Lanyou Technology has been included in the Reform and Innovation: the Casebook of High-tech State-owned Enterprise Reform issued by the Office of Leading Group for Comprehensively Deepening Reform of SASAC

In 2021, the Office of the Leading Group for Comprehensively Deepening Reform of SASAC, and the SASAC Research Center prepared the Casebook of High-tech State-owned Enterprise Reform, which introduces the reform practices and results of 71 central enterprises and 32 local state-owned enterprises in the Demonstration Action of Scientific State-owned Enterprise Reform.

Lanyou Technology was the only selected enterprise within Dongfeng Motor Corporation in recognition of the initial success of itsreform.

Lanyou Technology was approved as one of China’s 100 demonstration organizations for scientific state-owned enterprise reform in 2020. Lanyou Technology defined key points, and developed a detailed reformplan and schedule in the five aspects of improving the corporate governance mechanism, improving the market-based staff selection and employment mechanism, strengthening the market-based incentive and constraint mechanism, developing technological innovation drivers, and running an open business model. These aspects were included in the annual organizational performance evaluation indicators, and organizations in charge assigned dedicated staff for progress control and regular result confirmation.

After nearly two years of reform, Lanyou Technology will have an operating revenue of 1.5 billion yuan, 12 innovative products, 8 innovation projects, 15 newly approved patents, and 11 ecological strategic partners in 2021. It has conducted joint strategic marketing and key project cooperation with Huawei, WAYS, JD Technology, etc., further improving its industry reputation and brand power.

Lanyou Technology is a combination of the two IT companies of Dawnpro and Lanyou. The articles of association have been amended according to the new equity participation agreement to include the leadership of the CPC and CPC building work, and define the shareholders’ rights and obligations. The shareholders have authorized the board of directors to establish a governance system with the board of directors at its core, and the five authorities of the board of directors are defined in the rules of procedure of the board of directors.

Lanyou Technology implements a market-based staff selection and employment mechanism in all aspects, and would adjust employees who fail in performance evaluations through reasonable and lawful channels.

Any business not meeting the company’s efficiency improvement requirements will be spun off along with its staff. Capable talents will be introduced and incompetent employees will be dismissed.

The company implements a tenure system and a contractual management system comprehensively. In January 2021, employment contracts and performance target responsibility letters were signed with all staff at or above the director level to strengthen the executives’ market awareness and contractual spirit.

Lanyou Technology has reformed the three systems resolutely, and developed diversified incentives, including broadb and annual salary, contractual remuneration and special remuneration areas, by correlating job salaries to job value and job qualifications. In addition, differentiationin performance valuation has been strengthened.

To further establish an incentive and constraint mechanism for interest sharing between the company and backbone employee teams,and improve the company’s cohesion and competitiveness, Lanyou Technology has established an employee stock ownership platform, and selected scheme participants on a fair and just basis, including broader core technology and business backbone staff in the scheme. In March 2020, the employee congress adopted the Employee Stock Ownership Scheme of Shenzhen Lanyou Technology Co., Ltd.

By creating the “Lianchuang” incubation platform and innovative product groups, Lanyou Technology conducts proactive research inproducts and innovation projects at the intelligent manufacturing, automobile IT and big data laboratories with the aim of “creating an innovation-drivenfuture”.

In addition, Lanyou Technology has built the Lianchuang 2.0 operating system for innovation in smart parts, ICV, digital products, big data, smart marketing, intelligent manufacturing, cloud services,etc., promoted the conversion of innovation and technological achievements, and kept improving its independent innovation capacity.

The innovative products in 2021 (including IoT-Ciwei IoT, platforms-Liancai Cloud, Smart Store, ILINK, etc.) have received some orders and tried out by many customers. The innovative ICV, onboard and vehicle control products have been applied to customers’ new models, and put into mass production.