#12021 Environmental, Social and Governance Report CHOOSE UXIN, CHOOSE A SUSTAINABLE FUTURE 2021 Environmental, Social, and Governance (ESG) Report ESC Contact us E-mail: [email protected] Customer Service Hotline: 10106088 Address: Floor 3, No. 12 Beitucheng East Road, Chaoyang District, Beijing, P.R. China 100029 A 优信 UXIN GROUP#2CONTENTS • • About This Report Message From Our CEO 01 00 03 APPENDIX 97 40 About Uxin Environmental, Social and Governance Report 2021 Reputable Uxin, provider of customer-centric service Company Profile 7 Service Commitment 27 Vision and Mission 12 NPS-Focused Growth 31 ESG Strategy 14 Consumption Equality 36 Awards and Recognition 20 Privacy Protection 38 Key Performance 21 Innovative Uxin, leader in the industry's development Green Uxin, runner towards a zero-carbon future Innovation-Driven Development 43 Green "DNA" 61 Intelligence Technology Upgrades 49 Green Operations 64 Information Security 57 Green Logistics 68 Green Leadership 70 Combating Climate Change 72 05 Considerate Uxin, builder for a dream team 06 Responsible Uxin, follower of business ethics Diversity and Inclusion 79 Corporate Governance 93 Health and Safety 80 Compliance Management 94 Talent Growth 82 Business Ethics 95 Employee Care 87#301 UXIN LIMITED Environmental, Social and Governance Report ABOUT THIS REPORT This report is the first annual environmental, social and governance (ESG) report released by Uxin Limited. This report discloses Uxin Limited's practices and performance in areas of corporate responsibility such as environ- ment, social responsibility, and corporate governance, and aims to effectively communicate with various stakehold- ers and systematically respond to their expectations and demands. Reporting Period This report is an annual report. Explanation of Reference Uxin, the Group, the Company, and we all refer to Uxin Limited ABOUT THIS REPORT Sources of Data The data used herein are derived from Uxin's internal statistical statements, administrative documents and reports, evaluation interviews and third-party research reports. Part of the content and data are properly traced back to previous years. The currency unit in the Report is Renminbi (RMB) unless otherwise stated. Reporting Scope The information in this report covers the fiscal year of Uxin Limited ending March 31, 2022. To enhance the compa- rability and perceptiveness of the Report, scope for select content have been moderately extended to cover the previous year and the next. The main subject of the Report is Uxin Limited and any other content that may differ from this scope will be explained. Assurance Uxin has approved that the contents of the Report are true, accurate and complete, without any false records, misleading statements, or major omissions. Uxin is responsible for the authenticity, accuracy, and completeness of the content presented. Preparation References • Sustainable Development Goals (SDGs) released by the United Nations • Recommendations of Task Force on Climate-related Financial Disclosures (TCFD) released by the Financial Stability Board (FSB) • The Global Reporting Initiative Standards (GRI Standards) released by the Global Sustainability Standards Board (GSSB) • ESG Reporting Guide 2.0 released by Nasdaq Report Access The Report is released in an electronic version, which is available on the Company's investor relations website (https://ir.xin.com/esg). 02#403 UXIN LIMITED Environmental, Social and Governance Report MESSAGE FROM OUR CEO The COVID-19 pandemic and climate change in recent years have brought unprecedented challenges to economic development and people's well-being. How an enterprise can effectively address such complex environmental and societal problems and climate-related risk management directly affects its financial and long-term develop- ment. In the last year, with a focus on customer satisfaction, we set up Inspections and Reconditioning Centers (IRCs) in both Xi'an, Shaanxi Province and Hefei, Anhui Province and operated under 100% inventory-owning model with omni-channel sales approach, which merged our online platform and offline IRCs. In the meantime, we have taken the lead on sustainability by focusing on environmen- tal, social, and governance elements to continuously create long-term value for the Company and our stakeholders. Putting customers first - our omni-channel sales solutions lead to outstanding customer satisfaction. We have also pioneered the "Nationwide Online Purchase" business model in 2018, breaking the barriers in used vehicles cross-regional transactions and effectively enhancing the accessibility of services. As the first company in the industry to include NPS (Net Promoter Score) as one of its assessment indicators, we hold NPS promotion meetings biweekly to listen to customers' feedback and actively improve our services. Through our efforts, we have seen a significant growing trend of NPS scores for consecutive quarters and we are committed to providing professional and considerate services to customers. Leading in the industry - we aim to be a disruptor through innovation and technology. To get out of the chaos in the tradition- al used vehicle market, our business operates as a 100% self-own- ing model, thus taking the initiative to control product quality and services in our own hands. We also encourage innovation, and many of our patents give a strong enhancement to the Company's development. Based on our intelligence technology upgrades in supply management, our business operations have been more efficient, consistently providing best-in-class used vehicles and superior service for customers. Our innovation and technology have also further standardized circulation and transactions in the used vehicle industry. 0B Kun Dai Chairman & CEO of Uxin MESSAGE FROM OUR CEO 04 Embracing sustainable empowerment- we are stepping towards a low-carbon future. In 2021, we set off on a new journey in the new energy used vehicle market, advocating for a greener mode of travel. Uxin smart logistics and delivery network reduced empty-run and redundancy, carbon emissions, and costs. We also plan to launch a photovolatic roof project in our new Inspection and Reconditioning Plant in Hefei, Anhui Province, to help lead a cleaner and zero-carbon future. In addition, we actively participate in industry conferences and forums to pool efforts for green development. Caring for our staff - we have built a dream team of dynamic talents. We value our talents and are committed to providing our people with a diverse and inclusive environment in the workplace where their rights and interests are looked after. Our training and sharing program help our staff build solid professional skills and empower them in pursuing their career goals. In addition, to show our care for each employee, we established a welfare system and a wide variety of leisure activities. We strive to build a team where we can pursue our common aspirations and dreams together. It is essential for a company to embrace social and environmental responsibilities, as it expands and strengthens core competency. This report, the first ESG report released by the Company, aims to show Uxin's dedication to developing and implementing innovative business strategies aligned with sustainable development goals. Uxin will continue improving the Company's ESG governance structure and embed sustainability into the Company's business operations over the years and into the future. We will remain committed to promoting circular economy development and build a sustainable, value-based ecology in the used vehicle industry, and thus continuously create long-term value for our stakeholders and contribute to a greener and cleaner future.#5Environmental, Social and Governance Report 2021 About Uxin Company Profile Vision and Mission ESG Strategy Awards and Recognition Key Performances 01#607 UXIN LIMITED Environmental, Social and Governance Report COMPANY PROFILE Introduction Founded in 2011 and headquartered in Beijing, Uxin (NASDAQ: UXIN) is a leading e-commerce platform for buying and selling used vehicles in China. With our inventory-owning model, we provide our customers a comprehensive transaction solution that encompasses the entire value chain, ranging from used-vehicle acquisition, inspection, reconditioning, warehousing, as well as pre-sales and after-sales services. Empowered by our omni-channel sales approach, we are able to establish market leadership by serving customers nationwide through our online platform and in selected regions through our offline Inspections and Reconditioning Centers (IRCs). The Company's services are based on its advanced patented technology, strong data analysis capabilities, professional technical teams, and complete service guarantee. In 2021, we updated our brand slogan to "Choose Uxin, Choose a Smart Lifestyle", advocating for a smarter lifestyle by buying high-quality used vehicles at a more reasonable price. The Company continuously improves its technology and service capabilities, enabling more people to buy their used vehicle in a reliable, one-stop, and hassle-free way. Nasdaq + % NDAO/ Listed 200 59% CHANGE +0.54 CISCO +0.38% PRICE $42.71/CHANGE +0.16 Nasda Composite +0.40% VALUE 7,561.63 CHANGE +29 intel amazon CISCO -0.85% +0.97% 0.38% 0.20% DAC GB Nasdaq -UXIN NasdaqListed &P 500 0,22% SR500 Composite +0.40% ahazon PayPal +0.07% Uxin listed on NASDAQ in 2018 +0.10% COMCAST 70.40% -1.10% 53242 8.3 PayPal 1:09:3010610 +0.40% +0.31 [CSX UN NAS ENIN Organizational Structure Uxin Limited Supply Chain Management Operating Coordination Center Trade-in and Channel Procurement Center Individual Procurement Center Product Selection and Pricing Center Supply Chain Management Center Vehicle Warehouse Management Center Inspection and Reconditioning Center Sales and Marketing Department Xi'an IRC Customer Service Hefei IRC Financial and Legal Logistics Service Department After-sales Service Center Legal and Public Affairs Department Finance Department Treasury and Settlement Department Financial Asset Management Department Capital Markets Department Strategic Development Project Management Department Investment Development Department Public Relations Department Partnership Business Department We are: ⚫ China's first company to develop a patented and industry-leading inspection system for used vehicles Direct CEO Management Pipeline CEO Office Product and Technology Center ⚫ China's first company to introduce an Al pricing system into the used vehicle industry ⚫ China's first company to use the "Nationwide Online Purchase" business model ⚫ China's first publicly listed company in the used vehicle industry ⚫ The first used vehicle platform to establish its own logistics system and network Human Resources and Administration Center ABOUT UXIN 08#709 UXIN LIMITED Environmental, Social and Governance Report Key Milestones 2011 Uxin founded Business Profile Uxin provides full-chain processes from acquisition to inspection, reconditioning, retailing, and after-sales. Acquisition Reconditioning ABOUT UXIN 10 Used vehicle transaction business and loan facilitation business 2017 2015 Initiated the "nationwide online purchase" model to lead cross-regional circulation of used vehicles Listed on NASDAQ 2018 2020 Divested loan facilitation business and shifted to inventory-owning model for used vehicle transaction business With offline IRCS set up in Xi'an and Hefei, "omni- channel sales approach" was created 2021 2022 A cutting-edge inspection and reconditioning plant under construction in Changfeng County, Hefei City • Since its inception in 2011, Uxin has been committed to promoting the progress and healthy growth of the whole used vehicle industry. • In 2018, the Group was officially listed on NASDAQ, and has seen continuously rapid development. In 2020, the Group carried out full-scale upgrades and adjustments to our business model with a focus on improving customer satisfaction and transformed our business into a completely self-operated model. We also became the first company in the industry to include NPS (Net Promoter Score) as one of our assessment indicators. • In March 2021, the Group announced that the first Uxin used vehicle IRC in China was officially put into operation in Xi'an. • In October 2021, the Group established the first phase of Uxin Used Vehicle IRC in Hefei, covering nearly 100,000 square meters. In 2021, with the establishment of two offline IRCS in Xi'an and Hefei, Uxin has built a new used vehicle retail model with "omni-channel sales approach with self-owned inventory". We acquire used vehicles nationwide from individual consumers, partnered dealerships, and auction platforms. Our product selection and pricing center analyzes the retail prices of our listed used vehicles, our current inventory and selling prices on other third-party platforms to determine the retail price of our acquired used vehicles. Retailing Orders can be placed through the Uxin Online Shopping Mall and Uxin will provide door- to-door delivery service. We also have offline IRCS in Hefei and Xi'an that customers can visit and pick up the vehicle of their choice on the same day. Used vehicles undergo a modernized, streamlined, automated, and detailed inspection, and then enter the reconditioning center for spray painting, polishing, interior refurbishment and other processes. The reconditioned used vehicles are displayed on the digital platform with used vehicle photographs and videos. After-sales For each used vehicle, Uxin provides a dedicated vehicle service team for delivery/licensing, vehicle-related consultation, vehicle using service and quality warranty. Business Overview We have been exploring the field of used vehicle transactions for more than ten years. In September 2020, we began to transform our used vehicle business model from a third-party inventory, commission-based model into inventory-owning model. With the establishment of offline IRCS in Xi'an and Hefei in 2021, a new used vehicle retail model of "omni-channel sales approach + self-owned inventory" was formed. Our business chain covers the entire process of used vehicle selection and procurement, inspection, reconditioning, online display and sales nationwide, in-store buying at IRCS, and after-sales. Logistics + Formalities ERP System Overview of Uxin's business#811 UXIN LIMITED Environmental, Social and Governance Report Service and Management Modes Following blueprint-driven and anti-waste principles, Uxin has formulated Eight-Step Approach, Fieldwork Approach and Our Customer Service to standardize servicing and management. Through the active management within the Company, we controlled and continuously improved our product and service quality to enhance the Company's brand image and long-term value. VISION AND MISSION Blueprint-driven Development • Taking the blueprint for the next five years as guidelines All work plans are oriented at long-term goals Eight-Step Approach • Clarifying problems • Analyzing problems Setting goals . • • Grasping real causes Formulating countermeasures Evaluating results Fixing achievements • Horizontal expansion ល 8 Fieldwork Approach Working on-site • Continuous improvement Saying No to Waste • Determined to put an end to any needless waste Our Customer Service ABOUT UXIN Since its inception, Uxin has been committed to the progress and healthy growth of the entire used vehicle industry. We established a fair e-commerce platform for used vehicles, taking "Choose Uxin, Choose a Smart Lifestyle" as the foundation of our corporate values and "Sincerity and integrity in operations, products, and services" for our corporate culture to promote a new lifestyle in China with used vehicle e-commerce. Our Values • Customer-oriented perspective • Creating superior customer experience in multiple dimensions ⚫ High quality customer service is the face of Uxin 01 Only selling used vehicles we are willing to recommend to our own families and friends 02 Be considerate towards the customers 03 Sincerity and integrity in operations, products, and services 04 Choosing honesty and transparency, no matter the difficulties Flywheel Strategy As we believe credibility drives quality and sustainable growth, customer satisfaction is the key element to the Group's closed-loop operations and flywheel strategy. By improving the used vehicle quality and customer experience, we aim to build an excellent service system and win a good reputation, so as to gain momentum and spin the flywheel of user behavior. Through continuous empowerment by customer trust, we in turn helped more customers to purchase high-quality used vehicles from Uxin. With all components of the product and customer experience flywheels connected and operated, we are able to accomplish an ethical, mutually rewarding circular system between company development and customer satisfaction. 12#913 UXIN LIMITED Environmental, Social and Governance Report Enhancing service Recommending Uxin to more people Improving experience Corporate Strategy Flywheel Gaining Customer Satisfaction User Behavior Flywheel Valuing quality Buying high-quality Uxin vehicles Empowered by trust ESG STRATEGY ABOUT UXIN Uxin strategic flywheels In the future, we will continue our relentless efforts in making more breakthroughs in customer satisfaction, business processes, and sales performance as our path to profitability. ESG Governance We believe that a well-organized ESG governance structure can help us minimize risks, achieve our sustainability goals, and create long-term value. Our Company's Board of Directors regards ESG governance as a highly valuable priority. An ESG Governance Committee is in the process of establishment, and its subordinate ESG working group will coordinate various functional departments for the Company's ESG work. The ESG Governance Committee, under the direct management of the Company's Board of Directors and on behalf of the interests of the Group, will give suggestions to senior management on how to effectively avoid ESG risks and manage ESG-related projects. This will create a closed-loop ESG management system that includes decision-making, communication, implementation, reporting and assessment. Board of Directors Human Resources and Administration Center Labor management Talent training and development Employee care Human resource data ESG Governance Committee ESG Working Group Supply Chain Manage- ment Department Product quality management Product information disclosure Access to Service...... CEO Office Customer satisfaction management Strategic Develop- ment Department Energy conservation and emission reduction Opportunities in clean technology Access to service...... Internal Audit & Control Departments Business ethics Internal audit & control Product and Technology Center Innovation patents Privacy protection and data security Other Functional Departments Other ESG issues ... The main responsibilities of the ESG Governance Committee will include: • Paying attention to ESG development trends, impact, and opportunities • Recommending ESG projects, investment opportunities and disclosure information to management and board of directors Confirming that the Company's ESG strategy can properly cope with risks and fulfill its obligations Evaluating the effectiveness of ESG projects and investments • Supporting ESG information disclosure and related work • Establish continuous initiatives for improving ESG culture and value system ESG governance framework In the future, the Company will also establish key ESG targets covering greenhouse gas emissions, pollutant emissions, resource recovery, etc., discuss and review the target setting and implementation by the Board of Directors, and regularly review the progress towards sustainable targets. By integrating ESG concerns into the Company's strategy, we stay alert to ESG risks and sustain competitive advantage over the long term. 14#1015 UXIN LIMITED Environmental, Social and Governance Report ABOUT UXIN 16 ESG Value Model To practice our brand slogan "Choose Uxin, Choose a Smart Lifestyle", we have established an ESG value model themed "Choose Uxin, Choose a Sustainable Future", incorporating "Green Uxin, Reputable Uxin, Considerate Uxin, Innovative Uxin and Responsible Uxin, showing our efforts in accelerating green reformation, pursuing a customer-centric culture, building a dream team, leading industry innovation and strengthening corporate governance. Through upholding the concept of sustainable development in all aspects of our business, we strive to promote the Company's high-quality development, create value for our stakeholders, and contribute to the United Nations Sustainable Development Goals. Material Issues We conducted materiality assessment through our engagement with stakeholders as well as global market trends to identify and prioritize the Company's material issues and improve our management and performance for sustainable development. Uxin comprehensively identifies material issues related to the Group's sustainable development by extensively referring to ESG-related industry standards, and benchmarking domestic and foreign peers, capital market concerns and regulatory requirements of relevant institutions, in combination with the Company's development in 2021 and the expectations of stakeholders. Here is the list of material sustainable issues we identified: 15 LAND LIFE 14 BELOW WATER 13 ACTION 16 AND STRONG PEACE, JUSTICE INSTITUTIONS PARTNERSHIPS 17 FOR THE GOALS 1 POVERTY ZERO 2 HUNGER SSS S Choose Uxin Choose a Sustainable Future 2 GOOD HEALTH 3 AND WELL-BEING Innovation-Driven Development Intelligence Technology ⚫Corporate Governance ⚫Compliance Upgrades Management Information Security Innovative Uxin Responsible Uxin Business Ethics Service Commitment NPS-focused Growth Consumption Equality Privacy Protection Reputable Uxin 12 RESPONSE AND PRODUCTION 8μ SUSTAMIS Considerate Uxin Green Uxin Green "DNA" Green Operations Diversity and Inclusion Health and Safety ·Talent Growth Employee Care Green Logistics Green Leadership Combating Climate Change DECENT WORK AND 8 ECONOMIC D IC GROWTH REDUCED 10 INEQUALITIES MOBISIKYMMKWICH АНО MERASAMICTUПЕ Uxin ESG Value Model (2021) TABLE AND CLEAN CHETRY QUALITY EDUCATION GENTER EQUALITY CLEAN WATER AND SANITATION 9 Product Responsibility • Product quality management • Product information disclosure Privacy protection and data security • Access to service Customer satisfaction management Corporate Governance • Corporate governance information • Business ethics ⚫ Risk management . Social • Health and safety ⚫ Labor management • Compliant operation • Talent training and development Employee care Environmental • Promoting the development of circular economy • Greenhouse gas emissions Opportunities in clean technology • Green reconditioning Energy conservation and emission reduction Materiality Management MATERIAL ISSUES WHAT IT MEANS TO US OUR PRACTICE CORRESPONDING CHAPTER PRODUCT QUALITY MANAGEMENT High-quality products and services are closely related to an enterprise's development and competitiveness, which also directly influences brand reputation. Operating as a 100% self- operated model with strict and complete quality control. • Provide best-in-class used vehicles through like-new reconditioning and careful inspection. 3.2 Intelligence Technology Upgrades#1117 UXIN LIMITED Environmental, Social and Governance Report PRODUCT INFORMATION DISCLOSURE Product information disclosure can help consumers better understand product information, while also an important aspect of a company's compliant management. • Provide users with "used vehicle resume" with complete used vehicle information in detail and transparent quotation on our online one-stop used vehicle purchase platform. . Upgraded the convenience and service experience of customers in viewing details through dynamic display such as inspection videos. 3.1 Innovation-driven Development 3.2 Intelligence Technology Upgrades PRIVACY PROTECTION AND DATA SECURITY It is important to effectively protect users' privacy and comply with the applicable laws when acquiring data from our customers and prevent data security risks in our company across all business operations. • Formulated the Uxin Limited Data Security Management Rules and Punishment Standards and embedded the data security management into the training for every new employee. • Formulated privacy protection policies and provided email for users to give relevant feedback or opinions. 2.4 Privacy Protection 3.3 Information Security ACCESS TO SERVICE Improvement in service accessibility helps promote consumption equality, so that more people can own used vehicles of both fair price and high quality. Transparent price and fair pricing ⚫ "Nationwide Online Purchase" business empowered by smart logistics system and extensive network • Set up offline IRCS in Xi'an and Hefei enable more people to experience our product and service 2.3 Consumption Equality CUSTOMER SATISFACTION MANAGEMENT Credibility among customers is Uxin's core element in enhancing brand value and market competitiveness while also the key driving force for long-term development. • Included NPS (Net Promoter Score) as one of the Company's assessment indicators. Hold biweekly NPS meetings to gather customers' suggestions and opinions, to proactively identify and solve their concerns and enhance customer satisfaction. • Growth of NPS for consecutive quarters. 2.1 Service Commitment 2.2 NPS-Focused Growth BUSINESS ETHICS RISK MANAGEMENT COMPLIANT OPERATION HEALTH AND SAFETY LABOR MANAGEMENT ABOUT UXIN 18 Business ethics can help regulate employee behavior, guarantee honest management, and enhance Company credibility in the global market. • Formulated the Code of Business Conduct and Ethics, Uxin Limited Red Line Management System, Uxin Limited Red and Yellow Card Management System, and Uxin Limited Management System for Employees Violations, to standardize employees' professional ethics. In 2021, there were 0 cases of corruption litigation. 6.2 Compliance Management Timely and effective identification and management of risks can help reduce the Company's operating costs and create value. • Identified and disclosed the risks of the Company's business and operations in the annual report. 6.2 Compliance Management As a Nasdaq-listed company, we must abide by the laws and regulations of the countries where we operate and the regulatory requirements of the areas where we are listed to avoid any business risks. • Adhered to the principle of good faith management, abided by various laws and regulations, and conducted regular internal audit 6.2 Compliance Management 6.3 Business Ethics For an enterprise, protection of employee health and safety is a major basic right for all staff. Safety training is conducted at employee induction. • Provided commercial insurance for employees 5.2 Health and Safety Safeguarding employees' basic rights, unblocking employees' communication channels and effective management can help ensure high efficiency and stability in operations. • Strictly implemented "equal pay for equal position" and uphold the principle of equality and non- discrimination. ⚫ Forced and child labor are prohibited in the Company 5.1 Diversity and Inclusion CORPORATE GOVERNANCE INFORMATION Standardized operation and improved corporate governance are the cornerstones of a listed company's development, and a guarantee for its investors' legitimate rights and interests. • In accordance with the regulatory requirements of the area where the Company was listed and the laws and regulations of the place where our operations were based, we established a corporate governance structure with three committees to perform their functions. • We continuously improve and adjust our organizational structure, clarified the rights and responsibilities of the management and executive, and improved various rules and regulations, to optimize our management. 6.1 Corporate Governance TALENT TRAINING AND DEVELOPMENT EMPLOYEE CARE Talent is the key element of enterprise development, and for controlling and improving service quality. . Provided employees with new- comer training, professional training, and technology sharing, etc. • Set up an open and transparent staff promotion and appraisal system Care for employees, increase their sense of belonging and happiness, and enhance team synergies. • Provided employees with welfare and gifts 5.3 Talent Growth 5.4 Employee Care#1219 UXIN LIMITED Environmental, Social and Governance Report PROMOTING THE DEVELOPMENT OF CIRCULAR ECONOMY Actively respond to relevant policies, promote the circulation rate of used vehicles, and create value for the Company. • Broke the traditional format of the used vehicle industry, and improved the transaction quantity, circulation quantity, and standardization level in the used vehicle market 4.1 Green "DNA" 4.4 Green Leadership GREENHOUSE GAS EMISSIONS Manage the carbon emissions generated by the Company's operations, improve the Company's ability to cope with climate change, and respond to national policies. • Disclosed greenhouse gas emission data of 2021 • Identified climate-related risks and opportunities OPPORTUNITIES IN CLEAN TECHNOLOGY By using cleaner energy, the Company can effectively reduce the environmental pollution caused by energy consumption, reduce energy consumption expenditure, and turn to a lower carbon development model. • Plan to conduct the photovoltaic roof project in Uxin Used Vehicle Inspection and Reconditioning Plant in Hefei GREEN RECONDITIONING Advocating green maintenance and green reconditioning can help reduce environmental pollution. • Implement 5S management to eliminate waste in reconditioning Use environmentally friendly • water-based paint and adopt fine repair through smart refurbishment process during reconditioning and repair process • Advocate the concept of "5R" environmental protection and "paperless office" ENERGY CONSERVATION AND EMISSION REDUCTION Help reduce costs and increase efficiency and improve the level environmental friendliness in the Company's operations and reduce environmental pollution. • Our logistics and delivery network have effectively reduced the empty-runs rate as well as energy consumption and air pollution 4.5 Combating Climate Change 4.5 Combating Climate Change 4.2 Green Operations AWARDS AND RECOGNITION ABOUT UXIN 20 Award 2021 Outstanding Member of China Automobile Dealers Association: Comprehensive Business Award Issuing Authority China Automobile Dealers Association 2021 China New Business Service Excellence Award 2021 Leaping Star Annual Award 2020 Best China Concept Stock Selection: Best China Concept Consumption and Service Stock 2019 Top Ten Used Vehicle Brands 2019 Business Innovation Brand of the Year JRJ.com Huawei Application Market zhitongcaijing.com China Automotive News China Business Herald 4.3 Green Logistics 2019 King of New Economy - Travel - King of Auto E-commerce 36Kr.com Based on the above results of identifying material issues, we intend to continuously review and update the list and strengthen the management and disclosure of material issues to lay a solid foundation for the Company's sustainable development. 2019 Business Innovation Award of the Year 2019 Network Marketing Award China Business Herald Baidu Knowledge Summit#1321 UXIN LIMITED Environmental, Social and Governance Report KEY PERFORMANCE Environmental Performance¹ Unit 2021 Water consumption Tons Wastewater discharge Electricity consumption Tons Tons Number of Employees by Rank Senior management Person(s) 8 Intermediate management Person(s) 11 General employees Person(s) 795 Number of Employees by Age < 23 years old Person(s) 32 32 23-26 years old Person(s) 151 6,087.03 27-30 years old Person(s) 261 31-33 years old Person(s) 179 4,869.62 > 33 years old Person(s) 191 2,572,551.16 Number of Employees by Educational Background 1,494.65 Master's degree and above Person(s) 28 28 Bachelor's degree and three-year college degree Person(s) 669 1,494.65 Below three-year college degree Person(s) 117 Level: Development and Training Person(s) 400 Total greenhouse gas emissions Tons of CO₂e Greenhouse gas emissions (Scope 1)² Tons of CO2e 0 Greenhouse gas emissions (Scope 2)³ Tons of CO2e Total greenhouse gas emission intensity4 Tons of CO2e / person 1.84 Total number of trainees Social Performance Unit 2021 Total hours of training Hours 10,200 Level: Employment Per capita training hours Hours/Person 25.5 Total employees Person(s) 814 Number of Employees Trained by Gender Number of Employees by Gender Male Person(s) 280 Male Person(s) 579 Female Person(s) 120 Female Person(s) 235 1: The time range for the collected environmental data is from March 31, 2021 to March 31, 2022, and the data are collected from Uxin Beijing Workplace, IRCS in Xi'an and Hefei; 2: There was no fuel consumption in the Company's operation, so the greenhouse gas emission (Scope 1) is 0; 3: The Company's greenhouse gas emissions (Scope 2) come from purchased electricity, and for the greenhouse gas emission factors we refer to the Notice of the Ministry of Ecology and Environment on the Management of Greenhouse Gas Emission Reports of Enterprises released by Ministry of Ecology and Environment, PRC in 2022; 4: Greenhouse gas intensity is calculated by dividing the total amount of greenhouse gas emissions by the total number of employees in of the year. Total Training Hours Completed by Each Employee by Gender Male Female Hours 9,000 Hours 1,200 ABOUT UXIN 22#1423 UXIN LIMITED Environmental, Social and Governance Report Level: Health and Safety Governance Performance Unit 2021 Level: Diversity of Directors, Supervisors and Executives Work-related accidents 3 Death toll from work-related injuries Person(s) 0 Average age in board of directors Years old 47 Female directors % 16.7 Work-related injuries lost days Days 30 Female executives % 12.5 Work-related injuries lost hours Hours 240 Level: Intellectual Property Number of patents applied Number of patents granted Number of trademarks applied Number of trademarks granted Number of copyrights applied Number of copyrights granted 0 23 1,504 1,187 8 8 Independent directors % 50.0 ABOUT UXIN 24#15Environmental, Social and Governance Report 2021 Reputable Uxin, Provider of Customer-Centric Service Service Commitment NPS-Focused Growth Consumption Equality Privacy Protection 02#1627 UXIN LIMITED Environmental, Social and Governance Report SERVICE COMMITMENT REPUTABLE UXIN, PROVIDER OF CUSTOMER-CENTRIC SERVICE 28 Deeply rooted in the used vehicle industry, we have accumulated massive industry data over the past 10 years. In 2021, Uxin has operated as an inventory-owning model with the omni-channel sales approach with commitments in improving customer experience and leading the development of new business formats in the industry. • Hassle-Free Purchase with Various Choices Our self-owned used vehicles cover more than 50 brands, including domestic used vehicles, joint venture used vehicles, used imported vehicles, and used new energy vehicles. • Customers can enjoy one-stop used vehicle purchase or trade-in with corresponding trade-in subsidies. They can pick up their newly purchased used vehicles on the same day. • Customers can take a test drive of retailing used vehicles at IRCS. The traditional used vehicle market in China has four main characteristics, which are namely a chaotic environment, uncertain used vehicle conditions, and nontransparent pricing with frequent fraudulence risks. We have taken the lead in formulating industry standards, aiming to be a disrupter in the massive and inefficient used-vehicle market. In 2021, the Company took public praise as the key to driving its development, wholeheartedly providing superior services to customers. Attractive Prices • We acquire used vehicles at prices above the market prices to benefit customers. ⚫ Uxin has won the favor of many customers who need to sell used vehicles at an attractive price. The proportion of used vehicles acquired from individual customers is gradually increasing. Service Features To meet the needs of different customers, Uxin has established an exclusive SOP₁ for customers. Through focusing on the entire cycle of customer service, we reach customers in time and effectively through refined operations in six areas, enhance customers' trust in us, and increase the conversion rate, to acquire new customers, retain old customers, and activate potential customers. Simple and Sincere • The real transaction price can be quoted with only “one-time inspection". • We don't bargain repeatedly with customers, nor do we trick any customer who chooses Uxin. Inspection and Quotation Within 30 Minutes Check Auto & Manhattan pricing engine, real-time uploading of used vehicle condition information, rapid price comparison nationwide Professional Registration Service Ownership verification, professional services, reliable procedures, time-saving and efficient Same-day Payments for Vehicles Acquired from Individuals System Interface with Banks and Real-time Payment Process A Trustworthy Server Pre-job professional service clearance certification, a clean image in working uniforms Safety Warranty • We implement strict management system standards to ensure the safety of every customer's used vehicle before title transfer. • Being given the internal information of the used vehicle industry, customers can better avoid fraud. Exclusive SOP for Customers Dedicated lifetime customer service team Composed of the company's management, pre-sales personnel and after-sales personnel ⚫Dealt with 100% of complaints and investigated all issues until resolved. Professional Advice on Repair and Maintenance ⚫ Uxin provides free service of fault diagnosis and used vehicle condition inspection for customers. • We provide relevant maintenance and repair services and suggestions, which greatly improves the service life and safety of customers' used vehicles. High-Quality Customer Service Standards • We have a complete high-quality customer service process from invitation, making a deal, to transferring ownership. • We persist in improving our service quality and providing consumers with an efficient, humane, and comfortable environment for buying experience. 1: SOP is the abbreviation of Standard Operation Procedure. One-Stop Trade-In Service Trade-in Efficiency Management System full-process agency with free registration service Service Features of Uxin Uxin has become a leader in the industry through a 100% self-owning model and superior service for customers.#1729 UXIN LIMITED Environmental, Social and Governance Report REPUTABLE UXIN, PROVIDER OF CUSTOMER-CENTRIC SERVICE 30 Rights Protection The Company has established a comprehensive customer rights and interests protection system, including return and refund policy and warranty programs, to protect the legitimate rights and interests of users and consumers. In addition, we have kept upgrading our service standards and requirements. By establishing a responsible and responsive service system, we have upgraded user experience, thus achieving our goal of "being considerate toward the customers". Value-Added Services During the whole life cycle of the customer using the used vehicle, we provide one-stop services related to used vehicle use, such as consultation, maintenance, annual inspection, insurance purchase, repair, and trade-in of used vehicles. For any questions during and after the purchase of the used vehicle, we are guaranteed to respond within 30 minutes and provide consultation service within 24 hours to ensure the high efficiency and quality in service. Service Guarantee Choosing honesty and transparency, no matter the difficulties. We have broken the traditional model of the used vehicle industry, and made the promise of "transparent price, guaranteed used vehicle condition, and used vehicle return with no strings". We try our best to make buying non-standard used vehicles as reassuring and worry-free as buying new vehicles by promoting trust and sustainable growth performance. U 7 Days Free Trial Customers can enjoy 7 days of test drive to ensure that the used vehicle meets their driving habits and needs. If they do not like the used vehicle during the period, they can return it at any time, and we will refund all the purchase fees. Personalized Service Team Vehicle delivery/licensing Vehicle using service Vehicle-related consultation STIC Quality warranty Financing and insurance solution 1 Year or 20,000 km Warranty Uxin provides customers with free warranty services within 1 year from the date of purchase or within 20,000 kilometers (whichever comes first), Uxin provides warranty services covering 15 major systems of the whole used vehicle. At Uxin, completing a used vehicle delivery does not mean the end of our service. To improve customer communication efficiency and streamline the service process, we have formulated a service responsibility system. For each customer, the Company has set up a dedicated "5V service group". Consists of professionals from the Company's sales, after-sales department and management, our personalized service team is responsible for handling customer complaints with whole-process supervision. Lifetime Refund If customers buy a used vehicle that has defects including fire damage, flood damage, odometer tampering, and major vehicle accident before being purchased, they can return the used vehicle for a full refund. From Our Customer "This is my second time buying a used vehicle at Uxin. I am very grateful to Wang Gang, a Uxin salesman, for picking me up at the railway station. The information on used vehicle condition is very transparent. I'm again very satisfied with the used vehicle purchase process and the superbly professional services" Mr. Chu Mr. Chu, from Zaozhuang, Shandong Province, bought a Volkswagen Teramont through our salesman Wang Gang in January 2021. After the used vehicle delivery, Wang Gang kept track of the customer's used vehicle use. In September 2021, this customer wanted to buy another used vehicle, so he directly contacted Wang Gang and placed an order online. He also offered to go to the Uxin Xi'an IRC to check the actual used vehicle condition in person. Wang Gang went to the railway station to meet and pick up Mr. Chu. After the in-store visit, Wang Gang helped him with his accommodation and the subsequent used vehicle delivery, providing highly attentive service to the customer.#1831 UXIN LIMITED Environmental, Social and Governance Report NPS-FOCUSED GROWTH To better practice our core value of "actively finding problems and continuously making improvements", Uxin has included NPS1 as one of its assessment indicators. With the direct participation of the Company's CEO, the CEO Office is independently responsible for the Company's overall NPS management. Therefore, the Company has realized the closed-loop management of user satisfaction to drive long-term value. CEO NPS Organizational Structure CEO Office • Attending NPS meetings Communicating with customers to deal with related problems • Making directional and executive instructions for problems • Being responsible for the Company's NPS management • NPS score survey and statistics, NPS case identification and solution, NPS improvement schemes Experience Verification Departments • Checking the work of front-line employees Supervising and assisting in dealing with customer experience related issues Service & Assistance Management Focus on NPS REPUTABLE UXIN, PROVIDER OF CUSTOMER-CENTRIC SERVICE 32 What is NPS? NPS, short for Net Promoter Score, covers customer loyalty and satisfaction. High NPS indicates customers' high loyalty, high repurchase intention and high satisfaction. As the most direct measure of customer relations, NPS is called the "ultimate question". This score has a strong positive correlation with the Company's business development. Net Promoter Score (NPS) Customer Satisfaction Relationship between NPS and customer satisfaction Customer Loyalty Since 2021, we have focused more on NPS promotion at our biweekly NPS meeting. The CEO, together with the staff of various departments, communicates with customers face to face or through online videos about their used vehicle purchasing experience to gain insight into customers' concerns. Then we provide them with the current completion progress and the expected plan and conduct an in-depth review after the meeting to resolve any issues. In doing so, Uxin manages to meet every customer's need and offer an reliable, comfortable purchase experience. By dividing the cases into used vehicle condition cases and service cases, we analyze the specific problems, record basic transaction information, detailed problem list and processing progress of the cases, analyze and extract the core problems and solutions. Core Problems Insufficient capacity of cooperative repair shops Lack of mechanisms for review, solution and improvement Low one-time repair completion rate, which brings potential safety hazards and customer dissatisfaction Failing to prevent similar cases from happening in the future Solutions NPS management structure 1: NPS (Net Promoter Score) is an index that measures the willingness of customers recommending products and/or services to others. Customers are rated on a 1-10 scale for their willingness to recommend: 9-10 is a promoter, 1-6 is a non-promoter, and 7-8 is neutral. Refining the mechanism of cooperation with repair shops Developing self-supporting ability of repair and maintenance Establishing and improving the solution and improvement mechanism Establishing and improving the reward and retribution mechanism with active initiatives Solving after-sales used vehicle condition problems through self-supporting maintenance to avoid over-maintenance while ensuring quality Used vehicles not through self-supporting maintenance can also help accumulate experience for the inspection and servicing team Example of used vehicle condition case analysis#1933 UXIN LIMITED Environmental, Social and Governance Report REPUTABLE UXIN, PROVIDER OF CUSTOMER-CENTRIC SERVICE 34 By the end of March, 2022, QUARTERLY NPS SCORE OF UXIN In addition, we periodically collect customer reviews to evaluate the quality of our service and the quality of the used vehicles we sold. We investigate their satisfaction level in sales service, logistics efficiency and used vehicle delivery service. Through closed-loop management of customer satisfaction, we grow closer to our customers and upgrade our business and service processes to empower solid growth for the Company. we had held 32 meetings invited 25 clients to attend NPS meetings 44 42 61 59 56 1. Pre-Meeting Preparation The CEO Office prepares NPS materials (case discovery, case verification, case handling and case solutions) 2. Customer Engagement The person in charge decides which customers to invite, and the subordinates or the person in charge invite the customers to attend NPS meeting Closed-loop Customer Satisfaction Management 3. NPS Meeting ⚫ The management communicates with the customers, and the CEO deals with the customer-related problems (if there are any remaining problems), and the customers share their experience with used vehicle purchase and give their suggestions • The person in charge reports the progress and planning of NPS-related matters, and then show the NPS cases that have occurred within two weeks, the current treatment plan and the fundamental solutions to the problems in the future ⚫ The CEO gives directional and executive instructions on relevant situations 5. Periodic Customer Review Periodic customer reviews are collected for an investigation on the customer satisfaction of sales, logistics and after-sales, and internal in-depth reviews are conducted for the feedback from customers 4. After-meeting Review According to the problems pro- posed at the NPS meeting, we conduct an in-depth review to seek fundamental solutions ⚫ 24 major upgrades (used vehicle condition, cost and service, etc.) • Establishment of "5V service mechanism❞ continually improved NPS to 61 2021Q1 2021Q2 2021Q3 2021Q4 2022Q1 Case: Simplifying Tedious Processes to Improve Customer Satisfaction To provide better service for customers and meet their needs in purchasing used vehicles at Uxin, the Company reimburses the toll for customers who come to buy used vehicles from far away. In September 2021, we received a customer's feedback: in the process of buying a used vehicle, the staff promised to reimburse the fare, but the reimbursement was suspended for a long time. Investigation revealed that the sales department didn't really carry out related training and that the reimbursement time limit "T+7" was too long. After discussion at the biweekly NPS meeting, the Company decided to shorten the approval process and time limit of reimbursement. The reimbursement process now is audited and initiated by the business manager and examined and approved by the head of the sales department via email directly. After the approval, reimbursement can be received. By shortening the reimbursement time, the Company has improved service efficiency and after-sales customer satisfaction. Handling Customer Complaints Closed-loop management of customer satisfaction From the perspective of consumers, Uxin keeps building high-quality and efficient communication channels and formulates reasonable and effective customer complaint handling policies. We implement the principle of "responding to customer problems within 30 minutes and giving solutions within 24 hours", to deal with various customer complaints in a timely and effective manner. Resolving issues from any customers who are dissatisfied or have low satisfaction levels with the Company's products and services through the biweekly NPS meeting with engagement from the CEO have led to these customers to becoming willing to recommend Uxin to their family and friends. With the joint efforts of all our staff, our customer satisfaction kept rising with the increasing NPS, with decrease in neutral and non-promoters and increase in promoters. Lifetime Return for Major Problems For disputes such as accidents and damage identification, we will send the used vehicle to a third-party appraisal and evaluation agency with professional appraisal qualifications or 4S shops for inspection, and the inspection report issued by the third-party agency will be used as the final judgment basis. If it is determined that the used vehicles before being purchased have major defects including fire damage, flood damage, odometer tampering, or major vehicle accidents, customers can return the used vehicle for a full refund.#2035 UXIN LIMITED Environmental, Social and Governance Report Whole-vehicle Quality Warranty For one year or 20,000 kilometers from the date when the consumer buys a used vehicle, the Company provides warranty services for 15 systems of the whole used vehicle. The after-sales vehicle assistant guides customers to drive their used vehicles to Uxin's cooperative repair shop for inspection. The after-sales vehicle After the repair, the vehicle 02 assistant makes a preliminary judgment on the fault. 06 assistant alerts the customer for pick up. 03 If any problem occurs during the use of the vehicle, the customer can report for repair through the dedicated service group or the hotline 101016088 within 24 hours. 01 04 The repair shop diagnoses the fault. Uxin's Complaint Handling Process CUSTOMER COMPLAINTS 3,373 2020 597 2021 Number of customer complaints 05 The repair shop begins repairs. REPUTABLE UXIN, PROVIDER OF CUSTOMER-CENTRIC SERVICE CONSUMPTION EQUALITY The transparent pricing policy, seamless online order process and nationwide door-to-door delivery service make buying a used vehicle easier and more cost-effective at Uxin. The Company is committed to improving service accessibility, promoting consumption equality, and therefore enabling more people to buy used vehicles in a reliable, one-stop and hassle-free way. Fair Price Used vehicles are generally more budget-friendly and cost-effective. Uxin follows the "one price without hidden costs" policy and provides customers with online price comparisons and clear quotations. Such quotations include the used vehicle price, logistics costs and handling fees on our online platform. While ensuring the quality of products and services, we also implement a fair, reasonable and competitive pricing strategy based on our massive data accumulated in the industry and Al-driven pricing system. In 2021, there were 597 complaints from Uxin used vehicle buyers Access to Service To break the geographical restrictions of used vehicle transaction, Uxin has established a unique business model empowered by the nationwide logistics network, nationwide title transfer and used vehicle registration service and industry-leading warranty programs. On our "Uxin online shopping mall", our sales consultants provide professional and responsive consulting services online. Our nationwide logistics network have significantly improved our capabilities in operating used vehicle logistics and delivery across China, ensuring fast door-to-door used vehicle delivery. In terms of offline service, we also have local professional assistance for title transfer and registration services. Therefore, we can provide more consumers with a convenient cross-regional and local used vehicle purchase experience, which further enhances our service accessibility. a drop by 82.30% compared with 2020 36#2137 UXIN LIMITED Environmental, Social and Governance Report REPUTABLE UXIN, PROVIDER OF CUSTOMER-CENTRIC SERVICE Self-operated network + Partnered capacity Multi-Point intermodal & Multimodal delivery + Supplier cooperation Last-Mile service PRIVACY PROTECTION ° 12 22 12 Self-operated Mainlines Transshipment Warehouse Distribution Points 42 Logistics convergence points 300+ Cities covered 26,000 Kilometers of mainlines 132,852 Logistics lines Hassle-Free Logistics Service Nationwide accessibility (covering 300+ cities across China) 100% Door-to-door services (Door-to-door acquisition and home delivery service) No minimum purchase for vehicle delivery (no minimum limit on the number of cars) Uxin's "Smart Logistics" Reliable Logistics Service 24 ¥ Around the clock Uxin attaches great importance to protecting consumers' personal information and private data. We strictly abide by national laws and regulations such as the Law of the PRC on the Protection of the Rights and Interests of Consumers, Data Security Law, and Measures for Determining the Illegal Collection and Use of Personal Informa- tion by Apps. We have formulated and further updated relevant service regulations, including the Privacy Policy of Uxin. Strictly adhering to the principle of ensuring security, openness and transparency, Uxin has launched policies and measures in nine aspects, such as the acquisition, transfer and management of users' personal information to effectively protect users' right to know and privacy. 01 Customers' personal information collection and usage 02 The use of cookies and similar technologies 03 Sharing, transfer and disclosure of customers' personal information 04 Customers' personal information protection 05 Management of customers' personal information 90 06 Processing minor's personal information (24 hours x 365 days) Stable transport efficiency (logistics punctuality: 95%+) Transparent transport price (online price check with no need for inquiry) 07 Global transfer of customers' personal information 08 Privacy policy updates 09 Contact us List of terms and conditions of privacy policy of Uxin 38#2239 UXIN LIMITED Environmental, Social and Governance Report REPUTABLE UXIN, PROVIDER OF CUSTOMER-CENTRIC SERVICE 40 The Guide on Privacy Protection in Uxin Used Vehicle Purchase explains the storage, use, processing and sharing of user information. We also take various safety measures to protect the user's personal information in the APP and WeChat Mini Programs & Alipay Mini Programs to prevent unauthorized access, public disclosure, use, modifi- cation or damage to personal information. Uxin Has Adopted a Professional System to Protect Users' Privacy in its Service Process Authorization Communicationend encryption setting User data desensitization ---- Call-out system, full-process recording Privacy Protection Measures prevent violating Mechanisms to laws and regulations Uxin's privacy protection measures For the privacy protection policy of users, Uxin has set up a publicly available channel through email communica- tion, to receive users' feedback on personal privacy. Customers' Rights and Interests Regarding personal information, customers can contact the developer to exercise their legal rights to check, copy, correct and delete.. If the customer deems that the developer failed to comply with the above agreement, or have other complaints and suggestions, or issues related to the protection of minors' personal informa- tion, the customer can make a complaint through WeChat, or contact the developer directly. Email: [email protected] Feedback channel The Company has equipped all customer-facing employees in Uxin's Xi'an and Hefei IRCS with dedicated mobile phones. The dedicated mobile phones are equipped with a professional recording and monitoring system, which can guarantee the security of customers' mobile phone information through system authori- ty. Our employees can only make outgoing calls to customers through the system, and the middle digits of the customers' mobile phone numbers are encrypted, so employees will not have access to the complete contact information of customers. Additionally, the outgoing calls would be fully recorded to protect the rights and interests of our customers. We are committed to respecting due process and to protecting customer privacy under applicable law.#23Environmental, Social and Governance Report 2021 Innovative Uxin, Leader in the Industry's Development Innovation-Driven Development Intelligence Technology Upgrades Information Security 03#2443 UXIN LIMITED Environmental, Social and Governance Report INNOVATION-DRIVEN DEVELOPMENT INNOVATIVE UXIN, LEADER IN THE INDUSTRY'S DEVELOPMENT 44 Intellectual Property The Company's patent-related work is rooted deeply in the R&D department, serving the early, middle and later stages of R&D in a cohesive manner. The Company strives to improve the quantity and quality of patents, driving continuous improvement in product quality through innovation. We highly respect intellectual property and have established normative documents such as the Uxin Limited Patent Award System, Uxin Limited Trademark Management Measures, Uxin Limited Management Measures for the Use of Software, Fonts and Pictures. We continuously improve our intellectual property protection management system on our business development route. Additionally, active efforts have been being made to apply and maintain patents and trademarks. Innovation is the source of the sustainable development of an enterprise. Aiming to promote the sustainable development of the used vehicle industry and focus on data and technological innovation, Uxin introduces digital technology into the quality inspection system, independently develops software and hardware, and contributes to creating a new format of digitized and standardized used vehicle industry. Our Patents Used Vehicle Acquisition Five-Year Development Strategy of the Company's Product and Technology Center Control the channels of acquiring used vehicles (acquiring used vehicles from channels such as trade-in, suppliers, auctions, personal sales, partners, etc., and control product selection and pricing) Upgrade inspection systems (adding chassis inspection, road tests, etc.) and build reconditioning systems • Closely follow the Company's business development. Establish and keep iterating the high-efficient and high-stable foreground and background systems in line with the current business scenarios • Aim at improving customers' used vehicle buying experience, revise and continuously upgrade the used vehicle inspection report • Add various payment methods, support stores scenario by using pads to display used vehicle information, shorten the delivery time after the transaction, and add services to the online platform such as assisting in electronic vehicle title transfer • Enhance customer satisfaction by tracking customers' experience and feedback on the use of Uxin App and WeChat Mini Programs & Alipay Mini Programs Used Vehicle Sales % Algorithm Patent in Customer Service: Calling Method In order to improve the efficiency of customer service response, we dynamically bind the "400" number with customer information to precisely match the user's vehicle information, and reduce the waiting time after the customer calls; Patent in Design: Tablet Computer Graphical Interfaces With the tablet computer, the vehicle pre-inspection system effectively pre-inspects the vehicle in real-time, and quickly marks the defects found in the pre-inspection, to improve the efficiency of vehicle; Patent in Hardware: Vehicle Information Collection Method The automatic VR photo shooting system can effectively improve the put-on-sale efficiency of used vehicles, optimize the experience of customers, and provide an intuitive 3D stereoscopic perception of used vehicle condition for customers. Innovative Empowerment National patent - Check Auto inspection system Our Check Auto system can implement a set of standard procedures covering more than 300 itemized steps. Following the used vehicle inspection, a used vehicle condition report can be automatically generated in the Check Auto system. Combining hardware and software inspection, through high-end equipments like German ruby probe paint film thickness gauge, smart Check Auto AR glasses, and customized Check Auto HONOR mobile phone, the system provides our sales consultant and customers with an accurate condition report to meet different business needs.#2545 UXIN LIMITED Environmental, Social and Governance Report 查客智能AR眼镜 查客定制 红宝石探头漆膜仪 德国进口: 定制查客手机 定制查客腕带 汽车故障诊断仪 检车专用手电 旅客定制 直客定制 查客定制 查客定制 INNOVATIVE UXIN, LEADER IN THE INDUSTRY'S DEVELOPMENT 46 Uxin Smart Call System includes the "400" innovative dynamic distribution technology and upgrades barrier-free communication service In the traditional call center, customer service staff can't directly obtain the used vehicle information browsed by users, resulting in low communication efficiency and users' poor service experience. The "400" dynamic allocation technology we pioneered in the industry enabled us to establish the correlation between vehicle sources and virtual numbers. The current users' concerns about used vehicle brand, used vehicle type and used vehicle condition will be collated through analysis, so that customer service staff can accurately know what used vehicle the user wants to consult, thus effectively improving our overall service quality. Statistics show that the new technology saves about 40 seconds per phone call between our staff and customers, thus improving communication efficiency. In addition, we make a forward-looking analysis of users' behavior to discover their deep-seated needs, so that we can help customers pick the ideal used vehicle. Besides, calls with hidden numbers are set up to protect users' privacy, thus avoiding users being harassed as a result of disclosing their phone numbers. When users browse the used vehicles online, they only need to click on the part of the vehicle body that they want to view, and the corresponding inspection video clips will be automatically located. In addition to detailed condition reports, we also provide customers with a "vehicle defect map" marked with all the problematic points of the used vehicle, and a used vehicle condition inspection video, so that customers can know the real used vehicle condition. In the past three years, the cumulative number of patents obtained by Uxin has been increasing. The number of patents granted in 2021 has increased by 27.8% 中网 【前风挡】 |发动机舱盖| [前底盘 2优二手车 [ 前保险杠 正在检测漆膜厚度.. 113.0毫米 右前车身 In-situ used vehicle inspection video 1701 from the previous year. 45 NUMBER OF UXIN'S PATENTS 2019 18 23 23 12 6 0 2020 2021 Patent Applied Patent Granted Key Performance in 2021 Number of patents applied 0 Number of patents granted 23 Number of trademarks applied 1,504 Number of trademarks granted 1,187 Number of copyrights applied 8 Number of copyrights granted 8#2647 UXIN LIMITED Environmental, Social and Governance Report Patent Incentives The Company has established the Patent Award System of Uxin Limited to give special awards to patent applications, to enhance the employees' engagement and enthusiasm for innovation. We also hold patent workshops with our staff to promote the patent application and protection of intellectual property, thus enhancing the Company's competitiveness through innovation. 杜绝回本 严格 INNOVATIVE UXIN, LEADER IN THE INDUSTRY'S DEVELOPMENT 48 PUMA Award Application The employee inventor submits the patent application through the Company's intellectual property department. After receiving the acceptance by the China National Intellectual Property Administration, the inventor can get the Patent Application Award granted by the Company. Once the applied patent has obtained the patent certificate, the inventor will be further granted the Patent Grant Award. XinResearch Institute Internal workshops on technology innovation Uxin established XinResearch as a research institute focused on automobile life and insights into used vehicle consumption. Our research results have been cited by authoritative media such as CCTV and People's Daily Online many times. By mining and analyzing the massive automobile real transaction data in the platform, Xin Research regularly releases reports, lists and other data products for the automobile industry, to provide scientific support for automobile consumption, industrial research, industry development and policy formulation. Obtain the acceptance notice from the National Intellectual Property Administration, PRC The National Intellectual Property Administration reviews the application Complete inventions Intellectual property Patent Application department of Uxin Award Obtain the patent certificate issued Patent Grant Award After being approved by the Company's intellectual property department, the cash compensation will be awarded to employee inventors. The patent reward for the month will be counted and filed, then reported and given in the next month. In addition, the Company regularly holds patent application training, so as to popularize patent-related knowledge among employees and encourage the R&D department to work on in-depth and multi-dimensional technological innovation. In doing this, we hope to build better patent portfolios with higher value and thus drive the innovation of the Company to the next level. Technology Workshops Upholding the spirit of innovation, the R&D department holds technology workshops, to enhance employees' innovation awareness and ability, promote technical transformation, and drive the innovation-powered development of the Company.#2749 UXIN LIMITED Environmental, Social and Governance Report INTELLIGENCE TECHNOLOGY UPGRADES INNOVATIVE UXIN, LEADER IN THE INDUSTRY'S DEVELOPMENT 50 Nationwide Online Purchase: Providing Door-to-Door Delivery Service We are the first in the industry to carry out online used vehicle purchases and provide door-to-door delivery service, making buying used vehicles online a reliable and convenient choice. Uxin's offline logistics system and delivery network is the foundation for the cross regional transaction business. To solve the pain points of cross-regional delivery of used vehicles on both supply and demand sides, Uxin has built an smart logistics network, thus starting the "express delivery era" of scattered used vehicle transportation. By implementing Al technologies in smart logistics, we can organize the delivery of used vehicles within 5 days according to customer demand, offering customers stable and fast logistics and delivery services. Nationwide Online Purchase Selecting favored used vehicle brands/series Selecting a used vehicle Browsing the ideal used vehicle As the general trend of all industries, the combination of digital and intelligent solutions can effectively improve efficiency in application use cases such as the Company's daily operations and business development. Through the intelligence technology upgrades of the supply management process, we have improved the efficiency and accuracy of quality control and thus upgrade from customer service to customer success. Searching Used Vehicles & Placing an Order on APP Ordering and paying online Filling in the buyer's information Choosing a used vehicle payment scheme Efficiency Enhancement From used vehicle sourcing to putting used vehicles on sale, digitization and intelligentization empower the procedures in our business to be conducted in a refined and streamlined way, improve the working efficiency of our staff, and optimize the customer experience. Intelligence Technology Upgrades in Our Business 01 Product selection system: Analyzing the inventory data and market demand to clarify procurement requirements Used vehicle acquisition systems (such as used vehicle sourcing system, 02 purchase system, trade-in system, etc.): Filling used vehicle information, receiving quotations, signing contracts, making payments and selecting vehicles, etc. Efficient operation supported by our self-developed logistic system 03 10 04 05 Pricing system: Al algorithm-driven pricing based on market data analysis and procurement requirements and standards Inspection system: Inspecting appearance, interior, frame, electromechanical system and chassis of used vehicles, performing road tests, recording the inspection process with glasses automatically Reconditioning system: Generating a reconditioning plan according to the inspection results, and recording the repair and maintenance data 90 06 Listing-for-sale system: Shooting the used vehicle at the professional photo studio Self-operated sales business with nationwide used vehicle procurement capability Signing the contract online Transporting the used vehicle Delivering the used vehicle and making the final payment Uxin Quality control supported by our self-built IRCS Directly reaching consumers with our nationwide sales network 120,000+ vehicles Self-operated used vehicle procurement capability 3,000,000+ vehicles Cumulative transactions 200,000+ vehicles Cumulative transport volume 300+ cities Service network coverage#2851 UXIN LIMITED Environmental, Social and Governance Report INNOVATIVE UXIN, LEADER IN THE INDUSTRY'S DEVELOPMENT 52 Facilitating Trade-in Transaction After the detailed inspection of the uploaded information of used vehicle conditions by the Check Auto inspection system and the rapid nationwide price comparison by the Manhattan digital pricing system, we can offer a quotation for the used vehicle and generate an evaluation report within 30 minutes when customers want to sell their used vehicles. Customers can check the details of the report in the WeChat Mini Programs & Alipay Mini Programs and consult online if they have any questions. The online consultant will explain in detail the principles of used vehicle evaluation and pricing, the factors influencing the price (used vehicle condition, market demand, price of the new vehicle, etc.), and the validity period of quotation. Digital Studio Uxin is the first company in China to apply VR technology to the used vehicle industry. It has upgraded the old two-dimensional vehicle viewing model to a three-dimensional vehicle viewing experience. With the used vehicle condition report, consumers' concerns about buying used vehicles have been substantially decreased, and more customers are attracted to view used vehicles online. By using the "N+VR" smart solution from our partner Baidu Al Cloud, Uxin has built a smart shooting studio integrating software and hardware. Utilizing photos of the appearance and details of the used vehicle taken in the studio, an excellent visual used vehicle display is made available for customers. 30-minute used vehicle inspection and quotation Viewing reports on WeChat Mini Programs & Alipay Mini Programs Promoting transactions The consultant inspects the used vehicle in detail, compares prices nationwide, gives the quotation and provides the evaluation report within 30 minutes. 01 The evaluation report, which is synchronized to WeChat Mini Programs & Alipay Mini Programs in real-time, contains information such as the quotation valid for the transaction within 14 days, used vehicle condition, used vehicle usage suggestions, etc. After viewing, customers can query online if there are any questions about the evaluation. The consultant explains in detail the principles of used vehicle evaluation and pricing, the factors influencing the price (used vehicle condition, market conditions, price of the new vehicle, etc.), the validity period of quotation, transaction notes etc. to promote transaction. Check Auto Inspection System & Manhattan Pricing Engine HTML5 Trade-In Evaluation Report on WeChat Mini Programs & Alipay Mini Programs Pricing System Customer Analysis System We have developed an Al algorithm-driven pricing system based on real transaction data. This system uses Al technology to capture the data from the market, rival products, and third-party platforms in real time every day, then synchronizes the data to the pricing system and updates it once a week. The system can reasonably and accurately price the used vehicle according to massive transaction price data with pricing error ≤5%, a breakthrough in the sector. 参考数据 HD: 1281 新车提车价:39.64万元 车型参数配置:奥迪 奥迪Q5 2018款 2.0T 自动 40TFSI典藏版进取型 平台价格参考:奥迪 奥迪Q5 2018款 2.0T 自动 40TFSI典藏版进取型 友商参考:奥迪 奥迪Q5 2018款 2.0T 自动40TFSI典藏版进取型 -- 优信-合肥-已售 ·优信-西安-在售 优信-合肥-在售 $50 外观膜 车型名称 里程 注册日期: 销售价 th 数 奥迪 奥迪Q5 2018款 2.0T 自动 123500 70998642 灰色 40TFSAs 0000-00- 1 10万元 里 00 26983515 奥迪奥迪Q5 2017款2.0T 自动 40TFSI 2022-01- 黑色 10公里 3 SPlus 28 奥迪 奥迪Q5 2012款 2.0T 自动 TFSI 20000 2021-03- 54701902 黑色 2 A T 25 05 2018 2.0T 40TFS 10000%2 2020-08- 41419414 黑色 1 藏规技术型 # 12 奥迪Q5 2018款2.0T 自动 40TFSI典 2020-08- 35612124 黑色 100公里 藏版技术型 12 ཨྰ་ཨྰ་ཨྰ་ཨྰ་སྐ་སྐསྣྲོ 33.0075 元 销售日期 35.00万 2022-03- # 25 17.0075 2021-05- 18 17.0075 2021-11- R 24 奥迪 奥迪Q5 2018款 2.0T 自动 7000022 0000-00- 12.307 28076092 白色 40TFSIAMSH # 00 元 Al-driven pricing system XR m Professional studio In-situ photo shot from the studio (Oxin.com 版权所有 By rotating the vehicle bottom with a single-chip micro-computer, the whole picture of the inside and outside of the used vehicle can be recorded completely. Automatically spliced in milliseconds by Al, the photos from all angles form a 360-degree panoramic image. And used vehicle defects can be identified. The whole process automated, thus enhancing the efficiency of used vehicle inspection. Photos being taken, spliced, and uploaded within only 7 minutes 7 minutes#2953 UXIN LIMITED Environmental, Social and Governance Report INNOVATIVE UXIN, LEADER IN THE INDUSTRY'S DEVELOPMENT 54 1 Setting used vehicle selection category according to the new vehicle sales market and our after-sales customer satisfaction. 2 Updating the blacklist of used vehicles according to the annual used vehicle brand exposure on Consumer Rights Day. 2 Checking whether the used vehicles have the "4 major defects" and completing vehicle registration and other procedures 1 Confirming targeted procurement list according to the selection list, black and white lists, consumers' preferences. Quality Assurance Quality control is the key factor influencing the sale of used vehicles. We broaden and optimize our used vehicle procurement channels to improve procurement efficiency; we have built our own IRCS, established quality management systems, introduced advanced software and hardware equipments for fine reconditioning. We ensure all the used vehicles listed for sale have passed ISO9001 quality management system certification, thus providing customers with high-quality used vehicles. 3 Quality Management System Identification of Each Function's Responsibilities in IRCS Inspection Quality Standards Job Responsibilities of Inspectors Reconditioning Quality Standards 4 Conducting preliminary used vehicle selection based on our real-time inventory and the used vehicle popularity in the retail Using the "selection funnel" to choose used vehicles according to the required conditions for warehousing set by the operating The comprehensive selection process of used vehicles 3 Entering the pricing center for quotation. Inspection It clarifies the main job responsibilities, performance manage- ment criteria and work requirements of each functional position. It standardizes procedures, standards and precautions for each module in the whole process from the vehicle reception area to inspection completion. It clarifies responsibilities for each position of dynamic inspector, static inspector and merchant inspector. There are repair and maintenance quality standards concerning 10 aspects: panel, power assembly engine room, gearbox/equational box/clutch, braking system, front and rear-wheel drive/steering system, fuel system, cooling system, air conditioning system, electrical system and road tests. Professional Inspection Every used vehicle for retail must be inspected in Uxin's IRC. We have a professional team and advanced equipment to provide inspection and reconditioning services for used vehicles. We use advanced technologies that have won 12 national patents to diagnose used vehicles including their engine systems, chassis, electrical systems, vehicle bodies, etc. We have established a standardized reconditioning and maintenance process and streamlined the assembly line operations to ensure product quality. 001 ISO 9001 Careful Selection of Used Vehicles We operated a 100% self-owned inventory of used vehicles business model. All our used vehicles must undergo a strict selection process before being sold. The selection team will update the blacklist of used vehicles based on the public criticisms of the used vehicle brands at the annual "315 Evening Gala". Each used vehicle must pass integrated professional inspection, maintenance and re-inspection to meet the required quality standards before listing for sale. 12 Inspection Patents We have obtained 12 national patent authorizations of inspection ISO International Certification Standard ISO9001 quality certification system Extensive Inspection Experience We have inspected more than 5 million used vehicles Self-owned Retail Vehicles All of our used vehicles are self-owned and have undergone strict quality control#3055 UXIN LIMITED Environmental, Social and Governance Report Standardized Reconditioning Through reconditioning, we turn the used vehicles from non-standard products into quasi-standard products, so as to control product quality and increase their added value. At the same time, we conduct overall re-inspections and re-evaluations during this procedure to increase the transparency of the used vehicle condition and reduce the after-sales complaints and customers claims. High Quality Fast Process Low Cost • Professional team and reconditioning equipment • Standardized . reconditioning process • World-renowned products • Assembly line workshops Professional components supply chain and inventory management system • 5S management to eliminate waste Uxin Reconditioning Operation and Management Principles INNOVATIVE UXIN, LEADER IN THE INDUSTRY'S DEVELOPMENT Professional Equipment 1. Professional inspection glasses: Used in the inspection of all used vehicles, they can completely record all the inspection processes and provide users with clear and transparent inspection results. 2. Lifting machines: 2.Used in the inspection process, it facilitates maintenance personnel's chassis detection, and is also convenient for customers to check the chassis. 3. Industrial endoscopes: Used for used vehicle chassis inspection, it can check whether there are faults, repair traces, oil leakage, etc. in the frame and other parts, to provide the customer with an all-round inspection report. 4. Test tracks: 4.Every used vehicle at Uxin must undergo a dynamic road test in a professional field. Before the used vehicle is listed for sale, it will be tested from the user's point of view to provide users with a satisfying used vehicle experience when driving. 5. Anti-theft stickers: They are attached to screws or detachable parts that must be torn off before the screws and components are taken down, so as to prevent someone from disassembling the used vehicle without authorization. 6. Key cabinet: It is used to intelligently manage all the used vehicle keys. With its door being scanned to open, it records the information of used vehicle users, to support the digitized management. Re-inspection before being listed for sale Fine washing and maintenance 56#3157 UXIN LIMITED Environmental, Social and Governance Report INFORMATION SECURITY The global trend of digitization, networking and intelligence brings innovation opportunities to the industry, and new challenges to network security management. Strictly abiding by the Personal Information Protection Law of the People's Republic of China, Cyber Security Law, Several Provisions of Automobile Data Security Management (for Trial Implementation) and other relevant laws and regulations, Uxin has established rules and regulations such as Uxin Limited Data Security Management Rules and Punishment Standards and Uxin Limited Engineering Management Implementation Rules. Such rules cover the security redlines, basic security, data security, product security, third-party cooperation security, etc., so as to strengthen security defense capabilities and promote the co-construction of the digital age. Cybersecurity Protection Uxin has actively responded to information security and personal information protection supervision. In 2021, the Uxin Used Vehicle System passed the Level Three filing of the national information security level protection and obtained the filing certificate. 信息系统安全等级保护 备案证明 依据《信息安全等级保护管理办法》的有关 规定, 优轩(北京)信息科技有限公司 单位 的: 第三级. 优信二手车 系统 予以备案。 证书编号:11010513269-21001 中华人民共和国公安部监制 Information system security certificate 备案公安机关公章 2021年8月23日 专用章 INNOVATIVE UXIN, LEADER IN THE INDUSTRY'S DEVELOPMENT 58 Data Security Management Data Security Management Rules and Punishment Standards of Uxin Limited has established the data security management rules, instituting secure management of confidential information such as data related to the Company's business processes. Also, data security training sessions are conducted for new employees to strengthen their awareness of data security and reduce the Company's data security risks.#32Environmental, Social and Governance Report 2021 Green Uxin, Runner Towards a Zero-Carbon Future Green "DNA" Green Operations Green Logistics Green Leadership Combating Climate Change 04#3361 UXIN LIMITED Environmental, Social and Governance Report GREEN "DNA" China's 14th Five-Year Plan for the Development of the Circular Economy encourages the "Internet + Second-hand Product" model to promote the transaction and circulation of used vehicles on the market. This has brought about new opportunities for the Company's development. We guarantee the environmental compliance of used vehicle products, strive to improve the standardization and efficiency of used vehicle transactions, and extend the life cycle of automobiles, promote the recycling of resources, so as to effectively drive the green development of the industry. GREEN UXIN, RUNNER TOWARDS A ZERO-CARBON FUTURE 62 Used New Energy Vehicles As the government vigorously advocates green consumption and promotes the development of the new energy vehicle industry, the number of new energy vehicles on the market is increasing rapidly, which also brings new development opportunities to the aftermarket of new energy vehicles. In 2021, the Company has started its used new energy vehicle business and have gradually established the capabilities of acquisition, inspection and reconditioning of used new energy vehicles. This has enriched consumers' choices, promoted the transformation into green consumption, and brought the Company more opportunities in the new energy vehicle era. Starting Used New Energy Vehicle Business Promoting the Development of Circular Economy The circular economy is a systems solution framework that tackles global challenges like climate change, biodiversity loss, waste, and pollution. It is beneficial to move away from the "take-make-dispose" traditional linear model to a circular mode of production and consumption, contributing to growing prosperity, jobs, and resilience while cutting greenhouse gas emissions, waste, and pollution. In the automobile industry, the carbon emissions from manufacturing a new vehicle account for more than one-third of that vehicle's full life-cycle carbon emissions. Improving the circulation of used vehicles is helpful in prolonging the life cycle of automobiles and is an important part of the goal of establishing a resource-recycling industrial system. Focusing on the green "DNA" of used vehicles, Uxin is committed to providing consumers with high-quality used vehicles, making buying used vehicles a new lifestyle. We also strive to reduce the consumption of materials, energy and emissions in the process of reconditioning, thus promoting the development of the circular economy and contributing to a better future. On the main page of the Uxin APP and WeChat Mini Programs & Alipay Mini Programs, the section on new energy vehicles has launched, offering a variety of choices of used new energy vehicles, including Tesla, NIO and Li,etc., to customers. Inventory Structure Design We ensure the proportion of new energy vehicles' procurement by inventory design, and source used new energy vehicles according to their reputa- tion in the new vehicle market and customer preferences. In cooperation with NIO, we are connecting our sales systems for its officially repurchased used vehicles and increasing the circulation rate of used new energy vehicles in the market through such transactions. Environmental Compliance of Used Vehicles To improve atmospheric environmental quality, the government has become increasingly strict in the supervision of environmental compliance of used vehicles. We carry out strict emission testing on our used vehicles and establish a complete profile of inspection information for each self-owned used vehicle, guaranteeing the environmental compliance of self-owned used vehicles effectively, so as to avoid the pollution transfer caused by vehicles with excessive emissions. Online Thematic Recommendation Strategic Partnerships#3463 UXIN LIMITED Environmental, Social and Governance Report Professional Battery Inspection In addition to more than 300 checkpoints on appearance, interior, function, driving condition, etc., a comprehensive inspection service of battery functions is also required in the inspection of new energy electric vehicles. As the battery pack of new energy vehicles is of high voltage, the inspection needs specialists and professional equipment to ensure no impact on the health and safety of the batteries. As a leading used vehicle enterprise in China, we have significant advantages in talent reserve and inspection automation. Efficient Valuation Algorithm GREEN UXIN, RUNNER TOWARDS A ZERO-CARBON FUTURE 64 GREEN OPERATIONS In the reconditioning of used vehicle products, while ensuring the environmental compliance of each used vehicle, we uphold the principle of less waste, even "not wasting a piece of paper." Uxin's green operation concept runs through the whole process and all aspects of the Company's operation and management, trying every means to promote green operations, improve resource utilizations and reduce environmental pollutions. In addition to the difficulty in battery performance inspection, the key factors hindering the transaction of used new energy vehicles include the rapid decline of their residual value, the difficulty in valuation, and the large gap in price expectations between buyers and sellers. Relying on our long-accumulated big data and proprietary technology in the used vehicle industry, Uxin has established the valuation algorithm model. In addition, we have optimal vehicle sources from across China. Therefore, the Company has a significant advantage in vehicle pricing. The Company's entrance into the new energy vehicle business is expected to lead the way to get out of the dilemma of "being easy to buy but difficult to resell" in the industry. Green Reconditioning In the used vehicle reconditioning process, Uxin imple- ments the "5S" management, that is, SEIRI, SEITON, SEISO, SEIKETSU and SHITSUKE, so as to maintain an orderly and clean production environment and improve work efficiency. This also helps to optimize resource allocation to a certain extent, thus reducing cost and waste. Smart Refurbishment 4 SEIKETSU (Standardization) SEIRI (Organization) 3 SEISO (Cleaning) 5 SHITSUKE (Discipline and Training) SEITON 2 (Neatness) 5S Management In the maintenance process, we adopted smart refurbishment technologies to make fine repairs on small areas for damaged vehicles, which are more accurate, efficient and environmentally friendly. For example, we use a traceless repair process instead of the traditional paint spraying for dents on the vehicle body. As such, dents that have not hurt the paint surface will be leveled by the stretching and levering process. For faulty vehicle headlights, repair will be the preferred option instead of direct change of headlight assemblies. Therefore, there would be less material consumption and environment pollution during the process of repair and maintenance, contributing to the green development of reconditioning service of automobiles.#3565 UXIN LIMITED Environmental, Social and Governance Report GREEN UXIN, RUNNER TOWARDS A ZERO-CARBON FUTURE 66 Environmental-Friendly Water Paint Uxin uses environmentally friendly water paint in the reconditioning process of used vehicles. Compared with traditional solvent-based paint, water paint with better performance can reduce the emission of VOCs¹ in used vehicle repair and painting, making the operation of our inspection and reconditioning center more sustainable. Green Office Upholding the corporate value of "not wasting a piece of paper", the Company implements the "5R" principle, that is reduce, reuse, recycle, repair and reject, advocating a low-carbon and environmental-friendly working style in our operation. Reducing Pollution and Recycling In IRCS, we recycle used tires, engine oil and other materials to reduce environmental pollution in the process of reconditioning and enhance the utilization rate of recycling resources. Reduce Generating less waste from daily operations Reuse Finding ways to reuse things instead of throwing them away Reject Reduce 5R Repair Repairing devices or parts for reuse Recycle Reuse Repair Recycle Using recycled products Reject Rejecting disposable products 5R Principle S SE 杜绝浪费 |杜绝细心 |杜绝经济 【杜绝假敞 要求 要 节约 要求 认真 【严肃 勤奋 1: VOCs means volatile organic compounds and are found in a wide variety of products such as solvent-based paints, printing inks, many consumer products, organic solvents and petroleum products. As one of the major air pollutants in China, VOCs are toxic, irritating, teratogenic and carcinogenic. "No Waste" posters in the conference room#3667 UXIN LIMITED Environmental, Social and Governance Report We use an OA system to handle the employees' daily affairs to effectively reduce the use of paper, thus digitally empowering our transformation into a paperless office. With operation in different cities, Uxin uses multiple digital office patterns such as video conference and remote collaboration, leading to lower energy consumption and higher efficiency, to help to build a more environment-friendly operation. We are well aware that small initiatives can drive big changes. Each paperless office initiative helps reduce the number of trees cut down on earth, shaping a greener and better future. GREEN LOGISTICS 优信 OA办公系统 首页 首页 我的工作台 ● 发起流程 郭思言 下载中心 帮助中心 退出 我的申请 我的待办 我的考勤 我的快递 13 0 行政中心 送 陶 取 姓 名:郭思言 邮 箱:[email protected] 员工编号:E104674 所属公司:优舫(北京)信息科技有限公司 ● 会议室 立优信体检 6 积分商城 员工报销 合同申请 请休假 新公司设立 请输入查询标题 查询 味 羊 规章制度 模版下载 帮助文档 发起流程 备用金申请 个人垫款 印章证照 诉讼申请 优信集团对内宣传管理制度 优信集团招标采购流程 2018-05-29 2018-05-14 优信集团采购管理制度 2018-05-14 优信集团员工亲属回避管理办法 2017-10-13 离职会签申请 银行账户申请 支付异常申请 公司变更 优信集团资产管理制度 2017-10-11 OA office system GREEN UXIN, RUNNER TOWARDS A ZERO-CARBON FUTURE 68 Our delivery capacity is essential to improving our financial performance and strengthening our service quality. The Company leverages its industry-leading logistics routing system to ensure fast door-to-door used vehicle delivery and address key pain points in logistics capacity. The innovative system further empowers our low-carbon supply chain while upgrading our “differentiated” service. Self-developed Algorithm Promoting Green Logistics Matching the existing delivery capacity and fragmented logistics orders is difficult in the logistics of large, slow-moving consumer goods represented mainly by used vehicles. Our smart logistics system, based on the Company's vehicle-cargo matching algorithm, combines the maximum flow algorithm with its own business data to maximize delivery capacity and reduce empty runs and redundancy. In addition, the algorithm can also be extended to similar business scenarios, effectively promoting the development of green transportation. The way Uxin solves fragmented demands • We establish “self-run main lines" to cover the main areas. • We also establish "joint branch lines" and logistics hubs to cover and support the non-mainline areas. • We work on mainline planning, routing design and organizing capacity through innovative methods. 口 Pengfei System Yufeng System Big data Logistic model-Al OMS･TMS·WMS Logistics Monitoring Center Data and Business Center#3769 UXIN LIMITED Environmental, Social and Governance Report -------- Easier to meet the actual needs of customers and overcome challenges of transportation capacity 1. Aggregation Establishing "city-level operation stations" covering a radius of 50-100km Achieving aggregation in a larger radius range 3. Arrival Relying on "city-level operation stations" to distribute to the radius of 50-100 KM Delivering used vehicles to customers across China 2. Transport Setting up a "multi-point intermodal" transport line/network that runs through multiple "operation stations" Bulk transport / Fixed lines to achieve low cost 4. Service "Last 1 kilometer" service, in-transit feedback, compensation for delayed arrival and other services Achieving "differentiated" service upgrade Industry-Leading Logistic Routing System GREEN UXIN, RUNNER TOWARDS A ZERO-CARBON FUTURE GREEN LEADERSHIP While building its solid advantages in its business, the Company actively encourages various parties to jointly promote industry innovation and green development. We actively participate in industry conferences and forums to strengthen partnerships with various parties. We hope to work together with peers, leading the way forward in the industry with initiatives, innovations, and practices that prioritize the environment's wellbeing. National Big Data Alliance of New Energy Vehicles Used new energy vehicles are an important part of the new energy automobile industry chain. Some measures can promote the orderly and healthy development of the used new energy vehicle market in its initial development stage, including encouraging vehicle companies to upload and share with the consumers the data of batteries, electronic controls, motors and OTA¹ upgrades of new energy vehicles, strengthening market supervision, accelerating the establishment of the value evaluation mechanisms and standard systems of used new energy vehicles, and building the whole chain traceability system. In February 2022, Uxin joined the National Big Data Alliance of New Energy Vehicles and served as the vice-chairman of the alliance. As the alliance's only member engaged in the used new energy vehicles, we aim to actively advance the strategic cooperation and laboratory cooperation of the alliance, promote the open sharing of resources and build a virtuous circle ecology of the new energy vehicle industry with mutual promotions of supply and demand and of production and sales. NDANEV 1: OTA (Over The Air technology) refers to the technology of remotely managing the data of mobile terminal equipment and SIM card through the air interface of mobile communication, and updating the software in the automotive microcontroller unit. It is nowadays a necessary upgrade function in the new energy automobile. 70#3871 UXIN LIMITED Environmental, Social and Governance Report Carbon Peaking and Carbon Neutrality China Tour In January 2022, Uxin participated in the "Carbon Peaking and Carbon Neutrality China Tour" hosted by the China International Communications Group Center for Asia and Pacific. The event aimed to drive the development of low-carbon industries through innovation, popularize green production and lifestyle, strengthen the public awareness of ecological civilization and low carbon, and promote the national strategy of carbon peaking and carbon neutrality. CO2 GREEN UXIN, RUNNER TOWARDS A ZERO-CARBON FUTURE COMBATING CLIMATE CHANGE The Task Force on Climate-related Financial Disclosures (TCFD), established by the Financial Stability Board (FSB), released the Recommendations on Climate-related Financial Information Disclosures in 2017. TCFD has also introduced a voluntary disclosure framework and developed recommendations for climate-related financial disclosures. The framework was designed to help all kinds of organizations, including businesses, investors and decision-makers, to secure information that is helpful for their decision-making or potentially influential to identify- ing the climate-related risks and financing opportunities in their transition towards achieving low-carbon economy targets. Sheet-metal Spray Paint Center Exchange Meeting In February 2022, the Company participated in the exchange meeting hosted by MIT Limited on the construction and operation management of used vehicle dealer groups' sheet-metal spray paint center. With about one hundred vehicle dealer groups from all over China, we exchanged the experience, practical operation and improvement methods of controlling VOCs emissions to promote the industry's green development. Governance Strategy Risk Management Metrics and Targets Governance The organization's governance around climate-related risks and opportunities Strategy The actual and potential impacts of climate-related risks and opportunities on the organization's businesses, strategy, and financial planning Risk Management The processes used by the organization to identify, assess, and manage climate-related risks Metrics and Targets The metrics and targets used to assess and manage relevant climate-related risks and opportunities 200 Four elements of TCFD climate-related information disclosures According to the Recommendations on Climate-related Financial Information Disclosures, we make every possible effort to enhance the Company's risk responsibility and grasp the market opportunities relating to climate change, by regularly identifying and evaluating climate-related risks and opportunities and analyzing the impact of climate risks on the Company's strategies, risk management, business layout and financial performance. 72#3973 UXIN LIMITED Environmental, Social and Governance Report GREEN UXIN, RUNNER TOWARDS A ZERO-CARBON FUTURE 74 TCFD recommendations Uxin's response Governance: Disclose the organization's governance around climate-related risks and opportunities. Describe the board's oversight of climate- related risks and opportunities. Under the supervision and guidance of the board of directors, the Company has integrated ESG development concepts into its strategic planning and implemented it into its daily operation and management. Risk management: Disclose how the organization identifies, assesses, and manages climate-related risks. Describe the organization's processes for identifying and assessing climate-related risks. The Company is planning to incorporate non-financial factors such as environment, society and corporate governance into its risk evaluation system. Describe management's role in assessing and managing climate-related risks and opportunities. The senior management of the Company has identified the climate-related risks and opportunities, planned and regularly assessed the Company's response to climate risks. Strategy: Disclose the actual and potential impacts of climate-related risks and opportunities on the organization's businesses, strategy, and financial planning where such information is material. Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term. The Company has identified the risks and opportunities relating to environmental factors, including climate change: Physical risks: ⚫ Extreme weather caused by climate change (for example, rainstorm, hurricane, etc.) may affect the Company's continuous operations and assets; • Extreme weather may result in longer inventory turnover time of the Company's used vehicles, thus increasing its operating cost and affecting its operating profits; Transition risks: • Policy changes may bring additional operating costs to the Company; • Carbon emissions generated by operations cannot be effectively controlled or reduced. Opportunities: In the context of China's carbon peak and carbon neutrality goals and related favorable policies of used vehicles, investors might be more interested in investing in industries and projects that can effectively combat climate change; • Use of renewable energy can help reduce operating costs. Describe the impact of climate-related risks and opportunities on the organization's businesses, strategy, and financial planning. The Company has identified and integrated climate-related risks and opportunities into its future development strategies. In response to the national policy's call of, we have established sustainable supply chains, reduced the climate-related risks in industrial chain operation and management, and endeavored to accelerate the transformation toward low-carbon operations. Describe the resilience of the organization's strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario. The Company has planned to introduce assessment tools for climate-related risks and opportunities to analyze the impact of different scenarios on its strategy, business and financial performance, and will use them as the basis for making business decisions. Describe the organization's processes for managing climate-related risks. The Company is planning to conduct regular management of ESG risks to identify and effectively manage ESG risks in a timely manner. Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization's overall risk management. In the top-level design of its risk management system, the Company is planning to integrate ESG risks into its overall risk management system. Under the supervision of the board of directors, the Company regularly held risk management meetings to review Company's status and policies in risk management. We will incorporate ESG factors into our investment analysis and decision-making process to establish responsible investment policies. Metrics and targets: Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material. Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process. The Company has used the following metrics when evaluating climate-related risks and opportunities: • Scope 2 greenhouse gas emissions: 1,494.65 tCO2e ⚫ Per capita greenhouse gas emissions: 1.84 tCO₂e/person The Company will further break down relevant environmental indicators to achieve more effective climate change and ESG governance. Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks. The Company has regularly disclosed Scope 2 greenhouse gas emissions, per capita greenhouse gas emissions and climate-related risks in its ESG reports. Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets. The Company has disclosed its achievement and plan for addressing climate-related issues in fiscal year 2022 as it identified and captured opportunities presented by climate change. Uxin will continue to make an effort to disclose climate-related targets and implementation plans. Responding to TCFD recommendations#4075 UXIN LIMITED Environmental, Social and Governance Report GREEN UXIN, RUNNER TOWARDS A ZERO-CARBON FUTURE 76 Opportunities in Clean Technology The fossil-dominated energy consumption structure has posed severe challenges, such as environmental pollution and climate change. Clean energy plays a crucial role in the current energy transition. To actively participate in the energy transformation, we are building a photovoltaic roof project in Uxin Smart Used Vehicle Inspection and Reconditioning Plant in Hefei. Using cleaner energy has become part of our commitment to contribute to the sustainable development goal and the zero-carbon future. With a total investment of RMB 2.5 billion and a total planned construction area of about 470,000 m², the Uxin Used Vehicle Inspection and Reconditioning Plant, located in Changfeng County of Hefei City, Anhui Province, is expect- ed to be the world's largest and most advanced used vehicle re-manufacturing plant. A distributed photovoltaic power project will be set up on the roofs of the buildings at the inspection and reconditioning center in the plant. The total available roof area is about 80,000 m² with a utilization rate of up to 70%. The project is now under construction and is expected to be completed by the end of December 2023. This plant will greatly enhance the development of the upstream and downstream industries of automobile and related service industries in the region. It will also promote the use of renewable energy and reduce carbon emissions to help achieve sustainable economic and social development targets as well as the national carbon peaking and carbon neutrality goals. Key Performance Once the photovoltaic project is completed, its installed capacity is estimated to reach about 8 MW, with annual power generation of 8,000,000 kWh, saving 2,560 tons of standard coal and reducing emissions of 6,707 tons of carbon dioxide and 2,176 tons of dust. 优信#41Environmental, Social and Governance Report 2021 Considerate Uxin, Builder for a Dream Team Diversity and Inclusion Health and Safety Talent Growth Employee Care 05#4279 UXIN LIMITED Environmental, Social and Governance Report DIVERSITY AND INCLUSION HEALTH AND SAFETY CONSIDERATE UXIN, BUILDER FOR A DREAM TEAM We are well aware that employees are the cornerstone of an excellent team, and our development and success are driven by the dedication of all employees. At Uxin, employees' fundamental rights are fully protected under the requirements of the Labor Law of the People's Republic of China. We also comply with employment laws and prevent child or forced labor. Upholding the principles of fairness, justice, and equal pay for the equal work, the Company ensures that there is no discrimination based on age, gender, disability and religious belief. We respect and care for every employee of Uxin, and continuously endeavor to create an equal and inclusive working environment for our employees. We strictly abide by the Labor Law of the People's Republic of China, the Work Safety Law of the People's Repub- lic of China, the Fire Control Law of the People's Republic of China and the Law of the People's Republic of China on Prevention and Control of Occupational Diseases. Valuing employees' health and work safety, the Company has formulated the Safety and Fire Control Management System of Exhibition Halls, and constantly improved the staff training in safety. EMPLOYEES BY GENDER 28.9% Female Male 71.1% EMPLOYEES BY AGE 261 EMPLOYEES BY EDUCATIONAL BACKGROUND 14.4% Master's degree and above 3.4% 82.2% Bachelor's degree and three-year college degree Below three-year college degree Key Performance in 2021 191 Total number of employees 814 Number of ethnic minority employees 17 Number of disabled employees 4 32 151 179 alu <23 23-26 27-30 31-33 >33 Years Old Safety Training Work safety of an enterprise can affect its employees' health, peace of their families, corporate development and even social stability. Uxin provides safety training for every employee, which covers basic knowledge of safety management, safety skills and personal safety awareness to enhance employees' safety awareness and knowledge reserve. 安全培训 新员工入职安全培训 安全管理基础知识 从业人员的权利和义务 知情权 了解其作业场所和工作岗位存在的 危险因素,防范措施及事故应急措施 法律法规知识 建议权 对本单位的安全工作提出建议 票 批评、控告权对本单位安 全生产工作中存在的问题提出 批评、检举、控告 拒绝违章权 有权拒 绝违章指挥和強令 冒险 作业 索赔权 因安全事故受到损害的,除享有工伤社 会保险外,有权向本单位提出赔偿要求 从业人员权利, 紧急避险权发现直接危及 人身安全的紧急情况时,有权 停止作业或者在采取可能的应 急措施后撤离作业场所 生产经营单位不得因从业人员在前款③④⑤而降 低其工资、福利等待遇或者解除与其订立的劳动 合同 80#4381 UXIN LIMITED Environmental, Social and Governance Report Response to COVID-19 During the COVID-19 pandemic, we have issued the Epidemic Emergency Plan of Uxin Limited in a timely manner to protect the health of employees. Upholding the principle of "prevention in the first place and integrating prevention with control," and "people-oriented and valuing people's lives most," we set up an emergency command team to protect employees' health while ensuring the Company's normal operations. TALENT GROWTH CONSIDERATE UXIN, BUILDER FOR A DREAM TEAM 82 • Carrying out comprehensive cleaning and disinfection every day and partial disinfection 2-3 times per day • Encouraging employees to have meals separately and at different times In-store Prevention • Strictly carrying out health code checks and temperature examination An excellent enterprise can't be really excellent without excellent employees and teams. We attach great importance to talent cultivation and growth. Through frequent employee training and activities, the Company provides a broad platform for employees' growth, helping them realize their personal values. We strive to build a solid dream team to drive the Company's high-quality development. Prevention Measures Social Pandemic Tracking Vaccination Tracking • • Regularly performing nucleic acid testing for employees of long-term service suppliers • Daily announcing epidemic update in the Company's WeCom group • • Checking whether there are employees who live in communities with positive cases according to the employee files Acquiring employees' travel plan information and national epidemic information during holidays Making work-from-home plans according to the pandemic severity ⚫ Monthly acquiring employees' vaccination status Encouraging employees to get vaccinated Promotion Cherishing talents and valuing employee growth, Uxin strives to build a positive working environment of healthy competition. The Company has formulated various systems, including the Promotion Management System, Quarterly Performance Management System of Uxin Limited and Reward and the Punishment Management System of Uxin Limited, to standardize the performance evaluation and strengthen a transparent and fair working atmosphere with clear rewards and punishment rules. Commendation D In December 2021, some of our employees were quarantined in hotels or at home due to the abrupt Covid lockdown in Xi'an. In response to this unexpected situation, our CEO quickly gave the maximum support to these employees. The Company paid the hotel expenses of employees, launched the online learning platform in time, and paid employees' salaries regularly. In doing so, we ensured the normal life of our employees during the epidemic. Bonuses and gifts Rewards For Our Employees ----- Awarding an honorary title Promotion#4483 UXIN LIMITED Environmental, Social and Governance Report 10月請2 BAR PA 2 T Performance evaluation standards 2014 2014 Commendation conference S A B C Evaluation grade Far exceed target Exceed target Reach target Below target Far below target Scoring range X>120 100<X≤20 80<X≤100 60<X≤80 0<X≤60 In addition, we organize interviews with our employees within 5 days after the performance evaluation, in order to listen to their opinions and help them solve difficulties in their work, so as to support their career goals. Internal Recommendation The Company has formulated the Management System for Internally Recommending Talents. To recruit high-quality talents, we reward the recommenders, while enhancing team dynamics. Candidates who meet the job requirements go through the hiring process based on relevant regulations, and for those unqualified candidates, the recruiter informs the recommender and the recommended person through the recruitment system within 1 week after the interview. 2 .bl If there is no suitable position for the time being, the resume of the recommended person will be stored in the talent pool of our recruitment system, as a reserve talent with priority. 1 Within 2 working days after receiving the recommended resumes, the HR Center will screen the candidates' resumes, and send them to relevant interviewers for resume evaluation and interview arrangement. 3 For those who meet the requirements of other positions, the recruiter can recommend them to other departments. If the recommended person is successfully employed, it is a successful recommendation. Internal recommendation process 4 CONSIDERATE UXIN, BUILDER FOR A DREAM TEAM 84 Employee Training Valuing talent cultivation, Uxin is committed to building professional teams. We actively carry out various types of training for our employees, including newcomer training, meetings with the CEO ("DK Face to Face"), safety training, management system training and departmental professional training, to help them understand our corporate culture and values and improve their professional ability. CS 优信 U新人 开学典礼 优 / 信 / 欢 / 迎 / 您 ERS (11-201 8 W ADAN PHRFA AXSBERES DK Face to Face Induction Training for New Employees Uxin provides every new employee with induction training, mainly in company culture, code of conduct, safety and welfare. The Company also carries out induction training tests and uses questionnaires to confirm the effectiveness of each training. In addition, for front-line employees, we specially carry out training in etiquette and hospitality to standardize service criteria and ensure the overall service quality.#4585 UXIN LIMITED Environmental, Social and Governance Report Ò 优信 新员工培训 Induction training CONSIDERATE UXIN, BUILDER FOR A DREAM TEAM 86 Professional Training for After-sales Service Teams Various training sessions are also regularly conducted for our professional after-sales teams. Besides, based on favorable comments and the customer satisfactions collected by used vehicle assistants, an appraisal is conducted at the group meeting at the beginning of each month, and by scoring each other, a "service star" of the team is selected. Training project Business skills training Skill improvement drills Case review sharing and discussion 优信新员工入职培训考试-11月 优信新员工入职培训调查问卷 长按识别二维码 长按识别二维码 Induction training test and questionnaire survey Professional Training for Sales and Acquisition Teams For the sales and procurement teams, professional training sessions are regularly carried out, aiming at strengthening their professionalism, establishing brand experts' cognition and improving the efficiency of standardized services. The main training courses include hospitality, the invitation for customers, in-store selling specifications, communication skills, etc. We also make full use of morning and evening meetings to bring everyone together to check in with one another and communicate hurdles and needs, to increase accountability, engagement, and problem-solving. Online Learning Platform Training content Financial knowledge, delivery process, system use, warranty extension system knowledge Six-direction simulation for vehicle introduction scenarios, speech scenario drills for vehicle defects, new energy vehicle learning and explanation to customers Make an in-depth review of cases found in the delivery process. For similar problems, feedback on the cases to relevant departments to improve the Company's customer service capability The Company launched an online learning platform on January 1, 2022, providing a total of over 7,000 courses, including over 800 courses related to the automobile industry. The online learning platform as a training resource supple- ment enables employees to better utilize fragmented time to improve their professional skills, general skills and leadership skills. Key Performance in 2021 Total number of trained employees Total hours of training Average training hours per person 400 10,200 25.5#4687 UXIN LIMITED Environmental, Social and Governance Report EMPLOYEE CARE We care for our employees. Various benefits are provided, and employee-caring activities are conducted to fully arouse employees' working passion and enhance their sense of happiness and growth at Uxin. HU Holiday Gifts sale. 10- + Paid Training Program 7 Social Insurances and 1 Housing Fund. Classy Working Uniform Employee Welfare Communication Subsidy / Reimbursing Taxi Fare for Overtime Abundant Activities - D Commercial Insurance Plan We provide commercial insurance with different schemes for our employees; thus, they can choose the appropriate plan according to their own needs. For reimbursement, online and offline claims are both available for employees. 优信 UXIN GROUP 商业保险福利说明 风险保障 2021年度 保障期限:2021年01月01日——2021年12月31日 亲爱的优星小伙伴 商保福利全新升级,请大家注意 您在本年度享受的商业保险福利保障如下 ●默认方案(当月15日之前入职的员工,下月1日生效) 险种分类 保障內容 风险保障 意外身故和伤残 10万元,疾病身故10万 元,交通意外(飞机50万/火车30万/ 轮船 20万/营运机动车 10万) 意外医疗保障 意外住院津贴 因意外导致的医疗费用,1万元,年免赔 额500元,社保范围内,100%报销 因意外导致的的住院,50元/天,免赔天 数3天,累计180天 CONSIDERATE UXIN, BUILDER FOR A DREAM TEAM 88 ②员工方案A(入职满6个月正式员工) 险种分类 医疗保障 保障内容 意外身故和伤残 10万元,疾病身故10万 元,交通意外(飞机50万/火车30万/ 轮船 20万/营运机动车 10万) 常规门急诊 2万元,社保范围内80%报销,年免赔额400元 常规住院 3万元,社保范围内80%报销,年免赔额400元 大病住院 30万元,免赔额3万元,社保甲乙类90%报 销,丙类70%报销 住院津贴 50元/天,免赔天数3天,累计180天 ⊗员工方案日(入职满6个月正式员工) 险种分类 保障内容 风险保障 意外身故和伤残 30万元,疾病身故 30 万元,交通意外(飞机50万/火车 30 万/轮船 20万/营运机动车10万) 常规门急诊 2万元,社保范围内60%报销,年免赔额1000元 Additional commercial insurance plans for employees Colorful Working Life In view of the needs and preferences of employees, we carry out various activities and diverse rewards, to enrich the working life and care for our employees, creating a happy and inclusive workplace environment. Activities and Events We hold recreational activities, commendation meetings and anniversary events on major festivals or special days. The Company actively adopts various ways to enhance employees' sense of belonging and happiness, such as preparing gifts and encouraging them to participate in different activities.#4789 UXIN LIMITED Environmental, Social and Governance Report Care Gifts We send our best wishes to the employees as newlyweds and new parents, sharing happy moments with them. As of March 2022, a total of 24 newlyweds and new parents in Uxin have received gifts from the Company. Celebrations 贺 0000000000 Uxin regularly provides employees with multiple benefits during holidays, such as monthly birthday parties, Dragon Boat Festival, Mid-Autumn Festival and Christmas. HAPPY Birthday HAPPY Birthday Employees' birthday celebration 士 HAPP Birthday HAPPY Birthda Happy hours activity CONSIDERATE UXIN, BUILDER FOR A DREAM TEAM 90#48Environmental, Social and Governance Report 2021 Responsible Uxin, Follower of Business Ethics Corporate Governance Compliance Management Business Ethics 06#4993 UXIN LIMITED Environmental, Social and Governance Report CORPORATE GOVERNANCE RESPONSIBLE UXIN, FOLLOWER OF BUSINESS ETHICS 94 COMPLIANCE MANAGEMENT Strictly abiding by the Company Law of the People's Republic of China and the regulatory rules of the area where it is listed, Uxin has established a corporate governance structure consisting of the board of directors, management and shareholders' meetings. Under the Board of Directors, there are the Audit Committee, the Compensation Committee, and the Nominating and Corporate Governance Committee. The Company has been improving the supervision mechanism of directors and senior management to ensure effective and standard operation. By clarifying the powers and responsibilities and maintaining checks and balances, we have laid a foundation for creating values for the Company and stakeholders. Corporate Governance Structure Shareholders' Meetings Strictly abiding by the laws and regulations of the cities where it operates and the regulatory requirements of the country where it is listed, the Company conducted regular or irregular external and internal audits to meet the statutory compliance requirements and comply with the financial reporting requirements. We continuously improved the risk management structure. By effectively coping with and managing business risks, the Company ensured compliance and efficiency of its operations. Risk Management Carried out by the Audit Committee in collaboration with the senior management and internal control departments, the Company's risk management includes risk assessment, risk exposure identification, risk control and risk response. In our annual report for the fiscal year 20221, we have disclosed the results of risk identification related to the Company's business and the industry, as well as the Company's climate-related risk identification. Uxin will continue to improve its risk management system, mechanisms and process to enhance its ability to prevent and address risks in operation, finance, law and the market. Audit Committee Management Board of Directors Compensation Committee Nominating and Corporate Governance Committee Internal Audit and Control In the fiscal year 2022, according to the requirements of the Sarbanes-Oxley Act implemented in 2002 and the auditing standards of the Public Company Accounting Oversight Board, the Company evaluated the effectiveness of its internal control with the participation of the CEO and CFO while engaging external auditors to audit its internal control and provide opinions. We will further enhance our internal control system of financial reporting and continuously enhance the effectiveness of internal control. In addition, the Company actively conducts anti-corruption training every year to raise employees' compliance awareness, and ensure they strictly abide by laws, regulations and business ethics. Besides, the Company has also established anti-corruption and compliance mechanisms. Key Performance in 2021 Average age in the board of directors Proportion of female directors Proportion of female executives Proportion of independent directors1 47 16.7% 12.5% 50.0% Supplier Management The Company's supplier management includes supplier qualification audits and quality standard system audits. The anti-dishonesty and anti-corruption clauses are clearly provided in the contracts with the suppliers. The Zero-tolerance policy is adopted against suppliers' non-compliance and corruption. The procurement and legal departments review the qualification of suppliers. The procurement department takes responsibility for signing the contract and participates in the acceptance. We also regularly perform supplier evaluations. The internal audit and control department conducts spot checks and audits on the procurement business from time to time. 1: This is based on the actual number of directors appointed by the Company. Currently, the Company has a total of 6 directors in office, among which 3 are independent directors. 1: The fiscal year 2022 refers to the Company's fiscal year ending March 31, 2022.#5095 UXIN LIMITED Environmental, Social and Governance Report BUSINESS ETHICS Working Discipline Organization Atmosphere RESPONSIBLE UXIN, FOLLOWER OF BUSINESS ETHICS 96 Violating the work discipline and refusing to carry out the work arrangement of the superior without justified reasons. Divulging company secrets in violation of company confidentiality regulations. Organizing or inciting disturbance, spreading rumors or releasing untrue remarks about the company. Failing to report or stop any behavior that damages the interests of the company. Classification and Treatment of Violations Violation Penalty Strict compliance management and high-standard business ethics are the foundation for an enterprise to achieve sustainable development. Abiding by business ethics and the principle of integrity management, the Company has formulated the Code of Business Conduct and Ethics, and takes the highest standard of business ethics as its business guideline, aiming to comply with the "moral code" stipulated in Article 406 of the Sarbanes-Oxley Act of 2002 and the rules promulgated accordingly, and establishing an honest and transparent workplace and corporate image. The Code of Business Conduct and Ethics applies to all directors, senior officers and employees of the Company, and aims to prevent wrong behaviors and promote honest and ethical behaviors, including dealing with actual or apparent conflicts of interest between personal and professional relationships in an ethical way; making a comprehensive, fair, accurate and timely disclosure in the reports and documents submitted by the Company to the U.S. Securities and Exchange Commission. The general legal counsel of the Company serves as our risk compliance officer. Anyone who has any questions about the Code of Business Conduct and Ethics or wants to report any violation of the Code can communicate with and report to the compliance officer by email. • More details of the Code of Business Conduct and Ethics are showed on the Company's investor relations website: https://ir.xin.com/static-files/79260a1c-2dec-48df-b829-09caa66f7f73 Class A Class B Class C Violation of customer value, fraud, improper interests, embezzlement, disclosure of secrets, major dereliction of duty, provocation, and other violations Causing a loss of less than 3,000 yuan (excluding) in "major dereliction of duty" of Class A • Expulsion Blacklist • Demotion or salary reduction • Record of a demerit Causing no loss and little impact • Warning Manager's accountability The manager violates the rules in management • Managers who fail to implement the responsibility of management will be punished according to relevant regulations and specific cases "Redline" Culture The Company has established the Uxin Limited Management Red Line System, Uxin Limited Red and Yellow Cards System and the Uxin Limited Management System of Employees' Violations, defining the methods for dealing with violations. We provide compliance training for each new employee. To eliminate wrongdoing, anyone who "touches" the "redline" of the Group shall be dismissed. By doing so, we endeavor to standardize our service and discover and prevent behaviors that harm the Company's interests in a timely manner, ensuring the Company's healthy and stable development. Reporting Channels Any employee or department head who discovers that other employees are suspected of violations can report via the reporting mailbox. Department heads can also report to the Group Human Resources Center of the Group if they find violations of subordinate employees. According to different violations, the human Resource Center of the Group will make overall arrangements for case investigation or transfer the cases to relevant departments for handling. List of Violations Customer Value Integrity Having a bad attitude towards customers or showing disrespect to customers and resulting in bad customer experience and damaging customers' interests or the Company's reputation. Concealing the truth or falsifying. Reporting email: [email protected] The email is managed by the head of internal control and audit. We keep the reporter's information strictly confidential. Dereliction of duty or abuse of power, practicing favoritism and engaging in malpractice or using power for personal gain. Disclosure of Violation Handling Results We will handle the violations and disclose the results in accordance with Uxin's values and establish a corporate culture of integrity and compliance.#5197 UXIN LIMITED Environmental, Social and Governance Report APPENDIX GRI Content Index (Alignment with UNSDGs) Chapter GRI Standards Introduction About this Report Message from CEO GRI 102-1,45,46,50,52,53,54 1 GRI 102-14,15 Company Profile Vision and Mission GRI 102-1,2,3,4,6,7,8,16,18 GRI 102-16 GRI 103-2 Awards and Recognition GRI 102-12 GRI 102-8 GRI 205-2 About Uxin GRI 302-1 Key Performance GRI 303-4,5 GRI 305-2,4 GRI 401-1 GRI 403-9 GRI 404-2 ESG Strategy GRI 405-1 GRI 102-29,34,44 GRI 416-1 Service Commitment GRI 417-1 UNSDGs INDUSTRY, INNOVATION AND INFRASTRUCTURE 13 CLIMATE ACTION 16 PEACE, JUSTICE AND STRONG INSTITUTIONS DECENT WORK AND INDUSTRY, INNOVATION ECONOMIC GROWTH AND INFRASTRUCTURE Reputable Uxin, GRI 102-20,26 NPS-Focused Growth Provider of GRI 416-1 Customer-Centric Service 12 RESPONSIBLE CONSUMPTION Consumption Equality GRI 203-2 AND PRODUCTION Privacy Protection Innovation-Driven Development Innovative Uxin, GRI 416-1 GRI 417-1 GRI 103-2 GRI 203-1 GRI 404-2 Leader in the Industry's Development Intelligence Technology Upgrades GRI 103-2 GRI 203-1 Information Security GRI 416-1 INDUSTRY, INNOVATION AND INFRASTRUCTURE 12 RESPONSIBLE CONSUMPTION AND PRODUCTION GO Green "DNA" Green Operations Green Uxin, Runner Towards a Zero-Carbon Future Green Logistics Considerate Uxin, Builder for a Dream Team GRI 302-4,5 GRI 416-1 GRI 302-1 GRI 303-4,5 GRI 305-2,4,5 GRI 302-4,5 Green Leadership GRI 102-12,13 GRI 203-1,2 Combating Climate Change GRI 103-3 GRI 401-1 Diversity and Inclusion GRI 405-1 Health and Safety GRI 403-1,3,5 Talent Growth GRI 102-35 GRI 103-2 GRI 404-1,2 AFFORDABLE AND CLEAN ENERGY 9 INDUSTRY, INNOVATION CLIMATE 13 ACTION PARTNERSHIPS 17 FOR THE GOALS сл GOOD HEALTH AND WELL-BEING QUALITY EDUCATION GENDER EQUALITY DECENT WORK AND ECONOMIC GROWTH Employee Care GRI 401-2 10 REDUCED INEQUALITIES Corporate Governance GRI 102-18,22 Responsible Uxin, Follower Compliance Management of Business Ethics GRI 205-1,2 GRI 102-30 Business Ethics GRI 205-1,2 Appendix GRI Content Index GRI 102-55 16 PEACE, JUSTICE AND STRONG INSTITUTIONS APPENDIX 98