Haitong Unitrust International Financial Leasing : 2021 Annual Report

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Haitong Unitrust International Financial Leasing Co., Ltd.

(A joint stock company incorporated in the People's Republic of China with limited liability)

4UPDL $PEF: 1905

CONTENTS

Company Profile 2

Corporate Information 3

Financial Summary 5

Chairman's Statement 10

General Manager's Statement 13

Management Discussion and Analysis 16

Directors, Supervisors and

Senior Management 71

Corporate Governance Report 81

Directors' Report 106

Report of the Board of Supervisors 125

Definitions 130

Glossary of Technical Terms 133

Independent Auditor's Report 134

This report has been prepared in Chinese and English respectively. In case of discrepancy, the Chinese version shall prevail, except for the financial report prepared in accordance with IFRS, of which the English version shall prevail.

The Group is a large and steadily growing financial leasing company in China. As the sole leasing platform and one of the key strategic segments of Haitong Securities, a leading securities firm in China, the Company offers customer-oriented and comprehensive financial services to a diverse group of customers across various industries. The Company strives to become a financial leasing company that leads industry innovation with the characteristics of capital market.

Over the years, the Group has been adhering to its role as a financial service provider of the real economy and has been grasping favorable opportunities arising from the major transformation of economy of China. The Group has also pursued the operating strategies of "cross-border thinking, promoting innovative development, strengthening our capacity and grasping business opportunities". Based on its customer development strategy of maintaining a balanced customer base, the Group has pursued its long-term goal of "professional, group-based, internationalized and digitalized" business development. It has also provided tailored services to a wide range of customers, including LMEs, MSEs and retail customers. We have continued to provide comprehensive financial services to customers in advanced manufacturing, transportation & logistics, urban utilities, energy and environmental protection, construction, culture and tourism, healthcare and other industries by implementing the best practices of investment banking and strengthening the collaboration with our parent company, financial institutions and industrial ecosphere partners, etc. We have formed a competitive advantage with unique securities firm characteristics, including coordinated allocation of resources and assets and balanced growth of business scale and income.

2 Haitong Unitrust International Financial Leasing Co., Ltd.

The Group's headquarters is located in Shanghai and operates seven specialized business departments, namely Public Services Department, Construction Department, Advanced Manufacturing Business Department, Digital Environmental Protection Business Department, Healthcare Business Department, Asset Transaction and Structured Financing Department and Project Management Department. We have also established 17 branches. Our branch network also encompasses a number of subsidiaries in areas including Hong Kong, Tianjin and Shanghai. Through implementing a "One Body, Two Wings" business development strategy, we have expanded the geographical coverage and customer base of our domestic and overseas business. As such, our local teams have been able to develop expertise that is most pertinent to the local market environments.

On June 3, 2019, the Company was successfully listed on the Main Board of the Hong Kong Stock Exchange and was the first listed securities-affiliated financial leasing company in China.

BOARD OF DIRECTORS

Executive Directors

Mr. DING Xueqing (Chairman of the Board) Ms. ZHOU Jianli

Non-executive Directors

Mr. REN Peng

Ms. HA Erman Mr. LI Chuan Mr. WU Shukun

Mr. ZHANG Shaohua

Independent non-executive Directors

Mr. JIANG Yulin

Mr. YAO Feng

Mr. ZENG Qingsheng Mr. WU Yat Wai

Mr. YAN Lixin

AUDIT COMMITTEE OF THE BOARD

Mr. ZENG Qingsheng (Chairman)

Mr. ZHANG Shaohua

Mr. YAN Lixin

NOMINATION COMMITTEE OF

THE BOARD

Mr. JIANG Yulin (Chairman) Mr. REN Peng

Mr. WU Yat Wai

(Note)

REMUNERATION AND EVALUATION

COMMITTEE OF THE BOARD

Mr. JIANG Yulin (Chairman)

Mr. WU Shukun

Mr. YAO Feng

Mr. ZENG Qingsheng

RISK MANAGEMENT COMMITTEE

OF THE BOARD

Mr. YAN Lixin (Chairman)

Mr. DING Xueqing

Mr. ZHANG Shaohua Mr. YAO Feng

ENVIRONMENTAL, SOCIAL AND

GOVERNANCE COMMITTEE OF THE BOARD

Mr. DING Xueqing (Chairman)

Ms. HA Erman

Ms. ZHOU Jianli Mr. YAN Lixin

BOARD OF SUPERVISORS

Ms. ZHOU Tao (chairwoman)(Note)

Mr. CHEN Xinji

Mr. HU Zhangming

JOINT COMPANY SECRETARIES

Mr. FU Da

Ms. SO Shuk Yi Betty (ACG, ACS)

AUTHORIZED REPRESENTATIVES

Mr. DING Xueqing

Ms. SO Shuk Yi Betty (ACG, ACS)

Ms. ZHOU Tao has tendered her resignation from the office of the shareholder representative supervisor of the second session of the Board of Supervisors and the Chairwoman of the Board of Supervisors of the Company. Her resignation will come into effect upon the election of a new supervisor at the Company's general meeting. Please refer to the announcement of the Company dated March 6, 2022 for details.

Annual Report 2021 3