CECO Newsletter to Business Partners – Q2 2023

Dear Business Partner,
尊敬的业务合作伙伴：

ZTE believes that export compliance is conducive to our sustainable business development. This newsletter describes some of the major efforts we have made in the second quarter of 2023 to ensure export control compliance. We believe these efforts will help manage export control compliance risks and promote the sound development of our business relationship.

中兴通讯相信出口合规有利于我们与您的业务的可持续发展。本篇通讯稿介绍了我们近期为确保出口管制合规所做的一些主要努力，我们相信这些合规建设举措有助于管控出口管制合规风险，促进我们与您业务关系的稳健发展。

First, ZTE has made new progress in building its compliance management and control system. As for the Global Trade Services (GTS) system, we have added some sanctions lists of more countries, launched the intelligent search function for party screening, optimized query of screening records, and improved the efficiency of restricted party screening and de minimis calculation. With these efforts, the company has successfully improved system control capability and document review efficiency. In addition, we have made steady progress in deploying the self-developed Export Compliance Screening System (ECSS), as ZTE Corporation and its two subsidiaries have started User Acceptance Testing (UAT) of the system. It is expected that ZTE will successfully reach the milestones for the ECSS in the first half of this year, taking the company's compliance digitalization to the next level.

首先，中兴通讯的合规管控系统建设不断取得新进展。GTS（Global Trade Services）系统上线了更多国家的制裁清单，实现了主体扫描智能搜索功能及扫描记录查询的优化，完成了受限制主体扫描及占比计算性能的优化，系统管控能力与单据审核效率进一步提升。自主设计开发的出口合规扫描系统ECSS（Export Compliance Screening System）的部署也在稳步推进，中兴通讯股份侧及两家子公司的ECSS系统实施部署工作已进入UAT测试阶段，预计ECSS系统实施上半年里程碑将顺利达成，中兴通讯合规数字化水平将进一步提升。

Second, ZTE continues to strengthen exchanges with its business partners over compliance, sharing ZTE's current status and experience in compliance building. Throughout this year, I, together with the Overseas Compliance Credibility Enhancement Project Team, are conducting face-to-face exchanges with customers, suppliers, and channel partners in Japan, Hong Kong, the Middle East, and South Africa. During those exchanges, we elaborated on the company's compliance program for 2023, digital tools for compliance management, policy tracking mechanism, and analysis of the impact of regulatory changes. With such effort, we are expected to win the recognition and trust of customers and create a compliant business environment together with customers. Besides, the company actively participated in the professional compliance forum organized by PwC and Hogan Lovells, demonstrating ZTE's achievements in compliance building and capability to build a digital compliance system. By continuously strengthening exchanges with professional consulting agencies, we have promoted the improvement of the company's compliance management and enhanced external parties' trust in the company's compliance building.

其次，中兴通讯持续加强与业务合作伙伴的合规交流，分享中兴在合规建设上的现状及经验。今年，我带领增信团队扩大了合规增信的范围，与日本、香港、中东、南非的客户、供应商、渠道伙伴等开展现场交流，介绍了我司2023年的合规计划、数智化合规管理工具、政策变化追踪机制与法规变动影响分析等内容，努力赢得客户的认可与信心，与客户共创合规经营的环境。同时，公司积极参与普华永道和霍金路伟律所组织的专业合规论坛，向外推介公司合规建设取得的成果，展示了中兴通讯数字化合规体系建设的能力。通过不断强化与专业咨询机构的合作交流，我司合规建设能力得以持续提升，外界对我司合规建设的信心得以持续增强。

Finally, in terms of cooperation with the SCC team, it has been halfway through its third annual audit on ZTE. With the support of the company's management and related employees, the audited entities have withstood pressure and closely worked together to guarantee the smooth implementation of the audit. In 2023, I believe that ZTE will continue to ensure efficient monitorship cooperation enhance the SCC team's trust in the company's compliance system, and thus guarantee the stable development of the company.

最后，在与我司特别合规协调员（SCC）的协同方面，SCC对我司的第三次年度审计已进展过半，在公司管理层及相关员工的支持配合下，受审计实体直面压力，高效协同，全力保障了SCC审计工作的顺利开展，相信我司将顺利完成本年度的监管协同工作，不断增强SCC对我司合规体系建设的信心，确保公司的平稳发展。

Lawrence koh 许绍勤 Chief Export Compliance Officer 首席出口管制合规官 ZTE Corporation 中兴通讯股份有限公司 Lawrence.koh@zte.com.cn +65 84999511 (Singapore/新加坡) +86 15768250208 (China/中国)