In 2023, Xiaomi Group appointed its first female independent non-executive director, advancing its ESG management system. This move enhances board diversity and inclusivity, boosts governance professionalism, and integrates ESG practices into business operations and management.

Most of our executive compensation is performance-based to align with long-term shareholder interests. The Compensation Committee annually sets clear, quantifiable financial and non-financial performance goals for designated executives, focusing on Xiaomi's overall success. For some executives, 50% of their non-financial targets are tied to ESG goals, with criteria adjusted annually. These goals include ESG performance metrics (e.g., greenhouse gas reduction, renewable energy transition, energy-saving product development, compliance, product accessibility, and employer attractiveness) and reputation development (e.g., corporate culture, integrity, and compliance). Currently, ESG-focused compensation accounts for 3% of total executive compensation, with plans to increase this to 5% within three years. We are committed to linking more executive compensation to ESG performance to promote sustainable development.