icbc financial leasing

1 工银租赁

工银租赁

Beijing

Tel: +86-10-66105888

Fax: +86-10-66105999

Add: 10/F, Bank of Beijing Building, 17(C) Financial Street, Xicheng District, Beijing, 100033

Tianjin

Tel: +86-22-66224510

Fax: +86-22-66224510

Add: E5B, Financial Street, Economic Development Zone Square Road 20, Tianjin, 300457

Dublin

Tel: +353-1-2240500

Fax: +353-1-6111211

Add: 2 Grand Canal Square, Grand Canal Harbour, Dublin 2, Ireland

www.icbcleasing.com

ICBC FINANCIAL LEASING 2007-2015 CORPORATE RESPONSIBILITY REPORT

ICBC

FINAN

CIAL LEASIN

G 2007-2015 C

OR

POR

ATE RESPO

NSIB

ILITY REPO

RT

Reporting Period: The time range for this report is from November 28, 2007 to September, 2015.

Release Cycle: This report is the first CSR report released by ICBC Financial Leasing Co., Ltd., and we plan to release the report continuously.

Reporting Boundary: The Report covers all relevant information across all the business lines of ICBC Leasing as well as its subsidiaries.

Reporting Process: Based on CSR practices of ICBC Leasing, we have gone through the process of submitting our application for approval, compiling data, revising, revising with senior management, and allowing disclosure. We have actively communicated with relevant stakeholders during the application process in regards to the design and framework of this Report.

Data Source: All data in the Report is derived from official documents and relevant statistics provided by the business heads of the various business lines of ICBC Leasing. The 2015 data refers to the data before October, 2015 if there are no further instructions.

Report Compilation Principles: This Report is aligned with the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines (G4) and the Financial Service Sector Disclosures, Opinions of China Banking Regulatory Commission on Strengthening CSR of Banking Financial Institutions, and Guidelines of China Banking Association on CSR of Chinese Banking Institutions.

Reference: In the Report, “ICBC Financial Leasing Co., Ltd.” is also referred to as “ICBC Leasing”, “the Company”, or “We”.

Further Reading: For detailed information on the background and history of ICBC Leasing, please visit our official website (http://www.icbcleasing.com) or on our official WeChat account, “ICBC Leasing”.

Availability: The Report is available in both Chinese and English, including paper and electronic versions. Please send an email to [email protected] or call+86 (10) 6610-5888 to get a paper version. The electronic version is available at the official website.

About the Report

ICBC Leasing CSR Report 2007-2015 ICBC Leasing WeChat Official Account

Contents

Message from the CEO 02About Us 04Philosophy 08Stakeholders 09Corporate Governance 10

Future Outlook 45Information Feedback 46

Serving National Initiatives 12Supporting the Proliferation of Domestic Aircraft 14Developing the Marine Economy 15Promoting Transformation and Upgrade of Traditional Industries 16Committing to the “OBOR Initiative” by “Going Global” 17

Advocating People-centric & Positive Development 38Building a Positive Work Environment 40Optimizing Employee Growth Platform 43Caring About Social Welfare 44

Improving People’s Livelihood 26Supporting Public Transportation 28Developing Clean Energy 29Building a Healthcare System 30Enriching Everyday Life 31

Supporting the Real Economy 20Linking Upstream and Downstream Sectorsof Equipment Manufacturing 23Helping Domestic Enterprises Expand their Global Footprint 24Becoming the Wellspring for Industrial Development 24Facilitating the Development of SMEs 25

Leading Industry Development 32Opening up a New Vista for Development 34Forming Different Modes of Development 34Seeking Mutual Development 36

02

Message from the CEO

Cong Lin, CEO of ICBC Leasing

CSR helps make us successful, CSR is our future

CSR is the core of ICBC Leasing’s corporate philosophy.

As the f i rst bank-owned f inancial leasing company approved by China Banking Regulatory Commission (CBRC), ICBC Leasing, since the very beginning, has inherited the CSR-minded DNA of our shareholder-ICBC, and shouldered the responsibility of exploring the path of China’s financial leasing industry and supporting our national economy. Through eight years of effort, we have established CSR as our pacesetter. We have spurred business development through CSR performance, and based on a CSR management system and a CSR-centric culture, forged a unique core competence while also realizing corporate sustainability as an ideal situation.

CSR involves many facets. We have devoted equal efforts to all stakeholders, including the government, customers, shareholders, peers, employees, regulators, and communities. We have contr ibuted to nat ional development strategies like large aircraft, marine economy, urbanization, “Going Global” and “the Belt and Road Initiative”, putting corporate development in the bigger picture. Feeling indebted to customers,

03Message from the CEO

we have provided them with a wide array of tailor-made products and services in line with business needs, staying with them through thick and thin, and serving as a springboard for the economy. To shareholders, while benefitting from leasing services, we have greatly boosted other financial sectors and enriched the portfolio of ICBC as a comprehensive commercial bank. To peers, we have initiated "SPV" bonded leasing and other industry-leading business models, optimized relevant industrial policies, held a variety of forums, and promoted the cultivation, exchange and export of professional talents. To employees, consistently putting people first, we strive to create a platform for employees to realize their dreams and provide them with sufficient welfare facilities and support. To society, we have worked with members of the government, non-profit organizations, communities, and have made efforts towards environmental protection, donated, offered student subsidies, promoted “going green” initiatives and other public welfare campaigns, all of which are paying dividends in terms of improving people’s quality of life.

Eight years of effort proves that our CSR-centric values have not only catapulted us to a leading position and created value for stakeholders, but also made our work and life more meaningful. We are as pleased to help enterprises and the economy as we are proud to bolster the industry, strengthen the country, and continue to explore new developments.

With a CSR ideology we will continue to guide our actions, lead our industry, repay our society and build our future. We believe that the development of ICBC Leasing is not a solo, but a joint effort of all our stakeholders. Only with a powerful country, a healthy economy and a burgeoning industry can we find a broader space for development. We also believe that our CSR-centric values will empower us to overcome all difficulties and blaze new trails, establish us as a responsible world-class financial leasing company, and enable us to make great contributions to stakeholders.

Cong LinNovember 2015

04

Company Profile

ICBC Financial Leasing Co., Ltd., founded on Nov. 28th, 2007, currently with a registered capital of RMB 11 billion, is a wholly-owned subsidiary of ICBC Group. It was the first bank-owned financial leasing company approved by CBRC as part of a pilot project by the State Council.

Committed to a “professional, market-oriented and international” enterprise, ICBC Leasing has been exploring the path of financial leasing industry as well as the comprehensive operation of commercial banks, and has established a full fledged financial leasing offering system. Focused on big-ticket equipment markets in such key fields as aviation and shipping, energy and power, rail transport and equipment manufacturing, we have offered a broad spectrum of financial and industrial services (equipment leasing, rent-based transfer, investment funding, investment asset securitization, asset transactions and management) for transnational corporation, industrial leaders, outstanding listed companies, and SMEs. Through eight years of effort, we have grown into China’s most powerful and innovative leasing service provider with the largest asset base and highest profitability, and are marching steadily towards a becoming world-class financial leasing business.

About Us

Owning and managing 38,772 big-ticket equipment of various types

Expanding urban rail transit

business to 24 cities

Note: Data as of the end of September 2015.

05About Us

Owning and managing

436 aircraft

With aircraft-leasing customers

in 30 countries and regions

Managing 318 vessels and offshore engineering facilities

Shipping business covering

13 countries and regions

Standard & Poor’s medium

and long-term credit rating of

short-term rating of

AA-1

A2P1

Moody’s medium and long-

term credit rating of

short-term rating of

Fitch Rating long-term credit

rating of

short-term credit rating of

AF-1

06

Key Performance

Economic Performance

Indicator 2008 2009 2010 2011 2012 2013 2014 2015

Return on assets (%) 1.67 0.77 1.34 1.61 1.09 1.45 1.35 1.38

Return on equity (%) 5.66 4.55 10.50 19.10 14.48 18.93 17.45 16.85

Non-performing asset ratio(%) 0 0 0 0.79 0.53 0.73 0.59 0.59

Additional investment(in RMB 100 million)

153 246 416 337 580 677 775 500

Total domestic and overseas assets (in RMB 100 million) Leased assets (in RMB 100 million)

2,500

2,000

1,500

1,000

3,000

20122011201020092008 2013 2014 2015

500

0

2,366

2,612

1,818

1,348

119331

559

840

2,500

2,000

1,500

1,000

20122011201020092008 2013 2014 2015

500

0

2,1052,328

1,713

1,305

225315

645

981

Environmental Performance

Clean energy investment:

Office power consumption: Office paper consumption:

RMB16.926billion

784thousand sheets275,760kwh

New energy investment accounting for nearly

57%of additional energy investment in 2015


07About Us

140

60

80

100

120

40

20

020122011201020092008 2013 2014 2015

128.24

94.48

109.54

78.21

5.1311.80

28.70

49.7015

20

25

30

10

5

020122011201020092008 2013 2014 2015

28.1925.73

22.98

12.59

1.16 1.73

6.058.63

Social Performance

Operating revenue (in RMB 100 million) Net profit (in RMB 100 million)

SME investment: Percentage of employees engaged in volunteer activities:

90 %8.482billion

Indicator 2008 2009 2010 2011 2012 2013 2014 2015

Total tax payment (in RMB 100 million)

0.6 1.3 3.8 4.5 5.7 9.8 12.2 8.4

Headcount(people) 65 89 113 135 166 204 240 293

Proportion of female employees (%)

40 39 41 40 41 40 43 42

Proportion of employees in training (%)

100 100 100 100 100 100 100 100

Employees involved in training (personal-time/ hours)

83 102 156 423 876 1682 2295 2045


08

Philosophy

We have based our core competence on CSR ideology, integrated CSR performance into the entire process of operation and management, and imparted our CSR-minded culture on each employee, each business, and each undertaking.

CSR practices

In order to fulfill our overarching goals, we have brought an increasing number of external stakeholders into the picture, fostered understanding and acknowledgement through communication and a higher degree of transparency, and increased the support to our internal and external stakeholders.

Daily operation: Through finance leasing, we have introduced financial resources to enterprises engaged in responsible production and operation and to strategic sectors with a stake in people’s livelihood, with the aim of addressing the economic, environmental and social challenges that come with China’s development.

CSR ideology

Committed to fully performing our social responsibilities, we have integrated CSR into the corporate culture, strategic goal, and the entire operation and management processes.

Corporate culture: Boundless resources working together

Strategic goal: Building a world-class financial leasing enterprise

CSR decisions

Assuming responsibility to more stakeholders, we have placed equal emphasis on economic, environmental and social benefits.

Specialties: Industry-leading expertise

Social concerns: National policy guidance, strategic principles, and national economy and people’s livelihood

Environmental challenges: Energy-efficiency and low pollution of industrial production and output, life style and consumption habits

CSR performance

We have shared our economic, environmental and social value with stakeholders.

For the government and regulatory institutions: Effectively implementing national strategies

For shareholders: Exploring the path of comprehensive development of commercial banks

For customers: Assisting customers with business success

For employees: Helping each employee to grow and maximize his value

For partners and peers: Promoting win-win cooperation and industrial prosperity

For communities: Leasing for charity and fostering better communities

For the environment: Enhancing environmental sustainability for the sake of social development

09Stakeholders

Stakeholders

The development of ICBC Leasing cannot be fulfilled without the support of stakeholders. Committed to closer engagement with stakeholders, we have, through various commercial channels, heeded their concerns on our undertakings, activities and performance, and taken proactive measures for innovative, specialized, open cooperation so as to bring value to stakeholders and constantly enhance our core competence.

Government

Regulatory

institutions

Shar

ehol

ders

Customers Employees

Partners

Peers

Com

mun

ities

Environment

Promoting sustainable, healthy

socioeconomic development

Serving government

development goals Compliant operation

Fair competition

Maintaining the stability

of financial system

Profi

t and

risk

con

trol

Enric

hing

pra

ctice

s in

co

mpr

ehen

sive

oper

atio

n as

a c

omm

ercia

l ban

kBu

ildin

g a

world

-cla

ss

leas

ing

ente

rpris

e

High-efficiency, low-cost financial leasing productsStreamlining the service

processMaintaining information

security

Full-fled

ged r

ight a

nd

interes

t gua

rantee

syste

m

Compe

titive

compe

nsation

syste

m

Promisin

g care

er lad

der

Comfy w

orkpla

ce

Mutual benefits and trust

Shared success

Fair competition

Maintaining a favorable

environment for industrial

development

Com

mun

ity d

evelo

pmen

t

Emplo

ymen

t pro

mot

ion

Publi

c welf

are

Environmental protection

Low-carbon economy

Green investment

Green office

Boosting high-end equipment manufacturing, energy

conservation & environmental protection, new energy

and other strategic emerging sectors in China

Bolstering agriculture, rural areas and farmers, and

supporting SMEs and other entities with a stake in

people’s livelihood

Engaging in policy making and

improvement, etc.

Enhancing compliance management,

ensuring honest operation, and strictly

observing various regulatory requirement

Optimizing corporate governance,

strengthening risk control,etc.

Prud

ent o

pera

tion

and

high

er p

rofit

abilit

yAd

equa

te a

nd p

rom

pt in

form

atio

n di

sclo

sure

Expl

orin

g th

e pa

th o

f com

preh

ensiv

e op

erat

ion

of

com

mer

cial b

anks

Benc

hmar

king

agai

nst w

orld

-lead

ing

leas

ing

ente

rpris

es to

take

man

agem

ent u

p a

notc

hCo

nsta

nt in

nova

tion,

etc

.

Customer visitsNeeds/Satisfaction survey

Developing new modes of cooperation, etc.

A full s

uite of healthcare se

rvices fo

r

employees

Systematic

point redemption sc

heme training

Employee needs and sa

tisfactio

n surve

y

Organizing democra

tic meetings to

develop

initiative

s, etc.

Regular visits, communications and interactions

Open, transparent cooperation mechanism

Strategic cooperation, etc.

Compliant, transparent operation

Proactively organizing and participating

in industrial exchange

Bringing up specialized talents

Keeping tabs on and putting spurs to the development

and optimization of supporting industrial policies

Constantly developing new products and services in

an effort to lead industrial development, etc.

Wor

king

toge

ther

for c

omm

unity

buil

ding

and

orga

nizing

pub

lic w

elfar

e ca

mpa

igns r

egar

ding

hot

issue

s

Unlea

shing

our

disc

iplina

ry a

dvan

tage

s to

orga

nize

dona

tion

and

disas

ter r

elief

, etc.

Vigorously developing green leasing products

Enhancing clean energy investment

Calling for paperless offices

Carrying out remote video conference, etc.

Stakeholders ConcernsCommunication channels

and responses

Responsibility

10

Adhering to the business guideline of ICBC “Innovative Development and Steady Operation” and regarding the same as the cornerstone of CSR performance and sustainable development, we have strictly followed the laws and regulations of the countries and regions where our operations are based, and maintained the highest standard of corporate management and ethical conduct.

Governance Structure

ICBC Leasing has established a sophisticated modern enterprise system and corporate governance structure. Following the Articles of Association, we have continued with governance structure optimization and corporate mechanism improvement to form a governance framework featuring “reasonable regulations and clarified responsibilities” among the shareholders, the Board of Directors, the Supervisors and the Management. Based on the realities and the characteristics of leasing business, we have streamlined our business system and operating procedures to the point of covering every link and node susceptible to risks.

Corporate Governance

Board of Directors

CEO

Deputy CEO

Risk Management Committee

Internal Control and Risk Management Committee

Project Evaluation Committee

Financial Review Committee

Related-Party Transaction Committee

Shareholders

Supervisors

Internal Audit

General Adm

inistration

Legal Com

pliance Departm

ent

Hum

an Resources

IT Managem

ent

Operating M

anagement

Asset Managem

ent

Risk M

anagement

Investment R

eview D

epartment

Product Innovation

Capital M

arket

Financial Market

Cross-border Finance

Asset Finance II

Asset Finance

Shipping Finance

Aviation Finance

Financial planning &Accounting

Executive Office

Office of the Board & Supervisory Board

11Corporate Governance

Risk Management

Following the principle of careful risk management and the inherent regulations of the leasing business, we have established a comprehensive risk management system, which includes: a risk management structure, a mechanism and procedures for collective review and decision-making of projects, a project risk management system, an early warning system, and an internal control management system. The comprehensive management system controls credit, asset investment and liquidity risks, etc.

By building on the original risk management system, we have optimized the management structure of a risk early-warning system, cemented the organizational foundation and improved the effect of risk prevention and control continuously for eight years. We have formulated a number of risk management rules and effectively curbed asset quality deterioration. With focused screening implemented to key risk areas and more than 500 lease term inspection reports audited in the end of September, 2015, we have effectively lowered the occurrence of credit and lease risks.

Leased asset risk management system

Control approachesThree dimensions

SupportsSix systems

Management goalOne core Value management

Customer rating system

Asset management

system

Business operation system

Capital management

system

Risk early warning system

Financial accounting

system

Customers Leased assets Transaction structure

ICBC Leasing's vessel asset management system

12

Serving National Initiatives

The sustainable development of enterprises cannot be separated from that of the State. Under the guidance of national strategies, ICBC Leasing is committed to aligning the “leasing dream” with the “China dream.” We will offer greater support to national strategies, make our business more proactive and forward-looking, provide more targeted and high-value-added financial services, which facilitates the implementation of a series of key national strategies.

13Serving National Initiatives

14

Supporting the Proliferation of Domestic Aircraft

Large aircraft are considered emblematic of a country’s technical and manufacturing capabilities, economic foundation and overall strength. So far, our country has made a series of major breakthroughs in R&D and manufacturing of large aircraft, bringing both opportunities and challenges to domestic players targeting global markets. As a leading aircraft leasing enterprise, ICBC Leasing has given scope to the wide coverage of industrial chain and diversified mode of financing, forged solid strategic alliances with domestic manufacturers, facilitated the delivery and marketing of aircraft made or assembled in China, called for proactive engagement in international competitions, and spurred the constant growth of Chinese aviation manufacturing.

As the biggest aircraft market, China should invest more to develop and produce our own large aircraft and foster our own independent capabilities.

-Addressed by President Xi Jinping at COMAC

In a bid to vigorously support domestic aircraft projects, we signed an agreement with Commercial Aircraft Corporation of China Ltd. (COMAC) for 45 C919 large aircrafts in 2011, thus becoming the single largest launch customer of C919. Based on the customer network of global airlines, we have collected various needs and wants of the air transport enterprises, and notified the same to manufacturers for product and service improvement. In the future, we will fully unleash our advantage as a global market player, embark on joint marketing with manufacturers, provide airlines with ‘turnkey’ services including marketing, leasing and financing, so as to meet the diversified needs of customers and lay a solid foundation for aircraft developed in China to “go global”.

ICBC Leasing is committed to developing new modes and structures for aircraft leasing and assisting Chinese-made aircraft in “Going Global”. In December 2012, we officially delivered to AirAsia an Airbus A320, made on Airbus Final Assembly Line in Tianjin, marking the first deal for export of a China-assembled aircraft in the form of bonded leasing; the debut of such aircraft in international markets.

China-assembled A320 delivered by ICBC Leasing to AirAsia

C919 Deal, Facilitating Large Aircraft Development

The Overseas Debut of Aircraft Assembled in China

Case>>>>>

Case>>>>>


March 2013 saw our first step into the offshore engineering equipment leasing sector. We officially delivered a semi-submersible rig-SCS No.7-to COSL, with the goal of tapping into the market where leasing and offshore engineering equipment meet, and satisfying China’s growing needs for deep-water rigs. In May and June 2014, we delivered to COSL another two rigs, Gulf Driller No.1 and Triumph No.1, marking our transition from importing second-hand equipment to the procurement of foreign-designed, Chinese-made brand-new equipment, and to the purchase of state-of-the-art assets independently developed by our country, and creating an all-win situation for the financial leasing sector, the oil & gas producers, and the offshore engineering equipment manufacturing and maintenance enterprises.

Allying with Offshore Engineering Equipment Sector

Case>>>>>

Developing the Marine Economy

The building of a maritime authority, with priorities given to the exploration of marine resources and the development of marine economy, is no less required for promoting sustained, healthy economic development than for maintaining national security and stability. Since comprehensive ocean management cannot dispense with sophisticated offshore engineering equipment which is identified as one of the ten key sectors of the “Made in China 2025” national strategy, an action plan designed to transform China into a manufacturer of actual and reputable quality. ICBC Leasing, as a domestic leader in financial leasing and, in particular, a pioneer in offshore engineering equipment leasing, has focused on demand-led, innovation-driven assets and offset their long lead time, high asset value and short life cycle with competitive liquidity and customer base, effectively relieving industrial enterprises of equipment procurement problems and enabling them to obtain desperately needed assets for marine resource exploration with less capital investment. The strategic upgrading has enhanced the development of China’s offshore engineering equipment and real sectors, adding vitality to the “blue ocean economy”.

We should enhance our capacity for exploiting marine resources, develop the marine economy, protect the marine ecological environment, resolutely safeguard China’s maritime rights and interests, and build China into a maritime power.

-Report at 18th CPC National Congress

Second-hand equipment from abroad

Foreign-designed, China-made brand new equipment

State-of-the-art asset independently developed in China

Triumph No.1

Bay Driller No.1SCS No.7

March 2013

May 2014

June 2014

16

Promoting Transformation and Upgrade of Traditional Industries

The transformation and upgrading of traditional industries-namely higher manufacturing capability and more efficient productivity, as well as an industrial system featuring sophisticated technology and clean and safe production-constitutes an integral part of the evolution of domestic manufacturing. Or put in another way, transforming a low value-added industry to a high value-added and intensive one. Specializing and characterized by its proximity to markets and knowledge of customer needs, ICBC Leasing has, through our leasing business, promoted product restructuring, technical upgrading and business reshaping, leading traditional industries to intensive development and competitiveness.

During economic restructuring, we have played our part in supporting the real economy by providing customized financial support for an established Chinese high-end equipment manufacturer. In June 2014, we bankrolled the industrial upgrading and relocation of Lanzhou LS Heavy Equipment Co., Ltd. into a national industrial park. We granted the enterprise RMB 100 million for equipment procurement, leased back production equipment, facilitated construction of new premises and enhanced its overall competence. Half a year later, it became the first enterprise in Northwest China to be listed (on the Shanghai Stock Exchange) after an IPO in 2014, bearing out ICBC Leasing’s commitment to bankrolling established Chinese manufacturers and facilitating their restructuring and upgraded operations.

Helping Established Equipment Manufacturer Relocate

Case>>>>>


Committing to the “One Belt One Road(OBOR) Initiative” by “Going Global”

In the course of promoting international operation, ICBC Leasing has emphasized assistance for outstanding Chinese equipment manufacturers tapping into overseas markets and on introducing Chinese-made equipment and developed technologies to international playing fields so as to enhance economic integration of China and foreign countries/regions. Responding to the “Going Global” strategy and “the Belt and Road Initiative”, ICBC Leasing has, through a series of major leasing projects, helped our partners to address the extended remittance period, significant capital needs, and issues with multi-currency, and cross-border settlements, thus promoting socio-economic development among numerous regions.

The innovative overseas development mode of “Made in China & Financial Leasing from China” enables us to provide financial support for the export of aviation assets, offshore engineering equipment, hi-tech vessels and sophisticated rail transportation facilities, and to help outstanding domestic enterprises to “go global” at a fast and steady pace. Meanwhile, we also conducted cultural and talent exchange with foreign countries for the sake of eliminating cultural gaps, building international relationships, promoting communication and integration.

We will accelerate the implementation of the “Going Global” strategy, and encourage Chinese industries whose products are in demand in foreign markets to transfer their capacity overseas in a systematic manner.

-Government work report at 3rd Session of 11th National Peoples' Congress

By the end of May, 2015, ICBC Leasing has had a total contract value of about 70 billion yuan in terms of leasing business related to the “Going Global” strategy, and loan amount is about 51 billion yuan which takes up 33% of the contract value from leasing business with “OBOR” countries.

Regional Distribution of “Going Global” Business

Region Contract Value Loan Amount

Asia 284.57 176.75

Europe 358.82 283.81

South America 27.37 23.48

Africa 15.40 11.88

Oceania 5.03 5.03

North America 9.30 9.30

Countries along the Belt & Road. 233.70 176.40

Sector Distribution of “Going Global” Business

Industry Contract Value Loan Amount

Aviation 356.37 259.97

Shipping (Including Offshore Engineering

Equipment)310.03 241.05

Electricity 30.00 8.24

Equipment Manufacturing 3.50 1.00

18

In recent years, however, weighted down by the lack of funding, lagging behind in technological development, deficiencies in management and other problems, Southeast Asia has seen a stagnant aviation industry and is holding back regional socioeconomic development.

In the principle of “cooperation through consultation” as suggested by the “OBOR initiative”, ICBC Leasing teams up with COMAC to foster a powerful tie between financial leasing and manufacturing industries. In 2014, the experts from ICBC Leasing and COMAC visited, among others, Singapore, Malaysia, Indonesia, Cambodia and Nepal. By providing Southeast Asian airlines with package solutions including aircraft market survey, aircraft product R&D, collaborative global marketing, financial leasing services and after-sales technical support, we have enabled Southeast Asian nations to further promote their air transport industry and realize shared development.

Joining Hands with COMAC to Power Aviation of Southeast Asia

Supporting Infrastructure Connectivity

The connectivity of infrastructure is a priority for the “OBOR initiative” which concerns 63% of the global population and only 29% of the global economic output. Abundant in resources though, most countries are less industrialized; less developed infrastructure has become one of the obstacles that impede economic development. Under such a context, ICBC Leasing analyzes the needs of countries along the routes, and uses the instrument of financial leasing to lead our energy, power, transport and other infrastructure into those economies, so as to improve their infrastructure capacity and invigorate their

Totaled contract value of leasing business related to the

“Going Global” strategy is about 70 billion yuan

South China Sea

South Pacific

Southeast Asia

Southern Asia

Indian OceanWest Asia

Persian Gulf

Mediterranean Sea

Europe

Europe

Russia

Central Asiathe Silk Road Economic Belt

the 21st-Century Maritime Silk Road

socioeconomic development. In 2015, the company signed a Memorandum of Understanding (MoU) with Turkish Airlines on providing a package plan, including airplane financing and leasing, after-sale leasing, business loans, etc. to support Turkish Airlines fleet expansion.

Case>>>>>


Strengthening International Cooperation for Industrial Capacity

In regards to capacity, seeking mutual benefits for international cooperation is not only an important gateway to expanding international investment and economic & trade cooperation and fostering a new growth point in foreign trade, but also a vital starting point for optimizing and upgrading domestic industries. With a focus on key sectors and industries supported by the State, ICBC Leasing has analyzed the markets along the “Belt” and the “Road,” offering tailored financial leasing services for major Chinese equipment and advantageous production capacities to “go global.” This combination of domestic financial services and products has contributed greatly to the shared prosperity of China and other connected countries.

In Southeast Asia, the clothing manufacturing industry has gradually become a main pillar of the national economy. Plagued by outmoded machines and low production efficiency, the textile industry, however, is incapable of meeting the soaring demands for raw materials from the clothing manufacturing sector.

Based on the demands of the textile industry in Southeast Asia, in 2014, ICBC Leasing sealed a financial leasing deal with Tianjin Tianfang Investment Holding Co., Ltd. regarding the leasing of 1,200 sets of textile machinery and equipment to Pakistan and other South Asian and Southeast Asian countries, and exported part of high-quality domestic capacity to Southeast Asian countries, thus effectively reducing their dependence on imported textiles, giving an impetus to the development of their textile industry, and improving the productivity of Chinese textile companies in overseas markets.

Supporting the Development of Textile Industry in Southeast Asia

As a friendly neighboring country of China, Cambodia has long found itself in a difficult position of weak infrastructures and insufficient power generation. Breakthroughs are thus expected, especially by exploring in an efficient and environmentally sustainable way for putting to use Cambodia’s rich river resources towards hydropower.

In 2014, ICBC Leasing took the opportunity of the “OBOR initiative”, and teamed up with Huaneng Lancang River Hydropower Co., Ltd. To lease power equipment and ancillary facilities produced by domestic manufacturing enterprises to Cambodia Se San River II Hydropower Project. This has created a new model for domestic power enterprises to contribute to overseas construction, and helped ease the strains of local power shortage and improve infrastructure construction.

Joining Hands with Huaneng Lancang with Cambodian Power Supply

Signing ceremony of Huaneng Lancang River Project

Case>>>>>

Case>>>>>

20

Supporting the Real Economy

All capital funds provided for corporate customers through financial leasing can be turned into production facilities that produce products and create practical values. That is why financial leasing has become the most direct tool for the financial sector to support the real economy. Our experience indicates that, unlike traditional financial services, financial leasing which is most closely related to the real economy plays an extremely important role in linking industrial manufacturing to equipment deployment, and has blazed new trails in supporting the real economy.

21Supporting the Real Economy

22

“Financial leasing is a new high ground in China and has to be fostered by the State, as it directly serves the real economy.”

-Remarks of Premier Li Keqiang during his visit to ICBC Leasing

The unique role of financial leasing in promoting the development of the real economy

Through real leasing business, financial leasing has fundamentally eliminated the risk of real economy’s inherit path.Real

Financial leasing directly engages with real enterprises, translating all capital into needed equipment and facilities, and in turn serving as direct access for capital.Direct

The customers of financial leasing range from large-sized enterprises with a stake in national economy to privately-owned SMEs. The industry has extended its tentacles to a host of livelihood oriented sector including high-end equipment, energy & power, rail transit, science, education, culture, hygiene, and facilities for agriculture, rural areas and farmers.

Broad

Compared with credit products, financial leasing lays stress on the evaluation of a company’s operating capacity and future profitability as well as of the applicability of lease. Based on the different conditions and actual needs of customers, it will offer a tailored business structure to resolve problems with fundraising.

Flexible


Linking Upstream and Downstream Sectors of Equipment Manufacturing

As an essential part of the manufacturing industry, equipment manufacturing, offers a fundamental cornerstone of China’s push towards industrialization. As equipment manufacturing requires huge investment and long-term R&D efforts, financial leasing can offer monetary support and at the same time promote the sale of equipment in domestic and international markets.

For example, ICBC Leasing has brought up the novel idea of supply chain leasing to connect upstream equipment manufacturers with downstream users. This has not only facilitated the sales and payment for upstream manufacturers, but also reduced the waiting time for downstream users.

In 2014, ICBC Leasing worked with Dongfang Electric Corporat ion (DEC), the largest power equipment manufacturer in China, where we offered the first supply chain leasing deal. To be specific, ICBC offered sale-and leaseback solutions to DEC’s customers (mainly large scale power generation enterprises), and designated the use of some funds as the payables on equipment, so as to accelerate DEC’s collection of accounts receivable, cut allowance for uncertain debts, reduce the cost of capital occupation, optimize financial performance, and improve operating efficiency. By bringing into full play the unique role of financial leasing in project finance and marketing finance, this business model provided medium and long term financial support for the acquisition and upgrading of equipment for large-scale power plants while facilitating the sales and payment for domestic power equipment manufacturers.

Providing Services for Power Equipment Manufacturers

ICBC Leasing signs cooperation agreement with DEC

Case>>>>>

24

According to the implementation plans on promoting transformation and upgrading of the shipbuilding industry, ICBC Leasing fully plays its role in intensifying analysis and research on the global ship market and product development trends, so as to cooperate with international industrial capacity. In June 2014, ICBC Leasing sealed a USD 460 million project framework agreement regarding bulk container carriers with Greece Libra Group. According to the agreement, ICBC Leasing places the order bulk and container carriers with Yangzijiang Shipbuilding (Holdings) Limited, COSCO (Zhousan) Shipyard and Guangzhou Wenchong Shipyard, and lease the carriers to Libra Group. The project has played an exemplary role in lifting the global competitiveness of domestic shipbuilding enterprises and boosting China’s high value-added shipbuilding industry.

Escorting Domestic Ship Building Enterprises into Greece

Case>>>>>

Becoming the Wellspring for Industrial Development

As financial leasing operates in a counter-cyclical manner, ICBC buys at low prices and sell at high prices, serving as the “reservoir” for the real economy, to negate the impacts of cyclical economic fluctuations, and help enterprises avoid negative consequences related to expansion in an upward economic cycle and difficulties in a downward cycle. We give full play to our capital strength, and make joint efforts with shipping companies, shipyards, ship fund, upstream and downstream enterprises in the shipping industry, such as coal and electricity companies to produce ships together. In this way, the company has met downstream enterprises' demand for ships and also guaranteed enough orders from upstream enterprises so that financial leasing companies not only become the provider of traditional financing, but also the safe harbor for shipping and ship building industries and repels periodic fluctuation risk.

Helping Domestic Enterprises Expand their Global Footprint

As the Chinese economy enters another stable period, the domestic market is integrating at an accelerated pace, leading to increasingly fierce competition. China’s real economy has to seek more opportunities in a broader international market. By connecting customers with manufacturers, financial leasing can help domestic enterprises expand their global footprint and marketing channels for greater international competitiveness. In the context of continuous downturn of shipbuilding industry in 2014, ICBC Leasing finished China’s shipbuilding “Going Global” Project, including working platform, container vessel and bulk-cargo ship, with a total value of 18.8 billion yuan.

In 2010, through structural designs, ICBC Leasing reorganized vessels rented at high rates by a shipping company. ICBC Leasing bought the vessels from the original ship-owner (lessor) and leased them to the company at renewed terms and rates, which enabled them to save USD 50 million annually on rent and relieve cash flow pressure. Meanwhile, this practice helped the original ship-owner get an immediate cash injection and ICBC Leasing benefits from rental payments. This shared benefit manifested the unique role of financial leasing enterprises in the downward economic cycle, namely, helping shipping industries adjust their accounts and ride out difficulties.

Keeping the Shipping Industry Afloat

ICBC Leasing signed a cooperation agreement with Libra Group

Case>>>>>


Since early 2010, we have begun to implement a platform for simplifying the leasing of equipment for SMEs. Relying on the advantageous network and lease-term management expertise of ICBC, this business model is a meaningful attempt for efficiently processing small and medium leasing projects. In virtue of ICBC’s marketing network, ICBC Leasing has expanded its reach to more SMEs. Meanwhile, we have adopted standard business models, contracts and procedures to boost the efficiency and quality of equipment leasing services. At present, we have lease contracts worth RMB 8.482 billion for over 200 SMEs in some 10 industries across more than 20 provinces and municipalities thus offering significant financial support for those SMEs to flourish.

New Business Models Assist SME Development

Facilitating the Development of SMEs

Small and medium-sized enterprises (SMEs) are a vital new force in national economic development, which sees a particularly important role in ensuring steady growth, creating more jobs, fostering innovation, prospering the market and meeting people's needs, etc. Strengthening financial services to SMEs is an important tool of financial institutions in supporting the real economy, stabilizing employment and encouraging entrepreneurship. Financing difficulties, however, have bottlenecked the development of SMEs. Through the sales and lease of equipment, financial leasing gives SMEs a more flexible financing option over commercial bank loans, which matches better with the input-output cycle of the funds and helps speed up the development of SMEs.

SMEs’ concerns ICBC Leasing’s advantages Win-win

limited capital access and high costs

desperate need for equipment

vendor leasing ICBC’s network flexible financing

conditions reasonable prices

sustained development of SMEs

expanded customer base of ICBC

greater vitality of national economy

Case>>>>>

27Improving People’s Livelihood

Improving People’s Livelihood

As a kind of financial instrument, financial leasing contributes to the transformation of government functions and betterment of people’s livelihood. By activating the funds in public transport, health care, education, medical treatment and other infrastructures that were invested in the process of urban and rural integration, financial leasing helps improve the efficiency of the financial funds and offers greater assistance in improving people’s livelihood.

28

Supporting Public Transportation

Along the accelerated urbanization drive have come increasing demands on supportive public facilities. Developing rail transport, therefore, seems the key to solving people’s commute problems and easing traffic jams. However, those projects are often associated with huge investment, low profits and an extended period before profitability, and thus experience difficulties in fund raising. Now, ICBC Leasing enables the government and enterprises to initiate the projects with original funds, and get further capital injection through equipment leasing, so as to improve the efficiency of the funding and activate existing assets to accelerate rail transport construction.

Committed to putting surplus funds to good use, ICBC Leasing has upgraded mass transit, supported the industrialization of alternative energy vehicles, and reduced the environmental impact of public transport. In 2014, we leased over 500 LNG buses and electric-powered buses to Nanjing Public Transportation (Group) Co., Ltd., helping to improve urban air quality and supporting the “Youth Olympic Games”.

New Energy Buses Contribute to Green “Youth Olympic Games”

Case>>>>>


Developing Clean Energy

Along the complete shift from conventional fossil fuels to renewable energy have come increasing market demands for clean energy; equipment finance is therefore needed for the development of related industries. As a linkage between upstream equipment manufacturers and downstream power system operators, we have vigorously promoted the equipment leasing business to drive the development of clean energy.

Environmentally focused leasing has been implemented for the use of clean energy and for energy saving and emission reduction of the industries. We supported China Huaneng, China Datang Corporation and another three large power suppliers for the construction of large hydropower stations along Lancang River, Jinsha River and Dadu River, so as to solve the need for funds and equipment during the development of water, wind and other clean energy sources and promote their further growth. In 2015, nearly 57% of all new investments in energy programs went to wind, solar, nuclear, water, natural gas and other unconventional non-fossil energy

As a clean renewable energy, wind power is a key solution of various countries to diversifying and streamlining the energy mix and mitigating the dependence on and constraint from limited mineral resources; it is also one of China’s major approaches to strategic energy development and power restructuring. In 2014, ICBC Leasing teamed up with Huaneng Shenchi Wind Power Co., Ltd. and Huaneng Renewables Co., Ltd. to lease wind power equipment to Shenchi Wenjiashan Power Plant, thus connecting upper-and lower-stream wind power sectors, avoiding the long duration of construction and high costs of equipment procurement.

Tapping New Energy From Wind Power Development

China made commitments at Copenhagen Climate Change Summit 2009 that: by 2020, it will use non-fossil fuels for about 15 percent of its energy and reduce its carbon dioxide emissions per unit of GDP by 40 to 45 percent from 2005 levels.

equipment leasing sector. We have adopted Energy Performance Contracting as an innovative form of financing services to better meet the needs for applicable green energy development.

New energy investment accounting for over

57 % of additional energy investment in 2015

Case>>>>>

30

Building a Healthcare System

Medical care is a basic requirement for ensuring people’s livelihood. As of the end of September 2015, ICBC Leasing had injected RMB 764 million into the medical care industry. In the future, we will gradually build up a “large-scale healthcare system” that connects upstream pharmaceutical and healthcare equipment with senior care, health screening, rehabilitation, community education and other downstream sectors. By offering equipment leasing services, we will promote the development of a healthcare system and meet the medical needs of people.

ICBC Leasing together with Beijing Red Cross Emergency Rescue Center leased the first professional air medical rescue helicopter in China. The jet served APEC in 2014 and will provide service for 2022 Winter Olympic Games. The introduction of the medical rescue helicopter has blazed a new trail in the construction of the emergency rescue system in Beijing, provided much needed air medical rescue assistance, and create a model that can be adopted by other cities across the nation.

China's First Professional Air Medical Rescue Helicopter

Case>>>>>


Enriching Everyday Life

Due to current industry trends, ICBC Leasing has identified cruises, scenic-spot facilities and cinemas as our future channels for equipment finance. Through vigorous financial support for entertainment and leisure industries, we have strived to provide viable options to further improve people’s quality of life. By the end of September 2015, we had invested RMB 7.504 billion in leasing services for tourism and broadcasting.

In recent years, the ever-increasing number of tourists as well as their cultural and recreational needs have laid bare the deficiency in tourism, transport, and accommodations. From early 2014 onwards, ICBC Leasing leased cableways and smart travel systems successively to famous scenic spots like the Slender West Lake, Stone Forests Nanjing Tang Mountain, and Xiang Yu’s Former Residence which was later honored by MOC as an “outstanding national cultural tour project” in 2014.

Stimulating Tourism

Case>>>>>

33Leading Industry Development

Leading Industry Development

Over the past eight years, we have built on our legal, accounting, tax and regulatory systems, diversified trading approaches, launched and organized industrial associations, and promoted our financial leasing. With a strong sense of responsibility, we have opened up a new business sector and improved our industry’s relationship with society.

34

Opening up a New Vista for Development

Over the past years, ICBC Leasing has been committed to optimizing the financial leasing industry. From 2009 to 2012, in the capacity of the Director of CBA Financial Leasing Committee, we communicated with industrial associations regarding taxation, foreign exchange administration and other problems in the leasing business. Along with industry authorities, we earnestly discussed policy-making and policy implementation.

At the end of 2013, ICBC Leasing marked a new chapter in history. Premier Li Keqiang, during his visit to ICBC Leasing, learnt about the current development of financial leasing business, and made highly positive remarks on the industry. He referred to financial leasing as a new high ground that needed to be fostered by the State. The year 2014, therefore, saw many favorable policies and provided unprecedented opportunities for financial leasing entities.

In 2014, chaired by Premier Li Keqiang, the State Council Executive Meeting mentioned many times the important role of financial leasing in serving “agricultural areas and farmers”, expanding export, and promoting industrial restructuring and upgrading. During the panel discussions, Premier Li Keqiang introduced financial leasing to entrepreneurs as a tool for equipment and machinery export, so as to help Chinese production capacities to go global. NDRC, the Ministry of Finance, CBRC, the People’s Bank of China, Supreme People's Court and other pertinent authorities have also improved supportive policies to solve the bottlenecks of the industry and present a better environment for the industry to thrive. Meanwhile, an increasing number of local governments have recognized the strategic importance of financial leasing and pushed forward corresponding policies and measures for better development of the industry.

Premier Li Keqiang Spoke Highly of the Financial Leasing Industry

Forming Different Modes of Development

As a pioneer and leader in the industry and without any experience to learn from, ICBC Leasing has adapted actively to the national trend of economic restructuring, industrial restructuring and regional economic development, blazed new trails in service models and realized numerous breakthroughs in China’s leasing sector. It has also led the industry in supporting the real economy, provided a roadmap for development, and established a model for China’s financial leasing sector to gain real traction.

Exploring Innovative Path

ICBC Leasing service continues to be innovative, launching many new service models that can be universally applied across the industry, such as SPV bonded leasing, export leasing, transit trade leasing, joint leasing, vendor leasing and SME leasing. These services continue to be the source of growth for the industry.

Case>>>>>


The 17% value-added tax on top of a 6% import duty on foreign-built jets had previously prevented China’s financial leasing institutions from importing jets and serving the largest mainstream market. Services were limited to sale-leaseback or regional aircraft leasing. However, since its establishment, ICBC Leasing has conducted systematic studies over the policies about domestic bonded areas that do not require high import tariffs or duties and as a result have begun to offer “bonded leasing.” To be specific, these bonded areas can help domestic airlines avoid high tariffs and import duties imposed on jets leased from domestic leasing companies. Consequently, this allows domestic airlines to avoid added taxes on jets leased from overseas companies.

After repeated communications, this idea won wide support from pertinent national authorities and was attached particular importance by the Tianjin municipal government. It was identified as the core policy for Tianjin government and was included in The Core Construction Program of Tianjin Northern International Shipping Center which was submitted to the State Council.

In December 2009, China first imported two Boeing 777 all-cargo aircraft which and were delivered at the Dongjiang Free Trade Zone in Tianjin. It was also the first time for a financial leasing institution to engage in the process of jet trading and financing; the first time for jets to be imported via bonded areas; and the first time for financial leasing institutions to seal procurement deals directly with jet manufacturers and directly receive the jets. A creative mode of bonded-area leasing was thus launched.

This innovative mode has not only removed the high tariff and duty imposed on import/export leasing business of domestic leasing companies, but also saved high withholding tax and other leasing costs for domestic airlines. This has created a more active environment for the global jet leasing market, greatly uplifted the competitiveness of domestic leasing players and laid a solid foundation for Dongjiang Free Trade Zone to grow into an important leasing industrial cluster. Issued by CBRC in 2010, the Notice on Financial Leasing Companies' Establishment of Project Companies in Domestic Bonded Areas to Carry Out Financial Leasing Business marked a major policy breakthrough of this business mode. The proliferation of bonded-area leasing has enabled domestic players to gain an equal basis of competition with their overseas counterparts, to expand the scale of development and to enhance their influences on the global arena. Now, we have leased over 350 jets (including corporate jets) under this business model and challenged the dominate position of overseas leasing companies on the domestic jet leasing market.

Bonded Leasing Creates a New Chapter for Domestic Aircraft Leasing

Implementing New Financing Models

The leasing enterprises are confronted with high financing cost and limited financing channel. Under such a context, ICBC Leasing made meaningful attempts to work with commercial banks, trust funds, insurance companies and other financial institutions for bond issuance within/out of China and asset securitization.

The Measures for the Administration of Financial Leasing Companies, as issued in March 2014 by China Banking Regulatory Commission (CBRC), stipulates that financial leasing companies that satisfy the prescribed requirements and are in healthy business conditions can engage in asset securitization business upon approval of CBRC. By virtue of favorable national policies and our development experience, we have actively developed asset securitization. In so doing, we have not only put surplus assets to good use, optimized asset structure, and enhanced the profitability and sustainability of leasing projects, but also helped promote leased asset transactions across the industry and increase the liquidity and efficiency of capital.

Asset Securitization

Case>>>>>

Case>>>>>

36

Seeking Mutual Development

We have taken the lead in launching industrial organizations, forums and platforms, sought common ground with our peers, promoted international communication, engaged in financial leasing, disseminated industrial information, and contributed to the growing social recognition and visibility of the industry.

CFL30 was initiated by ICBC Leasing in Beijing in 2011. By issuing industrial reports, putting forth suggestions to improve the industrial environment and popularizing knowledge and views about financial leasing through the Internet and other media, CFL30 has contributed a lot to uplifting the social recognition and influence of financial leasing.

CFL30

Forum purpose

Establish a communication platform to remove industrial limitations

Enable industrial elites to conduct wide exchange and various financial leasing segments to align with one another and seek common grounds

Create a favorable environment and policies for financial leasing

Develop a good industrial image and healthy industrial rules

Conduct in-depth research on major issues concerning China’s financial leasing industry, and explore a unique path with Chinese characteristics

Case>>>>>


Classic renditions by ICBC Leasing

◆ Launch industrial organizations, forums and platforms● Create a favorable environment and policies ■ Cultivate high-end talents ▲ Participate in the preparation and publishing industrial reports★ Popularize the knowledge of finance

As China’s most powerful and innovative leasing service provider with the largest asset base and highest profitability, we have monitored industry climate and direction of government policies, participated in the development of public policies and industrial standards, enhanced peer communication and cooperation, and in turn contributed strength and insight to sustainable development of the industry.

◆ We organized the 1st Joint Meeting of Financial Leasing Enterprises, in an effort to build an exchange platform and offer suggestions on industrial development.

★ We published our translations of ICBC Leasing and Asset Finance. Since 2009, we have translated authoritative financial leasing literature each year to fill the void of Chinese books in this field.

◆ We were elected Director of CBA Financial Leasing Committee. From then on, we played a leading role in the industry on the principle of “publicity, cooperation, research and self-discipline”.

● We led our peers in calling on relevant authorities to resolve the long-standing problem of double taxation with respect to sale-and-leaseback.

◆ We held the 1st China Financial Leasing Summit Forum, thus contributing to the social recognition of financial leasing. The past four successful sessions, organized by ICBC Leasing from 2010 to 2013 have made it an authoritative industrial forum.

▲ We organized the publishing of the first financial leasing industry report, introducing the status quo and trends, and providing basis for industrial development.

▲ We have participated in the compiling of The 2015 Report on China’s Financial Leasing Industry and The Development of China’s Financing & Leasing Industry in the First Half of 2015.

◆ We initiated CFL30, an exchange platform for three types of leasing enterprises under different regulatory systems, and enhancing the influence of the industry.

★ We put into use the industry’s first official WeChat account, assuming the responsibility of sharing frontier information and constantly enhancing the influence of leasing industry.

● Worked with peers to research the impact of the replacement of business tax with value-added tax will have on the leasing industry. We led our peers in offering suggestions to competent authorities via different platforms, spurring policy improvement and helping the industry tide over difficulties.

◆ Together with Institute of Industrial Economics of CASS and China Business, we held the “China Focus” Macroeconomic Forum: Transformation and Upgrading of SMEs.

● During our high-profile exchange, contract signing, and inspection visits by NDRC, CBRC, People’s Bank of China, State Administration of Foreign Exchange, MOFCOM and Tianjin Municipal Government, we put forward policy suggestions from the industrial perspective, and thus became the prime mover of relevant policies and guidelines.

★ We launched a weekly journal-Financial Leasing-as a source for emerging information and views.

■ We teamed up with Nankai University to establish the China Research Center for Financial Leasing, and initiated China’s first financial leasing postgraduate program.

◆ We organized and engaged in activities of industrial associations and CFL30, and envisaged and planned for a unified market for domestic leased asset transactions.

▲ We participated in the preparation and publishing of the 2014 Report on China’s Financial Leasing Industry.

2008

2009

2010

2011

2012

2013

2015

2014

◆ Together with counterparts, We have established “CFL30 Leasing Asset Transaction Professional Committee” to improving the leasing asset transaction environment and promoting the building of leasing asset transaction market.

39Advocating People-centric & Positive Development

Advocating People-centric & Positive Development

The rapid development of the Company is greatly underpinned by the growth of our employees and support from communities. Upholding to the idea that “harmony builds up strength and benefits all”, we have taken team building as an inexhaustible impetus to sustained corporate development, and strived for employee growth and community building through prudent and professional operations.

40

Building a Positive Work Environment

In the principle of “people-oriented” management and “professional, market-oriented and international” employment, we have safeguarded the rights and interests of all employees, and shared with them the achievements of the Company, so as to build a development platform that encourages their inspiration, anchors their hopes and realizes their values.

Equal Employment

The rapid growth of an enterprise is inseparable from the wisdom and efforts of its staff. For us, employee diversity enables a multi-perspective view on our internal management to the point of more logical and practical corporate administration. It also helps to develop a diverse atmosphere for us to better adapt to international development. By taking in people from different cultural backgrounds and religions, from different countries and nationalities, a diversified cultural exchange platform has been established.

In the principle of equality, free will and negotiation, we have signed contracts with and paid various social insurances for all our employees in accordance with related provisions of Labor Law, Labor Contract Law and other laws and regulations. We offer competitive remuneration and benefits in the principal of equal pay for equal work regardless of gender. We encourage work-life balance and offer paid vacations to envelop our employees in a healthy, comfortable and positive work environment.

Employment diversity

Knowledge background

Ethnic groupNationality

AgeReligion

Diversification


Multi-level occupational health system

Open Communication

Treating employees as the core of the Company, we have safeguarded their rights to know, to participate and to supervise, and established a democratic management system in line with the institutional requirements of modern enterprises. We have offered employees easy channels to participate in corporate administration and developed the satisfaction management mechanism. New measures and rules concerning employees’ rights and interests are subject to evaluation by all employees. A comprehensive communication system has been implemented to ensure all voices are heard. We have also set up a worker’s union and maximized discussion and interactions with employees through seminars, questionnaires and many other methods.

Occupational Health

Paying attention to the health of each employee and taking it as our core pursuit, we have injected vigorous efforts in popularizing and normalizing occupational health management, and established a full-fledged occupational health management system. Also, we have offered comprehensive and thoughtful healthcare services for our employees, implemented health screening programs and maintain staff health records, so as to intensify our efforts in health management and ailment prevention.

Healthcare

Supplementary medical care

Basic medical

care

Provide basic medical services as required by the State

Relieve employees of the burden of personal medical expenses

Assist employees with medical problems

Make appointments with medical experts

Medical aid during business trips

Psychological care

Offer one-on-one psychological care to ease pressure of work and life

42

Cultural Activities

We try to foster a corporate culture of family and positivity. Through regular and colorful culture, sports and exchange activities, employees have built up physical strength, cultivated fine tastes, and appreciated traditional culture after work. Such activities have also enriched their life, eased their minds, and ennobled their spirits.

“Trip to Capital Museum”

Young employees go mountain hiking during the National Day Holiday

“Carrying forward traditional cultures on campus”

Taking part in ICBC poverty relief efforts

Some young employees meeting with NTUST IMBA students

Employees celebrate the 7th anniversary of ICBC Leasing

Organizing employees for long-distance running

Making dumplings and performing skitsto celebrate the Spring Festival


Optimizing Employee Growth Platform

Corporate development hinges on employee growth, which in turn relies on systematic training and sound career planning. Given the lack of specialized talent development mechanism of the leasing industry, we have invested a huge quantity of resources to provide multi-tiered, differentiated training and diversified career ladders, building a solid and broad platform for employee growth.

Diversifying Career Training

From the perspectives of knowledge, skills, experience and potential, we have worked out a point scheme with internal training and optional external training rolled in one, aiming to attract greater participation and improve the effect of training. We have provided content-rich and colorful sessions for employees at different levels and from different positions to enhance their capacity for comprehensive risk management, business execution and cross-sectional administration. Moreover, in the hope of broadening employees’ horizons and promoting cultural integration, we have established a normalized exchange and training system for employees at home and abroad, organized rotation and training to arm them with a global mindset and stronger service skills, and built education teams throughout the company.

In 2015, the company organized new employee training, internal business training, advanced training, outside training, and a series of open education classes to enhance employees’ understanding for the company and improve their overall business level as well as the leadership of the managerial staff.

Multiple Career Ladders

Promoting career development is, per se, a way of promoting corporate development. ICBC Leasing has established and optimized the manpower deployment mechanism and career ladder for the purpose of bringing up a contingent of specialized talents.

In order to stimulate work enthusiasm and provide a clear career path, we have developed the mechanism for internal appointment of management personnel through open selection. In 2014, we promoted 13 employees to team leaders at various departments, thus boosting the morale of our talent team.

In a bid to widen the career paths, we have kicked off the rotation scheme and encouraged employees, where conditions permit, to work at different departments and regions so that they may choose the suitable career ladders in line with their position and interests as well as the Company’s development needs.

In 2015, organized 49

training sessions Carried out 75 orientation sessions

Training involving 2,045

employees

Training system diagram

Learning team

Point-based training management system

Greater capacity for risk management

Inte

grat

ion

of in

tern

al a

nd

exte

rnal

trai

ning

Inte

grat

ion

of c

ompu

lsor

y an

d op

tiona

l tra

inin

g

Greater capacity for business execution

Greater capacity for cross-sectional administration

Financial leasing Specialized business process Corporate culture and internal by-law

Professional quality Corporate management Cross-sectional administration

Risk management Internal control management Asset management Process management etc.

Internal rotation Rotation of employees at home and abroad

Rotation at ICBC headquarters

44

Caring About Social Welfare

In the course of healthy development, we have constantly repaid society, proactively performed CSR, advocated philanthropy, promoted public welfare, and spread a positive message.

In case of social crises and disasters, we have consistently provided an immediate response and helped affected areas restore normal life and production, showcasing the responsibilities of a financial enterprise.

Our greatest concerns surround vulnerable groups. Since 2013, we jointly held a donation drive with Beijing Tianyun Hearing and Speech Rehabilitation Organization. During the campaign, we donated laptops, teaching equipment and supplies to improve the infrastructures of the organization and provide more comprehensive learning and living support to children with special hearing and speech needs.

Caring for Deaf-Mute Children

Donation drive jointly held by ICBC Leasing

As a global corporate citizen, we are deeply concerned about the wellbeing of people around the world and proactively engage in international disaster relief. After the MH370 incident, GO Phoenix, a vessel leased by ICBC Leasing and contracted by the Malaysian government, became one of the three salvage ships to participate in investigation efforts. Such efforts have fully manifested our values and contributed greatly to disaster management of Southeast Asian nations as well as their relationship with our country.

ICBC pursues the humanistic spirit of “life first”. Sailing along the US West Coast, Jinyun Bulker, a vessel leased by ICBC Leasing, rushed to the shipwreck area upon an order from the US Coast Guard and, following the salvage procedures and the direction of US Federal Emergency Management Agency, successfully rescued three sailors due to proficient ship handling in very unfavorable weather conditions.

Leased Vessel in MH370 Salvage

Jinyun Bulker Engaged in Salvage along USWC

Case>>>>>

Case>>>>>

Case>>>>>

45Future Outlook

Future Outlook

In 2016, ICBC Leasing will deeply implement the spirit of the 4th and 5th Plenums of the 18th CPC Central Committee and the Central Economic Work Conference; continue to adapt development to the current economic climate, maintain a consistent standard of quality, push for innovation; and further commit to being a world-class professional financial leasing company.

Our economic responsibilities: ● Developing ICBC Leasing’s aircraft leasing business in China; enhancing the process for aircraft assets, lifecycle management of aircraft; and marching towards a leading enterprise that is distinctly Chinese, capable of comprehensive and global operation, while building positive brand awareness.

● Seizing the opportunities brought by the national strategies of marine power construction and “OBOR”; constantly improving our unique product mix; and realizing stable and sustainable development of our shipping leasing business.

● Carrying out equipment leasing business in line with national strategies like “OBOR”, Beijing-Tianjin-Hebei integration, and the Yangtze River Economic Belt; and playing a pioneering role in clean energy, infrastructure construction, international capacity cooperation, and livelihood improvement.

Our social responsibilities ● Building a “responsibility-first” corporate culture system; and spurring team building and brand development.

● Designing unique career ladders focused on capacity and performance; optimizing a flexible recruitment and promotion mode; and equipping employees with a global mindset through training and international exchange.

● Promoting the establishment of industrial associations, conducting industrial exchange, developing specialized talents, and revamping the Financial Leasing Weekly to enhance our influence within and without the industry and spurring rapid, yet orderly, industrial development.

Our environmental responsibilities ● Promoting marketing and investment of unconventional fossil energy; conducting international capacity cooperation; and building a green brand through supply chain leasing and energy performance contracting.

● Advocating a “green” workplace; promoting safe and reasonable use of energy among employees; and enhancing the efficiency of energy use across the board.

2016 will be a year of hopes and challenges.

CSR gains root from corporate missions and stems from strategic implementation. ICBC Leasing will reflect upon our values, policies and corporate culture from the perspective of CSR, and make CSR the DNA of the company.

CSR should be rooted in management and established as a mechanism. ICBC Leasing will set up a CSR management and organization entity, gradually bring into shape a support system, clarify the purpose of CSR, define the desired practices, and integrate CSR into our corporate managerial practices.

46

Information Feedback

Thank you for taking time reading the ICBC Leasing CSR Report 2007-2015. We are looking forward to your opinions on the Report so that we could better satisfy your needs, provide more valuable information, and improve our management and CSR performance. Please share your opinions with us via:

Tel: +8610-66105888Fax: +8610-66105999Email: [email protected].: 10FBank of Beijing Building,17(C) Jinrong Street, Xicheng District, Beijing, 100033

1. What is your overall impression of the Report? □ Very good □ Good □ Fair □ Poor2. How well has the Report revealed the economic, environmental and social impact of ICBC Leasing’s major

undertakings? □ Very well □ So-so □ Not so well3. How well has the Report revealed the economic, environmental and social impact of ICBC Leasing’s CSR

practices? □ Very well □ So-so □ Not so well4. What is your impression of the content and layout of the Report? □ Very good □ Good □ Fair □ Poor

5. In what part of the Report are you most interested?

6. What kind of key information has not been included in the Report?

7. Is there any suggestion on our future CSR reports?

Note: Please tick the appropriate box.“√”

工银租赁

工银租赁

Beijing

Tel: +86-10-66105888

Fax: +86-10-66105999

Add: 10/F, Bank of Beijing Building, 17(C) Financial Street, Xicheng District, Beijing, 100033

Tianjin

Tel: +86-22-66224510

Fax: +86-22-66224510

Add: E5B, Financial Street, Economic Development Zone Square Road 20, Tianjin, 300457

Dublin

Tel: +353-1-2240500

Fax: +353-1-6111211

Add: 2 Grand Canal Square, Grand Canal Harbour, Dublin 2, Ireland

www.icbcleasing.com

ICBC FINANCIAL LEASING 2007-2015 CORPORATE RESPONSIBILITY REPORT

ICBC

FINAN

CIAL LEASIN

G 2007-2015 C

OR

POR

ATE RESPO

NSIB

ILITY REPO

RT

icbc financial leasing

Documents