CaitongSecuritiesCo.,Ltd.O?cialWebsite：https://www.ctsec.comAddress:WestBuilding,CaitongShuangguanTower,198TianmushanRoad,XihuDistrict,Hangzhou,ZhejiangProvince

CaitongSecuritiesCo.,Ltd.

2024

2024

CaitongSecuritiesCo.,Ltd.

StockCode：601108

SustainabilityReport

Thisreportisprintedonenvironmentallyfriendlyrecycledpaper.

CaitongSecuritiesWeChatSubscriptionAccount

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UpholdingIntegrityandHarmonyinPursuitofDreams

SustainabilityReport

CONTENTS

LeanCorporateGovernanceLawfulandCompliantOperationsStrengtheningRiskManagement

S

SocialRidingtheTideofProgresstoNourishAllIndustriesPracticingResponsibleInvestmentServingtheRealEconomyEnhancingServiceQualityEmpoweringEmployeeGrowthEnthusiasmforSocialWelfare

AddressingClimateChangeDevelopingGreenFinancePracticingGreenOperations

AppendixKeyPerformanceIndicators(KPIs)IndicatorIndexFeedback

AbouttheReportBoardSustainabilityStatementAboutUsSustainableDevelopmentManagement

StrivingforExcellencetoBuildaFirst-ClassCompany

GovernanceGEHarmoniousCoexistence,BuildingDreamsTogether,RevitalizingLife

Environmental

0201

AbouttheReportThisreportisthe8thSustainabilityReport(ESGReport/SocialResponsibilityReport)byCaitongSecuritiesCo.,Ltd.Thereportisbasedontheprinciplesofobjectivityandrealism,disclosingtheCompany'ssustainabledevelopmentconceptsandpracticaloutcomes.TheCompanyguaranteesthattherearenofalserecords,misleadingstatements,orsigni?cantomissionsinthisreport,andtakesresponsibilityforitscontent’sauthenticity,accuracy,andcompleteness.

PeriodJanuary1,2024,toDecember31,2024.Toensurethecompletenessofthereport,somecontentmaybetracedbackorextendedforwardintime.

NoteonDataThedataandcasesinthisreportarederivedfromtheoriginalrecordsor?nancialreportsofCaitongSecurities,itssubsidiariesandsigni?cantlyassociatedcompanies.Unlessotherwisespeci?ed,the?nancialdatainthereportispresentedinCNY.Incasesofanydiscrepancieswiththe?nancialreports,the?nancialreportsshallprevail.Unlessotherwisespeci?ed,thestatisticalcaliberoftherelevanttextanddatainthereportisconsistentwiththescopeoftheCompany's?nancialstatements.

Glossary

Fortheconvenienceofexpression,CaitongSecuritiesCo.,Ltd.isreferredtoas"CaitongSecurities,""Caitong,""theCompany,""We"or“Us”inthisreport.Thefullnamesandabbreviationsofthesubsidiariesandsigni?cantinvestedcompaniesmentionedinthisreportareshowninthetablebelow.

ReportingScopeUnlessotherwisestated,thescopeofthisreportisthesameasthescopeoftheCompany’sannualconsolidated?nancialstatements.

ReferenceStandards

·ShanghaiStockExchangeSelf-DisciplineRegulatoryGuidelinesNo.

-SustainabilityReporting(Trial)·ShanghaiStockExchangeSelf-DisciplineRegulatoryGuidelinesNo.

-PreparationofSustainabilityReports

·UnitedNations2030SustainableDevelopmentGoals(SDGs)·InternationalOrganizationforStandardizationISO

GuidanceonSocialResponsibility(2010)·NationalStandardizationAdministrationGuidelinesforSocialResponsibilityReports(GB/T36001-2015)·ChineseAcademyofSocialSciencesGuidelinesforthePreparationofSustainableDevelopmentReportsforChineseEnterprises(CASS-ESG6.0)

·GlobalSustainabilityStandardsBoard(GSSB)-SustainabilityReportingStandards(GRIStandards)

Thepreparationofthereportisbasedonthefollowingprinciples:

Balance:

Materiality:

Ourprocessforconductingthematerialityassessmentincludes:

（1）identifyingrelevantESGissues（;2）evaluatingtheimportanceoftheseissues;and（3）havingtheBoardreviewandcon?rmtheassessmentprocessandresults.WereportonESGmattersbasedontheresultsofthematerialityassessment.Formoredetailsonthematerialityassessment,pleaserefertothe"MaterialityAnalysis"sectionofthereport.Accuracy:

Thisreportstrivestoensuretheaccuracyofinformation.Thequantitativeinformationisaccompaniedbyexplanationofdatascope,calculationbasis,andassumptionstoensurethatcalculationerrorsdonotmisleadusersoftheinformation.Detailedquantitativeinformationandnotescanbefoundinthe"KeyPerformanceIndicator"sectionofthisreport.TheBoardguaranteesthecontentofthereportandcon?rmsthattherearenofalsestatements,misleadingrepresentations,orsigni?cantomissions.

Consistency:

Thecontentofthisreportre?ectsobjectivefacts,providingunbiaseddisclosureofbothpositiveandnegativeinformationrelatedtotheCompany.Thepreparationmethodofthisyear'ssustainabilityreportremainsconsistentwithprioryears.Anychangesthatmaya?ectmeaningfulcomparisonswithpastreportshavebeenexplainedintheappropriatesections.

ReportingPrinciples

AccesstothisReport

ThisreportispublishedinbothSimpli?edChineseandEnglishversions.Incaseofanydiscrepancy,theSimpli?edChineseversionshallprevail.TheelectronicversionofthisreportisavailablefordownloadontheShanghaiStockExchangewebsite(www.sse.com.cn).

FullCompanyNameAbbreviationCaitongSecuritiesAssetManagementCo.,Ltd.ZhejiangCaitongCapitalInvestmentCo.,Ltd.CaitongInnovationInvestmentCo.,Ltd.Caitong(HongKong)Co.,LimitedYong'anFuturesCo.,Ltd.CaitongFundManagementCo.,Ltd.

CaitongAssetManagementCaitongCapitalCaitongInnovationCaitongHKYong'anFuturesCaitongFund

AbouttheReport2024SustainabilityReport

0403

BoardSustainabilityStatement2024marksthe75thanniversaryofthefoundingofthePeople’sRepublicofChinaandtheyearofstrivingforhigh-qualitydevelopmentatCaitongSecurities,whichembodiesthemissionof"servingthecountrythrough?nance."Inacomplexandever-changingmarketenvironment,wearecommittedtotakingontheresponsibilitiesofastate-ownedenterpriseinZhejiangProvince.Westeadfastlyfocusonthefundamentalpurposeof?nancialservicesfortherealeconomy,practiceaninvestor-centricphilosophy,andintensivelydevelopthe"FiveKeyAreas"of?nance.Weaimtobuilda"Four-DimensionalCaitong"and?rmlyestablishourselvesas"aSecuritiesCompanyofZhejiangEntrepreneursandEnterprises,"strivingtocreatea?rst-classmoderninvestmentbank.FromoptimizingtheESGgovernancestructuretoinnovating?nancialmodelsforcommonprosperity,fromconstructingagreen?nancialecosystemtonurturingatalent-drivenenterpriseengine,wedemonstrateourcommitmenttoservingtherealeconomy,breakingthroughinnovationsduringreformchallenges,andempoweringsustainabilitybypracticingESGprinciples,turningourgrandgoalsintobeautifulrealitiesthrougheverysmallaction.

Wewillalwaysupholdthecorporatespiritof"Upholdingintegrityandharmonyinpursuitofdreams,"focusingonthe?vekeyareasoftechnology?nance,green?nance,inclusive?nance,pension?nance,anddigital?nance.Guidedbyhigh-qualitydevelopment,wewilladoptamoredeterminedpoliticalstance,amoreopenattitudetowardsinnovation,andamoresolidsenseofresponsibilitytoful?llourcorporatesocialresponsibilities.Wewillmakeeverye?orttoadvancesustainabledevelopmentpractices,contributingevenmoretothesafe,sustainable,andhigh-qualitydevelopmentoftheCompanyandaidinginsocialprogress.

Wedeeplyimplementthe"FiveDo’sandFiveDon’ts"ofChinese?nancialcultureandtheindustrycultureof"compliance,integrity,professionalism,andPrudence."WeviewESGgovernanceasanimportantmeanstodrivetheCompany'shigh-qualityandsustainabledevelopment,enhancingthetop-leveldesignofESGgovernance,deepeningthefunctionsoftheStrategyandESGCommittee,andcultivatinganESGcorporateculturetosteadilyimprovethesystematicande?ectivenatureofESGgovernance.Weadheretocompliantandstableoperations,reinforcingourcomplianceriskcontrolsystemthroughdigitalandintelligentmeasures,andbyconstructingacomprehensive,three-dimensionalsupervisionsystemthatextendshorizontallyandvertically,wepromotetheorganicintegrationofESGriskcontrolwithbusinessdevelopment,safeguardingtheCompany'ssustainablegrowth.

Wealwaysadheretotheprincipleof"customer-centricity,"continuouslyenhancingthequalityofourservicesandactivelyful?llingoursocialresponsibilitiestocontributetoharmonioussocialdevelopment.Inourinvestorservicepractices,weconsistentlyoptimizeserviceprocessesandcarryoutdiverseinvestmenteducationactivities,helpingtensofthousandsofinvestorsimprovetheir?nancialliteracy.Ontheroadtoruralrevitalization,weengagewithneedsinmountainousandislandareasthroughvariousmeanssuchasindustryassistanceandconsumptionsupport,facilitatingcoordinateddevelopmentbetweenurbanandruralareas.IntheprocessoftheCompany'shigh-qualitydevelopment,weregardtalentasourprimaryresourceandthemostcriticalfactor.Wefocusonimplementingthecadretalenttiersconstructionproject,strengtheningcareerdevelopmentsupport,andensuringrightsprotectionandcareforemployees,achievinga96.8%employeesatisfactionrate.

Werespondtothenational"DualCarbon"strategicgoals,alwaysconsideringgreenasthecornerstoneofhigh-qualitydevelopment,andleveragingthepowerof?nancetosafeguardclearwatersandlushmountains.Wethoroughlyimplementtheconceptofgreendevelopment,empoweringthegrowthofgreenindustriesthrough?nancialinnovation.In2024,wehavecumulativelyissuedgreenABSproductswithatotalscaleexceedingCNY6.2billion,coveringvariousareassuchasmunicipalinfrastructure,realestate,andnewenergyvehicles,e?ectivelyrevitalizingenvironmentallyfriendlyassets.Wepromotegreenoperations,proactivelyengaginginrainwatercollectionandreuse,aswellastheuseofrenewableenergy,deeplyintegratingtheconceptofenvironmentalprotectionintoeveryaspectoftheCompany'soperationaldevelopment.Weadvocateforpaperlesso?cepracticesandoptimizeenergye?ciency,makingitacollectiveconsciousnessforallemployeestosaveeverykilowattofelectricityandeverysheetofpaper.

Withdeterminationanddiligence,westrengthenthefoundationfordevelopmentthroughstandardizedgovernance.

Ridingthetideofprogress,weworktogethertobuildabettersocietythroughcoordinateddevelopment.

Inharmonyandcoexistence,wesafeguardthebeautyofecologythroughgreen?nance.

Withwindsofopportunity,wesetsailtowardnewhorizons.

BoardSustainabilityStatement2024SustainabilityReport

0605

CaitongSecuritiesCo.,Ltd.isacomprehensivesecuritiesgroupwithitscharacteristicheadquarteredinHangzhou.ItwasfoundedasZhejiangFinanceSecuritiesCompanyin1993,andwaslistedontheShanghaiStockExchangeinOctober2017understockcode601108.Over30yearsofentrepreneurialgrowth,CaitongSecuritieshasconsistentlyadheredtotheprinciplesofcompliance,prudence,integrity,andinnovation.Bycapitalizingonregulatoryreformsandindustryinnovationopportunities,theCompanyhasevolvedfromaregionalbrokerage?rmintoafull-licensed,specialized,group-oriented,andinternationallyexpandinglistedsecuritiescompany.TheCompanyhasbuiltacomprehensiveservicesystemacrossafullchainofbusinesses,includingsecurities,futures,mutualfunds,assetmanagement,equityinvestment,andoverseas?nance.Itsmarketcompetitivenessandcomprehensivestrengthhaverapidlyimproved,earningitFirstPrizeforSupportingtheEconomicandSocialDevelopmentofZhejiangfor7consecutiveyearsfrom?nancialinstitutionsintheprovince.

Company Profile

AboutUs

Operating Revenue

6.286

Weighted AverageReturn on Net Assets

%

6.59

Total Assets

billion

144.555

Net Pro?t

2.340

CNYbillionCNY

billionCNY

AboutUs

2024SustainabilityReport

Branches

Subsidiariesandsigni?cantinvestedcompanies￥

0807

Asoftheendofthereportingperiod,theGrouphasapproximately6,000employeesand212branches,achievinganationwidebusinesslayoutwith100%coverageinZhejiangProvince.ItsoverseasservicesextendtoHongKong,Singapore,andcountriesalongthe"BeltandRoad"initiative.TheGroupincludes6subsidiaries,namelyCaitongSecuritiesAssetManagementCo.,Ltd.,ZhejiangCaitongCapitalInvestmentCo.,Ltd.,CaitongInnovationInvestmentCo.,Ltd.,Caitong(HongKong)Co.,Ltd.,Yong'anFuturesCo.,Ltd.,andCaitongFundManagementCo.,Ltd.Eachofthesesubsidiarieshasdevelopeditsowndistinctivefeaturesandcompetitiveadvantagesinitsrespective?eld.

BusinessSegments

CharacteristicbenchmarkintheChineseassetmanagement

industry

聚焦科创企业打造?流券商私募?

AboutUs

Focusingonemergingsectorsandbuildingadistinctiveprofessionalequityinvestment

institution

Focusingonscienceandinnovation

enterprisestocreatea?rst-class

brokerageprivateplacementsub

Activelybuildinga“bridge”foroverseaslistinginvestmentand?nancing

Comprehensivestrengthrankedattheforefrontamongnationwide

futurescompanies

Industryleaderintermsofactivemanagementservices

DalianBeijingTianjinWeifangQingdaoLianyungangJinanYanchengChangshuShanghaiQuanzhouXiamenShenzhenFoshan

ShanxiXuzhouNanjingWuxiSuzhouHefeiNanchangFuzhou

XianChongqingChengduKunming

Hangzhou

JiashanPinghuHaiyanCixiNingboZhenhaiZhoushan

JiaxingHuzhouTongxiangHainingXiaoshan

YuyaoShaoxing

ShangyuXinchangNinghaiTiantai

LuqiaoLinhaiTaizhouWenlingYuhuan

ChangxingAnjiDeqingHangzhouLinanFuyangZhujiDongyangShengzhou

JinyunXianjuYueqingWenzhouRuian

TongluPujiang

YiwuJinhuaYongkangSuichangLishuiSongyang

QingtianJingning

ChunanJiandeLanxiWuyiLongyouKaihuaQuzhouJiangshan

2024SustainabilityReport

CorporateCulture

CorporatevisionStrivingtobuilda?rst-classmoderninvestmentbank

CorevaluesAwe,gratitude,innovation,responsibility

CorporatespiritUpholdingintegrityandharmonyinpursuitofdreams

Missionandgoal

ProvidingservicesthroughoutChinawithastrongpresenceinZhejiang;Bea“comprehensive?nancialserviceproviderwhounderstandsyoubetter”BusinessobjectivesSoundoperation,Collaborationandinnovation,Befactualandrealistic,BepracticaltomakeachievementsCulturalconsensusCaitongconsensus

OrganizationalStructure

Board?of?SupervisorsShareholders’?Assembly

Board?of?Directors

Operation?Management

Strategy?and?ESG?CommitteeRemuneration?and?Nomination?CommitteeRisk?Control?CommitteeAudit?Committee

Board?of?Directors?O?ce

GeneralO?ce(PartyCommitteeO?ce,GeneralManager'sO?ce)

Board?of?Supervisors?O?ce

AboutUs

PartyCommitteeOrganizationDepartment(HumanResourcesDepartment)Party-MassWorkDepartment(TradeUnionO?ce)DisciplinaryInspectionO?ceStrategicDevelopmentDepartmentStrategicAccountsDepartmentBusinessManagementDepartmentPlanningandFinanceDepartmentRiskManagementDepartmentComplianceDepartmentAuditandInspectionDepartmentFinancialTechnologyGeneralManagementDepartmentFinancialTechnologyR&DDepartmentSystemOperationsandMaintenanceDepartmentClearingDepositoryCenterComprehensiveManagementDepartmentWealthCustomerGroupDepartmentWealthBusinessHeadquarters(AssetAllocationCenter)InstitutionalBusinessHeadquarters(PrivateWealthDepartment)AssetCustodyDepartmentOperationsCenterResearchInstituteProprietaryInvestmentHeadquartersCustomerDemandFinanceDepartmentInvestmentBankGeneralManagementDepartmentStrategicInvestmentBankHeadquartersInvestmentBankHeadquartersInvestmentBankHeadquartersIIBondFinancingHeadquartersBondFinancingHeadquartersIIBondFinancingHeadquartersIIIBondFinancingHeadquartersIVCorporateFinanceHeadquarters(InclusiveFinanceHeadquarters)CapitalMarketDepartmentBranchesandbusinesso?cesCreditBusinessDepartmentQualityControlDepartment

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HonorsofCaitong

Issuing/OrganizingAuthority

State-ownedAssetsSupervisionandAdministrationCommissionoftheStateCouncil,SocialResponsibilityBureauAwardsName

State-OwnedListedCompaniesESGPioneer100Index

3rd"ZhejiangFinancialAwards"GoldenWildGooseAward—AnnualPioneerInstitution

ProfessionalCommitteeAwardsName

AboutUs

FirstPrizeforOutstandingFinancialInstitutionsSupportingZhejiang'sEconomic

andSocialDevelopmentin2023ZhejiangProvincialCivilizedUnitBestInnovativeCaseinTalentWorkinZhejiangProvince

2024ExcellenceAwardforSupportingVentureCapital2024HangzhouListedCompaniesESGStrategicPhilanthropyIn?uenceTop20

2024OutstandingSustainableDevelopmentPracticeCaseforListedCompanies

CSTDNationalFinalsLighthouseAwardforCorporateLearningDesignCompetition

2024GlobalZhejiangEntrepreneursESGClassic1002023VCAMostDynamicGovernment-GuidedFund

OutstandingCase:"DeepImplementationofthe'Eight-EightStrategy'—First-ClassFinancialManagementSystemBoostsChineseModernization"

2023ShanghaiStockExchangeSTARMarketSpecialAwardforMarketMakers

(PioneerSTARMarketMaker)2023"OutstandingCaseAwardforIntegratingInvestorEducationinto

NationalEducation"

OutstandingPracticeCaseinCorporateCultureDevelopmentforListedCompanies

ZhejiangProvincialFinancialO?ceThePeople'sGovernmentofZhejiangProvinceZhejiangInstituteofTalentDevelopment

DepartmentofScienceandTechnologyof

ZhejiangProvinceHangzhouCivilA?airsBureauShanghaiStockExchangeShenzhenStockExchangeChinaAssociationforPublicCompaniesChinaAssociationforPublicCompaniesCSTDChinaSocietyforTalentDevelopment

State-ownedAssetsSupervisionandAdministrationCommissionofthePeople’sGovernmentofZhejiangProvince

ZhejiangMerchantInstitute(ZhejiangEntrepreneursThinkTank)

ChinaVentureCapitalandInvestmentAssociation-EquityInvestmentandVentureCapital

"XinhuaCreditGoldenOrchidCup"OutstandingCaseinResponsibleInvestment

2024ZhejiangExcellenceinSupportingtheRealEconomyGoldenBullAwardforFundInvestmentAdvisoryInstitutions2024ChinaSecuritiesIndustryRisingStarInvestmentBankJunDingAward2024ChinaSecuritiesIndustryBestServicetoPrivateEnterprisesProject

JunDingAward

1st"ChinaPrivateEquityVentureCapitalYinghuaAward"

AnnualMostValuableBrandAwardMostPromisingInvestmentBankbyNewFortune

BestIndustrialResearchTeamoftheYearinManufacturing2024BestInstitutionforSupportingHigh-QualityDevelopmentofListedCompanies2024Top30ListedCompaniesBrandValueListinChina'sSecuritiesIndustry

2024FinancialValueList—AnnualRisingStarInvestmentBanksTop52024ClassicCaseofFinancialSupportforPrivateEconomicDevelopment

TrustedFinancialInstitutionAward7thChinaOutstandingIRAwards:BestLeadership,BestDisclosure,BestInnovation

Practice,BestInvestorRelationsProject

ChinaSecuritiesJournalSecuritiesTimesSecuritiesTimesChinaFundCailianPressNewFortuneNewFortune21stCenturyBusinessHeraldNationalBusinessDaily

YicaiZheshangMagazineYinshiFinanceRoadshowChina

TheGeneralAssociationofZhejiangEntrepreneurs-

FinancialServicesCommitteeXinhuaNewsAgency,ChinaEconomicInformationServiceZhejiangDailyPressGroup·TideNews,QianjiangEveningNews

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Asasteadfastpractitionerofsustainabledevelopmentprinciples,CaitongSecuritiesconsistentlyplacessustainabilityatthecoreofitsoperations.TheCompanycloselytrackscutting-edgepolicies,regulations,initiatives,andmeasuresinsustainabledevelopment,deeplyintegratingtheseconceptsintoitsstrategy,management,andbusinesspractices.

SustainableDevelopmentManagement

SustainableDevelopmentManagement

2024SustainabilityReport

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IncompliancewiththeCSRC'sCodeofCorporateGovernanceforListedCompaniesandtheShanghaiStockExchange'sSelf-RegulatoryGuidelinesforListedCompaniesNo.1?StandardizedOperations,CaitongSecuritieshassystematicallyestablishedawell-de?nedsustainabledevelopmentmanagementframework.Throughathree-tiergovernancestructure("Decision-MakingLevel?ManagementLevel?ImplementationLevel"),theCompanyensurese?ectivetop-downstrategicplanning,resourceallocation,andseamlessintegrationwithbusinessoperations.

SustainableDevelopmentManagement

Decision-MakingLevel

RoleMainResponsibilities

ManagementLevel

ESGGovernanceStructureandResponsibilitiesComposition

CompanyExecutivesandRelevantFunctionalDepartments

BoardofDirectorsandtheStrategicandESGCommittee

?Supervisetheimplementationofthesustainabledevelopmentstrategy?…?FormulatetheCompany’ssustainabledevelopmentstrategy?Decideonmajorsustainabledevelopmentissuesandriskresponsemeasures

ExecutionLevel

Departmentsandfrontlineoperationalunits

?Executedailymanagementofsustainabledevelopment?Ful?llresponsibilitiesrelatedtoenvironmental,social,andcorporategovernance

TheCompanycontinuouslyoptimizesitsESGmanagementframeworkandsystem,utilizingscienti?cande?cientmanagementmethodstoactivelypromotethecomprehensiveimprovementofESGe?orts.

Sustainability Performance Highlights

Economical

CaseCaitongSecuritiesIncludedintheState-OwnedListedCompaniesESGPioneer100Index(2024)OnNovember7,2024,the"7thChinaEnterpriseForum-ParallelSessiononState-OwnedEnterpriseSocialResponsibility",hostedbytheSocialResponsibilityBureauoftheState-ownedAssetsSupervisionandAdministrationCommissionoftheStateCouncil,wassuccessfullyheldinBeijing.Theforumreleasedseveralimportantindices,includingtheBlueBookonEnvironmental,SocialandGovernance(ESG)ofCentralEnterpriseListedCompanies(2024)andthe"State-OwnedListedCompaniesESGPioneer100Index(2024)".CaitongSecuritieswassuccessfullyincludedinthe"State-OwnedListedCompaniesESGPioneer100Index".

SustainableDevelopmentManagement

?Conductsustainabledevelopmenttrainingtoguideallemployeesinsystematicsustainabilitye?orts?Coordinatesustainabledevelopmentmanagementobjectives?…

?Implementthesustainabledevelopmentstrategy

Weightedaveragereturnonnetassets

%

6.59

Totalassets

billion

144.555

CNY

Operatingrevenue

billion

6.286

CNY

Netpro?t

billion

2.340

CNY

CodeofCorporateGovernanceforListedCompaniesSelf-RegulatoryGuidelinesforListedCompaniesNo.1?StandardizedOperations,

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CaitongSecurities?rmlybelievesthatcollaborationwithvariousstakeholdersisthecornerstoneforachievinglong-termsustainabledevelopment.Weplaceahighvalueoncommunicationandinteractionwithdiversestakeholders,includinggovernmentandregulatoryagencies,shareholdersandinvestors,customersandpartners,communitiesandnon-pro?torganizations,andemployees.Weexploretheestablishmentofamanagementmechanismthatincorporates"identi?cation-communication-response-improvement,"clearlyde?ningthecoreissuesrelatedtoenvironmental,social,andcorporategovernance.Weproactivelydisclosekeyperformanceindicatorsandtransformstakeholdersuggestionsintoconcretepracticesforoptimizinggovernancesystems,innovatingproductsandservices,andco-creatingsocialvalue.

StakeholderCommunication

CompliantoperationRiskmanagementESGmanagementServingtheeconomicdevelopmentofZhejiangprovinceandotherregionsServingtherealeconomyCommonprosperityPromotingculturaldevelopment

StakeholdersKeyConcernsCommunicationChannelandMethod

Government/RegulatoryAuthorities

Employees

Customers

Partners

Shareholdersandinvestors

￥

Community/Publicwelfareorganizations

Environmental

IndicatorPerformanceGHGemissionsPercapitawaterconsumptionRainwaterrecyclingandreuseRenewableenergyusage

4,283tCOe

6.8tons/person

2,533cubicmeters64,304tons

IndicatorPerformanceReductioninpercapitagasolineconsumptionSupportinggreenbondissuanceGreenABSissuedESG-themedtrainingsessionsforinvestors

2%CNY425millionCNY6.231billion3sessions

Social

IndicatorPerformanceTotalemployeesFemaleemployees

4,798

46.98%

27.18%

15.18%

100%

127.65hours

96.8%

91.06%

2,232sessions3,188types60millionperson-times

Governance

IndicatorPerformance

Disclosureannouncementspublished111

100%100%

5

CNY19.1528million1,660person-times

SustainableDevelopmentManagement

Femalerepresentationinmiddle/senior

managementEmployeeturnoverrateTrainingparticipationrateAveragetraininghoursperemployeeEmployeesatisfactionrateCustomersatisfactionrateInvestoreducationprogramsconductedOriginalinvestoreducationmaterials

producedBene?tinginvestorsDigital?nanceR&Dinvestment

R&DpersonnelInformationsystememergencydrills

conductedVolunteerparticipation

CNY84.54million

Amountofinvestmentinpublicwelfare

andcharity

Numberofperformancebrie?ngsheldin2024CompliancetrainingcoverageAnti-corruptionandintegritytrainingcoverage

TheStrategyandESGCommitteeoftheboardmeetingconvened

ParticipatingingovernmentsurveyactivitiesStrengtheningcomplianceriskcontrolDevelopmentofthe"Four-DimensionalCaitong"initiativeConstructionofinvestors’educationbasesPromotinge?ortsforindustryculture-buildingCorporategovernanceInvestorrelationsmanagementInvestoreducation

Shareholders’AssemblyRegularinformationdisclosureInvestorsurveyandinteractionPerformancebrie?ngsConstructionoftheinvestoreducationbaseCustomerserviceDatasecurityandprivacyprotectionResponsiblemarketingFinancialtechnologyResponsibleinvestment

CustomerservicehotlineCaitongSecuritiesAPPCustomersatisfactionsurveyInvestorseducationCompliantoperationSuppliermanagementNGO

CooperationandexchangeContractperformanceRuralrevitalizationCharitableactivitiesandvolunteerServicesGreenoperations

VolunteerservicesCharityinitiativesGreeno?cepracticesGreen?nanceEmployeetraininganddevelopmentEmployeerightsandbene?tsEmployeeequalityanddiversityTalentretentionandincentives

EmployeerepresentativemeetingTrainingsessionsEmployeeactivitiesUnionoutreach

11members(including4independentdirectors

and1femaledirector)TotalnumberofdirectorsResolutionsreviewed

2024SustainabilityReport

1920

In2024,basedontheprincipleof"doublemateriality"(boththe?nancialimpactontheCompanyandthesubstantiveimpactontheeconomy,environment,andsociety),weconstructedamaterialityissuesassessmentmatrixforCaitongSecuritiesthroughstrategicplanning,industryresearch,andinternalandexternalstakeholdersurveys.Thisinvolvedintegratingglobalsustainabledevelopmenttrendswithrelevantdomesticandinternationalsustainability/socialresponsibilitystandards,guidelines,andinitiatives.Weutilizedmethodssuchasquestionnairesandcommunicationinterviews,ultimatelyidentifying23keysubstantiveissues.

MaterialityAnalysis

IssueIdenti?cation

IssueAssessment

InternalstakeholderquestionnairesandsurveysExternalstakeholderquestionnairesandsurveys

ReportScreening

CombineinterviewfeedbackandexpertevaluationstoformCaitongSecurities'materialityissuesmatrix

ImportancetoCompanyFinances

ImportanceofImpactonEconomy,Society,

andEnvironment

High

High

Low

CaitongSecuritiesMaterialityIssuesMatrix

PeerbestpracticecasesPolicyandindustryanalysisCompanystrategyAnalysisofinternationalinitiatives

SustainableDevelopmentManagement

Addressing climate changeGreen ?nanceGreen operations

Environmental

Compliance operationsAnti-money launderingBusiness ethics and anti-corruptionIntellectual property protectionCustomer privacy protection and data securityRisk management

Governance

Social

Responsible InvestmentTechnology ?nanceInclusive ?nancePension ?nanceDigital ?nanceEmployee careEmployee training and development

Employee health and safetyCustomer serviceResponsible marketingInvestor educationSupply chain managementRural revitalizationCommunity Philanthropy

2024SustainabilityReport

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CaitongSecuritiesisguidedbyahigh-qualitysustainabledevelopmentphilosophyandreferstotheUnitedNationsSustainableDevelopmentGoals(UNSDGs)tosteadilyenhanceitssustainabledevelopmentcapabilities.

ContributiontotheUnitedNationsSustainableDevelopmentGoals(SDGs)

Throughinclusive?nancialservices,supportthedevelopmentofsmallandmedium-sizedenterprisesandruralareas,helpinglocalcommunitiesenhancetheirown"self-sustainability."

Providing?nancialsupportforagriculturalandruraldevelopmentprojects,helpsimproveagriculturalproductivityandfarmerincomes,contributingtothegoalofzerohunger.

Socialwelfareactivities,suchasvolunteerservicesandcharitabledonations,contributetothehealthandwell-beingofsociety.

Activelypromotegenderequalityincorporategovernanceandbusinessoperations,ensuringthatwomenhaveequalopportunitiesandtreatmentintheworkplace.

Supportenvironmentalprotectionprojects,suchaswaterresourceconservationandsewagetreatment,throughgreen?nanceinitiatives,contributingtocleandrinkingwaterandsanitationfacilities.

Supportthedevelopmentofcleanenergyandpromotetheoptimizationofenergystructurethroughgreen?nanceprojects.

Throughinvestoreducationactivities,helpsinvestorsenhancetheir?nancialknowledge,promotingthe?nancialhealthofsociety.

?Responsibleinvestment?Ruralrevitalization

?Communityphilanthropy?Customerservice

?Employeecare?SocialWelfare

?Green?nance?Responsibleinvestment

?Addressingclimatechange?Responsibleinvestment?Green?nance

?Investoreducation

Establishaclear,responsibleinvestmentmanagementframeworkthatincorporatesESGfactorsintotheinvestmentdecision-makingprocess.Byemployingpositivescreening,negativeexclusion,andotherstrategies,prioritizeinvestmentsincompanieswithgoodenvironmental,social,andgovernanceperformance,therebypromotingthesustainabledevelopmentofinvesteecompanies.Supportcleanenergy,energyconservation,andenvironmentalprotectionindustriesthroughthedevelopmentofgreen?nancebusinesses,promotingtheoptimizationofenergystructureandcarbonreduction.

Activelydevelopdigital?nancetoenhancethee?ciencyandaccessibilityof?nancialservicesthroughtheapplicationof?nancialtechnology.

Supporturbaninfrastructureconstructionandenvironmentalprotectionthroughgreen?nanceprojects,contributingtothecreationofsustainablecitiesandcommunities.

Throughinvestoreducation,?nancialknowledgedissemination,andotheractivities,wehelpinvestorsimprovetheir?nancialliteracyandnarrowthewealthgap.

Providediversi?ed?nancialservicestomeettheneedsofdi?erentcustomergroups,especiallythe?nancingneedsofsmallandmedium-sizedenterprises,therebypromotingemploymentandeconomicgrowth.

Supportforestprotectionandecologicalrestorationthroughgreen?nanceprojects,contributingtothepreservationofterrestrialbiodiversity.

?Responsibleinvestment?Environmentalmanagement

?Addressingclimate change?Responsibleinvestment

?Innovation-driven?Customerservice?Industrycooperationanddevelopment

?Green?nance?Communityphilanthropy

?Communityphilanthropy?Customerservice?Ruralrevitalization

?Customerservice?Employeecare

?Responsibleinvestment?Environmentalmanagement

SustainableDevelopmentManagement

CaitongSecurities'ContributiontoAchievingtheUnited

NationsSustainableDevelopmentGoals

CorrespondingIssues

?ResponsibleinvestmentRuralrevitalization

CorrespondingIssues

CorrespondingIssues

CorrespondingIssues

CorrespondingIssues

CorrespondingIssues

CorrespondingIssues

CorrespondingIssues

CorrespondingIssues

CorrespondingIssues

CorrespondingIssues

CorrespondingIssues

CorrespondingIssues

CorrespondingIssues

CorrespondingIssues

2024SustainabilityReport

2324

Enhancecorporategovernanceandcompliancemanagementtoensuretransparencyandfairnessincompanyoperations,contributingtotheestablishmentofapeacefulandjustsociety.EstablishacomprehensiveESGmanagementframework,includingastrategicandESGcommitteeundertheboardofdirectorsandanESGmanagementteam,toensurethee?ectiveimplementationofESGstrategies.

Promotetheachievementofsustainabledevelopmentgoalsthroughe?ectivecommunicationandcollaborationwithvariousstakeholders.

?Compliancemanagement?Anti-unfaircompetition?Riskmanagementandinternalcontrol?Informationsecurity?Industrycooperationanddevelopment?Innovation-driven

UnitedNationsSustainableDevelopmentGoalsclassi?cation

B

B

ABA

A

C

CA

CAA

BBB

BBB

HuazhengIndexOctober2024AARatingAgencyDateRatingRecognition

WindESGMay2024BBBRatingAgencyDateRatingRecognition

Sustainability Ratings & Recognitions

SustainableDevelopmentManagement

CorrespondingIssues

CorrespondingIssues

MSCIESG

RatingAgencyDateRatingRecognition

BBBOctober2024

2024SustainabilityReport

2625

StrivingforExcellencetoBuildaFirst-ClassCompany

Governance

ThischaptercontributestotheUnitedNationsSustainableDevelopmentGoals(SDGs)CaitongSecuritiesadherestotheleadershipofPartybuilding,deeplypracticesthe“FiveDo’sandFiveDon’ts”oftheChinesecharacteristic?nancialculture,andcontinuouslyimprovestheCompany’sgovernancestructureandinstitutionalsystem.TheCompanyiscommittedtoenhancingitsgovernancelevel,maintainingcomplianceasabottomline,vigorouslypromotingacultureofcompliance,deepeningcomprehensiveriskmanagement,implementinganti-corruptionandintegrityinitiatives,andfosteringanindustrycultureof“compliance,integrity,professionalism,andprudence”withintheCompany.ThisprovidesasolidfoundationfortheCompany’sstableoperationsanditse?ortstostrengthenandoptimizeitsperformance.ThischapterstrictlyfollowstherequirementsoftheShanghaiStockExchangeListedCompanySelf-RegulatoryGuidelinesNo.

?SustainabilityReport(Trial),andspeci?callycorrespondstoChapter5oftheguidelinedocument,titled“DisclosureofGovernanceInformationRelatedtoSustainability.”ItincludesadetaileddiscussionandanalysisofSection1“GovernanceMechanismsRelatedtoSustainability”andSection2“BusinessConduct.”

G

Governance:StrivingforExcellencetoBuildaFirst-ClassCompany

2024SustainabilityReport

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CaitongSecuritiesstrictlyfollowsthelawsandregulationssuchastheCompanyLawofthePeople'sRepublicofChina,theSecuritiesLawofthePeople'sRepublicofChina,aswellastherulessetforthbytheChinaSecuritiesRegulatoryCommissionandtheShanghaiStockExchange.The

Companyadherestogovernanceprinciplesthatareindependent,mutuallycooperative,clearlyde?nepowersandresponsibilities,andensuree?ectivechecksandbalances.Thishasresultedinamoderncorporategovernancesystemcharacterizedbytheuni?edleadershipofthePartycommittee,strategicdecision-makingbytheboardofdirectors,independentsupervisionbytheboardofsupervisors,andlegaloperationsbythemanagementteam.

LeanCorporateGovernance

OperationofThreeGoverningBodiesWehaveestablishedacorporategovernancestructurecomprisedoftheshareholders’assembly,theboardofdirectors,theboardofsupervisors,andtheoperationmanagement,referredtoasthe"ThreeMeetingsandOneLayer."Eachleveloperateswithinitsauthority,ful?llingitsrespectivedutiesandresponsibilitiestoensuretheCompanyoperatesinaregulatedmannerandmaintainsstableoperations.

BoardofSupervisorsShareholders’Assembly

BoardofDirectors

OperationManagement

StrategyandESGCommitteeRemunerationandNominationCommittee

RiskControlCommittee

AuditCommittee

In2024,theCompanyheld:

Shareholders’Assembly,reviewingandapprovingproposals;；meetingsoftheboardofdirectors,reviewingand3187approvingproposals；meetingsofvariousspecialcommitteesoftheboardofdirectors,reviewingandapproving581253531proposals；regularmeetingsoftheboardofsupervisors,reviewingandapprovingproposals.

Webelievethatthediversity,independence,andprofessionalismoftheboardmembersarekeyfactorsinsafeguardingshareholderinterestsandmaintainingthelong-termstabilityoftheCompany.Tothisend,weevaluatethecompositionoftheboardmembersfrommultipledimensions,includingprofessionalexperience,skillsets,tenure,culturaleducation,andgendercompetency.Thecurrentboardmemberscomefromvariousindustries,withprofessional?eldscoveringlaw,riskmanagement,accounting,?nance,andmore,whichcontributetotheboard'sabilitytomakeinformeddecisions.

BoardIndependenceandDiversity

BoardofDirectors

Theboardconsistsofdirectors,includingindependentdirectors,employeedirector,andfemaledirector.11411Independentdirectorsaccountfor%36.36

InformationDisclosureTheCompanystrictlyadherestorelevantlawsandregulations,includingtheSecuritiesLawofthePeople'sRepublicofChinaandtheInformationDisclosureManagementMeasuresforListedCompanies,ful?llingitsinformationdisclosureobligationsinatimelymannerthroughvariousformssuchasannualreportsandinterimreports.In2024,theCompanypreparedanddisclosedatotalof111announcementsanddocuments,achievingzerosupplementarydisclosuresandzerocorrections.TheinformationdisclosureworkwasonceagainawardedanA-classratingbytheShanghaiStockExchange,andfortwoconsecutiveyears,itreceivedthe"BestPracticesinCorporateSecretarialO?ceofListedCompanies"awardfromtheChinaAssociationforPublicCompanies.

LawofthePeople'sRepublicofChinaListedCompanies

InformationDisclosureManagementMeasuresfor

People'sRepublicofChina

Governance:StrivingforExcellencetoBuildaFirst-ClassCompany

2024SustainabilityReport

CompanyLawofthePeople'sRepublicofChina,theSecuritiesLawofthe

3029

InvestorRelationsManagementTheCompanycontinuouslyenhancesinformationexchangewithinvestorsandpotentialinvestorsinaccordancewithrelevantlawsandregulatorydocuments,suchastheGuidelinesforInvestorRelationsManagementofListedCompaniesandtheShanghaiStockExchangeSelf-RegulatoryGuidelinesNo.1?StandardizedOperations,aimingtomaximizecompanyvalueandshareholderinterests.

TheCompanystrictlycomplieswiththerequirementsofrelevantlawsandregulations,includingtheSecuritiesLawofthePeople'sRepublicofChinaRegulationsontheSupervisionandAdministrationofSecuritiesCompaniesComplianceManagementMeasuresforSecurities,the,theCompaniesandSecuritiesInvestmentFundManagementCompaniesSecuritiesAssociationofChina'sComplianceManagement,andtheImplementationGuidelinesissuedbytheChinaSecuritiesIndustryAssociation.Acomprehensiveinternalcompliancemanagementsystemisestablished,clearlyde?ningthecompliancemanagementresponsibilitiesatalllevelsoftheCompany,alongwithperformanceassuranceandoperationalmechanisms.

Lawful and Compliant Operations

ComplianceManagementSystemTheCompanyplacesahighpriorityoncompliancemanagementandhasestablishedarobustcompliancemanagementsystemthatcoversvariousaspects,includingcompliancepolicies,complianceprocesses,andcompliancesupervision.In2024,wecontinuedtoenhancethecompliancesystem,revisingregulationssuchasthe,theEmployeeProfessionalConductComplianceMeasuresComplianceO?cerPerformanceEvaluationGuidelinesKeyMonitoredAccountImplementationRules,AbnormalTradingManagementProcedures,theandthe.TheseregulationsensurethecompliancemanagementoftheCompany'sbusinessactivitiesandemployees'professionalconduct,andwehaveestablishedacomprehensivecompliancemanagementorganizationalstructure.Duringthereportingperiod,theCompanydidnotencounteranymajorcomplianceriskincidents.

CompliancemanagementsystemoftheCompany

Objectivesandassumingultimateresponsibilityforthee?ectivenessoftheCompany'scompliancemanagement.BoardofDirectors

Implementingcompliancemanagementobjectives,improvingcompliancemanagementmechanism,andimplementingcompliancemanagementindailyoperationandmanagement.OperationManagemen

Responsibleforreviewing,supervisingandinspectingthecomplianceoftheoperationandmanagementoftheCompanyanditssta?andtheirprofessionalbehaviors.ComplianceO?cerandComplianceDepartment

Responsibleforimplementingtheirowncompliancemanagementrequirementsandtakingresponsibilityfortheirowncomplianceoperation.Headsofalldepartments,branchesandsubsidiaries

Responsibleforthecomplianceofallbusinessmattersandprofessionalpracticeswithinthescopeoftheirownbusinessactivities.Allemployees

In2024In2023

selectedforthesecuritiescompany“whitelist”

Wevaluecommunicationandinteractionwithinvestors,constantlyexploringwaysandmeansof“goingout”and“bringingin.”Wepromotetherealizationofmarketvaluethroughmultiplematricesanddimensions,reasonablyguidingexpectations,tellingthestoryof?nancialstate-ownedenterpriseswell,andstrivingtoenhancemarketattention.Duringthereportingperiod,12researchinstitutionsissued89reports,listingCaitongSecuritiesasarecommendedtargetintheirportfolios,orassigning“Buy,”“Overweight,”or“StrongBuy”ratings.

In2024

TheShanghaiStockExchangeInteractiveE-platformrespondedtoquestions.84

Weactively"goout"and"bringin,"organizingorparticipatinginresearchandroadshowevents,25coveringoverinstitutions,andholdingperformancebrie?ngmeetings.503In2024

20.10distributionsofequityareplanned,withadividendofCNYpershareforthe2023?scalyearandCNYpershareforthe?rstthreequartersof2024,resultinginatotalcashdividend0.05distributionofCNYmillion.697

achieved%compliancereviewcoverageforsigni?cant100mattersintheCompany’soperations.

GuidelinesforInvestorRelationsManagementofListedCompanies

SecuritiesLawofthePeople'sRepublicofShanghaiStockExchangeSelf-Regulatory

GuidelinesNo.1?StandardizedOperations

ChinaRegulationsontheSupervisionandAdministrationofSecuritiesCompaniesComplianceManagementMeasuresforSecuritiesCompaniesandSecuritiesInvestmentFundManagementCompaniesSecuritiesAssociationofChina'sComplianceManagementImplementationGuidelines

EmployeeProfessionalConductComplianceMeasuresComplianceO?cerPerformanceEvaluationGuidelinesKeyMonitoredAccountImplementationRules,AbnormalTradingManagementProcedures

Governance:StrivingforExcellencetoBuildaFirst-ClassCompany

2024SustainabilityReport

Closelyfollowthelatestrequirementsofexternallaws,regulations,andsupervisoryrules,andtimelyenhancetheconstructionofinternalsupportingsystems,internalizingspeci?crequirementsintotheCompanyregulations.RevisetheEmployeeProfessionalConductComplianceMeasurestocomprehensivelymanageemployees'professionalbehaviorsandpreventandcontrolcompliancerisksarisingfrommisconduct.Promotetheconstructionofagroup-widecompliancemanagementdigitalplatform,collectingover200compliancemanagementdatapointsfromsubsidiariesthroughouttheyear,breakingdowntasksinto3majorcategoriesand6items,andtrackingandsupervisingonmonthly.ImprovementoftheComplianceSystem

KeyAreasOurActionsandAchievements

Studyregulatorycasestoclarifythecompliancepracticebottomline,reviewatotalof263penaltycasesrelatedtosecuritiesresearch,wealthmanagement,andinvestmentbanking,andformulateananalysisreporttobepublishedcompany-wide.Focusonpromotingcomplianceculturebyconductingaseriesofwarningeducationsessionson"strongregulation,zerotolerance"andcentralizedlearningactivitieson"learningfromcases,maintainingthebottomline,"reviewingandorganizingstudieson11casesofviolationsbysecuritiespractitioners.StrengtheningComplianceEducation

Innovativelymonitorinvestmentbehaviorsofpersonnelininvestment,investmentbanking,andresearchsectors,developingourownmonitoringmodelandprocessing230earlywarnings.Implementnewregulatoryrequirementsanddynamicinspectiondemands,organizeinternalspecialself-inspectionswithinthegroupandformreports.

SupportingBusinessDevelopmentAnti-MoneyLaunderingTheCompanystrictlyful?llsitsobligationsasa?nancialinstitutioninanti-moneylaunderinge?orts,continuouslydeepeningtheinternalcontrolmanagementsystemforanti-moneylaundering.Wehaverevised?veinternalcontrolsystems,includingtheAnti-MoneyLaunderingandCounter-TerroristFinancingBasicSystem,implementedacentralizedoperatingmodelforanti-moneylaundering,improvedthecustomera?liation

managementmechanism,andcomprehensivelyupgradedtheanti-moneylaunderingmonitoringsystem.Wedevelopedin-housesuspicioustransactionmonitoringmodelsandcustomermoneylaunderingriskratingmodels,whilecontinuouslyconductingriskassessments,supervisoryinspections,andtrainingandpromotionalactivities.Duringthereportingperiod,theCompanydidnotexperienceanymoneylaunderingriskevents.

OptimizingtheAnti-MoneyLaunderingOperatingModel

KeyAreasOurActionsandAchievements

Customizedthedevelopmentofanewgenerationanti-moneylaunderingmonitoringsystemtofurtherenhancetheinteroperabilityofcustomerinformationandthecross-sharingofmonitoringresults,creatingamanagementclosedloopwith"onestartingpointandonechain."EnhancingAnti-MoneyLaunderingSystemFunctions

Builtananti-moneylaunderingmodellaboratorytoexplorecasecharacterization,characteristicindexformulation,andindicatormodelling.Conductedin-housedevelopmentofsuspicioustransactionmodelstocontinuouslyimprovetheaccuracyofriskmonitoringandearlywarning.Thenumberofsuspicioustransactionreportsincreasedby60%comparedtothepreviousyear.StrengtheningtheE?ectivenessofRiskMonitoringandEarlyWarning

BusinessEthicsandAnti-Corruption

TheCompany’sboardofdirectorsdeterminesthegoalsofintegrityandprofessionalconductmanagementandisresponsibleforitse?ectiveness.ThemainresponsiblepersonoftheCompanyservesastheprimaryindividualaccountableforimplementingintegritymanagementresponsibilities,whileheadsofdepartmentsandunitsbearcorrespondingmanagementresponsibilitieswithintheirareasofauthority.

TheCompanystrictlyabidesbytherequirementsoftheProvisionsontheProfessionalIntegrityofSecuritiesandFuturesBusinessInstitutionsandTheirEmployeesManagementMeasuresforIntegrityandProfessionalConductofCaitongSecuritiesCo.,Ltd.Wehaverevisedthe.to

comprehensivelyimprovethelong-termmanagementmechanismforintegrityandprofessionalconductfromvariousaspects,includinginstitutionalconstruction,leadershipmechanisms,divisionofresponsibilities,internalcontrolmeasures,informationsystems,andculturaldevelopment.Aclosed-loopmanagementsystemhasbeenestablishedforpre-event,in-event,andpost-eventstages.

Highstandardsareimplementedtocarryoutthe"IntegrityandE?ciencyProtectionProject,"usingthe"IntegrityandFinancialHarmony"brandforintegritycultureconstructionasaguidingprinciple.Thisincludesintegratingbusinessethics,anti-corruption,andintegritycultureintothepromotionsystem,suchasorganizingartisticexhibitions,upgradingeducationalplatformstolaunchninespecialcolumns,andcompilinganddistributing126issuesoflearningmaterials.IntegrityCultureConstruction

KeyAreas

OurActionsandAchievements

Wearecomprehensivelydeepeningthereformofthe"IntegrityandE?ciency"supervisionmechanism,whichalignswiththecharacteristicsofthesecuritiesindustry.Thisinvolvesintegratingdisciplinarysupervisionandcompliancesupervision,formingakeyarea"IntegrityandE?ciency"supervisorytaskforce,andlaunchingadigitalplatformfor"IntegrityandE?ciency"supervision.Supervisorswillbeassignedtobusinesslinestoensurethatsupervisionisembeddedinoperationsandreachesalllevels.Atotalof117employeediscussionsand12integritypromotionsessionshavebeenconducted."IntegrityandE?ciency"SupervisionMechanismReform

Theintegrityclausespeci?edinArticle21(10)oftheCompany'sprocurementimplementationregulationsclearlystates:itisstrictlyprohibitedforPartyBtoprovideanyimproperbene?tstopersonnelofPartyAinanyform,suchaspersonalconveniences,bribery,orabnormalbusinessentertainment.Additionally,ifPartyBencountersrequestsforbene?tsordi?cultiesimposedbypersonnelofPartyAduringcontractexecution,itmayreporttothedisciplinaryinspectiondepartmentofPartyA.SupplierAnti-Corruption

Duringthereportingperiod

ComprehensiveSupervisionSystemConstructionDevelopedandlaunchedthe,consolidatingcertainkeyanti-moneyAnti-MoneyLaunderingCentralizedOperationsModellaunderingtasksfrombrancho?cestoheadquartersforcentralizedhandling.Establishedauni?edsamplingmechanismfornon-suspiciouscasesattheheadquarters,promotedtheresolutionofthecustomera?liationmanagementmechanismfor"onepersonwithmultipleaccounts,"andimprovedthe"customer-based"managementframework.

OurActionsandAchievements

Wearedeepeningtheestablishmentofacomprehensivesupervisionsystemthatextendshorizontallyandvertically,reinforcingthetransparencyandcoveragebetweentheparentcompanyanditssubsidiaries,andpromotingsupervisorye?ortsdownwardandoutward.

TheCompanyanditsbranchesdidnotexperienceanycorruptionlawsuitsagainsttheCompanyoritsemployees.TheCompanyanditsemployeesdidnotfaceanyexternalhandling,includingadministrativeregulatorymeasuresorhigher,duetoviolationsoftheintegrityandprofessionalconductregulations.

ProvisionsontheProfessionalIntegrityofSecuritiesandFuturesBusinessInstitutionsandEmployeeProfessionalConductComplianceMeasures

Anti-MoneyLaunderingandCounter-TerroristFinancingBasicSystem,

TheirEmployeesManagementMeasuresforIntegrityandProfessionalConductofCaitongSecuritiesCo.,Ltd

Anti-MoneyLaunderingCentralizedOperationsModel

Governance:StrivingforExcellencetoBuildaFirst-ClassCompany

2024SustainabilityReport

IntellectualPropertyProtectionTheCompanystrictlyadherestothetheandtheTrademarkLawofthePeople'sRepublicofChina,PatentLawofthePeople'sRepublicofChina,CopyrightLawofthePeople'sRepublicofChina,fullyrespectingandlegallyprotectingitsownandothers'intellectualpropertyrights.Atthesametime,itextendsits?nancialservicesintotheintellectualpropertysector,innovating?nancialproductstoe?ectivelyactivatetheintangibleassetsofsmallandmedium-sizedenterprisesandenhancedevelopmentalmomentum.

CaseCaitongSecuritiesHolds"IntegrityandFinancialHarmony"ArtPerformanceExhibitionOnOctober31,CaitongSecuritiesheldanartperformanceexhibitionfocusedonintegrity.Duringtheevent,the"IntegrityandFinancialHarmony"integrityculturebrandandten"No"integrityculturesloganswereo?ciallyannounced.Inhisspeech,CaitongSecuritiesChairmanZhangQichengstatedthatthisevent,themedaroundintegrityandguidedbycollaboration,integratesintegrityintoscenicpresentations,disciplineintocasestudies,andeducationintoentertainment.Theaimistodeeplymergeintegritycultureconstructionwiththe"FiveDo’sandFiveDon’ts"ofChina's?nancialcultureandwiththeprinciplesof"integrity,compliance,professionalism,andprudence"inthesecuritiesindustry,ultimatelyenhancingtheawarenessofintegrityamongemployeesandfosteringapositiveatmosphereofdiligenceandintegrity.

Case

CaitongSecuritiessuccessfullyIssuesHangzhouHigh-techZone(Binjiang)FirstIntellectualPropertyABSInDecember2024,the?rstintellectualpropertyasset-backedsecurities(ABS)intheHangzhouHigh-techZone(Binjiang),titled"Caitong-HangzhouBinjiangIntellectualPropertyPhase1Asset-backedSpecialPlan(TechnologyInnovation),"wassuccessfullyissued.Thisalsomarksthe?rstassetsecuritizationproductinthecountrythatincludescopyrightingamingandanimation.CaitongSecuritiesservedasthe?nancialadvisorforthisproject,whileCaitongAssetManagementactedastheplanmanager.Weprovidedinnovative?nancingsolutionscenteredaroundtheintellectualpropertyof114projectsfrom13high-qualitysmallandmedium-sizedtechnologyenterprises,ultimatelyachievingadirect?nancingscaleofCNY104millionwithacouponrateof2.34%.

Whistleblowing&ComplaintsChannelTheCompanypubliclyprovidesthedisciplinaryinspectionmailboxandthecomplaintworkemailaddressthroughitso?cialwebsiteandotherchannels.Anydisciplinaryviolationorirregularitycanbereportedviatheemailaddress,andanonymousreportingisencouraged.WestrictlyenforcetheandtheSecuritiesCompanySupervisionandAdministrationRegulationsDisciplinaryInspectionAgencies'RulesonHandlingAccusations.Wearecommittedtoprotectingtherightsofwhistleblowersandstrictlyprohibitemployeesfromdisclosingrelevantinformationtothereportedindividualsorthoseunderinvestigation.Retaliationagainstwhistleblowersandthoseholdingdi?eringopinionsisstrictlyforbidden.Additionally,itisclari?edthatwhistleblowershavetherighttoapplyforprotectioniftheirlawfulrightsarethreatenedorinfringeduponduetotheirreportsorcomplaints.

In-PersonWhistleblowing

EmailWhistleblowingHotlineWhistleblowing

SecuritiesCompanySupervisionandAdministrationRegulationsDisciplinaryInspectionAgencies'RulesonHandlingAccusations

TrademarkLawofthePeople'sRepublicofChina,PatentLawofthePeople'sRepublicofChina,CopyrightLawofthePeople'sRepublicofChina,

Governance:StrivingforExcellencetoBuildaFirst-ClassCompany

2024SustainabilityReport

Acybersecurityandinformationsecurityleadershipgroupandaninformationsecuritymanagementteamhavebeenestablished,withclearlyde?nedresponsibilitiestooverseetop-leveldesign,overalllayout,coordination,comprehensivepromotion,supervision,andimplementationofinformationsecuritywork.Institutionaldocumentshavebeenformulated,includingtheNetworkandInformationSecurityManagementMeasures,DataGovernanceMeasures,DataSecurityManagementMeasures,DataClassi?cationandGradingManagementandRules,tostandardizedatasecuritymanagementrequirements,ensuringuni?edmanagement,continuouscontrol,andsecurestorageofdata.

ManagementSystemandInstitutionalDevelopment

KeyAreasOurActionsandAchievements

TheprocurementanddeploymentofaSoftwareCompositionAnalysis(SCA)systemhavebeencompleted,strengtheningthesecuritygovernanceframeworkforopen-sourcesoftwareandenhancingdefensesagainstmaliciousattacks.

VirtualizationtechnologyhasbeenadoptedtodeployanetworksecuritydefenseandmonitoringsystemthatincludesaWebapplication?rewall,asecuritysituationawarenessanalysisplatform,andahoneypotearlywarningsystem.Thishasreducedthenumberofphysicalservers,loweredenergyconsumption,andenhancednetworksecurityprotectioncapabilities.Thetransformationofinfrastructuretobeindependentlycontrollableisbeingpromotedbyusingdomesticallyproducedoperatingsystems,chips,servers,andotherproductstoreducerelianceonexternaltechnologiesandimprovetheresilienceandsecuritylevelsofthesupplychain.TechnologyandMeasures

In2024,theandtheCybersecurityIncidentEmergencyResponsePlanCybersecurityIncidentReportingandInvestigationwererevised,improvingemergencyplansforextremeinternalandexternalscenarios,andcategorizingall

informationsystemswithintheCompany.A"singleaccount"datarecordoftheCompany'sapplicationsystemshasbeenformedtopromoteaclosed-loopcontroloftheapplicationsystemlifecycle.Throughouttheyear,572emergencydrillsub-taskswereorganized,includingthreedisasterrecoveryswitchingdrills,oneindustrydrill,andmultipledisasterrecoveryswitchingdrillsbeforetheUF30launch,aswellaswarmstandbyswitchingandUF30certi?cationescapedrills,improvingthecomprehensivenessande?ectivenessofemergencydrills.

EmergencyResponseandDrillsNetworkandDataSecurity

CaitongSecuritiesNetworkandDataSecurityManagementFramework

BoardofDirectorsOperationManagementITGovernanceCommittee

Responsibleforformulatinginformationtechnologystrategiesandreviewingrelatedmatters.

Duringthereportingperiod,theCompanycontinuouslystrengtheneditsmanagementsystemandinstitutionaldevelopment,conductingannualinternalandexternalauditsofinformationsystemstofullyensurenetworkanddatasecurity.

SupplierManagement

Asa?nancialenterprise,theCompanystrictlyadherestotheandtheBiddingLawofthePeople'sRepublicofChinaGovernmentProcurementLawofthePeople'sRepublicofChina,ProcurementSupplierManagementRules.andhasestablishedtheWehavesetupamechanismforevaluating

procurementsuppliers,whichclearlyde?nestheselection,admission,andmanagementprocessesforsuppliers,providingsupportfortheCompany’sbiddingandprocurementactivities.Atthesametime,weimplementa"zerotolerance"policyforsuppliersengaginginsigni?cantbreachesofcontract,fraud,commercialbribery,orprovidingfalsequali?cations.Onceveri?ed,suchsupplierswillbeblacklisted,resultinginthepermanentterminationofcooperationandthereservationoflegalaccountabilityrights.

DataGovernanceCommittee

Thedeliberativeanddecision-makingbodyfortheCompany'sdatasecuritymanagementwork.

ResponsibleforformulatingthestrategicdirectionandmajorpoliciesfortheCompany'snetworkanddatasecurity,andaccountableforthee?ectivenessofnetworkanddatasecuritymanagement.Responsibleforimplementingnetworkanddatasecuritymanagementgoalsandaccountablefornetworkanddatasecuritymanagementwork.

InformationSecurityTrainingStatus

NumberofTrainingSessionsNumberofParticipantsTrainingCoverageRate

Indicator

InformationSecurity

TimesPersons%Hours

Unit

Allemployees

2022

Allemployees

2023

Allemployees

3.6

2024

AverageHoursofInformationSecurity

TrainingperEmployee

Classi?cationofsuppliers

PotentialsuppliersAlternativesuppliersContractedsuppliers

Listofquali?edsuppliers

SuppliersonthegreenlistSuppliersontheyellowlistSuppliersontheblacklist

TheCompanyplacesahighemphasisonnetworkanddatasecuritymanagement,strictlyadheringtotherequirementsofrelevantlawsandregulationssuchastheCybersecurityLawofthePeople'sRepublicofChina,theDataSecurityLawofthePeople'sRepublicofChina,andthe

PersonalInformationProtectionLawofthePeople'sRepublicofChina.Wefocusonstrengtheningandstandardizingnetworkanddatasecuritymanagementandpersonalinformationprotection,ensuringthesecurityofcompanydata,ful?llingtheobligationtoprotectcustomerprivacyinformation,andensuringthelegalityandcomplianceoftheuseofcustomerprivacyinformation.Duringthereportingperiod,theCompanydidnotexperienceanyincidentsrelatedtonationalsecurityleaks,nordiditencounteranynegativeeventsrelatedtoinformationsecurityandcustomerprivacy.

BiddingLawofthePeople'sRepublicofChinaGovernmentProcurementLawofthePeople'sRepublicofChina,ProcurementSupplierManagementRules.

NetworkandInformationSecurityManagementMeasures,DataGovernanceMeasures,DataSecurityManagementMeasures,DataClassi?cationandGradingManagementRules

CybersecurityIncidentEmergencyResponsePlanCybersecurityIncidentReportingandInvestigation

Governance:StrivingforExcellencetoBuildaFirst-ClassCompany

2024SustainabilityReport

SystemConstruction：TheCompanyenhancesitsinformationtechnologysystems,includingmeasuressuchasnetworkisolation,userauthentication,dataencryption,databackup,datadestruction,virusprevention,andillegalintrusiondetection,toprotectcustomerinformationsecurity.MonitoringandProtectionSystem：Acomprehensivecustomerinformationsecuritymonitoringandprotectionsystemisestablished,withimprovedsystemfunctionmodules.Thisensuresthatsystemlogscanaccuratelyandcomprehensivelyrecordcustomerinformationqueriesanddownloadoperationsinatimelymanner,ensuringtraceabilityofinformationleakageincidents.Third-PartyManagement：TheCompanysupervisesandmanagesthird-partyserviceprovidersrelatedtoinformationtechnology,requiringthemtoful?llcon?dentialityobligationstoensurethesecurityof?nancialandcustomerinformation.Regularevaluationsofthird-partyserviceproviders'protectivecapabilitiesareconducted,andcooperationispromptlyterminatedifde?cienciesarefound.

InformationTechnologySecurityProtection

TrainingandEducation：TheCompanyregularlyorganizesinformationsecuritytrainingandawarenessactivitiesforemployees,aimedatenhancingtheirawarenessofinformationsecurityandcompliance.Educationalinitiativesforinvestorpersonalinformationsecurityarestrengthenedthroughinvestorlecturesandcustomerfollow-ups.

ProhibitedActions：TheCompanyprohibitsemployeesfromcollectingcustomerinformationunrelatedtobusiness,coercivelycollectinginformation,obtaininginformationthroughimpropermeans,collectingbeyondtheprescribedscopeorfrequency,violatingcon?dentialityprotocols,orusinginformationforunjustgains.Con?dentialityAgreements：Allemployeesarerequiredtosigna"Con?dentialityAgreement"uponjoiningtheCompany,clarifyingtheirresponsibilitiesrelatedtoinformationsecurity.Personnelinvolvedinhandlingcustomerinformation,includingoutsourcedlabor,externalcollaborators,andinterns,mustalsosignthe"Con?dentialityAgreement."PersonnelManagementandEducation

InternalMechanism：TheCompanyhasestablishedaninternalmonitoring,inspection,accountability,andcorrectionmechanismcoveringallemployeestopromptlyidentifyandmanagepotentialrisks.ReportingandVeri?cation：Ifemployeesdiscoversuspectedcustomerinformationleakageorviolationsofcon?dentialityprotocols,theyshouldpromptlyreporttotheirdepartmentheadsandinitiateaninitialveri?cation.Ifitisfoundthatcompanypersonnelorbusinessactivitieshavecausedinformationleakage,athoroughinvestigationshouldbeconducted,andrisksshouldbepromptlyaddressed.RiskInspection：TheCompanyhasestablishedacustomerinformationleakageriskinspectionmechanism,employingregularorirregularself-checks,compliancechecks,auditinspections,andbusinesscheckstotimelyidentifyviolationsandtakee?ectivemeasurestomitigaterisks.EmergencyDrills：TheCompany'sriskmanagementdepartmentorganizesatleastoneemergencydrilleachyeartoenhancetheabilitytorespondtoinformationsecurityincidents,andanemergencydrillreportisarchivedforrecords.

InspectionandAccountabilityMechanismandEmergencyResponseCustomerInformationCollection

TheCompanystrictlyfollowsthe"minimumnecessary"principleduringtheinformationcollectionprocessandensuresthelegalityofinformationusagethroughcustomer-informedconsentmechanisms.Duringtheuseofthisinformation,theCompanyemploystechniquessuchasdataanonymizationandencryptiontoensurethesecurityofsensitivecustomerinformation.

PermissionSettings：Permissionsarereasonablysetaccordingtotheprincipleof"cleardivisionoflabor,minimumpermissions,"specifyingtheprocessesforqueryingandusingcustomerinformation,andestablishingarigorous,tieredapprovalandcontrolsystemforqueriesandusage.

ElectronicInformationManagement：ElectroniccustomerinformationinputtedintotheCompany'sbusinesssystemsisrecorded,stored,andmanagedbyeachrespectivesystem.Accessiscontrolledthroughpermissions,allowingonlyauthorizedpersonneltoqueryandmaintaincustomerinformation.TheCompanystrictlyenforcesthebusinesssystempermissionsapprovalsystemandconductsregularchecksonpermissionusage.Con?dentialityRequirements：TheCompanykeepscustomerinformationcon?dential,prohibitingtheleakage,sale,dissemination,ormisuseofcustomerinformationagainsttheirwill,exceptasrequiredbylaws,regulations,ordemandsfromauthorizedgovernmentagencies.

PaperInformationManagement：Documentscontainingcustomerinformationgeneratedduringbusinessoperationsaremanagedbydesignatedpersonnel,whoareresponsiblefortimelyorganization,archiving,uniformstorage,andsafekeeping.Accessrequiresstrictadherencetoapprovalprocesses.CustomerInformationStorageandUse

KeyAreasOurManagementPractices

CaseCaitongSecuritiesAppPassesSecuritiesandFuturesIndustryAppSecurityCerti?cationIn2024,theCaitongSecuritiesAppsuccessfullypassedthemobileinternetapplicationsecuritycerti?cationforthesecuritiesandfuturesindustryandreceivedtheproductcerti?cationcerti?cate.Thisfurtherveri?estheapp'sgoodsecurityqualityandthelevelofprotectionforcustomerprivacyinformation.

CustomerPrivacyProtectionTheCompanyplacesahighemphasisoncustomerprivacyprotectionandhasestablishedacomprehensivegovernancesystemtoensurethesecurityofcustomerinformation.After2024,theCompanysetupaCustomerInformationProtectionTaskForceundertheleadershipoftheCybersecurityandInformationSecurityLeadershipGroup,responsibleforcoordinatingandadvancingcustomerinformationprotectione?orts.Followingtheprincipleof"ensuringsecuritywhilepromotingdevelopment,"theCompanyaimstobuildandimprovemechanismsforsafeguardingcustomerinformationsecurity.Asperthe"SecuritiesLawofthePeople'sRepublicofChina,"the"CybersecurityLawofthePeople'sRepublicofChina,"the"PersonalInformationProtectionLawofthePeople'sRepublicofChina,"the"DataSecurityLawofthePeople'sRepublicofChina,"the

CybersecurityandInformationSecurityManagementMeasuresfortheSecuritiesandFuturesIndustry,andtheCaitongSecuritiesCo.,Ltd.NetworkandInformationSecurityManagementMeasures,amongothers,theCompanyformulatedtheCustomerInformationProtectionManagementMeasuresofCaitongSecuritiesCo.,Ltd.Thisdocumentclari?esthatallemployeesmuststrictlyimplementprivacyprotectionrequirements,includingdataclassi?cationcontrol,accessauthorization,andencryptionanddesensitization,inallaspectsofhandlingcustomerpersonalinformation,includingcollection,transmission,storage,use,deletion,anddestruction,toensurethesecurityofdataassets.Duringthereportingperiod,theCompanydidnotexperienceanyincidentsofcustomerprivacyleakage.

Governance:StrivingforExcellencetoBuildaFirst-ClassCompany

2024SustainabilityReport

TheCompanystrictlyadherestoregulatoryframeworkssuchastheComprehensiveRiskManagementGuidelinesforSecuritiesCompanies,the

MeasuresfortheManagementofRiskControlIndicatorsofSecuritiesCompanies,andtheLiquidityRiskManagementGuidelinesforSecuritiesCompanies.Ithasestablishedacompletesystemthatencompassesboththeparentcompanyanditssubsidiaries,withclearlyde?nedobjectives,principles,organizationalstructure,divisionofresponsibilities,andbasicprocessesconcerningriskmanagement.

Strengthening Risk Management

RiskManagementStructure

Aspercomprehensiveriskmanagementrequirements,theCompanyhasestablishedawell-de?ned,four-tierriskmanagementorganizationalframeworkwithcleardivisionsofresponsibilitiesandreportinglines.Thisstructureincludesfourlevels:theBoardofDirectors(RiskControlCommittee),theBoardofSupervisors,theOperationManagement(RiskManagementCommittee),theRiskManagementDepartment,theComplianceDepartment,andvariousfunctionaldepartments,aswellasbusinessunitsandsubsidiaries.

OperationManagementLayer2Asthemanagementbodyforcomprehensiveriskmanagement,ittakesthemainresponsibilityforcomprehensiveriskmanagement.

Layer1

BoardofSupervisorsAsthehighestdecision-makingbodyforcomprehensiveriskmanagement,itleadsthee?ortsofcomprehensiveriskmanagement.

BoardofDirectors

RiskManagementDepartmentLayer3

BusinessDepartments,Branches,andCompaniesLayer4

CaitongSecuritiesactivelybuildsanESGriskmanagementframeworkacrossvariousbusinessactivities,includinginvestmenttrading,credit,investmentbanking,andcustomerassetmanagement.Incertainareasofbusiness,ESGriskconsiderationsaremadebasedonthecharacteristicsoftheactivities.Beforeengagingincredit-relatedbusiness,ESGduediligenceisconducted,andariskassessmentiscompletedtoensurethattheoperationsarecarriedoutinanorderlymannerwithinanacceptablerangeofESGrisks.

Improvetheduediligencesystemandestablishbusinessaccessstandardsbasedonthedi?erentriskcharacteristicsofvariousactivities.FocusonindustrieswithhigherESGriskpotential,suchasagriculture,energy,mining,andoilandgas.

ESGRiskManagementProcess

ESGRiskMonitoringandEarlyWarningESGRiskIdenti?cationandAssessment

ESGRiskReportingandHandling

RiskManagementSystemTheCompanycontinuouslyestablishesandimprovesathree-tierriskmanagementsysteminaccordancewiththerequirementsoftheComprehensiveRiskManagementGuidelinesforSecuritiesCompanies.BasicRegulationsforRiskThe?rsttierconsistsofthebasiccompanyregulationsguidedbytheManagement.Thesecondtierincludescoreriskmanagementregulationsbasedondi?erenttypesofrisks,suchasmarketrisk,creditrisk,operationalrisk,andreputationalrisk,aswellascoreregulationsdevelopedforspeci?ctasksrelatedtoriskcontrolindicators,risklimitmanagement,emergencyriskmanagement,andnewbusinessriskmanagement.Thethirdtiercomprisesspeci?cimplementationrulesformulatedbasedonthecoreriskmanagementregulations,includingriskmanagementmechanismsforvariousbusinessactivitiesandspeci?criskmanagementregulationsconcerningsubsidiaryriskmanagement,stresstesting,riskmanagementevaluation,riskmanagementaccountability,andmodelmanagement.CategoriesofSigni?cantRisksandResponseMeasuresTherisksfacedbytheCompanyinitsoperationsmainlyinclude:marketrisk,creditrisk,liquidityrisk,operationalrisk,informationtechnologyrisk,andreputationalrisk.TheCompany?rmlyupholdsthebottomlineofpreventingsigni?cantrisks,andduringthereportingperiod,nosigni?cantriskeventsoccurred.

Asthehighestsupervisionbodyforcomprehensiveriskmanagement,itsupervisestheperformanceofdutiesbytheBoardofDirectorsandtheOperationManagement,andurgesthemforrecti?cation.

UndertheleadershipoftheChiefRiskO?cer,thisdepartmentpromotescomprehensiveriskmanagemente?orts,isresponsibleformonitoring,assessing,andreportingtheCompany'soverallrisklevels,andprovidiesriskmanagementrecommendationsforbusinessdecisions.Italsocoordinatesriskmanagemente?ortsacrossdepartments,branches,andsubsidiaries.

Asfront-linebodiesresponsibleforcomprehensiveriskmanagement,theypromptlyidentify,assess,respondto,andreportrelevantrisks,andassumedirectresponsibilitiesforcomprehensiveriskmanagement

DevelopasystemofESGriskmonitoringindicatorsandrules,andconductmonitoringandearlywarningforvarioustypesofrisks.

IncorporateESGriskmanagementintothereportingandevaluationsystem.Forsigni?cantrisklossesresultingfrominadequateESGriskmanagement,implementcomplianceandriskmanagementaccountabilitymeasures.

ComprehensiveRiskManagementGuidelinesforSecuritiesCompanies.BasicRegulationsforRiskManagement.

Governance:StrivingforExcellencetoBuildaFirst-ClassCompany

2024SustainabilityReport

MajorRiskCategoriesMeasures

Marketriskreferstotheriskoflossesinacompany'sinvestmentportfolioduetounfavorablechangesinmarketvariables.Itprimarilyarisesfromproprietarysecurities,market-making,andotherinvestmentactivities,andismainlydividedintoequitypricerisk,interestraterisk,commoditypricerisk,andforeignexchangerisk.

TheCompanyhasestablishedatop-downrisklimitmanagementsystem,settingmarketrisktoleranceandoverallrisklimitsaccordingtoitsriskappetite,andre?ningtheselimitsacrossvariousbusinesslines.Theboardofdirectorsdeterminessigni?cantrisklimitssuchastheannualscaleofproprietarybusiness,marketrisklosstolerance,andlosslimits.Theoperationmanagementthenbreaksdowntheselimitsandapprovescorrespondingrisklimits,coveringmulti-dimensionalindicatorslikebusinessscaleandlosslimits.Relevantbusinessdepartmentsfurtherre?nethedepartmentalrisklimitsbasedonthesefoundationsandimplementriskcontrolmeasuresthroughportfolioinvestments,dailymarketmonitoring,hedging,andriskwarningsystems.TheCompanycontinuouslyimprovesmanagementprocessesandinformationtechnologysystems,monitoringmarketrisklimitsdaily,andprovidingtimelywarningsandcontrols;italsoemploysstresstestingandmulti-dimensionalassessmentmethodstoanalyzeandevaluatethemarketrisksfacedbythecompany,monitorinvestmentportfoliotrends,andrevealriskstoprovidereferencesfordecision-making.Creditriskistheprobabilityoflossresultingfromthefailureofaborrower,counterparty,orissuertoful?lltheircontractualobligations,orthepotentiallossduetochangesinthecreditratingsofborrowers,counterparties,orissuers,leadingtovariationsinthemarketvalueoftheirdebts.TheCompany'screditriskstemsfromdefaultsincreditproducts,defaultsbysecuritiescreditbusinessclients,anddefaultsbycounterpartiesinover-the-counterderivativetransactions,manifestingasthepotentialforlossesfrombonddefaults,creditratingdowngrades,andclientandcounterpartydefaults.

Toaddresscreditrisk,theCompanyhasimplementedvariouscontrolmeasures:inthesecuritiescreditbusiness,itconductscreditmanagementthroughduediligenceandreviews,implementscollateralandsubjecteligibilitymanagement,controlsclient?nancingscalesandcollateralconcentration,andenhancesreal-timemonitoring;inthebondinvestmentbusiness,itutilizesaninternalevaluationsystemtoassessissuerrisks,setsinvestmentgradeadmissionstandards,trackstheoperationalandcreditconditionsofissuers,andpromptlyadjustsholdingsofbondsonthenegativelistwhileclarifyingthedefaulthandlingprocess;inthederivativestradingbusiness,itmanagescreditforcounterparties,adoptsriskmitigationmeasuressuchasnetsettlement,derivativehedgingtools,andearlyterminationoptions,andclari?esthehandlingprocessesfordefaultsandearlyterminationevents.

Liquidityriskreferstotheriskthatacompanyisunabletoobtainsu?cientfundsinatimelymannerandatareasonablecosttomeetmaturingdebts,ful?llotherpaymentobligations,andsatisfynormalbusinessoperationalfundingrequirements.

TheCompanyoptimizesmanagementprocessesandsystems,strengthensintradayliquiditymanagementanddaily?nancingmanagement,implementsliquidityriskindicatormonitoringandlimitmanagement,conductsliquiditymanagementforhigh-ratedbondassets,establishesathree-tierreservepool,improvestheliabilitystructure,reinforces?nancingchannels,andenhancesinformationsystemstocopewithliquiditypressure.Duringnewinvestmentsortheinitiationofnewbusinesses,liquidityriskindicatorsaresubjectedtostresstestingbasedonbusinesscharacteristics,andtheresultsareappliedtotheCompany'srelevantdecision-makingprocesses.

Operationalriskistheriskoflossesresultingfromde?cienciesininternalprocesses,informationsystemfailures,employeeerrorsormisconduct,andexternalfactors.

TheCompanyhasclari?edtheorganizationalstructureandresponsibilitiesforoperationalrisk,managementprocesses,andculturaldevelopment,reinforcingresponsibilitiesacrossvariouslinesofdefense.Bystrengtheningbusinessprocessesandsystemconstruction,conductingtrainingandawarenesscampaigns,andenhancingaccountability,theCompanyaimstoreducethelikelihoodofoperationalriskoccurrences.Toolssuchaskeyindicators,lossdatacollection,andself-assessmentsareutilizedtoenhancemanagementcapabilities.TheCompanypaysattentiontotheidenti?cationandcontrolofoperationalrisksassociatedwithinnovativeproductsandbusinessoperations,establishingmanagementsystemsandprocessesfornewbusinesses,clearlyde?ningthenecessaryconditionsandapprovalpathways,andensuringthattheorganizationalstructure,businessmodel,andriskconditionsofnewbusinessesarethoroughlyvalidatedtomaintainoveralloperationalriskatacontrollableandacceptablelevel.

InformationTechnologyRiskreferstothepotentialriskstotheinformationsystemsthatcompaniesrelyonduringtheiroperationsandbusinessactivities,whichmayfaceunexpectedeventssuchashardwareandsoftwarefailures,communicationlinefailures,andmaliciousintrusions.TheseriskscanimpacttheCompany'sreputationandservicequality,andmayevenleadtoeconomiclossesandlegaldisputes.

TheCompanycontinuouslyimprovesitsinstitutionalframework,implementsacybersecurityresponsibilitysystem,andestablishesandperfectsthenetworkandinformationsecurityassurancesystem.Itconductshierarchicalmanagementofinformationsystems,deepensriskmonitoringandearlywarninge?orts,strengthenshazardidenti?cationandremediation,andenhancestheoperationalsupportcapabilitiesforcriticalinformationsystems.Additionally,theCompanypromotestheconstructionofariskcultureandstrengthensthesafetyawarenessandskilltrainingofitspersonnel.Itestablishesandenhancesthesecuritymanagementcontrolsystemforbranchinformationsystemsandoptimizesmechanismsfore?ectivecommunicationandsharingofinformationtechnologyrisks.ReputationRiskariseswhentheactionsofsecurities?rms,externalevents,orviolationsofintegrityregulations,professionalethics,businessnorms,andindustryagreementsbytheirpersonnelresultinnegativeevaluationsfrominvestors,issuers,regulatoryagencies,self-regulatoryorganizations,thepublic,andthemedia.Thiscandamagethebrandvalueofthesecurities?rm,hinderitsnormaloperations,andpotentiallya?ectmarketstabilityandsocialstability.

TheCompanyincorporatesreputationriskmanagementintoitscomprehensiveriskmanagementsystem,establishingamanagementmechanismtoproactivelypreventreputationrisksandrespondtoreputationriskevents.Itidenti?es,assesses,controls,monitors,respondsto,andreportsonreputationrisksinitsoperationsandmanagement,aimingtominimizeandmitigatethelossesandnegativeimpactsofreputationeventsontheCompany,stakeholders,andtheindustry.Duringthereportingperiod,theCompanycontinuouslyenhancedreputationriskmonitoringandearlywarninginkeyareasaccordingtointernalandexternalregulationsandrequirements,conductedspecialpublicopinionmonitoringintheseareas,andconsistentlyimprovedthee?ciencyofrapidresponseandhandlingofreputationrisks.Systematicspecialtrainingiscarriedouthierarchicallytocontinuouslyraiseemployees’awarenessofreputationriskprevention.RiskCultureDevelopmentTheCompanyiscommittedtodeeplyintegratingriskcultureintoitsbusinessoperations,focusingoncreatingaforward-lookingriskcontrolsystem.

TheCompanyproducesaseriesofspecializedcoursestitled"RiskControlMicro-Knowledge,"andorganizesgroupriskmanagementworkmeetings,specializedtrainingsessions,regularbusinessdepartmentmeetings,andperiodicpublicationstopromotethecompany'sriskculture,interpretriskpolicies,andsharecomprehensiveriskconceptsandprofessionalexperiences.BuildingaRiskManagementCulture

KeyAreasOurActionsandAchievements

ExertingtheLeadingRoleofAssessment

4241Governance:StrivingforExcellencetoBuildaFirst-ClassCompany

TheCompanyincorporatesriskmanagementintoperformanceassessmentsandaccountability,continuouslyoptimizingtheriskmanagementassessmentmechanism,andfosteringaninternalculturethatrespectsthemarket,adherestorules,andacknowledgesrisks.

2024SustainabilityReport

RidingtheTideofProgresstoNourishAllIndustries

Social

S

CaitongSecuritieshasalwaysadheredtoitsoriginalintentionofservingtherealeconomy,basedonthepolitical,people-oriented,andfunctionaldimensionsof?nancialwork.Itseizesnewopportunitiesinthepolicymarket,positioningitselfas"aSecuritiesCompanyofZhejiangEntrepreneursandEnterprises,"deeplyintegratingintothenationaldevelopmentstrategy,andcontinuouslypromotingitsnewbrand"UpholdingIntegrityandHarmonyinPursuitofDreams."Webuildasymbioticbondbetweenindustryand?nancethroughresponsibleinvesting,reshapecustomerservicequalitywithdigital?nance,forgeaprofessionalenginewitha"talent-drivenenterprise"strategy,andactivatepublicwelfareenergywithacommonprosperitygene.Thisallowswarm?nancialpowertoconnectindustrialrevitalization,talentcultivation,inclusivelivelihoods,andsocialprosperity,constructingavaluebridgelinkingnationalstrategywiththewell-beingofthepeople,andstrivingtowriteCaitong'sresponsetothe"FiveKeyAreas"of?nance.”ThischapterstrictlyfollowstherequirementsoftheShanghaiStockExchangeListedCompanySelf-RegulatoryGuidelinesNo.14?SustainabilityReport(Trial),andspeci?callycorrespondstoChapter4oftheguidelinedocument,titled“DisclosureofSocialInformation.”Thecontentofthischapterwill

comprehensivelycoverallsubsectionsunderthischapter,includingSection1“RuralRevitalizationandSocialContribution,”Section2“Innovation-DrivenDevelopmentandEthicalTechnology,”Section3“SuppliersandCustomers,”andSection4“Employees,”providingdetaileddiscussionandanalysisforeachsubsection.

ThischaptercontributestotheUnitedNationsSustainableDevelopmentGoals(SDGs)

44432024SustainabilityReportSocial: Riding the Tide of Progress to Nourish All Industries

ShanghaiStockExchangeListedCompanySelf-RegulatoryGuidelinesNo.14?SustainabilityReport(Trial)

CaitongSecuritiesisdeeplyrootedinthegenesofsustainabledevelopment,withthemissionof"leadinggreentransformationthroughresponsibleinvestment."TheCompanyhasformulatedandreleasedthe""continuouslyimprovingtheresponsibleinvestmentResponsibleInvestmentStatementofCaitongSecuritiesCo.,Ltd.,processbefore,during,andafterinvestment,andfurtherdeepeningthepracticeofresponsibleinvestmentwhileperfectingtheresponsibleinvestmentsystem.In2024,theCompanywillcomprehensivelyupgradeitsresponsibleinvestmentframework,systematicallyguidingresourceallocationtowardsahigh-quality,low-carboneconomy.

Practicing Responsible Investment

Wedeeplyunderstandandsteadfastlyupholdthepoliticalimperativeandpublic-servicenatureof?nancialwork.ByintegratingresponsibleinvestmentprinciplesintoourdevelopmentstrategyandfullyincorporatingESGcriteriaintoeveryinvestmentdecision,weharness?nancialtoolstodrivesustainablesocialprogress.

Withthenational"dualcarbon"strategyastheframework,wefocusoneightkeyareasforcarbonneutrality,includingpower,transportation,andindustry.Throughinnovativegreen?nancinginstrumentsandtargetedcapitalallocation,weacceleratethetransformationofhigh-carbonindustriesandscaleupemergingcleantechnologysectors.

KeyAreasOurActionsandAchievements

WedeeplyintegrateESGfactorsintotheentirechainof"pre-investmentscreening-monitoringduringinvestment-post-investmentempowerment,"achievingquantitativeassessmentofclimaterisks,dynamictrackingoftransformationtechnologies,andaccurateaccountingofcarbonbene?ts,ensuringthateachinvestmentcarriesbothenvironmentalvalueand?nancialreturns.WeguideinvestedenterprisestopayattentiontoESGgovernanceandimproveESGinformationdisclosure.Throughshareholderparticipation,resourcelinkage,andtechnologyoutput,wepromoteinvestedenterprisestoestablishScience-BasedTargets(SBTi)andbuildagreenecosystemthatsynchronizescapital,industry,andsociety,achievingawin-winforeconomicandecologicalbene?ts.

TheCompanyhasestablishedaclearthree-levelmanagementstructureforresponsibleinvestment:atthegrouplevel,ithassetuptheStrategyandESGCommittee,theInvestmentDecision-MakingCommittee,andtheESGManagementTeamtocomprehensivelypromoteESGandresponsibleinvestmentactivities.RelevantdepartmentsatheadquartersandsubsidiarieshaveappointedESGliaisonsresponsibleforanalyzingESGissuesandcollaboratingwiththirdpartiestoconductESG-relatedtraining,continuouslyenhancingtheprofessionalcapacityandmanagementlevelofresponsibleinvestment.Attheinvestmentprocesslevel,ESGfactorsareintegratedintotheselectionofinvestmenttargetsandthedecision-makingprocessoftheInvestmentDecision-MakingCommittee.

StrategyandESGCommitteeInvestmentDecision-MakingCommittee

ESGManagementTeam

LevelsofResponsibleInvestment

ItservesasthesupervisoryroleoftheCompany'sresponsibleinvestment,inchargeofcomprehensivesupervisionoverresponsibleinvestmentmatters

CorrespondingResponsibilities

InvestmentStrategy

StrategyApplicationandPracticeInvolvedAssetClasses

Social: Riding the Tide of Progress to Nourish All Industries

ResponsibleInvestmentOrganizationalStructure

ItservesastheexecutiveroleoftheCompany'sresponsibleinvestment,inchargeofscreening,evaluatingandotherworkspeci?ctotheinvestmenttargetsofresponsibleinvestmentItservesasthemanagementroleoftheCompany'sresponsibleinvestment,inchargeofcomprehensiveinvestmentdecision-making

WeactivelyimplementthesixPrinciplesforResponsibleInvestment(PRI)establishedbytheUnitedNations-supportedPRIinitiativeandtheseveninvestmentstrategiesdevelopedbytheGlobalSustainableInvestmentAlliance(GSIA).Byformulatingscienti?cinvestmentapproaches,wepromotethedeepintegrationofresponsibleinvestmentprincipleswithourbusinessoperationsandoptimize?nancialservicesprovision.

Whenselectingsectorsandestablishingstockpools,weprioritizesectorsandcompaniesthatexcelinenvironmental,social,andcorporategovernance(ESG)performancebasedonoverarchingtrendsandjudgments,integratingESGprinciples.Wefocusonhigh-qualitytargetsthatalignwithnationalstrategicdevelopmentdirectionsandupholdtheconceptofgreendevelopment.Byestablishinganegativeinvestmentlist,weexcludecompaniesthatlacksocialbene?ts,deviatefromnationalenvironmentalprotectionpolicies,orhaveenvironmentalorsafetyaccidentsandviolationsthatdonotcomplywithsustainabledevelopmentpathways.WethoroughlyintegrateESGstrategiesintopracticalresearchanalysisandinvestmentdecisions,guidingresearcherstoanalyzeESGfactorsalongsidetraditional?nancialmetrics.Thisprovidesacomprehensiveassessmentofindustryprospectsandindividualstockgrowthpotential,formingastrongbasisforinvestmentdecisions.Weencourageinvesteecompaniestoproactivelycreatepositiveenvironmentalandsocialimpacts,promotingtheimprovementoftheirsustainabledevelopmentquality.WeissueESGstrategyproductsfocusingongreeneconomicsectorsrepresentedbynewenergyvehicles,supportingsustainabledevelopmentforcompaniesinindustriessuchasphotovoltaics,energystorage,andlithiumbatteries.Sustainable?nancialprojectssuchasgreenbondsandruralrevitalizationbonds.

ResponsibleInvestmentStatementofCaitongSecuritiesCo.,Ltd.,

ResponsibleInvestmentStrategy

Long-TermGoalsforResponsibleInvestment

EquityInvestment,AlternativeInvestment-StockOwnershipInvestmentEquityInvestment,AlternativeInvestment-StockOwnershipInvestmentFixedIncomeInvestment,AlternativeInvestment-StockOwnershipInvestmentAlternativeInvestment-StockOwnershipInvestmentFixedIncomeInvestmentFixedIncomeInvestment

PositiveScreeningNegativeExclusion

ESGFactorIntegrationActiveOwnershipSustainableThemesImpactInvesting

AdvancingZero-CarbonTransitionBuildinganESGClosed-LoopRiskControlSystemPromotingESGInformationDisclosureCo-creatingaSustainableDevelopmentEcosystem

2024SustainabilityReport

WeexplicitlyrequirerelevantbusinessdepartmentstoincorporateESGfactorsintoallprocessesofequityinvestment,?xedincome,andalternativeinvestmentacrosstheCompany,integratingthethreeimportantfactorsofenvironmentalresponsibility,socialresponsibility,andcorporategovernanceintotheinvestmentdecision-making.

WhentheCompanyconductsequityinvestmentsinlistedcompanies,ESGfactorswillbeincorporatedintoinvestmentdecisions.WewillfullyutilizeESGevaluationmethodsandestablishanegativeinvestmentlist.ThefocuswillbeoninvestmenttargetswithESGperformanceexceedingthatoftheirpeers,whilethoseontheESGnegativeinvestmentlistwillbeexcludedfromconsideration.Summarizeandanalyzeinformationaboutissuersregarding?nancialissues,environmentalmatters,corporategovernance,andrecordsofviolations.Internalcreditevaluationpersonnelwillmonitorthisinformation,whichwillalsobeoneoftheprerequisitesforinclusionintotheinvestmentpool.Duringtheduediligencephase,willbetheCustomerEnvironmental,Social,andGovernance(ESG)DueDiligenceEvaluationFormincorporatedintothework?ow.Intheinvestmentdecision-makingphase,high-riskprojectsinequityinvestmentthatinvolveESGevaluationsmustbesubmittedtotheInvestmentDecisionCommitteeforspecialevaluation,andcanonlybeimplementedafterbeingreviewedandapprovedperrelevantregulations.Inthepost-investmentmanagementphase,theESGriskevaluationcontentandresultswillbeincludedintheannualpost-investmentmanagementreport.

EquityInvestmentBusinessFixedIncomeBusinessAlternativeInvestmentBusinessTheCompanywillactivelyintegratetheconceptofengagedshareholdersintoitsbusinesspractices,ensuringthelong-termstablerightsofinvestorsandtheCompany,whilepromotingtheinvesteecompaniestoenhancetheirsustainabledevelopmentlevels.Whenexercisingvotingrights,wewillnotonlyconsidergeneralmattersbutalsofocusonkeyESGissues,ensuringthatESGconsiderationsareembeddedthroughouttheentirevotingprocess,thusdrivinginvesteecompaniestowardsustainabledevelopment.

Asasecurities?rma?liatedwithZhejiangProvince,wealwaysupholdthefundamentalpurposeof"?nanceservingtherealeconomy."Westrivetocreatea"Four-DimensionalCaitong"thatisinnovation-driven,service-oriented,platform-based,andtransformative.Inareassuchastechnology?nance,inclusive?nance,andpension?nance,weleverageourprofessionaladvantagestosupporthigh-qualityeconomicdevelopment.Throughouttheyear,wefacilitateddirect?nancingfortherealeconomyamountingtoCNY146.2billionandhavebeenawardedthe?rstprizefor"OutstandingFinancialInstitutionsSupportingZhejiang'sEconomicandSocialDevelopment"forsevenconsecutiveyears.

ServingtheRealEconomy

PracticingTechnologyFinanceTheCompanyactivelyrespondstopolicycallsandimplementsthenationalinnovation-drivendevelopmentstrategy,adheringtothepriorityofinnovation.Relyingontheconstructionofaninnovation-friendlyenvironmentinZhejiang,wefocusonkeyareassuchas"specialized,sophisticated,distinctive,andinnovative"enterprises,technologyinnovationcompanies,andstrategicemergingindustries.Wedrivecorporateoperationswithanindustrialmindsetandprovideinclusive?nancialservicesinspecializedscienceandtechnologyparks,creatingadynamic?nancialecosystemthatpreciselychannelscapitaltohard-techenterprises.Wearedeterminedtomakesigni?cantcontributionstothedevelopmentoftechnological?nanceandsupportthegrowthofnewproductiveforces.

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CaitongCapitalInvestsinKaiMaoPrecisionTechnology,PromotingQualityUpgradingintheHigh-EndEquipmentManufacturingIndustry

Duringthereportingperiod,theJinkaiLeadingPhaseIFundmanagedbyCaitongCapitalcompletedaninvestmentofCNY30millioninZhejiangKaiMaoPrecisionTechnologyCo.,Ltd.,supportingtheestablishmentofaproductionbaseforKaiMaoPrecisionTechnologyintheJinhuaDevelopmentZone,withatotalinvestmentofapproximatelyCNY5billion.Thisinvestmentfullyre?ectstheconceptof?nancialservicessupportingtherealeconomyandresponsibleinvestment.Inadditiontoproviding?nancialsupport,CaitongCapitalalsocollaboratedcloselywiththeinvestmentpromotiondepartmentoftheJinhuaDevelopmentZonegovernment,banks,andCaitongSecurities'investmentbankingdepartment,providingtailoredsupportintermsofinvestmentpromotionpolicies,?nancingchannels,andprofessionalconsultingfortheestablishmentandlong-termdevelopmentoftheKaiMaoPrecisionTechnologyproductionbase.

CaitongSecuritiesEducationalBaseSuccessfullyHoldsESG-ThemedSeriesofActivitiesOnAugust14,2024,theCaitongSecuritiesEducationalBasehostedtwouniqueinvestoreducationevents:the"FinancialPowerhouseBlueprintandInvestorEducationforthePeople"lectureseriesandaninvestorroundtablediscussion.ThiseventwasorganizedbytheShenzhenStockExchangeandtheZhejiangSecuritiesRegulatoryBureau,withCaitongSecuritiesasthehostandtheZhejiangSecuritiesIndustryAssociationandCaiLianPressasco-organizers.Theaimwastoenhanceinvestors'understandingandawarenessofESGinvestmentconcepts,furtherfacilitatecommunicationchannelsforinvestors,andprovidehigh-qualityinvestorservicestoacceleratetheachievementofthegrandgoalofbuildinga?nancialpowerhouse.

Duringthereportingperiod,wemadeeverye?orttopromotetheinitiativeforenterprisestolistontheBeijingStockExchange,comprehensivelystrengtheningthe“investmentbanking+investment+research”triadmechanism,andcreatingastreamlinedservicetosupport“specialized,sophisticated,distinctive,andinnovative”enterprises.Throughouttheyear,wevisitedover1,000“specialized,sophisticated,distinctive,andinnovative”enterprises,ranking8thintheindustrybythenumberofmarketmakersfortheBeijingStockExchange.

CaitongInvestmentBanking

CaitongInnovation

CaitongInnovationremainscommittedtofocusingitsinvestmentson"hardtechnology,"andcontinuestoincreaseitse?ortsinindustryresearch,equityinvestment,andprovidingvalue-addedservicestointelligentmanufacturing,informationtechnology,andhealthcare-relatedindustriesandtheirspeci?csub-sectors.Duringthereportingperiod,threeprojectscompletedtheirIPOo?erings.Asoftheendofthereportingperiod,theCompanyhascumulativelyinvestedin63equityprojects,resultingin11ofitsportfoliocompaniessuccessfullylistingviaIPO,withatotalleveragedinvestmentamountofCNY47.183billion.

CaitongCapitalAdded14newinvestmentsinspecialized,sophisticated,distinctive,andinnovative"littlegiants"andprovincialprojects,withmorethan70%insci-techenterprises.TheinvestedenterpriseYuxingCo.becamethe?rstcompanytopassthereviewontheBeijingStockExchangein2024.HuikangTechnologywasselectedasanationalchampioninaspeci?cmanufacturingsector,andAnadawassuccessfullylistedontheShanghaiStockExchangeMainBoard.Aclosedloopof"fundraising+industriallanding"wasestablished,attractingover100high-qualityprojectsandleveragingatotalinvestmentofCNY145billion.

Case

Case

Social: Riding the Tide of Progress to Nourish All Industries

BusinessCategory

InclusionMethod

CustomerEnvironmental,Social,andGovernance(ESG)DueDiligenceEvaluationForm

2024SustainabilityReport

AdvancingInclusiveFinanceTheCompanydeeplyembodiestheconceptof?nanceforthepeople,continuouslyexpandingthedepthandbreadthofinclusive?nance.Basedonthehonorablemissionofsupportinghigh-qualitydevelopmentinZhejiangandbuildingademonstrationzoneforcommonprosperity,westrivetocreatesigni?cantimpactsin"inclusive?nance."Wearecommittedtoenhancing?nancialservicecoverage,accessibility,andsatisfactionthrough?nancialinnovationandserviceoptimization,addressingissuesofunequalandinsu?cient?nancialserviceprovision.Atthesametime,weupholdprinciplesoffairnessandimpartiality,treatingallmarketentities,includingsmallandmedium-sizedenterprises(SMEs),equally.ThetimelysettlementrateforpaymentstoSMEsreaches100%.In2024,theCompanyissuedthe"CaitongSecuritiesCo.,Ltd.PlanforPromotingHigh-QualityDevelopmentofInclusiveFinance,"integrating?vemajor?nancialtools:investmentbanking,investment,wealthmanagement,futures,andresearch.Thisplanhighlightsthemissionandresponsibilityofmodern?nancialinstitutionsinoptimizingthe?nancingecologyforSMEsandsafeguardingthehigh-qualitydevelopmentoftherealeconomy,whilestrivingtoforgeamodelofinclusive?nancepracticewithregionalcharacteristics.

Activelyincreasethesupplyofinclusiveproductswithuniquecharacteristics,carefullycreatelow-threshold?nancialproducts,andstrivetobroadeninvestmentand?nancialmanagementchannelsforurbanandruralresidents,allowingmorepeopletoequallyenjoythedividendsof?nancialdevelopment.In2024,cumulativesalesofcommonprosperityproductsreachedCNY20.313billion,ayear-on-yearincreaseof16%comparedtothepreviousyear.PreservingandGrowingHouseholdWealth

KeyAreasOurActionsandAchievements

Enriching?CommonProsperity?ProductSupply

5049

Case

CaitongSecuritiesSponsorsSpecialized,Sophisticated,Distinctive,andInnovative?LittleGiant?HongxinTechnologytoSuccessfullyListontheGrowthEnterpriseMarketOnApril15,2024,ZhejiangHongxinTechnologyCo.,Ltd.,sponsoredandunderwrittenbyCaitongSecurities,successfullylistedontheShenzhenStockExchange'sGrowthEnterpriseMarket.TheCompanyfocusesonservingspecialized,sophisticated,distinctive,andinnovativeenterprisesandcontinuestobuild"CaitongforSci-TechInnovation."Since2023,ithasaided?vespecialized,sophisticated,distinctive,andinnovativeenterprisesincompletingtheirIPOs.HongxinTechnologyisanationallyrecognizedspecialized,sophisticated,distinctive,,andinnovative"LittleGiant"enterprise,anditssuccessfullistingontheGrowthEnterpriseMarketisanotherachievementofCaitongSecuritiesinactivelyrespondingtonationalstrategiesforspecializedandinnovativeenterprises,aswellasaconcretepracticeinsupportingthedevelopmentoftheautomotivepartsindustry.

CaseOnAugust30,theZhejiangProvince?4+1?SpecialFund―ZhejiangYongyuanCaitongFuZheHigh-endEquipmentIndustryEquityInvestmentPartnership(LimitedPartnership)(YongyuanCaitongFuZheFund)―completedits?ling,withCaitongCapitalservingasthemanager.ThetotalscaleoftheYongyuanCaitongFuZheFundisCNY5billion,focusingprimarilyoninvestmentsinthe?415X?advancedmanufacturingindustrycluster,withanemphasisonsupportinghigh-endequipmentindustrieslikenewenergyvehicles.Itallocates80%ofitsinvestmentstodirectinvestmentprojects(includingdirectionalfunds)and20%tosub-funds,contributingtothedevelopmentofatrillion-yuanhigh-endequipmentindustryclusterinNingbo.

CaitongCapital?sServiceforZhejiangProvince?s?4+1?NingboCNY5BillionHigh-EndEquipmentFundSuccessfullyLaunched

Implementthereformrequirementsforpublicfundfeerates,changethetraditionalchargingmodelforselling?nancialproducts,exploreestablishingafeemechanismlinkedtocustomerperformance,andactivelypromotecommonprosperityproductsthatenhancetheproportionofexcesspro?ts.OptimizingTraditionalChargingModels

comprehensivelydeepenstrategiccooperationwithQuzhou,Lishui,Zhoushan,andotherregions,andfullysupportpovertyalleviationandwealthcreationinmountainousandislandcounties.Throughouttheyear,weprovidedbond?nancingofCNY15.54billiontomountainousandislandcounties,achievingagrowthrateof8.3%.Implementingthe?3510?OneEnterprise&OnePolicytoSupportCommonProsperitySpecialActionDevelopmentofMountainousandIslandCounties

Upholdingthephilosophyof"Onehandshake,lifelongcompanionship,"acomprehensiveintegratedmanualforthefulllifecycleofenterpriseshasbeendeveloped.A?nancialservicetoolboxintegratinginvestmentbanking,investment,wealthmanagement,futures,andresearchhasbeencreated,alongwithateamofcollaborativeserviceprovidersdeeplyrootedinZhejiangtosupportthefulllifecycledevelopmentofenterprises.In2024,atotalof6companiesweresuccessfullyassistedinachievingavaluationincrease,amountingtooverCNY4.5billion.FullLifecycleService forSmalland MicroEnterprises

CreatingaFullLifeCycleServiceModelforEnterprises

PilotprojectshavebeenestablishedinJinyun,Pingyang,andotherareastocreateinclusiveservicebasesforenterprises,havingbuilta"oneteam,onefund,oneproduct,oneservicesystem"modelforfulllifecycleinclusive?nancialservices,providingmoreenterpriseswithreplicableandreferenceable?nancialservicepathways.Throughouttheyear,wesignedcomprehensive?nancialadvisoryagreementswithover100clients,andthevisitationrateforspecialized,sophisticated,distinctiveandinnovativeenterprisesintheuniversalhealthcarebaseexceeded80%.

DeepeningtheBaseforInclusiveServicesforEnterprises

Social: Riding the Tide of Progress to Nourish All Industries

2024SustainabilityReport

Implementing Pension FinancePopulationagingisaprominentissuethatChinesesocietycurrentlyfacesandwillcontinuetofaceforalongtimeinthefuture.Pension?nanceiscloselyrelatedtopeople’swell-being.CaitongSecuritiesiscommittedtoaddressingtheimportantquestionof“pension?nance”bybuildingaservicesystemthatencompassesriskmatching,assetallocation,andindustriallinkage.Wefocusonthediversi?edpensionscenariosonthedemandside,introducingpersonalpension?nancialproductsandconstructingatargetedinvestmentadvisoryservicesystemtoprovidediversi?ed,personalized,andcustomizedpersonalpensionallocationservices.Atthesametime,weactivelyexplorepublicfundinvestmentbusinessforpersonalpensions,establishandimprovethepension?nancialproductsystem,promotegreenpension?nancialproducts,andcreateapositiveinteractionbetween?nancialinnovationandtheenhancementofpeople’swell-being.

Continuouslyenhancethedevelopmentofpension-focused?nancialproducts,targetdatefunds,andexclusivecommercialpensioninsurance,furtherenrichingitspension?nancialproductlinetomeetthediversepensionneedsofdi?erentinvestors.InnovationinPensionFinancialProducts

KeyAreasOurActionsandAchievements

Utilizing?nancialtechnologytoimprovethee?ciencyandconvenienceofpension?nancialservices,developinganonlinepension?nancialserviceplatformthato?ersone-stopservicesforpensionwealthplanningandproductpurchasing.OptimizationofPensionFinancialServices

Focusingontheinformationneedsofelderlyinvestors,wewilloptimizetheinteractionofouro?cialwebsiteandAPPinterface,includingfeaturessuchascontentreading,operationprompts,andvoiceassistance.Wewillproviderelevantapplicationswitha"CareMode"and"ElderMode,"andlaunchmoreproductswithfeaturessuchaslargefonts,largeicons,andhigh-contrasttext,enhancingaccessibilityandimprovingtheuserexperienceforelderlyusers.Age-FriendlyServiceTransformation

5251

Case

TheKaihuaCommonProsperityFundManagedbyCaitongCapitalO?ciallyEntersInvestmentOperationOnAugust14,2024,theCaitongLianyouTongfuEquityInvestmentPartnership(LimitedPartnership)managedbyCaitongCapitalo?ciallyenteredtheinvestmentoperationphase.TheKaihuaCaitongLianyouTongfuFundhasascaleofCNY200million,focusingonadvancedmanufacturing,smarttechnology,digitaleconomy,andagriculturalculturaltourismsectors.ItaimstoassistKaihuaCountyinQuzhou,Zhejiang,inestablishingacomprehensive“2+x”fundmatrixsystemwithmultiplelayersanddiversi?cation,providingpreciseempowermentforthedevelopmentofthecounty’sindustrialchain.

CaitongFund's“HappyAging”pension-themedprojectpioneersanewmodelthatintegrates“products+investmenteducation+publicwelfare.”Itencompassesthelaunchofpensiontargetfunds,researchonthepensionindustry,communityeducationonpensionknowledge,andthe“RainbowAccompanying”publicwelfareactivitiesfortheelderly.Thegoalistoprovidepensionsolutionswhilefurtherenhancinginvestors’rationalunderstandingofpensioninvestments.Notably,specialactivitiesemphasizetheinclusionof“anti-anxietyinpension”content,introducingexperiencesrelatedtotheeconomicdevelopmentoftheelderlycareindustry,pensioninvestmentstrategies,andinteractiveengagements.Theseconceptsarepresentedthroughcreativevideosando?ineactivities,subtlyspreadingtheideaofpensioninvestment.

CaitongFund?s“HappyAging”ComprehensivePensionFinancialServiceProjectSelectedasanOutstandingCaseforEmpoweringFinancialTalentinHigh-QualityIndustrialDevelopmentinZhejiangCase

Social: Riding the Tide of Progress to Nourish All Industries

2024SustainabilityReport

EnhancingServiceQuality

Optimizing Customer ServiceTheCompanyhasformulatedaseriesofsystemdocuments,includingtheCustomerFirstInquiryResponsibilityManagementMeasuresofCaitongSecuritiesCo.,Ltd.andtheInvestorComplaintHandlingSystemofCaitongSecuritiesCo.,Ltd.Fromtheinitialresponsetocustomerinquiriestotheoverallfollow-upofcomplainthandling,strictregulationsandoptimizationshavebeenputinplacetoprovidecustomerswithhigh-standard,e?cient,andhigh-qualityservices.

ResponsibleMarketingTheCompanyalwaysviewstheauthenticityofproductmarketinginformationasitslifelineandactivelyful?llsitssocialresponsibilitiesbyrigorouslyoverseeingmarketingmethods.Inbusinessoperations,theCompanystrictlyadherestotheself-disciplinenormssetbyindustryassociations,fullyregulatingpromotionalactivities.Itprohibitsanyactionssuchasexaggeratingproductreturns,fabricatingservicecontent,engaginginunfairpricecompetition,ordisparagingcompetitors.Themarketingteamissubjecttocomprehensivemanagement,andafull-processprofessionalstandardhasbeenestablished.Marketingpersonnelarerequiredtounderstandproductcharacteristicsaccuratelybeforeconductingpromotionalactivities.Additionally,aclosed-loopsupervisionmechanismisinplacetoensurethattheserviceprocessistraceableandqualityisassessable,therebye?ectivelysafeguardingmarketorderandprotectingcustomerrightsandinterests.

CustomerSatisfaction

DevelopingDigitalFinanceTheCompanyactivelyembracesdigitaltransformationandthewaveofAI,usingdigitalreformasastrongenginetocomprehensivelyempoweraccelerateddevelopmentacrossvarious?elds.Frompromotingtheimplementationofthe“1+6+N”SmartFinancePlanningandthe“1+3+N”FinancialTechnologyReformandInnovationImplementationPlantoiterativelyupgradingthe“1231”digitalreformobjectivesandfocusingonbuildingthe“1314N”digitaltoolbox,theCompanycontinuouslyplaysanimportantsupportingroleinbusinesstransformation,upgrading,andenhancingcustomerexperience.Since2021,atotalof28landmarkdigitalapplicationshavebeenreleased,e?ectivelyachievingthegoalsofenhancingperformancee?ciency,increasingmanagemente?ciency,andimprovingservicee?ectivenessthroughdigitalreform.

1Caitonggoal

2Mainreformlines(BusinessInstitutionalization

andBranchComprehensiveIntegration)

3Usercategories(Customers,Employees,EcologicalStrategicPartners)

Theestablishmentofadigitalreformproject"OneAccount"mechanism"1231"DigitalReformGoals

DigitalReformGoals

5453

“1+6+N”“DigitalandIntelligentCaitong“FinancePlanning6specializedplatforms(DigitalandIntelligentWealth,DigitalandIntelligentManagement,DigitalandIntelligentOperations,DigitalandIntelligentSupervision,DigitalandIntelligentResearch,DigitalandIntelligentInvestmentBanking)Nprojectsforimplementationandexternalplatformconnections1main“DigitalandIntelligentCaitong”platform

“1+3+N”FinancialTechnologyReformandInnovationImplementationPlan

“1314N”DigitalToolBox

TheCompanyadherestothecorephilosophyof“customer-centricity”anddeepensitsworkoninvestorprotection.AspertheInvestorComplaintHandlingSystemofCaitongSecuritiesCo.,Ltd.,theresponsibilitiesofvariousdepartmentsandbranchesincomplainthandlingareclearlyde?ned.Theprinciplesandprocessesforhandlingcomplaintsarecomprehensivelystandardizedandregulatedtoensurethatcomplaintsaredealtwithlegally,compliantly,ande?ciently,aimingtoenhanceinvestorsatisfactionande?ectivelyprotectinvestors’legalrightsandinterests.Duringthereportingperiod,theCompanyconductedcustomersatisfactionsurveysthroughconsultationandacceptancemethods,achievinganoverallcustomersatisfactionrateof91.06%.

3digitalplatforms(EnterpriseFullLifecycleServicePlatform,CollaborativeE?ciencyPlatform,andRiskControlandComplianceSupervisionIntegrationPlatform)1datafoundationNscenarios

“1314N”DigitalToolBox

3Customer-facingtools(CaitongAPP,InstitutionalAPP,

InstitutionalPCTools)

1Employeebusinessdevelopmenttool(Zhanzhao)

4Managementtools(Yuangongbao,Jiyoubao,“OneNetworkforSupervision,”StrategicCommandSystem)

N

NBusinesstools

1Datafoundation

SecuritiesCo.,Ltd.

InvestorComplaintHandlingSystemofCaitongSecuritiesCo.,Ltd.,

Social: Riding the Tide of Progress to Nourish All Industries

CustomerFirstInquiryResponsibilityManagementMeasuresofCaitong

TheCompany?rmlyimplementsthenewdevelopmentphilosophyof“innovation,coordination,green,openness,andsharing,”aimingtocreatea“reliable,secure,andconsiderate”serviceexperience,therebyimprovingservicequalityandestablishingagoodservicereputation.

2024SustainabilityReport

DigitalCapabilityBuildingTheCompanyplacesahighemphasisontheconstructionofdigitalcapabilities.Throughcomprehensiveemployeetraining,interdisciplinarytalenttraining,categorizedandtieredtraining,andspecializedtraining,theCompanyaimstoenhanceemployees'digitalskillsandcollectivelypromotethecomprehensiveimplementationofdigitaltransformation.

CaitongSecuritiesDigitalCapabilityBuildingInitiativesComprehensiveTraining

In2024,atotalof6trainingsessionswereheldforallemployeesinthetechnologysector,coveringtopicssuchasemergencyresponsetocybersecurityincidents,digitalupgradesinthesecuritiesindustry,andAIplatformconstructionandapplications.Thisfurtherenhancesemployees'businessskillsandtechnicalcapabilities.“Technical+Business”interdisciplinarytrainingwasconductedinconjunctionwithactualworktaskstohelpemployeescontinuouslyimprovetheirprofessionalskillsandunderstandingofthebusinessthroughpracticalcasestudies.Atotalof14interdisciplinarytalenttrainingsessionswereheldin2024,coveringcontentsuchasmicroservices,theRetailCustomerIntegratedSharingPlatform,andprivateequitytechnologyservicesolutions.InterdisciplinaryTalentTraining

In2024,comprehensivetrainingwasconductedforteamleadersandkeypersonnelinthetechnologysector,lasting6months.Duringthisperiod,therewereatotalof6intensivestudysessions,2researchlearningsessions,and1team-buildingactivity.

CategorizedandTieredTraining

GovernanceStructureTheCompanyiscommittedtodeepeningtheimplementationofthedigitalreformadvancementcommittee'soperationalmechanism.Thiscommitteeservesastheleadingbodyfordigitalwork,withtheCompany’sPartySecretaryandChairmanservingastheChairpersonandGeneralManagerandtheleaderinchargeof?nancialtechnologyservingasViceChairpersons,responsibleforcoordinatingandpromotingtheCompany'sdigitalconstructione?orts.In2024,theCompanywillfurtheroptimizeITgovernance,datagovernance,andotheroperationalmechanisms,andreviseandimprovemultipledigital-relatedmanagementsystems,includingtheITGovernanceMeasuresandtheDataGovernanceMeasures.

DigitalFinancialStrategy

DigitalFinancialAchievementsTheCompanycontinuestostrengthenitsleadershipin?nancialtechnologyinnovation,deepeningtheinnovative?nancialservicemodelsandproducts.In2024,underthethemeof“DigitalandIntelligentCaitong:TransformationtowardsRenewal,”theCompanywillreleasethefourthbatchof6iconicapplicationresults,whichincludetheRetailCustomerIntegratedSharingPlatform“CustomerNetwork,”theUni?edManagementPlatformforDigitalInvestmentBanking“InvestmentBank+,”theDigitalOperationSystem“Wukong,”“DigitalFinance,”theFixedIncome+StrategySupermarket“Smart+,”and“Yongyiqi.”Atthesametime,weareactivelylayingoutapplicationsforlargeAImodels.Theself-developed“CaiXiaozhi”hasachievedmultipleapplicationscenarios,includingintelligentknowledgeretrievalandintelligento?cefunctionalities.The?nancialindustrystandarddraftedbytheCompany,DataElementStandardsforSecuritiesandFuturesBusinessDomains?Part1:SecuritiesCompanies,waso?ciallyestablishedbytheSecuritiesStandardizationCommitteeinApril2024,markingthe?rstindustryoutputofthedigitalreform“CaitongStandard.”

ThesecondDataInnovationCompetitionwasheld,duringwhich2specializedtrainingsessionswereconductedtopromotetheuseofself-serviceanalysistools,encouragingemployeestoe?ectivelyandindependently“makeuseofdata.”SpecializedTraining

“AI*(1+4+N)”DigitalandIntelligentCaitongInnovationSystem

5655

AImulti-modellocalizeddeploymentandapplicationsupporttoleverageamultipliere?ectl1DigitalandintelligentCaitongbrain

4Platforms(CustomerComprehensiveServicePlatform,EmployeeComprehensiveServicePlatform,IntegratedCommandandManagementPlatform,andEcologicalPartnerCollaborationPlatform)

NNApplicationscenariosandlandmarkapplicationresults

“AI*(1+4+N)”DigitalandIntelligentCaitongInnovationSystem

TheCompanycontinuestoadvancetheconstructionplanningof“DigitalandIntelligentCaitong,”promotingthedevelopmentdirectionsof“SolidFoundation,”“Breakthrough,”and“SuperIntegration”todrivethedeepintegrationoftechnologyandbusiness,therebycomprehensivelyempoweringtheCompany’shigh-qualitydevelopment.Tofurtherpromotetheestablishmentofa?rst-classdigitally-drivenbrokerage,bytheendof2024,theCompanywillinitiateplanstobuildan“AI*(1+4+N)”DigitalandIntelligentCaitonginnovationsystem,withacleargoalofleveragingAItopropelsigni?cantreformsinreshapingthecustomeroperationsystemwitha“customer-centric”focus,ensuringe?ectiveimplementationandresults.

ITGovernanceMeasuresandtheDataGovernanceMeasures.

AImulti-modellocalizeddeploymentandapplicationsupporttoleverageamultipliere?ect

AI

Social: Riding the Tide of Progress to Nourish All Industries

2024SustainabilityReport

Empowering Employee Growth

ProtectingEmployeeRightsTheCompanyadherestofundamentallawsandregulationssuchasthe","the"LaborLawofthePeople'sRepublicofChinaLaborContractLawofthePeople'sRepublicofChinaLawofthePeople’sRepublicofChinaontheProtectionofWomen’sRightsand,"theInterests,the"RegulationsontheProhibitionofChildLabor."andWearecommittedtocreatinganequitableandhigh-qualitywork

environmentforemployees,ensuringthateveryemployeehasfaircareeropportunities.Wehaveestablishedarigorousandcomprehensiveemploymentsystemandanequalemploymentprotectionframework,achievinga100%signingrateforlaborcontractsanda100%coveragerateforsocialinsurance.

InvestorEducationTheCompanyactivelyengagesininvestoreducation,leadingwiththecomprehensiveinvestoreducationbrandactivity“CaitongPathtoFinancialManagement”andfocusingonthecorethemeof“Entering100Schools,Connectingwith1,000Enterprises,andReaching10,000Homes.”Throughadualinteractionmodelof“invitingin”and“goingout,”wecontinuouslydeepenandexpandtheconnotationsandextensionsofinvestoreducation,e?ectivelyenhancingitsimportantroleinpromotingcommonprosperityandprotectinginvestors'legitimaterightsandinterests.

Case

CaitongSecuritiesInvestorEducationBaseHosts“Focusingon‘FiveKeyAreas?of?nance’,InvestorEducationAidsinBuildingaFinancialPower”SpecialtyInvestorEducationMarketActivityinZhejiangOnAugust22,2024,theCaitongSecuritiesInvestorEducationBase,incollaborationwithinstitutionssuchasCailianPress,organizedaspecialtyinvestoreducationmarketactivityatXiaohePark,themed“Focusingon‘FiveKeyAreas"of?nance’,InvestorEducationAidsinBuildingaFinancialPower.”Theeventaimedtopromoteknowledgeofgreen?nance,establishconceptsofsustainabledevelopment,supportthenation’slow-carbontransition,andcontributetotheconstructionofabeautifulChina.

“ServingInvestors,SharingHighQuality”InvestorServiceWeekActivityOntheafternoonofJune19,2024,athemedlecturetitled“ServingInvestors,SharingHighQuality”washeldattheCaitongSecuritiesXinchangJiangbinWestRoadBranch.ProfessionallecturersfromtheShanghaiStockExchangeandCaitongSecuritiesengagedinface-to-facediscussionswithoverthirtyinvestorstodisseminate?nancialknowledgeandlistentoinvestors’voices.ThroughinterpretationsofChina's"NewNineGuidelines”andintroductionstoinvestorrightsprotectionsystems,theeventaimedtoestablishtheconceptofvalueinvestingforinvestorsandencouragethemtoprotecttheirinvestmentrightsthroughlegalmeans.In2024

Case

TheCompanyconsistentlyviewsemployeesasitsmostvaluableasset.Byfullysafeguardingemployeerightsandprovidingdiversepathwaysfordevelopment,wecreateapositive,vibrant,andinclusiveworkenvironment.ThissupportsemployeesinrealizingtheirpersonalvalueandinjectsstrongimpetusintotheCompany’scontinuousinnovationandsteadydevelopment.

Weheldatotalofvariousinvestoreducationactivitiesandcreatedoriginalinvestoreducationproducts.2,2323,188Overnewsreportswerepublishedacrossvariousmediaplatforms,bene?tingmorethanmillioninvestors.2,00060

LaborLawofthePeople'sRepublicofChinaLabor

Social: Riding the Tide of Progress to Nourish All Industries

ContractLawofthePeople'sRepublicofChinaLawofthePeople’sRepublicofChinaontheProtectionofWomen’sRightsandInterests,the"RegulationsontheProhibitionofChildLabor."

2024SustainabilityReport

In2024EmployeeRights

KeyAreasOurPrinciples

Setcompensationbasedonmarketlevels,withperformanceevaluationsandvaluecontributionsasatotalguidingdistribution.Timelyandfullypaythe?vesocialinsurancesandonehousingfund.CompensationandInsurance

Enhanceemployeehealthcheckstandardsandoptimizetheusageperiodforannualleave.Providesupplementalmedicalinsurance,corporateannuityplans,andotheradditionalbene?ts.Employeesenjoyvarioustypesofleavebene?tsasmandatedbythestate,includingstatutoryholidays,annualleave,familyvisitleave,sickleave,marriageleave,maternityandpaternalleave,bereavementleave,andpersonalleave.Organizevariousculturalandsportsactivitiestoenrichemployees'dailyworkandlife.Bene?ts

Promotedemocraticmanagementthroughtheemployeerepresentatives'assemblysystem.Establishlaborunionorganizationstoprotectemployeerights.DemocraticManagement

DiverseEmployment

CaseCaitongAssetManagementAwarded?2024NFutureMostPreferredEmployerbyCollegeStudents?CaitongAssetManagementhasconsistentlyfocusedonempoweringhighereducationtalentdevelopment,broadeningstudents’understandingandperspectivein?nance,andpromotingstudentemployment.TheCompanyactivelycontributestothecultivationof?nancialtalentwithboththeoreticalandpracticalskillsinuniversities,embodyingitssocialresponsibilityasa?nancialinstitutiontoachievethegoalofbuildingastrong?nancialnation.Lookingback,CaitongAssetManagementhasalsobeenawardedthe"CampusRecruitmentRisingStarAward"bytheAntaiCollegeofEconomicsandManagementatShanghaiJiaoTongUniversity,the"PotentialEmployerAward"bytheHSBCBusinessSchoolofPekingUniversity,andthe"NewRecruitmentCollaborationAward"bytheSchoolofManagementatFudanUniversity.Additionally,theCompanyhassignedinternshipandpracticaltrainingagreementswithuniversitiessuchastheSchoolofFinanceatShanghaiUniversityofFinanceandEconomics,demonstratingtheongoingrecognitionandencouragementfromsociety,universities,andstudentstowardsCaitongAssetManagement.

TheCompanyhasestablishedtheEmployeeRecruitmentandEmploymentManagementMeasuresofCaitongSecuritiesCo.,Ltd.,adheringtotheprinciplesofequality,openness,inclusivity,anddiversityinrecruitment.Werespectthebasichumanrightsofemployeesandthevalues,personalities,andprivacyofemployeesfromdi?erentculturalbackgrounds.Westrictlyprohibitanyformofdiscriminationbasedongender,race,ethnicity,andotherfactors,andresolutelyeliminatetheemploymentofchildlaborandanyformofforcedlabor.Werigorouslyverifyemployeeidentitiesandregularlymonitorandassesslaborintensityandhumanrightssystems.Duringthereportingperiod,theCompanydidnotencounteranylawsuitsrelatedtoemploymentanddidnotexperienceanyincidentsofforcedlaborortheuseofchildlabor.Complywithlaws,regulations,andrelevantcompanypolicies,standardizingemployeehiringandresignationprocesses.Engageinequalnegotiationswithallemployeesandsignlaborcontractsinaccordancewiththelaw.Strictlyverifyemployeeidentitiestoeliminatetherecruitmentofchildlabor.Regularlymonitorlaborintensityandprohibitforcedlabor.

Firmlyopposeemploymentdiscrimination,ensuringthatemployeerecruitmentandcareerdevelopmentarenota?ectedbyrace,belief,gender,religion,nationality,ethnicity,age,maritalstatus,healthcondition,socialstatus,oranyotherfactors.

Social: Riding the Tide of Progress to Nourish All Industries

EmployeeRecruitmentandEmploymentManagementMeasuresofCaitongSecuritiesCo.,Ltd.,

LaborContractSigningRate:%100FemaleManagers:53NumberofEthnicMinorityEmployees:85Veterans:31OverseasEmployees(includingHongKong,Macau,andTaiwan):59

ThetotalnumberofemployeesintheCompanywas，with4,798504newemployees.

2024SustainabilityReport

KeyAreasOurActionsandAchievements

Establishedacomprehensiveemployeecompensationmanagementsystem,creatingstandardizedande?ectiveincentivemechanisms:revisedandimplementedtheemployeelevelandcompensationmanagementmeasuresforstandardizedmanagementofemployeecompensation.Establishedadynamicadjustmentmechanismforcompensationlevels,whichadjustssalariesbasedonchangesinemployeelevel,performanceevaluationresults,andjobvaluecontributions,e?ectivelyincentivizinghigh-performingemployees.Builtacapability-centeredMDlevelmanagementsystemtoexpandemployees'careerdevelopmentpaths:alignedwithtalentdevelopmentstrategies,referencedadvancedpracticesintheindustry,andformedanMDlevelsystemthatcomprehensivelycoversvariouslinesbasedoncapabilityandperformance.

Graduallyestablishedascienti?callye?ectiveemployeeperformanceevaluationsystemorientedtowardshighperformance:developeddetailedimplementationrulesforemployeeperformanceevaluations,continuouslystrengtheningthemanagementoftheperformanceevaluationprocessandapplicationofresults.

CompensationandIncentiveMechanismTheCompanyhasestablishedacomprehensiveemployeecompensationmanagementsystem,creatingastandardizedande?ectiveincentivemechanism.Itnotonlystrictlyimplementsfullcoverageofthe?vesocialinsurancesandonehousingfundforallemployeesinaccordancewiththelawbutalsohasestablishedasupplementarybene?tssystemthatincludesenterpriseannuitiesandsupplementalmedicalinsurance.TheCompanyconductscompensationdistributionbasedonperformanceevaluationresults,providingemployeeswithmarket-competitivecompensationpackagestoensurefairnessandincentivizationwithinthecompensationsystem.

In2024EmployeeCommunication

TheCompanyhasestablishedaregularmechanismforcollecting,reviewing,processing,andimplementingproposalsfromtheemployeerepresentativecongress,creatingasmoothcommunicationchannelforemployees.Ithassetupadual-channelfeedbacksystemconsistingofan"o?inepetitiono?ce+onlinesuggestionbox"tofacilitatetwo-waycommunication.

OccupationalHealthandSafetyTheCompanyhasalwaysplacedgreatimportanceonemployeeoccupationalhealthandsafetyandthepreventionofoccupationaldiseases,continuallyenhancingtheemployeehealthprotectionsystem.Inrecentyears,theCompanyhascontinuouslyconductedprojectsafetyproductionkicko?ceremoniesandtraining,organized?resafetydrills,summertyphoonand?oodingdrills,andperformedself-inspectionandidenti?cationofsafetyhazardsinprojects.TheCompanyensuresmedicalemergencyplansforthebuildingbypurchasingAEDs,medicalstretchers,andothermedicalsupportfacilitiesandequipment,creatingacaringandsecureworkingenvironment.

FireDrillImplementation

EmployeeCompensationManagementSystem

MDLevelManagementSystem

EmployeePerformanceEvaluation

System

Atotalofemployeerepresentativemeetingswereheld,reviewingpolicies,35andtheemployeesatisfactionratereached%.96.8

Social: Riding the Tide of Progress to Nourish All Industries

2024SustainabilityReport

TalentDevelopment

TheCompanycontinuouslydevelopsacomprehensivetalentcultivationsystemthatincludesPartyandgovernmenteducation,talenttiers,andbusinessempowerment,inaccordancewithstrategicandbusinessdevelopmentneeds.TheCompanyencouragesemployeestoparticipateinindustrycerti?cationexams,professionaltrainingcourses,anddegreeadvancement,providingreimbursementforexamfeesandsupportforstudytime.TheCompanyemphasizestheenhancementofthequalityandscaleofspecializedtalentandvigorouslypromotesthevaluesofrespecting,uniting,andservingtalent.A“1+N”trainingmanagementmodelhasbeenestablished,supportedbyatrainingsystem,ateachingteam,atrainingbase,adigitalplatform,asetoftrainingcourses,andmultipletrainingimplementationentities,achievingadual-drivenapproachfortalenttiersandbusinessdevelopment.Inresponsetothedi?erentlevels,developmentgoals,andstage-speci?ccapabilityrequirementsofemployees,theCompanyconductsemployeetraininganddevelopmentthroughvariousmeans,includingthematictraining,jobrotation,andmutualassignment.In2024,theCompany'sinnovativeinitiativeforcadredevelopment,titled“BoundlessPositions,TalentAcrossAllDirections—TheCadreLearningProjectwithMutualAssignmentsbetweenCaitongSecuritiesandTaizhouCity,”wasrecognizedasthebestinnovativecaseintalentworkinZhejiangProvince,creatingagovernment-enterprisetalentexchangemodelwithunique“Caitongcharacteristics.”In2024,asoneoftheCompany'sannual“ThreePracticalThings,”theemployeetrainingworkshopwascompleted.Thetrainingroomfeatureseightmajorfunctions,includingculturaldisplay,demonstrationtraining,simulation(practical)exercises,andtrainingexperienceexchange.ItissettobecomeaplatformforbuildingalearningorganizationwithintheCompany,abaseforemployeedemonstrationtrainingprojects,andafoundationfordevelopingaprofessionalteachingteam.

“TalentGatheringNavigation”TrainingClassEmployeeTrainingWorkshopO?ciallyInaugurated

SupportingEmployeeDevelopmentTheCompanyplacesahighvalueontalentandconductsmulti-tiertrainingtailoredtodi?erentemployees,continuouslyimprovingthetrainingsystemandinnovatingmethodstoprovidediversegrowthpathways,therebysupportingtheCompany'ssustainablehigh-qualitydevelopment.

CareerAdvancementGuidedbythestrategyofstrengtheningtheCompanythroughtalent,theCompanyiscommittedtoadvancingtalentinventorye?ortsandreinforcingtalentreserves.The“GatherTalent8090”planiscontinuouslypromoted,andin-depthcapabilityandqualitysurveysareconducted.Througharigorousevaluationprocess,personalizedpro?lesaredynamicallyestablishedforeachemployee,enablingprecise“portraits”anddistinctive“labels”tobecreatedforeachindividual,withdetailedinformationrecordedinapersonaldatabase.Utilizingdigitaltools,theCompanyaccuratelytrackstalentanalytics,e?ectivelyrevitalizesexistingtalentresources,furtheroptimizesthehumanresourceallocationstructure,andensurestherightpersonisintherightpositiontomaximizetheirpotential,therebylayingasolidtalentfoundationfortheCompany’slong-termdevelopment.

In2024,theCompanycontinuedtooptimizeemployeehealthcareinitiatives,enrichingthecafeteriamenuandmeticulouslycreatingagym,employeelounge,andnursingroom,aswellascollaboratingwitha“AAA”hospitaltoestablishacompanyclinic.The“1+X”physicalexaminationmodelwasestablishedtomeetthediverseneedsofemployeesregardinghealthcheck-upitems.Foremployeesaged45andabove,anoptionfor“painlessgastrointestinalendoscopy”wasaddedtotheexaminationchoices,continuouslyenhancingemployeesatisfaction.

EmployeeHealthCheck-upCoverageRate:%100NumberofWork-RelatedInjuryIncidents:0

EmployeeOccupationalHealthRecordCoverageRate:%100NumberofEmployeesWhoDiedDuetoWork-RelatedInjuries:0

Social: Riding the Tide of Progress to Nourish All Industries

Dual-DrivenApproachofTiersvs.Business:Creatingthe"GatherTalent"SeriesTalentGatheringinInvestmentBankingLeadingClass

EmployeeTrainingStudio

Course Support Teaching Support System Support Platform Support

Conductingstrategiclearningandsupportingsub-seriestrainingfocusedonbusinessprioritiestofosterthedevelopmentofthethreepillars.

TalentGatheringinInvestmentResearch

TalentGatheringinWealthManagement

TalentGatheringinServicesTalentGatheringNavigation

Helmsman

TrainingofResponsiblePersonnelSteadyRunClassSeaEagle

TrainingofManagementTalentTiersTalentGatheringLeapTalentGatheringGrowth

FastTrackClass,StartClass

BreakingWaves,SettingSailTrainingofMid-LevelandJuniorWealthAdvisors.TrainingofSeniorWealthAdvisors,

2024SustainabilityReport

Industry-AcademiaCollaborationTheCompanycontinuallydeepensitsstrategicpartnershipswithwell-knownuniversitiesbothwithinandoutsidetheprovince,strengthenscollaborationtocreateinternshipbases,andexploresnewmodelsfortalentcultivationthatcombineindustryandeducation,co-buildbetweenuniversitiesandenterprises,andpromotecoordinateddevelopment.

EnhancingEmployeeBelonging

TheCompanyplacesgreatimportanceonenhancingemployees'senseofbelonging.Itlegallyestablishesasetofbene?tssystemthatincludes?vesocialinsurancesandonehousingfund,aswellaspaidleave.TheCompanyactivelyorganizesvariousculturalactivities,assistanceforthoseindi?culty,andmentalhealthcareprogramstostrengthencohesionandteamworkamongemployees,continuallyimprovingtheirsenseofgain,happiness,andbelonging.

EmployeeCareandSupportTheCompanycontinuouslypromotestheconstructionofthe“ThreePracticalThings”culturalbrand,carefullysolicitingande?ectivelyimplementingthese“ThreePracticalThings”eachyear.Startingfromtheactualneedsofemployees,theCompanyaddressesthemostpressingandchallengingissuesthatemployeesvoicetheloudest,coveringmultipledimensionssuchasoptimizingtheworkenvironment,enhancingthequalityoflife,andsupportingcareerdevelopment.ThisallowsemployeestogenuinelyfeelthewarmthandimportancetheCompanyplacesonthem,nurturingtheconceptof“home”withintheCompany.

EnrichingEmployees’SpiritualLifeWiththecorporatespiritof“Upholdingintegrityandharmonyinpursuitofdreams”atitscore,theCompanycontinuestocarryoutdiverseemployeeactivities,formingmorethantenunionactivitygroups.Itactivelyorganizescollectiveactivitiessuchasfunsportsevents,outdoorteam-building,culturallectures,andartexhibitions,e?ectivelypromotingteamworkandthephysicalandmentalwell-beingofemployees.Additionally,wecontinuetocreateourownfestival,“CaitongDay,”establishinginterdepartmentalcommunicationlinksthroughaseriesofqualityculturalactivities,enhancingemployees’senseofbelongingandteamcohesion,andcultivatingapositiveandaspirationalcorporateculture.

Young core employees are selected through voluntary registration, departmental selection, assessments, andinterviews. They develop nine key competencies through concentrated training, mentor guidance, and on-the-jobpractice. A fair and impartial assessment mechanism is established to allow outstanding talent to stand out.CultivationofYoungTalentsKeyAreasOurActionsandAchievements

A comprehensive institutional foundation is established, including a training organizational system, trainingcontent system, training assignment standards, and training execution norms, to deepen the overall managementmechanism for talent cultivation. The Company continuously updates and optimizes training courses based onbusiness development needs, covering various aspects such as professional knowledge, management abilities, andoverall quality to meet the growth needs of employees at di?erent stages.“TalentGathering”SeriesTrainingDigitalTrainingPlatformDevelopment2024EmployeeTrainingOverview

In2024,CaitongSecuritieswasawardedthe“CSTDNationalFinalsLighthouseAwardforCorporateLearningDesignCompetition”andthe“Talent-DrivenEnterpriseEngineeringBrandLearningProjectAward,”twoprestigiousaccoladesinthetrainingindustry.TheLighthouseEnterpriseAwardforTalentDevelopmentisorganizedbyCSTD,aleadingtalentdevelopmentserviceplatforminChina.Thisinitiativetargetsoutstandingcompaniesinthe?eldoftalentdevelopmentandestablishesbenchmarksandexamplesinareassuchasconceptandmethodinnovation,modelinnovation,andorganizationalcapabilitybyevaluatingthevalueoftalentdevelopmentoutcomes,thusilluminatingthepathfortalentdevelopment.

CaseCaitongSecuritiesWinsTrainingIndustryAwards

CaseCaitongSecuritiesHolds?TalentGatheringatCaitong?UniversityOpenDayEvent

OnDecember18th,CaitongSecuritiespartneredwiththeSchoolofEconomicsatZhejiangUniversitytoholdthe?TalentGatheringatCaitong?OpenDayandPartyBuildingActivity.Adelegationof23facultyandstudentsfromtheGraduatePartyBranchoftheDepartmentofFinanceandtheundergraduatePartyBranchoftheFinance(ExperimentalClass)visitedtheCompany,engagingindiscussionsandexchangesontopicssuchascapitalmarketsummariesandoutlooks,aswellascareerdevelopment.Thiseventnotonlyprovidedaplatformforfacultyandstudentstogainanin-depthunderstandingoftheCompany?sworkenvironmentandculturebutalsoe?ectivelypromotedinteractionandcommunicationbetweentheuniversityandtheenterprise,positivelycontributingtothedeepeningofschool-enterprisecooperation.

DuringthereportingperiodTheCompanyassistednearly40individualsinneed,withatotalreliefamountofCNY90,000;throughouttheyear,ito?eredcondolencestomembersfacingmarriage,childbirth,illness,bereavement,andretirement,withover500visitsandatotalcondolenceamountofCNY300,000.

Leveraging digital advantages, we promote the development of specialized courses and the deployment ofteaching resources, completing an online course system to provide employees with convenient and e?cientlearning chann

2024SustainabilityReportSocial: Riding the Tide of Progress to Nourish All Industries

Total number of employees trained

4,212

Employee training coverage rate

%

Total training hours537,656hours

Average training hours per employee

hours

127.65

NumberofgrassrootsemployeestrainedNumberofmiddlemanagementemployeestrainedNumberofseniormanagementemployeestrained

EmployeeTrainingOverviewNumber

4,027

TotaltraininghoursforgrassrootsemployeesTotaltraininghoursformiddlemanagementemployeesTotaltraininghoursforseniormanagement

499,19737,2191,240

EmployeeTrainingOverviewhours

TheCompanyhasalwaysuphelditsoriginalintentionforpublicwelfare,fullyleveragingitsprofessionaladvantagestoactivelyrespondtonationalstrategiccalls.Itcontinuouslypromotesruralrevitalizationandcharitableactions,relyingonthe"KeepingGoodnessinHeart"publicwelfarebrandforsystematicandstandardizedoperations.TheCompanygatherspublicwelfaree?ortsfromallsectorsofsociety,turningsmallactsofkindnessintogreatlovethatbene?tssociety,therebyembodyingthemissionofstate-ownedenterprisesthroughconcreteactions.In2024,theCompanyimplemented?nancialpovertyalleviation,industrialpovertyalleviation,educationalpovertyalleviation,andpublicwelfarepovertyalleviationinitiatives,aswellasconducted"PartyBuilding+Finance"empowermenttrainingsessions,bene?tingruralo?cials,leadersinruralrevitalization,ruralchildren,andvulnerablegroupssuchastheelderlyanddisabled,withatotalofover20,000bene?ciaries.

Enthusiasm for Social Welfare

In2024

ContributingtoRuralRevitalizationTheCompanyactivelypracticesthenationalstrategyofservingthecountrythrough?nanceandsupportingruralrevitalization,upholdingthesenseofsocialresponsibilitytoalleviatenationalconcernsandpromotepublicwelfare.Itaimstoconsolidatepovertyalleviationresultsandexpandserviceareas.In2024,atotalofCNY5.623millionwasinvestedinruralrevitalizationassistance.

ThemeFoodEvent:“HarmoniousCaitong,EnsuringGoodFortune”DragonChantingandBlessing:CaitongCalligraphyActivity

ADoubleNinthFestivalfellowshipeventforSeniorEmployeesandRetiredVeterans

CaitongSecuritiesLaunchesFinancialEmpowermentTrainingProgramIn2024,theCompanypartneredwithZhejiangUniversitytoconducttheeighthsessionofthe"PartyBuilding+Finance"empowermenttrainingprogram.Thisinitiativeaimstoenhancethe?nancialknowledgeoftheleadershipinsupportingregions,improvetheir?nancialcapabilitiesandliteracy,andcultivate"?nancialexperts"forruralrevitalization,therebyfurtherenhancingthequalityande?ectivenessof?nancialservicesinruralrevitalizatione?orts.

TheFourth“CaitongDay”EventatCaitongSecuritiesBeginsBeautifully,BringingTogetherAllCaitongSta?withFamilyandFriendsOnOctober24,thefourth“CaitongDay”themedevento?ciallylaunched,focusingonbuildinga“Four-DimensionalCaitong”andstrivingtocreatea?rst-classmoderninvestmentbank.Duringthemainforum,CaitongSecuritiesChairmanZhangQichengdeliveredakeynotespeechtitled“NewOpportunities,NewPositioning,NewBrand.”TheCulturalCarnivalinnovativelyintroducedtheCaitongCulturalMarket,showcasingproductsfromtheuniquecoastalandmountainousregions,DIYcorporateculturepaintedfans,andstunningculturalandcreativeproductsfromthe?vemajorbusinessheadquarters.AllCaitongsta?,alongwiththeirfamilyandfriends,engagedinthisevent,experiencingthecharmofChinese?nancialculture,industryculture,andCaitongculture.

ThematicActivitiesoftheFourth“CaitongDay”O?ciallyLaunch“CaitongDay”CulturalCarnival

TotalpublicwelfareassistancefundingfortheyearamountedtoCNYmillion,includingCNYmillionfor19.15285.623ruralrevitalizationandCNYmillionforsocialwelfare,representingayear-on-yearincreaseof%.13.529817

Case

Case

2024SustainabilityReportSocial: Riding the Tide of Progress to Nourish All Industries

Inresponsetothestrategyofstrengtheningthe?nancialsectorandful?llingthesocialmissionof?nancialinstitutions,CaitongSecuritiesisbringing?nancialliteracyeducationintoschoolsandactivelypromotingtheintegrationof?nancialeducationintothenationalbasiceducationsystem.Currently,wehavesuccessfullyheldaseriesofdiverseactivities,suchasprofessionallectures,studentforums,andexchangevisitsatkeynationaluniversities,includingTsinghuaUniversity,PekingUniversity,FudanUniversity,ShanghaiJiaoTongUniversity,andZhejiangUniversity,helpingstudentsenhancetheir?nancialliteracyandunderstandindustrypractices.

FinancialLiteracyEducationSocialWelfare

TheCompanyisactivelyengagedincharitableendeavors,continuouslydirectingcharitablefundstocriticalareassuchasmedicaltreatmentforpatients,theconstructionofeducationalinfrastructure,thedisseminationof?nancialknowledge,andupgradestofacilitiesinchildren'swelfareinstitutions.In2024,thetotalcharitablefundingamountedtoCNY13.5298million.

TheCompanystronglyadvocatesactiveparticipationinsocialwelfareinitiatives,encouragingemployeestobecomeacoreforcewithinlocalvolunteerteams.Throughpracticalactions,weembodyasenseofresponsibilityandcommitment,continuouslyspreadingpositiveenergyinsociety.Inourenvironmentale?orts,weactivelyengageintaskssuchastreeplantingandcleaningrivers,strivingtoprotectourgreenmountainsandclearwaters.Duringlarge-scaleeventsandactivities,weactivelyconductvolunteerpresentations,showcasingthepositiveenergyof?nance.Duringthereportingperiod,theCompanyhadatotalof1,660participantsinpublicserviceactivities.

PromotingCommunityVolunteering

Social: Riding the Tide of Progress to Nourish All Industries

CaitongSecuritiesConductsCharitableDonationActivityintheAksuRegionofXinjiangInSeptember2024,ZhangQicheng,theChairmanofCaitongSecurities,ledateamtoYongawatVillageinWushiCountytoconductaprojectdonation.Thefundswillbeusedforgrassrootsorganizationaldevelopment,aimingtocreatearicherandmorecolorfulgrowthenvironmentforthechildreninthewelfareinstitution.

Case“TogetherLearningIdeologies,YouthVolunteersLeadingtheWay”LeiFengVolunteeringActivityOnMarch1,2024,theCompanyorganizedspeakerstopresentdirectlytotravelersandyouthgroupmembersintheterminal.Thisinitiativeaimedtoconsolidateandexpandtheeducationalachievementsofgroupmembersandyoungpeople,furtherenhancingtheessenceof"ZhejiangEnterprisesYouth:LoveforLearning"and"YouthVolunteerRed."

Case“CareerPath”PracticalFinancialClassEntersUniversitiesStartingin2023,CaitongAssetManagement,incollaborationwithCaitongSecuritiesResearchInstitute,launchedthe“CareerPath”seriesof?nancialpracticecourses,beginningwithZhejiangUniversity.Asoftheendof2024,14classeshavebeencompleted.The“CareerPath”classinvitesseniorpersonnelfromvariousbusinesslinestoshareinsightsonindustrytrends,establishedresearchframeworks,andpracticalbusinesscases.Thisintegratesinvestmenteducationknowledgewithjob-seekingpractices,creatinganimmersive,interactiveclassroomenvironmentthatcombinestheorywithpractice.Thegoalistodevelopaneducationalmodelthatdeeplyintegratestheseaspectsandtoempoweruniversitystudents,nurturingoutstanding?nancialtalentasalong-termcommitment.

Case

2024SustainabilityReport

Harmonious Coexistence,Building Dreams Together,Revitalizing Life

Asastate-ownedlisted?nancialinstitution,CaitongSecuritiesiscommittedtoimplementingthenewdevelopmentconceptanddiligentlyworkingongreen?nanceinitiatives.Weguidethetransitionofindustrialandenergystructurestowardsgreenandlow-carbonpracticesthroughcapitalallocation,activelyexploringnewpathwaystoachievethenational“DualCarbon”goals.Wehaveinnovatedgreen?nancialtoolstoaccuratelymeetthe?nancingneedsofgreenindustries,withcumulativesupportforgreenprojectsexceedingCNY6.2billion,e?ectivelypromotingthecoordinateddevelopmentofenergystructureoptimizationandecologicalprotection.Atthesametime,weemphasizewaterasourlifebloodandgreenasourfoundation.Throughgreeninitiatives,weactivelysupportprojectsrelatedtowaterresourceprotectionandclimateaction,ensuringthatecologicalbene?tsenhancepeople'slivelihoods.Wearededicatedtoprotectingclearwatersandblueskies,continuallycontributingtothestrategicgoalsof"carbonpeakandcarbonneutrality."

ThischapterstrictlyfollowstherequirementsoftheShanghaiStockExchangeListedCompanySelf-RegulatoryGuidelinesNo.14?SustainabilityReport(Trial),andspeci?callycorrespondstoChapter3oftheguidelinedocument,titled“DisclosureofEnvironmentalInformation.”Thecontentofthischapter

willcomprehensivelycoverallsubsectionsunderthischapter,namelySection1“AddressingClimateChange,”Section2“PollutionPreventionandEcosystemProtection,”andSection3“ResourceUtilizationandCircularEconomy,”providingdetaileddiscussionandanalysisforeachsubsection.

ThischaptercontributestotheUnitedNationsSustainableDevelopmentGoals(SDGs)

E

Environmental

ShanghaiStockExchangeListedCompanySelf-RegulatoryGuidelinesNo.14?SustainabilityReport(Trial)

2024SustainabilityReport

Environmental: Harmonious Coexistence,Building Dreams Together, Revitalizing Life

TheCompanystrictlyadherestotheInternationalSustainabilityStandardsBoard(ISSB)IFRSS2framework,comprehensivelyconstructingaclimateriskmanagementsystemthatencompassesgovernance,strategy,riskmanagement,andmetricsandtargets.Itaccuratelyidenti?esandaddressesclimaterisksinitsoperationswhileseizingopportunitiesrelatedtoenvironmentalrisks.

AddressingClimateChange

ClimateChangeGovernanceTheCompanyhasestablishedarelativelycomprehensivegovernancestructuretoaddressclimatechange.Theboardofdirectorsisfullyresponsibleforoverseeingclimaterisksandstrengtheningtheregulatorysupervisionofclimateriskmanagement.Theboard'sstrategyandESGcommitteebearsoverallresponsibilityfortheCompany’sclimateriskmanagement,reviewingandapprovingtheclimateriskmanagementstrategy,objectives,risksandopportunities,actionplans,andothersigni?cantdecisionsannually,withaparticularfocusonproposalsrelatedtoclimatechange.TheESGworkinggroupconsistsofmembersfromvariousinternaldepartmentsandsubsidiaries,responsibleforimplementinge?ectivemeasurestomitigateclimaterisksfacedbytheCompany,seizinggreendevelopmentopportunities,activelycommunicatingwithstakeholders,andcoordinatinge?ortstopromotetheimplementationofclimateaction.ClimateChangeStrategyTheCompanyintegratesclimatechange-relatedrisksandopportunitiesintoitsoveralldevelopmentstrategy,developingandexecutingshort-term,medium-term,andlong-termplans.ItactivelyworkstoreduceGHGemissionsinitsoperationsandgraduallypromotesthelow-carbontransitionofinvestmentand?nancingentitiesin?nancialactivities,contributingpositivelytothenational"DualCarbon"goalsandglobalclimategovernance.

Integrateclimate-relatedriskscomprehensivelyintotheexistingriskmanagementsystemoftheCompany.Developdetailedclimateriskassessmentstandardsandprocessestoensurethatclimatefactorsarefullyconsideredinprojectassessmentsandinvestmentdecisions.Increasethedevelopmentofproductssuchasgreenbondsandgreenloanstoprovidemoreconvenient?nancingchannelsforenvironmentalprotectionandcleanenergyprojects.Implementenergy-savingandemission-reductionmeasuresthroughouttheCompany,suchasoptimizingtheenergymanagementsystemofo?cebuildings,promotingpaperlesso?ces,andencouragingemployeestousepublictransportation,therebyreducingtheCompany’sGHGemissions.

Increaseinvestmentsingreensectorssuchasrenewableenergyandenergyconservation,graduallyraisingtheproportionofgreeninvestmentprojectsintheCompany’stotalinvestments,andsupportingmorelong-termdevelopmentpotentialgreentechnologyinnovationenterprises.DeepenGreenInvestmentLayout

Medium-termActions(3-5Years)

EnhanceESGInformation

Disclosure

AccordingtointernationalstandardssuchasTCFD,furtherimprovethequalityandtransparencyoftheclimatechangesectionintheCompany'ssustainabilityreports.Disclosedetailedinformationonclimaterisks,emissionreductiontargets,andprogressonactions,enhancingthetrustofinvestorsandvariousstakeholders.

ConductInternationalCooperationandExchange

Long-termActions(5+Years)

EstablishLong-termClimateGoalAssessmentandAdjustmentMechanism

RegularlyreviewandassesstheCompany’slong-termgoalsforaddressingclimatechange.Adjuststrategiesandactionplansinatimelymannerbasedonglobalclimateconditions,policychanges,andmarketdevelopments,ensuringtheCompanymaintainstherightdirectioninitslong-termjourneytocombatclimatechange.Impact,Risk,andOpportunityManagementTheCompanyidenti?esclimatechange-relatedrisksandopportunitiesbasedonitsbusinessdevelopmentandstrategicplans,incorporatingexpertopinions,andconstructsascienti?cmatrixforrisksandopportunities.

AnalysisofClimate-RelatedRisksandOpportunities

ReferencingtheInternationalFinancialReportingStandardsFoundation(IFRS)framework,SustainabilityDisclosureStandards2-Climate-relatedDisclosuresS2,andcombiningclimate-relatedpolicies,businessdevelopmentstatus,andindustryanalysisresults,identifyandcategorizenineopportunitiesandrisksrelatedtoclimatechange.

Identi?cation

Combinepeerbenchmarkingandexpertjudgment,andsolicitopinionsfromkeystakeholderstoconductasubstantiveassessmentfromtwodimensions:theprobabilityofoccurrenceandthepotential?nancialimpact.

Assessment

Byanalyzingthemajorclimaterisksandopportunities,aswellastheirpotential?nancialimpactsontheCompany,developpreliminaryresponsemeasurestoactivelypromotesustainableeconomicandsocialdevelopment.

Analysis

Activelyparticipateininternationalexchangesinthe?eldofgreen?nance,learnfromadvancedinternationalexperiencesandtechnologies,andenhancetheCompany'sinternationalcompetitivenessinaddressingclimatechange.

Short-termActions(1-3Years)ImproveClimateRiskManagementSystemEnhanceInnovationinGreenFinancialProductsIncreaseLow-CarbonOperationsInternally

2024SustainabilityReportEnvironmental: Harmonious Coexistence,Building Dreams Together, Revitalizing Life

Climate-RelatedRisks&Opportunities:ImpactsandMeasuresRiskDescriptionImpactDurationPotentialFinancialImpactlDecreaseinoperatingrevenueDeclineinportfoliovalue

Strategy

Declineinportfoliovalue

EducatebusinessesontheimportanceofsustainabledevelopmentthroughpracticalcasestudiesandassistinenhancingtheESGframeworkconstruction.lDecreaseinoperatingrevenuelDeclineinportfoliovalueIncreasedcreditrisklIncreasedoperatingcostsDeclineinportfoliovalue

Continuouslytrackandevaluatetheimpactofclimatechangeonthemarket.lDecreaseinoperatingrevenueDeclineinportfoliovalue

Continuouslystrengthenmanagementofclimatechange,environmental,andsocialrisks,andidentifyESGdimensions.

lIncreaseinoperatingrevenueRiseinportfoliovalue

Developgreen?nancebusinessestoprovide?nancialservicesforenergyconservation,environmentalprotection,andnewenergyindustries.Additionally,createfundsfocusedonenergyconservation,environmentalprotection,andcarbonneutralitythemes.lIncreaseinoperatingrevenuelRiseinportfoliovalue

Developgreen?nancialservicestosupportenergyconservation,environmentalprotection,andrenewableenergyindustries.

Continuousupdatestoclimate-relatedpoliciesmaysubjectclientstopenaltiesforfailingtomeetenvironmentalrequirements,leadingtodefaultrisks.

Reductioninoperatingcosts

Continuouslyraiseemployees'awarenessofenergyconservationandenvironmentalprotection,andcarryoutgreenoperationinitiativesintheworkplace.

TheCompany’sGHGemissionsprimarilyresultfromenergyconsumptionrelatedtoequipment,lighting,andthecombustionofgasolineincompanyvehiclesandemployees'personalvehicles.Wefocusonareassuchasgreen?nance,energyuse,andcarbonemissions,settingrelevantindicatorsandgoals.Byregularlycollectingandanalyzingindicatordata,wemonitorourprogressandformulatetargetedimprovementstrategiestoe?ectivelyenhanceourclimatechangemanagemente?orts.

IndicatorsandGoals

ClimateChange-RelatedGoals:Supportthe?dualcarbon?goalsandachievecarbonneutralityattheoperationallevelby2040

TotalGreenhousegasemissionsScope1GreenhousegasemissionsScope2GreenhousegasemissionsGreenhousegasemissionspercapitaNaturalgasconsumptionperunitofarea

Indicator

TonsofCO2equivalentTonsofCO2equivalentTonsofCO2equivalentTonsofCO2equivalent/person

m/m

3,712.67

143.15

3,569.52

0.98

1.50

202220232024

4,077.15

121.07

3,956.08

0.90

1.10

4,283.06

127.77

4,155.29

0.89

1.30

TheCompanycontinuouslydeepensitsfocusonESGinvestmentsandhasestablishedacomprehensivemanagementsystemfortheentireESGinvestmentprocess.IthasindependentlydevelopedanESGresearchandinvestmentsystemthatintegratesenvironmentalriskfactorsthroughoutallstagesofinvestmentdecision-making—pre-investment,duringinvestment,andpost-investment—formingaclosed-loopmanagementsystem.Thissigni?cantlyenhancestheaccuracyofgreen?nancialassetallocationandthelevelofgreen?nancialmanagement.DevelopingGreenFinance

CaitongSecurities:EnvironmentalRiskIdenti?cation,Assessment,andMonitoringProcess

TheCompanyapplieshigh-qualityESGevaluationdatatoinvestmentresearchdecisions,usingtheESGsystemtoaccuratelyidentifysocialresponsibility,corporategovernance,andenvironmentalrisksandinvestmentopportunitiesthattraditionalinvestmentanalysismethodsmayoverlook,therebyenhancingthedecision-makinge?ectivenessforinvestors.

TheESGanalysismoduleoftheCompany'sresearchandinvestmentsystemnotonlyprovidesESGscoresfortargetcompaniesbutalsoincludesrawdataforvarioussub-indicators.Throughbothhorizontalcomparisonswithintheindustryandverticalhistoricalcomparisons,amulti-dimensionalandmulti-anglecomprehensiveESGevaluationisachieved,helpinginvestorsaccuratelyidentifytheESGperformanceoftargetcompanies.

TheESGinvestmentsystemdynamicallymatchesacompany'sESGperformancewithparameterssuchas?nancialhealthandindustrygrowthpotential,selectivelyidentifyinglistedcompanieswithoutstandingESGperformanceandinvestmentpotential.TheCompanyhasdesignatedESGinvestmentanalysisspecialistsdedicatedtodeeplyembeddingESGinvestmentconceptsintotheresearchandinvestmentsystem,achievingasystematicintegrationoftheESGevaluationsystemandtheinvestmentdecision-makingprocess.

Collectenvironmental-related

issuesandrisks,andconductESGevaluations.

DuringInvestmentAnalyzeandevaluateESGresults.Monitorpublicopinionand

updateESGevaluations.

Pre-InvestmentPost-Investment

Risk/OpportunityTypePolicyandLegalRiskMarketRisk

AcutePhysicalRisk

Environmentalprotectionandlow-carbondevelopmentpoliciesmayleadtostructuralmacroeconomictransitions,a?ectingthemarketsupply-demandstructure,whichcouldhavedirectorindirect?nancialimpactsontheCompanyorincreasecreditriskduetopotentialdeclinesinclients'repaymentabilities.Extremeweatherevents,suchastyphoons,?oods,anddroughts,maya?ecttheoperationalactivitiesoftheCompany,clients,andinvestmenttargets,leadingtopropertylosses.Long-termclimatechanges,suchassustainedhightemperaturesandrisingsealevels,mayleadtoincreasedoperatingcostsanddisruptionstonormaloperationsorpropertylossesfortheCompany,clients,andinvestmenttargets.Themarket'stransitiontolow-carbonsolutionsandthegradualphasingoutoftraditionalhigh-energy-consumingtechnologiesmaya?ectthemarketvaluationofcertaininvestmenttargetsthatcannotupdatetheirtechnologiesintime.

Investorsareincreasinglyprioritizingsustainabilityinthe?nancialsector,makinggreen?nancialproductsmoreappealing.

Majordecisionstoimplementthenational"dualcarbon"strategyhaveledtothegradualintroductionofrelatedpoliciesoncarbonneutralityandclimate?nanceinvestment,guidinggreen?nancebusinessesandthemarket.

Byprovidinginvestmentand?nancing?nancialservicesforgreenindustries,increasinggreeninvestmente?orts,continuouslyexpandingthesupplyofESGandcarbonneutrality-themed?nancialproducts,andestablishingasound?nancialproductcreation,introduction,andsalessystemorientedtoward"carbonpeakandcarbonneutrality,"theCompanyaimstocreateopportunitiesforrevenuegrowth.Promote energy conservation and emission reduction byimplementing paperless o?ce practices and improvingthe e?ciency of resource usage (such as energy, water,and materials) during operations to reduce operatingcosts, which is conducive to enhancing sustainabledevelopment capabilities.

ChronicPhysicalRisk

TechnologicalRisk

MarketOpportunities

ProductsandServices

ResourceE?ciency

Short,Medium,

Short-term

Long-termShort,Medium,Long-term

Long-termMedium,

Short,

Short,Medium,Long-term

Medium,

Medium,

Medium-term

Long-term

Long-term

Preparerelevantemergencyresponseplanstoe?ectivelyreducetheimpactofextremeweatheroncompanyoperations.

IncorporateESGfactorsintoduediligence

Unit

2024SustainabilityReportEnvironmental: Harmonious Coexistence,Building Dreams Together, Revitalizing Life

TheCompanyconductsin-depthanalysesoftherelationshipsbetweenvariousbusinesslinesandnationalpoliciesongreen?nanceandtransitional?nance,achievingahighdegreeofalignmentbetweenpolicyguidanceandoperationalpractice.Thiscontinuouse?ortstrengthensthecapabilitytotranslateandimplementnationalstrategiesforgreen?nance.

EquityInvestment

KeyAreasOurActionsandAchievements

Comparedtotraditionalequityinvestment,theCompanyincorporatesresearchonenvironmental,social,andgovernance(ESG)factorsintoitsevaluationsystem.BypracticingtheESGevaluationframeworkinequityinvestments,theCompanyindirectlyengagesinmanagingenvironmental,social,andgovernanceissueswithintheinvestedcompanies,drivingthemtoenhancetheirESGmanagementstandards.

TheCompanyanalyzesthefundamentalsofenterprisesfromamedium-tolong-termperspective,identifyingcompanieswithsustainablecompetitiveadvantages,strongpro?tability,andmanagementteamsthatvalueshareholderrights.EmphasisisplacedonusingESGfactorstoidentifypotentialrisksintargetcompanies,dynamicallyadjustingESGfactorsacrossdi?erentregionsandindustries.

FixedIncomeInvestment

Inbondinvestments,theCompanypaysattentiontotheESGgovernanceperformanceofissuingcompaniesandincorporatesthisintotheassessmentofbondinvestments,e?ectivelyavoidingcompanieswithsigni?cantESGrisksanddeterioratingESGcharacteristics.

TheCompanycombinestop-downthematicresearchwithbottom-upfundamentalassessments,integratingtheESGevaluationframeworkintothefundamentalanalysisof?xedincomeinvestments.Thisisaimedatreducinginvestmentrisks,uncoveringinvestmentopportunities,andenhancingrisk-adjustedreturnsthroughESGfactoranalysis.

QuantitativeInvestment

TheCompanyappliesESGinvestmentstrategiesinthequantitativeinvestmentdomain.Whenselectingmanagersforpublicandprivatefunds,internalcontrolgovernanceandethicalrisksareincorporatedintotheevaluationofinvestmentmanagementcapabilitiesduringtheduediligenceprocess.AlternativeInvestment

Atthecorporatelevel,theCompanyexplorestheapplicationofanESGinvestmentframeworkinalternativeinvestments,includingprivateequityandrealestateinvestment.ThisisdonewhilethoroughlyimplementingnationalindustrialadjustmentpoliciesandfosteringastrongawarenessandphilosophyofESGinvestmentrisk.

GreenFinancingTheCompanyfullyimplementsgreen?nancepoliciesandregulations,leveragingthecomprehensive?nancialserviceadvantagesofthe"investmentbank+investment+wealthmanagement"modeloftheFinancialGroup.Itengagesindiversi?edbusinessessuchasequity?nancingandbond?nancingtomeetthe?nancingneedsofenterprisesforlow-carbontransformation,acceleratingthegreenupgradeprocessoftherealeconomywithfull-chain?nancialservices.

Weactivelyparticipateingreenbondunderwriting,assistingmultipleenterprisesincompletinggreenbondissuances,facilitating?nancingchannelsforenvironmentalprotectionandcleanenergyprojects,andguidingmoresocialfundstowardgreenindustries.Theunderwritingamountforgreenbondsin2024isCNY1.924billion.GreenBondUnderwritingGreenFinancingOurActionsandAchievements

Asoftheendof2024,ourassetmanagementcompanyhasissuedatotalofCNY6.231billioningreenABSproducts,coveringvarious?eldssuchasmunicipalinfrastructure,realestate,andnewenergyvehicles.GreenAssetSecuritization

Wehaveincreasedourcreditinvestmentingreenprojects,prioritizingsupportforprojectsandenterprisesthatalignwithnationalgreenindustrypolicies,providingrobust?nancialsupportforgreeneconomicdevelopment.GreenCreditInvestment

WecontinuetocollaboratewithCaiyuanTownshipinSuichangCounty,LishuiCity,ZhejiangProvince,tojointlybuildindustrialfacilitiesforthe"CommonProsperityFarm."Weintegrategreen?nanceconceptsintoruralrevitalizationpractices,providing?nancialsupportforthedevelopmentofthelocalculturalandtourismindustry,andhelpingruralareasenhancetheir"self-sustainingcapabilities."CombiningRuralRevitalizationwithGreenFinance

GreenInvestment

TheCompanyadherestothedevelopmentphilosophyof"GreenLeadstheFuture,"deeplyintegratingkeyESGfactorssuchastheenvironmentandclimatechangeintovariouscorebusinessprocesses.Weleveragecapitaltopromotethegreenupgradeofindustrialstructures.

Case

CaitongAssetManagementIssuesOverCNY1.5BillioninGreenABS,SupportingFinancingfortheNewEnergyVehicleIndustryChainInJune2024,CaitongAssetManagementissuedthe"SmartPuhuaFinancialLeasingXinghePhaseIIIAsset-BackedSpecialPlan,"withanissuancescaleexceedingCNY1.5billion.Thisasset-backedspecialplanfocuseson?nancingthenewenergyvehicleindustrychain,empoweringthedevelopmentofgreenindustriesthrough?nancialinnovation.

Duringthereportingperiod

TheCompanysuccessfullyassistedintheissuanceofgreenbondsworthCNYmillion,with425agreenbondholdingscalereachingCNYbillion.1.645

2024SustainabilityReport

Environmental: Harmonious Coexistence,Building Dreams Together, Revitalizing Life

CaseCaitongCapitalInvestsinJinGuAvatar,SupportingtheGreeningoftheAutomotiveIndustry

GreenResearchTheCompanyconductsin-depthgreenresearchandactivelyparticipatesinindustrycommunicationanddiscussions,aimingtoexploree?ectiveintegrationpointsbetweensustainabledevelopmentandenvironmentalprotection.Wehaveestablishedaspecializedgreenresearchteamthatthoroughlyanalyzesthegreenindustrychainandregularlypublishesquantitativeassessmentsofenvironmentalbene?tsandanalysesofinvestmentvaluecorrelations.In2024,wereleasedatotalof2,890researchreports,includingseveralfocusedongreendevelopmentandsustainableinvestment,suchas?GreenCerti?cate-CCERLinkageMechanismReleased,ClearlyDe?ningMarketBoundaries,??SeptemberGreenCerti?cateDataReleased,AcceleratingtheConstructionofCarbonAccountingSystems,?and?DraftCarbonMarketWorkPlansforThreeIndustriesReleasedforPublicFeedback,?providinginvestorswithaccurateandcomprehensivegreen?nancialinformationandprofessionaladvice.

TheCompanyisgroundedinthe"dualcarbon"strategyand?rmlyupholdsitsstrategicpositioningasa"pioneeringreendevelopment."Weactivelypromoteandimplementlow-carbonandenvironmentallyfriendlyoperationalmodelsandmethods,comprehensivelyadvocatingforgreenandcivilizedo?cepractices.Duringthereportingperiod,theCompanycontinuouslyoptimizeditsenergyresourceutilizationmeasures,e?ectivelyadvancingtheimplementationofenergy-savingactionstoachieveenvironmentalperformancegoals.PracticingGreenOperations

EnvironmentalManagementTheCompanyadherestorelevantlawsandregulationssuchasthe,theEnvironmentalProtectionLawofthePeople'sRepublicofChinaCircularEconomyPromotionLawofthePeople'sRepublicofChinaEnergyConservationLawofthePeople'sRepublicofChina,andthe.Respondingtothecallforcomprehensivestrengtheningofecologicalcivilizationconstruction,weintegratetheconceptofgreenandlow-carbondevelopmentintotheentireprocessofdailyoperationalmanagement,strivingtoreducetheconsumptionofnaturalresourcesandtheimpactontheenvironment.Duringthereportingperiod,theCompanydidnotexperienceanycon?rmedviolationsrelatedtoenvironmentalprotectionthathadasigni?cantimpactontheCompany.

EnergyManagementTheCompanycontinuouslyenhancesenergy-savingandconsumptionreductionmanagementinitsdailyoperations.Throughimplementingenergy-savingrenovationsandoptimizingequipmentoperation,wee?ectivelyreduceenergyconsumptionandgreenhousegasemissions,activelycontributingtotheachievementofthenational"dualcarbon"strategicgoalsandpromotinggreenandsustainabledevelopmentintheeconomicandsocialspheres.

InDecember2024,CaitongCapitalinvestedCNY20millioninHangzhouJinGuAvatarLow-CarbonWheelCo.,Ltd.,providingthedrivingforceforthegreendevelopmentofthenationalautomotiveindustry.Inthecontextofincreasingpressuretoreduceautomotiveemissions,vehiclelightweightingisofsigni?cantimportanceforsavingenergy,reducingemissions,andachievingsustainabledevelopmentstrategies.Thenewlow-carbonsteelwheelprojectdevelopedbyJinGusince2011usesniobiummicroalloyedsteelasanewlightweightmaterial,whicho?ersadvantagessuchaslowweight,highstrength,andlowcost,representinganupgradeandoptimizationovertraditionalsteelandaluminumwheels.

?Avatar?NiobiumMicroalloyedLow-CarbonWheels-DisplayImageCase

CaitongCapitalandCaitongInnovationInvestinAnada,SuccessfullyListedontheMainBoardoftheShanghaiStockExchangeOnJuly3,2024,AnadaDriveTechnology(Shanghai)Co.,Ltd.successfullylistedonthemainboardoftheShanghaiStockExchange.Anadaisahigh-techenterprisespecializingintheresearch,development,production,andsalesofelectricdrivesystemsforelectrictwo-wheelers.Itiscommittedtodevelopinge?cient,energy-saving,andenvironmentallyfriendlyelectricdrivetechnologies,creatingintelligentandgreentravelsolutionsbasedoninnovativelow-carbonproducts.CaitongCapitalandCaitongInnovation,asco-investorsinAnada,providecomprehensive?nancialservicesandempowerAnadawithcapitaltobettersupportenvironmentalprotectione?orts.

CaitongAssetManagementHostsSeminaronInsightsandInvestmentValueofCleanEnergyREITsInSeptember2024,CaitongAssetManagementheldaclosed-doorseminaroncleanenergyREITsinShanghai,gatheringexpertsfromboththeindustryandinvestmentsectorstojointlyenvisionthedevelopmentroadmapforcleanenergyREITs.Participantsconductedanin-depthanalysisofthecurrentsituationintheenergyindustryandexchangedviewsoncleanenergyinvestmentand?nancingstrategiesaswellasREITspractices.Theycollaborativelysoughtsolutionstocommonchallengesfacedinindustrydevelopment.

Case

EnvironmentalProtectionLawofthePeople'sRepublicofChinaCircularEnergyConservationLawofthePeople'sRepublicofChina

2024SustainabilityReportEnvironmental: Harmonious Coexistence,Building Dreams Together, Revitalizing Life

GreenIndustry

Investment

GreenInvestmentOurActionsandAchievements

Weplacegreatimportanceonresponsibleinvestmentadvocacyandcommunication,strengtheningthepromotionofESGconceptsthroughspecializedtrainingandself-mediaplatformoutreach.GreenInvestmentAdvocacy

AsofDecember2024,CaitongInnovationhasinvestedin22variousgreenprojects,includingnewenergyandenergy-savingenvironmentalprotection,withaninvestmentscaleofapproximatelyCNY1.427billion,accountingfor35%ofthetotal.In2024,theCompanysupportedtheissuanceofCNY425millioningreenbonds.CaitongCapitalhasinvestedinJinGuAvatar,supportingthegreeningoftheautomotiveindustry.

EconomyPromotionLawofthePeople'sRepublicofChina

KeyAreasOurActions

Installationofblindpanelsonunusedserverrackstoblockair?ow,reducing"hotspot"issuesanddehumidi?catione?orts,therebyimprovingenergye?ciency.In2024,theaveragePUEoftheheadquartersdatacenterwas1.55,withanelectricityconsumptionof51,625,180kWh;theaveragePUEofthedisasterrecoverycenterwas1.44,withaconsumptionof2,690,761.2kWh.

TheconstructionoftheserverroomusesVertivvariablefrequencyairconditioning,utilizinginverterstoadjustthecompressorspeedtoreduceenergyconsumption.Plansincludeupgradingprecisionvariablefrequencyairconditioningandinstallingpumpcabinetequipmenttofurtherlowerairconditioningenergyusage.Engagingaprofessionalteamtostrengthenserverroommaintenance,usingspecializedandre?nedmanagementmethodstoenhancethecoolinge?ectofdynamicenvironmentalequipmentandavoidenergywastage.

Employeesareencouragedtoturno?lightingandelectricalequipmentpromptlywhennotinuse,eliminatingthephenomenonoflightsleftonandcomputersrunningunnecessarily.Duringworkinghours,makefulluseofnaturallightwhenpossibleandturno?unnecessarylightingsources.Advocatingforelectricityconservationandstrictsettingsofheatingandcoolingtemperaturesforairconditionersino?ceareas,withencouragementtousestairsforshortdistancestoreduceelevatorusage.Updatingapproximately700?uorescentlightsintheundergroundparkinglottonewT8energy-savinglamps,maintainingbrightnesswhilee?ectivelyreducingpowerconsumption.

Guidingdriverstoestablishasenseofconservation,drivescienti?callyandaccordingtoregulations,andensuringvehiclesareingoodconditiontoreduceemissionsandconsumption.EncouragingemployeestousenewenergyvehiclesbyinstallingchargingstationsintheCompanyparkinglot,resultinginareductionofpercapitagasolineconsumptionto13.8liters,adecreaseofapproximately2%year-on-year.Equippingvideoconferenceandphoneconferencesystemstoencourageemployeestoengageinonlinelearningandtraining,therebyreducingtravelfrequency.WaterResourceManagement

TheCompanyadherestotheprinciplesofconservationandprotectioninwaterresourcemanagement,activelypromotingwaterresourcemanagementpracticesandrespondingtonationalpoliciesencouragingwaterconservation.ThemainsourceofwaterconsumptioncomesfromtheCompany'sdailyoperations,withitswatersupplysourcedfrommunicipalservicesratherthandirectlyfromnature.Duringthereportingperiod,theCompany’stotalwaterconsumptionwas10,479tons,withapercapitawaterusageof6.8tonsperperson.Theamountofrainwaterrecyclingandreusewas2,533cubicmeters.

WaterConservation

KeyAreasOurActions

TheCompanybuildingisequippedwithanadvancedrainwaterharvestingsystem,whiche?ectivelyutilizescollectedrainwaterforvegetationirrigationandvehiclewashingafterpuri?cationtreatment,enhancingtherecyclingofwaterresources.Postingwaterconservationsignageinpublicareastoencourageallemployeestosavewater.Timelyreplacementofdamagedwatersupply?xturesandpipelinestoeliminateissuessuchasleaksandwaterseepage,therebypreventingwatersourcewastage.

WasteManagementTheCompany'smaterialconsumptionisprimarilyo?cepaper.Duringdailyoperations,wefocusoncontrollingtheconsumptionofpapermaterialsbyutilizinginformationsystemstoreducepaperusage.Forhazardouswastegenerated,suchaselectronicdevicesandtonercartridges,weimplementclassi?edcollection,designatedtemporarystorage,andentrustprofessionalagenciesforproperdisposal.Atthesametime,weenhancetheresourcerecoveryofo?cewaste,e?ectivelyachievingthegoalsofresourceconservationandenvironmentalprotectioninouro?ceprocesses.

SavingO?ceSupplies

KeyAreasOurActionsandAchievements

In2024,thevolumeofwasteA4andA3paper,tonercartridges,andpowdercartridgesalldecreasedyear-on-year;theamountofwastepaperdecreasedfrom2,330,000sheetsto1,917,500sheets,ayear-on-yeardecreaseof17.7%;thenumberoftonercartridgesdecreasedfrom876to704,ayear-on-yeardecreaseof19.6%;thenumberofpowdercartridgesdecreasedfrom431to346,ayear-on-yeardecreaseof19.7%.

Encouragetheinternalreallocationofidleassetsandequipmenttoreducenewpurchases.Prioritizetheselectionofenergy-e?cientandenvironmentallyfriendlyproductswhenprocuringo?cesupplies.Conferencematerialsaremainlytransmittedordisplayedinelectronicdocumentformattoreducepaperconsumption.Educateemployeestodevelopasavingmindsetandusevariouso?ceconsumablesjudiciously,suchaspromotingdouble-sidedprinting.

OptimizingO?ceProcesses

AnonlineapprovalplatformforworkprocesseshasbeenestablishedontheCompany'sintranet,encouragingemployeestouseemailandOAsystemstosendinternaldocumentsandachieveonlineapproval.

SavingFoodAdvocateforemployeestotakefoodasneededinthecafeteriatoavoidfoodwaste.

RecyclingandUtilization

Classifyandprocesso?cewaste;coordinatewithlocalcommunitiestohaveharmfulwaste,suchasbatteriesandcartridges,treatedbyprofessionalagencies.Arrangefordedicatedpersonnelto?nelysortrecyclablewastefore?ectiverecycling.Forconsumablessuchasribbons,ink(toner)cartridges,andtonerdrums,implementareusestrategywhileensuringquality,therebyreducingwaste.Establisharegularcollectionmechanismforhouseholdwastetoensurestandardizeddisposalofclassi?edgarbage.

DataCenterEnergySaving

EnergyConservationandReduction

FuelSavings

2024SustainabilityReportEnvironmental: Harmonious Coexistence,Building Dreams Together, Revitalizing Life

BiodiversityProtectionTheCompanyactivelyrespondstothenationalbiodiversityprotectionstrategybyincorporatingbiodiversityconservationintoitssustainabledevelopmentstrategicconsiderations.Wecollaboratewithvariousstakeholderstocarryoutpublicwelfareprojects,continuouslycontributingtotheprotectionofecosystemsandtherestorationofbiodiversity,promotingtheharmoniouscoexistenceofhumansandnature.

2024SustainabilityReportEnvironmental: Harmonious Coexistence,Building Dreams Together, Revitalizing Life

CaitongSecuritiesOrganizesNewYear’sRunningEventtoAdvocateforSocialAttentiontoWestLakeWetlandEcologyandWildlifeProtectionAtthebeginningofthenewyear,CaitongSecuritieslaunchedthe“Upholdingintegrityandharmonyinpursuitofdreams”runningeventbytheWestLake.LeadersfromCaitongSecuritiesandrelevantleadersfromstrategicpartnersparticipatedintherun,whichpassedthroughtheBrokenBridge,SuCauseway,andBaiCauseway.Asoneofthehighlights,thiseventintegratedtheconceptofbiodiversityprotectionbysettingupecologicalprotectionpromotionpointsalongtherunningroute,advocatingforasocialfocusontheecologyoftheWestLakewetlandandtheprotectionofwildlife.

Case

AppendixKeyPerformanceIndicators(KPIs)

2024UnitCNY100millionCNY100millionCNY100millionCNY100millionCNY/share%

Indicator202320221,256.92

329.75

48.27

15.17

0.34

1,337.54

346.27

65.17

22.52

0.48

144.555

364.27

62.86

23.40

0.50

Note1:Thedatainthistableissourcedfromtheconsolidated?nancialstatementspreparedbytheCompanyinaccordancewithChineseAccountingStandardsforBusinessEnterprises,orcalculatedbasedontheaforementionedstatements.Environmental

TonsofCO2equivalentTonsofCO2equivalentTonsofCO2equivalentTonsofCO2equivalent/person

LL/person

L/m

m

m/person

m/mkWhkWhkWh/person

kWh/mkWh

TotalgreenhousegasemissionsScope1greenhousegasemissionsScope2greenhousegasemissionsGreenhousegasemissionspercapitaTotalgasolineconsumptionPercapitagasolineconsumptionGasolineconsumptionperunitareaNaturalgasconsumptionPercapitanaturalgasconsumptionNaturalgasconsumptionperunitareaTotalelectricityconsumption(datacenter)Totalelectricityconsumption(o?cearea)PercapitaelectricityconsumptionElectricityconsumptionperunitarea

Renewableenergy

3,712.67

143.15

3,569.52

0.98

20,795.00

14.12

0.68

44,847.80

30.40

1.50

4,365,6292,196,7641,491

71.50

53,642

4,077.15

121.07

3,956.08

0.90

21,165.00

14.10

0.69

34,254

22.80

1.10

4,795,9402,234,5731,489

72.80

61,894

4,283.06

127.77

4,155.29

0.89

21,173.00

13.80

0.69

40,874.00

26.68

1.30

5,277,8192,209,1811,442

71.90

64,304

TonsTons/personSheetsPiecesPiecesTons

AnnualwaterconsumptionPercapitawaterconsumptionAmountofwastepaperTonercartridgesInkcartridgesAmountofwasterecycled

13,237

9.00

2,300,000

/

9,348

6.20

2,330,000

0.5

10,479

6.80

1,917,500

1.5

RecruitmentandEmployment

PersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersons

MaleFemaleFull-timeemployeesPart-timeemployees<30yearsold30to50yearsold>50yearsoldDomestic(MainlandChina)

OverseasDoctoraldegreeMaster?sdegreeBachelor?sdegreeAssociatedegreeandbelow

3,8012,0731,728//

3,009

//

1,1192,463

5,0262,6522,374//1,0393,766

4,963

1,6383,115

4,7982,5442,2544,798

3,589

4,739

1,6792,883

Totalnumberofemployees

Byemploymenttype

ByageByregion

Byeducationlevel

Bygender

TotalassetsOwner?sequityOperatingincomeNetpro?tBasicearningspershareContractful?llmentrate

2024UnitIndicator20232022

(HongKong,Macau,Taiwan&foreigncountries)

2024UnitIndicator20232022

2024SustainabilityReport

Appendix

Economic

MaleFemale<30yearsold30to50yearsold

>50yearsoldDomestic(MainlandChina)

Overseas

14.2

//

12.86

//

15.18

TotalnumberofnewemployeesBygenderByageByregion

NumberofmanagementpersonnelNumberofmalemanagersNumberoffemalemanagersNumberofethnicminorityemployees

NumberofveteransExplanationofdatastatisticsscope:ThestatisticalcaliberisthatoftheparentcompanyofCaitongSecurities.Datacalculationreferencestandard:Employeeturnoverrateforeachcategory=Numberofemployeesleavinginthatcategoryduringtheyear/Numberofemployeesinthatcategoryattheendoftheyear.EmployeeEquity

%%%Days%%TimesPersons

LaborcontractsigningrateSocialinsurancecoveragerateProportionofunionmembershipAveragepaidannualleavedaysperpersonperyearEmployeehealthcheckcoveragerateCoveragerateofemployeeoccupationalhealthrecords

Numberofwork-relatedinjuriesNumberofemployeeswhodiedduetowork-relatedinjuries

/

/

8.6

Explanationofdatastatisticsscope:ThestatisticalcaliberisthatoftheparentcompanyofCaitongSecurities.Datacalculationreferencestandard:ThenumberofpaidannualleavedaysiscalculatedaccordingtoChina’sRegulationsonPaidAnnualLeaveforEmployee.

EmployeeTraining

Persons%%%PersonsPersonsPersonsHoursHoursHoursHoursHoursHours

MaleFemaleRegularemployeesMiddlemanagementSeniormanagement

3,565

93.79

92.62

92.62

3,400

74.52

69.30

77.64

79.20

51.17

59.72

4,232

94.17

94.33

93.99

4,061

79.62

79.63

79.61

84.03

102.04

37.43

4,212

99.51

99.60

4,027

127.65

120.91

135.23

123.96

221.00

72.96

NumberofemployeestrainedEmployeetrainingcoveragerateBygenderByemployeecategoryAveragetraininghoursperemployeeperyear

MaleFemaleRegularemployeesMiddlemanagementSeniormanagement

BygenderByemployeecategoryExplanationofdatastatisticsscope:ThestatisticalcaliberisthatoftheparentcompanyofCaitongSecurities.TheCompanyhasestablishedthe"EmployeeTrainingStudio"ofCaitongSecurities,whichhaseightmainfunctions:demonstrationtraining,companycultureshowcase,trainingresultsdisplay,presenterpro?ledisplay,instructorteamdevelopment,curriculumsystemdevelopment,simulation(practical)drills,andtrainingexperienceexchange.SocialWelfareAmountofinvestmentinpublicwelfareandcharityCNY10,0003,588.601,688.301,915.28

InformationSecurity

Numberoftrainingsessions

NumberofparticipantsTrainingcoveragerateInformationsecurity

Explanationofdatastatisticsscope:HeadquartersofCaitongSecuritiesanditssubsidiarycompanies.

TimesPersons%Hours

Allemployees

Allemployees

Allemployees

3.6

Explanationofdatastatisticsscope:HeadquartersofCaitongSecuritiesanditssubsidiarycompanies.

(HongKong,Macau,Taiwan&foreigncountries)

PersonsPersonsPersonsPersonsPersonsPersonsPersonsPersons%PersonsPersonsPersonsPersonsPersons

Employeeturnoverrate

2024UnitIndicator20232022

2024UnitIndicator20232022

2024UnitIndicator20232022

2024UnitIndicator20232022

Averagehoursofinformationsecuritytrainingperemployee

2024SustainabilityReport

Appendix

sRegulationsonPaidAnnualLeaveforEmployee.

Anti-CorruptionTraining

NumberoftrainingsessionsTrainingCoverageRateExplanationofdatastatisticsscope:HeadquartersofCaitongSecuritiesanditssubsidiarycompanies.

Times

%

IndicatorIndexShanghaiStockExchangeListedCompanySelf-RegulatoryGuidelinesNo.14?SustainabilityReport(Trial)IndexDimension

ResponsetoClimateChangePollutantEmissionsWasteManagementEcosystemandBiodiversityConservationEnvironmentalComplianceManagement

EnergyUtilizationWaterResourceUtilizationCircularEconomyRuralRevitalizationSocialContributionInnovationDrivenTechEthicsSupplyChainSecurityEqualTreatmentofSmallandMediumEnterprisesProductandServiceSafetyandQualityDataSecurityandCustomerPrivacyProtection

EmployeesDueDiligenceStakeholderCommunicationAnti-BriberyandAnti-CorruptionAnti-UnfairCompetition

No.TopicChapterIndexAddressingClimateChange,DevelopingGreenFinance

PracticingGreenOperationsPracticingGreenOperationsPracticingGreenOperationsPracticingGreenOperationsPracticingGreenOperationsPracticingGreenOperationsDevelopingGreenFinance,PracticingGreenOperations

EnthusiasmforSocialWelfareServingtheRealEconomy,PracticingResponsibleInvestment

DevelopingDigitalFinanceNotApplicableLawfulandCompliantOperations

AdvancingInclusiveFinanceEnhancingServiceQualityLawfulandCompliantOperations

EmpoweringEmployeeGrowthSustainableDevelopmentManagementSustainableDevelopmentManagementLawfulandCompliantOperationsLawfulandCompliantOperations，StrengtheningRiskManagement

Environmental

Social

Governance

AbouttheReportBoardSustainabilityStatementAboutUsSustainableDevelopmentManagement

LeanCorporateGovernanceLawfulandCompliantOperationsStrengtheningRiskManagementPracticingResponsibleInvestmentServingtheRealEconomyEnhancingServiceQualityEmpoweringEmployeeGrowthEnthusiasmforSocialWelfareAddressingClimateChangeDevelopingGreenFinancePracticingGreenOperations

Governance:StrivingforExcellencetoBuildaFirst-ClassCompany

KeyPerformanceIndicators(KPIs)IndicatorIndexFeedbackAppendix

A1A2A4A5

CASS-ESG6.0&GRIIndex

ReportTableofContentsCASS-ESG6.0GRI

Social:RidingtheTideofProgresstoNourishAllIndustriesEnvironmental:HarmoniousCoexistence,BuildingDreamsTogether,RevitalizingLife

P1.1-P1.3P2.1-P2.2P4.1-P4.3G3.1-G3.7G1.1-G1.11、S3.4-S3.11

S1、S2、S3.1-S3.3、S4、S5、V1、V2、V3

E1-E5、V4

2-2、2-3、2-42-222-1、2-93-1、3-2、3-32-12、2-15、2-26、2-27、205-2

2-19、2-20、206、401、404、405-1、413-415、403、416-1、

417、418

301-2、302-4、303、306----

2024SustainabilityReport

Appendix

2024UnitIndicator20232022

Thankyoufortakingthetimetoreviewourreport.ToenhancethequalityofourreportingandstrengthenCaitongSecurities'sustainabilityperformance,wesincerelywelcomeyourfeedbackandsuggestions.DearReaders,

Whichstakeholdergroupdoyoubelongto?〇 Governmentandregulatoryauthorities〇 Customers〇 Employees〇 Suppliers〇 Scienti?cresearchinstitutions〇 Others

Yourevaluationofthereport:

1、Whatisyouroverallevaluationofthisreport?

〇 Excellent〇 Good〇 Average〇 Poor〇 VeryPoor

2、Doyouthinktheinformation,data,andindicatorsdisclosedinthisreportareclear,accurate,andcomplete?〇 VeryReasonable〇 Reasonable〇 Average〇 Poor〇 VeryPoor

3、Whatdoyouthinkofthereport'slayoutdesignandpresentation?

〇 Excellent〇 Good〇 Average〇 Poor〇 VeryPoor

4、Inwhichareasdoyouthinkthisreportcanbeimproved?

〇 ReportTheme〇 DesignandLayout〇 ContentLogic〇 LanguageExpression

5、Doyouhaveanysuggestionsforourfuturesustainabledevelopmentworkandreportpreparation?

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