02 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 03
Integrity, prosperity
and harmony
2021
Caitong Securities
Environmental, Social and
Governance (ESG) Report
Official website: https://www.ctsec.com/
Headquarters address: West Building, Caitong Shuangguan Building,
WeChat subscription Caitong No. 198 Tianmushan Road, Xihu District, Hangzhou, Zhejiang Province
account Securities App
04 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 05
Contents
01 ESG Statement from the Board of Promoting High-quality Economic and
Directors Social Development Creating an Environmentally Friendly Ecosystem
74 Key Quantitative
E
19 Supporting the building of the demonstration zone for 45 Practicing the responsible investment concept Performance
03 Highlights in 2021 common prosperity
48 Accelerating the development of green finance 80 Report Index
23 Helping Zhejiang become a pioneer province for
socialist modernization 49 Sticking with green and low-carbon operation 83 About the Report
About Caitong Securities 26 Being a comprehensive financial service provider
based in Zhejiang
05 Company profile
27 Speeding up the development of “CDi-wisdom”
07 Organizational structure
Shouldering Responsiblities in the New Era
10 Honors of Caitong Securities
55 Providing professional and high-quality services
56 Valuing data security and privacy protection
S
Strengthening ESG Management Building a Modern Governance System
57 Strengthening investor protection
13 ESG concepts 31 Consolidating the culture cornerstones
59 Fulfilling social responsibilities
14 Communication with stakeholders and 35 Improving corporate governance
analysis of material topics 65 Building a happy workplace
37 Improving the compliance and risk control system
G
40 Keeping good business ethics
Integrity, prosperity and harmony
1 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 2
ESG Statement from the Board of Directors
The year 2021 marked the 31st anniversary of the establishment Committee is responsible for identifying ESG opportunities for the “Phoenix Action” plan and the smooth financing project. We deepened digital and intelligent reform through ever-
of China’s capital market. Facing the turbulent international and risks, formulating ESG strategies, goals and policies, and We continued to deepen the “financial advisory system”, increasing innovation.
situation and the lasting COVID-19 impacts, the Chinese capital determining the materiality of ESG matters and incorporating and launched the innovative pilot project of establishing the
market blazed a new trail through course change. As a result, them into business considerations. The Board of Supervisors demonstration zones of comprehensive financial services. By We continued to support the digital and intelligent reform through
the registration-based initial public offering (IPO) mechanism is responsible for supervising ESG management. The doing so, we tried to provide “Zhejiang experience” for supply- technological empowerment. We stepped up the development of
was promoted steadily, the Beijing Stock Exchange was officially Management is responsible for managing ESG work. We took side reform in the financial sector. We made all-out efforts to IT infrastructure, and deepened the research and application of
opened, the number of A-share IPOs reached a record high, and ESG management as an important means to drive us forward support the key areas of inclusive finance. By initiating the cloud computing, big data and other technologies. Centering on
the reform of the capital market ecosystem went further. and rooted it in our corporate culture and business development inclusive wealth management project, giving one hundred public customers and employees, we created “CDi-wisdom”, a digital
strategies. welfare lectures on investor education, making one hundred ecosystem covering wealth, investment banking, investment
In 2021, the first year of the 14th Five-Year Plan period, Zhejiang media reports on investor education, and setting up an investor research, supervision, operations and management. Leveraging
acted as a pioneer in striving for the glorious mission of growing education team of one hundred members, we empowered and our FinTech advantages, we inspired business innovation,
E prudence.
We strode toward green development with diligence and
into a demonstration zone for common prosperity through high- supported the building of Zhejiang into a demonstration zone for optimized customer experience, and facilitated background
quality development. As a securities trader under the Zhejiang common prosperity. operations, to achieve better ESG management.
provincial government, Caitong Securities always adhered to In an active response to the call of the CPC Zhejiang Provincial
the corporate culture of integrity and harmony, put its customers We developed a solid compliance and risk control system Looking back to 2021, we feel so blessed to have witnessed the
Committee and the People’s Government of Zhejiang Province,
first, stayed true to the original aspiration of providing financial for compliant and prudent operations on all fronts. With the thriving of the Chinese capital market; looking ahead to 2022,
we provided financial support for the realization of the “carbon
services to boost economic development, and focused on corporate culture of “giving priority to compliance and risk control we still have a long way towards our original aspirations. In
peak and carbon neutrality” goals and the implementation of the
fulfilling social responsibilities with professional competence. and highlighting integrity and innovation”, we kept building and the current historical stage marked by major changes unseen
principle that “lucid waters and lush mountains are invaluable
We continued to improve our ESG governance system and refining our digital compliance and risk management system in a century and by the solid promotion of common prosperity,
assets”. We practiced value investment and responsible
practiced the principles of responsible investment. We served so that it could match our businesses and help us achieve we are fully aware that it is a long and tough road to develop
investment, intensified the studies on green finance, and
the overall situation, empowered the real economy, deepened operational goals. We implemented compliance culture in daily sustainable green finance; we deeply understand that only with
expanded the value and coverage of green bonds. We supported
our commitment to the Zhejiang market, and kept deepening the work, and organically integrated ESG risk control and business the consistent devotion and determination to practicing ESG
the transformation and upgrading of the new energy industry,
development of “CDi-wisdom” included ESG in our group-wide development to ensure our sustainability. concepts can we turn the blueprint into reality and turn our
explored green asset securitization and other businesses, and
strategies, business development, corporate culture, compliance responsibilities into value. As a state-owned securities trader,
issued asset management products based on ESG strategies.
and risk control and other aspects. Meanwhile, we made We took multiple measures to deliver positive energy to the Caitong Securities will shoulder the responsibilities of the times,
We channeled and promoted the flow of more funds into the
continuous efforts to promote sustainable finance, green finance, society. We supported rural revitalization and consolidated the identify and respond to the changes with wisdom and proper
investment and financing activities addressing climate change,
public welfare and the like. By doing so, we strove to create results of poverty alleviation by providing financial assistance, measures, and pursue reform with courage and perseverance.
and strengthened financial support for carbon peaking and
inclusive shared value for all stakeholders. supporting industries and education, launching pro-consumption In doing so, we will keep working hard at full speed to set out for
carbon neutrality goals. We acted with frugality, deepened
campaigns, and providing sympathy and support for people the new journey of development!
low-carbon operations, and reduced our own operational and
in difficulties. We established the Caitong Public Welfare
G and reform.
erefinedourgovernancesystemthroughinnovation business carbon emissions, to fully develop a green workstyle
Foundation, which relied on the systematic and standardized
and lifestyle.
operation of the public welfare brand, “Kind Hearts”, to mobilize
April 2022
In recent years, we have worked faster on the top-level design all sectors of society to support public welfare and turn little
S commitment to our original aspirations.
We shouldered social responsibilities with the consistent contribution into great love for the society. In 2021, we deeply
of our ESG management system. We established the Strategy
and ESG Committee under the Board of Directors to develop fulfilled our social responsibilities as a state-owned financial
the ESG governance structure and execution system. As an enterprise, continuing to support public education, medical and
We served the overall situation by actively engaging in high- health care, cultural succession and other public welfare areas.
organ to make ESG-related decisions, the Strategy and ESG quality economic development. We acted as the main force
3 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 4
Highlights in 2021
Economic performance Social performance
Total assets Business income Total number of employees Training hours per employee
RMB 110.425 billion RMB 6.408 billion 3,464 Person 120.08 Hours
Basic earnings per share Social contribution value Complaint handling rate Customer satisfaction
per share
0.71 RMB/share 100 % 93.47 %
2.40 RMB
Charity funds invested Volunteer service hours per employee
Environmental performance
RMB 24.1128 million 78 Hours
GHG emissions per unit area Power consumption per unit area
Note 1: The total number of employees, the training hours per employee and the volunteer service hours per employee covered the parent
0.09 tCO e/m 2
2
0.14 MWh/m 2
company of Caitong Securities.
Note 2: The data on complaint handling rate and customer satisfaction covered the headquarters of the parent company of Caitong
Securities.
Note 3: The data on Charity funds invested covered the parent company of Caitong Securities and its subsidiaries.
Natural gas consumption per unit area Water consumption per unit area
0.97 m /m 3 2
0.75 m /m 3 2
Note: The data on environmental performance covers the headquarters of Caitong Securities in Hangzhou, the headquarters of Caitong
Securities Asset Management in Shanghai, the headquarters of Caitong Capital, the headquarters of Caitong Innovation, and the
headquarters of Caitong (Hong Kong).
5 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 6
About Caitong Securities
Caitong Securitis Group Structure
Companyprofile
Caitong Securities Co., Ltd. (“Caitong Securities” or “the Company”) is a characteristic comprehensive securities
group headquartered in Hangzhou. Founded as Zhejiang Financial Securities Co., Ltd. in 1993, the Company was
restructured into Caitong Securities Brokerage Co., Ltd. in June 2003, upgraded to a state-owned enterprise directly
under the Zhejiang provincial government in June 2007, and listed on the Shanghai Stock Exchange in October A distinctive
2017. As at December 31, 2021, the Company had total consolidated assets of RMB 110.425 billion, and net assets topnotch asset
attributable to the parent company of RMB 25.205 billion. manager in China
With more than two decades of endeavor, the Company has grown into a fully-functional securities trader operating
licensed businesses such as futures, funds, asset management, equity investment, and overseas services, and has Focuses on emerging Features
laid a solid foundation for its group-oriented development. areas to build into industry-leading
a distinctive and comprehensive active
professional equity management services
Caitong Securitis Main Businesses
investment institution
Securities brokerage/Futures Equity financing/Debt financing
brokerage Financial consultancy/M&A
Wealth Investment
Offshore brokerage (securities NEEQ/Overseas services
management bank
and futures)
Securities margin trading/stock Features professional Ranks among the
pledge financing private fund investment top Chinese futures
Margin (Hong Kong) and the characteristic companies in terms
financial services for of comprehensive
Securities research/Investment
the government strength
consultancy
Asset Investment Actively builds an
Securities asset management management management Equity investment investment and
financing bridge for
Futures asset management Fixed-income investment overseas listing
Securities investment funds Direct equity investment
Cross-border asset management Market making services
Private equity funds Alternative investment
8
2021 Environmental, Social and Governance (ESG) Report
Caitong Fund Management Co., Ltd.
Yongan Futures Co., Ltd.
Zhejiang Caitong Capital
Caitong Securities Asset
Management Co., Ltd.
(Hong Kong) Co., Ltd.
Investment Co., Ltd.
Investment Co., Ltd.
Caitong Innovation
Caitong Securities
6 Subsidiaries
155 Branches and Business Offices
Office of the Board of Supervisors
Finance Derivatives Department
Fixed Income Department
Investment Management
Department
Investment Banking Comprehensive
Management Department
Capital Market Department
M&A Financing Department
Remuneration and Nomination Committee
SME Financing Department
Strategy and ESG Committee
Risk Control Committee
Bond financing Department II
Audit Committee
Bond Financing Department
Sci-Tech Innovation Board
Financing Department
Board of Supervisors
Equity Financing Department
Research Institute
FinTech R&D Department
Strategic Account Department
Shareholders’ General Meeting
Comprehensive Wealth
Management Department
Operation Management
Board of Directors
Credit Business Department
Financial Product Center
Asset Custody Department
Institutional Marketing Department
Wealth Business Department
Wealth Client Department
Digital Finance Department
Clearing and Depository Center
Office of the Board of Directors
Operation Center
System Operation and Maintenance
Department
Examination and Audit Department
Compliance Department
Organizational structure
Risk Management Department
Planning and Finance Department
Planning and Development
Department
Organization and Human Resources
Department
Office of Labor Union
The Second Division of
Inspection Team
The First Division of Inspection
Team
Party-Masses Affairs Department
Caitong Securities
(Office of Inspection)
General Office
7
9 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 10
Honors of Caitong Securities
Award of Outstanding Contribution Award of Service Innovation to The First Prize for Zhejiang-based 2021 Golden Bull Broker 2021 Junding Award for Chinese
to the Smooth Financing Project the Smooth Financing Project of Financial Institutions Supporting Local Collective Asset Manager Asset Managing Brokers
of Zhejiang Province in 2020 Zhejiang Province in 2020 Economic and Social Development in 2020 China Securities Journal Securities Times
The People's Government of The People's Government of The People's Government of
Zhejiang Province Zhejiang Province Zhejiang Province
Listed in the First Financial Bond Business Progress The Refinancing Team Most 2021 Junding Award for Chinese 2021 Junding Award for Chinese
Holding Enterprise Rankings Award Respected by Listed Companies Equity Investment Teams Fixed-income Investment Teams
for Best Innovation China Central Depository & Securities Times Securities Times Securities Times
Zhejiang Provincial Financial Clearing Co., Ltd.
Holding Enterprise Association
2021 Fixed-income Award for Chinese An Excellent Active Managing
Outstanding CPPCC Members’ The Best New Brand Panorama Gold Award for Investor Brokers Asset Management Broker of 2021
Office (Work Station) Relations (2020) - Award for Interactions China Fund News 21st Century Business Herald
People's Daily I International
CPPCC Daily, and CPPCC News
with Small and Medium Investors
Finance News
Network Panorama Network
Note: The winner of the awards above is
Listed in the 3rd Financial “Jinyan Award” among the First Excellent Case of Cultural Caitong Securities Asset Management.
Rankings for Financial Service Jinqu Rankings for Being a Pioneer Development in 2021
Innovation of the Year in Serving Zhejiang’s Development National Business Daily
……
Zhejiang TV Economic Life Financial Services Committee of
Channel Zhejiang(s) Entrepreneurs Association
A Top 20 Most Valuable Brand
among Chinese Listed Securities
Note: The winner of the awards
Companies in 2021
above is Caitong Securities.
School of Economics and Management,
Tsinghua University
Strengthening
ESG Management
ESG concepts
Communication with stakeholders and analysis of material topics
13 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 14
ESG concepts Communication with stakeholders and analysis of material topics
Following the principle of “guiding the high-quality development of the Group with high-quality Communication with stakeholders Communication channels and
Strengthening ESG Management
Stakeholders Concerns
Party building”, Caitong Securities focuses on the vision of “deepening the commitment to the methods
S hareholders’ General Meeting
Zhejiang market, serving the country, and striving to be a first-class securities firm”. By playing the The Company attaches great importance to the
role of the Company’s party committee in charting the course, managing the overall situation, and effective communication with all stakeholders. Corporate governance R egular information disclosure
ensuring sound implementation, the Company fully integrates Party building into its central work It has established regular communication Compliant operation Investor research and interaction
Shareholders Risk management P erformance presentation
to guide development. Meanwhile, the Company motivates all of its Party organizations and Party mechanisms with the stakeholders such as and investors meetings
members to struggle for the goals of building a first-class securities firm, serving the real economy, shareholders, investors, customers, employees,
and assuming the responsibilities as a state-owned enterprise. In doing so, the Company maintains government and regulators, suppliers and C ustomer service
improvement C ustomer service hotline 95336
Information security and
partners, and the community. Their expectations
C aitong Securities App
a solid stance that “finance serves the real economy”.
and demands have been thoroughly understood privacy protection
C ustomer satisfaction survey
Under the leadership of Party building, the Company adheres to the consistent concept and mission and responded to, and their key concerns F inTech C onstruction of investor education
of achieving both economic and social benefits. While pursuing its high-quality development, the Customers S erving the real economy bases
Investor education
have been incorporated into daily operations
Company considers the major concerns of all stakeholders, and commits itself to building a modern and decision-making processes with a view to
governance system and an environment-friendly ecosystem as well as demonstrating social creating shared value. P rotection of employees’ T he workers’ congress
“ Talent Gathering” series training
rights and interests
responsibilities in the new era.
E mployee development sessions
E mployee activities
and training
E mployee benefits
C are from Labor Unions
D evelopment of corporate
“ Caitong Day” activities
Employees
culture
C orporate governance
P articipation in government survey
C ompliant operation
E nhancement of compliance risk
R isk management
S erving the real economy
control
Implementation of the financial
P romoting inclusive advisory system
B uilding of investor education
Government and finance
regulators Investor education bases
D evelopment of corporate A dvancement of industry culture
culture
C ooperation and communication
S upplier management
Suppliers and
C ontract performance
partners
V olunteer services
R ural revitalization P ublic benefit activities
P ublic benefits G reen office
G reen operation G reen finance
Communities Investor education C onstruction of investor education
bases
15 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 16
Identificationandanalysisofmaterialtopics
In 2021, the Company Analysis Process of Material Topics
identified and disclosed
in detail the material ESG Identification
topics crucial to itself and
The Company deeply interpreted national policies and industry hot issues to identify the
its stakeholders, based on
responsibility orientation in the securities industry.
the domestic and foreign
The Company identified 18 material topics based on the domestic and international policy
policy trends, the work
standards and disclosure guidelines, as well as its operation situation and strategic focuses.
priorities of the securities
industry, its own strategies Evaluation
and development vision, the
T hrough departmental interviews, expert consultation and other means, the Company
expectations and demands
evaluated 18 topics from the dimensions of the significance to stakeholders and the
of its stakeholders, as well
significance of Caitong Securities to economic, environmental and social impacts.
as peer benchmarks, expert
judgments and the like. Disclosure
A ccording to the evaluation results, the Company created a material topic matrix and
disclosed the key topics identified in detail.
Material Topic Matrix
High
优化客户服务
Customer service improvement
FinTech
员工福利
Employee benefits Compliant operation
Serving the real
员工权益保障
Protection of economy Risk management
employees’ rights and interests
风险管理 Employee development Promoting inclusive
Significance to stakeholders
Risk management
乡村振兴
and training finance
Rural revitalization
社会公益
Information security and Investor education
Public benefits privacy protection
Supplier management Corporate governance
Green operation Development of corporate culture
Medium High
Significance of Caitong Securities to economic, environmental and social impacts
Topic
Promoting High-quality Economic
and Social Development
Supporting the building of the demonstration zone for common prosperity
Helping Zhejiang become a pioneer province for socialist modernization
BeingacomprehensivefinancialserviceproviderbasedinZhejiang
Speeding up the development of “CDi-wisdom”
19 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 20
Supporting the building of the
Activelyadvancingthefinancialadvisorysystem
demonstration zone for common prosperity
In 2018, in order to comprehensively promote the supply-side reform in financial sector, Caitong Securities organized and
worked with other Zhejiang-based financial institutions to establish the Financial Services Committee (“FSC”) of Zhejiang(s)
Leveragingfinancialadvantagestopromote“commonprosperity” Entrepreneurs Association and to develop the first financial advisory system in China. The Company returned to the original
aspiration of providing financial services to boost economic development, and offered financial services that matched the needs
In June 2021, the CPC Central Committee and the State Council issued the Opinions on Supporting the Building of Zhejiang into of the real economy.
a Demonstration Zone for Common Prosperity through High-quality Development, setting a glorious mission to pioneer the path
towards common prosperity in Zhejiang and make the province a model for the country.
The financial advisory system features the “1 + N” service model. “1” refers to the financial advisors whose appointment
State-owned enterprises have a bounden duty to fulfill social responsibilities, and promoting common prosperity is the very contributes to the active exploration of the service relationship between financial talents and local governments and enterprises,
as well as to the establishment of a mechanism for these talents to deeply communicate with local governments and
starting point and focus of finance. Thus, Caitong Securities, a state-owned securities trader under the Zhejiang provincial
enterprises. “N” refers to the numerous institutions where these financial advisors come from. The “1+N” chain model integrates
government, is duty-bound to capitalize on wealth management and other means to promote common prosperity. In 2021, the
the service capabilities of all Zhejiang-based financial institutions to develop smooth channels for local governments to serve
Company took the lead in issuing 20 Measures to Promote the Building of Zhejiang into a Demonstration Zone for Common entity enterprises.
Prosperity through High-quality Development. The 20 customer-focused measures covered six aspects of wealth management
services, including top-level design, product planning and design, service standards, and ecosystem building. Through this Schematic diagram of the “1 + N” service model of the financial advisory system
issuance, the Company gave play to its professional financial advantages to help improve residents’ income from property.
Giving more people equal access to financial services, especially wealth management services, is an important means to Banks
promote common prosperity. It is specified in the Opinions on Supporting the Building of Zhejiang into a Demonstration Zone Law and
Securities
for Common Prosperity through High-quality Development that diversified financial investment products should be provided accounting
companies
firms
for residents. Thus, Caitong Securities focuses on people’s individual needs for investment and finance, and takes multiple
measures to advance its inclusive wealth management project.
Financial Advice and
<< <<
Six Aspects Covered in the 20 Measures to Promote the Building of services suggestions
Zhejiang into a Demonstration Zone for Common Prosperity through
High-quality Development Enterprises To maintain healthy Financial To reduce local Local
economic development advisors financial risks governments
1 To strengthen overall research and cultural leadership so as to play an exemplary
role in leveraging the capital market to facilitate common prosperity
2 To advocate a rational concept of wealth and improve investors’ financial literacy Research Insurance
institutes companies
and risk prevention abilities
3 To fully implement the customer-centered concept and become a leading honest Guarantors
and innovative wealth manager
4 To develop targeted financial products to“expand the size of middle-income groups
and “raise the earnings of low-income groups” for the goal of common prosperity
5 To build a comprehensive financial service model and a good financial ecosystem The financial advisory system refers to a system where the employees from Zhejiang-based financial institutions, accounting
6 To develop “CDi-wisdom” by relying on digital reform firms, law firms, equity investment companies, relevant industry associations and other organizations use their professional
Notice on Giving Play to the Role of a Provincial knowledge and skills to provide local governments and enterprises with consulting services on financial planning, investment
Securities Trader to Promote the Building of Zhejiang
into a Demonstration Zone for Common Prosperity
and financing, financial risk prevention and disposal, law, finance etc.
through High-quality Development
21 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 22
Carrying out activities of “Financial Warmth—Financial Advisers’ Visits to
Tianshan”tocreateanewmodeloffinanciallysupportingXinjiang
In May 2020, the Company had its pioneering “financial advisory system” included in the Local Financial Regulations of Zhejiang
Province. From then on, the system began to be provincially promoted rather than locally piloted. In October 2021, the Company In June 2021, together with Zhejiang Investment M&A Association, Zhejiang Rural Commercial Bank, Yongan Futures, Caitong
assisted the Zhejiang Provincial Bureau of Local Financial Supervision in formulating and issuing the Guiding Opinions on Securities Asset Management and other institutions, the Company established a service group of more than 20 financial advisors
Implementing the Financial Advisory System across the Province (for Trial Implementation), thus officially improving and refining to carry out the activities, “Financial Warmth—Financial Advisers’ Visits to Tianshan”. By organizing financial training sessions
this system. In addition, relying on the leading role of the FSC, the Company, together with other financial institutions, leveraged and financial projects as well as providing charitable donations, these financial advisors brought the financial resources of
its professional capabilities to deliver tangible benefits and warmth to enterprises and the public. In particular, a series of Zhejiang to the governments, enterprises and people in Aksu Prefecture and Aral, the First Division of the Xinjiang Production and
financial activities was carried out to support Xinjiang. Construction Corps.
SupportingXinjiangthroughfinancialphilosophy
The financial advisor group held 13 forums and training sessions for a total of 300 people from local government departments,
By the end of 2021 listed and to-be-listed companies.
SupportingXinjiangthroughfinancialprojects
the FSC had 86 members the FSC provided a total of helped 11 enterprises get listed
RMB 90.782 billion The financial advisor group provided “1 + N” integrated financial services. The FSC, Caitong Securities, Yongan Futures
more than 460 provincial and provided comprehensive insurance and other institutions established comprehensive strategic partnerships with the Command Center of Zhejiang Province for
credit funds for 1,941 enterprises Providing Pairing Assistance for Xinjiang, Aksu Prefectural Administrative Commissioner and other local organizations.
municipal financial advisors schemes for 20 enterprises
assisted 21 enterprises in obtaining These financial institutions set up specialized advisory groups to provide integrated financial services for local governments,
visited and served a total of 9,568 provided financing guarantee organizations and enterprises.
equity investments
enterprises services for 60 enterprises The Company provided bond financing services for government organizations. In the coming five years, the Company will
raised a total of RMB 138.3 billion strive to raise RMB 10 billion for the government organizations in Aksu. In 2021, the Company assisted Aksu Region Green
held more than 180 lectures and provided legal services for the Industrial Development Co., Ltd. in issuing RMB 1 billion green bonds. Moreover, the Company, together with Caitong
funds for 203 enterprises through
training sessions for nearly 20,000 IPOs of 10 enterprises. Securities Asset Management, invested RMB 250 million in Aksu Region Green Industrial Development Co., Ltd. at the
bond issuance
people lowest interest rate to help it reduce financing costs.
The Company piloted the “insurance + futures” model for the advantageous products in Aksu, including the 8,600 mu of red
dates planted by 1,547 local peasant households. During the epidemic period, the farmers were compensated more than
RMB 1.5 million for income guarantee.
By the end of 2021 SupportingXinjiangthroughpublicwelfare
The Company launched an online donation program
established a total of 18 financial In 2021, the FSC organized provincial and municipal themed on “learning Party history to develop the
advisor offices financial advisor training sessions online and offline, sense of responsibility”. This three-day program
hired 209 new financial advisors. raised a total of RMB 82,000 which would be used
carried out more than 50 for purchasing teaching and living equipment.
campaigns actively participated by held 2 enterprise-level financial advisor training sessions I n conjunction with Zhejiang Rural Commercial
107 financial advisors, and set up helped 86 financial advisors pass relevant examinations Bank, Yongan Futures and Caitong Securities Asset
the financial advisory service sites and obtained the financial advisor certifications. Management, the Company donated RMB 850,000
in the counties and cities of the to the Qiming School (Special Education School) in
province. Aksu for its improvement of teaching facilities.
23 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 24
Helping Zhejiang become a pioneer
province for socialist modernization Comprehensivelydeepeningthesmoothfinancingproject
Guided by the provincial requirements on the thorough implementation of the smooth financing project, the Company actively
Deeply implementing the “Phoenix Action” plan innovated financial instruments and improved the comprehensive efficiency of financial services for private small and micro
“
enterprises, in a bid to open up the “last mile” of financing for them.
In 2021, the People’s Government of Zhejiang Province issued the
Phoenix Action Plan (2021-2025) to Be Deeply Implemented to >> In 2021, the Company raised a total of
Promote High-quality Economic Development in Zhejiang Province. RMB 70 billion for the first time, operated
5 IPO and refinancing projects, and won a Support for the convertible bond listing of the private enterprise, Jintian Copper
The document pointed out that for the goal of raising the province’s
good reputation from clients of exemplary
financial power, the government should rely on M&A to boost the In April 2021, Caitong Securities acted as the lead underwriter for the convertible bond listing of Ningbo Jintian Copper
state-owned listed companies such as
development of listed companies, to strengthen the industrial chain, to Zhejiang Provincial New Energy Investment (Group) Co., Ltd. (“Jintian Copper”), helping Jintian Copper raise RMB 1.5 billion. The funds would be mainly used for the
deepen the value chain, and to enhance the core competitiveness. Group Co., Ltd. and Zhejiang Publishing & project of hot rolled copper strips, the project of high-strength, high-conductivity copper alloy bars and wires, the high-end
Media Co., Ltd. copper-based new material project of Guangdong Jintian Copper, etc.
In an active response to the call of the CPC Zhejiang Provincial This project has helped Jintian Copper raise its production capacity, optimize its product structure, further stabilize its
Committee and the People’s Government of Zhejiang Province, >> As at the end of 2021, the Company leading position in the industry, and maintain healthy development.
the Company extended its services to specific enterprises and ranked 1 provincially in terms of the number
did in-depth work to meet their needs. Through inter-institutional of IPOs being reviewed by the Beijing Stock
cooperation, business coordination and close services, the Company Exchange (“BSE”), and 19 th nationally in
further improved its comprehensive service capabilities and business terms of the total underwriting amount of
corporate bonds and enterprise bonds.
“ Participation in the directional add-issuance of the private enterprise, Biolight, to support its development
response efficiency, giving full play to its key role in the “Phoenix
Action”. In December 2021, the Company assisted Guangdong Biolight Meditech Co.,Ltd. (“Biolight”) in obtaining the approval
from the China Securities Regulatory Commission for the issuance of shares to specific objects. This issuance was
Support for the listing of Zhejiang New Energy, the vanguard of green planned to raise funds of not more than RMB 540 million. The funds would be mainly used for the “Project of Biolight
development towards “carbon peak and carbon neutrality” goals Blood Purification Industrial Base and R&D Center”, the “Project of Marketing Network and Information Construction” and
the “Supplementary Working Capital”. These projects would make Biolight more capable in developing and producing
In May 2021, acted as the exclusive sponsor and lead underwriter, Caitong Securities helped Zhejiang Provincial New
blood purification products, bring the Company’s scale and technological advantages into full play, and further promote its
Energy Investment Group Co., Ltd. (“Zhejiang New Energy”) raise a total of RMB 730 million for listing. Zhejiang New
development in hemodialysis sector.
Energy is engaged in investing in, developing, constructing, operating and managing renewable energy projects such as
hydroelectric, photovoltaic and wind power generation. It has become the first listed power company generating electricity This cooperation served as a good example of how Caitong Securities provided thorough financial services for private
from renewable energy in Zhejiang. As a major state-owned enterprise under the Zhejiang provincial government, Zhejiang enterprises to support the real economy.
New Energy got itself listed to actively respond to the local government’s “Phoenix Action” plan. By supporting this listing,
Caitong Securities has made a new breakthrough towards the national carbon neutrality goals, and correctly understood
and implemented green financial policies and sustainability concepts.
Launchofthefirstexemplary“Caitong-ZhongnuoFactoringPhase1in
2020 - Zhuji State-owned Assets Supply Chain” ABS project in Shaoxing
Sponsorship for the listing of Li Ziyuan on the main board of Shanghai Stock Exchange
In 2021, Caitong Securities Asset Management launched the “Caitong-Zhongnuo Factoring Phase 1 in 2020 - Zhuji
In February 2021, Caitong Securities acted as the sponsor for the listing of Zhejiang Lizi Yuan Food Co., Ltd. (“Lizi Yuan”)
State-owned Assets Supply Chain” ABS project, directly raising RMB 200 million at a very low cost for the ten private
on the main board of the Shanghai Stock Exchange (“SSE”), helping Lizi Yuan raise a total of RMB 776 million. Lizi Yuan is
enterprises serving as the suppliers of the core debtor. As the first exemplary supply chain ABS project in Shaoxing, this
a leading developer, producer and seller of sweet milk beverages in China. This listing has helped Lizi Yuan to broaden its
launch has alleviated the financing problems of the ten private enterprises.
financing channels and improve its financing efficiency, and also facilitated the implementation of “Phoenix Action 2.0”.
25 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 26
Working faster to lay out BSE-related businesses BeingacomprehensivefinancialserviceproviderbasedinZhejiang
“
In September 2021, the Beijing Stock Exchange (“BSE”) was formally
established. The Company took advantage of the financial advisory As of December 31, 2021, the Company
carried out continuous supervision for The Company actively practiced the strategy of"deep cultivation in Zhejiang" and fully implemented the version 2.0 of "deep
system to provide SMEs (small and medium-sized enterprises)
161 NEEQ-listed enterprises, ranking ploughing Zhejiang", and kept innovating its comprehensive financial service model. Under the guidance of Zhejiang Financial
with professional full-process services of restructuring, listing
recommendation, continuous supervision, public issuance on the 10th nationally. Specifically, the Company Advisory Service Federation, the Company developed new market-oriented scenarios for the financial advisory system. In
carried out continuous supervision for 111 Jiande, Linping and Jiashan, the Company innovated the models of cooperation among local governments, financial institutions
selection layer, and listing transfer, as well as share transfer, market-
making transactions, equity and debt financing, M&A, corporate
Zhejiang-based NEEQ-listed companies,
ranking 1 in the province.
“ and enterprises and explored establishing the demonstration zones of comprehensive financial services.
financial consultancy and other services for NEEQ-listed enterprises.
Officiallaunchofthe“LinpingDemonstrationZoneofComprehensiveFinancialServices”
Focusing on "specialization and innovation", Caitong Securities held mobilization In January 2022, Zhejiang Financial Advisory Service
meeting to support technologically advanced SMEs’ listing on the BSE Federation worked with the People’s Government of
Linping District, Hangzhou to officially launch the Linping
In October 2021, to respond to the significant establishment of the BSE
Demonstration Zone of Comprehensive Financial Services.
and efficiently promote the BSE-related businesses, Caitong Securities
As the first of its kind at county (municipal/district) level in
held a BSE-themed mobilization meeting through offline and online
Zhejiang, this project will allow the market players in Linping
means, with approximately 400 people present on the site. At this
District to enjoy the “comprehensive financial services”
meeting, the Company clearly stated that it would work faster to lay out
initiated by Caitong Securities, chairman of Zhejiang
BSE businesses and keep providing more accurate and considerate
Financial Advisory Service Federation.
financial services for SMEs.
This demonstration zone will mainly serve the government,
Worked from three aspects to provide professional support for the capital market, small and micro enterprises and common
innovative SMEs to list on the BSE prosperity. Through the establishing of this zone, the two
sides strive to achieve the following goals for the “14th Five-
Attached great importance to the linking role of the BSE in Year Plan” period: to maintain an active financial ecosystem;
the capital market. Caitong Securities investment banking BSE-themed mobilization meeting
to leverage social capital of more than RMB 50 billion with Mobilization meeting for launching the Linping
department strengthened business studies; its wealth industrial funds; to get more than 35 enterprises listed; to Demonstration Zone of Comprehensive Financial Services
business lines worked faster to launch new services and
significantly reduce the financing costs of small and micro
to carry out various investor education activities; the Group
enterprises and innovative high-tech ones, and to fully
cooperated with branches to enhance training sessions and
improve the employees’ comprehensive business skills; enhance residents’ investment awareness and abilities.
L everaged the geographical advantage of Zhejiang. As
Zhejiang was filled with innovative SMEs and had the
largest number of technologically advanced SMEs in China,
Caitong Securities strengthened its BSE- and NEEQ-related
businesses to support the Phoenix Action Plan 2.0;
Relied on its digital and intelligent development results to
improve the abilities and quality of providing differentiated,
comprehensive financial services and carrying out risk Relevant business departments attended the meeting
prevention.
27 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 28
Speeding up the development of “CDi-wisdom” Six business application systems
To further deepen the “No.1 Project” of digital economy and implement the guiding principles of Zhejiang Digital Reform
Promotion Conference, the Company set “FinTech” as its development strategy. Based around the requirements of the reform
conference, the Company made continuous efforts to develop FinTech, and arranged all-round work to promote digital reform.
The overall goal of Caitong’s digital reform is to develop “CDi-wisdom”. In 2021, the Company issued the Digital Reform Plan
of Caitong Securities for the 14th Five-Year Plan Period. To support the development of “CDi-wisdom”, the Company planned
to build a “1 + 6 + N” digital system focusing on the CDi-wisdom wealth, investment banking, supervision, investment research,
operations and management.
“1 +6 + N” digital system
1 6 N The primary results of six applications of CDi-wisdom
“Caitong Brain”, a digital platform C Di-wisdom businesses in six “N” projects to be advanced based
This digital platform was built based on the comprehensive needs of enterprises in
Financial
their full life cycles and on the smooth chains of investment banking, wealth, banking
featuring the “business+supervi- fields: wealth management, invest- on the solid development of “Digital Service Kit Pangu
and taxation. It provided enterprises with one-stop services such as equity incentive,
sion” ecosystem, based on group- ment bank, supervision, invest- Zhejiang”, and “N” external plat- ESOP platform
exercise transaction and tax planning, enabling efficient online customer management.
wide data, and serving as the bas- ment research, operations and forms like the Internet and banks
es for 308 projects. management. to be linked for the Company to “Zhanzhao”
“CDi-wisdom Wealth” featuring mobile business execution allowed front-line wealth
seek new business opportunities business execution
consultants and customers to enjoy digital convenience.
for digital transformation. platform
This platform applied digital means to carry out product lifecycle management (PLM),
“Qianlima”
including product screening, introduction, sales, operations and maintenance, in a bid to
product center
provide customers with the most suitable products.
“Baozhen” bond This system enabled more accurate credit research and risk control based on big data
investment system and quantitative model analyses.
“Caiyiban”
This system shortened the processing time for account opening from 2.5 hours to 17
operation service
minutes, thus providing better customer experience.
system
Employee
This platform used digital tools to facilitate employees’ reimbursement.
kit EasyGo
G
Building a Modern Governance System
Consolidating the culture cornerstones
Improving corporate governance
Improving the compliance and risk control system
Keeping good business ethics
31 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 32
Caitong Securities corporate culture concept system
Consolidating the culture cornerstones
Building a Modern Governance System
2021 was the year for the Chinese securities industry to develop its culture on all fronts. According Integrity, prosperity,
to the overall arrangements of the China Securities Regulatory Commission (“CSRC”) as well as the and harmony.
Ten Elements of Cultural Development in the Securities Industry and Evaluation Plan for Cultural
Deepen the commitment
Development Practices of Securities Companies issued by the Securities Association of China, Reverence, gratitude, to Zhejiang market, serve
the Company gradually developed a corporate culture concept system centered on “integrity” and innovation, responsibility. the nation, and strive to
“harmony” and led by the industry culture of “compliance, integrity, professionalism and prudence”.
befirst-class.
In 2021, the Company incorporated cultural development into its “14th Five-Year Plan” and articles Eight points:
To be a professional local in-
★Create value for customers, seek
of association, and established a targeted governance mechanism, where the Company’s Party
vestment bank which is more
Committee, the Board of Directors and the Board of Supervisors were responsible for leadership,
happiness for employees, and take reliable, a wealth management
decision-making and independent supervision, respectively. In addition, the Company issued the Corporate
on responsibility for society. expert who is more considerate,
Administrative Measures for the Development of Corporate Culture and corporate culture evaluation spirit
plans, integrating corporate culture into its daily operation and management as well as into its ★Develop comprehensive and a comprehensive financial
businesses, take pioneering actions, service provider who under-
training and assessment systems for employees at all levels. These efforts enabled the Company to stands you better.
and provide better services. Corporate
promote cultural development in a systematic and standard mode.
vision To assume responsibilities,
★Give priority to compliance and risk
maintain competitiveness, and
control and highlight integrity and
“
ensure belonging.
innovation.
Core
In 2020, Caitong Securities was ranked 13th by the Securities Association of China “ ★Give it a shot rather than making values To pursue soundness
among Chinese securities companies in terms of cultural development practices. hasty refusal. and excellence through
★Do not skip any problem or
standardized, pragmatic
squander any opportunity to learn Missions and innovative operations.
from experience. and goals
★Build platforms for doers and
strivers. Business
★Understanding makes things easy. purpose
★One Caitong, one home.
Cultural
consensus
33 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 34
By carrying out “Caitong Day” activities, setting up the platform of “Financial News Club”, and compiling cultural development Themedactivitiesheldonthefirst“CaitongDay”in2021
yearbooks, the Company further forged the cultural consensus of integrity, innovation, and professionalism among employees
and made them feel more satisfied and belonged.
Themedactivitiesheldthefirst“CaitongDay”in2021
From October 22 to 24, 2021, Caitong Securities celebrated its first “Caitong Day”,
holding a series of activities to promote the deep and full integration of cultural
development into its implementation of “14th Five-Year Plan” and businesses. The
Company united its employees for better operational collaboration, gained more
external recognition, and delivered positive financial energy.
“Caitong Day”, a festival for all Caitong people, is set on October 24 every year. On the
first “Caitong Day”, with the theme of “integrity and harmony leading to a better future”,
Caitong Securities organized a “Cultural Carnival” for all employees and their families,
sending them home letters to invite them to review Caitong’s growth path together.
In addition, the Company presented awards and paid respect to senior employees
who had worked and grown together with Caitong for 10 years, 20 years and more, in
gratitude for their and their families’ contributions and persistence.
The corporate culture promotion
platform, “Financial News Club”
Caitong leaders inaugurated themed activities on the first “Caitong Day”
2020 Yearbook of Caitong
Cultural Development
35 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 36
Improving corporate governance Enhancing information disclosure
“
As required by relevant regulators, the Company disclosed information in an
Strengthening corporate governance authentic, accurate, complete, concise, clear, and easy-to-understand way, and made
continuous efforts to improve its information disclosure mechanism. The Company The Company had been rated by
“
In strict accordance with documents such as the Company Law of the People’s the Shanghai Stock Exchange
ensured investors’ timely, accurate and equal access to information and safeguarded
Republic of China, the Securities Law of the People’s Republic of China, the as the highest level “A” for
The year 2021 saw the their legitimate rights and interests.
Regulation on the Supervision and Administration of Securities Companies, the Rules information disclosure for three
for Governance of Securities Companies, and the Code of Corporate Governance for convening of 4 Shareholders’ successive years from 2019 to “
In 2021, the Company carefully fulfilled its information disclosure obligation as a
Listed Companies, as well as the Articles of Association, the Company has developed General Meetings, 9 meetings 2021.
listed company. In accordance with documents such as the Administrative Measures
a corporate governance structure where all departments perform their duties in a of the Board of Directors,
5 meetings of the Board of for Information Disclosure of Listed Companies issued by the CSRC, the Company
coordinated manner while supervising each other. By doing so, the Company has compiled the Information Disclosure Manual of Caitong Securities, the Administrative
Supervisors, and 14 meetings
ensured its sound and standardized operation as well as sustainable development. Measures for the Registration and Archival Filing of Insiders and the like. Moreover,
As the leadership and political core of the corporate governance structure, Caitong
of specialized committees
under the Board of Directors.
“ all subsidiaries and business departments of the Group arranged liaisons for major
events, and provided these liaisons with relevant training every year.
Securities Party Committee focused on charting the course, managing the overall
situation, and promoting sound implementation. The Party Committee is committed
Promoting investor communication
to building a corporate governance mechanism where all departments perform their
duties in a coordinated manner while supervising each other. The Party Committee Highly valuing communication with investors, the Company took practical actions to make such communication more effective,
supported the Shareholders’ General Meetings, the Board of Directors, the Board of intensive and interactive.
Supervisors, and the Management in exercising their powers by law.
In terms of daily communication, the Company relied on channels such as the investor hotline, online interactions, e-mails,
Main work done to improve corporate governance in 2021 on-site receptions, result briefing, roadshows, and the SSE E-interactive platform to strengthen its communication with investors
and fully guarantee their rights to know its operation information.
Further enhanced standardized Further guaranteed the duty performance of the Further improved scientific
governance by rectifying issues Board of Directors, the Board of Supervisors, decision-making capabilities In 2021, the SSE e-interactive platform response rate was 100%.
found in the self-inspection amid and the Management by providing them with by introducing an academic
the campaign to improve the Directors & Officers Liability Insurances and independent director specialize Briefingon2021semi-annualperformancereportheldonline
governance of listed companies organizing them to take annual training sessions in financial risk prevention in
in 2021. on corporate governance, regulatory laws and 2021. In September 2021, Caitong Securities The briefing on the 2020 annual
held a briefing on 2021 semi-annual performance report was rated as an
rules, and performance assurance.
performance report online, communi- excellent practice case by
cating with investors at zero distance the China Association for Public Companies.
on topics such as the deeper commit-
By the end of 2021, the Company had ment to the Zhejiang market, digital
reform, wealth management transfor-
9 3 1 1
mation, investment banking, and rights
In 2021, the Company won the
issue. Through this briefing, the Com-
pany made its businesses and values Briefing on 2021 semi-annual award for Interactions
directors independent directors employee director female director
better understood and recognized by performance report was held online with Small and Medium
investors. Investors from Panorama Network.
37 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 38
Improving the compliance and risk control system Valuing the publicity of risk management concepts, the Company launched activities to promote the development of a sound risk
culture. In 2021, the Company carried out the campaign of “the Year for Improving Risk Awareness and Abilities”. A variety of
activities such as the publicity of risk culture, training sessions on professional knowledge of risk management, and contests of
Comprehensive risk management risk management knowledge were rolled out in a steady stream to develop risk management talent teams.
Following the cultural concept of “giving priority to compliance and risk control and highlighting integrity and innovation”, the Campaign of “the Year 2021 for Improving Risk Awareness and Abilities”
Company kept refining a comprehensive compliance and risk management system which focused on its operational goals and
matched its businesses. In strict accordance with documents such as the Company Law of the People’s Republic of China and
the Standards for Comprehensive Risk Management of Securities Companies and in consideration of its reality, the Company Regularly held group-wide risk management training sessions to study frontier and hot topics on risk
management and receive risk warning education.
formulated the Basic Risk Management System and established a three-level risk management system as well as a risk
management organizational structure with reasonable division of labor, clearly defined responsibilities, and clarified reporting Carried out publicity activities themed on the cultural consensus of “giving priority to compliance and
relationships. All these were aimed to prevent and control various risks in business operations. risk control first and highlighting integrity and innovation”.
Publicity of Saw that the leaders of business departments and business support departments, as well as the
risk culture compliance management and risk management heads of subsidiaries fulfilled their responsibilities of
The risk management organizational structure
publicizing risk culture through special lectures in their own units.
Board of Directors: The Company’s highest decision-making body of risk
management
Push “Weekly Practices of Risk Control Knowledge” to all employees on a regular basis.
Board of Supervisors: Responsible for supervising and monitoring how the
Board of Directors and the Management perform their duties of risk management
Held online half-hour contests of risk control knowledge, with a total of more than 2,700 contestants
involved.
The Operation Management: The governing body of risk management, assum-
ing primary responsibilities for comprehensive risk management Learning of Established knowledge graphs and released lists of standardized work for front-line risk managers to
professional learn about.
Risk Management Department: Responsible for monitoring, evaluating and re- knowledge on risk Developed and launched series of courses related to risk management and introduced theme courses
management of “enhancement of risk awareness and abilities” on the Company’s learning platform to all employees.
porting the Company’s overall risks
Compliance Department: Responsible for managing the Company’s risks of
compliance, law and money laundering
Functional Departments: Leveraging their own specialties to perform corre-
sponding risk management functions for business departments and branches
Business Departments and subsidiaries: Performing the functions of prima-
ry-level risk management, timely identifying, evaluating, responding to and report-
ing relevant risks, and assuming direct responsibilities for risk management
The Company continued to put more resources into risk management, using IT-empowered means to better identify, monitor,
report and handle risks. In 2021, taking the opportunity of “digital reform”, the Company optimized the project cluster of the “group
risk management platform”, and further strengthened the systematic integration of risks. By doing so, the Company aimed to
create its own information system brand for risk management. The meeting themed on compliance and risk culture The contest themed on “enhancement of risk awareness and abilities”
39 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 40
Compliance management Intellectual property protection
“
In accordance with documents such as the Regulations on the Supervision In strict accordance with the Patent Law of the People’s Republic of China, the Copyright Law of the People’s Republic of
and Administration of Securities Companies, the Measures for the Compliance China, the Trademark Law of the People’s Republic of China and other laws and regulations, the Company protected its own
The Company has been
Management of Securities Companies and Securities Investment Fund Management intellectual property, and respected and avoided infringing on other people’s intellectual property rights.
classifiedbytheCSRCasan
Companies, and the Guidelines for the Compliance Management of Securities
A-level securities company The Company actively promoted the legalization of software, purchasing copyrighted software and consciously resisting pirated
Companies, the Company formulated the Basic Compliance Management System,
the Integrity and Compliance Manual, the Measures for Compliance Inspection, the
in Category A for seven
consecutive years.
“ ones. In addition, for its business activities with owned intellectual property rights, the Company took active protective measures, such
as applying for trademarks and software copyrights, and adding provisions to protect Source Code in software development contracts.
Measures for Compliance Accountability” and other rules. The Company reviewed,
supervised and inspected the compliance of its business activities and employees’
The Company issued the Notice on Paying Attention to Copyright Issues of Image and Text on WeChat Official Account.
operational behaviors.
Through this issuance, the Company strengthened its management on the intellectual property rights of articles, images, fonts and
other works, regulated the use of images and fonts on social media, and avoided the unauthorized reprinting and use of other people’s
In 2021, the Company arranged a total of 110 full-time compliance specialists, held 11 “Heguilexue” training sessions, gave articles and works.
lectures to 1,978 people, and organized all employees to participate in 2 online compliance tests.
The compliance managers of all institutions conducted self-inspections on a quarterly basis, checking whether there were
infringements in the information published by their We-Media (WeChat, Weibo, etc.) accounts, and incorporated the results into the
Main compliance management work and results in 2021 quarterly compliance reports. In addition, the Company’s Compliance Department carried out random inspections. For any infringement
found, the relevant entity would have a negative record in legal affairs management. At the end of the year, all negative records would
L aunched the “Cdi-wisdom Compliance” platform, established a compliance management center, be a basis for the deduction of compliance assessment points. For company losses caused by other We-Media infringements, the
Development a compliance resource center and a risk monitoring center，and developed three centers and a platform. relevant entity would be held accountable as per the Accountability Management System and other regulations.
of Cdi-wisdom
S trengthened the early warning, prevention and tracking of compliance risks and reshaped the
compliance
compliance work of branches through intelligent early warning and accurate prevention. Keeping good business ethics
Formulated the Plan for the Development of Compliance Culture, extracted the connotation of compliance Anti-corruption
culture from the four aspects of “building consensus, abiding by the fundamental principles, strengthening
Development
responsibilities and enhancing services”, focused on the efficient development of compliance culture, and The Company actively created an atmosphere of integrity in practice. Through the theoretical and institutional means of establishing a
of compliance
actively carried out the publicity and training sessions on compliance culture. sound responsibility mechanism, putting the eight-point decision on improving Party and government conduct into effect, deepening the
culture
Created a WeChat official account,“window of compliance” to publicize compliance. rectification of issues found in supervision and inspection and the publicity of integrity culture, the Company developed a strong and
effective great supervision system to strengthen employees’ awareness of self-discipline and integrity in practice.
Enhanced the mechanism for the management of compliance personnel, revised the Measures for the In 2021, guided by the “14th Five-Year Plan” of the Company, the Company carried out the main task of digital transformation to ad-
Management of Compliance Personnel, improved the team-based compliance management mechanism, vance “Cdi-wisdom supervision” and enable less workload, higher efficiency, and better synergy within the great supervision system.
and organized the capability evaluation and practical training for compliance personnel in 2021.
Compliance Released the Notice on Matters Regarding Deepening the Compliance Management of Subsidiaries In 2021, according to the relevant arrangements of the CPC Zhejiang Provincial Committee, the People’s Government of Zhejiang
management and Companies Whose Shareholders Include Caitong Securities to deepen the Group’s compliance Province and other superior departments, the Company further deepened the building of a “corruption-free Caitong”. The Company
system management. made integrated efforts to ensure its employees had no boldness, capacity or willingness to be corrupt, thus creating a positive, honest,
and efficient work atmosphere. The Company deeply responded to the campaigns of regulating the issues prominent in state-owned
Saw that leaders of all institutions fulfilled their compliance management responsibilities, implemented
enterprise, requiring leaders and officials to work with integrity, promoting the full and strict governance over the Party in second- and
the dialogue mechanism between compliance directors and relevant employees, and had leaders of all
third-tier institutions, and controlling overseas corruption. The Company drove all of its officials to further develop integrity in practice,
departments sign the Compliance Operation Commitment.
use of authority, and personal and family life, in a bid to cultivate a good political and business environment. In 2021, there were no
corruption lawsuits against the Company or its employees.
41 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 42
Key measures taken to develop the great supervision system in 2021
Anti-money laundering
Studied and formulated a plan and a scheme based on the main task of digital transformation: the sub-plan for the
1
The Company established a complete money laundering In 2021, the Company continued to carry out various
great supervision system under the “14th Five-Year Plan” and the implementation plan for the digital reform of “Cdi-wisdom
risk management system in strict accordance with the internal and external anti-money laundering publicity. It
supervision”, with objectives and schedules set for the next phase of work.
Anti-money Laundering Law of the People’s Republic pushed the information on the harm of money laundering
of China, the Measures on the Administration of Client crime via We-Media platforms, integrated anti-money
Stepped up the digital transformation of the great supervision system and promoted the “Cdi-wisdom laundering content into lectures, publicity meetings and
Identity Identification and Materials and Transaction
supervision” project. customer exchange meetings, producing “micro-videos” on
Recording of Financial Institutions, and the Measures for the
Around the goals of “one-screen supervision, one-click data access, immediate early warning and thorough control”, anti-money laundering. Throughout the year, the Company
Administration of Financial Institutions’ Reporting of High-
2
the “Tianmu” intelligent supervision platform was developed based on the three functions of sharing, profiling and distributed a total of 11,789 copies of publicity materials to
Value Transactions and Suspicious Transactions and other
coordination, to mainly address information sharing, authority approval, supervision and evaluation, departmental more than 200,000 people.
laws, regulations and regulatory requirements.
coordination and other problems and make supervision more efficient and accurate;
The three middle platforms of audit, compliance and risk control were developed simultaneously, with the functions of
“Cdi-wisdom supervision” enriched and the system refined. Main anti-money laundering work and results in 2021
Enhanced the internal coordination within the great supervision system and reduced the workload of primary-
level workers. E xpanded anti-money laundering leading groups, further enhanced the effectiveness of their
3
performance, and reviewed a total of 13 anti-money laundering proposals throughout the year.
The annual supervision and inspection of all departments were taken into overall consideration based on the“up to
one inspection” principle. A total of 69 specific units were under inspection, 14 matters were proposed for coordinated S trengthened the management on subsidiaries by establishing an anti-money laundering work
inspection, 23 repeated inspections were reduced. Thus, the supervision became more efficient. and reporting mechanism for them and incorporating their anti-money laundering performance into
Improving assessment.
B y the end of 2021, a total of 13 anti-money laundering internal control mechanisms were
relevant
The Company provided an email address for supervi- mechanisms
The 31st Caitong Lecture held with the theme of established, including a basic one, a core one and 11 supporting ones.
sion and reporting on its OA platform, and employees “Warning Education on Integrity”
could email relevant suspected violations of laws and
regulations to this address. The Company strictly reg-
In September 2021, the
ulated the complaining and reporting process, timely Company held the 31 st Fully upgraded the suspicious transaction monitoring model, and thus the suspicious early warning
found problems, and held relevant violators account- cases dropped by 41%.
“Caitong Lecture” with
able. the theme of “Warning Launched brand new indicators to classify customers’ money laundering risks in a more rational
Education on Integrity” manner.
Built a new, independent anti-money laundering watchlist screening system, optimized its screening
The Company attached great importance to the devel- by means of on-site and
opment of integrity culture. By investigating and pre- video conferencing, urging Strengthening
matching logic, and enabled its full connection and real-time interaction with the business system.
venting against the risks of non-integrity in institutions relevant
Strengthened the management of non-brokerage business, and included custody and OTC (Over The
all employees to perform
systems
and departments and at posts, carrying out training ses- their duties of integrity in
Counter)derivativescustomersintheanti-moneylaunderingsystemforunifiedmanagement.
sions on warning education, having employees sign the practice.
Letters of Commitment to Integrity, and publishing the
Journal of Anti-Corruption and typical violations of in-
dustry regulations or discipline and laws, the Company
created an atmosphere of integrity on all fronts, guiding
employees towards a solid theoretical and moral aware-
ness of integrity in practice.
Creating an Environmentally
E
Friendly Ecosystem
Practicing the responsible investment concept
Acceleratingthedevelopmentofgreenfinance
Sticking with green and low-carbon operation
45 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 46
Practicing the responsible investment concept ESG investment strategy of Caitong Securities
When choosing the racetrack and setting up the stock pool, the Company fully considered ESG-related
In 2021, the goal of "carbon peak and carbon neutrality" became an important guideline for China's factors, positively screened sectors and companies that were higher than average levels in terms of
Friendly Ecosystem
Creating an Environmentally
economic and financial development, and the responsible investment gathered pace in China's capital environment, society and corporate governance, and focused on target enterprises meeting the national
market. Caitong Securities actively practiced the concept of responsible investment, and brought development strategy and upholding green development concepts, such as those in intelligent manufacturing,
information technology, medical and health care, carbon neutrality and new energy.
multiple factors (such as environment, society and corporate governance) into investment assessment
and decision-making in the process of active management. The Company has established a relatively Caitong Securities Asset Management, a subsidiary, actively paid attention to the development of and new
changesinthefieldoftechnologicalinnovation, and made layout at an appropriate time; and for investment
complete equity investment decision-making system, carried out the decision-making, authorization Positive in traditional energy industries (such as iron & steel, nonferrous metals and chemical), priority was given to
and management of investment business based on the five-level structure of investment decision- screening the enterprises with sounder environmental protection management.
making, and promoted the investees companies to practice the ESG concept through the resource method Caitong Innovation, a subsidiary, gave priority to the enterprises with sounder environmental protection
allocation effect of the capital market. management and higherintelligencelevelinthefieldofintelligentmanufacturing. For enterprises in the
field of medical and health care, priority was given to those that solved practical problems concerning
Investment decision-making structure of Caitong Securities people's livelihood and promoted the development of social health.
By making a negative list of investment, the Company excluded the enterprises that didn't create social
benefits and was not in line with the sustainable development route.
Shareholders’ Meeting
Caitong Innovation, a subsidiary, prudently invested in the enterprises that might have negative social effects
Negative by conducting all-round due diligence and making negative lists, and screened and analyzed the enterprises
elimination that had major pollution incidents or penalties, imperfect work safety management mechanism and many
Board of Directors method legal disputes with other companies and caused adverse social effects, and gave risk warnings.
Caitong Securities Asset Management, a subsidiary, fully integrated the ESG integration strategy into actual
Operation Management research analysis and investment decision-making, and guided researchers to comprehensively analyze
ESG factor ESG factors together with traditional financial indicators, comprehensively assessed industrial prosperity and
integration individual stock growth potential, thus providing strong support for investment decision-making.
Investment Business Committee method
Caitong Securities Asset Management, a subsidiary, actively participated in the corporate governance of
investment targets in the capacity of shareholder. For example, through field survey, participating in voting
Business Department at the Shareholders’ Meeting and other methods, it strengthened communication with listed companies, paid
attention to the Company's actions and measures in environment, society and corporate governance, so as to
shore up insufficient disclosure of ESG-related data and asymmetric information of investee companies, and
The first-level equity investment business of the Company was implemented by Caitong Innovation, Active assist and urge listed companies to implement the ESG concept.
a wholly-owned subsidiary. Private fund management business was implemented by Caitong Capital, shareholder Caitong Innovation, a subsidiary, further refined post-investment management, attached great importance to
a wholly-owned subsidiary. Subsidiaries Caitong Innovation and Caitong Capital set up teams method the modernization of governance and care for employees, and insisted on transmitting the ESG concept to
the investee companies, thus empowering the enhancement of corporate governance.
specialized in investment, post-investment management and operation, which were mainly composed
of professionals in related industries and persons in investment companies, securities companies, The Company supported the green industry by investing in green bonds. In 2021, the Fixed-income Department
accounting firms and law firms. The investment targets were selected based on value investment. of the Company held 11 green bonds, totaling RMB 710 million.
In 2021, Caitong Securities Asset Management, a subsidiary, participated in responsible investment and green
The Company applied the ESG concept in the whole process of pre-investment project screening, bond investment totaling about RMB 1 billion, and issued the ESG strategy product worth RMB 11.05 million
investment due diligence, post-investment management and exit, and adopted positive screening, Sustainability and a new energy vehicle themed fund, which focused on green economy industries represented by new energy
negative elimination and active shareholder method to make responsible investment, thus actively theme method vehicles under the background of carbon reduction, and helped enterprises in photovoltaic, energy storage,
delivering positive environmental and social benefits. lithium battery and other industries to pursue sustainable development.
47 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 48
Climate change has become one of the major crises threatening human survival and development. With the proposal of the Invest in Heda Technology to help build an IoT Caitong Innovation invested in Soaring Electric to
goal of "achieving a peak in carbon dioxide emissions before 2030 and carbon neutrality before 2060", Caitong Securities Asset ecosystemchainofChina'ssmartwateraffairs boost the development of clean energy and energy
saving technologies
Management, a subsidiary, actively contributed to ecological development, comprehensively strengthened the research on risks In July 2021, Zhejiang Heda Technology Co., Ltd. (hereinafter
and opportunities related to climate change, formulated appropriate management measures, and gradually established a climate referred to as "Heda Technology") invested by Caitong Capital Beijing Soaring Electric Technology Co., Ltd. (hereinafter referred
change risk management framework. was listed on the Science and Technology Innovation Board, to as "Soaring Electric") invested by Caitong Innovation, is an
raising total funds of RMB 335 million. Heda Technology innovation-driven enterprise focusing on clean energy and energy-
Climate change risk management strategy of Caitong Securities Asset Management is committed to improving the IT-application and smart saving technologies in China, and its main business includes large-
technologies of the water industry by comprehensively using scale energy storage products and comprehensive solutions on
new-generation information technologies (such as IoT, big the wind and light new energy power generation and power grid
data and edge computing), and provides support for the water sides. As a key link in the development of renewable energy, the
Monitoring of public opinions industry to implement the national water-saving action plan, high-quality development of energy storage industry will strongly
prevent and control water pollution and improve services. support the realization of the new national strategy of "carbon peak
Caitong Securities Asset Management, a subsidiary, pushed a public opinion prompt email for holding targets every day to and carbon neutrality". After completing the investment, Caitong
monitor climate changes. If the climate change risk of the investment targets had a great impact on the credit qualification of the Caitong Capital invested in Heda Technology in November
Innovation helped it conduct comprehensive market and industry
subject, it would prompt relevant investment departments in time and make investment decisions (such as selling, warehouse- 2017, and provided financial support in the early stage of its
analysis, optimize its strategic positioning and market layout, actively
out and continuous holding) according to specific circumstances. development to help Heda Technology optimize its capital
introduce upstream and downstream resources of the industry, and
structure and accelerate its business expansion, thus enhancing
boost its develop and grow.
its market competitiveness.
Investment analysis
Caitong Securities Asset Management, a subsidiary, actively paid attention to the risks related to climate change, and attached Acceleratingthedevelopmentofgreenfinance
great importance to the positive actions of listed companies (such as cyclical companies and those at chemical upstream)
in environmental protection and carbon emission reduction, kept close track of the changes and development of industries
Low-carbon transformation and green development brought new development opportunities to the financial industry, and assigned unprecedented
such as green electricity and new energy, and focused on whether there were potential risks in the transformation of listed
responsibilities to financial institutions. Caitong Securities actively responded to the requirements of national documents (such as the Opinions on
companies. On the basis of closely tracking risks, researchers comprehensively assessed the impact of potential risks, adjusted
Completely, Accurately and Comprehensively Implementing New Development Concepts and Making Earnest Efforts in Carbon Peak and Carbon
the investment rating of the target in a timely manner, and the investment manager assessed the direction and impact degree
Neutrality and Guiding Opinions on Promoting Investment and Financing in Response to Climate Change), and comprehensively leveraged
according to the feedback from researchers, and then adjusted the holding ratio of the investment portfolio.
green equity financing, green bond underwriting and green investment methods to provide investment and financing support for green and
environmentally friendly enterprises in the fields of clean energy, energy transformation, energy conservation and environmental protection.
The Company attached great importance to ESG research, provided customers with ESG-related research services deeply covering many links
Issuance of ESG strategy products by Caitong Securities Asset Management in the industrial chain (such as photovoltaic, wind power, energy storage, hydrogen energy, third-generation semiconductors and new energy
vehicles under the new energy segment), released the reports (such as Photovoltaic Depth: Global Long-term Growth Space Opens and Chinese
In December 2021, Caitong Securities Asset Management established the No.1 Collective Asset Management Plan of Manufacturing Leads Industry Development and Cathode Material Depth: Ternary Route is Leading, High Nickel is the General Trend) to guide
Caitong Securities Asset Management ESG Bond, amounting to RMB 11.05 million. The investment strategy of the product more investors to pay attention to new energy, and promoted sustainable social and economic development and the application of the ESG concept.
considered ESG risk factors. In the investment process, it not only paid attention to the return on investment, but also took into
account the social impact of investment, including social fairness, economic development, human peace and environmental SuccessfullyhelpedissuethefirstgreensubjectcorporatebondinDeqingCounty
protection.
On May 27, 2021, Deqing County Culture & Tourism Development Group Co., Ltd., with Caitong Securities as the lead
The Company set up a separate securities warehouse for the product, and required a statement on whether an investment underwriter, successfully issued green corporate bonds in a non-public and bookkeeping way, amounting to RMB 1 billion. The
target met the ESG investment strategy when it was put into warehouse. After the product was invested in the target company, bond was the first green subject corporate bond in Deqing County, and the raised funds were specially used to support the development
the public opinion information was pushed by email every day for relevant departments to judge whether there was an ESG risk of green industries, including but not limited to the development, acquisition and operation of green industries and the repayment of loans
event triggering the threshold. If so, the investment manager would be informed in time and would sell the product without delay related to green industries.
within the adjustment time limit stipulated in the contract, and the Research Department put it out of the warehouse.
Caitong Securities assisted the issuer in completing the issuance of green bonds, laying a strong foundation for the development of green
industries and the progress of culture & tourism in Deqing County.
49 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 50
Sticking with green and low-carbon operation In terms of data center development, the Company had two data centers: Caitong Double Win Building Headquarters Data
Center and Binjiang Local Data Center. According to the Guiding Opinions on Strengthening the Construction of Green Data
Centers and other documents, the Company actively pushed forward the low-carbon transformation of data centers and reduced
Energy and resource management their energy consumption.
Caitong Securities was fully aware of the impact of climate change on the global economy, actively responded to national Builtthefirst-classBinjiangLocalDataCentertolaythefoundationfordigitalreform
policies, and advocated low-carbon and environmentally friendly operation and working methods. By strengthening the
management of energy conservation and emission reduction, adopting green office and building a green data center, the In 2021, the Company's Binjiang Local Data Center was officially put into operation. The new local data center was built according
Company reduced energy consumption and greenhouse gas emissions in daily operation and contributed to the mitigation of to the structure adapted to agile deployment to provide a more reliable operating environment, more efficient and secure network
and security services, and more flexible and faster information technology resources to meet the needs of information technology
climate change.
development under the trend of corporate group management.
Energy and resource management measures of Caitong Securities
Energy conservation and emission reduction measures of Caitong Securities data center
Vertiv precision variable frequency air conditioners were used for data centers, which reduced energy consumption
Energy Management Saving Water Resources Paperless Operation through the intelligent temperature control system.
Non-enabled cabinets were installed with blind disks to reduce overheating to avoid the "hot area" problem in the data
The exterior wall of the office building in The water-saving mode was adopt- All management and business centers and improve energy utilization.
Hangzhou was made of energy-saving ed, and water-saving signs were lines of the Company realized The professional team of IDC of China Unicom was engaged for infrastructure operation and maintenance. Targeted
and environmental protection materials posted in public areas. digital management and paper- measuresweretakentoimprovetherefrigerationeffectofpowerandenvironmentalequipment,avoid the occurrence
The office building was equipped
to reduce energy consumption. Ener- less operation through informa- of "evaporation, emission, dripping and leakage" in data centers and reduce reactive power consumption.
gy-saving LED light was used for indoor tion systems.
with a rainwater harvesting sys-
S trict economy management
lighting of the building. Solar photovoltaic
tem, which can be used for vehicle
panels were installed on the roof to con- Carrying out the publicity with the theme of "practicing economy and opposing waste"
cleaning and green plant irrigation. was implemented for office and
vert solar energy into electrical energy.
business publicity paper, which To further reduce the impact of the Company's
I ndoor air conditioning temperature was controlled through cost business and operation on the environment, in
should not be lower than 26 ℃ in sum- management and use approval. 2021, the Company carried out the publicity with
mer and higher than 20℃ in winter, and the theme of "practicing economy and opposing
the energy-saving mode should be en- waste", standardized employees' behavior
abled in public areas after work. from the aspects of civilized dining, optimizing
canteen management, saving electricity and
water, and strictly controlling office supplies and
consumables, conveyed the green and low carbon
concept.
In 2021, the Company published 17 articles
on corporate and official WeChat accounts,
disseminated strict economy requirements online
and offline (such as exhibition boards and elevator
carriage videos), and integrated such requirements
into the daily work and life of employees.
Exterior wall of for office building was made of energy-saving and Photovoltaic panels in office building
environmental protection materials
51 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 52
Waste Management
The main waste generated by the Company included harmless waste (such as kitchen
waste, office paper, express delivery cartons and glass) and hazardous waste (such as
electronic waste and toner cartridge). Office and domestic garbage was cleared and
transported by the Company's property management company after uniform collection.
The Company placed hazardous waste (such as electronic waste and toner cartridge) at
fixed locations and regularly entrusted a qualified company to recycle and dispose of it.
In addition, for important core production system and equipment, the Company adopted
the principle of "3-year warranty and out of service after 5-year operation". For equipment
that had been in use for more than 5 years, well-configured equipment in normal
condition would be used for testing simulation and other environment. For equipment that
had been scrapped and could not be used any longer due to failure, available hard disk
and memory would be reused as spare parts for repair and expansion of the equipment
with expired warranty.
Supplier management
As a financial enterprise, the Company's suppliers were mainly engaged in the provision
and service of information technology software and hardware, office supplies, facilities
and equipment. The Company formulated the Management Measures for the of
Centralized Procurement of Caitong Securities Co., Ltd., stepped up supplier screening
and classified management, and created a sound cooperative ecosystem for suppliers.
The Company upheld the principles of openness, fairness, impartiality, honesty, credit
and benefit, and required the staff involved in procurement to consciously abide by the
principle of confidentiality and relevant regulations. Procurement personnel and related
personnel who had conflicts of interests with suppliers should remove themselves from
the procurement. If they failed to do so, or if they accepted the property or other benefits
of suppliers, the discipline inspection and supervision department would take the lead in
the investigation, held relevant parties accountable and imposed disciplinary sanctions.
If a supplier bribed or provided other illegitimate interests to the Company's procurement
personnel, the Company would disqualify the supplier; and if losses were caused to
the Company, the supplier should also bear compensation liabilities. The Company
published information (such as telephone number, email address and letter address
for procurement supervision) on its official website, and accepted public reporting and
supervision on violations of laws and regulations such as illegal and false bidding and
bribe acceptance.
S
Shouldering Responsiblities
in the New Era
Providing professional and high-quality services
Valuing data security and privacy protection
Strengthening investor protection
Fulfillingsocialresponsibilities
Building a happy workplace
55 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 56
Providing professional and high-quality services
“
To further guard against return visit business and complaint handling
risks, the Company actively carried out business training and regular In 2021, the customer complaint
Caitong Securities remained customer-centric, and earnestly tracked and reported customer business training for agents, organized special training for branches,
and made two-way efforts to comprehensively improve the business
handling rate stood at 100%, and
customer satisfaction was 93.47%.
“
in the New Era
Shouldering Responsiblities
problems and needs while providing customers with diversified and multi-level products and service
systems. To standardize the work relating to complaints and return visits, the Company established capability of customer service personnel and customer satisfaction.
and improved the customer complaint and return visit system, formulated the Customer Complaint
and Dispute Settlement Policy and Policy for Return Visits to Investors, and clarified the division of
responsibilities, handling principles and procedures of departments and branches with respect to
customer complaints and return visits, so as to effectively protect customers' rights and interests. Valuing data security and privacy protection
To further optimize customer service and improve customer satisfaction with service, the Company
constantly explored the building of an intelligent customer service system to enhance customer The Company attached great importance to data
service experience and satisfaction. security and customer privacy protection, and
effectively protected the security of customer
Caitong Securities took a range of measures to optimize customer service information and transactions in strict accordance
with the Data Security Law of the People's
Expanding consultation and complaint channels Republic of China, Personal Information
Protection Law of the People's Republic of China
Filing complaints at any point of contact The interactive module of complaint consultation service
and other documents.
was added to the Company's two WeChat public accounts-"Caitong Securities Service" and "Caitong
Investment Education", and supported intelligent robot service, manual consultation and "one-click" In 2021, the Company issued the Data Security
complaint function together with PC client and App. Management Measures of Caitong Securities
A special customer service line was set for the elderly. In the Company's unified customer service Co., Ltd., conducted compliance inspection on
hotline 95336, a special line was added for the elderly. At the same time, the customer service staff the "Privacy Policy" of its official App, upgraded
were trained in respect to the skills for communication with the elderly customers to enhance their relevant customer information privacy protection
experience of services. Since August 2021, more than 1,700 person-times of investors have been function, and solemnly promised to customers that: The collection of personal information about customers follows the principles
transferred through the special line for the elderly, accounting for about 3.3% of the total manual transfer. of legality, legitimacy and necessity, and no information unrelated to business will be collected nor will information be collected
by improper means. At the same time, to ensure the operation and maintenance of key databases and the security of data
access, the Company built a unified database security management and control platform, and comprehensively managed and
Convenient business handling controlled core data through measures such as authority control, data desensitization and behavior audit.
Morediversifiedbusinessprocessingchannels. The Company has installed VTM for 96 devices In 2021, there was no violation related to customer information or transaction security.
in 89 branches and supported 13 high-frequency services such as personal account opening. Mobile
witness service was provided through IPAD, and 21 door-to-door businesses (including account
opening and ChiNext Board authority activation) were handled for institutional and product customers. Conducting information security training
Intelligentoutboundcallandqualityinspectionprojectswereofficiallylaunched. The application
The Company made proactive publicity efforts in data security and privacy protection. In 2021, the Company organized the
of existing return visits has been realized for intelligent outbound call scenarios, reducing more than
production of security training courses, and conducted education and publicity on data security and privacy protection for all of
30,000 customers to which return visits would be made through manual call in that year. Intelligent
its employees through pushing information security publicity materials on WeChat, launching Cyber Security Week campaigns
quality inspection has been applied to the manual return visit scenario of new account opening, and the
and other forms, so as to draw more attention of employees to data security.
quality inspection proportion of such return visits has risen to 100%.
57 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 58
Strengthening investor protection The Company actively implemented the work requirements of CSRC for incorporating investor education into the national
education system, formed long-term cooperation with Zhejiang University, Zhejiang University of Technology, Jiaxing University
The Company has created the characteristic brand of Caitong investor education through the investor education project and and other universities on investor education, made overall arrangements for investor education resources according to the
with the physical state-level investor education base as the support and 100 public welfare investor education activities themed actual needs of universities and the objective conditions of securities companies to help college students understand and master
on "New Stage, New Wealth and New Consumption" in Zhejiang Province as the carrier, promoted the improvement of national the concepts and theoretical knowledge of the securities market, carried out special activities to enhance the awareness of
financial literacy and advanced the building of a new ecosystem of positive wealth. preventing illegal securities business activities, and helped improve national financial literacy.
Reinforcing the building of the investor education base and fostering a "one-stop investor education service site" ProvidingfinancialandconsultingservicestoclientsinZhejiangProvinceandexpanding
its coverage in China, Caitong Securities launched thematic activities in Zhejiang University
In 2021, the investor education base of Caitong
Securities cooperated with business outlets and external Under the guidance of CSRC, the Company, in cooperation
institutions to carry out investor education activities with Shanghai Stock Exchange, Zhejiang Office of CSRC
through training, campaign and special lecture, including and Zhejiang University, further promoted the "incorporation
139 investor education campaigns and knowledge of investor education into the national education system".
lectures (such as industrial exchange and discussion,
In 2021, the Company set a compulsory course of Frontier
315 laws and policies, 515 investor protection publicity
Financial Practice in cooperation with Zhejiang University,
day and preventing and cracking down on illegal
and more than 160 students signed up for it, allowing the
activities). It served more than 28,400 investors and Investor education base of Caitong Award certificate of National-level students of Zhejiang University to gain a close understanding
received 4,134 satisfaction questionnaires in total. The Securities Investor Education Base
of the history of China's capital market, stimulating the
satisfaction rate reached 97.8%.
students' interest in in-depth exploration and research of the
Since 2021, the investor education base of Caitong Securities has been awarded the titles of "Zhejiang Financial Consumption financial industry, and winning high praise of the students. Frontier Financial Practice series of courses in Zhejiang University
Education Base" by Zhejiang Consumer Council, "Provincial-level Securities and Futures Investor Education Base" by
Zhejiang Office of CSRC and "National-level Securities and Futures Investor Education Base" by CSRC.
In view of the weak spots of middle-aged and elderly community investors in basic wealth management knowledge and
insufficient understanding of illegal securities activities, the Company regularly conducted lectures with the theme of
Jointly carrying out 100 public welfare campaigns for investor education themed
"Neighborhood Classroom", established reasonable investment concepts, earnestly safeguarded the legitimate rights and
on "New Stage, New Wealth and New Consumption" in Zhejiang Province
interests of elderly investors in the information era, and helped Zhejiang build a demonstration zone for common prosperity.
In March, 2021, the Company launched 100 public welfare campaigns
for investor education themed on "New Stage, New Wealth and New Offering"NeighborhoodClassroom"toearnestlysafeguardthe
Consumption" in Zhejiang Province. It focused on promoting three "100" legitimate rights and interests of middle and old-aged investors
action plans (setting up an investor education and publicity team of 100
members, conducting 100 public welfare lectures and conducting 100 The Company continuously conducted "Neighborhood
public welfare campaigns) to protect the legitimate rights and interests of Classroom" activities with the themes of Double Ninth
investors, especially those of small and medium-sized investors. Festival, “Neighborhood's Day", "Lifelong Learning Week"
of Shangcheng District in Meizhengqiao Community,
The Company set up an investor education and publicity team of 111
Yuhuangshan Community and Baitaling Community around
members, carried out 666 special campaigns covering nearly 110,000
the investor education base, further took targeted measures
investors, released 1,597 investor education and publicity articles online
to enhance the sense of gain and happiness of the elderly
(investor education website) and offline (physical investor education base)
and "did practical work" for elderly investors.
with reading person-times exceeding 2 million, and spread the "voice"
100 public welfare campaigns for investor education were
of knowledge, investment philosophy and risk warning to all corners of officially launched in Zhejiang Province "Neighborhood Classroom" activities of Neighborhood's
society. Day in Yuhuangshan Community
59 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 60
Major work and achievements by Caitong Securities to promote rural revitalization in 2021
Fulfillingsocialresponsibilities
Providing financial assistance
Quickening steps in rural revitalization The Company actively supported the revitalization and development of old revolutionary base areas, and helped complete the
“
financing of three single bonds, totaling RMB 2.045 billion.
Since 2021, based on the Opinions of the State Council of the C aitong Securities Asset Management established and issued the asset-backed securities (ABS) project for "Caitong-Dinghai
CPC Central Committee on Realizing the Effective Connection The Company carried out rural revitalization Heping Government-subsidized Housing", amounting to RMB 220 million. The funds raised were used for the construction of two
between Consolidation and Expansion of Poverty Alleviation assistancebyprovidingfinancial,industrial, resettlement house estates in Zhoushan. The project effectively ensured smooth resettlement of more than 1,200 households.
Achievements and Rural Revitalization, the Company has Actively educational assistance, launching pro-
respond to the country's call to "realize the effective connection consumption campaigns and providing
sympathy and support for people in Supporting industries
between consolidation and expansion of poverty alleviation
achievements and rural revitalization" and "vigorously implement difficulties. In 2021, Caitong Securitiesand Implementing the initiative of "Thousands of Enterprises Pairing with Thousands of Villages". The Company invested RMB
its participating and controlled subsidiaries 500,000 in developing 150 mu of "Common-prosperity Orchard" of Citrus Paradisi at Xincun Village, Daqiaotou Township,
rural development initiatives", gave full play to the professional
advantages and inclusive functions of financial institutions, and
invested RMB 10.39 million in rural
revitalization.
“ Changshan County, Quzhou. The Company donated RMB 200,000 to Tatansi Village, Quhua Subdistrict, Kecheng District,
Quzhou to support the construction of "Philanthropical Vegetable Garden" (research-education base).
Deepening cooperation between the Eastern and the Western regions. The Company invested RMB 400,000 to improve
strove to depict a new picture of " common prosperity of Caitong"
production and domestic water supply and public transportation of Shuangmiao Village, Maduguan Town and Shaping Village,
Baima Town, Xuanhan County. The Company donated RMB 600,000 to assist the Securities Association of Zhejiang with the
bridge construction project of Tanglu Village, Nyima Town, Nyima County, Tibet.
The Company implemented the action plan for increasing the income of low-income population. The Company invested RMB
500,000 to assist Leifeng Township, Tiantai County in developing "Caitong Forest" and Tea Expo and holding "Farmer Auditorium"
themed on "rural revitalization and common prosperity".
Supporting education
The Company supported education by holding the 5th online financial support training session, attended by more than 60 people
including trainees from 6 counties (Jiange, Sichuan, Yugan, Jiangxi, Luquan, Yunnan, Gangu, Gansu, Changshan, Quzhou and
Leifeng, Tiantai), officials of places for which subsidiaries gave pairing assistance and relevant entrepreneur representatives.
Appearance of Boutique B&B supported by the Company
Launching pro-consumption campaigns
The Company purchased mushroom worth RMB 573,500 from Luquan County, Yunnan.
The Company purchased common-prosperity fruit and tea oil worth RMB 544,000 from Daqiaotou Township, Changshan County.
The Public Welfare Foundation of Caitong Securities Asset Management in Zhejiang completed the purchase of "1mu Tea
Garden" public welfare agricultural support project at Caiyuan Township, Suichang County, Zhejiang Province for 2022.
Providing sympathy and support for people in difficulties
The Company carried out activities (such as care for the elderly, assistance for orphans and minors from special families,
treatment of community-level people with difficulties and assistance for the disabled) to provide sympathy and support for people
"Common-prosperity Orchard" of Caitong Securities established by the Caitong Huanggang Primary School funded by the Company in difficulties in three counties (Gangu County, Gansu, and Jiange County and Xuanhan County Sichuan). In 2021, the Company
Company greeted 90 people in total, amounting to RMB 95,000.
61 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 62
The Public Welfare Foundation of Caitong Securities Asset Management in Zhejiang purchased "1 mu Tea Garden" "One Company for One County" pairing assistance achievements by Caitong Securities in 2021
In December 2021, the Public Welfare Foundation of Caitong Securities Asset Management in Zhejiang teamed up with the Party
Committee and government of Caiyuan Township, Suichang County, Zhejiang Province to purchase "1 mu Tea Garden" in public Continuing to support Gangu Continuing to support Luquan
welfare program to support agriculture for 2022. The purchase funds of more than RMB 200,000 were used for targeted assistance County, Gansu Province. County, Yunnan Province.
in improving collective economy and villagers' life of Yongxing Village, Caiyuan Township, converting public welfare into an Caitong contributed RMB 600,000 Caitong contributed RMB 800,000 to
important force to help Zhejiang build the "demonstration area for common prosperity". to support 10 key demonstration support Luquan County developing
villages of rural revitalization in sorghum planting. Through integrat-
Gangu County in upgrading basic ed development of industries, 4,000
public service facilities and build- farmer households in 12 towns and
ing the village brightening project villages planted 20,000 mu sorghum,
so as to improve the production which created jobs and helped 127
and living conditions of villagers farmer households in nearby Malutang
and students. Township, Tanglang Township and Ze-
hei Township increase their income.
Poverty Poverty
Real scene of "1 mu Tea Garden" Poverty
alleviation alleviation Poverty
alleviation
through public through alleviation
through
welfare activities industry through
public welfare
and industry development education
activities
Tapping deep in “One Company for One County” pairing assistance development
Caitong Securities actively leveraged its financial advantages, implemented the "One Company for One County" pairing
assistance initiative of Securities Association of China, and practiced its social responsibility. By the end of 2021, the Company C o n t i n u i n g t o s u p p o r t Yu g a n
(including its subsidiaries) had successively signed assistance agreements with 54 villages in 25 townships (towns) in 27 County, Jiangxi Province.
counties across the country, with a total investment of nearly RMB 150 million, benefiting more than 230,000 people. All the Continuing to support Jian’ge
Caitong contributed RMB 500,000
County, Sichuan Province.
paired townships had been lifted out of poverty. to support Huanggang Caitong Ele-
Caitong contributed RMB 800,000, mentary School in Gubu Town, Yugan
Poverty alleviation is not the end point, but the starting point of new life and new endeavor. With continuous efforts on "One of which RMB 300,000 was used to County in building a 200m sports
support the drinking water project in ground, a 260m-long school culture
Company for One County" in 2021, the Company consolidated the poverty alleviation achievements in four counties (Luquan,
Xiangchen Town by upgrading the wall and teaching equipment.
Jiange, Yugan and Gangu), gave full play to expertise and advantages, and helped the areas to be lifted out of poverty achieve production and domestic water pipe-
all-round development in industry, talent, culture, ecology and organization. In 2021, at the Company's group level (excluding line network, RMB 300,000 to build
subsidiaries), RMB 2.7 million was invested in pairing assistance. the tobacco roasting barn in Wulian
Town, and RMB 200,000 to expand
the red-flesh kiwi industrial park in
Kaifeng Town.
63 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 64
Establishing a long-term mechanism for public welfare
“
A little kindness can warm people's heart. Through the standard operation
of "Kindness Warms Heart" public welfare brand system, Caitong Securities In 2021, Caitong Securities and its
mobilized all sectors of society to support public welfare, and pooled little participating and controlled subsidiaries
love into great love for society. In 2021, the Company deeply fulfilled its social
responsibilities, and continued to help public welfare in the fields of public
allocated public welfare funds of RMB
13.7228 million.
“
education, medical and health care and cultural heritage, demonstrating its
sense of mission as a state-owned financial enterprise.
Caitong Securities' public welfare activities and major achievements in 2021
The Company participated in the voluntary cultural service action of Chinese ancient The Party branch of Qingdao Branch extended greetings to the
books census frontline staff of pandemic prevention and control
Improving the learning and growth environment of students in poverty-stricken areas
The Company donated RMB 300,000 to purchase full-color electronic screens, lights and other devices for
Qiming School in Aksu, Xinjiang, improving teaching infrastructure in poverty-stricken areas.
Giving care for the living and medical conditions of disadvantaged groups
The Company donated RMB 100,000 to Zhejiang Foundation for Disabled Persons, and provided help to special
population through the public welfare activities of "Learning Party History, Feeling Party Grace and Giving Love
to Disabled Children".
Through Zhejiang Guofu Foundation, the Company donated RMB 1 million to the First Affiliated Hospital,
Zhejiang University School of Medicine to support the public welfare project of helping liver transplantation for
underage patients with congenital biliary atresia and end-stage liver disease from low-income families.
Supporting the infrastructure development of higher education institutions
Through Hangzhou West Lake Education Foundation, the Company donated RMB 100 million (payment in 10
years) in total to West Lake University. RMB 10 million was donated in 2021 to support the development of West
Lake University, providing support for the strategy of revitalizing the country by means of science and education
and driving development through innovation. The fleet transporting the materials donated by the Company to Huanggang Primary School
Promoting the protection and inheritance of cultural heritage
The Company continued to invest RMB 1 million to support Ancient Books Preservation and Conservation Caitong Securities not only paid attention to its public welfare activities, but also
Association of China to carry out document restoration and protection, 2021 census of Chinese ancient books actively called on all employees to contribute their love to the society. In 2021, In 2021, the Company organized all
(volunteers) and the restoration and research projects of ancient Tibetan medicine books, so as to promote the the Company instructed more than 20 league organizations to carry out volunteer employees to actively participate in the
basic work of ancient books protection. service activities for more than 60 times, serving more than 17,000 people. The "Charity Day Donation" activity
Providingmaterialandspiritualsupportforthefrontlineofpandemicfight Company constantly advanced the "Three-hour" public welfare volunteer platform, with the theme of "Pooling Forces of
Caitong to Boost Common Prosperity".
The Company donated protective clothing, foot covers, masks and other anti-pandemic materials worth RMB
developed "Philanthropical CaitongPublic Welfare Three-hour" Initiative with the
help of Alibaba's "Three-hour Public Welfare" platform, built a network mobilization The funds of RMB 733,000 raised
50,000 to Shangyu Finance Bureau, and contributed to winning the battle against the pandemic.
were used to help build the "demon-
The Company purchased anti-pandemic materials worth RMB 83,000 for frontline pandemic prevention and system with activity release and volunteer recruitment as its core function,
stration area for common prosperity".
control volunteers, medical personnel, sanitation workers and managers of first-tier cities. encouraged employees to actively participate in various public welfare activities
released by the platform, and actively advocated the concept of "gather love to
warm you, me and him".
65 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 66
Building a happy workplace Deepening university-enterprise cooperation and inviting students from Zhejiang University to Caitong Securities
In 2021, Caitong Securities and the School of Economics of
Zhejiang University jointly conducted the enterprise open day
Safeguarding the rights and interests of employees
activity. The Company invited students from Zhejiang University
to experience its corporate culture and working atmosphere
The Company paid attention to the introduction of outstanding talents, made differentiated recruiting plans for talents, and
and understand its business types and historical evolution, and
moved ahead with the recruitment in an orderly manner through various channels such as Caitong Securities' official website
expedited the "Elite Program" management trainee project.
and external recruitment platform.
Employee recruitment and achievements of Caitong Securities in 2021
Identifying demand and developing a talent pool
Students from Zhejiang University entered Caitong Securities
In early 2021, the Company conducted surveys on the recruitment demand of each organization, and forecasted annual
recruitment demand based on business scale, industrial trends and division of labor as well as industrial benchmarking data and
“
its YoY(Year over Year) staffing ratio. In 2021, 985 people were recruited and reported to duty on a cumulative basis.
In the process of talent introduction, Caitong Securities always upheld the
In 2021, the Company benchmarked against its peers ranked front in the relevant field or region, integrated platform resurces concept of diversity and the principle of gender equality. It was strictly forbidden
and developed an external talent pool. to screen and restrict employees in terms of gender, race and nationality. In 2021, the Company hired 23
ethnic minority employees. By the
Caitong Securities was committed to providing employees with equal and
end of 2021, the Company had 65
impartial working environment and development platform to ensure that all
Retaining excellent graduates in advance employees enjoy fair work opportunities. The Company signed labor contracts
with employees in strict accordance with the Labor Law of the People's Republic
ethnic minority employees and 1
veteran.
“
The Company introduced talents through the "Elite Program" management trainee project, with the aim of cultivating and of China, Labor Contract Law of the People's Republic of China, Law of the
developing professionals and elites with proficient business skills, comprehensive ability and upward mobility for its investment People's Republic of China on the Protection of Rights and Interests of Women,
banking, investment research, financial technology, wealth management and professional function lines. Provisions on the Prohibition of Using Child Labor and other documents. It is
Internship and campus recruitment in autumn was combined. During the internship, the Company provided interns with set forth in the Management Measures for Recruitment and Employment of
coachers responsible for attendance records, work goal setting, internship performance investigation and problem solving. In Employees of Caitong Securities, open recruitment shall be in compliance with
principle, the coachers of the internship department should be the managers at the primary level and above of the Company. fair competition and merit-based employment principles, the Company strictly
In 2021, 100 managment trainees recruited through the "Elite Program" reported to duty on a cumulative basis, including
prohibits the employment of child, compulsory and forced labor, strictly verifies
57 to the headquarter and 43 to branches. the identity of employees, and regularly checks labor intensity and evaluates
issues concerning human right policies.
Introducing high-caliber talents Employee remuneration and performance evaluation
In 2021, to cater to the stratgic development needs, the Company studied and implemented its high-caliber talent demand and The Company strictly abided by the Labor Law of the People's Republic of China, Labor Contract Law of the People's Republic
introduction plan, took active and targeted measures to attract or invite external high-caliber talents and leading experts to talk of China and other laws and regulations, formulated and implemented the Implementation Rules for Employee Performance
with its leaders, and established a regular mechanism for talent communication and exchange. Evaluation, the Management Measures for the Class of Employees in the Middle and Back Offices of Headquarters (Provisional)
and other rules, and established a sound remuneration and evaluation system.
67 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 68
The Company adjusted remuneration from time to time according to its market positioning and development strategy. It Cultivating high-quality talents
scientifically designed the remunerations of employees at all levels (including community-level employees and non-sales
personnel) according to its current situation, determined the shape of employee remuneration curve, established a standardized Guided by the goal of building "market-oriented, professional and young" official talent teams, the Company built a hierarchical
and effective class-based remuneration management mechanism to make the remuneration of employees more market-based, training system covering all employees, empowered employees to improve their abilities and performance through training, and
and continuously optimized the performance incentive mechanism combining short-term and long-term, and security and better helped employees' career development.
incentive.
Guided by high performance, the Company gradually established a scientific and effective employee performance evaluation Talent training system of Caitong Securities
system, and regularly evaluated the performance of all employees every year. Through reasonable evaluation of value
contribution by employees, it stimulated employee potential, facilitated employee career growth and development, and
realized continuous value addition of human resources. The Company organically combined personal goals of employees, Focus on Zhejiang,
its overall strategic goals, annual business plan and the building of corporate culture, adopted compulsory distribution of serve the whole country,
employee evaluation and continuously stepped up the feedback of evaluation results, promoted the improvement of employee andstrivetobecomeafirst-ratecompany
performance, and formed a virtuous circle of continuous growth. The Company clarified its evaluation appeal mechanism.
Compliance and
Big investment
Big investment
Functions and
Big operation
If employees disagreed with the fairness and impartiality of annual evaluation and the evaluation results, they could lodge
risk control
Big wealth
Talent echelon
research
services
banking
FinTech
an appeal with the Company's Organization and Human Resources Department or discipline inspection and supervision
department.
Advanced
Talent Inheritance Class
Resources Department
Directed by the Human
Led by relevant
department
Establishing a reward system for model employees (Middle and senior management personnel)
Seven expert
To better stimulate the enthusiasm and creativity of employees, the Company established a perfect internal model reward system. training programs
Talent Leap Class
The Company set "Special Contribution Award" to commend the collectives or individuals who had played an important role in
Intermediate Elementary
(Primary-level management personnel)
implementing the major decisions and plans of the Central Committee, the Provincial Party Committee, the Provincial Government,
relevant higher-level units and the Party Committee of the Company and promoting key strategic tasks, made outstanding
Resources Department
Talent Growth Class
Directed by the Human
contributions to the development of the Company or made significant contributions to the completion of the Company's operating
indicators. (Young backbone staff)
Comprehensivefinancial
The remaining awards were divided into political and cultural awards and management awards. In particular, political and cultural servicecertification
awards were used to commend model organizations or individuals who performed outstandingly in the party building and corporate Talent Seed Class
culture development and had great influence in the Company. Management awards were used to commend the collectives or (New employees)
individuals who performed outstandingly or actively innovated management and business modes, and played a great role in or
Political literacy and Party member education
Directed by the
made great contributions to the strategic development of the Company.
Party Office
O2O model: online (online course library, live streaming lectures, knowledge push) + offline
(centralized face-to-face teaching, industry visits, advanced studies abroad, practice on post)
Course support Faculty support Supplier support
Professional support Policy support Culture support Technical support
69 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 70
The Company encouraged employees to take the initiative to learn, and formulates the Detailed Rules for the Implementation of
Continuing Education for Employees of Caitong Securities Co., Ltd., which was committed to improving employees' professional Conducting "Growth" training to boost the development of young elites
quality and business ability. The Rules specified that the Company would reimburse or subsidize the securities qualification
or approved professional qualification items, covering 230 person-times. In 2021, the Company received 87 person-times
application for professional qualification awards, amounting to RMB 565,000.
Conducting "Talent" training to boost the growth of new employees
In September 2021, the Company gave the 40th "Talent" training courses for management trainees online and offline, covering the
subjects of courses on 28 e-learning platforms (such as "Five Strategies" and "Digital Finance") and modules (such as corporate
culture and policy interpretation). The training helped 96 management trainees to improve their professional quality and transform
from campus students to Caitong personnel, and accelerated their integration into Caitong's corporate culture, thus expanding the
influence of corporate culture and the attractiveness of employer brands.
"Growth" training in 2021
Conducting “Progress” training to improve the leadership of grassroots leaders
From October to December, 2021, the Company held the 3rd online "Progress" training course, covering 52 newly promoted
grassroots leaders. In the training, the learning and development ability model of grassroots leaders was built and two e-learning
communities (namely, "Co-learning Society" and "Training Camp for New Forces in the Securities Industry") were created through
group analysis. 11 campaigns (such as ability knowledge guidance, online theme seminar, practice sharing meeting and excellent
The 40th "Talent" training case review sharing meeting) were carried out to effectively solve practical problems in the management of grassroots leaders,
help them broaden their horizons and improve their management capabilities and leadership.
Conducting "Growth" training to boost the development of young elites
From May to October, 2021, the Company held six "Growth" training sessions for young elites with 65 excellent courses
available and 52 sessions for business sharing and exchanges. Five tools to guide the joint creation of courses and five digital
transformation subject deliverables were exported. The training improved the comprehensive quality and competency of young
elites and helped them define their career development plans. At the same time, it helped the Company to select and train reserve
talent echelons, promoted inter-departmental collaboration and communication at the group level, and increased support for the
Company's strategy and business.
In addition, some external institutions were selected for cooperation on the "Growth" young elites training program. Specifically:
Zhejiang Liangchuang Information Technology Co., Ltd. provided evaluation tools and services in personality traits,
development potential, leadership and other aspects to help employees know their strengths and weaknesses better and
enhance teamwork.
Hangzhou Hezhixing Enterprise Management Consulting Co., Ltd. provided excellent trainers specializing in problem
solving, systematic thinking and teamwork abilities, customized the syllabus and content, and improved the course quality.
71 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 72
Deepening care for employees Company's non-remuneration welfare system
The Company was committed to cre- Supplementary medical insurance
ating a warm and harmonious working Applicable to all employees of the Company. The medical expenses incurred
by employees in the current year could be paid by the insurance company
environment, actively carried out var-
designated by the Company based on medical expense invoices and
ied cultural and sports activities, cared supporting materials.
for employees’ physical and mental
Enterprise annuity
health, and comprehensively en-
Established according to relevant national laws and regulations and used to
hanced their sense of happiness. The ensure and improve the treatment of retired employees.
Company continuously optimized the
Accident insurance
welfare and security system for em-
In addition to paying for all in-service employees of the Company, it covered
ployees to fully enhance their corpora-
all interns of the Company, and fully protected their rights and interests.
tion identity and sense of belonging.
Annual rehabilitation and recuperation
The Company elected employee di- In 2021, nearly 800 employees participated in the Company's rehabilitation
rectors and supervisors in accordance and recuperation.
with the Company Law of the People's Annual physical examination
Mother-and-baby room Staff canteen
Republic of China, Labor Union Law of In 2021, the coverage of employees by physical examination was 100%.
the People's Republic of China, Con-
stitution of the Chinese Labor Unions Care for employees by Caitong Securities in 2021
and Opinions of All-China Federation
of Trade Unions on Further Promoting Care for all employees
the System for Employee Directors >>The Company provided employees with welfare facilities such as gym,
canteen, infirmary and mother-and-baby room. The satisfaction of staff in
and Supervisors. Employee directors
the canteen of the headquarters reached 99.2%.
and supervisors, as representatives >>The Company organized the campaign of "Caring for Employees and
and defenders of employees' inter- Paying Attention to Their Mental Health".
ests, gave full play to their link role in >>T he Company purchased anti-pandemic packages for all employees
shortly after the outbreak of the pandemic.
the Board of Directors and the Board
>>The Company carried out "CaiChildren" activities of caring for children for
of Supervisors, spoke for employees, employees and their families.
and ensured the rights and interests >>The Company organized basketball match and fun sports games to enrich
of the employees. The Company es- the life of employees in spare time.
tablished, improved and implemented Care for special employees
the workers’ congress and collective >>In case of marriage, death, birth and difficulty, the Company's labor union
extended timely greetings for more than 200 person-times throughout
consultation. At present, there are one the year, amounting to RMB 270,000. At the same time, it visited the
employee director and three employee grassroots for many times and subsidized RMB 150,000 to employees in
supervisors. In 2021, the labor union difficulty.
organized four workers’ congresses to Care for female employees
ensure employees' rights in democrat- >>The Company organized the International Women's Day themed activity Staff gym Staff infirmary
ic participation, decision-making and titled "Heart of Women to the Party and Century-long Glory".
>>The Company set up a mother chamber in Staff Home.
supervision.
>>T he Company offered an additional care insurance for all female
employees.
73 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 74
International Women's Day theme activities titled "Heart of Women to the Party and Century-long Glory" Key Quantitative Performance
In March 2021, the Company con-
ducted the International Women's Day Economic Performance
theme activities, including providing
Economic Performance
"Best Wishes, Vitality and Care" insur-
ance for all female employees, offering
Indicator Unit 2019 2020 2021
festival gifts for female employees,
improving mother-and-baby room facil- Total assets RMB 100 million 649.92 966.59 1,104.25
ities, holding the launching ceremony Business income RMB 100 million 49.52 65.28 64.08
of "Staff Home", and organizing female Basic earnings per share RMB/share 0.52 0.63 0.71
employees to visit 1954 Constitution
Social contribution value per share (SCVPS) RMB 1.37 1.77 2.40
Archives Exhibition Hall with the theme
of "learning Party history, staying true
to original aspiration and fulfilling mis- Note: SCVPS = basic earnings per share + (taxes the Company paid to the state within the year + employee wages and benefits + loan interest paid to
banks and other creditors + value created for other stakeholders such as donations - other social costs incurred by environmental pollution, etc.) /
sion". These activities enriched the
weighted average number of common shares outstanding.
intellectual and cultural lives of female
employees. The Company organized female employees to visit 1954 Constitution Archives Exhibition Hall
Social Performance
Customer Service Performance
Indicator Unit 2019 2020 2021
Number of customer inquiries Piece 156,126 251,938 255,236
Proportion of inquiries answered by
% 89.61 68.70 60.77
customer service staff
Proportion of inquiries answered by
% 10.39 31.30 39.23
intelligent customer service agents
Number of complaints Piece 66 65 41
Complaint handling rate % 100 100 100
Customer satisfaction % 92.28 94.10 93.47
Number of complaints of identified leaks, and
Time 0 0 0
losses of customer data.
Mr. Hu Guohua, the Company’s Deputy Secretary of Party Committee and Chairman of Labor
Union, extended greetings to female employee representatives Note 1: The data covers the headquarters of the parent company of Caitong Securities.
Note 2: Customer inquiries include those answered by customer service staff (via telephone and the Internet) and intelligent customer service agents.
Note 3: Complaint handling rate = number of complaints settled / total number of complaints.
Note 4: As the Company improves its digital and intelligent operations and optimizes its business processes, the proportion of its intelligent customer
service agents has increased year by year.
75 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 76
Employment Performance Employee Composition Performance
Indicator Unit 2019 2020 2021 Indicator Unit 2019 2020 2021
Employee turnover rate % 14.82 10.85 11.69 Total number of employees Person 2,659 2,884 3,464
Male % 16.94 12.20 13.72 Male Person 1,458 1,599 1,909
By gender By gender
Female % 12.24 8.56 9.20 Female Person 1,201 1,285 1,555
> 50 years old % 8.91 14.75 8.44 > 50 years old Person 101 122 154
By age 30 to 50 years old % 15.44 9.65 10.86 By age 30 to 50 years old Person 1,865 2,082 2,441
< 30 years old % 14.00 12.65 14.61 < 30 years old Person 693 680 869
The mainland % 14.82 10.58 11.69 Number of employees with doctoral degrees Person 15 16 17
By region
Overseas (including Hong Kong, Macao and Taiwan) % 0.00 0.00 0.00 By education Number of employees with master degrees Person 588 657 928
Total number of new employees Person 308 530 985 background Number of employees with bachelor degrees Person 1,824 2,000 2,310
Male Person 176 339 573 Number of employees with junior college degrees or below Person 232 211 209
By gender
Female Person 132 191 412 Number of primary-level employees Person 2,506 2,724 3,288
> 50 years old Person 4 1 2 By job grade Number of middle management employees Person 137 143 159
By age 30 to 50 years old Person 145 284 515 Number of senior management employees Person 16 17 17
< 30 years old Person 159 245 468 The mainland Person 2,659 2,884 3,464
By region
The mainland Person 308 530 985 Overseas (including Hong Kong, Macao and Taiwan) Person 0 0 0
By region
Overseas (including Hong Kong, Macao and Taiwan) Person 0 0 0 Number of Number of male management employees Person 188 123 132
management
employees Number of female management employees Person 35 37 44
Note 1: The data covers the parent company of Caitong Securities.
Note 2: Employee turnover rate in a specific category = number of former employees in this category during the year / number of employees in this category
Note: The total number of employees covers the parent company of Caitong Securities.
at the end of the year.
Performance in Protection of Employee Rights and Benefits
Indicator Unit 2019 2020 2021
Labor contract signing rate % 100 100 100
Social insurance coverage % 100 100 100
Number of penalties for violations of employee employment and labor
Time 0 0 0
laws and regulations
Employee health checkup rate % 100 100 100
Work-related deaths Person 0 0 0
Days lost due to work-related injuries Day 19 124.5 23
Note: The data covers the parent company of Caitong Securities.
77 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 78
Employment Training Performance Anti-Corruption Performance
Indicator Unit 2019 2020 2021 Indicator Unit 2019 2020 2021
Number of employees trained Person 2,126 2,595 3,117 Number of anti-corruption training sessions attended by employees Time 2 2 2
Coverage of employee training % 79.95 89.98 89.98 Number of employees who have received anti-corruption training sessions Person 200 150 4,500
Male % 79.97 89.99 89.99 Number of concluded legal cases regarding corrupt practices brought
Piece 0 0 0
By gender against the Company or its employees during the reporting period.
Female % 79.93 89.96 89.97
Primary-level employees % 78.73 89.98 89.93 Note 1: The data covers the parent company of Caitong Securities.
By employee category Middle management employees % 59.85 100.00 89.94 Note 2: In 2021, the Company carried out online and offline anti-corruption special training covering all employees, so the number of trainees had increased
significantly compared with the previous two years.
Senior management employees % 100.00 100.00 100.00
Training hours per employee Hour 29.03 60.26 120.08 Social Contribution Performance
Male Hour 28.01 58.00 121.50
By gender Indicator Unit 2019 2020 2021
Female Hour 30.05 62.50 118.50
Ordinary employees Hour 35.00 70.50 130.20 Charity funds invested RMB 10,000 1,775.05 4,493.50 2,411.28
By employee category Middle management employees Hour 30.40 61.20 125.40 Wherein, amount of investment in public welfare RMB 10,000 243.45 2,565.50 1,372.28
Senior management employees Hour 21.69 49.05 104.61 Wherein, amount of investment in rural revitalization RMB 10,000 1,531.60 1,928.00 1,039.00
Proportion of employees receiving regular performance and career
% 100.00 100.00 100.00 Note: The data covers the parent company of Caitong Securities and its subsidiaries
development evaluation
Note 1: The data covers the parent company of Caitong Securities.
Employee Volunteer Services
Note 2: Coverage of employee training in a specific category = number of trainees in this category / number of employees in this category.
Note 3: Training hours per employee in a specific category = Total training hours the employees in this category have received / number of employees in
this category. The training hours per employee refers to the hours of the trainings organized by the Company during the reporting period. Indicator Unit 2019 2020 2021
Number of volunteer service participants Person-time 200 800 1,200
Total volunteer service hours Hour 1,400 80,800 93,600
Volunteer service hours per employee Hour 70 101 78
Note 1: The data covers the parent company of Caitong Securities.
Note 2: In 2020 and 2021, as the Company organized volunteers to participate in epidemic prevention and control, carried out “Party Day” activities, and
sent warmth to people in need. As a result, the number of volunteer service participants and the total volunteer service hours increased year by
year.
79 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 80
Environmental Performance Report Index
Environmental Performance
Index of Guideline No.1 on the Application of Self-Regulatory Rules for Listed Companies on
Indicator Unit 2019 2020 2021 Shanghai Stock Exchange – Regulated Operation
Total GHG emissions Ton carbon dioxide equivalent 153.57 228.40 3,800.71
Guideline No.1 on the Application of Self-Regulatory Rules for Listed Companies on Shanghai Stock Exchange –
GHG emissions in Scope 1 Ton carbon dioxide equivalent 4.23 4.59 130.88
Regulated Operation — Chapter 8 Social Responsibility
GHG emissions in Scope 2 Ton carbon dioxide equivalent 149.34 223.81 3,669.83
Requirement of Guideline Section index
GHG emissions per capita Ton carbon dioxide equivalent/person 0.45 0.63 2.03
GHG emissions per unit area Ton carbon dioxide equivalent/m2 0.02 0.03 0.09 Sticking with green and low-carbon operation
Total natural gas consumption m3 — — 33,021.00 8.1 Fulfilling social responsibilities
Natural gas consumption per capita 3
m /person — — 22.59 Building a happy workplace
Natural gas consumption per unit area m3/m2 — — 0.97
Improving the compliance and risk control system
Petrol consumption of the Company’s own vehicles Liter 1,562.00 1,696.00 21,934.00
8.2 Keeping good business ethics
Total power consumption MWh 286.89 408.95 6,057.28 Providing professional and high-quality services
Power consumption per capita MWh/person 0.84 1.12 3.23
Power consumption per unit area MWh/m2 0.04 0.05 0.14 Keeping good business ethics
Total water consumption m3 3,430.36 3,499.71 32,552.82 Sticking with green and low-carbon operation
8.3
Water consumption per capita 3
m /person 10.03 9.59 17.36 Fulfilling social responsibilities
Building a happy workplace
Water consumption per unit area m3/m2 0.49 0.41 0.75
Quantity of electronic wastes Piece 530 1,254 206 8.4 Key quantitative performance
PUE of Headquarters Data Center (owned) / 1.50 1.52 1.63
PUE of Binjiang Disaster Recovery Data Center (owned) / 1.42 1.44 1.45 8.5 Applicable
Energy Consumption of Headquarters Data Center (owned) MWh 437.83 2,983.62 3,680.04 Sticking with green and low-carbon operation
Energy Consumption of Binjiang Disaster Recovery Data Providing professional and high-quality services
MWh 2,285.54 2,393.11 2,262.35 8.6
Center (owned) Fulfilling social responsibilities
Building a happy workplace
Note 1: The data on GHG emissions, petrol consumption of the Company’s own vehicles, natural gas consumption, power consumption and water
consumption covers the headquarters of Caitong Securities in Hangzhou, the headquarters of Caitong Securities Asset Management in Shanghai, 8.7 Building a happy workplace
the headquarters of Caitong Capital, the headquarters of Caitong Innovation, and the headquarters of Caitong (Hong Kong); in 2019 and 2020, such
8.8 Sticking with green and low-carbon operation
data did not cover the headquarters of Caitong Securities in Hangzhou. The quantities of electronic wastes and the data center-related indicators in
the three years listed above all cover the headquarters of Caitong Securities in Shanghai.
8.9 Applicable
Note 2: The GHG emissions in Scope 1 contain those directly generated from the petrol consumption of the Company’s vehicles and its natural gas
consumption. The GHG emissions in Scope 2 are those indirectly generated from outsourced power. The emission factors in Chinese mainland 8.10 Sticking with green and low-carbon operation
in 2019 and 2020 referred to the 2015 average emission factors of Chinese regional power grids from the Supplementary Data of the 2019
Greenhouse Gas Emissions Report issued by the Ministry of Ecological Environment. The emission factors in Hong Kong referred to the GHG 8.11 Sticking with green and low-carbon operation
emission factors of electricity in Hong Kong from the Appendix II: Reporting Guidelines for Environmental Key Performance Indicators updated
by the Hong Kong Stock Exchange on May 28, 2021. The emission factors in Chinese mainland in 2021 was updated as the 2021 GHG emission 8.12 N/A
factors of Chinese regional power grids from the Guidelines for Accounting and Reporting Greenhouse Gas Emissions of Power Generation
Facilities (Revised in 2022) issued by the Ministry of Ecological Environment. 8.13 N/A
Note 3: From 2019 to 2021, the headquarters of Caitong Securities Asset Management in Shanghai, the headquarters of Caitong Capital, the headquarters 8.14 Building a happy workplace
of Caitong Innovation, and the headquarters of Caitong (Hong Kong) had no natural gas consumption.
Note 4: E-waste includes the old servers, network devices, safety devices, desktop computers, printers, and other old electronic equipment in data centers. 8.15 Speeding up the development of “CDi-wisdom”
As the headquarters of Caitong Securities in Hangzhou was moved to a new building in 2021 and saw the disposal of much waste in 2020, its
electronic waste increased at first and then decreased in the past three years.
81 Caitong Securities 2021 Environmental, Social and Governance (ESG) Report 82
Index of Sustainability Reporting Standards (GRI Standards)
Sustainable Sustainable Sustainable Sustainable
Development Development Development Development
Report Description Report Description Report Description Report Description
Standards Standards Standards Standards
Indicator Indicator Indicator Indicator
Foundation Communication with stakeholders and Employment
102-41
analysis of material topics Supporting the building of the demonstration
101-1 About the Report 401-1 Key quantitative performance
Communication with stakeholders and zone for common prosperity,
Organizational profile 102-42
analysis of material topics Helping Zhejiang become a pioneer province 401-2 Building a happy workplace
102-1 Company profile Communication with stakeholders and for socialist modernization,
102-43 203-1 Occupational Health and Safety
102-2 Company profile analysis of material topics Being a comprehensive financial service
102-3 Company profile Communication with stakeholders and provider based in Zhejiang, 403-2 Key quantitative performance
102-44
analysis of material topics Fulfilling social responsibilities,
102-4 Company profile Training and Education
Reporting practice Key quantitative performance
102-5 Company profile 404-1 Key quantitative performance
102-45 About the Report
102-6 Company profile
102-46 About the Report Anti-corruption Diversity and Equal Opportunity
102-7 Company profile
Communication with stakeholders and Keeping good business ethics 405-1 Key quantitative performance
102-8 Key quantitative performance 102-47 205-1
analysis of material topics Key quantitative performance
102-9 Company profile Anti-discrimination
102-49 Key quantitative performance 205-2 Keeping good business ethics
102-10 Company profile 102-50 About the Report 406-1 Key quantitative performance
Environment
Improving the compliance and
102-11 102-51 About the Report 103-1 Child Labor
risk control system
Sticking with green and low-carbon operation
Strategy 102-52 About the Report 103-2 408-1 Key quantitative performance
Key quantitative performance
102-14 ESG statement from the Board of Directors 102-53 About the Report 103-3 Forced or Compulsory Labor
102-15 ESG statement from the Board of Directors 102-54 About the Report Energy
409-1 Key quantitative performance
Ethics and integrity Index of Sustainability Reporting Standards 302-1 Key quantitative performance
102-55
(GRI Standards) Marketing and Labeling
102-16 ESG Concepts 302-3 Key quantitative performance
Economy 417-2 Key quantitative performance
Governance Environmental Compliance
103-1 307-1 Key quantitative performance
102-18 Improving corporate governance Company profile 417-3 Key quantitative performance
Communication with stakeholders and 103-2 Society
102-21 Key quantitative performance Customer Privacy
analysis of material topics 103-3
103-1
102-22 Improving corporate governance Valuing data security and privacy protection
Economic Performance Fulfilling social responsibilities
Stakeholder engagement 103-2 418-1
201-1 Key quantitative performance Key quantitative performance
Communication with stakeholders and Key quantitative performance
102-40 Indirect Economic Impacts 103-3
analysis of material topics
83 Caitong Securities
About the Report
This is the 5th Report issued by Caitong Securities Co., Ltd. since its listing, aiming to disclose the Company’s environmental,
social and corporate governance initiatives and accomplishments to the stakeholders.
Scope of Report
Organizational scope: The same as the scope of the consolidated annual financial statements of the Company unless otherwise
specified.
Time span: January 1, 2021 to December 31, 2021
Frequency of issuance: The Report is issued annually, and the last one was 2020 Social Responsibility Report.
Data Description
The data and cases in the Report are sourced from the original records or financial reports on the actual operation of Caitong
Securities and its subsidiaries. The financial figures are denominated in RMB. In case of any discrepancy between the Report
and the financial reports, the latter shall prevail.
Basis of Preparation
The Report is prepared based on Guideline No.1 on the Application of Self-Regulatory Rules for Listed Companies on Shanghai
Stock Exchange – Regulated Operation issued by Shanghai Stock Exchange. Meanwhile, this Report has quoted some
standards from the Standards for the Contents and Formats of Information Disclosure by Companies Offering Securities to the
Public No. 2—Contents and Formats of Annual Reports (2021 Revision) issued by the CSRC and the Sustainability Reporting
Standards issued by the Global Reporting Initiative.
Reliability Assurance
The Board of Directors and all directors of the Company guarantee that the Report is authentic, accurate and complete, and
contains no false records, misleading statements or major omissions. The Board of Directors and all directors of the Company
assume joint and several liabilities for the truthfulness, accuracy and completeness of the information contained herein.
Access to the Report
This Report is published in both printed and electronic versions, and the later version is available on the websites of Shanghai
Stock Exchange (www.sse.com.cn) and Cninfo (www.cninfo.com.cn).