2023
Social Responsibility Report
HUAXIA BANK CO., LIMITED
Huaxia Bank actively fulfills its socialresponsibilities. Since 2021, the Bank hasfully supported Beijing’s Central Axis to apply forinclusion on the World Heritage List, practicingour philosophy of “Sustainable, Wonderful”through cultural heritage protection.
2023Social Responsibility Report
HUAXIA BANK CO., LIMITED
HUA XIA BANK CO., LIMITEDSocial Responsibility Report
Fully Supporting Beijing’s CentralAxis to Apply for Inclusion on theWorld Heritage List
About This ReportReporting ScopeReporting Period: Unless otherwise stated, the report covers theperiod between January 1 to December 31, 2023.Organizational Boundary: The report discloses the information of theHuaxia Bank Co., Limited and its major subsidiaries.Release Cycle: This is an annual report. This report is the 16thCorporate Social Responsibility (CSR) report issued by the Bank in a row.The most recent report was issued on April 28, 2023.Preparation Basis
The report was prepared in accordance with theGuidelines onEnvironmental Information Disclosure for Financial Institutionsissued bythe People's Bank of China,the Opinions on Strengthening the CorporateSocial Responsibility of Banking Institutionsissued by the former ChinaBanking Regulatory Commission (CBRC), theGuidelines on CorporateSocial Responsibility for Financial Institutions in China’s BankingSectorby China Banking Association, and the GuidelinesNo.1 for Self-Regulationof Listed Companies - Standardized Operationissued by Shanghai StockExchange (SSE), and by referring to theGRI Sustainability ReportingStandards (GRI Standards)issued by Global Sustainability Standards Board(GSSB) and the IFRS S2 Climate-related Disclosures.ReferenceFor better readability, "Huaxia Bank Co., Limited" is referred to as"Huaxia Bank" , "the Bank" or "We", "Huaxia Wealth ManagementCo., Ltd." is referred to as "Huaxia Wealth Management", and HuaxiaFinancial Leasing Co., Ltd. is referred to as "Huaxia Financial Leasing" inthe report.Data SourcesThe financial data in the report come from the audited Annual Report2023 of Huaxia Bank Co., Limited and other data come from internaldocuments and statistics of Huaxia Bank. Unless otherwise specied, themonetary amounts mentioned in the report are denominated in ChineseRMB.Some contents and data can be traced back to previous years.
Languages
The report is available in simplied Chinese and English versions. In caseof any discrepancy, the simplied Chinese version shall prevail.FormatsThe report is available in both printed and electronic formats. Theelectronic version can be downloaded at our official website (https://www.hxb.com.cn).
Contact InformationHuaxia Bank Co., LimitedAddress:No. 22 Jianguomennei Street, Dongcheng District, BeijingPostal code: 100005Tel: 010-85237648Fax: 010-85239000E-mail: zhshzr@hxb.com.cn
Environmental Pursuing Green Development toBuild a Beautiful China
Responding To Changes In Climate Risk
Protecting Biodiversity
Promoting Green Operations
Developing Green FinanceSpotlight
116Spotlight Safeguarding Cybersecurity and Information Security, andEnhancing Personal Privacy Protection
Optimizing Corporate Governance
Enhancing Enterprise Risk Management
Ensuring Compliance
Governance Strengthening CSR Governance toConsolidate the Foundation of Development
Appendix: CSR Performance120Independent Assurance ReportGRI Content Index
Feedback Form128
CONTENTS
Development Committed to Serving the Nation throughFinance and Writing a New Chapter in Financial Service
Social Staying True to the Original Aspirationto Write a Splendid Chapter in the New Era
Spotlight Leading Digital Transformation with Industry-Specific DigitalFinance
Serving the Capital’s High-Quality Development
Spotlight Accelerating the Digital Transformation of Retail Business
Supporting the Real Economy
Promoting High-Standard Opening Up
Promoting Inclusive Finance
Contributing to Regional Development
Spotlight Strengthening Consumer Rights and Interest Protection
Improving the People’s Well-being
Engaging in Social Welfare
Improving Customer Service
Deepening the Care for Employees
Development Committed to Serving the Nation throughFinance and Writing a New Chapter in Financial Service
22Social Staying True to the Original Aspiration
to Write a Splendid Chapter in the New Era
Environmental Pursuing Green Development toBuild a Beautiful China
Governance Strengthening CSR Governance toConsolidate the Foundation of Development
Message from the Chairman04About Us06Strategic Management10CSR Management18CSR Practices
CSR Practices
Message from the Chairman
The year 2023 proved to be pivotal for China to make a good start in building a modernsocialist country in all respects, and witnessed HuaXia Bank’s endeavor to write a newchapter of nancial work in the new era. The call of the Central Financial Work Conferenceto "accelerate eorts in constructing a robust nancial system" indicated that the nancialsector had entered a new stage with focus on quality and eciency enhancement in thepursuit of high-quality development. Ensuring sound nancial work on this new journey andin the new era is a glorious mission and a historic responsibility. As a national joint-stockcommercial bank and "a bank based in Beijing", Huaxia Bank has remained dedicated toour strategic goal of transforming into a modern nancial group that is "large and strongwith stable and excellent performance" at an earlier date. Guided by the Party building, wehave deeply integrated political consciousness and a people centered philosophy into ournancial work as we do our part to advance the high-quality development of nance.
We are committed to leveraging nance to serve the countryand foster robust economic growth.
We are dedicated to promoting green development andadvancing the Beautiful China Initiative.We remain true to our original aspirations and founding mission,dedicated to fullling the people’s aspirations for a better life.
We endeavor to reinforce responsible governance to fortifythe foundation of growth.Serving the real economy is the fundamental purpose of nance and whatit builds on. Last year, we focused on supporting the transformation andupgrading of traditional industries, and fostering the growth of strategicemerging industries. We optimized resource allocation, refined creditpolicies, and introduced a range of innovative nancial products. Aimedto serve China’s regional development strategies, we have integrated intothe mainstream of regional economies, striving to spearhead regionaldevelopment initiatives. We unmistakably outlined and consistentlyexecuted the differentiated regional development strategy of "ThreeRegions, Two Lines, Multiple Outlets," with a particular emphasis onthe Beijing-Tianjin-Hebei region, the Yangtze River Delta, and theGuangdong-Hong Kong-Macao Greater Bay Area. Upholding the political,people-centered, and professional ethos of financial work, we activelyaligned with the national rural revitalization strategy and proactivelyintegrated into China’s opening-up agenda. We diligently advanced thedevelopment of technology finance, green finance, inclusive finance,digital finance, and pension finance. Furthermore, we expedited theinnovation-driven development of our industry-specific digital financebusiness, striving to break new ground of nancial work.
Green development is not only the inevitable choice for financial enterprises,but also the key to their competitiveness. Over the past year, we have workeddiligently towards China’s 30?60 Decarbonization Goals, and seized the nancialopportunities arising from the national drive of ecological conservation. Weprioritized green nance in our strategic plan and devised a special action plan todrive green and low-carbon development. In response to the challenges posed byclimate change, we established a management framework and bolstered climaterisk management. Furthermore, we introduced innovative nancial products andservices, enhanced the long-term mechanism for green credit, investment, andfinancing, and further improved our ESG investment and financing strategies.We persisted in advancing carbon finance by introducing innovative productssuch as carbon emissions rights mortgage and pledge nancing, while bolsteringour support for pivotal green projects. Concurrently, we actively promoted greenoperations and collaboration with international organizations, built up the visibilityof our "Green Growth for a Better China" initiative, and did our best to build greennance as a new characteristic.
Through social empowerment, finance will not only serve the people’sneeds, but also elevate its values. Last year, we continued to be people-centered and strengthened services in key areas such as pension nanceand boosting consumption. We established a framework for protectingconsumer rights, with top executives setting examples, managementtaking proactive measures, and full participation from all sta, to betterserve the people in their pursuit of a better life. Staying oriented towardscustomer needs, we built a customer service ecosystem, resulting inan upgraded service model and improved service capabilities. Puttingpeople rst, we grounded eorts in this new stage of development, tooksolid steps to build a multi-tier workforce, and provided platforms to tapemployees’ potential. At the same time, we actively supported publicwelfare initiatives, participating in disaster relief eorts and providingassistance to those in need. Through collaboration with customers,employees, and the wider community, we strive to create a better futuretogether.
Financial security serves not only as a stabilizer but also as a lifeline. Lastyear, we continued to enhance corporate governance mechanisms byimproving the internal control management system and promoting digitaland intelligent compliance management at a faster pace. Meanwhile,we fortified the management foundations of anti-money laundering,employee management, and case prevention and control, to eectivelyprevent and mitigate financial risks. We continued to strengthen riskmanagement by comprehensively upgrading the risk management systemwith the risk appetite at the core, building a sound security protectionsystem, and coordinating efforts to control conventional risks andrespond to unconventional risks, while ensuring eective risk preventionand control in key areas. Moreover, we continued to enhance networksecurity and data security governance, and improved our capabilities inprotecting personal information and data security, thus establishing asolid foundation for secure development.As an ancient Chinese scholar once observed, "Only with deep roots can a tree yield rich fruit; only lled with oil can a lamp burnbrightly." The high-quality development of nance is crucial to the Chinese modernization. We will uphold the fundamental principlesof finance, fully and faithfully apply the new development philosophy on all fronts, and steadfastly pursue the path of financialdevelopment with Chinese characteristics. We work to ensure the sound development of technology nance, green nance, inclusivenance, digital nance, and pension nance. Concurrently, we will further enhance our ESG governance capabilities, serving the realeconomy with high quality nancial services, and endeavor to do our part to build China into a global leader in nance.
Party Secretary and Chairman of
Huaxia Bank: Li Minji
0405
Message from the Chairman
Company Prole
About Us
With the support of Deng Xiaoping, the chief architect of China’s reformand opening-up, Huaxia Bank Co., Limited was established in October1992 in Beijing, where its headquarters is situated. Huaxia Bankis a nationwide commercial bank and was founded as a fully ownedsubsidiary of Shougang Corporation (now rebranded as Shougang GroupCo., Ltd.). It stands as the only joint-stock commercial bank initiated andestablished by a manufacturing company in China. In April 1996, HuaxiaBank completed the joint-stock transition. On September 12, 2003, theBank was ocially listed on the Shanghai Stock Exchange (stock code:
600015), with a registered capital of RMB 15.915 billion, solidifying itsposition as the fth listed bank in China.Since 2017, Huaxia Bank has diligently implemented the decisions,plans, and regulatory requirements outlined by the Central Committeeof the Communist Party of China (CPC), the State Council, and theBeijing Municipal Committee of the CPC and Municipal Government. Asa nationwide joint-stock commercial bank and "a bank based in Beijing,"the bank has maintained its dual position. Despite navigating a complexand challenging operating environment and facing various obstacles,the bank has shown consistent progress with stability in its operationalperformance. Both the asset scale and operational efficiency haveseen steady growth, accompanied by continuous enhancement in assetquality. The bank has optimized its asset-liability structure and profit
framework, resulting in a consistent strengthening of its customer base.The sustained release of reform vigor, along with intensified efforts intransformation and innovation, has led to a continuous enhancement ofcapital resilience, with key indicators reaching historically high levels.As of the end of 2023, Huaxia Bank's total assets amounted to RMB
4.254766 trillion, achieving a net prot attributable to the shareholders
of listed companies totaling RMB 26.363 billion. The Bank operates anetwork of 982 business outlets, establishing 44 Tier-1 branches and 78Tier-2 branches in 120 cities at or above the prefectural level nationwide.Furthermore, strategically developing an institutional framework, thebank has established its presence in developed cities while extending itsreach across the entire country. Notably, the bank has opened a branchin Hong Kong and acquired controlling stakes in one financial leasingcompany, one wealth management company, and two rural banks,earning recognition as a systemically important bank.In the global ranking of the top 1,000 banks by The Banker, published inJuly 2023, Huaxia Bank secured the 46th position globally in terms ofTier 1 capital, maintaining its position among the top 50 global banks fortwo consecutive years.
An Overview of 2023 in Data
Total depositsRMB
2.129945
trillion
Total workforce
Green credit balanceRMB
269.273
billionBalance of loans for micro and smallenterprises (MSEs)
Volunteer activities organizedTotal public welfare donations
Total loansRMB
2.309583
trillion
Total assetAt the end of 2023
Net protRMB
26.363
billion2023
In 2023
At the end of 2023At the end of 2023
40,293RMB
4.254766
trillionRMB
584.973
billion
1,658
RMB
70.5793
million
0607
About Us
Honors and Awards for 2023
China Association for Public CompaniesBest Practices of Board of Directors’ Oce AwardExemplary Rural Vitalization Case and Best RuralVitalization Practice Case among Listed Companies
Financial Technology Service Committee of the Shanghai
Modern Service Industry Federation2023 Financial Technology Experience Service Award of
the "Golden Wing Award"
Retail Banking
The Best Digital Marketing Award at the "6th RetailBanking Innovation Practice Awards" and the "BestProvincial Bank Customer Group Management Service
Award" presented to six branches
Securities DailyExemplary Case of Digital Economic Development
National Business DailyAnnual Inclusive Finance Award at the 14th "Golden
Tripod Awards"Beijing DailyOne of the "Top 10 Financial Brands for Public Welfare2023," Outstanding Contribution Award for TechnologicalFinance in the "Financial Brands for Public Welfare 2023"
The Economic Observer
The 12th Outstanding Financial Enterprise —Annual Outstanding Bank in Digital Construction
Sina
Annual ESG Innovative Bank
Hexun
Leading Bank in Digital Transformation in 2023 of
the 21st Financial List
JRJ
Outstanding ESG Case of the 2023 JRJ "Golden
Wisdom Award"
Jiemian News
Joint-stock Commercial Bank of the Yearat the 2023 Excellent Financial Award—
Outstanding Institutional Awards
cebnet.com.cn
"Glory Award" and Silver Award for Smart Platform · DigitalEmpowerment at 2023 Digital Finance Innovation Competition
International Data Corporation (IDC)2023 IDC Fintech Application Scenario Innovation Award10000link.com and Fudan University’s International Supply
Chain Finance Research Center2023 Tianxin Award for Leading Institution in Industry-
Finance Integration Innovation
PYSTANDARDThe Outstanding Wealth Management Bank, OutstandingPrivate Banking, and Outstanding Wealth Service CapabilityBank Awards at the "3rd Golden Reputation Awards"
China Banking and Insurance MediaTop 20 Comprehensive ESG Performance of Banks ExemplaryGreen Finance Case in Banking ESG for 2023 OutstandingConsumer Rights Protection Case in the Compilation of ServiceInnovation Cases in the Chinese Banking and Insurance Industry
China Financial Publishing HouseInclusive Finance Annual Case Award in the "6th China Financial
Annual Brand Case Competition" Award for Annual Integrated
Marketing CaseBloomberg Green, Bloomberg Businessweek/Chinese Edition
2023 Bloomberg Green ESG 50Trade nance magazine, sinotf. com, and tfsino.comBest Trade Finance Bank Award in the 2023 "Gold
Trade Awards"
Financial ComputerizingBest Organization Award in the First "FintechCompetition – Explanation Contest", and InnovationAward for Industry-specic Digital Finance Developmentat 14th Financial Technology Innovation Awards, withthe Bank’s case selected as one of the "Top 10 Financial
Informatization Events in 2023"
China UnionPayUnied Customer Service Award and OperationalExcellence in Customer Service AwardChina Association for Science and TechnologyExcellent case for 2022 "Innovation China"Fintech Innovation Application CompetitionChina Foreign Exchange Trade System"Annual Market Inuence Institution" and "MarketInnovation Business Institution" for 2023 domestic
currency marketChina Electronics Chamber of CommerceTop 10 Outstanding Call Centers 2023: Award forExcellence in Customer ExperienceCustomer Contact Center Branch of the China Information
Industry AssociationBest Learning Organization
China Financial Certication Authority (CFCA)"2023 Digital Finance Gold Award", Award for MostTrusted Mobile Banking by Customers, Best Innovation
Award in Corporate Digital FinanceAsia Pacic Banks Alliance2023 Inclusive Finance Award of the "Hua Ying Award"
National IDC Industrial Technological Innovation Strategic
Alliance (NIISA)The First Prize for Information Technology Platform, TheSecond Prize for Information Infrastructure Platform andData Center, and the Innovation Award for InformationInfrastructure Platform and Data Center in "2022Technological Innovation Projects"
Shanghai Stock ExchangeExcellent bond investment institution for the year 2022and grade A (excellent) in the evaluation of information
disclosure initiatives
The Central Committee of the Communist Youth League of China
(CYLC)National May Fourth Red Flag Youth League Branch
National Youth Civilization UnitNational Outstanding Communist Youth League Cadres
All-China Women’s FederationOutstanding Women’s Group in China
Beijing Oce of the National Financial Regulatory AdministrationOutstanding Case in the Education and Awareness MonthCampaign on Consumer Rights ProtectionState-owned Assets Supervision and Administration Commissionof People’s Government of Beijing MunicipalityThe "Good" rating in the assessment of contributions torural vitalization among enterprises administered by the
municipal government
Publicity Department of the Beijing Municipal Committee ofthe CPC (Beijing Municipal Bureau of Copyright) and the World
Intellectual Property Organization (WIPO) Oce in China
2022 Beijing Copyright Protection Demonstration Unit
(Software Genuine Licensing)
Beijing Municipal Finance Bureau
2022 Beijing “Outstanding Unit” for nancial statements
work in nancial sector
China Banking Association
2023 Good News Award for the Banking Industry—
"Fintech", Selected as one of the Exemplary Cases of
Inclusive Finance in China (2023)
National Financial Technology Certication Center (Beijing)Annual Security Management Demonstration Unit for
Mobile Financial ClientsZhongguancun Digital Economic Industry Alliance
one of the “Top Ten Cases of National Corporate Digital
Transformation in 2023”
0809
About Us
The Central Financial Work Conference held at the end of October 2023 was a very important conference convened during the critical period when Chinajust hit the road to build a modern socialist country in all respects. With a grand strategic vision and profound historical insight, the important speechmade by General Secretary Xi Jinping answered a series of major theoretical and practical questions concerning nancial development in a scienticmanner, and provided a fundamental guideline and action guide for the Bank to do a good job in the nancial sector.
Building China into a nancial powerhouse: the key is to grasp the essentials ofthe path of nancial development with Chinese characteristics
For the rst time, the goal of "accelerating building China into a nancial powerhouse" was put forward at the Central Financial Work Conference, which elevatednancial work to a higher strategic level. It is a systematic plan made by the Party Central Committee with Comrade Xi Jinping as the core, from the perspective ofadvancing the cause of the Party and the country, in pursuit of a strategy of national rejuvenation amid global changes of a magnitude not seen in a century, and basedon the trend of the times, the expectations of the people and the development needs. It also sets the direction for doing nancial work well.
For the rst time, "eight commitments" were made at the Central Financial Work Conference to systematically elaborate on the essential featuresand key points of the path of nancial development with Chinese characteristics, making it more clear how to look at and carry out nancial work.It demonstrates that the Party has reached a new height in understanding the nature and the development law of nance. It also provides scienticguidance for nancial work to better follow the trend of the times, conform to the law of development and reect people’s aspirations.The Bank has deeply grasped the essentials of the "eight commitments", and effectively heightened our political awareness and sense ofresponsibility to do a good nancial work in the new era:
"Eight commitments"Following the centralized and unified leadership of the CPC Central Committee over financialwork the guarantee for good nancial performanceEmbracing a people-centered value orientation the basic position for good nancial performanceUpholding serving the real economy as the fundamental mission of the nancial sector the basicrequirement for good nancial performanceViewing risk prevention and control as the eternal theme of nancial work the fundamental task ofgood nancial performancePromoting nancial innovation through market-oriented and law-based approach the importantdirection for good nancial performanceDeepening nancial supply-side structural reform the important lever for good nancial performanceCoordinating nancial opening up and security the important path for good nancial performanceFollowing the general principle of pursuing progress while ensuring stability the vital principle for
good nancial performance
Studying and Implementing the Guiding Principles ofthe Central Financial Work Conference
Strategic Management
Building a stronger China and advancing national rejuvenation are the unanimous consensus of the Party, the country and the people. Finance is the lifeblood ofthe national economy. When nance is alive, the economy is alive. Throughout the history of the world, a powerful country cannot rise without the strong supportof nancial sectors. Only by becoming a nancial powerhouse can a country become an economic powerhouse; an economic powerhouse is certainly a nancialpowerhouse. Since the 18th CPC National Congress, China has achieved an overall improvement in its comprehensive strength and become the world’s second largesteconomy. On the new journey, accelerating building China into a nancial powerhouse and realizing the historic transformation from a nancial power to a nancialsuperpower are integral to promoting Chinese modernization and becoming an economic power.
Accelerating building China into a nancial powerhouse — a must for building China into a great modern socialist country in all respects andadvancing the rejuvenation of the Chinese nation on all fronts through Chinese modernization
It was put forward at the 20th CPC National Congress that high-quality development was the top priority in building a modern socialist country in all respects, andpromoting new development pattern was the strategic move. Finance, as the core of the modern economy and the hub of resource allocation, plays a key role infacilitating capital ows, optimizing capital allocation and strengthening risk resistance. It is also an important force in promoting economic development, scienticand technological innovation, and improving the well-being of the people. On the new journey, China is going to accelerate building China into a nancial powerhouseby strengthening the guidance over nance and funds, upgrading the nancial service model and providing better nancial services, which are conducive to betterleveraging China’s enormous market and the agglomeration eect, as well as the interplay between domestic and international markets and resources, so as to furtherenhance China’s viability, competitiveness, development and sustainability.
Accelerating building China into a nancial powerhouse — a must for forming a new development pattern and promotinghigh-quality economic and social development
At present, the world has entered a new period of turbulence and change. Our world, our times and the history are changing in a more evident way. Finance is acrucial component of a country’s core competitiveness, and also a key tool of national governance and international competition for modern countries. Looking aroundthe world, some developed economies, especially nancial powerhouses, have become the center of global economic resource allocation by virtue of their deeplyinternationalized sovereign currencies, their well-developed nancial markets and their highly competitive nancial institution systems. On the new journey, Chinais going to accelerate building China into a nancial powerhouse by speeding up the development of a modern nancial system with Chinese characteristics, and bygetting the global resource allocation capacity and capability matching China’s comprehensive national strength and international status, which are urgent to copewith the great changes that have not been seen in a century and to take the initiative of development when the international landscape is reshaping.
Accelerating building China into a nancial powerhouse — a must for enhancing China’s international inuence and competitiveness
Deeply understanding the signicance of accelerating building China intoa nancial powerhouse on the new journey in the new era
1011
Strategic Management
The key to pursuing the path of nancial development with Chinesecharacteristics lies in promoting high-quality nancial development
The Central Financial Work Conference has emphasized the importance of advancing high-quality financial development and has set the theme forfinancial work in the new era. We have thoroughly studied and implemented the guiding principles of the conference, accurately grasping the newsituations and tasks associated with high-quality nancial development. We endeavor to live up to the "eight commitments". Concurrently, we have madesignicant progress in drafting the "Five Major Articles," demonstrating our commitment to advancing nancial services in support of technologicaldevelopment, green finance, inclusive finance, digital finance, and financial services for the elderly. Through this approach, we have synchronizeddevelopment and security, leading to new advancements and results in our pursuit of high-quality development.
Promoting economic and social development in leaps through premium servicesBearing in mind the country’s most fundamental interests —Delivering top-notch services to support vital national regionalstrategies. Persistently implementing national strategies, we capitalizeon our status as a nationwide joint-stock commercial bank and thegeographical advantage of our headquarters in Beijing. For instance, weintegrate serving regional development strategies, such as the coordinateddevelopment of the Beijing-Tianjin-Hebei region, into our overarchingstrategic priorities. We clearly articulate and consistently implementthe dierentiated regional development strategy of "Three Regions, TwoLines, Multiple Outlets," prioritizing the Beijing-Tianjin-Hebei region, theYangtze River Delta, and the Guangdong-Hong Kong-Macao Greater BayArea. Through our eorts, we establish a new paradigm characterized bymutual promotion, complementary advantages, and orderly development.Guided by the overarching national regional development strategy, weactively integrate into the mainstream of regional economies, aspiringto play a pivotal role. We endeavor to build a new pattern of coordinateddevelopment, utilizing branches in the three major regions (Beijing-Tianjin-Hebei, Yangtze River Delta, and the Guangdong-Hong Kong-Macao GreaterBay Area) as anchors and a collaborative structure supported by "twolines and multiple outlets." This initiative aims to amplify developmentopportunities and elevate the quality of growth.
Bearing in mind the mission of serving real economy — Achievingoutstanding outcomes in promoting economic and socialdevelopment. The introduction of the "Five Major Articles" has broughtabout new requirements for the transformation and innovation-drivendevelopment of commercial banks. Consequently, We have consistentlypromoted the execution of the four major transformation strategies coveringdigitization, corporate nance, retail nance, and nancial market business.Our focus has been on deepening financial supply-side structural reformto deliver high-quality services aimed at fostering economic and socialdevelopment. In line with this, we are deepening our FinTech developmentstrategy to cultivate enterprise-level digital capabilities. Additionally, we areincreasing nancial support in the technology sector, rening our workingmechanisms, and allocating additional resources to facilitate a virtuous cycleof technology, industry, and nance. Simultaneously, we are executing theretail nance development strategy while supporting the development of theelderly care industry through an industry chain perspective. In the inclusivenance sector, we are steadfastly implementing policies related to servingmicro and small enterprises. Furthermore, we are driving the transformationof nancial market business to comprehensively enhance our capabilities inserving interbank customers. Moreover, we are intensifying our green nancestrategy to amplify the inuence of our green nance brands.
Promoting market-oriented reform to bolster our competitiveness
Enhancing the development of the capital managementsystem to further strengthen capital resilience.We pursuea well-balanced strategy of internal accumulation and externalreplenishment of capital. Leveraging the implementation of newregulatory measures, we have enhanced our capital managementsystem. Additionally, we have strengthened capital planning,allocation, and performance management to leverage the guidinginfluence of capital in business development. We have deepenedstructural adjustments and intensied eorts to promote ecientcapital operations, aiming to enhance the level of capital returns.Actively pursuing various capital supplementation initiatives,we have explored the application of innovative tools for capitalreplenishment.
Deepening system and mechanism reforms to accelerate the progressof market-oriented practices. Driven by the strategic objective of evolvinginto a modern nancial group that is "large and strong with stable and excellentperformance," we have embraced a market-oriented approach, and executed thestrategic plan in which "branches undergo revolutionary changes under the HeadOffice’s unified leadership." We have systematically advanced reforms in sevenmajor mechanisms, covering incentive constraints, comprehensive operations,comprehensive risk management, and marketing management. These eorts haveunleashed creative potential across the Bank. Next, we will intensify eorts to renesystems and mechanisms aligned with high-quality development, enhanced thestrategic management system, and made organizational structure adjustments. Weupgraded the business strategy system, reshaped the value management system,and optimized incentive constraints, thereby driving transformative practices andachieving operational eciency breakthroughs.
Fully infusing political consciousness and a people-centered philosophy into our nancial operationsRemaining politically conscious — Upholding and strengthening thecentralized, unified leadership of the CPC Central Committee. Wecontinuously deepen our understanding and application of General Secretary XiJinping’s important statements and instructions on financial work, effectively executingthe unified directives of the Central Financial Commission and the decisions onParty building by the Central Financial Work Commission. We have enhanced ourconsciousness of the need to maintain political integrity, think in big-picture terms,follow the leadership core, and keep in alignment with the central Party leadership;stayed confident in the path, theory, system, and culture of socialism with Chinesecharacteristics; upheld Comrade Xi Jinping’s core position on the Party CentralCommittee and in the Party as a whole and upheld the Central Committee’s authorityand its centralized, unified leadership. We have continued to improve our capacityfor political judgment, thinking, and implementation, concurrently advancing theexecution of decisions and plans made by the CPC Central Committee at the Bank.Simultaneously, we have steadfastly embraced the core principle that "Huaxia Bankis unwaveringly loyal to the CPC," fostering development through Party building andmaking significant strides in exercising full and rigorous Party self-governance. Ourefforts include the establishment of a framework encompassing "three systems, twointegrations, and one guarantee" to ensure full and rigorous Party self-governance.
Upholding the people-centered philosophy — Enhancing oureorts to meet the people’s aspirations for a better life.Focused onimproving well-being and fostering common prosperity, we aim to become abank renowned for providing attentive services and earning people's trust.We have actively expanded our services in consumer finance, elderly carenance, and nancial services for MSEs. Simultaneously, we have consistentlyimproved the accessibility, convenience, and inclusiveness of our financialservices. Embracing the philosophy of oering nancial services that meetpeople's needs, we have solidied our identity as "a nancial service providerfor small and medium-sized enterprises (SMEs)." We not only actively supportthe growth of private enterprises, including micro-, small-, and medium-sized enterprises (MSMEs), but also introduce innovative nancial productsand services tailored to benefit agriculture, rural areas, and farmers. Ourcommitment extends to supporting crucial sectors like food security, ruralindustries, and rural infrastructure. Furthermore, we have strengthenedcomprehensive financial services aimed at enhancing people’s livelihoods.Focused on key areas such as employment, education, healthcare, housing,elderly care, and childcare, we offer end-to-end and one-stop financialservices.
The convening of the Central Financial Work Conference marks the beginning of a new chapter in the development of thenancial sector in the new era. With heightened political awareness, ideological consciousness, and proactive commitment,the Bank has a thorough study on the essence of the important speech delivered by the General Secretary Xi Jinping,and is resolute in understanding the imperative of steadfastly pursuing the path of financial development with Chinesecharacteristics through practical actions. Acknowledging the political and people-centric essence of nancial work, we aspireto forge a new paradigm of high-quality development in this new era, so as to make due contributions to the building of astrong country and the national rejuvenation.
Ensuring that no systemic nancial risks arise
Embracing a risk-centric approach Continuouslystrengthening the foundation of prudent operations. Wewill better coordinate the management over traditional risks andnew emerging risks to better defuse outstanding risks and forestallemerging risks simultaneously. We will also improve forward-lookingassessments and bolster control over asset quality. Concurrently,we ne-tune our comprehensive risk management system, expeditethe digital transformation of risk control, and ensure risk preventionin key areas, thereby establishing a robust defense line for securedevelopment.
Prioritizing compliance — Continuously enhancing operational andmanagerial compliance.Steadfastly implementing regulatory requirementsand upholding the philosophy of compliance operation, we consistently rene ourgovernance structure, fortify the internal control management system, and expeditethe digital and intelligent transformation of our compliance management. We alsosolidify the foundation of compliance management in areas such as anti-moneylaundering, employee management, and case prevention. Furthermore, we bolstercomprehensive and all-encompassing compliance capability-building initiatives thatengage all sta and span all processes. Through these initiatives, our objective is tocomprehensively elevate the prociency of our compliance operations.
1213
Strategic Management
Upholding Party LeadershipThe Bank has steadfastly followed the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughly studied, andimplemented the guiding principles of the 20th CPC National Congress. We have prioritized enhancing the Party politically as the guiding principle,thoroughly implementing the overall requirements for Party building in the new era, and the Party’s organizational line for the new era. Simultaneously,we have resolutely exercised full and rigorous self-governance and conducted themed education on studying and implementing Xi Jinping Thought onSocialism with Chinese Characteristics for a New Era. These initiatives have provided robust support for the high-quality development of the Bank.
In 2023
Editions of column articles centering around education onimproving Party conduct and upholding integrity
Training sessions onghting corruption
Participants involvedWeChat posts with thesame theme
The Bank holds the 2023 work conference on full and rigorous discipline over the Party (Party building)
We have consistently prioritized political awareness as our foremost objective. Wehave thoroughly studied and implemented the guiding principles of the 20th CPCNational Congress, continuously equipping ourselves with theory. We have diligentlystudied Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era,along with the important speeches and instructions made by the General SecretaryXi Jinping. We have provided unwavering support for the pivotal decision to establishComrade Xi Jinping’s core position within the Party Central Committee and theParty as a whole, as well as to establish the guiding role of Xi Jinping Thought onSocialism with Chinese Characteristics for a New Era. Moreover, we have taken theinitiative to heighten our consciousness of the importance of maintaining politicalintegrity, adopting a broad perspective, adhering to the leadership core, and aligningwith the central Party leadership. Our condence in the path, theory, system, andculture of socialism with Chinese characteristics remains steadfast. We stand rmin upholding Comrade Xi Jinping’s core position within the Party Central Committeeand the Party as a whole, and in supporting the authority of the Central Committeeand its centralized, unied leadership.
The Bank holds a Party lecture to report what we have learned from themededucation on studying and implementing Xi Jinping Thought on Socialism withChinese Characteristics for a New Era, and Li Minji, the Party Secretary andChairman of the Bank, delivers speech at the report meeting.
Through various means such as reading groups, focused studies, specializedseminars, and Party lectures, we have actively engaged in the comprehensivestudy of Xi Jinping Thought on Socialism with Chinese Characteristics for a NewEra. Additionally, we have facilitated extensive research and fact-nding endeavors.Specically, we have conducted 66 in-depth investigations at the grassroots level,addressed 71 issues, and achieved 66 tangible outcomes. All tasks outlined in therectication and people’s livelihood project lists have been successfully completedaccording to schedule. Moreover, we have efficiently coordinated meetingsconvened by the Party Committee and regular activities of Party organizationsfocusing on specic topics, thereby fostering more principled and earnest intrapartypolitical engagements.
The Bank selected and dispatched comrades to the villages (ShudiVillage, Xinwangzhuang Village, and Qingdian Village) underXitiangezhuang Town, Miyun District, Beijing, to serve as the "FirstSecretaries". During their stay in the villages, the "First Secretaries"carefully studied policies, gained an in-depth understanding of villageconditions and public opinion, and carefully sorted out their resourceendowments. By doing so, they made sustained eorts in building andimproving village Party organizations, developing villages and enrichingthe people, reinforcing the governance and serving the people. Theyfocused on resolving the pressing diculties and problems that peopleconcerned about most, so as to continuously increase people’s sense ofgain, well-being and security.
The Bank selected and dispatched personnel to join in the "DoctoralService Group" organized by the Organization Department of the CPCCentral Committee and the Communist Youth League, to take thelead in studying and implementing the policies, major platforms andprojects related to the national economic and nancial innovation pilotprograms, so as to help build the Chengdu-Chongqing economic circleand the new land-sea transit routes for the western region. The Bankalso selected and dispatched personnel to join in the "Talents Sent toBeijing Suburbs" program, sending them to the Finance Service Oceof Beijing Changping District for one-year special service to support thedevelopment of the "two zones" (the National Integrated DemonstrationZone for Greater Openness in the Service Sector and the Beijing PilotFree Trade Zone) and the "three platforms" (the China International Fairfor Trade in Services, the ZGC Forum, and the Financial Street Forum).
Strengthening Political AwarenessConducting high-quality themed education
We have intensified efforts to implement the "1+1+N" system for ideological andpublicity work by diligently putting into action mechanisms related to consultationand research, situation reporting, risk prevention and control, management andhandling, supervision, and assessment, so as to establish our dominance in theprimary arena of ideological work. Advancing initiatives aimed at nurturing a civilizedsociety and selecting role models, we achieved notable results in 2023. One unit wasrecognized as a "Distinguished National Women’s Collective," another maintainedits prestigious title as a "National Civilized Unit," while four units continued to berecognized as models for civilized units and civilized units in the capital. Additionally,one individual was honored as an outstanding contributor to ethnic unity and progressin the capital.
Rigorously implementing the accountabilitysystem for ideological work
In our commitment to ensuring full and rigorous Party self-governance,we have fulfilled our primary responsibility by implementing detailedtask arrangements and responsibility lists at all levels. We have strictlyadhered to the central Party leadership's eight-point decision onconduct and the regulations for its implementation, issuing measuresto implement these directives and rectify pointless formalities,bureaucratism, hedonism, and extravagance. Moreover, we haveconsistently promoted a culture of honesty and integrity in finance,bolstered daily integrity education, and intensied supervision checks.We have regularly convened warning education conferences tofacilitate corrections through practical case studies. In 2023, we tooka comprehensive initiative for inspection and rectification and yieldedsignificant and effective outcomes. Furthermore, from the Bank'sleadership team to grassroots units, we have successfully ensuredcomprehensive learning and application of the experiences gained fromthe "Green Rural Revival Program" and the "Pujiang experience." Toactively address challenges at the grassroots level, we have establishedan internal forum, "New World".
Increasing eorts to improve Party conductand uphold integrity
Cultivating ocials and talentsDispatching "First Secretary"
20313,50012
1415
Strategic Management
Strengthening Strategic ImplementationIn 2023, the Bank's Party Committee, with a focus on attaining high-quality development, made signicant progress in advancing the ve-yeardevelopment plan. We achieved comprehensive key indicators, and tentatively initiated a new phase characterized by strategic leadership, reform,innovation, and value creation. With half of the ve-year development period completed, the results of plan execution exceeded expectations,laying a good foundation for the plan's implementation in the second half.
Accelerating breakthroughs in digital transformation?The Bank rigorously controls critical aspectssuch as data standards, security, and quality.We have initiated key projects in digitaltechnology, accelerating the journey towardsestablishing a "Digital Huaxia."
?The Bank has made new progress inestablishing the industry-specific digitalfinance model. Additionally, we havegained momentum in developing the digitalecosystem, swiftly enhancing digital customerservice capabilities. Moreover, we havenurtured a digital talent pool.
?We have gained momentum in developing enterprise-level operational capabilities, which facilitates the gradualevolution of the integrated operational framework. Ourcontinuous improvement of technological service deliveryis complemented by ongoing reinforcement of systemsecurity operations, ensuring the safeguarding of bothnetwork and data security.
Gradually deepening the transformation of nancial market business?Our fund trading business has responded to market shifts by expanding the scale of both domestic and foreign currency investments and transactions. We have alsoexpedited the growth of our investment clientele and strengthened partnerships with counterparts.?We have provided more types of invoice nancing and rolled out the quick discounting service for commercial bills to boost credit utilization eciency and enhancethe overall customer experience.?The custodial business has seen overall growth. We have launched our rst publicly-traded REITs product, leading to rapid expansion in public fund custody.?Huaxia Wealth Management Co., Ltd. has expedited asset creation and product issuance while exploring fund allocation strategies for bank wealth management.Furthermore, we have maintained our leading position in ESG and experienced signicant growth in the external distribution scale.
Pressing ahead with the regional development strategy?We are dedicated to fullling our role as "a major nancial service provider for the Beijing-Tianjin-Hebei region." We have proactively provided support for the developmentof the "two wings" based on the local mainstream economy. In alignment with the nancial needs in infrastructure construction, industrial development, urban governance,business environment, and livelihood services in the Beijing-Tianjin-Hebei region, we have increased our nancial support for key enterprises and projects in the Beijing-Tianjin-Hebei region to enhance its coordinated development.?We have been proactive in driving the high-quality development of our branches in the Yangtze River Delta region. To achieve this, we have been graduallyenhancing the regional integration mechanism, pioneering a nancial service model customized for technological innovation in the Yangtze River Delta, andexpediting the retail nancing transformation and the establishment of a new framework for the branches in the area. Additionally, we have strengthened thefoundation for oshore business across all fronts to facilitate the development of branches in the Yangtze River Delta.?As we actively foster the rapid growth of our branches in the Guangdong-Hong Kong-Macao Greater Bay Area, we have consistently focused on four core areas:
retail nance, trade nance, nancial markets, and nancial technology. We have bolstered the infrastructure of nancial services and green nance, while alsoenhancing collaboration between domestic and international institutions. This eort has led to signicant progress in cross-border nancial development, reectingour commitment to sustainable growth in the region.
?Remaining true to our dual identity as a nationwide joint-stock commercial bank and "a bank based in Beijing," we have implemented specialized initiatives to contribute tothe economic development of Beijing and foster the coordinated development of the Beijing-Tianjin-Hebei region. We have deeply integrated our strategies with the "ve keyinitiatives" launched by Beijing to better fulll its role as the national capital. We have also taken active actions in building Beijing into the "four centers" (centers for politic,culture, international exchange and scientic innovation) and integrating into the new development pattern.?We have provided support for the development of the Beijing Municipal Administrative Center (BMC). For instance, we have established a branch and a wealthmanagement branch in the BMC successively, and initiated the construction of our new oce building. In 2023, we signed a comprehensive strategic cooperationagreement with the Tongzhou District People’s Government of Beijing Municipality to sponsor the BMC Green Development Forum.
Contributing to the high-quality development of the capital
Strengthening risk management?We have refined the quantitative transmissionmechanism for risk preference, optimized the creditinvestment and nancing policy system, and acceleratedthe digital transformation of risk control. Simultaneously,we have continued to cultivate a risk-aware culture.These eorts have led to the ongoing enhancement of ourcomprehensive risk management system.
?We have progressed in developing a tieredcredit granting strategy system andimplemented a consistent credit pre-approvalmechanism. These initiatives have led toenhancements in the eciency and quality ofthe approval process.
?We have hastened the construction of acentralized management mechanism for specialassets, and reinforced focused and specializedrisk management practices to highlight the valuecontribution of these assets.
Steadily advancing nancial transformation
Witnessing the gradually evident impacts of retail nancial transformation?We have launched the "Fast Win" initiative to assist retail customers in achieving operational innovation and breakthroughs. The annual growth of individual basicdeposits has been steadily increasing.?We have commenced the "Strong Foundation Project" which focused on optimizing the operational system for high-net-worth private clients to improve customerrelations. We have also established a vertical cross-selling mechanism for advisory service, which paved the way for a new era in wealth management and privatebanking services.?In line with current consumption trends, we have pursued ecosystem marketing tailored to high-frequency consumption scenarios, so as to create a comprehensiveconsumer experience that covers all aspects of customers' lives around the clock and in all scenarios.?Remaining true to our identity as a "nancial service provider for SMEs," we are committed to becoming the premier partner for the development of sophisticated and specializedSMEs. Through the launch of the "Sophisticated and Specialized Enterprise Program" (a program which outlines the expected number of sophisticated and specialized enterprisesin the Bank and the branches that are applicable to inclusive nancial services), our aim is to propel them onto the fast track of high-quality development.
?We have enhanced coordination across cross-sector business operations,implemented the "commercial banking + investment banking" collaborativeservice model further, and established coordination mechanisms with privateequity (PE) investment institutions. We implemented collaborative initiativesbetween "investment banking + private banking" at the Head Oce and corporateheadquarters levels, leading to a significant improvement in comprehensivefinancial service capabilities. The Bank has seen steady growth in corporatedeposits, showcasing an optimized deposit structure. Moreover, the number ofnancing, high-value, and ecosystem clients has rapidly increased, signaling animproved customer structure. We have maintained growth in our investmentbanking business and achieved breakthroughs in emerging business areas.?We have developed distinctive strengths in green finance, with the proportion of greenloans ranking among the forefront of comparable peers. We have achieved results in greenfinance with controllable risks, economic feasibility and social responsibility practices. Byemphasizing the "specialization of industry, products, and personnel," we have establisheda strong basis for developing specialized capabilities in green finance, especially in crucialareas related to carbon reduction and achieving carbon neutrality.
?The recently launched Huaxia Treasury Cloud has received positive feedbackfrom customers, experiencing a rapid increase in transaction volumes. It hassuccessively served important customers such as Huawei and ByteDance,and has received high praise from the People’s Bank of China, providingstrong support for branch marketing and serving group companies.?While reinforcing our presence among trade nance clients, we have activelycultivated new avenues for business growth. Our digital product pool, forfaiting,RMB letters of guarantee, and domestic factoring have all experienced growth.Additionally, we have proactively executed the RMB internationalization strategy.In 2023, the total amount of cross-border RMB receipts and payments exceededRMB 100 billion, representing a year-on-year growth of 29.15%.
1617
Strategic Management
CSR Management
As one of the initial signatories to the Principles for Responsible Banking issued by the United Nations Environment Programme and a strong supporterof the Task Force on Climate-related Financial Disclosures (TCFD), we uphold our brand philosophy of "Sustainability for a Better Future" under whichwe prioritize achieving sustainable operations to maximize our economic, environmental, and social values. Our CSR management architecture themanagement performance continues to improve. With outstanding CSR practices, we aim to realize the vision of "harmony brings a bright futureand Huaxia continues with its public spirit" while striving to develop into a modern nancial group that is large and strong with stable and excellentperformance.
Analysis of Substantial IssuesWe prioritize the interests of our stakeholders and continue to identify, assess, screen, and update related issues. We prioritize issues based on twodimensions: the importance of sustainable development to Huaxia Bank and the importance to stakeholders. Through this process, we identify substantiveissues that are important to both Huaxia Bank and its stakeholders.Matrix of substantial issues
Importance to stakeholders
Importance to the sustainable development of Huaxia Bank
Practicing green operationPromoting industry developmentDedicating to charityPromoting nancial knowledge
Pursuing FinTech innovationsDevoting more eorts to green nanceImproving service qualityAddressing climate change
Supporting community developmentProtecting customers' rights and interestsHelping employees grow
CSR Philosophy
The Bank pursuesharmonious co-existence,open cooperation,sharing of benets withstakeholders, and workstowards balance betweeneconomic, environmental andsocial benets, making itscontribution to a harmonioussocialist society
Harmony brings abright future
CSR goals
Openness and transparencyCross-over thinkingResource integrationStakeholder CommunicationServing the realeconomy
Practicinginclusive nance
Promotingecological progress
Pursuing safe andsteady development
Empoweringthrough FinTech
Puttingpeople rst
CSR principlesCSR priorities
Maximizingcomprehensive value
Achieve commonprosperity
Practices for economicresponsibility
Practices for environmentalresponsibility
Practices for socialresponsibilityCSR practices
Leveraging on its advantagesin specialty, location andresources, the Bank takesthe initiative to shouldereconomic, environmentaland social responsibilities,and strives to bring benetsto every corner of China andevery Chinese
Huaxia continues with
its public spirit
Vision of CSR fulllmenHarmony brings a bright future and Huaxia continues with its public spirit
China's culture is at the core of the Bank's development and prosperity, and the value created shall be shared by all people of the Chinese nation
SustainableIt is an action guide that incorporates the concept ofsustainability into business activities
WonderfulIt is the goal to realize people's aspirations for abetter life through nancial services to promote
common prosperity
Brand philosophy
Sustainable, Wonderful
Caring for employees
Standardizing corporate governanceGuarding against nancial risks
Promoting inclusive nanceContributing to rural vitalization
Contributing to national strategiesServing the real economy
1819
CSR Management
UN SDGsStakeholder Communication
StakeholderMain ResponseCore Expectations
Implementing regulatory policiesReceiving supervisionStrengthening risk preventionComplianceStrict risk management
Serving coordinated regional developmentSupporting China’s opening-upSupporting the growth of private micro- and small-sized enterprisesAdvancing rural vitalizationStudying and implementing the relevant nancial policiesProactively paying taxes in full
Serving the real economy Supportingnational strategyDeveloping inclusive nancePromoting inclusive nanceSupporting rural vitalizationPaying tax in full according to lawGovernment
Regulatoryauthorities
Improving corporate governanceEnsuring sustained and stable returnProtecting shareholders’ rights and interestsAchieving transparent operation
Improving corporate governanceRealizing stable operationCreating values for shareholdersAccurately information disclosureHolding shareholder meetingShareholdersand investors
Facilitating green developmentFocusing on climate change
Developing green nancePromoting green ocesParticipating in eco-friendly public activitiesEnvironment
Realizing Win-win cooperationContract fulllment with integrity
Strengthening exchanges and cooperationImproving procurement management to be open andtransparentPartners
Protecting employees’ rights and interestsEnsuring salaries and benetsImproving the working environmentMaking career development plans
Protecting the basic rights and interests of employeesFacilitating career development channelsProviding job skills trainingCarrying out diverse cultural and sports activitiesHolding employee congressesEmployees
Financial knowledge popularizationSupport for community developmentEngagement in public welfare undertakings
Publicizing nancial knowledgeOrganizing community service activitiesEncouraging employees to engage in voluntary activitiesParticipating in charitable activitiesCommunities
In September 2015, the United Nations Sustainable Development Summit adopted the 2030 Agenda for Sustainable Development. The agenda covers 17Sustainable Development Goals (SDGs), pointing out the direction for countries and enterprises globally to promote sustainable development. Focusing onthe vision of building a modern nancial group that is large and strong with stable and excellent performance, the Bank evaluates from two dimensionsof materiality and importance, distinguishes 9 core goals and 8 related goals, and devotes resources to core targets to realize sustainable developmentgoals.
7891112
2451014
| 1317Core goals | Related goals |
Safeguarding customer rightsAccelerating product innovationImproving customer experience
Strengthening the protection of consumer rightsEnhancing nancial innovationProviding high-quality and ecient servicesAdvancing digital transformationCustomers
2021
CSR Management
As of the end of 2023
In the opening year of comprehensively implementingthe guiding principles of the 20th CPC NationalCongress, the Bank adhered to the general principleof seeking progress while maintaining stability, solidlypromoting the high-quality implementation of theve-year development plan to open a new chapter.
The Bank actively implements national strategies, solidly working on the fivesectors, namely technology finance, green finance, inclusive finance, pensionnance, and digital nance. We adhere to the principle of serving the real economythrough nancial services, deliver high-quality services to support key national andregional strategies as well as high-standard opening-up. These eorts contribute toour integration into the new development pattern of the capital.
CSR Practices
DevelopmentCommitted to Serving the Nationthrough Finance and Writing a NewChapter in Financial Service
Balance of loans issued in the Beijing-Tianjin-Hebei region
RMB
560.832
billion
Balance of loans issued in the Yangtze River Delta
RMB
690.854
billion
Balance of loans for the Guangdong-Hong Kong-Macao Greater Bay AreaRMB
252.791
billion
Balance of loans for MSEsRMB
584.973
billionBalance of loans to manufacturing
RMB
234.265
billion
Balance of agriculture-related loansRMB
278.621
billion
Correspondent banks opened in BRI markets
Supporting the Real Economy
In accordance with the national and regulatory policies, and in alignment with the mission of serving the real economy andthe reality of our business, we have developed the Huaxia Bank Credit, Investment and Financing Policy for 2023. This policyincludes approval guidelines for specic sectors such as new energy vehicles, the 5G industry, photovoltaic manufacturing,pharmaceutical manufacturing, and construction machinery manufacturing. At the policy level, we have increased our focuson industrial transformation, upgrading, and strategic emerging industries, infusing nancial vitality into the development ofthe real economy.
Increasing resource allocation
?We align our strategies with national policy directives and capitalize on thePeople’s Bank of China’s re-lending policy targeting equipment upgradingand technological innovation. Our support extends to corporate clientsinvolved in product research and development and equipment upgrading,thereby facilitating their upgrading and transformation.?We provide internal fund transfer pricing discounts for loans in themanufacturing sector. Clients listed on the manufacturing white list,whether at the head oce or branch level, receive discounts of 30 basispoints and 20 basis points, respectively, on newly allocated manufacturingloans.
Bolstering the industrial and supply chains of manufacturing?The Bank is committed to fostering breakthroughs in core technologies in keyelds and the industrialization of critical technologies. This includes supporting theapplication of the rst set of major technical equipment, the initial application of keynew materials, and the production of critical components in China.?The Bank has enhanced its supply chain nancial services, with a particular focus onenterprises that are "leaders of the supply chain." We actively support the initiativesaimed at empowering these leading enterprises to play a pivotal role in ensuringthe stability and security of industrial and supply chains, fostering the integrationof the industrial and supply chains, and establishing national demonstrations forsupply chain innovation and application. This endeavor is geared towards supportingenterprises of all sizes across the upstream, midstream, and downstream segmentsof the industrial chain in fostering collaborative development. By leveragingapproaches such as "commercial banking + investment banking" and advancingnancial services for industry digitalization, the Bank is dedicated to serving theentire manufacturing ecosystem.
Strengthening policy guidelines
?The Bank is dedicated to facilitating the transformation and upgrading oftraditional manufacturing industries. In our credit, investment, and nancingpolicy for 2023, we explicitly arm our active support for the transformationand upgrading of traditional manufacturing. Priority has been given to initiativessuch as equipment renewal, technological transformation, optimization ofproduction capacity layout, industry mergers and reorganizations, and thetransformation toward low-carbon development. We have also outlined annualgrowth targets for manufacturing loans and medium- to long-term loans in themanufacturing sector.
Strengthening industry policy research
?Drawing from research on manufacturing-related industry policies,layouts, trends, and other factors, we have developed and issued approvalguidelines for specic sectors. These sectors include new energy vehicles,5G industries, photovoltaic manufacturing, pharmaceutical manufacturing,and construction machinery manufacturing. These guidelines are designedto guide operating units in providing specialized nancial services, withthe aim of enhancing our capacity and service quality to support thetransformation and upgrading eorts of clients within the manufacturingindustry.
Enhancing product innovation
?Through the strategic allocation of a wide range of products and services, including xed asset loans, acquisition loans, syndicated loans, bill pools, commercialacceptance bill subsidies, conrmed warehouses, factoring, accounts receivable pledging, guarantees, cash management, and nancial market solutions, we havemet the nancial needs of manufacturing enterprises. These services support various initiatives such as expanding production capacity, implementing technologicalupgrades and transformations, managing fund turnover, participating in project bidding, facilitating asset restructuring, and supporting group settlements.
Supporting expressway constructionSupporting the development of new forms of infrastructure
Kunming Branch has entered into a collaborative agreement with theZhaotong Municipal Government for a syndicated loan project associatedwith the DuXiang Expressway (Duyun-Shangri-La Expressway),providing credit support totaling RMB 200 million for the expressway'sconstruction. This partnership aims to accelerate the development oftransportation infrastructure in Yunnan Province.
Centered on the development of new forms of infrastructure,Nanchang Branch has extended credit support totaling RMB 3.648billion to a local municipal service company and its key subsidiary.CaseCase
Promoting the sustainable development of the localmining industry
Promoting technological improvement andupgrade in the metallurgical industryTaiyuan Branch provided financial support to a mining company inShanxi Province. It participated in a syndicated project loan aimedat transitioning the mining company's operation from open-pit tounderground mining. The entire loan process, from application toapproval, was expedited, taking only 4 weeks. The loan proceeds wereallocated towards technological upgrades
Nanjing Branch extended a loan of RMB 252 million to a steelmanufacturing company in Jiangsu under the "Carbon Emission SupportTools." This nancial assistance aims to back the company’s initiativein the "Energy Saving and Quality Enhancement Technical Renovationfor Electric Furnaces" project, which focuses on energy-savingtransformation and energy efficiency improvement of the industrialboiler (kiln) sector.
CaseCase
The Bank has innovatively utilized a range of nancial products, renedcredit policies, and optimized resource allocation to improve servicequality and efficiency. We offer comprehensive financial services tosupport enterprises in their pursuit of transformation and upgrading,with the goal of fostering the high-quality development of traditionalindustries.
At the end of 2023Balance of loans to manufacturing
Promoting the Transformation and Upgrading of Traditional Industries
RMB
234.265
billion
Development Committed to Serving the Nation throughFinance and Writing a New Chapter in Financial Service1423
2425
Satisfying the diverse nancial needs of an automotive manufacturing company
Hangzhou Branch has employed a comprehensive service solution to address the diverse nancial needs of an automotive manufacturing company throughoutvarious stages of its development. During the company's initial phases, the Bank facilitated the application for a RMB 300 million xed asset loan, earmarkedspecifically for constructing its production facilities. As the company expanded its production capacity, the Bank utilized financial instruments such as bankacceptance drafts and guarantees to fulll the company’s procurement requirements for items like batteries. Growing alongside the company and addressing itsnancing needs stemming from a broad upstream customer base, the Bank collaborated on the full-chain marketing of new energy passenger vehicles within theautomotive industry ecosystem. This collaboration resulted in the development of the downstream dealers’ "witness repurchase" 3.0 digital credit solution.
Case
With a focus on pivotal sectors like specialized and sophisticatedSMEs, Huaxia Bank has developed a dedicated assessment system andintensied nancial support for corporate clients in strategic emergingindustries. Furthermore, the Bank provides interest rate incentivesfor loans related to scientific and technological innovation, and hasconsistently improved the eectiveness of comprehensive "debt + equity"nancial services to address the evolving nancial needs of businesses atvarious stages of strategic development.
At the end of 2023Balance of loans to strategic emerging industries
?In the Credit, Investment AndFinancing Policy for 2023, the Bankexplicitly emphasizes boostingsupport for strategic emergingindustries, and calls for clearknowledge of the policy goals.
?The Bank has maximized the re-lendingpolicy from the People’s Bank ofChina, thereby increasing FTP pricingdiscounts for loans within the science andtechnology innovation sector.?The Bank has introduced a loan FTPpricing discount policy tailored forspecialized, high-end and innovation-driven SMEs. This policy applies a30bp and 20bp FTP pricing discountto newly disbursed loans for national“little giants”(top performers amongspecialized, high-end and innovation-driven SMEs) and provincial specialized,high-end and innovation-driven SMEs.?The Bank has developed option loanand investment-oriented loan products,delivering comprehensive "debt +equity" financial services to bothspecialized, high-end and innovation-driven SMEs and technology companies.
?We have integrated a dedicated assessmentmodule for tech companies into our non-retail internal evaluation system. Thismodule focuses on high-tech companies,strategic emerging industries, specialized,high-end and innovation-driven SMEs,and technology enterprises included inthe People’s Bank of China’s re-lendingprogram for technological innovation. Wemade specic adjustments to improve theratings for these entities and built thistechnology innovation assessment systemto bolster our support for technologyenterprises by addressing aspects such asnancing limits and costs.
Boosting theDevelopment ofStrategic EmergingIndustries
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Boosting the intelligent evolution of the semiconductor industry
Fostering advancements in the new materials industry
Focusing on major projects in advanced manufacturing within Shanghai, the Shanghai Branch, acting as the lead coordinating bank, has organized a syndicate toprovide a loan of RMB 2.1 billion for a semiconductor project. This funding is allocated for constructing a fully automated and intelligent production line for 300mmintegrated circuit silicon wafers in the ultra-pure silicon semiconductor sector. The initiative aims to bolster research and development and construct supportingfacilities for ultra-pure silicon production in Shanghai.
Changzhou Branch places signicant emphasis on the development of the new materials industry cluster, and has customized a specialized nancial servicepackage for a local new materials technology joint-stock company. The branch has provided a comprehensive credit facility, including working capital loans, bankacceptance drafts, and letters of credit, totaling RMB 125 million. Furthermore, the branch strategically allocated RMB 82.5 million of limited bank acceptancedrafts with zero margins, specically to support the production, research, and sales of high-performance ber multiaxial reinforcement materials. This proactiveapproach signicantly contributes to the advancement of the carbon ber industry.
Case
Case
Boosting high-quality development in the photovoltaic industryCase
Nanjing Branch expanded the scale of loans for strategic emerging industries,providing medium-to long-term green manufacturing loans of RMB 129million for a local photovoltaic technology limited company, supporting theproduction of monocrystalline PERC solar cells in the photovoltaic industry.
Promoting the rapid development of the new energy industry
With a commitment to eco-friendly development, Wenzhou Branch has bolstered its support for strategic emerging industries. In particular, the branch has provideda credit facility of RMB 230 million to a local new energy company, dedicated to the research, production, and sales of the company’s battery liquid cooling plates.
Fostering the growth of energy internetCaseIn response to the national policy on the strategic development of emergingindustries, Dalian Branch has introduced innovative digital credit facilities,and provided a comprehensive nancial service package including nancing,settlement, and credit card services to a local energy internet company.
Boosting the Development of Strategic Emerging Industries
RMB
103.623
billion
Development Committed to Serving the Nation throughFinance and Writing a New Chapter in Financial Service1423
2627
Contributing to RegionalDevelopment
Guided by the overarching national regional development strategy, Huaxia Bank has actively integrated into the mainstreamof regional economies, aspiring to play a pivotal role. Our eorts have been directed towards constructing a new paradigmof synchronized advancement, leveraging branches situated within the three primary regions (Beijing-Tianjin-Hebei, YangtzeRiver Delta, and the Guangdong-Hong Kong-Macao Greater Bay Area) as focal points, supported by a network of "two linesand multiple outlets." This initiative is aimed at facilitating regional high-quality development.
We have implemented theHuaxia Bank Action Plan for the Development of the Beijing-Tianjin-Hebei Region 2021-2025, emphasizing the signicanceof serving the developmental strategy of this region as a strategic priority for the entire bank. Concurrently, we have established a repository for keyprojects aimed at fostering the coordinated development of the Beijing-Tianjin-Hebei region. Furthermore, we have consistently intensied our eorts toprovide nancial services in the region.
Supporting the development of Xiong'an New AreaPromoting infrastructure construction?The Bank has garnered qualifications for various business roles, including the "Trustee Bank for Hebei Xiong'anIndustrial Guidance Fund," and "the Bank to Deposit Financial Funds for Xiong’an New Area".?The Bank has deepened its strategic cooperation with China Xiong’an Group to advance the construction of theXiongxin Digital Payment Platform.?The Bank has provided a Bank-Lease Loan for CCCC Xiong’an Financial Leasing Co., Ltd, offering full support to thedevelopment of subsidiary of the central state-owned enterprise in Xiong’an.
?Through the comprehensive "Commercial Banking +Investment Banking" operating model, the Bank has provideda range of financing services for key projects under the Beijing-Tianjin-Hebei integrated development strategy.?The Bank has prioritized supporting projects such asZhangjiawan Outlet Town in the capital’s Tongzhou district,Tongzhou Universal Studios Integrated TransportationHub, and International Aviation Headquarters Park.
We have implemented theOutline of the Integrated Regional Developmentof the Yangtze River Deltaand theHuaxia Bank Action Plan for the RegionalDevelopment of the Yangtze River Delta 2021-2025. Capitalizing onemerging opportunities in the delta's integrated development, we haveextended comprehensive financial services across crucial sectors such astalent acquisition, infrastructure enhancement, strategic emerging industrycultivation, and environmental preservation. Our aim is to propel forward theintegration process in the Yangtze River Delta region.
At of the end of 2023Balance of loans outstanding in theYangtze River Delta
RMB
385.6
billion
Engaging in the development of the ve new cities in ShanghaiShanghai Branch has successfully issued the rst bond in the integrated development demonstration zone of the Yangtze River Delta, raising funds for investment,construction, and operation of development projects within the demonstration zone. This includes key industrial projects in Qingpu New City, one of Shanghai’s "venew cities." Through tangible actions, the branch aligns with the overarching national strategy of the integrated development of the Yangtze River Delta.Case
Promoting the development of the semiconductor
industry across the Yangtze River Delta.
Hefei Branch has utilized investment-oriented loans extensively toprovide a "follow-up loan" financing service support, successfullyimplementing this service for a local semiconductor joint-stock company.
Serving high-net-worth clients in the Yangtze RiverDelta RegionSuzhou Branch has customized asset management solutions for bothlisted companies and their controlling shareholders. Collaborating with atrust company, it has jointly developed trust products to meet the needs ofcontrolling shareholders in listed companies for equity reduction and phasedfinancing. Additionally, by implementing specific risk mitigation measures,the branch oers low-risk xed-income products to high-net-worth individualclients, thereby facilitating cross-regional customer acquisition.
ETC card users in the region
At the end of 2023
Balance of loans outstanding in theBeijing-Tianjin-Hebei region
Outlets established in the Beijing-Tianjin-Hebei region
Debit cards themed on the coordinated developmentof the Beijing-Tianjin-Hebei region issued
In 2023
The total amount of various investment andnancing services rendered to key projects in thecoordinated development of the Beijing-Tianjin-Hebei region
about
83.5
billion
Holding the Beijing-Tianjin-Hebei Collaborative Development nancial
services promotion meeting
?The Bank has enhanced the information exchange and sharingplatform across the three regions, organizing the "Beijing-Tianjin-Hebei Collaborative Development Financial Services PromotionMeeting" to address key challenges and accelerate the growth ofbranch businesses in these areas.
Facilitating the development of key functional zones?Focusing on developing the "2+4+N" industrial cooperation pattern,the Bank has offered investment and financing support to entitiesinvolved in the construction of industrial collaboration platforms andindustrial parks in Tianjin, Caofeidian, and Handan.
Enhancing cooperation with the government?The Bank attended the rst joint meeting of the State-Owned AssetsSupervision and Administration Commission of Beijing municipality,Tianjin municipality and Hebei provinces, and signed a strategiccooperation agreement with Tianjin Infrastructure Investment Groupand China Xiong'an Group
With a comprehensive understanding of national strategies, we have unequivocally articulated and consistently executed the "Three Regions, Two Lines,Multiple Outlets" dierentiated regional support strategy, focusing on the Beijing-Tianjin-Hebei region, the Yangtze River Delta, and the Guangdong-HongKong-Macao Greater Bay Area. Through these endeavors, we have forged a new paradigm marked by mutual advancement, complementary strengths, andorganized development.
Serving the national regional development strategies
Coordinated development of the Beijing-Tianjin-Hebei region
Integration of the Yangtze River Delta region
CaseCase
1,428,300
RMB
560.832
billion
2,509,100
Development Committed to Serving the Nation throughFinance and Writing a New Chapter in Financial Service1423
2829
Huaxia Bank has executed theOutline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area, and strives to seize opportunities inthe development of the Greater Bay Area. By introducing innovative nancial products and services specically designed for the strategic pillar industryclusters in the region, we contribute to the Greater Bay Area's aspiration to become an international rst-class bay area and a world-class city cluster.
Enhancing the attractiveness of the Yangtze River Deltafor talent acquisition
Hangzhou Branch, focusing on major projects in the integrateddevelopment of the Yangtze River Delta, has extended loan support ofRMB 200 million to the consortium for the "Zhejiang Yangtze RiverDelta High-level Talent Entrepreneurship Base" project. This fundingwas earmarked for the construction of a hotel within the park, aiming tostimulate consumption upgrades in the Yangtze River Delta region andenhance its appeal to talents. By the end of 2023, RMB 66 million of theloan had been disbursed in accordance with the construction progress.
Formulating and implementing differentiated creditpolicies in the Yangtze River DeltaWuxi Branch, aligning with Wuxi’s strategic positioning as the "core ofadvanced manufacturing in the Yangtze River Delta, a leading area oftechnological innovation, benchmark for green ecology, and comprehensivetransportation hub", has formulated and implemented differentiated creditpolicies, which integrate both supportive and regulatory measures. The Branchalso establishes an integrated nancial service mechanism that combines onlineand oline operations, with coordination between front, middle, and back-ocefunctions. By engaging deeply with manufacturers, industrial parks, and keyenterprises, the branch facilitated multi-channel nancing supply. By 2023, thebranch has extended credit support of RMB 56.01 billion.
Supporting the growth of innovation and technologyindustries in the Greater Bay Area
Promoting FinTech development in the Greater Bay Area
Guangzhou Branch has been actively extending financial services toinnovation and technology sectors within the Greater Bay Area. At thesigning ceremony for industry and nance integration projects during the12th China (Guangzhou) International Finance Expo, the branch signedcooperation agreements with a group from Guangzhou Science City (GSC)and a group from Guangzhou Development District.
Shenzhen Branch has collaborated with the International Digital Economy Academy(IDEA) to explore application projects involving privacy computing technology. Thepartnership focuses on the utilization of next-generation independently controllableSPU confidential computing co-processors. Together, we aim to construct ahardware-level privacy computing framework tailored for the financial sector,facilitating the integration of multi-party data and breaking down data silos. This jointeffort is geared towards expediting the development of the Greater Bay Area.
Supporting infrastructure construction in the GreaterBay Area
Hong Kong Branch has actively supported the business expansion of aconstruction group and its subsidiaries in Hong Kong. We have soughta comprehensive credit limit exceeding HKD 3.5 billion, comprisingbilateral, syndicated, and debt facilities, to assist this construction group,thereby supporting the group’s project construction in the Greater BayArea.
Case
Advancing ecological improvement in the Yangtze River Economic BeltNanchang Branch has extended a credit of RMB 200 million to a wastewater treatment company in Ganzhou, Jiangxi Province. This funding is earmarked for theconstruction of the urban sewage treatment project in Ganzhou's central urban area, improving urban sewage treatment in the Jiangxi section of the belt.Case
We have oered nancial support to key areas, including regional infrastructure construction, industrial transformation and upgrading, and ecologicalprotection. In addition, we are advancing the construction of the Chengdu-Chongqing economic zone, and further promoting the high-quality developmentof the Yangtze River Economic Belt.
Supporting the development of the nancial center in western ChinaIn August 2023, a seminar on supporting Chongqing in building the Western Financial Center and assisting in the construction of a modern nancial ecosystem inChongqing was held in Beijing. Li Minji, chairman of Huaxia Bank, attended the meeting, and Vice President Yang Wei signed a strategic cooperation agreementwith the Chongqing Municipal Government on behalf of Huaxia Bank. To support the construction of the Western Financial Center, our bank decided to oerintended comprehensive nancing on-and-o balance sheet with an amount of RMB 220 billion to dierent types of enterprise and major projects in Chongqing inthe next ve years.
Case
As of the end of 2023Balance of loans for the Guangdong-HongKong-Macao Greater Bay AreaRMB
252.791
billion
Offshore bond underwriting projects for clients in the Greater Bay Area
Hong Kong Branch
Development of the Guangdong-Hong Kong-Macao Greater Bay Area
CaseCase
CaseCase
Contributing to High-Quality Regional Development
Development Committed to Serving the Nation throughFinance and Writing a New Chapter in Financial Service1423
3031
Promoting Inclusive Finance
Huaxia Bank has proactively infused political consciousness and a people-centered philosophy into its nancial operations.We effectively respond to the national rural revitalization strategy,focusing on vulnerable areas and key sectors in thefinancial services, leveraging financial technology and digitization to explore new paths for the development of digitalinclusive services, striving to advance the enhancement of inclusive nancial products and services.
Balance of loans for MSEs, accounting forBalance of loans to MSEs with a maximum of
RMB 10 million
Customers who received loans to MSEs with amaximum of RMB 10 million
At the end of 2023
Taking into account the characteristics of micro and small enterprises (MSEs), we provide attentive and high-quality services, actively responding to nancialsupport policies in the "agricultural, rural, and farmers' sectors". We continuously strengthen the breadth and depth of inclusive nancial services.
Guided by our identity as “a nancial service provider for small and medium-sized enterprises,” we actively engage with micro and small enterprises(MSEs), continuously increasing support for inclusive nancial credit. We enhance our service pricing mechanism to eectively alleviate the nancingcosts and burdens of MSEs.
Serving MSEs
?The Bank has implemented a dedicated inclusive loan credit plan to eectively manage the scale of inclusive credit.?The Bank has set a "Double Increases" goal for inclusive MSEs, which requires that the growth of these loans should not be lower than the growth rate of allloans and the number of loan accounts to remain at or above the level at the beginning of the year. As a result, the Bank has seen an increase in loans of RMB
14.106 billion, marking an impressive growth rate of 8.77%.
?The Bank has reduced and waived handling fees for MSEs transactions within the inclusive nance sector.The Bank has taken the initiative to assume thecosts associated with nancing activities for MSEs, including mortgage registration, assessment, insurance, and compulsory notarization fees, totaling RMB
33.7895 million.
Increasing support for MSEs transactions within the inclusive finance
?In the inclusive nance sector, the Bank has introduced a dedicated program targeting support for specialized , high-end and innovation-driven MSEs.?The Bank has granted dierentiated authorization for specialized, high-end and innovation-driven MSEs and increased the single-account approval authority forcorporate clients classied as specialized, high-end and innovation-driven MSEs to RMB 30 million and has granted branches specic credit authorization for theseclients.?The Bank has strengthened comprehensive services for all businesses and processes, and established a streamlined approval process, providing serviceswith a "customized approach for each client, real-time review, priority review meetings, and expedited approval."?The Bank oers preferential policies for the admission of specialized, high-end and innovation-driven MSEs on the whitelist, oering benets in terms ofindustry, client, guarantee, region, and corporate group.
Supporting specialized ,high-end and innovation-driven MSEs
Taking initiative, eciently empowering specialized, high-end and innovation-driven SMEsCase
An optoelectronic company in Shenzhen specialized in the research, production, sales, and service of liquid crystal display screens was faced with a tight cash ow.Learning about the situation, Shenzhen Branch took the initiative to extend the company’s loan repayment period and waive a portion of the interest, lighteningthe burden of its loan repayment obligations. After the company’s cash ow recovered, the branch continued to extend credit of RMB 10 million as "Science andTechnology Innovation Loan," providing steadfast support for the development of high-quality SMEs in the eld of science and technology innovation.
Increasing Eorts to Provide Inclusive Services
Breaking through tradition to fully empower specialized,
high-end and innovation-driven SMEs
An Artificial Intelligence Technology Co., Ltd in Beijing is an intelligent manufacturingenterprise based on a new generation of AI technology. In view of the characteristicsof the group, such as large investment in early-stage scientific research and a longrevenue generation cycle after the product is launched into the market, BeijingBranch has changed the traditional service approach and introduced a full life cycleinnovation service mechanism of "Financing + Training", providing a total of RMB 18million in loan funds support, and provided loan renewal services without requiringthe company to repay the principle, which facilitates the company’s technologicaladvancement and innovation.
Collaborating with multi-parties, empowering specialized,high-end and innovation-driven SMEs
A local technology company, which focuses on energy-saving andenvironmental protection technologies, was recognized as a provincial-level specialized, high-end and innovation-driven enterprise. When HefeiBranch learned that this company was seeking strategic investors tofacilitate equity-based nancing, it stepped in to oer a tailored nancialservice approach. This included actively introducing potential third-party investors and providing expert advice to support the companythrough the equity nancing process, ensuring that the company’s variednancial requirements were met.
CaseCase
?The Bank has increased the weighting of inclusive nance assessments and introduced incentives for internal fund transfer pricing and economic capitalutilization.?We have established a process management evaluation system for inclusive finance, covering six dimensions—mechanism construction, customermanagement, business operations, risk control, team development, and business innovation. The aim is to guide branches in conducting inclusive nancebusiness to higher standards.?The Bank has implemented a mechanism for credit due diligence exemption and error tolerance, including additional criteria for personnel in each MSEbusiness process, and has enhanced the due diligence exemption system for MSE credit.
Improving the assessment mechanism for business management
Implementing periodic interest rate reductions
?MSEs in our inclusive services benet from automatic periodic interest rate reductions, further decreasing nancial burdens on MSEs to facilitate theirgrowth and development.?Two rounds of interest refunds from the Bank involve 567,500 loan transactions, with a total interest refund of RMB 461 million, beneting 517,600 smalland micro enterprises.
RMB
584.973
billionRMB
175.011
billion351,800
Development Committed to Serving the Nation throughFinance and Writing a New Chapter in Financial Service1423
3233
As of the end of 2023
Balance of agriculture-related loansBalance of inclusive agriculture-related loansRural outlets
We diligently implement the Opinions of the CPC Central Committee and the State Council on Doing a Good Job in the Key Tasks of ComprehensivelyPromoting Rural Revitalization in 2023,pooling resources to support the vitalization eorts and intensifying our commitment to providing agriculture-related loans. Harnessing the power of nance, we aim to empower rural vitalization.
Improving top-level design?Huaxia Bank has a rural revitalization leadershipgroup led by the the party secretary andchairman of Huaxia Bank, which spearheaded theformulation of theHuaxia Bank ImplementationPlan for Comprehensively Promoting RuralVitalization in 2023.
Enhancing mechanisms?The Bank has incorporated performanceindicators such as agriculture-related loans,inclusive agriculture-related loans, loans toareas lifted out of poverty, and loans to keycounties designated to receive assistance forrural vitalization, in the performance assessmentsystem for branches and branch leadership.Meanwhile, the Bank has consistently raisedthe importance of these indicators to enhancemotivation.?The Bank has provided 80bp and 20bp internalfund transfer pricing incentives respectively forinclusive agriculture-related loans and creditactivities in key counties designated to receiveassistance for rural vitalization. This initiativeaims to motivate operating units to extend creditto support these areas.
Consolidating the achievements in poverty alleviation
?Utilizing the financial sector's capabilities topromote rural industry development, the Bankhas coordinated the allocation of financialresources and introduced innovative productand service models customized to the conditionsof supported areas. Meanwhile, the Bank hasconsistently enhanced credit support for theseregions.?Focusing on assisting villages with a weakcollective economy in Beijing to increase income,the Bank has implemented a targeted assistanceplan called "One Policy For One Village." Wehave dispatched outstanding officials to serveas "First Secretary" in these villages to assisteconomically weak villages in making the bestuse of various assistance funds. Our endeavorsaim to bolster the collective increase of annualoperating income for these villages and addressvarious practical challenges.?By launching consumption support programs andpurchasing agricultural and sideline productsfrom key supported areas like Beijing, InnerMongolia, Xinjiang, etc., the Bank contributes tothe promotion of agricultural product sales.
The Bank was rated "good" in the 2022assessment of poverty alleviation effortsconducted by the Beijing State-ownedAssets Supervision and AdministrationCommission (SASAC) system.The Bank was honored with the "BestPractice Case of Listed Companies forRural Revitalization" at the "2023 ListedCompanies’ Best Practices for RuralRevitalization Initiative," hosted by theChina Listed Companies Association.
Caring for the growth of the youth in the Xinjiang Uygur Autonomous Region
Urumqi branch, as part of the initiative of stationing ocials in villages and the ongoing eorts to advance comprehensive rural vitalization in the Xinjiang UygurAutonomous Region, continues to deepen the "1+6" targeted assistance model ( "1" refers to the foundational support provided by the branch’s Party committee,ensuring leadership responsibility, mechanism guarantee, fund guarantee, and work guidance. "6" represents six key areas of focus education, consumption,industry, employment, nance, and public welfare). This model aims to bolster poverty reduction eorts and the rejuvenation of rural areas.Urumqi branch hasdonated special funds to the Hotan region, supporting the establishment of scholarships and projects beneting the local community. In addition, the branch hasconducted various visits to local youth and educational assistance activities to support the growth of the youth in the region.
CaseOering tailored assistance to precisely empowering specialized, high-end and innovation-driven SMEsA tech company in Nanjing, a “specialized, high-end and innovation-drive” enterprise, mainly produces rail transit power control and electrical control equipment.Nanjing Branch sought to address the nancing challenges of light-asset of this company and oered tailored loans. Within a week, the branch approved a creditloan of RMB 10 million, eectively meeting the company’s urgent short-term funding needs.Changsha Branch, considering factors such as industry type and growth stage, has provided customized products and services to MSEs that precisely align withtheir needs. To support entrepreneurial endeavors and the re-employment of MSEs, the branch designed the "Startup Business Loans". For qualied POS acquiringmerchants, it introduces "POS online Loan" to tackle various nancing challenges. Additionally, it launches "Tobacco Business Loans" exclusively for tobaccoretailers, providing pure credit loans to meet stores’ cigarette sales and daily operational turnover needs.
Case
Contributing to rural vitalization
RMB
278.621
billion RMB
22.756
billion
Development Committed to Serving the Nation throughFinance and Writing a New Chapter in Financial Service1423
3435
Leveraging the advantages of nancial institution resources, we tailor distinctive inclusive nancial products based on the operational characteristics ofcorporate clients and the unique business features of individual clients. This precision in product development ensures the fulllment of diverse nancialservice needs for inclusive clients.
The Bank has developed an exclusive digital loan product named the "Food SupplyAssurance Loan" for the Xinfadi market, the largest wholesale food market in Asia. Thisinitiative is aimed at facilitating a fully online end-to-end business process.Oering the exclusive "Food Supply Assurance Loan"The Bank has launched the "Technology Innovation e-Loan" product specificallyfor technology-oriented enterprises listed under the Zhongguancun ManagementDepartment's client list of the Beijing Branch. Harnessing financial technology, thisinitiative aims to support the growth of innovative and technological businesses.
Empowering business development with "Technology Innovation e-Loan"
Comprehensive upgrading the traditional "Business Loans Secured by Property" serviceThe Bank has developed the "Business Loans Secured by Property" 6.0 service, fully digitized toimprove eciency. Leveraging our in-house "digital inclusive intelligent risk control platform," wehave introduced features including online application, property valuation, automated le creation,risk screening, online signing, property mortgage, withdrawal, repayment, and automated post-loanmanagement. Customers can access an end-to-end online loan service with exible borrowing andrepayment options, oering a maximum loan amount of RMB 30 million and a maximum term of 30years. This service eectively meets the frequent small loan fund requirements of MSE clients.
Promoting new internet loan servicesThe Bank has actively pursued high-quality partnership projects,with a focus on leading platforms. In addition, the Bank hasintroduced new online loan products, including the "SunshineHuaxia Personal Business e-Loan," "Micro Business Loan," and"Qingdao Zhongan Dragon e-Loan." These initiatives leveragetechnologies such as the Internet and mobile communication toimprove credit accessibility for MSE customers.
Introducing the fully online "Business Loans Secured by Property" 6.0 productCase
Zhengzhou Branch has further strengthened its partnership with the Zhengzhou Property Registration Center and introduced the rst fully online version, "BusinessLoans Secured by Property 6.0," across the entire Huaxia Bank system. This product, built upon the traditional property mortgage loan framework, seamlessly integrateswith internal operating systems and facilitates smooth data exchange with the Zhengzhou Property Registration Center. As a result, it streamlines the entire processof individual property mortgage applications, property valuation, approval screening, property mortgage, and collateral management into a comprehensive onlineexperience. This strategic advancement is aimed at providing our diverse customer base with more convenient, ecient, and secure credit services.
Promoting regional distinctive enterprises through "Douban Loan"Case
Chengdu Branch, with a focus on fosteringindustries with distinctive local characteristics,has introduced innovative financial productslike the "Douban Loan" to bolster regionalagricultural development. Tailored to theoperational features of Douban (broad beanchili paste) production enterprises, the bankhas extended credit loans of up to RMB 3million to MSEs holding the "Pixian CountyDouban" trademark. This nancial support aimsto assist these enterprises in procuring chilipeppers, fava beans, and other raw materials,alleviating their funding shortages during rawmaterial purchases. In 2023, a total of RMB 5.8million in credit was disbursed for this purpose.
Safeguarding the quality of food productsCase
Utilizing the protective role of finance in rural industry development,Guangzhou Branch has extended credit support to a local agriculturaldevelopment limited company, one of the vegetable and food productionbases in the Guangdong-Hong Kong-Macao Greater Bay Area. This assistanceaims to promote standardized production and improve the quality of thecompany’s characteristic agricultural products, including Zengcheng Chineseowering cabbage, Zengcheng lychee, Simiao rice, paddy eld ducks, lycheechickens, and others.
Promoting the development of rural industriesCase
Yinchuan Branch has developed a financial program to support ruralvitalization and deployed three ocials to carry out village assistance work.Branch leaders have led two visits to local government departments tounderstand their specific needs. The branch has implemented the "creditextension to the entire village" model, disbursing rural revitalization loanstotaling RMB 2.54 million and contributing RMB 100,000 to support thelocal "free-range chicken" project.
Catalyzing the development of the agricultural and
pastoral industry chain
Supporting high-quality agricultural enterprisesHohhot Branch actively implements the requirements outlined duringGeneral Secretary Xi Jinping's inspection of Inner Mongolia, focusingon key regional leading enterprises of the agricultural and pastoralindustry and distinctive industries. It has extended credit support toupstream forage planting and processing enterprises and livestockbreeding enterprises in the agricultural and pastoral industry chain. Thisstrengthens support for the agricultural and pastoral industries, fosteringthe expansion and resilience of enterprises engaged in the processingand distribution of agricultural and livestock products.
After understanding the actual business operations and funding needsof the Huinong Livestock Farming Cooperative in Feng County, theBaoji Branch under the Xi’an Branch provided the enterprise with acredit scheme and credit support. This assistance has facilitated thehealthy development of the enterprise, leading to seasonal employmentopportunities for over 560 impoverished households in the surroundingarea.Xi
CaseCase
Innovating Inclusive Financial Products
Development Committed to Serving the Nation throughFinance and Writing a New Chapter in Financial Service1423
3637
Case
Promoting High-Standard Opening UpProactively aligning with China’s strategy of opening up, Huaxia Bank has stepped up to promote international settlement,import and export trade nancing, cross-border guarantee products, and cross-border RMB products, to deliver ecient andconvenient nancial services for Chinese enterprises "going global."
In 2023, during the tenth anniversary of the Belt and Road Initiative (BRI), the Bank met Chinese enterprises’ cross-border business demand with tradefinance and other products and services. We also provide comprehensive financial services, including policy consulting, payment and settlement, riskmitigation, trade nancing, and credit enhancement, to help enterprises expand overseas presence.
Correspondent banks set up, covering 304 cities in98 countries and regions across the worldcovering 98 countriescovering 304 cities
As of the end of 2023
Correspondent banks opened in BRI markets
In 2023
issuance volume of oshore bondsCross-border payments and receiptsRMB cross-border paymentsHong Kong Branch
Embracing the internationalization of the renminbi (RMB), Huaxia Bank has introduced the cross-border RMB remittance service on its corporate onlinebanking platform. Simultaneously, the Bank has fostered the growth of online channels, and developed new business scenarios to leverage the role ofcross-border RMB transactions in serving the real economy and facilitating trade and investment. The Bank has consistently increased the scale of cross-border RMB transactions and their share in both domestic and foreign currency payments, thereby expediting the internationalization of RMB.
Contributing to RMB Internationalization
Supporting the development of an international logistics hub
Nanning Branch has extended credit support to enterprises involvedin the development of building Guangxi into an international logisticshub, including RMB 83.3 million in working capital loans to a portcompany and a shipping company in the region, to support infrastructureconstruction along the new corridor of the international logistics hub.
Launching China’s rst Belt and Road asset-backed securities (ABS) project
Nanjing Branch has actively implemented the BRI and successfullylaunched China’s rst Belt and Road ABS project. This project, referredto as the "Huaxia-Ping An-Dongzao Port Fee Revenue Rights Phase 1ABS Scheme," put the stock assets of the port company into good use.
Facilitating Qualied Foreign Limited Partnership (QFLP)transactionHaiKou Branch, in collaboration with the State Administration of ForeignExchange and local government agencies, organized a policy brieng on theHainan Free Trade Port. It explained to businesses one-on-one the policiesfacilitating QFLP in Hainan. Facilitating successfully a RMB 70 million QFLPtransaction, the Branch also analyzed and addressed issues that might arisein processes such as forex registration, opening of capital accounts, onshorepayment of capital, and fund use supervision, and expanded the use of cross-border RMB in attracting foreign investments.
Facilitating the overseas listing of a private enterprise
While expanding cross-border RMB business, Hangzhou Branch oereda cross-border RMB settlement service solution for a new energyautomobile company and helped the latter go public overseas. The fundsraised from the listing have owed back into China in the form of cross-border RMB, with RMB 1.842 billion received so far.
Responding to the Belt and Road Initiative
Case
Case
Streamlining management of the cross-bordersettlement processShanghai Branch reached out to high-quality enterprises involved inforeign trade, and customized convenient cross-border RMB servicesolutions for them. Now instead of a stack of documents, the enterprisesneed only submit the "Cross-Border RMB Settlement Receipt/PaymentInstruction" to the Bank, which has significantly improved fundsettlement eciency and saved business costs.
Case
Case
1,18798304627
RMB1,725 billion
USD
78.873
billionRMB
102.399
billion
Development Committed to Serving the Nation throughFinance and Writing a New Chapter in Financial Service1423
3839
Serving the Capital’s High-Quality Development
Serving the economic and social development of the capital was established as a priority for supervision for the Head Office Party Committee anda priority task for the management team. We provided full support for and actively engaged in the construction and development of the capital. Wecontinued to strengthen nancial services for various key projects and dramatically increased resource investments in Beijing. This underscores ourunwavering commitment to serving the development of the capital city and its economy with a strong sense of mission and responsibility.
Boosting Economic Development
?The Bank has strengthened communication with the Beijing Financial Loan Service Center to expand the coverage of inclusive nance.?The Bank has further cut fees in accordance withthe Implementation Rules for Interest Subsidies and Guarantee Fee Subsidies for First-time Loans to Micro-,Small-, and Medium-sized Enterprises in Beijing.?The Bank has introduced products and services like the “House Loan Express”, “Loan Renewal Without Principal Repayment” and “Sci-Tech Innovation EasyLoan” to help MSEs in Beijing tackle nancing challenges.
Serving MSEs in Beijing
?The Bank has formulated theNational Health Commission’s Integrated Financial Services Plan for Smart Healthcareand distribute theGuidelines for MarketingEorts to Enhance Cooperation with the National Health Commission and to Provide Excellence Financial Services in the Health and Healthcare Sector.?The Bank has partnered with the Beijing Medical Insurance Bureau to support the rollout of the Beijing Universal Health Insurance in 2023.?The Bank has vigorously promoted the use of Beijing’s third-generation social security cards and actively encourage the adoption of pension accounts.A new digital inclusive product — the "Shopping Basket Supply Assurance Loan" for the merchants in Xinfadi market in BeijingCase
Committed to serving the real economy and ensuring the well-being of thecapital’s residents, Beijing Branch has developed an exclusive digital product,the "Shopping Basket Supply Assurance Loan," specically designed for themerchants in Xinfadi market, to provide them with digital and intelligentfinancing support. From application, automatic filing and risk screening,contract signing, to automatic disbursement, repayment, and automatic post-loan services, the customers can access all the services they need online.The customer experience was greatly improved and nancial resources werechanneled to Beijing’s Shopping Basket Program. As of the end of 2023, the"Shopping Basket Supply Assurance Loan" had served 1,000 customers, andextended more than RMB 1 billion in credit.
Beijing Branch has signed a strategic cooperation agreement with theXinfadi market.
Adhering to the dual positioning as a nationwide joint-stock commercial bank and "a bank based in Beijing", We have released theHuaxiaBank 2023 Work Plan for Serving the Economy in the Capital and Coordinated Development of the Beijing-Tianjin-Hebei Region. Based onthe strategic positioning of the capital, we have deeply aligned our strategy with Beijing’s "Five Key Initiatives" and actively participated inthe city’s drive to develop "Four Centers" and create a double development dynamic. We will give full play to our role as a forerunner in thecapital’s nancial sector, and work persistently to break new ground for the high-quality nancial development of the city.
Supporting Beijing’s livelihood development
?Beijing-based central SOEs. The Bank has proactively extended credit to the headquarters or core subsidiaries of 28 central state-owned enterprises (SOEs),including China Energy Investment Corporation and China Chengtong Holdings Group. We have engaged in treasury business partnerships with 40 central SOEs andsigned a strategic cooperation agreement with China Forestry Group Corporation, China Power Investment Ronghe New Energy technology Co,.LTd and China PowerInternational Holding Ltd.?The Bank has invested in bonds issued by SOEs directly under the Beijing SASAC, including Beijing Capital City Development Group, Beijing Capital DevelopmentHolding (Group), and Beijing Electronic Zone High-tech Group.?Key district-based enterprises. The bank carried out comprehensive business partnership with the Beijing Fiance Street Group, extending credit support to HaidianState-owned Assets, and investing in bonds issued by dierent district-based enterprises.?Financial services for premium platform enterprises. The Bank has secured the contract for ByteDance’s cash management RFP in mainland China, embedded Didi’sdiscounted fueling API into our mobile banking application and fostered various collaborations with JD Group.
Strengthening nancial support for key enterprises in the capital
?The Bank has fostered closer collaboration between headquarters and branches, strengthened ties with government oversight departments, and provided robust supportfor key projects in Beijing at both the city and district levels. The Bank also adopted a "project contracting" service model to oer comprehensive nancial services. TheBank has advanced the preparation of key projects in Beijing, such as the "3 sets of 100." The Bank also has established an ecient "iron triangle" working mechanisminvolving "customer managers, product managers, and credit approval ocers" to facilitate the forward advancement of approval processes.?The Bank took part in the bidding for eight rounds of local government bond insurances, supporting the pilot initiatives for local government bonds, and ranked topamong banks under the Beijing Municipal Government in terms of business volume.?T
he Bank oered fund supervision and custody services for the rst REITs projects in the country backed by photovoltaic power generation assets—the AVICJingneng Photovoltaic REITs project.?The Bank reformed the real estate business model to support urban development and renewal eorts, and extended credit to Beijing Public Housing Center Co., Ltd.and Metro Land Corporate Ltd.
Strengthening nancial services for key projects in the capital
Financing services provided for MSEs in BeijingRMB40+ billionIn 2023of diverse nancing services oered in BeijingaboutRMB 458 billion
Year-on-year increaseabout
%
Development Committed to Serving the Nation throughFinance and Writing a New Chapter in Financial Service1423
4041
Huaxia Bank is dedicated to expanding the market of technology nance.The Bank has built a whole-chain nancial service mechanism, fostereddeep integration between the digital and real economies, and made greateort to support Beijing’s drive to grow into an international center forscience & technology innovation, a global leader in the digital economy,and develop high-tech industries.
Investment and nancing services provided for XX tech companies BeijingRMB
31.5
billionIn 2023
Attending the 2023 Zhongguancun (ZGC) ForumCaseIn May 2023, the Bank, as an industry partner of the forum, participated in the professional discussion at the "Double Carbon Strategy and Green Finance Forum"and set up a booth in the core exhibition area to showcase our achievements in digital nancial innovation to all participants in support of Beijing’s drive to growinto an International Center for Science & Technology Innovation.
?The Bank launched the venture loan and the equity-based loan on a trial basis in Beijing and extended "follow-on loans" to high-quality tech companies leveraging its expertise.?The Bank launched digital nance brand and a series of products for industrial digital nance.?The Bank continued to improve our online supply chain non-recourse refactoring products. Throughout the reporting period, we extended refactoring services toover 1,000 companies in the industrial chain through Cloudchain Group.?The Bank launched the Beijing Medical Insurance Mobile Payment Project, which is of great importance to the public wellbeing in the city. The project oersmerchant onboarding and fund settlement services for designated healthcare institutions participating in Beijing’s medical insurance program. It enables 24/7online payments of Beijing medical insurance. More than 50 hospitals in Beijing are now covered by the medical insurance mobile payment service.?The Bank launched a new e-CNY system which directly connects our mobile banking system with China Construction Bank’s e-CNY operating platform, andfeatures such functions as salary disbursement in e-CNY and QR code scanning.?Our intelligent POS terminals have been equipped to accept e-CNY, bank cards, and barcode payments, facilitating transactions in high-frequency and low-value payment scenarios at shopping malls, supermarkets, convenience stores, wholesale markets, etc.
Optimizing product services
?The Bank increased the FTP tilt based on the central bank’s special re-lending instruments to further lower financing expenses for tech companies.?The Bank launched a specialized program aimed at specialized, high-end and innovation-driven MSEs, with FTP subsidies for loans extended to those at thenational and provincial levels, aimed at assisting them in accelerating high-quality development. By 2023, the Bank has served more than 170 such MSEs inBeijing, with a total business balance surpassing RMB 1.5 billion.?The Bank cultivated the distinctive features of the Zhongguancun Management Department, featuring a specialized "1+16+N" system to provide nancialservices tailored for tech enterprises ("1" refer to one central, namely the Zhongguancun Management Department, which takes the lead in formulatingmarketing strategies for the district and sixteen parks, developing technological innovation products, cultivating and sustaining a client base within theecosystem, and regularly distributing a list of technology rms and "specialized and innovative" enterprises in the parks to explore business opportunities."16" signies sixteen "park primary branches" within the Beijing Branch’s jurisdiction, selected based on their collaboration with park-based tech rms. Thesebranches, guided by the Zhongguancun master plan for one district and sixteen parks, oer tailored nancial partnership programs for the parks, ensuringcomprehensive channel marketing coverage across the city. And "N" represents a number of "park supporting branches", ranging from 2 to 5, which aredesignated based on the park’s scale and the number of tech companies present.
Improving the systems and mechanisms
?The Bank collaborated with the Capital Science and Technology Development Group to establish the "Beijing Shoufazhan Huaxia Longying Jieli Tech InvestmentFund," actively serving equity nancing needs of technology enterprises.?The Bank has partnered with the Beijing Academy of Blockchain and Edge Computing to complete the Longxin Chain project.?The Bank has implemented industry-specic digital nance projects for the No. 2 Research Institute of China Aerospace Science and Industry Corporation, andChina Huaneng Group.
Deepening strategic cooperation
Boosting scientic and technological advancement
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Driving Cultural DevelopmentWe have actively expanded our range of nancial products and services tailored for the cultural andcreative sectors. For example, we engaged in the Beijing Consumption Season and co-organizedcultural events with time-honored Chinese brands. Simultaneously, we support the sustainable growthof these brands through a "commercial banking + investment banking" nancial service model. Wecontributing to the development of Beijing as the nation’s cultural center.
Invigorating the inheritance of historical and cultural heritage through nancial services
Supporting the inheritance and innovation of the Axis Culture of Beijing
Case
Case
Beijing Branch continued to implement the Time-Honored Brand Action Plan. We have collaborated with multiple time-honored brands to support the inheritanceand development of Beijing's time-honored brands. Throughout the reporting period, the branch served a total of 51 time-honored brands and extendedcomprehensive credit amounting to RMB 30.6 billion to group companies of some time-honored brands.
In late 2023, Beijing TV’s grand cultural original music reality show, "Singingfor the Central Axis of Beijing", premiered its highly anticipated third season,titled "Season of Cultural Context", igniting a passionate display. Focused on ninecaptivating themes-gates, rivers, granaries, walls, mountains, towers, restaurants,residences, and altars-the show skillfully resurrects history and reimaginesscenes, engaging in ethereal dialogues with esteemed historical gures. Throughthis compelling approach, it delves deep into the profound cultural legacy andnational wisdom enshrined within the central axis. As a steadfast companionthroughout the three seasons of "Singing for the Central Axis of Beijing", theBank is honored to return as the principal strategic partner, joining forces withthe audiences once again to explore the rich heritage along the central axis andwholeheartedly supporting the Central Axis of Beijing to be a World Heritage Site.The 7.8-kilometer-long central axis of Beijing is the longest and mostcomplete ancient urban axis in the world. It not only embodies the wisdom ofancient Chinese urban architecture but also carries the historical context ofthe capital. It is hailed as the "soul and backbone" of old Beijing. Since 2021,the Bank has been wholeheartedly supporting the Central Axis of Beijing tobe a World Heritage Site, serving the inheritance of central axis culture, andcontributing to the enduring transmission of Chinese cultural heritage.The Central Axis of Beijing is a unique witness to Chinese civilization and culturaltraditions. The application for a World Heritage Site by the Central Axis of Beijingis conducive to increasing Beijing’s reputation and cultural charm and promotingthe protection and inheritance of the central axis and traditional culture, andenables more people to comprehend ancient Chinese thoughts and culturethrough the central axis, enhancing cultural condence and national pride.The Bank understands that nance is not only the lifeblood of the economy butalso an important pillar for cultural inheritance and development. We have deeplyintegrated the concept of sustainable development into our corporate strategyand sponsored "Singing for the Central Axis of Beijing" for three consecutiveyears. By popularizing the cultural essence of the central axis and forminga consensus on protecting the Central Axis of Beijing among the public, wehave witnessed the continuous development of Chinese civilization’s "inclusiveintegration" and contributed to cultural heritage protection. We are committedto inspiring the public, especially the younger generation, to develop an interestand love for the central axis and traditional Chinese culture, and encouragingmore people to actively participate in the protection and inheritance of culturalheritage.
In 2023
Financing services provided for culturaland creative enterprises in the capital
RMB
billion
Contributing to the cultural development of the capitalIn October 2023, the Ministry of Culture and Tourism, the People’s Bankof China, and the Ministry of Finance began the acceptance inspection ofthe rst batch of national cultural and nancial cooperation demonstrationzone. Our Beijing branch, as one of the rst batch of cooperative banks inconstructing the demonstration zone, attended the symposium, and initiatedthe Huaxia Bank monthly campaign _“Wenjing Service Program” (a supportprogram for excellent cultural enterprises).
In September 2023, our Beijing Branch took an active part in the “BeijingYouth Innovation and Trend Shopping Festival”, which was jointly organizedby the Beijing Municipal Committee of the Communist Youth League and theState-owned Assets Supervision and Administration Commission of People’sGovernment of Beijing Municipality. During the event, the branch launchedvarious forms of promotional and marketing activities within the park, as wellas nancial service outreach activities for cultural and creative sectors.
Case
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Focusing on key industries in the BMC and the relocation of functions nonessential to Beijing’s role as the capital, the Bank has actively engaged instrategic cooperation, providing high-quality nancial services to foster the BMC’s high-quality development.We have robustly developed nancial services for trade and actively contributed to the development of the "Two Zones" and "Three Platforms," thusaiding Beijing in growing into an "international exchange center" and continuously promoting high-standard opening up.
The Bank is preparing to establish a sub-branch in the China(Hebei) Pilot Free Trade Zone Daxing Airport Area, theHoushayu Sub-branch in the China (Beijing) Pilot Free TradeZone, and a sub-branch in the Canal Business District inthe Beijing City Sub-center of the China (Beijing) Pilot FreeTrade Zone.
The Bank has enhanced the utilization of foreign exchangesettlement and sales as well as derivative products, andoffers comprehensive, personalized, applicable, and multi-currency foreign exchange hedging and risk managementsolutions, along with foreign exchange policy consultingservices to enterprises in the "Two Zones."
The Bank’s six sub-branches in Beijing have become pilotinstitutions for facilitating trade receipts and payments,and applied for the pilot unit status of trade receipts andpayments facilitation for eight enterprises.
We sponsored the China International Fair for Trade inServices (CIFTIS) and the ZGC Forum, and participated inthe Financial Street Forum, to raise public awareness ofour innovations and achievements in elds like science andtechnology, green initiatives, digital solutions, and cross-border nance, and actively serve companies attending thetwo events.
Supportingthe capital’sopening upImproving the institutional layout of the "Two Zones"
Developing new trade nance services
Improving trade facilitation servicesBroaden external communication channels
Serving International Exchanges
Participating in the 2023 China International Fair for Trade in ServicesCaseIn September 2023, the China International Fair for Trade in Services (CIFTIS) was held in Beijing. The Bank participated in the Financial Services Exhibition,showcasing our innovative practices and achievements in industry-specic digital nance, ecosystem-oriented customer development, Huaxia Financial Cloudplatform, trade nance service platform, and the integration of digital scenarios in credit card business.
Supporting the development of the Beijing Municipal Administrative Center (BMC)
?We formulated and issued theHuaxia
Bank Work Plan for Supporting the Development of Tongzhou District.?In December 2023, the Bank signed a comprehensive strategic cooperation agreement with the Tongzhou District government, advancing cooperation of bothparties to new heights. We pledged our support to the key projects in BMC, engaging in the preliminary research of signicant initiatives and reforms withinstate-owned enterprises. We have successfully prepared several project reports and nancing solutions, providing nancing and intellectual support to keyprojects in Tongzhou District. By the end of 2023, the Bank had extended credit support exceeding RMB 30 billion to enterprises under the administration ofTongzhou District, with the total credit fund disbursed exceeding RMB 10 billion.
Improving the top-level design
?The construction of our new Head Office Building in the BMC is in fullswing.Responding to government decisions and policies
?We have established cooperation with all rst-tier SOEs directly underthe SASAC of Tongzhou District.Serving SOEs directly under the SASAC of Tongzhou DistrictDeepening cooperation and communication
?We have entered into strategic agreements with China Beijing GreenExchange.?We have signed a Memorandum of Understanding with the GreenDevelopment Institute of BMC.?We sponsored the BMC Green Development Forum.
?We have obtained the main underwriting qualication for the PPN projectof the State-owned Assets Supervision and Administration Commission ofTongzhou District (SASAC of Tongzhou) and Tongzhou Urban Construction.We, acting as the general coordinator, have completed the issuance ofcorporate bonds for the SASAC of Tongzhou. We have also provided creditsupport for the state-owned enterprises affiliated with the TongzhouDistrict.?We have engaged in custodial business collaboration with the BeijingMunicipal Administrative Center (BMC) Industrial Guidance Fund.
Supporting the development of the BMC
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The Bank has always considered digital and retail transformation as a key strategic direction. We adhered to acustomer-centric business philosophy, deepened synergy and collaboration, and constructed a digital accountmanagement system while building a digital operational platform. We actively implemented the "Fast Win"project for digitizing account management and explore the best practices in digital retail operations, aimingto a more convenient, ecient, and secure customer experience.
Spotlight
Establishing an integrated operating mechanism with "agility" at its coreThe Bank sets up an integrated and coordinated agile team that consists of the Head Office, branch command centers, andoutlet units and operates both top-down and bottom-up. Through the integration of different business areas, of business,technology and data, and effective coordination between the Head Office, branches and subbranches, we have created a newtransmission mechanism.
Building an inter-departmental collaborative mechanism with "collaboration" at its core
We adhered to the holistic and coordinated approach and created a Digital Account Management Office involving keymarketing departments such as personal banking, wealth management, inclusive finance, and credit card center, as well assupport departments including technology, operations, finance, and human resources. Under this mechanism, all departmentsand personnel work together, regardless of their labor division and titles, and efficiently advance projects.
Building a digitally-driven business mechanism with "intelligence" at its coreWe have screened millions of customers, built 20 targeted marketing models, designed over 30 cases ofcustomer segmentation strategies, and created a "smart brain" for account management strategies.
We have upgraded the loyalty points and benefits system for individual customers with thedouble engines of "Energy Points" and "Premium Value" to drive the customer value growth. Wehave driven agile iterations of the online points-based activity platform for individual customers,diversified the activities, and made it a major platform to reward and engage our customers. In2023, the platform attracted more than 30 million visits, and awarded "Energy Points" to 8 millioncustomers and direct benets to 1.2 million customers.
The asset allocation event titled "Investment Portfolios for the Future"Case
The Bank has launched the asset allocation event titled "Investment Portfolios for the Future". With our expertise in the market, we oered personalized and all-in-one asset allocation solutions for individuals, households and businesses by taking into account the customers’ risk appetite, investment horizons, and wealthmanagement requirements, to meet their specic needs.
Giving back to customers?The "Energy Station" introduces a side quest called "Little Dragon's Treasure Hunt - Travel aroundthe Heavenly Palace". Inspired by the customer service lifecycle, this quest includes activities suchas "Welcome Gifts", "New Customer Alliance", "Personal Pension", "Electronic Health InsuranceVoucher", "Payroll", and "Wealth Management".?We established a "Low Carbon" account points system and launched enjoyable, personalized marketingactivities.?We promoted traditional Chinese culture and organized elderly care and parent-child activities.?In the education and growth section, we launched the exclusive Huaxia Book Selection service,regularly updating books in five categories i.e. finance and management, humanities and socialsciences, popular science for daily life, literature and art, and children's reading.?In the quality lifestyle section, we introduced customized services such as Huaxia Family Portraits, petcare services, and domestic service & glass cleaning, etc.?In the health management section, we launched an online medical appointment service for theconvenience of customers.
Building a product supply mechanism with "precision" as its core for wealth allocation and targeted promotion.
In response to the segmentation of our private banking clients and the investment lifecycle, we customize private banking product portfolios and provideprofessional advisory services for clients to meet their diverse needs.
Building the "Energy Points + Premium Value" push mechanism of customer loyalty points and benets with "value" as the core
Focusing on two major customer segments, seven major customer groups and 30 big data use cases, the Bank has created a customer loyalty points andbenets mechanism of "Energy Points + Premium Value" by catering to the characteristics of dierent customer groups.
Huaxia Bank’s "Energy Station" IntegratedMarketing Case won the Integrated MarketingCase of the Year award at the 6th Annual FinanceBrand Case Competition hosted by China FinancialPublishing House.
Accelerating the DigitalTransformation of Retail Business
Building a cross-functional teamwork mechanism with "eciency" at the coreWe have formed a flexible cross-departmental team that encompassed business, technical, and datapersonnel to achieve joint ecient advancement of the stable and traditional waterfall development and theagile and scenario-based channel operation.
The Bank actively utilizes digital means to build an account management system, and works hard to produce quick effects andto create a second growth curve in retail business.
Building a digital customer management system withsix major mechanisms as a priority
Diversifying value-added services
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We were awarded the "Most Trusted MobileBanking Award" at the 19th Joint Promotionof Digital Finance Event hosted by the ChinaFinancial Certication Authority (CFCA).
Building a next-generationmarketing hub
Building abusiness-driven"lake-warehouseintegrated" data hub
Building a retail "scenariohub" integrating thegovernment, businessesand customersBuilding an omni-channel customer
engagementplatformAccelerating to builda dual-mobile-appintegrated intelligentplatform
We integrated our two mobile apps step by stepby combining key functionalities, sharing data andchannels, recognizing each other’s loyalty points andbenets, reusing scenario ecosystems, and promotingintegrated development, to create a collaborativecustomer acquisition chain featuring "scenario-drivencustomer acquisition plus nancial services" to enhancethe overall customer experience.
We have upgraded the e-marketing model into amulti-channel and multi-dimensional customerengagement system that encompasses marketingSMS, push notifications, pop-ups, and messagecenter on the mobile banking app, a unifiedoutbound call platform for account managers,account manager APP, cloud workspaces, AI-powered outbound calling, and physical outlets.
In order to strengthen the digital technology foundation supporting digital retail business, the Bank promoted the deep integration of business, technology,and data, and enhance the comprehensive application of business, digital, and scientic technologies. We have established a team of over 300 technologyspecialists dedicated to the retail business, and rapidly developed ve key technology platforms, laying the technological foundation for the success of our"Fast Win" project and accelerating business development, value creation, and a better customer experience driven by digital technology.
Consolidating ve foundations to build a digital operating platform
The Bank has made great eort to nurture well-rounded digital nance professionals. We have developed a three-tier training and assessment systemfocusing on the "business, management, and data" of retail banking. Through the "Agile Seeds" program, we fully unleashed the potential of multi-skilled talent. We have designed dierentiated digital capability frameworks for various positions and oered targeted training courses to enhance corecompetencies. We have continuously implemented the "learning by doing" approach, combining theory with practice.
Through the implementation of the one-year digital "Fast Win" project, the Bank has trained over 700 professionals inmanagement, marketing, and data analysis, and established dedicated digital direct sales, mobile banking operations, andecosystem operations teams to ensure the eective implementation of the "Fast Win" project, to signicantly enhance ourdigital capabilities and expand the outcomes of "Fast Win".The "Fast Win" project has notably improved the digital, targeted marketing capabilities of our retail business. Wehave launched over 30 big data use cases for dierentiated account management. Compared to the control group, theexperimental group has witnessed a more than 30% increase in asset value per account, with a total increase of over RMB70 billion in assets for key customer segments. These achievements have driven the rapid and steady development of ourretail business.
Changsha Branch’s retail banking team conducted special training on digital transformation and application of new media tools.
The Bank has developed an enterprise-level digitalecosystem platform that collaborates with theindustry-specific digital finance sector. Centeredaround the domains of "real estate, automotive,education, healthcare, travel, and shopping", wehave constructed a broad digital account systemencompassing personal accounts, e-wallets, and openequity, exported the open banking capability, andbuilt a closed-loop ecosystem that integrates digitalaccount management and ecosystem engagement.
We have integrated six key processes - the modelengine, marketing events, strategy management,lead distribution, channel engagement, and feedbackcollection - seamlessly into the marketing hub, sothat we can realize online marketing management,scenario-based customer marketing, centralizedlead distribution, closed-loop channel engagement,and real-time feedback collection.
We have established a multi-dimensionalperformance indicator system with tightened controlat the source, constructed a real-time indicatorsystem for "golden data" such as aggregate nancialassets and deposits, created a real-time eventmarketing repository for significant transactionsand maturity of wealth management products, andenhanced precise customer portraits with six majordimensions and over 1,000 core labels.
Building an elite task force to drive the rapid, eective implementation of"Fast Win" project
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Fully implementing the development plan for digital technology, the Bank works to develop new businessand commercial models based on advancements in "business technology, digital technology, and scientictechnology." Concurrently, we have expedited the innovation of industry-specic digital nance to facilitatethe ecosystem-based transition of all our customers.Leading Digital Transformation withIndustry-Specic Digital Finance
Establishing three major business
development directions
We have defined three primary business directions:
movable assets, transactions, and logistics. Oureorts are focused on constructing an ecosystem withmovable asset management at its core, alongside theprovision of digital financing services for movableassets. Based on the digitization of traditionalindustries and trade, we deliver digital supply chainnancing services and provide comprehensive digitalfinancial solutions centered around modern digitallogistics.
Developing ve categories ofdigital nancing productsLeveraging advancements in "business technology,digital technology, and scientific progress", wehave introduced five business categories under theindustry-specific digital finance 3.0 model: ExpressDigital Loans for Orders, Receivables, Distributors,Collateral, and Platforms, providing substantialnancial support for the entire industry chain.
Motivated by an unwavering dedication to innovation, we have comprehensively recalibrated the developmentdirection of our industry-specic digital nance business and actively delivered digital nancing products tostrengthen the foundation of our industrial ecosystem services.
Dening business development direction and products
We actively explored the utilization of industry ecosystem data and extensive data to drive two core technological innovations in digital credit assessmentand intelligent risk control: "algorithm + model + rules", supporting the steady implementation of innovative models in industry-specic digital nance.Implementing meticulous internal control management to establish a fulllifecycle risk management mechanism for risk models. This includes managingmodel design, review, deployment, testing, release, monitoring, optimization, anditeration to ensure precise control over the entire model process.Enhancing product standards and accumulating underlying data assets. Fordifferent modes and products with specific risk control requirements, list ofstandardized data requirements and model strategies were developed forproducts like government procurement financing, military industry financing,liquor distributors financing, and online freight financing, thus accumulatingunderlying data assets for industrial digital nance.
Improving approval eciency by transitioning from "manual approval" to "model-driven automatic approval" for project credit evaluations. By optimizing modelsand iterating rules based on accumulated project data, the level of precisionin model-based approvals has been continuously enhanced. Customer creditapprovals are now fully automated through the model.Creating risk control expertise by establishing a 12-grid system for the industry-specic digital nance risk control models. This risk control system is graduallyrened to align with the ve major business models, evolving towards modularity,standardization, and productization.Applying quantitative models to enable data-driven decision-making. Quantitativemodels have been applied in select industry-specic digital nance projects topredict nancial default risks and ecosystem transaction stability for nancingclients, as well as to forecast the probability of client churn.
With a focus on unleashing innovation vitality, we are forging innovation teams to provide reliable support forthe innovative development of our industry-specic digital nance business.Centered around the branch contracting and Head Oce undertaking model, we revamped the organizational structureof both the Head Oce and branches, and reshaped the organizational structure of the Industry-Specic Digital FinanceDepartment at the Head Oce. This has led to the establishment of an agile organization comprising the front, middle, andback oces at the Head Oce, providing systematic support for branch operations.Building agile and exible teams
Guided by the principles of agility, standardization, and efficiency, we are implementing a process-driven projectmanagement approach. Following the stages of the initial phase, trial operation phase, and formal operation phase, weexecute a series of steps including project initiation, team formation, project research, solution development, modelevaluation, risk assessment, sandbox testing, technological development, trial operation, pilot testing, adjustment, andretrospective analysis.
Creating standardized project operation processes
We have built a comprehensive system that incorporates innovation tolerance (rapid write-o mechanism, innovation riskreserve mechanism, due diligence exemption mechanism), wealth creation incentives (mechanism for labor-driven wealthcreation), collaboration (inter-branch profit distribution mechanism, cross-functional profit measurement mechanism,ecological comprehensive pricing mechanism, ecological customer account service coordination mechanism), and problem-solving (mechanism for issue collection and resolution). These nine mechanisms across four aspects ensure continuousenhancement of support and guarantee for innovation.
Establishing a scientic innovation mechanism
Building an independent full-process system platform to empower the innovative development of industry-specic digital nance with technology
The platform possesses the capability to support the implementation and operation of industry-specic digital nance projects under ve major models. Wehave established R&D teams for processes, channels, and risk control based on these models to enhance development eciency and capacity.Improving the industrial digital FinTech platform around the three major systems of industrial digital nance processes, risk control, and monitoring
We have enhanced our business process system for industrial digital nance, providing digitized nancing services with features such as ecosystem-basedservices tailored to industry-specic customer segments, real-time data-driven processes, agile process implementation inspired by Lego-like building blocks,and the application of advanced digital technologies.Building a digital, standardized, automated, and intelligent industry-specic digital nancial credit platform
Key focus areas include building project-level model monitoring capabilities, risk alert and resolution processes, and business reporting functionality.Building a preliminary industrial digital nance credit monitoring and operations platform
We have launched our bank's first electronic bond certificate product called "DragonBond", enabling online issuance, circulation, splitting, and online application for digital factoringfinancing services.Completing the foundational infrastructure for the industrial chain nancial service platform based on blockchain technology (known as the DragonChain platform)
Spotlight
Strengthening the organizational mechanism support
Building an independent full-process system platform
Establishing a digital credit and digital intelligent risk control system
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The Bank has made remarkable strides in the industry-specic digital nance business, signicantly amplifying its overall market inuence.
In November 2023, the Bank, in collaboration with the China Association ofWarehousing and Distribution and the China Materials Storage & TransportationAssociation, jointly hosted the 2023 China Financial Warehousing Innovationand Development Conference and the Huaxia Bank Digital Finance Summit. TheSummit focused on the collaborative construction of a digital warehousing newinfrastructure among the industry ecosystem partners. During the event, weunveiled our industry-specic digital nance brand "Digital Wing Pass" alongsidea series of products, theWhite Paper on Digital Warehousing for Movable AssetsFinancing. We shared innovative achievements in the field of industry-specificdigital nance to further strengthen collaboration with ecosystem partners.
The project titled "Research and Application Demonstration of Key Technologiesfor Penetrative Supervision over the Innovation of Industry-Specic Digital AssetFinance," led by Huaxia Bank, passed the project approval defense organized bythe Ministry of Science and Technology, and was ocially approved. As the rstnational-level research project undertaken by the Bank, the project is poisedto significantly enhance the Bank’s leading position in the industry-specificdigital nance sector, allowing it to secure a commanding role in the industry.Additionally, the Bank hosted, for the first time, an expert symposium on therevision of the national standardWarehouse Receipt Fundamental Element andForm, participating in the formulation of industry standards.
Building the brand visibility of "Digital Wing Pass"Building a leading edge
As of the end of 2023, the Bank’s industry-specic digital nance business hadbeen implemented in over 20 sectors, including high-end manufacturing, steel,energy, chemicals, warehousing, logistics, agriculture, animal husbandry, liquor,and government procurement, served 659 ecosystem customers, with RMB 2.689billion extended in credit.
Achieving breakthroughs in business development
In the pursuit of collaborative, systemic, open development for all, we have fostered extensive collaboration with entities in industries, technology,platforms, and other elds, aiming to enhance ecological synergy.
In August 2023, the "2023 Collective Soaring Action" Ecosystem Partner Conference, co-organized by Huaxia Bank and Longying Zhida (Beijing) Technology Co.,Ltd., was held in Beijing. Aimed at serving the collaborative creators of the industrial ecosystem, the "2023 Collective Soaring Action" ecosystem partner systemfocused on industry direction and customer needs, and collaborated with partners in technology, industry, nance, and other sectors. Together, they enlistednearly a hundred outstanding partners to collectively shape ecological scenarios, deliver a comprehensive "technology + nance" solution for the real industries,enhance the digital transformation of enterprises in traditional industries.
Developing a partner ecosystem
In collaboration with over 10 institutions, including Huawei and ZechFin,the Bank has calibrated the development of movable assets financingbusiness toward the "digital credit for tangible assets." Together, wehave established a digital nancing ecosystem for movable assets andreleased theWhite Paper on Digital Warehousing for Movable AssetsFinancing.
We organized an expert symposium for the revision of the nationalstandard titledWarehouse Receipt Fundamental Element and Form co-hosted by the China Federation of Logistics & Purchasing and the ChinaAssociation of Warehousing and Distribution, and helped formulateindustry standards in the financial warehousing sector with over 50experts representing more than 20 regulatory bodies, associations, andbanking institutions.
Exploring new models of digital nanceHarbin Branch, in partnership with Heilongjiang Xiangyu Agricultural Products Corporation, has introduced its rst full-stack digital industry nancing project. Byemploying the "digital + grain bank" approach, it has established a complete data monitoring model, and oers grain brokers 24/7 contactless nancial servicescovering digital credit approval, online loan disbursement, and intelligent post-loan management. The project caters to the nancing needs of brokers in the grainstorage scenario and has shortened the supply chain and reduced circulation costs.
Case
In the 2023 selection of best practices of digital transformationby listed companies, organized by the China Association for PublicCompanies, the Bank was honored with the "Excellent Case"award.
Co-building the industrial digital ecosystem
Co-building the industrial ecosystem alliancePromoting the establishment of industry standards
Achievements in Business Development
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At the end of 2023Personal loansTotal public welfare donations
Employees in the finals of the 2nd StaffSports Meeting held by the Huaxia Bank
Huaxia Bank has always adopted the people-centered philosophy, embodying thehumanistic aspects of financial work. We prioritize the protection of financialconsumer rights and interests, devote ourselves to social welfare and charity andempower our employees to achieve self-realization. Together with people from allwalks of life, we strive to build a "sustainable and better" society.
CSR Practices
SocialStaying True to the OriginalAspiration to Write a SplendidChapter in the New Era
Total workforceEmployee training sessions held
RMB
724.87
billion
40,2937,829
RMB
70.579
million
Accelerating the transformation of market development modes
?We remain committed to serving the "high-end industries" and "high-end industrial sectors," actively supporting the national manufacturing industry, strategicemerging industries, green initiatives, and the dual-carbon strategy, as well as the private sector. Based on the "3-3-1-1" customer strategy, we providecomprehensive nancial services to central SOE enterprises, local state-owned enterprises, listed companies, and companies listed on the National Equities Exchangeand Quotations.?Prioritizing customers operating in 18 emerging sectors, including new energy vehicles, integrated circuits, and green and dual-carbon, we provide services toleading companies in emerging industries, specialized and sophisticated SMEs, and scientic and technological innovation enterprises.?We strengthen comprehensive nancial services across the entire industrial chain of key industries. Utilizing four ecosystem categories: industry, nance, platform, and park, we penetratethe industrial, equity, and nancial chains of core clients, implement a large, medium, and small ecosystem approach to achieve "1+N+N" customer development, and promote horizontal andvertical extension of the ecosystem.?Focusing on the needs and "pain points" of customers throughout the entire chain, the Bank has actively tapped into the core customers in the industry chain, andengaged upstream and downstream clients in the broader business network through means such as online platform docking and customized development of digitalproducts.
Improving Customer Service
Guided by customers’ needs, the Bank has promoted organizational and institutional changes, improved the ecological customer servicesystem to upgrade the customer service model and improve customer service capabilities.
To effectively implement national and regional industrial development strategies and diligentlyexecute the2021-2025 Huaxia Bank Development Plan, we are committed to advancing thetransformation of our nancial business. We have always prioritized a customer-centric approach.In 2023, we fully initiated the ecological transformation of customers service and put our focuson increasing customer amounts and improving customer service capabilities. This transformationhas seen a shift in our customer acquisition model from a singular approach to an ecological andmass expansion strategy, while our service methods have evolved from offline to a seamlessintegration of online and oline channels. By gradually accumulating transaction data within ourecosystem, we have redened our customer service and risk control frameworks, bolstering ourcapacity to track customer nancial transactions continuously and comprehensively cover customeropportunity businesses, thus eectively addressing the dual challenges of risk management andcustomer acquisition. We’ve also introduced digital technology into ecological customer service todeeply understand customer needs and update the communicating methods with customers, thus toprovide integrated solutions with multi-channel integration capabilities.
New ecological customers developed20,000+
At the end of 2023
Growth rate of corporate customers
4.1
%
Deepening the role of payment business in integrating scenarios
?We are continuously enhancing our capacity for scenario-based payment acquisition, deeply rooted in societal welfare and the real economy. Our focus lies inconstructing consumption scenarios such as wholesale markets, dining establishments, and community properties. We aim to provide high-quality and convenientpayment and settlement services to individual customers including community residents, market vendors, and merchant members.?We have constructed an online payment closed loop, forming an integrated nancial service tool encompassing "payment, clearing, wealth management, andnancing." By expanding the scenario ecology to include "account + payment, rights + payment, investment + payment, and nancing + payment," we aim to provideservice assurances for essential life scenarios such as mobile payment and combined payment one-stop settlement with Beijing medical insurance cards, as well asboarding code payments during the Asian Games period.
Focusing on aggregating enterprise-level service capabilities?We aggregate retail service capabilities to build an enterprise-level retail ecosystem, launching and promoting functions such as electronic wallets, ecological cashregisters, aggregated payments, prepaid, deposit supervision, consumer vouchers, pension accounts, and open points rights.?Centered around the government's eorts to stimulate consumption and provide convenient services for residents, we have developed a retail ecosystem within athree-kilometer radius of our branches. This initiative involves empowering smart branches with mobile banking, revitalizing oline branches with an online ecosystem,and enhancing branch productivity with digital operations.?We have bolstered our enterprise-level online customer service capabilities. This integration has enabled us to enhance the overall customer service experienceacross key scenarios, while continuously rening our mobile marketing matrix through the utilization of corporate WeChat accounts, customer manager APPs, andcloud studios. Through these eorts, we aim to aggregate scene ecology co-building capabilities and elevate customer online service capabilities at the enterprise level.
Creating marketing support tools and products
?We have constructed a "sustainable and profitable" corporate-oriented digital marketing model, advancing digital ecological map research through big data,articial intelligence (AI), and other technologies.?We have developed and launched an ecological map platform, realizing functions such as industry insight, enterprise insight, industry map analysis, and outreach toenterprise opportunities.?We are committed to building an ecological customer nancing platform, aiming to achieve "online application - model establishment - ecological credit limitapproval." Within this credit limit framework, we aim to facilitate online approval, contract signing, loan disbursement, and post-loan servicing.?We have built and launched the "Huaxia Financial Cloud" platform, advancing the second phase of functionality and system iteration. By incorporating platformsettlement functionalities into ecological customer business scenarios, we aim to continually accumulate transaction data and facilitate cross-validation of this datain customer approval and risk control processes.Building ecological customer service sytem
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Winning the title of "Top 100 Model Branches for Civilized and Standard Service in Banking Industry"CaseIn June 2023, the Binzhou Sub-Branch Business Department of Jinan Branch was honored with the title of "Top 100 Model Branches for Civilized and StandardService in the Banking Industry".
Promoting outlets upgrade?We are deeply committed to advancing the digital transformation of our outlets. This involves enriching self-service scenarios, optimizing business handlingprocesses, and ensuring that over 95% of high-frequency personal transactions can be conducted via self-service channels across the bank.?We continue to optimize the layout of outlets to address nancial service gaps. To this end, we have established 13 new sub-branch outlets throughout the year.Moreover, 92 outlets were relocated and remodeled, supporting the high-quality economic development of the local areas.
Optimizing the experience of customer service?We have been building the product matrix on the mobile App featuring "fast with new capability, easy to use with new services, beautiful with new experience,good discounts with new ecology, fun with new idea". In addition, we have been enriching its service functions with continuous eorts. Our goal is to create anintelligent and online service system, with the iteration speed of making progress every week and month.?Based on brand new visual standards, we have comprehensively redesigned the account, fund, and batch transfer functions on our online personal bankingplatform. We have also introduced brand services such as "Enjoy Account+", "Prot Wealth+," and "Quick Transfer+" on online personal banking.?We have expanded the scope of credit card self-service channel business services. By integrating our workow system with the Hua Cai Life Mobile App,customers can conveniently upload the business material directly through the app, eliminating the need for traditional fax-based processes and repetitive phonecalls.?We have launched multiple business functions such as online application for corporate VAT invoices, online application and oline delivery, and widespreadapplication of electronic business licenses. These functions have eectively increased the eciency of bank teller operations, reduced customer waiting times atthe counter, and improved overall service response eciency.?In accordance with the requirements of theNotice on Promoting the Implementation of the New Version of Foreign Permanent Resident ID Card EligibilityModication to Improve the Convenience of Financial Services for Foreign Nationals, we optimize the handling procedure for foreign nationals' permanentresident ID cards.?The Credit Card Center and telephone banking have enriched intelligent self-service voice scenarios, including features such as annual fee inquiries, repaymentstatus inquiries, card renewal status inquiries, and reporting lost cards, which could assist our customers with self-service transactions.?With a unified whole-process operational model encompassing pre-event prediction, mid-event monitoring, and post-event analysis, the 95577 CustomerService Center has realized multi-channel communication through "call, text, and video," multi-faceted service provision including "business and service," and acombination of "AI and human" interaction for quality control. This comprehensive approach has signicantly enhanced the customer service level.
Intensifying services for customers with special needs?We have implemented a dedicated real-time service mechanism to ensure the quality and efficiency of wage payments for migrant workers, and addressimmediate concerns related to wage payments for migrant workers. In 2023, we facilitated wage payments for 360,000 migrant workers, totaling RMB 2.7billion.?We promote the New Citizen Loan and other nancial services aimed at accurately distinguishing new citizen groups among credit customers and fullling thedemands of new citizens in housing decoration, vocational skills training, and children's education according to the dierent life scenarios of new citizens. Wehave also achieved the online acceptance of personal housing mortgage loans and streamlined the online business process for consumer loan products, enablingfunctions such as online application, withdrawal, real-time repayment, and increasing the function of anti-fraud alerts before withdrawals. These enhancementsnot only realize convenient services, but also enhance the level of product risk control.?We have adjusted the interest rates on existing mortgages for personal rst-home loans legally and orderly.?Through collaboration with local governments, supervision departments and other institutions , we have actively fullled our responsibility in delivering nancialservices aimed at "ensuring the delivery of housing." This includes providing nancial support for relevant projects and oering exible repayment optionsthrough loan extension services to project borrowers.
Strategically organizing our bank outlets, we fully commit to developing digital nance channels and continually optimize our customer service to enhanceoverall customer satisfaction. Our aim is to provide customers with more convenient and personalized nancial services, fostering a warmer and moreengaging experience.
Optimizing customer service
In 2023At the end of 2023
Customer satisfaction of 95577 CustomerService Center
99.65
%
Self-service banking machines3,736
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Improving the People’sWell-beingIn response to the needs of the people, we focus on key areas such as pension nance and promoting consumption to constantly expand ourbusiness scope, advance product innovation, and safeguard the pursuit of a better life for all.
In line with the directives of the Party Central Committee, the State Council, and regulatory bodies to promote the development of the pension industry,Huaxia Bank has earnestly implemented the principles outlined in the National Financial Work Conference, and strongly supported the development ofprivate pension as the third pillar, making signicant contributions to nancial services for elderly care.
Huaxia Bank has established a dedicated oce to provide stronger nancial services in key areas such as elderly health and smart elderly care, promotingthe development of nancial business in the elderly care industry. In March 2023, the Bank ocially joined the Pension Business Committee of the ChinaBanking Association, becoming one of the 15 member units of the committee.
Faced with the aging trend, the Bank has made continuous eorts to improve its nancial product system. By developing nancial scenarios tailored toprivate pensions, we aim to build a new ecosystem for elderly care through online and oline service channels, the establishment of rights systems, theadvancement of smart elderly care, and the provision of asset allocation services.
Providing better products and services
Multi-domain eorts to promote the development of the elderly care sector
Building a cloud supervision platform to ensure thesafety of elderly care funds
Improving nancial services for elder care
Case
CaseCase
Smart elderly care services Utilizing a combination of "short-term working capital loans + medium and long-term working capital loans + bank acceptance drafts+ domestic letter of credit + fundraising supervision", Shanghai Branch has provided a comprehensive nancial service package totaling RMB 400 million to ademonstration enterprise in the smart health elderly care sector.Institution-based elderly care Chongqing Branch has provided nancing of RMB 52 million through xed asset loans for the state-owned nursing home project,facilitating the market-oriented reform of regional public elderly care institutions. Wenzhou Branch has played an active role in supporting the local "Municipal-Level Health Care Demonstration Project" by extending RMB 100 million in xed asset loans.Medical and health care. Qingdao Branch has taken proactive steps to engage with the unicorn enterprises in the medical and big health sectors. As part of theseeorts, the branch has extended nancing support totaling RMB 250 million to a pharmaceutical group and its subsidiaries.
The Yantai Sub-branch of Jinan Branch secured the contract to overseethe prepaid funds of local elderly care institutions. The branch hasintegrated the "Cloud Funds Supervision Platform" with the elderly carefund supervision platform of the Yantai Civil Affairs Bureau, enablingit to provide fund supervision services for elderly care institutions.This initiative fulfills the civil affairs department's needs for openingand managing prepaid funds supervision accounts, supervising fundtransactions, and providing transaction and account information servicesfor elderly care institutions.
Tianjin Branch regularly organizes wealth salons for seniors, providingclients with exclusive pension wealth management, pension FOF funds,and other insurance products. Through partnerships with insurancecompanies, we conduct pension-themed salons to assist elderly clients inpension planning.
As one of the 23 banks authorized to oer personal pension services, westrive to provide maximum convenience for clients seeking to open andinvest in their pension accounts for value preservation. Currently, weoer six account opening channels, including branch counters, mobilebanking, personal online banking, branch self-service banking machines,WeChat mini-programs, and H5 links.We have launched the exclusive asset allocation service "Yi YangBan VCare," prioritizing our VIP clients. This service incorporates theconcepts of currency liquidity, matchable allocation, return protability,and sustainability examination into elderly asset allocation schemes andservices.
We have created a non-financial rights and benefits system fordomestic and international online medical services, family doctors,premium physical examinations, consumer shopping, home-basedservices, elderly care, health and wellness travel, and educational travelassistance.
We have accelerated the diversication of individual pension accountinvestment products. Our eorts include launching 4 retirement savingsproducts, introducing 48 retirement fund products for access anddistribution, along with 2 retirement insurance products.We have supported governments and enterprises in constructing the"Smart Elderly Care" platform, facilitating the tripartite supervisionof prepaid funds for elderly institutions. Additionally, we have initiatedpilot applications of digital RMB currency in the elderly service industry,aiming to create an integrated Government-Bank-Company (G-B-C)elderly service ecosystem.
We have improved elderly care services with electronic channels suchas mobile banking and personal online banking to address the digitaldivide faced by elderly customers.
We have strengthened the cooperation of branches with community-based elderly care institutions and universities for the elderly. Thisinitiative aims to create specialized channels for providing elderly careservices.
Facilitating nancial services for elderly care
Supporting the construction of the elderly care system
Making innovations in elderly care products and services
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Guided by the policy of "expanding domestic demand and promoting consumption", we have spearheaded a series of activities under the "Beautiful Hua Xia"consumption season. This includes launching events like the "Colorful Hua Xia Shopping Festival" in Beijing and the "Shenzhen Hua Xia Shopping Festival -Illuminating a Better Life." Furthermore, we have implemented business initiatives alongside merchant consumption subsidies aimed at fostering developmentand improving livelihoods. Additionally, we have focused on cultivating the online consumption ecosystem to cater to the nancial needs of businesses acrossvarious consumption scenarios. These eorts are geared towards boosting market condence and unleashing consumption potential.
?We have expand customer payment channels and strengthened our partnershipswith UnionPay, top-tier merchants, and various acquiring institutions. Focusingon established merchants such as Taobao, Tmall, Pinduoduo, and Xiaomi, wehave introduced scenario-based installment services on the Alipay platform.
?Through partnerships with Taobao, Tmall, and Pinduoduo, we have offereddifferent patterns of payment including interest-free installment plans andinstallment discounts.
?Tailored to resident consumption preferences,the Credit Card Center has organized discountpromotions at Sam's Club and Grand Joy inBeijing, as well as consumption discounts fordining at Wanda Plaza.?We have introduced travel discounts forUniversal Beijing Resort to support therecovery of the tourism industry.?We have collaborated with e-commerceplatforms like Douyin, Pinduoduo, and thedining and travel categories of Meituan toconduct online scenario-based marketing.
?We have launched low-threshold and easy-to-participate promotions, offering rewardssuch as cashback with unlimited spendingthresholds, instant discounts for consumption,shopping vouchers, and coee coupons.?We have introduced the "Hua Cai Elite Club"special activity for customers with high-valuespending and installment needs, oering morerewards for more spending.Unlockingconsumptionpotential to enhance
nancial services
Persisting in scenario-basedinstallment ecology
Innovating inscenarios tostimulate needs for
consumption
The CreditCard Center
Implementing various actions to support businessand benet the publicCase
Guiyang Branch, in collaboration with China UnionPay, has initiated aseries of economic stimulus activities aimed at promoting consumerspending. These initiatives span across various sectors including tourism,dining, and retail. Moreover, the branch has prioritized public welfareactivities such as discounts on utilities and groceries.
Organizing"the Colorful Shopping Festival in Beijing"CaseIn June 2023, the Head Oce and Beijing Branch hosted the "the Colorful Shopping Festival in Beijing" as part of the 2023 Beijing Consumption Season. Thisevent aimed to promote the expansion and enhancement of consumption, thereby supporting the construction of Beijing as an international consumption center.The event featured a "1+E+4" system:"1" represented the Launch Ceremony for Summer Solstice, which included various activities such as benecial measuresfor residents, entertainment projects, and national trend activities; "E" represented the online digital consumption sub-venue. With the Bank's consumer vouchersas the core, the Bank collaborated with online platforms such as Meituan and Ele.me to stimulate online digital consumption;"4" represented four main thematicsummer consumption scenarios, including activities targeting retail, beauty, digital, and self-improvement products, under the themes of "Summer Joy, KeepGoing"; activities catering to summer demands such as special delicacies and cooling consumption, under the themes of "Summer Coolness, Quality Enjoyment";activities fullling travel demands of graduates and parent-child families, under the themes of "Summer Travel, Graduation Gifts"; activities focusing on the"Romantic Economy", under the theme of "Autumn Romance, Love on Qixi."
Deepening the ecological development ofconsumption scenariosCase
The Bank has reached a strategic cooperation agreement with LuckinCoee to jointly issue co-branded credit cards. We allocated a consumercredit of RMB 10 billion. Through the initiative of "Ten Thousand Storesfor RMB Ten Billion of Revenue", the Bank could integrate bankingproducts and services with scenario-based support to create a newdigital consumption ecosystem.
Igniting the "Beautiful Hua Xia" consumption season
Personal loans (excluding credit cards)Personal consumption loansAt the end of 2023
Personal loans
among them
RMB
535.989
billion
RMB
104.526
billion RMB
724.87
billion
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Engaging in Social Welfare
In fullling our corporate social responsibilities, we vigorously support noble causes and actively participate in public welfare initiatives suchas disaster relief and providing assistance to those in need. We have established the public service brand "Jinghua Volunteer" to embody thespirit of volunteerism."
We have continued our activities and practices in various social welfare elds, provided resourcesfor vulnerable groups and encouraged our employees to actively participate in public welfarevolunteer activities and contribute to social charity with practical actions.
Dedicating to charity
Total public welfare donations
RMB
.
millionIn 2023
In 2023
Volunteer activities oeredEmployees involved in volunteer activitiesVolunteer activities organized
Supporting the charity causes in Hong KongCase
In December 2023, Huaxia Bank donated HKD 1 million to the Tung Wah Group of Hospitals, the oldest and largest local charitable institution in Hong Kong. Thiscontribution aimed to support the development of local elderly service, showcasing the commitment of Chinese nancial institutions and state-owned enterprises tosocial welfare.
Building the "Jinghua Volunteer" BrandCaseThe Bank has standardized its youth volunteer brand, exemplied by "Jinghua Volunteer". Following the concept of "Hua Xia youth build a better future together",the Bank is dedicated to establishing a youth volunteer service system that is "based in Beijing and serves the whole country", thereby promoting the branding andinstitutional development of its volunteer services. In March 2023, the Youth League Committee of the Head Oce organized an online selection for public welfarecases under the theme of "Jinghua Volunteer, Promising Youth". This initiative aimed to advocate the spirit of volunteerism, emphasizing values such as dedication,friendship, mutual assistance, and progress, coinciding with the 60th anniversary of Chairman Mao's inscription "Learn from Comrade Lei Feng". We gathered59,000 votes and 459,000 views.
Caring for sanitation workersCase
Donating to construct "Huaxia Road"Case
Zhengzhou Branch is dedicated to improving the living environment of the assisted village. It donated RMB 288,200 to Qiangongtang Village, Weixian Town, XunxianCounty, Hebi City, specically for subgrade leveling of the two main roads and the construction of the supporting pipeline network in the village. In June 2023, theHuaxia Road in the village was completed and passed the inspection check.
In 2023, the "Growth Fund of Huaxia Bank to Help Sanitation Workers'Children" continued to provide nancial help for sanitation workers’ children for theireducation and families with diculties. The Bank helped 300 children from environmental sanitation families in Beijing, and each was provided RMB 1,000 ofbursaries. A total of RMB 300,000 of charity was granted. At the same time, 10 families of environmental sanitation workers in diculty were supported, and RMB5,000 was issued to each family, with a total amount of RMB 50,000 granted. By the end of 2023, Huaxia Bank's "Growth Plan for Sanitation Workers'children"has been carried out for 9 years, and the Bank has provided a total of more than RMB 10 million in nancial donations to this public welfare project.
Old dirt road of the Qiangongtang VillageNew "Huaxia road"of the Qiangongtang Village
During the winter in 2023, Changchun City experienced consecutive snowfall and strong winds. In responseto these adverse weather conditions, Xingfu Street Sub-branch of Changchun Branch took proactive stepsto fulll its social responsibility by organizing the "Caring for Sanitation Workers and Bringing Warmthin Winter" activity. Led by the Head of the Sub-branch, sta members ventured out onto the streets andextended invitations to outdoor workers like sanitation workers, to take a break. They provided hot waterfor refreshment and oered the opportunity to recharge their mobile phones, oering support and warmthduring challenging times.
18,221.5 hours18,5451,658
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In response to rare heavy rainfall, sudden earthquakes, and other disasters, Huaxia Bank acted swiftly to provide prompt assistance. Weefficiently organized various financial services and rescue efforts, dedicating all our resources to post-disaster reconstruction. Through ourconcerted efforts, we aim to spread the power of mutual assistance and contribute to the recovery and rebuilding process in affected areas.
Engaging in disaster relief
Dedicated in ood control and post-disaster reconstruction in BeijingCase
Donation ceremony of Huaxia Bank at Gansu Provincial Charity Federation
Supporting earthquake relief eorts in Gansu and QinghaiCase
In December 2023, a 6.2-magnitudeearthquake struck Jishishan County in Gansuprovince. The Bank promptly initiated disasterrelief eorts. We contributed RMB 1 million tothe aected areas through the Gansu ProvincialCharity Federation. Lanzhou Branch also tookswift action by donating RMB 37,000. In MinheCounty of Qinghai Province, where some areassuered signicant impact from an earthquake,employees of Xining Branch donated RMB18,100 spontaneously and forwarded thedonations to the Red Cross Society of MinheHui Autonomous County.
In July 2023, Beijing was hit by a heavy rainstorm. The Head Oce established the "Post-Disaster Recovery and Reconstruction Support" working group, dedicatedto assessing the impact of disasters on our clients and providing them with targeted post-disaster nancial services. Our goal is to alleviate the burdens anddiculties faced by aected enterprises and individuals. We strictly prohibit forced early repayment of loans, loan suspension, and arbitrary termination of loanagreements. In response to reasonable loan renewal requests from ood-aected enterprises, we oer loan renewal services without requiring repayment of theprincipal, thereby easing repayment pressures on small and micro-sized enterprises. Additionally, through communication with Chongho Bridge, we facilitate loanextensions for customers with Inclusive Agricultural Loans and apply for credit reporting exemptions for aected rural households. Furthermore, we have introducedthe "Standing Together against Flood Disaster" service plan to support economic and livelihood reconstruction in disaster-stricken areas through tangible actions.Mentougou Sub-branch of Beijing Branch swiftly initiated emergency oodcontrol measures. It ensured the safety of customers, promptly transportedoperational cash, and protected operational equipment. Despite the temporaryclosure, the Sub-branch efficiently reviewed critical documents online andsuccessfully completed the submission of six L/C transactions and thetransfer of forfaiting materials.
Fangshan Sub-branch of Beijing Branch delivered the rst batch of disasterrelief materials to the nancial oce in the district and provided emergencyloan services to state-owned enterprises and district-controlled enterprises. Itextended over RMB 790 million in loans for the purposes of disaster recovery,urgent repair of river channels in Fangshan District. Additionally, the Sub-branch offered loan renewal services to affected MSEs without requiringthem to repay the principal, and granted new loans to repay the old ones,with the total amount exceeding RMB 560 million. These eorts assisted inthe business recovery of market entities and the resumption of production inFangshan District.
Employees from Mentougou Sub-branch of Beijing Branch carried out relief workFangshan Sub-branch of Beijing Branch supports post-disaster reconstruction
Providing nancial support to disaster-stricken areasCase
In July 2023, Hebei Province was hit by severe oods. Shijiazhuang activelysought policy support and favorable loans from the Head Oce, visited creditcustomers and expedited the approval of reconstruction funds. Furthermore,the Branch promoted loan renewal services without requiring repaymentof the principal and offered loan extension services. It implemented feereduction and interest concession policies for SMEs and established greenservice channels to optimize procedures for personal customers regardingreporting lost or reissuing. Additionally, the Branch applied for a specialdonation of RMB 800,000, and employees voluntarily donated RMB 132,000from employees’ voluntary donation, to help the targeted county for post-disaster reconstruction.
Langfang sub-ranch of Shijiazhuang Branch visits and donates reliefsupplies to the aected people
Organizing a voluntary blood donation eventCase
The Hohhot Branch took proactive measures upon learning about the shortageof blood supply in the local area. Themed "A Drop of Blood, A Gesture ofCare - Hua Xia's Bond Between You and Me", the event saw a total of 93individuals successfully passing the screening process and contributing acumulative blood donation of 32,700 milliliters. The Branch was granted thehonor of "Outstanding Contributor to Voluntary Blood Donation" by the InnerMongolia Autonomous Region Blood Center.
Making charitable donation to schoolCase
In December 2023, Xi'an Branch visited Cao Ping Town Central PrimarySchool of Zhashui County and made charitable donations. In collaborationwith charitable organizations, the Branch donated 520 books, 422 cleaningkits, and 36 warm care packages. These donations were aimed at extendingcare and blessings to rural students, while also conveying the warmth andcompassion of Huaxia Bank.
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Deepening the Care for EmployeesWe adhere to a people-oriented philosophy, anchoring our eorts in the new development stage, and actively cultivating our talent pool. Weenhance the employee training and education mechanism, providing our employees with a platform for realizing their self-value, and workinghand in hand with them to embrace a better future.
We have established a comprehensive human resources management system and management policies, centered around the strategic developmentplanning of the Bank. These policies are in strict accordance with laws and regulations such as theLabour Law of the People's Republic of Chinaand the
Labor Contract Law of the People's Republic of China. We fully leverage the role of the Employees’ Congress in democratic management and supervision,ensuring the protection of employees' legitimate rights and interests on all fronts. This contributes signicantly to the high-quality development of the Bank.
Safeguarding employees’ legal rights
Following the requirements of the Trade Union Law of the People's Republic of China, we have established labor union organizations at our Head Oce,all branches and sub-branches. We select employee representatives through votes and regulate the operation of the Employees’ Congress in accordancewith theManagement Measures for Employees’ Congress of Huaxia Bank, ensuring employees' rights to information, participation, expression, supervisionand other legal rights.
Employees with a Master's degreeEmployees with a Bachelor's degreeEmployees from Junior college or belowAged 35 and below
Aged 46-55Aged 36-45Aged 55 and above
By educationalbackground
63.08%
21.37%15.55%
By agestructure
1.81%
49.77%37.13%
11.29%
In 2023
Employees’ Congress meetings heldSta meetings held
Participants in totalProposals receivedConstructive suggestions receivedAdopted and implemented
Grassroots employees attendedCaring about employees’ physical and mental healthCaseNingbo Branch carried out customized health management services for the employees and set up "health cabin", equipped with various health facilities, commonlyused medicines and health books. The cabin is also equipped with health assessment instrument to remind the employees to focus on the change of their healthindicators and pay attention to sub-health problems; the face-to-face consultation and appointment service with experts have been provided to build healthprotection for employees.Lanzhou Branch initiated the "Employee Psychological Support Project". Through a range of activities, such as a psychological survey questionnaire, an "EmployeeVoice" mailbox, health lectures, a psychological counseling hotline, and stress relief activities, we aim to oer warm services and assistance to our employeesthroughout the year.
Practicing democratic management by holding Employees’ CongressCase
In 2023, Xiamen Branch organized and held six Employees’ Congress andelected the fourth labor union committee, and completed the re-selectionof the labor union committee; it has also reviewed welfare budget plans,performance appraisal methods and many other rules and regulationsinvolving the vital interests of employees, to fully protect the rights ofemployees to information, participation, expression and supervision.
Ethnic minoritiesLabor contract signing rateSocial insurance coverage ratePercentage of female employeesAt the end of 2023Total workforce
Talent recruitment: We uphold the principles of transparency, fairness,and impartiality in our talent recruitment efforts. Through a variety ofonline and oline channels, we conduct social and campus recruitmentinitiatives with the goal of establishing an outstanding employer brand.
Incentive and restraint mechanism: We continuously refine ourassessment and incentive mechanism, linking employees' compensationto their performance appraisal. Additionally, we reinforce assessmentsrelated to the protection of consumer rights.Equality and diversity: We strictly prohibit discriminatory practicesbased on gender, race, religious belief, or cultural background in ourrecruitment processes. Our commitment is to ght against any form ofdiscrimination and ensure equal opportunities for all candidates.
Compensation and benefits system: The Bank adheres to legalrequirements by signing collective contracts, salary agreements, andlabor contracts with employees. Additionally, we provide various socialinsurance to our employees. We prioritize setting reasonable workinghours and ensuring timely and complete payment of remuneration.Furthermore, all employees are entitled to statutory holidays and paidleave, and we strictly prohibit any form of forced labor.
1,985100
%
51.57
%40,293
%
6,340215605100
%
3,840
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Committed to the promotion of professional ability of employees as the core, we have built a tiered and classied training system. Closely followingthe strategic planning of the Bank, we have set major training programs focusing on six key areas: digital transformation, corporate finance, retailnance, nancial markets, risk management, and operational management. Our goal is to enhance all employees' transdisciplinary digital skills and coreprofessional competencies across these business segments. We have launched the Hua Xia College app, a digital knowledge repository platform thatintegrates knowledge management, training, learning, live streaming, exams, and other functions. Accessible via both internal and external networks, theapp caters to the diverse and evolving learning needs of our employees.
Organizing specialized training on ecological digital capabilityCaseThe Bank organized the "Ecological DigitalCapability Building" training camp for seniornancial managers in the Bank. This intensiveprogram combined cutting-edge theoreticalinsights with industry-specific practicalexperience, as well as a wealth of data andactual operational processes. Utilizing mindmaps, trainees were guided through theintricacies of industrial analysis, core tasks,fundamental strategies, and the digitalecosystem.
Participants in totalTraining sessions on CSR, with
Participants in total
At the end of 2023
Employee training sessions heldParticipants in total
Training sessions on environmental protection, with
Carrying out special training sessions fornew employees
Case
The Head Office of Huaxia Bank organized the "2023 Spark TrainingCamp for New Employees," along with specialized training sessions forsocially recruited employees. More than 400 recent graduates and morethan 4,000 socially recruited employees from both the Head Oce andsubsidiaries actively participated in these training initiatives.
Patriotic education for new employees was conducted at ZhejiangMemorial Hall of Revolutionary Martyrs
Supporting the capability enhancement ofyoung employeesCase
Shaoxing Branch held the "Huaxia Future Stars" managementtrainees symposium along with monthly learning salon activities. Thelearning salon was entirely planned, organized, and coordinated by themanagement trainees themselves. They took the initiative to invitesenior experts from various branches to facilitate analysis, discussions,explanations, and teachings, further strengthening the organizationalmanagement, comprehensive coordination, and theoretical-practicalskills of the management trainees.
Promoting employees’ career development
We organize unified onboarding training for all recentgraduates and socially recruited employees across theBank. These sessions are designed to help employees betterunderstand Bank's history and current standing, enrich theirprofessional skills development, and enhance their overallcompetence. Utilizing both online and oine methods, weaim to support new hires in seamlessly transitioning into theworking environment at Huaxia Bank.
For new employees
We continuously organize the Hua Xia Lecture specializedtraining series focused on digital transformation. Thesesessions feature internal and external instructors,covering topics such as digital economic development,artificial intelligence, the Internet of Things, and dataapplications. The objective is to boost the digitalliteracy of all employees and raise awareness aboutthe significance of digital transformation across theorganization.
For professional employees
214,1192,124
11,1267,829622,620
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Hosting the 2nd Sta Sports GameCase
We prioritize the physical and mental well-being of our employees by creating a harmonious working environment and establishing the Home ofEmployees. This dedicated space allows employees to readjust themselves. Moreover, we organize a range of cultural and sports activities to promote ahealthy work-life balance among our workforce. Recognizing the diverse needs of our female employees, retired sta, and those encountering challenges,we extend our support and care to them.
Helping employee balance work and life
We set up multiple interest groups and organize various innovative cultural and sports activities across platforms within and outside the Bank. Theseinitiatives are designed to enrich employees' interests, invigorate their leisure cultural experiences, and foster stronger cohesion and camaraderie amongthe team.
Sports competitions and activitiesorganized
In 2023
Under the theme of "Promoting Development with Unity and Cohesion, Embracing a Bright Future for Hua Xia" the Finals of the 2nd Sta Sports Game of the Bankwere successfully held in October 2023 at the National Stadium (Bird's Nest) in Beijing. Nearly 9,000 employee representatives of the Bank, along with theirfamily members, attended the event. After preliminary competitions in four regional zones, 47 representative teams from across the Bank, comprising nearly 900athletes, participated in the nal competitions featuring 14 events. After intense competition, the Guangzhou Branch, Urumqi Branch and Beijing Branch wonthe rst, second and third team prizes, respectively. Beijing Branch, Hua Xia Credit Card Center, Hua Xia Wealth Management Co., Ltd., Hua Xia FinancialLeasing Co., Ltd., and Longying Zhida (Beijing) Fintech Co., Ltd. each received the Special Contribution Award. Wuhan Branch, Wuxi Branch,Nanjing Branch, Jinan Branch, and the Head Oce departments each received the Excellent Organization Award.
Enriching cultural life
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The Bank remains steadfast in enhancing the employee service system. We are dedicated to oering continuous assistance and support to employeesduring various life events, including marriage, childbirth, illness, diculties, retirement, and bereavement, along with providing benets during majorfestivals. We prioritize the well-being of female employees and retirees, and extend assistance to those facing challenges, thereby fostering a greatersense of fulllment and happiness among our employees.
Key tasks in retired personnel services
Focusing on the key tasks of Huaxia Bank, we intensify our eorts to strengthen the political, ideological, and Party organizational construction for retired cadres. Thisincludes enhancing service concepts and implementing various initiatives to better serve their needs.?Conducting systematic training on the spirit of the 20th CPC NationalCongress for retired party members and cadres at the Head Oce.?Carrying out education on studying and implementing Xi Jinping Thought onSocialism with Chinese Characteristics for a New Era.?Organizing diverse Party-themed activities such as theoretical study,themed discussions, and eld visits.?Conducting special surveys with the theme of "Talking about Tradition,Discussing Revitalization, and Gathering Strength", and organizing HuaxiaBank reading activities.?Promoting learning platforms such as Xuexi Qiangguo app, Beijing LaoGanbu app, and the Retired Cadres WeChat ocial account.
?Ensuring the livelihood benefits of retired personnel, formulatingadministrative budgets, and guaranteeing funds for retired cadre servicemanagement.?Delivering commitments for the socialized management of retiredpersonnel, and carrying out routine visits on traditional holidays andbirthdays, with a total of 22 visits made during the Spring Festival, "July1st" visits for elderly Party members, and hospital visits for the sick.?Organizing spring and autumn outings as well as training courses onpoker games and painting to enrich the cultural life of retired personnel,and encouraging them to participate in interest associations, Chinese teaactivities, and calligraphy, painting, and photography activities.
The Home of Employees serves as a dynamicplatform, injecting vitality into the laborunion and igniting employees' enthusiasm toactively engage in democratic processes. Inalignment withthe Management Measures ofHuaxia Bank on Building Homes of Employees,we continue to build qualified and modelHomes of Employees, striving to furtherimprove the working and living environmentfor employees and enhance their cohesion.
Model Homes of EmployeesQualied Homes of Employees
At the end of 2023
Celebrating the International Women's Day with diverse activitiesCase
On the eve of International Women's Day, the Bank held a variety of celebration activities to extend sincere wishes to female employees.
Activities on International Women's Day at the Head Oce Labor UnionWang Minglan, Deputy Party Secretary and chief supervisor of the Bank at the time,participated in the activities of the Zhengzhou Branch on International Women’s Day.
Shanghai Branch carries out hand-paintedeco-friendly bag activity
Nanning Branch organizes collaborationgamesKunming Branch carries out flowerarrangement activity
In 2023
RMB288,400245Medical subsidies distributedEmployees in need helpedLiving allowances distributed
RMB761,200
Improving the service system for employeesBuilding Home of Employees
Homes of Employees built intotal, including
Improving services for retired personnel
194592818
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Huaxia Bank places significant emphasis on safeguarding customer rights by strictly adhering to variousrequirements for customer protection. This approach ensures that the related work are promoted in an orderlymanner.Putting people first, we strictly observe the regulatory requirements of the National Financial RegulatoryAdministration, the People’s Bank of China, as well as relevant regulations of industry associations, and practicethe guiding opinions of the Party Committee of the Bank, the Board of Directors, and the management team onconsumer rights protection for 2023 to further improve the consumer rights protection system and mechanism.Aligned with principles of integrity, innovation, systemic thinking, goal orientation, and problem-solving, our eortsare directed toward improving customer rights protection across various areas. These include top-level design,business operations, customer protection review, public education, internal training, supervision and inspection,information disclosure, complaint and dispute handling, as well as performance evaluation.
Enhancing "Three Consciousness" across the Bank andunifying awareness and actions for consumer protection
The Bank earnestly follows regulatory requirements and enhances "Three Consciousness",which entails thinking in terms of the bigger picture, assuming responsibility, and maintaininga long-term perspective. We are committed to aligning our ideological awareness andactions with the resolutions and directives of the Board of Directors and Senior Managementregarding consumer rights protection. By enhancing our sense of responsibility and mission,we aim to strengthen our determination and proactiveness and align our goals and actions ofconsumer rights protection with the Bank's high-quality development.
Detailing various "regulatory requirements" for comprehensive implementationBenchmarking against the latest regulatory requirements, centering around theManagement Measures for Consumer RightsProtection of Banking and Insurance Institutionswhich came into eect on March 1,2023, we align our actions with our operationalrealities. We undertake specific implementation of relevant regulatory requirements and update the management measureson consumer rights protection within the Bank accordingly. We also assess the applicability of supporting systems such as themanagement measures of consumer protection assessment to ensure the timely updating and optimization of relevant systems. Werene internal management and supervision measures, ensuring the eective implementation of the eight consumer basic rights andother regulatory requirements.
Promoting "Bank-wide systemic management" and integrating consumer protection with operations
We have strengthened the leadership to ensure the eective operation of consumer rights protection initiatives. Furthermore, we haveenhanced the comprehensive consumer rights protection framework, where the Board of Directors oversees overall planning and guidance,the Board of Supervisors monitors relevant performance, and Senior Management provides comprehensive deployment. In addition, theConsumer Rights Protection Committee coordinates eorts, consumer protection functional departments drive progress, and professionalmanagement departments collaborate closely. By clarifying primary responsibilities for consumer rights protection, we addressrelevant issues systematically. We leverage the major role of branches to ensure full implementation of management requirements. Bystrengthening coordination between departments involved in consumer rights protection, we integrate consumer rights protection withbusiness operations, thereby facilitating the achievement of annual consumer rights protection objectives.
Spotlight
Optimizing training courses to promote deep integration of consumer protection training and businessesTo address issues identied in consumer protection work, the Bank has promptly arranged targeted training courses. These courses are designed to gather the demandsof departments at both the Head Oce and branches for consumer protection training. We optimize the courses to facilitate the deep integration of consumer protectiontraining with business operations. We provide suitable customer protection training courses in online +oline, centralized +self-study, and special +joint forms. By prioritizingtraining for grassroots personnel, individuals dealing with consumer nancial information, and those in positions with a higher rate of complaints and risks across all businesslines of the Bank, we aim to align consumer protection training with operational development.
Conducting specialized training on nancial consumer rights protectionCase
In July 2023, the Bank organized an offline training session on financialconsumer rights protection. The training attracted over a hundred participantsfrom 19 Head Office departments and all Tier-1 branches. The trainingencompassed various topics, including improving management capabilities forin-house consumer protection services, enhancing the eciency of nancialconsumer rights protection, analyzing key points in consumer protectionreviews, improving complaint handling skills, and diversifying disputeresolution techniques.
In response to the needs of four major groups—the elderly, the young, newcomers, and those with special needs—we implement customized measures to assist each group. For the elderly, we focus on helping them overcome digitaldivides, while guiding young people to cultivate rational consumption habits. Additionally, we enhance risk awarenessamong newcomers and provide nancial services initiatives and educational campaigns tailored to these special groups.Aligned with the needs of nancial consumers, we conduct publicity activities in various settings, including rural areas,communities, schools, enterprises, and business zones. Through these initiatives, we actively guide nancial consumers tolearn, understand, and eectively utilize nancial services.
Adopting targeted measures for four groups and conducting publicity activities in ve scenes
Strengthening Consumer Rightsand Interest Protection
We prioritize the management of the customer protection review system and bolster control andmanagement at the source. We have rigorously overseen the integration of customer protectioninto product design, business systems, system development, and marketing promotion.Additionally, we have strengthened the integration of customer protection review into allbusiness lines to ensure the implementation of review opinions on financial consumer rightsprotection and to advance risk controls. Furthermore, the Bank continually learns from practiceand updates key points in consumer protection reviews. This ensures the timely identificationand correction of issues in financial products or services that may jeopardize the legitimaterights of financial consumers.
Advancing the integration of consumer protection review intoall business lines and preventing risks in advance
We concretely fulll our responsibility in handling complaints, continuously ensurecomplaint channels remain open, addressing customer complaints promptly andactively. Additionally, we focus on deepening traceability and resolving complaintsat their source. Utilizing mediation mechanisms, we aim to settle customerdisputes efficiently and emphasize the assessment of customer complaints.Through these measures, we effectively enhance the management of customercomplaints, and utilize them as constructive feedback to improve corporategovernance, drive business development, and enhance nancial services.
Deepening complaint management and implementing theprimary responsibility
The Bank is pushing for the resolution of key issues and ensuring accountability.By consolidating key issues identified in internal and external consumer protectioninspections and assessments conducted over the past two years, we are closelymonitoring the progress of rectification by relevant departments at both the HeadOce and all branches. Moreover, we have intensied supervision of consumer rightsprotection for 17 branches, both online and oline. These include branches in Beijing,Nanchang, Xining, and Xi'an.
Leveraging the "supervisory role" to urge problem resolutionand results consolidation
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The Bank prioritizes the management of nancial consumer complaints.We accept and handle complaints in a compliant, timely, and efficientmanner. Throughout the acceptance, processing, and follow-up ofcomplaints, we strictly adhere to relevant requirements for consumerinformation protection. We have input great eorts to improve our abilityto resolve customer issues online without further ado, leveraging thepositive role of consumer complaints in improving corporate governance,promoting business development, and enhancing financial services.Throughout 2023, the Bank received a total of 178,944 complaints. Wesuccessfully handled 99.99% of customer complaints within 15 days,achieving a 97.18% customer satisfaction rate and 100% settlementrate for complaint handling.
Complaints concerning credit cards were mainly from Guangdong,Shandong, and Henan, and complaints involving other banking serviceswere mainly from Beijing, Jiangsu, Guangdong, and Henan. Thesecomplaints were mainly associated with loan repayment consultations,personal loan repayments (particularly mortgage loans and online loans),debt collection, credit adjustment services, and product returns relatedto wealth management and other nancial products. In response to thissituation, while appropriately receiving and addressing complaints, theBank prioritized complaint analysis and source control. We emphasizedthe continuous optimization of banking processes or services, harnessingthe positive role of complaint management to deliver enhanced servicesfor nancial customers.
Protecting the wallet of customers through joint eorts of police and bankCaseNanchang Branch carried out activities to bolster employees' anti-fraudknowledge and conducted rigorous bank card control measures at the source,alongside daily checks. Upon detecting abnormal transactions or unusualcustomer activities, each outlet promptly contacts the local police stationto report such incidents. Through collaborative efforts with the police, theBranch aims to fortify the defense line against telecommunications and onlinefraud, thereby safeguarding the nancial security of citizens.
Qingyunpu Sub-bureau of Nanchang Public Security Bureau presents abanner to Xianghu Sub-branch of Nanchang branch
We enhance the direct resolution of customer issues by implementing a layered and classied handling mechanism for worksheets. By expanding thescenarios for direct resolution, we strengthen coordination between the Head Oce and branches as well as cross-business lines. This approach improvesour online and direct resolution capabilities for customer issues and enhances the eciency of responding to and handling complaints through the 95577channel.
Enhancing direct resolution atthe Head Oce and branches
Focusing on customer experience, we diligently monitor and proactively address recurring customer concerns. Through the "95577 Lighthouse" experienceinitiative, we assign business department managers to listen to customer calls, gaining direct insights into real customer feedback. This process enables us toenhance our customer service standards and satisfaction levels.
Deepening closed-loopmanagement of customer issues
We have implemented the requirements of the "One-Key Call Transfer" projectfor the 12378 hotline of the National Financial Regulatory Administration.To ensure ecient handling, we have assigned dedicated customer servicepersonnel and established a support team specifically for complaintstransferred through the 12378 hotline. The project commenced officialoperations on January 1, 2024.
To enhance service awareness throughout the Bank, we conductspecialized service supervision for complaint handling, rening andoptimizing the quality and efficiency of our complaint resolutionmechanisms, systems, and processes. Additionally, we conductmonthly follow-ups on the implementation of associated measuresto ensure the ecacy of complaint handling procedures.
Implementing the One-Key Call TransferStrengthening the oversight of dedicated services for
complaint management
At the end of 2023
Settlement rate of complaints lodged through95577 customer service center
95577 call-backsComplaints and problems solved through the joint handlingmechanism of the 95577 customer service center
We issued the2023 Work Points for Immediate Response to Complaints at Huaxia Banktoimplement the first inquiry accountability system. Upon receiving a worksheet, we promptlyengaged with the complainant and designated personnel to oversee the resolution process, ensuringstrict adherence to complaint handling protocols. To constantly improve our service standards, westrengthened the governance at the source by conducting in-depth analysis of the complaint dataregarding "swift response to complaints", proactively identifying high-frequency and commonissues, and actively optimizing the business, products, and services.The Credit Card Center conducted an on-site visit to the Beijing 12345 Public Service HotlineCenter to exchange experiences and gain insights into their "immediate response to complaints"approach.
The Bank earnestly organized the workof 12345 hotline for citizen service"Immediate Response to Complaints" in2023. The work results in 2023 ranked atthe forefront of state-owned enterprisesof Beijing Municipality.
Improving the level of complaint management
Implementing the "Immediate Response to Complaints" initiative
Strengthen service supervision and enhancing complaint process management of 95577
%
1,104,59235,627
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The Bank has always adhered to the consumer rights protection philosophy of "senior management setting an example, managers taking the leadingrole, and all employees getting involved", ensuring comprehensive participation, management, and supervision by senior management. We continuouslydiversify our public education and awareness initiatives and reinforce our online and oline risk alert mechanisms. Tailoring consumer rights protectioneducation and awareness campaigns to different priorities, unique features, and key highlights, such as the Bank President's Lecture on CustomerProtection program, we aim to disseminate nancial literacy among consumers eectively.
Main education and
publicity forms
"Bank President's Lecture on Customer Protection"series independent education and publicityactivities.Education and publicity activities at businessoutlets, including Reception Day by Bank President,Bank President Receiving at the Lobby, etc.Special education and publicity activities, includingthemed publicity activities in schools, communities,and nursing homes, etc.
Special cultural education and publicity activities withthemes, including the Mid-Autumn Festival, National Day,university enrollment, etc.
Joint education and publicity activities with externalmedia, including co-produced programs, columns,etc.
Online education and publicity activities, including bankpresident’s micro-classes, live broadcasting classes, etc.
Internal and external collaboration on nancial education activitiesCase
In September 2023, the Credit Card Centerinitiated nancial education activities throughcross-sector cooperation within the financialindustry. We established the "ConsumerProtection Education and Publicity Alliance"with four institutions to integrate consumerprotection education resources. With anemphasis on key groups of "the elderly,the young, and new citizens", we organizedoutreach activities around three mainthemes: eldercare, youth development, andempowerment of new citizens. In partnershipwith Plan B, a program on the Beijing Radio& Television Station Finance Channel, welaunched financial consumer protectioninitiatives under the theme of "Finance Caringfor the Elderly, Loving for the Young, andServing the People."
Diversifying the methods to disseminate nancial knowledgeCase
To diversify financial education efforts,Ningbo branch launched original videos suchasThe Magic of Digital RMB, Upgrade YourAnti-Fraud Awareness, etc., through newmedia platforms. Among them,The Magicof Digital RMBwas featured on "Chengfang32", the ocial WeChat account of the YouthLeague Committee of the Head Oce of thePeople's Bank of China.
Scan to watch the original video ofThe Magic of Digital RMB
Conducting "Financial Consumer Rights Protection
Education and Publicity Month" Activities
Conducting nancial education for groups withspecial needs
CaseCase
Shenyang Branch carried out "Voice of Branch Sta" video collections,held more than 20 financial knowledge dissemination activities andparticipated in the "Financial Consumer Rights Protection Education andPublicity Month" kicko day activities held by regulators, which aimed atpopularizing nancial knowledge for the public.
Longyan Branch under Fuzhou Branch conducted outreach campaigns atLongyan Special Education School. With the help of sign interpretation,it disseminated nancial literacy, including topics such as safeguardingpersonal financial information and preventing fraud, to students withhearing impairments.
In 2023
Copies of original online and oline educationand publicity brochures and leaetsAttendees of public education in totalPublic education activities held
Paying attention to consumer rights publicity and education
21,75342.3+
million15,570
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At the end of 2023
Balance of green loans
Electronic transactions completedNumber value of ETC cards users in total
Accumulative value of ESG assets under management (AUM)
We support the inheritance of the agriculturalheritage Mulberry Dike Fish Pond Systemin Huzhou, Zhejiang Province to facilitatethe development of recycling agriculture,unleashing the ancient Chinese farmingecological wisdom among the lucid watersand lush mountains.
The Bank is committed to green development, and actively serves China’s carbonpeaking and carbon neutrality goals. We make a big push to develop green nanceand respond to climate change in all respects, conserve biodiversity and exploregreen operations, to facilitate ecological progress and low-carbon development,thereby building up our nancial brand of "Green Growth for a Better China".
CSR Practices
EnvironmentalPursuing Green Developmentto Build a Beautiful China
2.7037
million6,303,285,300
RMB
269.273
billionRMB
29.504
billion
Environmental and climate risks identied
Physical risks
Acute risks
Extreme weathersuch as floods,typhoons, blizzardand extreme heat
Business riskClimate change leads to the frequent occurrence of extreme weather, which causes severephysical damage to tangible assets in disaster-affected areas, such as houses, farmland,and infrastructure. These disasters will result in asset depreciation and restrict productionactivities, and may increase the customer default risks and then the non-performing loans.Operational riskExtreme weather may lead to temperature rise and water supply shortage, which may driveup energy consumption, result in the insufficient water pressure for domestic water andair-conditioning hydration, and threaten the business continuity and daily operation andmanagement. Frequent occurrence of extreme weather events such as heavy rainfall andtyphoons in southern coastal areas may lead to seawater inwelling, and disrupt the normaloperation and service of business outlets in coastal areas.
Duration Long-term Potential nancial impact on the Bank?Decline in asset quality?Decreased income?Increased costs for disaster resilienceand related operations
Chronic risks
Rise in averagetemperature
Business riskGlobal average temperatures are increasing due to the climate change, which may increasethe consumption of refrigeration equipment, and in particularly the operating costs oftemperature-sensitive industries such as cold chain logistics, and fresh produce. This maytrigger customer default risks, resulting in an increase in non-performing loans. The risingaverage temperatures may also exacerbate the spread of vector-borne transmission diseasessuch as dengue, increase health risks for residents in some areas and aect borrowers' abilityand willingness to repay.Operational riskIncrease in average temperatures may increase the Bank's energy consumption, operatingand maintenance costs, shorten eective business hours, and thus aect the continuity of itsoperations.
Duration Long-term Potential nancial impact on the Bank?Decline in asset quality?Decreased income?Increased operating and maintenancecosts
Sea level rise
Business riskThe rising sea level caused by climate change may impact real estate and infrastructure incoastal areas, the value of customer assets and their business, which may increase the risk ofcustomer default and non-performing loans. The rising sea level may force the residents andbusinesses in coastal areas to relocate, which in turn may reduce the sources of deposits in theBank’s coastal business outlets.Operational riskThe rising sea level may aect the Bank's oce locations, oline business outlets and backoce (e.g., data centers). Some equipment may be eroded and corroded, which will aect thebusiness continuity and increase the maintenance costs.
Duration Long-term Potential nancial impact on the Bank?Decline in asset quality
?Decreased income?Increased operating and maintenancecosts
Responding To Changes InClimateThe Bank has developed countermeasures for identied climate risks and opportunities, with reference to the four dimensionsof Governance, Strategy, Risk Management, and Metrics and Targets recommended byRecommendations of the Task Force onClimate-related Financial Disclosures (TCFD), and formed a closed-loop management mechanism. We do all this by followingapplicable laws, regulations and state policies, domestic and international sustainability development trends, and internalpolicies.
The Bank attaches great importance to environment-related risk management which including climate risk and incorporated ESG risks as specic risksinto the Bank’s risk preference management system. We conduct in-depth research on short-, medium- and long-term environment and climate-relatedrisks and opportunities to enhance the ability to identify and assess risks from multiple dimensions and strengthen the management of environmental andclimate risks.
Identifying climate risks and opportunities
?We incorporated ESG risks as specific risks into the Bank’s risk preferencemanagement system.?We established an environmental and climate risk management mechanism andincorporated ESG risks throughout the process of credit business management.We improved environmental risks management tools and strengthened theevaluation of the customers’ environmental risks and the management of keycustomers.?We appointed environmental specialists to make professional evaluationson the customers’ environment-related risks, and give professional advice tocolleagues of all levels and customers.?We conducted climate risk stress tests to quantify environment climate risksand provide a basis for the Bank’s risk mitigation measures.
Risk Management
?We formulated theCarbon Peaking Action Plan,incorporated the work forpeaking carbon emissions and achieving carbon neutrality into the Bank’sdevelopment strategy, claried targets and tasks, and developed a roadmap forthe carbon peaking action.?We increased financial support for green and low-carbon industries,continuously optimized the structure and quality of green loan business, andexpanded the business scale of green nance.?We strengthened environment-related risk management to avoid creditbusiness losses caused by poor environment and climate risk management.?We practiced green operations, implemented low-carbon management andstrove to peak carbon emissions of our own operations step by step.
Metrics and Targets
?We built a green finance governance structure consisting of the Board ofDirectors, the Senior Management, the Green Finance Management Committee,the Green Finance Center, and branch-level green finance departments, andclearly dened the responsibilities and powers of each level, thus forming aneective green nance business management and ESG risk control system.?We built the green nance incentive and restraint mechanism, and organizedperformance evaluations and general evaluations to stimulate the innovationawareness and capacity in the field of green finance at all levels anddepartments, thus improving the Bank's environmental and climate riskmanagement.
?In the2021-2025 Development Plan of Huaxia Bank, we clarified the strategic focusof "making every effort to develop green finance as a new characteristic". We increasedfinancial support for clean energy, energy-saving transformation, green developmentand ecological conservation, developed new products and services of green finance, andactively practiced ESG investing.
StrategyGovernance
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Transition risks
Policy risks
New environmental policies
Business risk
If a customer fails to follow up the climate change related policy trends in time and developappropriate countermeasures, he or she may face declining revenues, rising costs anddeclining protability, which may in turn increase his/her default risk and increase the Bank’snon-performing loans.Operational riskGovernments may introduce new climate-related policies that demand banks to pay moreactive attention to climate factors in their operations. Inadequate response of the Bank mayincrease its administrative costs and prevent it from meeting sustainability targets.
Duration Short-termPotential nancial impact onthe Bank? Decline in asset quality?Decreased income
Legal risks
Stricter regulatoryrequirements
Business riskIf the Bank is lax in reviewing the environment compliance qualications of the borrowingenterprise or project which causes environmental pollution, the Bank may be held accountablefor the pollution and face the legal compliance risk.Operational riskGovernments and regulators may strengthen regulatory requirements for banks’ climate riskmanagement regarding disclosure requirements, risk assessment procedures, etc. The Bankmay be exposed to legal compliance risks if it fails to promptly adjust their operational andmanagement processes.
Duration Long-termPotential nancial impact onthe Bank? Decline in asset quality?Decreased income
Technology risks
Transition to low-carbontechnology
Business riskThe development of clean technologies will deprive high-emission enterprises of theircompetitive advantages, and increase the pressure and costs of high-carbon industries fortechnological transformation. This may trigger credit risks and an increase in non-performingloans. Meanwhile, customers involved in the R&D and commercialization of emerging low-carbon technologies may not be able to recover their investment in technological innovation,consequently causing default risks and increasing the Bank’s non-performing loans.
Operational risk
Fintech and digital transformation can significantly reduce the use of non-renewableresources and greenhouse gas emissions. If the Bank fails to master the latest technologiesfor digital transformation and energy saving and emissions reduction, it may face risks suchas increased operating costs.
Duration Medium- and long-termPotential nancial impact onthe Bank? Decline in asset quality? Increased operating costs
Transition risksMarket risks
Carbon price volatility,customer preferences andinvestment behavior
Business riskThe higher carbon prices and the fewer free quota may lead to lower protability or assetdepreciation for enterprises, which in turn increases their risk of default and the Bank’s non-performing loans.At the bank level, as market demand for products in high-carbon industries declines, andproduct prices in specic industries (especially bulk fossil energy) uctuate signicantly overtime due to market supply and demand, if the Bank fails to quickly spot the shift in marketdemand and provide green products and services that are more in line with demand, it mayface risks such as loss of customers and declining demand for their products and services.
Duration Long-termPotential nancial impact onthe Bank? Decreased market share?Decreased income?Reduced prot
Reputation risks
Negative public opinion
Business riskIf customers of the Bank's financing and investment business persistently contribute toenvironment pollution or high greenhouse gas emissions, the Bank might be implicatedand have its overall reputation damaged, resulting in divestment by environment-mindedinvestors, customer attrition, and potentially even lawsuits.
Operational riskIf the Bank causes environmental damage in daily operations or fails to take timely action onclimate change, the public, the media and other stakeholders may have negative opinions ofit, thus damaging the Bank's reputation and image.
Duration Medium- and long-termPotential nancial impact onthe Bank?Decline in asset quality
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Environmental and climate opportunities identied
Green products and services?The Bank can meet the diversified needs of their customers, expand market share and increase income sources by designing and providingfinancial products and services that meet the needs of the low-carbon transition, such as those for carbon-neutral finance and climate riskmanagement.
?The Bank continues to promote innovation in products and services of green finance, which helps to enhance the suitability of the financial servicesystem and service capacity.?Green development and the low-carbon transition have brought new opportunities for the Bank's business development. The expansion of marketsize in the areas of clean energy, energy conservation and environmental protection, clean production, ecology and environment, green upgrading ofinfrastructure, and transition finance has provided the Bank with more market space and sources of revenue.
Duration Medium- and long-termPotential financial impact on the
Bank?Improvement in asset quality
?Increase in operating income
Resource eciency and energy sources
?In daily operations, the Bank shall reduce electricity and water consumption through energy-saving renovations, employee behavior instruction, andthe use of circular technologies, thereby decreasing operational costs.?Under appropriate conditions, the Bank shall replace the use of fossil energy with renewable energy such as distributed photovoltaics and greenelectricity, etc., to shift to low-carbon clean energy.
Duration Medium- and long-termPotential financial impact on the
Bank?Decrease in operating costsApplication of low-carbon technology?The Bank can reduce operating costs and carbon emissions and enhance the sustainability by introducing and applying green and low-carbontechnologies, such as digital platforms, green data centers and smart buildings.
Duration Medium- and long-termPotential financial impact on the
Bank?Decrease in operating costsClimate data service?The Bank can help the customers better understand and manage climate risks by providing climate data analyses and technology solutions, such asclimate risk assessments, sustainability consulting and advanced environment data analysis tools.
Duration Medium- and long-termPotential financial impact on the
Bank?Increased operating income
In the credit investigation process, we comprehensively gather the assessment documents and information of the customers’ ESGperformance, and combine on-site and indirect investigations to assess the customers’ ESG risks, and disclose the customers’ ESGrisk status and assessment results comprehensively in the credit investigation report.Creditinvestigation
Based on the nature and severity of the customers’ ESG risks, clauses will be added to the contract demanding the customers toenhance ESG risk management.
Contractsigning
The personnel involved in credit investigation, examination and approval will carefully reassess the customers’ ESG-related risklevels. Based on their ESG risk status, targeted management measures are proposed, and relevant credit and loan conditions areclearly dened.Examinationand approval
We consider the customer's ESG risk management status as a crucial basis for disbursing credit and investment funds. For speciccustomers, we will reevaluate the ESG performance of customers or projects, check whether there are substantive risks, andpromptly and comprehensively collect relevant risk-related information.Funddisbursement
We keep gathering ESG risk information, dynamically track and assess changes in risk factors, adjust risk levels, and implementdierentiated management measures. For customers with risk exposure, we will instantly issue warnings and devise risk mitigationmeasures.
Post-loan andpost-investmentmanagement
The Guiding Opinions on the Credit Business Environment and Social Risk Management of Corporate Clients of Huaxia Bankis formulated and issued,covering the entire process of credit investigation, examination and approval, contract signing, fund disbursement, and post-loan and post-investmentmanagement. It requires the Bank to conduct comprehensive risk management of credit business for customers, considering the volume of environmentalrisks in their industry and their own ESG performance.
On the basis of the assets weighting of high-carbon emission industries in the Bank, three key industries, namely, thermal power, iron and steel, andcement, which are characterized by high climate risk and transition pressure, are selected to conduct a climate risk stress test. The systematic frameworkfor quantitative analysis and stress measurement in high-carbon emission industries is improved and has already been applied to the risk identicationand monitoring.
Climate risk stress tests
Hong Kong Branch’s climate risk management measuresCase
In response to global climate change and in alignment with China’s 30·60 Decarbonization Goal, as well as the principles of "impact investment" and "greennance," Hong Kong Branch formulated theClimate Risk Management Measures of Huaxia Bank Hong Kong Branchbased on the Supervisory Policy Manual GS-1provided by the Hong Kong Monetary Authority. It incorporates climate risk management into daily risk management procedures, establishes mid-term and long-term strategies to address climate risks, and imposes concentration limits on industries with high carbon emissions to restrict loans to sectors with climate-relatedhigh risks.
Throughout the credit business process
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Protecting BiodiversityThe Bank is committed to biodiversity protection, and utilizes nancial resources to mitigate risks arising from investment and nancingactivities to biodiversity. Additionally, we have introduced new nancial products to support biodiversity conservation, increased the ecologicalvalue and contributed nancial resources to ecological sustainability.
After reviewing theGreen Industry GuidelineCatalogueto identify standards related tobiodiversity protection, the Bank has formulatedstatistical standards for its green financesupporting biodiversity conservation. Atthe end of 2023, the Bank's credit balancesupporting biodiversity reached RMB 45.285billion, accounting for 16.82% of its greenloans.
We probe into how finance could supportbiodiversity conservation. Specifically, weutilize platforms and tools for biodiversity riskevaluation to assess the ecological sensitivityof the business areas, and the range andextent of the project's impact on the localecological environment.
We continue with information disclosure.Since 2022, the Bank has independentlyprepared theEnvironmental InformationDisclosure Report, specifically dedicatinga section to biodiversity for informationdisclosure.
We manage the biodiversity-related risksassociated with investment and financingactivities, and incorporate these activities'influence on biodiversity as a stand-aloneelement in the assessment system forESG risks. At the project level, we studythe methods, instruments, and systemsfor assessing the impact of financing andinvestment actions on biodiversity.
We keep expanding the product portfolioof green finance, and increase effort inthe development of financial products forbiodiversity, including carbon emissionsrights pledge financing, loans secured byplant variety rights, and a digital, intelligentagriculture technology platform.
Protecting agricultural heritageCase
Huzhou sub-branch of Hangzhou Branch granted a loan of RMB 20 million to Huzhou Digang Mulberry Dike Fish Pond System Construction and Management Co.,Ltd for the construction and improvement of the Mulberry Dike Fish Pond System.This helped protect agricultural cultural heritage.
Supporting regional marine ecological restorationCaseDalian Branch granted a working capital loan of RMB 74.2 million to acompany in Dalian for regional marine dredging and integrated environmentalmanagement, providing strong support for the company's initiatives inregional marine ecological restoration.
Supporting the comprehensive management of the water environment in the Dianchi Lake basinCase
Kunming Branch loaned RMB 150 million to some water replenishment engineeringcompany for the Niulan River-Dianchi Water Replenishment Project. This projectconserves high-energy-consuming building materials and continuously releasesendemic sh species to increase their population, and thus supports the conservationof aquatic organisms and the restoration of the aquatic ecological environment in theNiulan River-Dianchi Lake basin.
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Promoting Green Operations
The Bank places importance on the environmental impact of its own operations, promoting green offices, green procurement, and activeparticipation in non-prot environmental initiatives. It advocates green and low-carbon lifestyles, encourages eco-friendly travel, promotesgreen transactions, and strives to foster green lifestyles among the public.
Promoting green transactions
We practice the concept of green development to serve the constructionof a low-carbon society with our own practice, and complying with thelaws and regulations including theEnvironmental Protection Law of thePeople's Republic of ChinaandEnergy Conservation Law of the People'sRepublic of China. Advocating the concept of "green travel" as our ownresponsibility, we vigorously promote the use of Electronic Toll CollectionSystem (ETC) express card.
Encouraging green travel
At the end of 2023
Number of ETC card users signed
2.7037
million
Remote service through video, relying on the mobile bankingApp and WeChat banking, can transcend physical limitations toprovide customers with "one touch access from the ease of home"contactless nancial services. Diversied service matrix convergingaudio, video, text and etc. offers customers 24/7 uninterrupted,one-stop, and travel-free nancial services.
We promote the use of the customer service chatbot which usesvoice or text to answer questions and aid transactions, and thuseectively replace manual operations, providing strong support forgreen transactions. The number of customers served by the chatbotin 2023 increased by 12.99% compared to the previous year.
Exploring the new remote model of green servicesExpanding the scope of intelligent technology application
In 2023Total energy consumptionTotal greenhouse gas emissionsScope 1 emissions of greenhouse gas Scope 2 emissions of greenhouse gas
In 2023
Electronic transactions completed.Proportion of the services handled via electronic channelWe actively promote green oces by boostingdigital and paperless office operations. Whilesetting up green building benchmark andcarrying out carbon inventory, we practice low-carbon operations in all aspects.
Promoting green oces
Electricity
saving
Low-carbon
travel
Using low-energy consumption devices likeLED lighting, and reducing the standby timeof computers and other oce equipment.
Attaching great importance to the promotionand application of new energy vehicles,promoting the replacement of the existinggasoline-fueled official vehicles to newenergy vehicles.
Carbon emission accounting boundary: The entire Bank refers to the head office, branches and subsidiaries. The scope of carbon emissions includes direct emissions (emissions from fossil fuel combustion)and indirect emissions (emissions from purchased electricity and heat) within the Group, excluding carbon emissions from the upstream and downstream of the supply chain. The Bank's carbon emissionaccounting is for carbon dioxide only and does not include other greenhouse gases.Carbon emission accounting basis: The types of energy used in the Bank involve electricity, municipal heat, natural gas, gasoline, diesel, liquefied petroleum gas and small amount of coal, among whichnatural gas, gasoline, diesel, liquefied petroleum gas, coal and heat are calculated in accordance with the emission factors in theRequirements of the greenhouse gas emission accounting and reporting—Public building operation units (enterprises)(for Trial Implementation)issued by the National Development and Reform Commission, and the emission factors are all default values. The emission factors fromelectricity generation used by institutions in mainland China and Hong Kong respectively originate from the Notice on Doing a Good Job in the Management of Greenhouse Gas Emissions Reporting of thePower Generation Enterprises in 2023-2025 issued by the General Office of the Ministry of Ecology and Environment of China, and the Emissions Factors 2023: Annual GHG Emission Factors for WorldCountries From Electricity and Heat Generation (English Version). The scope of the electricity consumption statistics for the Head Office covers the branches in Beijing including the Huaxia Bank Tower,Longfu Building, World Financial Center, Xidan International Building, and BoRui Plaza, as well as the Infrastructure Office in Tongzhou. The scope of the heat energy consumption statistics for the HeadOffice only covers the branches in Huaxia Bank Tower and the Longfu Building, while other office locations are not covered in the statistics because the heating costs are included in the property fees andthe heat energy consumption cannot be calculated separately.Scope and basis of energy consumption: the energy consumption of the Bank primarily involves the use of gasoline, diesel, natural gas, liquefied petroleum gas, coal, purchased electricity, and heat energy.Unless otherwise specified, the scope of statistics for the Bank’s energy consumption covers the Head Office, all branches, sub-branches and subsidiaries of Huaxia Bank. Energy consumption relatedfactors involved in the statistical process such as energy density and standard coal conversion coefficients are referenced according to the GB/T 2589-2020 General Rules For Calculation Of TheComprehensive Energy Consumption issued by the State Administration for Market Regulation and the Standardization Administration of China, as well as the Guidelines for Accounting and Reporting ofGreenhouse Gas Emissions by China Public Building Operation Units (Enterprises) (Trial) released by the National Development and Reform Commission.
Notes:
Building Green Data CentersCase
The Bank has implemented measures to make its data centers greener and more energy-ecient, includingprocuring green and energy-ecient IT equipment, replacing and upgrading cooling systems, optimizingairow organization in server rooms, replacing Uninterruptible Power Supply (UPS), and improving lightingsystems. As a result, the power usage eectiveness (PUE) has kept falling.We have chosen the GDS Nanfaxin Data Center as the new local date center as per high standards. Thedata center has applied many energy-saving technologies recommended in the National Catalogue ofRecommended Industrial Energy-saving Technologies. Furthermore, it actively participates in greencertificate trading, carbon trading, and other initiatives to offset carbon emissions, and has indirectlyachieved the 100% use of green electricity.
Centrin Data Center, the primaryproduction center of the Bank, hasbeen included in the first batchof National Green Data Centers, asannounced by the Ministry of Industryand Information Technology.
36,6000 tons of standard coal152,200 tons of carbon dioxide2,900
tons of carbon dioxide149,300 tons of carbon dioxide
6,303,285,30099.58 %
Environmental Pursuing Green Developmentto Build a Beautiful China
1423
9495
We launch environmental volunteer activities, and organize volunteers to take up in tree planting and city cleaning activities, to help ght water pollutionand air pollution, and foster harmony between humans and nature.
Transmitting green concept
Optimizing the platform and enhancing procurement eciency:
We enabled the functions of conveningonline meetings of the CentralizedProcurement Committee and projectreview meetings, contributing topaperless office practices, costreduction and eciency increase.We enhanced the end-to-end designof the centralized procurementplatform, and extended the onlineprocurement process.
We developed e-commerce andnegotiation mall modules toenable online quick ordering ofstandardized goods and in-houseselected products.
Strictly adhering to the Administrative Measures for Centralized Procurement, Administrative Measures for Tendering, Bidding, and Procurement, as wellas the Working Rules of the Centralized Procurement Committee and other relevant policies, we have established a green procurement system, regulatedprocurement procedures, and enhanced procurement eciency.
Advocating green procurement
Setting a new benchmark for green buildingsCase
Aiming at six certification standards including three-star Green Building, LEED Platinum, WELL platinum,Ultra Low Energy Building, Beijing Ultra Low EnergyConsumption Demonstration Project and LEED ZeroCarbon, the Bank's newly constructed head officebuilding significantly reduces its environmental loadthrough measures such as thermal bridge and highairtightness node design, the use of new insulationmaterials like vacuum insulation panels and aerogels,and the application of energy recovery ventilators foroutdoor air handling. The building is equipped witha centralized solar power generation system with adesigned annual output of approximately 1,000 MWh.It also features building equipment monitoring systems,energy management and measuring systems, and aninformation integration platform. All these measurescan ensure the required environmental quality for theoce building and provide a safe, energy-ecient, andcomfortable environment.
Design drawing of newly constructed head oce building
Huaxia Bank 2023 Miyun Eco-marathonCase
In May 2023, Huaxia Bank 2023 Miyun Eco-Marathon was successfully held. The marathon was recognized as a World Athletics Label Road Race. Hosted by BeijingMiyun District Government, certied by China Athletics Association, and sponsored by Huaxia Bank, the event had three categories, marathon, half marathon,and mini marathon with about 10,000 runners. More than 800 runners from the head oce, subsidiaries and customers participated in the race as “Huaxia BankRunning Team”. They spread the brand concept of " Sustainability for a Better Future " and the spirit of "Challenge Oneself, Transcend Limits with Perseveranceand Never Give Up".
Yan Jiongzhi, Manager of Hangzhou Branch, had the honor of being atorchbearer at the Lishui leg of the Asian Games Torch Relay
Contributing to the success of the "Green Asian Games"Case
During the preparations for the 19th Asian Games Hangzhou, Hangzhou Branch, as a "green finance benchmark bank in Zhejiang", donated 40,000 tons ofinternationally certied carbon credits to the Organizing Committee, to support the hosting of the Asian Games and the Asian Para Games, helping Hangzhouachieve carbon neutrality.
Environmental Pursuing Green Developmentto Build a Beautiful China
1423
9697
Developing Green Finance
The Bank actively responds to new opportunities and challenges, pursues "innovative, coordinated, green,and open development with shared benets, and continues to develop green nance. We actively practiceESG principles, and identify green nance as a key focus in the overall corporate strategy, and also clarify thedevelopment goal of "works hard to develop green nance as a new characteristic".
Strategic planning for green nance
We implement the national policies supporting the development of green industries and fully and faithfullyput the new development philosophy on all respects into practice. In accordance with the former ChinaBanking and Insurance Regulatory Commission'sGuidelines on Green Finance for the Banking and InsuranceIndustries, the Bank has revised and issued the Administrative Measures for Green Finance. We arecommitted to advancing green nance from a strategic perspective, consistently increasing support for green,low-carbon, and circular economies, mitigating ESG risks, and enhancing its own ESG performance. We striveto promote a comprehensive transition to green society and economy, optimize the overall asset structure ofthe Bank, improve services, and develop green nance as a new characteristic.
The policy system for green nance
Spotlight
Green nancial products innovation
We continue to acquire new customersfor green business, map the ecosystem ofkey green industries, enhance professionalservice capabilities, and increase the valuecontribution of green assets. While developingcarbon finance, we have launched carbonemissions rights pledge financing products,actively utilized the supportive tools forcarbon emissions reduction from the People’sBank of China, and strongly supported thegreen and low-carbon transition of society andeconomy.
Green loans
We have developed a special action plan for green and low-carbon development, and continuedto implement the ESG investment and financing strategies. Outcomes have been achieved in thedeployment of resources in key sectors, the innovation of products and services and extensivecooperation mechanisms, tighter climate risk management, and accelerating of ntech development andgreen operations.We increase support for green and low-carbon businesses, delve deeply into the clean energy sector, andconstantly enhance expertise in energy conservation, environmental protection, clean production, ecologicalenvironment, and green upgrade in infrastructure. We also propose relevant solutions for key sectors.We have improved the innovation mechanism for green nancial products, stepped up in the developmentof new low-carbon nancial products, and created a comprehensive service system for green nancialproducts including green loans, green bonds, green investments, green leasing, underwriting of greendebt nancing instruments, green wealth management, green funds, and carbon nance.We have accelerated the pace of developing and applying IT systems for green nance, improved thebasic data system for climate investment nancing, and worked continuously to develop the informationsystems for green nance.
Coordinating eorts to support green developmentCase
Hong Kong Branch, in collaboration with HSBC and China ConstructionBank (Asia), jointly granted a syndicated loan to Beijing Energy InternationalHolding Co., Ltd, along with 17 domestic and foreign banks. They issuedoverseas green syndicated loan amounting to USD 500 million. Hong KongBranch participated with a loan of USD 50 million. The syndicated loancomplies with the Green Loan Principles of the Asia Pacific Loan MarketAssociation, and was certied by the Hong Kong Quality Assurance Agency asa green loan.
Supporting nancial leasing to jointly develop green transportationCaseNanning Branch, focusing on key industries in Guangxi, targets "green industries and green customers", and has developed "green products and green services".The branch issued a green loan of RMB 70 million to a leasing company in Guangxi for the latter's nancial leasing operations. The leased assets include newenergy charging stations and energy storage battery equipment.
At the end of 2023
Balance of green loansStandard coal equivalent saved
CO
reducedWater saved
RMB
269.273
billion1,098,400 tons
2,608,400 tons21,979,200 tons
Environmental Pursuing Green Developmentto Build a Beautiful China1423
9998
We have introduced new characteristic green nancial products and business models, increased investment in green bonds, and strongly supported thegreen economy, low-carbon economy, and circular economy. In 2023, the Bank successfully issued RMB 10 billion in green bonds. The funds raised wereallocated to 74 green-industry projects listed in the Green Bond Support Project Catalogue (2021 Edition), covering the ve areas of energy conservationand environmental protection, clean production, clean energy, ecological environment, and green upgrading of infrastructure.
Green bonds
We have established the development strategy featuring "Green Leasing," to gradually build a business ecosystem with green energy, green transport,pollution control, and circular economy at the core. We deeply cultivate green energy sectors such as wind power and photovoltaics, explore the greentransport market, including new energy vehicle ride-hailing and freight vehicles, and work to develop emerging business such as vendor leasing, coldchain logistics, and oshore wind turbine installation vessels.
Green Leasing
Hua Xia Financial Leasing
RMB62,252 million
TWh
The energy storage business issuedloans for
projects
9.58
million tons
3.84
million tons
At the end of 2023In 2023
In 2023
We provided B2B customers with7,217new energy logistics vehicles, totaling RMB
million in value.Additionally, we supplied B2C customers with
new energy logistics vehicles, amounting to RMB
43.022
million. A total of2,479new energy ride-hailing vehicles were oered, with a combined value of RMB
million.
In 2023Totaling RMB
million
Boosting the implementation of carbon emissions reduction support toolsCase
Thanks to the active marketing of the Wuhan branch, the largest compressedair energy storage project in Hubei, invested by a Chinese central State-owned enterprise, successfully obtained a loan approval of RMB 1.56 billionwith a loan term of 15 years. The project can be nanced by the World Bank'srelending facility and supported by the "Carbon Emission Reduction SupportTools".
Actively expanding operations and leasing business for oshore and onshore wind power equipmentCase
Hua Xia Financial Leasing actively promotes operational leasing servicesfor onshore wind turbine hoisting equipment. This involves introducing 24onshore wind turbine hoisting machines to participate in wind turbine hoistingconstruction at major wind power project sites. The eort has successfullycompleted the hoisting of over 500 wind turbines, with a cumulative installedcapacity of 3.4 GW. Centered around the principle of "green infrastructure",a oating mechanism was incorporated in the rental scheme to reduce theburden of small and medium-sized wind power engineering enterprises.
Issuance of an oshore Renminbi green bondCase
Guangzhou Branch successfully executed the issuance of an oshore Renminbi green bond for a certain holding group limited. The issuance scale amounted to RMB
1.37 billion.
Issuance of a Free Trade Zone green bondCase
Shanghai Branch introduced a new service model and coordinated the Head Oce and branches to issue a green bond for a company within the Free Trade Zone.The issuance amounted to RMB 1.1 billion.
Crawler cranes of Huaxia Financial Leasing are used for hoisting in theCSSC-Hami project
The balance of green leasingassets amounted to
The photovoltaic power stations in operation cumulatively generatedclean electricityEquivalent to a reduction of carbondioxide emissions
Standard coal
Environmental Pursuing Green Developmentto Build a Beautiful China1423
100101
Based on wealth management and private banking expertise, CSIHUAXIA BANK Green Economy Wealth Index, the first asset allocationindex in China that matches the green and low-carbon transformationof economic activities is issued. The index aims at reflecting thedevelopment status of the green economy and providing a professionalreference tool for resident asset allocation.Following the principles of ESG investing, we believe green investments arethe key to accelerating green development. We conduct ongoing ESG industryresearch, and have successively launched multiple ESG nancial products.
Green wealth management
Constantly rening the green nancial product portfolio, we are committed to deepening collaboration among all parties. We have established long-termand close partnerships with international nancial organizations such as the World Bank, the Asian Development Bank, and the French DevelopmentAgency, and actively use green nance to promote the green and low-carbon transition of economy and society.
Deeper green nance cooperation
At the 2023 Green Low-Carbon High-Quality Development Conference,jointly hosted by the Ministry of Ecology and Environment, the ChinaAssociation for Science and Technology, and the Provincial Governmentof Shandong, Guan Wenjie, former President of the Bank, presented akeynote speech titled "Practices and Exploration in Financial Servicesfor Green, Low-Carbon, and High-Quality Development."
The Bank full supported the 4th Green Development Forum of Beijing Municipal Administrative Center. Li Minji, Chairman of the Bank, delivered a keynote speechtitled "Explorations and Practices in Financial Support for Green and Low-Carbon Development."
At the end of 2023
Accumulative value of ESG AUMThe ESG Investing ForumCaseUnder the guidance of the Beijing Municipal Bureau of Local FinancialRegulation and Supervision and Tongzhou District People's Governmentof Beijing Municipality, Hua Xia Wealth Management hosted the 5th ESGInvesting Forum for Asset Management in China, namely, the Hua Xia WealthManagement Annual Investment Strategy Conference in Tongzhou. Themed"Green Source, Green Harmony," the forum invited government officials,regulators, industry experts and academia, to discuss various topics, includingglobal macroeconomics, international sustainable development guidelines,climate change, and the development of carbon markets.
Continuing to improve ESG management and practicesRelease of the industry research reportCaseCase
In August 2023, Hua Xia Wealth Management released the2022 ESGInvestment Report, introducing advanced ESG management practiceswithin its investment framework and operational processes. This reportwas the rst public high-quality ESG investment report that was veriedby a third-party within the domestic asset management industry. As thereport shows, in 2022, Hua Xia Wealth Management’s carbon footprintaccounting covered more than 90% of its portfolio, making a goodexample in the nancial industry's low-carbon transition eorts.
In December 2023, Hua Xia Wealth Management collaborated with theChinese University of Hong Kong, Shenzhen to compile three years'worth of ESG research findings on the Chinese asset managementindustry. The research was published under the titleResearch Report onthe Development of ESG Investment in the Chinese Asset ManagementIndustry (2020-2022).
For more information on green nance and environment, please refer to Huaxia Bank’s Report on 2023 Environmental Information Disclosure
Chairman Li Minji had a meeting with Chen Guangzhe the World BankVice President. Li introduced the Bank’s development in the field ofgreen nance and exchanged views with the guests on the progress ofthe China Renewable Energy and Battery Energy Storage PromotionProject.
Balance of green investment business
RMB
29.504
billionRMB
22.302
billion
Environmental Pursuing Green Developmentto Build a Beautiful China1423
102103
3,329
In 2023
3,996
The young employees keep alive the spirit ofthe great revolution, overcome challenges andstrengthen their resilience in the pursuit of high-quality development.
Deeply aware of the political signicance of nancial work, Huaxia Bank adheresto the general principle of pursuing progress while ensuring stability. In 2023,we continually improved our governance system, strengthened compliancemanagement, made decisive efforts to prevent and defuse financial risks, andenhanced the data security governance ability, laying a solid foundation for theBank’s high-quality development.
CSR Practices
GovernanceStrengthening CSRGovernance to Consolidate theFoundation of Development
Legal training sessionsTraining sessions on anti-money launderingTraining sessions on compliance
Optimizing CorporateGovernanceHuaxia Bank has improved corporate governance, given full play to its corporate governance and organizational structure and stepped up incommunication with investors and information disclosure, ensuring a better corporate governance.
Oversight CommitteeNomination Committee
Information Technology Management CommitteePerformance Management CommitteeConsignment Management CommitteeOnline Loan Project Management CommitteeDigital Product Innovation CommitteeCentralized Procurement Committee
Oce of theBoard of Directors(Securities Aairs
Department)
Oce of the Boardof Supervisors
Shareholders' Meeting
Strategy and Asset Management Committee
Related Party Transaction Control CommitteeNomination and Compensation Assessment CommitteeNomination CommitteeCommittee for the Execution of Economic and FinancialPolicies & Asset Liability Management Committee
Risk Compliance and Consumer RightsProtection Committee
Credit, Investment and Financing Policy CommitteeRisk Management and Internal Control CommitteeCredit Approval CommitteeAsset Risk Disposal Committee
Board of Directors
Board of Supervisors
Product Management CommitteeGreen Finance Management CommitteeAudit Department
Headquarters DepartmentsBranches and Sub-branches
At the end of 2023Directors in the Board
among them among themExecutive DirectorsNon-executive Directors Independent DirectorsExternal SupervisorsEmployee Supervisors
Supervisors
Shareholder Supervisors
The Party Committee plays a leading role in setting the direction, managing the overall situation and promoting implementation. It focuses on the political direction, Partybuilding leadership team, basic policies, and major decisions to eectively assume the responsibility of strict self-supervision and self-governance, and deliberates anddiscusses major operational and management matters before making decisions.The Shareholders’ General Meeting eectively plays its role as a decision-making authority. The Bank's shareholding structure is clear and stable, and shareholders arecompliant with laws and regulations. The major shareholders actively support the Bank's operation and development, and fulll their responsibilities and obligations inaccordance with laws and regulations. Small and medium-sized shareholders participate in the decision-making process by attending the Shareholders’ General Meetingand other channels. The shareholders collectively maintain our stable development foundations.The Board of Directors focuses on setting strategies, making decisions and preventing risks, and continues to conduct strategic leadership and scientic decision-making.It has established eective risk management mechanisms as well as reasonable incentive and constraint mechanisms, actively fullls its social responsibilities andsafeguards the lawful rights and interests of stakeholders.The senior management focuses on operation, implementation and management. The body carries out operation and management activities strictly according to theArticles of Association and under the authorization of the Board of Directors. The senior management conscientiously implements the resolutions of the Shareholders'General Meeting and the Board of Directors, takes the initiative to accept the supervision of the Board of Supervisors, and unites and leads the sta at all levels tocomplete all the operation and development tasks of the year.
The Board of Supervisors performs its supervisory functions, carries out supervisory inspections in alignment with supervisory orientation while taking into considerationthe Bank's overall business, and fullls its statutory supervisory duties in accordance with the law and regulations, objectively and impartially, in a scientic and eectivemanner, in the best interests of the Bank and all shareholders, and to protect the lawful rights and interests of stakeholders.
We have established a governance structure including the Shareholders’ General Meeting, the Board of Directors, the Board of Supervisors and the seniormanagement, and clearly dened their respective responsibilities, as well as the duties of the Party Committee. We see to it that all governance bodiesperform their duties and coordinate with each other for smooth corporate operations.
Improving the organizational structure of corporate governance
Following the regulatory requirements, we continuously improve thequality and efficiency of information disclosure work, increase theintensity of proactive information disclosure and expand the breadth anddepth of disclosure. Our main information disclosure channels includeChina Securities Journal, Shanghai Securities News,Securities Timesand Securities Daily, Shanghai Stock Exchange website and the ocialwebsite of Huaxia Bank. In 2023, we disclosed 4 regular reports and 44interim announcements, informing investors of significant informationsuch as the resolutions adopted at the Shareholders’ General Meeting,and meetings of the Board of Directors and the Board of Supervisors,changes in the composition of the Board of Directors, Board ofSupervisors, and senior management, performance snapshots, relatedparty transactions and profit distribution. In the 2022-2023 annualinformation disclosure evaluation of listed companies of Shanghai StockExchange (SSE), the Bank was awarded the grade A (excellent).
Strengthening information disclosure
To strengthen investor relations management, the Bank strictlyimplements theWorking Measures of Huaxia Bank Co., Ltd. on InvestorRelations. In 2023, the Bank promoted interactions and exchanges withinvestors and analysts through various channels and in various forms.We organized the Shareholders’ General Meeting and performancebriengs, in which we earnestly answered questions raised on the SSEe-interactive platform and via the investor phone calls and e-mails,communicating with investors on the Bank's business performance andnancial statements. By actively communicating the Bank's essence andvalue to the capital market, and demonstrating our progress in promotinghigh-quality development, we eectively enhanced the capital market'sunderstanding of the Bank, and promoted positive interaction with themarket.
In 202319608154
Senior Management
Shareholders' GeneralMeeting held
Resolutions adoptedResolutions adopted Board of Directorsmeetings held
Resolutions adoptedBoard of Supervisorsmeetings held
Governance Strengthening CSR Governanceto Consolidate the Foundation of Development1423
106107
Enhancing Enterprise RiskManagement
The Bank resolutely carries out various national decisions and plans, and eectively coordinates eorts to support the real economy, servepublic wellbeing, and prevent and resolve nancial risks. The Bank continues to adhere to the principle of "removing the existing risks andcontrolling the new ones, addressing the symptoms as well as the root causes," and continues to improve the strategies and procedures of riskmanagement, in order to eectively prevent and respond to various types of risks.
Comprehensively upgrading the risk management system with risk preference at its core
Optimizing risk management strategiesStrengthening Group-wide risk management
We have comprehensively revised our administrative measures for risk preference, formulated a riskpreference transmission plan. We have for the rst time established an indicator system that combines"pivot points indicators, dynamic indicators and forward-looking indicators", and guided all levels to carryout business operations under the framework of the risk preference transmission system, to strike abalance between the cost of risk and the benet.
Based on changes in regulatory requirements and the externalrisk situation, we dene annual objectives of risk control and howto accomplish them, and effectively utilize the binding force ofthe strategies.
We guide our subsidiaries to improve risk preference andrisk management strategies, urge them to improve their ownenterprise risk management (ERM) system, and strengthen themanagement of various types of daily risks, so as to ensure thesmooth achievement of the Group's strategic and operationalobjectives.
We have improved the risk management system and mechanism to safeguard our sound business development.
Institutional building for risk management
We adhere to the strategic guidance of ensuring the Bank’s stable operation through risk control. We have strengthened forward-looking research andjudgement, enhanced risk renement management, to build a solid defence line for safe development.
Strengthening Specic Risk Management
Credit risk
?We have comprehensively optimized the set of credit investment and financing policies. We closely trackand study the economic situation, resolutely implement the economic and financial policies and regulatoryrequirements of the Central Committee of the CPC, and optimize the credit investment and financing policysystem involving five dimensions: business lines, industries, regions, customers and products. Moreover, wehave constructed an industry-specic risk evaluation model to develop policies that are more customized anddierentiated.?We have carried out in-depth research on industry-specic topics. In conjunction with the requirements of the latestregulatory policies, we have strengthened research and used the research findings to effectively guide the Bank'sasset allocation towards mainstream industries and customer groups to meet the nancing needs of elds prioritized innational strategies.
?We adhere to a moderately prudent risk appetite, and have established a quantitative preference interval whileoptimizing setting methods and indicator systems for quotas. Furthermore, we strengthen quota monitoring andcontrol of market risk. Therefore, our market risk business operated smoothly in 2023.?We promote the implementation of new regulatory regulations, improve the processes of account book division,identification and measurement, optimize the market risk management system and enhance the market riskmeasurement capability, leading to better regulatory compliance and internal management.?We closely track market changes and enhance our understanding and assessment of the external situation, toeectively prevent market risks.
Market risk
Concentrationrisk
Informationtechnology risk
?We continuously optimize the annual ITrisk monitoring indicators, and enhancethe timeliness and comprehensiveness ofinformation technology risk monitoringby increasing the frequency of monitoringand analysis, adding monitoring indicatorssuch as autonomous control of applicationsystems and information security, andexpanding the coverage of the monitoringindicators.
?After considering the internal andexternal economic situations and theBank's risk prole, we have strengthenedthe concentration risk control for quota inthe dimensions of customers, industries,regions, products, and risk mitigation, andcontinued to strengthen the managementof large capital exposure so as to keepthe concentration risk at a reasonablelevel.
StrengtheningSpecic RiskManagement
Governance Strengthening CSR Governanceto Consolidate the Foundation of Development1423
108109
Participants in total122,641
Ensuring ComplianceCommitted to strengthening compliance management, Huaxia Bank integrates compliance and due diligence into daily operation andmanagement. With the empowerment of digital technology, we work to transition to proactive compliance and improve our compliancemanagement involving all employees, in all aspects and throughout the process. We also continue to foster the culture of compliance toelevate our compliance level as soon as possible.
Adopting multi-measures to strengthen the foundation of internal control and compliance management
?More legal compliance training sessions are organized. Taking Legal Compliance Lecture as the platform, the Head Oce holds compliance training sessions toenhance the compliance fulllment capability.?Compliance publicity activities are organized. We conduct in-depth research at the branches and use case studies to promote the concept of proactive compliance.We also carry out a precautionary lecture tour to explain the penalization for violations.
?We comb through and reorganize the compliance management system. After combing through the compliance management system, framework and process, wehave claried the responsibility boundary and built a compliance system coordinating with Three Lines of Defence.?We upgrade the internal control mechanism for products. We have devised thePlan for Upgrading the Internal Control Mechanism for Products and organized Bank-wide attribution analysis to improve the eectiveness of the product system, process and system control.
?We push ahead the compliance system construction, and strive to build a digitized integrated platform of "legal aairs, compliance and auditing".
Strengthening the compliance system reorganization and system construction to elevate the compliance level
We have improved the compliance managementsystem, stepped up to foster a culture ofcompliance, and raised the awareness ofoperating in compliance with the law to create afavourable atmosphere.
Shaping a culture of compliance culture
In 2023
Training sessions on compliance held
3,329
We closely follow up the changes in legal environment,respond to the priority needs for legal risk prevention andcontrol in key business areas, and issue legal interpretations,case compilations and special risk warning to provideforward-looking guidance to prevent and control potentialrisks.
We provide all-round legal compliance support includingaccess, architecture design, policy formulation, agreementdrafting and contract fulllment for key projects, innovativeproducts and major matters of the Bank, to promotecompliant and healthy operation and management.
We have launched a special inspection on the risk of contractvalidity, self-inspection on standard form contracts of theretail business, and the inspection of sub-delegation from bythe Head Oce and branches, strengthened the standardizedmanagement of legal work, and promoted the implementationof legal risk management responsibilities at the rst line ofdefense, facilitating business compliance.
Specifically, we deepen consolidated management on legalrisks, organize and complete the assessment of the rule oflaw construction of nancial enterprises under the municipalSASAC, anti-monopoly special investigation, the mid-termself-inspection of the 8th Five-Year Plan on Rule of LawAwareness, intellectual property rights self-inspection andother tasks, and implement the administrative requirementsfor the legal disputes, pushing the Group's rule of lawconstruction to a new level.
We provide overall legal support, regularly conduct inspections to prevent and control the legal risk and promote compliance and healthy development.
Building the rule of law
We provide all-round legal compliance support
We carry out special investigations on legal risks
We implement the requirements for riskprevention and control
We have strengthened legal risk warning
?We strengthen the system management throughout the process, especially the management of the regulatory review, project check and plan implementationtracking.?Aiming at improving the rectication eectiveness of key risk issues, we have improved the work mechanism and workow, and established a list of key issues forrectication supervision to prevent acute risks.?We work to move credit due diligence to an earlier stage, and take the lead in standardizing the due diligence procedure, to effectively improve thetimeliness of due diligence.
?We have intensied the eorts for supervision and inspection, and scored and assessed specialized inspections to improve the eectiveness of inspections.?We prepare for the implementation of the new standardized approaches on operational risks under Basel III, and have revised policies and reshaped systems formatters established in regulatory rules.
Enhancing compliance culture advancement and raising the awareness of compliance
Governance Strengthening CSR Governanceto Consolidate the Foundation of Development1423
110111
The Bank has doubled down on litigation risk identication, and eliminated potential hazards in key areas and links. We also strengthen access control ofemployees and detect abnormal behavior to resolutely curb the occurrence of major litigations.
Strengthening the crime prevention system?We strengthen crime risk prevention management by issuing a circular on doing so and standardizing the crime risk prevention management of Hong Kong Branch,and specify objectives and requirements.?We have conducted self-investigation and self-correction of suspected criminal cases against the ling and sentencing standards for crimes such as bribery andillegal loan issuance.
?We issue guidelines and prohibitions strengthen the prevention and control of the practice of selling nancial products without permission, clarify the requirementsfor business management and sta management, and step up to investigate and correct violations in a holistic manner.?We carry out special investigations into litigation risks in key areas, strengthen collective prevention and control, and launch Group-wide investigations.
?We continue to investigate clues of violations of irregularities, strengthen direct investigation by the head oce, intensify supervision and review of branches, andseriously investigate and punish violations.
?We implement accountability management, carry out accountability re-inspections, organize departments of the Head Office and branches to carry outaccountability re-inspections on all kinds of violations, and standardize the accountability process to ensure the eect of accountability.
Strictly implementing regulatory requirements on crime risk prevention?We continue to implement regulatory policies and requirements, andforward theAdministrative Measures for the Prevention and Control ofCriminal Case-Related Risks by Banking and Insurance Institutionsandseveral case briengs to improve crime-related risk control measures.?We launch regular crackdown on gang crimes, strengthen themanagement of online lending and third-party institutions in the creditbusiness, and enhance the risk monitoring and alert ability and the crimeprevention capability.?We conduct a self-examination of illegal operations and investment,including the accountability system and loss recovery, and make greateort to hold those violating the laws and regulations accountable.
?We organize an awareness month campaign on the prevention of illegalfund-raising to raise public awareness of illegal fund-raising and improvetheir ability to detect it, eectively protecting the customer rights.?We continuously prevent and combat illegal fund-raising, illegal lendingand financial fraud, utilizing a working mechanism where the front,middle and back oces work closely with each other while performingtheir respective duties.
Unusual trading monitoring and behavior detection
?We carry out a bank-wide self-assessment of financial crimes andcrime prevention among the employees. After analyzing the crime riskprevention situation and the existing problems, we make the workarrangement to prevent employees from committing nancial crimes.
?We investigate employees who sell nancial products without permissionby means of cross-visit to customers, talks with employees and spotcheck.?For the strict management of employees at the Head Office, we stepup to verify the early warning information concerning them and verifyoline alerts sent by the monitoring system for abnormal transactions ofemployee accounts.?We optimize the monitoring system for abnormal transactions ofemployee accounts. To prevent the practice of selling financialproducts without permission, we have created an optimized transactionmonitoring model with improved functions to realize all-round, multi-angle monitoring of abnormal behavior of employees.
We have improved the AML compliancemanagement structure, continuously strengthenedrisk management of money laundering to supportthe healthy development of our business.
In 2023AML training sessions held
3,996
Participants in total127,291
AML training and publicityWe closely track internal and external risks,issue risk alerts, and transmit information ofthe money laundering risk to the entire Bankand subsidiaries timely.
We carry out AML training for directors, supervisors, senior managers, AML ocers, and new hires tocomprehensively enhance their AML capability and risk awareness. We engage in publicity and educationto foster a strong atmosphere of " It is everybody's duty to prevent money laundering."
Improving the AML internal control system
Strengthening the assessment of themoney laundering risk
Enhancing the monitoring andearly warning capacity
We have revised theSelf-assessment ofRisks of Institutional Money Laundering andTerrorist Financingand Assessment andCategorized Management of Product MoneyLaundering and Terrorist Financing Risksto promote Group-wide AML managementand strengthen the foundation of AMLmanagement.
We have improved the money laundering riskassessment model for customers and thatfor products, enriched the assessment indexsystem, and optimized the system functionsof both models, so that the assessmentresults would be more accurate, standardizedand valid.
We have designed and developed transactionmonitoring models for new types of business,evaluated and optimized existing monitoringmodels, and enhanced the accuracy of risk alertand identification. We also have improved thefunctions of the AML system and strengthenedthe system's support for managing the moneylaundering risk.
AML awareness activitiesCaseQingdao Branch carried out, AML publicity activity . The sta put up banners,distributed leaets, and invited nancial experts to explain AML knowledge tothe university students and the elderly, to raise public awareness of AML.
Xining Branch launches the AML awareness campaign in the banking hall
Changsha Branch is organizing the outdoor AML awareness campaign
Strengthening crime risk prevention and the eectiveness of internal controlsStrengthening anti-money laundering management
Strengthening information transmission
and risk prevention and control
Governance Strengthening CSR Governanceto Consolidate the Foundation of Development1423
112113
We conduct special legal trainings to enhance compliance awareness and prevent potential risks.
Conducting law popularization and legal training
33,87222842,472In 2023
We carry out special training on standardizing credit management andcase presentations to expound credit standardization, administrativepenalty, and tort.
We conduct online and oline training on data security laws and policies, andhave held two special training sessions on the Data Security Law. We alsoorganized a bank-wide test on data security knowledge with 24,286 participantsin 2023.
We have established an IPR protectionsystem, formulated administrative policiesincluding AdministrativeMeasuresfor Intellectual Property RightsandImplementation Rules of TrademarkManagementfollowing the principles ofunied management, division of labor andcooperation, and eective protection.
We have formed an operational mechanismfor IPR protection. We attach greatimportance to IPRs generated in thecourse of business operation and nancialtechnology development, and safeguardthe lawful IPRs.
We strengthen the prevention of legal risksof IPRs. We have formulated theMeasuresfor the Use of Others’ Intellectual PropertyRightsto regulate the use of others’ IPRsand prevent and control the risk of IPRinfringement.
We actively safeguard the Bank's intellectual property rights (IPR) and enhance the awareness of IPR protection. We also strengthen the supervision ofthe use of other people's IPRs and prevent the legal risk of infringing other people's IPRs.
Protecting the legitimate intellectual property rights
Exclusive Sponsorship for "Comprehensive Reading of the General Provisions of theCivil Code"Case
The "Comprehensive Reading of the General Provisions of theCivil Code" ofBeijing Radio and TV Station(BRTV) is the only large-scale legal education TVprogram in China. It provides a detailed interpretation of each provision of theCivil Code, oering a comprehensive and systematic visual interpretation ofthe 1,260 legal provisions in the seven books of theCivil Code. The programwas awarded the First Prize for Excellent News by the Central Political andLegal Aairs Commission. Our bank exclusively sponsored the program andserved as a representative of the banking industry to provide professionalexplanations.
We focus on the prevention and control offinancial litigation risks, and continue tostrengthen auditing supervision in crimeprevention. We have strengthened the useof digital technology in crime prevention toprevent the risks of external fraud, internalfraud, and internal and external collusionagainst the Bank and customers' funds.
Focusing on financial consumer rightsprotection, we carry out auditing supervisionon consumer rights protection, take consumerrights protection as an audit priority andinclude it in the scope of comprehensiveinternal auditing and other relevantauditing.
We devote to maintaining a stable nancialorder. We continue AML and anti-terroristnancing audit-based supervision, and alsoinspect and evaluate the compliance ofmoney laundering risk management and theeffectiveness of internal control, to betterprotect the Bank from money launderingrisks.
In 2023Number of conducted comprehensive andspecial audits focusing on key areas suchas the implementation of national policies,the execution of corporate strategies, andthe prevention and control of businessrisks.
Number of policies were formulatedand revised
Number of policies were formulatedsuch asAdministrative Measures forAudit Rectication and Interview (Trial)
among them
Number of policies were revised suchasthe Implementation Rules of Anti-Money Laundering at Huaxia Bank'sAudit Business Lines
We have strengthened the prevention and control of nancial litigation risks, consumer rights protection and anti-money laundering (AML) auditingsupervision. By vigorously promoting digital and standardized auditing, we give full play to the supervision and evaluation functions of auditing.
Launching auditing supervision
Launching auditing supervision in dierent areas
Risk prevention and control ofnancial cases
Consumer rights protectionRisk prevention and control
of money laundering
We continue upholding the principles of "digital auditing, agile auditing, intelligent auditing andvalue auditing" and improving the comprehensive auditing supervision system of the "one-sixmodel".We utilize the role of the audit risk monitoring and analysis mechanism that integrates institutionalsupervision with vertical and horizontal supervision, to improve the audit supervision system.We strictly implement the audit quality management system consisting of control during andsupervision after the event and annual assessment, and strengthen the quality control of audits onkey tasks and key projects.We organize internal audit project inspection and annual auditing quality self-assessment tocomprehensively review the internal auditing and eectively improve the auditing quality.Building a stronger team of auditors. We have formulated a recruitment plan, and broadenedrecruitment channels, especially for specialists in digital auditing.
We strengthen research on digital auditing application, and make full use of online and offlineresources to train auditors. We also organize competitions to foster a proactive audit culture.
Participants in totalLegal training sessions heldParticipants in totalLectures and training sessions on anti-nancial crimes organized
Governance Strengthening CSR Governanceto Consolidate the Foundation of Development1423
114115
According to laws, regulations and requirements related to cybersecurity and information security, the Bankhas established a sound security protection system, strengthened data security management and the use oftechnological tools, and improved the capabilities of protecting personal information and data security, thusproviding clients with more secure nancial services.Spotlight
We have improved information security system by perfecting information security management structure andexpanding the contingent of online security personnel to boost information management.
Increase over the previous year
drills
Emergency drills for information security
?Huaxia Bank has established the cybersecurity accountability system for the Party Committees at all levels,and issued theMeasures for the Accountability for Cybersecurity of the Party Committees at All Levelstomake it clear that the Party Committee at all levels assume the primary responsibility for cybersecurity.
?We implement the policies and regulations of the national competent and regulatory authorities, improvethe IT governance structure in line with business development, and optimize the cybersecurity managementmechanism.
?We have strengthened the coordinated cybersecurity management work across the Bank.?The application security departments and oces are set up and information security ocers appointed tostrengthen security management.
?We have improved the evaluation process and standards to select attack and defence specialists, and improvethe capability to identify vulnerabilities.?We carry out special training sessions to raise the sta’s awareness of cybersecurity, increase their knowledgeof related regulations and improve their practical skills of attack and defence.
Clarifying the central role of the Party Committees
at all levels in cybersecurity
Eectively fullling responsibilities for cybersecurity
Continuously strengthening the cybersecurity team
Holding the National Cybersecurity Awareness Week 2023 eventCaseThe Beijing Branch, in collaboration with the Beijing Municipal Branch of thePeople's Bank of China and the Beijing Cyberspace Administration of theBeijing Municipal Party Committee, organized the National CybersecurityAwareness Week 2023 event in the Laoshan Community of ShijingshanDistrict. The event was themed "Cybersecurity for the People and by thePeople," aiming to promote the message of "Starting with Myself forCybersecurity, Preventing Telecom Fraud, and Building CybersecurityTogether" to the public.
Launching cybersecurity awareness week trainingCase
The Haikou Branch organized the cybersecurity week awareness training with the theme of "Cybersecurity for the People and by the People." The training aimed topromote and disseminate knowledge about cybersecurity, as well as guide employees in learning relevant policies and regulations.
?We have formulated the technology security and risk management strategy and the administrative measuresfor technology security to regulate and guide the Bank’s cybersecurity management work.
?The eect of cybersecurity work is included in the performance assessment to ensure the eective fullmentof cybersecurity responsibilities.
Continuously improving thecybersecurity related policies
In 2023By in-person lecture, video meeting and livestream
Participants in total10,000+
Training sessions forinformation security ocers
Security attack and defence skillstraining sessions
Security knowledge lectures
among them
Safeguarding Cybersecurity andInformation Security, and EnhancingPersonal Privacy Protection
Strengthening system of cybersecurity andinformation security management
Cybersecurity training sessions
Governance Strengthening CSR Governanceto Consolidate the Foundation of Development
1423
117116
Optimizing cybersecurityprotection systems
Carrying out specialcybersecurity drills
Enhancing cybersecurityProtection
We have strengthened the ability of security protection and tracing and regularly conducted cybersecurity drills to ensure the safe and stable operation ofinformation systems.
Improving capabilities of cybersecurity and information security management
We have regulated the management of data security and customers’ personal information, improved management processes and operation requirementsof various links including information gathering, transmission and use, eectively protecting the security of consumers' personal information.
Personal information security and privacy protection
Ensuring the security and stability of network systems
Improving network security protection strategy
Case
Case
The Tianjin Branch deployed Advanced Persistent Threat (APT) and Intrusion Prevention System (IPS) detection devices in both the internet and intranet areas toenhance its network security protection capabilities and ensure the stability of network operations. The Branch also replaced network equipment in branch and sub-branch oces that exceeded the timeout limit, eectively improving overall network performance and the ability to detect and identify network security threats.
The Qingdao Branch conducted equipment updates and system transformations for the network systems in the central data center. Based on unied networkarchitecture planning, the overall network structure is managed at dierent levels and in dierent areas. Redundant backups were implemented for critical devices,and important transmission nodes were congured with two dierent network service providers' lines. Virtualization technology was utilized for the deploymentof most devices, eectively ensuring the stability of the network systems. Physical rewalls were deployed at the network core and external connections to denesecure zones and control access policies between them. Advanced Persistent Threat (APT) and Intrusion Detection System (IDS) detection devices were deployedacross the network, signicantly enhancing the overall security and control level of the branch.
We have built a "pyramid" structure based on the fordata security structure consisting of the "decision-making level, coordination and management leveland execution level" to coordinate and promote thedata security work of the Bank in a sustainable andstable manner.
We have deployed an internet-based email data leakprevention system to issue alerts against sensitiveinformation, deployed API interface monitoringdevices to prevent personal information theft, anddeployed a desktop control system to analyze andidentify sensitive keywords in transmitted contentand to trace data les.
Huaxia Bank has formulated and revised theAdministrative Measures for DataSecurity,Implementation Rules for Data Security Management, ImplementationRules for Production Data Management of Information Systems, and others,clarifying the management requirements for data processing and transmissionsecurity, and consolidating the foundation for the protection of personalinformation.
We have consolidated the privacy clauses of service channels and formulated andissuedthe Personal Information Protection Policy of Huaxia Bank. In accordancewith regulatory requirements, we strictly adhere to the principles of "only forbusiness necessity" and "the least privilege" to only obtain authorization fromcustomers for the privacy permissions used, thus ensuring the security of personalinformation collected.
We carry out special inspections to assess the riskof leakage of personal customer information inbusiness systems to prevent any such leakage. Wealso conduct random checks on the desensitizationof sensitive information in production data forenquiry transactions using core and peripheralsystems. Additionally, we launch special inspectionson test environments to ensure that the realinformation of personal customers will not be usedin these environments.
Building anorganizationalstructure for datasecurity
Ensuring more securepersonal information
gatheringImprovingdata securitymanagement
policies
Strengtheningtechnologicalmeans for personalinformationprotectionCarrying outpersonal informationsecurity inspection
The Bank's "Cloud-Native Security Management Platform" hassuccessfully passed the advanced-level capability assessment of the Cloud-Native Application Protection Platform (CNAPP) by the China Academyof Information and Communications Technology. Our bank has become therst domestic bank to receive this qualication and has been awarded asthe "Outstanding Case of Cloud-Native Security for the Year 2023."
We have improved the enterprise-levelintegrated defence system covering threecenters in two places, formed a four-tiered deep defence line from the borderto the core, and strengthened securityprotection and tracing capabilities so asto eectively protect the security of theBank's systems.
We continually carry out enterprise-levelcybersecurity attack and defence drills withunlimited attack targets, unlimited attackpaths and real network environments tostrengthen the monitoring and emergencyresponse capabilities for social engineering,supply chain attacks, zero-day exploits andransomware.
In accordance with the requirements of thecompetent and regulatory authorities, theHead Office coordinates and collaborateswith the branches to issue early warningsagainst and cope with cybersecurity risks.We have successfully completed thecybersecurity protection work during theChengdu FISU World University Gamesand the Hangzhou Asian Games, the thirdBelt and Road Forum for InternationalCooperation and other major events.
Governance Strengthening CSR Governanceto Consolidate the Foundation of Development
1423
118119
Appendix: CSR Performance
Economic Performance
IndexUnit202120222023Total assetRMB billion3,676.2873,900.1674,254.766Operating revenueRMB billion95.87093.80893.207Total protRMB billion31.49333.58335.439Net protRMB billion23.90325.4926.363Total depositsRMB billion1,904.3632,063.8742,129.945Total loansRMB billion2,213.5292,272.9732,309.583Balance of loans to MSEsRMB billion490.749565.470584.973Balance of loans in support of strategic emerging industriesRMB billion97.321104.587103.623Balance of loans in support of manufacturing industryRMB billion190.744212.827234.265Balance of agriculture-related loansRMB billion255.980271.538278.621CAR%12.8213.2712.23Allowance-to-NPL ratio%150.99159.88160.06ROA%0.670.670.66ROE%9.049.008.71NPL ratio%1.771.751.67
Social PerformanceIndexUnit202120222023Number of outlets/1,008987982Number of rural outlets/109109108Number of online corporate banking transactions10,0002,759.332,661.082,947.60Number of online personal banking transactions10,0001,651.141,597.291,661.7595577 call-backs/130,637580,7101,104,592Customer satisfaction rate for 95577 customer servicecenter
%99.6699.6399.65Number of employee training sessions/5,2006,9137,829Number of participants of employee training sessions/531,553640,050622,620Total workforce/39,17539,93840,293Percentage of female employees%51.4351.3951.57Total charitable donations10,0001,451.52,138.537,057.93Number of participants of legal training sessions/31,80339,74142,472Number of participants of AML training sessions/135,000137,755127,291
Environmental Performance
IndexUnit202120222023Balance of green loansRMB billion208.477247.035269.273Increase of green loans from the beginning of the yearRMB billion28.43438.55822.238CO2 equivalence of reductions of projects supported bygreen loans
10,000t311.11278.59260.84Balance of climate-related nancing businessRMB billion206.567252.145265.105Balance of green investment businessRMB billion14.26321.11122.302
The data of green loan balance in 2023 was based on the Special Statistics System of Green Loan revised by the People's Bank of China in December 2019
IndexUnit202120222023Accumulative value of ESG AUMRMB billion26.33828.96929.504Number of ETC cards users10,000254.81261.79270.37Number of e-transactions10,000322,655.98405,259.04630,328.53Proportion of the services handled via electronic channel%98.3499.4299.58
120121
Appendix: CSR Performance
GRI Content Index
GRI standardDisclosure itemPage/ Remarks
GRI 1:Foundation 2021GRI 2:General disclosures 2021
2-1Organizational detailsP62-2Entities included in the organization’s sustainability reportingP12-3Reporting period, frequency and contact pointP12-4Restatements of informationP120-1212-5External assuranceP124-1272-6Activities, value chain and other business relationshipsP62-7EmployeesP70-712-9Governance structure and compositionP1062-11Chair of the highest governance bodyP52-12Role of the highest governance body in overseeing the management of impactsP182-13Delegation of responsibility for managing impactsP182-14Role of the highest governance body in sustainability reportingP1072-16Communication of critical concernsP212-22Statement on sustainable development strategyP4-52-23Policy commitmentsP182-24Embedding policy commitmentsP4-52-28Membership associationsP182-29Approach to stakeholder engagementP212-30Collective bargaining agreementsP70GRI 3: Material Topics 20213-1Process to determine material topicsP193-2List of material topicsP193-3Management of material topicsP19EconomicGRI 201 Economic Performance 2016
201-1Direct economic value generated and distributedP7201-2Financial implications and other risks and opportunities due to climate changeP87-90201-3Dened benet plan obligations and other retirement plansP70-77GRI 203 Indirect Economic Impacts 2016
203-1Infrastructure investments and services supportedP28-31203-2Signicant indirect economic impactsP28-31
Global Reporting Initiative(GRI)GRI Sustainability Reporting Standards (GRI Standards) 2021 Reporting Index
GRI standardDisclosure itemPage/ Remarks
GRI 205 Anti-corruption 2016205-2Communication and training about anti-corruption policies and proceduresP14-15GRI 207: Tax 2019207-3Stakeholder engagement and management of concerns relatedP21EnvironmentalGRI 302 Energy 2016302-1Energy consumption within the organizationP95302-4Reduction of energy consumptionP94-96302-5 Reductions in energy requirements of products and servicesP94GRI 304 Biodiversity 2016304-3Habitats protected or restoredP93GRI 305: Emissions 2016305-1Direct (Scope 1) GHG emissionsP95305-2Energy indirect (Scope 2) GHG emissionsP95SocialGRI 401: Employment 2016401-2Benets provided to full-time employees that are not provided to temporary or part-time employeesP70Occupational Health and Safety 2018
403-1Occupational health and safety management systemP70403-3Occupational health servicesP70403-6Promotion of worker healthP70GRI 404: Training and Education 2016404-2Programs for upgrading employee skills and transition assistance programsP72-73GRI 405: Diversity and Equal Opportunity 2016405-1Diversity of governance bodies and employeesP70GRI 413: Local Communities 2016413-1Operations with local community engagement, impact assessments, and development programsP66GRI 416: Customer Health and Safety 2016416-1Assessment of the health and safety impacts of product and service categoriesP78-83GRI 417: Marketing and Labeling 2016417-1Requirements for product and service information and labelingP78-83
122123
GRI Content Index
Independent Assurance Report
124125
Independent Assurance Report
126127
Independent Assurance Report
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