China Oceanwide Corporate Social Responsibility Report �� China Oceanwide Corporate Social Responsibility Report

China Oceanwide Corporate Social Responsibility Report China Oceanwide Corporate Social Responsibility Report

中国泛海企业社会责任报告

01 报告说明 01 02 董事长致辞 03 07 以人为本，成就员工未来 51 08 携手伙伴，推进合作共赢 67

03 关于中国泛海 07 04 公司治理 23

73 81 09 环境友好，构建绿色生态 10 回馈社会，促进和谐发展

商业价值，奠定发展基石 29 百年知己，打造优质服务 37 05 06

CONTENTS

People-oriented for Employees’ Work with Partners to Promote Introduction 02 Message from Chairman 05 01 02 07 Future 53 08 Win-win Cooperation 69

Diversified Employee Composition 53 Fair Cooperation 69

Sound Remuneration and Welfare System 54 Responsible Procurement 70

About China Oceanwide 09 Corporate Governance 25 04 Broad Space for Development 57 Emphasizing Labor Rights 72 03

Overview 09 Organizational Structure 25 Rich Team Activities 61 Data 2018 13 Risk Control 26 Comprehensive Safety Guarantee 66

Remarkable CSR Awards 13

Responsibility Management 17 Environmentally Friendly for Give Back to the Society to 75 09 Green Ecology 10 Promote Harmonious Development 83 Business Value Lays the Centuries-old Bosom Friend 31 Green Office 75 Help Poor Students with Access to Education 84 Foundation for Development for High Quality Service 39 05 06 Green Building 76 Encourage College Students’ Start-up and

Seek Improvement in Stability in The Business Innovation-driven, Upgraded Products and Services 39 Employment 87 Performance 31 Green Energy 80

Priority and Strict Control of Construction Quality 43 Continuously Help People Combat Poverty 88 Green Investment 80 Continuously Strengthened Financial Services 31 Warm Service for a High-quality City Life 47 Support Academic Research and Development Real Estate Business Transformation and in Universities and Colleges 92 Development 32 Continuous Investment with Emphasis on Technology Research and Development 50 Encouraging Employees to Participate in Promote Diversified Strategic Investment 35 Public Welfare 96

Active Layout of the Energy Industry 36 中国泛海 CORPORATE SOCIAL 企业社会责任报告 RESPONSIBILITY REPORT

Introduction

01 This report is the tenth social responsibility report published by China Oceanwide Holdings Group Co., Ltd. (hereinafter referred to as “China Oceanwide Holdings Group”, “China Oceanwide”, the “Company”, or “We”), which reveals the Corporate Social Responsibility (CSR) performance of China Oceanwide from the perspectives 报告说明 of stakeholders such as shareholders, customers, employees, partners, environment and the public, etc. in 2018.

The Board of Directors of China Oceanwide hereby certifies that all information included in this report is accurate and authentic.

[ Duration ] [ Compilation References ] The report covers the period from January 1 to This report has been prepared following the Sustain-

December 31 of 2018. Some contents, according to ability Reporting Guidelines (Version 4.0) issued by requirements, were collected in previous or later Global Reporting Initiative (GRI), the basic principles years as necessary. of Guidelines on Preparation of China Corporate Social Responsibility Report (Version 3.0) and Guidance on Social Responsibility (ISO26000 [ Applicability ] standard), and meanwhile based on the facts of China Oceanwide. This report is applicable to China Oceanwide Holdings Group and its subsidiaries directly or indirectly controlled by means of sole ownership or [ Access to This Report ] shareholding. For the electronic version of this report, please visit the official website of China Oceanwide (www. [ Publication Cycle ] chinaoceanwide.com) or scan the QR Code of the website. The CSR report of China Oceanwide is published on an annual basis. Address: Floor 23rd , Tower C, Minsheng Financial Center，No.28 Jianguomen Inner St, Dongcheng [ Explanation on Data ] District, Beijing, China. Postal code: 100005 Unless otherwise specified, all data and information Tel: (8610) 85259864 quoted in this report are from internal statements, Fax: (8610) 85259898 publications, websites and related statistics. The currency unit used is RMB yuan. [ Compilation Principles ] Authentic, objective, complete, accurate, scientific, normative, trustworthy and transparent.

中国泛海中国泛海企业社会责任报告企业社会责任报告 02

董事长致辞

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2018 is an unforgettable year for the development of Oceanwide. The macro situation with increasing downward economic pressure and the highly competitive development environment for private enterprises brought unpredictable difficulties and unprecedented challenges to our enterprise. The board of directors of the 02 Group insisted on the strategic principle of “going with the trend”. All the Oceanwide employees united together, faced difficulties and forged ahead to have effectively dealt with and resolved various risks, practically promoted the comprehensive transformation and optimization of the enterprise, and laid a good foundation for the system- Chairman’s Message atic solution of the enterprise's problems and the smooth realization of the transformation and development.

In 2018, various financial enterprises affiliated to China Oceanwide operated in compliance with the state's needs as well as laws and regulations, assisted the real economy through strategic investment and financial services, and facilitated independent innovation, transformation and upgrading of China’s national industries. Green development and green operation were maintained for the real estate business. The construction of Wuhan Central Business District has innovated the construction, management and operation mechanism of urban functional areas and urban complexes. Technology, culture, energy and other enterprises have also made positive progress on the work done in the past.

In 2018, China Oceanwide adhered to the corporate belief of the integration of “society, enterprises and individ- uals” in terms of “objective, responsibility and interest” and actively fulfilled its social responsibilities. The “Oceanwide Education Aid Project” implemented since 2016 continued to benefit impoverished college freshmen in ten provinces and cities. The Oceanwide Sailing College Student Start-Up Sponsoring Project has entered its eighth year and helped Xundian County of Yunnan Province in successful poverty alleviation to have contributed to the national poverty alleviation campaign.

The year 2019 marks the 70th anniversary of the founding of the People's Republic of China, and is also a crucial year for Oceanwide to fundamentally and systematically solve corporate conflicts and achieve transformation and development. The board of directors of the Group will strive to create a favorable development atmosphere, practice the corporate spirit of the “sixteen characters” of Oceanwide, scientifically grasp the macro trend and national development strategy, innovate and operate the core industry of Oceanwide, optimize and improve various business platforms, and promote the quality, efficiency and sustainable development of the enterprise.

The year 2018 marks the 40th anniversary of China's reform and opening up which accompanied the birth and growth of China Oceanwide. Actively fulfilling social responsibilities has been the consistent choice of Ocean- wide for decades. To run and develop the enterprise well so as to serve the country and benefit the people's In 2019, China Oceanwide will continue to conscientiously fulfill corporate social responsibilities to repay the livelihood is the primary responsibility for the enterprise to fulfill its social responsibilities. state, the society, shareholders, employees, partners and customers, make further progress on Oceanwide business, and make Oceanwide a first-class group enterprise with greater social contribution, reputation, to make better contribution in the realization of the great “China Dream”. Thanks to the policy guidance of the Party and the State in the past 40 years. The care and support of friends from all sectors of society, and the joint efforts of the staff, the cause of Oceanwide has been increasingly growing. At the same time, with China’s economic development and social progress and continuous industrial transformation and optimization, the enterprise development continues to achieve new progress and leap. Chairman: Lu Zhiqiang

03 关于中国泛海 About China Oceanwide 中国泛海中国泛海企业社会责任报告企业社会责任报告

关于中国泛海

一、集团概况

CORPORATE SOCIAL CORPORATE SOCIAL RESPONSIBILITY RESPONSIBILITY REPORT REPORT

China Oceanwide’s investments in the financial sector mainly go to banks, securities, futures, trust, insurance, pawnbroking and insurance brokerage. Financial institutions controlled by the Group mainly include Minsheng Securities Co., Ltd., China Minsheng Trust Co., Ltd., Asia-Pacific Property & Casualty Insurance Co., Ltd., Minsheng Futures Co., Ltd., Beijing Minsheng Pawnbroking Co., Ltd., Minsheng Insurance Brokers Co., Ltd., and the financial institutions in which the Group has shares include China Minsheng Banking Co., Ltd., etc. 03

China Oceanwide always sticks to the corporate belief of “three integrations”: the integration of social objective, corporate About objective and individual objective; the integration of social responsibility, corporate responsibility and individual responsibility; the integration of social interests, corporate interests and individual interests, and practices the core corporate value of “from the society, for the society”. The Group engages itself in a series of social welfare undertakings, including poverty China Oceanwide alleviation in central and western China, new rural area poverty alleviation construction, school and higher education, old revolutionary base area construction, aid for the disabled, Glory Programs, desertification control and well digging, fighting flood and drought and disaster relief, earthquake relief, culture and art, and college students innovative undertak- ing. The cumulative social donation amounts to over 6.5 billion yuan, funding for over 310 public welfare projects.

In 2010, China Oceanwide and chairman Lu Zhiqiang contributed 200 million yuan to establish Oceanwide Foundation, a non-public foundation administrated by the United Front Work Department of CPC Central Commit- I. Overview tee and registered under the Ministry of Civil Affairs. With specialized and standardized operation mode, the foundation provides solid institutional guarantee and accelerated the sustainable, systematic and strategic development of China Oceanwide’s public welfare undertakings.

China Oceanwide Holdings Group is a large private enterprise group thriving together with China’s progress in reform and opening-up. It was founded in 1985 and now has a registered capital of 20 billion yuan. Mr. Lu Zhiqiang In 2013, China Oceanwide contributed 100 million yuan and co-founded China Arts Foundation (CAF) with Chinese National Academy of Arts. is the founder, legal representative, chairman and president of the Group. Mr. Lu Zhiqiang also serves as a member of the standing committee of the eleventh and twelfth Chinese People’s Political Consultative Confer- ence, deputy chairman of Oceanwide Foundation, deputy chairman of China Minsheng Bank and a member of In 2016, China Oceanwide initiated “Oceanwide Education Aid Project”, donating 1.5 billion yuan in 5 years from Board of Trustees of Fudan University, etc. 2016 to 2020, with annual donation amounts to 50 million. Thanks to this project, 10 thousand university freshmen from impoverished families in 6 provinces (municipality or autonomous region) including Guangxi, Chongqing, Hubei, Travelling through a journey of over three decades, China Oceanwide Holdings Group has developed into an Guizhou, Shandong and Shaanxi will be benefited. Since 2017, “Oceanwide Education Aid Project” has furthered its international group rooted in industries, with remarkable social impact and contribution. Its business covers many impact. From 2017 to 2020, 4 provinces have been added to the original list: Hebei, Inner Mongolia, Heilongjiang and fields including real estate and infrastructure, electric power, science and technology, data information technology, Hunan. The total donation was increased from 1.5 billion yuan to 2.3 billion yuan. A total of 460 thousand poor univer- financial service, cultural tourism and strategic investment. It is the controlling shareholder and investor of several sity freshmen will receive support within 5 years. From September to October of 2018, an endowment worth 444.91 listed companies in Chinese mainland and Hong Kong, including Oceanwide Holdings (000046.SZ), Minsheng million yuan for the year 2018 was allocated to ten places through “Oceanwide Education Aid Project”, having Holdings (000416.SZ), China Oceanwide Holdings Limited (00715.HK), Tonghai Financial (00952.HK), Minsheng supported more than 90 thousand students.

Bank (600016.SH, 01988.HK), and Legend Holdings (03396.HK), building up considerable and comprehensive strengths in a range of arenas. The Group now has over 100 subsidiaries and employs nearly 10,000 staff, with its China Oceanwide Holdings Group and its subsidiaries together with chairman Lu Zhiqiang have been conferred many businesses operated in major cities in Chinese mainland such as Beijing, Shanghai, Shenzhen, Wuhan and reputable titles and awards, including “Glory Program Medal” by ACFIC and the China Society for Promotion of the Hangzhou, as well as in Hong Kong and foreign countries like the United States, Indonesia and Australia. Glory Program, “People Never Forget Award” by ACFIC, “Credible Taxpayer of the Country” by the State Administra- tion of Taxation and ACFIC, “Outstanding Builder of Socialism with Chinese Characteristics” jointly by the United Front In the field of real estate and infrastructure construction, China Oceanwide Holdings Group has a capacity to Work Department of CPC Central Committee, NDRC, the Ministry of Human Resources and Social Security, the State develop its comprehensive businesses in large volume and multiple formats, and its project layout has been Administration for Industry & Commerce and ACFIC, “Special Contribution Award” under China Charity Award, expanded from Beijing, Shanghai, Shenzhen, Wuhan, Hangzhou, Qingdao and other domestic first and second “National Earthquake Relief Model 2010”, “People’s Social Responsibility Award 2010”, “China’s Top 10 Charity tier cities to Los Angeles, San Francisco and other overseas markets. Enterprise Award 2011”, “Most Respected Man of the year” by the Hurun Rich Report 2012, “Corporate Social

Responsibility Outstanding Entrepreneur 2012” by Xinhuanet, “Most Charitable Enterprise” at the 8th China Charity Award in 2013, “Advanced Individual of National Social Poverty Alleviation in 2014”, “Special Contribution Award of Power industry is a new investment field of China Oceanwide in accordance with its own development strategy the 20th Anniversary of China Glory Program”, “Most Charitable Enterprise” at the 9th China Charity Award in 2015, and the national energy development strategy. Currently, the Group has invested in such key projects as Power “Minsheng Founding Hero” Award at 20th anniversary of China Minsheng Bank, and “Contribution Award” under the Plant Project in Indonesia and Shaanxi Hongdunjie Coal-electricity Integration Project, etc. first “National Award of Poverty Alleviation 2016”, “Nationwide Advanced Private Enterprise of ‘thousands of enterprises hand in hand with thousands of underdeveloped villages’ Targeted Poverty Alleviation Program” in 2017, No.1 on Currently, key corporations and projects invested by China Oceanwide include Legend Holdings Co., Ltd., CITIC the “China Charity Ranking 2018”, No.6 on the “China Foundation List (Non-Public)”, and Annual Enterprise Award (Mianyang) Science and Technology City Industrial Investment Fund, Shanghai Financial Development Invest- under “People’s Enterprise Social Responsibility Award”. In 2018, the exemplified deeds of China Oceanwide ment Fund, Australian Copper Mine Project, CITIC Limited, Yunfeng Capital and BAIC BJEV, etc. Holdings Group’s participating in earthquake relief and poverty alleviation were presented in the National Exhibition Celebrating the 40th Anniversary of Reform and Opening-Up.

中国泛海中国泛海企业社会责任报告企业社会责任报告

二、数说2018

三、责任荣誉

CORPORATE SOCIAL CORPORATE SOCIAL RESPONSIBILITY RESPONSIBILITY REPORT REPORT

II. Data 2018 No. 1 on the “China Charity Ranking 2018”, No.6 on the “China Foundation List (Non-Public)”

th Total assets: 329.639 billion yuan On April 25, 2017, the “15 （2018）China Charity Ranking” sponsored by China Philanthropy Times ranked Chairman Lu Net profit: 0.255 billion yuan Zhiqiang of China Oceanwide Holdings Group as the top of the China Charity Ranking with an annual donation of 730 million yuan and Oceanwide Foundation the 6th place on the China Total tax: 5.76 billion yuan Foundation List (Non-Public) with more than 500 million yuan (accumulated to 27.582 billion yuan over the years) of annual public service expenditures and a total score of 90.1.

Number of jobs provided: 12923

Training programs organized: 3001 The 10th “China Charity Award” On September 13, 2018 China Oceanwide Holdings Group Trainee number: 77026 person-times was awarded the “China Charity Award” by the Ministry of Civil Public donation of 2018: 0.583 billion yuan Affairs, which had been the fifth time that China Oceanwide Holdings Group won this award in a row. Cumulative donation since its establishment: over 6.5 billion yuan

Annual Enterprise Award under “People’s Enterprise Social Responsibility Award” III. Remarkable CSR Awards On December 17, 2018, China Oceanwide Holdings Group won the Annual Enterprise Award under “People’s Enterprise Social Responsibility Award” at the People’s Social Responsi- bility Summit Forum sponsored by www.people.com.cn.

No.3 on the Top 100 Philanthropists of China 2017 th Chairman Lu Zhiqiang came third with a donation of 1.26 China Oceanwide’s Glorious Presence on the 40 billion yuan in the “Top 100 Philanthropists of China 2017” Anniversary Exhibition of Reform and Opening-Up jointly released by Shenzhen International Public Welfare College, China Public Welfare Research Institute of Beijing On November 13, 2018, “Great Reform—Large Exhibition Normal University and International Public Welfare College th Celebrating the 40 Anniversary of Reform and Opening-up” on February 7, 2018. opened at the National Museum of China. In the fifth exhibition area, “Great Power Atmosphere—Booming Chinese Enterprises”, the exemplified deeds of China Oceanwide Holdings Group’s participating in earthquake relief and poverty alleviation was displayed in the section of “constant demonstration of corporate responsibility”.

中国泛海中国泛海企业社会责任报告企业社会责任报告

四、责任管理

CORPORATE SOCIAL CORPORATE SOCIAL RESPONSIBILITY RESPONSIBILITY REPORT REPORT

IV. Responsibility Management

● Beliefs and Values Corporate Values From the society, For the society Over years, China Oceanwide has been adhering to the core corporate value of “from the society, for the society”, which is fully practiced as part of the enterprise culture and corporate belief of the Group.

Corporate Spirit Diligence, Faith, Loyalty, Dedication, Entrepreneurship, Innovation, Aspiration, Ambition Since its establishment, China Oceanwide has defined its corporate spirit as “Diligence, Faith, Loyalty, Dedication,

Entrepreneurship, Innovation, Aspiration and Ambition” and made it the basic code of conduct for everyone in China Oceanwide. Corporate Belief Integration of Social Objective, Corporate Objective and Individual Objective We always adhere to the corporate belief of “three integrations”, which keeps social progress, enterprise growth Integration of Social Responsibility, Corporate Responsibility and Individual Responsibility and personal development closely aligned, in order to share our values and fruit of development with society. Integration of Social Interests, Corporate Interests and Individual Interests

Corporate Ideology Common Morality, Common Mind, Common Toil, Common Success, Common Enjoyment

Corporate Vision To build China Oceanwide into a frst-class enterprise group with great social contribution, reputation and respect.

● Responsibility Management and Strategy

For more than 30 years, China Oceanwide has continued to promote corporate social responsibility. It has established a standardized and specialized mechanism for CSR operation and management, and has promoted the integration of CSR concepts and daily business operations to fulfill its social responsibilities. In addition, China Oceanwide undertakes charitable activities and public welfare activities based on public welfare foundation in order to promote the development of social welfare undertakings in China and fully manifest the social value of private enterprises and entrepreneurs.

中国泛海中国泛海企业社会责任报告企业社会责任报告

CORPORATE SOCIAL CORPORATE SOCIAL RESPONSIBILITY RESPONSIBILITY REPORT REPORT

● IV.Communications Responsibility among Management Stakeholders ● Advocacy of Corporate Social Responsibility The main business of Beijing Economic Observation Cultural Media Co., Ltd. under China Oceanwide covers Communications among stakeholders is an essential component of CSR management. As a way to communicate market activities, enterprise planning and propagation and new media of The Economic Observer. By sponsoring with our stakeholders and publicize the social responsibility performance of China Oceanwide and further accept activities like outstanding enterprise competition, Economic Observation Culture Media advocates enterprises to public supervision, Annual Corporate Social Responsibility Report has been published by China Oceanwide for take proper social responsibility and promotes the development of corporate social responsibility in China. ten consecutive years. Moreover, we learn about the requirements and suggestions of each stakeholder by various other means and fulfill proper responsibilities accordingly.

Stakeholder Stakeholder Focus Communication Means/Methods Responsible China • CSR Annual Ceremony

Operate according to laws; Government-enterprise meeting; Pay taxes according to laws; Government Industrial meeting; Ensure safety in production; Inspection by regulatory departments Promote economic development “Responsible China • 2018 CSR Annual Ceremony” sponsored by the Stable returns; Shareholders’ meeting; Shareholders Economic Observer landed in Beijing. Value increase Annual report/Mid-year report Themed with “targeted empowerment

Salary and benefits; Employee training; and social care”, the conference invited Employees Career development; Employee meeting and activity; enterprises with high-quality cases to Fair competition Internal information system share the experience of practicing social responsibility with the community, so as Fair cooperation; Bids and tenders management; Partners to encourage the benign development Mutual benefit Assessment and investigation of enterprises and pass on positive values to the society. High-quality products; Customer relationship management; Customers Considerate services Customer satisfaction survey “Responsible China • 2018 CSR Annual Ceremony”

Contribute to the community; Public welfare donation; sponsored by the Economic Observer on January 15, 2019 Society Promote harmony Public welfare activity

Green building; Environment Environmental sustainability Energy conservation and emission Observer’s Annual Conference • Salute to Enterprises of the New Era Reduction management and practice

The “Observer’s Annual Conference• Salute to Enterprises of the New Era 2017-2018” sponsored by the Economic ● Analysis of Substantive Issues Observer was held at Meng Minwei Concert Hall, Tsinghua University. Many opinion leaders from the political, Communications with stakeholders is an important source for China Oceanwide to identify its CSR issues. Based business, financial and academic circles on the above-mentioned communication mechanism, and with reference to the GRI’s substantial analysis frame- were invited to the “sustainable growth” work and the suggestions from the third-party research institutes, we have analyzed CSR substantive issues in themed annual conference to give accordance with two dimensions of “relevancy with China Oceanwide” and “the importance for stakeholders”. more reflections and inquiries on the mission and value of enterprises. Based on the analysis, we have selected several key aspects such as corporate governance compliance, risk control and management, product quality control, continuous business profit, customer service quality, employee On December 11, 2018, the Economic Observer held the “Observer’s rights and interests guarantee, win-win cooperation，energy conservation and environmental protection technolo- Annual Conference• Salute to Enterprises of the New Era 2017-2018” gy and application，public welfare undertakings and so on, to be disclosed in details.

04 公司治理 Corporate Governance 中国泛海中国泛海企业社会责任报告企业社会责任报告

04 公司治理

一、公司架构

二、风险控制

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the Shareholders’ Meeting 04 the Board of Supervisors Corporate the Board of Directors Governance President

Executive Vice President

Directorate Secretary Vice President Company Director Assistant President I. Organizational Structure

China Oceanwide Holdings Group has a well-developed corporate governance structure which comprises Board Supervisors Department Board of Directors & Management Department Human Resources Management Department Assets & Finance Compliance Department Risk Control & Legal Department Information Management Department Public Welfare Management Postdoctoral Office Department Funds Management Department Investment Management of Shareholders, Board of Directors, Board of Supervisors and the operational management team. The company Administrative Office Audit & Supervision Department has set up several managerial departments: Board of Directors & Supervisors Department (Administrative Office), Human Resources Management Department, Assets & Finance Management Department, Investment Manage- ment Department, Funds Management Department, Risk Control & Legal Compliance Department, Audit & Super- vision Department, Information Management Department, Public Welfare Management Department, and Postdoc- toral Office, etc.

II. Risk Control

In 2018, guided by the objective of realizing the group’s strategic value, China Oceanwide takes “summarizing, reflecting, optimizing, adjusting, changing and improving” as the core, and sticks to guiding ideology of “unified leadership and hierarchical management” and working principle of “comprehensive risk management”. This principle is based on creating vertically integrated requirements of risk management and risk assessment criteria, unified and standardized internal control operation guidelines and processes, and open channels for internal feedback and accusation. In order to achieve a sustainable growth, the new principles seek to enhance the aware- ness and capacity of systematic risk management through a comprehensive risk identification and risk assessment system, an effective risk control strategy, improved risk supervision and inspection and other mechanisms to finally realize the goal of healthy and steady development of the enterprise, and facilitate Oceanwide’s contribution to the national economic development.

中国泛海 CORPORATE SOCIAL 企业社会责任报告 RESPONSIBILITY REPORT

Minsheng Pawnbroking: build three lines of defense for risk management

Minsheng Pawnbroking strengthens risk control and management through three lines of defense to achieve overall safe operation. Relevant functional departments and business units are the first line of defense, where the company promotes standardized operation by improving the due diligence system; “in-loan review” and “after-loan inspection” are the second line of defense, which means the front-stage due diligence and back-stage due diligence complement each other with the after-loan management enhanced; the third line of defense is the annual internal control with self-evaluation and self-inspection, combined with the professional audit of external audit institutions.

Oceanwide Holdings: strengthen internal control construction

In 2018, pursuing the goal of “legal compliance, asset safety, anti-fraud, and efficiency improvement”, Oceanwide Holdings works together with relevant departments to carry out internal control inspection and organize all business units to generate serial reports on internal control self-assessment and internal control defects, based on which the internal control self-assessment report for the year 2018 of the Company is summarized and the Internal Control Management Manual is revised, with sorting and adding work procedures to continuously improve the internal control system.

Oceanwide Construction Company: carry out contract review and judicial litigation review

The risk control team deployed by Oceanwide Construction Company continuously carries out self-inspection, amends all kinds of contracts, agreements and other legal documents signed by all departments, alerts them to potential risks and provides solutions for prevent- ing legal risks. In 2018, the risk control team of Oceanwide Construction Company reviewed 148 contracts, ensuring that there were no major contract disputes throughout the year. The company was involved in 4 lawsuits for the whole year, of which 2 cases have been settled, and the other 2 cases have been decided in the first instance, and the company won all the lawsuits.

05 商业价值奠定发展基石 Business Value Lays the Foundation for Development CORPORATE SOCIAL CORPORATE SOCIAL RESPONSIBILITY RESPONSIBILITY REPORT REPORT

The company continued to improve the product spectrum of its securities, trust, Internet finance and other fields, with extension of the depth and scope, established a improved service system, and made comprehensive risk management more specialized and refined.

05 Through coordinately integrating and sharing resources within company, China Oceanwide continuously develops its comprehensive finance and insurance platforms, and kept growing against the down-turn trends in the complex economic situation, to effectively improve business capacity and increase the economic benefit steadily, laying a Business Value Lays the solid foundation for the strategic blueprint of the group to become bigger and stronger. Foundation for Development

Minsheng Wealth:

optimize the business structure with growth against the trend in industry fundraising capacity

In 2018, Minsheng Wealth focused on optimizing product structure, increasing product In 2018, China Oceanwide made full efforts to adjust the structure and promote the transition of its international supply, improving product and service capacity, strengthening business management and and domestic businesses, continue to maintain the improvement in stability in the business performance, and promotion, and continuously improving team sales capacity to fully meet the needs of the made new contributions to the development of China’s private enterprises, the construction of industry market, group’s strategic development. Against the backdrop of declining fundraising capacity in and the improvement of employment and tax revenue. the industry, the fundraising capacity of Minsheng Wealth grew against the trend.

I. Seek Improvement in Stability in The Business Performance Minsheng Trust: in-depth layout in five strategic fields to actively echo with the development of the real economy

China Oceanwide conducted a development strategy of “advance with the times” and adjusted its activities As an economy in the financial industry, under the correct guidance of the board of accordingly. Besides, the company optimized and adjusted structure comprehensively and systematically, directors, the company quickly recognized the situation, promptly made strategic adjust- promoted the transformation of international and domestic business and the separation of different internal ment, made in-depth layout in five fields including “investment, investment banking, asset industries, and provided a powerful guarantee for the company to step into the new era through the industrial management, financing and wealth”, following the development path of “active manage- structure and profit model which are more suitable for the social development trend. ment and investment banking”. In 2018, as an echo with the national strategy of facilitating the real economy, the company actively engaged in the national shipbuilding industry and China Oceanwide achieved a total operating revenue of 18.358 billion yuan and net profit of 255 million yuan in shipping business, high-end manufacturing industry, new energy automobile, new genera- 2018. Among the total operating revenue, the financial industry contributed 7.951 billion yuan, accounting for tion of information technology industry, rural revitalization project and other real economy 43.31%; the real estate industry contributed 4.349 billion yuan, accounting for 23.69%; and the other industries industries, making unremitting efforts to explore the path of high-quality coordinated contributed 6.058 billion yuan, accounting for 33.00%. development between financial capital and industrial capital.

II. Continuously Strengthened Financial Services III. Real Estate Business Transformation and Development

Long-term layout in the financial sector with intensive cultivation, and vision of progress is the current important goal and strategic direction of the transformation of China Oceanwide. In 2018, China Oceanwide further strength- In 2018, the real estate market faced a relatively grim prospect and slowed it pace on the whole. China Oceanwide ened its financial business segment, upgraded its products and services iteratively, and made its strategic adjust- flexibly adjusted its development strategy, constantly promoted the transformation of traditional real estate model, ment more forward-looking. and shaped the location value of key cities based on a targeted real estate strategy.

中国泛海中国泛海企业社会责任报告企业社会责任报告

05 商业价值

奠定发展基石

一、经营业绩稳中求进

二、金融业务不断加强三、地产业务转型发展

中国泛海中国泛海企业社会责任报告企业社会责任报告

五、能源产业积极布局

四、推进多元战略投资

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Wuhan Central Business District embarking on the comprehensive operation development V. Active Layout of the Energy Industry

In 2018, Wuhan Central Business District embarked on a new stage of comprehensive operation development, departing from past single investment construction, with a focus Energy is an important business segment of China Oceanwide. In 2018, in order to make better use of “two on the introduction of industrial resources, especially the introduction of financial and markets and two resources”, China Oceanwide cooperated with state-owned enterprises sincerely and gave full technological institutions into the system, hence realized a benign interaction between play to their complementary advantages, which is of great strategic significance for improving China Ocean- government and enterprises, achieved good results in assets operation, and doubled the wide’s competence at home and abroad. quantity and volume of project operation.

Power projects in Indonesia have blossomed in response to the national strategy Qingdao Minsheng Financial Center established to aggregate new potential energy of the industry In response to the Belt and Road Initiative”, the Medan project in Indonesia is set to tackle the electricity shortage problem in Indonesian market, promote the development In January 2018, Oceanwide Holdings Qingdao was transformed from a development of Indonesian economy, and create a favorable image of Chinese private enterprises in company to a self-operation one, and transformed the mall into a double-innovation park overseas investment and construction. office building, namely the “Minsheng Financial Center”. At present, the pre-operation inspection of the office building has been carried out to ensure that tenants can enter at any time, declaring the start of office building operation.

Support national high voltage line projects with Hongdunjie Coal and Power Integration Project started

Hongdunjie Coal and Power Integration Project is a supporting power source of the power project where 1,000KV UHV AC transmission from Yuheng in northern Shaanxi IV. Promote Diversified Strategic Investment to Weifang built by the State Grid Corporation of China. The designed production capacity of Hongdunjie coal mine is 10 million tons/year. The total geological resources and reserves of minable coal seams in the well field are 2.09574 billion tons, with fine coal quality and simple mining conditions. The preliminary work of the power plant in the In 2018, China Oceanwide had further enhanced its brand influence by focusing on the transformation and Hongdunjie Coal and Power Integration Project has been completed and the construc- development strategy combining industry and finance, and optimizing diversified strategic investment through tion started in 2018. investment in several potential industries at home and abroad.

By the end of 2018, Oceanwide Equity Investment Management Co., Ltd. had been consistently profitable in terms of assets under effective management. As an important platform for China Oceanwide to carry out strategic investment and capital operation, it has made successful investmentsin JD Logistics, Nio old stock transfer, Horizon Robotics, Netease Cloud Music, HoloMatic among others, covering various industries and fields at home and abroad. In the first half of 2018, it ranked among the top 35 Chinese PE institutions and the top 50 PE institutions of the year. At the same time, it completed a special subject on overseas investment guiding fund established by Beijing Municipal Commission of Commerce.

06 百年知己打造优质服务 Centuries-old Bosom Friend for High Quality Service 中国泛海中国泛海企业社会责任报告企业社会责任报告

06 百年知己

打造优质服务

一、创新驱动，升级产品与服务

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Asia-Pacific P&C Insurance:

participate in the construction of social medical service system to safeguard people’s livelihood

06 In February 2018, Asia-Pacific P&C Insurance gave full play to its own advantage as a commercial insurance company by cooperating with the government of Tengzhou, Centuries-old Bosom Shandong Province to develop an one-year accidental injury hospitalization medical insurance (2018) product for Shandong residents, effectively solving the problem in reviewing hospitalization cases due to accidental injury for social medical insurance Friend for High Quality Service departments at all levels in Shandong Province.

In addition, the company had also developed another two products, namely construction project bidding guarantee insurance and migrant workers wage payment insurance to reduce the burden of construction enterprises. They help construction units to avoid wage arrears for migrant workers which may arise in project construction, giving full play to the social governance function of insurance, to safeguard the legitimate interests of the Adhering to the service principle of “being a century-old bosom friend with sincerity”, China Oceanwide pays migrant workers, and maintain social stability and harmony. attention to the needs of customers, constantly innovates financial products and improves service quality, bringing more value and better service experience to customers.

Minsheng Wealth:

establish member club for customers to improve member experience I. Innovation-driven, Upgraded Products and Services In order to enhance customer interaction and member experience, Minsheng Wealth set up four clubs for member customers: Walking Club, Yisheng Club, Future Leader Club China Oceanwide continuously optimizes financial products and services according to the needs of customers, and “Her” Enjoyment Club. and provides customers with the most high-quality and convenient financial services. Innovation is an important driving force for the sustainable development of enterprises. China Oceanwide vigorously cultivates a culture of In 2018, Minsheng Wealth Walking Club held a walking campaign called “Walking for a innovation and attaches importance to financial product innovation and service upgrading to be a pioneer and Healthy and Enjoyable Life”, which lasted for two months from early spring to midsummer, driver of financial ecology. covering 16 branches in 10 cities across the country. This walking activity not only promotes the close interaction between clients and consultants, but also enables clients to enrich their daily life while enjoying the wealth appreciation.

Minsheng Securities:

build an intelligent investment platform to effectively control risk for customers Minsheng Trust:

upgrade mobile APP to enhance customers’ product perception Minsheng Securities released a new version of Minsheng Securities Caifuhui APP through the Internet software platform, and has established an improved and comprehensive intelligent investment and consulting platform through “Huangjinbao”, “Gongzibao”, In 2018, Minsheng Trust launched a new mobile APP, where customers can not only “Dingtoubao”, “Zuhebao” and other scenario-oriented assisting tools to provide globalized inquire about the company’s product information, but also redeem gifts at the APP’s store asset allocation service of all asset classes and full life cycle for customers. with accumulated points. Based on AM system, the APP provides with more convenient functions for users. On the one hand, the net value of products on the official website can At the same time, Minsheng Wealth APP developed a function of AI investment consul- be automatically updated, to ensure customers’ access to information in a timely manner. tant, using quantitative strategy and machine learning algorithm combined with the On the other hand, any account activities like money transfer, income distributionand application of big data, to build personalized fund investment portfolio for customers, product liquidation can be notified to customers via instant text message to comprehen- giving priority to control the investment portfolio risk of customers. sively improve customer perception of product status.

中国泛海中国泛海企业社会责任报告企业社会责任报告

二、品质为先，严控建筑品质

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Minsheng Trust Awards Overview 2018 Product quality inspection procedure of Oceanwide Construction Holdings Company

·“Best Trust Company of the Year” on the Oriental Fortune List ·Most Innovative Trust Company of Evergreen Award by Caijing Magazine ·Gold Trust Company of the Year of Golden Pixiu Award for Financial Planning Oceanwide Construction Holdings Company carries out project inspection on a weekly, ·“Pioneering Award” Under the 4th China Maritime Finance Altair Award monthly, random and quarterly basis, to examine the construction work according to the ·“Pioneering and High-Growth Trust Asset Management Business Award 2018” by the stage of site construction, and prompt rectification for the problems. International Finance ·“China Excellent Trust Company” by the Securities Times Weekly inspection ·“Sincere Trust -- Leading Innovation Award 2017” by the Shanghai Securities News ·“Outstanding Trust Company” Award Under “China Asset Management ‘Golden Shell’ Inspection period: once a week; st Award” by the 21 Century Business Herald Content of inspection: quality of construction site, safe and civilized construction; ·“China’s Most Progressive Trust Company Award” in the Asian Banker - Global Wealth Inspected by: professional engineers of the construction unit, main site management and Society Award Program 2018 personnel of each unit, professional supervision engineers. ·“Outstanding Comprehensive Strength Trust Company” by the Economic Observer ·“Outstanding Competitiveness Trust Company 2018” by the China Business Journal ·“Most Competitive Trust of the Year” by the Financial Times Monthly inspection ·“Outstanding Trust Company” Award Under “China Asset Management ‘Golden Shell’ Inspection period: once a month; Award” by 21st Century Economy Report Content of inspection: progress at the whole construction site, quality, safe and civilized ·“Best Trust Company 2018” on the Oriental Fortune List construction and engineering data； Inspected by: engineering manager of the construction unit, professional engineer, general contractor project manager, person in charge of production, technology, quality and safety, subcontract project manager and main management personnel, director or director representative, and professional supervision engineer.

Random inspection

Either or both professional engineer of the construction unit and professional supervision II. Priority and Strict Control of Construction Quality engineer should conduct random inspection for key processes and key parts of the projects. Relevant photos shall be taken for problems found and relevant units shall be informed of rectification, which will be reported at the weekly meeting. Quality is the lifeblood of an enterprise. China Oceanwide has established a sound project management system, which controls the construction quality in different stages, before, during and after the construction, and promotes the long-term operation of the quality control system in daily work. Quarterly inspection by the group

Inspection period: the first month after the end of each quarter. Content of inspection: deviation between project progress and the planned node, Wuhan Company formulates detailed quality control rules to improve product quality construction condition on working surface, physical quality of completed parts and corresponding materials on site, safe and civilized construction on site and engineering data; Inspected by: group leader, engineering director of construction unit, engineering department manager, professional engineer, general contractor project manager, director, and In order to strictly control the quality of construction products, the Wuhan Company has subcontractor project managers. formulated the detailed rules and regulations on quality control for landscape, electrome- chanical equipment, fine decoration, curtain wall and so on. Through the implementation of high standards and strict requirements, the product quality has been greatly improved.

中国泛海中国泛海企业社会责任报告企业社会责任报告

三、温情服务，打造优质城市生活

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III. Warm Service for a High-quality City Life August 2018

The 10th Swimming Competition of Oceanwide Hangcheng Club China Oceanwide adheres to the standardized management service system with “three standards in one”: constantly optimizes the service process, improves service efficiency, pays attention to service details, enhances interaction with customers, and guarantees service quality, so as to bring customers efficient, considerate, September 2018 comfortable and pleasant experience. “Romantic Mid-Autumn Festival” — Mid-Autumn Festival activities at Beijing Oceanwide International Residential District, Oceanwide Shijia, Oceanwide Rongjun, Oceanwide Hanghai Club, Shanghai Oceanwide International Residential District and Harbour Ring Plaza

October 2018 Representative community activities of Oceanwide Property in 2018 “Deep Respect for the Elderly at Double Ninth Festival” — Double Ninth Festival activity for the elderly at Weifang Oceanwide City Garden

November 2018 January 2018 Jinan Branch Fire Prevention Activities Send red “Fu” character for Chinese New Year--Phase I and Phase II Oceanwide International Residential

District, Wuhan Branch, Weifang Branch and Fushun Branch sent gifts into homes to bring luck for New Year’s. December 2018

February 2018 “New Year’s Eve Carnival” activity at Beijing Oceanwide Shijia

Clean Your House — New Year dust removal action of Shanghai Oceanwide International Residential District

March 2018

Zero-stress rooms launched by Weifang Oceanwide Hotel to provide better sleep experience “I Grow with Small Trees” — Tree-Planting Day activity of Beijing Oceanwide International Residential District

April 2018 In 2018, Weifang Oceanwide Hotel cooperated with Mlily to launch zero-stress rooms with zero-stress products from Mlily in the hotel, to provide more accommodation options and better “Passion in My Heart” — badminton game at Hangzhou Oceanwide International Center and the Minsheng sleep experience for guests following the concept of increasing deep sleep for one hour. Financial Center

May 2018

“Joyful Childishness” — Children’s Day activity at Oceanwide Shijia and Oceanwide Rongjun Tsingtao Oceanwide Elite Hotel improves work procedures and service quality

June 2018 In order to provide guests with better service, in 2018, Tsingtao Oceanwide Elite Hotel

further refined and improved the relevant work procedures and regulations of VIP “World Environment Day”— publicity activity by Beijing Minsheng Financial Center assistants, and developed a detailed training and rotation plan for VIP assistants. At the same time, VIP guest preference table is made for the guests who have stayed in the hotel July 2018 for many times, and statistical measures are properly taken for documenting guest history, so as to provide one-to-one professional service to the guests, and actively seek the “Cool for Summer by Oceanwide” — cool for summer activity of Hangzhou Company opinions of the guests, so as to meet the demands of the customers to the greatest extent.

中国泛海 CORPORATE SOCIAL 企业社会责任报告 RESPONSIBILITY REPORT

四、持续投入，重视技术研发 IV. Continuous Investment with Emphasis on Technology Research and Development

The competition and development of enterprises are built on the basis of technological advantages. China Ocean- wide has always attached great importance to the concept of technological innovation, increased investment in technological innovation, and improved the mechanism of technological innovation, so as to promote continuous progress of the enterprise.

Fanhai Sanjiang Company continues investment to promote technological innovation In the past year, Fanhai Sanjiang restructured its research and development system, set up a research and development center, and continued to invest 10% of annual sale income in research and development to pursue scientific and technological innovation and provide industry-leading solutions. In 2018, the investment in research and development reached up to 56.08 million yuan. The product management department of the company has conducted many surveys to understand the real needs of customers and collect their opinions on products. At the same time, the company further improves the technical service network, strengthens training for technical service personnel and improves the service capacity of technical service personnel to provide products and the service of the highest quality to customers.

Number of intellectual property rights authorization received by Fanhai Sanjiang in 2018

invention patents utility model patents design patents software copyright

07 以人为本成就员工未来 People-oriented for Employees’ Future 中国泛海中国泛海企业社会责任报告企业社会责任报告

07 以人为本成就员工未来

二、薪酬福利完善

一、员工构成多元

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Index Unit 2016 2017 2018 07 Total number of employees Person 13339 14402 12923 No. of senior executives Person 273 271 232 People-oriented for No. of new employees Person 4414 4197 3448 Employees’ Future No. of female employees Person 5376 5743 5327 No. of female senior executives Person 50 56 49

No. of minorities employees Person 387 505 438

No. of minorities senior executives Person 7 6 6

No. of disabled employees Person 84 126 44

No. of fresh graduates recruited Person 643 522 380 Since employees are the core competence of an enterprise, China Oceanwide adheres to the “people-oriented” concept, to provide employees with sufficient growth space and improved salary and benefits, to ensure the safety and health of employees and pay attention to the development and future of employees.

II. Sound Remuneration and Welfare System

China Oceanwide strictly observes Labor Contract Law of the People’s Republic of China. It signs labor contracts with all employees, covers social insurance, accident insurance and supplementary medical insurance for employees, and guarantees their right of enjoy paid annual leave, maternity leave, marriage and funeral leave and other leave in a standardized system.

In addition to the employee benefits stipulated by national laws, China Oceanwide also provides employees with annual health check package, commercial insurance including hospitalization medical insurance, accident term life insurance, disease condolence, funeral condolence, retirement condolence and other benefits. I. Diversified Employee Composition The company also attaches great importance to the work and life of female employees. In addition to the annual physical examination for all employees, Minsheng Securities specially arranges gynecological physical examination for female employees once a year. According to the regulations of Jiuzhou Yinghong Company, relevant depart- With an open attitude to extensively absorb talents, China Oceanwide adheres to the principle of equality, fairness ments may adjust the internal work division as appropriate for pregnant female employees to take a rest in time. and justice in employment procedures, and guarantees equal employment right for women, ethnic minorities and the disabled. In order to ensure that each employee’s efforts can be rewarded, China Oceanwide and the companies affiliated to the group timely adjust the salary system according to the business development, raise the salary level of employees, and improve the salary satisfaction of employees to their salary. By the end of 2018, China Oceanwide has 12923 employees in total, of which women accounts for 41.2%.In 2018, 380 new graduates were recruited. China Oceanwide advocates “Happy work and Happy life”. It also sets “Hibucks”, an employees’ communication space, to provide food and drink every day so as to promote communication and exchanges among employees.

中国泛海中国泛海企业社会责任报告企业社会责任报告

三、发展空间广阔

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Oceanwide Property conducts employee interviews to understand employees’ needs Oceanwide Property carries out various forms of training based on project operation

In 2018, the human resources department of Oceanwide Property conducted interviews In 2018, in addition to basic training, the training center of Oceanwide Property Company with 20 officer employees of all units in Beijing and 115 employees of projects, communi- actively carried out different forms of special training based the actual operation of the cating on the issues of job responsibilities and scope of employees, work processes and company’s projects, built employee training system and team, and improved the profes- standards of departments, and employees’ satisfaction on work stress, salary, working sional quality of employees. The training was also recognized by external organizations. environment, team atmosphere, so as to understand the needs of the employees, take At the “China Business Learning New Year Summit 2019”, Oceanwide Property won the their suggestions, and provide better working environment for employees. “Best Content Development Award for Business Learning” for the third year in a row.

Management training Organized the “Special Training for Micro-lecture”, delivered 40 lectures to employees for learning.

Trainer team construction Conducted evaluation and selection for junior, intermediate and senior trainers under the III. Broad Space for Development principle of “survival of the fittest”, and selected a total of 45 trainers for the company. Online learning platform operation Updated 1,000 managerial and general skill courses, and distributed 3 learning tasks to China Oceanwide attaches great importance to the career development of employees, hence provides a fair the management. platform for their development and promotion, helps them grow rapidly through diversified training system, builds a broad career development platform for employees, and encourages them to give full play to their potentials. Reserve talent team construction Organized 120 reserve talents to study online video course and take the exam.

Accompany employees to participate in the vocational skills competition China Oceanwide Employee Training Overview 2016-2018 Paid close attention to the Beijing Electrical Vocational Skill Competition, helped employees prepare entry materials, and assisted the Beijing Property Management Association Index 2016 2017 2018 to provide quiet and orderly training classrooms and necessary learning tools, which received recognition from the association. Number of training programs 981 826 3001

Number of trainees (person-time) 25598 28856 77026

Training data of some subsidiaries of China Oceanwide in 2018

Minsheng Trust provides leadership training for middle and senior employees Oceanwide Property 1,974 trainings with 36,400 person-times

Minsheng Trust conducts targeted training according to the training needs of employees Fanhai Sanjiang 251 trainings with 26,000 person-times at different levels. In 2018, Minsheng Trust conducted leadership training for middle and senior employees of the company by combining expansion fusion and course sharing. Asia-Pacific Property & Casualty 43 trainings with 584 person-times Sand table course was introduced for the first time with diversified and interesting deduc- tion and the technique of special management to strengthen the team spirit, improve Weifang Oceanwide Hotel 100 trainings with 353 person-times marketing skills, leadership and communication skills, encourage multi-angle thinking and

problem solving and always keep efficient collaboration and innovation spirit. Wuhan Company 11 trainings with 327 person-times

中国泛海中国泛海企业社会责任报告企业社会责任报告

四、团队活动丰富

中国泛海中国泛海企业社会责任报告企业社会责任报告

IV. Rich Team Activities

China Oceanwide and all its subsidiaries organize various staff activities to construct a happy working and living environment for each Oceanwide employee and to enrich their spare-time cultural life and enhance the team’s cohesion.

Oceanwide Construction Company organized the Sheshan team building activity

Employees of Tonghai Financial Company participated in Trailwalker activity 2018 by Oxfam

Minsheng Trust held the Minsheng Trust annual New Year party 2019

中国泛海中国泛海企业社会责任报告企业社会责任报告

五、安全保障全面

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IDG Australia held a staff exclusive celebration

Dongfeng Company organized an outing

V. Comprehensive Safety Guarantee

China Oceanwide attaches great importance to the occupational safety of employees, strictly abides by relevant laws and regulations, continuously improves and implements the safety management system and daily training, and creates a safe working environment for employees.

Shanhaitian Company purchased safety helmet and puncture proof shoes for construction site employees, and also purchased accident insurance for transportation for employees who often travel on business.

Oceanwide Construction Company attaches greatest importance to the safety of workers at construction sites, so it provides them with safety helmet, safety shoes, safety vest, flashlight and medical kit containing medicine in case of emergencies like heat stroke, wounds and fever. In addition, it urges the construction unit to set up safety warning sign, protective shed, fences, border guards and exit passageway, to ensure the life and property safety Tsingtao Oceanwide Elite Hotel organized fun games of employees.

Fanhai Sanjiang Electronics Company and Shenzhen Guangming Hospital of the University of Chinese Academy of Sciences signed an agreement on occupational disease inspection, which provides health examination for employees in special positions.

08 携手伙伴推进合作共赢 Work with Partners to Promote Win-win Cooperation 中国泛海中国泛海企业社会责任报告企业社会责任报告

携手伙伴推进合作共赢

二、落实责任采购

一、推动公平合作

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Oceanwide Horticulture Company strictly implements the bidding management system

08 In 2018, Oceanwide Horticultural Technology Engineering Co., Ltd. regulated the bidding management system more strictly, following the principle of openness and fairness, and Work with Partners to ensured the full transparency of the whole bidding process. Before the bidding, inspection on the new cooperative units is required to ensure that there are no legal disputes and illegal acts, and that the construction technology meets the requirements of the company; Promote Win-win Cooperation in order to ensure the privacy of the bidding and quotation process, the bidding mailbox shall be established and opened after the bid starts, which shall be uniformly managed by the cost and risk control department. The bidder shall sign the “Honesty Guarantee” to prevent the tenderee and the bidder from conducting private agreement or interest-involved behavior.

The growth of an enterprise depends on the supports from partners. Guided by the principles of “fairness, justice, openness and transparency”, China Oceanwide has developed a long-term relationship of fairness and trust with its partners, strictly implemented the responsible procurement of the industrial chain, fully guaranteed the legitimate rights and interests of workers, and further fostered a complementary and win-win relationship with our partners.

II. Responsible Procurement

In order to promote responsible procurement in the industrial chain, China Oceanwide strictly manages the supply chain and establishes management systems of regular or irregular inspection and acceptance to provide products of the best quality for all customers.

Tsingtao Oceanwide Elite Hotel chooses the best supplier to purchase the best raw materials

After thorough consideration, Tsingtao Oceanwide Elite Hotel chooses the most suitable and best suppliers. The hotel gives priority to long-term suppliers and avoids short-term or one-time suppliers to the greatest extent; the hotel strictly controls the quality of raw I. Fair Cooperation materials, and requires the product quality inspection report and batch inspection certificate provided by the supplier to meet the national quality requirements. The hotel also requires the procurement department, finance department warehouse and user department to check in goods together, and timely return and replace the defective goods Strictly complying with the national laws and regulations, China Oceanwide improves the company’s bidding to effectively prevent the raw materials with quality problems from entering the hotel. management system, prevents commercial bribery and improper transactions, conducts unified management of the whole process of bidding activities, and establishes fair and healthy commercial partnership with contractors and suppliers.

中国泛海 CORPORATE SOCIAL 企业社会责任报告 RESPONSIBILITY REPORT

三、重视职工权益 III. Emphasizing Labor Rights

Protecting labor rights is an important part of corporate social responsibility. China Oceanwide attaches great importance to labor rights and interests, fully protects the legitimate rights and interests of workers in terms of salary payment, construction safety and life care, and is committed to creating a secure and comfortable working environment for them.

Oceanwide Holdings (Wuhan) Company fully guarantees labor remuneration

Wuhan Company explicitly specifies in the contract terms signed with contractors that for any contractor’s defaults on the payment of migrant workers’ wages, the owner has the right to directly pay the wages in arrears according to the opinions of relevant government departments, and the related expenses will be deducted from the project payment to ensure the rights and interests of migrant workers. The contract terms specially set forth the “Commitment Letter to Ensure No Wage Arrears for Migrant Workers”, which requires the contractors’ commitment to follow and lay out the monthly wage plans for migrant workers in the budget of fund using.

Oceanwide Construction Holdings Co., Ltd. focuses on operational safety

According to the major hazard sources in different stages, Oceanwide Construction Holdings Co., Ltd. issues a “Work Contact Sheet” to relevant construction units , which reflects the hidden safety hazards and civilized construction problems found by professional engineers in daily inspection. A copy is also sent to the supervisor to urge relevant units to make immediate rectification. The company also set up a series of reward and punishment provisions. Problematic constructions which cause damage to the image of the company will be fined, and safe and civilized construction praised by the district and city governments will be rewarded.

09 环境友好构建绿色生态 Environmentally Friendly for Green Ecology 中国泛海中国泛海企业社会责任报告企业社会责任报告

09 环境友好构建绿色生态

一、绿色办公二、绿色建筑

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Minsheng Financial Center actively promotes energy conservation and consumption reduction

09 In 2018, Minsheng Financial Center implemented the measures of energy conservation and consumption reduction, committed to building an ecological and energy-saving 5A grade office building: properly regulate the use of refrigerating units and air conditioning Environmentally Friendly terminal equipment to further save electricity and improve efficiency; replace the lighting systems in underground areas of the building to new energy-saving ones; timely adjust the hot water and cold water valves of washbasins on all floors to implement water-saving for Green Ecology and environmental protection measures to every details.

Water and electricity consumption data of Minsheng Financial Center in 2016-2018

China Oceanwide explores the way to live in harmony with the environment, advocates green office, green Type 2016 2017 2018 building, green energy and green investment, promotes measures to protect the ecological environment and reduce energy consumption in the company, and is committed to building a sustainable green enterprise. Water consumption/ten thousand tons 13.99 14.09 14.30

Electricity consumption/ten thousand kW•h 2301.37 2264.09 2169.88

Oceanwide Property actively practices green office

In order to save office costs and improve office efficiency, Oceanwide Property Company launched intelligent software such as Oceanwide E-Life service platform and Langxin system in 2018, and realized paperless and efficient office based on OA office system. It actively advocates the concept of energy conservation and consumption reduction, formulates annual targets of energy conservation and consumption reduction with reference to the consumption in previous years, and conducts statistical analysis every quarter to reduce annual energy consumption year on year, and complete the energy management system certification.

I. Green Office II. Green Building

China Oceanwide is committed to promoting the harmonious coexistence between buildings and the environment, China Oceanwide advocates the concept of “low carbon emission, environmental protection and green”, makes fully implementing the strategy of environmental protection and sustainable development in planning and design, full use of OA network office system to build an integrated office information platform for the group, and realizes procurement of materials, construction and technology research and development, and promoting the green and green office while improving office efficiency. ecological development of cities.

中国泛海中国泛海企业社会责任报告企业社会责任报告

三、绿色能源

四、绿色投资

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Dalian Company optimizes the integration of resources for planning and design III. Green Energy

Dalian Company focuses on the comprehensive utilization of resources in the project planning and design. It rebuilds historical and cultural relics into geo-parks with scenic China Oceanwide attaches great importance to the use of clean energy to achieve energy conservation and paths for citizens’ sightseeing. Landscape lighting systems utilize the solar power to store emission reduction, adopts advanced environmental protection technology, takes low pollution and high efficiency energy in the daytime and light up during night. Besides, it considers using treated seawa- as the goal, and promotes the coordinated and sustainable development of economy and environment. ter for flushing to conserve fresh water resources. The Internet of Things technology is applied to optimize the operation and management of water, electricity, gas and other energy systems. Taking advantage of sea resources, it develops seabed pasture and seabed picking businesses. To sum up, it optimize and integrate resources through a Wuhan Center project uses new energy street lamps series of design to achieve effective energy conservation and emission reduction.

Wuhan Central Business District is equipped with a wind-solar hybrid street lamp system. Wind-solar hybrid street lamps use renewable solar and wind energy from nature, which neither consume any non-renewable energy nor emit polluting gases into the atmosphere, leading to zero pollution emission.

Oceanwide Horticulture strictly implements construction regulations to reduce construction pollution

Dalian Company attaches importance to the utilization of renewable energy

Oceanwide Horticulture Company adopts various measures to reduce construction pollution: covering bare soil in time, sprinkling water and cleaning dust to reduce dust Dalian Company pays attention to the utilization of renewable energy, adopts the pollution; requiring the manufacturer to process stone materials and other raw materials in eco-friendly sea water and sewage water driven heat pump technology for heating and strict accordance with required size to avoid on-site cutting, thus reducing dust pollution; cooling, combines solar energy, small and micro gas turbine distributed energy system for strictly testing children’s facilities, floor plastic pads and other materials to confirm that energy planning and management. In addition, solar domestic hot water system on the there is no formaldehyde pollution; and constructing ecological grass ditch and permeable roof, solar and wind sprinkler irrigation and lighting system are also considered in the pavement in strict accordance with design standards to ensure the safe and reliable design to reduce energy consumption. operation of rainwater recycling system.

Wuhan Company adopts new green technology for projects IV. Green Investment Wuhan Central Business District of Wuhan Company has realized various innovations in project design and implementation. In terms of energy saving technology, it adopts the water treatment technology to collect a large amount of reusable water discharged by high-area hotels and serviced apartments every day, and uses water recycling equipment China Oceanwide adheres to the concept of “green investment”. This concept aims to grow the economy, and for treatment. In terms of building technology, green buildings are adopted, such as promote social progress while obtaining investment returns. exterior wall hanging of granite stone, floor heating system, intelligent system and safety protection system, which are all green and eco-friendly. The investment management headquarters of China Oceanwide focuses on the new energy sector, invests in Nio, BAIC new energy vehicles and other projects, actively supports the development of the national new energy industry, contributes to the popularization of China’s clean energy vehicles, and promotes the development of new energy industry with green investment.

10 回馈社会促进和谐发展 Give Back to the Society to Promote Harmonious Development 中国泛海中国泛海企业社会责任报告企业社会责任报告

10 一、助力贫困学子求学路

回馈社会

促进和谐发展

CORPORATE SOCIAL CORPORATE SOCIAL RESPONSIBILITY RESPONSIBILITY REPORT REPORT 10 I. Help Poor Students with Access to Education Oceanwide attaches great importance to education, and continues to carry out student aid activities, so as to help Give Back to the Society to open up the development channel of poor students and block the intergenerational transmission of poverty.

Promote Harmonious Development (1) Expand the influence of “Oceanwide student aid action” by funding 460 thousand students In 2016, China Oceanwide launched the “Oceanwide Education Aid Project”. From 2016 to 2020, China Ocean- wide will donate 50 million yuan each year to 6 provinces: Guangxi, Chongqing, Hubei, Guizhou, Shandong and Shaanxi. The total donation amounts to 1.5 billion yuan for the 5 years. On July 18, 2017, the forum on promoting the “Oceanwide Education Aid Project” was held by the United Front Work Department of the Communist Party of China Central Committee. The United Front Work Department of the CPC Central Committee agreed with the China Oceanwide proposal that the funding scope of the “Oceanwide Education Aid Project” be expanded. From 2017 to Since its foundation in 1985, China Oceanwide always incorporates charity into the enterprise development, 2020, Hebei, Inner Mongolia, Heilongjiang and Hunan will be added to the original 6 provinces. The donation adhering to the enterprise values of “dedicating itself to the society for benefiting from the society” and the amount is increased from the original 1.5 billion yuan to 2.3 billion yuan, and the number of students receiving management idea of “three unified principles”, actively performs the corporate social responsibility by providing funding will be increased from 300,000 to 460,000. From September 5 to September 30, 2018, China Oceanwide help and care for poor families and students to make greater contribution to poverty alleviation and development has allocated 444,910,000 yuan of donations in 2018 to 10 places，and funded more than 90,000 students. as well as educational cause. The company has donated money to establish Oceanwide Foundation, China Arts Foundation, and Shandong Oceanwide Foundation, and built the above foundation into public welfare platforms for enterprises to give back to the society. Online platform of “Oceanwide Positive Energy”

In order to further the influence of “Oceanwide Student Aid Action”, China Oceanwide For over 30 years, China Oceanwide has cumulatively donated to the society more than 6.5 billion yuan, funded Group has created Oceanwide Positive Energy website and APP, aiming to record the more than 310 public welfare charity projects, covering millions of people from 22 provinces, and formed Ocean- course of student aid action and build a platform for outstanding college students to wide public welfare operation model of “public welfare organization planning, donation from caring enterprises, receive academic aid, achieve growth, entrepreneurship and innovation, internship and support from local government, and participation of benefited students” to create the Oceanwide public welfare employment, and help themselves while helping others. In 2018, Oceanwide Positive project brand characterized by “supporting and helping education, systematic public welfare, and targeted poverty Energy released and updated the qualification issuing progress and information in ten alleviation with present efforts for benefit in the future”. provinces in a timely manner, upgraded and optimized the column of “helping me -- progress of student aid”, and organized volunteers to timely answer relevant questions online raised by the aided students this year.

According to the industrial layout and advantages of the company, China Oceanwide actively responds to the Oceanwide Positive Energy has 73,553 registered users online, 28,339 users of WeChat national call and engages in the national poverty alleviation to help the country win the battle against poverty. On public account, about 46,000 APP downloads, 1,335 schools, 2,500 aided students who the one hand, based on its facts of industry layout and business situation, with supports of holding subsidiaries asked questions, more than 12,500 online answers to relevant questions, 257,793 such as Minsheng Securities, Minsheng Trust, Asia-Pacific P&C Insurance and other financial companies, the cumulative website visitors and 25,186,611 cumulative visits. company has continuously carried out a series of financial targeted poverty alleviation in Gansu, Anhui, Jiangxi, Hubei, Inner Mongolia and other places through “one county for one company” pairing support, caring subscription through “donation in the form of purchasing”, financial serving real economy and other measures; on the other hand, it actively combines “poverty alleviation” with “intellectual support”, focus on helping students with education, and formulate and implement a long-term plan of systematic assistance for students from poor families. (2) Donation to Guangxi “Oceanwide Harmony Class” offering free nutritive supper for students in impoverished area

In 2018, China Oceanwide implemented a total of 13 public welfare projects through Oceanwide Foundation, Oceanwide Foundation will donate 1.5 million yuan each year from 2016 to 2020 to “Oceanwide Harmony Class” including 10 continuing long-term projects, 3 new projects (2 long-term projects and 1 one-off project), and allocat- in Guangxi to provide nutritional dinners for students from impoverished areas. A total of 7.5 million yuan will be ed a total of 583.26365 million yuan for donations. donated over five years.

中国泛海中国泛海企业社会责任报告企业社会责任报告

二、鼓励大学生创业就业

三、持续助力脱贫攻坚

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(3) Assist Hebei Elite Humanity Primary School in helping orphan girls Yantai: 1st “Talents Gathering of Oceanwide Sailing College Student Start-Up Sponsoring Project”

In 2018, Oceanwide Foundation signed a donation agreement with Hebei Elite Humanity Primary School, a public school that helps orphan girls in Hebei Province and pays equal attention to raising and teaching, for a donation st of 1 million yuan every year from 2018 to 2020 totaling 3 million yuan for school education and construction expan- From May 23 to 24, 2018, the 1 “Talents Gathering of Oceanwide Sailing College Student sion of Hebei Elite Humanity Primary School. A donation of 1 million yuan for 2018 was allocated to Hebei Elite Start-Up Sponsoring Project” activity was held in Yantai, Shandong Province. A total of Humanity Primary School on June 7, 2018. 300 people attended the meeting, including start-up representatives of college students from five cities, representatives of organizers, leaders of the United Front Department of 17 cities in Shandong Province, and leaders of some universities. Through the start-up competition, start-up seminar, award ceremony and start-up achievement exhibition, the activity summarized and reviewed the start-up activities of college students in the Ocean- wide Sailing College Student Start-Up Sponsoring Project.

II. Encourage College Students’ Start-up and Employment

Shanghai: In-Depth Training of “Oceanwide Sailing Support Plan”

To support the university students’ employment, entrepreneurship and combating poverty, China Oceanwide and China Western Talent Development Foundation jointly planned and carried out “Oceanwide Sailing College Student Start-Up Sponsoring Project”: a total of 150 million yuan for three stages in 2010-2020 for supporting From July 10 to 17, 2018, In-Depth Training and Project Member Community Exchange “Oceanwide Sailing College Student Start-Up Sponsoring Project” in Chongqing, Kunming, Lanzhou, Shandong Fair of “Oceanwide Sailing Support Plan” was held in Shanghai, and nearly 90 outstanding and Hubei. start-up representatives of college students and start-up service personnel from Chongq- ing, Shandong, Hubei, Kunming and Lanzhou attended.

From 2010 to 2018, the “Oceanwide Sailing College Student Start-Up Sponsoring Project” funded 2,135 college student start-up projects, encouraging employment for nearly 30,000 college students.

In 2018, the eighth phase in Chongqing, the seventh phase in Kunming, the fifth phase in Lanzhou, the third phase in Shandong of the “Oceanwide Sailing Project” and the first to the third phases in Wuhan and the first Talents Gathering activity were carried out. III. Continuously Help People Combat Poverty

In response to national policies, China Oceanwide combines the advantages of its main business with the actual needs of the impoverished areas, and promotes the local social and economic development by helping the Kunming: Oceanwide Sailing College Student Start-Up Sponsoring Project industrial projects suitable for the impoverished areas, so as to foster the “self-sustaining” ability of the impoverished areas as a whole.

In July 2018, the launching ceremony of the seventh phase of Oceanwide Sailing Kunming (1) Help Xundian County of Yunnan Province out of poverty College Student Start-Up Sponsoring Project was held in Kunming. A total of 10 million yuan were invested into the seventh phase of the project, including 2 million yuan donated by the foundation and 8 million yuan supported by the municipal government, funding 200 On April 10, 2016, China Oceanwide and Xundian County government of Kunming City, Yunnan Province signed start-up projects, planning to fund 200 start-up projects, each with up to 50 thousand yuan a poverty alleviation donation agreement for a gratis donation of 93.18 million yuan for funding three poverty of gratis funding, start-up training and relevant policy support. alleviation projects: five-year education poverty alleviation project and Eyang agriculture photovoltaic poverty alleviation demonstration project and targeted poverty alleviation project. Take concrete actions to support poverty alleviation in Xundian County and help the poor out of poverty and become better off. After long-term support and efforts of all parties, Xundian County of Yunnan officially withdrew from the list of impoverished counties in 2018.

中国泛海中国泛海企业社会责任报告企业社会责任报告

四、支持高校学术研究和发展

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The five-year education poverty alleviation program has funded a total of 50 million college students from 10,000 Jiuzhou Yinghong helps farmers increase income through consumption poverty alleviation poor families in Xundian County since 2016. According to the agreement, 10 million yuan every year from 2016 to 2018 totaling 30 million yuan has been allocated to support 6,000 college students from poor families. China Oceanwide Jiuzhou Yinghong Company, together with Shaanxi Provincial Bureau of Cultural Heritage and First Emperor of Qin’s Mausoleum Museum carried out targeted On April 10, 2018, China Oceanwide donated 21 million yuan for the targeted poverty alleviation project, and poverty alleviation for Shangping Village, Liangling Town, Shanyang County, Shangluo adjusted 15 million yuan for the reconstruction and expansion project of the Xundian County Center for the Aged City, Shaanxi Province. They jointly launched the “charity counter of local specialties of (allocated according to the project progress, and the shortfall will be solved by the county government), and 6 Shanyang County for poverty alleviation” to help poor households increase income with million yuan for the targeted poverty alleviation project for employment by Oceanwide (2 million yuan every year poverty alleviation through consumption. Jiuzhou Yinghong Company has raised more from 2018 to 2020). than 100 thousand yuan for the poor.

(2) Companies of the group work together to help alleviate poverty

China Oceanwide and its affiliated companies actively respond to the national call for poverty alleviation, assume the social responsibility of enterprises, and help poor areas embark on the way of prosperity.

Minsheng Trust sets up a charitable trust to help poor counties in Gansu province

In 2018, Minsheng Trust carried out targeted poverty alleviation for Lintao County and Hezheng County of Gansu Province by setting up two charitable trusts, namely, “China Minsheng Trust Precise Poverty Alleviation for Lintao, Gansu” and “China Minsheng Trust Precise Poverty Alleviation for Hezheng, Gansu”. Starting from 2018, it will last for five years and donate 400,000 yuan to the two governments every year, a total of 2 million yuan. Based on the needs of poverty alleviation work in the two places, Minsheng trust IV. Support Academic Research and focuses on poverty alleviation and helps poor people combat poverty and the development of adolescent and children. Development in Universities and Colleges

In 2018, led by Chairman Lu Zhiqiang, China Oceanwide has extensively supported various educational and academic research projects.

Minsheng Securities teams up to help impoverished areas (1) Support Fudan University and promote the development of education cause

On December 21, 2015, China Oceanwide and Fudan University signed a donation agreement. According to the agreement, China Oceanwide promises to donate 650 million yuan to the Education Development Foundation of In 2018, Minsheng Securities signed poverty alleviation agreements with Nankang District Fudan University in Shanghai within five years. 500 million yuan of these funds are to be used to support the of Ganzhou, Jiangxi Province, Xichuan County of Henan, Jinzhai County of Anhui and construction of three buildings in the Fudan Oceanwide Center. 10 million yuan has been allocated as of March other places to carry out a series of industry, education, knowledge and public welfare 27, 2017. 150 million yuan was used to support three education development foundations: “Oceanwide Develop- poverty alleviation, to provide multi-channel, omni-directional and comprehensive financial ment Foundation of the School of Economics of Fudan University,” “Development Foundation of China Oceanwide services to practically help poverty alleviation work in the impoverished areas. The public at the International School of Finance of Fudan University”, and the “Fudan-Oceanwide Scholarship, Student welfare donations in 2018 totaled 777.3 thousand yuan. Overseas Exchange Scholarship.” On March 28, 2018, the “Development Fund of Fudan Oceanwide Institute International Finance” was incorporated into the implementation project of Fudan University Oceanwide Institute of International Finance. 85 million yuan has been allocated to the rest three funds by June 30, 2018 (including 15 million yuan on February 12, 2018).

中国泛海中国泛海企业社会责任报告企业社会责任报告

五、鼓励员工参与公益

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In June 2017, Fudan University joined China Oceanwide Holdings Group and Shanghai Huangpu District People’s On September 19, 2016, China Oceanwide Holdings Group and Beijing Insurance Research Charity Foundation Government to launch the Oceanwide School of International Finance of Fudan University, a business school signed a donation agreement to allocate an annual donation of 10 million yuan respectively on February 17, 2017, focusing on financial discipline research and education. China Oceanwide announced a donation of 350 million and on February 23, 2018 to support Beijing Insurance Research Charity Foundation for the research and yuan to Fudan University through Oceanwide Foundation, which is used to support the construction and develop- development, innovation, communication and promotion of public welfare service projects in the insurance ment of the financial discipline of Fudan University and promote the cultivation and gathering of first-class financial industry, to promote the healthy development of insurance business. talents with international vision and national mission of Fudan University. 96.8737 million yuan has been allocated in 2018. China Oceanwide Holdings Group donated 1 million yuan to support China Society for Promotion of the Guangcai Program, of which 1 million yuan has been allocated on January 26, 2018.

In 2017, Oceanwide Foundation signed an agreement with the Oceanwide Academy of Fudan University to continue to donate 1.8 million yuan from 2011 to 2016. Since 2017, it has annually donated 2 million yuan to support young teachers from the Oceanwide Academy of Fudan University to publish academic monographs in the “Oceanwide College Series”. V. Encourage Employees to Participate in Public Welfare

China Oceanwide encourages its subsidiaries to actively carry out public welfare activities in the community, (2) Support the educational cause of Tsinghua University explore various forms of enterprises’ participation in public welfare, practice public welfare charity, and jointly support the progress of public welfare undertakings.

In 2016, China Oceanwide donated 20 million with 4 million every year from 2016 to 2020 to support Global Merger & Acquisition Restructuring Research Center of the National Finance Research Institute of Tsinghua University and the establishment of “Oceanwide scholarship”, striving to make the research center an international first-class, Asian leading research institution on global merger & acquisition reconstruction. Minsheng Wealth: helps autistic children through charity auction

In 2018, China Oceanwide planned to donate an equivalent amount of RMB yuan worth of 15 million US dollars to In 2018, at the charity dinner of Minsheng Wealth annual conference, Minsheng Fortune Tsinghua University Education Foundation for three years to support the Schwarzman Scholars Program of donated 80 thousand yuan to support the China Charities Aid Foundation for Children, and Tsinghua University. On June 15, 2018, an equivalent amount RMB yuan (32.153 thousand) of 5 million US dollars established the Star and Rain Special Fund jointly with Beijing Stars and Rain Education Institute for Autism to help autistic children. Three artworks created by autistic children has been allocated. were auctioned in the auction, where 15,000 yuan was raised in total and 3,796 yuan raised by selling the derivatives.

(3) Support the development of Central South University’s education undertakings

In 2017, China Oceanwide donated 100 million yuan to the Education Foundation of Central South University to support the construction of the Xiangya Nursing School building (Oceanwide Building) and Xiangya Oceanwide Health Management Institute of Central South University. 40 million yuan of the fund was used for the development and construction of Xiangya Oceanwide Health Management Research Institute of Central South University and 60 million yuan for the construction of the Oceanwide Building of the teaching and research building of Xiang- ya College of Nursing, Central South University.

(4) Support academic research, and promote scientific research

Public welfare industry research leads the development direction of the industry and even the society. China Oceanwide promotes the development of industry research through funding the foundations.

中国泛海中国泛海企业社会责任报告企业社会责任报告

CORPORATE SOCIAL CORPORATE SOCIAL RESPONSIBILITY RESPONSIBILITY REPORT REPORT

Minsheng Holdings: donated 300 thousand yuan to build a primary school playground Asia-Pacific P&C Insurance: sent warmth to “Angel’s Home”

In April 2018, Minsheng Holdings Co., Ltd. donated 300 thousand yuan to Machang On November 23, 2018, the Beijing Branch of Asia-Pacific P&C Insurance organized Primary School in Machang Town, Puding County, Anshun City, Guizhou Province, for the employees to visit the “Angel’s Home” orphanage in Shunyi, Beijing, to deliver seasonal construction of the playground affiliated project of Machang Primary School. food and other materials that are urgently needed by the children. They not only brought materials and assistance to the children, but also brought spiritual support to warm their hearts.

Fanhai Sanjiang: ecological joy public welfare run

On December 31, 2018, Fanhai Sanjiang Electronics Co., Ltd. took part in the 2018 Chanwanqu -- Guimiaoqu ecological joy run public welfare activity organized by Nanshan Labor Union in Shenzhen.

中国泛海中国泛海企业社会责任报告企业社会责任报告

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List of Oceanwide Foundation’s Public Welfare Donations in 2018 Project Name and Introduction Donation and Appropriation

Project Name and Introduction Donation and Appropriation Fudan University Oceanwide Academy Project

It is used to support young teachers from the Long-term Continuing Projects (10) Oceanwide Academy at Fudan University to 2 million yuan has been donated per year since publish academic monographs in the “Oceanwide “Oceanwide Sailing-College Student Start-up Sponsoring” Project 2017 (in case of the termination or change of the College Series.” Since 2017, 2 million yuan has donation target, payment of donations will be From 2015 to 2019, China Oceanwide will donate been donated annually (the donation is allocated ceased). 10 million yuan each year, with a total donation twice each year; 1 million yuan is allocated before A total of 50 million yuan will be donated between of 50 million yuan (Phase 2). The “Oceanwide June 30 and December 31); a total of 1.8 million 3.8 million yuan was allocated in 2017. Sailing-College Student Start-up Sponsoring” 2015 and 2019, and another 50 million yuan will yuan was supplemented over six years from 2011 Project will be implemented in Chongqing, Kunming, be added during 2016 and 2020. to 2016. and Lanzhou, and expanded to Shandong. 10 million yuan was allocated in December 2015. “Oceanwide Education Aid Project” From 2016 to 2020, an additional donation of 10 20 million yuan was allocated in October 2016. A total of 20 million yuan was allocated in July and million yuan will be made each year, with total From 2016 to 2020, China Oceanwide will donate September 2017. additional donations of 50 million yuan (Phase 3). 50 million yuan each year to each of the six The project will be implemented in Shandong and provinces of Guangxi, Chongqing, Hubei, Guizhou, Chongqing and expanded to Hubei’s Wuhan. Shandong and Shaanxi over five years, totaling 1.5 billion yuan for the five years. From this donation, A total of 2.3 billion yuan was donated over five 10,000 poor university freshmen will receive years. 300 million yuan donation was allocated to “Supporting the Development of Educational Industry at Fudan University” Project support each year (5,000 yuan for each student); six places on August 25, 2016, and will support 300,000 students will obtain the donation over the 60,000 students; from August 15 to September China Oceanwide plans to donate 650 million five years. 14, 2017, the donation of 477.68 million yuan was

yuan to support the development of the educa- A total of 650 million yuan will be donated in five allocated to ten different places, and will support On July 18, 2017, the forum on promoting the tional industry at Fudan University within five years. 92,210 students; from September to October “Oceanwide Education Aid Project” was held by years of 2016. 2018, the donation of 444.91 million yuan was the United Front Work Department of CPC Central 10 million yuan was allocated for the construction allocated to ten different places, and will support Committee, which agreed that from 2017 to 2020, Among them, 500 million yuan will be used to of Fudan Oceanwide Center on March 27, 2017. 91,319 students. support the construction of three buildings as a Hebei Province, Inner Mongolia, Heilongjiang Province and Hunan Province are to be added to part of the “Fudan Oceanwide Center”, which will A total of 90 million yuan has been allocated to the the original 6 provinces; the donation will be be allocated depending on the project progress. three funds, including 15 million yuan to the three increased from 1.5 billion yuan to 2.3 billion yuan, 150 million will be used to support three founda- funds on February 12, 2018, and 5 million yuan to and the number of students obtaining the funds tions supporting education, which will be donated the Oceanwide grant on October 16, 2018. over 5 years. 10 million yuan will be donated to increased from 300,000 to 460,000. each foundation twice each year. Yunnan Xundian County Poverty Relief Project Fanhai International School of Finance at Fudan University Project 50 million yuan in funding will be given to impover- A new agreement was signed on March 28, 2018, ished college students in Yunnan’s Xundian County The donation amounts to a total of 93.18 million with a total donation of 350 million yuan. Relevant from 2016 to 2020 (10 million yuan per year). yuan. 30 million yuan for college students from donations of the original 3 agreements will no The donation amounts to a total of 350 million poor families, of which 10 million yuan was allocated longer be performed. yuan. 22.18 million yuan is appropriated for the photovoltaic demonstration project for poverty allevia- on September 21, 2018. By March 31 and June 30 of 2018 to 2022, the 96.8737 yuan has been allocated, including tion (payments will be made in three phases The donation of 22.18 million yuan for the photo- annual average payment for the year shall be paid 4,22435 yuan on January 12, 2018, 5 million yuan according to project progress). voltaic poverty alleviation demonstration project equally in two phases (109.9526 million yuan in on February 12, and 5.4973 million yuan on 21 million yuan for the targeted poverty alleviation has been allocated in three phases in 2016. 2018, 71.73 million yuan in 2019, 58.83 million March 30. project (to be paid based on the leader’s instruc- yuan in 2020, 53.35 million yuan in 2021 and tions and the construction progress). 14.24 million yuan in 2022).

中国泛海中国泛海企业社会责任报告企业社会责任报告

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Project Name and Introduction Donation and Appropriation Project Name and Introduction Donation and Appropriation

Guangxi “Oceanwide Harmony Class” nutritive supper for students in impoverished area project Newly Implemented Long-Term Projects (2)

Funded the Guangxi “Oceanwide Harmony Class” It is planned to donate 7.5 million yuan in five Elite Humanity Primary School Project project providing nutritive supper for students in years. impoverished area with 7.5 million yuan (divided into 5 phases from 2016 to 2020 with 1.5 million 3 million yuan has been allocated in 2016 and 1 million yuan will be donated every year from A total of 3 million yuan for three years. yuan for each phase). 2017. 2018 to 2020, and 3 million yuan in total will be donated in three years for the education and On June 7, 2018, 1 million yuan was appropriated. construction expansion of Elite Humanity Primary “Tsinghua PBC Oceanwide Foundation” Project School.

20 million yuan has been given to support the Tsinghua University Schwarzman Scholars Program Global Merger & Acquisition Restructuring It is planned to donate 20 million yuan in five Research Center of the National Finance Research years. Institute of Tsinghua University and set up the A total of 15 million US dollars worth of equivalent “Oceanwide Scholarship Fund” (the donation is to 8 million yuan has been allocated in 2016 and A total of 15 million US dollars worth of RMB will RMB will be donated in three years. be distributed in five phases from 2016 to 2020, 2017. be donated in three years to support the Schwarzman with 4 million yuan planned for each phase). Scholars Program of Tsinghua University. Payments On June 15, 2018, 32.153 million RMB yuan, the are to be completed before June 15, 2018, and May equivalent amount of 5 million US dollars, has 31, 2019 and 2020, respectively. been allocated. Beijing Insurance Research Public Welfare Foundation Project

30 million yuan has been given to the Beijing A total of 30 million yuan was donated in three One-off Donation Projects (1) Insurance Research Charity Foundation to support years. research, development and marketing in related Fujian Longyan Public Welfare Project of China Society for Promotion of the Guangcai Program to poverty alleviation and public welfare service By the end of 2018, 20 million yuan has been projects in the insurance industry (the donation is allocated, including 10 million yuan allocated on to be distributed over three phases from February 23, 2018. Donated 1 million yuan to support Fujian Longyan On January 26, 2018, 1 million yuan was appro- 2016-2018, with 10 million per phase). Public Welfare Project. priated.

Central South University Project

A total of 100 million yuan was donated. 40 million yuan was used for the development and construction of the Xiangya Oceanwide Health Manage- A total of 100 million yuan was donated. ment Institute of Central South University. After the agreement was signed, the donation was 15 million yuan has been allocated to Xiangya distributed over three phases; 60 million yuan was Oceanwide Health Management Research used for construction of Oceanwide Building of Institute Project in 2017 and 5 million to Xiangya Xiangya Nursing School of Central South Univer- Nursing College Oceanwide Building Construc- sity. After the signing of the agreement, the tion Project in 2017. donation will be distributed in four phases according to the progress of the project.

中国泛海 CORPORATE SOCIAL 企业社会责任报告 RESPONSIBILITY REPORT

No. Item Page Status No. Item Page Status

G4-1 Provide a statement from the most senior decision-maker of the 03-06 organization a. List all entities included in the organization’s consolidated G4-17 07-10 G4-2 03-04,19-22 - Provide a description of key impacts, risks, and opportunities - cial statements or equivalent documents is not covered by the G4-3 01, 07, 09 report Report the name of the organization

G4-4 07-10 G4-18 19, 21 Report the primary brands, products, and services Aspect Boundaries

G4-5 01-02 Report the location of the organization’s headquarters G4-19 19, 21 report content Report the number of countries where the organization oper- G4-6 29-36 G4-20 For each material Aspect, report the Aspect Boundary within the ates, and names of countries where either the organization organization sustainability topics covered in the report G4-21 For each material Aspect, report the Aspect Boundary outside G4-7 07, 09 the organization Report the nature of ownership and legal form

G4-8 07-10 G4-22 Report the effect of any restatements of information provided in N/A Report the markets served previous reports, and the reasons for such restatements

G4-9 07-10, 29, 31 Report the scale of the organization G4-23 N/A the Scope and Aspect Boundaries G4-10 51-54 Report the total number of employees and the proportion G4-24 Provide a list of stakeholder groups engaged by the organiza- 19, 21 G4-11 Report the percentage of total employees covered by collective N/A tion bargaining agreements G4-25 19, 21 G4-12 69-72 Describe the organization’s supply chain with whom to engage

G4-26 19, 21 Report the organization’s approach to stakeholder engagement G4-13 24, 26, 29-36 regarding the organization’s size, structure, ownership, or its supply chain G4-27 Report key topics and concerns that have been raised through 19, 21 G4-14 Report whether and how the precautionary approach or princi- 24-28 stakeholder engagement, and how the organization has re- ple is addressed by the organization sponded to those key topics and concerns

G4-28 - 01 G4-15 List externally developed economic, environmental and social N/A tion provided charters, principles, or other initiatives to which the organization subscribes or which it endorses G4-29 Date of most recent previous report 01

G4-16 List memberships of associations (such as industry associa- N/A G4-30 01 tions) and national or international advocacy organizations Reporting cycle

中国泛海 CORPORATE SOCIAL 企业社会责任报告 RESPONSIBILITY REPORT

No. Item Page Status No. Item Page Status

G4-31 Provide the contact point for questions regarding the report or 01 its contents G4-43 Report the measures taken to develop and enhance the highest 26 governance body’s collective knowledge of economic, environmental and social topics Report the ‘in accordance’ option the organization has chosen; G4-32 109 report the GRI Content Index for the chosen option; Report the reference to the External Assurance Report, if the report has Report the processes for evaluation of the highest governance G4-44 been externally assured body’s performance with respect to governance of economic, environmental and social topics; report actions taken in response to evaluation G4-33 Report the organization’s policy and current practice with regard N/A to seeking external assurance for the report - G4-34 24, 26 G4-45 Report the governance structure of the organization tion and management of economic, environmental and social impacts, risks, and opportunities, and whether stakeholder consultation is used G4-35 Report the process for delegating authority for economic, environmental and social topics from the highest governance body to senior executives and other employees G4-46 Report the highest governance body’s role in reviewing the effectiveness of the organization’s risk management processes for economic, environmental and social topics Report whether the organization has appointed an execu- G4-36 tive-level position or positions with responsibility for economic, environmental and social topics Report the frequency of the highest governance body’s review G4-47 of economic, environmental and social impacts, risks, and opportunities Report processes for consultation between stakeholders and G4-37 19, 21 the highest governance body on economic, environmental and social topics G4-48 Report the highest committee or position that formally reviews 01-02 and approves the organization’s sustainability report and en- G4-38 Report the composition of the highest governance body and its 24, 26 sures that all material Aspects are covered committees G4-49 Report the process for communicating critical concerns to the 19, 21 highest governance body G4-39 Report whether the Chair of the highest governance body is 24, 26

G4-50 Report the nature and total number of critical concerns that G4-40 Report the nomination and selection processes for the highest were communicated to the highest governance body and the governance body and its committees mechanism(s) used to address and resolve them

G4-51 Report the remuneration policies for the highest governance G4-41 Report processes for the highest governance body to ensure body and senior executives

Report the process for determining remuneration; report wheth- G4-52 er remuneration consultants are involved in determining remu- 24, 26-28 neration and whether they are independent of management. Report any other relationships which the remuneration consul- Report the highest governance body’s and senior executives’ 24, 26 G4-42 tants have with the organization roles in the development, approval, and updating of the organization’s purpose, value or mission statements, strategies, policies, and goals related to economic, environmental and social G4-53 Report how stakeholders’ views are sought and taken into ac- impacts count regarding remuneration

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No. Item Page Status No. Item Page Status

G4-EC7 30, 32-33, 35 Report the ratio of the annual total compensation for the orga- investments and services supported G4-54 operations to the median annual total compensation for all employees (excluding the highest-paid individual) in the same G4-EC8 - 29, 31 country tive indirect economic impacts the organization has

Report the percentage of the procurement budget used for G4-EC9 Report the ratio of percentage increase in annual total com- G4-55 pensation for the organization’s highest-paid individual in each operation - crease in annual total compensation for all employees (excluding G4-EN1 Report the total weight or volume of materials the highest-paid individual) in the same country

G4-EN2 78, 80 Report the percentage of recycled input materials Describe the organization’s values, principles, standards and G4-56 15-18 norms of behavior such as codes of conduct and codes of eth- G4-EN3 74, 76 ics Report the energy consumption within the organization

G4-EN4 Report the energy consumption outside the organization G4-57 Report the internal and external mechanisms for seeking advice 24, 26-28 on ethical and lawful behavior, and matters related to organiza- G4-EN5 74, 76-80 Energy intensity tional integrity

G4-EN6 74, 76-80 Reduction of energy consumption G4-58 Report the internal and external mechanisms for reporting con- 24, 26-28 G4-EN7 74, 76-80 cerns about unethical or unlawful behavior, and matters related Reduction of energy requirements of production and services to organizational integrity G4-EN8 Total water withdrawal by source G4-EC1 11, 13 Report the direct economic value generated and distributed G4-EN9 N/A by withdrawal Report risks and opportunities posed by climate change that G4-EC2 have the potential to generate substantive changes in opera- G4-EN10 73-76 tions, revenue or expenditure Report the total volume of water recycled and reused

G4-EC3 Where the plan’s liabilities are met by the organization’s general 52, 54, 55, 57 resources, report the estimated value of those liabilities G4-EN11 Operational sites owned, leased, managed in or adjacent to, N/A protected areas and areas of high biodiversity value outside protected areas G4-EC4 by the organization from governments during the reporting period G4-EN12 N/A services on biodiversity G4-EN13 N/A Habitats protected or restored G4-EC5 based on wages subject to minimum wage rules, report the operation to the minimum wage G4-EN14 N/A Total numbers of IUCN red list species and national conservation list species with habitats in areas affected by operations G4-EC6 locations of operation that are hired from the local community G4-EN15 Direct greenhouse gas(GHG) emissions (scope 1)

中国泛海 CORPORATE SOCIAL 企业社会责任报告 RESPONSIBILITY REPORT

No. Item Page Status No. Item Page Status

G4-EN16 Energy indirect greenhouse gas (GHG) emissions (scope 2) G4-EN32 Percentage of new suppliers that were screened using environ- 68, 70 mental criteria G4-EN17 Other indirect greenhouse gas (GHG) emissions (scope 3) G4-EN33 68, 70 G4-EN18 in the supply chain and actions taken Greenhouse gas(GHG) emissions intensity

G4-EN34 - G4-EN19 Reduction of greenhouse gas (GHG) emissions dressed, and resolved through formal grievance mechanisms

G4-EN20 N/A Emissions of ozone-depleting substances (ODS) G4-LA1 51-54 Total number and rates of new employee hires and employee G4-EN21 turnover by age group, gender and region NOX, SOX

G4-EN22 Total water discharge by quality and destination G4-LA2 52, 54-55, 57 G4-EN23 Total weight of waste by type and disposal method operation

G4-EN24 N/A G4-LA3 Return to work and retention rates after parental leave, by gender Weight of transported, imported, exported, or treated waste G4-EN25 N/A G4-LA4 deemed hazardous under the terms of the basel convention2 Minimum notice periods regarding operational changes, includ- annex i, ii, iii, and viii, and percentage of transported waste shipped internationally G4-LA5 Percentage of total workforce represented in formal joint G4-EN26 Identity, size, protected status, and biodiversity value of water N/A management–worker health and safety committees that help - monitor and advise on occupational health and safety programs zation’s discharges of water and runoff G4-EN27 Extent of impact mitigation of environmental impacts of products 73-80 G4-LA6 Type of injury and rates of injury, occupational diseases, lost and services days, and absenteeism, and total number of work-related fatali- ties, by region and by gender G4-EN28 Percentage of products sold and their packaging materials that are reclaimed by category G4-LA7 Workers with high incidence or high risk of diseases related to their occupation G4-EN29 N/A G4-LA8 Health and safety topics covered in formal agreements with non-monetary sanctions for non-compliance with environmental trade unions laws and regulations

G4-LA9 Average hours of training per year per employee by gender, and 55, 57 by employee category G4-EN30 other goods and materials for the organization’s operations, and transporting members of the workforce G4-LA10 Programs for skills management and lifelong learning that sup- 55-58 G4-EN31 Total environmental protection expenditures and investments by port the continued employability of employees and assist them type in managing career endings

中国泛海 CORPORATE SOCIAL 企业社会责任报告 RESPONSIBILITY REPORT

No. Item Page Status No. Item Page Status

G4-LA11 Percentage of employees receiving regular performance and 55-58 G4-HR6 N/A career development reviews, by gender and by employee cate- for incidents of forced or compulsory labor, and measures to gory contribute to the elimination of all forms of forced or compulsory labor G4-LA12 Composition of governance bodies and breakdown of employ- 51-52, 53-54 Percentage of security personnel trained in the organization’s G4-HR7 N/A ees per employee category according to gender, age group, human rights policies or procedures that are relevant to opera- minority group membership, and other indicators of diversity tions

G4-LA13 Ratio of basic salary and remuneration of women to men by G4-HR8 Total number of incidents of violations involving rights of indige- N/A nous peoples and actions taken

G4-LA14 Percentage of new suppliers that were screened using labor 71-72 G4-HR9 Total number and percentage of operations that have been N/A practices criteria subject to human rights reviews or impact assessments

G4-LA15 - 71-72 G4-HR10 Percentage of new suppliers that were screened using human N/A tices in the supply chain and actions taken rights criteria

G4-LA16 G4-HR11 N/A and resolved through formal grievance mechanisms in the supply chain and actions taken

G4-HR12 - N/A dressed, and resolved through formal grievance mechanisms G4-HR1 - N/A ments and contracts that include human rights clauses or that underwent human rights screening G4-SO1 Percentage of operations with implemented local community engagement, impact assessments, and development programs Total hours of employee training on human rights policies G4-SO2 - N/A G4-HR2 N/A or procedures concerning aspects of human rights that are pacts on local communities relevant to operations, including the percentage of employees trained G4-SO3 N/A Total number and percentage of operations assessed for risks G4-HR3 Total number of incidents of discrimination and corrective ac- N/A tions taken G4-SO4 Communication and training on anti-corruption policies and 24, 26-28 procedures se G4-HR4 N/A freedom of association and collective bargaining may be violat- G4-SO5 N/A

rights G4-SO6 Total value of political contributions by country and recipient/ N/A

G4-HR5 N/A G4-SO7 incidents of child labor, and measures taken to contribute to the Total number of legal actions for anti-competitive behavior, effective abolition of child labor anti-trust, and monopoly practices and their outcomes

中国泛海 CORPORATE SOCIAL 企业社会责任报告 RESPONSIBILITY REPORT

No. Item Page Status

G4-SO8 N/A non-monetary sanctions for non-compliance with laws and regulations

G4-SO9 Percentage of new suppliers that were screened using criteria for impacts on society

G4-SO10 68, 70 the supply chain and actions taken

G4-SO11 - dressed, and resolved through formal grievance mechanisms

G4-PR1 which health and safety impacts are assessed for improvement

Total number of incidents of non-compliance with regulations G4-PR2 N/A and voluntary codes concerning the health and safety impacts of products and services during their life cycle, by type of outcomes

Type of product and service information required by the orga- G4-PR3 N/A nization’s procedures for product and service information and - gories subject to such information requirements

G4-PR4 Total number of incidents of non-compliance with regulations N/A and voluntary codes concerning product and service information and labeling, by type of outcomes

G4-PR5 Results of surveys measuring customer satisfaction

G4-PR6 N/A Sale of banned or disputed products

Total number of incidents of non-compliance with regulations G4-PR7 N/A and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship, by type of outcomes

G4-PR8 Total number of substantiated complaints regarding breaches of N/A 5.What do you think of the level of this report’s design and content？ customer privacy and losses of customer data

G4-PR9 N/A and regulations concerning the provision and use of products and services

China Oceanwide Corporate Social Responsibility Report ���� �������� China Oceanwide Corporate Social Responsibility Report

China Oceanwide Corporate Social Responsibility Report �� China Oceanwide Corporate Social Responsibility Report