Bairong Takes Top Spot in Industry for Corporate Governance! ESG Practices Gain Prestigious MSCI Approval

Beijing, China, On July 4, 2024, Bairong Inc. (“Bairong” or the “Company”; HKEX: 6608) has continued its impressive performance in the latest Environmental, Social, and Governance (ESG) ratings report released by Morgan Stanley Capital International (MSCI), one of the world's leading index providers. The company was awarded a "BB" rating, with a particularly outstanding score in the "Corporate Governance," ranking first in its industry. Additionally, due to its exceptional disclosure practices, Bairong has recently been honored with the "Outstanding ESG Disclosure Company" award by Gelonghui,a leading Chinese platform for global investment research.

According to the MSCI report, "Compared to global peers, Bairong's corporate governance is rated in the higher range, aligning its governance practices with shareholder interests."

Since being included in the MSCI China Small Cap Index in May 2022, Bairong has consistently ranked among the top globally and domestically in terms of corporate governance scores.

As shown above, MSCI maintains a stable and high level of rating for Bairong's "corporate governance."

Bairong's 2023 Environmental, Social, and Governance Report states, "We are dedicated to creating long-term value through AI technology innovation while actively integrating ESG into our strategic planning, major decisions, and operational practices."

In 2023, adhering to the values of "integrity, responsibility, openness, innovation, pragmatism, and collaboration," Bairong established a robust and effective corporate governance structure consisting of a shareholders' meeting, board of directors, special committees, and senior management, forming a highly efficient supervisory mechanism that ensures checks and balances.

A series of actions demonstrates the company's efforts in governance — a 100% coverage rate for director training, legal compliance training for over 900 participants, establishment of an internal control department, and improvements to anti-corruption, anti-commercial bribery mechanisms, and whistleblowing channels.

Alongside this effective governance is continuous year-on-year growth in performance. In 2023, the company reported a revenue of RMB 2.68 billion, a 31% increase year-over-year; adjusted net profit reached RMB 375 million, with an adjusted net profit margin of 14%, setting another record for the best financial performance since listing.

Moving Alongside 'Green': Empowering Institutions to 'Identify Green' and 'Discern Green' with AI Technology

Green development is at the core of ESG issues. In recent years, Bairong has consistently promoted green, low-carbon operations, combining economic benefits with environmental protection. The company's office design has been certified under the Environmental Management System (ISO14001), and its internal information system has passed ISO27001 Information Security System certification, integrating green, low-carbon practices throughout its operations.

While achieving its own green development, Bairong is also committed to using AI technology to help commercial institutions broaden their path to green development. In 2023, the company served more than 200,000 small and medium-sized enterprises, using technological strength to promote the healthy development of inclusive finance.

Notably, in the era of AI 2.0, Bairong innovatively harnesses the significant power of AIGC in "identifying green" to assist commercial institutions in accurately recognizing and automating green business.

It is well-known that finance plays a crucial role in leading national green development, but in reality, there remain challenges in implementing green finance, including insufficient green disclosure, lack of unified standards, and difficulties in manual inspections reaching all areas.

To address these issues, Bairong developed a digital solution for green finance for a certain joint-stock bank, utilizing the dual technological prowess of "decision-making AI + generative AI" to promote the digital development of the bank's green business. Specifically, leveraging the performance of large models such as RAG (Retrieval Augmented Generation), Bairong assists institutions in "identifying green" from the perspectives of standardized identification and project environmental benefit assessment, while also crafting a full-process credit construction plan to effectively achieve "distinguishing green" based on "identification."

Practicing Social Responsibility, Engaging in Multi-dimensional, Diversified Assistance

For a decade, Bairong has closely aligned with national development strategies, fully serving the broader economic and social development. The company understands that practicing social responsibility is a critical factor for sustainable enterprise development. Besides leveraging technological strength, it does not neglect increasing human, financial, and material resources. In 2023, the company actively participated in public welfare activities, with a total service time of 248 hours, 58 people involved in services, and charitable donations exceeding one million yuan, continuously expanding the scope of social services to enhance public health and well-being.

Following the national strategy of "digital rural construction," Bairong responded to the Beijing Shijingshan District Government's "Ten Thousand Enterprises for Ten Thousand Villages" initiative, engaging in rural revitalization efforts. Starting with consumption assistance, it gradually deepened into industrial assistance and educational assistance, writing new chapters in village-enterprise cooperation in multiple dimensions, earning the honor of "Outstanding Contribution Unit for Rural Revitalization" from the Shijingshan District.

Looking ahead, on the path towards high-quality, sustainable ESG management, Bairong will continue to write new chapters in green development, social responsibility, and corporate governance through action, while fully seizing new opportunities in AI technology development to drive digital intelligence with technological innovation.

About Bairong Inc.

Bairong Inc. is a leading artificial intelligence (AI) technology services company. The Company applies natural language processing (NLP), privacy computing, machine learning, cloud computing and other technologies to provide services to enterprises through model-as-a-service (MaaS) and business-as-a-service (BaaS). The MaaS services leverage discriminant AI to digitalize the know-your-customer (KYC) and know-your-product (KYP) process for enterprises, by analyzing users’ risk, willingness, and capability. The BaaS services use discriminant AI to analyze and stratify users into groups, and develops generative AI-powered voicebots using human natural languages to interact with users. The Company’s products and services are widely used by enterprise customers in banking, consumer finance, insurance, e-commerce, automobiles, logistics, ticketing, energy, construction and other industries.

For more information, please visit: http://ir.brgroup.com

For investor inquiries, please contact:
Bairong Inc.
Ms. Sandy Qin, CFA, CMA
Email: ir@brgroup.com

For media inquiries, please contact:

Bairong Inc.

Email: brmarketing@brgroup.com