A guide to EY services in Greater China Table of content Overview 2 Recent key developments in the EY Greater China Region 8 Global review 4 EY people 9 Milestones 6 Awards and accolades 10 EY focus topics China Go Abroad 12 Guangdong- 13 Assurance 18 Tax 20 and the Belt and Hong Kong-Macao Road Initiative Greater Bay Area development Strategy and 22 Consulting 24 Transactions Innovation and 14 State-owned 15 digitalization enterprise strategy reform IPO services 16 Industry-focused services 17 Financial 26 EY contacts 28 Services A guide to EY services in Greater China | 1 EY is committed to building a better working world – with increased trust and confidence in business, sustainable growth, the development of talent in all its forms, and greater collaboration. EY aspires to build a better working world through actions and by engaging with like-minded organizations and individuals. This is the EY purpose – and why EY exists as an organization. To uphold efficiency and effectiveness, the member firms of the EY network are organized into 28 Regions and grouped into three geographic Areas: Americas | Asia-Pacific | Europe, Middle East, India and Africa (EMEIA) This streamlined structure allows decisions to be made quickly, and promotes the execution of EY strategy and the provision of exceptional client service wherever clients do business around the world. “EY Greater China Region” refers to the member firms of Ernst & Young Global Limited which are organized in the Greater China Region. In this publication, we refer to ourselves as “EY Greater China Region”, “we”, “us” or “our”. 2 | A guide to EY services in Greater China Overview EY is a global leader in assurance, tax, strategy, transaction Our mission: and consulting services. The insights and quality services we deliver help build trust and confidence in the capital markets To lead high quality and and in economies the world over. Ernst & Young Global sustainable growth with best- Limited, a UK company by guarantee, does not provide services to clients, nor does it own or control any member in-class talent, innovation, firm or act as the headquarters of any member firm. It entrepreneurship and coordinates the EY Global Network and the relationships corporate responsibility; between the network’s member firms. EY refers to the global organization, and may refer to one or more, of the member Committed to creating long- firms of Ernst & Young Global Limited, each of which is a term value to be the most separate legal entity. The member firms, in more than trusted professional services 150 countries and regions around the world, have no control or management relationship with one another. organization. EY member firms in the Greater China Region are owned and managed by local partners. The member firms EY Greater China Region in China expand their regional operations by nurturing and recognizing entrepreneurship, expanding business footprints in strategic locations, creating synergies through People 22,000+ collaboration, as well as driving innovation and digitalization. With a strong presence in China, EY is a key contributor to the country’s dynamic economic development, leveraging Partners 700+ the strength of the EY global organization to enable more Chinese companies to go global. The EY Greater China Region supports its clients through 31 Years of operation 50+ office locations: Beijing, Shanghai, Hong Kong, Shenzhen, Guangzhou, Macau, Changsha, Chengdu, Chongqing, Dalian, Haikou, Hangzhou, Hefei, Jinan, Kunming, Nanjing, Office locations 31 Qingdao, Shenyang, Suzhou, Tianjin, Wuhan, Xiamen, Xi’an, Zhengzhou, Hsinchu, Kaohsiung, Taichung, Tainan, Taipei, Taoyuan and Ulaanbaatar. We are committed to bringing together the right people at the right time, and in the right place to offer the seamless, high-quality service you need. A guide to EY services in Greater China | 3 Creating long-term value Globally, EY measures its success using EY Long-Term Value Framework, which is built on four value dimensions: people value; client value; social value; and financial value. People Brand strength 12 No.1 consecutive years EY has been employer among Big 4 in China named on Universum’s World’s Most by business students in the latest Attractive Employers list by business Universum survey students (2009-2020) 6 5 consecutive years on the Great consecutive years on Great Place to Place to Work’s World’s Best Work’s Best Workplaces in Greater Workplaces list (2015-2020) China list (2016-2020) A commitment to diversity As a major global employer Partner/Principals/Executive Directors/Directors Global Greater China 74% 26% Global 99,300 Greater China 60% 40% Region 71,800 Men Women 63,500 45,800 Investing in skills for the future Global Greater China 19,000 Learning hours delivered 10,400 5,200 3,200 1,200 2,400 16,000,000 400,000 Assurance Tax Strategy and Consulting Practice transactions support *As of financial year ended 30 June 2020 4 | A guide to EY services in Greater China Global review Client Market share Forbes Global 2000 Percentage of Fortune Global 500 Percentage of Fortune Global 500 Percentage of companies in index served companies in index served Chinese companies in index served 16% 27% 27% 23% 27% 26% 46% 61% 47% Audit clients Non-audit clients All other companies *As of financial year ended 30 June 2020 Note: Compiled according to number of companies Source: Forbes, Fortune Social Our investment in communities Signed memo with The United Nations 4 Development Programme in the field of consecutive years recognized by Asiamoney in sustainable development strategy and green finance (2017-2020) technology EY Ripples program aims to positively impact EY’s “Green Finance Management System on Regulatory Development of Green Credit” the lives of 1 billion people by 2030 awarded by All-China Environment Federation (ACEF) Green Finance committee as a “Top Ten Green Finance Cases in 2019” Financial FY20 Global revenue and growth US$37.2b US$ US$ Total revenue 12.8b 10.5b Assurance Consulting +4.1% FY20 v FY19 US$4.1b 10 US$ consecutive years of 9.8b Strategy and Transactions Tax strong growth A guide to EY安永大中华区专业服务简介 services in Greater China | 5 1968 Arthur Young, a predecessor network to Ernst & Young, established the first Hong Kong member firm. 1981 Ernst & Young was one of the first professional services networks to set up operations in mainland China when the China representative member firm office was established in Beijing. 1986 The Taiwan practices became member firms of the Are you reframing Ernst & Young network. your future or is the 1992 Ernst & Young future reframing you? established a cooperative joint venture organization ey.com/china #BetterQuestions in Beijing called Ernst & Young Hua Ming. 1998 Ernst & Young Hua Ming opened a new branch in Shanghai. 6 | A guide to EY services in Greater China Milestones >> 2010 2013 2021 The Asia-Pacific Area brought From July, Ernst & Young is wavespace flagship center together five effective Regions known as EY, with a new logo opened in Beijing. Ernst & and became operational in and tagline matching the Young Hua Ming opened a July, creating a consistent and purpose: Building a better new branch in Hefei. streamlined execution model. working world. Ernst & Young Hua Ming was converted into Ernst & Young Hua Ming LLP. 2008 The Far East practices 2020 were brought together as a 2014 Ernst & Young Hua Ming geographic organization – Ernst & Young Hua Ming opened a new branch in Far East Area, including the opened new branches Jinan. Greater China operations. in Hangzhou, Nanjing, Qingdao and Tianjin. 2007 Ernst & Young Hua Ming established the first China 2015 2019 West office in Chengdu. Ernst & Young Hua Ming opened new branches in Ernst & Young Hua Ming Xi’an and Changsha. opened new branches in Chongqing and Kunming. 2006 Ernst & Young Hua Ming 2016 opened new branches in Ernst & Young Hua Ming Guangzhou, Shenzhen, opened new branches in Suzhou and Dalian. Xiamen and Zhengzhou. 2018 Two wavespace flagship centers opened in 2017 Shanghai and Hong 2005 Ernst & Young Hua Ming Kong. Ernst & Young Ernst & Young Hua Ming opened opened a new branch in Hua Ming opened a new a new branch in Wuhan. Shenyang. branch in Haikou. A guide to EY services in Greater China | 7 RecentEY people key developments in the EY Greater China Region Achieving a sustainable green society Expanding business footprints in strategic locations Globally, EY has fulfilled its commitment for carbon neutrality in 2020 and is moving toward its ambition to Deeply involved in the Chinese market for over be carbon negative in 2021 as well as the plan to reduce 50 years, we are committed to promoting China’s total emissions by 40% to achieve net zero in 2025. Along the economic development through providing professional sustainable development journey, we actively participate in advice and services. In response to the development establishing the assessment standard for green development, strategy across China, we continued to expand and contributing to the top-level design of green finance and our presence in Haikou, Chongqing, Kunming environment, social and governance (ESG) development. and Jinan in recent years. We set up our We provide professional services to various enterprises new office in Hefei this year, which and financial institutions to accelerate the launch of becomes the 31st office location in innovative products with respect to sustainability. the EY Greater China Region. We will continue to assist our clients in achieving their carbon neutrality goals and contributing to sustainable development. Driving innovation and digitalization Creating synergy through collaboration Innovation is at the core of what EY people do every day. Innovation is also about continuous learning and adapting. We encourage our people to learn digital skills and have been awarded around 5,000 EY Badges The future belongs to companies that weave to-date.