Printed with recycled paper China Everbright Group

中国光大 2018 Corporate Social Responsibility Report

China Everbright Group

Address: China Everbright Center, No.25 Taipingqiao Street, Xicheng District, Beijing Postal Code: 100033 Tel: +86-10-63638925 Fax: +86-10-63639941 Website: www.ebchina.com Everbright Future About the Report Contents

Dear readers, the China Everbright Group’s Corporate Social Responsibility Report of 2018 is officially released. It is a 02 Sincere Greetings systematical disclosure of the Group's ideas, actions, typical practices and performance in fulfilling its social responsibilities in economy, society and environment in 2018. The released report is based on the principles of objectivity, normativity, 04 About Everbright transparency and comprehensiveness. The report is available in both Chinese and English versions. In case of any 14 Focusing on Responsibility discrepancy, the Chinese version shall prevail.

Reporting Period

The current reporting period is from January 1, 2018 to December 31, 2018. To guarantee the consistency and comparability, some contents of the report may trace back to previous years. 22 Showing Aspiration with 30 Establishing Public Reputation Great Ambition and Building Brand Image Release Cycle 24 Leadership of Party Building 32 Financial Sector The report is an annual report and is generally released in the second quarter of the following year. 26 Mission Undertaken 34 Industrial Sector 29 Open Development 36 Serving Brand Organizational Scope

This report covers the headquarters and subsidiaries of China Everbright Group. For the convenience of presentation and reading, in the report, “China Everbright Group” is also referred to as “Everbright Group”, “Everbright”, “The Group” 38 Focusing on Innovation and 46 Guarding the Bottom Line or “We”. Promoting Transformation and Risks Preventing

40 Technology and Innovation 48 Strict Governance over the Party Compilation Basis Management 49 Compliance with Laws and ·The 2030 Agenda for Sustainable Development by the United Nations 41 Innovation Practice Regulations 43 Efficient Collaboration 50 Prudent Operation · GRI Sustainability Reporting Standards (GRI Standards) issued by the Global Sustainability Standard Board (GRI)

·Guidance on Social Responsibility Reporting (GB/T 36001-2015) 52 Protecting Ecology and 60 Increasing Vitality and ·Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises (CASS-CSR4.0) issued by the Beautifying Homeland Gathering Energy Research Center for Corporate Social Responsibility, Economics Division, Chinese Academy of Social Sciences 54 Green Industry 62 Rights Protection Data Source 57 Green Finance 63 Vitality Motivation 58 Green Operation 64 Culture Promotion The financial data cited in the report are from Everbright Group’s Annual Report of 2018. Other data are acquired from internal or external official documents of Everbright Group.

The unit of account here in is RMB unless otherwise stated. 68 Uniting in a Concerted Effort and Pursuing for a Joint Development Access to the Report 70 Win-win Cooperation The report is available in both printed version and electronic version. You may download the electronic version of this 73 Overseas Joint Construction report from Everbright Group’s website at http://www.ebchina.com. 74 Peaceful Co-existence

For any questions regarding the report, please send an email to [email protected] or call us at +86-10-63638925.

76 Responsibility, A More Beautiful Future 78 Expert Opinions 79 Report Index 80 Feedback Form China Everbright Group | Everbright, forever Corporate Social Responsibility Report 2018

Uniting the sense of responsibility and upgrading responsibility Increasingly promoting innovation-driven development and Deepening Everbright culture and caring for employees' Sincere Greetings management. We always pursue the unification of the promoting transformation and upgrading. We strengthen development. We intensify talent selection and recruitment value of commerce, the value of the times and the value of the support of innovation strategy and keep doing our with market-oriented principles, focusing on the “Five individual. Under the guidance of the company’s corporate best to build an innovative enterprise. We enhance the Castings” and highlighting “Six Capabilities”. We launch the vision of “Everbright, forever”, we creatively come up with management of sci-tech innovation by implementing “Everbright Talent Pavilion” plan and carry out dual selection the proposal of the “Sunshine” Responsibility Model. The the strategy of technological innovation, promoting the for young employees. We formulate the “27 Everbright “Sunshine” Responsibility Model explains our CSR philosophy construction of sci-tech management mechanism and Rules” to encourage cadres to take their responsibilities, and clarifies our action path of fully and comprehensively strengthening information-based management. We carry so as to ensure the personnel growth with a flexible talent integrating social responsibility into our development strategy, out innovation practices, create an innovation atmosphere mechanism. We cultivate Everbright new culture, carrying daily management and daily business operation. It will internally within the company, strengthen exchanges and out employee services and cultural activities, so that bring endless impetus and energy to help us achieve our cooperation externally with other parties, and improve our Everbright Group will become the cradle for every employee organizational strategic ambition of building a world-class products and services through innovation. With E-SBU to grow up, a fulcrum for them to pursue dreams, and a financial holdings group with global competitiveness. strategy as one of our key points of our mid- and long term harbor for them to rest. development strategy, we have built a coordinated and open Following the guidance and leadership of Party Building E-SBU development model centering on the six E-SBUs, Cherishing cooperation with partners and adapting into and implementing the national strategy. We innovate the namely wealth, investment, investment bank, environmental community construction. We adhere to the principle of work concepts of Party Building and propose the overall protection, tourism and health, and the coordinated openness and sharing; carry out diversified cooperation with requirements for “Three-Three-Five” Party Building work development effect has gradually emerged. stakeholders such as local governments, various enterprises, overall requirement. We implement the performance cultural and educational institutions and trade organizations appraisal system for Party Building, work ceaselessly to Casting a gate to ensure safety and holding the bottom line in expansion and depth. In 2018, Everbright Group held talks improve Party conduct and strictly enforce Party disciplines. of risk. We perfect the responsibility-based mechanism, and signed contracts with 77 strategic customers, covering We make full use of our advantages in integrating both strengthen Party disciplines, and implement the spirit of the more than 10 provinces and cities in China as well as Egypt, of industry and finance with the purpose to facilitate the Central Committee's Eight-point decision on strengthening the United Arab Emirates and other countries. We have implementation of national strategies. Such national political inspection, enhancing execution capability. We complemented each other with our respective strengths and strategies include the coordinated development of Beijing- manage the enterprise strictly according to law to prevent achieved win-win cooperation. In our overseas operations, Tianjin-Hebei Regions, the construction of Guangdong-Hong any legal risks, so as to ensure compliance with laws and we support local economic and social development Kong-Macao Greater Bay Area, and the development of the regulations in all lines of business. We steadily promote the and assume our responsibilities as a global citizenship Yangtze River Economic Belt. We will actively support the construction of a comprehensive risk management system responsibility. We devote ourselves and engaged to social Real Economy, open up funds to reach the “Last Mile” of with the “Three Lines of Defense” and “Four Firewalls” as public welfare undertakings, and participate in charity The year 2018 marks the 35th anniversary of Everbright the Real Economy. We insist on utilizing our full advantages the main concept and adopt the proper business department donations, community assistance and other activities to build Group. Over the past 35 years, we have always adhered in our financial sector and industrial sector to boost rural divisional model in the system, as well as exploring the a harmonious and beautiful society. to the justice and shared interests. We pay close attention revitalization. We will adhere to the opening up policy and appropriate measures to properly insulate industrial and to the coordinated development between the enterprise support the Belt and Road Initiatives. financial enterprises from risks. The general trend is approaching, and the future has come. as well as with the overall economy, society, culture and The year of 2019 marks the 70th anniversary of the founding environment. At the same time, we are always accountable Optimizing products services and building the Everbright Taking root in green business and carrying out green of the People’s Republic of China, and it is also a crucial to our shareholders, to the customers, to the employees, brand. Being customer-oriented, we shape and cultivate operation. We implement the strategy of “Integrated year to secure a decisive victory in building a moderately to the environment and to the society. In the global market “Everbright brand” with global influence. We actively Environmental Protection”, cultivate the world-leading eco- prosperous society in all respects. We will further enhance and world stage, we uphold the business philosophy of implement the “Three Reputations and Four Delicacies” environmental enterprise and create distinctive environmental our sense of responsibility and sense of urgency, create “win-win cooperation” to build a responsible and reliable to build the core competitiveness of financial service. protection projects in six fields including environment- another “Year of Value Creation”, and constantly push image of Chinese enterprises. The year of 2018 is also a At the same time, we continue optimizing “Three friendly energy, environment-friendly water services, green forward the development higher, deeper and stronger. We year of harvest for Everbright Group. In 2018, guided by Comprehensivenesses and One Innovation” industrial environmental protection, environmental technology, will work hand in hand with other stakeholders to make new General Secretary Xi Jinping Thought on Socialism with layout. We create and explore inclusive health care, equipment manufacturing and international business. We greater contributions in order to secure a decisive victory in Chinese Characteristics for a New Era, we earnestly and integrate and develop comprehensive tourism, enhance proactively give full play to the role of the financial resource building a moderately prosperous society in all respects and conscientiously implemented the guiding principles and the and expand integrated environmental protection and allocation, and direct flow of financial resources to green and achieving the “Two Centenary” goals! spirit of the 19th CPC National Congress. In accordance explore tech-innovation. We actively listen to the needs of sustainable development projects with innovation of green with the company’s strategic ambition of building a world- our customers to enhance customer sense of happiness, financial products and service. At the same time, we support class financial holdings group at the beginning of the year, ownership and security. We optimize our service processes the development of energy conservation and environmental we made tremendous progress while maintaining stability, and patterns to effectively improve customer experience. protection industries. We carry out operation integrated combining quality and efficiency, striving for success Also, we guarantee the rights and interests of customers with the concept of green environmental protection. While unceasingly and working hard, thus, successfully achieved a and create value for them with intelligent, standardized and continuing to promote low-carbon development, we cultivate Party Secretary and Chairman of noticeable good start. normalized services. the green and low-carbon work and lifestyle of our employees. China Everbright Group

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About Everbright China Everbright Group

In May 1983, Everbright Group was established in Hong Kong and officially started operation on August 18, 1983. In the early stage, we were mainly engaged in foreign trade and industrial investment, and actively practiced the ice-breaking journey of reform and opening-up. In December 2014, the Group was transformed from a solely state-owned enterprise into a joint-stock company, and officially changed its name to “China Everbright Group”.

With the development in the past 35 years, Everbright Group has become a large state-owned comprehensive financial holdings group, covering finance sector and manufacture production sector in Hong Kong and mainland China with numerous institutions and lines of business at home and abroad. The Group offers financial services such as banking, securities, insurance, asset management, trusts and funds, and it also engaged in distinctive industries such as China Everbright Bank Company Limited Everbright Securities Company Limited Sun Life Everbright Insurance Co., Ltd. Everbright Financial Holding Asset Management Co., Ltd. Everbright Xinglong Trust Co., Ltd. China Everbright Holdings Company Limited China Everbright Industrial (Group) Company Limited YouthChina TravelGroup China Youth Industrial Development Corporation China Everbright Technology Limited Everbright Jin’ou environmental protection, tourism, health and high-tech. The Group is featured as a large state-owned comprehensive financial holdings group with comprehensive finance, industry-finance cooperation, and land-port linkage. In 2018, Everbright Group ranked the 322nd in the Fortune Global 500 list. Asset Management Limited

China Everbright Limited China Everbright International Limited

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Economic Performance Social Performance

47,851.86 44,683.44 43,622.11 Gender ratio structure of 1,615.90 employees 1,360.33 1,313.35 418.96 421.00 410.94

2016 2017 2018 2016 2017 2018 2016 2017 2018 50.78% 49.22% Total assets Operation revenue Net profit (RMB 100 mn) (RMB 100 mn) (RMB 100 mn) Total employment amounted to

Male Female 166 Amount of headquarters 643 90,880 contracts reached about headquarters subordinate enterprises’ trademarks contracts were and trade name license applications Social insurance RMB 60.3 bn reviewed were re-examined and authorized coverage for employees reached 5,216 Physical

100 % examination 3,313 coverage for employees was Environmental Performance 1,425

100 % Held talks or signed 944.89 contracts with 2016 2017 2018 730.62

532.60 77 Funding for poverty alleviation 160 strategic customers 131 (RMB 10,000) 113 69 89 84

2016 2017 2018 2016 2017 2018 2016 2017 2018

Environmental investment Number of waste-to- Number of cities with amount (RMB 100 mn) energy (WTE) projects environmental protection projects

environmental protection projects are 259 under construction or put into operation

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Corporate Strategy Corporate Governance

We always keep our pace with the great era and thrive in the era. We worked harder and harder, and came along the way We constantly improve the level of corporate governance in strict accordance with the Articles of Association and various from being starter to bigger, and then to the new phase of becoming stronger. At the new historical point of China entering a corporate governance systems. We safeguard shareholders’ rights and interests, create value for shareholders, comply new era, in the complicated and changeable macro-economic situation, we will strive for stability, make steady improvement, with relevant regulations and requirements and promptly pass dividends to shareholders. We promote the modernization constantly seek and seize opportunities in change and meet new challenges. of corporate governance system and governance capacity, continuously improve the information disclosure system, and proactively accept public supervision. We continued making performance evaluation with our peers and competitors, identify market opportunities, determine development orientation, and put forward the strategic ambition of building Everbright Group into a world-class financial Governance Framework holdings group with global competitiveness. We implement the three strategic transformations of “Agility, Technology, We have built a corporate governance framework in which the Shareholders exercise power according to law, the and Ecology”, and promote the implementation of “Eight Strategic” initiatives. We strive to cultivate “four world-leading Board of Directors makes scientific decisions, as well as the Board of Supervisors exercise effective supervision and companies”, “three first-class companies in China”, and “three distinctive companies in China” to realize the goal of refining the Senior Management implements decisions efficiently. We have formed a scientific labor division and a balance finance, optimizing real industry, and strengthening the Group. mechanism to promote the sustainable development of Everbright Group with a professional and standardized In 2018, Everbright Group achieved strategic optimization. We embarked on a new journey to show new achievements and governance mechanism. create new atmosphere. We have been making good achievements and outstanding performance in the new era.

Shareholders’ Meeting

Strategy and Investment Committee Our Vision: Everbright, forever

Our Value: aspiration, quality, unique characteristics, innovation, dedication to Nomination and Performance Supervision the bottom line, reputation, vigor, and sense of responsibility Audit and Risk Committee Management Committee Build a world-class financial holdings group with global competitiveness Board of Board of Directors Supervisors Agility Technology Ecology

Nomination Committee Finance and Internal Control Comprehensively Technological E-SBU coordination Supervision Committee 1 deepening reform 2 innovation 3

Senior Management/ Investment, Internationalization Financial Human capital Corporate culture financing and and Mainland-HK holding risk management and brand Compensation Committee Executive Committee 4 M&A 5 integration 6 management 7 8 management

Refining Finance Optimizing Real Industry Investor Relationship Management Integrated Asset Inclusive Comprehensive Banking Security Insurance Trust environmental We submit to the Shareholders’ Meeting to review major issues related to Everbright Group in accordance with the management health care tourism protection provisions of the corporate governance system. We have set up a communication platform, proactively communicated with and reported to shareholders, and quickly responded to various requests of business inquiries and material submission from shareholders. In 2018, Everbright Group held 6 shareholders’ meetings, deliberated and passed 26 bills, and listened to 4 reports. Implementation route: We will implement our strategic Step 2 targets by two steps over 10 years Information Disclosure 2022-2027 We committed to continue improving the information disclosure system, strictly manage information disclosure, Step 1 A world-class financial holdings group with global competitiveness regularly release financial reports, and timely disclose relevant information such as major business decisions, economic 2018-2022 performance and social on-field activities of Everbright Group through its official website, WeChat official account and other public channels. The first-class financial holdings group in China

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The “Sunshine” Responsibility Model systematically clarifies and presents the ways of Responsibility comprehensively integrating social responsibility into development strategy, daily management Management and business operation: We take the corporate vision of “Everbright, forever” as the starting and ending point of all Agility We actively make progress of the era and Original our work. We continue making our industrial and financial services to enhance the sense of improve people's livelihood in business CSR ownership, happiness and security of our stakeholders. operations in accordance with the objective intention laws of enterprise’s development. Guided The strategic transformation of “Agility, Technology and Ecology” is the driving force for us to fulfill by the corporate vision of “Everbright, our social responsibilities. Agile transformation, with the connotation of “performance culture, flat forever”, we explore ways to fulfill social framework, rapid decision-making and flexible team”, is the driving force of the system and institutional responsibilities in line with the spirit of the mechanism. Technological transformation, with the connotation of “promoting connection, enabling Driving era the attributes of the financial holdings energy, innovation, and building a digital technology to support and drive the system”, is the driving Everbright, forever force group and Everbright's characteristics. force of technological innovation. Ecological transformation, with the connotation of “adhering to

Ecology openness, sharing and connectivity, and building a characteristic business model based on ecology and platform”, is the driving force of the company’s business model. “Sunshine” In combination with our “Eight Values”, we have identified seven CSR themes with Everbright Responsibility Model Technology characteristics, namely, “Showing aspiration”, “Establishing reputation”, “Focusing on innovation”, “Guarding the bottom line”, “Protecting ecology”, “Increasing vitality”, and “Uniting in a concerted Sunshine brings vigor to lives on the earth. effort”. Among them, “Showing aspiration” is to follow the guidance of Party Building and implement We use “sunshine” to vividly interpret

the national strategies; “Establishing reputation” is to optimize products and services, and build Showing aspiration Showing CSR our ways to fulfill social responsibilities. It Uniting in a concerted effort Everbright brand; “Focusing on innovation” is to enhance innovation-driven development and promote

Establishing reputation Establishing Increasing vitality theme

mainly has two layers of meaning. Firstly, innovation on Focusing Protecting ecology

Guarding the bottom line transformation and upgrading; “Guarding the bottom line” is to ensure safety and hold the bottom line sunshine is the source of energy for the of risks; “Protecting ecology” is to take root in green business and carry out green operation; “Increasing earth and life, which symbolizes Everbright vitality” is to promote Everbright culture and care for employee's development; “Uniting in a concerted Group’s endogenous energy and strong effort” is to cherish partners cooperation and integrate into community construction. mission to fulfill social responsibility and promote sustainable development. Secondly, sunshine means positive attitude We will fulfill social responsibility and promote sustainable development in a way similar with and full of vigor and vitality, which shows “Photosynthesis” that occurs in nature. Photosynthesis turns light energy into chemical energy and Everbright Group’s unremitting pursuit and stores it in organic matter, which is crucial to the survival of almost all living things in the biological firm commitment to create comprehensive world. At the same time, it releases oxygen (or hydrogen) to fuel the carbon-oxygen cycle on earth. economic, social and environmental values. The Group fulfills social responsibilities based on financial services such as banking, securities, ・ Shareholder Customer insurance, trusts and asset management, and characteristic industries such as inclusive health Promote social care, comprehensive tourism and integrated environmental protection. The Group outputs “Light progress Government Staff Members Energy” through refining finance and optimizing real industry. Banking Security Insurance Realization Trust Asset management The Group constructs a CSR “Ecosphere” of responsibility for government, shareholder, Inclusive Health Care Comprehensive Tourism ・ Integrated Environmental Protection customers, partners, employees, peers, environment, community, and other stakeholder Comprehensively groups directly or indirectly affected by the business operations. manage risks Pursue high quality Peer development Community Guided by the three-layer hierarchy of CSR theory, the Group establishes a three-layer CSR ・ Partner Environment fulfillment mechanism of “Comprehensive Risks Control-High Quality Development Pursue-Social Progress Promotion”, so as to realize benign interaction between business development and stakeholders, through which “Photosynthesis” takes place.

China Everbright “Sunshine” Responsibility Model A harmonious and “win-win” business environment and social atmosphere, just like the oxygen (or ・ hydrogen) released by photosynthesis, to achieve the back-nurturing of the entire ecosphere.

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Material Topics High Stakeholders Identified material topics We put an emphasis on listening to the opinions of internal and external stakeholders, identify key stakeholders from different levels and business segments of Everbright Group headquarters and subsidiaries, and deeply understand and Topic identification respond to their requirements and expectations. We mainly collected topics and issues through Importance to stakeholders management recommendations and suggestions, Stakeholders Requirements and Expectations Communication and Response Approach expert analysis, stakeholder feedback, and standard benchmarking of social responsibility, and finally identified 32 social responsibility topics Implementation of national strategies Working conference and report and issues. Deepening reform of state-owned enterprises Regular information disclosure Government Compliance with laws and regulations in operation Paying tax according to law

Improving corporate governance Shareholders’ Meeting Topic analysis Creating economic value Financial report We issued questionnaires through professional Shareholders Strengthening risk management Board of Directors platforms and invited stakeholders to vote on the 32 social responsibility topics and issues. Participants were from the government, Relatively high Importance to the sustainable development of High High-quality products and services Official website shareholders, customers, partners, staff members, Everbright Group Customer rights protection Customer satisfaction investigation community and other major stakeholders. A total of Customers 3,608 valid questionnaires were collected. Identified material topics

Win-win cooperation Implementation of strategic cooperation Staff training and Comprehensive risk Innovative development development management Partner Integrity compliance Daily business communication Topic prioritization Building of corporate Comprehensively Win-win cooperation culture deepening reform with partners

We finally identified 14 material topics with Compliance with laws High-quality products and Promoting green the most concern, based on the voting results and regulations services business Basic rights and interests protection Five insurances and one housing fund Targeted poverty Career development space Suggestion activity of stakeholders on social responsibility Prudent operation Management and control of headquarters alleviation topics and issues, in combination with the Employees Work-life balance “Everbright Future” WeChat Official Account development situation at home and abroad, as Coordinated business Serve for the national development strategies well as the internal and external development environment faced by Everbright Group. At Maintaining a fair and orderly market Forum and exchange activity the end, the topics are prioritized from the two dimensions of “importance to the sustainable General topics Promoting industry progress Formulation of industry standard Counterparties development of Everbright Group” and “importance to stakeholders” according to the requirements of Employee right Inclusive finance protection Green office topic management and information disclosure in Occupational wellbeing Employee voluntary Energy conservation Disclosure of environmental information Green public welfare relevant standards of social responsibility. management service Ecological protection Environmental protection project open to the public Implementation of Environment Service quality Charitable donation strategic cooperation

Contribution to industry Supply chain Customer information development management security Driving local development Community investment Supporting the Response to climate Energy conservation development of local change Participating in charity Voluntary activity and emission reduction countries Community Serving poverty alleviation Targeted poverty alleviation Overseas business Participation in Public welfare community construction exploration

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Focusing on Responsibility Remaining True to the Original Aspiration and Go Ahead Bravely

Forty years ago, China adopted the policy of reform and opening-up, and the ancient Chinese nation embarked on a grand Today, with the rapid growth of assets, the significant improvement of profitability, the gradual improvement of journey toward rejuvenation. China has spent 40 years writing a glorious epic of historical development of human and a new management, and the increasing recognition of social contribution, Everbright Group own a number of listed companies chapter of the era. “We must work hard to realize our great dreams, instead of waiting and shouting.” With this marvelous at home and abroad, including Everbright Bank, Everbright Securities, Everbright Limited, Everbright International, historical process, Everbright Group was established. Everbright Group has gradually developed from an external window to Everbright Grand China, China CYTS Tours Holding, Cachet, China Aircraft Leasing Group Holdings Limited, Everbright the foreign countries in the early stage of China’s reform and opening-up to a large comprehensive financial holdings group Jia Bao, Everbright Water, and Everbright Greentech. ranked in Fortune Global 500, which has become a live example of the great process of China’s reform and opening-up. In August 2009 2015 In August 2016 In May 1983 In July 1984 In November 1990 Everbright Securities was listed on the A-share Everbright Group made its Everbright Securities was listed Everbright Group was established We changed the name to “China Everbright China Everbright Group head office was market. debut in Fortune Global on the H-share market. th in Hong Kong and officially opened Holdings Company Limited”. established in Beijing. 500, ranking 420 . on August 18, 1983 registered as In December 2013 “Violight Industry Co., Ltd.”. Everbright Bank was listed on the H-share market.

In August 2010 In December 2014

Everbright Bank was listed China Everbright Group on the A-share market. inaugural meeting was 2018-present new era and new journey held, and Everbright Group The new leadership of Everbright Group has established successfully completed the the strategic ambition of building world-class financial 1983-1990 Establishment reform and reorganization. 1990-2003 Strategic transformation 2003-2017 Reorganization and development holdings group with two steps with ten years. We have At the beginning of its establishment, Everbright Group was strengthened Party Building, established the “Four-Beam mainly engaged in foreign trade and industrial investment. Everbright Group began to tilt its business toward the Everbright Group began to carry out strategic adjustment, reorganization and Eight-Pillar” strategic framework and the overall It introduced a large number of advanced equipments and domestic and financial sectors, while investing in Hong and restructure. We successively established Everbright Industrial industrial strategy of “refining finance, optimizing real technologies for domestic enterprises, built a large number Kong’s capital market. It established China Everbright and Everbright AMC, completed the listing of Everbright Bank and industry, and strengthening the Group”. We also focused of industrial projects, and carried out cooperation with open Group, Everbright Bank and Everbright Securities, and Everbright Securities on A-share and H-share markets. Furthermore, we on the “433” objectives, striving to achieve coordinated coastal cities according to the national coastal development acquired and restructured four listed companies in Hong reorganized Everbright Insurance and acquired Everbright Trusts, while development in terms of quality, efficiency and scale. strategy. It was an important bridgehead in the early stage of Kong and Singapore, including Everbright International, completing the strategic transformation of corporations in Hong Kong. We earnestly fulfilled the political, economic and social China’s reform and opening-up and an important forerunner of Everbright Limited, China Everbright Technology and In December 2017, China Youth Travel Service and China Everbright responsibilities of central state-owned enterprises in China’s development of financial holdings group. Everbright Asia Pacific. Industrial (Group) Company joined in the Group. China’s economic and social development.

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Strengthening capacity Improving decision- Bridgehead of Reform and Opening-up Optimizing talent Improving incentive building at the making and team construction mechanism headquarters authorization process

We should hold high the banner of reform and opening-up in the new era and constantly deepen reforms Establishing the system Innovating the mechanism Encouraging cadres to take Refining decision-making in an all-round way. of business department of talent selection and responsibility: items: and subordinate recruitment: We formulated the “27 We formulated and issued -- Xi Jinping, General Secretary of the Communist Party of China Central Committee, President of department: We carried out public Guidelines for Everbright” the Measures for the the People’s Republic of China and Chairman of the Central Military Commission We established three recruitment of talents in six to give cadres guidances Implementation of the business departments, segments and implemented of taking responsibility and “Three importances and namely, Ecological and the concept of “Six acting boldly. One Greatness” Policy- Environmental Protection Capabilities”. making System (Provisional), Department, Cultural detailing the list of 71 “Three No matter how far the journey is, as long as you are willing to go forward you can reach the destination. No matter Establishing scientific Tourism and Health importances and One Innovating talent assessment system: how hard it is, you can complete it if you are willing to do it. Department, Sci-tech Greatness” items. management: Innovation Department, We implemented the Over the past 35 year, we started our business in trade and expanded it in real industry. As an important forerunner of with an additional center We formulated the Flexible “Dual KPIs” assessment Establishing decision-making named Audit Center of Team Management combining Party Building Chinese financial holdings group, we are full of vitality in the transformation in the new era. and authorization system: Everbright Group. Measures of Everbright KPI with operation Group to break the fixed management KPI. We drew up and issued the Over the past 35 years, we have been followed up with the trend of the era, keeping pace with the country through thick and office restrictions and Guidelines on Improving the thin sharing the joys and sorrows, and contributed to the country’s construction with our utter innocence. Reforming corporate stimulate the vitality of Decision-making Process and Exploring reform of governance: talents. Authorization Management compensation system: Over the past 35 years, we have made unremitting efforts to forge ahead, thrived under the care of people from all walks of We implemented vertical System, and initiated the life, and become the epitome of state-owned enterprises that is chasing Chinese dream with all efforts. management for 5 We formulated a series construction of the decision- subsidiaries. of compensation making and authorization management systems system for Everbright Group to make compensation and its subsidiaries. Actively carrying out management process more prospective research: scientific. Create the Future Through Hard Work and Accelerate We carried out Establishing the working Development Through Reform research on valuation mechanism of Executive of comprehensive Committee: financial holdings group, We formed the mechanism In 2018, Strategy formulation shall go forward one inch ahead of the reform studied on international for decision-making and Everbright Group benchmarking cases, and supervision by which the Constructing the top-level design. Everbright Group has successively studied and issued guideline held the First Everbright- Party Committee takes held documents for reform such as Guidelines on Comprehensively Deepening Reform and Work Plan of Guanghua Financial the lead and the Board Holding Forum. of Directors, the Board of Leading Institution on Comprehensively Deepening Reform. We have set up the Everbright Group Supervisors, the Executive 10 Leading Group for Comprehensively Deepening Reform and the Office of Deepening Reform. Guided Committee, the Special by the central government’s requirements on deepening reform of state-owned enterprises and the Committee and the Operating meetings of the Team Management Conference financial system, we actively implemented our new strategy, emphasised on the systematicness, on Deepening Reform assume their respective integrity and synergy of reform, and constantly raised the self-consciousness and capability of reform. responsibilities of decision- making and supervision. Establishing the mechanism for deepening reform. We have explored and enriched the “1+1+1+N” 7 working mechanism for deepening reform, promoted implementation mechanisms such as meetings of the Office assignment papers, supervision list and work briefing. Also, we clarified decision-making mechanisms of Deepening Reform such as group meeting, joint-committee and thematic meeting. We promoted reform in a forceful, orderly and effective manner in line with the principle of “urgent-need-first and problem-oriented”. more than Key tasks of deepening reform 1 Deepening reform 1 Deepening reform 50 commissioner + assistant In 2019, Everbright Group will continue insisting on the mission of creating a better life for the people, persist in reform and innovation, and strive to write another glorious chapter. thematic meetings + Several supporting 1 Functional department and drafted + departments 21 Focusing on the key tasks. Based on the pointcut of stronger headquarters, and institutional construction as the main task, Everbright Group formulated major reform measures. We have research reports made breakthroughs in the vital areas and the key links of reform, including headquarters building, talent development, incentive mechanism, decision-making and authorization.

16 17 China Everbright Group | Everbright, forever Corporate Social Responsibility Report 2018

Focusing on Responsibility Boosting Poverty Alleviation for a Moderately Prosperous Society

By the end of 2018, For several years, Everbright has been committed to poverty alleviation. As the “National Team” Everbright Group had of financial holdings, we have borne in mind our political responsibility. Since 1995, we have Financial Poverty Alleviation undertaken the task of targeted poverty alleviation. In 2002, we started targeted poverty alleviation project in Xinhua County, Loudi City, Hunan Province. At the end of 2015, we enlarged the implemented We utilized our advantages in professional technology, talent team and market resources as a financial holdings group assistance to Guzhang County, Xiangxi Autonomous Prefecture, Xintian County in Yongzhou and explored a unique financial poverty alleviation model. We set up bank branches in poor areas to expand the scope of 353 City. We have strengthened leadership and improved the Leading Group for Poverty Alleviation. financial services. In connection with the poverty alleviation program, we strengthened credit support for poverty alleviation The Chairman of the board of directors served as the group leader, and had set up the Poverty projects. We strengthened e-commerce poverty alleviation efforts relying on our cloud payment and e-commerce platform assistance projects Alleviation Office to strengthen functions, work coordination and guidance. We have coordinated “Marvelous Purchase”. Also, we explored a comprehensive poverty alleviation model represented by “Securities +” relying resources of all subsidiaries of Everbright Group and increased the investment of funds and on expertise and customer resources of Everbright Securities, and guided Xintian County to raise more than RMB 1 bn with other resources year by year. We have dispatched outstanding cadres to urge poverty-stricken invested a total “securities + capital” model. Nevertheless, we gave full play to our advantages in insurance services and donated RMB 252 counties to shoulder the main responsibility for poverty alleviation. Based on our advantages in amount of RMB mn of accidental injury and accidental medical insurance to Guzhang County. comprehensive finance and industry-finance cooperation, we have intensified our precise efforts, and we found new ways of poverty alleviation. We focused on precision projects and did a good mn 170 joint work in poverty alleviation by finance, industry, livelihood and Party Building. The first rural financial service branch Case We have set the following bank is opened and lifted We were awarded the honorary title of We were awarded the honorary title of branches in poverty-stricken areas: As Menlouxia Yao Minority Township is located in the remote area “National Advanced Collective for “Advanced Collective for targeted of Xintian County, it is inconvenient for local villagers to deposit or 287,600 Poverty Alleviation and Development” Poverty Alleviation” withdraw money. To solve the problem, Everbright Bank adopted by the State Council by the State Council China Everbright Bank Yongzhou a precise and efficient poverty alleviation initiative. Within just persons out of 27 working days, we set up one self-service bank branch and poverty Xintian Sub-branch two rural ATM service points, effectively filling the “blind area” of We were awarded the honorary title of We won the “Good” grade (highest grade) financial services in poor rural areas. “Advanced Unit for Targeted Poverty in the first assessment of the targeted Alleviation Among Central State Organs” poverty alleviation work of central units by the State Council China Everbright Bank Loudi Branch The Industrial Poverty Alleviation Project of Our experience and practices in targeted Guzhang County was selected as one of the poverty alleviation have been selected in the “100 Classic Cases of Poverty Alleviation “Yearbook of China’s Poverty Alleviation and in Hunan Province” Development” for 6 consecutive years China Everbright Bank Loudi Xinhua Sub-branch

Xintian County Menlouxia Yao Township Self-service Bank and Rural ATM Service Point Menlouxia villagers show their new Everbright Bank cards

Everbright Group’s honor in poverty alleviation 18 19 China Everbright Group | Everbright, forever Corporate Social Responsibility Report 2018

Industrial Poverty Alleviation Poverty Alleviation of People's Livelihood

In 2018, We focused on helping local characteristic industry, green agriculture and cultural tourism We focus on solving the people’s livelihood issues that are of primary concern to the people and the government, and make Everbright Group projects, increased project support, paid attention to the “Hematopoietic” function of poverty breakthroughs in key areas. We worked hard to promote poverty alleviation in terms of health care, employment, education alleviation projects and created conditions for the development of industrial poverty alleviation and ecology, so as to increase their satisfaction in poor areas. In 2018, Everbright Group invested more than RMB 3.4 million invested RMB projects by setting up platforms, opening windows and building models. In 2018, Everbright to promote telemedicine projects in poverty-stricken counties, assisted Health and Family Planning Bureau of Xinhua County Group invested RMB 3.7 mn in the tea industry in Guzhang County to build tea production lines, in building the remote clinics. The facilities included five county-level medical institutions and five township health centers, mn 16.2 improve the quality and efficiency of tea industry and promote the brand of Maojian Tea produce and two village-level telemedicine clinics in Xinhua County and Xintian County. We helped poor people in poverty-stricken in three targeted in Guzhang County. With the effort of poverty alleviation in the tea industry for more than three counties, precisely matching poverty alleviation projects with employability skills and jobs, providing skill training for more than poverty-stricken years, the output of tea in Guzhang County has increased from 4,300 tons to 9,000 tons. The 1,900 people, and realizing employment transfer of more than 1,300 people. We invested RMB 3 million in the construction counties total area of tea gardens has exceeded 165,000 mu, and the per capita tea garden area ranks of Everbright Hope Elementary Schools in Xihe Town and Jiqing Town, Xinhua County, invested RMB 3.9 million in the first in Hunan Province. China CYTS Tours Holding held the 17th CYTS Alliance Member construction of Special Education Schools in Xintian County and Xinhua County and built “Love Book Houses” in 12 township Conference in Xinhua County, a targeted poverty alleviation area of Everbright Group, during schools in Xintian County, which effectively improved the conditions of local elementary and middle schools. We carried out the which the cultural tourism resources of the three poverty-stricken counties were promoted to “Mingde” one-to-one program to help poor students. We set up a column on the front page of the official website of Everbright nearly 100 domestic and foreign travel agents. Group for employees to claim financial aiding targets online to help filed poor students through one-to-one donation. In 2018, we raised more than RMB 1,069,300 to help 1,464 poor students. Everbright Industrial actively carried out ecological poverty alleviation projects and built sanitary toilets and sewage treatment system in Niujiaoshan Village, Guzhang County.

Case We helped “Ms. Rice” out of trouble Case The first village-level medical clinic is opened to prevent poverty caused by illness Ms. Deng Xiaoju, known as “Ms. Rice”, is an industrial small In order to solve the problem of lacking medical services in poor areas and lacking medical treatment for villagers, Everbright business owner in Xintian County, Hunan Province. The Group built the first village-level telemedicine clinic in Hunan Province - Lutang Village Telemedicine Clinic, Menlouxia Yao Minority enterprise was struggling facing capital shortage, difficulty Township, Xintian County. Villagers can make an appointment with a contracted family doctor through the Online hospital platform. in applying for credit and single sales channel of products. Based on the examination of patients by village doctors, experts from provincial, municipal and county hospitals participate in the Everbright Bank has utilized its professional advantages, diagnosis through video and audio, so that patients can receive expert diagnosis at home. opened a green channel for her, and assisted her in preparing credit materials and completing real property registration. We also helped her solve the problem of capital shortage and expanded the sales channel of her products by putting her Case We give full play to our business advantages to find new ways to alleviate poverty products on our e-commerce platform “Marvelous Purchase”. At the same time, Everbright Securities effectively helped her Sichuan Province has vast land, a lot of mountains and a large population of poor people. In view of the situation, Cachet, enhance the internal management of the enterprise, improved through B2B e-commerce model, with Sichuan Jiashi Rongjin Pharmaceutical Co., Ltd. as the distribution subject, distributed the product structure and help the product sell abroad, exclusive drugs and consumables to over 500 small medical institutions and clinics in remote areas with a preferential price. As a regarding her business as the “one-county one-company” result, small medical institutions in remote areas effectively reduced procurement costs, improved capital turnover, improved the Mr. Li Xiaopeng, Chairman of Everbright Group met with “Ms. Rice” helping target. timeliness of drug distribution. Also, it alleviated the current situation of difficult and expensive drug use in poverty-stricken areas.

Poverty Alleviation in Party Building

We support village-level party branches in poverty-stricken counties in improving infrastructure and strengthening the position Case We set up a platform for cultural tourism promotion construction of primary-level organizations. In 2018, we spent more than RMB 7 million as the sponsorship from the Party to support Guzhang County in transforming village-level comprehensive service platforms and improving activity places of village- Relying on its advantages in tourism and health care, level party organizations. We support Party members in establishing poverty alleviation projects, cultivate leaders in poverty China CYTS Tours Holding innovatively launched five product lines of Red Tourism, Rural Tourism, MICE alleviation, earnestly enhance the organizational and fough the capacity of party organizations in poor areas, as well as making Tourism, Scenic Tourism and Health care Tourism from poverty alleviation in Party Building more effective. the four fields of product R&D, mechanism platform, event marketing and organizational guarantee. At the The Party Branch of Everbright Group and the village-level party branch of poverty- same time, we actively built a platform for cultural tourism Case stricken counties carried out “Five Ones” joint construction activities promotion and publicity in poverty-stricken counties. With a solid foundation, we have made solid achievements Three organizations, Primary Party Branch of Everbright Industrial and Party Branch of Niujiaoshan Village, Guzhang and helped poverty-stricken counties fight against poverty County, Organ Party Branch of Everbright AMC and Party Branch of Shuangxing Village, Xinhua County, carried out “Five- and help people who lived in the areas strive for a more One” construction activities. We organized exchanges and discussion on Party Building and participated in a Party lecture comfortable life. and an organizational event together. We visited poverty-stricken households, distributed donation of money and related materials, and completed the objectives of “jointly supporting a number of poverty-stricken households, jointly handling a CYTS Alliance Conference practical work benefiting the people, and jointly carrying out a heart-warming activity”.

20 21 Showing Aspiration with Great Ambition

Aspiration is dream, strategy, culture, and the spiritual impe- tus for an enterprise to make progress. We adhere to the guidance and the leadership of Party Building, constantly deepen and refine the Party Building, which is always taken as a strategic guarantee. Keeping our mission in mind, we take the initiative to serve and integrate it into the national development strategy. We also keep the responsibility as a leading financial holdings group in mind at all time. We pro- mote openness and development, increase investment, and expand cooperation areas to further promote implementation of the Belt and Road Initiatives.

Leadership of Party Building Mission Undertaken Openness and Development China Everbright Group | Everbright, forever Corporate Social Responsibility Report 2018

Leadership of Party Building Construction of Primary-level Party Organization We attach great importance to the primary-level Party quality of life of primary-level organizations, organized a Sticking to the Party’s leadership and strengthening Party Building are the root and spirit of state-owned enterprises. We Building. We held a meeting on primary-level Party Building series of Party Building activities with the goal of “dual first- always take strengthening Party Building as a strategic guarantee and adhere to the guidance of General Secretary Xi Jinping in Xibaipo in which we exchanged views on primary-level class”, and stimulated the enthusiasm of Party members in Thought on Socialism with Chinese Characteristics for a New Era. We firmly build the “Four Awareness”, keep enhancing “Four Party Building, emphasised on the latest and the most their work. We formulated opinions on team construction Confidences” and effectively accomplish “Two Maintenance”. We explore and form the distinctive Party Building overall thought difficult issues during primary-level Party Building, and of primary-level Party branch leaders, accelerated IT of Everbright group for a new era that focuses on the “Three Forces”, pays attention to the “Three Voices” and implements the proposed specific suggestions to solve these issues. We application of Party member management system, and “Five Dualities”, continuously carrying out and improving the work of Party Building. adjusted contact point of the Party Committee members strengthened the standardized management of primary- of Everbright Group at the primary level and strengthened level Party organizations and Party members. Primary-level the guidance of the Party Committee to primary-level Party Party organizations should be the schools for educating organizations. We carried out training for Party branch Party members, centers for uniting the masses and secretaries and Party workers to help them accurately fortresses for overcoming difficulties, and constantly open grasp the requirements of Party Building and improve up new prospects for primary-level Party Building. their ability to solve practical problems. We improved the Overall Party Building thought for a new era We carry out Party Day education event with the theme of “Learning Case from example, taking responsibility and spearheading pioneer”

On the occasion of the 97th anniversary of the founding of the Communist Party of China (CPC), Everbright Group gathered two groups of party members from the headquarters to Nanjing to carry out the Party Day educational event Focus on the Pay attention to Implement the with the theme of “Learning from example, taking responsibility and spearheading pioneer”. We organized party members “Three Forces” “Three Voices” “Five Dualities” an on-site visit of the environmental protection business exhibition hall, Party Building corridor and staff workplace of Everbright Environmental Protection Technology Research Institute on the spot. Nevertheless, we learned the advanced deeds of model workers of Everbright Group represented by Shao Zheru, so as to encourage them to play an exemplary role on the new journey of Everbright Group. We focus on enhancing the We pay close attention to We implement “dual first- fighting capacity, influence employees’ compliments, class, responsibility, coverage, and centripetal force of Party requirements and complaints, budget, and KPIs” to further Building. Meanwhile, we gain and further explore practical promote and form a primary- a deeper understanding of the and effective Party Building level-oriented Party Building Ideological Education for Party Members importance of strengthening measures. situation. Party Building under new We have studied General Secretary Xi Jinping’s Thoughts on Socialism with Chinese Characteristics for a New Era, as circumstances. well as the guiding principles of the 19th CPC National Congress by means of intensive seminars and special guidance lectures. We took multiple measures to build a team with a clear political stand and with vision of big picture, responsibility and capability. We have studied and implemented the important speech delivered by General Secretary Xi Jinping during a conference to mark the 200th anniversary of the birth of Karl Marx, and invited professors from the Party School of the Central Committee to deliver thematic reports. We pointed out the spirit of the Party Central Committee’s Opinions on Improving the Structure of Party Enriching Working Methods Further Inspiring Cadres to Take New Responsibilities and Perform New Tasks in a New Era, and held Party Committee Building Central Group Conference with the topic of “New Responsibilities, New Actions, Learning from Example, and Building First- class Company” and Model Worker Deeds Reports. We formulated and issued 100 Guidelines on Strengthening In accordance with general idea on Party Building for a new Party Building at the Primary Level for Everbright Group and era, we established a three-level system of responsibility We correct mistakes with quick responses to implement the construction Case measures for evaluating the performance of Party Building for Party Building with the Party Committee of the Group, of an honest and clean Party at directly subordinate enterprises and headquarters, and primary-level Party Committees, and Party branches as Youth Travel Group strives to strengthen the construction of discipline inspection teams, and it further standardizes and compiled Party Building budget, so as to strengthen Party main body. We followed and deepened the “Five Dualities” improves institutions for discipline inspection. If the Party branch does not have members for discipline inspection, we will Building at the primary level. We fully implemented the requirements with “Dual First-class”, “Dual Responsibility”, add members for discipline inspection. If there is a vacancy for members for discipline inspection, we will timely select Regulations on the Work of Branches of the Communist “Dual Coverage” as key content, with “Dual Budget” as members for discipline inspection. If the Party branch has only a few members, the Deputy Secretary shall concurrently Party of China, formulated and issued the 50 Guidelines execution guarantee, and with “Dual KPIs” as assessment serve as a member for discipline inspection. We have realized the comprehensive inspection of all the subsidiaries of Youth Travel Group and required inspection in written form and timely rectification of nearly 60 issues. We actively carry out Party of Everbright Group for Promoting the Standardized standard, and optimized working ways and methods member anti-corrupted governance education, anti-corrupted Education Month and other activities. Also, we combine anti- Construction of Party Branches and prepared the appraisal oriented by “Positive Norms” + “Negative Supervision” . corrupted education and improvement of clean governance archives, and build the clean governance archives of the middle standards for Party branches, in a bid to effectively promote management and managers in the key positions of Youth Travel Group. the standardized building of Party branches.

24 25 China Everbright Group | Everbright, forever Corporate Social Responsibility Report 2018

Mission Undertaken Facilitating the Development of the Yangtze River Economic Belt As the integration of the Yangtze River Delta becomes a national strategy, the advantages of Shanghai as a leadership of regional development is highlighted. We strengthen the allocation of resources of Everbright Group in Shanghai, accelerate the We have always closely aligned the development of the enterprise with the national strategies. Meanwhile, we actively establishment of Everbright Shanghai Headquarters, and make overall planning with the consideration of working mechanism, facilitated the implementation of national strategies such as the coordinated development of Beijing-Tianjin-Hebei business scope and office. Region, the construction of Guangdong-Hong Kong-Macao Greater Bay Area, and the development of the Yangtze River Economic Belt. We took the initiative to assume responsibility and played a role as a central state-owned enterprise with practical actions. Case We accelerate our integration into the Yangtze River Delta

In November 2018, Chairman Li Xiaopeng was invited to attend the First China International Import Expo. He inspected Promoting Coordinated Development of Beijing-Tianjin-Hebei Region relevant cooperation projects in Pudong New District and Huangpu District in Shanghai. We have taken the initiative to align with the national strategy of regional integration of the Yangtze River Delta, seized the opportunity of a new round of high- We established offices in Xiong’an New Area, setting up the working mechanism of Xiong’an New Area and made coordinated level opening-up, promoted high-quality development through opening-up and cooperation externally, and enhanced the international competitiveness of Everbright Group. progress of the construction of Xiong’an New Area. We have completed the top-level design framework of business development in Xiong’an New Area, set up the work information communication media. Besides, we carried out in-depth thematic research and planning. We launched projects in Xiong’an New Area in accordance with the idea of protecting environment, assist economy and development with cultural tourism, cooperation between industry and finance, and development driven by innovation. Supporting Real Economy

Everbright Bank becomes the first national joint-stock commercial bank qualified With serving the Real economy as our fundamental goal, we stick to the purpose of serving the Real economy through Case to establish a branch in Xiong’an finance, get funds to reach the Real economy through the “Last Mile”, and strengthen the endogenous driving force of the Real economy. Everbright Bank becomes the first national joint-stock commercial bank qualified to establish a branch in Xiong’an. Improving the capacity of inclusive financial services The establishment of Xiong’an Branch will further improve the organizational system of the Banking industry in Xiong’an In 2018, Everbright Bank has raised the development of inclusive finance to a strategic level, continuously New Area. It will strengthen the ability to release credit Everbright bank increased investment in the aspects of process optimization, product innovation and fintech, while resources, enhance the level of financial innovation, and improving the coverage, availability and customer satisfaction in financial services. provide strong financial service support for the construction and development of Xiong’an New Area. recorded a net Improving the service system. We have renamed “Inclusive Finance Department” to “Inclusive credit increase by Everbright Bank Hebei Xiong’an Branch Finance Business Department”, strengthening the personnel and resource allocation of inclusive RMB finance line. At the same time, we built inclusive finance operation management mechanism and inclusive finance service system with Everbright characteristics and its vertical structure. 112.4 bn for the in- & off- Building credit factories. We not only carried out the credit factory operating mode for small and Serving the Construction of Guangdong-Hong Kong-Macao Greater Bay Area balance-sheet micro businesses, but also implemented standard product, streamlined business, integrated process finance to private and centralized operation. We mainly provided services for small businesses with credit demand We fully play the advantages of our long-term business in Hong Kong. Through promoting strategic cooperation and enterprises less than 5 million RMB, and met their short-term, frequent and urgent financing needs which usually pushing forward the construction of platforms of technology, finance and talent network, we are striving for serving the are small amount. construction of Guangdong-Hong Kong-Macao Greater Bay Area. accounting for Optimizing the approval process. We set up a special team of inclusive finance risk, gave special approval authority for inclusive finance loans, and made the approval process more convenient and 38 % efficient for our customer. We carried out strategic cooperation with China Merchants Group on the construction Case of the Everbright of Guangdong-Hong Kong-Macao Greater Bay Area Bank's total net Focusing on supply chain finance. We promoted an effective linkage between large to medium-sized In January 2018, Everbright Group and China Merchants Group signed a strategic cooperation agreement in Beijing. credit customers and inclusive financial customers, cooperated with bonding companies and insurance With the goal of jointly serving the construction of Guangdong-Hong Kong-Macao Greater Bay Area, the two parties will companies in risk mitigation, while providing supply chain financial services with Everbright show their efforts to help the development given their respective advantages to operate in a market-oriented manner characteristics. and carry out cooperation in the fields of financial services, industry-finance cooperation, city and park, comprehensive logistics, eco-environmental protection, healthcare and tourism, with the purpose of building a win-win and sustainable In 2018, the growth rate of inclusive loan of Everbright Bank was 12 percentage higher than that strategic partnership. of the whole peer. Everbright Bank had set up inclusive specialized institution in 10 sub-branches, achieving remarkable results in inclusive financial service.

26 27 China Everbright Group | Everbright, forever Corporate Social Responsibility Report 2018

Facilitating the development of private enterprises We build a new rural guarantee cooperation model featuring “Government + Bank Case + Bonding company” We treat private enterprises equally in terms of credit policy, product innovation, service efficiency, incentive and constraint. We take more concrete and practical measures to address the problem of pricy financing for private To help increase loans for rural people in rural areas, Everbright Bank adopts a new rural guarantee cooperation model featuring enterprises and small businesses, with the purpose to better and more efficiently facilitate the development of the “Government + Bank + Bonding company”. On the basis of peasant household agreement on contracted management, with Private economy. bonding company as the risk control measure, we provide financing services for agricultural leading enterprises and superior peasant households, to achieve the benign development goal of increasing farmers’ income and to realize a win-win situation among banks, enterprises and farmers. We innovated the “forward repurchase” model to facilitate the development Case of inclusive finance and small and micro businesses

Everbright Jin’ou AMC actively responds to the national call to facilitate the development of inclusive finance and small businesses. By designing a whole-process business solution, clarifying the elements of forward repurchase business and formulating specialized risk control measures, we effectively address the problem of pricy financing for small businesses. The product models such as “Cloud Loan” and “House Loan” point out the direction for AMC to further increase their inclusive Open Development financial support.

We actively promote the opening-up and development of finance, expand the markets of countries along the Belt and Road. We lay out financial branches and work with partners to create value and share benefits.

Everbright Securities invests RMB 2.5 billion to participate in the asset management Case plan of bailing-out private enterprises to facilitate their future development Case We deepened China-Egypt exchanges and cooperation

Actively implementing the spirit of General Secretary Xi Jinping’s important speech at the Symposium on Private Egypt is an important fulcrum country along the Belt and Road. Enterprises, Everbright Securities invested 2.5 billion RMB to participate in the asset management plan of bailing-out In July 2018, at the invitation of Ministry of Tourism of Egypt and private enterprise, and established the “Everbright Securities Asset Management No.1 FOF Single Asset Management Plan National Bank of Egypt, Mr. Li Xiaopeng, Chairman of Everbright of Securities Industry Supporting Private Enterprise Development Series”. As the custodian, Everbright Securities Asset Group, visited Egypt and had in-depth discussions with leaders of Management, a wholly-owned subsidiary of Everbright Securities, invested the funds of the asset management plan in the Ministry of Tourism of Egypt and National Bank of Egypt regarding stock pledged repurchase project of listed company and the equity of listed company held by the stock pledged financier. At to strengthening the cooperation between Everbright Group the same time, we attract government, banks, insurance and other parties to jointly provide liquid support for the pledge of and Egypt in the fields of tourism, environmental protection and equity of private enterprises so as to facilitate the development of high-quality private enterprises. finance, which contributed to the Belt and Road Initiatives.

Looking forward, it is our hope to seize the opportunities of the Belt and Road Initiatives to strengthen cooperation Mr. Li Xiaopeng, Chairman of Everbright Group meeting with with China, support the development of Chinese Mr. Hisham Okasha, Chairman of National Bank of Egypt enterprises in Africa and the Arab region, and future Implementing the Rural Vitalization Strategy improve the level of cooperation between both sides. -- Mr. Hisham Okasha, Chairman of National Bank We actively implement the requirements of national policy, give full play to our advantages in financial and industrial of Egypt resources. We also contribute our wisdom to the rural vitalization strategy, in order to achieve the goal of both of urban and rural development.

We implement the “One, Two, Three, Four” rural tourism plan to boost the Case Case We build green power plant to contribute to the construction of green Belt and Road development of rural tourism Can Tho is the largest city in the Mekong Delta. On November 26, 2018, Everbright International’s Can Tho Municipal Solid China CYTS Tours Holding leverages the role of rural Waste Incineration Power Generation Project with a total investment of 47 million USD went into operation. The project has tourism in the rural vitalization strategy, and implements become a benchmark in the field of solid waste management in Vietnam, playing a demonstration role in the construction the “One, Two, Three, Four” rural tourism plan based on standard, technology and commercial model of municipal solid waste incineration power generation. Upon commissioning, its own business advantages which means building one the project is expected to provide 60 million KWH of green power annually and dispose 400 tons of household waste per day, rural tourism website (channel), serving for two types of accounting for about 60% of the city’s total daily waste disposal. The project uses new technology to bring the conviction that key customers, building three cooperation platforms and lucid waters and lush mountains are invaluable assets into Vietnam, making a new life for the local residents. providing four types of unique services, including rural vacation, rural-themed tourist routes, rural customization and rural cultural tourism, with the purpose to fully boost Can Tho Municipal Solid Waste Incineration Power Generation Project improves people’s livelihood with exquisite China CYTS Tours Holding’s rural tourism website is the development of rural tourism. technology, ensuring that the development of the region is in line with environmental standards. officially launched -- Mr. Tao Anh Dung, Vice Chairman of Can Tho Municipal People’s Committee

28 29 Establishing Public Reputation and Building Brand Image

World-class enterprises shall maintain the first-class brand image, reputation as well as market position. We continue optimizing the services in financial sector and maximizing our comprehensive financial advantages to build reputable branches, innovate well-known products and services, and cultivate famous staff members. We continue optimizing the industrial sector and focus on the industrial layouts of “Three Comprehensivenesses and One Innovation” to cul- tivate excellent team and achieve excellent performance. We build the service brand to continuously enhance cus- tomer’ s sense of ownership, their happiness and their sense of security.

Financial Sector Industrial Sector Serving Brand

中国光大 China Everbright Group | Everbright, forever Corporate Social Responsibility Report 2018

Financial Sector 2018 2018 2018 Everbright Insurance Everbright Trust Everbright Limited

We devote ourselves to develop our comprehensive financial services, cultivate high-quality financial products to better was awarded the Most Innovative was awarded the Charity Trust was listed in the Top 10 Private Insurance Company of the Year Program of the Year and Real Equity Investment Institutions meet people’s needs and aspirations for a better life, and build the core competitiveness of financial services. and Top 10 Caring Insurance Estate Trust Program of the Year. with Social Influence in China and Companies in China 2018. Top 20 Private Equity Investment Institutions in China 2018. Reputable branches Well-known products Famous staff members

Branches with high social cognition Competitive products with good Image representatives of Everbright and high customer satisfaction quality and good reputation Group in the financial sector Everbright Insurance complied with Everbright Trust closely centered on the Under the “Two-Wheel Drive” of Fund regulatory requirements and accelerated general requirement of building a first- management and self-owned capital the business transformation. The premium class trust company in China. Everbright’s investment, Everbright Limited has achieved “Three Reputations and income of the original insurance has main operating indicators grew against the steady growth in its business. Meanwhile, Exquisite products Detail-oriented service increased against the trend while the trend and reach a new high stage while its investment fund covers a number of high- Four Delicacies” of China performance indicator has increased rapidly. its operating performance outperforms growth industries in China, such as real Financial products shall truly meet the actual Everbright We shall take customer satisfaction as the Everbright Insurance’s business structure its peers. The trust business innovation estate, medical treatment and healthcare. needs of customers, so that customers will have ultimate standard to measure the quality of financial has been constantly optimized and the has continuously been advanced, and the positive opinion and feelings towards the services. We want our customers to have the over- team construction has shown vitality. At the its inherent business layout has been products and services. valued feelings towards the prominent services. same time, the “distinctive and valuable” effectively expanded. transformation and development has made Precise customer acquisition Refined management some periodical results. We shall sell the right products to the right customers, so We should create as much value as possible with that customers will have the positive experience with the minimum resources, so that customers will feel that the Everbright AMC actively took the initiative Everbright Jin’ou AMC insists on strengthening 2018 customized products. value is maximized for them. to change its development model. At the the main business of disposition of non- same time, its asset management business performing assets, striving to create the Everbright Jin’ou AMC grows steadily. Xinjiang Tourism Industry “One Core and Six Drives” business was given the Innovative Development Investment Fund, Inclusive Healthcare model. Its operation has obtained a good Practice Award 2018 and Local AMC 2018 2018 Industry Fund and Private Enterprise start on its business development, with Excellent Case Award 2018 at the 4th Development Supporting Fund have been a significant growth showed by various China Local AMC Forum. Everbright Bank Everbright Securities continuously advanced, with remarkable business indicators as well as a substantial progress in the layout of the Industry funds. enhancement of its capital strength. was included in the list of TOP 1000 was included in the list of Asia Brands WORLD BANKS by The Banker, Top 500, ranking CSR ranking fulfillment features in the financial No.39 No.241 sector Everbright up by 8 places compared to 2017. up by 10 places compared to 2017. Trust Everbright Everbright Securities AMC

Everbright Bank strives to adjust the deposit Everbright Securities strengthens its structure and loan structure to promote the advantageous businesses and constantly Everbright Everbright transformation of branches and income. makes up for its shortcoming in businesses. Bank Jin’ou Economies of scale have increased as well. It has made progress on retail brokerage, At the same time, the “Dual Adjustments and bond underwriting and asset securitization. Everbright Everbright Dual Transformations” programme achieved We have deepened the transformation of remarkable results. We actively serve in both wealth management and made breakthroughs Insurance Limited of the Real economy and the Private economy in institutional securities business to optimize while holding the bottom line and preventing the structure of asset management business. risks. Our overall operation shows a secure, orderly and strong momentum of steady growth, together with a steady enhance of the comprehensive market competitiveness.

32 33 China Everbright Group | Everbright, forever Corporate Social Responsibility Report 2018

Industrial Sector Case China CYTS Tours Holding implements three “tourism +” strategies

China CYTS Tours Holding focuses on expanding the three strategic areas of tourism + education, tourism + sports, We continue optimizing the industrial layout of “Three Comprehensivenesses and One Innovation” which means to broaden tourism + old-age care. It tailored tourism services and products for tourists of different ages, and strived to be a inclusive healthcare, integrate and develop comprehensive tourism, upgrade and expand integrated environmental systematic provider of quality life. protection, explore and innovate new technology, and cultivate good industries for a better sever for the Real economy. Tourism + education. We develop research travel products with the themes of inheriting red gene and exploring traditional Chinese culture. We pay attention to the education of teenagers’ quality, their interest and culture to contribute our efforts to national education. Inclusive Healthcare Tourism + sports. We set up a specialized sports company, built a number of characteristic sports towns, and undertook sports activities such as Mount Emei World Martial Arts Conference and several marathon events so as to meet people’s In 2018, In accordance with the situation of national medical reform, Cachet has actively studied demands of sports activities and fitness campaign. Cachet medical services and implemented the requirements of medical reform. It comprehensively Tourism + senior people’s care. We seize the opportunity in the seniors’ medical care market, provide comprehensive recreational scenarios for old people to enjoy high-quality healthy life around different seasons, different solar terms and had direct-selling expanded the business development of medicine distribution and medical consumables as different regions so as to pull the rigid demand for seniors care. hospitals in well as it expanded its business scale, thus improving the market competitiveness. In terms of medicine distribution, Cachet innovated the pharmaceutical affair service model, created multi-level business growth points, and accelerated the speed of growth of medical supplies 30 provinces distribution revenue. In terms of medical consumables, after years of development in the field in China of consumables for cardiology department, we established a nationwide sales network of high- and nearly value consumables and developed a broader space. Integrated Environmental Protection 1,400 As the first one-stop and all-around comprehensive environmental management service provider In 2018, in China, Everbright International actively promotes the construction of environmental protection Everbright International key hospitals projects and has become a leading enterprise in the environmental protection industry in China was granted the and even Asia and a world-renowned ecological environment group. Everbright Industrial Honorary Bronze Class of strengthens management foundation, promotes business transformation, and plays a positive Sustainability Yearbook role in promoting the “toilet revolution” and the construction of bio-toilets. 2018 by the RobecoSAM

New Technology

Everbright Technology implements the strategic optimization requirements of Everbright Group and provides technological support for innovation-driven development. Centering on Medical services of Cachet the IT strategic planning of Everbright Group, we focus on implementing the four operating strategies, including digital transformation solution, product innovation research and platform Comprehensive Tourism operation, new technology application, and data’s value creation, fintech innovation lab In 2018, China CYTS Tours Holding fully supports the development of the “Comprehensive Tourism” and venture capital incubation to help Everbright Group achieve technology-oriented and China CYTS industry and expands the tourism market. CYTS keeps close eye on the eco-urban construction innovation-driven development. Tours Holding planning of eco-city and takes the initiative in ecotourism. CYTS integrates “Red tourism”, “Recreation tourism” and “Ecotourism”, builds characteristic towns, forms the rural tourism brand was titled The Most with Everbright Characteristics to build a global leading comprehensive tourism service provider. Trustworthy Listed In 2018, CYTS served more than 20 million people in total. Tourism Company

China CYTS Tours Holding invested and China CYTS Tours Holding Flagship Store one again won constructed Beijing Gubei Water Town the first place in the holiday category on Double Eleven 34 35 China Everbright Group | Everbright, forever Corporate Social Responsibility Report 2018

Serving Brand Protecting the Rights and Interests of Customers We continue strengthening the systematic and mechanism construction, enlarge the complaint management and take effective measures to fully protect the legal rights and interests of customers. We devote ourselves to improving We stick to customer-oriented route, proactively listen to the requirements of customers, continue optimizing service the service level. procedures and pattern, protect the rights and interests of customers, and create value for customers with intelligent, standardized and normalized services. We develop an instant customer complaint management system to smooth Case the customer communication channel

Improving Customer Experience In order to improve the efficiency of handling complaint, Everbright Bank has developed an instant customer complaint management system. If a customer enters the system by scanning the QR code and makes In 2018, We constantly promote service innovation and upgrading, so that customers can get complaints by voice or text, as soon as the branch head receives the complaint, he will contact that customer Everbright Bank’s more intimate and thoughtful service experience. Everbright Bank continues enhancing to handle complaints directly. Both of the head office and the branch monitor the complaint handling process 44 branches were listed the transformation of branches to maximize the customer’s satisfaction with the services. and its following result in real time so as to realize the promotion of overall service capacity. in the Top 1,000 Model We constantly improve Everbright supermarket model and effectively improve customer Units of Civilized and experience. Everbright Insurance focus on the steps of "pre-service, quick compensation Standardized Banking and after-accident care" to provide excellent-quality services throughout the whole process China CYTS Tours Holding holds the Outbound Tourism Pre-departure Illustration Services 2018, with an of claim settlement. In this case, our customers can obtain indemnity easier and faster. Case increase of to promote civilized and safe travel

Everbright Bank launches smart counters for one- Safety is the premise of a pleasant travel. Therefore, the life 51 % Case stop service and property security assurance in the trip is always a major over the previous year concern for tourists. In cooperation with Ministry of Foreign In 2018, Everbright Bank popularized smart Affairs and China National Tourism Administration, Aoyou. counters across the country. We national- In 2018, com held the Outbound Tourism Pre-departure Illustration widly adopted advanced intelligent processing to explain tourism safety precautions to tourists, with the Everbright Securities application and the latest face recognition was included in the technology in China to provide customers with purpose to enhance their tourism safety awareness. At the list of China Brands better services. The services of debit card and same time, relevant measures taken by China CYTS Tours credit card through more user-friendly interface Holding to protect tourists’ rights and interests will also be Aoyou.com held the Outbound Tourism Pre-departure Top 500, ranking and a convenient business process. The introduced. The News CCTV client application broadcasted Illustration previous manual service mode was transformed No.93 into a new mode of “Customer Autonomy + the whole process of the event, which further expanded the Employee Assistance” to meet customers’ coverage of the event. up by 3 places Smart counter of Everbright Bank demand for diversified financial services more compared to 2017 conveniently. By virtue of the innovative features pioneered in the industry, such as “changing card with the same card number, and issuing In 2018, multiple cards with optional card number”, Everbright Insurance the overall business-handling efficiency was Protecting Customer Information improved by 40% compared with manual work. was titled “The Insurance It led to the result that the customer experience We strictly obey the national laws and regulations. We constantly improve the information security management Brand Most Concerned by was significantly improved. system, strengthen the information security training of employees, and fully protect the security of both of information Customers of the Year” of and transaction for our customers. the 13th China Insurance Innovation Award Everbright Bank carries out “Escort Everbright 2018” information security special Case Everbright Insurance launches real-time payment governance action Case In 2018, service to reduce the time for customers to settle claims China CYTS Tours Holding In September 2018, in order to protect the information security of consumers and improve the assurance of information security, Everbright Bank carried out “Escort Everbright 2018” information security special was listed in the “40 In the process of claim settlement, timeliness was a major concern for customers. To improve customers’ satisfaction, Everbright Insurance launched real-time payment governance action throughout the bank. During the event, we specially investigated and took the initiative to Brands from the 40 Years service for small claim cases with the compensation amount less than RMB 3,000. The rectify the potential safety hazards in Internet and mobile application, terminal security and sensitive information of Reform and Opening system processing time was shortened from 0.48 day to 1 second, which greatly reduced protection, in which we further improved the information security level and continuous assurance of information up” by The Growing of the the time for customers to settle claims. security throughout the bank. Great Brand on CCTV

36 37 Focusing on Innovation and Promoting Transformation

We keep on pursing innovation-driven development as it is the fundamental ensurance for us to become a world-class enterprise. We improve the sci-tech and inno- vation management and implement the strategy of tech- nological innovation to fully play its leading role. We carry out innovation practice, take various measures to develop technological innovation projects, so as to expand and strengthen our sci-tech sector. We emphasize efficient collaboration, create innovative synergizing development model to improve collaborative efficiency and market competitiveness.

Technology and Innovation Management Innovation Practice Efficient Collaboration China Everbright Group | Everbright, forever Corporate Social Responsibility Report 2018

Technology and Innovation Management Innovation Practice

Only by accelerating technological innovation and making technology one of our advantages, can we become competitive We focus on building an innovative atmosphere and encourage our employees to offer their suggestions towards in the global market. We insist on enhancing efficiency, improving management quality, promoting innovation and innovation. We keep on communicating and learning from other outstanding enterprises to achieve innovative facilitating development with scientific approach and new technology. At the same time, we promote digital transformation development and win-win cooperation. and technological innovation to increase our potential for future development.

Strategy of Technological Technological Management Innovation Mechanism Case Everbright Innovation Corner makes “good ideas” become reality

In order to meet the strategic development requirements We set up the Technology and Innovation Committee, drew up Everbright Innovation Corner is a concrete measure of Everbright Group, we devote our effort to developing Working Rules of the Technology and Innovation Committee through which employees offer advice and suggestions. We organize brainstorm for young employees, discussing technological innovation, effectively implement new of Everbright Group. In this case, we can provide institutional the implementation of “Three Reputations and Four technological strategies of “Three Comprehensivenesses support for collective decision-making on major technology Delicates”, “Three Comprehensivenesses and One and One Innovation”, and set up Technological Innovation and innovation issues. We set up the expert review group Innovation” and “E-SBU”, and studying specific business Business Department. At the same time, we drew up IT of technology projects to provide professional opinion to such as mobile Banking and intelligent investment cube. In this case, more young employees could be attracted strategic planning guidelines for Everbright Group, which the decision-making Committee. We establish guidelines of in innovative activities and are willing to contribute their gave instructions regarding information exchange and digital Management Measures for Technology Projects of Everbright wisdom and strength to the innovation development transformation, while it also determines the development Group to promote the standardized management process of of Everbright Group. By the end of 2018, Everbright direction of new technology sector. technology projects. In this case, we ensure the efficiency and the Innovation Corner has successfully held 30 events, and a number of great suggestions from young employees have orderly development of projects. At the same time, we keep on been accepted. Activity of Everbright Innovation Corner the construction of the framework management system to ensure projects being processed under standards with high quality. Information Management

We launched “6+2+2” IT project to improve modern management and control ability. We promote the construction of “Group + Internet”, and work with various departments of the headquarters and subsidiaries to realize the strategic vision of digital, platform-based and intelligent IT. We actively perform data governance, promote data standardization and asset Case Fintech Innovation Lab boosts new technological breakthroughs value transformation centering on organizational structure, data standardization, data quality and data security, as well as introducing big data, artificial intelligence and other new technologies to provide support for business operation. Everbright Technology and Tencent Cloud jointly established a Fintech Innovation Lab. The two parties are committed to strengthen a new internet-based financial cloud platform and try to accelerate the implementation of fintech capabilities. In this case, both parties can Two shared supporting Six management Two infrastructure realize a win-win cooperation in big data’s risk control technology, as well as application innovation in supply platforms systems environments chain finance and cross-border comprehensive financial Group management cockpit Risk management system services. By all means, Everbright Technology is one Data port ◎ ◎ Unified network within ◎ Group digital office platform (including legal affairs ◎ step closer to achieve technological breakthroughs. E-SBU collaborative ◎ management sub-system) the group ◎ Financial management system In 2018, relying on the platform of Fintech Innovation platform ◎ Auditing management system Group cloud Human resource management system ◎ ◎ Lab, Everbright Technology introduced 8 innovative ◎ technological products, including big data, distributed service framework, container cloud, 3D visualization and large-sized data screen. By absorbing new Fintech Innovation Lab is launched Case We apply “Everbright e-information” to achieve mobile Internet external concepts and new technologies, we laid a solid foundation for independent research and development.

“Everbright e-information” is a standardized mobile office application in Everbright Group. It has various functions and features such as internal information exchange and share, mobile office, company tendencies, opinions and suggestions, and mobile employee search. It helps more employees to achieve mobile Interconnecting, and it has been playing a positive role in promoting Group's culture and building corporate image.

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Efficient Collaboration

The improvement of efficient collaboration is an important action for China Everbright Group to reinforce By strengthening innovation and research and development, we incubate new products, services, models and headquarters construction and integrate internal resources. With E-SBU collaborative strategy as one of the formats that are in line with Everbright Group's development strategy. We explore new growth opportunities in the key strategies for mid and long-term development, we have made relevant construction schemes and started technological innovation sector, promote upgrade for products and services and strive to create a superior brand performance appraisal. Through building the ecosphere for the whole industry chain, developing the E-SBU in line with market development trend to meet the actual needs of customers. reputable brand and promoting the construction E-SBU collaborative platform, we aim to constantly improve collaboration efficiency.

Case We established “Cloud Fee Payment”, the largest open payment platform in China Establishing E-SBU Collaborative Strategy

By the end of 2018, The “Cloud Fee Payment” platform, as the breakthrough and experimental field of fintech innovation, We emphasis on improving the collaborative effects among diverse business and take the initiative to the “Cloud Fee was launched in 2008. It went through a five-year growth period and a three-year high-speed upgrade our business model. We center on the six E-SBUs, including Wealth, Investment, Investment Bank, development period. In particular, the growth in 2018 itself was equivalent to that in the previous nine Payment” platform Environmental Protection, Tourism and Healthcare. We have built a coordinated E-SBU development model by years. The “Cloud Fee Payment” platform is connected to the charging unit and the payment channel improving five key capabilities, which refer to Customer Sharing, Scenario Fusion, Service Innovation, Data recorded a total of and is open to the Internet channel through standardized integration. It serves the customers of the whole society, effectively reduces the time, capital, manpower and other costs. It promotes the rational Driven and Resources Integration. over allocation of social public service resources, and improves the convenience of people’s life to the most extent. At the same time, it promotes “great development” with “micro service”, contributing to the 4,000 development of China’s payment industry. projects, covering By the end of 2018, more than 4000 projects on the “Cloud Fee Payment” had been launched, and E-SBU more than the number of users had reached to 253 million, covering more than 300 major cities nationwide. The annual payment exceeded RMB 200 billion, and the average daily payment amount exceeded RMB 500 million. The “Cloud Fee Payment” platform has become not only the leader of China’s payment 300 industry, but also a pioneer of Internet inclusive finance. In 2018, we were awarded the Most Influential major cities APP by Xinhua News Agency, the Best Inclusive Financial Service Platform of the Year by Financial News, Inclusive Financial Pioneer Award by China Investment Network, as well as the Best Inclusive E-SBU is a collaborative development mode that Everbright Group devotes nationwide Financial Service Award by caishiv.com. to maintain the advantages of comprehensive operation and industry- finance cooperation. It introduces ecosphere and electronic element and embodies the high-quality innovation with Everbright characteristics.

Ecosphere Electronic Everbright By introducing the concept of Open By introducing Internet and digital Adhering to the concept of “One Case Terminus Technologies enter the field of “new smart city” at full speed Ecology as well as carrying out innovation technology, we improve Everbright”, based on the resource extensive internal and external our business model, promote digital endowment and advantages that strategic cooperation, we build transformation, and are empowered Everbright Group owns, we share With the continuous development of AI technology, “Smart City business industry chain, value by technology, to drive development our resources with our subsidiaries, Construction” has become the most promising commercial chain and ecosphere to provide through innovation. which including customers, implementation location of AI, IoT and big data. Relying on the customers with integrated one- products, channels, technology and strong financial strength of Everbright Limited and its excellent step services and achieve win-win information to maximize the value technical capacity, Terminus Technologies covers three business cooperation. created together with subsidiaries segments of “future architecture”, “future city” and “Terminus and partners. Technologies finance” with “AI + IoT” application at core. Terminus Technologies is committed to building the largest city-level IoT platform company in China, providing multi-scenario solutions for citizens’ lives, work and urban management, and providing all-round services for smart city and building upgrading and transformation. Wealth Investment Investment Environmental Tourism Health E-SBU E-SBU bank E-SBU protection E-SBU E-SBU E-SBU IoT+AI interactive experience exhibition hall of Terminus Technologies

Six E-SBUs

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Implementation of E-SBU Coordinated Strategy Achievements of E-SBU Collaborative Strategy

Under the guidance of E-SBU collaborative strategy and the foundation of a collaborative supporting mechanism, we Formulating the development scheme of each E-SBU continuously deepen industry-finance cooperation, finance cooperation and industry cooperation, and carry out a series of practical measures to strengthen business cooperation and innovation of its collaborative model. We clarify the instruction of the development principle, objectives, thoughts and tasks of each E-SBU. Meanwhile, we do a good job in organization and implementation and make overall arrangement of the implementation phases, the key nodes and scheduled objectives.

Setting up the indicator of E-SBU annual development plan Everbright Bank and Everbright Securities Everbright Bank, We integrate collaborative evaluation into the unified performance appraisal system of Everbright Group Everbright Securities and Everbright Trust Everbright Trust and and decompose it to member units of E-SBU, its operating institutions and even individuals. We explore Jointly launched “JZT” Carried out in-depth China CYTS Tours various E-SBU collaborative incentives, and fully mobilize the collaborative enthusiasm of all parties. Receivables Asset cooperation in innovative Holding Support Plan, Everbright businesses such as absolute Jointly issued Puhui CYTS Check Later Phase III return outsourcing, and ABS Building E-SBU whole industry chain ecosphere Aurora World Cup Assembled Consumption Credit channel. Funds Trust Plan to fully Focusing on the requirements of target E-SBU customers in the whole life cycle and aiming at scenario Financing Asset Support utilize the comprehensive Plan, and COSCO Leasing construction and end-to-end “one-stop” customer service, we constantly expand and enrich the functions advantages of Everbright Asset Support Plan, etc. Group in industry-finance and contents of E-SBU ecosphere by means of independent construction, internal resource integration, cooperation. external investment, merger and acquisition and strategic customer cooperation.

Cultivating reputable E-SBU products

Combined with the resource advantages of each E-SBU and its customer needs, we screen high- Everbright Insurance quality products to strengthen our marketing performance and expansion. Also, we increase cross- Everbright Bank and and China CYTS border cooperation with other companies to develop and innovate a number of comprehensive Everbright Limited Tours Holding industry-leading service products of distinctive brand and customers' recognization. Took the lead in launching Jointly launched Aybao online pension payment Some accident insurance. Promoting the construction of E-SBU collaborative platform service. achievements The E-SBU is positioned as a platform of information exchange, transaction drainage and ecological of E-SBU incubation in Everbright Group. We are committed to build the “Everbright” Collaborative Capacity Center collaborative Everbright Insurance to realize “corporate level” business connection. We are committed to build the “Everbright” Collaborative and Everbright Capacity Center to realize “corporate level” business connection and synergized value creation among strategy Everbright Bank, Limited customers, member enterprises and ecological partners of the Group, so as to provide technological Everbright Securities Jointly invested in a number support for the implementation of E-SBU strategy and “One Everbright” comprehensive services. and Everbright of real estate projects. Ashmore Successfully won the bid of the first REITs project in Xiong’an New Area jointly. Everbright Bank and Case We built Everbright supermarket and explore comprehensive “one-stop” service China CYTS Tours Holding By leveraging the E-SBU ecosphere, we introduced the cutting- Jointly launched CYTS edge concept and forward-looking thinking of new finance, overseas + co-branded IC new retail and new technology. We made use of offline card, CYTS co-branded China CYTS Tours physical branches and online APP platform resources and built Bravolinks credit card. Also, jointly “Bank-Yi” Everbright supermarket to carry out match-making, Holding launched certificate of distribution and publicity of various financial and industrial Undertook a number of Provided business trip deposit, foreign currency products. At the same time, we developed products along with business trips and meetings services for many enterprises exchange and other services more value-added services to enhance customer connection within Everbright Group. within Everbright Group. on aoyou.com. and satisfaction. On 12 December 2018, “Bank-Yi” Everbright supermarket was opened. “Bank-Yi” Everbright supermarket is opened

44 45 Guarding the Bottom Line and Risks Preventing

As a financial holdings group, we should not only adhere to the the main line of development, but also firmly guard the bottom line of risks. We exercise full governance over the Party. Guided by the political work of the Party, we make solid efforts to deepen the construction of Party’ s conduct and a clean government. We strictly obey the laws and regulations, strengthen legal affairs manage- ment, and control legal risks in the daily operation and management process. We attach importance to prudent operation, constantly improve the risk control system, pre- vent systemic risks, and achieve sustainable, steady and standardized operation.

Strict Governance over the Party Compliance with Laws and Regulations Prudent Operation China Everbright Group | Everbright, forever Corporate Social Responsibility Report 2018

Strict Governance over the Party Compliance with Laws and Regulations

By improving the mechanisms for fulfilling responsibilities, strengthening Party discipline, implementing the spirit of Our operation is in full compliance with the law and regulations. We take various measures to ensure our employees the central Party leadership’s “Eight-point Decision” on improving Party and government conduct, enforcing political comply with the law, improve the completeness of the systems, standardize the rules and regulations, provide adequate inspection and enhancing the ability of discipline inspection team to fulfill responsibilities, we have laid a solid foundation review of legal matters, contract and management, and effectively ensure the compliance of business development. for our future work and development, and constantly and more efficiently exercised full governance over the Party.

Strengthening law-abiding Careful legal examination of We hold meeting on discipline inspection and supervision, and deploy the discipline consciousness important matters inspection and supervision work of Everbright Group. We establish the Formal Improving the Guidance of the Discipline Inspection Commission of Everbright Group on Clarifying We regularly offer training sections to employees of We have issued the Administrative Measures on the Legal mechanism for fulfilling the “Five Lists” to Further Strengthen Discipline Inspection and Supervision, laying overall risk management and legal risk prevention. We Affairs Audit of Everbright Group, which stipulates the responsibilities a solid institutional foundation for daily supervision. We improve the working mechanisms, refine the KPI assessment content of Party Building, and urge the encourage employees exchange their experiences in management responsibilities, scope of legal affairs audit, implementation of responsibility by strengthening the assessment of responsibility. corporate legal risk prevention and help them prevent report process, issuance and use of legal audit opinions, legal risks. We pay attention to the important role of management of legal audit files, legal responsibilities and We carefully handle the problem clues, timely formulate and issue disciplinary legal consulting and auditing during the business as well other contents of legal affairs. We conduct professional legal inspection and supervision recommendations in response to the problems found as commercial transactions. We allow lawyers to fully audit and check on important matters of the headquarters Strengthening Party in the inspection and smooth the complaint reporting channel of Everbright Group. participate in the analysis and encourage them to come and subsidiaries, discover and correct legal loopholes in disciplines We intensify inspections and investigations and give full play to the role of discipline up with professional legal opinions, with a focus on the timely manner to ensure that all matters are carried out inspection and supervision institution in anti-corruption. legal support and services in advance. legally and in compliance with preventing legal risks.

Implementing the spirit of We improve the system regulations, establish guidelines of Rules for the Implementation the central Party leadership’s of the Central Party Leadership’s Eight-Point Decision on Improving Party and Strengthening systematic construction Strengthening contract review and “Eight-point Decision” Government Conduct by Communist Party Committee of China Everbright Group. We and management contract management on improving Party and pay close attention to the time node of holidays and do a good job in daily education. government conduct We carry out supervision and inspection and strengthen warning education. We uphold the principle of prioritizing the system and We implement the principle of “Double Reviews” for external

We strengthen the intensity of supervising and inspecting, and adjust and increase the constantly improve the system construction. We keep contracts signed by all departments of the headquarters. number of team leaders and members of the inspection leading group to improve the on perfecting the institutional framework by printing and We actively prepare for the establishment of contract Intensifying political working system. We also establish a working mechanism of auditing, risk compliance, distributing regulations regarding to risk management, management system to promote more standardized, inspection supervision, and petition collaborating with Party Committees. We carefully inspect the internal control and legal affairs management, as well as efficient and professional contract management. In political issue of the objects, and actively rectify the problems found in the inspection. some basic provisions and measures. In accordance with accordance with the Contract Management Measures of the requirements for “Identified Systematic Guideline” Everbright Group, we further implement and improve the We continue enhancing the effort of building teams and improve discipline of Everbright Group, we establish a guideline called the responsibilities of the centralized contract management inspection over supervision institutions and leadership. We carry out training for Work Program for Optimizing the Rules and Regulations of department, make all of the record of the contracts signed discipline inspection among officials and improve their ability to exercise oversight Everbright Group Headquarters to optimize the existing rules by the headquarters. Meanwhile, we implement the contract Enhancing the ability to and accountability. We help to strengthen the officials’ management ability, as and regulations of the headquarters. With the guideline, numbering management, and further strengthen the perform responsibilities well as increasing the efficiency of reporting the discipline inspection. We create we can sort out, review, revise and abolish rules and dynamic management of contracts. In 2018, we reviewed a new forms of education, which is setting up a WeChat official account (Everbright regulations. We comprehensively optimize and improve the total of 166 contracts signed by the headquarters, with the Breeze) to send the signal of “supervision in place” from time to time to promote the rules and regulations management system of Everbright contract value of about RMB 60.3 billion. implementation of the responsibility of the management and governance in Party. Group, and form the Rules and Regulation Handbook of Everbright Group. We further enforce the review process of new regulations, gradually improve the regular management We strengthen ideological construction of the Party and regularly carry out system, and comprehensively improve the level of Case theoretical study compliance management.

China Youth Industrial Development Corporation established a Guideline of Thematic Learning Program for Central Group of Theoretical Learning of the Leadership in 2018, and regularly carried out thematic learning and centralized discussion according to the learning program. Through seminars, training classes, workshops, online seminars and thematic mentoring lectures, we organized leadership to communicate with and learn from each other based on their working experience, understand the essence and spirit of General Secretary Xi Jinping’s thoughts on Socialism with Chinese Characteristics for a New Era. Therefore, the employees and the leaderships can consciously follow the guide to practice with this system of scientific theories. In this way, we comprehensively enhance the leadership’s ability to fulfill their responsibilities and promote the sustainable and healthy development of Party Building and the company’s business operation.

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Prudent Operation Optimizing the Construction of Internal Control We always focus on internal control. To ensure the legitimate and compliant operation of subsidiaries, we take Basic Provisions on Internal Control of Everbright Group as the guideline of the construction of internal control. With the We focus on preventing and resolving risks and ensuring the sustainable and healthy development of the enterprise by guideline, we comprehensively evaluate and regularly examine corporate governance, business process and information carrying out comprehensive risk management, consolidating the foundation of risk management, optimizing the quality system, with the purpose to form a dynamic closed-loop monitoring system of internal control. At the same time, in this and efficiency of internal control, promoting the reform of audit system and strengthening the management of trademark case, we can regularly track and rectify internal control, its relevant defects and key problems. and corporate image.

Comprehensive Risk Management Promoting the Reform of Audit System

We established a guideline called the Overall Program for Building Comprehensive Risk Management System of We strengthen our audit system, carry out various audit examinations, and increase our capacity for internal audit. We Everbright Group to provide programmatic guidance for risk management. We actively promote the comprehensive risk supervise various departments of the headquarters and subsidiaries to formulate rectification plans for the problems found management information system, complete the Overall Construction Program for Risk Management Information System in the audit, and define the key elements such as rectification measure, responsible person and completion time. Project of Everbright Group, and create a digital, platform-based and smart online risk management platform.

Establishing the Strengthening Improving the Carrying out Audit Center of IT application internal audit various audit Everbright Group of audit system examinations Information

Independent Marketing Comprehensive Three lines auditing Four risk management Strategy Mechanism of defense firewalls system With the goal of We completed the second We established and We implement throughout establishing an audit phase of the audit system inspected nine internal audit process over system of vertical project (off-site subsystem), audit systems, such as departments and we management within the put the audit system into Code for On-site Audit supervise various Risk, internal control, approval System company, we carried out full operation and started Service of Everbright departments of the the reform of the audit a new journey of digital Group, Measures for headquarters and system. We established an internal audit. Quality Control and subsidiaries to carry out Audit Center of Everbright Evaluation of Internal Audit rectification. In 2018, Group, which is a directly of Everbright Group, and we carried out a total of subordinate audit team that Code for Audit Rectification 24 audit projects in the adopts the classified Audit of Everbright Group to headquarters. Model to increase our guide and standardize our capacity and capability to audit work. Consolidating the Foundation of Risk Management perform audit examination.

We have formulated the Implementation Program for Risk Preference Setting and System Construction of Everbright Group, established the general tone of “scientific, robust, compliant and valuable” risk preference, decomposed and described the risk preference from qualitative and quantitative dimensions, and standardized the top-down and bottom-up risk preference transmission route. We have formulated the Risk Preference Management Measures of Everbright Group Strengthening the Management of Trademark and Name to provide a basis for strategic decisions and guarantee the steady development of the Group. We continue promoting the rectification of trademark and effectively improve the headquarters’ control of brand We have continuously improved the risk early warning and monitoring mechanism, formulated the Risk Monitoring resources of which established a legal foundation for the brand building of Everbright Group. We enforced the and Early Warning Management Measures of Everbright Group, standardized and institutionalized the risk early examination and protect our trademark and name, and kept on the investigation of similar trademark registration warning and monitoring functions. At the same time, we set up a risk indicator monitoring system to continuously of “Everbright”. We deal with trademark and name infringement, and effectively safeguard the trademark rights of track and analyze the monitoring indicators, important risk customers, major risks, changes in the external Everbright Group. In 2018, Everbright Group reviewed and authorized the trademark and name license applications environment and other information. of 643 subsidiaries.

50 51 Protecting Ecology and Beautifying Homeland

Civilization prospers and declines as ecology goes. We promote Green Industry, control environmental pollution at its producing source. We turn waste into energy and turn sewage into clean water. We continue deepening Green Finance, devote ourselves to the role of optimizing the allocation of resources, as well as supporting and pro- moting the ecological civilization construction. We carry out Green Operation, help employees establish the con- cept of environmental protection, and actively carry out environmental protection and public welfare action, so that the concept of green development runs through the whole operating process.

Green Industry Green Finance Green Operation China Everbright Group | Everbright, forever Corporate Social Responsibility Report 2018

Green Industry Case We turn waste into energy and set waste-to-power benchmark

Suzhou Waste-to-power Project is the first waste-to- Enterprises are not only the creators of material wealth, but also the bearers of environment protection and responsibilities. power project after Everbright International entered We actively implement the strategy of “Integrated Environmental Protection” and we cultivate to be a world-leading ecological the environmental protection industry. It was also the benchmark project of Everbright International and even enterprise. Relying on advantages in environmental protection technology, Everbright International, Everbright Water and China’s waste-to-power industry. The project is invested, Everbright Greentech create characteristic environmental protection projects in six fields including environment-friendly constructed and managed by Everbright International energy, environment-friendly water, green environmental protection, environmental technology, equipment manufacturing and in BOT (build-operate-transfer) mode. All emission international business to constantly expand the environmental protection ecosphere. targets of the project had reached and exceeded the “EU 2010” standard, and the technological level was leading in China and even in the world. In 2018, Everbright International and Suzhou Municipal Government officially signed the Supplementary Agreement on the Suzhou Waste-to-power Project Upgrading and Reconstruction RMB Project. Suzhou Waste-to-power Project will be upgraded Suzhou Waste-to-power Project of Everbright International and reconstructed, after which the daily waste disposal 160 259 94.489 scale will be increased to 6,850 tons. billion

There are 160 cities with 259 environmental protection Our investment in environmental protection projects projects are under construction environmental protection in Mainland China and abroad or put into operation amounts to RMB 94.489 billion Sewage Treatment Overview of environmental protection projects of Everbright Group We are committed to becoming the leading sewage treatment service provider in China. We extend sewage treatment projects not only in cities but also in villages and we develop decentralized sewage treatment technologies and equipment in rural areas as well. We explore effective models for comprehensive water environment management and watershed Environmental Research management in urban and rural areas and continuously improve the sewage treatment process. We optimize sewage treatment mechanism, so as to realize the dream of beautiful China. We not only implement industrial standards with actions, but also play a leading role in the industry to promote environmental protection. We actively participate in the formulation of national standards and industrial standards and promote the normative and scientific development of the industry. In 2018, Everbright International participated in the composition Case We turn sewage into clean water and set up a model of sewage treatment of industrial standards such as Biochemical Waste Evaluation Standard and Specifications for Municipal Solid Waste Incineration Power Plant Operation Index and Evaluation. We actively contributed wisdom and effort to the sustainable and healthy development of the waste disposal industry. The XinYi Economic Development Zone Sewage Treatment Project of Everbright Water is a sewage treatment plant with a daily treatment capacity of 20,000 tons. The plant Case We deepen our research and accumulate new power for development is mainly responsible for the treatment of comprehensive chemical waste water, and the sewage effluent quality is subject to the Level I Standard A of Discharge Standard of Everbright Group deepened research in the ecological and environmental protection and subdivided fields such as waste- Pollutants for Municipal Waste water Treatment Plant (GB to-power, sewage treatment, biomass utilization, hazardous waste treatment, atmospheric monitoring and soil remediation. 18918-2002). The project use virtue of advanced sewage We collaborated with other parties to jointly improve the level of technology research and development in the environmental treatment technology and process with independent protection industry. Everbright International deepened its strategic cooperation with Zhejiang University. The two parties jointly intellectual property rights and customized sewage established the National Engineering Laboratory of Waste Incineration Technology & Equipment and cooperated on ultra-low control measures. The control measures include “One emission of flue gas from waste incineration and optimization of computational fluid dynamics (CFD) application of biomass Enterprise, One Evaluation”, “One Enterprise, One Price”, furnace. While precisely meeting the needs of ecological and environmental protection, the two parties had accumulated new “One Enterprise, One Pipe” and “Staggered Drainage”, energy for the future development of the environmental protection industry. as well as typical pricing and charging mode of sewage treatment. Because of that, the project has become a model and demonstration of sewage treatment mechanism. XinYi Sewage Treatment Project of Everbright Water This project was one of the provincial water treatment Waste-To-Power demonstration projects in Jiangsu in 2017. Meanwhile, it had been awarded as Typical Cases of Third-party Based on our own technical advantages, we use advanced technologies such as fire grate, flue gas cleaning system and Treatment of Environmental Pollution in Industrial Parks in third-generation leachate treatment in waste-to-power projects to ensure the stable operation and up-to-standard discharge of 2017 by Ministry of Ecology and Environment and compiled into the Compilation of Typical Cases of Third-party waste-to-power projects. We constantly improve the standards and increase the profit of waste-to-power projects. By turning Treatment of Environmental Pollution in Industrial Parks. waste into energy, we are able to be benefited from its the social effect, environmental results and economic outcomes. In this case, the waste-to-power projects will be transformed from “NIMBY (Not In My Back Yard)” to “YIMBY (Yes In My Back Yard)”.

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Bio-toilet Green Finance The toilet is the one of the measures of human civilization. Bio-toilet refers to a kind of toilet that can make full use of various resources to effectively realize pollutant self-purification and resource recycling. We actively explore innovation on In compliance with China’s strategic concept of developing Green Finance and improving modern financial system, we technology, product and model in bio-toilet. We accelerate the “toilet revolution” to improve environmental sanitation, human direct financial resources to green and sustainable development projects. We support the development and growth of inhabitation, disease control, and waste recycling. energy conservation and environmental protection industry and promote the transformation and upgrading of China’s economic structure by innovating green financial products and services. Everbright Bank has established the guideline of the Green Credit Policy of China Everbright Bank, Guideline on Green Credit Extension Policy of China Everbright Bank and other stipulations, to promote green credit and improve investment policy as well as building green credit management framework. We have implemented the “one-vote negation system for green credit”, which means that we will Show ecological and Interpret reject all projects that fail to meet the requirements of environmental protection that may cause significant adverse impact environmental Internet+ in on the environment. We take the initiative to follow the trend of industrial restructuring and accelerate the withdrawal of protection operation credit for polluting processes and outdated capacity. in design management construction

Reflect radiate Derive linkage in Case We launched our first green bond to spur green impetus diversified industry industries agglomeration in business model Everbright Bank Hong Kong Branch launched the first green bond in 2018, successfully issuing three-year, USD 300 million green bond. The bond also made Everbright Bank the first joint- stock commercial bank that had issued green bonds overseas. By matching the green financing needs of mainland enterprises with the green investment needs of international investors, Everbright Bank Hong Kong Branch leads the flow of resources to the green and environmental protection industry, better serve the green development with financial strength, and support the Hongkong SAR Government to build a “global green finance hub”. Everbright Bank launches the first green bond

Case We lead the “toilet revolution wave” in response to the rural vitalization strategy

Drawing on global public health and facility standards, Everbright Industrial applied new concepts, processes, materials, technologies and equipment to bio-toilet. By integrating technologies such as renewable materials, sponge city, integrated Case We extend credit to circular economy and develop green energy sewage treatment, microbial self-decomposition and photocatalyst deodorization, we have realized ecological system integration. At present, we have completed the construction and improvement of multiple batches of bio-toilets in national famous tourist attractions of national level such as Mount Lao, Mount Wutai and Mount Huang, as well as urban areas such Biomass straw cannot be treated on a large scale. The straw incineration will easily pollute the environment and it is difficult to as in Beijing, Xi’an, Shenzhen, Chengdu, Bijie and Mianyang. prevent incineration. It was one of the long-term problems hindering environmental governance in rural areas. Mianzhu City, Sichuan Province is a major agricultural city that had similar problems. In order to reduce the cost of straw treatment, local Everbright Industrial actively responds to the national rural vitalization strategy, promotes the construction of bio-toilets in rural farmers often treat straw by incineration, which leads to “fire in every village, smoke everywhere, straw everywhere and flue areas, and explores rural sewage treatment business. In Guzhang County, Hunan Province, we customized the design of bio- gas everywhere” situation, causing great harm to the environment. toilets according to the actual situation, and installed sewage treatment equipment simultaneously to create a comprehensive demonstration project of sewage treatment and bio-toilet integration. In the rural areas of Lankao County, Henan Province, we Everbright Bank Chengdu Branch extended credit to Mianzhu Biomass Power Generation Project. We invested a total of planned the systematic solution of “Rural sewage treatment + bio-toilet”, carried out centralized treatment of rural sewage, and RMB 340 million to generate biomass power with straw as the raw material. The installed capacity of the project unit now is solved the problem of decentralized sewage sources such as rural areas and rural tourist spots. Meanwhile, we actively built 30MW, and the annual consumption of biomass straw is about 248,800 tons, which has substantially reduced the amount of fabricated toilets in beautiful villages. At that point, toilets were no longer dependent on municipal conditions through various straw incineration in this area. The action effectively alleviated air pollution and made the rural sky bluer. ecological treatment technologies.

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We actively played a role in finance in properly allocating resources. At the same time, we promoted the development of Green Finance by carrying out innovative Green Finance product projects and serving the personalized green financing needs of enterprises.

We helped China Three Gorges Corporation publicly issue green Case exchangeable bonds

In 2018, with the support and guidance of green bond policies issued by the People’s Bank of China, China Securities Regulatory Commission, Shanghai Stock Exchange and Shenzhen Stock Exchange, Everbright Securities, as the co-lead underwriter, helped China Three Gorges Corporation publicly issue green exchangeable bonds with a quota of RMB 20 billion. The funds raised from the bonds were mainly used for the construction of the Wudongde Hydropower Station and Baihetan Everbright International holds a campaign themed “Water: in the Future” on world water day Hydropower Station, which conforms to the requirements of the Notice on the Pilot Program of Green Corporate Bonds issued by Shanghai Stock Exchange and the Catalogue of Green Bond Support Projects (2015 Edition) issued by the Green Finance Committee of China Society for Finance & Banking. This issue had played a positive role in supporting the improvement of domestic environmental benefits and promoting green development. Green Public Welfare

We guide employees to enhance the awareness of environmental protection. We transform the concept of environmental protection into action, contribute our own strength for ecological and environmental protection, and build green homeland.

Case We issued RMB 800 million panda bonds to support green industrial projects Case We open environmental protection facilities to the public to deliver green values Everbright Water, an environmental protection group focusing on comprehensive water environment treatment, issued RMB 800mn corporate bonds and panda bonds, to qualified domestic investors in August 2018. Part of the funds raised in this issue With the deepening of the prevention and control of pollution, the construction of urban environmental protection infrastructure of panda bond variety were used for green projects in line with the Green Bond Support Project (2015 Edition) compiled by such as waste incineration plant was increasing. However, “NIMBY effect” still existed in some waste-to-power projects. In order the Green Finance Committee of China Society for Finance & Banking, to facilitate the development of energy conservation to enhance the public’s awareness and understanding of environmental protection facilities, in 2018, Everbright International and environmental protection industry. announced to take the lead in opening 77 environmental protection facilities in business areas such as waste-to-power, sewage treatment, hazardous waste disposal and biomass power generation. We showed environmental protection facilities to residents, students and government departments, and introduced relevant knowledge of environmental protection to guide the public to enhance their awareness of environmental protection and encourage more public to live in a green lifestyle.

The opening of environmental protection facilities to the public promotes the sustainable and healthy development of enterprises. Making these facilities operated under public supervision helps enterprises fully implement the entity responsibility of environmental protection, and further improve the level of environmental management. Green Operation -- Mr. Zhuang Guotai, Deputy Minister of Ministry of Ecology and Environment

We integrate the concept of green environmental protection into the operation of the enterprise. While continuing to promote our own low-carbon development, we advocate the green and low-carbon work and life style for our employees and encourage them to participate in various environmental protection activities. Case We make Golden Coast cleaner

In order to protect the environment of the coastline and create a cleaner and more beautiful Hong Green Office Kong, on the eve of Labor Day of May 1st, nearly 100 employees and their family members from We pay attention to low-carbon and environmental protection in business details, and promote green office and green seven subsidiaries of Everbright Group in Hong Kong gathered at Tuen Mun Golden Coast, Hong travel to reduce the negative impact of our operation on the environment. By implementing OA and launching “Everbright Kong to participate in the “Everbright Hong Kong e-information” digital office platform, we help more employees achieve mobile internet access and reduce the delivery of Coast Environmental Protection Day 2018” public paper documents. By advocating paper reuse, we reduce paper consumption. We encourage employees to participate welfare activity. All volunteers recycled dozens of in waste recovery program and collect recyclable waste such as waste paper by setting up waste recovery facilities. We kilograms of coastline waste such as plastic bags and drinking bottles through practical action and live carry out actions to save electricity and water and put up environmental protection signs to encourage employees to “Everbright Hong Kong Coast Environmental Protection Day 2018” green lifestyles. reduce energy consumption, and vigorously promote environmental protection in the World Water Day of March 22nd and public welfare activity the Earth Day of April 22nd.

58 59 Increasing Vitality and Gathering Energy

Building a world-class enterprise requires a dynamic team, mechanism and culture. We protect the rights and interests of employees, improve the salaries and benefi- cial system, and care about employees’ health and safety condition. We motivate employees’ vitality, build a plat- form for ability improvement and career development, and help them realize their own individual value. We promote Everbright culture and get everyone together to build warm atmosphere together.

Rights Protection Vitality Motivation Culture Promotion China Everbright Group | Everbright, forever Corporate Social Responsibility Report 2018

Rights Protection Vitality Motivation

We obey the Labor Law of the People’s Republic of China, the Labor Contract Law of the People’s Republic of China Talent is one of the core competitiveness of an enterprise. We strive to motivate the vitality of employees, provide and other relevant laws and regulations. We follow the principle of equal employment, treat employees of different ethnic good conditions and policy guarantee for their career development and self-worth realization to realize the common groups, gender and cultural background fairly. Also, we do not bare gender inequality. We prohibit the use of child labor development of Everbright Group and the employees. and resist all forms of forced and compulsory labor. In 2018, Everbright had a total of 90,880 employees. Capacity Building

Age breakdown Educational background Gender breakdown According to the talent cultivation concept of classified cultivation, dual-core drive and sound mechanism, we implement “Leading personnel plan”, “Voyage boosting plan” and “Elite incubation plan” for employees with different levels and 0.40% needs to enhance the pertinence and effectiveness of staff training. We build Everbright University as the school involves 21.70% 10.92% 13.02% 10.95% teaching knowledge of the Party and corporate university of Everbright Group to cultivate first-class talent team. We set up an online training platform to improve training efficiency and motivate employees to participate in training. 20.26%

50.78% 49.22% We provide senior managers with training from superior unit, training on Party spirit, 14.49% 27.25% overseas training and online training to help them with personal development. In 2018, 27 persons of leading cadres were organized to attend the “one university and six schools” training courses. 25 people were selected and attend the “new era, new responsibilities and new actions” party spirit cultivation training courses. 55.37% 25.64% We provide young and middle-aged leaderships with training on Party spirit, business training, strategy and risk training to help them study the guiding Below 25 (excluding) years of age Lower than junior college (excluding) Male Female Leading principles of the 19th CPC National Congress. Also, we provide these personnel plan opportunities to help them deepen the thoughts about financial innovation 25-29 years of age Junior college and industry-finance cooperation and improve their ability to interpret and 30-34 years of age Bachelor’s degree implement the strategy of Everbright Group. In 2018, four sessions of 35-39 years of age Master’s degree “Everbright Group strategic seminar” and “Everbright Group comprehensive risk management and legal risk prevention training course” were held, with Above 40 years of age Doctor’s degree Voyage boosting plan more than 700 participants attended.

We focus on cultivating the innovation capacity of outstanding employees. By selecting and transferring key employees to attend training on financial innovation, cultivation of innovative thinking, Elite incubation plan big data, artificial intelligence, operation mode and operation of Salaries and Benefits industry-finance cooperation and financial analysis, we improve their innovation ability, update their knowledge and provide We continue improving the salaries and benefits management system, improve the welfare guarantee of employees, intellectual support for them to promote the development of innovative services with innovative thinking in their future work. and strive to provide competitive salaries. We pay salaries on time and pay “Five Insurances and One Housing Fund” in full for our employees. We guarantee that our employees can enjoy annual vacation, sick leave, marriage leave, Career Development parental leave and other holidays according to national schedules. In 2018, Everbright Group’s social Insurance coverage of employees was 100%. Following the correct Human Resources guidance, we establish the concept of “Advocating first-class, pursuing excellence” and “One should do concerned with the title to the most of one's capacity”. We gradually improve the fair and open mechanism for employment, innovate recruitment model, optimize the employee career development channel, provide career development Healthcare and Safety opportunities for employees, and strive to build a loyal, clean and responsible talent team in Everbright Group. We set up Everbright Recruitment called Talent Pavilion to enliven the We attach importance to the healthcare and safety of employees, and require subsidiaries to carry out occupational Case wellbeing management of employees according to their own business characteristics, so as to minimize safety risks. “water of talent”

We focus on improving employees’ safety awareness and emergency disposal capacity, carrying out various safety In order to better select and cultivate talents, Everbright Bank launched the Everbright Recruitment plan named Talent education and training to protect employees’ safety. In 2018, Everbright Group’s physical examination coverage of Pavilion to build a comprehensive talent selection platform, broaden the channels for employment, as well as promoting employees was 100%. horizontal and vertical exchanges of talents at all levels and among people with all majors. In 2018, Everbright Recruitment held four sessions of activities recruiting 58 people within the system and 19 people from outside of the company.

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Culture Promotion Case We fixed August 18 as “Everbright Day”, a festival for all Everbrighters On August 18th, 1983, as the pioneer of China’s reform of economic system and the window of opening-up, We inherit our good tradition of forging forward, reforming and innovating. We march forward with the era and pursue Everbright Group was established and officially operated integrated development as well as endowing Everbright culture with new connotation. Guided by Everbright culture, we in Hong Kong. That’s the first step of our development. On inspire all Everbrighters to make unremitting efforts and move forward with determination. the occasion of the 35th birthday of Everbright Group and the 40th anniversary of China’s reform and opening-up, we set August 18th as “Everbright Day” with the aim to inherit our good tradition of forging forward and keeping on reform and innovation. We set a role model and carry forward Culture Cultivation Everbright spirit in the new era. “Everbright Day” Launching Ceremony and Prize-giving Activity In the journey of building a world-class enterprise, we strive to cultivate a “culture of homeland, sunshine, pro-mercantilism and sense of responsibility”. We enhance the cohesion between the company and our employees, inspire their enthusiasm for entrepreneurship, strengthen their confidence in achieving strategic target and create a harmonious and a win-win atmosphere. Setting Role Models

Our achievements in development are inseparable from the hard work of generations of Everbrighters. We vigorously We create a great atmosphere in We elevate Everbrighters’ demeanor Everbright Group for every employee to Cultivating Cultivating carried forward the spirit of model workers and encouraged employees to make contributions to the company. We and construct sunshine ecosphere grow up and to pursue dreams. Everbright homeland sunshine encouraged employees to follow the national financial strategy and deepened the reform of Everbright Group through through promoting mutual appreciation can also be a harbor for employees culture culture and tolerance within the company to innovation and practical exploration. In recent years, a number of advanced collectives and individuals have emerged to rest in. With the concept of “One provide strong support for Everbright in Everbright Group. In 2018, Everbright Bank Nanjing Branch Changzhou Sub-branch was awarded the National May Everbright”, we build one warm home for Group to meet new challenges. 1st Labor Award. Incineration Technology Institute of Everbright Environmental Protection Technology Research Institute all of our employees. (Nanjing) Co., Ltd., as well as Everbright Bank Hohhot Branch Daxuedongjie Sub-branch were awarded the Pioneer of Cultivating National Workers, two units including Everbright Bank Haikou Branch were awarded the National May 1st Labor Award for Everbright Finance. Also, six employees including Xue Xiaohua were awarded the National May 1st Labor Medal for Finance. At the culture same time, three collectives including Everbright Securities Wuxi Finance No.1 Street Security Exchange were awarded the National Financial Pioneer. We promote the development of the We carry forward the enterprise spirit enterprise with modern commercial of pursuing greatness and excellence, civilization and ethics, and make keep going forward, strive to create Everbright Group a more well-respected Cultivating Cultivating first-class enterprise with outstanding and trustworthy enterprise in the market pro-mercantilism sense of Everbright “Furnace Craftsman” interprets the spirit of craftsman with 10 years product and management. Case competition and cooperation. culture responsibility

Mr. Shao Zheru is the Chief Scientist of Everbright International, and the Director of the Incineration Institute of Everbright Research Institute. Also, he is the Professor of Engineering and UN Expert on waste incineration guidelines. In 2018, Mr. Shao was awarded the honorary title of National Model Worker in the Financial System and “Financial Craftsman”. Since 2008, Implanting Culture he has struggled to develop a garbage incinerator suitable for China. Under his leadership, Everbright International has developed from relying on imported incinerator technology We implement the Corporate Culture Work Program of Everbright Group, carry out various to independently developing incinerator technology, and has corporate culture initiatives, and strive to have all employees participated in building corporate achieved the transformation from being a follower to a leader in Mr. Shao Zheru is working culture. We hold “Striding into new era and carrying forward new culture” and relevant activities, Asia and even in the world. establish corporate culture publicity carriers such as WeChat official accounts “Everbright Future” and “Everbright e-Home”. At the same time, we build a platform for employees to participate in the I like the title of Everbright 'Furnace Craftsman'. I want to develop incinerators for Everbright all my life. I will never be bored of it and never regret about it. I am lucky to earn the title of Financial Craftsman, which means Everbright Future construction of corporate culture, and deeply implant Everbright culture into every employee. In greater responsibility for me. 2018, the WeChat official account “Everbright Future” won the New Media Promotion Annual Case -- Mr. Shao Zheru, Everbright ‘Furnace Craftsman’ Award in both of the Annual Brand Case Competition of China Finance and the Chinese Enterprise New Media Originality Award in the Chinese Enterprise New Media Annual Conference.

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Co-building Homeland Case We held New Year Tea Gathering and unveiled the Activity Center for Retired Cadres

We respect and care every employee. By organizing various recreational and sports activities, we help employees balance In February 2018, as the Chinese Lunar Spring Festival approached, the work and life and help them increase their sense of belonging and maximize their happiness and satisfaction. We take the Chairman Li Xiaopeng came to the Everbright Building to attend the initiative to listen to the opinions of employees, take their requirements into consideration and adopt various measures to solve New Year Tea Gathering for Veteran Cadres of the Headquarters and their problems. We care for employees in need as well as female employees, and set up “care for seniors”, “care for excellence” the Unveiling Ceremony of the Activity Center for Retired Cadres. and “care for Everbrighters” for retired veteran cadres. Meanwhile he extended his greetings to all retired cadres. Everbright Group continues improving the service for veteran cadres. We are grateful for the veteran cadres who made contributions to the development of Everbright Group at different stages. We develop a special bond with them, and understand, appreciate, care and tolerate The Activity Center for Retired Cadres of Everbright them as family members. Group is unveiled

Offering Suggestions

By the end of 2018, We pay close attention to the democratic management of employees, and we constantly Everbright Group provide employees with communication channels to listen to their opinions. We build our home with sincerity. In 2018, we carried out activities with the theme of “thinking about reform, had received nearly The Fourteenth Sports Games of Subsidiaries of Everbright Group in Hong Kong discussing innovation and promoting development”. We collected opinions and suggestions 40,000 from employees at different levels regarding topics such as strengthening Party Building of state-owned enterprises, serving the Real economy, building a world-class financial holdings pieces of advice group with global competitiveness, and cultivating advantages in industry-finance cooperation. and suggestions By listening to our employees, we also encourage employees to participate in enterprise from employees in construction. Chairman Li Xiaopeng Work WeChat account and Suggestion Email box have this activity become communication and exchanges platforms for leaderships of Everbright Group with junior management and employees. By the end of 2018, Everbright Group had received nearly 40,000 pieces of advice from employees in this activity. More than 200 special reports were drew up and nearly 4,000 valuable advice and suggestions were sorted out.

“One Everbright, Forward Hand in Hand” The Everbright Sports Festival Flower Arranging Activity for female employees on the eve of the Launching Ceremony and Healthy Hiking Activity International Women’s Day

We launched Autumn Case Scholarships to precisely assist employees in need On September 16th, 2018, Everbright Group held its first “Autumn Scholarships” and Condolence Activity for employees in need in Shanghai Everbright Convention & Exhibition Center. “Autumn Scholarships” activity was another precise assistance activity carried out by Everbright Group after the “Cool Summer” activity. The targets were mainly employees from Everbright Group who were in financial distress due to the long- term serious illness of either themselves or their family members. Therefore, they had difficulty in supporting their children to be educated in high schools, colleges The first “Everbright Cup” Men’s Basketball Game of Everbright Group and universities. A total of 10 employees had been assisted by Everbright Group’s Autumn Scholarships activity in 2018.

Mr. Li Xiaopeng, Chairman of Everbright Group, communicated and exchanged with employees

66 67 Uniting in a Concerted Effort and Pursing for a Joint Development

Win-win cooperation will ensure steady and long-term progress. We accelerate the developing paces of strategi- cal cooperation and achieve mutual benefits with our part- ners. We support overseas joint construction and share achievements in operating countries. We adhere to peace- ful co-existence and pay attention to the coordinated co-ex- istence of the enterprise and the society.

Win-win Cooperation Overseas Joint Construction Peaceful Co-existence China Everbright Group | Everbright, forever Corporate Social Responsibility Report 2018

Win-win Cooperation Industrial and comprehensive enterprises

Following the concept of opening-up and cooperation, we select the suitable fields and directions and actively carry out Everbright Group established strategic partnerships with exchanges and cooperation with various stakeholders. We work with various partners in the society to create shared central state-owned enterprises such as CNOOC, State Power value together, and jointly promote industrial progress, and economic and social development. Investment Corporation, Dongfeng Corporation, China Baowu, Aluminum Corporation of China, China Merchants Group, China National Travel Service Group and COMAC. Also, we established strategic partnerships with local state-owned Strategic Cooperation enterprises such as Shenzhen Metro and Beijing Tourism Group, private enterprises such as JD, BYD, Wanxiang We utilize our advantages in massive resources, advanced technologies and talents network, and actively communicate Group and Tencent. Furthermore, we established strategic and cooperate with departments of the government, various enterprises, educational institutions and trade organizations partnerships with overseas enterprises such as DUBAI HOLDING and MIRAAS HOLDING. All the parties make Everbright Group and COMAC signed a to build strategic cooperation platforms. We expand the scope and depth of cooperation and strive to create value and strategic cooperation agreement full use of their respective advantages to carry out strategic share results with strategic partners. The Group held talks and signed contracts with 77 strategic customers in 2018. cooperation in business areas including financial service, environmental protection industry and international business.

Local governments Trade organization

Everbright Group has established strategic Everbright Group has established strategic partnerships with local governments of partnerships with trade organizations such as China Beijing, Shanghai, Tianjin, Guangdong, Mergers & Acquisitions Association and China Zhejiang, Sichuan, Inner Mongolia, Nanjing, Tourism Association. All the trade organizations Qingdao and Sanya to boost local economic establish a long-term mechanism for cooperation and social development. The cooperation and development in response to national strategies was centering on key areas such as financial and the matchmaking of superior resources to industries, the Real economy and local jointly realize business model innovation and

development plan. Everbright Group and Sichuan Provincial People’s sustainable development. Government signed a strategic cooperation agreement

Everbright Group signed a strategic cooperation agreement with China Tourism Association and Beijing Tourism Group

Cultural and educational institutions Financial enterprises

Everbright Group has established strategic partnership with Everbright Group has established strategic financial enterprises such as China Development Bank, The partnerships with cultural and educational Export-Import Bank of China, Industrial and Commercial institutions such as the Palace Museum, Song Bank of China, China Life Insurance, China Pacific Insurance, Chingling Experience Center and Peking China Oriental, China UnionPay, CR Capital and Ant University. All the educational institutions utilize Financial. All the financial enterprises make full use of their their respective resources and professional respective advantages to carry out cooperation in specific advantages, work closely with each other business areas so as to enhance bilateral competitiveness in the fields of industry-university-research- finance, customer and channel resources, and and influence in the financial market and realize resource Everbright Group and Industrial and Commercial Bank Everbright Group and Peking University signed sharing and common development. of China signed a strategic cooperation agreement strive for common development. a strategic cooperation intention

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Promoting Industry Development Overseas Joint Construction We actively organize and participate in industry activities, create a platform for industry interaction and exchanges. We also promote to share industrial experience and achievements to facilitate the healthy and sustainable development. In line with national strategic deployment of “Going Global”, we explore an international layout, and formulate effective strategies and programs to promote the planned development decision of overseas institutions. We improve overall management process, establish overseas institutions and related services to focus on building an integrative product and service system that covers the major services of Everbright Group both at home and abroad. In this case, we are able to form a comprehensive industry-finance Case China CYTS Tours Holding Alliance stands for quality tourism services ecosystem with Everbright characteristics and better serve our customers as well as national strategies. In terms of overseas operation, we take the initiative to integrate into the development of local countries, cooperate with overseas partners and take on Founded in 2002, CYTS Alliance develops its members with the thought of diversification, whole industrial chain and tourism ecosphere. At present, the Alliance the responsibility as a global citizen. has a total of 91 alliance members, covering all provincial administrative regions in China and four continents of Asia, Europe, America and Australia. CYTS Alliance sets up the Alliance Convention, utilizing the collaborative advantages between China CYTS Tours Holding and partners to promote the intensive and network Driving the development Cultivating overseas Practicing overseas operation of tourism enterprises. It also improves the management level of tourism of countries where the enterprises, and provides customers with better tourism services to build a high- talents community public welfare organization operates quality alliance in tourism industry.

We use our advantages in owning We actively promote recruitment of We actively participate in the diversified industries to promote the overseas employees in local market to community co-construction activities optimal allocation of resources on a cultivate local talents in local countries, and share the global scale achievements in development with local communities Everbright-Guanghua Financial Holdings Forum facilitates high-quality Case development of financial holdings group

In order to build a financial holdings research platform with the joint participation of government, enterprises, universities and research institutions, Everbright Group and Peking University's Guanghua School of Management jointly held the First Everbright-Guanghua Financial Holding Forum on November 24, 2018, on topics of how to leverage the advantages of financial holdings group to serve the Real economy, to build the competitiveness of financial holdings group in the global financial sector and to facilitate the high-quality economic development of China. The Forum focused on the research on economic and financial policies, as well as development Everbright Group initiated the construction of China-Africa tourism trade ecosphere at the Sixth Conference of Chinese and African Entrepreneurs in 2018 of financial holdings group, industry-finance cooperation and other fields. It timely reflected and exported high-quality research results and practical experience to contribute wisdom Case We increase the local employment rate of overseas enterprises to further explore the path of financial holdings development The First Everbright-Guanghua Financial Holdings Forum with Chinese characteristics which facilitated national financial and economic development. Everbright Bank Luxembourg Branch promoted localized operation, expanded the recruitment of local employees, and recruited employees from a list of unemployed people who were recommended by the Ministry of Labor of Luxembourg. In this way, we were able to ease the employment pressure of Luxembourg and promoted social harmony. By the end of 2018, Everbright Bank Luxembourg Branch have recruited 30 employees from 9 countries and regions including Luxembourg and Singapore. In 2018, 92.1% of Everbright Bank’s overseas employees were locally recruited.

We participated in the “Seoul • China Day” event to fulfill our responsibility Case of financial inclusion

“Seoul • China Day” was an important cultural exchange event to carry out people-to-people exchanges and enhance the friendship of people from the two countries. During the “Seoul • China Day” event in 2018, together with local institutions of five Chinese-funded banks, namely ICBC, ABC, BOC, CCB and BOCOM, through introducing financial knowledge and answering questions about financial services. Everbright Bank Seoul Branch made more South Koreans get a better understanding and enjoyment of the convenient and safe financial services provided by Chinese-funded banks.

72 73 China Everbright Group | Everbright, forever Corporate Social Responsibility Report 2018

Peaceful Co-existence Case Public welfare research summer camp helped children learn about distant cities

On the occasion of the 69th International Children’s Day, China CYTS We care about the issues related to people’s livelihood and actively carry out activities such as charity and volunteer Tours Holding held the “Learning About Distant Cities · Public Welfare services to improve social well-being and happiness. Research Summer Camp” event in Xinhua County, Guzhang County and Xintian County of Hunan Province. The event was consisted with 46 participants including faculty members and students. During the event, China CYTS Tours Holding organized students to visit the Forbidden City, Great Wall, National Stadium, Water Cube and other sc Charity enic spots and historical sites and new landmarks. The students went to the Quintessence Space of Song Chingling Experience Center to We carry out diversified public charity activities. Though donation and public welfare projects, we have devoted ourselves to make woodwork and tie-dying works. The students were also invited to rewarding the society and improving people’s livelihood. participate in the little banker innovation occupational experience course in Everbright Bank Financial Street Sub-branch. The public welfare “Learning About Distant Cities · Public Welfare Research Summer Camp” event research summer camp has effectively help broadening children’s horizons and motivated them to study hard to fight for poverty.

Case Water Cellar for Mother program nourishes thousands of families

In 2018, For the residents in the arid areas in Western China, problems such as long-time water intake and Voluntary Service Everbright Bank unguaranteed water quality have been standing out for quite a long time. Everbright Bank has been supporting the Water Cellar for Mother public welfare program of China Development Research Foundation for 14 years We encourage our employees to participate in various voluntary activities, closely combine voluntary services with the donated RMB since 2005. The program is aiming to alleviate the water consumption problems for residents in the arid areas in provinces and regions of Western China, including Gansu, Ningxia, Inner Mongolia, Shaanxi, Guangxi, development of the enterprise, constantly explore new directions for the development of public welfare to deliver positive Sichuan, Qinghai, Tibet, Guizhou, Xinjiang, Jilin and Shanxi. Water Cellar for Mother program could not only energy of Everbright. 3 million alleviate the drinking water difficulty for residents but also ensured its safety. It made a new look of their living to the Water Cellar environment and spiritual outlook. By the end of 2018, Everbright Bank had donated 8,593 water cellars, 83 for Mother public small water conservancy projects and 7 safe drinking water programs on campus. Case We launched a coin culture tour for the visually impaired people welfare program.

In cooperation with Everbright Bank and Beijing Hongdandan Education and Culture Exchange Center, China CYTS Tours Holding held a Public Welfare Program of the 8th Visually Impaired People Tour Group named “Listen · Tour of Coin” in Beijing Ancient Coins Museum. With the one-on-one companion of volunteers, 19 visually impaired people were taken to a unique coin culture tour. During the tour, they learned about finance and the history of ancient coins. Case We celebrated our founding anniversary with a charity auction

I did not know what kind of services the bank would CEB International held a charity auction on provide for the visual-impaired, and I barely had the their second founding anniversary. At the opportunity to personally listen to the introduction by auction, each item was donated voluntarily bank’s professionals on money management. Today, I by our employees. All the items donated with learned about it, and also learned to count the money and ingenuity and sincerity attracted competitive I found that it is not a easy job to count the money! bids from those kind-hearted participants. The The 8th Visually Impaired People Tour Group Public Welfare -- A participant of the 8th Visually Impaired People Program named “Listen · Tour of Coin” campaign raised a total of RMB 45,000, all of Tour Group Public Welfare Program which were donated to the Lifeline Express public welfare program to bring eyesight and hope to cataract patients in poverty.

Case We practiced volunteerism and carried out “Mangkhut” disaster relief

Liaison Office of the Central People’s Government in the Hong Kong S.A.R., Office of the Commissioner of the Ministry of Foreign Affairs of the People’s Republic of China in the Hong Kong S.A.R, Chinese people’s Liberation Army troops stationed Second anniversary charity auction of CEB International in Hong Kong, and some other Chinese enterprises in Hong Kong jointly held an event called “Labor is most glorious and volunteers take actions”. In response to the event, on October 13rd, 2018, Everbright Bank Hong Kong Branch cleared roadblocks and debris on the road that caused by Typhoon Mangkhut, and successfully completed the clearance of 65 severely damaged sites along the 100km of MacLehose Trail from Pak Tam Chung to Tuen Mun.

74 75 China Everbright Group | Everbright, forever Corporate Social Responsibility Report 2018

Responsibility, A More Beautiful Future

Continue Strengthen Promote Strengthen Increase Realize enforcing scientific and merger and E-SBU capital personal World-class enterprises should take first-class social responsibilities on their shoulders. headquarters technological reorganization construction contribution value construction support We designated the year 2019 as the “Year of Value Creation” of Everbright Group. With valuable words, valuable operation and valuable enterprise in mind, we will make great efforts to create greater value for the customers, society, shareholders, employees and other stakeholders.

Subsidiaries CSR Fulfillment Commitment in 2019 Subsidiaries CSR Fulfillment Commitment in 2019

China Everbright Bank Continuing innovating financial products, improving service level, reducing financing costs, and China Youth Industrial Searching for the precise entry point and devoting ourselves to the inclusive healthcare industry Company Limited creating greater value for the society. Development Corporation to jointly realize the Chinese dream of health.

Making our contribution to build a digital and smart China with the innovative and fighting spirit Fully utilizing the basic functions of the capital market and making flexible use of a variety of China Everbright of Everbright Technology people. Actively fulfilling our social responsibility for scientific and financial instruments, such as the science and technology innovation board and green financial Technology Limited technological innovation, and striving to build a better life and promoting the development of Everbright Securities bonds, to practically serve the development of the Real economy. Continuing to devote inclusive finance and national technological innovation strategy. Company Limited ourselves to the poverty alleviation projects in 11 places of seven provinces, implementing Focusing on our main business, implementing prudent operation, and gathering strength more than 30 poverty alleviation projects throughout the year, and playing a greater role in Everbright Jin’ou Asset to improve value creation and core competitiveness. Comprehensively strengthening Party winning the battle against poverty. Management Limited Building and strive to become a first-class AMC.

Committed to becoming the most trustworthy and favorite insurance company of our customers. Adhering to the brand concept of “accompanying you with heart and soul”, to be a provider of Sun Life Everbright Life Continuing to explore more efficient and preciser insurance poverty alleviation and providing China CYTS Tours quality life for customers. On the way to build a global leading comprehensive tourism service Insurance Co., Ltd. more distinctive and valuable insurance products to ensure a better life for customers. Holding Co. provider, striving to achieve good results, stepping to a new height with all our strength, and to be a dream-maker keeping pace with the times.

Everbright Financial Holding Bearing our social responsibility and glorious mission, paving the way to find new impetus, Continuing accepting the supervision from all different circles of the society with more energetic working Asset Management Co., Ltd. creating new highlights and initiating new development. attitude and pragmatic and sincere enthusiasm. On the one hand, we will seize the development opportunities brought by the medical reform, improve our management, and expand the scale of the Cachet Pharmaceutical Everbright Xinglong Constantly utilizing to our unique advantages of intrust system and actively devoting ourselves enterprise. On the other hand, we will continuously improve the CSR management system, explore Co., Ltd. Trust Co., Ltd. to charity. Striving to initiate 30 charitable trust projects with a scale of RMB 30 million in 2019. effective measures to fulfill CSR, strengthen the communication and exchange with partners and other stakeholders. Furthermore, we will promote the company to better fulfill CSR and support public welfare Continuously committed to creating “blue sky, white clouds, green water and green mountains” and realize the harmonious development of the enterprise itself and the whole society. to make life more beautiful! Striving to build 100 bio-toilets (including design consultation and China Everbright Industrial (Group) Promoting the development of cultural innovation industries, optimizing the business structural construction equipment) in municipal scenic spots as well as 1,000 rural household toilets in 2019. Company Limited Everbright Culture layout, and building a modern cultural and creative industrial system. We will fulfill the In this case,we can contribute to the construction of beautiful villages! Striving to build 16 sticky solid Investment Limited responsibilities of central state-owned enterprises centering on the Group’s development strategy, waste environmental protection projects to make greater contributions for environmental protection. and implement the inclusive measures of cultural innovated finance.

By rooting and adapting in Hong Kong market and serving Hong Kong, fulfilling our mission and As a cross-border asset management and investment company based in Hong Kong, committed to responsibility. Participating in the construction of the Canton-Hong Kong-Macao Greater Bay Area, support and sponsor public welfare plans that are beneficial to the development of Hong Kong and China Everbright Holdings China Everbright Limited supporting the SAR Government in governing Hong Kong in accordance with the law, supporting the country by virtue of our unique characteristics and geographical advantages, with the purpose to Company Limited Hong Kong in economy growth and improving people’s livelihood. Supporting Hong Kong in achieving contribute to social harmony. greater development and better serving for the long-term prosperity and stability of Hong Kong. With the corporate mission of “protecting the ecological environment and building a beautiful China”, we aim to create a better investment value and bear more social responsibility on our Continuing strengthening management, enhancing risk prevention, taking the opportunity of China Everbright shoulder. With responsibility, strength, efficiency and vitality of this central state-owned enterprise, China Youth Travel Group restructuring and strategic positioning to establish the modern corporate governance mechanism. International Limited we will maintain the strong growth momentum in 2018, give play to our strong advantages in scale, quality, technology and brand, reform and upgrade. We will continue making innovation and strive to become a leading ecological enterprise in the world.

76 77 76 China Everbright Group | Everbright, forever Corporate Social Responsibility Report 2018

Expert Opinions Report Index

I am very glad to be invited to pre-read the China Everbright Group’s Corporate Social Responsibility Report of 2018 and Chapter GRI Standard SDGs make comments on it! The year 2018 marks the 35th anniversary of Everbright Group. This report is not only the result Benchmarking Benchmarking 102-45/102-46/102-48/102- of 35-year development of Everbright Group with responsibilities, but also the outstanding achievements of Everbright About the Report / 50/102-52/102-53/102-54 Group in 2018. This report is considered as a breakthrough and a successful attempt for Everbright Group to innovatively Sincere Greetings 102-14 / communicate with all circles of the society. Through this report, we could see Everbright Group’s determination and motivation to pursue high-quality self-development, as well as to promote sustainable development of the whole society with About Everbright 102-18/102-22 / 102-1/102-2/102-3/102-4/ an open and inclusive mind. About Everbright - Corporate Strategy SDG12 SDG16 102-5/ 102-6/ 102-7/ 102-15 After reading through the report carefully, I am impressed, and I want to highlight three aspects from the report as following: About Everbright - Corporate Governance 103-1/103-2 SDG10 SDG16 102-16/102-17/102-40/102- Distinct reporting frameworks. In this report, there are seven chapters as the main content of the report which are derivative About Everbright - Responsibility Management 41/102-42/102-43/102- SDG12 SDG16 47/103-1/103-2/103-3 from Everbright Group’s “Eight First-class” value. The content not only covers the three dimensions of economic, social and Focusing on Responsibility - Remaining True to the Original Aspiration and Go Ahead Bravely 203-1/203-2 SDG8 SDG9 SDG10 environmental responsibilities, but also includes stakeholders such as government, shareholders, customers, employees, SDG1 SDG3 SDG4 SDG8 Focusing on Responsibility - Boosting Poverty Alleviation for a Moderately Prosperous Society 203-1/203-2 community, environment, partners and other related parties. Its distinctive content classification is naturally and perfectly done. SDG9 SDG10 The seven chapter titles are the following: “Showing aspiration”, “Establishing Reputation”, “Focusing on Innovation”, “Holding Showing Aspiration with Great Ambition - Leadership of Party Building 103-1/103-2 SDG1 SDG8 SDG9 SDG10 the Bottom Line”, “Building Beautiful Ecology”, “Increasing Vitality”, and “Uniting in a Concerted Effort”. All these chapter titles Showing Aspiration with Great Ambition - Mission Undertaken 203-1/203-2 SDG11 SDG17 are perfectly comprehensive, straightforward, reader-friendly and with rich content. Showing Aspiration with Great Ambition - Open Development 203-1/203-2

Distinctive responsibility model. The “Sunshine” Responsibility Model was introduced for the first time in this report, and Establishing Public Reputation and Building Brand Image - Financial Sector 103-1/103-2/203-1/203-2 the name of the model directly echoes by the organization’s corporate vision “China Everbright, Better Life”. The connotation Establishing Public Reputation and Building Brand Image - Industrial Sector 203-1/203-2 SDG3 SDG9 SDG12 of the model cleverly cites the “photosynthesis” in nature, which vividly and accurately interprets the way in which Everbright Establishing Public Reputation and Building Brand Image - Serving Brand 103-1/103-2/203-1/203-2

Group fulfills its social responsibility within their daily business operation. Everbright Group’s idea of associating its corporate Focusing on Innovation and Promoting Transformation - Technology and Innovation Management 103-1/103-2 value with both of the values of the times and individual value highlights the company’s vision and competency of “becoming Focusing on Innovation and Promoting Transformation - Innovation Practice 103-1/103-2 SDG8 SDG9 SDG12 a world-class financial holdings group with global competitiveness”. Focusing on Innovation and Promoting Transformation - Efficient Collaboration 103-1/103-2

Distinctive practice of responsibility. Everbright Group has moderately diversified businesses with the characteristic Guarding the Bottom Line and Risks Preventing - Strict Governance over the Party 205-1/205-2 of industry-finance cooperation. In this report, each chapter discloses a large number of practical cases of responsibility Guarding the Bottom Line and Risks Preventing - Compliance with Laws and Regulations 103-1/103-2 SDG10 SDG16 practices from institutions and industries like banking, securities, insurance, trust, asset management, inclusive healthcare, Guarding the Bottom Line and Risks Preventing - Prudent Operation 103-1/103-2 comprehensive tourism and integrated environmental protection. The content of the cases is comprehensive and rich. The Protecting Ecology and Beautifying Homeland - Green Industry 103-1/103-2 several of responsibility practices, including green finance, quality financial services, waste-to-power and bio-toilets, not only SDG6 SDG7 SDG11 SDG12 Protecting Ecology and Beautifying Homeland - Green Finance 103-1/103-2 give readers deeper perceptions and understanding of Everbright Group’s responsibility in the financial sector, but also show SDG13 SDG15 the readers the same outstanding milestone accomplished by Everbright Group in the industrial field. Protecting Ecology and Beautifying Homeland - Green Operation 201-2 Increasing Vitality and Gathering Energy - Rights Protection 401-2/405-1/405-2 Sunshine brings vigor to lives on the earth. I wish Everbright Group a better and brighter future on the way to fulfill social Increasing Vitality and Gathering Energy - Vitality Motivation 404-1/404-2/404-3 SDG4 SDG5 SDG8 responsibility and promote sustainable development! Increasing Vitality and Gathering Energy - Culture Promotion 103-1/103-2

Uniting in a Concerted Effort and Pursuing for a Joint Development - Win-win Cooperation 203-1/203-2

Uniting in a Concerted Effort and Pursuing for a Joint Development - Overseas Joint Construction 203-1/203-2 SDG8 SDG16 SDG17

Uniting in a Concerted Effort and Pursuing for a Joint Development - Peaceful Co-existence 203-1/203-2/413-1

Responsibility, A More Beautiful Future / /

Expert Opinions / /

Report Index 102-55 / Yu Zhihong, President and Chief Editor of China Sustainability Tribune Feedback Form / /

78 79 China Everbright Group | Everbright, forever

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中国光大 2018 Corporate Social Responsibility Report

China Everbright Group

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