We regard corporate social responsibility as key to our sustainable growth and long-termdevelopment. We believe we can better create sustainable value for our Shareholders by embracing public interests and have been integrating corporate social responsibility into various aspects of our business operations. Accordingly, our Board of Directors has adopted a comprehensive set of measures on environmental, social and corporate governance responsibilities (the “ESG Measures”) in accordance with the Listing Rules. We will establish an ESG department that is in charge of, among others, (i) executing the ESG strategies and policies formulated by the Board of Directors, (ii) preparing ESG reports, and (iii) conductingexternal or internal ESG related assessments. The Board of Directors and the management team are responsible for developing ESG strategies, as well as assessing and managing ESG related risks, including environmental-related and social-related risks and climate-related issues, with which we may take in.

Environmental and climate issues. We advocate the concept of green development and continue to promote the low-carbon and eco-friendly operation. We proactively monitor information relating to pollutants emissions and provided the information to competent government authorities to assess and manage such risks. We devoted to reducing the use of disposable materials. For example, we do not initiatively offer disposable chopsticks for dine-in customers; we use stainless steel knives and forks instead of plastic knives and forks; we process food waste from restaurants in a centralized and standardized manner. In order to comply with the applicable environmental laws and regulations, we have undertaken wastewater and solid waste disposal and processing measures, including but not limited to: (i) installing proper grease trap for restaurants, a receptacle to intercept most greases and solids before they enter a wastewater disposal system; (ii) engaging qualified third-party companies for our restaurants’ daily food waste collection and disposal and periodic greases collection; and (iii) timely payment of wastewater processing fees to property management companies and payment of garbage removal fees to environmental protection authorities. We will continue to reduce the generation of kitchen waste from the source. For example, we have promoted the use of pre-cleaned fruits and vegetables in many of our restaurants to minimize the waste generated in our kitchen. To better reduce the carbon footprint in our restaurant operation and to response to the paperless initiatives, our restaurants have provided the QR code ordering service and adopted the paperless approach. Due to the nature of our operations and the proactive measures we have taken, we believe the waste we produced is not hazardous and has minimal impact on the environment.

Social issues and employee welfare. We deeply care the interests and rights of our employees. We have established and improved career development channels and talent training systems to facilitate the self-growth of employees and create a pragmatic, innovative and diligent working atmosphere. We adhere to equal recruitment principles and provide our employees trainings on a regular basis. Our talent development center provides extensive on-job training to our employees. We strive to provide a safe, secure and comfortable dining environment for customers and a safe working environment for our employees. We have implemented the food safety management system, restaurant food cross-pollution prevention procedures, restaurant waste management system, restaurant chemical management system, restaurant cleaning and disinfection procedures, epidemic prevention management measures, personal hygiene and health management system, fire safety system, and other safety management systems. Our learning platform provides clear guidance on various occupational andrestaurant safety matters, and our restaurant staff is required to receive relevant trainings before taking office and to follow such guidance in daily practice. Our learning content comprises: (i) the logistics involved in our restaurants’ daily operation for our employees to understand their roles and responsibilities; (ii) applicable articles provided in the Food Safety Law of the People’s Republic China (《中華人民共和國食品安全法》) regarding food production and business operation for our kitchen staff to follow in daily operations; and (iii) daily, weekly and monthly records of inspection, such as dish inspection, food safety inspection, restaurant security inspection, property safety inspection, restaurant staff ’s antiseptic mask inspections, four pests control inspection, chemical management inspection, equipment inspection and so forth. To ensure food safety, we have established a series of protocols for better inventory management and monitoring. We have developed the “Nationwide Restaurants – Quality Card”, which comprises a list of inventories stocked in our restaurant kitchens and their expiration dates to facilitate better management of the inventories in our restaurants. During the Track Record Period and up to the Latest Practicable Date, we had not encountered any material food safety and workplace safety incidents. The material equipment and machinery at our restaurants are subject to periodical cleaning and maintenance from time to time and our employees are required to complete training programs that increase their consciousness of safety in the workplace. Generally, our material equipment and machinery at restaurants are maintained by manufacturers on a periodic basis. During the Track Record Period and up to the Latest Practicable Date, we had not encountered any material workplace safety incidents.

Regulatory compliance. We are subject to environmental protection and occupational health and safety laws and regulations in China where we operate our restaurants. During the Track Record Period, we have conformed with the applicable environmental and occupational health and safety laws and regulations in all material aspects in China where we operate, and we did not have any incidents or complaints which had a material and adverse effect on our business, financial condition or results of operations during the same period.

Social responsibility. Under our ESG Policy, we aim to build harmonious and win-win cooperation with our employees, customers and business partners by engaging in various offline activities for public good. During the COVID-19 outbreak, we actively responded to the government’s call and involved ourselves in the process of pandemic prevention, disease control and supply guarantee. We provided continuous meal delivery services for medical staff, medical stations, anti-pandemic medical teams, volunteers, and citizens in Wuhan. We believe we have contributed our part as socially responsible company and have effectively contributed to urban and social stability. We have made important contributions to further consolidating the improved trend of COVID-19 pandemic prevention and control. We also donated necessities valued at approximately RMB0.5 million to medical institutions, medical staff and volunteers to honor the sacrifices these everyday heroes made during this unprecedented crisis. We were granted the title of “Enterprise with Outstanding Contributions to Pandemic Prevention and Supply Guarantee in Wuhan” (《武漢市疫情保供突出貢獻企業》) by “Wuhan COVID-19 Pandemic Prevention Headquarters” (武漢市新冠肺炎防疫指揮部). Besides, we donated RMB0.3 million to the Red Cross for the epidemic situation in Pi County at the end of 2020, donated necessities valued at RMB1.1 million to Sichuan in 2021 to support pandemic prevention, and donated RMB5.0 million for the flood disaster in Henan in 2021. In 2017, we donated RMB2.0 million to Chongqing Charity Federation (重慶市慈善總會) to form the “Western Star Student Aid Fund” (西部之星助學基金) and subsidize students from poverty-stricken families. Below is apicture showing our employees at the donation event.