16.
Social Responsibility Report
- Board Statement
During the reporting period, the Company focused on its role as a financial asset management company, thoroughly implemented the spirit of the fourth Plenary Session of the 20th CPC Central Committee and the Central Economic Work Conference, steadfastly promoted the “One-Three-Five” development strategy, advanced the Company’s high-quality and sustainable development, and better contributed to overall national economic and social progress. The Company actively practiced the ESG concept, strictly complied with the ESG Code, rigorously implemented ESG-related policy requirements, continuously improved ESG work performance, and actively fulfilled its corporate social responsibility.
The Company established a top-down ESG governance framework, which clearly defines that the Board of Directors is responsible for ESG strategy and reporting, while the Management is responsible for the overall implementation and execution of specific ESG initiatives. A social responsibility fulfillment and management mechanism was established at the headquarters level, coordinated by multiple functional departments, with a designated contact person system implemented across departments, branch offices, and subsidiaries to ensure the advancement of ESG initiatives in an orderly manner.
As the highest decision-making body, the Board of Directors formulates ESG management policies, strategies, and objectives, assesses the Company’s ESG risks, and reviews ESG-related issues. Leveraging the internal control management mechanism, the Board of Directors identifies key ESG risk control elements, regularly reviews ESG matters that could impact the Company’s business operations, and interests of shareholders and other stakeholders, evaluates and supervises the operation of the Company’s ESG management system. Meanwhile, based on the opinions of stakeholders and the assessment results of material issues, the Board of Directors incorporates key issues into the Company’s governance procedures, and reviews the Company’s ESG report, which covers the annual ESG management and practice progress, ensuring its full participation in ESG governance and related information disclosure.
To effectively promote ESG management and enhance the Company’s sustainable development capabilities, the Board approved the inclusion of ESG in the scope of responsibilities of the Strategy and Development Committee of the Board in 2025. The committee is responsible for researching and formulating policies, goals, and significant matters of the Company on environmental (including climate change), social and governance, reviewing the disclosure matters related to environmental (including climate change), social and governance, and reports directly to the Board.
During the reporting period, the Board of Directors reviewed and supervised policies and measures related to ESG issues, including serving national development strategies, operational compliance, climate change response, and social welfare. This report provides a comprehensive disclosure of the Company’s progress and achievements on these and other ESG issues in 2025 and was approved by the Board of Directors on March 30, 2026.
- Governance Responsibility
- Corporate Culture
Company Mission: practicing national strategies, serving the real economy, and mitigating financial risks Company Vision: focusing on the main business of distressed assets and building a first-class financial
asset management company
Company Philosophy: loyalty, responsibility, pragmatism and dedication
- Party Building Leadership
Strengthen Party Leadership and Political Guidance
The Company adheres to General Secretary Xi Jinping’s important thoughts on Party building and self-revolution as fundamental guidelines, continuously strengthening Party leadership and advancing the deep integration of Party leadership with corporate governance and business management, ensuring that Party leadership is embedded into corporate governance through institutionalized and standardized mechanisms, insisting on managing the Party with strict standards and leading the Company’s high-quality and sustainable development with high-quality Party building.
Upholding the “two principles” in all respects, the Company further amended the Articles of Association, complemented the provisions on Party building work, clarified the legal status of Party organizations within its corporate governance structure, enforced the procedure whereby Party Committee meetings served as a pre-review process for major decisions of the Board of Directors and the Management, and continuously promoted the deep integration of Party leadership with corporate governance.
Fully leveraging the leading role of Party committees in “guiding direction, managing the overall situation, and ensuring implementation”, we improved the decision-making system of “Three Majors and One Large”, revised the Party Committee Discussion Rules, further clarified the boundaries of responsibilities between the Party Committee, the Board of Directors, and the Management, and established a governance mechanism with statutory powers and responsibilities, and effective checks and balances,.
The Company implemented the leadership mechanism of “bi-directional promotion and cross-appointment”, under which members of the Party Committee held positions in the Board of Directors and the Management, ensuring that the intentions of the Party organization were reflected in major corporate decision-making.
Deepen Thematic Education and Solidify Ideals and Beliefs
The Company continued to arm itself with the Party’s innovative theory, and promoted learning and education that is both profound in substance and practical in application. The Company made learning and implementing the spirit of the 20th National Congress of the Communist Party and the fourth plenary session of the 20th Central Committee a major task in arming itself with the Party’s innovative theory. Furthermore, the Company formulated and issued the Task Breakdown Table for Studying the and Implementing the “Nine Ones” Cultural Practice Activities, detailing 23 tasks and implementation requirements by taking into consideration the Company’s actual circumstances, integrating learning and discussion activities throughout the entire process of thematic education. Units are encouraged to deepen their study of General Secretary Xi Jinping’s key statements on strengthening Party conduct and the observe the central Party leadership’s eight-point decision and its rules for implementation. Through mechanisms such as the “First Agenda” initiative, Party Committee Theory Learning Center Group, reading sessions, and thematic party classes, over 700 learning activities were organized to significantly enhance the systematic nature and practical effectiveness of theoretical study.
- Strategic Planning
The Company’s “14th Five-Year Plan” development plan closely aligns with national development strategies and ESG requirements, with clear and defined strategic goals, measures, and implementation paths. In terms of guiding ideology, it is proposed to fully implement the new development concept, actively integrate into and serve the new development pattern, deeply implement the three major tasks of mitigating financial risks, serving the real economy, and deepening financial reform, and implement the national “14th Five-Year Plan” and the 2035 long-term goals outline. In terms of development mission, it is proposed to “practice national strategies, serve the real economy and mitigate financial risks”. In terms of business planning, it is proposed to focus on the national “14th Five-Year Plan” and CITIC Group’s “Five-Five-Three” development strategy, concentrating on emerging industries and green industries such as new energy, new infrastructure, advanced materials, advanced manufacturing, healthcare, consumer logistics, and the digital economy, while also increasing support for the strategic restructuring and industrial transformation and upgrading of traditional industries such as coal, steel, building materials, and non-ferrous metals.
- Corporate Governance
The Company strictly adheres to the Company Law of the People’s Republic of China, the Securities Law of the People’s Republic of China, as well as the Listing Rules and other legal regulations, and the Company’s articles of association. Furthermore, the Company continuously optimizes its modern corporate legal governance structure, enhances internal management level, safeguards the rights and interests of all shareholders, and promotes the Company’s healthy and sustainable development. It has established a governance framework in which the Shareholders’ General Meeting, the Board of Directors, and the Management each perform their respective duties with clearly defined responsibilities and efficient collaboration. For detailed information about corporate governance, please refer to “11. Corporate Governance Report”, “13. Report of the Board of Directors”, and “17. Organizational Chart”.
Highlights of Corporate Governance Work in 2025
We enhanced the ESG Governance Framework and included ESG into the scope of responsibilities of the Strategy and Development Committee of the Board to ensure effective implementation of ESG objectives and strengthen the Company’s sustainable development.
We implemented the relevant requirements of the newly revised Company Law , completed the revisions to the Articles of Association, establishing a more scientific, efficient, and compliant corporate governance system. We revised rules for general meeting of Shareholders, Board meetings, and five work rules of special committees of the Board, adjusted and improved the responsibilities and authorities of the general meeting, Board meetings and the special committees, and improved the operational efficiency across all stages of corporate governance. We also added one female employee director to the Board, and standardized duty fulfillment requirements for directors appointed to strengthen directors’ accountability in fulfilling their duties.
- ESG Governance Structure
The Company has established a three-tier ESG governance structure comprising the Board of Directors, the Management, and the executive level. The Board provides guidance on the Company’s overall ESG initiatives and oversees and evaluates relevant work of the Management. The Management coordinates all ESG-related activities across the Company and offers guidance and supervision to the executive level. The functional departments of the headquarters and branches and subsidiaries are responsible for the implementation of ESG work.
Board of Directors
The Board is responsible for reviewing environmental (including climate change), social, and governance related matters. During the reporting period, the Board reviewed proposals including the 2024 Social Responsibility Report (including climate change response), internal control evaluation, and external donation arrangements.
The Strategy and Development Committee of the Board is responsible for formulating policies, goals, and significant matters of the Company on environmental (including climate change), social and governance, reviewing the disclosure matters related to environmental (including climate change), social and governance, and making recommendations to the Board of Directors. As of the end of 2025, the committee has nine Directors, including four independent non-executive directors.
The Risk Management Committee of the Board is responsible for overseeing the implementation and effectiveness of the Company’s risk strategy (including climate-related risks), risk management processes, and internal control procedures, conducting regular assessments of the Company’s risk profile, and risk management capabilities and risk levels, providing recommendations to enhance risk management and internal control.
The Related Party Transactions Committee of the Board is responsible for managing related-party transactions, reviewing and approving related-party transactions, mitigating risks associated with such transactions and safeguarding the interests of all shareholders. As of the end of 2025, the Committee consisted of four Directors, including one non-executive Director and three independent non-executive Directors. The Committee chairman was acted by the independent non-executive Director.
Diversity of Board Members
The Company attaches great importance to the critical value of board diversity in enhancing governance effectiveness and has formulated the Board Diversity Policy , which is implemented by the Nomination and Remuneration Committee of the Board. The composition of the Board comprehensively considers diverse factors such as gender, age, education, and professional experience to ensure complementary capabilities, experience and decision-making perspectives among members. As of the end of 2025, the proportion of independent non-executive directors of the Company exceeded one-third, and the proportion of female directors was one-third, meeting the requirements of diversified governance.
Expertise of Members of the Board
The Company organizes specialized training programs for Directors, focusing on newly revised Articles of Association, Environmental, Social and Governance Reporting Code of the Hong Kong Exchanges and Clearing Limited (HKEX), and developments in regulatory enforcement to strengthen directors’ expertise and governance standards. During the reporting period, we organized directors to participate in a series of training sessions on the construction of a clean and honest Party style and anti-corruption, covering core regulations on anti-corruption and anti-money laundering across jurisdictions. Directors also received targeted training on new anti-corruption regulations of Hong Kong capital market in 2025, including amendments to the Prevention of Bribery Ordinance, HKEX’s corporate governance integrity requirements, and the updated enforcement and compliance guidelines released by financial regulators. Through these systematic learning programs, we continuously enhanced directors’ awareness of integrity, the ability to resist corruption and cross-border compliance standards. We formulated an annual director research plan, according to which directors conduct on-site inspections and thematic seminars at branches. During the reporting period, directors were dispatched to subsidiaries in Xinjiang, Hunan, and Zhejiang provinces for field visits, where they reviewed operational and management reports, gained in-depth insights into core business operations, and risk prevention and mitigation efforts, which enhanced the effectiveness of directors’ performance.
Details of the directors’ performance of duties in terms of climate response are set out in “16.4.1.1 Governance”, other details are set out in “10. Directors, Supervisors and Senior Management”.
Management
The Management, its committees and task forces, actively implemented the Board’s strategies on environmental (including climate change), social and governance. They take the lead in formulating work objectives and key tasks, coordinate the implementation of ESG principles across departments, branch offices and subsidiaries through collaborative efforts, and comprehensively enhance ESG management standards.
The Risk Management and Internal Control Committee is responsible for reviewing and organizing the formulation of key systems, plans, and frameworks related to corporate risk management and internal control compliance, based on the fundamental policies and systems approved by the Board on risk management (including climate-related risks and money laundering risks) and internal control compliance. The committee also guides, supervises, and advances the development of the Company’s risk management and internal control compliance systems.
The Central Procurement Management Committee is responsible for the collective review and decision-making on authorization and approval matters stipulated in the Company’s central procurement policies, including integrating green procurement standards and suppliers’ ESG performance into procurement evaluation systems. This ensures supply chain management meets sustainable development requirements and promotes responsible procurement practices at the source.
The Accountability Committee is responsible for formulating the Company’s accountability policies, reviewing accountability management reports on significant risk events, and deliberating or deciding on disciplinary actions for relevant personnel. The committee effectively strengthens the Company’s internal control and compliance culture, ensures the implementation of anti-corruption and anti-bribery policies, and safeguards a clean and integrity-driven business environment.
The Data Governance and Information Technology Management Committee is responsible for collective review of IT matters and provides professional recommendations.
The Business Requirements Review Panel and the Data Standards Review Panel under the committee are responsible for the evaluation of business requirements and data-related matters within their scope of duties, including advancing the development of information system and enhancing the data governance capabilities of the Company.
The Leading Group for Targeted Support Work is responsible for coordinating and deploying the Company’s assistance initiatives, studying and deliberating annual assistance plans, determining key tasks for the year, and addressing other significant matters related to assistance efforts. This ensures the Company effectively fulfills its community responsibilities.
The Leading Group for Anti-Money Laundering Work is responsible for implementing regulatory requirements on anti-money laundering, organizing and deploying the Company’s anti money laundering initiatives, and developing solutions to significant issues arising in anti-money laundering work.
Executive level
An environmental (including climate change), social and governance responsibility fulfillment and management mechanism was established at the headquarters level, coordinated by multiple functional departments, with a designated contact person system and interdepartmental coordination system implemented across departments, branch offices, and subsidiaries to strengthen information flow and cross-functional collaboration.
- Operational Compliance
Internal Control Management
The Group continuously improves the internal control management system around the goals of effective operation, reliable reporting, and compliance management, strengthening internal control measures. The Board, the Management, headquarters, branches, subsidiaries and other institutions of different levels of the Company, as well as the three lines of defense of internal control, consisting of the Operation Management Department, the Internal Control Management Department and the Internal Audit Department, performed their own functions while complementing and reinforcing one another to jointly support business operations and risk prevention.
During the reporting period, in terms of the development of internal control management system, the Company revised multiple documents including the Rules for the Management Risk Management and Internal Control Committee, Internal Control Process Framework, Internal Control Manual, and Risk Control Matrix based on its self-assessment of the internal control system. The revisions prioritized the optimization of control activities, information and communication mechanisms, and internal monitoring systems, enhancing risk identification and control measures of all work flows, and further refining the executability and operability of each process.
In terms of internal audit supervision, the Company further refined the Guidelines on Audit of Operating Projects based on its established trinity framework of internal audit systems, guidelines, and standards, continuously enhancing the scientific nature and standardization of the internal audit framework. During the reporting period, the Company standardized and enhanced over ten audit work templates, promoted the migration of internal audit work flows to the cloud by strengthening the management of audit quality and rectification reporting, effectively elevated the standardization of internal audit work. During the reporting period, a total of 14 special internal audits were conducted, covering areas such as internal control evaluation, related party transactions, comprehensive risk management, and the design and implementation of remuneration systems. Other details regarding the Company’s internal control are set out in “8.4.9. Internal Audit”.
In terms of compliance management, the Company revised and issued the Compliance Management Measures, stipulating the establishment of a Chief Compliance Officer (CCO) at the Company’s headquarters and Compliance Officers at branches to improve the compliance responsibility framework, duty performance safeguards, and remuneration management systems. The revision enhanced compliance management through more professionalized and institutionalized organizational structures. Additionally, the Company organized overseas integrity and compliance risk assessment and commission management assessment, focusing on critical links to continuously fix loopholes and enhance supervision of key areas in overseas businesses. In alignment with regulatory priorities, the Company carried out specialized inspections on substantial restructuring businesses, effectively leveraging the “toolkit” of relief products to empower restructuring subjects. Furthermore, the Company published three issues of the Compliance Risk Alerts and Compliance Insights, respectively, to reinforce the guiding role of risk early warning and compliance frameworks. The Company also continued to strengthen risk prevention and control of cases by organizing educational programs on case prevention and the 2025 self-assessment of case prevention.
In terms of compliance training, the Company organized five sessions of training covering 11 topics during the reporting period, delivered by the risk director and internal/external experts on key compliance requirements and practical experiences. The Company also organized lectures on compliance delivered by leadership, with business units cumulatively delivering over 40 sessions. The training programs helped participants align understanding, correct work styles, and learn from past experiences, emphasizing both risk control and compliance.
In terms of employee behavior management, the Company emphasized business ethics management, standardized behaviors of employees (including workers dispatched from labor leasing companies), and established policies such as the Employee Conduct Management Measures and Regulations on Employees’ Investment Activities to clarify behavioral standards, promote professional integrity, and prevent benefit transfers. The Company continued to strengthen its management system of risk prevention and control of cases by issuing the Case Prevention Management Measures, which specifies that the Board assumes ultimate responsibility for risk prevention of cases. The measures aim to comprehensively enhance internal controls and behavioral management of all employees, improving the Company’s capacity to mitigate case-related risks. To effectively prevent fraud risks, the Internal Control Manual clearly stating that we shall establish and improve anti-fraud mechanisms and whistleblower protection mechanisms. In conjunction with the management of employee behavior and case risk assessment, we carried out daily monitoring and regular inspections, promptly addressing management loopholes. The Company handled the acceptance, investigation, processing, and reporting of complaints and reports according to procedures. Additionally, we reinforced accountability management to promote employee compliance by formulating systems such as the Accountability Measures for Violations in Operations and Management and Regulations for Inspection of Violations in Operations and Management. Regular audits on business ethics were conducted, incorporating employee ethical risks and abnormal behaviors into annual special and routine audit scopes. During the reporting period, the Company conducted comprehensive assessments of employee conduct and business ethics across business processes, key management areas, and abnormal employee behaviors, analyzed identified issues, and proposed corresponding improvement measures.
Other details regarding the Company’s internal control are provided in “12. Internal Control”.
Comprehensive Risk Management
The Group has established a standardized risk governance framework, clearly defining the risk management responsibilities of the Board of Directors, the Management, the lead department of comprehensive risk management, various types of risk-attributed management departments, and all business units. The Board of Directors serves as the highest decision-making body for risk management within the Company and bears ultimate responsibility for comprehensive risk management. The Management is responsible for implementing the risk strategies and risk appetite established by the Board, and assumes the responsibility for executing comprehensive risk management. The Group continues to refine its “three lines of defense” model, comprising business departments, risk management functional departments, and the Internal Audit Department. It strengthens the lead role of the Risk Management Department in overseeing comprehensive risk management, and has established a risk director system, with headquarters exercising vertical management over risk directors at branches and subsidiaries, reinforcing the principle of local accountability for risk management.
During the reporting period, we “laid a solid foundation” by further enhancing the comprehensive risk management system. Focusing on the “single goal” of asset quality control, we strengthened the “two core capabilities” of risk prevention and growth promotion, deepened the “three levels of penetration” in terms of organization, management and philosophy, and pressed ahead with the “Five Ones” risk management initiative. These efforts provided robust support for the Company to achieve its strategic goal of “significant improvement in quality and efficiency within three years”. We revised institutional documents including the Comprehensive Risk Management Measures and Market Risk Management Measures. By establishing a sound set of risk management rules and mechanisms, we effectively underpinned the sound development of the Company’s businesses. With a total of 415 tasks completed, we systematically built a clear, multi-dimensional and sound comprehensive risk management system. We focused on extending the risk management system to frontline operations. We guided all branches and subsidiaries to formulate implementation plans and conduct acceptance checks, while carrying out on-site research and supervision to effectively fortify the risk prevention and control barrier at frontline operations. We held a special training session for risk directors and head of the Risk Management Department in 2025. We also launched regular targeted training on key topics such as connected transactions, customer concentration and business authorization, and continued the “Competence Plus” training program for young employees. These initiatives aimed to strengthen policy comprehension, consolidate professional expertise and accumulate practical experience, comprehensively enhancing the performance capacity of the risk line through multi-level and systematic training. During the reporting period, the Group’s overall risk control capabilities were further strengthened, with all types of risks maintained within controllable ranges.
Other details regarding the Group’s risk management are listed in “8.4 Risk Management”.
Supply Chain Management
The Group strictly complied with the Law of the People’s Republic of China on Bid Invitation and Bidding, the Interim Regulations on Centralized Procurement Management of State-owned Financial Enterprises, and other relevant laws and regulations, and focused on and identified the management of environmental and social risks at various stages of the supply chain, and improved related implementation and monitoring methods to continuously optimize the centralized procurement management system. During the reporting period, the Company revised internal regulations including the Centralized Procurement Management Measures and the Work Rules for the Centralized Procurement Management Committee , strengthening supplier admission management, blacklist management, post-evaluation management, and integrity management in anti-bribery and anti-corruption. These measures aimed to standardize procurement processes, improve the efficiency of procurement fund utilization, and comprehensively manage and supervise the procurement of bulk goods, services, and construction projects.
In the centralized procurement process, we strictly reviewed supplier admission and conducted compliance verification in anti-bribery and anti-corruption. Prior to procurement, we conducted background checks on suppliers through official channels such as the National Enterprise Credit Information Publicity System and the List of Dishonest Judgment Debtors, to verify whether suppliers have any records of material violations such as commercial bribery, adverse records relating to breaches of social responsibility or production safety over the past three years. The system explicitly require that qualifications related to supplier credit, such as records of misconduct, historical dishonesty, violations, legal penalties, and credit records must be included in procurement documents. Additionally, supplier related-party relationships are subject to due diligence to prevent conflicts of interest and risks associated with related-party transactions. Supplier qualifications and reputation are assessed by verifying business licenses, industry-specific certifications, and financial statements, with an evaluation of their legal compliance and credibility. During the bidding process, suppliers are required to comply with safety management requirements.
In the contract signing process, anti-bribery clauses and compliance commitments are formally reviewed and confirmed. For non-foreign-related contracts, suppliers are required to provide a written commitment to anti-commercial bribery, acknowledging and pledging strict adherence to relevant laws and regulations in China concerning anti-commercial bribery. They are informed that any form of bribery or corruption is illegal and will be subject to severe legal consequences. Suppliers are prohibited from soliciting, accepting, offering, or providing any benefits beyond those stipulated in the contract, including but not limited to kickbacks (both overt and covert), cash, shopping vouchers, physical goods, securities, travel, or other non-monetary benefits. For all foreign-related contracts, the Company has also incorporated relevant clauses, explicitly requiring suppliers to strictly comply with all applicable laws during contract performance, including but not limited to laws, regulations, rules, orders, decisions, international treaties, or other regulatory requirements concerning anti-bribery, anti-corruption, and sanctions issued by China, the country of either contracting party, or any other country or organization that may have jurisdiction over the contract performance. Furthermore, suppliers are required to sign confidentiality agreements, affirming their commitment to safeguarding the Company’s commercial secrets. Suppliers must also demonstrate sound business ethics, including honest operations and fair competition, and are strictly prohibited from engaging in any unfair competition, bribery, or corruption.
In the post-performance evaluation phase, the Company conducts annual supplier performance evaluations. The requesting (or managing) units objectively and impartially assess the overall performance of suppliers currently in cooperation, based on actual fulfillment records. Through post-performance evaluation, the Company proactively identifies and mitigates supplier misconduct, ensuring supply chain stability and continuity, and thereby safeguarding the quality and efficiency of procurement.
Responsible Procurement Measures
Transparent procurement: We firmly established the principle of “open procurement and transparent procurement” and comprehensively promoted “procurement to the fullest extent possible”. The system explicitly stipulated that procurement activities must adhere to the principles of “openness, fairness, justice, good faith, and efficiency”. For procurement matters within the scope of centralized procurement, we conducted procurement through public announcements, published on platforms such as the Company’s official website, to improve transparency and create an open, fair, and just procurement environment.
Green procurement: Under the premise of ensuring controllable risks and availability, centralized procurement prioritized the purchase of energy-saving and environmentally friendly products, providing institutional support for building a green supply chain and fulfilling social responsibilities for environmental protection. Energy-saving indicators were set in the scoring rules for desktop and laptop computer procurement projects, granting weight to suppliers with the China Energy Conservation Product Certificate.
Fair Procurement: During the bidding process, it is explicitly stated that unreasonable conditions shall not be used to implement differential or discriminatory treatment of suppliers in the qualification criteria. In accordance with the work requirements of the General Office of the State Council and CITIC Group, we continuously carried out special investigations to resolve overdue payments to small and medium-sized enterprises, requiring our headquarters, branches and subsidiaries to verify overdue situations one by one, ensuring that undisputed debts were settled in full and that disputed debts were resolved as quickly as possible through negotiation or legal means.
During the reporting period, the number of suppliers with a single procurement amount exceeding RMB500,000 is 538, including 201 in North China, 14 in Northeast China, 105 in East China, 65 in Central China, 66 in South China, 22 in Southwest China, 24 in Northwest China, and 41 overseas.
Anti-Corruption and Integrity Construction
Our Group attaches great importance to anti-corruption and integrity work. Through improving the institutional system, strengthening publicity and education, and enhancing supervision and discipline, we promote the comprehensive and strict governance of the Party within the Company, creating a clean and upright political ecology and a good business development environment, which support the Company’s high-quality development. The Company’s Board of Directors is responsible for reviewing and approving the anti-corruption policies and code of conduct for ethical business practices, and for supervising the Management in establishing, implementing, and maintaining the Company’s anti-corruption system to ensure effective execution of relevant policies and procedures. The Discipline Inspection Office of the Company (the “Party Inspection Office”) is responsible for the construction of the Party’s work style and integrity, as well as organizing and coordinating anti-corruption efforts. It supervises and inspects the integrity of key areas, important positions, and cadres and employees to ensure the Company’s clean operation.
We improve the institutional system. The Company has thoroughly implemented the requirements of strict Party governance, steadfastly advanced the development of corporate work ethics, and reinforced the supervisory framework for officials to ensure strict discipline and self-regulation, as well as compliance with rules and regulations, among the Company’s cadres and employees. We have formulated anti-corruption systems including the Rules for the Leading Group on Inspection Work of the Party Committee, Measures for Building a Culture of Integrity in Finance, and Measures for the Supervision and Administration of the Clean Work Practices of Employees, which apply to the headquarters and all subsidiaries. These systems regulate and constrain the conduct of all employees (including personnel dispatched by labor service agencies) in performing their duties, fulfilling job responsibilities, and conducting contractual business, effectively preventing moral risks, enhancing the integrity awareness of all officials and employees, curbing corrupt practices in business operations, and fostering a sound political ecosystem of integrity and a favorable environment for business development. During the reporting period, the Company issued the Implementation Measures of the Party Committee on Strengthening the Construction of a Comprehensive Oversight System, systematically promoting governance oversight, functional oversight, and public oversight, and deepening full and rigorous Party self-governance.
We intensify training efforts. We have continued to deepen publicity and education on Party discipline and laws, and launched integrity training covering the entire business chain and all employees, covering business compliance and anti-corruption ethical standards, to consolidate the ideological foundation for resisting corruption. During the reporting period, the Company issued the Implementation Plan for In-depth Warning Education, held a company-wide warning education conference, earnestly studied General Secretary Xi Jinping’s important instructions and directives, reported on violations of the spirit of the central Party leadership’s eight-point decision on conduct and typical cases of violations of laws and disciplines in the financial industry in recent years, and the deputy secretary of the party committee delivered a special lecture on integrity. A total of 4,000 employees across the Group attended and received education. We have strengthened education and training for discipline inspection cadres. Through organizing the study of the Supervision Law and its implementation regulations, conducting annual professional knowledge tests for discipline inspection cadres, recommending 14 cadres to participate in training programs organized by the Central Commission for Discipline Inspection and the Group, and seconding 77 personnel to participate
in practical work such as case handling, inspection, and accountability, the Company has built a strong team of discipline inspection and supervision cadres who are loyal, clean, and responsible, providing solid talent support for advancing the Party’s work of improving Party conduct, upholding integrity, and fighting corruption.
We deepen the construction of a clean and honest culture. We formulated the Measures for Building a Culture of Integrity in Finance, with the “Eight Integrity Initiatives” as the core, and comprehensively promoted integrity culture publicity and education through an “online + offline” integrated approach. All subsidiaries have actively developed distinctive integrity culture brands. Excellent practices have been promoted through the “Discipline and Integrity” column, and high-quality video content has been reposted and disseminated on the Group’s “Qingfeng Messenger” platform, continuously enhancing the influence and leading role of integrity culture.
We strengthen supervision and discipline. We earnestly implemented the Party Committee’s Inspection Work Plan for 2023-2027, and continuously improved the working mechanism of “pre-inspection training, in-inspection supervision, and post-inspection summary”. Over the year, we conducted two rounds of inspections covering 11 subsidiaries. Under the guidance of CITIC Group, we inspected the international subsidiary and actively explored approaches to strengthening political oversight over overseas institutions. We strengthened whole-process supervision over inspection rectification to ensure the effective implementation of all rectification measures and continuously improve the quality and effectiveness of inspection work.
We protect the whistleblower’s rights and interests. We formulated the Detailed Rules for the Implementation of Petition Work to accept oversight from the general public and internal employees. We timely handle letters, visits, calls and online reports, and dispose of all reporting matters in accordance with regulations, disciplines, prescribed responsibilities, authorities and procedures. We have optimized the workflow for receiving and responding to petition and report matters to maintain a fair and transparent internal environment. We disclosed on the Company’s official website the scope of accepted reports for disciplinary inspection and complaint, along with contact details including mailing address, reporting hotline, and email address. We respect legitimate reporting requests from whistleblowers and protect their legitimate rights and interests by explicitly requiring petition staff to legally safeguard commercial secrets and personal privacy in the course of petition work. It is prohibited to disclose or transfer whistleblowers’ accusation materials or relevant information to the persons or units accused, and any form of retaliation is forbidden, ensuring that whistleblowers effectively uphold the Company’s ethical standards. The petition policy applies to the Company’s employees, shareholders, investors, customers, suppliers, and other citizens, legal persons or organizations.
During the reporting period, the Company recorded no major bribery or corruption cases, nor any confirmed violations of laws and regulations that would have a material impact on the Group.
Anti-Money Laundering and Counter-Terrorist Financing
The Group strictly adheres to anti-money laundering and counter-terrorist financing laws and regulations, earnestly implements regulatory requirements, establishes and improves the organizational structure for anti-money laundering management, formulates the Management Standards for Self-assessment of Money Laundering and Terrorist Financing Risks, among other systems. A leading group for anti-money laundering work has been established to continuously strengthen the foundation of money laundering risk management and improve the quality and effectiveness of anti-money laundering management.
During the reporting period, we revised the Internal Control Measures for Anti-Money Laundering and Counter-Terrorist Financing and the Detailed Rules for Money Laundering Risk Assessment and Customer Classification. We organized and carried out 1 special internal audit on anti-money laundering (AML) and counter-terrorist financing in 2025, and conducted relevant self-inspections and rectification covering 33 branches and 8 subsidiaries, further enhancing the Company’s anti-money laundering management capacity. We conducted self-assessments on money laundering risks, including risks related to money laundering, terrorist financing, and circumvention of targeted financial sanctions for non-proliferation prevention. The scope covered all business regions, clients, products, services and channels of the Company’s headquarters and branches, and extended to the entire AML risk management process including decision-making, implementation and oversight. We continued to optimize the anti-money laundering system. In response to issues identified in special AML audits and daily operations, we completed data integration with newly launched business systems, advanced system access in accordance with regulatory requirements, optimized the blacklist retrospective screening function, and improved the manual identification process for suspicious transaction monitoring. In total, we organized 6 AML-related training sessions throughout the year, including 2 sessions on international sanctions risk. Participants included directors, management leaders, and staff from business, compliance, audit, technology and other departments, covering approximately 2,000 participants in total, which effectively improved the ability of all employees to perform their anti-money laundering duties.
During the reporting period, no units at any level of the Company were subject to anti-money laundering regulatory penalties, and no major money laundering risk events occurred.
Social Responsibility Management
Social Responsibility Concept
Upholding the mandate and mission of a financial asset management company, the Company centers its efforts on serving the real economy, preventing and controlling financial risks, and deepening reform and development. It actively implements national strategies, engages in rural revitalization, environmental protection and public welfare initiatives, continuously enhances its supporting role and contribution to economic and social development, and strives to create integrated value for national progress, customer interests, shareholder returns, investor rights and interests, employee well-being and social harmony. The Company actively embraces the UN Principles for Responsible Investment (UN PRI), further improves its ESG governance structure, integrates ESG factors into investment and asset management decisions, and upholds the philosophy of responsible investment through concrete actions, sustainably supporting the Company’s sustainable development and value enhancement.
For the country: We focus on our main responsibilities and services, serve the real economy, mitigate financial risks, and maintain the stability of the national economy and financial security.
For clients: We provide high-quality financial services to help clients achieve value enhancement and corporate transformation.
For shareholders and investors: We operate in a stable and compliant manner, continuously enhance corporate value, and achieve good returns for shareholders, investors, and the market.
For employees: We build a professional platform, care for employee growth, enhance employee cohesion and sense of gain, and achieve the joint development of personal and corporate values.
For society: We care for social development, enhance social welfare, actively respond to the national strategy of rural revitalization, and engage in targeted assistance, charitable donations, and other social welfare activities.
Stakeholder Engagement
The Company remains committed to maintaining close ties with all stakeholders, conducting all-round communication through diversified channels, and establishing a regular stakeholder communication mechanism. It systematically incorporates reasonable stakeholder expectations into daily operations and decision-making, formulates and implements effective measures, and proactively responds to stakeholders’ legitimate aspirations. As a comprehensive presentation of the Company’s ESG practices, this report aims to communicate the Company’s ESG philosophy to stakeholders, systematically demonstrate the outcomes of its ESG initiatives, and further deepen exchanges and interactions with stakeholders.
Overview of Stakeholders’ Main Concerns and Communication Channels Chart
Type of
Stakeholder Main Concerns
Main Communication
Methods Main Response Measures
Regulatory institutions
Sound corporate operations
Comprehensive internal control system and risk management and control system
Actively fulfilling the social responsibility of financial enterprises
Regular reporting
Participation in industry conferences
Official website
Official WeChat account
Establish a comprehensive internal control system
to enhance corporate governance and mitigate financial risks
Improve operational efficiency of the enterprise
Local governments
Promoting the development of local and surrounding industries
Compliant operations
Paying taxes in accordance with the law
Government meetings
Irregular visits
Supervision of government staff
Official website
Official WeChat account
Increase employment opportunities and contribute to tax revenue
Cooperate with government supervision and improve internal compliance monitoring system
Abide by laws and regulations
Type of
Stakeholder Main Concerns
Main Communication
Methods Main Response Measures
Shareholders and investors
Sustainable and stable investment returns
Timely information disclosure
Compliant corporate operations
Shareholders’ General Meeting
Regular reports and corporate announcements
Information release channels such as investor meetings, earnings releases, and roadshows
Company investor relations phone and email
Official website
Official WeChat account
Enhance business diversification and consolidate industry leadership
Receive investor visits, calls, and letters to strengthen effective communication and information disclosure
Improve the internal compliance system
Customers • High-quality products and services
Timely response to customer requests
Providing comprehensive solutions
Customer follow-up
Regular visits
Official website
Official WeChat account
Establish a comprehensive service response system
Improve the customer complaint handling process
Develop service standardization guidelines
Community • Supporting community development
Respecting community culture and participating in community activities
Community representative survey
Daily visits
Official website
Official WeChat account
Support the development of various community undertakings
Carry out community public service activities
Maintain good communication
Type of
Stakeholder Main Concerns
Main Communication
Methods Main Response Measures
Employees • Broad career development opportunities
Great compensation and benefits
Comprehensive health and safety protection
Internal website
Company newsletter
Employee Representative Assembly
Official website
Official WeChat account
Improve internal management systems and frameworks for employee recruitment, promotion, etc.
Enrich employee life
Provide diversified work and life support for employees
Suppliers • Fair, just, and transparent procurement process
Timely fulfillment of contractual agreements
Promoting corporate growth and achieving a win-win outcome
Irregular quality communication meetings
Official website
Official WeChat account
Ensure the transparency of the procurement process and accept internal and external supervision
Properly manage corporate cash and ensure timely payments
Promote communication and interaction with suppliers
Determination of Material Issues
The Company has conducted extensive preliminary research and analysis based on the requirements of the ESG Code of the HKEX, leading rating agencies’ ESG rating indicators, and regulatory policies, and has established a list of annual ESG issues. By conducting industry benchmarking studies and stakeholder surveys, we have widely collected opinions from internal and external stakeholders, and assessed the impact of each issue on external stakeholders and CITIC FAMC, identified 21 material issues closely related to the Company, which serve as important references for the formulation of the Company’s ESG strategy, goal setting, and ongoing information disclosure. The issue assessment is carried out by an independent third-party consultant engaged by the company.
During the reporting period, the process for determining the material issues for the Company’s ESG is as follows:
Identifying Relevant Issues: Through extensive benchmarking of HKEX ESG Code, ESG rating indicators, macro policies, and hot topic analysis, 21 social responsibility issues were evaluated and collected.
Surveying Attention Level: By distributing questionnaires to external and internal stakeholders, a total of 511 valid responses were collected.
Analyzing Impact: Through the questionnaires and combining key aspects of the Company’s management operations, the impact of each issue on stakeholders was comprehensively assessed, and material issues were identified.
Prioritizing Material Issues: Based on the identification and analysis, the issues were ranked by importance, and a materiality matrix was developed, which served as a key reference for the preparation of the report.
During the reporting period, the results for determining the material issues for the Company’s ESG are as follows:
High
2025 ESG Material Issues Matrix
Risk
Anti-Corruption and Integrit
Addressing Climate C
Employee Care Policies Product and Service Quality
Mitigating Financial
Employee Training Risks and Development
Responsible Supply Chain
Privacy and Information Security
Stakeholder Communication
Green and Low-carbon Operations Energy utilization
Industry Collaboration
Technological Innovation and Digitalization Rural Revitalization
Social Welfare
Green Finance
Real Economy
hange
Responding to National Strategies Compliant Operations
Employee Rights Protection
Serving the
Management
y Building
Materiality to stakeholdersMiddle
Middle
Materiality to CITIC FAMCHigh
- Corporate Culture
- Economic Responsibility
The Company focuses on the main responsibilities of financial asset management companies, fully leverages the unique advantages of rescue financial services, and supports national strategies. We concentrate on ensuring people’s livelihoods, promoting the real economy, and mitigating financial risks, thereby contributing to the construction of a strong financial nation with CITIC FAMC’s strength.
- Serving National Strategies
The Company keeps in mind the responsibilities and missions assigned to financial asset management companies by the state. We delve deeply into the field of non-performing assets, vigorously support state-owned enterprises in deepening reforms, promote the development of free trade zones, actively contributing to regional economic and social progress, and vigorously responding to national strategies.
Case: Supporting the Reform and Development of Central and State-Owned EnterprisesThe Company focuses on the demand for revitalizing existing assets such as “two non-
core/non-advantaged businesses” and “two inefficient/ineffective assets” of central and state-owned enterprises, supporting the deepening and upgrading of state-owned enterprise reforms. Following the national development policies, the Beijing Branch has intensified its services for sectors related to national wellbeing and people’s livelihood. It has actively cooperated with state-owned enterprises in new materials, infrastructure, rail transit, energy supply and other industries, providing full-cycle service solutions covering asset sorting, plan consultation and asset revitalization and disposal. By optimizing transaction structures, it helps enterprises reduce costs, strengthen core functions and enhance core competitiveness, and has gradually developed a distinctive model for asset management companies to serve the reform of central and state-owned enterprises. The Henan Branch has signed the Strategic Cooperation Framework Agreement on State-owned Enterprise Reform and Development Fund of Henan Province with 5 state-owned enterprises. The fund, totaling RMB20 billion, comprises sub-funds focused on industrial restructuring and market-oriented debt-to-equity swaps. Guided by market principles, the fund promotes the industrial restructuring and development of state-owned enterprises in Henan Province.
The Shandong Branch has actively supported the high-quality development of the real economy and proactively provided assistance for the reform, transformation, and development of state-owned enterprises. Through innovative business structure design, the Shandong Branch has developed a tailored package of comprehensive financial service solutions for a key provincial state-owned enterprise—specifically, a water conservancy engineering group, helping the group achieve phased goals such as optimized asset-liability structure, effectively improved operational efficiency and significantly enhanced profitability. Since the implementation of the project, the group’s asset-liability ratio has dropped from 70% to 40%, its operation has turned from loss to profit, and the business volume has increased by nearly 10% year on year. This has further strengthened the group’s capacity to support the construction and development of the provincial water network and meet basic livelihood needs, injecting strong impetus into its high-quality development.