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华夏银行:华夏银行2020年社会责任报告(英文版)2021-04-30  

                                                                                                                                          Hua Xia Bank Co., Limited   01




About This Report
Reporting Scope
Reporting Period | Unless otherwise stated, the report covers the period between January 1 to December 31, 2020.
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 17, 2020.


Preparation Basis
The report was prepared in accordance with the Opinions on Strengthening the Corporate Social Responsibility of Banking Institutions
issued by former Banking Regulatory Commission (CBRC), the Guidelines on the Corporate Social Responsibility of Banking Institutions
of China released by the China Banking Association, and the Notice 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 the Principles for Responsible Banking issued by United Nations Environment Programme, the Guidelines on
Corporate Social Responsibility 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 2020 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
The report is available in simplified Chinese and English versions. In case of any discrepancy, the simplified Chinese version shall
prevail.


Formats
The report is available in both print and electronic formats. The electronic version can be downloaded at our official website (http://www.
hxb.com.cn).


Contact Information
Hua Xia Bank Co., Limited
Address: 22 Jianguomennei Street, Dongcheng District, Beijing
Postal code: 100005
Tel: 010-85237056
Fax: 010-85239000
E-mail: zhshzr@hxb.com.cn
02   2020 Social Responsibility Report                                                                                                                         Hua Xia Bank Co., Limited    03




Table of Contents


                                                                                  01                                                           04
Message from Chairman                04

                                     06
Message from President
                                          A Dedicated Hua Xia                                    An Eco-friendly Hua Xia
About Us                             08
CSR Management                       11   with Craftsmanship                                     Through Green Development
CSR Awards and Honors                14
                                          Promoting the Coordinated Development of          34   Devoting More Efforts to Green Finance        76
CSR Performance                      15
                                          the Beijing-Tianjin-Hebei Region                       Services for Green Lifestyles                 82
                                          Implementing State-level Regional Development     40   Practicing Green Operation                    83
                                          Strategies
Spotlight:
                                          Promoting Industrial Transformation and Upgrade   42
Contributing to the Fight
                                          Serving China’s Opening-up                       43
Against the COVID-19 with            18




                                                                                  02                                                           05
Concerted Efforts

Spotlight:

Contributing to the Decisive              A Philanthropic Hua Xia                                A Prudent Hua Xia
Victory in the Battle Against
Poverty Through Multiple             26
                                          with Inclusive Finance                                 with Compliance
Approaches
                                          Promoting the Growth of MSEs                      48   Full Compliance in Operations                 88
                                          Supporting Private Enterprises                    53   Strengthening Risk Management                 92
                                          Boosting People’s Wellbeing                      54




                                                                                  03                                                           06
                                          A Sincere Hua Xia with                                 A People-centered Hua Xia
                                          Innovative Services                                    Pursuing Happiness for All

                                          Accelerating FinTech Development                  60   Protecting Employee Rights                    96
                                                                                                                                                     Outlook                               104
                                          Improvement in Corporate Banking Services         64   Supporting the Development of Employees       98
                                          Upgrading the Customer Experience                 66   Caring for Employees                          99
                                                                                                                                                     Appendix                              106
                                          Protecting Customer Rights and Interests          71   Building a Harmonious and Beautiful Society   102
                                                                                                                                                     Reporting Index                       106
                                                                                                 Through Joint Efforts
                                                                                                                                                     Independent Assurance Report          111
                                                                                                                                                     Feedback Form                         113
04   2020 Social Responsibility Report                                                                                                            Hua Xia Bank Co., Limited   05




Message from Chairman
In 2020, confronted with the hard shock from the COVID-19 pandemic and accelerating changes, Hua Xia Bank adhered to the
guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and promoted bank-wide reform by enhancing
Party leadership. Despite challenges, we seized opportunities, stayed true to our original aspiration and worked hard to fulfil our mission.
We made unremitting efforts to promote sustainable corporate, economic, social and environmental development at the same time.

We shouldered our responsibilities in the fight against the pandemic. Facing the extreme test of the pandemic, we earnestly implemented
the decisions and deployment of the Central Party Committee, the State Council and China Banking Insurance Regulatory Commission
on COVID-19 prevention and control. We spared no effort to support the national efforts of ensuring stability and securities on six fronts.
We offered sound, efficient financial services and actively fulfilled our responsibilities to aid the fight against the pandemic and support
resumption of work and production, striving to get through tough times with all walks of life.

We developed inclusive finance to help win the battle against poverty. Aiming to be “a financial service provider for small and medium
enterprises (SMEs)”, we allocated comprehensive credit loans to micro and small enterprises (MSEs), advanced product innovation
and process optimization, and improved financial service capability for MSEs. At the same time, we implemented the decisions and
deployment of the Central Party Committee on targeted poverty alleviation. Leveraging our financial advantages, we actively introduced
new financial products and models for poverty alleviation, improved service efficiency, and spared no effort to accomplish our targets in
the battle against poverty.

We provided financial support for the development of the real economy. Based in Beijing, we endeavored to build the Bank into a
national-level joint-stock bank and a major financial service provider for the Beijing-Tianjin-Hebei region. In line with national and regional
development strategies for the Yangtze River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area and so on, we continued
to increase resource investment in pivotal areas of the real economy (e.g., transformation and upgrade of industrial structure, China’s
opening up to the outside world, development of private enterprises) and add momentum to the high-quality development of real
economy.


We embraced digital trends and pursued innovation-driven development. We constantly boosted FinTech innovation, improved
coordinated planning and top-level design for digital transformation, and accelerated the development of key FinTech projects and
digitalization of core business. Moreover, we built the innovation mechanism of agile organization system, ramped up efforts to improve
digital ecosystem, and created the “Smart Finance, Digital Hua Xia” brand, pushing forward the innovative development and digital
transformation.

We developed green finance to protect the beautiful homeland. We actively practiced the green development philosophy, channeled
more resources to green finance areas such as credit loans, investment and finance lease, and built a full-chain green finance service
system ranging from internal architecture building to product innovation. In addition, we took the initiative to expand international
cooperation, constantly greened our services, and worked to create the “Green Growth for a Better Hua Xia” brand and contribute to the
building of beautiful China with lucid waters and lush mountains.

We prevented and controlled financial risks through compliance and stable operation. Adhering to compliant operation, we stressed
“compliance for value creation”, insisted on risk management, and comprehensively promoted the construction of a long-term
compliance management system. With these efforts, we advanced the risk management system reform, improved internal compliance,
and consolidated the foundation for compliant operation, safeguarding high-quality corporate development and securing financial order
and social stability.

In face of challenges or difficulties, heroes stand out. Looking into the future, under the strong leadership of the Party Central Committee
with Comrade Xi Jinping at its core and standing at the beginning of a new development stage, we will practice the new development
philosophy, and integrate into the new development pattern. With unremitting efforts, we will work to realize the Chinese Dream of
national rejuvenation and make achievements to celebrate the 100th anniversary of the founding of the Communist Party of China.




                                                                                       Party Secretary and Chairman of Hua Xia Bank
06   2020 Social Responsibility Report                                                                                                                Hua Xia Bank Co., Limited       07




                                         Message from President
                                         The year 2020 was an extraordinary year. Confronted with the sudden outbreak of COVID-19 and the impacts of complicated situations
                                         at home and abroad, Hua Xia Bank insisted on boosting the real economy. Upholding the customer-centric service philosophy, we
                                         fulfilled our responsibilities as a state-owned financial institution and pressed ahead with all our achievements.

                                         Since 2020, we have orderly promoted the transformation and institutional reform of Hua Xia Bank and constantly cemented the
                                         foundation for operation and development. As a result, we have achieved continuous growth in business scale, operating efficiency
                                         and risk resistance capability. In 2020, we realized a revenue of RMB 95.309 billion, a net profit of RMB 21.568 billion, and a capital
                                         adequacy ratio (CAR) of 13.08%.

                                         In 2020, facing the extreme test of the pandemic, the Bank adopted diverse measures and provided financial support to aid COVID-19
                                         prevention & control and resumption of work and production, and to ensure stability and securities on six fronts. As of the end of 2020,
                                         the Bank had cumulatively allocated RMB 20.705 billion credit loans to 288 enterprises essential for pandemic prevention and control;
                                         postponed the repayment of principals and interests and cut the interest rate for 11,077 enterprises (including small-business owners,
                                         individual industrial and commercial households, with a cumulative business principal of RMB 204.155 billion) hit by the pandemic.

                                         In 2020, the Bank actively seized opportunities of regional economic development. We went all out to advance regional development
                                         in the Beijing-Tianjin-Hebei region, Yangtze River Delta region and Guangdong-Hong Kong-Macao Greater Bay Area, along Beijing-
                                         Guangzhou and Beijing-Shanghai railway lines, and other key areas, to effectively support the development of the real economy. In
                                         2020, the Bank cumulatively provided RMB 65.6 billion of financing services for key projects in the coordinated development of the
                                         Beijing-Tianjin-Hebei region. At the same time, the Bank ramped up efforts to promote the transformation and upgrade of industrial
                                         structure, support the development of micro, small and medium-sized private enterprises, and facilitate the country’s opening up. As of
                                         the end of 2020, the balance of loans for supporting strategic emerging industries had reached RMB 79.689 billion while the balance of
                                         loans to MSEs had reached RMB 456.412 billion.

                                         In 2020, the Bank enhanced financial support for targeted poverty alleviation, especially for the fixed-point poverty alleviation in Beijing,
                                         the East-West collaboration for poverty alleviation, and educational development for poverty alleviation. We increased input in industrial
                                         development, public welfare, stimulating consumption of local products, employment and educational support in poverty-stricken areas.
                                         In addition, we set up the fund for preventing return to poverty and for industrial development, contributing to winning the battle against
                                         poverty. In 2020, the Bank provided RMB 840.2222 million (including credit loans, donations and consumer spending) for targeted
                                         poverty alleviation and offered financial services to a total of 21,582 registered poor people.

                                         In 2020, the Bank responded to the national efforts of ecological progress, improved the long-term mechanism for green credit loans
                                         and investment, and enhanced cooperation with international organizations in this regard. By developing marketing platforms and
                                         optimizing specialty products, the Bank provided more financial support for key green projects to aid pollution control. As of the end of
                                         2020, the balance of green loans had reached RMB 180.043 billion and the balance of climate finance had reached RMB 157.1 billion.
                                         Besides, the Bank endeavored to practice ESG investment and launched CSI ESG120 Strategy Index, CSI Hua Xia Bank ESG Index and
                                         CSI Equity-Hua Xia Wealth Management ESG Preferred Bond Index Strategy Index, attracting extensive attention from the market and
                                         investors.

                                         In 2020, the Bank put people first, protected employee rights, and provided abundant training and career development opportunities,
                                         so that employees can grow together with the Bank. In 2020, the Bank held 4,365 training sessions for 370,748 participants. Moreover,
                                         the Bank actively engaged in charity and promoted social harmony. In 2020, the Bank organized 2,091 volunteer service activities, with
                                         30,235 participants delivering 22,851.2 hours of service.

                                         Looking into the year 2021, it is time for us to make new efforts. Standing on the new historic point, Hua Xia Bank will remain true to
                                         our original aspiration, brave challenges and difficulties, and take confident, firm strides to help realize the Chinese Dream of national
                                         rejuvenation.




                                                                                                                              Deputy Party Secretary and President of Hua Xia Bank
08   2020 Social Responsibility Report                                                                                                                                                                                                                              Hua Xia Bank Co., Limited     09




About Us                                                                                                                      Corporate Governance

                                                                                                                             The Bank has established a corporate governance structure mainly comprising of the Shareholders’ General Meeting, the Board of
                                                                                                                             Directors, the Board of Supervisors, and the senior management. The Shareholders’ General Meeting is the governing body, the Board
                                                                                                                             of Directors is the decision-maker, the Board of Supervisors serves supervision functions, and the senior management is in charge of
                                                          Hua Xia Bank was founded in Beijing in October 1992
                                                                                                                             execution.
                                                          and became a national joint-stock commercial bank after
                                                          restructuring in March 1995. On September 12, 2003, the            The Bank has strengthened the statutory position of Party organizations in the corporate governance structure, coordinated well between
                                                                                                                             the Party committee and the above three parts of the corporate governance structure, and incorporated Party leadership in all parts of
                                                          Bank went public on Shanghai Stock Exchange (Stock Code:
                                                                                                                             corporate governance, promoting the synergy of Party leadership and corporate governance.
                                                          600015), with registered capital of RMB 15.387 billion.

                                                          Since its inauguration, the Bank has been forging ahead and
                                                                                                                             As of the end of 2020                                                                                                    In 2020
                                                          made great achievements despite all difficulties. By the end



                                                                                                                                          18                              7                                        5                                  2
                                                          of 2020, the Bank had a total asset of RMB 3,399.816 billion,
                                                          44 Tier-1 branches, 79 Tier-2 branches, 1,022 outlets in 122
                                                                                                                             there were              Directors                                                                                            Shareholders’ General Meetings were


                                                                                                                                                                                                                                                                  17
                                                          cities at or above the prefectural level nationwide, and nearly
                                                          40,000 employees, which had formed an institutional system         in the Board of Directors                    Independent Directors                    Executive Directors
                                                                                                                                                                                                                                                      held with           resolutions adopted



                                                                                                                                                                                                                                                      10
                                                          of building presence in developed cities and reaching out


                                                                                                                                          11                              5                                        4
                                                          to the whole country. The Bank has set up 1,206 agencies in
                                                                                                                                                                                                                                                                  Board of Directors Meetings were


                                                                                                                                                                                                                                                                   55
                                                          and out of China, covering 321 cities in 101 countries on all      there were              Supervisors
                                                          five continents of the world. Its settlement network covers all
                                                                                                                             in the Board of Supervisors                  External Supervisors                     Employee Supervisors               held with             resolutions adopted
                                                          major trade areas in the world.

                                                          In The Banker’s Top 1000 world banks published in July
                                                                                                                                                                                                                                                      8    Board of Supervisors Meetings were


                                                                                                                                                                                                                                                                   20
                                                          2020, Hua Xia Bank ranked 51st by Tier-1 capital and 65th
                                                          by total asset, respectively five places and two places higher                                                                                                                              held with             resolutions adopted
                                                          than the previous year.                                                                                                                       Shareholders’ General
                                                                                                                                                                                                              Meeting

                                                                                            Actively pursue innovative,
                                                                                            coordinated, green, open and
                                                                                                                                                                                Board of Directors                           Board of Supervisors
                                                                                                shared development

                                                                                                                                  Strategic
                                                                                                                               Management and            Risk and                                                                                               Oversight        Nomination
                                                                                                                               Consumer Rights         Compliance                                                                                               Committee        Committee
                                                                                                                                and Interests          Management
                                                                                     Focus on serving the real economy                                  Committee
                                                                                                                                  Protection
                                                                                    and creating value for customers and         Committee
                                                                                               shareholders                                             Nomination
                                                                                                                               Audit Committee                                    Office of the Board
                                                                                                                                                        Committee                                                               Office of the Board
                                                                                                                                                                                      of Directors
                                   Strive to develop                                                                                                                             (Securities Affairs Department)
                                                                                                                                                                                                                                  of Supervisors
                                                               Follow the fundamental strategy of “taking deposits as            Related Party       Remuneration
                                into a modern financial                                                                        Transaction Control    and Evaluation
                                                              the foundation, building the Bank’s through FinTech and             Committee            Committee
                                  group that is “large
                                                             talents, and ensuring stable operation through risk control”
                                and strong, stable and                                                                                                                                                               Senior
                                                                                                                                                                                                                   Management
                                       excellent”

                                                                       Keep to the direction of featured, digital, asset-       Asset Liability      Credit, Investment   Risk Management              Credit              Asset Risk      Performance              Product        Information
                                                                                                                                                                                                                                                                                  Technology
                                                                      efficient, specialized, comprehensive, and world-         Management            and Financing          and Internal             Approval              Disposal       Management             Management      Management
                                                                                                                                 Committee           Policy Committee     Control Committee          Committee             Committee        Committee              Committee       Committee
                                                                                      oriented development

                                                                                                                                                                                                Headquarters                Branches and
                                                                                                                                                                                                Departments                 Sub-branches
10   2020 Social Responsibility Report                                                                                                                                                                                                                                  Hua Xia Bank Co., Limited     11




 Following the Lead of Party Building
                                                                                                            In 2020
                                                                                                                                                       CSR Management
The Bank has followed Xi Jinping Thought on Socialism with Chinese Characteristics for
a New Era and implemented the guiding principles of the 19th CPC National Congress,                                                                    The Bank has integrated CSR management with corporate                     In 2020, we actively implemented the Principles for Responsible



                                                                                                                                1,200
                                                                                                            Party leadership at all levels and their
the second, third, fourth and fifth plenary sessions of the 19th CPC Central Committee,                                                                development, and continuously improved CSR management and                 Banking (PRB) of United Nations Environment Programme Finance
and China’s Central Economic Work Conferences. While adhering to Party leadership and                                                                 practices to create greater value for stakeholders. The Corporate         Initiative (UNEP FI) and practiced the ESG responsible investment
                                                                                                            members fulfilled
enhancing Party building, the Bank has continuously promoted full and strict discipline over                                                           Social Responsibility Management Measures of Hua Xia Bank                 philosophy. While pursuing sustainable corporate development,
                                                                                                            tasks on their principal responsibility
the Party and followed Party leadership in its pursuit of high-quality development.                                                                    has been strictly implemented to regulate CSR management,                 the Bank made a positive contribution to the sustainability of the
                                                                                                            list for exercising strict governance
                                                                                                                                                       and the branding and communication of Hua Xia Bank’s                     economy and society. By organizing CSR management training,
     Giving full play to the leading role of the Party Committee in steering the direction, overseeing      over the Party Committee
     the big picture and ensuring effective implementation, and strictly performing its responsibility of                                              social responsibility management has been strengthened to                 the Bank enhanced employees’ social responsibility awareness
     exercising full and rigorous Party disciplines
                                                                                                            Improving the work systems of the          continuously improve the perception of employees and external             and capability to fulfill responsibility.
     Consolidating the outcomes of the education on the original aspiration of the Party and the patrol     Bank’s Party Committee; formulating,      parties of the Bank’s role in value creation.
     inspection & rectification campaign
                                                                                                            optimizing and implementing the
     Enforcing full, rigorous self-discipline of the Party Committee; enhancing anti-corruption             work rules for Party Committee,            CSR Philosophy
     education, discipline and warning; and exercising strict governance over the Party Committee
                                                                                                            implementation rules for Party

     Practicing the ideology education accountability mechanism, building and implementing the
                                                                                                            affairs disclosure, regulations on
                                                                                                                                                                                                             Vision of CSR fulfillment
     “1+1+N” ideology education and publicity system framework                                            communication with the standing
                                                                                                            committee of the Party Committees                                             Harmony brings a bright future and Hua Xia continues with its public spirit
     Upholding the Party standards for competitive cadres for a new era, and adhering to the Party
                                                                                                                                                                                  China’s culture is at the core of the Bank’s development and prosperity, and the value
     leadership over cadres and talents                                                                     of key banks, list of major issues
                                                                                                                                                                                                created shall be shared by all people of the Chinese nation.
                                                                                                            to be discussed before decision
     Enforcing disciplines and rules, and fully supporting the resident discipline inspection &
     supervision team to perform its duties
                                                                                                            making of the Party Committee and its
                                                                                                                                                                          Harmony brings a bright future                                   Hua Xia continues with its public spirit
                                                                                                            procedure, etc.
     Continuously strengthening Party building at the primary level and the development of                                                                 The Bank pursues harmonious co-existence, open cooperation,           Leveraging on its advantages in specialty, location and
     corporate culture, and creating a positive, hard-working, united and cooperative atmosphere                                                           sharing of benefits with stakeholders, and works towards balance      resources, the Bank takes the initiative to shoulder economic,
                                                                                                                                                           between economic, environmental and social benefits, making its       environmental and social responsibilities, and strives to bring
                                                                                                                                                           contribution to a harmonious socialist society.                       benefits to every corner of China and every Chinese.
 Investor Relations

To strengthen investor relations management, the Bank strictly implemented the Working                                                                                                                                   Two
Measures of Hua Xia Bank Co., Ltd. on Investor Relations, and designated a dedicated investor                                                                                                                          CSR goals
relations manager under the Office of the Board of Directors to take charge of relevant work.
                                                                                                                                                                       Maximizing comprehensive value                                      Contributing to a harmonious society
The Bank has worked to promote interactions and exchanges with investors through multiple
channels and in many ways. In 2020, the Bank organized shareholders’ general meetings,
                                                                                                                                                                                                                        Three
meetings for investors and analysts, online briefing on cash bonus, open day of investor
                                                                                                                                                                                                                     CSR practices
groups, themed seminars and other activities, and answered questions carefully on the SSE
E-interaction platform and through investor service hotline and mailbox, so as to enhance the
                                                                                                                                                              Practices for economic responsibility        Practices for environmental responsibility         Practices for social responsibility
capital market’s understanding of the bank.


                                                                                                                                                                                                                        Four
 Information Disclosure                                                                                                                                                                                             CSR principles

The Bank has attached great importance to transparent operation, strictly complied with                                                                    Openness and transparency                Cross-over thinking          Resource integration          Communication with stakeholders
the regulations on information disclosure and standardized the information disclosure and
reporting processes. We actively fufilled information disclosure obligations and continued to                                                                                                                            Six
enhance transparency via channels like China Securities Journal, Shanghai Securities News,                                                                                                                           CSR priorities
Securities Times, Shanghai Stock Exchange website, the official website of Hua Xia Bank, etc.
                                                                                                                                                               Serving the              Practicing        Promoting ecologi-     Pursuing safe and        Empowering
In the assessment of information disclosure of listed companies in Shanghai Stock Exchange                                                                                                                                                                                   Putting people first
                                                                                                                                                              real economy          inclusive finance        cal progress       steady development      through FinTech
from 2019 to 2020, the Bank was evaluated level-A (excellent).
12                           2020 Social Responsibility Report                                                                                                                                                              Hua Xia Bank Co., Limited       13




                       Materiality Analysis                                                                              Stakeholder Communicaton

           The Bank has identified 16 material topics in combination with sustainable development
                                                                                                                               Stakeholder                         Key expectations                                     Our responses
           trends, advanced CSR practices of peers and concerns of stakeholders. The Bank has
           prioritized the topics based on “importance to the sustainable development of Hua Xia Bank”                                                                                               Coordinating regional development
           and “importance to stakeholders”.                                                                                                        Serving the real economy                         Supporting the growth of small and micro
                                                                                                                                                      Supporting national strategies                   enterprises
         Materiality Matrix                                                                                                     Government            Developing inclusive finance                     Facilitating China’s opening up
                                                                                                                                                      Helping fight poverty                            Promoting targeted poverty alleviation through
                                                                                                                                                      Paying taxes in full according to the law        financial services
                                                                           Serving the real economy
                                                                                                                                                                                                       Paying taxes in full
                             Devoting more efforts to green finance        Contributing to national strategies
                             Supporting community development              Guarding against financial risks
                                                                                                                                                                                                       Implementing regulatory policies
Importance to stakeholders




                             Caring for employees                          Promoting inclusive finance                                                Compliance management
                                                                                                                           Regulatory authorities                                                      Accepting supervision and evaluation
                                                                           Standardizing corporate governance                                         Tightening risk management
                             Promoting financial knowledge                                                                                                                                             Strengthening risk prevention
                                                                           Contributing to poverty alleviation


                                                                                                                                                      Improving corporate governance                   Improving corporate governance
                                                                           Pursuing FinTech innovations                                               Offering continuous and stable returns           Ensuring sound and stable operation
                                                                                                                         Shareholders and investors
                             Practicing green operation                    Protecting customers’ rights and interests                                Protecting shareholders’ rights and interests   Creating value for shareholders
                                                                           Improving service quality                                                  Transparent operation                            Strengthen information disclosure
                             Promoting industry development
                                                                           Helping employees grow

                                                                                                                                                                                                       Developing green finance
                                                                                                                                                      Paying attention to climate change               Promoting green office practices
                                       Importance to the sustainable development of Hua Xia Bank                                Environment
                                                                                                                                                      Supporting green development                     Engaging in public welfare-oriented
                                                                                                                                                                                                       environmental protection campaigns


                       Contributing to the SDGs                                                                                                                                                        Strengthening the protection of employees’ rights
                                                                                                                                                      Protecting customers’ rights and interests      and interests

           In September 2015, the United Nations held the Sustainable Development Summit and                                    Customers             Improving customer experience                    Providing high-quality and efficient services
                                                                                                                                                      Accelerating product innovation                  Strengthening innovation in financial products
           adopted the 2030 Agenda for Sustainable Development. The agenda covers 17 Sustainable
                                                                                                                                                                                                       Advancing digital transformation
           Development Goals (SDGs), which point out the direction for countries and enterprises across
           the world to contribute to sustainable development. Bearing in mind the vision of building a
           modern financial group that is “large and strong, stable and excellent”, the Bank has worked                                             Transparency
                                                                                                                                                                                                       Strengthening exchanges and cooperation
           to make an assessment in terms of materiality and importance, distinguished core goals and                            Partners             Integrity
                                                                                                                                                                                                       Improving procurement management
                                                                                                                                                      Win-win cooperation
           related goals, and allocated resources and advantages to core areas, contributing to the UN’s
           SDGs.
                                                                                                                                                                                                       Protecting the basic rights and interests of
                                                                                                                                                      Protection of rights and interests
                                                                                                                                                                                                       employees
                                                                                                                                                      Remuneration and benefits
                              Core                                                                                              Employees                                                              Unblocking career development channels
                                                                                                                                                      Working environment
                              goals                                                                                                                                                                    Providing training on job skills
                                                                                                                                                      Career development
                                                                                                                                                                                                       Carrying out rich cultural and sports activities



                                                                                                                                                      Financial knowledge popularization
                                                                                                                                                                                                       Popularizing financial knowledge
                             Related                                                                                           Communities            Support for community development
                                                                                                                                                                                                       Participating in public welfare activities
                              goals                                                                                                                   Supporting public welfare undertakings
     14      2020 Social Responsibility Report                                                                                                                                                                                                                                                     Hua Xia Bank Co., Limited            15




       CSR Awards and Honors                                                                                                                                        CSR Performance
                                                                                                                                                                     Economic Performance
    Top 10 Outstanding Banks for Joint            Outstanding Bank Award for       The Best Inclusive Finance Award        Outstanding Financial Bond Issuer
Popularization of Financial Knowledge in 2020     “Popularization of Financial                                                                                     Total asset        Unit: RMB billion       Operating revenue Unit: RMB billion      Total profit          Unit: RMB billion     Net profit          Unit: RMB billion
                                                                                    2019 Green Bank with Excellent           Top 100 Banks for Settlement -
                                                                                                                                                                                       3,399.816                                         95.309
                                                  Knowledge for Safety of Your
                                                                                                                                                                                                                                                          26.783        27.563      27.153
   Best Organization Award for Illegal
                                                                                                                                                                                                                                                                                                                 22.115
                                                                                         Overall Assessment                       Outstanding Dealer
                                                                                                                                                                               3,020.789                                      84.734                                                                 20.986                  21.568
                                                   Pocket”Awareness Raising
 Fundraising Prevention Publicity in 2020
                                                                                                                                                                    2,680.58                                     72.227
           China Banking and Insurance         People’s Bank of China (PBOC)          China Banking Association           China Central Depository & Clearing
          Regulatory Commission (CBIRC)     Financial Consumer Protection Bureau                                                        Co., Ltd.
                                                        Financial News




           The Best Smart Bank Award                                                                                    Best FinTech Innovation Award of the Year      2018       2019          2020                2018       2019       2020             2018          2019         2020               2018     2019           2020
                                                The Best Socially Responsible            The 2020 Global Green
          The Best Mobile Banking User             Listed Company Award                Finance Innovation Award           Most Distinctive Credit Card Product
               Experience Award                                                                                                    Award of the Year
                                                                                                                                                                    Total deposits                     Unit: RMB billion      Total loans                    Unit: RMB billion       Balance of loans to MSEs Unit: RMB billion
            China Financial Certification       China Securities Golden Bauhinia    International Finance Forum (IFF)         Financial Digital Development
                 Authority (CFCA)                Award Organizing Committee                                                              Alliance                   2018                               1,492.492              2018                        1,613.516                   2018                            357.326
                                                                                                                                                                    2019                                   1,656.489          2019                             1,872.602              2019                               396.387
                                                                                                                                                                    2020                                      1,818.33        2020                                 2,108.993          2020                                      456.412
                                                                                     The 2020 Gamma Award for Bank
                                                                                               Financing                                                                                                                      Balance of loans in support of                          Balance of loans in support
                                                                                                                              Star of the Battle Against the
           The Gold Award for Investor                                              The 2020 Gamma Award for Mobile                     Pandemic                    Growth of loans to MSEs Unit: RMB billion                 strategic emerging industries Unit: RMB billion         of cultural industries      Unit: RMB billion
                                                                                               Banking
             Relations - Institutional
                                                                                                                                                                                             43.056                           2018            30.004                                   2018                  26.753
                                                   Digital Economy Pioneer
            Friendly Communication                           Award                   The 2020 Gamma Award for Green
                                                                                                                              Pioneer in Financial Service-
                                                                                                                                                                    2018
                                                                                                                               driven Poverty Alleviation
                                                                                                                                                                    2019                 39.062                               2019                                      81.229         2019                            46.499
                     Award                                                                    Finance Bank

                      p5w.net                           Securities Daily                    Securities Times                          china.com.cn                  2020                              60.024                  2020                                     79.689          2020                                52.93

                                                                                                                                                                    Percentage of loans in support
                                                                                                                                                                    of cultural industries in the total
                                                                                                                                                                    balance of loans                            Unit: %       ROA                                        Unit: %     ROE                                          Unit: %

                                                                                                                                                                    2018      1.74                                            2018                                     0.81           2018           12.67
                                                                                                                                                                    2019          2.62                                        2019                                     0.78           2019         10.61
             The Bank of the Year for           Top 10 Financial Brands for          The 2020 Outstanding Board                The Bank of the Year for
                 Trade Finance                    “Benefiting the People”                 of Directors                           Green Finance                    2020             2.66                                     2020                            0.67                    2020        8.64


                   Financial News                        Beijing Daily                            SFC                                 Sina Finance                  Allowance-to-NPL ratio                      Unit: %       CAR                                       Unit: %      Shareholder equity                 Unit: RMB billion

                                                                                                                                                                    2018                                      158.59          2018                            13.19                   2018                            218.715
                                                                                                                                                                    2019                                   141.92             2019                              13.89                 2019                                  269.337
        The 2020 Outstanding Board of
                                                                                                                                                                    2020                                    147.22            2020                            13.08                   2020                                      282.655
                  Directors
                                                                                      Outstanding Bank for ESG                  Most Responsible Listed
        The 2020 Outstanding Bank for            2020 Banks with Outstanding           Responsible Investment                         Companies                     Number of countries and                                   Number of cities with Hua Xia                          RMB cross-border
               Brand Building                    Competitiveness in Inclusive
                                                                                                                                                                    regions with Hua Xia agencies                   Unit: /   agencies                                    Unit: /    settlement                        Unit: RMB billion
                                                      Finance Practices                  A Trustworthy Asset              Award of Outstanding Contributions
             The 2020 Rising Star of
                                                                                          Management Bank                   to Inclusive Finance of the Year
                                                                                                                                                                     2018             103                                     2018                                344                 2018                                37.1
                Investment Bank

           21 Century Business Herald
              st
                                                    China Business Journal               The Economic Observer                   National Business Daily             2019              116                                    2019                                     380            2019                                       44.24
                                                                                                                                                                     2020             101                                     2020                                321                 2020                                         46.3
16   2020 Social Responsibility Report                                                                                                                                                                                        Hua Xia Bank Co., Limited            17




 Environmental Performance                                                                                                   Social Performance

                                                                                                                                                                                                                Total number of employees
                                                                                                                                                Number of outlets                     Unit: /                   from ethnic minority groups              Unit: /

                                                                                                                                                2018                                 1,022                       2018                                  1,750
                                                                                                                                                2019                                  1,025                      2019                                  1,683
                                                                                                                                                2020                                 1,022                       2020                                    1,785


                                                                                                                                                Customer satisfaction rate for                                  Number of participants of
Balance of green loans         Unit: RMB billion
                                                                                                                                                95577 customer service center        Unit: %                    employee training sessions               Unit: /

 2018           56.699                                                                                                                                                                97.11                                                  224,911
                                                                                                                                                2018                                                             2018
 2019                 79.844                                                                                                                    2019                                  99.56                      2019                         261,106
                                                                         Number of ETC card users            Unit:10,000
 2020                                              180.043                                                                                      2020                                                             2020
                                                                                                                                                                                      99.61                                                            370,748
                                                                          2018                      170.34
                                                                          2019                                227.07
                                                                          2020                                     244.01
                                                                                                                                                Total number of employees                 Unit: /               Total charitable donations Unit: RMB million

Number of ETC cards                Unit: 10,000                                                                                                 2018                               40,997                       2018 12.34
                                                                                                                                                2019                             38,639                         2019     18.256
 2018                          262.4
                                                                                                                                                2020                              39,284                        2020                                   80.233
 2019                                   312.75
 2020                                   325.62                           Number of e-transactions            Unit: million

                                                                          2018                      965.8410
                                                                                                                             Indicator                                                               Unit      2018                 2019                  2020
                                                                          2019                               1,230.0562
                                                                          2020                           1,147.1926          Number of rural outlets                                                     /       102                  106                      107

                                                                                                                             Number of outlets in old revolutionary base areas, areas
Estimated carbon emissions
                                                                                                                             inhabited by ethnic minority groups, remote and border areas                /        79                   81                       81
reduction through e-transactions Unit: 10,000 ton
                                                                                                                             and poverty-stricken areas
 2018                          193.17
                                                                                                                             Number of community sub-branches                                            /       192                  177                      168
 2019                                    246.01
 2020                              229.44                                                                                    Number of online corporate banking transactions                        10,000   3,649.77             4,692.58              3,018.07

                                                                                                                             Number of online personal banking transactions                         10,000   4,538.94             3,682.81              2,344.73


                                                                                                                                                                                                               1,876                2,012                13,126
                                                                                                                             Complaints and problems solved through the joint handling
                                                                                                                                                                                                         /
                                                                                                                             mechanism of the 95577 customer service center


                                                                                                                                                                                                              100.00               100.00                100.00
                                                                                                                             Settlement rate of complaints lodged through 95577 customer
                                                                                                                                                                                                        %
                                                                                                                             service center

                                                                                                                             95577 call-backs                                                            /    69,411               42,604               130,559

                                                                                                                             Percentage of female employees                                             %      50.55                51.46                  51.14

                                                                                                                             Number of employee training sessions                                        /     3,889                3,986                  4,365

                                                                                                                             Number of AML training sessions                                             /     3,145                3,046                  1,210

                                                                                                                             Number of participants of AML training sessions                             /    37,046               49,855                98,710
                                                             Note: The data of green loan balance in 2020 was based on
                                                             the Special Statistics System of Green Loan revised by the      Number of legal training sessions                                           /       186                  213                      190
                                                             People’s Bank of China in December 2019.
                                                                                                                             Number of participants of legal training sessions                           /    16,317               19,595                28,005
18   2020 Social Responsibility Report                                                                                                                                                                                                                     Hua Xia Bank Co., Limited        19




                                                                                                                                                 Enhancing financial support for fighting COVID-19
                                                                                                                                                 Opening an express service channel in the
                                                                                                                                                 first place                                                             In 2020

                                                                                                                                                 We surveyed customers’ needs for financial services for medical        we issued


                                                                                                                                                                                                                         8
                                                                                                                                                 institutions, medicine production and procurement, etc. and
                                                                                                                                                 met such needs instantly. An express service channel for cross-
                                                                                                                                                 border remittance was opened, with dedicated employees on
                                                                                                                                                 duty for 24 hours, to meet business needs, including importing          measures in support of pandemic prevention and control and
                                                                                                                                                 critical medical supplies and procurement of prevention and             the provision of financial services
                                                                                                                                                 control materials. Besides, we implemented reduction and
                                                                                                                                                 exemption, and all individual transfers and donations initiated
                                                                                                                                                 by “Loving Donations” of online corporate banking to fight the        a total of RMB


                                                                                                                                                                                                                         20.705
                                                                                                                                                 pandemic were exempted from handling fees. We also offered
                                                                                                                                                 preferential interest rates to companies that provide and sell
                                                                                                                                                 anti-pandemic medical supplies and to those ensuring living
                                                                                                                                                 standards. Our service efficiency was improved to give priority         billion of credit fund was issued to 288 enterprises involved in
                                                                                                                                                 to the acceptance of the business on pandemic prevention, the           pandemic prevention and control
                                                                                                                                                 affected one, and the credit business in Wuhan.

                                                                                                                                                   Case
                                                                                                                                                                                                                         we postponed the repayment of principals and interests and
                                                                                                                                                   Launching an anti-pandemic wealth management                          cut the interest rates for


                                                                                                                                                                                                                         11,077
                                                                                                                                                   product

                                                                                                                                                   The Bank launched an anti-pandemic wealth management
                                                                                                                                                   product with a one-year close period, and raised RMB                  enterprises (including small-business owners, individual
                                                                                                                                                   3 billion. The profits that we surrendered through the                industrial and commercial households, with a cumulative
                                                                                                                                                   reduction or exemption of management fees, sales                      business principal of RMB 204.155 billion) hit by the pandemic
                                                                                                                                                   commissions, and custody fees were all used to attract
                                                                                                                                                   investors to buy anti-coronavirus bonds.


                                                                                                                                                 Facilitating the resumption of work and
                                                                                                                                                 production with all efforts                                             Constant innovation of online financial services

                                                                                                                                                 For seriously affected small and micro enterprises, we took             We announced the changes of our business hours on our official
                                                                                                                                                 the initiative to extend credit, renew loans, issue new loans for       WeChat accounts and official website, and worked to ensure
                                                                                                                                                 repaying the old ones, adjust the repayment plan, and exempt            efficient, convenient, and safe financial services at our business

                   Contributing to the Fight Against the                                                                                         or cut interest rates, to help them resume production. An
                                                                                                                                                 exclusive product, “Huaxia’s Loving Loans”, was launched for
                                                                                                                                                 staff participating in the prevention and control of the pandemic.
                                                                                                                                                                                                                         outlets across the country. We enabled customers to complete
                                                                                                                                                                                                                         transactions through our online channels, such as mobile
                                                                                                                                                                                                                         banking, online banking, and telephone banking, as well as

                   COVID-19 with Concerted Efforts                                                                                               The personal credit repayment period was flexibly adjusted
                                                                                                                                                 for the affected people. By the end of 2020, the loans of 556
                                                                                                                                                 customers had been extended with an amount of RMB 589
                                                                                                                                                                                                                         Long Business Loan, Long Concessional Loan, and other online
                                                                                                                                                                                                                         platforms, without leaving their home. Our customer service
                                                                                                                                                                                                                         center formulated a contingency plan and worked around-the-
                                                                                                                                                 million.                                                                clock to ensure non-stop functioning of our 95577 hotline and
                                                                                                                                                                                                                         financial services.

                    At the beginning of 2020, the COVID-19 pandemic raged across China. Faced with the
                    serious situation, the Bank conscientiously implemented the pandemic control decisions
                    of the Party Central Committee and the State Council, and adopted special measures for
                    solving special and urgent incidents, ensuring stability and security on six fronts. We gave
                    full play to the role of financial service in supporting pandemic control work, made every
                    effort to help prevent and control the pandemic and resume work and production, and
                    worked with all stakeholders to overcome the difficulties.




The Head Office organized an emergency drill for                                                                                                 The staff of Guangzhou Branch actively helped enterprises in resuming   Beijing Branch helped a company purchase pandemic-prevention
pandemic control in Dongdan’s office building                                                                                                   work and production                                                     supplies overseas



A Dedicated Hua Xia with Craftsmanship             A Philanthropic Hua Xia with Inclusive Finance   A Sincere Hua Xia with Innovative Services
20   2020 Social Responsibility Report                                                                                                                                                                                                                    Hua Xia Bank Co., Limited             21




                                                                                                                                    Case
     Spreading the love of Hua Xia Bank                                                                                                Beijing Branch                 Wuhan Branch                 Shenzhen Branch                 Changzhou Branch               Yinchuan Branch

     through charity donations                                                                                                     It took only five hours from
                                                                                                                                   credit application to loan
                                                                                                                                                                  It provided solid and
                                                                                                                                                                  timely financial support
                                                                                                                                                                                                 It worked with WeDoctor,
                                                                                                                                                                                                 a platform that brought
                                                                                                                                                                                                                                  It launched the “Entry and
                                                                                                                                                                                                                                  Exit Registration System”
                                                                                                                                                                                                                                                                Its village-based poverty
                                                                                                                                                                                                                                                                alleviation team took the
                                                                                                                                   granting by means of           for disaster relief to Hubei   together 6,700 academic          mini-app on WeChat that       initiative to take body
                                                                                                                                   online credit approval and     Charity Federation, Hubei      experts and over 200,000         offers free registration      temperature and disinfect
                                                                                                                                   manual bookkeeping in the      Red Cross Foundation           physicians (associate            service. The mini-app         vehicles at the village
                                                                                                                                   core banking system for        and other organizations.       professor or above) from         helped facilitate the         entrance, persuade
                                                                                                                                   Beijing Branch to provide      It closely cooperated with     1,900 major hospitals across     resumption of work and        visitors to go back,
                                                                                                                                   an emergency loan of           China Construction Third       the country to provide           entry and exit management     supervise gatherings of
                                                                                                                                   RMB 100 million, which         Engineering Bureau Co.,        a full range of services         of employees and              villagers, visit and register
                                                                                                                                   was used by Beijing to         Ltd., Peking Union Medical     covering appointment and         community residents, thus     body temperatures of
                                                                                                                                   purchase the first batch of    College Hospital and other     registration, online diagnosis   reducing the risk of cross    all villagers every day,
                                                                                                                                   pandemic-prevention items      units and timely provided      and treatment, electronic        infections.                   and popularize the latest
                                                                                                                                   including masks overseas.      them customized financial      prescription, and online                                       pandemic development
                                                                                                                                                                  services.                      dispensing.                                                    of and knowledge about
                                                                                                                                                                                                                                                                pandemic control.




Wuhan Branch made donations for building Huoshenshan Hospital




In 2020


 the Bank donated RMB


 30
                                          the Bank donated


                                          400                         240,000
                                                                      packages of disposable
                                                                                                    to construction workers
                                                                                                    from China Construction
                                                                                                    Third Engineering Bureau
                                                                                                    Co., Ltd. who were building
                                                                      tableware and other daily
 million to Hubei Charity Federation      quilts                                                    Huoshenshan Hospital and
                                                                      necessities
                                                                                                    Leishenshan Hospital



 the Bank donated more than
 RMB                                      the Bank donated                    a total of            donated


 2.37
 million through a youth volunteer
                                          100,000
                                          masks for pandemic
                                                                              51
                                                                              employees from
                                                                                                    10,200
                                                                                                    mL of blood
                                                                                                                                  Wuhan Branch donated anti-virus supplies

 donation campaign                        prevention and control in           Hua Xia Bank’s
                                          Xicheng District, Beijing           subsidiaries and
                                                                              branches in Beijing
22     2020 Social Responsibility Report                                                                                                                                                                                                                  Hua Xia Bank Co., Limited   23




     Remaining true to the original aspiration
     of serving the community
To give full play to the role of the Party’s primary organizations as bastions and the exemplary vanguard role of Party members and
officials, we selected outstanding Party members and youth backbones from all units in Beijing to participate in pandemic prevention
and control in communities, and to jointly build a people’s defense line with streets, communities and residents, thus improving the
capacity for pandemic prevention and control at the community level. We also established a temporary Party branch in communities
to provide relevant staff with protective equipment and disinfection materials such as masks, disposable gloves, infrared temperature
guns, hand sanitizers, etc.




                                                                                                                                        Zhang Jianhua, Deputy Party Secretary and President of Hua Xia Bank, worked with officials dispatched to communities




Li Minji, Party Secretary and Chairman of Hua Xia Bank, extended greetings to officials dispatched to communities




 In 2020

 three batches of excellent Party
 members and


 47
 young backbones


 were selected and dispatched to


 4
 communities



 for


156
 days to participate in the front-line
 prevention and control of the pandemic


                                                   Officials dispatched to communities kept a journal of their daily work               Officials dispatched to communities conducted pandemic prevention and control activities
24   2020 Social Responsibility Report                                                                                                                                                                                                                                 Hua Xia Bank Co., Limited   25




 Taking responsibility to defend safety
After the COVID-19 outbreak, an emergency leading team for COVID-19 prevention was quickly established to make uniform
arrangements of relevant work, intensify control of employees to know their acts, formulate management systems based on the situation
of pandemic prevention and control, and implement responsibilities at all levels, thus ensuring the safety and health of employees.



Employee management                                                      Workplace management

Under the principle of preventing the coronavirus from re-               Thirty-four measures, including the Guidelines for the
entering the country to cause new spread, we quarantined                 Administrative Operation of Head Office During the Period of
people returning from home, enhanced the management of                   Pandemic Prevention and Control, were introduced to guide the
important groups and key links, the investigation of suspected           Bank’s scientific and effective prevention and control to ensure
cases and close contacts, as well as the health monitoring of            smooth administrative operations. Besides, we improved the
employees. The Head Office monitored employees’ temperatures            prevention and control system for office space, and implemented
and other abnormal conditions every day and reported and                 the responsibilities at all levels. The Head Office’s building was
handled them according to the results in a timely way.                   closed for better management, including strict control of the
                                                                         entry and exit of staff, enhancement of the disinfection of the
                                                                         office area, rigorous management of the property, implementation
                                                                         of unified supply of meals but separate dining at work stations,
                                                                         and enhancement of inspections.



                                                                                                                                                     An emergency drill for pandemic control was conducted in the Head Office’s building




Strict access management was implemented in the Head Office’s           Lifts of the Head Office’s building were disinfected once a working hour
building                                                                 during the pandemic


Outlet management                                                        Publicity and education management

We made uniform arrangements of business hours of outlets                Timely announcements were made to ensure the public’s
in accordance with regulatory requirements, and made                     accurate understanding of the business information of the Bank.
announcements in a timely manner. In addition, we implemented            We took the initiative to spread the latest information of our fight
customer diversion measures to guide customers to use self-              against the pandemic through news media in real time. Besides,
service equipment, of which the cleaning and disinfection were           we positively responded to and kept close communication with                The Head Office made plans on Bank-wide pandemic prevention and             The Head Office arranged separate dining for employees
strengthened. Customers were also guided to complete health              superior departments, and reported the effectiveness of the                 control
information registration and body temperature testing after              pandemic prevention and control work. Moreover, we effectively
entering the outlets, where anti-pandemic supplies such as               communicated with staff and lead them to prevent the pandemic
masks and disinfectants were prepared for them.                          scientifically.




Beijing Branch strengthened pandemic prevention and control at outlets   Interviews with eight media outlets, including Beijing Daily, during the    Social distancing was maintained in the workplace                           Meals were under strict management by the Head Office
                                                                         pandemic
26   2020 Social Responsibility Report                                                                                                                                                                                           Hua Xia Bank Co., Limited      27




                                                                                                                          Improving poverty alleviation mechanisms
                                                                                                                         Improving organizational building for
                                                                                                                         targeted poverty alleviation                                           Increasing credit supply
                                                                                                                         The Bank established a poverty alleviation leading group               Giving full play to the guiding role of credit policies, the Bank
                                                                                                                         headed by Li Minji, Party Secretary and Chairman, and                  enhanced credit support for local agriculture, agricultural and
                                                                                                                         strengthened the Party committee’s top-level design for and           sideline product processing industries, and other characteristic
                                                                                                                         promotion of poverty alleviation work. The implementation plans        and advantageous industries in poverty-stricken areas,
                                                                                                                         were formulated, and objectives of poverty alleviation were            and adopted a variety of financial products and services to
                                                                                                                         clarified. Four mechanisms are in place to facilitate coordination,    guarantee financial support for poverty alleviation.
                                                                                                                         cooperation, support and guarantee for poverty alleviation.
                                                                                                                                                                                                Establishing a sound mechanism to prevent
                                                                                                                         Focusing on key areas                                                  the return to poverty

                     Contributing to the Decisive Victory                                                                The Bank coordinated bank-wide anti-poverty efforts to support
                                                                                                                         East-West collaboration for poverty alleviation and our paired
                                                                                                                         anti-poverty partners. Targeting key poverty-stricken counties
                                                                                                                                                                                                To effectively prevent those already lifted out of poverty from
                                                                                                                                                                                                retuning to poverty and those prone to be stricken by poverty
                                                                                                                                                                                                getting into poverty, and consolidate our poverty alleviation

                     in the Battle Against Poverty                                                                       and districts in Xinjiang, Inner Mongolia, Qinghai, Hebei,
                                                                                                                         etc., we issued the Notice on Promoting the Implementation
                                                                                                                         of Key Poverty Alleviation Projects in 2020, identified 11 key
                                                                                                                                                                                                achievements, in September 2020, we donated RMB 10 million
                                                                                                                                                                                                to set up the first industry fund aimed to prevent the return to
                                                                                                                                                                                                poverty, in addition to RMB 5 million donated by the People’s

                     Through Multiple Approaches                                                                         poverty alleviation projects, and concentrated our resources on
                                                                                                                         eradicating poverty in all dimensions.
                                                                                                                                                                                                Government of Fuping County.



                                                                                                                         Integrating poverty alleviation with rural revitalization
                    We resolutely followed the anti-poverty decisions and arrangements made by the Party
                    Central Committee, the State Council, regulatory authorities, as well as Party committees            We worked to ensure precise identification, assistance, and management, effective implementation of responsibilities, policies,
                                                                                                                         and work, and education, basic healthcare, and housing guarantees, and saw to it that the responsibility, policies, assistance, and
                    and governments at all levels, and fully leveraged our rich resources and strengths as
                                                                                                                         regulation should be retained after poverty elimination. We constantly improved and innovated in our financial service model for poverty
                    a financial institution to fight poverty. We introduced anti-poverty credit policies, and            alleviation, stimulated the development momentum of poverty-stricken areas, and enhanced the poor’s ability to help themselves out
                    innovated in our comprehensive financial products and services, striving to provide                  of poverty. We guided local villagers to consolidate the results of poverty alleviation with their own efforts and actively promoted the
                    financial support for China to win the fight against poverty and build a moderately                  integration of poverty alleviation with rural revitalization.
                    prosperous society in all respects.




                 In 2020

                        the Bank provided RMB                                 the Bank provided financial services for


                        840.2222
                        million for targeted poverty alleviation (including
                                                                              21,582
                                                                              registered poor people
                        credits, donations, and consumption-driven
                        poverty alleviation funds)


                        including RMB                                         for supporting


                        488.2832
                        million
                                                                              28
                                                                              projects of industry development for
                                                                              poverty alleviation


                        and RMB


                        298.7974
                        million of personal loans to the registered poor
                                                                                                                         Egg-laying Hens Poverty Alleviation Project of Hohhot Branch

                        population
28   2020 Social Responsibility Report                                                                                                                                                                                                                           Hua Xia Bank Co., Limited          29




 Innovative poverty alleviation approaches

Industry development for poverty alleviation
A “golden key” to poverty alleviation and a door leading to prosperity and happiness

We have developed various innovative poverty alleviation credit products based on local conditions, such as Fisher Loan for coastal
areas in eastern China, Farmer Loan for central China, Photovoltaic Loan for western China, and Flower Loan for Yunnan Province. These
loans targeting rural areas, rural enterprises, and farmers help facilitate the development of industries through credit granting, create
employment opportunities, and thus increase local incomes, effectively boosting the development of local industries that contribute to
poverty alleviation. In 2020, the Bank set up a special fund to provide credit support for western areas that partnered with Beijing for
poverty alleviation, offered special loans to local enterprises that could drive poverty alleviation and boost farmers’ incomes.



Education for poverty alleviation
Ending intergenerational poverty through education and securing a fair chance for poverty-stricken children                                                              A village-based anti-poverty officer assigned by Kunming Branch visited a local family to learn about their living conditions


We have invested in education in poverty-stricken areas for
                                                                                                                                            Employment for poverty alleviation
years; the cumulative investment during the recent three years                                                                              Stabilizing employment and encouraging hard work for a better life
exceeded RMB 11 million. We invested RMB 8.5 million in total
in building “Hua Xia Bank Kindergartens”, rebuilt or expanded                                                                             We have leveraged the stimulating role of finance in the development of industries
“Arele Primary School” and “Gujiang Bage High School”,                                                                                  and creation of jobs, and have granted corporate and personal loans to western
creating a new path to support basic education through poverty                                                                              areas that have partnered with Beijing for poverty alleviation to support regional
alleviation. In June 2020, we invested RMB 2.5 million in Yushu                                                                             industry development. In 2020, we set up public welfare-oriented positions in
Vocational and Technical School, Qinghai to develop a field                                                                                 designated areas with local governments, and gave preference to graduates from
training base, drinking water projects and to sponsor outstanding                                                                           poor families in recruitment. To further contribute to poverty alleviation through
teachers to pursue the master’s degree or advanced studies,                                                                                employment, we also issued loans to individuals and self-employed businesses.
                                                                                 Hua Xia Bank Kindergarten established by Urumqi Branch
benefiting more than 7,000 teachers and students.                                                                                           In June 2020, we invested RMB 10 million in setting up public welfare-oriented
                                                                                                                                            positions in Moyu and Luopu counties, through which we would create 2,000 jobs                                 Scan the QR code
                                                                                                                                            for registered poor families in the local area.                                                                to learn about the
                                                                                                                                                                                                                                                           poverty alleviation
                                                                                                                                            Consumer spending on products from poor areas                                                                  stories of poverty
                                                                                                                                            Replacing donations and assistance with consumer spending so that                                             alleviation cadres of
                                                                                                                                                                                                                                                              Hua Xia Bank
                                                                                                                                            everyone can contribute

                                                                                                                                            We actively supported the Smart Vending Machine for Products from Poor Areas,
                                                                                                                                            a key project initiated by the State Council Leading Group Office of Poverty
                                                                                                                                            Alleviation and Development. We issued an RMB 5 million credit loan to the
                                                                                                                                            project undertaker in 2020. Besides, we increased targeted procurement of
                                                                                                                                            agricultural and sideline products in poor areas. In 2020, we purchased RMB
                                                                                                                                            11.5572 million of goods from poor areas.

                                                                                                                                            Anti-poverty charity
                                                                                                                                            Gathering every drop of love for a loving world

                                                                                                                                            We increased donations to western areas, especially Moyu and Luopu in Hotan
                                                                                                                                            City. In 2020, we donated RMB 41.5844 million to poverty-stricken areas, an
                                                                                                                                            increase of RMB 28.6908 million over 2019. Among all the donations, RMB 15.8
                                                                                                                                            million went to Moyu and Luopu. The Party committee also mobilized employees
                                                                                                                                            to make donations through the official WeChat account of the Social Participation
                                                                                                                                            in Poverty Alleviation and Development of China, and the donations amounted to
A delegation led by Party Secretary and Chairman Li Minji inspected the Bank’s
poverty alleviation achievements in Xinwangzhuang Village, Miyun District, Beijing                                                          RMB 1.67 million.
30      2020 Social Responsibility Report                                                                                                                                                                                                                                 Hua Xia Bank Co., Limited   31




                                                                                                                                                                    Honors and Awards
 Enriching poverty alleviation practices
                                                                                                                                                                         The Bank was rated “Good” in the annual assessment of
                                                                                                                                                                         poverty alleviation performance by the Beijing State-owned
                                                                                                                                                                                                                                       Shijiazhuang Branch:
                                                                                                                                                                         Assets Supervision and Administration Commission (Beijing
                                                                                                                                                                                                                                         Shijiazhuang Branch was recognized as the “Most
                                                                                                                                                                         SASAC).
                                                                                                                                                                                                                                         Enthusiastic Public Welfare Partner” by Hebei Charitable
                                                                                                                                                                                                                                         Joint Foundation.

                                                                                                                                                                         Urumqi Branch:                                                  Shijiazhuang Branch’s village-based poverty alleviation
                                                                                                                                                                                                                                         team was recognized as the “Excellent Village-based
                                                                                                                                                                           The village-based work team of Urumqi Branch had
                                                                                                                                                                                                                                         Poverty Alleviation Team in 2019” by the Organization
                                                                                                                                                                           been rated “Excellent” in the performance appraisal of
                                                                                                                                                                                                                                         Department of the Hebei Provincial Committee of the
                                                                                                                                                                           Xinjiang Uygur Autonomous Region for three consecutive
                                                                                                                                                                                                                                         CPC and Hebei Provincial Poverty Alleviation and
                                                                                                                                                                           years.
                                                                                                                                                                                                                                         Development Office.
                                                                                                                                                                           Urumqi Branch’s poverty alleviation work in deep-poverty
                                                                                                                                                                           villages had been rated “First Class” in the assessment   Kunming Branch was recognized as the “Model Unit in
                                                                                                                                                                           of Xinjiang for two consecutive years.                      Poverty Alleviation in 2020” by the Party Committee and
                                                                                                                                                                                                                                       Government of Dali Bai Autonomous Prefecture, Yunnan
                                                                                                                                                                           Urumqi Branch was rated “Excellent” for all the four
                                                                                                                                                                                                                                       Province.
                                                                                                                                                                           major indicators in the 2019 performance appraisal
                                                                                                                                                                           of village-based teams, and won the honorary titles of
                                                                                                                                                                           Unit of Excellent Organization, Advanced Work Team,         Hohhot Branch won the honorary title of the Model Unit in
                                                                                                                                                                           Advanced Work Team Leader, and Advanced Work                Poverty Alleviation issued by the People’s Government of
                                                                                                                                                                           Team Members.                                               Ar Horqin Banner, Chifeng City.

                                                      Village-based cadres of Chengdu Branch sent school supplies to the kindergarten in Wangbuding Township
                                                                                                                                                                           Urumqi Branch was awarded the honorary titles
                                                                                                                                                                           of Advanced Enterprise for Promoting Industry               The Bank won the Targeted Poverty Alleviation Vanguard
     Case                                                                                                                                                                  Development and Advanced Grassroots Unit for                Award in the Third Top Pioneers List of Financial Poverty
                                                                                                                                                                           Contributing to Poverty Alleviation by Hotan City.          Alleviation 2020 selection campaign hosted by China.
                               Beijing Branch                                                                  Urumqi Branch                                                                                                           com.

     Since the launch of the partnership assistance program between Beijing          Since 2017, Urumqi Branch has successively invested more than RMB
     Branch and Xinwangzhuang Village, the Branch has effectively boosted            37.5 million in donations and operating expenses in Hotan, Xinjiang,                                                                              The Bank won the honorary title of Excellent Organization
     farmers’ income and wealth through such livelihood-benefiting projects as      and assigned 15 comrades to participate in the village-based poverty
                                                                                                                                                                                                                                       Unit in the picture collection campaign themed poverty
     joint Party building, industrial upgrading, charity donations, purchase of      alleviation work in the three extremely impoverished villages of Hotan City.
     self-produced agricultural products, and recruitment of college students        The Branch also launched the “Hua Xia Bank Huimin Supermarket”, “Hua                                                                           alleviation organized by Guangming.com.
     from poor families. The tomato greenhouse and understory fungus planting        Xia Bank Poverty Alleviation Coal Yard”, “Hua Xia Bank Poverty Alleviation
     area constructed under the aid of the branch increase the collective            Night Market”, and other livelihood-benefiting programs, which helped
     income of the village by at least RMB 60,000 per year. The newly built          1,142 poverty-stricken people from the three villages to get rid of poverty.
     hiking trails and the 1958 art district attract a large number of tourists to
     come for sightseeing and accommodation. Beijing Branch also helped the
     village design the “Xinwangzhuang” brand LOGO for agricultural products,
                                                                                                                                                                         Song Xiyuan from Shijiazhuang Branch was honored the          Gao Wenfeng from Shijiazhuang Branch was honored by
     increasing the added value of agricultural products.                                                                                                                Advanced Individual of Poverty Alleviation Collaboration in   the Organization Department of Hebei Provincial Party
                                                                                                                                                                         Beijing.                                                      Committee and Hebei Provincial Poverty Alleviation and
                           Shijiazhuang Branch                                                               Kunming Branch
                                                                                                                                                                                                                                       Development Office as the Excellent Member of Village-
     Many years in a roll, the village-based poverty alleviation team has been       In order to help Huanghua Village make new breakthroughs in developing              Ma Shuxin from Urumqi Branch won the honorary title of        based Teams for his contributions to poverty alleviation in
     helping Erdaozhuang Village, Xiazhuang Township, Fuping County,                 the collective economy, Kunming Branch invested RMB 100,000, which,                 Advanced Individual of Poverty Alleviation Collaboration in   Hebei Province in 2019.
     Baoding City. Song Xiyuan, the first secretary of the village-based work        along with the RMB 50,000 of subsidy that the village committee applied             Beijing issued by Beijing Poverty Alleviation and Support
     team, has become a member of the harmonious family. With the help               for from the organization department of the county Party committee, was
                                                                                                                                                                         Office.                                                       Li Yingchun from Kunming Branch was honored the
     of the work team, the entire village has established industries with local      invested in the ecological farm of the village. Through a “Party branch +
     characteristics, such as edible fungi, forest and fruit, photovoltaics, etc.,   cooperative + breeding base + farmer households” model, the investment                                                                           Outstanding Member of Village-based Poverty Alleviation
     and set up labor service posts, where people with labor ability can make        assists farmers to increase their income, and helps adjust the agricultural                                                                       Teams in 2020 and the Most Beautiful Poverty Alleviation
     money through physical labor and those unable to work can receive               industry structure and strengthen the collective economy. In the first year                                                                       Cadre.
     subsidies. The work team assisted the village committee to provide job          of its operation, the collective economy of the village achieved a profit of
     opportunities for 141 poor people.                                              more than RMB 20,000.
34   2020 Social Responsibility Report                                                                                                                                                                                                                                          Hua Xia Bank Co., Limited         35




     Promoting the Coordinated Development
                                                                                                                                                       Boosting cultural prosperity                                                                                 In 2020
                                                                                                                                                       To build Beijing into a national cultural center, the Bank has actively responded to the



     of the Beijing-Tianjin-Hebei Region                                                                                                                                                                                                                                                        22.9
                                                                                                                                                       financial needs of cultural and creative enterprises, contributing to the cultural boom in
                                                                                                                                                       the city.
                                                                                                                                                                                                                                                                    the Bank provided RMB


                                                                                                                                                                                                                                                                                               295
                                                                                                                                                            Ramping up financial services for cultural and creative enterprises
                                                                                                                                                                                                                                                                    billion of financing for              cultural
Positioned to be a major financial service provider for the Beijing-Tianjin-Hebei region,                                                                Continuing to implement the Time-Honored Brand Action Plan
we actively served Beijing’s drive to develop into a national political center and cultural
                                                                                                                                                                                                                                                                    and creative enterprises in Beijing
center, an international exchange center and technology innovation center and relocate                                                                   The Bank has launched seven featured financial products and offered comprehensive
its non-capital functions. We also increased financial support for the development of                                                                    financial services, boosting the development of these brands. The Bank signed a strategic
the Beijing Municipal Administrative Center and the Xiongan New Area, and for the                                                                        cooperation agreement with Beijing Wuyutai Tea Co., Ltd.

coordinated development of the Beijing-Tianjin-Hebei region.

                                                                                                    In 2020                                              Deepening the integrated development of culture and finance
 Serving the development of “One Core”

                                                                                                                              260.7
                                                                                                                                                         The Bank has launched the Hua Xia loan series for cultural parks in Beijing and become
As a “bank for Beijing”, we followed the city’s master plan for development, and increased                                                            one of the first batch of financial institutions with the intent to invest in risk compensation
the financial support for the construction of the city. We helped Beijing sharpen its edge          the Bank provided RMB                                to reward these enterprises in Beijing. Amid the pandemic, the Bank has issued ten
in technological innovation and cultural development, and promoted the economic                                                                          measures to help cultural MSEs reduce operating costs.
                                                                                                    billion of financing for projects in Beijing
transformation and development of the capital.
                                                                                                                                                                                                                                                                                   Scan the QR code
                                                                                                                                                                                                                                                                                 for more information
Promoting economic development                                                                                                                           Boosting the innovation-driven development of IP financing                                                                  about Hua Xia
                                                                                                    As of the end of 2020                                                                                                                                                           Bank’s policy on
The Bank continued to ramp up financial support for SOEs under Beijing SASAC, such                                                                                                                                                                                               financial services for
                                                                                                                                                         The Bank has successfully invested in the Action Plan for Supporting FIRST CAPITAL-



                                                                                                                                 31
                                                                                                                                                                                                                                                                                 cultural and creative
as the Shougang Group, Beijing Construction Engineering Group and BBMG Corporation                                                                       Capital Securities-Phase I Cultural Leases, making its contributions to the integrated                                       enterprises
Ltd. Specifically, targeted products were innovated in different areas, ranging from                                                                     development of Beijing’s culture and technology and building Beijing into the cultural
collectively-owned construction land, urban renewal, and financing during project                   the Bank had provided RMB             billion of     center of China.
operation period. The move has provided financial support for the construction of the               financing for small and micro enterprises
capital.                                                                                            in Beijing
                                                                                                                                                       Financing science, technology and innovation (STI)
To provide quality financial services for small and micro enterprises, we have settled in                                                                                                                                                                           In 2020
                                                                                                                                                       To build Beijing into the national STI center, the Bank has taken the initiative to integrate
the Beijing First Loan and Renewal Service Center and set up 18 financial service centers
targeting small and micro enterprises to provide them with a green channel to consult on                                                               into the Zhongguancun innovation ecosystem, continued to expand the service coverage,



                                                                                                                                                                                                                                                                                         48.7
and handle credit-related businesses. Since 2017, Hua Xia Bank has provided RMB 81.2                                                                   and propelled the transfer and commercialization of technological advancements, to
billion in credit support to 16,500 small and micro enterprises in the capital.                                                                        develop Beijing into a global STI leader.
                                                                                                                                                                                                                                                                    the Bank provided RMB                  billion


                                                                                                                                                                                                                                                                                       490
In 2020
                                                                                                                                                                    Supporting the development of technology enterprises                                            of financing for                 technology
the Bank signed strategic cooperation agreements with        1   government department,      5                                                            Establishing a platform         Intensifying cooperation           Innovating in services
                                          1 private enterprise
                                                                                                                                                                                                                                                                    enterprises in Beijing
enterprises under Beijing SASAC, and
                                                                                                                                                         We contacted                     We continued to do business       In cooperation with an
underwrote58 corporate bonds issued by local enterprises with an amount of RMB                                                                           Administrative Committee         with financing guarantee          intellectual property
61.4 billion, a year-on-year increase of 52%                                                                                                             of Zhongguancun Science          agencies such as Beijing          operations management
                                                                                                                                                         City (formerly known as          Zhongguancun Sci-tech             company, we launched the
                                                                                                                                                         Zhongguancun Haidian             Financing Guaranty Co.,           IPR Loan (Zhirongbao, or
                                                                                                                                                         Science Park), Beijing           Ltd., Beijing Investment and      Smart Loan) and Small Smart
                                                                                                                                                         Local Financial Supervision      Guaranty Corporation and          Loan, vigorously promoted
                                                                                                                                                         and Administration,              China National Investment         IPR pledges and loans,
                                                                                                                                                         Shenzhen Stock Exchange,         and Guaranty Corporation,         and explored ways toward
                                                                                                                                                         and Zhongguancun Listed          co-built the risk sharing         securitization of the collective
                                                                                                                                                         Companies Association,           mechanism, and adopted            IPR assets of Zhongguancun
                                                                                                                                                         and enhanced cooperation         proper and effective risk
                                                                                                                                                         with Haidian Financial           control measures to provide
                                                                                                                                                         Service Platform                 strong financing support for
The Bank signed the strategic cooperation agreement with Beijing Financial Holdings Group                                                                                                 high-tech enterprises




A Dedicated Hua Xia with Craftsmanship             A Philanthropic Hua Xia with Inclusive Finance         A Sincere Hua Xia with Innovative Services   An Eco-friendly Hua Xia Through Green Development          A Prudent Hua Xia with Compliance            A People-centered Hua Xia Pursuing Happiness for All
36      2020 Social Responsibility Report                                                                                                                                                                                                                                           Hua Xia Bank Co., Limited             37




 Supporting the development of the Beijing Municipal Administrative Center and Xiongan New Area
With the focus of helping Beijing relocate its non-capital functions, the Bank has considerably promoted the development of the Beijing
Municipal Administrative Center and Xiongan New Area, contributing to the high-quality coordinated development of the Beijing-Tianjin-
Hebei region.

Supporting the development of the Beijing Municipal Administrative Center

Responding to national and municipal development strategies, the Bank has provided higher-level financial services for the
government and enterprises in the Beijing Municipal Administrative Center for win-win development. In 2020, we opened a branch in
the administrative center. The branch would provide premium financial services for infrastructure construction, green finance, industry
transfer, STI, culture & creativity and personal finance.



          Supporting the           The Bank increased financing for key projects, such as comprehensive transportation hubs and rail transit
          development of
     integrated transportation     system, to speed up the development of integrated transportation.


      Supporting ecological        The Bank continued to advance its financing projects for air pollution control in the Beijing-Tianjin-Hebei
         conservation              Region, and introduced green finance bonds to finance green projects in the administrative center.

         Improving living          The Bank increased financing for the reconstruction of bungalow neighborhoods and run-down areas in
           standards               Tongzhou, to improve living conditions.

     Promoting infrastructure      The Bank actively financed the construction of Yunhe Business District, National Cybersecurity Industrial                                                                             Service hall of Xiongan Branch
         construction
                                   Park, Universal Beijing Resort, as well as other key infrastructure projects.


                                                                                                                                                                                              1                                                                            3   4
                                                                                                                                                             The Bank set up more outlets          The Bank offered preferential          The Bank increased direct                The Bank supported Xiongan
Supporting the development of Xiongan New Area                                                                                                               and ATMs to form a more               pricing for key projects engaged       financing, and enhanced                  New Area to build a “green, low-
                                                                                                                                                             rational layout in Xiongan New        in infrastructure construction,        support for debt-based                   carbon, intelligent, efficient, eco-
We have formulated the Implementation Plan for Providing Financial Services for the Innovation-driven Development of Xiongan New                             Area.                                 environmental governance,              financial instruments issued             friendly and livable” city. We
                                                                                                                                                                                                   industry transfer and undertaking.     by local large enterprises               offered international sub-loans,
Area. Our financial services for Xiongan New Area are diverse, covering such areas as infrastructure construction, environmental                                                                                                          such as China Xiongan                    green credit and other products
governance, industry transfer and undertaking. In 2020, our Xiongan Branch was officially opened and signed strategic cooperation                                                                                                         Group.                                   and services, and lent more to
                                                                                                                                                                                                               2
                                                                                                                                                                                                                                                                                   projects like the Beijing-Tianjin-
agreements with six local key enterprises to guarantee better financial services for Xiongan New Area.
                                                                                                                                                                                                                                                                                   Hebei Air Pollution Prevention
                                                                                                                                                                                                                                                                                   and Financing Innovation .

                                                                                                                                                                                                                                                                                   The Bank actively supported the
                                                                                                                                                                                         5
                                                                                                                                                                                                                                                                                   development of micro, small and
                                                                                                                                                          The Bank accelerated the            The Bank helped build a service-
                                                                                                                                                                                                                                                                               7   medium-sized enterprises. Apart
                                                                                                                                                          development of online               oriented government. Following
                                                                                                                                                                                                                                                                                   from introducing more innovative
                                                                                                                                                          financial services for supply       the development trend of “Internet-
                                                                                                                                                                                                                                                                                   products and models, the Bank
                                                                                                                                                          chain based on blockchain           based governance”, the Bank
                                                                                                                                                                                                                                                                                   sped up the development of
                                                                                                                                                          technology, to form an              continued to improve IT services
                                                                                                                                                                                                                                                                                   online business, leaned credit to
                                                                                                                                                          industry ecosystem featuring        for government finance, social
                                                                                                                                                                                                                                                                                   them, and continuously improved
                                                                                                                                                          positive interlay, sustainable      security, housing and urban-rural
                                                                                                                                                                                                                                                                                   service efficiency for them with
                                                                                                                                                          development, and mutual             development, etc.
                                                                                                                                                                                                                   6
                                                                                                                                                                                                                                                                                   the help of FinTech.
                                                                                                                                                          benefits, boosting the
                                                                                                                                                          construction of Xiongan’s                                                                                     The Bank developed a scene-based omni-
                                                                                                                                                          “smart city brain project”.                                                                                  channel service ecosystem combining
                                                                                                                                                                                                                                                                  8      our app, and provided local residents with
                                                                                                                                                                                                                                                                         high-quality personal banking services
                                                                                                                                                                                                                                                                         including wealth management, debit cards
                                                                                                                                                                                                                                                                         with the coordinated development of the
                                                                                                                                                                                                                                                                         Beijing-Tianjin-Hebei region as the theme,
                                                                                                                                                                                                                                                                         ETC service, etc.


                                                                                                                                                                                      Eight main measures to support the development of Xiongan New Area
Opening ceremony of Xiongan Branch




A Dedicated Hua Xia with Craftsmanship             A Philanthropic Hua Xia with Inclusive Finance           A Sincere Hua Xia with Innovative Services   An Eco-friendly Hua Xia Through Green Development             A Prudent Hua Xia with Compliance       A People-centered Hua Xia Pursuing Happiness for All
38     2020 Social Responsibility Report                                                                                                                                                                                                                                Hua Xia Bank Co., Limited         39




                                                                                                     In 2020
  Contribution to the coordinated development of the
  Beijing-Tianjin-Hebei region

 The Bank established a leading group on the development of the Beijing-Tianjin-Hebei                the Bank financed RMB    65.6
                                                                                                     billion for key projects related to the
 region. Based on vertical and horizontal collaboration and coordination between the Head
 Office and branches, we increased resource input and policy support for key projects in             coordinated development of the Beijing-

 the region, to substantially improve our contribution to the coordinated development of             Tianjin-Hebei region

 the Beijing-Tianjin-Hebei region.


Promoting the development of key functional areas of the Beijing-Tianjin-Hebei region
                                                                                                     As of the end of 2020
     Beijing Daxing International Airport Economic Zone



                                                                                                                            160
     Shijiazhuang Branch signed a strategic cooperation agreement with Langfang Airport
     Economic Zone on providing financial services for Langfang Airport Economic Zone,
                                                                                                     the Bank had opened                   banking
     mainly the Airport Service Center, and Beijing Daxing International Airport Bonded Area
     (Hebei) Phase I project. By now, RMB 200 million of loans have been issued.                     outlets in the Beijing-Tianjin-Hebei region




     Tianjin Binhai New Area

     The Bank offered credit loans of RMB 1.62 billion to a company in Tianjin Binhai New Area                                                          The Bank presented China Renewable Energy and Battery Energy Storage Promotion Project in the New Product, New Technology, New Applicaiton
     and issued ultra-short bonds of RMB 500 million for the company. Additionally, the Bank                                                            Scenario Promotion Conference of Beijing SASAC
     independently underwritten and wholly invested in China’s first debt financing program of
     RMB 1 billion under the theme of “Coordinated Development of the Beijing-Tianjin-Hebei                                                            Supporting the integration of public services in the Beijing-Tianjin-Hebei region                   As of the end of 2020
     Region”, which was issued by a company in Tianjin Economic-Technological Development
     Zone .                                                                                                                                             The Bank actively built an integrated financial service circle for the Beijing-Tianjin-Hebei
                                                                                                                                                        region, with integrated personal financial services concerning payment, rate discounts              the Bank had issued


     Beijing-Hebei Caofeidian Co-development Demonstration Zone
                                                                                                                                                        and lending and financing. Moreover, the Bank continued to upgrade the debit card
                                                                                                                                                        themed on the coordinated development of the Beijing-Tianjin-Hebei region, enabling its
                                                                                                                                                        holders to use it to take public transportation commuting between the three places.
                                                                                                                                                                                                                                                            2,377,300                          debit cards

                                                                                                                                                                                                                                                            themed on the coordinated development
     The Bank actively communicated with the Zone Management Committee, extended credit
     to Caofeidian State Control Investment Group Co., Ltd., and enhanced financial service for
                                                                                                                                                                                                                                                            of the Beijing-Tianjin-Hebei region
     the Zone and its resident enterprises.
                                                                                                                                                        Supporting the ecological governance and restoration of the Beijing-Tianjin-Hebei
                                                                                                                                                        Region

     Zhangjiakou-Chengde Ecological Function Zone

     The Bank granted a credit loan of RMB 1.38 billion to a wind energy company in Zhangbei
                                                                                                                                                        Leveraging our unique strengths in green finance, the Bank further strengthened
                                                                                                                                                        cooperation with international financial organizations such as the World Bank, and
                                                                                                                                                                                                                                                            the Bank had financed    28        projects
                                                                                                                                                                                                                                                            in the Innovative Financing Project for Air
                                                                                                                                                        introduced low-cost funds such as sub-loans of the World Bank and foreign government
     County and a new energy company in Hebei, supporting the Zhangjiakou Wind Power                                                                                                                                                                        Pollution Control in the Beijing-Tianjin-
     (Clean Energy) project.                                                                                                                            loans to support energy conservation, emission reduction, and clean-energy development
                                                                                                                                                                                                                                                            Hebei region
                                                                                                                                                        in the Beijing-Tianjin-Hebei region.

                                                                                                                                                        In 2020


                                                                                                                                                        the green loan balance of our branches in
                                                                                                                                                                                                            an increase of RMB   14.436                     an increase of   61     % from the previous


                                                                                                                                                              37.901
                                                                                                                                                        the Beijing-Tianjin-Hebei region reached
                                                                                                                                                                                                            billion of the green loans                      year
                                                                                                                                                        RMB                           billion




A Dedicated Hua Xia with Craftsmanship              A Philanthropic Hua Xia with Inclusive Finance         A Sincere Hua Xia with Innovative Services   An Eco-friendly Hua Xia Through Green Development         A Prudent Hua Xia with Compliance    A People-centered Hua Xia Pursuing Happiness for All
40      2020 Social Responsibility Report                                                                                                                                                                                                                                               Hua Xia Bank Co., Limited        41




     Implementing State-level Regional                                                                                                                                                                                                                                      As of the end of 2020
                                                                                                                                                                         Supporting the development of the Guangdong-Hong
     Development Strategies                                                                                                                                              Kong-Macao Greater Bay Area
                                                                                                                                                                        The Bank optimized local branches’ cross-border financial service system, and vigorously           balance of loans for the Greater Bay Area


                                                                                                                                                                                                                                                                                               194.2
 The Bank has developed the regional development strategy based on “Three Zones, Two Lines, Multiple Outlets”. Leveraging our                                         developed a portfolio of specialty products, providing comprehensive financial services
 expertise, the Bank formulated credit, investment and financing policies, and motivated branches to serve the mainstream economy                                       for the Greater Bay Area.                                                                           had reached RMB                        billion,


                                                                                                                                                                                                                                                                                                 28.2
 based on local situation, promoting the coordinated and high-quality regional economic development.

                                                                                                                                                                                                                                                                            a year-on-year increase of                 %

                                                                                                                                                                                 Guangzhou Branch                               Shenzhen Branch

                                                                                                                                                                            Giving full play to the advantages of           Leveraging its advantages brought
                                                                                                                                                                            Guangzhou as a national central city            by the abundant leading FinTech
                                                                                                                                                                            and comprehensive transport hub,                companies and financial resources,
                                                                                                                                                                            and supporting the development of               and flexible policies, accelerating
                                                                                                                                                                            infrastructure, strategic emerging              the development of technology and
                                                                                                                                                                            industry, advanced manufacturing and            finance, and building an innovation
                                                                                                                                                                            modern service industry                         base




                                                                                                                                                                                                           Hong Kong Branch
                                                                                                                                                                            Taking advantage of Hong Kong’s position as an international financial and trade center
                                                                                                                                                                            and global offshore RMB business hub, strengthening trade finance and innovation-
The meeting of our branches in the Yangtze River Delta on integrated development led by Li Minji, Party Secretary and Chairman of Hua Xia Bank                              driven development, and establishing the platforms for overseas customer service,
                                                                                                                                                                            investment, financing and trade

  Advancing the integration of the Yangtze                                                    Promoting the development of the
  River Delta                                                                                 Yangtze River Economic Belt
                                                                                                                                                                          Case
The Bank deepened the mechanism and capacity building for                                    The Bank closely followed the development trend of the Yangtze
integrated and coordinated development. We strengthened                                      River Economic Belt, and provided premium financial services for              Providing high-quality financial services for enterprises in the Greater
research on regional policies, seized market opportunities                                   infrastructure construction in areas essential to public wellbeing
                                                                                                                                                                           Bay Area through cross-border cooperation

and allocated more credit loans to advance the integrated                                    and industrial upgrade, to inject impetus into regional high-quality
                                                                                                                                                                           Our Hong Kong Branch issued USD 50 million of bilateral loans to a company
development of the Yangtze River Delta.                                                      development.                                                                  and signed a strategic cooperation agreement with the company on corporate
                                                                                                                                                                           account, financing, product diversification, and internet platform. The two sides
     Case
                                                                                                                                                                           aimed to jointly create high-quality financial services.
                                                                                                Case
     Supporting the construction of key projects in the
     Yangtze River Delta region
                                                                                                 Aiding flood control and promoting the infrastructure
                                                                                                 construction of the Yangtze River Economic Belt
      Shanghai Branch               Hangzhou Branch                 Nanjing Branch
     Shanghai Branch provided      Hangzhou Branch signed         Nanjing Branch had
                                                                                                 The Bank lent RMB 100 million to a company in Yu 'an
     comprehensive financial       a strategic cooperation        financed more than
     services for major projects   agreement with the             RMB 100 billion for            District, Lu 'an City, Anhui Province, for river dredging,
     involving an airport group    Hangzhou Municipal             key projects, such             pipeline network inspection and restoration, post-flood
     and a new energy vehicle      Government, according          as the Ecological              reconstruction projects, etc., to help local residents return
     company, advancing the        to which Hangzhou              Restoration Project of         to normal life as soon as possible.
     integrated development        Branch will provide RMB        Dazong Lake.
     of financial services for     120 billion of financing for
     key companies in the          outstanding enterprises
     Yangtze River Delta.          and key projects in
                                   Hangzhou in the next
                                   three years.




A Dedicated Hua Xia with Craftsmanship                             A Philanthropic Hua Xia with Inclusive Finance          A Sincere Hua Xia with Innovative Services   An Eco-friendly Hua Xia Through Green Development       A Prudent Hua Xia with Compliance      A People-centered Hua Xia Pursuing Happiness for All
42     2020 Social Responsibility Report                                                                                                                                                                                                                                 Hua Xia Bank Co., Limited        43




      Promoting Industrial Transformation                                                                                                                    Serving China’s Opening-up
      and Upgrade                                                                                                                                         Under the new development pattern of “dual circulation”, the Bank made active contributions to stabilizing foreign
                                                                                                                                                          investment, trade and achieving a higher level of opening-up by providing cross-border financial support for the Belt
                                                                                                                                                          and Road Initiative projects, the going global campaign of Chinese enterprises and the development of free trade
In line with national policies on industrial upgrade, the Bank actively engaged in the reform of state-owned enterprises
                                                                                                                                                          areas.
(SOEs). This move contributed to the upgrade of traditional industries, the development of strategic emerging
industries, and the high-quality growth of the real economy.
                                                                                                                                                                Main measures for stabilizing foreign investment and trade



                                                                                                                                                                Setting up a taskforce                                                Implementing facilitation policies
                                                                                                                                                                The Bank developed the Online Cross-border                            The Bank implemented the Circular of the State
                                                                                                                                                                Financial Service Guide, mobilized the headquarters,                  Administration of Foreign Exchange on Optimizing
                                                                                                                                                                branches, and sub-branches to collaborate with                        Foreign Exchange Administration to Support
                                                                                                                                                                each other, and opened green channels to ensure                       Foreign-related Business Growth and other policies
                                                                                                                                                                the arrival of imported anti-pandemic materials and                   to improve foreign exchange service efficiency and
                                                                                                                                                                overseas donations.                                                   guard against cross-border capital flow risks.




                                                                                                                                                                Innovative services                                                   Promoting online services
                                                                                                                                                                The Bank provided integrated financial services                       The Bank launched online services such as
                                                                                                                                                                for enterprises, including the whole-process                          supply chain cloud account, supply chain online
                                                                                                                                                                foreign exchange policy consultation, cross-border                    contract signing and blockchain forfaiting to reduce
                                                                                                                                                                guarantee/standby letter of credit (SBLC), etc.                       customers’ travel costs.
Changzhou Branch visited an enterprise to investigate the R&D in the field of new materials



 Supporting the transformation of traditional industries                         Supporting strategic emerging industries
                                                                                                                                                            Case
Guided by relevant industrial policies and the distribution of                  The Bank actively increased financial support for key industries
various industries, the Bank promoted the mutually beneficial and               and areas, contributing to the rapid development of high-                    Launching the green channel for cross-border business
integrated development of the financial industry and traditional                end equipment manufacturing, new-energy vehicles and other
industries, thus facilitating the transformation and upgrade of                 strategic emerging industries. As of the end of 2020, the balance            Shortly after the COVID-19 outbreak, the Bank launched the green channel for cross-border business and simplified the process
traditional industries.                                                         of loans to support strategic emerging industries was RMB 79.689             for import purchase of foreign exchange, facilitating customers to import anti-coronavirus materials and accept overseas
                                                                                                                                                             donations.
                                                                                billion.
     Case
                                                                                                                                                                       Guangzhou Branch                                Nanchang Branch                                  SuzhouBranch
      Boosting the transformation and upgrade of a                                Case
      traditional coal enterprise                                                  Issuing China’s first Asset-Backed Medium-Term
                                                                                                                                                             In response to a customer’s needs for           In spite of traffic control and other         The branch was able to complete
                                                                                   Note (ABN) in general aviation                                            importing anti-coronavirus materials, the        difficulties, the branch settled USD 80       the processes of foreign exchange
      The Bank used on-lending funds to support the                                                                                                          branch opened a USD 13 million letter            million of foreign debt for a customer.       purchase, payment and settlement within
      construction of a photovoltaic power generation project                      The Bank worked to advance the ABN project of an                          of credit and reduced handling fees for                                                        20 minutes, and helped an enterprise
      in Changzhi County by a subsidiary of a mining group                         aviation company to promote the securitization of accounts                customers.                                                                                     source infrared ear thermometers
      in Shanxi to facilitate local energy transformation. After                   receivable, make good use of idle assets and speed up the                                                                                                                and other protective equipment from
      completion, the project can generate 23,471,400 kWh                          company’s development.                                                                                                                                                  American manufacturers.
      annually, saving 7,763.3 tons of standard coal.




A Dedicated Hua Xia with Craftsmanship               A Philanthropic Hua Xia with Inclusive Finance          A Sincere Hua Xia with Innovative Services   An Eco-friendly Hua Xia Through Green Development      A Prudent Hua Xia with Compliance      A People-centered Hua Xia Pursuing Happiness for All
44    2020 Social Responsibility Report                                                                                                                                                                                                                            Hua Xia Bank Co., Limited       45




                                                                                                As of the end of 2020
 Supporting the Belt and Road Initiative                                                                                                            Developing cross-border financial services
The Bank actively supported the Belt and Road Initiative (BRI) and expanded its                                                                    The Bank innovated trade finance products, strengthened international cooperation, and
correspondent bank network in partner markets. With innovation in trade finance
products, debt financing instruments and inter-bank investment, the Bank helped promote
infrastructure construction and market development in BRI countries.
                                                                                                the Bank had established     637
                                                                                                correspondent banks in BRI markets,
                                                                                                                                                   supported the internationalization of Renminbi, providing reliable financial support for the
                                                                                                                                                   going global campaign of Chinese enterprises.



     Case

     Supporting Chongqing’s drive to develop into a pioneer of inland
                                                                                                accounting for   53   % of all correspondent
                                                                                                                                                           Expanding        The Bank expanded its correspondent bank network at home and abroad, enhanced communication and
     opening-up in China                                                                        banks of the Bank
                                                                                                                                                          channels for      cooperation with international peer banks, and provided customers with local and foreign currency integrated
                                                                                                                                                         global service     trade financial services. As of the end of 2020, the Bank had set up 1,206 correspondent banks at home and
     Chongqing Branch has strongly supported the Sino-Singapore (Chongqing)                                                                                 delivery        abroad in 321 cities of 101 countries and regions on all five continents of the world.
     Demonstration. It helped customers to list on the Singapore Exchange, promoted
     cross-border green bond and RMB capital pool projects, and provided new
     alternatives of financing channels.                                                                                                                    The Bank actively promoted credit insurance financing, international factoring, FTZ pledge financing
                                                                                                                                                                                                                                                                               Innovating
                                                                                                                                                            loans, increased support for exporters, and reduced financing costs of Chinese-invested enterprises.
                                                                                                                                                                                                                                                                             trade finance
                                                                                                                                                            Moreover, the Bank realized online scenario-based application of supply chain financial services, strongly          products
                                                                                                As of the end of 2020
 Supporting the development of Free Trade Zones                                                                                                             supporting the development of MSMEs.




                                                                                                                             30
The Bank ramped up efforts to support the development of Free Trade Zones (FTZs).
We set up institutions, launched products and leveraged the advantages of free trade                                                                                        The Bank continued to advance RMB internationalization with four product lines, i.e., cross-border account
accounts in cross-border direct investment and cross-border financing, to meet the              the Bank had established               service                              services, cross-border settlement products, cross-border financing products, and capital projects. We aimed
                                                                                                                                                           Supporting
financing needs of multinational corporations, overseas institutions and Chinese-invested       outlets in 21 FTZs across the country                       Renminbi        to facilitate cross-border settlement and financing businesses using Renminbi and allow customers to benefit
                                                                                                                                                       internationalization from RMB settlement facilitation policies. As of the end of 2020, the Bank had handled the cross-border RMB
enterprises and help promote the reform of FTZs.
                                                                                                                                                                            business of RMB 46.3 billion.




A Dedicated Hua Xia with Craftsmanship         A Philanthropic Hua Xia with Inclusive Finance         A Sincere Hua Xia with Innovative Services   An Eco-friendly Hua Xia Through Green Development        A Prudent Hua Xia with Compliance    A People-centered Hua Xia Pursuing Happiness for All
46   2020 Social Responsibility Report                                                                                                                                                                                                          Hua Xia Bank Co., Limited       47




A Dedicated Hua Xia with Craftsmanship   A Philanthropic Hua Xia with Inclusive Finance   A Sincere Hua Xia with Innovative Services   An Eco-friendly Hua Xia Through Green Development   A Prudent Hua Xia with Compliance   A People-centered Hua Xia Pursuing Happiness for All
48   2020 Social Responsibility Report                                                                                                                                                                                                                             Hua Xia Bank Co., Limited       49




                                                                                                 As of the end of 2020
                                                                                                                                                   Innovating in financial products and services
     Promoting the Growth of MSEs                                                                                                                  With FinTech empowerment, the Bank optimized the online service system to meet MSEs’ financing and development needs in a more
                                                                                                                                                   flexible and convenient way.
                                                                                                 balance of loans to MSEs: RMB
The Bank has met all supervision indicators for small and micro enterprises for 11
consecutive years. The Bank took the initiative to meet the financial needs of SMEs and
improved its measures for ensuring stability in the six key areas: employment, financial         456.412                      billion
                                                                                                                                                   Enhancing online financial services

                                                                                                                                                                                                          Enhancing the efficiency of
operations, foreign trade, foreign investment, domestic investment, and expectations. We                                                                Strengthening risk control                              tax payment                                 Improving business efficiency
                                                                                                 loans to MSEs increased by RMB



                                                                                                 60.024
developed comprehensive financial service solutions for MSEs, lent more to more MSEs
with improved services and at less cost.                                                                                                             The Bank accelerated the construction             The Bank optimized the new-generation             The Bank formulated the administrative
                                                                                                                         billion                     of the independent risk control model for         Yinguantong tax and fee e-payment                 measures and implementation rules for
                                                                                                                                                     online lending. We formulated a series            system, which allows the payment of               the credit decision engine platform. We
                                                                                                                                                     of online lending systems, such as                customs taxes in real time, saves the             also promoted the application of the
                                                                                                                                                     the administrative measures for online            manual operational cost of operating              electronic credit contract management
                                                                                                                                                     lending, rules on the management and              centers and improves the efficiency of            system for small businesses, improving
                                  The Bank set up special divisions for inclusive finance                                                            implementation of the Internet loan risk          tax collection.                                   service efficiency with the help of
                                                                                                                                                     control model, etc.                                                                                 technologies.
                                  service in key branches. We enlarged the empowering
                                  role of FinTech, coordinated resource allocation and
                                  ramped up efforts to build a unified online lending                                                                     Optimizing the payment
                                                                                                                                                             financing system                            Providing convenient services
                                  management platform.

                                                                                                                                                     The Bank developed the payment                    The Bank opened an official WeChat
                                                                                                                                                     financing APP for MSEs to provide                 account focusing on inclusive finance
                                                                                                                                                     more convenient financial services for            services, which allows such self-service
                                                                                                    The Bank formulated the 2020 Guiding             customers. The APP has such new                   functions such as credit application,
The Bank increased policy
                                                                                                    Opinions on Credit Access and Risk               functions as customer credit inquiry              loan application, automatic account
support for reviewing loan
                                                         An improved
                                                                                                                                                     and online authorization for external             registration, loan repayment, online
                                                        service system                              Management of Inclusive Finance. The
applications, especially                                                                                                                             data query, further improving the user            property valuation and other services.
                                                                                                    Bank maintained strict management                experience.
single applications for no
                                           A sound                           Strengthening          of “customers, guarantees, regions,
more than RMB 10 million by
                                          long-term                          risk prevention        products, platforms, and quotas”;
private MSEs. The Bank also
                                         mechanism         The Bank’s
                                                                               and control          and fostered a normalized risk
optimized the fault tolerance                           inclusive finance
                                                             system                                 check mechanism capable of online
and correcting mechanism
                                                                                                    monitoring, special examinations,
for business innovation.
                                               Enhancing                 A sound
                                                                                                    cross-checks, and special assessment.
                                               business               credit system                 In addition, the Bank propelled the
                                              innovation                                            application of the internal review system
                                                                                                    for retailing in the whole process of risk
                                                                                                    control, and employed both the human
                                                                                                    and automated risk control models.




 The Bank strengthened innovation of products, technology,                 The Bank promoted cooperation
 models and other aspects. Moreover, the Bank interacted                   with taxation, businesses, insurance
 with relevant management and information systems of core                  and guarantee organizations.
 enterprises and government departments, and provided more
 efficient financing services for upstream and downstream MSEs.




A Dedicated Hua Xia with Craftsmanship          A Philanthropic Hua Xia with Inclusive Finance        A Sincere Hua Xia with Innovative Services   An Eco-friendly Hua Xia Through Green Development      A Prudent Hua Xia with Compliance       A People-centered Hua Xia Pursuing Happiness for All
50   2020 Social Responsibility Report                                                                                                                                                                                                                                                                  Hua Xia Bank Co., Limited         51




                                                                                                                                                   Addressing financing difficulties for MSEs
                                                                                                                                                  The Bank spared no effort to ensuring stability and security on six fronts. The lending to MSEs maintained a relatively high growth rate,
                                                                                                                                                  supporting enterprises’ resumption of work and production.




                                                L o g i s t i c s                       L o a n



                House Loan Express 5.0                                                          Loan Products Based on the                        Guangzhou Branch took the initiative to understand enterprises’ needs during the pandemic
      The Bank offered medium- and long-                                                        Annual Review
      term loans for MSEs with the financing                                                    The Bank reduced the costs for renewing
      period of up to 30 years.                                                                 loans for customers, the costs of
                                                                                                refinancing and the time of business                                                                                                                                                       As of the end of 2020
                                                                                                lending, and automatically re-lended to
                                                               A diversified                    enterprises without signing a new loan              Improving services and
                                                                                                                                                                                                                                             Enhancing loan renewal services




                                                                                                                                                                                                                  Five countermeasures
                                                                                                                                                                                          Five support measures
                                                                                                                                                    connection with customers
                                                                 product                        contract and exempted them from paying
                                                                                                                                                                                                                                                                                           balance of loans to MSEs with no more
                                                                                                back the principal within five years, thus
                                                                 system                                                                             Opening an express service channel                                                       Implementing deferral on loan repayment
                                                                                                                                                                                                                                                                                           than RMB 10 million each increased by


                                                                                                                                                                                                                                                                                            26.688
                                                                                                effectively eliminating customers’ sore
                                                                                                spots caused by the turnover of funds.              Innovating in products and services                                                      Providing Work Resumption Loans
                                                                                                                                                                                                                                                                                           RMB                             billion from
        E Loan for Livelihood & E Loan                                                          Loan Renewal without                                Reducing financing costs                                                                 Launching Reliable Loans
                                                                                                                                                                                                                                                                                           the beginning of the year, an increase of


                                                                                                                                                                                                                                                                                           26.65 14.61
                      for Foreign Trade                                                         Repayment of Principal

                                                                                                                                                                                                                                                                                                               %,
                                                                                                                                                    Optimizing online services                                                               Enhancing exclusive services
      The Bank cooperated with a guarantee                   Logistics Loan                     The Bank effectively helped MSEs get
      company in Beijing to develop and                                                         rid of liquidity risks and exempted them
                                                 For logistics MSEs, such as consignees,                                                                                                                                                                                                   percentage points higher than the growth
      launch financial products such as E                                                       from “repaying the existing loan before
                                                 shippers, logistics companies and self-
      Loan for Livelihood and E Loan for                                                        applying for a new loan”.                                                                                                                                                                 rate of the Bank’s loans
                                                 employed drivers, the Bank offered small
      Foreign Trade to provide considerate
      services for Beijing’s retailing
                                                 credit loans to help them pay for logistics,                                                       Case
                                                 transportation, etc. upon application
      MSEs (e.g., catering companies,
                                                 and allow them to pay back whenever                                                                 Reliable Loans bring timely help to MSEs
      convenience stores, delivery
                                                 they can, and provided flexible financial
      companies) and the foreign trade
                                                 services for the logistics sector.                                                                  In response to the COVID-19 pandemic, Xiamen Branch launched “Reliable Loans
      enterprises engaged in the Belt and
      Road Initiative.                                                                                                                               Salary Keeper”, a special loan for eligible MSEs and self-employed individuals
                                                                                                                                                     affected by the COVID-19, to pay salaries and help them fight against the
                                                                                                                                                     pandemic.




A Dedicated Hua Xia with Craftsmanship         A Philanthropic Hua Xia with Inclusive Finance        A Sincere Hua Xia with Innovative Services   An Eco-friendly Hua Xia Through Green Development                                      A Prudent Hua Xia with Compliance             A People-centered Hua Xia Pursuing Happiness for All
52    2020 Social Responsibility Report                                                                                                                                                                                                                         Hua Xia Bank Co., Limited       53




     Case                                                                                                                                                                                                                                          In 2020

     Smoothening the “last mile” for financial services                                                                                          Supporting Private Enterprise
                                                                                                                                                                                                                                                   the Bank cumulatively reduced or exempted
     Wenzhou Branch actively participated in the campaign of “100 Banks Entering                                                                                                                                                                  service fees for private enterprises by
                                                                                                                                                The Bank earnestly implemented the major decisions and deployments of the CPC


                                                                                                                                                                                                                                                    175.2954
     100,000 Enterprises”. The branch increased field visits to find out the enterprise
                                                                                                                                                Central Committee, the State Council, and regulators on supporting private enterprises
     demands, and formulated targeted financial service solutions. As of the end
                                                                                                                                                and the private sector. We ramped up efforts to improve services for private enterprises           RMB
     of 2020, via the above campaign and in delivering services for “development,
     decision-making and policy implementation”, the branch organized 1,068 field                                                              and further cut some fees to lighten the burden on private enterprises and support their           million, an increase of RMB


                                                                                                                                                                                                                                                   122.99
     visits and helped 739 private enterprises and MSEs with financing of RMB 3.948                                                             development.
     billion.                                                                                                                                                                                                                                                               million from the

                                                                                                                                                  Case                                                                                             previous year

     Case
                                                                                                                                                   Helping enterprises that have applied for the loan for the first time
     Helping MSEs out of difficulties through Work Resumption Loans
                                                                                                                                                   Due to the sudden outbreak of the COVID-19, a technology company in Shenzhen
     Shenzhen Branch issued RMB 10 million Work Resumption Loan for purchase of                                                                    found itself short of working capital. Shenzhen Branch simplified the procedures
     raw materials, intelligent upgrading of the production line, and recruitment of R&D                                                           and innovatively launched “Easy First Loan”, which provides customized financial
     personnel, effectively alleviating a high-tech enterprise’s financial pressure and
                                                                                                                                                   services for enterprises that have applied for the loan for the first time. The credit
     tackling difficulties.
                                                                                                                                                   amount was determined and verified in no time, and the customer was offered a
                                                                                                                                                   preferential interest rate.




                                                                                                         Scan the QR code for
                                                                                                         more information about
                                                                                                          our Hua Xia Bank’s
                                                                                                         Financing Scheme for
                                                                                                                  SMEs
 Shenzhen Branch helped a company resume production




 Kunming Branch financed small flower companies                                                                                                 Shaoxing Branch provided customized financial services for a printing and dyeing enterprise




A Dedicated Hua Xia with Craftsmanship            A Philanthropic Hua Xia with Inclusive Finance   A Sincere Hua Xia with Innovative Services   An Eco-friendly Hua Xia Through Green Development          A Prudent Hua Xia with Compliance   A People-centered Hua Xia Pursuing Happiness for All
54     2020 Social Responsibility Report                                                                                                                                                                                                                              Hua Xia Bank Co., Limited       55




     Boosting People’s Wellbeing
We diversified diverse financial products and service models to provide safe professional,
and considerate financial services for customers to meet the people’s aspiration for a
better life.




                                                                                                                                                                                                 Kunming Branch helped Jiangnan Village improve its environment



                                                                                                                                                          Case                                                                     Case

                                                                                                                                                           Supporting the development of industries to help build                   Promoting infrastructure construction and improving
                                                                                                                                                           a beautiful countryside                                                  rural landscapes

                                                                                                                                                           In 2020, Hangzhou Branch issued nine loans to MSEs in                    Kunming Branch supported Jiangnan Village construct
                                                                                                                                                           Lindai Town, Pinghu City, totaling RMB 29 million. It helped             infrastructure, green and beautify the environment, and
                                                                                                                                                           improve the quality and efficiency of modern agriculture                 harden roads. It improved various public service facilities,
                                                                                                                                                           and boost rural employment.                                              including health centers, libraries, and fitness sites,
                                                                                                                                                                                                                                    effectively improving the living environment of the village.
Hangzhou Branch helped build a beautiful countryside in Lindai Town, Pinghu



                                                                                                     As of the end of 2020                                Case
 Financial services for Agriculture, Farmers and Rural Areas
                                                                                                                                                           Doubanjiang Loans help local enterprises thrive
The Bank continued to develop targeted products to improve the coverage of basic
                                                                                                     balance of inclusive finance loans to
financial services and accessibility of loans to rural areas. The Bank enhanced financial                                                                  As of the end of 2020, Chengdu Branch had granted 54 credits loans, totaling RMB 160 million, to the doubanjiang industry in



                                                                                                         14.398
                                                                                                     “agriculture, farmers and rural areas” had
services in an orderly manner to promote rural revitalization and help build a beautiful                                                                   Pi County. The loan has effectively solved the financing difficulties of local doubanjiang producers while increasing the yield and
                                                                                                                                                           income of broad-bean growers.
countryside.                                                                                         reached RMB




                                                                                                     1.808
                                                                                                     billion, which increased by RMB

                    The Bank built a statistical and monitoring system for loans to                                      billion,
     Establishing   “agriculture, farmers and rural areas” and continued to optimize


                                                                                                     14.36
       a sound
                    business processes and loan approval mechanism.
     mechanism
                                                                                                     or                     %, from the beginning



     Optimizing
                    The Bank deepened the banking-insurance cooperation
                    mechanism, actively promoted agricultural supply chain finance,
                                                                                                        2.32
                                                                                                     of the year,                   percentage

                    and developed specialty products, exploring a credit enhancement                 points higher than that of the Bank’s loans
      product
                    financing system centered on quality.



                    The Bank promoted basic financial services in rural areas,
     Improving      developed special withdrawal services for farmers; set up mobile
      services      terminals to provide mobile services and improved online services.



                                                                                                                                                        Chengdu Branch employees visited doubanjiang enterprises




A Dedicated Hua Xia with Craftsmanship              A Philanthropic Hua Xia with Inclusive Finance         A Sincere Hua Xia with Innovative Services   An Eco-friendly Hua Xia Through Green Development      A Prudent Hua Xia with Compliance     A People-centered Hua Xia Pursuing Happiness for All
56    2020 Social Responsibility Report                                                                                                                                                                                                                                    Hua Xia Bank Co., Limited       57




                                                                                                       As of the end of 2020                              Supporting consumption                                                                             As of the end of 2020
 Supporting livelihood improvement


                                                                                                                               107
                                                                                                                                                          The Bank actively promoted consumption in areas essential to people’s wellbeing, and
Responding to the country’s call to support the development of Central and Western
                                                                                                                                                          served residents’ core consumption needs for a better life, thus boosting domestic


                                                                                                                                                                                                                                                                            424.251
China and the Old Industrial Bases in Northeast China, the Bank continued to improve                                                                                                                                                                          balance of personal loans (except credit
                                                                                                       the Bank had opened                    outlets     consumption and confidence and momentum for economic recovery.
basic financial services and the layout of county-level outlets. We provided quality


                                                                                                                               81
                                                                                                       in rural areas
                                                                                                                                                                                                                                                              card): RMB
financial services to less-developed areas, especially in such areas as public services,
                                                                                                       provided services for            outlets in old                                                                                                        billion
medical service, education and senior care.                                                                                                                  Supporting consumption upgrade
                                                                                                       revolutionary base areas, areas inhabited             The Bank developed intelligent, digital, and agile personal loans, and continued to
                                                                                                       by ethnic minority groups, remote and                 boost personal loans.
                                                                                                       border areas and poverty-stricken areas
                                                                                                                                                                   Upgrading personal loan brands
                                                                                                       In 2020
                                                                                                                                                                   We built the Hua Xia E Loan brand, under which are five sub-brands: Elite E Loan,


                                                                                                                          1
                                                                                                                                                                   Hua Xia E Loan, Housing E Loan, Vehicle E Loan and Education E Loan. We
                                                                                                                                                                   employed big data and cloud-based risk control platforms to provide professional,
                                                                                                       the Bank opened         more county-level
                                                                                                                                                                   intelligent and integrated personal credit services to retailing customers.



                                                                                                                7
                                                                                                       sub-branch
                                                                                                                                                                   Enhancing consumption-side supply
                                                                                                       opened       new outlets in Central and
                                                                                                                                                                   Focusing on such real-life scenarios as travel and leisure, education and
                                                                                                       West China
                                                                                                                                                                   training, medical care and elderly care, maternal and child health, ventilation and
                                                                                                                                                                   environmental protection, smart home, and car rental and purchase, we actively
                                                                                                                                                                   developed integrated loan businesses.

Kunming Branch served a customer of ethnic minority

                                                                                                                                                                                                                                                                        The credit card exclusively for
Developing inclusive finance                                                                                                                                                                                                                                                   medical workers

                                                                                                                                                            Case
Responding to the country’s call for improved living standards and social security, the
Bank continued to optimize resource allocation for projects vital to people’s wellbeing and                                                                  Initial launch of Hua Xia QuickPass credit card
make professional financial services accessible to every resident.
                                                                                                                                                             In response to the call of People’s Bank of China (PBOC) to promote mobile
                                                                                                                                                             payment, we cooperated exclusively with China UnionPay to launch the QuickPass
     Case                                                                                                                                                    credit card. It offers “cashback for every purchase”, discounts, and installment
                                                                                                                                                             discount, and aims to fuel the economic re-opening after the pandemic.
      Helping fight droughts and water shortage in northwestern Guizhou

      Guiyang Branch successfully reached the RMB 3 billion banking-insurance
      cooperation with a water conservancy company to support the resumption of work
      and production of key water conservancy projects of the company, effectively
      guaranteeing livelihood-benefiting projects.




                                                                                                                                                                                                                                                                    The Starcatcher Platinum credit card
     Case

     Empowering public services

     Changchun Branch brought heat suppliers, users and payment channels together
     on WeChat to form a platform for trustworthy public utility payment and convenient
     lifestyle services.




A Dedicated Hua Xia with Craftsmanship                A Philanthropic Hua Xia with Inclusive Finance         A Sincere Hua Xia with Innovative Services   An Eco-friendly Hua Xia Through Green Development       A Prudent Hua Xia with Compliance      A People-centered Hua Xia Pursuing Happiness for All
60   2020 Social Responsibility Report                                                                                                                                                                                                                           Hua Xia Bank Co., Limited        61




                                                                                                                                                    Improving the level of management

 Accelerating FinTech
 Development                                                                                                                                                 Building R&D mechanisms                                                Enhancing communication

                                                                                                                                                         The Bank created the IT organizational structure                         The Bank built online channels and initiated
                                                                                                                                                         consisting “One Department, Six Centers, and One                        activities to call for new technology applications and
To pursue digital transformation and development, the Bank empowered products and                                                                        Company”.                                                               system usability evaluation.
business development with FinTech, promoted external cooperation on FinTech, and                                                                         The Bank established a closed-loop process                               The Bank built a crowd-testing platform to test
endeavored to guard against FinTech risks and promote digital finance across industries.                                                                 system covering the entire life cycle of information                     mobile banking, staff mobile platforms, and other
                                                                                                                                                         technology.                                                              applications.

                                                                                                                                                         The Bank carried out pilots of agile projects and
 Embracing FinTech                                                                                                                                       promoted their application.


We continued to improve IT management and accelerated the building of basic
application platforms for big data, smart services and digital credit loans, which are                                                                       Innovating in incentive mechanisms                                     Applying research results
driven by the five goals of “led by innovation, driven by data, smart transformation, safe
operation and efficiency enhancement”.                                                                                                                  The Bank set up the FinTech innovation fund.                             The Bank launched the FinTech supermarket online.

                                                                                                                                                         The Bank set up the FinTech innovation risk reserve                      The Bank put into operation the cloud-based
                                                                                                                                                         fund.                                                                    application development platform.

Building an agile organization system
The Bank actively promoted digital transformation. We set up a leading group for digital
transformation, and opened the office for promoting digital transformation to offer
institutional guarantee for rapid, effective promotion. We have laid down the blueprint and
implementation route, and improved coordinated planning and top-level design for digital
transformation.
                                                                                                                                                     Building a win-win ecosystem

                                                                                                                                                    The Bank ramped up efforts to promote external cooperation on FinTech, developed business scenarios and solutions, and explored a
                                                                                                                                                    new development model that is open, collaborative, and sharing.
                                     The Bank formed a systematic theoretical basis
                                     integrating the characteristics of digitalization, four digital
      Deepening
                                     levels, and digital financial ecosystem, and explored
     understanding                                                                                                                                  Conducting communication and cooperation
                                     and promoted the development of digital innovation and
                                     transformation.                                                                                                The Bank cooperated with internet companies, FinTech companies and internet-based banks to promote cross-border cooperation, and
                                                                                                                                                    constantly improve the Bank’s intelligent and digital operations.



                                                                                                                                                      Case
                                     The Bank integrated national and regional strategies for
     Developing the                  building a digital economy into digital and technological                                                         Official launch of the Cloud Native application development platform
     strategic plan                  transformation, and created a new business structure
                                     focusing on both enterprises and customers.
                                                                                                                                                       Through collaboration with professional technology companies, the Bank built the Cloud Native application development
                                                                                                                                                       platform that integrates advanced microservice application development frameworks, complete cloud-native service governance
                                                                                                                                                       infrastructure, and advanced mobile development platforms. The platform significantly improves the development efficiency and
                                                                                                                                                       ensures unified application management, and has been successfully piloted in several projects, such as WeChat Bank.

                                  The   Bank developed digital and intelligent financial service
      Driving digital
                                    solutions to promote the optimization and upgrading of the
     transformation
                                    industrial chain and supply chain, promoted the opening
     with innovation
                                    up of the Bank, and created new test fields for innovation.




A Dedicated Hua Xia with Craftsmanship                A Philanthropic Hua Xia with Inclusive Finance   A Sincere Hua Xia with Innovative Services   An Eco-friendly Hua Xia Through Green Development      A Prudent Hua Xia with Compliance    A People-centered Hua Xia Pursuing Happiness for All
62     2020 Social Responsibility Report                                                                                                                                                                                                                                         Hua Xia Bank Co., Limited        63




Supporting the development of industry digitization ecosystem
                                                                                                                                                           Guarding against FinTech risks
The Bank promoted the building of a digital ecosystem based on the industry internet platform, to connect SMEs, help improve financial
service accessibility to SMEs and reduce their financing costs.                                                                                           The Bank optimized FinTech risk management to ensure the safe and efficient operation of FinTech platforms.


                                                                                                                                                                    Delicacy management                                                                               Enhancing data process capabilities

                                                                                                                                                          The Bank improved the operation and                                                                        The Bank promoted the development
                                                                                                                                                          maintenance management system and                                                                          of same-city dual-active information
                                                                                                                                                          delicacy management.                                              A                        B               systems supporting primary and
                                                                                                                                                                                                                                                                     secondary services.
                                                                                                                                                          The Bank enhanced business continuity                                Safeguarding
                                                                                                                                                          management and further improved                                                                            The Bank built a cross-center dual-
                                                                                                                                                                                                                             secure and stable
                                                                                                                                                          timely response.                                                                                           active data processing platform.
                                                                                                                                                                                                                             operation of the IT
                                                                                                                                                                                                                                  system
                                                                                                                                                                       Intelligent systems                                                                               Strengthening platform building
                                                                                                                                                                                                                            C                        D
                                                                                                                                                          The Bank built a mobile operation and                                                                      The Bank built a private cloud platform
                                                                                                                                                          maintenance platform.                                                                                      to support stable operation of tens of
                                                                                                                                                                                                                                                                     thousands of cloud hosts.
                                                                                                                                                          The Bank completed the online trial
                                                                                                                                                          operation (phase I) of the system map.                                                                     The Hua Xia-Huawei Joint Innovation
                                                                                                                                                                                                                                                                     Laboratory was opened.
                                                                                                                                                          The Bank launched the software-defined
                                                                                                                                                          wide-area network (SD-WAN) project.                                                                        The Bank built a backup cloud self-
                                                                                                                                                                                                                                                                     service platform.


                                                                                                                                                              Strengthening the customer information management
                                              The “1+4” platform interconnectivity strategy                                                                 The Bank amended and issued polices and rules for financial information management, improved whole-lifecycle financial information
                                                                                                                                                              management, and implemented requirements of personal information protection to prevent financial information leakages.

                     At the Bank end                                                                         At the customer end                              Institution construction                                                        Self-checks

                                                                                                                                                              The Bank issued data and information management policies such                   In line with the Personal Financial Information Protection
      The Bank built the industry digital finance                                              The Bank connects with industrial internet platforms
                                                                                                                                                              as the Hua Xia Bank Data Governance Administrative Measures                     Technical Specification and regulatory requirements, the Bank
      platform.                                                                                owned by government departments, central
                                                                                                                                                              and the Hua Xia Bank Implementation Rules for Information                       tested bank-wide mobile app transaction software to identify and
                                                                                               enterprises, and industry leaders and associations,
      The Bank empowers industry digitalization.                                                                                                              System Data Management.                                                         eliminate hazards of authentication information management,
                                                                                               and embeds its financial services into platform
                                                                                                                                                                                                                                              software security, etc.
                                                                                               scenarios.
                                                                                                                                                              Technological support                                                           Publicity and training

                                                                                                                                                              The Bank enhanced remote terminal authentication and                            The Bank carried out the annual training for information security
                                                                                                                                                              technological control over terminal security.                                   officers and participated in the 2020 National Network Security
                                                                                                                                                                                                                                              Publicity Week campaign.
Supporting the digital transformation of micro-, small and medium-sized enterprises


   Planning and                 Personnel training              Industry-specific             Mobile administration           Integrated financial
consultation services                                         consultation service                  services                       services

     The Bank provides          The Bank provides              Our e-banking app               Our e-banking                 The Bank offers
     consultation services      training for IT or             provides SME users              app provides SME              integrated financial
     for IT or financial        financial SMEs                 with enterprise                 users with mobile             services online to
     SMEs, covering             on software                    information inquiry,            administration                SMEs, including
     overall planning,          development, system            competitor risk                 services such as              making appointments
     architecture design,       operation and                  monitoring, business            attendance check,             for account
     system construction        maintenance, and               analysis report and             administrative                opening, account
     and follow-up              database, etc.                 other services.                 approval and                  management and
     operations, etc.                                                                          reimbursement.                proxy charging and
                                                                                                                             payment, etc.
                                                                                                                                                          The Bank became one of the first co-initiators for Digital Transformation Partnership Action



A Dedicated Hua Xia with Craftsmanship              A Philanthropic Hua Xia with Inclusive Finance           A Sincere Hua Xia with Innovative Services   An Eco-friendly Hua Xia Through Green Development            A Prudent Hua Xia with Compliance       A People-centered Hua Xia Pursuing Happiness for All
64   2020 Social Responsibility Report                                                                                                                                                                                                                                  Hua Xia Bank Co., Limited        65




 Improvement in Corporate Banking Services
The Bank deepened the integration of finance and technology, and promoted the transformation and development of corporate financial
service models. We provided industry- and sector-specific products and services, to create an interconnected business ecosystem for
corporate clients.



 Building service platforms

                                                                                   Qiyue finance and asset
      Mobile corporate                        Online corporate                                                                  Platform
                                                                                         management
         banking                                  banking                                                                      Express Pal
                                                                                platform for cash management
 The Bank launched 40 key                The Bank launched the                 The platform serves over 300          The Bank completed modular
 functions including e-receipt,          e-receipt, online contract            micro-, small and medium-             and professional innovation
 online reservation for account          signing with suppliers,               sized enterprises in a dozen          upgrade, strengthened the
 opening and Bluetooth                   corporate agreement                   of industries including               platform’s user experience
 shield, and optimized 273               deposit purchase, letter              wholesale, retail and foreign         and security, and provided
 items in process remodeling,            of confirmation requests,             trade, and facilitates the            platform merchants with more
 experience interaction,                 etc., meeting the need for            implementation of local               professional, humanized and           Zhang Jianhua, Deputy Party Secretary and President, visited Shenzhen Stock Exchange
 etc. We used big data                   contactless services.                 e-government services and             customized services. As of
 to help corporate clients                                                     public wellbeing projects.            the end of 2020, Platform
 inquire about competitors’                                                                                         Express Pal had provided
 information, choose potential                                                                                       financial services to 151                                                                                                               As of the end of 2020
 partners, identify business                                                                                         companies including Guangxi
                                                                                                                                                            Strategic cooperation
 risks and expand business                                                                                           Exchange Depository and
                                                                                                                                                           The Bank continued to enhance service support for large central SOEs, local SOEs,                balance of customer credit and
 circles.                                                                                                            Clearing Center and State
                                                                                                                     Grid E-commerce.                      listed companies, industry leaders, and fast-growing enterprises, and constantly                 investment financing businesses in the
                                                                 Convenient services
                                                                                                                                                           deepened the “3-3-1-1” customer marketing and service strategy. The Bank selected 79           “3-3-1-1” white list had reached RMB
                                                                                                                                                           strategic customers at headquarters’ level.
                                                                                                                                                                                                                                                            685.033                     billion, an


                                                                                                                                                                                                                                                                 57.823
 Product innovation                                                                                                                                          Case
                                                                                                                                                                                                                                                            increase of RMB
                                                                                                                                                              Signing a strategic cooperation agreement with Shenzhen Stock
 The Bank enhanced medium- and long-term
 financing support for manufacturing enterprises
 and launched annual-review loans exclusively
                                                                                               The Bank launched whole-lifecycle financial
                                                                                               products and services to support the incubation
                                                                                               and growth of technology companies, including
                                                                                                                                                              Exchange to support the growth of innovative enterprises
                                                                                                                                                                                                                                                              9.2
                                                                                                                                                                                                                                                            billion (
                                                                                                                                                                                                                                                            the year.
                                                                                                                                                                                                                                                                              %) from the beginning of
                                                                                                                                                              The Bank signed a strategic cooperation agreement with Shenzhen Stock
 for manufacturers, allowing them to renew loans                                               the easy loan for start-ups, easy loan for high-tech
                                                                                                                                                              Exchange, with focus on IPO mentoring, technology and finance, etc., to support
 without signing a new loan contract and paying the                                            companies, corporate growth loan, and incubation
                                                                                                                                                              the growth of innovative startups, the development of strategic emerging
 principal within five years.                                                                 loan, etc.
                                                                                                                                                              industries, and the country’s “dual-circulation” development.



                                                                                                                                                           In 2020



                                                                                                                                                                                       22
                                                                       Diverse
                                                                       services                                                                            our headquarters signed              more headquarters clients (excluding financial

The Bank boosted innovation of financial products
for MSEs, and launched House Loan Express 5.0
                                                                                               To better serve foreign trade companies in China,
                                                                                               the Bank launched supply chain cloud accounts
                                                                                                                                                           institutions), including   18   corporate customers and   4   institutions (government

and logistics loans, etc. to meet diverse needs of                                             and online contract signing functions for supply            departments, associations, exchanges, etc.)
financing.                                                                                     chain businesses.




A Dedicated Hua Xia with Craftsmanship               A Philanthropic Hua Xia with Inclusive Finance           A Sincere Hua Xia with Innovative Services   An Eco-friendly Hua Xia Through Green Development       A Prudent Hua Xia with Compliance   A People-centered Hua Xia Pursuing Happiness for All
66     2020 Social Responsibility Report                                                                                                                                                                                                                                     Hua Xia Bank Co., Limited           67




                                                                                                                                                                                                                                                                   As of the end of 2020
                                                                                                                                                              Expansion of service channels
 Upgrading the Customer Experience
Adhering to customer-centric financial services, the Bank actively built a smart retail banking system to provide convenient, efficient
                                                                                                                                                             The Bank continued to expand its service coverage, optimized the layout and deepened
                                                                                                                                                             the transformation of banking outlets, and improved online product and service models.              the Bank opened   1,022              branches
                                                                                                                                                                                                                                                                 in total, covering all provincial capitals


                                                                                                                                                                                                                                                                                    122
financial services.
                                                                                                                                                                                                                                                                 (except Tibet) and                  cities
                                                                                                                                                                                                                                                                 above prefecture-level across the country
                                                                 Intelligent services
                                   The Bank officially launched the robo-advisory system in March 2020 to provide
                                   customers with intelligent, professional and targeted financial services.                                                                                                                                                     168           community sub-branches



                                                                                                                                                                                                                                                                 1,149              self-service banking facilities



                                                                    Retail service
                    Online services                                   upgrade                                      Refined services

     The Bank developed a list of 32 personal financial                                            The Bank improved the management system for
     products to go online. Targeting online financial                                             internet loans. In addition, the Bank enriched risk
     services for individual borrowers, the Bank                                                   control dimensions and sources, significantly
     launched the Hua Xia E Loan                                                                   enhancing the risk identification, control
                                                                                                   capabilities and business efficiency.


                                                                                                                                                             Beijing Branch provided warm services for customers




                                                                                                                                                                                                                                                                   In 2020



                                                                                                                                                                                                                                                                   the Bank opened    17         new banking

                                                                                                                                                                                                                                                                  outlets

                                              The Bank improved customer experience by smart machines                                                        The Bank’s first operating transformation lab was set up at Kunming Branch




A Dedicated Hua Xia with Craftsmanship                A Philanthropic Hua Xia with Inclusive Finance            A Sincere Hua Xia with Innovative Services   An Eco-friendly Hua Xia Through Green Development          A Prudent Hua Xia with Compliance   A People-centered Hua Xia Pursuing Happiness for All
68    2020 Social Responsibility Report                                                                                                                                                                                                                                       Hua Xia Bank Co., Limited        69




Building offline channels
                                                                                                                                                             Improvement in service quality and efficiency
Scenario-based and intelligent services at outlets

                                                                                                                                                            The Bank improved the service management system and enhanced service quality and
     The Bank created a comprehensive      As some service requests are                                                                                     efficiency, realizing higher customer satisfaction rate.
     ecosystem that integrates financial   diverted to the self-service
     services, public services, public     machine, the waiting time at the
     education, salons, etc.               outlet hall was shortened by                                                                                     Improving service standards
                                           over 30%.                                                                                                        The Bank continued to improve the service management system, strengthened personnel
     More integrated                                     More efficient                                                                                     training, and carried out supervision and inspection, striving to provide consumers with
                                                                                                                                                            better services.
                                 Intelligent
                                   outlets
                                                                                                                                                             The Bank issued service management                   The Bank enhanced the management of
                                                                                                                                                             evaluation standards to specify service              the internal training team and provided
     More intelligent                                     More flexible
                                                                                                                                                             management methods.                                  targeted training for employees.
     By applying a variety of              The Bank designed mobile and
     technologies such as biometrics,      modular service scenarios to
     AI, and big data, the Bank            communicate with customers
                                                                                                                                                             The Bank participated in the selection of            The Bank provided customers with
     connected equipment across            through flexible forms.                 Guangzhou Branch’s library bank                                                                                                                                                24/7 uninterrupted financial services of
                                                                                                                                                             Demonstration Units of Responsible and               diverse and high-quality services.
     outlets and promoted customized                                                                                                                                                                                                                               offline outlets
                                                                                                                                                             Standardized Service in China’s Banking
     products.
                                                                                                                                                             Sector.


As of the end of 2020                                                                                           In 2020


 the Bank installed                 with                                      the rate of off-the-counter        the monthly active users of


2,932                               2.87
                                                                              services to all businesses of      our personal banking APP
                                                                              the Bank reached                   increased by


 intelligent counters in total       intelligent counters per outlet          75      %                          64.1           %
                                                                                                                 from the previous year
Building online channels
Enhancing service capabilities of online platforms



      Mobile banking 5.0
     With the goal of developing “fast, easy to use, good-looking, economical, and interesting”
     APPs, the Bank would make iteration every one to two weeks.                                                Case
     The Bank improved the e-community service APP that supports localized applications
                                                                                                                 Contactless services
     and vigorously promoted scenario-based marketing activities.
                                                                                                                To meet customers’ needs
      Personal banking
                                                                                                                for contactless financial
     The Bank enriched product functions, such as transfer of large-value deposits.                             services out of concerns
                                                                                                                for COVID-19, the Bank
     The Bank optimized the personal banking transaction process of the counter image front-
     end system.
                                                                                                                developed the Customer
                                                                                                                Manager “Cloud Studio”,
      Telephone banking                                                                                         a new portal for online-
                                                                                                                offline integrated digital
     With voice recognition and other AI technologies, the Bank upgraded the intelligent
                                                                                                                services.
     customer service robot system.

     During COVID-19 prevention and control, work-from-home customer service staff were
     assigned to ensure around-the-clock operation of the 95577 customer service hotline.
                                                                                                                                                            Parent-child activities for VIP customers of Xiamen Branch




A Dedicated Hua Xia with Craftsmanship              A Philanthropic Hua Xia with Inclusive Finance             A Sincere Hua Xia with Innovative Services   An Eco-friendly Hua Xia Through Green Development            A Prudent Hua Xia with Compliance   A People-centered Hua Xia Pursuing Happiness for All
70     2020 Social Responsibility Report                                                                                                                                                                                                                               Hua Xia Bank Co., Limited        71




Valuing customer complaints
                                                                                                                                                         Protecting Customer Rights
Adhering to the people-centered service philosophy, we attached much importance
to complaint response in 2020. We offered unimpeded complaint channels, optimized
                                                                                                                                                         and Interests
the complaint response mechanism and analyzed complaints to improve the effect
                                                                                                                                                        The Bank attached great importance to the protection of consumer rights and interests, complied with regulatory requirements, and
of complaint response. Throughout the year, we received 29,771 complaints; the
                                                                                                                                                        comprehensively improved work quality and efficiency.
settlement rate of complaints reached 100% and the customer satisfaction rate for
complaint response reached 93.48%. Due to the COVID-19 pandemic, we received a
lot of complaints against credit card repayment, especially in Beijing, Jiangsu, Tianjin                                                                 Intensifying basic management
and Hubei, etc. In response, we improved service standards and processes and flexibly
resolved complaints and disputes. In addition, the Bank worked to reduce complaints and                                                                 We have incorporated the protection of consumer rights into corporate governance system and

improve customer satisfaction, safeguarding the legitimate rights and interests of financial                                                            strategy, and stepped up to advance and integrate consumer rights protection and consumer

consumers.                                                                                                                                              services, to create a harmonious financial environment.




     Enhancing institutional building               Unblocking complaint channels
     The Bank amended and issued the                 The Bank disclosed complaint response
     Administrative Measures for Customer            channels and processes through media
     Complaint Response, clarifying customer         and set up a special zone in outlets to
     complaint response process and                  handle customer complaints.
     verification processes.
                                                                                                                                                                                                                                                                          Scan the QR code for
     Regulating complaint response                  Supervising and guiding corrections                                                                                                                                                                                 more information about the
                                                    of key problems                                                                                                                                                                                                      Bank’s efforts to protect
     The Bank earnestly fulfilled the
                                                                                                                                                                                                                                                                            consumer rights
     responsibility of complaint handling,           The Bank held the Bank-wide complaint
     resolved financial disputes in a diversified    analysis meeting, where typical
     manner, and continued to improve                complaints were analyzed and problems
     the quality and efficiency of complaint         of the Bank were rectified.                                                                        Changsha Branch launched an education and publicity activity on the protection of
     response.                                                                                                                                          customers’ rights and interests

                             Improving complaint management
                                                                                                                                                                                     The Bank strengthened the top-level design for the protection
                                                                                                                                                                                     of consumer rights and interests, established the organizational
                                                                                                                                                                                     structure, institutions and systems, review mechanisms,
Serving groups of special needs                                                                       As of the end of 2020                                   Institutional          information disclosure mechanisms, supervision and inspection
                                                                                                                                                                building             mechanisms, education and publicity mechanisms, training
The Bank provided considerate services for groups with special needs, including the
                                                                                                                                                                                     and complaint management mechanisms, and assessment and
elderly, military personnel and veterans, and migrant workers.
                                                                                                      the Bank had   4.7438
                                                                                                      elderly customers
                                                                                                                                            million
                                                                                                                                                                                     evaluation mechanisms.



                                                                                                                                                                                     The Bank specified ex ante review specifications and regulated



                                                                                                      outlets
                                                                                                                          864
                                                                                                      set up reserved counters at                           Strengthening
                                                                                                                                                            whole-process
                                                                                                                                                                                     institutional review and other procedures.
                                                                                                                                                                                     The Bank tightened in-process control with a focus on tightening
                                                                                                                                                                                     the review of business and product-related items.
                                                                                                                                                                                     The Bank enhanced post-event supervision, strengthened
                                                                                                                                                                control
                                                                                                                                                                                     professional inspections, complaint analysis, and assessment
                                                                                                      put in place accessible facilities at                                          and evaluation.

                                                                                                      913         outlets
                                                                                                                                                                                     The Bank formulated an annual training plan on consumer rights
                                                                                                                                                                                     protection.
                                                                                                                                                               Training              The Bank carried out training and examinations on the protection
                                                                                                                                                             management              of consumer rights and interests among middle-level and senior
                                                                                                                                                                                     managers as well as grassroots sales staff. The total number of
                                                                                                                                                                                     trainees reached 37,186.
Hangzhou Branch held the Caring for the Elderly Activity on Chongyang Festival




A Dedicated Hua Xia with Craftsmanship               A Philanthropic Hua Xia with Inclusive Finance        A Sincere Hua Xia with Innovative Services   An Eco-friendly Hua Xia Through Green Development         A Prudent Hua Xia with Compliance   A People-centered Hua Xia Pursuing Happiness for All
72    2020 Social Responsibility Report                                                                                                                                                                                                                                   Hua Xia Bank Co., Limited        73




                                                                                                        In 2020
 Financial education                                                                                                                                        Ensuring financial security

The Bank actively participated in the investor and consumer education activities
organized by the People’s Bank of China (PBOC), China Banking and Insurance                            the Bank organized    18,416
                                                                                                        public financial knowledge education
                                                                                                                                                           We have given high priority to financial security and employed
                                                                                                                                                           technological means to prevent information leakage. We
Regulatory Commission (CBIRC) and China Banking Association (CBA). The Bank                                                                                strengthened financial security, guided customers to avoid
                                                                                                        and publicity activities
continued to organize financial knowledge popularization and consumer education                                                                            risks, and did what we can to recover their losses.
activities to improve customers’ understanding of financial products and services, raise               benefited over


                                                                                                        26,105,997
                                                                                                                                                           The Bank connected its anti-fraud platform with the anti-fraud
their awareness of risks, and help create a good financial ecosystem.
                                                                                                                                                           platform of the Ministry of Public Security to form synergy
                                                                                                                                                           against telecom frauds.
                                                                                                        people with its public financial knowledge
                                                                                                        education and publicity activities

                                                                                                        handed out approximately                                      Cracking down on frauds and building


                                                                                                        3.2775
                                                                                                                                                                             the anti-fraud system
                                                                                                                                 million copies of
                                                                                                        publicity materials to the public
                                                                                                                                                                                     Protection of

                                                                                                            118,409
                                                                                                        engaged over
                                                                                                        employees in these activities
                                                                                                                                                                                     consumers’
                                                                                                                                                                                       property



                                                                                                                                                                         Monitoring suspicious transactions
To mark the International Children’s Day, Urumqi Branch taught RMB basics to kids


                                                                                                                                                           We employed big data and machine learning technology to
Hua Xia Bank set up special columns on its official websites and other channels, and
                                                                                                                                                           effectively identify fraud risks and intervene in time.
opened public education areas at outlets. It also carried out a variety of online and offline
education and publicity activities.
                                                                                                                                                           In line with the regulatory requirements, the Bank conducted
                                                                                                                                                           comprehensive security checks of all software on our mobile
     Case                                                                                                                                                  apps. We reshaped the privacy protection policy framework,

     Internet-based financial knowledge popularization                                                                                                     updated privacy policies on mobile banking, direct banking,
                                                                                                                                                           and mobile corporate banking, and conducted safety tests on
     The Bank adopted the “Internet + Financial Knowledge” education and publicity mode to enhance consumers’ awareness of self-                        these apps.
     preservation and capability to prevent and handle financial risks.


                                                                                                                                                                         Enhancing information protection
                     Cloud-based                                      Cloud-based                                  Cloud-based
                      experience                                      dissemination                               communication
                      of financial                                     of financial                                 on financial
                       services                                        knowledge                                        risks
                                                                                                                                                                                      Protecting
                                                                                                                                                                                      consumer
         Shenzhen Branch organized                       Wuhan Branch disseminated basic               Nanjing Branch organized an online                                              privacy
         online live-streaming of its financial          financial knowledge to consumers              situational quiz and other activities
         services. Its staff acted as live               staying at home through online                to teach consumers to analyze and
         streamers to introduce to viewers               seminars, online service salons, and          stay vigilant against financial risks.                        Improving risk management capability
         its anti-coronavirus measures and               other activities on the cloud. It also
         special service arrangements in                 exposed typical fraud cases to help
         response to the pandemic.                       customers avoid frauds.
                                                                                                                                                           The Bank formulated the emergency plan for online financial
                                                                                                                                                           services, and improved the emergency plan for customer
                                                                                                                                                           service hotlines.




A Dedicated Hua Xia with Craftsmanship                A Philanthropic Hua Xia with Inclusive Finance          A Sincere Hua Xia with Innovative Services   An Eco-friendly Hua Xia Through Green Development         A Prudent Hua Xia with Compliance   A People-centered Hua Xia Pursuing Happiness for All
76    2020 Social Responsibility Report                                                                                                                                                                                                                               Hua Xia Bank Co., Limited       77




                                                                                                   As of the end of 2020
 Devoting More Efforts                                                                             the Bank’s balance of green loans had

 to Green Finance                                                                                  reached RMB



Aligning with national banking policies, we have introduced capital and advanced
                                                                                                   180.043
                                                                                                   billion
concepts from overseas, and dedicated resources and a team to stimulate innovation in
products and theories, while exploring a development path with special characteristics             an increase of RMB

for green finance.

                     Establishing the Green Finance Management Committee to coordinate
                                                                                                   60.89
                                                                                                   billion
     The Head
                     green finance-related businesses across the Bank; establishing the
       Office        Green Finance Center to promote the business of green finance
                                                                                                   increased



     Branches
                     Setting up leading groups and specialized teams headed by branch
                     leaders to coordinate and promote the green finance business
                                                                                                   51.1          %
                                                                                                   over the beginning of the year


                     Pushing forward the green finance pilot program and setting up                note: the value of increase and rate of
      Outlets        dedicated green finance branches and marketing departments with               increase are calculated based on the              A rendering of an industrial waste treatment center project financed by the Bank
                     designated personnel responsible for green finance-related work               data adjusted in accordance with the
                                                                                                   Statistical Methodology for Green Loans
                                                                                                   revised by the People's Bank of China in
                                                                                                   December, 2019

 Developing green credit                                                                           equivalent to saving                                Case


We earnestly followed national policies for the industries and environmental protection            1.457
                                                                                                   million tons of standard coal
                                                                                                                                                        Supporting water environment improvement projects

and financial regulatory requirements, and strictly tightened up credit granting in                                                                     The Comprehensive Water Environment Improvement Project of an environmental
industries that cause high pollution, high consumption, and overcapacity. On the other                                                                  governance company in Wuxi is responsible for desilting and building revetments
                                                                                                   equivalent to saving
hand, we channelled more financial resources into sectors that contribute to green,                                                                     along 11 river courses in Wuxi City. Wuxi Branch granted the project a special
low-carbon, and sustainable development, especially green credit to such areas as
energy conservation, environmental protection, clean energy, and green transportation,
                                                                                                   10.9499
                                                                                                   million tons of water
                                                                                                                                                        loan of RMB 400 million in its early stage, followed by another RMB 100 million
                                                                                                                                                        working capital, effectively alleviating the financial pressure of the company and
                                                                                                                                                        enhancing local flood control and drainage capabilities to the regional water and
providing financial support for the development of green industries and enterprises.
                                                                                                                                                        residential environment.




                                                                                                                                                       Case

                                                                                                                                                        Supporting industrial waste treatment

                                                                                                                                                        Shenyang Branch granted an environmental service company a two-year RMB
                                                                                                                                                        390 million fixed-asset loan to build the Huludao Industrial Waste Treatment
                                                                                                                                                        Center. After completion, the Center will be able to process 92,500 tons of
                                                                                                                                                        industrial waste per year, effectively reducing pollution caused by industrial waste
                                                                                                                                                        and improving local production and living environment.


A wind farm project financed by the Bank




A Dedicated Hua Xia with Craftsmanship            A Philanthropic Hua Xia with Inclusive Finance        A Sincere Hua Xia with Innovative Services   An Eco-friendly Hua Xia Through Green Development           A Prudent Hua Xia with Compliance   A People-centered Hua Xia Pursuing Happiness for All
78     2020 Social Responsibility Report                                                                                                                                                                                                                         Hua Xia Bank Co., Limited         79




 Innovative green products                                                                                                                           Practicing ESG concept                                                                          In 2020


We developed a series of products for contract energy management financing and                                                                      With ESG as the clear focus of our investment strategy, we have developed ESG                     the Bank launched
emissions trade financing, and explored to provide the government and key energy-
consuming enterprises with integrated services of energy diagnosis, energy planning,
                                                                                                                                                    strategies and databases, issued ESG-themed wealth management products, and so on
                                                                                                                                                    to practice the ESG concept.                                                                     27
                                                                                                                                                                                                                                                      issues of ESG-themed wealth
energy transformation, and green finance. A product system of green credit, green lease,
                                                                                                                                                    We formulated the Measures of Hua Xia Wealth Management Co., Ltd. for ESG                         management products
green investment, and green debt-financing underwriting tools has been built, covering
energy efficiency financing, clean-energy financing, environmental-protection financing,                                                            Management (Trial), compiled the Hua Xia Bank ESG Evaluation System, held the
                                                                                                                                                                                                                                                      raised RMB


                                                                                                                                                                                                                                                     8.727
and green equipment supply chain financing. In 2020, we launched collective financing                                                               Second Summit on ESG Investing in China Asset Management Industry, and released

for green projects to accelerate the approval and improve customer service capabilities.                                                            the 2020 Status Report - ESG Investing in China Asset Management Industry.

                                                                                                                                                                                                                                                      billion
As of the end of 2020
                                                                                                                                                     Case                                                                                            As of the end of 2020
                                                          including                                                                                    Official launch of the ESG indexes
                                                                                                                                                                                                                                                      the ESG-themed wealth management
                                                          RMB                                       RMB                                                                                                                                               products under management amounted


                                                          7.233                                     1.6
                                                                                                                                                       On April 8, 2020, China Securities Index Co., Ltd. announced the release of the
                                                                                                                                                                                                                                                      to RMB


                                                                                                                                                                                                                                                     18.29
                                                                                                                                                       CSI Hua Xia Bank ESG Index and the CSI ESG120 Strategy Index developed
                                                                                                                                                       by the Bank. The two indexes, officially launched on April 30, are two of the first
                                                          billion in green bonds                    billion of investment in industrial funds
                                                                                                                                                       indexes developed based on the “ESG Evaluation System”, a proprietary system
                                                                                                                                                                                                                                                      billion in total
                                                          RMB                                       RMB                                                of China Securities Index.


            the Bank’s balance of green
            investment had reached RMB
                                                          920
                                                          million in green bills
                                                                                                    450
                                                                                                    million in interbank asset equity rights
                                                                                                                                                       These two indexes are fruits of our active contribution to the development of the
                                                                                                                                                       capital market. Centering on the CSI Hua Xia Bank ESG Index and the CSI ESG120


            10.673                                        USD                                       RMB                                                Strategy Index, we will develop more net-worth wealth management products to


                                                          57                                        97
                                                                                                                                                       promote ESG investing in China.
            billion

                                                          million of bonds in foreign currencies    million in asset-backed securities




     Case

     Issuing RMB 10 billion of green bonds


      In April 2020, the 20 Hua Xia Bank Green Finance 01, the first issue of Hua Xia
      Bank’s green bonds in 2020, was listed in the National Interbank Bond Market to
      raise RMB 10 billion for green industrial projects, with a three-year fixed rate.

      As of the end of 2020, the bond had invested in 63 projects from areas of energy
      conservation, clean transportation, clean energy, environmental protection and
      climate change adaptation, pollution control, as well as resource-saving and
      recycling.

                                                                                                                                                    Held the Second Summit on ESG Investing in China Asset Management Industry                       2020 Status Report - ESG Investing in China
                                                                                                                                                                                                                                                     Asset Management Industry




A Dedicated Hua Xia with Craftsmanship             A Philanthropic Hua Xia with Inclusive Finance      A Sincere Hua Xia with Innovative Services   An Eco-friendly Hua Xia Through Green Development      A Prudent Hua Xia with Compliance   A People-centered Hua Xia Pursuing Happiness for All
80    2020 Social Responsibility Report                                                                                                                                                                                                                                    Hua Xia Bank Co., Limited       81




                                                                                                       As of the end of 2020                                                                                                                                    Awards
                                                                                                                                                             Case
                                                                                                                                                              Supporting the Coastal Afforestation Project Phase II in Xiangshui
                                                                                                       the Bank had introduced USD                                                                                                                              The Bank won another award of the Best
                                                                                                                                                              County

                                                                                                       1
                                                                                                                                                                                                                                                                Bank for Green Energy Development
                                                                                                                                                                                                                                                                issued by Global Finance
                                                                                                                                                              We have invested RMB 944.26 million in the 4,493-hectare Project through the
                                                                                                                                                              World Bank’s on-lending solutions to support the Coastal Afforestation Project
                                                                                                       billion of foreign capital through on-lending                                                                                                            The Bank won the 2020 IFF Global Green
                                                                                                                                                              in Xiangshui County. The Project is expected to improve the local coastal
                                                                                                       programs                                                                                                                                                 Finance Innovation Award, becoming the
                                                                                                                                                              environment and disaster resilience, protect the people’s lives and properties, and              only financial institution in the banking
                                                                                                                                                              promote sustainable coastal socioeconomic development.                                            sector to win the award
                                                                                                       cumulatively issued RMB


                                                                                                       10.7
                                                                                                       billion of credit loans in home and foreign
                                                                                                                                                              The Project adds more than RMB 2 million per year to the fixed income of the 412
                                                                                                                                                              local households, significantly improving their living standard. Besides, poverty-
                                                                                                                                                              stricken residents were hired as forest rangers with a stable source of income. The
                                                                                                       currencies                                             Project was praised by the local government, regulatory authorities, enterprises,
                                                                                                                                                              and residents alike.
A container-based peak-shaving and valley-filling electrochemical energy storage power station
                                                                                                       provided financing services for
project financed by the Bank



 Deepening international cooperation
                                                                                                       95
                                                                                                       projects in 17 provincial regions across
                                                                                                                                                            Improving management standards
                                                                                                       the country
We maintained close cooperation with international organizations such as the Agence                                                                        Actively benchmarking against international practices, the Bank has become China’s first
Franaise de Développement (AFD), the Asian Development Bank, and the International                    saving                                              financial institution to apply the World Bank’s Environmental and Social Framework (ESF)
Green Economy Association. In 2020, we actively pushed forward the World Bank’s
China Renewable Energy and Battery Storage Promotion Project and steadily advanced
its Innovative Financing Project for Air Pollution Control in the Beijing-Tianjin-Hebei
                                                                                                       3.63
                                                                                                       million tons of standard coal annually
                                                                                                                                                           and has established the On-lending Environmental and Social Management System
                                                                                                                                                           (ESMS).


Region and other on-leading projects. Through these projects, we tried to meet                                                                              Fostering green culture
international standards in terms of policy-making expertise, and project management
and execution.                                                                                         cutting CO2 emissions annually by


                                                                                                       8.87
                                                                                                                                                           Through capability building, publicity and education, and exchanges, we advocated
     Case                                                                                                                                                  and fostered the corporate culture of green finance, injecting cultural vitality into the
                                                                                                                                                           development of the Bank’s green finance.
     China Renewable Energy and Battery Storage Promotion Project kicks                                million tons
     off its first sub-project

     The China Renewable Energy and Battery Storage Promotion Project we co-                           cutting SO2 emissions annually by                     The Bank carried out marketing activities for green finance brands. A total of 33



                                                                                                       28,300
     launched with the World Bank is the largest of its kind under the World Bank and                                                                        large- and medium-sized green finance publicity activities were held by our branches
     the first in China dedicated to financing energy storage. The investment totals                                                                         throughout the year. We compiled a collection of 16 green finance marketing cases that
     USD 750 million, of which USD 300 million comes from the World Bank and USD                                                                             are highly innovative and have strong social influence.
     450 million from Hua Xia Bank in the form of equivalent RMB loans. The money is                   tons
     used to support energy storage (excluding pumped-hydro storage) projects and
     projects for the innovative utilization of renewable energy. It helps enhance the                 cutting NOX emissions annually by                     The Bank prepared a series of training courses for renewable energy and on-lending


                                                                                                       28,000
     integration and utilization rate of renewable energy nationwide.
                                                                                                                                                             programs, issued the list of green finance marketing priorities of the year, and conducted
                                                                                                                                                             industrial research on urban energy, wind power, photovoltaic power, and green building,
     In August 2020, the loan for the first sub-project – the energy storage project of
                                                                                                                                                             etc. A learning materials system has been preliminarily built across the Bank, covering
     a beer company in Guangdong, was granted to build a container-based peak-                         tons                                                  macro-economic situation, green finance policies, updates and analyses of key industrial
     shaving and valley-filling electrochemical energy storage power station.
                                                                                                                                                             policies and trends, and implementation rules for business handling and risk prevention.


     Case
                                                                                                                                                             The Bank delivered 4 bank-wide green finance training sessions and held the Youth
     Steadily advancing the Innovative Financing Project for Air Pollution                                                                                   Development Forum on Green Finance.
     Control in the Beijing-Tianjin-Hebei Region

     As of the end of 2020, the Innovative Financing Project for Air Pollution Control in
     the Beijing-Tianjin-Hebei Region, the most expensive anti-pollution project between                                                                     The Bank actively publicized the green finance business of the Bank. The promotional
     China and the World Bank, had deployed 28 sub-projects and invested RMB 4.633                                                                           video of the Bank’s green finance brands was broadcast on CCTV 1 and CCTV 9 during
     billion in pollution control, equivalent to saving 1.16 million tons of standard coal                                                                   prime time. Our green finance brand “Green Growth for a Better Hua Xia” has earned
     and reducing 2.56 million tons of CO2 emissions per year.                                                                                               recognition from the market with increasingly strong brand influence.




A Dedicated Hua Xia with Craftsmanship                A Philanthropic Hua Xia with Inclusive Finance          A Sincere Hua Xia with Innovative Services   An Eco-friendly Hua Xia Through Green Development       A Prudent Hua Xia with Compliance      A People-centered Hua Xia Pursuing Happiness for All
82     2020 Social Responsibility Report                                                                                                                                                                                                                           Hua Xia Bank Co., Limited       83




 Services for Green Lifestyles                                                                                                                          Practicing Green Operation

     Supporting green travel                                                                          As of the end of 2020
                                                                                                                                                       Green office

We actively promoted ETC business and continuously improved the ETC quality. We                       the Bank had signed                              Attaching great importance to our environmental impacts, we promoted green office throughout the Bank, striving to reduce resource
have rolled out discounts for ETC users, striving to encourage users to use ETC and
facilitate green transportation.                                                                      2,440,100
                                                                                                      ETC service users
                                                                                                                                                       consumption, improve energy efficiency, and cut pollutant discharges. We implemented low-carbon operations across the board and
                                                                                                                                                       promoted green development.



     Offering more professional services             Upgrading information services                                                                        Lower energy consumption                                                  Paperless services
                                                                                                      an increase of
     The Bank strengthened training and              The Bank launched an SMS push function                                                              Strictly following air-conditioning temperature control                   Adopting centralized printing and carrying out all over-the-
     assessment of the marketing staff and
     developed service solutions targeting
     customers’ greatest concerns and sore
     spots, so as ensure customers’ right to
                                                     for ETC business, upgraded the fee
                                                     deduction messaging system for the ETC
                                                     business according to the requirements
                                                     of the Highway Monitoring & Response
                                                                                                      169,400
                                                                                                      over the end of the previous year
                                                                                                                                                         requirements, using intelligent lighting systems, and
                                                                                                                                                         switching off unnecessary lights to reduce energy
                                                                                                                                                         consumption
                                                                                                                                                                                                                                   counter service in a paperless manner to reduce resource
                                                                                                                                                                                                                                   consumption


     know.                                           Center of the Ministry of Transport, and
                                                     allowed ETC customers to search for the
                                                     details of charges.                                                                                   Water conservation                                                        Green sourcing
                                                                                                      issued


                                                                                                      3,256,200
                                            ETC services                                                                                                 Encouraging employees to turn off the tap after using and                 Promoting the use of the electronic centralized sourcing
                                                                                                                                                         report any cases of water leakage                                         platform and factoring environmental protection and CSR
                                                                                                                                                                                                                                   performance into supplier selection
                                                                                                      new ETC cards
compared with manual toll collection, for an ordinary light vehicle, the use of ETC
reduces
                                                                                                      increase                                             Garbage sorting                                                           “Empty plate” campaign


                                                                                                      128,700                                            Promoting and encouraging garbage sorting and                             Encouraging the staff to practice the “empty plate”



      16.4 %                     71.2 %                 71.3 %                    48.9 %
                                                                                                                                                         centralized garbage collection, and assigning garbage                     campaign and packing up leftovers to avoid waste of food
                                                                                                                                                         sorting officers at busy floors and time periods
                                                                                                      over the beginning of the year




NOX emissions by                  CFCs by                    CO by                 CO2 by             4.12
                                                                                                      an increase of
                                                                                                                    %

                                                                                                                                                            Water consumption of theHead Office                    (ton)          Electricity consumption of the Head Office             (kWh)

     Promoting paperless services
                                                                                                                                                            2018                                              41,410.6            2018                                         41,695,542.3

As of the end of 2020, all our over-the-counter services were paperless. To promote the                                                                     2019                                              40,809.6            2019                                         47,169,874.84

                                                                                                                                                            2020                                              33,193.13           2020                                         51,340,078.62
use of electronic certificates, we restructured the over-the-counter service process, and
offered certificates, customer signatures, and bank seals in electronic forms, reducing
paper consumption while improving the efficiency of over-the-counter services.
                                                                                                                                                            Fuel consumption of company vehicles of
                                                                                                                                                            the Head Office                                        (liter)        Paper consumption of the Head Office                    (ton)


 In 2020                                                                                                                                                    2018                                              39,812.63           2018                                              28

                                                                                                                                                            2019                                              30,149.86           2019                                              20.52
 the Bank handled                                          equivalent to cutting CO2 emissions by
                                                                                                                                                            2020                                              24,607.26           2020                                              20.83
1,147,192,600 2,294,400
 requests for e-services                                   tons
                                                                                                        98.21              %
                                                                                                        of the services were handled via the
                                                                                                        main e-channels


A Dedicated Hua Xia with Craftsmanship               A Philanthropic Hua Xia with Inclusive Finance       A Sincere Hua Xia with Innovative Services   An Eco-friendly Hua Xia Through Green Development     A Prudent Hua Xia with Compliance    A People-centered Hua Xia Pursuing Happiness for All
84    2020 Social Responsibility Report                                                                                                                                                                                                                                 Hua Xia Bank Co., Limited          85




 Environmental protection activities

We actively raised employees’ awareness of environmental protection and resources
conservation, and encouraged employees to play their due role in the building of a green
and beautiful China.



     Case                                                                                                                                                                                                                                                  The “Garbage’s Fun Travel” garbage sorting
                                                                                                                                                                                                                                                           awareness activity organized by Nanjing Branch
     Responding to the “Garbage Sorting at SOEs” campaign
     launched by the State-owned Assets Supervision and
     Administration Commission of Beijing Municipality


     The Head Office and Beijing Branch signed the Commitment
     Letter on Household Waste Sorting with employees, and
     strengthened employees’ self-discipline and the mutual
     supervision between the Bank and the community. We mobilized
     employees to register on the “BVF” (“ 志愿北京 ”) mini-app on
     WeChat or at the neighborhood committee as garbage sorting
     volunteers. As of October 12, 2020, 3,885 employees, or 100% of            Classified dust bins in the Head Office for centralized garbage           The tree planting activity of Chengdu Branch                                                     The brisk walk activity of Guiyang Branch for
     the total, had signed the Commitment Letter on Household Waste             collection                                                                                                                                                                 promoting low-carbon transportation
     Sorting, and 1,583 employees, more than 40.75% of the staff, had
     registered as volunteers.




A garbage sorting promotion meeting at the Head Office                                                                                                    The environmental protection activity of Wenzhou Branch on the World Environment Day




A Dedicated Hua Xia with Craftsmanship              A Philanthropic Hua Xia with Inclusive Finance           A Sincere Hua Xia with Innovative Services   An Eco-friendly Hua Xia Through Green Development        A Prudent Hua Xia with Compliance   A People-centered Hua Xia Pursuing Happiness for All
88      2020 Social Responsibility Report                                                                                                                                                                                                                                                     Hua Xia Bank Co., Limited                89




                                                                                                        In 2020

     Full Compliance in
     Operations                                                                                         3,304
                                                                                                        compliance education sessions:
The Bank promoted fully law-based and compliant operations. We worked to improve the
internal control and compliance management mechanism and the business management
processes and systems, ensuring that all our operations are carried out according to
related regulatory requirements.                                                                        152,334
                                                                                                        participants in the compliance
                                                                                                        education:
 Improving the internal control system

We have strengthened the awareness of “compliance for value creation,” improved
the internal control system and consolidated the basis for compliant operations, which
                                                                                                        255                                                                                         Zhang Jianhua, Deputy Party Secretary and President of Hua Xia Bank, presided over the meeting on re-examinations
strongly supported the Bank’s high-quality development.                                                training sessions or lectures on
                                                                                                        anti-financial crimes:                             Case

                                                                                                                                                             Restoring the order of the market through re-examinations

                                                                                                        35,048
     Improving the performance appraisal mechanism
     The Bank formulated the Measures for the Evaluation of Legal Compliance Management of
                                                                                                                                                             In line with the Notice on Carrying out Re-examinations of the Rectification of Market Chaos in the Banking and Insurance
     Branches to strengthen the evaluation of legal compliance of branches and the application
                                                                                                                                                             Industries issued by China Banking and Insurance Regulatory Commission, the Bank organized self-examination and self-
     of assessment methods.                                                                             participants in the training sessions or
                                                                                                        lectures on anti-financial crimes:                   rectification across the board.



                                                                                                        1,210
                                                                                                                                                              Cooperation of   The Bank set up a leading group, formulated work plans. We                         As the main responsible bodies, our business divisions stay
                                                                                                                                                                               stressed the primary responsibility of the chief leaders, and       Business       oriented toward problems and risks. We improved the quality
                                                                                                                                                             the Head Office
     Improving the inspection system                                                                                                                          and branches     ensured that all responsibilities are effectively performed at      divisions      and efficiency of inspections, and identified and eliminated risks
                                                                                                                                                                               every level.                                                                       in time.
     The Bank formulated the Administrative Measures for On-site Inspection of Legal
     Compliance and revised the Administrative Measures for Specialized Inspection                      training sessions on anti-money                         The Legal
                                                                                                        laundering:                                                            The department strengthened in-process control and
     Coordination to clarify the content of on-site inspections and the requirements for special                                                               Compliance
                                                                                                                                                                               supervision, conducted inspections and continuously promoted         Audits        The Bank earnestly strengthened audits and supervision of re-
                                                                                                                                                              Department of                                                                                       examinations of rectification effect.
     inspections by specialized departments.                                                                                                                                   re-examinations of the rectification effect.
                                                                                                                                                             the Head Office




     Enhancing the quality and efficiency of rectification
                                                                                                        98,710
                                                                                                        participants in the training sessions on
     The Bank formulated the Standards for Checking Rectifications of Problems Identified in            anti-money laundering:
     Inspections from Inside and Outside to clarify the standards for credit and quasi-credit
                                                                                                                                                          Promoting the rule of law
     businesses as well as accounting, thus ensuring accurate and effective rectification.
                                                                                                                                                         The Bank actively enhanced employee awareness of the rule of law, management of legal affairs, and control of legal risks, striving to
                                                                                                                                                         promote compliant operations across the Bank.

     Enhancing due diligence                                                                                                                                       Building corporate culture that
                                                                                                                                                                   promotes the rule of law                                                                                        Control of legal risks
     The Bank revised the Administrative Measures for Due Diligence on Credit Granting and the
     Standards for Due Diligence on Credit Granting to show zero tolerance for incompliance                                                               We organized lectures on relevant laws                                                                                A list of responsibilities was made to promote
     and serious violations of rules.                                                                                                                     and regulations to enhance employees’                                                                                law-based governance and management
                                                                                                                                                          legal literacy and ability of applying legal                                                                          of legal risks. Based on regular reports on
                                                                                                                                                          knowledge to solving business problems.                                                                               legal risks, we continued to track, guide, and
                                                                                                                                                                                                                                                                                evaluate legal risk management.
                                                                                                                                                          Tomarkthe124NationalConstitution

     Tightening punishments for violations
                                                                                                                                                          Day and the Constitution Week publicity                                                                               The Bank strengthened guidance for legal
                                                                                                                                                          campaign, we organized the review of the                                                                              risk control, summarized the impacts of the
                                                                                                                                                          oath of allegiance to the Constitution and                            Management of legal affairs                     Civil Code on our businesses, and compiled
     The Bank revised the Administrative Measures for Punishing Violations, the Working
                                                                                                                                                          quizzes about the Constitution.                                                                                       a collection of cases of financial crimes
     Rules for Punishing Violations, and detailed rules for punishing violations in specialized                                                                                                                        We upgraded the legal affairs management                 committed by banking practitioners.
     businesses, to further tighten the punishments for violations, especially repeated violations.                                                       Throughout the year, we organized 190                        system based on technological means
                                                                                                                                                          training sessions on the rule of law.                        to regulate management and improve                       The Bank integrated legal services and
                                                                                                                                                                                                                       efficiency.                                              strengthened the legal risk management
                                                                                                                                                                                                                                                                                system.




A Dedicated Hua Xia with Craftsmanship                 A Philanthropic Hua Xia with Inclusive Finance       A Sincere Hua Xia with Innovative Services   An Eco-friendly Hua Xia Through Green Development                    A Prudent Hua Xia with Compliance         A People-centered Hua Xia Pursuing Happiness for All
90      2020 Social Responsibility Report                                                                                                                                                                                                                                      Hua Xia Bank Co., Limited          91

                                                                           加强反洗钱管理



 Strengthening AML management                                                                                                                                 Strengthening case risk prevention and control

The Bank continued to improve the internal control system and operating mechanisms, stepped up to guard against risks in high-risk                           The Bank maintained a tough stance against financial criminal cases. We carried out in-depth case-based warning and education, and
businesses, and organized training and publicity activities to improve the effect of AML work.                                                               intensified checks for case risks and employee conduct management to resolutely forestall risks related to financial criminal cases.

                                                                                                                                                                                                                 The Bank identified goals and measures for case risk prevention and control work, saw

        Improving working mechanisms                                               Conducting publicity activities
                                                                                                                                                                                                                 to that responsibilities were effectively implemented at each level, and strengthened the
                                                                                                                                                                                     Strengthening               management of key points and weaknesses.

      The Bank made policies to manage risks of money laundering                 The Bank compiled scenario-based cases about money
                                                                                                                                                                                        case risk
                                                                                                                                                                                     prevention and
        and terrorist financing and built a laundering risk management              laundering crimes, such as telecom fraud, and enhance                                                control                 The Bank defined four dimensions of case risk prevention and control, screened case risks
        framework.                                                                  related publicity through its outlets, activities, and media                                                                 on a quarterly basis, and increased checks on organizations with severe regional risks,
        The Bank revised policies on the risk assessment and                        platforms.                                                                                                                   multiple problems, and weak internal control management.
        customer classification for money laundering and terrorist                  The Bank continued to enhance the public’s AML awareness,
        financing and on monitoring of accounts suspected, and                      and carried out publicity activities centering on money
        strengthened AML management.                                                laundering, terrorist financing, and other illegal activities.
                                                                                                                                                                                                                 In line with the Guiding Opinions of the General Office of the China Banking and Insurance
                                                                                                                                                                                                                 Regulatory Commission for Preventing Illegal and Criminal Financial Activities Carried out
        Enhancing technical support                                                Tightening risk management and control
                                                                                                                                                                                          Strictly               by Banking and Insurance Practitioners, we conducted self-examination and developed
                                                                                                                                                                                     preventing illegal          and implemented preventive measures.
      The Bank optimized the AML working platform, restructured                  The Bank closely tracked high-frequency money laundering
                                                                                                                                                                                       and criminal
                                                                                                                                                                                    financial activities
        the customer money laundering risk assessment model,                        behaviors, pointed out risk features in time, and tightened                                         of banking
        and strengthened risk management in areas vulnerable to                     transaction monitoring and management of high-risk accounts,                                       practitioners             The Bank issued the risk warning of Protect Customer Information and Effectively Prevent
        laundering risks.                                                           effectively blocking the flow of criminal funds.                                                                             Risks.
        The Bank applied AI technology to optimize monitoring rules
        for suspicious transactions that have violated rules frequently,
        so as to improve the ability of intelligent monitoring.

                                                                                                                                                                                       Increasing
                                                                                                                                                                                        checks on                The Bank conducted special investigations into employees’ illegal inquiries and other illegal
                                                                                                                                                                                       employees                 behaviors, analyzed early warnings given by the employee account monitoring system, and
                                                                                                                                                                                      with abnormal              strengthened the management of investigation, rectification and accountability process.
                                                                                                                                                                                        behaviors




                                                                                                                                                                                                                 The Bank formulated the Code of Conduct for Employees and organized training and
                                                                                                                                                                                                                 education on compliance and prevention of financial criminal cases.
                                                                                                                                                                                       Carrying out
                                                                                                                                                                                       training and
                                                                                                                                                                                       education on
                                                                                                                                                                                    financial criminal
                                                                                                                                                                                           cases                 The Bank popularized financial knowledge to the public and raised customers’ alert against
                                                                                                                                                                                                                 financial risks.




                                                                                                                                                                                      Maintaining a
                                                                                                                                                                                     harmonious and              The Bank launched dedicated campaigns to crack down on gang crimes and illegal
                                                                                                                                                                                     stable financial            fund-raising and loan granting. We stepped up the monitoring and analysis of suspicious
                                                                                                                                                                                       environment               transactions, and assisted judicial organs to block the flow of criminal funds.




                                                                                                                                                              Enhancing the protection of intellectual property rights

                                                                                                                                                             The Bank strictly abided by laws and regulations on intellectual property rights (IPRs) protection. We have put in place administrative
                                                                                                                                                             measures and a structure for IPR management. While protecting our own IPRs, such as trademarks and patents, we systematically
AnAMLpublicityactivityofNanningBranch
                                                                                                                                                             regulated the use of IPRs owned by others, to avoid the risk of IPR infringement.




A Dedicated Hua Xia with Craftsmanship                 A Philanthropic Hua Xia with Inclusive Finance           A Sincere Hua Xia with Innovative Services   An Eco-friendly Hua Xia Through Green Development        A Prudent Hua Xia with Compliance      A People-centered Hua Xia Pursuing Happiness for All
92     2020 Social Responsibility Report                                                                                                                                                                                                                                Hua Xia Bank Co., Limited        93




                                                                                                         As of the end of 2020                              Deepening comprehensive risk management
 Strengthening Risk
 Management                                                                                              1.80            %
                                                                                                                                                           We worked constantly to identify, measure, monitor, and control risks in operation and management, eliminated risks in key businesses,
                                                                                                                                                           improved comprehensive risk management, and ensured effective risk management.

                                                                                                         theNPLratioamountedto

The Bank emphasized comprehensive risk management. While implementing the
                                                                                                                                                                                    The Bank implemented economic and financial macro policies and regulatory requirements, made credit,
Comprehensive Risk Management System Reform Plan, we enhanced institutional
development for risk management, and systematically enhanced our ability to forestall                    147.22                 %                                                     investment, and financing policies more forward-looking and adaptable.
                                                                                                                                                                                    The Bank stressed the fulfillment of responsibilities and strengthened risk management for key businesses,
and defuse risks across the board, in a bid to provide reliable support for the sound,                   theallowance-to-NPLratioreached                                              areas, and products.
                                                                                                                                                                                    The Bank adopted multiple methods to dispose of troubled assets faster to ensure the quality of assets.
balanced, sustained and rapid development of all businesses of the Bank.

                                                                                                                                                                                    The Bank launched online valuation of collateral in the form of residential property, improving valuation
                                                                                                                                                                                      efficiency at less costs.
 Improving the risk management system                                                                                                                         Credit risk           The Bank adjusted credit and financing policies to guarantee differentiated support for the development of
                                                                                                                                                             management
                                                                                                                                                                                      manufacturers and MSEs in key regions.
In 2020, the new risk management framework was fully implemented. We integrated                                                                                                     The Bank optimized the credit system and the collateral management system, and worked faster to develop
and optimized the organizational structure, division of responsibilities and allocation of                                                                                            and mapping of the large-sum risk exposure system, etc.

personnel for risk management. In addition, eight mechanisms were put in place, namely
the authorization management mechanism, the approval management mechanism, the
risk manager mechanism, the special-asset operation mechanism, the accountability
mechanism, the mechanism of putting all things under centralized management by                                                                                                      The Bank optimized the market risk quota system and the management process to improve the effectiveness
specialized departments, the technology empowerment mechanism, and the risk culture                                                                                                   of quota control.

mechanism, covering key processes and links of risk management.                                                                                                                     The Bank strengthened the analysis of key businesses and early warnings, and assessed the impacts of
                                                                                                                                                                                      market fluctuations and other major events in a timely manner.
                                                                                                                                                                                    The Bank improved the system for managing credit risks of counterparties and strengthened risk management
                                                                                                                                                                                      for derivatives.

                                                                                                                                                              Market risk           The Bank implemented regulations on market risk management in Basel II, calculated the capital requirement
                                                                                                                                                             management               for market risk based on the revised Standardized Approach, and pushed forward the market risk consulting
     The Bank evaluated and adjusted risk preferences,                                       The Bank revised the Risk Reporting Management                                           project under Basel II.
     formulated a risk management strategy accordingly,                                      Measures to optimize and integrate the content and
     and clarified risk control objectives for the year.                                     process of risk monitoring.




                                                                                                                                                                                    The Bank revised the Administrative Measures for Business Continuity, the Master Contingency Plan
                                                                                                                                                                                      for Business Continuity and the Specifications for the Compilation of the Contingency Plan for Business
                                                                                                                                                                                      Continuity.
     The Bank enabled the Risk Management and Internal                                       The Bank made public the results of risk monitoring
     Control Committee, Credit, Investment and Financing                                     and evaluation, and improved the notification and                                      The Bank sorted out relations between primary or secondary businesses and information systems, defined
     Policy Committee, and Asset Risk Disposal Committee                                     transmission of risk management information.                                             the scope of key information systems, and enhanced their applicability and disaster resilience, to avoid any
     to fully play their roles to improve the quality and
     effectiveness of their deliberation and decisions.                                                                                                                               business interruptions caused by their failure.
                                                                                                                                                                                    The Bank strengthened the regulation over drills and organized more practical drills more regularly. We
                                                                                                                                                          Business continuity
                                                                                                                                                            management
                                                                                                                                                                                      conducted47drillsineightscenariosthroughouttheyear.
                                              Focusing on comprehensive risk evaluation at branches,
                                              performance appraisal of regional chief risk officers,
                                              and assessment of the effect of credit, investment and
                                              financing policies, the Bank continued to improve risk
                                              management.




A Dedicated Hua Xia with Craftsmanship               A Philanthropic Hua Xia with Inclusive Finance          A Sincere Hua Xia with Innovative Services    An Eco-friendly Hua Xia Through Green Development      A Prudent Hua Xia with Compliance    A People-centered Hua Xia Pursuing Happiness for All
94   2020 Social Responsibility Report                                                                                                                                                                                                          Hua Xia Bank Co., Limited        95




A Dedicated Hua Xia with Craftsmanship   A Philanthropic Hua Xia with Inclusive Finance   A Sincere Hua Xia with Innovative Services   An Eco-friendly Hua Xia Through Green Development   A Prudent Hua Xia with Compliance   A People-centered Hua Xia Pursuing Happiness for All
96   2020 Social Responsibility Report                                                                                                                                                                                                                                                      Hua Xia Bank Co., Limited       97




                                                                                                                                                        Promoting democratic management
 Protecting Employee Rights                                                                                                                            The Bank improved democratic management in the basic forms of the Employees’
                                                                                                                                                       Congress. We disclosed corporate information, and offered unimpeded channels for
In strict accordance with relevant laws and regulations, including the Labor Law and
                                                                                                                                                       employee communication, interest coordination and rights protection. Through our
the Labor Contract Law, the Bank earnestly protected employee rights and worked to
                                                                                                                                                       intranet, official WeChat account, bulletin boards, and electronic screens, we promptly
establish harmonious and stable labor relations.
                                                                                                                                                       announced major decisions concerning the vital interests of employees and the
                                                                                                                                                       direction of corporate reform and development, and had equal dialogues and shared
 Promoting equal employment                                                                                                                            development achievements with employees.

Complying with the Law on Promotion of Employment and other relevant laws and                                                                          In 2020, the Employees’ Congress elected the new Board of Supervisors, voted and
regulations, we provided employees with equal employment opportunities. We resolutely                                                                  approved the Bank’s Collective Contract, and revised the Interim Measures for the
opposed any type of employment discrimination and treated employees fairly and                                                                         Disclosure of Corporate Affairs of the Head Office. We effectively protected employees’
equally regardless of their nationalities, races, ages, genders, religious beliefs, and                                                                rightstoknow,participate,deliberate,andsupervise,andwonthetitleoftheNational
cultural backgrounds.                                                                                                                                  Model Unit of Corporate Information Disclosure and Democratic Management in 2020.



In 2020                                                                                                                                                In 2020

 labor contract signing rate:            social insurance coverage rate:                                                                               the Bank received                                adopted and implemented                  organized                                        participated by


 100           %                         100          %                                                                                                1,327
                                                                                                                                                       rational suggestions
                                                                                                                                                                                                       100
                                                                                                                                                                                                        of them
                                                                                                                                                                                                                  %                             347
                                                                                                                                                                                                                                                 staff meetings
                                                                                                                                                                                                                                                                                                  5,986
                                                                                                                                                                                                                                                                                                     first-line employees


                                                                                                                                                       held                                             which were participated by               solicited


                                                                                                                                                       153
                                                                                                                                                       employees’ congresses
                                                                                                                                                                                                       7,319
                                                                                                                                                                                                        employee representatives
                                                                                                                                                                                                                                                264
                                                                                                                                                                                                                                                 proposals
As of the end of 2020


                                                                                                                                                                                                                                                                           1.58   %
                                                                                                                                                                                                                                                                           56 and above

                                                                                                                                                                                                                                             11.48      %
                                                                                                                                                                                                                                             46 – 55




                                                                                                                                                                   13.74   %

                                                                                                                                                                     Master’s

                                                                                                                                                                                     21.94
                                                                                                                                                                     degree
                                                                                                                                                                     or higher




               39,284
              the Bank had a total of
                                                                                                                                                                                               %

                                                                                                                                                                                     Junior college or lower
                                                                                                                                                                                                                                                            29.15      %
                                                                                                                                                                                                                                                                                      57.79   %

                                                                                                                                                                                                                                                                                      35 and below
                                                                                                                                                                                                                                                            36 – 45
                                           employees
                                                                                                                                                                     64.32       %

                                                                                                                                                                     Bachelor’s degree




                                                                          6,931                      51.14 %                       1,785                      breakdown of employees                                                                    breakdown of employees by age
                                                                           were new                  were female               were from ethnic               by education background
                                                                                                                                minority groups




A Dedicated Hua Xia with Craftsmanship              A Philanthropic Hua Xia with Inclusive Finance        A Sincere Hua Xia with Innovative Services   An Eco-friendly Hua Xia Through Green Development               A Prudent Hua Xia with Compliance               A People-centered Hua Xia Pursuing Happiness for All
98     2020 Social Responsibility Report                                                                                                                                                                                                                                                   Hua Xia Bank Co., Limited       99




 Supporting the Development of Employees                                                                                                                     Caring for Employees
We cared about the development of employees and offered them unimpeded development channels. We developed a tiered talent
                                                                                                                                                             Enriching cultural and sports activities
reserve, worked hard to improve employees’ job skills and competencies, and offered platforms for the rapid growth of employees at
different levels and positions to support their career development and realizing personal value.                                                            We cared about the cultural life of employees, and organized diversified cultural and sports
                                                                                                                                                            activities to provide platforms for employees to show their talents, prove themselves, and
                                                                                                                                                            cultivate their sentiments. We encouraged employees to live a healthy and positive life and
                                                                                                                                                            continuously enhanced their cohesion and team spirit.




                                                                                                                                                                                                                                                                                             Scan the QR code to
                                                                                                                                                                                                                                                                                           know more about loving
                                                                                                                                                                                                                                                                                                   stories of
                                                                                                                                                                                                                                                                                                 Hua Xia Bank

                                                                                                                                                            The Head Office organized employees to carry out activities   Group activity of the Employee Yoga Association of
                                                                                                                                                            in Yucun, the birthplace of the "two mountains" concept       Hong Kong Branch



Li Minji, Party Secretary and Chairman of Hua Xia Bank delivering a speech    Retail business training for branch managers
on the 10th Youth Development Forum



                                                                                                         In 2020

                                                                                                         the Bank organized

     Training resources
                                                                                                         4,365
                        We have improved the training system and built training                                                                             GuiyangBranch’s2020NewYearGala                               Harbin Branch co-workers’ visit to the Memorial Hall of
                                                                                                                                                                                                                          the War to Resist US Aggression and Aid Korea
                        base to improve the quality and efficiency of training.

                                                                                                         training sessions
                              We have delivered live-streamed lectures through mobile
     Training channels        learning platforms and APPs, and built a three-dimensional                 for


                                                                                                         370,748
                              training network.



     Training methods         We have offered different levels of training for employees                 participants
                              of different levels and positions.


                                                                                                         including



                                                                                                         979
                                                                                                         CSR training sessions

                                                                                                         for


     The 2020 Brand Communication and
     Management Training of the Head Office
                                                   The 2020 Comprehensive Ability Improvement
                                                   Workshop of Hangzhou Branch
                                                                                                         81,885
                                                                                                         participants

                                                                                                                                                            Haikou Branch organized fun games for employees and their families




A Dedicated Hua Xia with Craftsmanship               A Philanthropic Hua Xia with Inclusive Finance            A Sincere Hua Xia with Innovative Services   An Eco-friendly Hua Xia Through Green Development                  A Prudent Hua Xia with Compliance          A People-centered Hua Xia Pursuing Happiness for All
100   2020 Social Responsibility Report                                                                                                                                                                                                                                    Hua Xia Bank Co., Limited       101




  Building the home of employees                                                                           In 2020                                           Helping employees in need                                                                          In 2020

 The Bank continued to upgrade the Home of Employees where employees could learn,                          the Bank opened                                  The Bank set up an employee relief fund and sent representatives to visit employees                 the Bank helped

 seek entrepreneurship opportunities, exercise their democratic rights, and feel happy
 and cared for. The Home of Employees has fitness equipment, TV sets, reading space,                       892
                                                                                                           Homes of Employees
                                                                                                                                                            in difficulties and bring them care. We offered unimpeded channels to deliver aid
                                                                                                                                                            to employees in need, and expressed sympathy in various forms, to enhance their                     648
                                                                                                                                                                                                                                                                employees in need
 lounges, etc. It is a place where employees can relax themselves and communicate with                                                                      wellbeing and sense of belonging.
 each other.
                                                                                                           including                                                                                                                                            distributed RMB


                                                                                                           87
                                                                                                           Model Homes of Employees
                                                                                                                                                                                                                                                                1.2681
                                                                                                                                                                                                                                                                million of living allowances

                                                                                                                                                                                                                                                                RMB


                                                                                                                                                                                                                                                                989,400
                                                                                                                                                                                                                                                                 of medical subsidies


                                                                                                                                                                                                                                                                RMB


                                                                                                                                                                                                                                                                1.0648
                                                                                                                                                                                                                                                                million of disaster relief subsidies
                                                                                                                                                            Wuxi Branch visited and sent greetings to a hospitalized employee



                                                                                                                                                            Caring about the health and development of female employees, the Bank offered them
                                                                                                                                                            special health examinations regularly, organized various theme activities and symposiums
                                                                                                                                                            for them, solicited their opinions and suggestions, and made sure their concerns were
 The brisk walk activity of Lanzhou Branch                                      Themed Party Day activities for employees of Guangzhou Branch
                                                                                                                                                            addressed effectively.




                                                                                                                                                                                                                                                               The nursing room of Kunming Branch




 The Head office employees participate in table tennis activities                                                                                           The Women’s Day dancing activity of Tianjin Branch                                                The nursing room of Shanghai Branch




 A Dedicated Hua Xia with Craftsmanship                 A Philanthropic Hua Xia with Inclusive Finance         A Sincere Hua Xia with Innovative Services   An Eco-friendly Hua Xia Through Green Development         A Prudent Hua Xia with Compliance   A People-centered Hua Xia Pursuing Happiness for All
102     2020 Social Responsibility Report                                                                                                                                                                                                                       Hua Xia Bank Co., Limited        103




  Building a Harmonious
  and Beautiful Society
  Through Joint Efforts
 Enthusiastic about public welfare, the Bank actively promoted the volunteer spirit and                                                                                                                                                         Hohhot Branch organized poverty alleviation charity
                                                                                                                                                                                                                                                activity
 continued to carry out volunteer activities on a regular basis and contribute to social
 civility and harmony.


      Case

      The Imperfect Music Hall public welfare activity

      InNovember2020,“TheImperfectMusicHall”H5projectcreatedbyHangzhou
      BranchinpartnershipwithTencentwasofficiallylaunched.Theprojectselected25
      children with psychological and physical impairments to form the “Imperfect Band”                                                         Beijing Branch organized employees to learn flower art                                        Jinan Branch organized employee development activity
      and express their inner world through music. The project was marketed both online                     Scan the QR code to
      and offline. As of the end of 2020, the activity had won the attention and support over              know more about “The
      20,000 people.                                                                                       Imperfect Music Hall”



      Case

      Hua Xia Bank Scholarships and Grants Program helps needy student
      complete higher studies

      In May 2020, the Bank and China Foundation for Development of Financial
      Education jointly initiated the Hua Xia Bank Scholarships and Grants Program,
      aiming to support beneficiaries to complete their studies in college. The beneficiaries
      are college students from poor families studying at Lanzhou University, Lanzhou
      University of Finance and Economics, and so on, contributing to poverty alleviation
      through educational support.




                                                                                                                                                  Xiongan Branch organized Party branch activity




 Hua Xia Bank Scholarships and Grants Award Ceremony of Lanzhou University



 A Dedicated Hua Xia with Craftsmanship             A Philanthropic Hua Xia with Inclusive Finance   A Sincere Hua Xia with Innovative Services   An Eco-friendly Hua Xia Through Green Development        A Prudent Hua Xia with Compliance   A People-centered Hua Xia Pursuing Happiness for All
104   2020 Social Responsibility Report                                                                                                                                                                                                                      HuaXiaBankCo.,Limited
                                                                                                                                                                                                                                                             Hua Xia Bank Co., Limited          105




                                                                                                                                               Practicing the mission and serving              Promoting FinTech innovation and co-              Coping with climate change and
                                                                                                                                               the real economy                                creating a better life                            building a beautiful homeland



                                                                                                                                               In response to major national development       We will speed up digitalization, empower          We will continue to improve our green



 Outlook
                                                                                                                                               strategies, such as the coordinated             businesses with technological innovation,         financial service system, strengthen
                                                                                                                                               development of Beijing-Tianjin-Hebei            and provide customers with high-quality           international cooperation in green finance,
                                                                                                                                               region, the integration of the Yangtze          and efficient financial services. We will         practice ESG investment, support green
                                                                                                                                               River Delta Region, and the construction        protect the legitimate rights and interests       and low-carbon development and the
 The year 2021 marks the centenary of the founding of the CPC, the launching of a new                                                                                                          of employees, emphasize employee care,            creation of a circular economy, and
                                                                                                                                               of the Guangdong-Hong Kong-Macao
 journey towards building a modern socialist China in all respects, and the first year of the                                                                                                  and grow together with employees. We will         facilitate the realization of the targets of
                                                                                                                                               Greater Bay Area, we will support the
 Bank’s renewed five-year development plan. We will continue to follow the guidance of Xi                                                                                                     carry out financial knowledge education           peaking carbon emissions by 2030 and
                                                                                                                                               transformation and upgrading of industrial
 Jinping Thought on Socialism with Chinese Characteristics for a New Era, and assume                                                                                                           and publicity, devote to public welfare           realizing carbon neutrality by 2060. We
                                                                                                                                               structure, China’s opening up process, the
 our economic, social and environmental responsibilities more firmly and proactively. We                                                                                                       undertakings, and join hands with the             will pay attention to our impacts on the
                                                                                                                                               development of private enterprises, and
 will keep forging ahead, and strive to develop into a modern financial group that is “large                                                                                                  people to create a better life.                   environment, fully practice green office,
                                                                                                                                               other important areas of the real economy.
 and strong, stable and excellent”.                                                                                                                                                                                                             promote green procurement, devote to
                                                                                                                                               Besides, we will vigorously promote rural
                                                                                                                                               revitalization, the innovation of financial                                                       environmental protection-oriented public
                                                                                                                                               products and service models, continue to                                                          welfare activities, and push forward
                                                                                                                                               increase the coverage of and customers’                                                          ecological progress.
                                                                                                                                               satisfaction for our financial services
                                                                                                                                               targeting small and micro enterprises,
                                                                                                                                               and usher in a new era of high-quality
                                                                                                                                               development of the real economy.

 A Dedicated Hua Xia with Craftsmanship          A Philanthropic Hua Xia with Inclusive Finance   A Sincere Hua Xia with Innovative Services   An Eco-friendly Hua Xia Through Green Development     A Prudent Hua Xia with Compliance       A People-centered Hua Xia Pursuing Happiness for All
106   2020 Social Responsibility Report                                                                                                                                                                                          Hua Xia Bank Co., Limited       107




 Appendix
 Reporting Index

 GRI Content Index

  Standard number and description                                                                        Page      Note   Standard number and description                                                                       Page              Note
  GRI 101:Foundation                                                                                                                                       102-40 List of stakeholder groups                                   P13

  GRI 102:General disclosures                                                                                                                              102-42 Identifying and selecting stakeholders                       P12-13
                                                                                                                           Stakeholder engagement
                                    102-1 Name of the organization                                       P8                                                 102-43 Approach to stakeholder engagement                           P13

                                    102-2 Activities, brands, products, and services                     P8                                                 102-44 Key topics and concerns raised                               P12-13

                                    102-3 Location of headquarters                                       P8                                                 102-45 Entities included in the consolidated financial statements   P1

                                    102-4 Location of operations                                         P8                                                 102-46 Defining report content and topic Boundaries                 P1

                                    102-5 Ownership and legal form                                       P8                                                 102-47 List of material topics                                      P12

       Organization profile         102-6 Market served                                                  P8                                                                                                                                       No
                                                                                                                                                                                                                                P106-108
                                                                                                         P8
                                                                                                                                                            102-48 Restatements of information                                                    information
                                    102-7 Scale of the organization
                                                                                                                                                                                                                                                  is restated.
                                    102-8 Information on employees and other workers                     P8
                                                                                                                                                                                                                                                  There were
                                    102-11 Precautionary Principle or approach                           P86-93                                                                                                                                   no major

                                                                                                         P11                                                                                                                    P106-108
                                                                                                                                                                                                                                                  changes
                                    102-12 External initiatives                                                                                             102-49 Changes in reporting
                                                                                                                                                                                                                                                  in topics
                                    102-13 Membership of associations                                    P11                  Reporting practices                                                                                                 disclosed in

                                                                                                         P4-7
                                                                                                                                                                                                                                                  the report.
                                    102-14 Statement from senior decision-maker
             Strategy                                                                                                                                                                                                           P1
                                                                                                         P4-7
                                                                                                                                                            102-50 Reporting period
                                    102-15 Key impacts, risks, and opportunities
                                                                                                                                                                                                                                P1
                                                                                                         P8, P11
                                                                                                                                                            102-51 Date of most recent report
                                    102-16 Values, principles, standards, and norms of behavior
       Ethics and integrity                                                                                                                                                                                                     P1
                                                                                                         P11
                                                                                                                                                            102-52 Reporting cycle
                                    102-17 Mechanisms for advice and concerns about ethics
                                                                                                                                                                                                                                P1
                                                                                                         P9
                                                                                                                                                            102-53 Contact point for questions regarding the report
                                    102-18 Governance structure
                                                                                                                                                                                                                                P106-108
                                                                                                         P11
                                                                                                                                                            102-54 Claims of reporting in accordance with the GRI Standards
                                    102-19 Delegating authority
                                                                                                                                                            102-55 GRI content index                                            P106-108
                                                                                                       P11-17
                                    102-20 Executive-level responsibility for economic, environmental,
                                    and social topics                                                                                                       102-56 External assurance                                           P111-112

                                                                                                         P12-13                                                                                                                 P12, P32-57
                                    102-21 Consulting stakeholders on economic, environmental, and
                                                                                                                                                            103-1 Explanation of the material topic and its boundary
                                    social topics                                                                           GRI 200         GRI 103
                                                                                                                           Economic       Management 103-2 The management approach and its components                           P32-57
                                                                                                         P9
                                    102-22 Composition of the highest governance body and its
                                                                                                                             topics        approach
                                                                                                                                                                                                                                P32-57
                                    committees
                                                                                                                                                            103-3 Evaluation of the management approach
                                                                                                         P4-5
                                                                                                                                                                                                                                P15
                                    102-23 Chair of the highest governance body
                                                                                                                                                            201-1 Direct economic value generated and distributed
           Governance                                                                                                          GRI 201 Economic
                                                                                                         P9
                                    102-26 Role of highest governance body in setting purpose,
                                                                                                                                                                                                                               P74-85
                                    values, and strategy                                                                         performance                201-2 Financial implications and other risks and opportunities due
                                                                                                                                                            to climate change
                                                                                                         P11-13
                                    102-29 Identifying and managing economic, environmental, and
                                    social impacts                                                                         GRI 203 Indirect economic 203-1 Infrastructure investments and services supported                    P32-57

                                    102-30 Effectiveness of risk management processes                    P92-93                     impacts          203-2 Significant indirect economic impacts                                P32-57

                                    102-31 Review of economic, environmental, and social topics          P11-13                                             103-1 Explanation of the material topic and its boundary            P83
                                                                                                                             GRI 204    GRI 103
                                    102-32 Highest governance body’s role in sustainability reporting   P11              Procurement Management 103-2 The management approach and its components                               P83
                                                                                                                            practices  approach
                                    102-33 Communicating critical concerns                               P13                                                103-3 Evaluation of the management approach                         P83

                                    102-34 Nature and total number of critical concerns                  P12-13
108     2020 Social Responsibility Report                                                                                                                                                                                                         Hua Xia Bank Co., Limited     109




  Standard number and description                                                                       Page                   Note   PRB Content Index

                        GRI 103                                                                                                        Reporting and Self-Assessment Requirements                                                                             Reference
                      Management 103-2 The management approach and its components                       P90-91
       GRI 205         approach                                                                                                        Principle 1: Alignment
        Anti-
                                      205-1 Operations assessed for risks related to corruption         P90-91
      corruption                                                                                                                       1.1 Describe (high-level) your bank's business model, including the main customer segments served,
                                                                                                                                       types of products and services provided, the main sectors and types of activities, and where relevant the
                                                                                                        P90-91
                                      205-2 Communication and training about anti-corruption policies
                                      and procedures                                                                                   technologies financed across the main geographies in which your bank has operations or provides products           P4-8, P11-13, P33,
                                                                                                                                                                                                                                                            P47, P59, P75,
                                                                                                                                       and services.
                                      103-1 Explanation of the material topic and its boundary          P12, P32-57
       GRI 300          GRI 103
      Environmental   Management 103-2 The management approach and its components                       P74-85
                                                                                                                                       1.2 Describe how your bank has aligned and/or is planning to align its strategy to be consistent with and               P87, P95
        topics         approach                                                                                                        contribute to society's goals, as expressed in the Sustainable Development Goals (SDGs), the Paris Climate
                                      103-3 Evaluation of the management approach                       P74-85                         Agreement, and relevant national and regional frameworks.
                                      302-1 Energy consumption within the organization                  P83
                                                                                                                                       Principle 2: Impact and Target Setting
            GRI 302 Energy            302-4 Reduction of energy consumption                             P83
                                                                                                                                                                     Show that your bank has identified the areas in which it has its most
                                      302-5 Reductions in energy requirements of products and services P82-83
                                                                                                                                       2.1 Impact Analysis           significant (potential) positive and negative impact through an impact
                                      103-1 Explanation of the material topic and its boundary          P12, P18-31, P94-103                                         analysis.
                  GRI 103
    GRI 400
                Management 103-2 The management approach and its components                             P18-31, P94-103                                              Show that the bank has set and published a minimum of two Specific,
  Social topics
                 approach
                                      103-3 Evaluation of the management approach                       P18-31, P94-103                                              Measurable (can be qualitative or quantitative), Achievable, Relevant and
                                                                                                                                                                     Time-bound (SMART) targets, which address at least two of the identified
                                      401-1 New employee hires and employee turnover                    P96                                                          “areas of most significant impact”, resulting from the bank’s activities and
         GRI 401 Employment                                                                                                                                          provision of products and services.
                                                                                                        P99-101
                                      401-2 Benefits provided to full-time employees that are not
                                      provided to temporary or part-time employees
                                                                                                                                                                     Show that these targets are linked to and drive alignment with and greater
                                      404-1 Average hours of training per year per employee             P98                                                          contribution to appropriate Sustainable Development Goals, the goals of
         GRI 404 Training and                                                                                                          2.2 Target Setting
                                                                                                                                                                     the Paris Agreement, and other relevant international, national or regional
                                                                                                        P98
              education               404-2 Programs for upgrading employee skills and transition
                                                                                                                                                                     frameworks. The bank should have identified a baseline (assessed against a
                                      assistance programs
                                                                                                                                                                     particular year) and have set targets against this baseline.
        GRI 405         GRI 103  103-2 The management approach and its components                       P96-97
       Diversity      Management                                                                                                                                     Show that the bank has analysed and acknowledged significant (potential)
                       approach  103-3 Evaluation of the management approach                            P96-97                                                       negative impacts of the set targets on other dimensions of the SDG/climate
       and equal
                                                                                                                                                                     change/society’s goals and that it has set out relevant actions to mitigate          P4-7, P11-14, P16,
      opportunity                     405-1 Diversity of governance bodies and employees                P96-97
                                                                                                                                                                                                                                                              P39, P74-85
                                                                                                                                                                     those as far as feasible to maximize the net positive impact of the set targets.
                                      103-1 Explanation of the material topic and its boundary          P72, P102-103
        GRI 413         GRI 103                                                                                                                                      Show that your bank has defined actions and milestones to meet the set
         Local        Management 103-2 The management approach and its components                       P72, P102-103                                                targets.
      communities      approach
                                                                                                        P72, P102-103
                                                                                                                                       2.3 Plans for Target
                                      103-3 Evaluation of the management approach
                                                                                                                                       Implementation and            Show that your bank has put in place the means to measure and monitor
                                      103-1 Explanation of the material topic and its boundary          P66-73                         Monitoring                    progress against the set targets. Definitions of key performance indicators,
                        GRI 103
                                                                                                        P66-73
       GRI 416                                                                                                                                                       any changes in these definitions, and any rebasing of baselines should be
                      Management 103-2 The management approach and its components
      Customer                                                                                                                                                       transparent.
                       approach
      health and                      103-3 Evaluation of the management approach                       P66-73
                                                                                                                                                                     For each target separately:
        safety
                                                                                                       P71-73
                                      416-1 Assessment of the health and safety impacts of product and                                                               Show that your bank has implemented the actions it had previously defined to
                                      service categories                                                                                                             meet the set target.
        GRI 417 Marketing and                                                                                                                                        Or explain why actions could not be implemented / needed to be changed
                                                                                                        P71-73
                                      417-1 Requirements for product and service information and
                                                                                                                                       2.4 Progress on
               labeling               labeling                                                                                                                       and how your bank is adapting its plan to meet its set target.
                                                                                                                                       Implementing Targets
                                                                                                                                                                     Report on your bank’s progress over the last 12 months (up to 18 months in
                                                                                                                                                                     your first reporting after becoming a signatory) towards achieving each of
                                                                                                                                                                     the set targets and the impact your progress resulted in. (where feasible and
                                                                                                                                                                     appropriate, banks should include quantitative disclosures)
110     2020 Social Responsibility Report                                                                                                                                          Hua Xia Bank Co., 111
                                                                                                                                                                               华夏银行股份有限公司 Limited   111




                                                                                                                                            第三方审验意见
                                                                                                                                                Independent Assurance Report


      Reporting and Self-Assessment Requirements                                                                          Reference

      Principle 3: Clients and Customers

      3.1 Provide an overview of the policies and practices your bank has in place and/or is planning to put in
      place to promote responsible relationships with its customers. This should include high-level information on
      any programmes and actions implemented (and/or planned), their scale and, where possible, the results
      thereof.                                                                                                         P19, P21, P26-57,

      3.2 Describe how your bank has worked with and/or is planning to work with its clients and customers to               P64-82
      encourage sustainable practices and enable sustainable economic activities. This should include information
      on actions planned/implemented, products and services developed, and, where possible, the impacts
      achieved.

      Principle 4: Stakeholders

      4.1 Describe which stakeholders (or groups/types of stakeholders) your bank has consulted, engaged,

                                                                                                                             P13
      collaborated or partnered with for the purpose of implementing these Principles and improving your bank’s
      impacts. This should include a high-level overview of how your bank has identified relevant stakeholders and
      what issues were addressed/results achieved.

      Principle 5: Governance & Culture

      5.1 Describe the relevant governance structures, policies and procedures your bank has in place/is planning
      to put in place to manage significant positive and negative (potential) impacts and support effective
      implementation of the Principles.

      5.2 Describe the initiatives and measures your bank has implemented or is planning to implement to foster a
      culture of responsible banking among its employees. This should include a high-level overview of capacity
      building, inclusion in remuneration structures and performance management and leadership communication,         P9, P11-13, P81-85,
      amongst others.                                                                                                        P98

      5.3 Governance Structure for Implementation of the Principles
      Show that your bank has a governance structure in place for the implementation of the PRB, including:
      a) target-setting and actions to achieve targets set
      b) remedial action in the event of targets or milestones not being achieved or unexpected negative impacts
      being detected.

      Principle 6: Transparency & Accountability

                                     Show that your bank has progressed on implementing the six Principles over
                                     the last 12 months (up to 18 months in your first reporting after becoming a
                                     signatory) in addition to the setting and implementation of targets in minimum
                                     two areas (see 2.1-2.4).
                                                                                                                      Showed in this
                                     Show that your bank has considered existing and emerging international/
      6.1 Progress on                                                                                                 report and Annual
                                     regional good practices relevant for the implementation of the six Principles
      Implementing the Principles                                                                                     Report 2020 of
                                     for Responsible Banking. Based on this, it has defined priorities and
      for Responsible Banking                                                                                         Hua Xia Bank Co.,
                                     ambitions to align with good practice.
                                                                                                                      Limited
                                     Show that your bank has implemented/is working on implementing changes
                                     in existing practices to reflect and be in line with existing and emerging
                                     international/regional good practices and has made progress on its
                                     implementation of these Principles.
112 2020 年社会责任报告
  112 2020 Social Responsibility Report                                                                                            Hua Xia Bank Co., Limited   113




                                          Feedback Form




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                                                to provide you and other stakeholders with more valuable information and improve our ability and
                                                level of CSR fulfillment, we would love for you to share your comments on this report and send your
                                                feedback as follows:



                                                Tel: 010-85237056
                                                Fax: 010-85239000
                                                Email: zhshzr@hxb.com.cn
                                                Postal code: 100005
                                                Address: 22 Jianguomennei Street, Dongcheng District, Beijing


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