About This Report Reporting Scope Reporting Period: Unless otherwise stated, the report covers the period between January 1 to December 31, 2019. Organizational Boundary : The report discloses the information of the Head Office and all branches and sub-branches of Hua Xia Bank. Reporting Cycle: The report is an annual report. The most recent report was issued on April 19, 2019. Compilation Conformance The report was prepared in accordance with theOpinions on Strengthening the Corporate Social Responsibility of Banking Institutions issued by former China Banking Regulatory Commission (CBRC), theGuidelines on the Corporate Social Responsibility of Banking Institutions of China released by the China Banking Association, and theNotice on Strengthening Listed Companies’Assumption of Social Responsibility and Guideline on Environmental Information Disclosure by Listed Companies released by Shanghai Stock Exchange (SSE), and referred to theGuidelines on Corporate Social Responsibil- ity Reporting for Chinese Enterprises (CASS-CSR 4.0) issued by the Research Center for Corporate Social Responsibility of the Chinese Academy of Social Sciences,Guidance on Social Responsibility (ISO 26000:2010) issued by International Organization for Standardization (ISO),GRI Sustainability Reporting Standards (GRI Standards) and GRI Financial Service Sector Supplemental Guidelines issued by Global Sustainability Standard Board (GSSB), and the Environmental, Social and Governance Reporting Guide (HK-ESG) issued by Hong Kong Exchanges and Clearing Limited (HKEx). Reference For better readability, “Hua Xia Bank Co., Limited” is referred to as “Hua Xia Bank” or “The Bank” in the report. Data Sources The financial data in the report come from the audited Annual Report 2019 of Hua Xia Bank Co., Limited and other data come from internal documents and statistics of Hua Xia Bank. Some contents and data can be traced back to previous years. Languages of the Report The report is available in simplified Chinese and English versions. In case of any discrepancy, the simplified Chinese version shall prevail. Formats of the Report The report is available in both print and electronic formats. The electronic format of the report can be downloaded at our official website (http://www. hxb.com.cn). Contact Information Hua Xia Bank Co., Limited Address: Hua Xia Bank Mansion, 22 Jianguomennei Street, Dongcheng District, Beijing Postal code: 100005 Tel: 010-85237056 Fax: 010-85239000 E-mail: [email protected] Message from Chairman 03 Table of Contents Message from Chairman The year 2019 was a critical year for realizing the first centenary goal of 03 building a moderately prosperous society in all respects and marked the 70th Message from Chairman anniversary of the founding of the People’s Republic of China. In 2019, we re- Message from President 04 mained true to our original aspiration, adhered to craftsmanship, and main- tained perseverance in pursuing our goals. Guided by Xi Jinping Thought on About Us 05 Socialism with Chinese Characteristics for a New Era, we strengthened and improved Party leadership throughout the process of our reform and devel- opment, aligned Hua Xia’s Dream with the Chinese Dream, made concerted efforts to build the Bank into a “large and strong, stable and excellent” modern financial group, and contributed to the sustainable development of the economy, society, and environment. A Brilliant Hua Xia for Value Creation 06 A Dedicated Hua Xia with Craftsmanship 22 1 2 We persevered in serving the real economy. Making active efforts to join the economic mainstream, we shouldered the responsibility of providing Corporate Governance 08 Spotlight: Providing Financial Support for the Fight 24 sound services for the coordinated development of the Beijing-Tianjin-He- 10 Against Poverty bei region, the integration of the Yangtze River Delta, and the construction CSR Management 28 Supporting for the Coordinated Development of of the Guangdong-Hong Kong-Macao Greater Bay Area and other national CSR Performance 14 the Beijing-Tianjin-Hebei Region development strategies. By constantly strengthening our support for key Green Development 16 34 areas of the real economy, such as industrial transformation and upgrading, Serving the Real Economy 43 consumption, and the private sector, we helped create powerful new drivers Developing Inclusive Finance for the high-quality development of the real economy. “Green Growth for a Better Hua Xia”, contributing our financial expertise to China’s pursuit of lucid waters and lush mountains. Based in Beijing, we contributed to regional development. Adhering to our position as a “bank for Beijing”, we worked harder to establish the Driven by innovations, we embraced FinTech. Based on our resource Bank as a major financial service provider for the Beijing-Tianjin-Hebei re- endowments and development foundation, we promoted the overall digital gion. We went all out to help promote the economic and social development transformation and innovations in online banking. Through the application A Digital Hua Xia Driven by Innovations 46 A Prudent Hua Xia with Compliance 54 4 of Beijing and the coordinated development of the Beijing-Tianjin-Hebei of FinTech, we fostered differentiated competitive edges and created the 3 region so that Beijing can better fulfill its major tasks according to the strategy brand of Smart Finance and Digital Hua Xia for its blueprint for faster innova- Fintech Development 48 Full Compliance in Operations 56 of building Beijing into the political center, cultural center, international com- tion-driven development. Smart Applications for Better Business Development 50 Strengthening Risk Management 60 munication center, and technology innovation center of China, relocating its We remained prudent to control financial risks.Adhering to law-based non-capital functions, and doing a better job in the construction of its sub- operations and compliance, we kept to strict risk management measures. By ESG Investment Philosophy 52 center. continuously improving internal control and compliance management and building up the comprehensive risk management system, we kept our focus We made concerted efforts to promote inclusive finance. Devoted to on risk prevention and control and completed all tasks properly to guard serving SMEs, we pursued “professional services, branded business lines, against and defuse financial risks. featured operation, and refined management”, created a professional, A People-Centered Hua Xia 62 76 A journey of ten thousand miles is ahead of us and we will forge ahead with A Sincere Hua Xia with Quality Services Pursuing Happiness for All exclusive and targeted organizational structure, and vigorously endeavored 6 to “become a financial service provider for SMEs”. At the same time, we important tasks on our shoulders despite all challenges. As a people-oriented 5 and responsible state-owned financial institution, Hua Xia Bank, under the thoroughly implemented the CPC Central Committee’s decisions on the Protection of Customers’ Rights and Interests 64 Protecting Fundamental Rights and Interests of 78 decisive battle against poverty and continued to promote precision poverty strong leadership of the CPC Central Committee with Comrade Xi Jinping at Employees Better Customer Experience 67 alleviation in the financial sector, and have launched supporting credit poli- the core, has the confidence and determination to implement the decisions Supporting Employee Development 79 Improvement in Corporate Banking Services 73 cies based on our widely distributed outlets, and innovative comprehensive and requirements of deepening the supply-side structural reform of the Caring for Employees 80 financial products and services, striving to contribute to winning the decisive financial sector. We will make sure to reinforce our sense of political responsi- battle against poverty. bility and shoulder our historical missions, press ahead in our reform and de- Building a Better Society with Concerted Efforts 82 84 velopment resolutely despite all difficulties, and contribute to the realization Outlook We made green finance our calling card.We took the initiative to integrate of the Chinese Dream and the great rejuvenation of the Chinese nation. 86 green development into our business operations, developed new models Reporting Index for business management and financial service delivery, and strengthened Independent Assurance Report 90 international cooperation. We stepped up our efforts to promote integration 92 between finance and various other industries and offered more support to Feedback Form industries related to energy conservation, environmental protection, clean energy, and ecological governance. Thus, we created the financial brand of Party Secretary and Chairman of Hua Xia Bank 04 Message from President About Us 05 Message from President About Us Under the leadership of the Party, the People’s Republic of China has gone through 70 extraordinary years. Especially since the launch of the Hua Xia Bank was founded in Beijing in October 1992 and reform and opening up, China has made great changes and greatly im- became a national joint-stock commercial bank after restruc- proved people’s living standards. Born out of the reform and opening-up, turing in March 1995. On September 12, 2003, the Bank went Hua Xia Bank rode the tide of the times, advanced together with the public on Shanghai Stock Exchange (Stock Code: 600015), with nation, and witnessed and played its part in the development of China’s registered