( 中華人民共和國著作權法》), Regulation on the Protection of the Right to Communicate Works to the Public Over Information Networks《( 信息網絡傳播權保護條例》), Measures for the Administrative Protection of Internet Copyright《( 互聯網著作權行政保護辦法》) and Provisions on the Administration of Internet Audio-Visual Program Service《( 互聯網視聽節目服務管理規定》). Our trademark broadcasting platform, 9158, has declared to its hosts and users that if any case of infringement of intellectual property is identified, our team reserves the right to delete the infringing work without prior notice. Anyone who suspects that his or her intellectual property is being infringed by our hosts or users when using our service, can report to us and provide us with evidence. After an allegation has been fully investigated and confirmed by our team, any infringing work will be removed by request without any notice.

ADVERTISING

All broadcast materials and contents including advertisements uploaded are responsible by broadcasters. We have the primary responsibility for determining whether specific advertising is false or misleading. Every advertisement will be screened for any misleading content by our content management team before publishing to protect the consumer right of our users. Further legal action will be taken if we find any material that is not adhering to the Advertisements Law of the PRC《( 中華人民共和國廣 告法》) and the Interim Measures for the Administration of Internet Advertising《( 互聯網廣告管理暫行辦法》).

SUPPLY CHAIN MANAGEMENT

We deem our suppliers as one of our important business partners and motivate them to make their contribution to environmental protection, social responsibility and ethical behaviour and comply with applicable laws and regulations. We convey our expectation via the Code of Conduct for our suppliers and business partners. They are expected to maintain good business ethics by comprehensive management in occupational health and safety, employee benefits, avoiding child and forced labour and environmental protection. For example, they should have maintained a hygienic working area, discouraged discrimination in accordance with the Labour Law of the PRC《( 中華人民共和國勞動法》), complied with applicable environmental laws and established anti-corruption policies including "Anti-Unfair Competition Law of the People's Republic of China"《( 中華人民共和國反不正當競爭法》), "Criminal Law of the People's Republic of China"《( 中華人民共和國刑法》). We believe that sustainability development can be achieved through collaborative work by our suppliers, business partners and ourselves.

During the Reporting Period, we are not aware of any material violation of relevant laws and regulations relating to health and safety, advertising and privacy matters relating to products and services provided.

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Tian Ge Interactive Holdings Limited

Environmental, Social and Governance Report 2020

MAKING OUR EMPLOYEES SMILE

TALENT ACQUISITION

We strongly believe that employees are our best investment. Supporting them with a diverse, inclusive and safe workplace boost they productivity and achieve positive synergy to attract and retain talents.

With reference to the Labour Contract Law of the People's Republic of China《( 中華人民共和國勞動合同法》), our employee handbook addresses a thorough recruitment policy in detail that enable us to acquire the most suitable and compatible talents to fulfil organizational needs and pursue long-term success. We adopt multiple recruitment channels, which include online recruitment, job fairs, media advertisement and employee referral, to engage prospective applicants. An official WeChat account has also been set up specialized for posting recruitment notice for interested parties.

We have no tolerance for child and forced labour and are in stringent compliance with the Labour Law of the PRC《( 中華人民 共和國勞動法》). Applicants are required to submit identity documents for verification to prevent the occurrence of underage labour. Copies of document are kept by human resource department for record. Once job applications are received, shortlisted candidates will receive written test, interview, and background check which aim to assess one's technical or professional expertise required for a particular position. All appointments are based on their merits and qualifications - the skills and abilities of the candidate as measured against the inherent requirements of the position - regardless of personal characteristics such as their age, gender, nationality, race as well as disability. The Group considers all forms of discrimination to be unacceptable in the workplace and firmly uphold the principle of diversity and equality to offer fair working conditions. We sign contract with all newcomers to inform them with these terms for compliance and indicate their willingness to accept the offer.

Nonetheless, standard working hours, overtime policy, rest periods, leave and dismissal arrangement are clearly stated in employee handbook and contract. We have also adopted few flexible work arrangements, such as five-day work per week and flexitime, in hope of striking the balance between employee's needs and the Group's operational demand. All eligible employees are entitled to paid annual leave, paternity leave, sick leave, marriage leave, compassionate leave, etc. Subject to our operational needs, employee could be paid for authorized and agreed overtime work.

Environmental, Social and Governance Report 2020

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MAKING OUR EMPLOYEES SMILE

	STAFF OVERVIEW
TOTAL WORKFORCE
By Gender	By Age Group

400
324	313
300
200		178	174
100
0
	Male	Female
	2019	2020

By Geographical Location

500465

400

300	278
	238
200		188 205
100
			34	38	4	6
0
	30 or below	31-40	41-50	51 or above
		2019	2020
440

300
200
100		37		45
						0	2
0
	Hong Kong	Mainland China	Other regions
						2019	2020

TURNOVER RATE

By Gender

%
50
	41
40
30	30	28	31
20
10
0	Male		Female
	2019	2020

By Geographical Location

By Age Group

%
60	51
50	42
40			34
30		22
20		17		17
10			9
			0
0	30 or below	31-40	41-50	51 or above
		2019	2020

%
50
40	39
31
30
20
10
0	1
0
Hong Kong	Mainland China
2019	2020

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Tian Ge Interactive Holdings Limited

Environmental, Social and Governance Report 2020

MAKING OUR EMPLOYEES SMILE

REMUNERATION AND BENEFITS

To attract, retain and motivate high performing employees, our remuneration and benefits, which go beyond the requirement stated in the Labour Contract Law of the People's Republic of China, are highly competitive. Our employment package consists of basic salary, special bonuses and allowances. Other special bonuses including performance bonus, project bonus and internal referral bonus are provided to staff as a reward for outstanding performance.

Employees are also eligible to receive a monthly attendance bonus (which is used to reward staff for their full attendance without lateness, early leave and changing roster in that particular month), lunch allowance, transportation allowance and overtime allowance. Our fringe benefits include but not limited to the following items:

•	Birthday coupons	•	Maternity allowances
•	Marriage benefits	•	Festival bonuses
•	Book purchase subsidies	•	Free overtime meals
•	Transportation subsidies	•	Annual Travel

The Group strictly abides by the Social Insurance Law of the PRC《( 中華人民共和國社會保險法》) and ensures that employees are covered by the social security scheme (pensions, unemployment, medical, work-related injury and maternity insurances plus housing provident fund (五險一金)).

The importance of an effective employee engagement strategy cannot be overstated. Therefore, we are determined to infuse our working environment with enthusiasm and create the sense of belonging by organizing various employee engagement activities such as picnic and meal gatherings. Our staff are free to use the specialized Wechat official account for promoting exchange of ideas, knowledge and coordination of leisure activities.

During the Reporting Period, we are not aware of any material non-compliance with relevant laws and regulations concerning compensation and dismissal, recruitment and promotion, working hours, rest periods, equal opportunity, diversity, anti-discrimination, other benefits and welfare, child labour and forced labour.

OCCUPATIONAL HEALTH AND SAFETY

Maintaining a safe and healthy environment at work is always our top priority. A multi-pronged approach is put in place to safeguard the well-being and safety of our employees while adhering to the Labour Law of the PRC《( 中華人民共和國勞動法》) and other applicable laws and regulations.

Environmental, Social and Governance Report 2020

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MAKING OUR EMPLOYEES SMILE

All new employees are compulsory to undergo a pre-employment medical examination. We believe that an early detection of illness can lead to more cures and mitigate the risk of potential health problems. Annual medical check-up,weekly-medical consultation sessions and quarterly medical talks to existing employees are offered to our employees to keep them abreast of their health. We are also incorporating fitness equipment such as gym facilitates into the office environment to show our enlightened approach to employee wellbeing and healthy working lifestyle. Staff members are free to enjoy the office gym at their leisure time.

To prevent workplace incidents from happening, we make every possible effort to ensure all safety equipment is in good conditions and ready to use. Periodic maintenance and inspection of fire protection system, which includes first-aid kits, fire sprinkler system, fire alarm system and emergency exit, are performed. Fire drills are also conducted to fully comply with the Fire Protection Law of the PRC《( 中華人民共和國消防法》) and other related laws and regulations.

During the Reporting Period, there was no work injuries and work-related casualties occurred. We are not aware of any material non-compliance with laws and regulations with regard to providing a safe working environment and protecting employees from occupational hazards.

COVID-19 internal responses

In response to the novel coronavirus (COVID-19) outbreak, we attach great importance to protecting our employees while playing our parts to prevent secondary transmission and spread of virus. We monitor developments and the introduce additional governmental guidance vigilantly and respond as needed. Guidelines on health, travel and hygiene were provided to all employees from time to time.

To maintain a healthy and safe business and operating environment, we have put in place the following precautionary measures to manage health risk.

• New standards on hygienic practices
• 1. Provide employees with masks.
  2. Provide sufficient hand-sanitizers and disinfectant swabs all over the company.
  3. Conduct temperature check on all employees and guests at entrance.
  4. Increase cleaning frequencies of office spaces.
  5. Advise employees to wear a face mask at all times.
  6. Encourage one metre social distancing wherever possible and increase in frequency of handwashing.

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• Comprehensive quarantine policy and enforcement
  We recognize that business travel can provide significant benefits and opportunities for our business whilst it increases our employees' chances of getting infected and spreading COVID-19 at the same time. Amid the state of emergency, we suspended all non-essential business travels to reduce risk factor for the virus and to provide a safe working environment. Employees must report any personal travel to their supervisor and seek for approval before departure. Employees who engage in personal travel to low-and-medium risk provinces must present a negative COVID-19 test result prior to returning to work. For prudence sake, employees who have been to high-risk area are required to undergo an extra 7-day home quarantine and 7-day health monitoring before their tests.

DEVELOPMENT AND TRAINING#

We allocate ample resources to staff training and development with the aim of sustaining a competent staff force that contribute to the business development. Job satisfaction and morale among employees can also be improved. This can be achieved by implementing our holistic "Training Management Policy". Comprehensive training plan is developed every year accordingly and can be categorised into four aspects:

New Staff	On-job
Orientation	Training

Pre-job Personal

Training Development

Total training hour 190 hours, 5% of employees

trained

We also encourage employees to enhance knowledge and skills and to network with other professionals, thus improving potential for future opportunities. A monetary incentive will be provided for employees who successfully obtains nationally-recognised qualifications and certifications.

• Our reporting on social KPIs mainly makes reference to the calculation methodologies stated in "How to prepare an ESG report" published by The Stock Exchange of Hong Kong Limited. KPIs for development and trainings in 2019 have also been restated.

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MAKING OUR EMPLOYEES SMILE

PERCENTAGE OF EMPLOYEES TRAINED AND THE AVERAGE TRAINING HOURS COMPLETED

Description	2020	2019
Total training hour	190	1,298
Average Training Hours completed	0.39	2.59
Percentage of Employees Trained	5%	38%
Average Training Hours completed and Percentage of Employees Trained By Gender#
Male	0.31 (59%)	2.88 (71%)
Female	0.53 (41%)	2.06 (29%)
Average Training Hours completed and Percentage of Employees Trained By Employee Category#
Senior Management	-	1.30 (3%)
Middle-level Management	0.13 (5%)	4.65 (19%)
General & technical Staff	0.49 (95%)	2.46 (78%)

Performance appraisals help us create plans for employee development through additional training and increased responsibilities, as well as to identify shortcomings the employee could work to resolve. We conduct monthly, quarterly or yearly-based performance appraisals depending on job nature and requirements. The appraisers are required to evaluate one's performances objectively on a quantitative scale based on a set of key performance indicators. Personal guidance and recommendations for improvement are also provided accordingly to help in their career and personal development. The employee performance assessment is a basis for non-discriminatory promotion, pay and bonus.

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INTEGRITY

Integrity and honesty are an integral part of our business core value and foster a positive workplace culture. We expect our employees to work with integrity and to comply with all relevant laws and regulations including but not limited to "Anti-Unfair Competition Law of the People's Republic of China" 《( 中華人民共和國反不正當競爭法》) and "Criminal Law of the People's Republic of China"《( 中華人民共和國刑法》) in the PRC. A comprehensive internal control system is adopted to ensure these expectations to oversee our employees' behaviours with this regard. Our anti-corruption policies also prohibit any unethical conducts including money laundering, bribery, extortion and fraud in any form. Raising concerns is a critical step so that we can identify and react to misconduct and protect ourselves from negative consequences. We encourage all employees to speak up. As such, a whistleblowing policy is reinforced in the Group. While full transparent reporting enables us to conduct a more effective investigation, if the employee wishes, a report may be submitted anonymously. Reports via phone, email or post are accepted. In view of the potentially severe consequences for Group and individuals who engage in bribery and corruption, our conduct monitoring team will investigate all credible allegations of such misconduct and report the findings to the board of directors and relevant parties.

Since May 2019, the Group has become a member of Trust and Integrity Enterprise Alliance (also known as "TIEA", "陽光誠 信聯盟"). Initiated by The Research Center of Criminal Justice of Renmin University of China ("中國人民大學刑事法律科學研究 中心"), TIEA is a national alliance made up of representatives from leading enterprises of various industries. It is committed to fighting against corruption, in line with its overarching theme of building a business environment featuring management with integrity and strengthening business internal control.

Among the commitments made with the alliance, the Group pledges to do the following:

• Reject any job applicant who engages in or convicted for corruption, bribery or fraud
• Decline business partnership with any organisation which engages in or convicted for corruption, bribery or selling counterfeit goods from
• Share blacklists with other alliance members

During the Reporting Period, we are not aware of any material non-compliance with relevant laws and regulations with respect to corruption, bribery, extortion, fraud and money laundering.

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MAKING OUR EARTH SMILE

From extreme weather events to rising sea levels, the impact of climate change is an unprecedented worldwide challenge. The Group has taken further steps to reduce our environmental footprint and facilitate the transition to a low carbon economy to shoulder our corporate social responsibility. To fully conform to Environmental Protection Law of the PRC《( 中華人民共和國 環境保護法》), we implement our Environmental Policy which articulates our mission in relation to managing the environmental impacts in our operation.

EMISSION REDUCTION

We are dedicated to sustainable growth and progress with our customers and society as we seek different ways to reduce our impact on the environment. We aim to continuously improve our environmental performance and reduce greenhouse gas emissions associated with our operations. The following energy saving measures are adopted:

• Staff is urged to turn off idle electrical appliances.
• We encourage green travelling with the use of public transport and/or carpooling.
• We conduct inspection to ensure air-conditioners are shut off when all staff is off from work.
• In terms of procurement, electrical appliances awarded with Grade One Energy Label indicating the most efficient level will be prioritized.
• Every electricity consuming appliance is monitored by a Smart Energy Saving Application (the "Mobile Application"). The Mobile Application allows the administration team to set up timer for appliances to turn on and off at a specific time for better energy use control and management. Meanwhile, the Mobile Application also enables remote monitoring and switching off of all sockets and appliances. If any electronic device is not switched off, staff can turn off remotely to avoid energy wastage.
• To avoid direct insolation heating up the office directly, reflective panels are installed at the windows around the office to reduce the level of direct insolation to reduce the energy consumed for air-conditioning. Our Hangzhou office has planted greenery of 500-meter square at the rooftop of the building to lower the room temperature.

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WASTE REDUCTION

In line with our sustainability approach, we endeavour to minimize waste and incorporate the 4R principles - Replace, Reduce, Reuse, Recycle. With regard to these principles, the Group carries out various waste reduction initiatives such as electrical refuse separation from other non-recyclables. General refuse is collected by designated sanitary service company and environmental hygiene authority while electrical refuse, predominantly computer, is recycled by qualified third-party recyclers.

Paper consumption reduction is another way for us as an office-based operation to protect the environment. All our staff members are required to print double-sided. A good office supplies management is maintained to reduce wastage. We have also switched to online human resources system for most administrative work, such as leave application and performance appraisal as our big transition to paperless operation.

WATER CONSERVATION

Water is becoming an increasingly scarce resource. The sustainable use of water and conservation of natural water resources are therefore of concern to us. We are constantly working to minimize our water consumption. Several conservation initiatives such as drip irrigation, time control and partial spraying for irrigation are used in the greening area in Hangzhou office. We also install signs and posters to promote a water efficient culture throughout our business. During the Reporting Period, we sourced freshwater from local municipal water supplier and have no problem in sourcing.

RESOURCE USE

As a live-streaming platform operator, we are running an office-based business for which significant impact on the environment and natural resource is not anticipated. Our energy consumption, source of greenhouse gas and air emissions come from the consumption of purchased electricity for office and consumption of unleaded petrol and LPG for vehicles.

During the Reporting Period, we are not aware of any material non-compliance with relevant laws and regulations concerning air and greenhouse gas emissions, discharges into water and land, and generation of hazardous and non-hazardous waste.

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MAKING OUR EARTH SMILE

1

2

3

	Our Environmental Footprint1
Description	Unit of Measure	2020	2019
	Air Emissions
Nitrogen oxides (NOx)	kg	14.26	12.31
Sulphur oxides (SOx)	kg	0.44	0.39
Particulate matter (PM)	kg	1.05	0.91
	Greenhouse Gas (GHG) Emissions
Total	tCO2-eq	657.48	726.24
Scope 1: Direct emissions	tCO2-eq	79.08	71.13
Scope 2: Energy indirect emissions	tCO2-eq	578.40	655.61
Intensity	tCO2-eq/employee	1.35	1.45
	Non-Hazardous Waste Generated2
Total	tonnes	101.53	96.82
Waste disposed	tonnes	89.33	87.19
Waste collected for recycling	tonnes	12.06	9.63
Intensity	tonnes/employee	0.21	0.19
	Energy Consumption
Total	MWh	971.82	1,038.31
Purchased Electricity	MWh	701.09	794.79
Non-Renewable Fuel	MWh	270.73	243.52
Intensity	MWh/employee	2.0	2.07
	Water Consumption3
Total	m3	971.00	1,447.30
Intensity	m3/employee	8.75	10.56

There was a total number of 485 full-time and 2 part-time employees in Hangzhou, Jinhua, Beijing and Shanghai offices in PRC as of December 31, 2020 while there was a total number of 501 full-time and 1 part-time employees as of December 31, 2019.

Due to our business nature, we were not aware of any significant generation of hazardous waste and consume any packaging material during the Reporting Period.

Data of water consumption in our Hangzhou and Shanghai office was not available as sub-meter for individual occupant was not provided by the respective building management. The above data only covers water consumption in our Jinhua and Beijing offices in 2019 and 2020.

4 Our reporting on air and greenhouse gases (GHG) emissions mainly base on the requirements in "How to prepare an ESG report" published by The Stock Exchange of Hong Kong Limited and "GHG Protocol Corporate Accounting and Reporting Standard (revised edition)" published by the World Business Council for Sustainable Development and World Resources Institute. Operational control approach is adopted when defining organizational boundary for the purpose of GHG accounting and reporting.

GHG emissions is presented in carbon dioxide equivalent (CO2e). Our scope 1 direct emissions cover GHG emissions directly produced by businesses owned or controlled by the Group, while scope 2 indirect emissions cover GHG emissions of indirect energy resulted from electricity (purchased or acquired) internally consumed by the Group. Our total energy consumption includes purchased electricity and renewable fuels consumed and the relevant conversion factors reference from "Technical Note: Conversion of fuel data to MWh" published by CDP.

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Tian Ge is dedicated to building stronger and better communities around the globe. Our vision always stays the same - making the world smile every day. We aim to make a positive contribution to the society and make consumers to feel proud of our brand.

Community contribution during pandemic

The COVID-19 pandemic has profoundly affected communities around the world. Undeniably, this has been a challenging and hard time for all of us. Early in the course of the outbreak, hygiene products, disinfectant and surgical masks have once become the world's most coveted commodities. The Group has proactively stepped up on its corporate social responsibility efforts. We shared the concern of the public over the insufficient face mask supply in the market amid the coronavirus outbreak and tried to offer immediate help and assistance to fight against the virus. The Group donated a total of 21,800 face masks and 900 protective suits to hospitals and governmental departments to show our appreciation to the frontline staff members for their sacrifice and contribution during this challenging period.

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HKEX ESG REPORTING GUIDE CONTENT INDEX

Subject Areas, Aspects, General Disclosure and KPIs	Chapter/Disclosure	Page
A.	Environmental
Aspect A1: Emissions
General Disclosure	Making our earth smile	21-23
Information on:
(a)	the policies; and
(a) compliance with relevant laws and regulations that have a
	significant impact on the issuer relating to air and greenhouse
	gas emissions, discharges into water and land, and generation
	of hazardous and non-hazardous waste.
KPI A1.1	The types of emissions and respective emissions	Resource use	23
		data.
KPI A1.2	Greenhouse gas emissions in total and where	Resource use	23
		appropriate, intensity.
KPI A1.3	Total hazardous waste produced and where	We did not generate any significant amount of
		appropriate, intensity.	hazardous waste.
KPI A1.4	Total non-hazardous waste produced and where	Resource use	23
		appropriate, intensity.
KPI A1.5	Description of measures to mitigate emissions and	Emission reduction	21
		results achieved.
KPI A1.6	Description of how hazardous and non-hazardous	Waste reduction	22
		wastes are handled, reduction initiatives and results
		achieved.

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Aspect A2: Use of Resources

General Disclosure	Making our earth smile	21-23
Policies on the efficient use of resources, including energy, water
and other raw materials.
Note: Resources may be used in production, in storage,
transportation, in buildings, electronic equipment, etc.
KPI A2.1	Direct and/or indirect energy consumption by type in	Resource use	23
	total and intensity.
KPI A2.2	Water consumption in total and intensity.	Resource use	23
KPI A2.3	Description of energy use efficiency initiatives and	Emission reduction	21
	results achieved.
KPI A2.4	Description of whether there is any issue in sourcing	Water conservation	22
	water that is fit for purpose, water efficiency initiatives
	and results achieved.
KPI A2.5	Total packaging material used for finished products,	As a social video platform operator, packaging
	and if applicable, with reference to per unit produced.	material used for finished products is not applicable
		to the Group's business.
Aspect A3: The Environment and Natural Resources

General Disclosure

Policies on minimising the issuer's significant impact on the environment and natural resources.

KPI A3.1 Description of the significant impacts of activities on the environment and natural resources and the actions taken to manage them.

Due to our business nature, we did not have significant impact on the environment and natural resources.

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B. Social

Employment and Labour Practices

Aspect B1: Employment

General Disclosure	Making our employees smile	14-20
Information on:

1. the policies; and
2. compliance with relevant laws and regulations that have a significant impact on the issuer relating to compensation and dismissal, recruitment and promotion, working hours, rest periods, equal opportunity, diversity, anti-discrimination, and other benefits and welfare.

KPI B1.1	Total workforce by gender, employment type, age	Staff overview	15
	group and geographical region.
KPI B1.2	Employee turnover rate by gender, age group and	Staff overview	15
	geographical region.
Aspect B2: Health and Safety
General Disclosure	Making our employees smile	14-20
Information on:

1. the policies; and
2. compliance with relevant laws and regulations that have a significant impact on the issuer. relating to providing a safe working environment and protecting employees from occupational hazards.

KPI B2.1	Number and rate of work-related fatalities.	Occupational health and safety	16-18
KPI B2.2	Lost days due to work injury.	Occupational health and safety	16-18
KPI B2.3	Description of occupational health and safety	Occupational health and safety	16-18
	measures adopted, how they are implemented and
	monitored.

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Aspect B3: Development and Training

General Disclosure	Development and training	18-19
Policies on improving employees' knowledge and skills for
discharging duties at work. Description of training activities.
KPI B3.1	The percentage of employees trained by gender and	Development and training	19
	employee category.
KPI B3.2	The average training hours completed per employee	Development and training	19
	by gender and employee category.
Aspect B4: Labour Standards
General Disclosure	Talent acquisition	14
Information on:

1. the policies; and
2. compliance with relevant laws and regulations that have a significant impact on the issuer relating to preventing child and forced labour.

KPI B4.1	Description of measures to review employment	Talent acquisition	14
	practices to avoid child and forced labour.
KPI B4.2	Description of steps taken to eliminate such practices	Talent acquisition	14
	when discovered.
Operating Practices
Aspect B5: Supply Chain Management
General Disclosure	Supplier management	13
Policies on managing environmental and social risks of the supply
chain.
KPI B5.1	Number of suppliers by geographical region.	We have three major suppliers which are located in
		the PRC.
KPI B5.2	Description of practices relating to engaging	Relevant data will not be disclosed for the
	suppliers, number of suppliers where the practices	Reporting Period.
	are being implemented, how they are implemented
	and monitored.

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Aspect B6: Product Responsibility

General Disclosure	Making our customer smile	10-13
Information on:
(a) the policies; and	As the Group is not involved in
(b) compliance with relevant laws and regulations that have a	product manufacturing and sales,
significant impact on the issuer relating to health and safety,	laws and regulations relating
advertising, labelling and privacy matters relating to products	to product labelling are not
and services provided and methods of redress.	applicable.
KPI B6.1	Percentage of total products sold or shipped subject	Due to our business nature, we did not have
	to recalls for safety and health reasons.	products sold or shipped subject to recalls for
		safety and health reasons.
KPI B6.2	Number of products and service related complaints	Relevant data will not be disclosed for the
	received and how they are dealt with.	Reporting Period.
KPI B6.3	Description of practices relating to observing and	Intellectual property protection	13
	protecting intellectual property rights.
KPI B6.4	Description of quality assurance process and recall	Healthy live-streaming; As the	12
	procedures.	Group is not involved in product
		manufacturing and sales, recall
		procedures are not applicable.
KPI B6.5	Description of consumer data protection and privacy	Information security and customer	10
	policies, how they are implemented and monitored.	privacy protection

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Aspect B7: Anti-corruption

General Disclosure	Integrity	20
Information on:

1. the policies; and
2. compliance with relevant laws and regulations that have a significant impact on the issuer relating to bribery, extortion, fraud and money laundering.

KPI B7.1	Number of concluded legal cases regarding corrupt	Integrity	20
	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-	Integrity	20
	blowing procedures, how they are implemented and
	monitored.
Community
Aspect B8: Community Investment
General Disclosure	Making our community smile	24
Policies on community engagement to understand the needs of the
communities where the issuer operates and to ensure its activities
take into consideration the communities' interests.
KPI B8.1	Focus areas of contribution.	Making our community smile	24
KPI B8.2	Resources contributed to the focus area.	Making our community smile	24