We have formulated and adhere to the Yum China Responsible Marketing Policy. We are committed to maintaining integrity in our marketing practices, avoiding making exaggerated or unsubstantiated claims about the positive social or environmental impacts of our products and services. To ensure our marketing communications comply with laws and Yum China policies, we have established a Marketing and Communications Committee comprising teams from Food Innovation, Food Safety, Legal, Marketing, and other functions, to regularly review our marketing communication contents. Additionally, we provide ongoing responsible marketing training to relevant employees, keeping them informed about the latest review requirements and updates on changes in laws and regulations.
Yum China attaches great importance to the protection of intellectual property (IP) rights and strictly abide by relevant laws and regulations. We have a tailor-made IP protection system compatible with Yum China's institutional characteristics to safeguard our reputation and brands. We promptly register our IP achievements in order to protect our rights and resolutely oppose any actions that infringe on our rights..
• Systematic Listening and Deep Insights: We collect and analyze customer needs and feedback through a diverse range of systems, including our consumer insights platform, Guest Experience Survey (GES), Customer Service Platform (CSP), and others. These tools enable us to continuously deepen our understanding of consumers in a structured and data-driven way. To enhance the efficiency and accuracy of these insights, we actively apply AI technologies. For example, our consumer insights platform leverages generative AI (GenAI) to quickly extract key themes from vast volumes of customer feedback, enabling business teams to rapidly identify issues and develop targeted improvements. In 2025, we further expanded our feedback channels and engagement approaches by establishing communication mechanisms within private-domain communities and designing tailored surveys for emerging business formats to capture nuanced and segment-specific needs more precisely.
• Optimized Customer Complaint Handling System: We have built and continuously refined a multi-tiered customer complaint handling system, strengthening the collection and root-cause analysis of negative feedback across all channels. By introducing refined issue-tagging mechanisms and streamlining resolution processes, we have improved the efficiency and effectiveness of our complaint closed-loop management. During the reporting period, to improve the efficiency of handling customer feedback on online channels, optimize response time, reduce the burden on frontline employees, and free up resources for offline services, we launched a special pilot at KFC restaurants in the selected market. We applied AI technologies to enhance customer service efficiency, granted greater authority to customer service staff, and improved the hierarchical handling mechanism to respond to diverse customer demands in a timely manner. This has enabled rapid online response and closed-loop resolution, reduced the burden on frontline employees, and allowed them to focus more on store operations and services. Supported by data insights, we continue to drive improvements in operational capabilities. Going forward, we will further refine mid-platform functions and processing procedures and gradually roll out these practices nationwide.
In 2024, approximately 87% of our customers used online channels to place their orders.
Yum China places significant importance on digitalization as a
vital driver for supporting our business's resilience and
long-term development, and strives to construct a robust digital
ecosystem.
We continuously invest in industry-leading digital infrastructure
to reinforce our business moat and have inaugurated a Digital R&D
Centers with offices in Shanghai, Nanjing, and Xi'an. Our
dedication to exploring and implementing innovative digital
technologies, such as big data, AI, and intelligent interaction,
remains steadfast. These technologies are fully integrated into
our business scenarios to optimize customer experience and promote
sustainable business growth.
and Products
To improve Super Apps, mini programs and membership programs to provide higher quality service and customer experience
To upgrade systems and tools for more efficient operations and decision making, such as our digital tools for restaurant general managers, 'Pocket Manager' and 'Super Brain'.
To further optimize delivery order queuing, trade zones, and rider routing
To enhance food safety and streamline operations from farm to fork
In addition, we continue to harness technological innovation to integrate AI across the entire customer service journey. Powered by AI, we have established an intelligent end-to-end service system covering "ordering, fulfilment and delivery, and post-dining feedback," leveraging digital and smart technologies to deliver a seamless, convenient, and reliable dining experience.
Mechanism
Platform
System
Yum China Compliance Oversight Committee (the "Compliance Committee") is responsible for assisting the Board and Audit Committee in overseeing the Company’s cybersecurity risks. The Compliance Committee meets regularly to discuss legal and regulatory developments on cybersecurity, assess the Company's emerging cybersecurity risks and mitigation plans, and determine strategy to promote cybersecurity compliance.
Our internal audit team performs audits to assess the Company's information security system and report audit results to the Audit Committee and the Compliance Oversight Committee.