Yum China has integrated the management of sustainability-related impacts, risks, and opportunities into its internal management processes. Based on the results of the materiality assessment, the Company identifies its annual sustainability priorities and action plans. Additionally, we have adopted our Yum China Stakeholder Engagement Policy to foster effective communication with our stakeholders while taking into consideration both internal and external expectations and requirements.

Since the first materiality assessment conducted in 2017, we have established a process of "reviewing, identifying, prioritizing, and validating" material topics. In subsequent years, we re-evaluate these topics annually to ensure that the assessment results accurately reflect the Company's operation status and stakeholder considerations.

In 2024, we conducted peer benchmarking based on various factors such as characteristics and development stage of our industry, business model, and value chain. We identified various potential material topics incorporating the latest regulations, industry standards and development trends. Through online surveys, we collected responses from internal and external stakeholders and then identified and ranked 23 material topics. In 2025, we conducted a comprehensive review and determined that the prior year's findings remain applicable.