Dear Shareholders and our investors,

Thank you for your support and attention to CDB Leasing! In 2023, The Company actively responded to changes in the internal and external situations, adhered to the general principle of seeking progress while maintaining stability, and coordinated efforts to stabilize growth and promote transformation, so as to concentrate efforts to work conscientiously, achieving comprehensive improvements in scale, quality and efficiency.

In the past year, we have focused on the task of high-quality development and achieved steady progress in operating results. The Company has always insisted on the strategic positioning of “marketization, professionalization, internationalization and digitization”, deeply explored its main obligations and businesses and increasingly strengthened its innovative transformation. At the end of the year, The Company’s total assets broke RMB400 billion for the first time with net profit up to history level, which successfully completed its annual operation target. The Company’s main operating indicators were at the leading level in the industry, continuously consolidating its leading position in the industry.

In the past year, we have persisted in serving the real economy and “five major areas” of finance. Focusing on “five major areas” of finance on technology finance, green finance, inclusive finance, pension finance and digital finance, The Company has invested more resources in key areas and weaknesses including technological innovation, advanced manufacturing, green development and small, medium and micro enterprises to better support major strategies including innovation-driven development and coordinated regional development, and to establish a set of financial product systems with its own characteristics, further improving the quality and efficiency of serving the real economy.

In the past year, we have focused on compliance and risk prevention to lay a solid foundation for high-quality development. The Company has strictly implemented regulatory requirements, strengthened the construction of long-term internal control and compliance mechanisms, and solidified the foundation of compliance management. The Company was the first in the industry to secure insurance compensation for aircraft stuck in Russia, effectively improving the quality and efficiency of risk management and loss recovery. The Company focused on preventing and mitigating risks in key areas, and its non-performing asset ratio was fallen continuously and always being controlled below 1% since its listing, helping to maintain China’s economic and financial security.

In the past year, our efforts have been widely recognised by all sectors of society. The Company has successively won the “Contribution Award for Promoting High-Quality Development of the Year”, “Best Financial Leasing Company of the Year for Inclusive Financial Services”, “Green Finance Practice Award of the Year”, “ESG Brand Influential Enterprise of the Year” and “Top 100 ESG Rating of Listed Companies in the Greater Bay Area”, continuously increasing The Company’s influence in domestic and overseas leasing markets.

These achievements cannot be achieved without the long-term trust and support of Shareholders and all sectors of society, the effective supervision of the Board of Supervisors, and the dedication and contribution of the management and all employees! On behalf of the Board, I would like to express my heartfelt gratitude!

We will stay tenacious like a bamboo deeply rooted in the rocks or upright stand the bamboo amid green mountains steep, and the more difficult and dangerous the journey is, the further forward we will move. In 2024, The Company will take “building a world-class financial leasing company” as its development goal, focus on promoting business structure optimization and innovative transformation development, and increase support for new quality productive forces to actively serve Chinese modernization, so as to continue to create greater value for Shareholders, customers, employees and society.

In 2023, The Company implemented consistently its new development philosophy and integrated business transformation with quality improving and efficiency enhancing deeply. With the strong support of the Shareholders and the Board, The Company has been working hard and moving forward courageously, with balanced development in scale, quality and efficiency, and solid steps towards high-quality development.

We have stabilized dispatch and promoted collaboration, continuously improving the quality and efficiency of The Company’s operation and management. The Company has proactively managed and made precise efforts to coordinate the close collaboration between the asset side and the liability side, the integrated coordination between the front, middle and back departments, as well as the effective balance between volume, price and risk, so as to effectively ensure the smooth achievement of annual operating goals. As of the end of 2023, The Company’s total assets amounted to RMB409.695 billion with the net profit of RMB4.150 billion; and The Company made additional investment in its businesses of RMB99.293 billion; with the non-performing asset ratio of 0.60%. We have maintained stable key operating indicators and continued to lead the development of the industry.

We have stabilized growth and accelerated transformation, and reaped remarkable results in serving economic and social development. The Company has actively responded to changes in internal and external situations and achieved new results in serving national strategies. Through implementing the regional coordinated development strategy, we have realised new investment of over RMB70 billion in seven key strategic areas including Guangdong, Hong Kong, Macao, the Yangtze River Economic Belt and Beijing-Tianjin-Hebei throughout the year, accounting for over 70% of the total investment. In response to the “dual carbon” strategic deployment, the new investment in green energy exceeded RMB15 billion throughout the year. We have implemented the inclusive finance development strategy and stepped up efforts to expand our passenger car business, with more than 120,000 new vehicles placing throughout the year. Focusing on integrated circuits, internet data center (IDC) and display panels, we have realised new business investment of more than RMB8 billion, supporting industrial transformation and upgrading.

We have seized the opportunity and consolidated the basics, improving the quality and efficiency of risk reduction and loss recovery. The Company has further promoted risk prevention and resolution, maintained stable asset quality and reduced the non-performing asset ratio to 0.60%, ranking among the top in the industry in terms of non-performing asset management and control. We have improved our expected and unexpected loss management plans to increase our initiative and foresight in risk response, and have continued to strengthen our post-leasing management to ensure the value and safety of leased assets.

We have attached great importance to compliance and strengthened internal control, and stepped up efforts to implement compliance operations. In 2023, The Company has continued to track changes in regulatory policies, conscientiously implemented various internal and external requirements, and actively played the role of audit supervision to make up for weaknesses, identify loopholes and solve the problems at root, so as to continuously improve the internal control and consolidate the foundation for compliance operations.

In 2024, The Company will fully implement the deployment of the Central Economic Work Conference and the Central Financial Work Conference, adhere to the general principle of “seeking progress while maintaining stability, promoting stability through advancement, establishing the new before abolishing the old”, and focus on “five major areas” to further promote business transformation and innovation and continue to promote professional capability building and steadily improve the overall planning and risk prevention and control. We will work hard and strive for practical results to lay a solid foundation for “building a world-class leasing company”.