环境、社会与管治.pdf

社會責任報告 哈爾濱銀行股份有限公司 2016 Happy Work, Healthy Life 社會責任報告 2016 SO C I A L R ESP O N SI BI L IT Y REP O RT 快樂工作 健康生活 HARBIN BANK CO., LTD. CORPORATE SOCIAL RESPONSIBILITY REPORT 2016 HARBIN BANK CO., LTD. SOCIAL RESPONSIBILITY REPORT 2016 Explanation on Report Compilation (1) Scope of the report Organisation coverage: The report mainly covers Harbin Bank Co., Ltd., including the Bank’s headquarters, domestic branches and sub-branches and subsidiaries. Report timeframe: 1 January 2016 to 31 December 2016 (with some contents exceeding the above timeframe) Report issue cycle: Annual report (2) Report compilation principle This report is compiled in accordance with the requirements of the “Environmental, Social and Governance Reporting Guidelines” of the Hong Kong Stock Exchange, and with reference to “G4.0 Sustainability Reporting Guidelines” and “Financial Services Sector Supplement” of the Global Reporting Initiative (GRI), and in accordance with “Opinion on Strengthening Social Responsibility of Banking Financial Institutions” of the China Banking Regulatory Commission, and “Guidelines on Corporate Social Responsibility of Banking Institutions” of the China Banking Association and other standards, thereby ensuring that the report is in compliance with the general practice in the banking industry and the international prevailing practice. (3) Report data explanation The financial data in this Report is all taken from the 2016 Annual Financial Report, which was audited by Ernst & Young (the Hong Kong auditors) and Ernst & Young Hua Ming LLP (special partnership). The reporting data is mainly based on the year 2016. For the data related to previous years and shown in this Report, its year is explicitly specified in accordance with the disclosure requirements. Money amounts shown in this Report refer to the currency RMB, with exceptions specially noted. (4) Report assurance method To ensure accuracy, authenticity and reliability, this Report has been submitted to Ernst & Young Hua Ming LLP (special partnership) in accordance with the requirements of the International Standard on Assurance Engagements 3000: Assurance Engagements Other than Audits or Reviews of Historical Financial Information (“ISAE3000”) for a third party independent assurance on key performance indicators of corporate social responsibility with an independent assurance report provided. The cover page coating of the report comes from potato extract All the graphics used in this report are for the Bank’s work purposes. (5) Report release method This Report is released in print version, with an electronic version for download. The electronic version can be downloaded from the website of the Hong Kong Stock Exchange (URL: http://www.hkex.com.hk) and the Bank’s official website (URL: http://www.hrbb.com.cn). CONTENTS 6 8 Chairman’s Statement President’s Statement 10 Key Performance Table 11 Featured Topic: Our Focus in 2016 12 Targeted Poverty Alleviation 14 Entrepreneurship and Innovation by All 15 Happy Work, Healthy Life 18 About Harbin Bank 20 Overview 23 Corporate Governance 26 Internal Control 26 Anti-corruption and Integrity 28 Social Responsibility Management 30 Our Financial Responsibility Management 32 New Five-year Plan: Microcredit Strategic Goals Upgrading 35 Year of Products: Accelerating Digital Inclusive Finance 39Sino-Russia Financial Council: Facilitating “One Belt and One Road” Development 40 Our Environmental Responsibility Management 42 Green Credit 43 Green Office 45 Green Charity Campaign 46 Our Social Responsibility Management 48 Staff Career Development 49 Training and Education 51 Public Welfare Actions 54 Our Awards and Honours 55 Prospects 56 Annex: Indicators for Sustainable Development of Harbin Bank (Index of Corporate Social Responsibility Report) 58 Independent Assurance Report 60 Feedback Form Meaning of Bank Logo The shape of the logo is a square, meaning that Harbin Bank is financially stable and also a strong support for customer groups. The interwoven curves in the logo are interpreted from the shape of lilac’s petals in the original logo, meaning hand in hand and heart to heart. The logo subtly conveys Harbin Bank’s core philosophy of timely assistance, showing that the Bank always connects closely with its clients, no matter at present or in future. The four petals in the new logo respectively represent the deep meaning of “TRUST, WARMTH, CONNECTED and COMMITMENT”. The colour theme of the new logo is orange and red. The use of warm colour tones and gentle curves reflects Harbin Bank’s image of being motivated and friendly as well as unlimited development possibilities in future. HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT Chairman’s Statement 6 | Chairman’s Statement Chairman’s Statement | HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT In 2016, the diversification, complexity and collaboration of the global economic and We are so glad to see that Harbin Bank maintained good momentum for development social development further deepened. The domestic economy still craved momentum for in the starting year for the new five-year plan. Not only did the business performance organic growth. Both the transformation and market competition of the banking industry speeded up simultaneously. In 2016, we were surprised to see the first implementation reach the expected targets, but the Bank also had a good start with the successful strategy of inclusive finance at the state level – the Plan for Promoting the Development of up to a new level; team building embraced with new power; the development of the headquarters created new opportunities for growth; new momentum was gathered Inclusive Finance (2016-2020) 《 ( 推进普惠金融发展规划（2016-2020 年）》). Against such backdrop, Harbin Bank initiated and implemented the “2016-2020 Development and Strategic Plan of Harbin Bank” under the guidance of regulatory authorities at various levels and the leadership of the board of Directors (the “Board”) achievement of some of its objectives: the management standard of the Bank stepped for the development of the Group; there was a new trend regarding cooperation with Russia; and brand building created new image. Accomplishing mission with new starting point. In 2016, driven by products, and with the support of the shareholders and the society, so as to stride ahead for our new strategic objective – becoming a “first class international microcredit bank providing quality and distinctive services”. transformation, employees and brand, we delivered the beautiful message of “TRUST, WARMTH, CONNECTED and COMMITMENT” contained in the new brand logo to the Bank’s employees and their families, as well as the public. Being mindful of our mission with new direction. In 2016, we formed a full set of We strive to fulfil our responsibility as a corporate citizen with actual action to repay strategic planning system with the new five-year strategic plan as the core part, the strategy for the four major financial sectors as the support and featured internationalised development and comprehensive operating strategy. Strategic speeches were given by the society. In 2016, we commenced a charity strategy plan research, determined the direction of supporting charity affairs including “Happy Community Program”, Sino-Russian cultural exchange and Harbin International Marathon, and set up the the senior management in branches in various regions to enhance the understanding and knowledge of the new five-year strategy at all levels in the Bank. United Charity Foundation. We successfully organised the first “Meet in Sun Island” Charity Marathon Relay of Harbin Bank and sponsored the first “Harbin International Marathon” competition. We organised a series of cultural events, including the Russia We are proud that we are always mindful of our mission and have been steadfastly upholding the business philosophy of “Inclusive Finance, Harmonious Co-Enrichment” in support of the development of the real economy to further motivate the development of inclusive finance in China. As at the end of 2016, microcredit loans of the Bank amounted to RMB167.7 billion, which accounted for 83% of total loans of the Bank, a record high again after microcredit loans accounting for more than 70% of the total loans for the first time in 2015. This further highlighted the leading position of the microcredit strategy of Harbin Bank and the mission and determination of developing inclusive finance. Stepping forward against challenges on the new journey. In 2016, we set up a work theme of “Year of Products” and incorporated ideas for innovation, products and compliance into product development, technology upgrading, employee training and corporate governance, and we delivered excellent results in practice. 24 innovation salon activities at the headquarters, over 70 products competing for the position of featured products, more than 500 posts on “Harbin Bank Express”, a running group with a thousand members in “Harbin Marathon”, over 2,500 employees being selected to participate in the “Leadership Training Program” and taking lead in the syndicated loan agreement of RMB10,000 million... All these figures are not only the derivatives of our annual work theme, but also the proof of the common efforts in building an ideal, passionate, energetic and creative bank with support from all levels in the Bank. Sculpture Exhibition and the Masterpiece Exhibition for Chinese Modern Painting and Calligraphy Artists. We also initiated the “Happy Community Program”. All these activities manifested the corporate culture of “Happy Work, Healthy Life” of Harbin Bank and allowed us to move towards our target – becoming a bank with profound culture, renowned charity brand and respectable reputation. 2017 is the 20th anniversary of the Bank. By looking back to the glorious 20 years, we become more aware of our mission: We are promoters of microcredit. We are practitioners for people’s livelihood. We are public welfare volunteers. We are green banking builders. To this end, we will keep stepping forward without slacking off. Guo Zhiwen, Chairman of Harbin Bank Co., Ltd. 7 HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT President’s Statement 8 | President’s Statement President’s Statement 2016 was an extraordinary year for the reform and development process of Harbin Bank. Facing the complex and ever-changing domestic and overseas economic environment, as well as the continuous exposure to market risks, we focused on the new five-year strategic objectives and laid a new foundation for becoming a “first class international microcredit bank providing quality and distinctive services”. 2016 was also a year for the advancement of Harbin Bank participating in the “Leadership Program” for urban commercial banks in China. Adhering to the business philosophy of “Inclusive Finance, Harmonious Co-Enrichment”, our performance achieved historical breakthrough in operating indicators with our full efforts into maintaining economic efficiency and social efficiency. Our brand value also increased rapidly, allowing social efficiency to increase as well. Major indicators improved in leaps and bounds. As at the end of 2016, the total assets and total customer loans of Harbin Bank were RMB539.0 billion and RMB201.6 billion, representing a year-on-year increase of 21.2% and 35.6% respectively. The total number of customers reached over 18.82 million, representing a year-on-year increase of 86.3%. Net profit and tax paid for the year amounted to RMB4.96 billion and RMB3.81 billion, representing a year-on-year increase of 10.0% and 36.6% respectively. Such performance is our present for the 20th anniversary (1997-2017) of Harbin Bank. The capital and total assets of Harbin Bank were 48 times and 85 times respectively as much as they were twenty years ago, and both the balances of deposits and loans were 66 times. NPL ratio was reduced to 1.53% from 65% in the first year upon establishment. Net profit increased to nearly RMB5 billion of net profit for the year from RMB70 million of loss for the year in the beginning. The Bank paid tax more than RMB3.8 billion for the year and provided services for more than 18 million accounts. The Bank ranked first in terms of market share in Harbin over the years. “Year of Products” motivated supply side innovation. In 2016, focusing on the theme of “Year of Products”, we fully optimised the product management mechanism, established the experimental and functional platform for product innovation and optimised the evaluation and appraisal mechanism for research and development, so as to upgrade the structure of customer-oriented supply-side management of products. It is also worth mentioning that there were 62 members including 27 new members in the Sino-Russia Financial Council set up by Harbin Bank as the promoter in 2016. There were four cooperative projects for Russian cross-border financing with an amount of RMB12.6 billion, and 29 business cooperation agreements were signed, which became a new power for banks engaging in Sino-Russia financial business and international financing, and greatly enhanced the international influence of Harbin Bank. Transaction volume of the cross-border E-commerce platform exceeded | HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT RMB3.3 billion. Such platform was classified as a key project under the “One Belt, One Road” initiative and the pilot city for modernised logistics. “Leadership Training Program” facilitated employee training. In 2016, we accelerated our progress in management transformation, significantly increasing our business support capabilities. The training system which focused on the “Leadership Training Program” was improving. Over 2,500 employees from the whole bank were selected to participate in the “Leadership Training Program”, of whom 673 were selected to be added into the talent list for comprehensive management and professional management. Some talented young management members served key management positions. In 2016, we put the philosophy of “Happy Work, Healthy Life” in practice by successfully sponsoring the first Harbin International Marathon competition. About 1,400 members of the “Ha Run e Generation Club” from the Bank joined the competition. 104 employees became volunteers of the international competition. Nearly 700 people became cheering teams and participated in the performance. Strategic focus attracted much attention and was well-received. In 2016, Harbin Bank ranked 207th in the Top 1,000 World Banks published by the Banker of United Kingdom. According to the “Top 500 Bank in Asia-Pacific Region” published by The Asian Banker, the Bank ranked 99th in comprehensive ranking. Our efforts were much well-received worldwide. The Bank entered the shortlist for “Top 500 in China” by the Fortune of United States for the first time, and ranked 416th. The Bank again won the “Best Regional Trade Finance Bank of China” award of The Asian Banker. The Bank also won the Best Employee Management award. The Bank won the “Stars of China: Best City Commercial Bank for the Year” award for three consecutive times and received the “Best Credit Bank for Small Enterprises” award from Global Finance, a US-based magazine. In 2017, inheriting the fine tradition of standing in solidarity, working diligently in defiance of difficulties, daring to innovate and keeping moving, we will take off for new journey from our new starting point by heading towards our new direction in order to create better future. Zhang Qiguang, President of Harbin Bank Co., Ltd. 9 HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT | Key Performance Table Key Performance Table Type of indicators Economic performance indicators Social performance indicators Environmental performance indicators Specific indicators Unit 2016 2015 2014 Total assets RMB million 539,016.2 444,851.3 343,641.6 Operating income RMB million 14,172.0 11,945.4 10,252.8 Profit before tax RMB million 6,445.6 5,919.0 5,127.5 Net profit RMB million 4,962.2 4,509.6 3,840.8 Total tax RMB million 3,811.1 2,788.8 2,281.4 Earnings per share RMB Yuan 0.44 0.41 0.37 Average return on total assets % 1.01 1.14 1.15 Average return on equity % 14.01 14.23 15.46 NPL ratio % 1.53 1.40 1.13 Capital adequacy ratio % 11.97 11.64 14.64 Provision coverage ratio % 166.77 173.83 208.33 Microcredit RMB million 167,700.5 111,894.1 80,836.9 Client of village and township banking services Account 322,463 267,758 219,379 Total staff Person 6,969 7,131 7,408 Proportion of female staff % 55.75 56.38 56.45 Proportion of female management staff % 45.67 45.71 46.85 Total charity donation RMB’0,000 2,319.70 595 612 Green credit balance RMB million 1,587 752.0 569.0 Note: 1. The total staff, the proportion of female staff and proportion of female management staff exclude those in village and township banks, Harbin Bank Financial Leasing Co., Ltd. and Harbin Bank Consumer Finance Co., Ltd. 2. The statistical caliber of the clients of village and township banking services was the total number of clients making deposits and borrowing loans in village and township banks as at the end of the reporting period, and the data for 2015 and 2014 were adjusted accordingly, in order to ensure the consistency of the statistical scope of such indicator for different years. 10 Featured Topic: Our Focus in 2016 | HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT | Featured Topic | Our Focus in 2016 Targeted Poverty Alleviation Entrepreneurship and Innovation by All Happy Work, Healthy Life 01 Featured Topic: Our Focus in 2016 | HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT One of the oil painting collections of Harbin Bank Name of artwork: Headquarters of Harbin Bank Artist: Burtov Nikolay Vladimirovich (Russian meritorious artist) 11 HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT | Featured Topic: Our Focus in 2016 Targeted Poverty Alleviation In 2016, in full compliance with the requirements under the Decision of the CPC Central Committee and the State Council on Winning the Tough Battle against Poverty (《中共中央国务院关于打赢脱贫攻坚战的决定》) and the Guidance Opinion of the China Banking Regulatory Commission on Financial Institutions in the Banking Industry Participating in the Tough Battle against Poverty (《中国银监会关于银行业金融机构积极投入脱贫攻坚战的指导意见》) and under the guidance of Heilongjiang Provincial Government, Heilongjiang Regulatory Bureau of CBRC and other authorities, we introduced the Work Plan for Financial Poverty Alleviation for the “Thirteenth Five-year Plan” Period of Harbin Bank (《“ 十三五 ” 时期哈尔滨银行金融扶贫工作规划》) and the guidance opinion on poverty alleviation to optimise financial resources allocation, provide policy support to the performance evaluation and provisions of poverty alleviation loans, be more lenient to major indicators and encourage our branches to carry out targeted poverty alleviation. We also continued to enhance our financial poverty alleviation working mechanism in order to improve the effectiveness of targeted poverty alleviation. Registered people in poverty with the Bank’s support As at the end of 2016 64.6 thousand People who got rid of poverty 23.7 thousand Accumulated poverty alleviation loans distributed Balance of targeted poverty alleviation loans 2.3 601 billion (RMB) Ranked among the best of financial institutions in Heilongjiang in terms of work effectiveness million (RMB) Service innovation to enhance the feasibility of targeted poverty alleviation with financial aid. We relaxed the restriction on credit extension and use of credit for people in poverty, raised the line of credit of credit loans and enlarged the coverage of poverty alleviation loans to make sure all registered people in poverty being supported by poverty alleviation credit. Besides, focusing on new agricultural business entities including large-scale planting and breeding entities, family farms, farmer specialised cooperatives and agriculture-related leading enterprises in the agricultural financial sector, we gave priority to develop advantage dominant industries and supported the cluster effect of farmers becoming rich. We made use of models such as “enterprises+farmers”, “companies+farmers” or “specialised cooperatives+farmers” to further facilitate poverty alleviation and boost income of low-income groups. Product orientation to strengthen the conformity of financial services for poverty alleviation. With reference to its geographical advantages, Harbin Bank carried out an in-depth research and study on the impoverished families in Heilongjiang and relevant industries and developed targeted products in 2016 so as to better meet the financial needs of its clients to get rid of poverty and become rich. 12 Featured Topic: Our Focus in 2016 | HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT On 5 February 2016, we paid visits to the impoverished farmers in poverty in Fuxing Village, Anshan Township, Yanshou County We introduced entrepreneurship secured loans for rural women, returned migrant workers and the unemployed to meet their needs to start a business. We developed credit products including loans for planting and breeding business, Chu Bao Tong ( 畜保通 ) loans and “Two Rights” secured loans for impoverished farmers. We introduced “Harvest E-loan” ( 丰收 e 贷 ), loans of professional large-scale agriculture entities (family farms) and loans or farmer specialised cooperatives for new agricultural business entities. At the same time, we kept on expanding the collateral methods including pledging grain direct subsidy accounts, agricultural implements, contractual rights of land as well as interests such as warehouse receipts, inventories and personal property, so as to motivate the impoverished households to get rid of poverty and become rich in batches with the use of agricultural industry chain and financial service model. Eliminating dead zones to improve the rural financial services network. With respect to the environmental construction of rural financial services, we adopted the “San Dao ( 三 到 )” model (i.e. to towns, to villages and to households) and, without reducing the number of branches at county level, pushed forward the optimisation of network layout. By consistently introducing “farmer-assistance e-stations” services and set up basic service facilities such as ATM and POS machines, we satisfied the needs for basic services such as the distribution of various agriculture subsidies, small withdrawals and bank transfers in remote rural areas and eliminated dead zones of financial services so as to provide comprehensive financial services for impoverished clients via various channels. CASE As at the end of 2016, Harbin Bank set up over 1,600 farmer-assistance e-stations in Heilongjiang, covering 8 prefecture-level cities including Harbin, Shuangyashan, Jixi, Hegang, Suihua, Jiamusi, Mudanjiang and Qitaihe, as well as 422 villages and towns. We set up farmerassistance e-stations in Heilongjiang 1,600 over 13 HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT | Featured Topic: Our Focus in 2016 Entrepreneurship and Innovation by All Responding to the call of the “Entrepreneurship and Innovation by All” policy, Harbin Bank gave full play to its advantages in microcredit business and took the theme “Year of Products” as an opportunity to accelerate product innovation and further support “double innovation ( 双 创 )” in 2016. The Bank invested and distributed entrepreneurship secured loans in an accumulated amount of RMB2.3 billion in Heilongjiang with business coverage of more than 10 prefecture-level cities in the province, which encouraged over 20,000 clients to start a business and achieved excellent social efficiency. “Entrepreneurship Loan Guarantees ( 创贷保 )” to support business start-ups of college graduates. In order to help solving the financial difficulties faced by college students in Heilongjiang when starting a business, Harbin Bank worked with Heilongjiang College Students Entrepreneurship Guarantee Company ( 黑龙江省大学生创业担保公司 ) (“Guarantee Company”) and introduced an entrepreneurship secured loan product for college students called “Entrepreneurship Loan Guarantees ( 创贷保 )” in August 2015. As at the end of 2016, the Bank distributed 521 loans amounting to RMB37.19 million in total, accounting for more than a half of the total investment in entrepreneurship loans for college students in Heilongjiang, with business converge including Harbin, Daqing, Yichun, Mudanjiang, Jiamusi and other regions in Heilongjiang. Recently, college student entrepreneurs only have to provide proof of identity and proof of business to apply for entrepreneurship loans conveniently and quickly with the integrated use of various online and offline channels including WeChat Banking of Harbin Bank, online banking, the Bank’s branches and the website of Heilongjiang College Students Entrepreneurship Loans. Expanding the scope of loans to encourage the unemployed in Heilongjiang to start a business. As a bank having 16 years of experience in small amount secured loans in Heilongjiang, Harbin Bank speeded up its product innovation, introduced new entrepreneurship secured loans and expanded the scope of loans in 2016. In 2016, the scope of prospective borrowers of the entrepreneurship secured loans was extended to: the unemployed registered in cities and towns, the people with difficulties in finding jobs (including the disabled), demobilized servicemen, the people released upon completion of a sentence, college graduates, employees and personnel in overcapacity enterprises, returned migrant workers to start a business, online merchants, registered people in poverty, etc. Such measure further strengthened the financial support for improving employment, encouraging business start-up and improving people’s livelihood in Heilongjiang. Adhering to the customer-oriented principle, we optimised our business handling procedures and simplified application materials to improve efficiency and customer experience. In 2016, Harbin Bank also developed various unsecured products such as Taxation E-Loans and “Qi Bu Dai ( 起步贷 )” to customise personal financial service plans for entrepreneurs. The types of entrepreneur loans and methods of repayment were diversified by mixing and matching different loan products, which strengthened entrepreneurs’ risk tolerance for business operation. CASE 14 The Harbin Youth Entrepreneurship Innovation Competition sponsored by Harbin Bank over the years attracted over 300 teams of entrepreneurs to sign up for participation in 2016. The competition served as a platform for the young entrepreneurs to showcase and provided financing services for them. We also carried out a series of entrepreneurship advertising campaigns and product promoting meetings for college students in colleges in the province. We convened meetings of exchange in business incubators and pioneer parks for college students so as to accelerate project cooperation with those pioneer parks for college students, look for potential quality entrepreneurs and motivate the enthusiasm of young entrepreneurs. Featured Topic: Our Focus in 2016 | HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT Happy Work, Healthy Life In 2016, we called for the idea of “Happy Work, Healthy Life” and created an atmosphere full of positivity and self-challenging attitude with a variety of cultural and sports activities, striving to become a bank with strong cultural foundation, outstanding charity brand and good reputation. The Russia Sculpture Exhibition and the Masterpiece Exhibition for Chinese Modern Painting and Calligraphy Artists. After the large-scale oil painting exhibition called “Golden Memories: Harbin under Strokes of Russian Artists” in October 2015, we organised two feasts of culture for our employees, customers and Harbin people in the headquarters of Harbin Bank in Qunli New District, Harbin in 2016. In January 2016, we organised the Russia Sculpture Exhibition. 142 pieces of artwork were all from the collections of the artists themselves or their families. The artists of these artworks included famous sculptors, people’s artists and meritorious artists from former Soviet Union and Russia, such as Anikushin Mikhail Konstantinovitch. Artwork covered memorial sculptures, garden sculptures, funerary sculptures, ornamental sculptures, medal sculptures as well as records of historical figures, animals and historical events. In the one-month-long exhibition period, the exhibition became a venue for employees to hang around and be exposed to art. The Masterpiece Exhibition for Chinese Modern Painting and Calligraphy Artists held in September was a featured event of the “Painting and Calligraphy Channel for Families – Walking up to Harbin Bank ( 书画频道进万家 走近哈尔滨银行 )” series activities, which was co-organised by Harbin Bank, United Charity Foundation and Central Digital TV Chinese Art Channel. The event invited 28 famous Chinese modern painting and calligraphy masters to pay a visit to Heilongjiang and walk up to Harbin together in order to feel, promote and carry forward the culture and art in Heilongjiang and establish an exchange platform for the painting and calligraphy lovers in Heilongjiang. 15 HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT | Featured Topic: Our Focus in 2016 CASE After the 2016 “Meet in Sun Island” Marathon Relay of Harbin Bank on 28 May, we donated RMB10,800, which was converted from the accumulated number of steps of all contestants, volunteers and staff members, to Harbin No.36 High School ( 哈 尔 滨 市 第 三 十 六 中 学 ) for supporting the school to improve its sports facilities, further enhance its teaching quality in sports and strengthen physical exercise of students in pursuit of all-round development of morality, intelligence and physique. “Meet in Sun Island” Marathon Relay. On 28 May, we successfully held the “Harbin Bank 2016 Meet in Sun Island Marathon Relay”. Nearly a thousand of employees participated in the relay with our business partners and clients from all over the country, having a taste of the charming corporate culture of “Happy Work, Healthy Life” of Harbin Bank. In May 2016, we launched the official website for Harbin Bank’s marathon (http://mls.hrbb.com.cn) to promote the culture of marathon. 16 Featured Topic: Our Focus in 2016 | HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT Sponsor of “Harbin International Marathon”. In order to further facilitate the development of marathon and the extensive mass fitness campaign in Harbin and build up a healthy, happy and harmonious urban culture, Harbin Bank decided to sponsor the “Harbin International Marathon” competition for 10 consecutive years since 2016 and had full participation in the organisation of the first session of the “Harbin Marathon”. On 28 August, the “2016 Harbin International Marathon” of Harbin Bank commenced on schedule. Thanks to the unique track design, organised races, warm and thoughtful volunteer services and beautiful medals, the first session of the “Harbin Marathon” was highly praised by the 30,000 contestants from all over the world as well as the society. About 1,400 members of the “Ha Run e Generation Club” of Harbin Bank firstly appeared in the event as a “thousand people running group” and became an icon on the track of “Harbin Marathon”. Besides, 104 employees served as volunteers for the Harbin International Marathon (including 28 qualified medical volunteers), and about 700 employees became cheering teams and participated in the event's performance. The competition was rated as the “2016 Competition with the Most Beautiful Track Features in China (2016 中国马拉松最美赛道特色赛事 )” and the “2016 Bronze Competition of Chinese Athletic Association (2016 中国田径协会铜牌赛事 )” by the Chinese Athletic Association. CASE In order to provide a comfortable and safe place for Harbin people to play sports, we donated to build the first outdoor charity plastic track along the road beside the river in the famous Qunli Music Park in Harbin in July 2016. The charity track donated by Harbin Bank was welcomed by Harbin people. 17 HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT | About Harbin Bank About Harbin Bank In 2016, Harbin Bank strived to achieve the new strategic goal of becoming a “first class international microcredit bank providing excellent services with unique characteristics” and upheld “Inclusive Finance, Harmonious Co-Enrichment” as its operational philosophy. Adhering to the microcredit core strategy, the Bank aimed to achieve “characteristic, collectivised, international” development and the codevelopment of mobile finance and traditional finance. With the theme of “Year of Products”, the Bank supported the development of the real economy and performed corporate social responsibility. 14,172.0 Operating income of RMB14,172.0 million 539,016.2 Total assets of RMB539,016.2 million 18 About Harbin Bank 4,962.2 Net profit of RMB4,962.2 million | HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT 3,811.1 Total tax paid of RMB3,811.1 million 6,445.6 Profit before tax of RMB6,445.6 million 02 About Harbin Bank | HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT One of the oil painting collections of Harbin Bank Name of artwork: Central Street after Rains Artist: Sidorenko Maksim Viktorovich (Russian meritorious artist) 19 HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT | About Harbin Bank Overview Harbin Bank was founded on February 1997. Headquartered in Harbin, Heilongjiang Province, the Bank is an emerging joint stock city commercial bank in Northeast China in recent years. Listed on the Main Board of the Stock Exchange of Hong Kong (stock code: 6138. HK) on 31 March 2014, the Bank is China’s third city commercial bank entering the Hong Kong capital market, and also the first listed commercial bank in Northeast China. In August 2015, the Bank made an application to the CSRC for the IPO of A shares. 20 About Harbin Bank | HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT In 2016, Harbin Bank strived to achieve the new strategic goal of becoming a “first class international microcredit bank providing excellent services with unique characteristics” and upheld “Inclusive Finance, Harmonious Co-Enrichment” as its operational philosophy. Adhering to the microcredit core strategy, the Bank aimed to achieve “characteristic, collectivised, international” development and the co-development of mobile finance and traditional finance. With the theme of “Year of Products”, the Bank supported the development of the real economy and performed corporate social responsibility. Harbin Bank has established 17 branches in Tianjin, Chongqing, Dalian, Shenyang, Chengdu, Harbin, Daqing, etc. and 32 village and township banks (including 8 village and township banks in preparation) in 14 provinces and municipalities, including Beijing, Guangdong, Jiangsu, Jilin and Heilongjiang. The Bank, as a controlling shareholder, has promoted the establishment of Harbin Bank Financial Leasing Co., Ltd., the first financial leasing company in Northeastern China, and Harbin Bank Consumer Finance Co., Ltd. (approved for establishment), the first consumer finance company in Heilongjiang Province, respectively. As at 31 December 2016, the Group had 355 business outlets with branches and sub-branches across seven administrative regions across China. Branches Village and township banks (including those to be established) Agricultural Reclamation (Fujin) Heilongjiang Nehe Hegang Jiamusi Baiquan Huachuan Qiqihar Yichun Huanan Shuangyashan Daqing Suihua Jixi Qitaihe Bayan Yanshou Harbin Mudanjiang Yushu Ning'an Harbin Bank Financial Leasing Co., Ltd. Harbin Bank Consumer Finance Co., Ltd. Jilin Shenyang Liaoning Xinjiang Huairou Inner Mongolia Dalian Beijing Tianjin Hebei Hejian Shanxi Ningxia Shandong Huining Qinghai Pingliang Gansu Xin'an Shaanxi Yanshi Rudong Henan Tianshui Tibet Anhui Zhongjiang Jiangsu Langzhong Yingcheng Hubei Suining Qingbaijiang Chongqing Honghu Wulong Zhejiang Dadukou Shapingba Zhuzhou Leping Sichuan Anyi Youyang Chengdu Hunan Guizhou Jiangxi Leiyang Fujian Yunnan Guangxi Bao'an, Shenzhen Guangdong Hainan Baoting 21 HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT | About Harbin Bank Harbin Bank is ranked 207th in the “Top 1,000 World Banks” published by the Banker of United Kingdom in 2016, thus rising 2 places from the previous ranking. According to the “Top 500 Banks in Asia-Pacific Region” published by The Asian Banker, the Bank is ranked 99th, thus rising 16 places as compared to the ranking in the previous year, and was awarded the “Best Employee Management in China” and “Best Regional Trade Finance Bank of China” for the year. The Bank entered the shortlist for “Top 500 in China” by the Fortune of United States for the first time, and ranked 416th. The Bank won the “Stars of China: Best City Commercial Bank” award for the third consecutive year and received the “Best Credit Bank for Small Enterprises” award for the year in the Stars of China Awards 2016 published by Global Finance, a US-based magazine. The Banker The Asian Banker “Top 1,000 World Banks” from the Banker of United Kingdom “Top 500 Banks in Asia-Pacific Region” from The Asian Banker Harbin Bank ranked Harbin Bank ranked 207 th 209 207 282 rising (as compared to 2015) 2 places 99 th 99 115 rising (as compared with 2015) 2014 2015 2016 16 2015 places Global Finance Fortune China “Stars of China” from Global Finance of the United States “Top 500 in China” from the Fortune Harbin Bank was awarded Best City Commercial Bank (2014, 2015 and 2016) Best Credit Bank for Small Enterprises (2016) 22 Harbin Bank ranked 416 th 2016 About Harbin Bank | HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT Corporate Governance The Bank has constantly improved the level of corporate governance, and directors and supervisors have performed duties actively and diligently. Sound corporate governance is the responsibility of the Board and the cornerstone for healthy development of the enterprise. In 2016, the Bank strived to improve its corporate governance mechanism, and enhance and improve its corporate governance. The Bank has adopted the Corporate Governance Code in Appendix 14 to the Hong Kong Listing Rules, has met the relevant requirements of the PRC commercial bank administrative measures and corporate governance requirements, and has established a sound corporate governance system, ensuring the efficient operation of the overall corporate governance of the Bank. In 2016, the Bank organised and held 47 important meetings in total of all kinds (such as general meetings and class meetings of shareholders, meetings of the Board and its special committees, and meetings of the board of supervisors and its special committees). At the meetings, the Bank considered and approved 273 major proposals and reports, including: the Work Report of the Board of Directors, the Work Report of the Board of Supervisors, the Work Report of the President, the Financial Budget Report, the Financial Statements, the Profit Distribution Plan, the performance evaluation indicators of senior management, the Comprehensive Operation Plan, the Report on the Implementation of Connected Transactions, the Risk Control Report, the amendments to the Articles of Association and the institutional development plan. The Bank continues to deepen the development of its internal control system by establishing, optimising and implementing various rules and regulations of internal control. A good internal control culture is developed and the business management and control mode of all business lines and business of various regions is refined through systematic publicity and education. Various internal control targets are achieved through various effective measures such as division of responsibilities, lines of reporting, incentive and restraint, etc. 31 25 2014 26 2015 2016 11 8 5 5 1 General meeting and class meeting of shareholders (No.) Meeting of the Board (No.) 10 9 6 6 Meeting of special committees of the Board (No.) 4 Meeting of the board of supervisors (No.) 5 6 Meeting of special committees of the board of supervisors (No.) 3 3 4 Survey and investigations by independent Directors (No.) 3 3 3 Training for directors and supervisors (No. of session) 23 HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT | About Harbin Bank Harbin Bank interim results announcement in Hong Kong on 16 August 2016 Information disclosure mechanism is getting more regulated, and investor relations management is getting more active. The Bank has strictly complied with regulations including the Measures for the Information Disclosure of Commercial Banks, the Listing Rules of the Stock Exchange, the Harbin Bank Co., Ltd. Information Disclosure Management System and its implementation rules to perform the various works related to information disclosure and practically safeguard the interests of investors. The Bank discloses information mainly by the means of the website of The Stock Exchange of Hong Kong Limited, the official website of the Company, designated newspapers, results meetings, press conferences, results roadshows, investor hotline and others. No significant error occurred on information disclosure for 2016. In 2016, the Company issued 54 non-scheduled announcements in both Chinese and English and 30 regular reports in both Chinese and English. Issue of non-scheduled announcements in both Chinese and English 54 2016 copies 45 2015 copies Issue of regular reports in both Chinese and English 30 2016 copies 15 copies 2015 In 2016, the Bank convened two results meetings and two press conferences in Hong Kong respectively. More than 80 individuals including domestic and foreign fund managers, analysts and media reporters were invited to attend the meetings. The Company organised three results roadshows in Hong Kong, the United States and others and met over 30 foreign institutional investors. The Company received visits of domestic and foreign institutional investors including InvestHK from Hong Kong, and Wellington Management and TIAA from the United States, as well as analysts of brokers. The Bank seized the opportunities arising from the visits of investors and analysts and introduced to them the Bank’s strategic direction and position of first-class international microcredit bank and its ideas and progress in business transformation. In 2016, the Bank replied the questions and suggestions made by investors through various channels in a timely manner, including answering over 60 telephone inquiries from investors, replying numerous email inquiries from investors and analysts. 24 Audit Committee Investment Management Office Supervision Committee Office of Supervisory Board Nomination and Remuneration Evaluation Committee Board of Supervisors Board of Village and Township Banks Development Strategy Committee Board of Directors Nomination Committee HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT | About Harbin Bank Organization Chart of Corporate Governance Shareholders’ General Meeting Risk Management and Related Transactions Control Committee Board Office Senior Management Harbin Branch Shuangyashan Branch Dalian Branch Tianjin Branch Chengdu Branch Security Supervision Centre Public Relations Department Training Centre Yichun Branch Qiqihar Branch Jiamusi Branch Mudanjiang Branch Qitaihe Branch Daqing Branch Credit Review Centre IT R&D and Operation Maintenance Centre Customer Service Centre Centralized Operation Centre Seal Management Centre Card Operation Centre Financial Sharing Centre Microcredit R&D Centre Performance Evaluation and Management Committee Agriculture Branch Internal Audit Department Hegang Branch Shenyang Branch Suihua Branch Jixi Branch Non-Performing Assets Management Committee Small Businesses Financial Services Chongqing Branch IT Management Committee Mobile Finance Department Assets and Liabilities Management Committee Asset and Liability Management Department Office Security Department (Discipline Inspection Division) Interbank Finance Department I Interbank Finance Department II Asset Escrow Department Wealth Management SBU Comprehensive Management Department Internet Finance SBU Risk Management Committee Human Resources Department Interbank Credit Approval Department Microcredit Management Committee Credit Review Committee Strategy Development Department Interbank Finance Headquarters Mobile Finance Headquarters Product Innovation Laboratory Modern Agriculture SBU Sino-Russia SBU Corporate Finance Department Small Enterprises Banking Department Retail Product Innovation Centre Credit Card Centre Consumer Finance SBU Microfinance SBU Housing Credit Banking SBU Retail Finance Department Retail Credit Department Financial and Accounting Department Centralized Operation Centre Operational Management Department Technology Development Department Compliance Management Department Asset Security Department Credit Headquarters Department Risk Management Department Retail Finance Headquarters Corporate Product Innovation Centre Headquarters Business Department Corporate Finance Headquarters 25 HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT | About Harbin Bank Internal Control In 2016, the Bank implemented a series of works on improving and optimising internal control The Bank strictly complied with the requirements of various laws and regulations on internal control normative system for enterprises. The Bank formulated a scientific internal control system while establishing a business environment which was under proper control and took into account risk conditions by fully borrowing advanced ideas from foreign countries. The Bank had a clear internal management framework. Risk Management The Bank upholds the core concept of “creating value through risk management”. Major risk exposures, such as credit risk, market risk, liquidity risk, operation risk, risk on interest rate of bank accounts, reputation risk, strategic risk and information technology risk are covered by the scope of risk management. Taking the implementation of the New Basel Capital Accord as an opportunity, we have further enhanced the standard of refined risk management. As of the end of 2016, the Bank had completed all the sub-projects, launched the system for RWA project, and completed the finishing touches such as self-evaluation on compliance, verification projects and special audit, which met the compliance requirement for voluntary application for high-standard measurement methods under the Administrative Measures for Capital of Commercial Banks. The risk management capability of the Bank constantly increased and the overall risk is controllable. Compliance Management The Bank promotes its compliance philosophy of “giving highest priority to compliance, making all employees in compliance, working in compliance actively, and creating value through compliance”, actively organises and initiates various internal control training sessions and keeps on strengthening incident prevention and control, consumer right protection, anti-money laundering management and other aspects. The Bank enhances compliance culture and internal control performance to build an internal control culture of “compliance with high efficiency”. During the Reporting Period, no major incident of non-compliance occurred in the Company. Anti-corruption and Integrity The Bank highly values the building of corruption-free management and occupational ethics, and the honest business atmosphere. In 2016, through conducting anti-corruption culture trainings, anti-corruption warning education, signing letters of commitment and other means, the Bank made the employees actively conform to the party discipline and regulations such as anti “four winds” and anti-corruption, strengthening the foundation of honest thoughts, effectively promoting the implementation of long-term mechanism establishment, and comprehensively boosting the anti-corruption and integrity works. The Bank also formulated the internal control requirements for the important positions, implemented post shifting system and coercive vacation system for important positions, established the relevant system of regulating employees’ conducts, strengthened the supervision and inspection on employees’ conducts, and built up the report and investigating mechanism for employees’ abnormal behaviour. 26 About Harbin Bank | HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT Harbin Bank Risk Management Organisation Structure Shareholders’ General Meeting Board of Directors Board of Directors Board of Supervisors Board of Supervisors Supervision and Evaluation Committee Risk Management and Related Transactions Control Committee Credit Review Committee Chief Risk Officer Senior Management Chief Credit Review Officer Chief Financial Officer Senior Management Assets and Liabilities Management Committee Non-performing Assets Management Committee Chief Capital Operation Officer Operational Management Credit Management Department Asset Security Department Business Unit Function Department Internal Audit Department Risk Management Committee Chief Information Technology Officer Credit Risk Management Audit Committee Market Risk Management Operational Risk Management Liquidity Risk Management Bank Account Interest Rate Risk Management Compliance Risk Management Information Technology Risk Management Reputation Risk Management Interbank Finance Headquarters Compliance Management Department Operational Management Department Technology Development Department Centralized Operation Centre Business Unit Function Department Interbank Finance Headquarters Asset and Liability Management Department Interbank Finance Headquarters Asset and Liability Management Department Financial and Accounting Department Compliance Management Department Technology Development Department Office Risk Management Department Overall Risk Management Branch Compliance and Risk Management 27 HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT | About Harbin Bank Social Responsibility Management According to the strategic goals set in the “Harbin Bank Strategic Plan for Development for 2016-2020”, in 2016, we carried out further research and evaluation on the indicators and targets of the annual social responsibility management and the sustainable development issues. We categorised, prioritised and made selection on such issues from two dimensions, being their “impact on corporate sustainable development” and “impact on the social sustainable development”, and determined the corporate social responsibility issues of significance for the year. With regard to the management performance and quantitative indicators of the selected issues, the Bank had taken into full account the strategic targets and business development directions for the new five years, corporate culture direction and expectations from the society, and the increasingly rigid regulatory requirements, thus actively establishing a scientific system for social responsibility information disclosure and management. Our Issues of Significance for 2016 Risk management and compliant operation Anti-money laundering and anti-corruption Staff career development Happy work, healthy life Internal Control Facilitate product development Service transformation Technological advancements Digital inclusive finance Support SMEs Financial services for farmers Targeted poverty alleviation 28 03 Innovative financial products and services 02 01 Inclusive finance Cultivation of talents 04 Green Bank 05 06 Charity Green credit Green bonds Low-carbon operation Support education Promote Sino-Russian cultural and art exchange Promote marathon “Happy Community” program About Harbin Bank | HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT Harbin Bank’s Stakeholders Expectation and requirements Communication Response Government To support national strategies and economic development of Harbin and other related regions. To properly execute national financial policies; take part in formulation of relevant policies and in relevant research and discussion; and submitting statistics reports. Consistently executed national macro-policies; supported national industry restructuring and change in economic development; supported the development of “agriculture, rural areas and farmers” and SMEs; supported the implementation of the policy of “Entrepreneurship and Innovation by All”. Regulatory authorities Compliant, healthy and stable operation and stronger risk control. To execute regulatory policies; and submitting special reports and statistics reports. Strictly executed regulatory policies and requirements with compliant and honest operation, stronger internal control system and comprehensive risk management. Shareholders Good operating results and investment return, scientific risk management and control, continuous and stable operation, and timely, accurate and complete information disclosure. Accurate and timely information disclosure; regular visits and reports; general meetings; and results roadshows. Sufficient protection of legitimate interests of shareholders and investors and ever improving operational and management capabilities; constant shareholder value creation; stronger communication with the capital market by proper arrangements for investor and analyst visits and response to telephone and online inquiries; and active participation in domestic and overseas investor conferences held by investment banks and securities traders and proactive results announcements and roadshows for investors. Clients Quality financial services and higher clients’ satisfactory. Seminars; online and telephone advertisement; and survey on clients’ needs. Accelerated innovation in financial products and services, expanded customer service channels, invited customers to our key events, and strengthened customer relations management and complaint handling and satisfactory survey. Environment To develop inclusive finance, to support “agriculture, rural areas and farmers”, “new green energy”, SMEs’ business development and Sino-Russia credit. Strict implementation of national energy-saving and emission-reduction policies; and taking part in public welfare activities relating to new green energy. More resources to credit for new green energy to support energy-saving and emission reduction, promoting green finance and paperless office to enable the integrated sustainable development of economy, environment and the society. Staff Room for personal development, healthy and safe work environment and encouragement to take part in management. Staff representatives’ meeting; and proper internal communications mechanisms to gather staff’s views and suggestions. Broader career development, improved incentive and restraint mechanisms and performance assessment, attention to staff’s work environment and physical and mental health, and protection of staff’s legitimate interests to facilitate the culture of “Happy Work, Healthy Life”. Partner Stronger communications and interaction, win-win situation through strategic cooperation. Strict contractual performance; better tender procedures; stronger regular communications; and regular visits. Fair and just tenders and procurement; fair cooperation and honest operation. Community To take part in community establishment and development and be positive in assuming social responsibility to promote harmony in the society. To actively take part in public welfare projects by establishing the United Charity Foundation; and conduct regular relevant interactions and activities. Actively carried out poverty relief activities, strongly supported the education and cultural industries, actively participated in charity donation, innovated service channels, established branches for communities. Stakeholder 29 HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT | Our Financial Responsibility Management Our Financial Responsibility Management According to the new five-year strategic plan for 2016-2010, the Bank will continuously expand the leading advantage of microcredit, building a first class international microcredit bank providing quality and distinctive services while accelerating the development of mobile finance and promoting the progress of digital inclusive finance. Harbin Bank will make more contribution to the implementation of the Plan for Promoting the Development of Inclusive Finance (2016-2020) in China by boosting the realisation of strategic goals. 167,700.5 Microcredit amounted to RMB167,700.5 million 105,793.3 Personal loans amounted to RMB105,793.3 million 61,907.2 Corporate loans to small enterprises amounted to RMB61,907.2 million 30 Our Financial Responsibility Management | HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT 69,405.1 9,620.2 Personal consumption loans amounted to RMB69,405.1 million 26,768.0 Loans to farmers amounted to RMB9,620.2 million Loans to small enterprise owners amounted to RMB26,768.0 million 02 Our Financial Responsibility Management | HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT One of the oil painting collections of Harbin Bank Name of artwork: Flood Prevention Memorial Tower Artist: Nikolay Repin (Russian people’s artist) 31 HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT | Our Financial Responsibility Management New Five-year Plan: Microcredit Strategic Goals Upgrading The Bank has comprehensively implemented “Strategic Plan for Development for 2016-2020” since 2016. The target of the new five-year strategic development plan is that the Bank will continue to uphold the business philosophy of “Inclusive Finance, Harmonious Co-Enrichment”, and insist on adhering to the following paths of development: microcredit development; characteristic, collectivised, international development; mobile financial business and offline traditional banking business dual development; development supported by four financial sectors namely Retail Finance, Corporate Finance, Interbank Finance and Mobile Finance; and product innovation-oriented development. We strive to become a “first class international microcredit bank which provides excellent and distinctive services” by 2020. According to the new five-year strategic plan, the Bank will continuously expand the leading advantage of microcredit, build itself a first class international microcredit bank; focus on retail finance and strengthen the core competitiveness; accelerate the development of mobile finance, promote the progress of online banking; steadily develop the corporate finance, effectively coping with the market competition; and leverage the geographical advantage of being close to Russia, constructing the international development path. Harbin Bank will make greater contribution to the implementation of the Plan for Promoting the Development of Inclusive Finance (2016-2020) in China by promoting and realising the above strategic goals. Further Expansion of the Strategic Advantage of Microcredit In 2016, the Bank vigorously implemented the operation transformation driven by the theme of “Year of Products”. Customeroriented product innovation was the focus of the year. The Bank facilitated the incorporation of big data internet technology into its traditional financial services, constantly enhanced the innovative development ability of various business such as retail finance, microfinance, consumption loans, loans to small enterprises and housing finance, expanded and deepened the inclusive financial services, and practically promoted the sustainable strategic development of microcredit. The microcredit services of the bank mainly included loans to small enterprises, consumption loans, microfinance, housing finance, agricultural loans and others. As at the end of 2016, the balance of the Bank’s microcredit loans reached RMB167,700.5 million, representing an increase of 49.9% from the end of last year. It is worth mentioning that the Bank’s microcredit loans accounted for 83.2% of the Bank’s total loans to customers, a record high again after the Bank’s microcredit loans accounting for more than 70% of the Bank’s total loans to customers for the first time in 2015. 32 Our Financial Responsibility Management Distribution of the balance of microcredit loans 65.2 75.3 83.2 | HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT 1,677.005 619.072 1,118.941 2014 2015 502.977 808.369 2016 376.092 615.964 Corporate loans to small enterprises 432.277 Personal loans % of total loans to customers Distribution of the balance of personal loans 1,057.933 34.9 55 Balance of microcredit loans (RMB100 million) Distribution of balance of microcredit loans (RMB100 million) 63.1 2014 1,057.933 2015 694.051 2016 615.964 Personal consumption loans 432.277 Loans to small enterprise owners 343.204 178.196 Loans to farmers 159.381 94.700 % of total microcredit loans Microcredit customer numbers 99 99 Total personal loans (RMB100 million) 267.680 175.584 96.176 96.202 Distribution of balance of personal loans (RMB100 million) 99 1882 1863 1020 2014 725 1001 718 2015 2016 % of total customers Total customers (0’000 people) Microcredit customers (0’000 people) 33 HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT | Our Financial Responsibility Management Government education loan During the past 10 years of being authorised to process government education loans to residents in Heilongjiang since 2007, the Bank assisted students in 22 provinces, 5 autonomous regions and 4 municipalities, of which Heilongjiang Province covered 14 regions, 82 education bureaus and over 80 high schools. As at the end of 2016, government education loans granted amounted to RMB2,500 million, of which RMB600 million was granted in 2016. Outstanding loans amounted to RMB1,240 million, serving over 180,000 students, of which 25,000 students signed the contracts in 2016. The Bank has granted Student-Origin-Based Loans to graduate student since 2014. As at the end of 2016, RMB470 million of Student-Origin-Based Loans were granted to nearly 40,000 graduate students. contracted impoverished students in 2016 loans were granted in 2016 Accumulated government education loan granted RMB 2,500 600 Accumulated impoverished students who are granted loans million (RMB) 25,000 180,000 million outstanding loans RMB 1,240 2014 million students 2015 2016 Development of village and township banks Since the Bank has established the first village and township bank in 2008, the Bank established 24 village and township banks (including Bayan Rongxing Village and Township Bank and Huining Huishi Village and Township Bank) throughout the eastern, middle and western regions in China, as to actively practice the initiative of supporting agriculture economic development issued by the government. The establishment of 8 village and township banks (including Ningan Rongxing Village and Township Bank and Tianshui Maiji Rongxing Village and Township Bank) was approved in 2016, playing an important role in activating agriculture financial market, strengthening agriculture financial system, developing inclusive finance and other aspects. Ten of the banks were located in impoverished counties as recognised by the central government and they were Huining Huishi Village and Township Bank, Yanshou Rongxing Village and Township Bank, Baiquan Rongxing Village and Township Bank, Huachuan Rongxing Village and Township Bank, Hainan Baoting Rongxing Village and Township Bank, Chongqing Wulong Rongxing Village and Township Bank, Chongqing Youyang Rongxing Village and Township Bank, Huanan Rongxing Village and Township Bank (to be established) , Tianshui Maiji Rongxing Village and Township Bank (to be established) and Langzhong Rongxing Village and Township Bank (to be established). 1,147,363 1,030,349 940,849 322,463 267,758 10 7 34 38 38 219,379 2015 12 Number of village and township banks in certified national impoverished counties (bank) Number of rural service points (point) * Gansu: Huining, Tianshui (to be established) Heilongjiang: Yanshou, Baiquan, Huachuan,Huanan (to be established) Hainan: Baoting Chongqing: Wulong, Youyang Sichuan: Langzhong (to be established) 34 2014 7 14 14 2016 Number of rural service points for the underprivileged and impoverished (point) * Including Business Department Number of clients of village and township banks (account) Outstanding loans of village and township banks (RMB’0,000) * Number of clients of village and township banks was the total number of depositors and loan clients in village and township banks as at the end of the reporting period. The data for 2015 and 2014 were also adjusted accordingly to ensure that the indicator in different years shared the same statistical scope. * Excluding discount notes Our Financial Responsibility Management | HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT Year of Products: Accelerating Digital Inclusive Finance In the traditional banking development generation with the underdeveloped mobile internet technologies, the Bank has actively performed the corporate social responsibility and promoted the development of inclusive financial business by establishing physical branches network and microcredit technology, products and services over a long period of time. In the recent years, with the revolutionary promotion brought to the mobile financial development by the digital technology, digital inclusive finance is becoming a new target and new responsibility that we strive for. We also include “insisting on online mobile banking and offline traditional banking dual development” in our new five-year strategic development plan. In order to substantially enhance the digital inclusive financial service capability and accelerate the establishment of the firstclass international microcredit bank, the Bank centred on the work theme of “Year of Products” in 2016. We comprehensively consolidated, enhanced and deepened the foundation and results of last year of “Mobile Finance Year”, insisted on prioritising mobile financial development, and by meeting customer experience and customer demands as the starting point, the Bank simultaneously facilitated mobile finance product disruptive innovation and traditional business online migration. The Bank organised 24 headquarters innovation salon activities throughout the year and over 70 products were shortlisted as star products. In particular, the Bank consolidated its online and offline resources, launched innovative products including “Hua Shi Loans” ( 话时贷 ), Cloud Quick Pass ( 云闪付 ) and QR Code Series and realised online processing of major loan products including “Cun Li Bao”( 存利宝 ), “Secret Purse” ( 私房钱 ), White-collar Loans ( 白领贷 ), Harvest e-Loans ( 丰收 e- 贷 ) and Asset Tong ( 资产通 ). We are glad that, during the reporting period, our mobile financial services level and digital inclusive financial services capability were greatly enhanced, achieving satisfactory results where serving clients range, product quality and scale, and brand influence were lifted at the same time. The more important point is that clients living in remote regions, especially for those living in remote agricultural regions, could therefore enjoy the convenient financial services. As at the end of 2016, the replacement rate of business transactions through the Bank’s electronic banking reached 83%, and that of mobile banking reached 39%, representing an increase of 10 and 15 percentage points over the end of last year respectively. 35 HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT | Physical outlets Our Financial Responsibility Management 322 352 355 2014 2015 2016 261 274 279 2014 2015 2016 17 17 24 17 branches 1 sub-branches 1 24 32 29 36 34 1 branch-level financial service centre for small enterprises controlling village and township banks sub-branches of village and township banks * The establishment of 8 village and township banks was approved in 2016. Self-service banking 780 904 940 2014 2015 2016 381 395 372 2014 359 344 2015 2016 277 159 160 161 0 ATMs 36 BCDMs multi-media inquiry machines 4 12 card issuance machines Our Financial Responsibility Management Percentage of customer complaints addressed 100% | 95537/ 400 60 95537 HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT The Bank provides 24-hour telephone banking services to customers through the unified national customer service hotline. Online banking Phone banking 145.09 138.09 234 94.77 230 245.7 90.04 52.56 50.68 2014 2015 1.88 Total customers (0’000 people) 4.73 2016 7 Corporate online banking customers (0’000 people) Mobile phone banking Total business capacity (0’000 business calls) Personal online banking customers (0’000 people) WeChat banking Farmer-assistance e-stations 1879 85 1574 1600 32 Direct banking The online direct banking was launched successfully in 2016, supporting app client and WeChat client terminals, and offering different functions including investment and wealth management, daily-life payment, information enquiry and fingerprint log-in, as well as supporting the binding of debit card of 17 other banks. 30 10 QR coed for mobile banking Users (0’000 people) 17 14 Followers (0’000 people) Stations set up Supporting the binding of debit card of other banks * Cover 8 cities and 422 villages and townships in Heilongjiang Province. 37 HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT | Our Financial Responsibility Management On 29 September 2016, the Shenyang Branch of Harbin Bank promoted financial knowledge to 300 new students in the School of Economics of Liaoning University Protection of Rights of Financial Consumers While facilitating the development of digital inclusive finance, the Bank highly values the protection of rights of financial consumers, and regards strengthening the popularisation of public financial awareness and promotion education as our responsibility. We have established a consumers’ interests protection system with clear duties, complete content and smooth channels in order to practically protect the legitimate interests of financial consumers. In 2016, the Bank stepped up efforts in popularisation and promotion of financial knowledge by sticking to the combination of staff and media promotion, the combination of counter and outdoor promotion and the integration of traditional and innovative forms through the new media distribution channels such as the official website, WeChat and WeChat banking. The Bank actively conducted a series of activities including Financial Literate Households, Financial Knowledge Month, Financial Literate Colleges, and “315” Consumers Protection Promotion, emphasising on increasing the risk prevention awareness and responsibility-taking awareness of financial consumers, and lifting the financial sense and literacy of the public. Meanwhile, the Bank reinforced the protection of consumers’ personal information security by strengthening the technological support, and issued necessary reminders regarding the public online banking security by means of establishing safety advice section on the official website and others. The Bank established a comprehensive customer complaint handling mechanism and workflow for handling complaints so as to regularly summarise and analyse the complaint related matters to identify the potential issues for effective improvement in services and management. Anti-money laundering management The Bank highly concerns the establishment of the capability to self-regulate suspicious transactions under the background of rapid development of mobile finance. With the aim of exploring and establishing interactive prevention control system for online and offline businesses, we continue to optimise its anti-money laundering management mechanism and fully enhance the management standard for anti-money laundering and anti-terrorism financing, thereby performing its corporate social responsibility effectively. In 2016, the Bank enhanced coordinated management of customer identification and customer risk rating management, improved the anti-money laundering monitoring personnel list, and optimised its anti-money laundering management system construction, greatly enhancing the quality of large-settlement and suspicious reports. Meanwhile, the Bank actively assisted in anti-money investigations carried out by the regulatory authorities, organised theme trainings and campaigns on anti-money laundering, set up good internal and external environment for anti-money laundering. 38 Our Financial Responsibility Management | HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT Sino-Russia Financial Council: Facilitating “One Belt and One Road” Development In 2016, Harbin Bank proactively facilitated the development of comprehensive strategic partnership between China and Russia, deeply promoted the implementation of “One Belt and One Road” initiative, and established cooperation via the “Sino-Russia Financial Council” sharing platform. As at the end of 2016, the influence of Sino-Russia Financial Council continued to grow with 27 new members. The number of members increased to 62 from 35 at the establishment of the Council. In 2016, Harbin Bank arranged four cooperative projects for Russian cross-border financing with an amount of RMB12,600 million, and 29 business cooperation agreements were signed, which became a new power for banks engaging in SinoRussia financial business and international financing. In particular, the Bank, as the leading bank, together with Chinese alliance members, successfully entered into syndicated loan agreement of RMB10,000 million with Vnesheconom Bank (VEB), the sole policy bank in Russia. This was the most influential financial cooperative project between Chinese and Russian with the largest number of participants and the largest scale. Moreover, in 2016, Harbin Bank’s cross-border E-commerce payment platform was selected as the major project for Heilongjiang Luhai Silk Road Economic Belt by Heilongjiang Provincial Government, and was selected and included in the major construction project repository of the National Development and Reform Commission compiled for “One Belt and One Road”. As the member of the Sub-Committee for Financial Cooperation of the Regular Meeting between Presidents of China and Russia and the Chinese executive president of the Sino-Russia Financial Council, Harbin proactively facilitated the “One Belt and One Road” development and played an important role in the development. 2016.04 The “2016 Cooperative and Innovative Forum of Sino-Russia Financial Council” was held. At the forum, over 10 alliance members and representatives from China and Russia started conversation centring the three major themes, namely the “new development and opportunities arising from the “One Belt and One Road” initiative”, the “new spotlights in Sino-Russia financial cooperation from priority development areas in Russia” and the “new dynamic for Sino-Russia trading cooperation offered by Sino-Russia Financial Council”. 2016.07 The Bank participated in the 3rd China-Russia Expo. During the meeting, leaders from China and Russia visited the exhibition booth of the Bank, and highly recognised the role of Harbin Bank in facilitating the development of Sino-Russia Financial Council. They said that Sino-Russia Financial Council was the results of practical cooperation between China and Russia, which further deepened the comprehensive strategic partnership between the two countries. 2016.09 The 2nd General Meeting of Sino-Russia Financial Council was successfully convened under the framework of the Eastern Economic Forum held in Vladivostok, Russia. The general meeting was included in the national agenda of the Russia Eastern Economic Forum. During the meeting, the Bank, as the leading bank, together with 9 Chinese financial institutions, entered into RMB10,000 million Loan Agreement with Vnesheconombank (VEB). Pursuant to the agreement, such syndicated loan will be primarily used for Sino-Russia trades and infrastructure construction. 39 HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT | Our Environmental Responsibility Management Our Environmental Responsibility Management The Bank fully understands its environmental responsibility. In 2016, under the theme of “Year of Products”, the Bank strived to establish itself into a green bank. It greatly increased the scale of green credit operations, strengthened the awareness of green office for resources conservation, and proactively participated in environmentally friendly green charity events. 752 1,587 Green credit balance for 2016 amounted to RMB1,587 million 40 Green credit balance for 2015 amounted to RMB752 million Our Environmental Responsibility Management | HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT 42 The number of existing clients for green credit was 42 in 2016 569 62 The number of existing clients for green credit was 62 in 2015 Green credit balance for 2014 amounted to RMB569 million 02 Our Environmental Responsibility Management | HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT One of the oil painting collections of Harbin Bank Name of artwork: On the Songhua River Artist: Psarev Viktor Panteleevich (Russian people’s Artist) 41 HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT | Our Environmental Responsibility Management Green Credit The Bank strictly implements financial policies including green credit. It actively explores the development path for green financing, and focuses on supporting the customer growth and industry development on areas in relation to green economy, low-carbon economy and circular economy. The Bank strictly controls the credit to industries characterised as being of high pollution, high energy consumption and overcapacity, and gradually squeezes and eliminates the existing loans to such industries. Through the setting of credit limit standard, the Bank strictly controls the best growth rate for negative list at different aspects. Our credit resources allocate to key support areas at priority. At the same time, we focus on environmental and social risk exposures. As at the end of 2016, the green credit balance of the Bank amounted to RMB1,587 million, representing a year-on-year increase of 111%. There were 42 green credit customers. In 2016, the Bank also actively facilitated the issuance of green financial bonds. It is proposed that, with the consent from regulatory authority and approval from the People’s Bank of China, green financial bonds of not more than RMB5.0 billion for a term of not more than five years (inclusive) will be issued in the interbank market. The proceeds raised from the issuance of the bonds will be used to support green industry projects. This is an important milestone for Harbin Bank in establishing itself into a green bank. 62 15.87 Year-on-year increase of 7.52 5.69 47 42 111% 2014 2015 2016 Green credit balance (RMB100 million) 42 Existing green credit (customers) * As at the end of 2016 Our Environmental Responsibility Management | HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT Green Office We always and continue to enhance the awareness of green office, and establish the Bank into a resource-conservation, environmentally friendly enterprise. In our practical operations, we actively promote paperless office, aiming to achieve energy conservation, low-carbon operation and emission reduction. We continue to incorporate the “green office” concept into our daily operations. We encourage our staff to save and conserve resources little by little, and enhance their awareness of water conservation, electricity and paper saving, thereby lowering the impacts of administrative and office activities on the environment. In 2016, the Bank implemented electronic office throughout the bank, and promoted paperless conference, video and telephone conference. It, among other things, upgraded the mobile OA system, facilitated online approvals for all matters except for special and confidential matters, launched the OA conference appointment system and implemented IP telephone system. In 2016, the Bank especially implemented centralised printing sharing at the headquarters building. Printers were installed at each level of the new headquarters building. The staff always used paper based on the principle of “necessity, rationality and conservation”. This effectively reduced use of paper, thus lowering the administrative and office expenses. We have incorporated the green concept into our procurement management systems. We enhance centralised procurement management, regulate centralised procurement, strengthen the effective prior control over procurement, supervision during procurement and post-management on procurement, enhance fund utilisation efficiency and secure the procurement quality. Based on the actual condition of the Bank, the Bank has published the Administrative Measures for Centralised Procurement of Harbin Bank and the Operating Procedures for Centralised Procurement of Harbin Bank. 43 HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT | Our Environmental Responsibility Management 2014 Office paper consumption (tons) Power consumption (kWh) Water consumption (tons) 6,954,762 50,599 8.405 7.3 2015 2016 Diesel consumption (Litres) 2,800 2,800 2,200 7 3,880,976 3,750,000 15,100 14,803 Including diesel used in generators at engine rooms, vehicle diesel consumption, etc. Natural gas consumption (cubic metres) Sewage discharge (cubic metres) Toner cartridges used (pieces) Kitchen waste produced (kg) 243 156,600 395,328.84 73,236.45 329,276.40 248,464.91 * Note: 1. the statistics for the Bank’s headquarters only, excluding branches and village and township banks. 2. For 2016, it refers to the consumption at the new headquarters building. Prior to 2015, it refers to the consumption at the headquarters office at Shangzhi Street. The floor area of the new headquarters building is greater than that of the headquarters office at Shangzhi Street. 44 Our Environmental Responsibility Management | HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT Green Charity Campaign Over the years, while continuing to develop green credit operation and promote green office, the Bank always adheres to promoting and organising a series of charity campaign for environmental protection and ecosystem improvement. We continue to enhance employees’ awareness of environmental protection, and establish the “green bank” brand through actions to actively perform social responsibility. In 2016, the Bank fully developed mobile finance, facilitated green financing, and promoted its green bank image through online charity activities. Through the launching of “Donating a Bit for Charity ( 我为公益捐一分 )” campaign, starting from our staff, we encouraged customers to prioritise the selection of e-channels for operation, and one piece of invoice or statement will be saved for every operation. Accumulated expenses on paper of RMB200,000 were saved under the campaign and fully donated to “Hongyi Education-aid Association”. In 2016, our branches in Harbin, Daqing, Qiqihar and other cities participated in green charity campaigns organised by local governments and NGO organisations, including the “Mother River Protection” operation and tree planting event in spring. “Donating a Bit for Charity” campaign Accumulated expenses on paper being saved (RMB) 200,000 45 HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT | Our Social Responsibility Management Our Social Responsibility Management We strive to perform corporate social responsibility and contribute to the society through actions.In 2016, we conducted research on strategic charity planning, and defined the directions for our charity works, including support the “Happy Community Program”, cultural exchange program between China and Russia and Harbin International Marathon etc. In addition, we established the United Charity Foundation. We advocated the concept of “HAPPY WORK, HEALTHY LIFE”, and strived to become a bank with strong cultural foundation, outstanding charity brand and good reputation. 23.1970 Total charity donation made in 2016 amounted to RMB23.1970 million 6.12 5.95 Total charity donation made in 2015 amounted to RMB5.95 million 46 Total charity donation made in 2014 amounted to RMB6.12 million Our Social Responsibility Management | HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT 18.82 18.82 million customers were served at the parent bank 322,500 6,969 A total of 6,969 employees 322,500 customers were served at village and township banks 02 Our Social Responsibility Management | HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT One of the oil painting collections of Harbin Bank Name of artwork: Sun Island Artist: Zhigalov (Russian meritorious artist) 47 HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT | Our Social Responsibility Management Staff Career Development We always adhere to the philosophy of “people-orientated and talent development” and the career direction of “clean and smart working”. With the combination of internal training and talent introduction, we have established a professional, dedicated and expert team comprised of quality staff. In 2016, strictly in compliance with laws and regulations including the Labour Law, the Employment Contract Law and Social Insurance Law, the Bank prohibited employment of child labour. The Bank entered into employment contracts with all employees. In addition, the Bank timely made contributions to social insurance funds in full, and purchased additional labour injury insurance for employees. It opposed any form of forced labour. Regular body checks were organised for all employees with body check rate of 100%. The Bank distributed labour protection appliances and established the “Helping Association”, thereby protecting the rights of our employees regardless of their religion, race, gender and colour. The Bank actively created a unified and upward labour relationship. The Bank established broadband remuneration management system, optimised career path and career training, motivated staff’s initiative in a scientific and effective manner, and enhanced their loyalty and sense of identity. Establishment of talent pool In 2016, Harbin Bank proactively facilitated the establishment of talent training system which centring the “Leaders Program”. Over 2,500 staff members throughout the Bank participated in the “Leaders Program”, and 673 participants were allocated to the talent pool for comprehensive management and professional management. A number of talented, young management have taken important management positions. The “Leaders Program” had fully completed the encoding for biographies of staff in the pool, discussion on capability of targeted position, Wave assessment, case study workshop, talent mapping and preparation of accurate development and training plans, etc. Meanwhile, based on our operating management and professional management mode, the Bank identified the pros and cons of talent reserve, and completed change of roles and capability enhancement through the combination of practice, exchange program and training. In 2016, the Bank’s “Professional Manager Training Program”, which had been implemented for 8 years, was classified as “Innovative Case for Talent Training in Harbin” by Harbin government. During the reporting period, strictly in compliance with the requirements under the Regulations on the Management of Employment of Foreigners in China, the Bank attracted 6 foreigners to join the Bank, which adapted to the demands for international business development. Career development path Striving to the principle of “talent-post matching and proper human resources allocation”, the Bank has established an open career development platform, which guides our employees to plan their career dreams and targets in a scientific, reasonably way, and properly deploys our employees. Through internal recruitment, career promotion, work shifting, talent exchange programs, career training and other means, the Bank has offered rich, diversified and comprehensive work assignments for its employees, thus further enhancing the enthusiasm of employees on their works and creating a multi-channel career development for them. During the reporting period, we organised and conducted different kinds of works, including recruitment for vacancies in headquarters and branches, talent reserve for assistants to presidents in branches and sub-branches, and selection of young management. We continued to adjust our team structure and improve the establishment of talent team of Harbin Bank. 48 Our Social Responsibility Management | HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT Training and Education In 2016, we enhanced our training standards, improved the training design system, and focused on the in-depth integration of internet and daily works. We were on our way to build ourselves into a “learning organisation”, which advocated life-long learning and continued to promote the moral and professional corporate culture. In 2016, departments at the headquarters of the Bank (excluding its subsidiaries) conducted 182 training sessions in total, which primarily focused on customer relationship, new products introduction, mobile and internet integration, staff skill training, code of conduct of financial industry and general management skills. Among which, there were 108 internal training sessions and 74 external training sessions for selected staff members. The total attendance of the staff training sessions amounted to 4,584, and the total training hours amounted to 2,154. In June 2016, the Bank, in cooperation with Harvard Business School, organised the well-received 5-day “Customer Centralisation Strategy and Leadership Training Program” in Shanghai for 71 senior and middle management and staff representatives. Average training hours by gender 234 19,786 182 178 123 122 101 108 105 135 2014 7,771 74 72 56 2015 4,584 33 Training sessions in departments at the headquarters Internal training sessions External training session 2016 Total attendance of the staff training sessions Male staff Female staff (training hour/person) (training hour/person) Headquarters Branches 312 342 174 144 96 54 24.3 60 38.1 338 308 144 142 170 142 95 48 52 Senior Operating Junior Technical management management management staff (training hour/person) (training hour/person) (training hour/person) (training hour/person) 28.4 52 Operating Junior management management (training hour/person) (training hour/person) 60 Technical staff (training hour /person) 49 HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT | Our Social Responsibility Management By type of employment 7,408 By gender 7,131 6,969 4,182 4,020 3,226 3,111 3,913 3,056 2014 2015 2016 Full-time staff (person) Male staff (person) Female staff (person) By age By order 6,043 5,362 5,507 5,024 4,374 2014 1,620 1,566 1,816 426 Aged under 35 (person) Aged 35-45 (person) Staff turnover rate by gender 2015 1,478 542 779 12 Aged 45 above (person) 15 134 781 2016 130 Senior management Operating management (person) (person) Junior Technical staff management (person) (person) Staff turnover rate by age 2015 2016 6.02 5.13 2.40 4.46 4.04 3.08 2.52 0.73 Male staff (%) 50 Female staff (%) Aged under 35 (%) Aged 35-45 (%) 1.52 0.11 Aged 45 above (%) 425 0 0 Number of death in Death rate in Day of absence due relation to work relation to work to work injuries (days)(commute) (commute) (commute) Our Social Responsibility Management | HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT Public Welfare Actions The Bank strives to establish itself into a bank with strong cultural foundation, charity brand and good reputation. In order to facilitate the enhancement of our ability in performing social responsibility, and promote our “Harbin Bank Charity” brand image, the Bank and Public Cooperative Management and Consultation Co., Ltd. ( 公域合力管理咨询有限公司 ), a prestigious non-profit organisation research team in China, jointly conducted the “Research on Harbin Bank’s Strategic Charity Planning” in 2016, pursuant to which the directions for our charity works, including support the Happy Community Program, cultural exchange program between China and Russia, Harbin International Marathon and education for poverty students, were defined. In addition, we established the United Charity Foundation to facilitate the development of our charity campaigns professionally with a more professional team. We advocate the volunteer culture. In the 2016 Harbin International Marathon, which was sponsored by the Bank, 104 staff members participated in the event as volunteers, of which 28 medical volunteers possessed CPR (cardiopulmonary resuscitation) and AED (automated external defibrillator) certificate. Approximately 700 staff members joined the cheering team and performance team of the event. With the launch of “Happy Community Program”, the staff from two pilot branches joined the volunteer team under the program. As at the end of 2016, the total expenses used in charity projects of the Bank during the reporting period amounted to RMB23.1970 million. Incumbent on Supporting Education Online charity program of “Hongyi Education-aid Association”. From September 2015 to March 2016, by linking charity campaign with the internet, Harbin Bank launched an online charity campaign “Donating a Bit for Charity ( 我为公益添一分 )”. Under the campaign, every online banking transaction conducted by customers saved one piece of invoice or statement, with relevant expenses being saved as well. On 15 November 2016, the accumulated expenses saved under the campaign of RMB200,000 were fully donated to “Hongyi Education-aid Association”, providing scholarship for 200 students. The Harbin Bank Hongyi Education-aid Association was established by Huining Huishi Village and Township Bank in 2009 to especially provide financial assistance to students from poor families taking the forthcoming college entrance examinations in Huining County, Gansu Province. As at the end of 2016, a total of 799 students received scholarship of RMB811,000. Donations to Harbin Institute of Technology Education Development Foundation for seven consecutive years. Since 2010, Harbin Bank had made donations to Harbin Institute of Technology Education Development Foundation for seven consecutive years, which were used for the university’s development and establishment. The accumulated donation amounted to RMB6.27 million. In 2016, the donation made amounted to RMB1.80 million. 51 HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT | Our Social Responsibility Management Harbin Bank’s “Love Bookstore” helps improve the reading environment for teenagers in rural villages. The Harbin Bank’s “Love Bookstore” was jointly founded and established by our Harbin branch and the Communist Youth League Harbin Committee in 2014, aiming to improve the reading environment for teenagers in rural villages and promote honesty culture and financial knowledge. In 2016, in addition to book donation, our Harbin branch also conducted different activities for children at the Love Bookstore, including diversified essay competition, speech competition and “one-on-one” education program. Building the Bridge for Cultural and Art Exchange between China and Russia While continuing to expand the edges of our Sino-Russia financial services and facilitating “One Belt and One Road” development through Sino-Russia Financial Council, the Bank highly focuses on the cultural and art exchange between China and Russia, aiming to build a bridge for humanities and communications. During the 32th China Harbin International Ice and Snow Festival held in January 2016, the Russia Sculpture Exhibition was held at the headquarters building of Harbin Bank, which was open to the public for a period of one month. A total of 142 art pieces were exhibited in the Russia Sculpture Exhibition, which were created by famous sculptors, people’s artists and meritorious artists of Soviet Russia and Russia, including Anikushin Mikhail Konstantinovitch. All exhibits were collections of the artists or their families. The sculptures included memorial sculptures, garden sculptures, grave sculptures, decorative sculptures, sign sculptures, as well as sculptures of historical icons, animals and records of historical events. At the same time, the exhibition also exhibited some of the art pieces in the large oil painting exhibition, the “Golden Memories: Harbin under Strokes of Russian Artists”, held in October 2015. The exhibition offered a grand festival of Sino-Russia culture for domestic and overseas tourists and Harbin citizens, and received great responses and high recognition by the public. 52 Our Social Responsibility Management | HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT Creating New Landmark by Sponsoring Harbin International Marathon It is said that someone can learn about a city by participating in a marathon. As a bank serving citizens in Harbin, Harbin Bank makes contribution to our hometown, enrich the new culture of the city and enhance city level while realising healthy, sustainable development of the Bank. Hence, the Bank sponsors the “Harbin International Marathon” for ten consecutive years since 2016. During the “Harbin Bank 2016 Harbin International Marathon”, 30,000 marathon lovers across the world applied for entry of the marathon and experienced the cooling summer in Harbin. During the “First Harbin International Marathon”, a total of 104 staff members provided voluntary services for Harbin International Marathon (including 28 certified medical volunteers) and approximately 700 staff members joined the cheering team and performance team. They contributed to the success of the event and earned precious experience for serving at an international event. United Charity Foundation & Happy Community Program The United Charity Foundation, jointly founded by Harbin Bank and its senior management, was officially established on 30 June 2016, reflecting that Harbin Bank’s charity campaigns were moving towards professional management. As at the end of 2016, the “Happy Community Program” pilot project, led by the United Charity Foundation, was launched in Harbin. The project was conducted based on the policies on eco-civilisation construction and local community governance promulgated by the central government. Block C of Century Garden in Songhua District, Harbin will be served as target community. We encouraged residents to return to the community and actively participate in community activities and public affair management. It is proposed that the 3-year “Happy Community Program” pilot project will be implemented in 3 stages: 01 First stage (1st year) 02 Second stage (2nd year) 03 Third stage (3rd year) Acti vate c om mu nit y re sou rc e s, advocate voluntary services, seek for community leaders and establish community self-organisations. Promote the collective actions of community self-organisations from private issues to public affairs, and respond to community problems; the community micro-funds were preliminary established, which formed a selfgovernance force within the community. Re se a rc h o n ac tio ns u nd e r the community mutual funds, and conclude and promote the experience in community selfgovernance mode. 53 HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT | Our Awards and Honours Our Awards and Honours Awarding organisation Name of Award Month of Award 5-Star Outlets in Provision of Standard High-Quality Services (Business Department of each of Dazhi sub-branch, Harbin West sub-branch and Xuefu sub-branch of Harbin branch) January 2016 Top 1000 Model Units (Harbin West sub-branch of Harbin branch) March 2016 “Revolving Loan” for small and micro enterprises: 2015 Top 50 Financial Products for Small and Micro Enterprises June 2016 China Banking Association (Citi Bank Group) 2016 Venture Award for Micro Enterprises: Outstanding Female Venture Award (Wang Wanhong, our micro-credit customer) November 2016 Heilongjiang People’s Government Advanced Financial Institution for Promoting Economic and Social Development (2013-2015) November 2016 THE BANKER of United Kingdom 2016 Top 1000 World Banks: ranked 207th July 2016 The Fortune (Chinese Edition) 2016 Top 500 in China: ranked 416th July 2016 THE ASIAN BANKER Top 500 Banks in Asia-Pacific Region: ranked 99th November 2016 Clearing Center For City Commercial Banks 2015 Outstanding Award for System Access January 2016 China Online Banking Promotion Alliance Mobile Banking: 2016 Best Creative Customer Experience Award March 2016 China Financial Certification Authority (CFCA) “Donating a Bit for Charity” Campaign: 2016 Best Promotion Award March 2016 Securities Times 2016 Top Ten Innovative Projects in China April 2016 China Banking Association THE BANKER THE ASIAN BANKER Syndicated Loans to Russia: Top Ten Innovative Financial Products (Corporate Business) under 2016 China Financial Innovation Award White-collar e-Loans: Top Ten Innovative Financial Products (Retail Business) under 2016 China Financial Innovation Award Chinese Awards: 2016 Best Employee Management Chinese Awards: 2016 Best Regional Trade Finance Bank of China May 2016 June 2016 Securities Times Lilac Wealth Management: Best Wealth Management Brand of City Commercial Bank (Rural Commercial Bank) of China June 2016 China Online Banking Promotion Alliance 2016 Mobile Bank with Greatest Potential in China July 2016 China Co-operation Times Rural Development Research Centre of the Chinese Academy of Social Sciences Financial Brand and Corporate Culture Research Centre of Central University of Finance and Economics 2015 Top Ten Innovative Institutions for Rural Financial Brand of China July 2016 Galaxy Awards 2015 Harbin Bank Corporate Social Responsibility Report: Sliver Award for Sustainable Development (Printing) October 2016 Office of China Local Financial Forums Financial News China Academy of Regional Finance 2015 Top Ten Competitive Banks October 2016 GLOBAL FINANCE of the United States Star of China: 2016 Best City Commercial Bank Star of China: 2016 Best Credit Bank for Small Enterprises November 2016 China Comment 2016 Best Financial Institution for Regional Development in China November 2016 The Economic Observer Best Cross-Border Syndicated Loan Bank of the Year December 2016 China Business Journal 2016 Outstanding and Competitive City Commercial Bank for Small and Micro Financial Services December 2016 2016 Top Ten Outstanding and Competitive City Commercial Banks China International Cooperation Association of SMEs 54 2016 Preferred Service Provider for China Small and Medium Enterprises (SMEs) December 2016 Prospects | HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT Prospects 2017 is an important year marking the 20th anniversary of Harbin Bank, as well as a crucial year for implementing our new fiveyear strategic plan and facilitating the listing of A shares. At this new starting point, facing the complex and ever-changing external environment, we will adhere to our philosophy of “Inclusive Finance, Harmonious Co-Enrichment” and focus on our strategic goal of establishing ourselves into “a first-class international microcredit bank providing excellent services with unique characteristics”. Striving to become “a bank with strong cultural foundation, outstanding charity brand and good reputation”, we offer customer-orientated services and contribute to the real economy, thereby creating a new page for sustainable development of Harbin Bank. Making progress in a stable and steady manner. From our experiences in the past two decades, opportunities always come with challenges. In 2017, the domestic macro-economy is still under the “three-phase” aggregated period, with stricter regulation and intensifying market competition. New technology development will continue to affect the traditional banking market. However, as facilitated by the in-depth reform to be conducted by central and local governments and adjustments to economic structure, especially the new round of transformation promoting policies on revitalization of Northeast China, new-type urbanisation and agricultural modernisation, new opportunities and rooms for development have been created for our leading businesses in respect of customer base expansion, product development and operation transformation etc. Collaborative development. 2017 is the year of “Collaborative Development” for the Bank. Through our exploration of differentiate development over the past two decades, the Bank has preliminary formed a business model in which microcredit as its core strategic business, Sino-Russia financial service as its featured international business and financial leasing as its strong replenishment. Moreover, the Bank has created a good position for the co-development of online mobile banking and offline traditional banking. Undoubtedly, collaborative development will further strengthen the Bank’s core competitiveness, enhance its brand value and assist the Bank in grasping new opportunities for development. Strict control over risk exposures. In response to the increasing number of questionable loans and non-performing loans throughout the current bank industry, the Bank will establish a more effective system on asset quality control in 2017, thereby ensuring the overall asset quality remain steady. The Bank will highly focus on new risk exposures, such as liquidity risk, exchange risk and bond default risk. It will facilitate the implementation of Basel II and enhance its comprehensive risk management capability. Meanwhile, the Bank will continue to have a greater determination and confidence in disposing troubled assets, and put greater efforts on disposal. Striving for innovation. Pursuant to the new five-year strategic development plan, in 2017, centring on the year of “Collaborative Development”, the Bank strives for product innovation, facilitate business transformation and maintain its leading position in transformation of city commercial banks. The Bank will continue to enhance basic information technology construction so as to support tailor-made services, product innovation and management innovation. We will facilitate the building of talent pool centring on the “Leaders Program”, establish innovative talent training systems, and strive to promote the growth of multi-tasking talents with high adaptability, strong management skills and all-rounded quality. As an ambitious, passionate, vibrant and creative bank, we are really looking forward to 2017. 55 HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT | Annex: Indicators for Sustainable Development of Harbin Bank (Index of Corporate Social Responsibility Report) Annex: Indicators for Sustainable Development of Harbin Bank (Index of Corporate Social Responsibility Report) Scope Level General disclosure and key performance indicator Indicator for sustainable development of Harbin Bank General disclosure Compliance of relevant environmental protection laws, regulations and policies Corresponding section Sewage discharge A1 Emission A1.1 Emission type and relevant data Toner cartridge produced Green Office Waste lighting tube produced A1.4 Volume (in tons) and (if applicable) density of non-hazardous waste produced General disclosure Environment A2 Resources utilisation A3 Environment and natural resources A2.1 Total direct and/or indirect consumption (in kWh) and density (in production volume per unit or per each facility) of energy (such as power, gas or oil) by types B1 Employment Policy on effective resources utilisation (including energy, water and other raw materials), and resources can be used in production, storage, transportation, buildings and electronic devices etc. Annual power consumption Vehicle fuels consumption (including petrol and diesel) General disclosure Policy on minimising material impacts on environment and natural resources caused by the issuer A3.1 Description of material impacts of business activities on environment and natural resources and measures taken to manage such impacts B1.1 Total number of staff by gender, employment type, age and region Green Office Natural gas consumption Annual water consumption B1.2 Staff turnover rate by gender, age and region 56 Volume of paper used A2.2 Total consumption and density (in production volume per unit or per each facility) of water General disclosure Social – Employment and labour practices Kitchen waste and domestic waste produced Issue scale of green bonds Green Credit Balance of green credit Number of green credit customers Policy on remuneration and dismissal, recruitment and promotion, working hours, holiday, equal opportunity, diversify, anti-discrimination, and other welfares and benefit Total number of staff by gender, age and staff type Total number of staff by employment type (official staff, labour dispatch staff) Staff turnover rate by gender, age and staff type Staff Career Development Annex: Indicators for Sustainable Development of Harbin Bank (Index of Corporate Social Responsibility Report) Scope Level B2 Health and safety Social – Employment and labour practices | HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT General disclosure and key performance indicator Indicator for sustainable development of Harbin Bank General disclosure Policy on provision of safe working environment and protecting employees from occupational hazards Corresponding section Staff Career Development B2.1 Number of death and death rate in relation to work Number of death in relation to work (commute) B2.2 Day of absence due to work injuries Day of absence due to work injuries General disclosure Policy on enhancing knowledge and skill for performing duties B3.1 Percentage of staff attending training by gender and staff type (such as senior management and middle management) Coverage rate of training by gender and staff type B3.2 Average number of hours of completed training per employee by gender and staff type Average training hours by gender and staff type B4 Employment standards General disclosure Policy on preventing child labour and forced labour Staff Career Development B5 Supply chain management General disclosure Policy on supply chain and social risk management Green Office General disclosure Policy on health and safety, advertising, labelling and privacy issues in relation to products and services offered and remedial measures B3 Development and training B6 Product responsibility Social – Operating practice B7 Anticorruption B6.2 Number of complaints about products and services and response Death rate in relation to work (commute) Total business calls recorded in customer service centre Staff Career Development Year of Products: Digital inclusive Finance acceleration ate of handled customers’ complaints General disclosure Policy on anti-bribery, anti-blackmail, anti-fraud and Anti-corruption anti-money laundering Anti-corruption anti-money laundering B7.1 Number of concluded litigations regarding corruption against the issuer or its employees during the reporting period and litigation results Number of incompliance litigations Internal control General disclosure where we operated and ensuring our operations have taken into account of community’s interests Charity Campaign Number of microcredit customers Social Community B8 社区投资 B8.1 Key contribution areas (such as education, environment matters, labours’ demands, health, culture and sports) Percentage of microcredit customers Number of village and township banks in national poverty counties Number of customers at village and township banks Total expenses of charity campaigns B8.2 Resources utilised in key areas (such as money or time) New five-year plan: upgrade of microcredit strategic goals Balance of small credit Amount of national education loans Balance of village and township bank loans 57 HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT | Independent Assurance Report Independent Assurance Report 58 Independent Assurance Report | HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT 59 HARBIN BANK 2016 CORPORATE SOCIAL RESPONSIBILITY REPORT | Feedback Form Feedback Form Dear reader, Thank you for reading this report. For improving the corporate social responsibility management work of Harbin Bank and promoting our ability to perform social responsibilities, we sincerely hope that you can evaluate this report. We would appreciate your valuable opinions and suggestions. You may choose any of the following means to provide your feedback: Fax: 86-451-86779829 Telephone: 86-451-86779933 Post: No. 888 Shangjiang Street, Qunli New District, Daoli District, Harbin, Heilongjiang Province, the PRC Postal Code: 150070 Email: ir@hrbb.com.cn Please provide your feedback below: 1. Have you obtained information you need from the report? Yes □ General □ No □ 2. Do you think the report reflects the economic responsibilities assumed by the Bank in all respects? Yes □ General □ No □ 3. Do you think the report reflects the environmental responsibilities assumed by the Bank in all respects? Yes □ General □ No □ 4. Do you think the report reflects the social responsibilities assumed by the Bank in all respects? Yes □ General □ No □ 5. Do you think the report discloses adequate quantitative data? Yes □ General □ No □ 6. Do you think the layout of the report helps you read the report? Yes □ General □ No □ 7. Please specify here any opinion and recommendation for our 2016 corporate responsibility report: 60