China Everbright Group

中国光大

Everbright Future

China E

verbright Group

2018 Corporate S

ocial Responsibility R

eport

Printed with recycled paper

China Everbright Group

Address: China Everbright Center, No.25 Taipingqiao Street, Xicheng District, Beijing

Postal Code: 100033

Tel: +86-10-63638925

Fax: +86-10-63639941

Website: www.ebchina.com

68 Uniting in a Concerted Effort and Pursuing for a Joint Development

70 Win-win Cooperation73 Overseas Joint Construction74 Peaceful Co-existence

60 Increasing Vitality and Gathering Energy

62 Rights Protection63 Vitality Motivation64 Culture Promotion

52 Protecting Ecology and Beautifying Homeland

54 Green Industry57 Green Finance58 Green Operation

30 Establishing Public Reputation and Building Brand Image

32 Financial Sector34 Industrial Sector36 Serving Brand

38 Focusing on Innovation and Promoting Transformation

40 Technology and Innovation Management

41 Innovation Practice43 EfficientCollaboration

46 Guarding the Bottom Line and Risks Preventing

48 Strict Governance over the Party49 Compliance with Laws and

Regulations50 Prudent Operation

76 Responsibility, A More Beautiful Future

78 Expert Opinions

79 Report Index

80 Feedback Form

Contents

Dear readers, the China Everbright Group’s Corporate Social Responsibility Report of 2018 is officially released. It is a systematicaldisclosureoftheGroup'sideas,actions,typicalpracticesandperformanceinfulfillingitssocialresponsibilitiesin economy, society and environment in 2018. The released report is based on the principles of objectivity, normativity, transparency and comprehensiveness. The report is available in both Chinese and English versions. In case of any discrepancy, the Chinese version shall prevail.

About the Report

Reporting Period

The current reporting period is from January 1, 2018 to December 31, 2018. To guarantee the consistency and comparability, some contents of the report may trace back to previous years.

Release Cycle

The report is an annual report and is generally released in the second quarter of the following year.

Organizational Scope

This report covers the headquarters and subsidiaries of China Everbright Group. For the convenience of presentation and reading, in the report, “China Everbright Group” is also referred to as “Everbright Group”, “Everbright”, “The Group” or “We”.

Compilation Basis

· The 2030 Agenda for Sustainable Development by the United Nations

· GRI Sustainability Reporting Standards (GRI Standards) issued by the Global Sustainability Standard Board (GRI)

· Guidance on Social Responsibility Reporting (GB/T 36001-2015)

· Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises (CASS-CSR4.0) issued by the Research Center for Corporate Social Responsibility, Economics Division, Chinese Academy of Social Sciences

Data Source

ThefinancialdatacitedinthereportarefromEverbrightGroup’sAnnual Report of 2018. Other data are acquired from internalorexternalofficialdocumentsofEverbrightGroup.

The unit of account here in is RMB unless otherwise stated.

Access to the Report

The report is available in both printed version and electronic version. You may download the electronic version of this reportfromEverbrightGroup’swebsiteathttp://www.ebchina.com.

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

02 Sincere Greetings

04 About Everbright

14 Focusing on Responsibility

22 Showing Aspiration with Great Ambition

24 Leadership of Party Building26 Mission Undertaken29 Open Development

Corporate Social Responsibility Report 2018

2 3

China Everbright Group | Everbright, forever

Party Secretary and Chairman of China Everbright Group

Party Secretary and Chairman of China Everbright Group

Sincere Greetings Increasingly promoting innovation-driven development and promoting transformation and upgrading. We strengthen the support of innovation strategy and keep doing our best to build an innovative enterprise. We enhance the management of sci-tech innovation by implementing the strategy of technological innovation, promoting the construction of sci-tech management mechanism and strengthening information-based management. We carry out innovation practices, create an innovation atmosphere internally within the company, strengthen exchanges and cooperation externally with other parties, and improve our products and services through innovation. With E-SBU strategy as one of our key points of our mid- and long term development strategy, we have built a coordinated and open E-SBU development model centering on the six E-SBUs, namely wealth, investment, investment bank, environmental protection, tourism and health, and the coordinated development effect has gradually emerged.

Casting a gate to ensure safety and holding the bottom line of risk. We perfect the responsibility-based mechanism, strengthen Party disciplines, and implement the spirit of the Central Committee's Eight-point decision on strengthening political inspection, enhancing execution capability. We manage the enterprise strictly according to law to prevent any legal risks, so as to ensure compliance with laws and regulations in all lines of business. We steadily promote the construction of a comprehensive risk management system with the “Three Lines of Defense” and “Four Firewalls” as the main concept and adopt the proper business department divisional model in the system, as well as exploring the appropriate measures to properly insulate industrial and financialenterprisesfromrisks.

Taking root in green business and carrying out green operation. We implement the strategy of “Integrated Environmental Protection”, cultivate the world-leading eco-environmental enterprise and create distinctive environmental protection projects in six fields including environment-friendly energy, environment-friendly water services, green environmental protection, environmental technology, equipment manufacturing and international business. We proactivelygivefullplaytotheroleofthefinancialresourceallocation,anddirectflowoffinancialresourcestogreenandsustainable development projects with innovation of green financialproductsandservice.Atthesametime,wesupportthe development of energy conservation and environmental protection industries. We carry out operation integrated with the concept of green environmental protection. While continuing to promote low-carbon development, we cultivate the green and low-carbon work and lifestyle of our employees.

The year 2018 marks the 35th anniversary of Everbright Group. Over the past 35 years, we have always adhered to the justice and shared interests. We pay close attention to the coordinated development between the enterprise as well as with the overall economy, society, culture and environment. At the same time, we are always accountable to our shareholders, to the customers, to the employees, to the environment and to the society. In the global market and world stage, we uphold the business philosophy of “win-win cooperation” to build a responsible and reliable image of Chinese enterprises. The year of 2018 is also a year of harvest for Everbright Group. In 2018, guided by General Secretary Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we earnestly and conscientiously implemented the guiding principles and the spirit of the 19th CPC National Congress. In accordance with thecompany’sstrategicambitionofbuildingaworld-classfinancialholdingsgroupatthebeginningoftheyear,we made tremendous progress while maintaining stability, combining quality and efficiency, striving for success unceasingly and working hard, thus, successfully achieved a noticeable good start.

Deepening Everbright culture and caring for employees' development. We intensify talent selection and recruitment with market-oriented principles, focusing on the “Five Castings” and highlighting “Six Capabilities”. We launch the “Everbright Talent Pavilion” plan and carry out dual selection for young employees. We formulate the “27 Everbright Rules” to encourage cadres to take their responsibilities, soastoensurethepersonnelgrowthwithaflexibletalentmechanism. We cultivate Everbright new culture, carrying out employee services and cultural activities, so that Everbright Group will become the cradle for every employee to grow up, a fulcrum for them to pursue dreams, and a harbor for them to rest.

Cherishing cooperation with partners and adapting into community construction. We adhere to the principle of opennessandsharing;carryoutdiversifiedcooperationwithstakeholders such as local governments, various enterprises, cultural and educational institutions and trade organizations in expansion and depth. In 2018, Everbright Group held talks and signed contracts with 77 strategic customers, covering more than 10 provinces and cities in China as well as Egypt, the United Arab Emirates and other countries. We have complemented each other with our respective strengths and achieved win-win cooperation. In our overseas operations, we support local economic and social development and assume our responsibilities as a global citizenship responsibility. We devote ourselves and engaged to social public welfare undertakings, and participate in charity donations, community assistance and other activities to build a harmonious and beautiful society.

The general trend is approaching, and the future has come. The year of 2019 marks the 70th anniversary of the founding of thePeople’sRepublicofChina,and it isalsoacrucialyear to secure a decisive victory in building a moderately prosperous society in all respects. We will further enhance our sense of responsibility and sense of urgency, create another “Year of Value Creation”, and constantly push forward the development higher, deeper and stronger. We will work hand in hand with other stakeholders to make new greater contributions in order to secure a decisive victory in building a moderately prosperous society in all respects and achieving the “Two Centenary” goals!

Uniting the sense of responsibility and upgrading responsibility management. We always pursue the unification of the value of commerce, the value of the times and the value of individual.Undertheguidanceofthecompany’scorporatevision of “Everbright, forever”, we creatively come up with the proposal of the “Sunshine” Responsibility Model. The “Sunshine” Responsibility Model explains our CSR philosophy and clarifies our action path of fully and comprehensively integrating social responsibility into our development strategy, daily management and daily business operation. It will bring endless impetus and energy to help us achieve our organizational strategic ambition of building a world-class financialholdingsgroupwithglobalcompetitiveness.

Following the guidance and leadership of Party Building and implementing the national strategy. We innovate the work concepts of Party Building and propose the overall requirements for “Three-Three-Five” Party Building work overall requirement. We implement the performance appraisal system for Party Building, work ceaselessly to improve Party conduct and strictly enforce Party disciplines. We make full use of our advantages in integrating both of industry and finance with the purpose to facilitate the implementation of national strategies. Such national strategies include the coordinated development of Beijing-Tianjin-Hebei Regions, the construction of Guangdong-Hong Kong-Macao Greater Bay Area, and the development of the Yangtze River Economic Belt. We will actively support the Real Economy, open up funds to reach the “Last Mile” of the Real Economy. We insist on utilizing our full advantages in our financial sector and industrial sector to boost rural revitalization. We will adhere to the opening up policy and support the Belt and Road Initiatives.

Optimizing products services and building the Everbright brand. Being customer-oriented, we shape and cultivate “Everbright brand” with global influence. We actively implement the “Three Reputations and Four Delicacies” to build the core competitiveness of financial service. At the same t ime, we continue opt imizing “Three Comprehensivenesses and One Innovation” industrial layout. We create and explore inclusive health care, integrate and develop comprehensive tourism, enhance and expand integrated environmental protection and explore tech-innovation. We actively listen to the needs of our customers to enhance customer sense of happiness, ownership and security. We optimize our service processes and patterns to effectively improve customer experience. Also, we guarantee the rights and interests of customers and create value for them with intelligent, standardized and normalized services.


4 5


Sun Life Everbright Life Insurance Co., Ltd.

EverbrightJin’ouAssetManagem

entLimited

China Youth Travel G

roup

China Everbright Technology Lim

ited

China Youth Industrial D

evelopment C

orporation

Everbright Financial Holding Asset M

anagement C

o., Ltd.

Everbright Xinglong Trust Co., Ltd.

Everbright Securities Com

pany Limited

China Everbright Industrial (G

roup) Com

pany Limited

China Everbright H

oldings Com

pany Limited

InMay1983,EverbrightGroupwasestablished inHongKongandofficiallystartedoperationonAugust18,1983. Intheearly stage, we were mainly engaged in foreign trade and industrial investment, and actively practiced the ice-breaking journey of reform and opening-up. In December 2014, the Group was transformed from a solely state-owned enterprise into ajoint-stockcompany,andofficiallychangeditsnameto“ChinaEverbrightGroup”.

With thedevelopment in thepast35years,EverbrightGrouphasbecomea largestate-ownedcomprehensivefinancialholdings group, covering finance sector and manufacture production sector in Hong Kong and mainland China with numerous institutions and lines of business at home and abroad. The Group offers financial services such as banking, securities, insurance, asset management, trusts and funds, and it also engaged in distinctive industries such as environmental protection, tourism, health and high-tech. The Group is featured as a large state-owned comprehensive financialholdingsgroupwithcomprehensivefinance,industry-financecooperation,andland-portlinkage.In2018,EverbrightGroup ranked the 322nd in the Fortune Global 500 list.

About Everbright

China Everbright International LimitedChina Everbright Limited


China Everbright Bank C

ompany Lim

ited


6 7


Net profit (RMB 100 mn)

1,425

3,313

5,216

2016 2017 2018

410.94 418.96

2016 2017

Operation revenue (RMB 100 mn)

1,615.90

1,313.351,360.33

2016 2017 2018 201850.78% 49.22%

Male Female

Gender ratio structure of employees

421.00

43,622.1144,683.44

2016 2017 2018

47,851.86

Funding for poverty alleviation (RMB 10,000)

Economic Performance

Total assets (RMB 100 mn)

166 headquarters contracts were reviewed

Amount of headquarters contracts reached about

RMB 60.3

bn

643 subordinateenterprises’trademarksand trade name license applications were re-examined and authorized

Number of cities with environmental protection

projects

Environmental investment amount (RMB 100 mn)

532.60

730.62

944.89

2016 2017 2018

Number of waste-to-energy (WTE) projects

69 89113

2016 2017 2018

84131

160

2016 2017 2018

Environmental Performance

environmental protection projects are under construction or put into operation259

Social Performance

Social insurance coverage for employees reached

100 %

Physical examination coverage for employees was

100 %

Held talks or signed contracts with

77 strategic customers

Total employment amounted to

90,880


8 9


2018-2022

2022-2027

Corporate Governance

We constantly improve the level of corporate governance in strict accordance with the Articles of Association and various corporategovernancesystems.Wesafeguardshareholders’ rightsand interests,createvalue forshareholders,complywith relevant regulations and requirements and promptly pass dividends to shareholders. We promote the modernization of corporate governance system and governance capacity, continuously improve the information disclosure system, and proactively accept public supervision.

Governance Framework

We have built a corporate governance framework in which the Shareholders exercise power according to law, the BoardofDirectorsmakesscientificdecisions,aswellas theBoardofSupervisorsexerciseeffectivesupervisionandthe Senior Management implements decisions efficiently. We have formed a scientific labor division and a balance mechanism to promote the sustainable development of Everbright Group with a professional and standardized governance mechanism.

Investor Relationship Management

Wesubmit to theShareholders’Meeting to reviewmajor issues related toEverbrightGroup inaccordancewith theprovisions of the corporate governance system. We have set up a communication platform, proactively communicated with and reported to shareholders, and quickly responded to various requests of business inquiries and material submissionfromshareholders.In2018,EverbrightGroupheld6shareholders’meetings,deliberatedandpassed26bills,and listened to 4 reports.

Information Disclosure

We committed to continue improving the information disclosure system, strictly manage information disclosure, regularlyreleasefinancialreports,andtimelydiscloserelevant informationsuchasmajorbusinessdecisions,economicperformanceandsocialon-fieldactivitiesofEverbrightGroup through itsofficialwebsite,WeChatofficialaccountandother public channels.

Board of Supervisors

Board of Directors

Senior Management/Executive Committee

Corporate Strategy

We always keep our pace with the great era and thrive in the era. We worked harder and harder, and came along the way from being starter to bigger, and then to the new phase of becoming stronger. At the new historical point of China entering a new era, in the complicated and changeable macro-economic situation, we will strive for stability, make steady improvement, constantly seek and seize opportunities in change and meet new challenges.

We continued making performance evaluation with our peers and competitors, identify market opportunities, determine developmentorientation,andput forwardthestrategicambitionofbuildingEverbrightGroup intoaworld-classfinancialholdings group with global competitiveness. We implement the three strategic transformations of “Agility, Technology, and Ecology”, and promote the implementation of “Eight Strategic” initiatives. We strive to cultivate “four world-leading companies”,“threefirst-classcompaniesinChina”,and“threedistinctivecompaniesinChina”torealizethegoalofrefiningfinance,optimizingrealindustry,andstrengtheningtheGroup.

In 2018, Everbright Group achieved strategic optimization. We embarked on a new journey to show new achievements and create new atmosphere. We have been making good achievements and outstanding performance in the new era.

4

2

5 6 7 8

Our Vision: Everbright, forever

Our Value: aspiration, quality, unique characteristics, innovation, dedication to the bottom line, reputation, vigor, and sense of responsibility

Build a world-class financial holdings group with global competitiveness

Agility Technology Ecology

1Comprehensively deepening reform

Technological innovation

3 E-SBU coordination

Investment, financingand

M&A

Financial holding risk

management

Human capital management

Corporate culture and brand

management

Internationalization and Mainland-HK

integration

RefiningFinance

Banking Security Insurance Trust Asset management

Optimizing Real Industry

Inclusive health care

Comprehensive tourism

Integrated environmental

protection

Implementation route: We will implement our strategic

targets by two steps over 10 years

Step 1

Step 2

Aworld-classfinancialholdingsgroupwith global competitiveness

Thefirst-classfinancialholdingsgroupinChina

Strategy and Investment Committee

Nomination and Performance Supervision

Committee

Finance and Internal Control Supervision Committee

Audit and Risk Management Committee

Nomination Committee

Compensation Committee

Shareholders’ Meeting


10 11


We take the corporate vision of “Everbright, forever” as the starting and ending point of all ourwork.Wecontinuemakingour industrialandfinancialservices toenhancethesenseofownership, happiness and security of our stakeholders.

Thestrategictransformationof“Agility,TechnologyandEcology”isthedrivingforceforustofulfillour social responsibilities. Agile transformation, with the connotation of “performance culture, flat framework,rapiddecision-makingandflexibleteam”,isthedrivingforceofthesystemandinstitutionalmechanism. Technological transformation, with the connotation of “promoting connection, enabling energy, innovation, and building a digital technology to support and drive the system”, is the driving force of technological innovation. Ecological transformation, with the connotation of “adhering to openness, sharing and connectivity, and building a characteristic business model based on ecology andplatform”,isthedrivingforceofthecompany’sbusinessmodel.

CSR theme

In combination with our “Eight Values”, we have identified seven CSR themes with Everbright characteristics, namely, “Showing aspiration”, “Establishing reputation”, “Focusing on innovation”, “Guarding the bottom line”, “Protecting ecology”, “Increasing vitality”, and “Uniting in a concerted effort”. Among them, “Showing aspiration” is to follow the guidance of Party Building and implement the national strategies; “Establishing reputation” is to optimize products and services, and build Everbright brand; “Focusing on innovation” is to enhance innovation-driven development and promote transformation and upgrading; “Guarding the bottom line” is to ensure safety and hold the bottom line of risks; “Protecting ecology” is to take root in green business and carry out green operation; “Increasing vitality” is to promote Everbright culture and care for employee's development; “Uniting in a concerted effort” is to cherish partners cooperation and integrate into community construction.

・�TheGroupfulfillssocialresponsibilitiesbasedonfinancialservicessuchasbanking,securities,insurance, trusts and asset management, and characteristic industries such as inclusive health care, comprehensive tourism and integrated environmental protection. The Group outputs “Light Energy”throughrefiningfinanceandoptimizingrealindustry.

・�The Group constructs a CSR “Ecosphere” of responsibility for government, shareholder, customers, partners, employees, peers, environment, community, and other stakeholder groups directly or indirectly affected by the business operations.

・�Guided by the three-layer hierarchy of CSR theory, the Group establishes a three-layer CSR fulfillmentmechanismof“ComprehensiveRisksControl-HighQualityDevelopmentPursue-SocialProgress Promotion”, so as to realize benign interaction between business development and stakeholders, through which “Photosynthesis” takes place.

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

We will fulfill social responsibility and promote sustainable development in a way similar with “Photosynthesis” that occurs in nature. Photosynthesis turns light energy into chemical energy and stores it in organic matter, which is crucial to the survival of almost all living things in the biological world. At the same time, it releases oxygen (or hydrogen) to fuel the carbon-oxygen cycle on earth.

Realization

Everbright, forever

Agility

Tech

nolo

gy

EcologyS

howing aspiration

Establishing reputation

Focusing on innovation

Guarding the bottom

line

Protecting ecology

Increasing vitalityU

niting in a concerted effort

Shareholder Customer

Staff Members

Community

EnvironmentPartner

Peer

Government

Comprehensively manage risksPursue high quality

development

Promote social progress

Banking Security Insurance Trust Asset management

Inclusive Health Care Comprehensive Tourism Integrated Environmental Protection

Responsibility ManagementWe actively make progress of the era and improve people's livelihood in business operations in accordance with the objective lawsofenterprise’sdevelopment.Guidedby the corporate vision of “Everbright, forever”, we explore ways to fulfill social responsibilities in line with the spirit of the eratheattributesofthefinancialholdingsgroup and Everbright's characteristics.

“Sunshine” Responsibility Model

Sunshine brings vigor to lives on the earth. We use “sunshine” to vividly interpret our ways to fulfill social responsibilities. It mainly has two layers of meaning. Firstly, sunshine is the source of energy for the earth and life, which symbolizes Everbright Group’sendogenousenergyandstrongmission to fulfill social responsibility and promote sustainable development. Secondly, sunshine means positive attitude and full of vigor and vitality, which shows EverbrightGroup’sunremittingpursuitandfirm commitment to create comprehensive economic, social and environmental values.

China Everbright “Sunshine” Responsibility Model

The “Sunshine” Responsibility Model systematically clarifies and presents the ways of comprehensively integrating social responsibility into development strategy, daily management and business operation:

Original CSR

intention

Driving force


12 13


Stakeholders

We put an emphasis on listening to the opinions of internal and external stakeholders, identify key stakeholders from different levels and business segments of Everbright Group headquarters and subsidiaries, and deeply understand and respond to their requirements and expectations.

Communication and Response Approach

Win-win cooperation

Integrity compliance

Implementation of strategic cooperation

Daily business communicationPartner

Basic rights and interests protection

Career development space

Work-life balance

Five insurances and one housing fund

Suggestion activity

“EverbrightFuture”WeChatOfficialAccountEmployees

High-quality products and services

Customer rights protection

Officialwebsite

Customer satisfaction investigationCustomers

Driving local development

Participating in charity

Serving poverty alleviation

Community investment

Voluntary activity

Targeted poverty alleviationCommunity

Implementation of national strategies

Deepening reform of state-owned enterprises

Compliance with laws and regulations in operation

Working conference and report

Regular information disclosure

Paying tax according to lawGovernment

Energy conservation

Ecological protection

Disclosure of environmental information

Environmental protection project open to the publicEnvironment

Maintaining a fair and orderly market

Promoting industry progress

Forum and exchange activity

Formulation of industry standardCounterparties

Improving corporate governance

Creating economic value

Strengthening risk management

Shareholders’Meeting

Financial report

Board of DirectorsShareholders

Relatively high

Importance to stakeholders

High

High

Green public welfare

Implementation of strategic cooperation

Contribution to industry development

Response to climate change

Inclusivefinance

Public welfare

Employee voluntary service

Charitable donation

Overseas business exploration

Supporting the development of local countries

Supply chain management

Material Topics

Topicidentification

We mainly collected topics and issues through management recommendations and suggestions, expert analysis, stakeholder feedback, and standard benchmarking of social responsibility, andfinallyidentified32socialresponsibilitytopicsand issues.

Topic analysis

We issued questionnaires through professional platforms and invited stakeholders to vote on the 32 social responsibility topics and issues. Participants were from the government, shareholders, customers, partners, staff members, community and other major stakeholders. A total of 3,608 valid questionnaires were collected.

Topic prioritization

We finally identified 14 material topics with the most concern, based on the voting results of stakeholders on social responsibility topics and issues, in combination with the development situation at home and abroad, as well as the internal and external development environment faced by Everbright Group. At the end, the topics are prioritized from the two dimensions of “importance to the sustainable development of Everbright Group” and “importance to stakeholders” according to the requirements of topic management and information disclosure in relevant standards of social responsibility.

Importance to the sustainable development of Everbright Group

Identified material topics

Identified material topics

General topics

Staff training and development

Employee right protection

Service quality

Customer information security

Greenoffice

Occupational wellbeing management

Energy conservation and emission reduction

Participation in community construction

Comprehensive risk management Innovative development

Win-win cooperation with partners

Promoting green business

Targeted poverty alleviation

Comprehensively deepening reform

High-quality products and services

Management and control of headquarters

Serve for the national strategies

Building of corporate culture

Compliance with laws and regulations

Prudent operation

Coordinated business development

Stakeholders Requirements and Expectations


14 15


Today, with the rapid growth of assets, the significant improvement of profitability, the gradual improvement of management, and the increasing recognition of social contribution, Everbright Group own a number of listed companies at home and abroad, including Everbright Bank, Everbright Securities, Everbright Limited, Everbright International, Everbright Grand China, China CYTS Tours Holding, Cachet, China Aircraft Leasing Group Holdings Limited, Everbright Jia Bao, Everbright Water, and Everbright Greentech.

1983-1990 Establishment

At the beginning of its establishment, Everbright Group was mainly engaged in foreign trade and industrial investment. It introduced a large number of advanced equipments and technologies for domestic enterprises, built a large number of industrial projects, and carried out cooperation with open coastal cities according to the national coastal development strategy. It was an important bridgehead in the early stage of China’sreformandopening-upandanimportant forerunnerofChina’sdevelopmentoffinancialholdingsgroup.

1990-2003 Strategic transformation

Everbright Group began to tilt its business toward the domesticandfinancialsectors,whileinvestinginHongKong’scapitalmarket. ItestablishedChinaEverbrightGroup, Everbright Bank and Everbright Securities, and acquired and restructured four listed companies in Hong Kong and Singapore, including Everbright International, Everbright Limited, China Everbright Technology and EverbrightAsiaPacific.

2003-2017 Reorganization and development

Everbright Group began to carry out strategic adjustment, reorganization and restructure. We successively established Everbright Industrial and Everbright AMC, completed the listing of Everbright Bank and Everbright Securities on A-share and H-share markets. Furthermore, we reorganized Everbright Insurance and acquired Everbright Trusts, while completing the strategic transformation of corporations in Hong Kong. In December 2017, China Youth Travel Service and China Everbright Industrial (Group) Company joined in the Group.

In July 1984

We changed the name to “China Everbright Holdings Company Limited”.

In November 1990

China Everbright Group head office was established in Beijing.

In August 2009

Everbright Securities was listed on the A-share market.

In August 2010

Everbright Bank was listed on the A-share market.

In December 2013

Everbright Bank was listed on the H-share market.

2015

Everbright Group made its debut in Fortune Global 500, ranking 420th.

2018-present new era and new journey

The new leadership of Everbright Group has established the strategic ambition of building world-class financial holdings group with two steps with ten years. We have strengthened Party Building, established the “Four-Beam and Eight-Pillar” strategic framework and the overall industrial strategy of “refining finance, optimizing real industry, and strengthening the Group”. We also focused on the “433” objectives, striving to achieve coordinated development in terms of quality, efficiency and scale. We earnestly fulfilled the political, economic and social responsibilities of central state-owned enterprises in China’seconomicandsocialdevelopment.

In December 2014

China Everbright Group inaugural meeting was held, and Everbright Group successfully completed the reform and reorganization.

In August 2016

Everbright Securities was listed on the H-share market.

Focusing on ResponsibilityRemaining True to the Original Aspiration and Go Ahead Bravely

Forty years ago, China adopted the policy of reform and opening-up, and the ancient Chinese nation embarked on a grand journey toward rejuvenation. China has spent 40 years writing a glorious epic of historical development of human and a new chapter of the era. “We must work hard to realize our great dreams, instead of waiting and shouting.” With this marvelous historical process, Everbright Group was established. Everbright Group has gradually developed from an external window to theforeigncountriesintheearlystageofChina’sreformandopening-uptoalargecomprehensivefinancialholdingsgrouprankedinFortuneGlobal500,whichhasbecomealiveexampleofthegreatprocessofChina’sreformandopening-up.

In May 1983

Everbright Group was established inHongKongandofficiallyopenedon August 18, 1983 registered as “Violight Industry Co., Ltd.”.


16 17


Strategy formulation shall go forward one inch ahead of the reform

Constructing the top-level design. Everbright Group has successively studied and issued guideline documents for reform such as Guidelines on Comprehensively Deepening Reform and Work Plan of Leading Institution on Comprehensively Deepening Reform. We have set up the Everbright Group LeadingGroupforComprehensivelyDeepeningReformandtheOfficeofDeepeningReform.Guidedbythecentralgovernment’srequirementsondeepeningreformofstate-ownedenterprisesandthefinancial system, we actively implemented our new strategy, emphasised on the systematicness, integrity and synergy of reform, and constantly raised the self-consciousness and capability of reform.

Establishing the mechanism for deepening reform. We have explored and enriched the “1+1+1+N” working mechanism for deepening reform, promoted implementation mechanisms such as assignmentpapers,supervisionlistandworkbriefing.Also,weclarifieddecision-makingmechanismssuch as group meeting, joint-committee and thematic meeting. We promoted reform in a forceful, orderlyandeffectivemannerinlinewiththeprincipleof“urgent-need-firstandproblem-oriented”.

We should hold high the banner of reform and opening-up in the new era and constantly deepen reforms in an all-round way.

-- Xi Jinping, General Secretary of the Communist Party of China Central Committee, President of the People’s Republic of China and Chairman of the Central Military Commission

Focusing on the key tasks. Based on the pointcut of stronger headquarters, and institutional construction as the main task, Everbright Group formulated major reform measures. We have made breakthroughs in the vital areas and the key links of reform, including headquarters building, talent development, incentive mechanism, decision-making and authorization.

Establishing the system of business department and subordinate department:We established three business departments, namely, Ecological and Environmental Protection Department, Cultural Tourism and Health Department, Sci-tech Innovation Department, with an additional center named Audit Center of Everbright Group.

Reforming corporate governance:We implemented vertical management for 5 subsidiaries.

Actively carrying out prospectiveresearch:We carried out research on valuation of comprehensive financialholdingsgroup,studied on international benchmarking cases, and held the First Everbright-Guanghua Financial Holding Forum.

Encouraging cadres to take responsibility:We formulated the “27 Guidelines for Everbright” to give cadres guidances of taking responsibility and acting boldly.

Establishingscientificassessmentsystem:We implemented the “Dual KPIs” assessment combining Party Building KPI with operation management KPI.

Exploring reform of compensationsystem:We formulated a series of compensation management systems to make compensation management process more scientific.

Improving incentive mechanism

Innovating the mechanism of talent selection and recruitment:We carried out public recruitment of talents in six segments and implemented the concept of “Six Capabilities”.

Innovating talent management:We formulated the Flexible Team Management Measures of Everbright Grouptobreakthefixedofficerestrictionsandstimulate the vitality of talents.

Refiningdecision-makingitems:We formulated and issued the Measures for the Implementation of the “Three importances and One Greatness” Policy-making System (Provisional), detailing the list of 71 “Three importances and One Greatness” items.

Establishing decision-making andauthorizationsystem:We drew up and issued the Guidelines on Improving the Decision-making Process and Authorization Management System, and initiated the construction of the decision-making and authorization system for Everbright Group and its subsidiaries.

Establishing the working mechanism of Executive Committee:We formed the mechanism for decision-making and supervision by which the Party Committee takes the lead and the Board of Directors, the Board of Supervisors, the Executive Committee, the Special Committee and the Operating Management Conference assume their respective responsibilities of decision-making and supervision.

Improving decision-making and

authorization process

Bridgehead of Reform and Opening-up

No matter how far the journey is, as long as you are willing to go forward you can reach the destination. No matter how hard it is, you can complete it if you are willing to do it.

Over the past 35 year, we started our business in trade and expanded it in real industry. As an important forerunner of Chinesefinancialholdingsgroup,wearefullofvitalityinthetransformationinthenewera.

Over the past 35 years, we have been followed up with the trend of the era, keeping pace with the country through thick and thinsharingthejoysandsorrows,andcontributedtothecountry’sconstructionwithourutterinnocence.

Over the past 35 years, we have made unremitting efforts to forge ahead, thrived under the care of people from all walks of life, and become the epitome of state-owned enterprises that is chasing Chinese dream with all efforts.

Create the Future Through Hard Work and Accelerate Development Through Reform

1 Deepening reform assistant

1 Functional departmentSeveral supporting

departments

++

+

1 Deepening reform commissioner

In 2018, Everbright Group held

10

meetings of the Team on Deepening Reform

7

meetingsoftheOfficeof Deepening Reform

more than

50

thematic meetings

and drafted

21

research reports

Strengthening capacity building at the headquarters

Optimizing talent team construction

Key tasks of deepening reformIn 2019, Everbright Group will continue insisting on the mission of creating a better life for the

people, persist in reform and innovation, and strive to write another glorious chapter.


18 19


We utilized our advantages in professional technology, talent team and market resources as a financial holdings group andexploredauniquefinancialpovertyalleviationmodel.Wesetupbankbranchesinpoorareastoexpandthescopeoffinancialservices.Inconnectionwiththepovertyalleviationprogram,westrengthenedcreditsupportforpovertyalleviationprojects. We strengthened e-commerce poverty alleviation efforts relying on our cloud payment and e-commerce platform “Marvelous Purchase”. Also, we explored a comprehensive poverty alleviation model represented by “Securities +” relying on expertise and customer resources of Everbright Securities, and guided Xintian County to raise more than RMB 1 bn with “securities + capital” model. Nevertheless, we gave full play to our advantages in insurance services and donated RMB 252 mn of accidental injury and accidental medical insurance to Guzhang County.

As Menlouxia Yao Minority Township is located in the remote area of Xintian County, it is inconvenient for local villagers to deposit or withdraw money. To solve the problem, Everbright Bank adopted a precise and efficient poverty alleviation initiative. Within just 27 working days, we set up one self-service bank branch and tworuralATMservicepoints,effectivelyfillingthe“blindarea”offinancialservicesinpoorruralareas.

The first rural financial service branch is opened

Xintian County Menlouxia Yao Township Self-service Bank and

Rural ATM Service Point

China Everbright Bank Yongzhou Xintian Sub-branch

China Everbright Bank Loudi Branch

China Everbright Bank Loudi Xinhua Sub-branch

We were awarded the honorary title of “Advanced Unit for Targeted Poverty

Alleviation Among Central State Organs” by the State Council

We were awarded the honorary title of “Advanced Collective for targeted

Poverty Alleviation” by the State Council

We won the “Good” grade (highest grade) inthefirstassessmentofthetargetedpoverty alleviation work of central units

Our experience and practices in targeted poverty alleviation have been selected in the “Yearbook of China’s Poverty Alleviation and

Development” for 6 consecutive years

The Industrial Poverty Alleviation Project of Guzhang County was selected as one of the “100 Classic Cases of Poverty Alleviation

in Hunan Province”

Focusing on Responsibility Boosting Poverty Alleviation for a Moderately Prosperous Society

For several years, Everbright has been committed to poverty alleviation. As the “National Team” offinancialholdings,wehaveborne inmindourpolitical responsibility.Since1995,wehaveundertaken the task of targeted poverty alleviation. In 2002, we started targeted poverty alleviation project in Xinhua County, Loudi City, Hunan Province. At the end of 2015, we enlarged the assistance to Guzhang County, Xiangxi Autonomous Prefecture, Xintian County in Yongzhou City. We have strengthened leadership and improved the Leading Group for Poverty Alleviation. The Chairman of the board of directors served as the group leader, and had set up the Poverty AlleviationOfficetostrengthenfunctions,workcoordinationandguidance.Wehavecoordinatedresources of all subsidiaries of Everbright Group and increased the investment of funds and other resources year by year. We have dispatched outstanding cadres to urge poverty-stricken counties to shoulder the main responsibility for poverty alleviation. Based on our advantages in comprehensivefinanceandindustry-financecooperation,wehaveintensifiedourpreciseefforts,and we found new ways of poverty alleviation. We focused on precision projects and did a good jointworkinpovertyalleviationbyfinance,industry,livelihoodandPartyBuilding.

By the end of 2018, Everbright Group had

implemented

353

assistance projects

invested a total amount of RMB

170 mn

and lifted

287,600

persons out of poverty

Everbright Group’s honor in poverty alleviation

We were awarded the honorary title of “National Advanced Collective for

Poverty Alleviation and Development” by the State Council

Financial Poverty Alleviation

We have set the following bank branches in poverty-stricken areas:

Menlouxia villagers show their new Everbright Bank cards

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We focused on helping local characteristic industry, green agriculture and cultural tourism projects, increased project support, paid attention to the “Hematopoietic” function of poverty alleviation projects and created conditions for the development of industrial poverty alleviation projects by setting up platforms, opening windows and building models. In 2018, Everbright Group invested RMB 3.7 mn in the tea industry in Guzhang County to build tea production lines, improvethequalityandefficiencyofteaindustryandpromotethebrandofMaojianTeaproducein Guzhang County. With the effort of poverty alleviation in the tea industry for more than three years, the output of tea in Guzhang County has increased from 4,300 tons to 9,000 tons. The total area of tea gardens has exceeded 165,000 mu, and the per capita tea garden area ranks first in Hunan Province. China CYTS Tours Holding held the 17th CYTS Alliance Member Conference in Xinhua County, a targeted poverty alleviation area of Everbright Group, during which the cultural tourism resources of the three poverty-stricken counties were promoted to nearly 100 domestic and foreign travel agents.

Ms. Deng Xiaoju, known as “Ms. Rice”, is an industrial small business owner in Xintian County, Hunan Province. The enterprise was struggling facing capital shortage, difficulty in applying for credit and single sales channel of products. Everbright Bank has utilized its professional advantages, opened a green channel for her, and assisted her in preparing credit materials and completing real property registration. We also helped her solve the problem of capital shortage and expanded the sales channel of her products by putting her products on our e-commerce platform “Marvelous Purchase”. At the same time, Everbright Securities effectively helped her enhance the internal management of the enterprise, improved the product structure and help the product sell abroad, regarding her business as the “one-county one-company” helping target.

Poverty Alleviation of People's Livelihood

Poverty Alleviation in Party Building

Wefocusonsolvingthepeople’slivelihoodissuesthatareofprimaryconcerntothepeopleandthegovernment,andmakebreakthroughs in key areas. We worked hard to promote poverty alleviation in terms of health care, employment, education and ecology, so as to increase their satisfaction in poor areas. In 2018, Everbright Group invested more than RMB 3.4 million to promote telemedicine projects in poverty-stricken counties, assisted Health and Family Planning Bureau of Xinhua County inbuildingtheremoteclinics.Thefacilities includedfivecounty-levelmedical institutionsandfivetownshiphealthcenters,and two village-level telemedicine clinics in Xinhua County and Xintian County. We helped poor people in poverty-stricken counties, precisely matching poverty alleviation projects with employability skills and jobs, providing skill training for more than 1,900 people, and realizing employment transfer of more than 1,300 people. We invested RMB 3 million in the construction of Everbright Hope Elementary Schools in Xihe Town and Jiqing Town, Xinhua County, invested RMB 3.9 million in the construction of Special Education Schools in Xintian County and Xinhua County and built “Love Book Houses” in 12 township schools in Xintian County, which effectively improved the conditions of local elementary and middle schools. We carried out the “Mingde”one-to-oneprogramtohelppoorstudents.WesetupacolumnonthefrontpageoftheofficialwebsiteofEverbrightGroupforemployeestoclaimfinancialaidingtargetsonlinetohelpfiledpoorstudentsthroughone-to-onedonation.In2018,we raised more than RMB 1,069,300 to help 1,464 poor students. Everbright Industrial actively carried out ecological poverty alleviation projects and built sanitary toilets and sewage treatment system in Niujiaoshan Village, Guzhang County.

In order to solve the problem of lacking medical services in poor areas and lacking medical treatment for villagers, Everbright Groupbuiltthefirstvillage-leveltelemedicineclinicinHunanProvince-LutangVillageTelemedicineClinic,MenlouxiaYaoMinorityTownship, Xintian County. Villagers can make an appointment with a contracted family doctor through the Online hospital platform. Based on the examination of patients by village doctors, experts from provincial, municipal and county hospitals participate in the diagnosis through video and audio, so that patients can receive expert diagnosis at home.

Sichuan Province has vast land, a lot of mountains and a large population of poor people. In view of the situation, Cachet, through B2B e-commerce model, with Sichuan Jiashi Rongjin Pharmaceutical Co., Ltd. as the distribution subject, distributed exclusive drugs and consumables to over 500 small medical institutions and clinics in remote areas with a preferential price. As a result, small medical institutions in remote areas effectively reduced procurement costs, improved capital turnover, improved the timelinessofdrugdistribution.Also,italleviatedthecurrentsituationofdifficultandexpensivedruguseinpoverty-strickenareas.

We helped “Ms. Rice” out of troubleThe first village-level medical clinic is opened to prevent poverty caused by illness

We give full play to our business advantages to find new ways to alleviate poverty

We set up a platform for cultural tourism promotion

Relying on its advantages in tourism and health care, China CYTS Tours Holding innovatively launched five product lines of Red Tourism, Rural Tourism, MICE Tourism, Scenic Tourism and Health care Tourism from the four fields of product R&D, mechanism platform, event marketing and organizational guarantee. At the same time, we actively built a platform for cultural tourism promotion and publicity in poverty-stricken counties. With a solid foundation, we have made solid achievements andhelpedpoverty-strickencountiesfightagainstpovertyand help people who lived in the areas strive for a more comfortable life.

CYTS Alliance Conference

We support village-level party branches in poverty-stricken counties in improving infrastructure and strengthening the position construction of primary-level organizations. In 2018, we spent more than RMB 7 million as the sponsorship from the Party to support Guzhang County in transforming village-level comprehensive service platforms and improving activity places of village-level party organizations. We support Party members in establishing poverty alleviation projects, cultivate leaders in poverty alleviation, earnestly enhance the organizational and fough the capacity of party organizations in poor areas, as well as making poverty alleviation in Party Building more effective.

The Party Branch of Everbright Group and the village-level party branch of poverty-stricken counties carried out “Five Ones” joint construction activities

Three organizations, Primary Party Branch of Everbright Industrial and Party Branch of Niujiaoshan Village, Guzhang County, Organ Party Branch of Everbright AMC and Party Branch of Shuangxing Village, Xinhua County, carried out “Five-One” construction activities. We organized exchanges and discussion on Party Building and participated in a Party lecture and an organizational event together. We visited poverty-stricken households, distributed donation of money and related materials, and completed the objectives of “jointly supporting a number of poverty-stricken households, jointly handling a practicalworkbenefitingthepeople,andjointlycarryingoutaheart-warmingactivity”.

Mr. Li Xiaopeng, Chairman of Everbright Group met with “Ms. Rice”

In 2018, Everbright Group

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Industrial Poverty Alleviation

invested RMB

16.2 mn

in three targeted poverty-stricken counties

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Aspiration is dream, strategy, culture, and the spiritual impe-

tus for an enterprise to make progress. We adhere to the

guidance and the leadership of Party Building, constantly

deepen and refine the Party Building, which is always taken

as a strategic guarantee. Keeping our mission in mind, we

take the initiative to serve and integrate it into the national

development strategy. We also keep the responsibility as a

leading financial holdings group in mind at all time. We pro-

mote openness and development, increase investment, and

expand cooperation areas to further promote implementation

of the Belt and Road Initiatives.

Showing Aspiration with Great Ambition

Leadership of Party Building

Mission Undertaken

Openness and Development


24 25


Improving the Structure of Party BuildingWe formulated and issued 100 Guidelines on Strengthening Party Building at the Primary Level for Everbright Group and measures for evaluating the performance of Party Building at directly subordinate enterprises and headquarters, and compiled Party Building budget, so as to strengthen Party Building at the primary level. We fully implemented the Regulations on the Work of Branches of the Communist Party of China, formulated and issued the 50 Guidelines of Everbright Group for Promoting the Standardized Construction of Party Branches and prepared the appraisal standards for Party branches, in a bid to effectively promote the standardized building of Party branches.

Leadership of Party BuildingStickingtotheParty’s leadershipandstrengtheningPartyBuildingaretherootandspiritofstate-ownedenterprises.Wealways take strengthening Party Building as a strategic guarantee and adhere to the guidance of General Secretary Xi Jinping ThoughtonSocialismwithChineseCharacteristicsforaNewEra.Wefirmlybuildthe“FourAwareness”,keepenhancing“FourConfidences”andeffectivelyaccomplish“TwoMaintenance”.WeexploreandformthedistinctivePartyBuildingoverallthoughtof Everbright group for a new era that focuses on the “Three Forces”, pays attention to the “Three Voices” and implements the “Five Dualities”, continuously carrying out and improving the work of Party Building.

We focus on enhancing the fightingcapacity,influenceand centripetal force of Party Building. Meanwhile, we gain a deeper understanding of the importance of strengthening Party Building under new circumstances.

We pay close attention to employees’compliments,requirements and complaints, and further explore practical and effective Party Building measures.

Weimplement“dualfirst-class, responsibility, coverage, budget, and KPIs” to further promote and form a primary-level-oriented Party Building situation.

Enriching Working Methods

In accordance with general idea on Party Building for a new era, we established a three-level system of responsibility for Party Building with the Party Committee of the Group, primary-level Party Committees, and Party branches as main body. We followed and deepened the “Five Dualities” requirements with “Dual First-class”, “Dual Responsibility”, “Dual Coverage” as key content, with “Dual Budget” as execution guarantee, and with “Dual KPIs” as assessment standard, and optimized working ways and methods oriented by “Positive Norms” + “Negative Supervision” .

Ideological Education for Party MembersWehavestudiedGeneralSecretaryXiJinping’sThoughtsonSocialismwithChineseCharacteristics foraNewEra,aswell as the guiding principles of the 19th CPC National Congress by means of intensive seminars and special guidance lectures. We took multiple measures to build a team with a clear political stand and with vision of big picture, responsibility and capability. We have studied and implemented the important speech delivered by General Secretary Xi Jinping during a conference to mark the 200th anniversary of the birth of Karl Marx, and invited professors from the Party School of the CentralCommittee todeliver thematic reports.Wepointedout thespiritof thePartyCentralCommittee’sOpinions on Further Inspiring Cadres to Take New Responsibilities and Perform New Tasks in a New Era, and held Party Committee Central Group Conference with the topic of “New Responsibilities, New Actions, Learning from Example, and Building First-class Company” and Model Worker Deeds Reports.

On the occasion of the 97th anniversary of the founding of the Communist Party of China (CPC), Everbright Group gathered two groups of party members from the headquarters to Nanjing to carry out the Party Day educational event with the theme of “Learning from example, taking responsibility and spearheading pioneer”. We organized party members an on-site visit of the environmental protection business exhibition hall, Party Building corridor and staff workplace of Everbright Environmental Protection Technology Research Institute on the spot. Nevertheless, we learned the advanced deeds of model workers of Everbright Group represented by Shao Zheru, so as to encourage them to play an exemplary role on the new journey of Everbright Group.

We carry out Party Day education event with the theme of “Learning from example, taking responsibility and spearheading pioneer”

Youth Travel Group strives to strengthen the construction of discipline inspection teams, and it further standardizes and improves institutions for discipline inspection. If the Party branch does not have members for discipline inspection, we will add members for discipline inspection. If there is a vacancy for members for discipline inspection, we will timely select members for discipline inspection. If the Party branch has only a few members, the Deputy Secretary shall concurrently serve as a member for discipline inspection. We have realized the comprehensive inspection of all the subsidiaries of Youth TravelGroupandrequiredinspectioninwrittenformandtimelyrectificationofnearly60issues.WeactivelycarryoutPartymember anti-corrupted governance education, anti-corrupted Education Month and other activities. Also, we combine anti-corrupted education and improvement of clean governance archives, and build the clean governance archives of the middle management and managers in the key positions of Youth Travel Group.

We correct mistakes with quick responses to implement the construction of an honest and clean Party

Construction of Primary-level Party Organization

quality of life of primary-level organizations, organized a seriesofPartyBuildingactivitieswiththegoalof“dualfirst-class”, and stimulated the enthusiasm of Party members in their work. We formulated opinions on team construction of primary-level Party branch leaders, accelerated IT application of Party member management system, and strengthened the standardized management of primary-level Party organizations and Party members. Primary-level Party organizations should be the schools for educating Party members, centers for uniting the masses and fortressesforovercomingdifficulties,andconstantlyopenup new prospects for primary-level Party Building.

Overall Party Building thought for a new era

We attach great importance to the primary-level Party Building. We held a meeting on primary-level Party Building in Xibaipo in which we exchanged views on primary-level Party Building, emphasised on the latest and the most difficult issues during primary-level Party Building, and proposed specific suggestions to solve these issues. We adjusted contact point of the Party Committee members of Everbright Group at the primary level and strengthened the guidance of the Party Committee to primary-level Party organizations. We carried out training for Party branch secretaries and Party workers to help them accurately grasp the requirements of Party Building and improve their ability to solve practical problems. We improved the

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Focus on the “Three Forces”

Pay attention to “Three Voices”

Implement the “Five Dualities”


26 27


Mission UndertakenWe have always closely aligned the development of the enterprise with the national strategies. Meanwhile, we actively facilitated the implementation of national strategies such as the coordinated development of Beijing-Tianjin-Hebei Region, the construction of Guangdong-Hong Kong-Macao Greater Bay Area, and the development of the Yangtze River Economic Belt. We took the initiative to assume responsibility and played a role as a central state-owned enterprise with practical actions.

Promoting Coordinated Development of Beijing-Tianjin-Hebei RegionWeestablishedofficesinXiong’anNewArea,settinguptheworkingmechanismofXiong’anNewAreaandmadecoordinatedprogressof theconstructionofXiong’anNewArea.Wehavecompleted the top-leveldesign frameworkofbusinessdevelopment inXiong’anNewArea,setupthework informationcommunicationmedia.Besides,wecarriedout in-depththematicresearchandplanning.We launchedprojects inXiong’anNewArea inaccordancewith the ideaofprotectingenvironment, assist economy and development with cultural tourism, cooperation between industry and finance, and development driven by innovation.

Serving the Construction of Guangdong-Hong Kong-Macao Greater Bay AreaWe fully play the advantages of our long-term business in Hong Kong. Through promoting strategic cooperation and pushingforwardtheconstructionofplatformsoftechnology,financeandtalentnetwork,wearestrivingforservingtheconstruction of Guangdong-Hong Kong-Macao Greater Bay Area.

Facilitating the Development of the Yangtze River Economic BeltAs the integration of the Yangtze River Delta becomes a national strategy, the advantages of Shanghai as a leadership of regional development is highlighted. We strengthen the allocation of resources of Everbright Group in Shanghai, accelerate the establishment of Everbright Shanghai Headquarters, and make overall planning with the consideration of working mechanism, businessscopeandoffice.

Everbright Bank becomes the first national joint-stock commercialbankqualifiedtoestablishabranchinXiong’an.TheestablishmentofXiong’anBranchwill further improvetheorganizationalsystemoftheBankingindustryinXiong’anNew Area. It will strengthen the ability to release credit resources, enhance the level of financial innovation, and providestrongfinancialservicesupport for theconstructionanddevelopmentofXiong’anNewArea.

Everbright Bank becomes the first national joint-stock commercial bank qualified to establish a branch in Xiong’an

In January 2018, Everbright Group and China Merchants Group signed a strategic cooperation agreement in Beijing. With the goal of jointly serving the construction of Guangdong-Hong Kong-Macao Greater Bay Area, the two parties will show their efforts to help the development given their respective advantages to operate in a market-oriented manner andcarryoutcooperationinthefieldsoffinancialservices,industry-financecooperation,cityandpark,comprehensivelogistics, eco-environmental protection, healthcare and tourism, with the purpose of building a win-win and sustainable strategic partnership.

In November 2018, Chairman Li Xiaopeng was invited to attend the First China International Import Expo. He inspected relevant cooperation projects in Pudong New District and Huangpu District in Shanghai. We have taken the initiative to align with the national strategy of regional integration of the Yangtze River Delta, seized the opportunity of a new round of high-level opening-up, promoted high-quality development through opening-up and cooperation externally, and enhanced the international competitiveness of Everbright Group.

We carried out strategic cooperation with China Merchants Group on the construction of Guangdong-Hong Kong-Macao Greater Bay Area

We accelerate our integration into the Yangtze River Delta

EverbrightBankHebeiXiong’anBranch

Supporting Real EconomyWith serving the Real economy as our fundamental goal, we stick to the purpose of serving the Real economy through finance,getfundstoreachtheRealeconomythroughthe“LastMile”,andstrengthentheendogenousdrivingforceoftheReal economy.

Improvingthecapacityofinclusivefinancialservices

EverbrightBankhasraisedthedevelopmentof inclusivefinancetoastrategiclevel,continuouslyincreasedinvestmentintheaspectsofprocessoptimization,productinnovationandfintech,whileimprovingthecoverage,availabilityandcustomersatisfactioninfinancialservices.

Improving the service system. We have renamed “Inclusive Finance Department” to “Inclusive Finance Business Department”, strengthening the personnel and resource allocation of inclusive financeline.Atthesametime,webuilt inclusivefinanceoperationmanagementmechanismandinclusivefinanceservicesystemwithEverbrightcharacteristicsanditsverticalstructure.

Building credit factories. We not only carried out the credit factory operating mode for small and micro businesses, but also implemented standard product, streamlined business, integrated process and centralized operation. We mainly provided services for small businesses with credit demand lessthan5millionRMB,andmettheirshort-term,frequentandurgentfinancingneedswhichusuallyare small amount.

Optimizingtheapprovalprocess.Wesetupaspecialteamof inclusivefinancerisk,gavespecialapprovalauthorityforinclusivefinanceloans,andmadetheapprovalprocessmoreconvenientandefficientforourcustomer.

Focusingonsupplychainfinance.Wepromotedaneffectivelinkagebetweenlargetomedium-sizedcustomersandinclusivefinancialcustomers,cooperatedwithbondingcompaniesandinsurancecompanies in risk mitigation, while providing supply chain financial services with Everbright characteristics.

In 2018, the growth rate of inclusive loan of Everbright Bank was 12 percentage higher than that of the whole peer. Everbright Bank had set up inclusive specialized institution in 10 sub-branches, achievingremarkableresultsininclusivefinancialservice.

In 2018,Everbright bank

recorded a net credit increase by RMB

112.4 bn

for the in- & off-balance-sheet financetoprivateenterprises

accounting for

38 %

of the Everbright Bank's total net credit

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28 29


EverbrightJin’ouAMCactively responds to thenationalcall to facilitate thedevelopmentof inclusive financeandsmallbusinesses. By designing a whole-process business solution, clarifying the elements of forward repurchase business and formulatingspecializedriskcontrolmeasures,weeffectivelyaddresstheproblemofpricyfinancingforsmallbusinesses.Theproduct models such as “Cloud Loan” and “House Loan” point out the direction for AMC to further increase their inclusive financialsupport.

Actively implementing the spirit ofGeneralSecretaryXi Jinping’s important speechat theSymposiumonPrivateEnterprises, Everbright Securities invested 2.5 billion RMB to participate in the asset management plan of bailing-out private enterprise, and established the “Everbright Securities Asset Management No.1 FOF Single Asset Management Plan of Securities Industry Supporting Private Enterprise Development Series”. As the custodian, Everbright Securities Asset Management, a wholly-owned subsidiary of Everbright Securities, invested the funds of the asset management plan in the stockpledgedrepurchaseprojectoflistedcompanyandtheequityoflistedcompanyheldbythestockpledgedfinancier.Atthe same time, we attract government, banks, insurance and other parties to jointly provide liquid support for the pledge of equity of private enterprises so as to facilitate the development of high-quality private enterprises.

We innovated the “forward repurchase” model to facilitate the development of inclusive finance and small and micro businesses

Everbright Securities invests RMB 2.5 billion to participate in the asset management plan of bailing-out private enterprises to facilitate their future development

Implementing the Rural Vitalization StrategyWeactively implement the requirementsofnationalpolicy,give fullplay toouradvantages infinancialand industrialresources. We also contribute our wisdom to the rural vitalization strategy, in order to achieve the goal of both of urban and rural development.

To help increase loans for rural people in rural areas, Everbright Bank adopts a new rural guarantee cooperation model featuring “Government + Bank + Bonding company”. On the basis of peasant household agreement on contracted management, with bondingcompanyastheriskcontrolmeasure,weprovidefinancingservicesforagricultural leadingenterprisesandsuperiorpeasanthouseholds,toachievethebenigndevelopmentgoalofincreasingfarmers’incomeandtorealizeawin-winsituationamong banks, enterprises and farmers.

China CYTS Tours Holding leverages the role of rural tourism in the rural vitalization strategy, and implements the “One, Two, Three, Four” rural tourism plan based on its own business advantages which means building one rural tourism website (channel), serving for two types of key customers, building three cooperation platforms and providing four types of unique services, including rural vacation, rural-themed tourist routes, rural customization and rural cultural tourism, with the purpose to fully boost the development of rural tourism.ChinaCYTSToursHolding’sruraltourismwebsiteis

officiallylaunched

We build a new rural guarantee cooperation model featuring “Government + Bank + Bonding company”

We implement the “One, Two, Three, Four” rural tourism plan to boost the development of rural tourism

CanThoisthelargestcityintheMekongDelta.OnNovember26,2018,EverbrightInternational’sCanThoMunicipalSolidWaste Incineration Power Generation Project with a total investment of 47 million USD went into operation. The project has becomeabenchmark in thefieldofsolidwastemanagement inVietnam,playingademonstrationrole in theconstructionstandard, technology and commercial model of municipal solid waste incineration power generation. Upon commissioning, the project is expected to provide 60 million KWH of green power annually and dispose 400 tons of household waste per day, accountingforabout60%ofthecity’stotaldailywastedisposal.Theprojectusesnewtechnologytobringtheconvictionthatlucid waters and lush mountains are invaluable assets into Vietnam, making a new life for the local residents.

CanThoMunicipalSolidWasteIncinerationPowerGenerationProjectimprovespeople’slivelihoodwithexquisitetechnology, ensuring that the development of the region is in line with environmental standards.

-- Mr. Tao Anh Dung, Vice Chairman of Can Tho Municipal People’s Committee

Looking forward, it is our hope to seize the opportunities of the Belt and Road Initiatives to strengthen cooperation with China, support the development of Chinese enterprises in Africa and the Arab region, and future improve the level of cooperation between both sides.

-- Mr. Hisham Okasha, Chairman of National Bank of Egypt

We build green power plant to contribute to the construction of green Belt and Road

Egypt is an important fulcrum country along the Belt and Road. In July 2018, at the invitation of Ministry of Tourism of Egypt and National Bank of Egypt, Mr. Li Xiaopeng, Chairman of Everbright Group, visited Egypt and had in-depth discussions with leaders of Ministry of Tourism of Egypt and National Bank of Egypt regarding to strengthening the cooperation between Everbright Group andEgypt inthefieldsof tourism,environmentalprotectionandfinance,whichcontributedtotheBeltandRoadInitiatives.

We deepened China-Egypt exchanges and cooperation

Mr. Li Xiaopeng, Chairman of Everbright Group meeting with Mr. Hisham Okasha, Chairman of National Bank of Egypt

Open DevelopmentWeactivelypromote theopening-upanddevelopmentoffinance,expand themarketsofcountriesalong theBeltandRoad.Welayoutfinancialbranchesandworkwithpartnerstocreatevalueandsharebenefits.

Facilitating the development of private enterprises

We treat private enterprises equally in terms of credit policy, product innovation, service efficiency, incentive and constraint. We take more concrete and practical measures to address the problem of pricy financing for private enterprises and small businesses, with the purpose to better and more efficiently facilitate the development of the Private economy.

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中国光大

World-class enterprises shall maintain the first-class brand

image, reputation as well as market position. We continue

optimizing the services in financial sector and maximizing

our comprehensive financial advantages to build reputable

branches, innovate well-known products and services, and

cultivate famous staff members. We continue optimizing

the industrial sector and focus on the industrial layouts of

“Three Comprehensivenesses and One Innovation” to cul-

tivate excellent team and achieve excellent performance.

We build the service brand to continuously enhance cus-

tomer’ s sense of ownership, their happiness and their

sense of security.

Establishing Public Reputation and Building Brand Image

Financial Sector

Industrial Sector

Serving Brand


32 33


Everbright Bank

was included in the list of TOP 1000 WORLD BANKS by The Banker, ranking

No.39

up by 10 places compared to 2017.

Everbright Securities

was included in the list of Asia Brands Top 500, ranking

No.241

up by 8 places compared to 2017.

Everbright AMC actively took the initiative to change its development model. At the same time, its asset management business grows steadily. Xinjiang Tourism Industry Investment Fund, Inclusive Healthcare Industry Fund and Private Enterprise Development Supporting Fund have been continuously advanced, with remarkable progress in the layout of the Industry funds.

Everbr ight Insurance compl ied with regulatory requirements and accelerated the business transformation. The premium income of the original insurance has increased against the trend while the performance indicator has increased rapidly. Everbright Insurance’sbusinessstructurehas been constantly optimized and the team construction has shown vitality. At the same time, the “distinctive and valuable” transformation and development has made some periodical results.

Everbright Trust closely centered on the general requirement of building a first-classtrustcompanyinChina.Everbright’smain operating indicators grew against the trend and reach a new high stage while its operating performance outperforms its peers. The trust business innovation has continuously been advanced, and its inherent business layout has been effectively expanded.

Everbright Bank strives to adjust the deposit structure and loan structure to promote the transformation of branches and income. Economies of scale have increased as well. At the same time, the “Dual Adjustments and Dual Transformations” programme achieved remarkable results. We actively serve in both of the Real economy and the Private economy while holding the bottom line and preventing risks. Our overall operation shows a secure, orderly and strong momentum of steady growth, together with a steady enhance of the comprehensive market competitiveness.

Everbright Securities strengthens its advantageous businesses and constantly makes up for its shortcoming in businesses. It has made progress on retail brokerage, bond underwriting and asset securitization. We have deepened the transformation of wealth management and made breakthroughs in institutional securities business to optimize the structure of asset management business.

Exquisite products

Financial products shall truly meet the actual needs of customers, so that customers will have the positive opinion and feelings towards the products and services.

Precise customer acquisition

We shall sell the right products to the right customers, so that customers will have the positive experience with the customized products.

Detail-oriented service

We shall take customer satisfaction as the ultimatestandardtomeasurethequalityoffinancial

services. We want our customers to have the over-valued feelings towards the prominent services.

Refinedmanagement

We should create as much value as possible with minimum resources, so that customers will feel that the

value is maximized for them.

Reputable branches

Branches with high social cognition and high customer satisfaction

Well-known products

Competitive products with good quality and good reputation

Famous staff members

Image representatives of Everbright Groupinthefinancialsector

2018 2018

Everbright Insurance

was awarded the Most Innovative Insurance Company of the Year and Top 10 Caring Insurance Companies in China 2018.

EverbrightJin’ouAMC

was given the Innovative Development Practice Award 2018 and Local AMC Excellent Case Award 2018 at the 4th China Local AMC Forum.

Everbright Trust

was awarded the Charity Trust Program of the Year and Real Estate Trust Program of the Year.

Everbright Limited

was listed in the Top 10 Private Equity Investment Institutions withSocial InfluenceinChinaandTop 20 Private Equity Investment Institutions in China 2018.

CSR fulfillmentfeatures in thefinancial

sector

Under the “Two-Wheel Drive” of Fund management and self-owned capital investment, Everbright Limited has achieved steady growth in its business. Meanwhile, its investment fund covers a number of high-growth industries in China, such as real estate, medical treatment and healthcare.

EverbrightJin’ouAMC insists on strengthening the main business of disposition of non-performing assets, striving to create the “One Core and Six Drives” business model. Its operation has obtained a good start on its business development, with a significant growth showed by various business indicators as well as a substantial enhancement of its capital strength.

Everbright Trust

Everbright AMC

Everbright Jin’ou

Everbright Securities

Everbright Insurance

Everbright Limited

Financial SectorWedevoteourselves todevelopourcomprehensivefinancialservices,cultivatehigh-qualityfinancialproducts tobettermeetpeople’sneedsandaspirationsforabetterlife,andbuildthecorecompetitivenessoffinancialservices.

“Three Reputations and Four Delicacies” of China

Everbright

2018 2018 2018

2018

Everbright Bank


34 35


Comprehensive Tourism

China CYTS Tours Holding fully supports the development of the “Comprehensive Tourism” industry and expands the tourism market. CYTS keeps close eye on the eco-urban construction planning of eco-city and takes the initiative in ecotourism. CYTS integrates “Red tourism”, “Recreation tourism” and “Ecotourism”, builds characteristic towns, forms the rural tourism brand with Everbright Characteristics to build a global leading comprehensive tourism service provider. In 2018, CYTS served more than 20 million people in total.

Inclusive Healthcare

In accordance with the situation of national medical reform, Cachet has actively studied medical services and implemented the requirements of medical reform. It comprehensively expanded the business development of medicine distribution and medical consumables as well as it expanded its business scale, thus improving the market competitiveness. In terms of medicine distribution, Cachet innovated the pharmaceutical affair service model, created multi-level business growth points, and accelerated the speed of growth of medical supplies distributionrevenue.Intermsofmedicalconsumables,afteryearsofdevelopmentinthefieldof consumables for cardiology department, we established a nationwide sales network of high-value consumables and developed a broader space.

China CYTS Tours Holding invested and constructed Beijing Gubei Water Town

China CYTS Tours Holding Flagship Store one again won thefirstplaceintheholidaycategoryonDoubleEleven

In 2018, China CYTS Tours Holding

was titled The Most Trustworthy Listed Tourism Company

was granted the Honorary Bronze Class of Sustainability Yearbook 2018 by the RobecoSAM

China CYTS Tours Holding focuses on expanding the three strategic areas of tourism + education, tourism + sports, tourism + old-age care. It tailored tourism services and products for tourists of different ages, and strived to be a systematic provider of quality life.Tourism + education. We develop research travel products with the themes of inheriting red gene and exploring traditional Chineseculture.Wepayattentiontotheeducationofteenagers’quality,theirinterestandculturetocontributeoureffortsto national education.Tourism + sports. We set up a specialized sports company, built a number of characteristic sports towns, and undertook sportsactivitiessuchasMountEmeiWorldMartialArtsConferenceandseveralmarathoneventssoastomeetpeople’sdemandsofsportsactivitiesandfitnesscampaign.Tourism+seniorpeople’scare.Weseize theopportunity in theseniors’medicalcaremarket,providecomprehensiverecreational scenarios for old people to enjoy high-quality healthy life around different seasons, different solar terms and different regions so as to pull the rigid demand for seniors care.

China CYTS Tours Holding implements three “tourism +” strategies

Integrated Environmental Protection

Asthefirstone-stopandall-aroundcomprehensiveenvironmentalmanagementserviceproviderin China, Everbright International actively promotes the construction of environmental protection projects and has become a leading enterprise in the environmental protection industry in China and even Asia and a world-renowned ecological environment group. Everbright Industrial strengthens management foundation, promotes business transformation, and plays a positive role in promoting the “toilet revolution” and the construction of bio-toilets.

New Technology

Everbright Technology implements the strategic optimization requirements of Everbright Group and provides technological support for innovation-driven development. Centering on the IT strategic planning of Everbright Group, we focus on implementing the four operating strategies, including digital transformation solution, product innovation research and platform operation,newtechnologyapplication,anddata’svaluecreation, fintech innovation laband venture capital incubation to help Everbright Group achieve technology-oriented and innovation-driven development.

Industrial SectorWe continue optimizing the industrial layout of “Three Comprehensivenesses and One Innovation” which means to broaden inclusive healthcare, integrate and develop comprehensive tourism, upgrade and expand integrated environmental protection, explore and innovate new technology, and cultivate good industries for a better sever for the Real economy.

In 2018, Everbright International

Medical services of Cachet

In 2018, Cachet

had direct-selling hospitals in

30 provinces

in Chinaand nearly

1,400 key hospitals

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Protecting the Rights and Interests of CustomersWe continue strengthening the systematic and mechanism construction, enlarge the complaint management and take effective measures to fully protect the legal rights and interests of customers. We devote ourselves to improving the service level.

Protecting Customer InformationWe strictly obey the national laws and regulations. We constantly improve the information security management system, strengthen the information security training of employees, and fully protect the security of both of information and transaction for our customers.

Safety is the premise of a pleasant travel. Therefore, the life and property security assurance in the trip is always a major concern for tourists. In cooperation with Ministry of Foreign Affairs and China National Tourism Administration, Aoyou.com held the Outbound Tourism Pre-departure Illustration to explain tourism safety precautions to tourists, with the purpose to enhance their tourism safety awareness. At the same time, relevant measures taken by China CYTS Tours Holdingtoprotecttourists’rightsandinterestswillalsobeintroduced. The News CCTV client application broadcasted the whole process of the event, which further expanded the coverage of the event.

China CYTS Tours Holding holds the Outbound Tourism Pre-departure Illustration to promote civilized and safe travel

Inordertoimprovetheefficiencyofhandlingcomplaint,EverbrightBankhasdevelopedaninstantcustomercomplaintmanagementsystem. Ifacustomerenters thesystembyscanning theQRcodeandmakescomplaints by voice or text, as soon as the branch head receives the complaint, he will contact that customer tohandlecomplaintsdirectly.Bothoftheheadofficeandthebranchmonitorthecomplainthandlingprocessand its following result in real time so as to realize the promotion of overall service capacity.

We develop an instant customer complaint management system to smooth the customer communication channel

In September 2018, in order to protect the information security of consumers and improve the assurance of information security, Everbright Bank carried out “Escort Everbright 2018” information security special governance action throughout the bank. During the event, we specially investigated and took the initiative to rectify the potential safety hazards in Internet and mobile application, terminal security and sensitive information protection, in which we further improved the information security level and continuous assurance of information security throughout the bank.

Everbright Bank carries out “Escort Everbright 2018” information security special governance action

Serving BrandWe stick to customer-oriented route, proactively listen to the requirements of customers, continue optimizing service procedures and pattern, protect the rights and interests of customers, and create value for customers with intelligent, standardized and normalized services.

In 2018,Everbright Bank’s

In 2018, Everbright Securities

In 2018, Everbright Insurance

In 2018, China CYTS Tours Holding

In the process of claim settlement, timeliness was a major concern for customers. To improvecustomers’ satisfaction,Everbright Insurance launched real-timepaymentservice for small claim cases with the compensation amount less than RMB 3,000. The system processing time was shortened from 0.48 day to 1 second, which greatly reduced the time for customers to settle claims.

Everbright Insurance launches real-time payment service to reduce the time for customers to settle claims

In 2018, Everbright Bank popularized smart counters across the country. We national-widly adopted advanced intelligent processing application and the latest face recognition technology in China to provide customers with better services. The services of debit card and credit card through more user-friendly interface and a convenient business process. The previous manual service mode was transformed into a new mode of “Customer Autonomy + EmployeeAssistance” tomeet customers’demand for diversified financial services more conveniently. By virtue of the innovative features pioneered in the industry, such as “changing card with the same card number, and issuing multiple cards with optional card number”, the overall business-handling efficiency was improved by 40% compared with manual work. It led to the result that the customer experience wassignificantlyimproved.

Everbright Bank launches smart counters for one-stop service

Smart counter of Everbright Bank

Aoyou.com held the Outbound Tourism Pre-departure Illustration

Improving Customer ExperienceWe constantly promote service innovation and upgrading, so that customers can get more intimate and thoughtful service experience. Everbright Bank continues enhancing thetransformationofbranchestomaximizethecustomer’ssatisfactionwiththeservices.We constantly improve Everbright supermarket model and effectively improve customer experience. Everbright Insurance focus on the steps of "pre-service, quick compensation and after-accident care" to provide excellent-quality services throughout the whole process of claim settlement. In this case, our customers can obtain indemnity easier and faster.

44 branches were listed in the Top 1,000 Model Units of Civilized and Standardized Banking Services 2018, with an increase of

51 %

over the previous year

was included in the list of China Brands Top 500, ranking

No.93 up by 3 places compared to 2017

was titled “The Insurance Brand Most Concerned by Customers of the Year” of the 13th China Insurance Innovation Award

was listed in the “40 Brands from the 40 Years of Reform and Opening up” by The Growing of the Great Brand on CCTV

Case

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CaseCase

We keep on pursing innovation-driven development as it

is the fundamental ensurance for us to become a

world-class enterprise. We improve the sci-tech and inno-

vation management and implement the strategy of tech-

nological innovation to fully play its leading role. We carry

out innovation practice, take various measures to develop

technological innovation projects, so as to expand and

strengthen our sci-tech sector. We emphasize efficient

collaboration, create innovative synergizing development

model to improve collaborative efficiency and market

competitiveness.

Focusing on Innovation and Promoting Transformation

Technology and Innovation Management

Innovation Practice

Efficient Collaboration


40 41


Information ManagementWe launched “6+2+2” IT project to improve modern management and control ability. We promote the construction of “Group + Internet”, and work with various departments of the headquarters and subsidiaries to realize the strategic vision of digital, platform-based and intelligent IT. We actively perform data governance, promote data standardization and asset value transformation centering on organizational structure, data standardization, data quality and data security, as well as introducingbigdata,artificialintelligenceandothernewtechnologiestoprovidesupportforbusinessoperation.

“Everbrighte-information”isastandardizedmobileofficeapplicationinEverbrightGroup.Ithasvariousfunctionsandfeaturessuchas internal informationexchangeandshare,mobileoffice,companytendencies,opinionsandsuggestions,andmobileemployee search. It helps more employees to achieve mobile Interconnecting, and it has been playing a positive role in promoting Group's culture and building corporate image.

We apply “Everbright e-information” to achieve mobile Internet

Strategy of Technological InnovationIn order to meet the strategic development requirements of Everbright Group, we devote our effort to developing technological innovation, effectively implement new technological strategies of “Three Comprehensivenesses and One Innovation”, and set up Technological Innovation Business Department. At the same time, we drew up IT strategic planning guidelines for Everbright Group, which gave instructions regarding information exchange and digital transformation, while it also determines the development direction of new technology sector.

Innovation PracticeWe focus on building an innovative atmosphere and encourage our employees to offer their suggestions towards innovation. We keep on communicating and learning from other outstanding enterprises to achieve innovative development and win-win cooperation.

Activity of Everbright Innovation Corner

Everbright Innovation Corner is a concrete measure through which employees offer advice and suggestions. We organize brainstorm for young employees, discussing the implementation of “Three Reputations and Four Delicates”, “Three Comprehensivenesses and One Innovation”and“E-SBU”,andstudyingspecificbusinesssuch as mobile Banking and intelligent investment cube. In this case, more young employees could be attracted in innovative activities and are willing to contribute their wisdom and strength to the innovation development of Everbright Group. By the end of 2018, Everbright Innovation Corner has successfully held 30 events, and a number of great suggestions from young employees have been accepted.

Everbright Innovation Corner makes “good ideas” become reality

Fintech Innovation Lab is launched

Everbright Technology and Tencent Cloud jointly established a Fintech Innovation Lab. The two parties are committedtostrengthenanewinternet-basedfinancialcloud platform and try to accelerate the implementation of fintech capabilities. In this case, both parties can realizeawin-wincooperation inbigdata’sriskcontroltechnology, as well as application innovation in supply chainfinanceandcross-bordercomprehensivefinancialservices. By all means, Everbright Technology is one step closer to achieve technological breakthroughs. In 2018, relying on the platform of Fintech Innovation Lab, Everbright Technology introduced 8 innovative technological products, including big data, distributed service framework, container cloud, 3D visualization and large-sized data screen. By absorbing new external concepts and new technologies, we laid a solid foundation for independent research and development.

Fintech Innovation Lab boosts new technological breakthroughs

◎ Data port

◎ E-SBU collaborative platform

◎ Unifiednetworkwithinthe group

◎ Group cloud

Two infrastructure environments

Two shared supporting platforms

Six management systems

◎ Group management cockpit◎ Groupdigitalofficeplatform◎ Financial management system◎ Human resource management system

◎ Risk management system (including legal affairs management sub-system)

◎ Auditing management system

Technology and Innovation ManagementOnly by accelerating technological innovation and making technology one of our advantages, can we become competitive in the global market. We insist on enhancing efficiency, improving management quality, promoting innovation and facilitatingdevelopmentwithscientificapproachandnewtechnology.Atthesametime,wepromotedigitaltransformationand technological innovation to increase our potential for future development.

Technological Management MechanismWe set up the Technology and Innovation Committee, drew up Working Rules of the Technology and Innovation Committee of Everbright Group. In this case, we can provide institutional support for collective decision-making on major technology and innovation issues. We set up the expert review group of technology projects to provide professional opinion to the decision-making Committee. We establish guidelines of Management Measures for Technology Projects of Everbright Group to promote the standardized management process of technologyprojects.Inthiscase,weensuretheefficiencyandtheorderly development of projects. At the same time, we keep on the construction of the framework management system to ensure projects being processed under standards with high quality.

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42 43


By strengthening innovation and research and development, we incubate new products, services, models and formats that are in line with Everbright Group's development strategy. We explore new growth opportunities in the technological innovation sector, promote upgrade for products and services and strive to create a superior brand in line with market development trend to meet the actual needs of customers.

The“CloudFeePayment”platform,as thebreakthroughandexperimentalfieldoffintech innovation,was launched in 2008. It went through a five-year growth period and a three-year high-speed development period. In particular, the growth in 2018 itself was equivalent to that in the previous nine years. The “Cloud Fee Payment” platform is connected to the charging unit and the payment channel and is open to the Internet channel through standardized integration. It serves the customers of the whole society, effectively reduces the time, capital, manpower and other costs. It promotes the rational allocationofsocialpublicserviceresources,andimprovestheconvenienceofpeople’slifetothemostextent. At the same time, it promotes “great development” with “micro service”, contributing to the developmentofChina’spaymentindustry.

By the end of 2018, more than 4000 projects on the “Cloud Fee Payment” had been launched, and the number of users had reached to 253 million, covering more than 300 major cities nationwide. The annual payment exceeded RMB 200 billion, and the average daily payment amount exceeded RMB 500million.The “CloudFeePayment”platformhasbecomenotonly the leaderofChina’spaymentindustry,butalsoapioneerofInternetinclusivefinance.In2018,wewereawardedtheMostInfluentialAPP by Xinhua News Agency, the Best Inclusive Financial Service Platform of the Year by Financial News, Inclusive Financial Pioneer Award by China Investment Network, as well as the Best Inclusive Financial Service Award by caishiv.com.

By the end of 2018, the “Cloud Fee Payment” platform

We established “Cloud Fee Payment”, the largest open payment platform in China

With the continuous development of AI technology, “Smart City Construction” has become the most promising commercial implementation location of AI, IoT and big data. Relying on the strong financial strength of Everbright Limited and its excellent technical capacity, Terminus Technologies covers three business segments of “future architecture”, “future city” and “Terminus Technologiesfinance”with“AI+IoT”applicationatcore.TerminusTechnologies is committed to building the largest city-level IoT platform company in China, providing multi-scenario solutions for citizens’lives,workandurbanmanagement,andprovidingall-roundservices for smart city and building upgrading and transformation.

Terminus Technologies enter the field of “new smart city” at full speed

Efficient CollaborationThe improvement of efficient collaboration is an important action for China Everbright Group to reinforce headquarters construction and integrate internal resources. With E-SBU collaborative strategy as one of the key strategies for mid and long-term development, we have made relevant construction schemes and started performance appraisal. Through building the ecosphere for the whole industry chain, developing the E-SBU reputable brand and promoting the construction E-SBU collaborative platform, we aim to constantly improve collaboration efficiency.

Six E-SBUs

Environmental protection

E-SBU

Tourism E-SBU

Health E-SBU

EverbrightAdhering to the concept of “One Everbright”, based on the resource endowment and advantages that Everbright Group owns, we share our resources with our subsidiaries, which including customers, products, channels, technology and information to maximize the value created together with subsidiaries and partners.

ElectronicBy introducing Internet and digital innovation technology, we improve our business model, promote digital transformation, and are empowered by technology, to drive development through innovation.

EcosphereBy introducing the concept of Open Ecology as well as carrying out extensive internal and external strategic cooperation, we build business industry chain, value chain and ecosphere to provide customers with integrated one-step services and achieve win-win cooperation.

E-SBU is a collaborative development mode that Everbright Group devotes to maintain the advantages of comprehensive operation and industry-financecooperation. It introducesecosphereandelectronicelementandembodies the high-quality innovation with Everbright characteristics.

E-SBU

IoT+AI interactive experience exhibition hall of Terminus Technologies

recorded a total of over

4,000 projects, covering more than

300 major cities nationwide

Establishing E-SBU Collaborative StrategyWe emphasis on improving the col laborat ive effects among diverse business and take the ini t iat ive to upgrade our business model. We center on the six E-SBUs, including Wealth, Investment, Investment Bank, Environmental Protection, Tourism and Healthcare. We have built a coordinated E-SBU development model by improving five key capabilities, which refer to Customer Sharing, Scenario Fusion, Service Innovation, Data Driven and Resources Integration.

Wealth E-SBU

Investment E-SBU

Investment bank E-SBU

Case

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44 45


Achievements of E-SBU Collaborative StrategyUnder the guidance of E-SBU collaborative strategy and the foundation of a collaborative supporting mechanism, we continuouslydeepenindustry-financecooperation,financecooperationandindustrycooperation,andcarryoutaseriesofpractical measures to strengthen business cooperation and innovation of its collaborative model.

Implementation of E-SBU Coordinated Strategy

We built Everbright supermarket and explore comprehensive “one-stop” service

By leveraging the E-SBU ecosphere, we introduced the cutting-edge concept and forward-looking thinking of new finance, new retail and new technology. We made use of offline physical branches and online APP platform resources and built “Bank-Yi” Everbright supermarket to carry out match-making, distribution and publicity of various financial and industrial products. At the same time, we developed products along with more value-added services to enhance customer connection and satisfaction. On 12 December 2018, “Bank-Yi” Everbright supermarket was opened.

Everbright Bank, Everbright Securities

and Everbright Ashmore

Successfully won the bid ofthefirstREITsprojectinXiong’anNewAreajointly.

China CYTS Tours Holding

Provided business trip services for many enterprises within Everbright Group.

Everbright Insurance and China CYTS Tours Holding

Jointly launched Aybao accident insurance.

Everbright Bank and Everbright Limited

Took the lead in launching online pension payment service.

BravolinksUndertook a number of business trips and meetings within Everbright Group.

Some achievements

of E-SBU collaborative

strategy

Everbright Bank and Everbright SecuritiesJointly launched “JZT” Receivables Asset Support Plan, Everbright Check Later Phase III Consumption Credit Financing Asset Support Plan, and COSCO Leasing Asset Support Plan, etc.

Everbright Securities and Everbright TrustCarried out in-depth cooperation in innovative businesses such as absolute return outsourcing, and ABS channel.

Everbright Insurance and Everbright

LimitedJointly invested in a number of real estate projects.

Everbright Bank, Everbright Trust and China CYTS Tours

HoldingJointly issued Puhui CYTS Aurora World Cup Assembled Funds Trust Plan to fully utilize the comprehensive advantages of Everbright Groupinindustry-financecooperation.

Formulating the development scheme of each E-SBU

We clarify the instruction of the development principle, objectives, thoughts and tasks of each E-SBU. Meanwhile, we do a good job in organization and implementation and make overall arrangement of the implementation phases, the key nodes and scheduled objectives.

Setting up the indicator of E-SBU annual development plan

WeintegratecollaborativeevaluationintotheunifiedperformanceappraisalsystemofEverbrightGroupand decompose it to member units of E-SBU, its operating institutions and even individuals. We explore various E-SBU collaborative incentives, and fully mobilize the collaborative enthusiasm of all parties.

Building E-SBU whole industry chain ecosphere

Focusing on the requirements of target E-SBU customers in the whole life cycle and aiming at scenario construction and end-to-end “one-stop” customer service, we constantly expand and enrich the functions and contents of E-SBU ecosphere by means of independent construction, internal resource integration, external investment, merger and acquisition and strategic customer cooperation.

Cultivating reputable E-SBU products

Combined with the resource advantages of each E-SBU and its customer needs, we screen high-quality products to strengthen our marketing performance and expansion. Also, we increase cross-border cooperation with other companies to develop and innovate a number of comprehensive industry-leading service products of distinctive brand and customers' recognization.

Promoting the construction of E-SBU collaborative platform

The E-SBU is positioned as a platform of information exchange, transaction drainage and ecological incubation in Everbright Group. We are committed to build the “Everbright” Collaborative Capacity Center to realize “corporate level” business connection. We are committed to build the “Everbright” Collaborative Capacity Center to realize “corporate level” business connection and synergized value creation among customers, member enterprises and ecological partners of the Group, so as to provide technological support for the implementation of E-SBU strategy and “One Everbright” comprehensive services.

“Bank-Yi” Everbright supermarket is opened

CaseEverbright Bank and China CYTS Tours

HoldingJointly launched CYTS overseas + co-branded IC card, CYTS co-branded credit card. Also, jointly launchedcertificateofdeposit, foreign currency exchange and other services on aoyou.com.

As a financial holdings group, we should not only adhere

to the the main line of development, but also firmly guard

the bottom line of risks. We exercise full governance over

the Party. Guided by the political work of the Party, we

make solid efforts to deepen the construction of Party’ s

conduct and a clean government. We strictly obey the

laws and regulations, strengthen legal affairs manage-

ment, and control legal risks in the daily operation and

management process. We attach importance to prudent

operation, constantly improve the risk control system, pre-

vent systemic risks, and achieve sustainable, steady and

standardized operation.

Guarding the Bottom Line and Risks Preventing

Strict Governance over the Party

Compliance with Laws and Regulations

Prudent Operation


48 49


Compliance with Laws and RegulationsOur operation is in full compliance with the law and regulations. We take various measures to ensure our employees comply with the law, improve the completeness of the systems, standardize the rules and regulations, provide adequate review of legal matters, contract and management, and effectively ensure the compliance of business development.

We regularly offer training sections to employees of overall risk management and legal risk prevention. We encourage employees exchange their experiences in corporate legal risk prevention and help them prevent legal risks. We pay attention to the important role of legal consulting and auditing during the business as well as commercial transactions. We allow lawyers to fully participate in the analysis and encourage them to come up with professional legal opinions, with a focus on the legal support and services in advance.

We have issued the Administrative Measures on the Legal Affairs Audit of Everbright Group, which stipulates the management responsibilities, scope of legal affairs audit, report process, issuance and use of legal audit opinions, management of legal audit files, legal responsibilities and other contents of legal affairs. We conduct professional legal audit and check on important matters of the headquarters and subsidiaries, discover and correct legal loopholes in timely manner to ensure that all matters are carried out legally and in compliance with preventing legal risks.

We uphold the principle of prioritizing the system and constantly improve the system construction. We keep on perfecting the institutional framework by printing and distributing regulations regarding to risk management, internal control and legal affairs management, as well as some basic provisions and measures. In accordance with the requirements for “Identified Systematic Guideline” of Everbright Group, we establish a guideline called the Work Program for Optimizing the Rules and Regulations of Everbright Group Headquarters to optimize the existing rules and regulations of the headquarters. With the guideline, we can sort out, review, revise and abolish rules and regulations. We comprehensively optimize and improve the rules and regulations management system of Everbright Group, and form the Rules and Regulation Handbook of Everbright Group. We further enforce the review process of new regulations, gradually improve the regular management system, and comprehensively improve the level of compliance management.

We implement the principle of “Double Reviews” for external contracts signed by all departments of the headquarters. We actively prepare for the establishment of contract management system to promote more standardized, efficient and professional contract management. In accordance with the Contract Management Measures of Everbright Group, we further implement and improve the responsibilities of the centralized contract management department, make all of the record of the contracts signed by the headquarters. Meanwhile, we implement the contract numbering management, and further strengthen the dynamic management of contracts. In 2018, we reviewed a total of 166 contracts signed by the headquarters, with the contract value of about RMB 60.3 billion.

Careful legal examination of important matters

Strengthening systematic construction and management

Strengthening contract review and contract management

We hold meeting on discipline inspection and supervision, and deploy the discipline inspection and supervision work of Everbright Group. We establish the Formal Guidance of the Discipline Inspection Commission of Everbright Group on Clarifying the “Five Lists” to Further Strengthen Discipline Inspection and Supervision, laying a solid institutional foundation for daily supervision. We improve the working mechanisms, refine the KPI assessment content of Party Building, and urge the implementation of responsibility by strengthening the assessment of responsibility.

We carefully handle the problem clues, timely formulate and issue disciplinary inspection and supervision recommendations in response to the problems found in the inspection and smooth the complaint reporting channel of Everbright Group. We intensify inspections and investigations and give full play to the role of discipline inspection and supervision institution in anti-corruption.

We improve the system regulations, establish guidelines of Rules for the Implementation of the Central Party Leadership’s Eight-Point Decision on Improving Party and Government Conduct by Communist Party Committee of China Everbright Group. We pay close attention to the time node of holidays and do a good job in daily education. We carry out supervision and inspection and strengthen warning education.

We strengthen the intensity of supervising and inspecting, and adjust and increase the number of team leaders and members of the inspection leading group to improve the working system. We also establish a working mechanism of auditing, risk compliance, supervision, and petition collaborating with Party Committees. We carefully inspect the political issue of the objects, and actively rectify the problems found in the inspection.

We continue enhancing the effort of building teams and improve discipline inspection over supervision institutions and leadership. We carry out training for disciplineinspectionamongofficialsandimprovetheirabilitytoexerciseoversightandaccountability.Wehelp tostrengthen theofficials’managementability,aswellas increasingtheefficiencyofreportingthediscipline inspection.Wecreatenewformsofeducation,whichissettingupaWeChatofficialaccount(EverbrightBreeze) to send the signal of “supervision in place” from time to time to promote the implementation of the responsibility of the management and governance in Party.

Strengthening Party disciplines

Implementing the spirit of the central Party leadership’s “Eight-point Decision” on improving Party and government conduct

Intensifying political inspection

Enhancing the ability to perform responsibilities

China Youth Industrial Development Corporation established a Guideline of Thematic Learning Program for Central Group of Theoretical Learning of the Leadership in 2018, and regularly carried out thematic learning and centralized discussion according to the learning program. Through seminars, training classes, workshops, online seminars and thematic mentoring lectures, we organized leadership to communicate with and learn from each other based on their working experience, understand theessenceandspiritofGeneralSecretaryXiJinping’s thoughtsonSocialismwithChineseCharacteristicsforaNewEra.Therefore,theemployeesandtheleadershipscanconsciouslyfollowtheguidetopracticewiththissystemofscientifictheories.Inthisway,wecomprehensivelyenhancetheleadership’sabilitytofulfilltheirresponsibilitiesandpromotethesustainableandhealthydevelopmentofPartyBuildingandthecompany’sbusinessoperation.

We strengthen ideological construction of the Party and regularly carry out theoretical study

Strict Governance over the PartyBy improving the mechanisms for fulfilling responsibilities, strengthening Party discipline, implementing the spirit of thecentralParty leadership’s “Eight-pointDecision”on improvingPartyandgovernmentconduct,enforcingpoliticalinspectionandenhancingtheabilityofdisciplineinspectionteamtofulfillresponsibilities,wehavelaidasolidfoundationforourfutureworkanddevelopment,andconstantlyandmoreefficientlyexercisedfullgovernanceovertheParty.

Improving the mechanism for fulfilling responsibilities

Strengthening law-abiding consciousness

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50 51


Four firewalls

Three lines of defense

Risk, internal control, approval

Independent auditing

Strategy

System

Mechanism

Information

We established and inspected nine internal audit systems, such as Code for On-site Audit Service of Everbright Group, Measures for Quality Control and Evaluation of Internal Audit of Everbright Group, and Code for Audit Rectification of Everbright Group to guide and standardize our audit work.

Improving the internal audit

system

With the goal of establishing an audit system of vertical management within the company, we carried out the reform of the audit system. We established an Audit Center of Everbright Group, which is a directly subordinate audit team that adoptstheclassifiedAuditModel to increase our capacity and capability to perform audit examination.

Establishing the Audit Center of

Everbright Group

We completed the second phase of the audit system project (off-site subsystem), put the audit system into full operation and started a new journey of digital internal audit.

Strengthening IT application

of audit

We implement throughout audit process over departments and we supervise various departments of the headquarters and subsidiaries to carry out rectification.In2018,we carried out a total of 24 audit projects in the headquarters.

Carrying out various audit examinations

Consolidating the Foundation of Risk ManagementWe have formulated the Implementation Program for Risk Preference Setting and System Construction of Everbright Group, established the general tone of “scientific, robust, compliant and valuable” risk preference, decomposed and described the risk preference from qualitative and quantitative dimensions, and standardized the top-down and bottom-up risk preference transmission route. We have formulated the Risk Preference Management Measures of Everbright Group to provide a basis for strategic decisions and guarantee the steady development of the Group.

We have continuously improved the risk early warning and monitoring mechanism, formulated the Risk Monitoring and Early Warning Management Measures of Everbright Group, standardized and institutionalized the risk early warning and monitoring functions. At the same time, we set up a risk indicator monitoring system to continuously track and analyze the monitoring indicators, important risk customers, major risks, changes in the external environment and other information.

Strengthening the Management of Trademark and NameWecontinuepromoting the rectificationof trademarkandeffectively improve theheadquarters’ control of brandresources of which established a legal foundation for the brand building of Everbright Group. We enforced the examination and protect our trademark and name, and kept on the investigation of similar trademark registration of “Everbright”. We deal with trademark and name infringement, and effectively safeguard the trademark rights of Everbright Group. In 2018, Everbright Group reviewed and authorized the trademark and name license applications of 643 subsidiaries.

Optimizing the Construction of Internal ControlWe always focus on internal control. To ensure the legitimate and compliant operation of subsidiaries, we take Basic Provisions on Internal Control of Everbright Group as the guideline of the construction of internal control. With the guideline, we comprehensively evaluate and regularly examine corporate governance, business process and information system, with the purpose to form a dynamic closed-loop monitoring system of internal control. At the same time, in this case, we can regularly track and rectify internal control, its relevant defects and key problems.

Promoting the Reform of Audit SystemWe strengthen our audit system, carry out various audit examinations, and increase our capacity for internal audit. We supervisevariousdepartmentsoftheheadquartersandsubsidiariestoformulaterectificationplansfortheproblemsfoundintheaudit,anddefinethekeyelementssuchasrectificationmeasure,responsiblepersonandcompletiontime.

Prudent OperationWe focus on preventing and resolving risks and ensuring the sustainable and healthy development of the enterprise by carrying out comprehensive risk management, consolidating the foundation of risk management, optimizing the quality andefficiencyofinternalcontrol,promotingthereformofauditsystemandstrengtheningthemanagementoftrademarkand corporate image.

Comprehensive Risk ManagementWe established a guideline called the Overall Program for Building Comprehensive Risk Management System of Everbright Group to provide programmatic guidance for risk management. We actively promote the comprehensive risk management information system, complete the Overall Construction Program for Risk Management Information System Project of Everbright Group, and create a digital, platform-based and smart online risk management platform.

Comprehensive risk management

system

Marketing

Civilization prospers and declines as ecology goes. We

promote Green Industry, control environmental pollution

at its producing source. We turn waste into energy and

turn sewage into clean water. We continue deepening

Green Finance, devote ourselves to the role of optimizing

the allocation of resources, as well as supporting and pro-

moting the ecological civilization construction. We carry

out Green Operation, help employees establish the con-

cept of environmental protection, and actively carry out

environmental protection and public welfare action, so

that the concept of green development runs through the

whole operating process.

Protecting Ecology and Beautifying Homeland

Green Industry

Green Finance

Green Operation


54 55


Environmental ResearchWe not only implement industrial standards with actions, but also play a leading role in the industry to promote environmental protection. We actively participate in the formulation of national standards and industrial standards and promote the normative and scientific development of the industry. In 2018, Everbright International participated in the composition of industrial standards such as Biochemical Waste Evaluation Standard and Specifications for Municipal Solid Waste Incineration Power Plant Operation Index and Evaluation. We actively contributed wisdom and effort to the sustainable and healthy development of the waste disposal industry.

Waste-To-PowerBased on our own technical advantages, we use advanced technologies such as fire grate, flue gas cleaning system and third-generation leachate treatment in waste-to-power projects to ensure the stable operation and up-to-standard discharge of waste-to-powerprojects.Weconstantlyimprovethestandardsandincreasetheprofitofwaste-to-powerprojects.Byturningwasteintoenergy,weareabletobebenefitedfromitsthesocialeffect,environmentalresultsandeconomicoutcomes.Inthiscase, the waste-to-power projects will be transformed from “NIMBY (Not In My Back Yard)” to “YIMBY (Yes In My Back Yard)”.

Sewage TreatmentWe are committed to becoming the leading sewage treatment service provider in China. We extend sewage treatment projects not only in cities but also in villages and we develop decentralized sewage treatment technologies and equipment in rural areas as well. We explore effective models for comprehensive water environment management and watershed management in urban and rural areas and continuously improve the sewage treatment process. We optimize sewage treatment mechanism, so as to realize the dream of beautiful China.

Suzhou Waste-to-power Project is the first waste-to-power project after Everbright International entered the environmental protection industry. It was also the benchmark project of Everbright International and even China’swaste-to-power industry.Theproject is invested,constructed and managed by Everbright International in BOT (build-operate-transfer) mode. All emission targets of the project had reached and exceeded the “EU 2010” standard, and the technological level was leading in China and even in the world. In 2018, Everbright InternationalandSuzhouMunicipalGovernmentofficiallysigned the Supplementary Agreement on the Suzhou Waste-to-power Project Upgrading and Reconstruction Project. Suzhou Waste-to-power Project will be upgraded and reconstructed, after which the daily waste disposal scale will be increased to 6,850 tons.

We turn waste into energy and set waste-to-power benchmark

The XinYi Economic Development Zone Sewage Treatment Project of Everbright Water is a sewage treatment plant with a daily treatment capacity of 20,000 tons. The plant is mainly responsible for the treatment of comprehensive chemical waste water, and the sewage effluent quality is subject to the Level I Standard A of Discharge Standard of Pollutants for Municipal Waste water Treatment Plant (GB 18918-2002). The project use virtue of advanced sewage treatment technology and process with independent intellectual property rights and customized sewage control measures. The control measures include “One Enterprise, One Evaluation”, “One Enterprise, One Price”, “One Enterprise, One Pipe” and “Staggered Drainage”, as well as typical pricing and charging mode of sewage treatment. Because of that, the project has become a model and demonstration of sewage treatment mechanism. This project was one of the provincial water treatment demonstration projects in Jiangsu in 2017. Meanwhile, it had been awarded as Typical Cases of Third-party Treatment of Environmental Pollution in Industrial Parks in 2017 by Ministry of Ecology and Environment and compiled into the Compilation of Typical Cases of Third-party Treatment of Environmental Pollution in Industrial Parks.

We turn sewage into clean water and set up a model of sewage treatment

Suzhou Waste-to-power Project of Everbright International

XinYi Sewage Treatment Project of Everbright Water

Green IndustryEnterprises are not only the creators of material wealth, but also the bearers of environment protection and responsibilities. We actively implement the strategy of “Integrated Environmental Protection” and we cultivate to be a world-leading ecological enterprise. Relying on advantages in environmental protection technology, Everbright International, Everbright Water and Everbright Greentech create characteristic environmental protection projects in six fields including environment-friendly energy, environment-friendly water, green environmental protection, environmental technology, equipment manufacturing and international business to constantly expand the environmental protection ecosphere.

Overview of environmental protection projects of Everbright Group

259 environmental protection projects are under construction

or put into operation

Our investment in environmental protection

amounts to RMB 94.489 billion

160 259There are 160 cities with

environmental protection projects in Mainland China and abroad

RMB

94.489

billion

EverbrightGroupdeepenedresearch intheecologicalandenvironmentalprotectionandsubdividedfieldssuchaswaste-to-power, sewage treatment, biomass utilization, hazardous waste treatment, atmospheric monitoring and soil remediation. We collaborated with other parties to jointly improve the level of technology research and development in the environmental protection industry. Everbright International deepened its strategic cooperation with Zhejiang University. The two parties jointly established the National Engineering Laboratory of Waste Incineration Technology & Equipment and cooperated on ultra-low emissionoffluegasfromwasteincinerationandoptimizationofcomputationalfluiddynamics(CFD)applicationofbiomassfurnace. While precisely meeting the needs of ecological and environmental protection, the two parties had accumulated new energy for the future development of the environmental protection industry.

We deepen our research and accumulate new power for developmentCase

Case

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Bio-toiletThe toilet is the one of the measures of human civilization. Bio-toilet refers to a kind of toilet that can make full use of variousresourcestoeffectivelyrealizepollutantself-purificationandresourcerecycling.Weactivelyexplore innovationontechnology, product and model in bio-toilet. We accelerate the “toilet revolution” to improve environmental sanitation, human inhabitation, disease control, and waste recycling.

Reflect radiate linkage in industry

agglomeration

Green FinanceIncompliancewithChina’sstrategicconceptofdevelopingGreenFinanceand improvingmodernfinancialsystem,wedirectfinancial resources togreenandsustainabledevelopmentprojects.Wesupport thedevelopmentandgrowthofenergyconservationandenvironmentalprotection industryandpromote the transformationandupgradingofChina’seconomicstructureby innovatinggreenfinancialproductsandservices.EverbrightBankhasestablished theguidelineof the Green Credit Policy of China Everbright Bank, Guideline on Green Credit Extension Policy of China Everbright Bank and other stipulations, to promote green credit and improve investment policy as well as building green credit management framework. We have implemented the “one-vote negation system for green credit”, which means that we will rejectallprojectsthatfailtomeettherequirementsofenvironmentalprotectionthatmaycausesignificantadverseimpacton the environment. We take the initiative to follow the trend of industrial restructuring and accelerate the withdrawal of credit for polluting processes and outdated capacity.

Everbright Bank Hong Kong Branch launchedthefirstgreenbondin2018,successfully issuing three-year, USD 300 million green bond. The bond also made Everbright Bank the first joint-stock commercial bank that had issued green bonds overseas. By matching thegreenfinancingneedsofmainlandenterprises with the green investment needs of international investors, Everbright Bank Hong Kong Branch leads the flow of resources to the green and environmental protection industry, better serve the green development with financial strength, and support the Hongkong SAR Government to build a “global green financehub”.

Biomassstrawcannotbetreatedonalargescale.Thestrawincinerationwilleasilypollutetheenvironmentanditisdifficulttoprevent incineration. It was one of the long-term problems hindering environmental governance in rural areas. Mianzhu City, Sichuan Province is a major agricultural city that had similar problems. In order to reduce the cost of straw treatment, local farmersoftentreatstrawbyincineration,whichleadsto“fireineveryvillage,smokeeverywhere,straweverywhereandfluegas everywhere” situation, causing great harm to the environment.

Everbright Bank Chengdu Branch extended credit to Mianzhu Biomass Power Generation Project. We invested a total of RMB 340 million to generate biomass power with straw as the raw material. The installed capacity of the project unit now is 30MW, and the annual consumption of biomass straw is about 248,800 tons, which has substantially reduced the amount of straw incineration in this area. The action effectively alleviated air pollution and made the rural sky bluer.

We launched our first green bond to spur green impetus

We extend credit to circular economy and develop green energy

EverbrightBanklaunchesthefirstgreenbond

Drawing on global public health and facility standards, Everbright Industrial applied new concepts, processes, materials, technologies and equipment to bio-toilet. By integrating technologies such as renewable materials, sponge city, integrated sewage treatment, microbial self-decomposition and photocatalyst deodorization, we have realized ecological system integration. At present, we have completed the construction and improvement of multiple batches of bio-toilets in national famous tourist attractions of national level such as Mount Lao, Mount Wutai and Mount Huang, as well as urban areas such asinBeijing,Xi’an,Shenzhen,Chengdu,BijieandMianyang.

Everbright Industrial actively responds to the national rural vitalization strategy, promotes the construction of bio-toilets in rural areas, and explores rural sewage treatment business. In Guzhang County, Hunan Province, we customized the design of bio-toilets according to the actual situation, and installed sewage treatment equipment simultaneously to create a comprehensive demonstration project of sewage treatment and bio-toilet integration. In the rural areas of Lankao County, Henan Province, we planned the systematic solution of “Rural sewage treatment + bio-toilet”, carried out centralized treatment of rural sewage, and solved the problem of decentralized sewage sources such as rural areas and rural tourist spots. Meanwhile, we actively built fabricated toilets in beautiful villages. At that point, toilets were no longer dependent on municipal conditions through various ecological treatment technologies.

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

Derive diversified industries

in business model

Show ecological and environmental

protection in design

construction

Interpret Internet+ in operation

management

Case

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Weactivelyplayedaroleinfinanceinproperlyallocatingresources.Atthesametime,wepromotedthedevelopmentofGreenFinancebycarryingout innovativeGreenFinanceproductprojectsandservingthepersonalizedgreenfinancingneeds of enterprises.

In2018,with thesupportandguidanceofgreenbondpolicies issuedby thePeople’sBankofChina,ChinaSecuritiesRegulatory Commission, Shanghai Stock Exchange and Shenzhen Stock Exchange, Everbright Securities, as the co-lead underwriter, helped China Three Gorges Corporation publicly issue green exchangeable bonds with a quota of RMB 20 billion. The funds raised from the bonds were mainly used for the construction of the Wudongde Hydropower Station and Baihetan Hydropower Station, which conforms to the requirements of the Notice on the Pilot Program of Green Corporate Bonds issued by Shanghai Stock Exchange and the Catalogue of Green Bond Support Projects (2015 Edition) issued by the Green Finance Committee of China Society for Finance & Banking. This issue had played a positive role in supporting the improvement of domesticenvironmentalbenefitsandpromotinggreendevelopment.

Everbright Water, an environmental protection group focusing on comprehensive water environment treatment, issued RMB 800mncorporatebondsandpandabonds,toqualifieddomesticinvestorsinAugust2018.Partofthefundsraisedinthisissueof panda bond variety were used for green projects in line with the Green Bond Support Project (2015 Edition) compiled by the Green Finance Committee of China Society for Finance & Banking, to facilitate the development of energy conservation and environmental protection industry.

We helped China Three Gorges Corporation publicly issue green exchangeable bonds

We issued RMB 800 million panda bonds to support green industrial projects

GreenOfficeWepayattention to low-carbonandenvironmentalprotection inbusinessdetails,andpromotegreenofficeandgreentravel to reduce the negative impact of our operation on the environment. By implementing OA and launching “Everbright e-information”digitalofficeplatform,wehelpmoreemployeesachievemobileinternetaccessandreducethedeliveryofpaper documents. By advocating paper reuse, we reduce paper consumption. We encourage employees to participate in waste recovery program and collect recyclable waste such as waste paper by setting up waste recovery facilities. We carry out actions to save electricity and water and put up environmental protection signs to encourage employees to reduce energy consumption, and vigorously promote environmental protection in the World Water Day of March 22nd and the Earth Day of April 22nd.

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

The opening of environmental protection facilities to the public promotes the sustainable and healthy development of enterprises. Making these facilities operated under public supervision helps enterprises fully implement the entity responsibility of environmental protection, and further improve the level of environmental management.

-- Mr. Zhuang Guotai, Deputy Minister of Ministry of Ecology and Environment

With the deepening of the prevention and control of pollution, the construction of urban environmental protection infrastructure such as waste incineration plant was increasing. However, “NIMBY effect” still existed in some waste-to-power projects. In order toenhancethepublic’sawarenessandunderstandingofenvironmentalprotectionfacilities, in2018,EverbrightInternationalannounced to take the lead in opening 77 environmental protection facilities in business areas such as waste-to-power, sewage treatment, hazardous waste disposal and biomass power generation. We showed environmental protection facilities to residents, students and government departments, and introduced relevant knowledge of environmental protection to guide the public to enhance their awareness of environmental protection and encourage more public to live in a green lifestyle.

In order to protect the environment of the coastline and create a cleaner and more beautiful Hong Kong, on the eve of Labor Day of May 1st, nearly 100 employees and their family members from seven subsidiaries of Everbright Group in Hong Kong gathered at Tuen Mun Golden Coast, Hong Kong to participate in the “Everbright Hong Kong Coast Environmental Protection Day 2018” public welfare activity. All volunteers recycled dozens of kilograms of coastline waste such as plastic bags and drinking bottles through practical action and live green lifestyles.

We open environmental protection facilities to the public to deliver green values

We make Golden Coast cleaner

EverbrightInternationalholdsacampaignthemed“Water:intheFuture”onworldwaterday

“Everbright Hong Kong Coast Environmental Protection Day 2018” public welfare activity

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

Case

Case

Case

Case

Building a world-class enterprise requires a dynamic

team, mechanism and culture. We protect the rights and

interests of employees, improve the salaries and benefi-

cial system, and care about employees’ health and safety

condition. We motivate employees’ vitality, build a plat-

form for ability improvement and career development, and

help them realize their own individual value. We promote

Everbright culture and get everyone together to build

warm atmosphere together.

Increasing Vitality and Gathering Energy

Rights Protection

Vitality Motivation

Culture Promotion


62 63


Rights ProtectionWe obey the Labor Law of the People’s Republic of China, the Labor Contract Law of the People’s Republic of China and other relevant laws and regulations. We follow the principle of equal employment, treat employees of different ethnic groups, gender and cultural background fairly. Also, we do not bare gender inequality. We prohibit the use of child labor and resist all forms of forced and compulsory labor. In 2018, Everbright had a total of 90,880 employees.

SalariesandBenefitsWecontinue improving thesalariesandbenefitsmanagementsystem, improve thewelfareguaranteeofemployees,and strive to provide competitive salaries. We pay salaries on time and pay “Five Insurances and One Housing Fund” in full for our employees. We guarantee that our employees can enjoy annual vacation, sick leave, marriage leave, parental leaveandotherholidaysaccording tonational schedules. In2018,EverbrightGroup’s social Insurancecoverage of employees was 100%.

Capacity BuildingAccordingtothetalentcultivationconceptofclassifiedcultivation,dual-coredriveandsoundmechanism,weimplement“Leading personnel plan”, “Voyage boosting plan” and “Elite incubation plan” for employees with different levels and needs to enhance the pertinence and effectiveness of staff training. We build Everbright University as the school involves teachingknowledgeofthePartyandcorporateuniversityofEverbrightGrouptocultivatefirst-classtalentteam.Wesetupanonlinetrainingplatformtoimprovetrainingefficiencyandmotivateemployeestoparticipateintraining.

50.78% 49.22%

Gender breakdown

10.95%

20.26%

13.02%

55.37%

0.40%

Educational background

27.25%

10.92%

25.64%

21.70%

14.49%

Vitality MotivationTalent is one of the core competitiveness of an enterprise. We strive to motivate the vitality of employees, provide good conditions and policy guarantee for their career development and self-worth realization to realize the common development of Everbright Group and the employees.

We provide senior managers with training from superior unit, training on Party spirit, overseas training and online training to help them with personal development. In 2018, 27 persons of leading cadres were organized to attend the “one university and six schools” training courses. 25 people were selected and attend the “new era, new responsibilities and new actions” party spirit cultivation training courses.

Voyage boosting plan

Elite incubation plan

We provide young and middle-aged leaderships with training on Party spirit, business training, strategy and risk training to help them study the guiding principles of the 19th CPC National Congress. Also, we provide these opportunities to help them deepen the thoughts about financial innovation and industry-finance cooperation and improve their ability to interpret and implement the strategy of Everbright Group. In 2018, four sessions of “Everbright Group strategic seminar” and “Everbright Group comprehensive risk management and legal risk prevention training course” were held, with more than 700 participants attended.

We focus on cultivating the innovation capacity of outstanding employees. By selecting and transferring key employees to attend training on financial innovation, cultivation of innovative thinking, big data, artificial intelligence, operation mode and operation of industry-finance cooperation and financial analysis, we improve their innovation ability, update their knowledge and provide intellectual support for them to promote the development of innovative services with innovative thinking in their future work.

Career DevelopmentFollowingthecorrectHumanResourcesguidance,weestablishtheconceptof“Advocatingfirst-class,pursuingexcellence”and “One should do concerned with the title to the most of one's capacity”. We gradually improve the fair and open mechanism for employment, innovate recruitment model, optimize the employee career development channel, provide career development opportunities for employees, and strive to build a loyal, clean and responsible talent team in Everbright Group.

In order to better select and cultivate talents, Everbright Bank launched the Everbright Recruitment plan named Talent Pavilion to build a comprehensive talent selection platform, broaden the channels for employment, as well as promoting horizontal and vertical exchanges of talents at all levels and among people with all majors. In 2018, Everbright Recruitment held four sessions of activities recruiting 58 people within the system and 19 people from outside of the company.

We set up Everbright Recruitment called Talent Pavilion to enliven the “water of talent”

Healthcare and SafetyWe attach importance to the healthcare and safety of employees, and require subsidiaries to carry out occupational wellbeing management of employees according to their own business characteristics, so as to minimize safety risks. We focuson improvingemployees’safetyawarenessandemergencydisposalcapacity,carryingoutvarioussafetyeducationand training toprotectemployees’safety. In2018,EverbrightGroup’sphysicalexaminationcoverageofemployees was 100%.

Age breakdown

Male FemaleLower than junior college (excluding) Junior college Bachelor’sdegreeMaster’sdegreeDoctor’sdegree

Below 25 (excluding) years of age25-29 years of age30-34 years of age 35-39 years of ageAbove 40 years of age

Leading personnel plan

Case


64 65


We carry forward the enterprise spirit of pursuing greatness and excellence, keep going forward, strive to create first-classenterprisewithoutstandingproduct and management.

WeelevateEverbrighters’demeanorand construct sunshine ecosphere through promoting mutual appreciation and tolerance within the company to provide strong support for Everbright Group to meet new challenges.

We promote the development of the enterprise with modern commercial civilization and ethics, and make Everbright Group a more well-respected and trustworthy enterprise in the market competition and cooperation.

We create a great atmosphere in Everbright Group for every employee to grow up and to pursue dreams. Everbright can also be a harbor for employees to rest in. With the concept of “One Everbright”, we build one warm home for all of our employees.

Cultivating sense of

responsibility

Cultivating pro-mercantilism

culture

Culture PromotionWe inherit our good tradition of forging forward, reforming and innovating. We march forward with the era and pursue integrated development as well as endowing Everbright culture with new connotation. Guided by Everbright culture, we inspire all Everbrighters to make unremitting efforts and move forward with determination.

Implanting CultureWe implement the Corporate Culture Work Program of Everbright Group, carry out various corporate culture initiatives, and strive to have all employees participated in building corporate culture. We hold “Striding into new era and carrying forward new culture” and relevant activities, establishcorporateculturepublicitycarrierssuchasWeChatofficialaccounts“EverbrightFuture”and “Everbright e-Home”. At the same time, we build a platform for employees to participate in the construction of corporate culture, and deeply implant Everbright culture into every employee. In 2018,theWeChatofficialaccount“EverbrightFuture”wontheNewMediaPromotionAnnualCaseAward in both of the Annual Brand Case Competition of China Finance and the Chinese Enterprise New Media Originality Award in the Chinese Enterprise New Media Annual Conference.

Everbright Future

OnAugust18th,1983,as thepioneerofChina’s reformof economic system and the window of opening-up, Everbright Group was established and officially operated inHongKong.That’sthefirststepofourdevelopment.Onthe occasion of the 35th birthday of Everbright Group and the40thanniversaryofChina’sreformandopening-up,weset August 18th as “Everbright Day” with the aim to inherit our good tradition of forging forward and keeping on reform and innovation. We set a role model and carry forward Everbright spirit in the new era.

Setting Role ModelsOur achievements in development are inseparable from the hard work of generations of Everbrighters. We vigorously carried forward the spirit of model workers and encouraged employees to make contributions to the company. We encouragedemployees to follow thenationalfinancialstrategyanddeepened thereformofEverbrightGroup throughinnovation and practical exploration. In recent years, a number of advanced collectives and individuals have emerged in Everbright Group. In 2018, Everbright Bank Nanjing Branch Changzhou Sub-branch was awarded the National May 1st Labor Award. Incineration Technology Institute of Everbright Environmental Protection Technology Research Institute (Nanjing) Co., Ltd., as well as Everbright Bank Hohhot Branch Daxuedongjie Sub-branch were awarded the Pioneer of National Workers, two units including Everbright Bank Haikou Branch were awarded the National May 1st Labor Award for Finance. Also, six employees including Xue Xiaohua were awarded the National May 1st Labor Medal for Finance. At the same time, three collectives including Everbright Securities Wuxi Finance No.1 Street Security Exchange were awarded the National Financial Pioneer.

Mr. Shao Zheru is the Chief Scientist of Everbright International, and the Director of the Incineration Institute of Everbright Research Institute. Also, he is the Professor of Engineering and UN Expert on waste incineration guidelines. In 2018, Mr. Shao was awarded the honorary title of National Model Worker in the Financial System and “Financial Craftsman”. Since 2008, he has struggled to develop a garbage incinerator suitable for China. Under his leadership, Everbright International has developed from relying on imported incinerator technology to independently developing incinerator technology, and has achieved the transformation from being a follower to a leader in Asia and even in the world.

We fixed August 18 as “Everbright Day”, a festival for all Everbrighters

Everbright “Furnace Craftsman” interprets the spirit of craftsman with 10 years

“Everbright Day” Launching Ceremony and Prize-giving Activity

Mr. Shao Zheru is working

I like the title of Everbright 'Furnace Craftsman'. I want to develop incinerators for Everbright all my life. I will never be bored of it and never regret about it. I am lucky to earn the title of Financial Craftsman, which means greater responsibility for me.

-- Mr. Shao Zheru, Everbright ‘Furnace Craftsman’

Culture CultivationIn the journey of building a world-class enterprise, we strive to cultivate a “culture of homeland, sunshine, pro-mercantilism and sense of responsibility”. We enhance the cohesion between the company and our employees, inspire their enthusiasm for entrepreneurship, strengthen their confidence in achieving strategic target and create a harmonious and a win-win atmosphere.

Cultivating Everbright

culture

Cultivating homeland

culture

Cultivating sunshine culture

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66 67


Thefirst“EverbrightCup”Men’sBasketballGameofEverbrightGroup

Co-building HomelandWe respect and care every employee. By organizing various recreational and sports activities, we help employees balance the work and life and help them increase their sense of belonging and maximize their happiness and satisfaction. We take the initiative to listen to the opinions of employees, take their requirements into consideration and adopt various measures to solve their problems. We care for employees in need as well as female employees, and set up “care for seniors”, “care for excellence” and “care for Everbrighters” for retired veteran cadres.

The Fourteenth Sports Games of Subsidiaries of Everbright Group in Hong Kong

“One Everbright, Forward Hand in Hand” The Everbright Sports Festival Launching Ceremony and Healthy Hiking Activity

Flower Arranging Activity for female employees on the eve of the InternationalWomen’sDay

The Activity Center for Retired Cadres of Everbright Group is unveiled

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

On September 16th, 2018, Everbright Group held its first“AutumnScholarships”andCondolenceActivityforemployees in need in Shanghai Everbright Convention & Exhibition Center. “Autumn Scholarships” activity was another precise assistance activity carried out by Everbright Group after the “Cool Summer” activity. The targets were mainly employees from Everbright Groupwhowereinfinancialdistressduetothelong-term serious illness of either themselves or their family members.Therefore, theyhaddifficulty insupportingtheir children to be educated in high schools, colleges and universities. A total of 10 employees had been assistedbyEverbrightGroup’sAutumnScholarshipsactivity in 2018.

We launched Autumn Scholarships to precisely assist employees in need

Offering SuggestionsWe pay close attention to the democratic management of employees, and we constantly provide employees with communication channels to listen to their opinions. We build our home with sincerity. In 2018, we carried out activities with the theme of “thinking about reform, discussing innovation and promoting development”. We collected opinions and suggestions from employees at different levels regarding topics such as strengthening Party Building of state-ownedenterprises,servingtheRealeconomy,buildingaworld-classfinancialholdingsgroupwithglobalcompetitiveness,andcultivatingadvantagesinindustry-financecooperation.By listening to our employees, we also encourage employees to participate in enterprise construction. Chairman Li Xiaopeng Work WeChat account and Suggestion Email box have become communication and exchanges platforms for leaderships of Everbright Group with junior management and employees. By the end of 2018, Everbright Group had received nearly 40,000 pieces of advice from employees in this activity. More than 200 special reports were drew up and nearly 4,000 valuable advice and suggestions were sorted out.

In February 2018, as the Chinese Lunar Spring Festival approached, Chairman Li Xiaopeng came to the Everbright Building to attend the New Year Tea Gathering for Veteran Cadres of the Headquarters and the Unveiling Ceremony of the Activity Center for Retired Cadres. Meanwhile he extended his greetings to all retired cadres. Everbright Group continues improving the service for veteran cadres. We are grateful for the veteran cadres who made contributions to the development of Everbright Group at different stages. We develop a special bond with them, and understand, appreciate, care and tolerate them as family members.

We held New Year Tea Gathering and unveiled the Activity Center for Retired Cadres

By the end of 2018,Everbright Group

had received nearly

40,000 pieces of advice and suggestions from employees in this activity

Case

Case

Win-win cooperation will ensure steady and long-term

progress. We accelerate the developing paces of strategi-

cal cooperation and achieve mutual benefits with our part-

ners. We support overseas joint construction and share

achievements in operating countries. We adhere to peace-

ful co-existence and pay attention to the coordinated co-ex-

istence of the enterprise and the society.

Uniting in a Concerted Effort and Pursing for a Joint Development

Win-win Cooperation

Overseas Joint Construction

Peaceful Co-existence


70 71


Local governments

Everbright Group has established strategic partnerships with local governments of Beijing, Shanghai, Tianjin, Guangdong, Zhejiang, Sichuan, Inner Mongolia, Nanjing, QingdaoandSanyatoboostlocaleconomicand social development. The cooperation wascenteringonkeyareassuchasfinancialindustries, the Real economy and local development plan.

Cultural and educational institutions

Everbright Group has established strategic partnerships with cultural and educational institutions such as the Palace Museum, Song Chingling Experience Center and Peking University. All the educational institutions utilize their respective resources and professional advantages, work closely with each other in the fields of industry-university-research-finance,customerandchannelresources,andstrive for common development.

Industrial and comprehensive enterprises

Everbright Group established strategic partnerships with central state-owned enterprises such as CNOOC, State Power Investment Corporation, Dongfeng Corporation, China Baowu, Aluminum Corporation of China, China Merchants Group, China National Travel Service Group and COMAC. Also, we established strategic partnerships with local state-owned enterprises such as Shenzhen Metro and Beijing Tourism Group, private enterprises such as JD, BYD, Wanxiang Group and Tencent. Furthermore, we established strategic partnerships with overseas enterprises such as DUBAI HOLDING and MIRAAS HOLDING. All the parties make full use of their respective advantages to carry out strategic cooperation in business areas including financial service, environmental protection industry and international business.

Everbright Group has established strategic partnerships with trade organizations such as China Mergers & Acquisitions Association and China Tourism Association. All the trade organizations establish a long-term mechanism for cooperation and development in response to national strategies and the matchmaking of superior resources to jointly realize business model innovation and sustainable development.

Trade organization

EverbrightGroupandSichuanProvincialPeople’sGovernment signed a strategic cooperation agreement

Financial enterprises

Everbright Group has established strategic partnership with financialenterprisessuchasChinaDevelopmentBank,TheExport-Import Bank of China, Industrial and Commercial BankofChina,ChinaLifeInsurance,ChinaPacificInsurance,China Oriental, China UnionPay, CR Capital and Ant Financial. All the financial enterprises make full use of their respective advantages to carry out cooperation in specific business areas so as to enhance bilateral competitiveness and influence in the financial market and realize resource sharing and common development.

Everbright Group and Industrial and Commercial Bank of China signed a strategic cooperation agreement

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

Tourism Group

Everbright Group and Peking University signed a strategic cooperation intention

Everbright Group and COMAC signed a strategic cooperation agreement

Win-win CooperationFollowingtheconceptofopening-upandcooperation,weselect thesuitablefieldsanddirectionsandactivelycarryoutexchanges and cooperation with various stakeholders. We work with various partners in the society to create shared value together, and jointly promote industrial progress, and economic and social development.

Strategic CooperationWe utilize our advantages in massive resources, advanced technologies and talents network, and actively communicate and cooperate with departments of the government, various enterprises, educational institutions and trade organizations to build strategic cooperation platforms. We expand the scope and depth of cooperation and strive to create value and share results with strategic partners. The Group held talks and signed contracts with 77 strategic customers in 2018.


72 73


Promoting Industry DevelopmentWe actively organize and participate in industry activities, create a platform for industry interaction and exchanges. We also promote to share industrial experience and achievements to facilitate the healthy and sustainable development.

Founded in 2002, CYTS Alliance develops its members with the thought of diversification,wholeindustrialchainandtourismecosphere.Atpresent,theAlliancehas a total of 91 alliance members, covering all provincial administrative regions in China and four continents of Asia, Europe, America and Australia. CYTS Alliance sets up the Alliance Convention, utilizing the collaborative advantages between China CYTS Tours Holding and partners to promote the intensive and network operation of tourism enterprises. It also improves the management level of tourism enterprises, and provides customers with better tourism services to build a high-quality alliance in tourism industry.

Inordertobuildafinancialholdingsresearchplatformwiththejoint participation of government, enterprises, universities and research institutions, Everbright Group and Peking University's Guanghua School of Management jointly held the First Everbright-Guanghua Financial Holding Forum on November 24, 2018, on topics of how to leverage the advantages of financialholdingsgroup toserve theRealeconomy, tobuildthecompetitivenessoffinancialholdingsgroup in theglobalfinancial sector and to facilitate the high-quality economic development of China. The Forum focused on the research on economic and financial policies, as well as development of financial holdings group, industry-finance cooperation andotherfields. It timelyreflectedandexportedhigh-qualityresearch results and practical experience to contribute wisdom to furtherexplore thepathoffinancialholdingsdevelopmentwithChinesecharacteristicswhichfacilitatednationalfinancialand economic development.

China CYTS Tours Holding Alliance stands for quality tourism services

Everbright-Guanghua Financial Holdings Forum facilitates high-quality development of financial holdings group

Overseas Joint ConstructionIn line with national strategic deployment of “Going Global”, we explore an international layout, and formulate effective strategies and programs to promote the planned development decision of overseas institutions. We improve overall management process, establish overseas institutions and related services to focus on building an integrative product and service system that covers the majorservicesofEverbrightGroupbothathomeandabroad.Inthiscase,weareabletoformacomprehensiveindustry-financeecosystem with Everbright characteristics and better serve our customers as well as national strategies. In terms of overseas operation, we take the initiative to integrate into the development of local countries, cooperate with overseas partners and take on the responsibility as a global citizen.

Everbright Group initiated the construction of China-Africa tourism trade ecosphere at the Sixth Conference of Chinese and African Entrepreneurs in 2018

The First Everbright-Guanghua Financial Holdings Forum

We use our advantages in owning diversifiedindustriestopromotetheoptimal allocation of resources on a global scale

We actively promote recruitment of overseas employees in local market to cultivate local talents

We actively participate in the community co-construction activities in local countries, and share the achievements in development with local communities

Driving the development of countries where the organization operates

Cultivating overseas talents

Practicing overseas community public welfare

Case

Case

Everbright Bank Luxembourg Branch promoted localized operation, expanded the recruitment of local employees, and recruited employees from a list of unemployed people who were recommended by the Ministry of Labor of Luxembourg. In this way, we were able to ease the employment pressure of Luxembourg and promoted social harmony. By the end of 2018, Everbright Bank Luxembourg Branch have recruited 30 employees from 9 countries and regions including Luxembourg and Singapore. In 2018, 92.1%ofEverbrightBank’soverseasemployeeswerelocallyrecruited.

We increase the local employment rate of overseas enterprisesCase

“Seoul • China Day” was an important cultural exchange event to carry out people-to-people exchanges and enhance the friendshipofpeoplefromthetwocountries.Duringthe“Seoul•ChinaDay”eventin2018,togetherwithlocalinstitutionsoffiveChinese-fundedbanks,namelyICBC,ABC,BOC,CCBandBOCOM,throughintroducingfinancialknowledgeandansweringquestionsaboutfinancialservices.EverbrightBankSeoulBranchmademoreSouthKoreansgetabetterunderstandingandenjoymentoftheconvenientandsafefinancialservicesprovidedbyChinese-fundedbanks.

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


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For the residents in the arid areas in Western China, problems such as long-time water intake and unguaranteed water quality have been standing out for quite a long time. Everbright Bank has been supporting the Water Cellar for Mother public welfare program of China Development Research Foundation for 14 years since 2005. The program is aiming to alleviate the water consumption problems for residents in the arid areas in provinces and regions of Western China, including Gansu, Ningxia, Inner Mongolia, Shaanxi, Guangxi, Sichuan,Qinghai,Tibet,Guizhou,Xinjiang,JilinandShanxi.WaterCellarforMotherprogramcouldnotonlyalleviatethedrinkingwaterdifficultyforresidentsbutalsoensureditssafety.Itmadeanewlookoftheirlivingenvironment and spiritual outlook. By the end of 2018, Everbright Bank had donated 8,593 water cellars, 83 small water conservancy projects and 7 safe drinking water programs on campus.

CEB International held a charity auction on their second founding anniversary. At the auction, each item was donated voluntarily by our employees. All the items donated with ingenuity and sincerity attracted competitive bids from those kind-hearted participants. The campaign raised a total of RMB 45,000, all of which were donated to the Lifeline Express public welfare program to bring eyesight and hope to cataract patients in poverty.

We celebrated our founding anniversary with a charity auction

Water Cellar for Mother program nourishes thousands of families

Ontheoccasionofthe69thInternationalChildren’sDay,ChinaCYTSTours Holding held the “Learning About Distant Cities · Public Welfare Research Summer Camp” event in Xinhua County, Guzhang County and Xintian County of Hunan Province. The event was consisted with 46 participants including faculty members and students. During the event, China CYTS Tours Holding organized students to visit the Forbidden City, Great Wall, National Stadium, Water Cube and other scenic spots and historical sites and new landmarks. The students went totheQuintessenceSpaceofSongChinglingExperienceCentertomake woodwork and tie-dying works. The students were also invited to participate in the little banker innovation occupational experience course in Everbright Bank Financial Street Sub-branch. The public welfare researchsummercamphaseffectivelyhelpbroadeningchildren’shorizonsandmotivatedthemtostudyhardtofightforpoverty.

In cooperation with Everbright Bank and Beijing Hongdandan Education and Culture Exchange Center, China CYTS Tours Holding held a Public Welfare Program of the 8th Visually Impaired People Tour Group named “Listen · Tour of Coin” in Beijing Ancient Coins Museum. With the one-on-one companion of volunteers, 19 visually impaired people were taken to a unique coin culture tour. During the tour,theylearnedaboutfinanceandthehistoryofancientcoins.

LiaisonOfficeof theCentralPeople’sGovernment in theHongKongS.A.R.,Officeof theCommissionerof theMinistryofForeignAffairsofthePeople’sRepublicofChinaintheHongKongS.A.R,Chinesepeople’sLiberationArmytroopsstationedin Hong Kong, and some other Chinese enterprises in Hong Kong jointly held an event called “Labor is most glorious and volunteers take actions”. In response to the event, on October 13rd, 2018, Everbright Bank Hong Kong Branch cleared roadblocks and debris on the road that caused by Typhoon Mangkhut, and successfully completed the clearance of 65 severely damaged sites along the 100km of MacLehose Trail from Pak Tam Chung to Tuen Mun.

Voluntary ServiceWe encourage our employees to participate in various voluntary activities, closely combine voluntary services with the development of the enterprise, constantly explore new directions for the development of public welfare to deliver positive energy of Everbright.

I did not know what kind of services the bank would provide for the visual-impaired, and I barely had the opportunity to personally listen to the introduction by bank’sprofessionalsonmoneymanagement.Today, Ilearned about it, and also learned to count the money and I found that it is not a easy job to count the money!

-- A participant of the 8th Visually Impaired People Tour Group Public Welfare Program

We practiced volunteerism and carried out “Mangkhut” disaster relief

We launched a coin culture tour for the visually impaired people

Public welfare research summer camp helped children learn about distant cities

“Learning About Distant Cities · Public Welfare Research Summer Camp” event

Second anniversary charity auction of CEB International

The 8th Visually Impaired People Tour Group Public Welfare Program named “Listen · Tour of Coin”

Peaceful Co-existenceWecareabout the issuesrelated topeople’s livelihoodandactivelycarryoutactivitiessuchascharityandvolunteerservices to improve social well-being and happiness.

CharityWecarryoutdiversifiedpubliccharityactivities.Thoughdonationandpublicwelfareprojects,wehavedevotedourselvestorewardingthesocietyandimprovingpeople’slivelihood.

In 2018,Everbright Bankdonated RMB

3 million

to the Water Cellar for Mother public welfare program.

Case

Case

Case

Case

Case


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World-classenterprisesshouldtakefirst-classsocialresponsibilitiesontheirshoulders.

We designated the year 2019 as the “Year of Value Creation” of Everbright Group. With valuable words, valuable operation and valuable enterprise in mind, we will make great efforts to create greater value for the customers, society, shareholders, employees and other stakeholders.

Constantly utilizing to our unique advantages of intrust system and actively devoting ourselves to charity. Striving to initiate 30 charitable trust projects with a scale of RMB 30 million in 2019.

By rooting and adapting in Hong Kong market and serving Hong Kong, fulfilling our mission and responsibility. Participating in the construction of the Canton-Hong Kong-Macao Greater Bay Area, supporting the SAR Government in governing Hong Kong in accordance with the law, supporting HongKongineconomygrowthandimprovingpeople’slivelihood.SupportingHongKonginachievinggreater development and better serving for the long-term prosperity and stability of Hong Kong.

China Everbright Holdings Company Limited

Continuing strengthening management, enhancing risk prevention, taking the opportunity of restructuring and strategic positioning to establish the modern corporate governance mechanism.

China Youth Travel Group

Continuously committed to creating “blue sky, white clouds, green water and green mountains” to make life more beautiful! Striving to build 100 bio-toilets (including design consultation and construction equipment) in municipal scenic spots as well as 1,000 rural household toilets in 2019. In this case,we can contribute to the construction of beautiful villages! Striving to build 16 sticky solid waste environmental protection projects to make greater contributions for environmental protection.

China Everbright Industrial (Group) Company Limited

Everbright Xinglong Trust Co., Ltd.

Continuinginnovatingfinancialproducts,improvingservicelevel,reducingfinancingcosts,andcreating greater value for the society.

Fullyutilizingthebasicfunctionsof thecapitalmarketandmakingflexibleuseofavarietyoffinancialinstruments,suchasthescienceandtechnologyinnovationboardandgreenfinancialbonds, to practically serve the development of the Real economy. Continuing to devote ourselves to the poverty alleviation projects in 11 places of seven provinces, implementing more than 30 poverty alleviation projects throughout the year, and playing a greater role in winning the battle against poverty.

Everbright Securities Company Limited

Committed to becoming the most trustworthy and favorite insurance company of our customers. Continuing to explore more efficient and preciser insurance poverty alleviation and providing more distinctive and valuable insurance products to ensure a better life for customers.

Sun Life Everbright Life Insurance Co., Ltd.

Bearingoursocial responsibilityandgloriousmission,paving theway tofindnew impetus,creating new highlights and initiating new development.

Everbright Financial Holding Asset Management Co., Ltd.

CSR Fulfillment Commitment in 2019Subsidiaries

China Everbright Bank Company Limited

China Youth Industrial Development Corporation

Searching for the precise entry point and devoting ourselves to the inclusive healthcare industry to jointly realize the Chinese dream of health.

MakingourcontributiontobuildadigitalandsmartChinawiththe innovativeandfightingspiritof Everbright Technology people. Actively fulfilling our social responsibility for scientific and technological innovation, and striving to build a better life and promoting the development of inclusivefinanceandnationaltechnologicalinnovationstrategy.

Continuing accepting the supervision from all different circles of the society with more energetic working attitude and pragmatic and sincere enthusiasm. On the one hand, we will seize the development opportunities brought by the medical reform, improve our management, and expand the scale of the enterprise. On the other hand, we will continuously improve the CSR management system, explore effectivemeasurestofulfillCSR,strengthenthecommunicationandexchangewithpartnersandotherstakeholders.Furthermore,wewillpromotethecompanytobetterfulfillCSRandsupportpublicwelfareand realize the harmonious development of the enterprise itself and the whole society.

Cachet Pharmaceutical Co., Ltd.

Focusing on our main business, implementing prudent operation, and gathering strength to improve value creation and core competitiveness. Comprehensively strengthening Party Buildingandstrivetobecomeafirst-classAMC.

With the corporate mission of “protecting the ecological environment and building a beautiful China”, we aim to create a better investment value and bear more social responsibility on our shoulder.Withresponsibility,strength,efficiencyandvitalityofthiscentralstate-ownedenterprise,we will maintain the strong growth momentum in 2018, give play to our strong advantages in scale, quality, technology and brand, reform and upgrade. We will continue making innovation and strive to become a leading ecological enterprise in the world.

As a cross-border asset management and investment company based in Hong Kong, committed to supportandsponsorpublicwelfareplansthatarebeneficialtothedevelopmentofHongKongandthe country by virtue of our unique characteristics and geographical advantages, with the purpose to contribute to social harmony.

Promoting the development of cultural innovation industries, optimizing the business structural layout, and building a modern cultural and creative industrial system. We will fulfill the responsibilitiesofcentralstate-ownedenterprisescenteringontheGroup’sdevelopmentstrategy,andimplementtheinclusivemeasuresofculturalinnovatedfinance.

Adhering to the brand concept of “accompanying you with heart and soul”, to be a provider of quality life for customers. On the way to build a global leading comprehensive tourism service provider, striving to achieve good results, stepping to a new height with all our strength, and to be a dream-maker keeping pace with the times.

China Everbright International Limited

EverbrightJin’ouAssetManagement Limited

China Everbright Limited

Everbright Culture Investment Limited

China CYTS Tours Holding Co.

China Everbright Technology Limited

Continue enforcing

headquarters construction

Strengthen scientific and technological

support

Promote merger and

reorganization

Strengthen E-SBU

construction

Increase capital

contribution

Realize personal

value

76

Responsibility, A More Beautiful Future

Subsidiaries CSR Fulfillment Commitment in 2019


78 79


Iamverygladtobeinvitedtopre-readtheChinaEverbrightGroup’sCorporateSocialResponsibilityReportof2018andmake comments on it! The year 2018 marks the 35th anniversary of Everbright Group. This report is not only the result of 35-year development of Everbright Group with responsibilities, but also the outstanding achievements of Everbright Group in 2018. This report is considered as a breakthrough and a successful attempt for Everbright Group to innovatively communicatewithallcirclesof thesociety.Through this report,wecouldseeEverbrightGroup’sdeterminationandmotivation to pursue high-quality self-development, as well as to promote sustainable development of the whole society with an open and inclusive mind.

Afterreadingthroughthereportcarefully,Iamimpressed,andIwanttohighlightthreeaspectsfromthereportasfollowing:

Distinct reporting frameworks. In this report, there are seven chapters as the main content of the report which are derivative fromEverbrightGroup’s“EightFirst-class”value.Thecontentnotonlycoversthethreedimensionsofeconomic,socialandenvironmental responsibilities, but also includes stakeholders such as government, shareholders, customers, employees, community,environment,partnersandotherrelatedparties.Itsdistinctivecontentclassificationisnaturallyandperfectlydone.Thesevenchaptertitlesarethefollowing:“Showingaspiration”,“EstablishingReputation”,“FocusingonInnovation”,“Holdingthe Bottom Line”, “Building Beautiful Ecology”, “Increasing Vitality”, and “Uniting in a Concerted Effort”. All these chapter titles are perfectly comprehensive, straightforward, reader-friendly and with rich content.

Distinctive responsibility model. The“Sunshine”ResponsibilityModelwasintroducedforthefirsttimeinthisreport,andthenameofthemodeldirectlyechoesbytheorganization’scorporatevision“ChinaEverbright,BetterLife”.Theconnotationof the model cleverly cites the “photosynthesis” in nature, which vividly and accurately interprets the way in which Everbright Groupfulfillsitssocialresponsibilitywithintheirdailybusinessoperation.EverbrightGroup’sideaofassociatingitscorporatevaluewithbothofthevaluesofthetimesandindividualvaluehighlightsthecompany’svisionandcompetencyof“becomingaworld-classfinancialholdingsgroupwithglobalcompetitiveness”.

Distinctive practice of responsibility. Everbright Group has moderately diversified businesses with the characteristic of industry-finance cooperation. In this report, each chapter discloses a large number of practical cases of responsibility practices from institutions and industries like banking, securities, insurance, trust, asset management, inclusive healthcare, comprehensive tourism and integrated environmental protection. The content of the cases is comprehensive and rich. The severalofresponsibilitypractices, includinggreenfinance,qualityfinancialservices,waste-to-powerandbio-toilets,notonlygivereadersdeeperperceptionsandunderstandingofEverbrightGroup’sresponsibilityinthefinancialsector,butalsoshowthereadersthesameoutstandingmilestoneaccomplishedbyEverbrightGroupintheindustrialfield.

Sunshinebringsvigorto livesontheearth. IwishEverbrightGroupabetterandbrighterfutureonthewaytofulfillsocialresponsibility and promote sustainable development!

Chapter GRI Standard Benchmarking

SDGs Benchmarking

About the Report 102-45/102-46/102-48/102-50/102-52/102-53/102-54 /

Sincere Greetings 102-14 /

About Everbright 102-18/102-22 /

About Everbright - Corporate Strategy 102-1/102-2/102-3/102-4/ 102-5/ 102-6/ 102-7/ 102-15 SDG12 SDG16

About Everbright - Corporate Governance 103-1/103-2 SDG10 SDG16

About Everbright - Responsibility Management102-16/102-17/102-40/102-41 /102-42 /102-43 /102-47/103-1/103-2/103-3

SDG12 SDG16

Focusing on Responsibility - Remaining True to the Original Aspiration and Go Ahead Bravely 203-1/203-2 SDG8 SDG9 SDG10

Focusing on Responsibility - Boosting Poverty Alleviation for a Moderately Prosperous Society 203-1/203-2 SDG1 SDG3 SDG4 SDG8 SDG9 SDG10

Showing Aspiration with Great Ambition - Leadership of Party Building 103-1/103-2

SDG1 SDG8 SDG9 SDG10 SDG11 SDG17Showing Aspiration with Great Ambition - Mission Undertaken 203-1/203-2

Showing Aspiration with Great Ambition - Open Development 203-1/203-2

Establishing Public Reputation and Building Brand Image - Financial Sector 103-1/103-2/203-1/203-2

SDG3 SDG9 SDG12Establishing Public Reputation and Building Brand Image - Industrial Sector 203-1/203-2

Establishing Public Reputation and Building Brand Image - Serving Brand 103-1/103-2/203-1/203-2

Focusing on Innovation and Promoting Transformation - Technology and Innovation Management 103-1/103-2

SDG8 SDG9 SDG12Focusing on Innovation and Promoting Transformation - Innovation Practice 103-1/103-2

Focusing on Innovation and Promoting Transformation - EfficientCollaboration 103-1/103-2

Guarding the Bottom Line and Risks Preventing - Strict Governance over the Party 205-1/205-2

SDG10 SDG16Guarding the Bottom Line and Risks Preventing - Compliance with Laws and Regulations 103-1/103-2

Guarding the Bottom Line and Risks Preventing - Prudent Operation 103-1/103-2

Protecting Ecology and Beautifying Homeland - Green Industry 103-1/103-2

SDG6 SDG7 SDG11 SDG12 SDG13 SDG15Protecting Ecology and Beautifying Homeland - Green Finance 103-1/103-2

Protecting Ecology and Beautifying Homeland - Green Operation 201-2

Increasing Vitality and Gathering Energy - Rights Protection 401-2/405-1/405-2

SDG4 SDG5 SDG8Increasing Vitality and Gathering Energy - Vitality Motivation 404-1/404-2/404-3

Increasing Vitality and Gathering Energy - Culture Promotion 103-1/103-2

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

SDG8 SDG16 SDG17Uniting in a Concerted Effort and Pursuing for a Joint Development - Overseas Joint Construction 203-1/203-2

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

Responsibility, A More Beautiful Future / /

Expert Opinions / /

Report Index 102-55 /

Feedback Form / /

Expert Opinions Report Index

Yu Zhihong, President and Chief Editor of China Sustainability Tribune

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Feedback Form

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中国光大

Everbright Future

China E

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2018 Corporate S

ocial Responsibility R

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