On June 1, CDB Leasing released its 2020 Environmental, Social and Governance (ESG) report. The report shows that the overall performance of CDB Leasing has improved despite the COVID-19 pandemic. It has continued to pursue a high-quality development path and faithfully fulfilled its corporate social responsibilities, including the responsibility to support China’s national strategies and real economy.
CBD Leasing is conducting business in more than 40 countries and regions around the world. In the face of the severe setbacks brought by the COVID-19 pandemic which has wreaked havoc on the global economy, it has strictly followed COVID-19 rules and policies. In addition to growing its own business, the Company has aided the Chinese government in stabilizing employment, bolstering the economy, fulfilling its promise to peak carbon dioxide emissions by 2030 and achieve carbon neutrality by 2060, eradicating poverty and revitalizing the countryside. It has made significant contributions to economic, environmental, and social sustainability of the country.
High-quality development and improved performance
In the face of the challenges arising from the COVID-19 pandemic, CDB Leasing has adopted internal and external measures to ensure high-quality development of its business.
Internally, it has strictly followed regulatory requirements, created a culture of responsibility, strengthened risk management, expanded ability to control and resolve risks, instilled integrity in the workplace (especially party members) and improved corporate governance. Externally, it has managed its supply chain responsibly, strengthened the information security mechanism, improved customer services, actively responded to challenges, and grasped opportunities brought by changes in the internal and external environment to achieve operational stability and growth.
CDB Leasing has done pretty well during the pandemic in terms of both epidemic prevention and control and business development. Despite the difficulties brought on by the pandemic, its operating performance has increased. Its total assets broke the RMB 300 billion mark for the first time, reaching RMB 303.3 billion, a year-on-year increase of 16.1%; new business investments totaled RMB 104.4 billion, a year-on-year increase of 11.96%; net profit stood at RMB 3.268 billion, a year-on-year increase of 11.24%. CDB Leasing has also begun to digitize its leasing business during the pandemic.
In 2020, CDB Leasing won the "Most Socially Responsible Financial Leasing Company of the Year" award, the CSR Best Practices Award, China Financial Leasing Tengfei Award for Contribution to the Real Economy, Wanhu Aviation Finance Award for Innovation, and many other awards and honors. Green Leasing Improves Conversion Rate received 2019 Guangdong Green Finance Innovation Award.
National strategies and sustainable development
In 2020, despite the challenges arising from the pandemic, China made remarkable progress in promoting coordinated development of major areas such as Guangdong-Hong Kong-Macao Greater Bay Area, the creation of a new development pattern whereby domestic and foreign markets can boost each other, with the domestic market as the mainstay, and the green transformation of the economy.
CDB Leasing actively supported national strategies and used market-enabled tools to support the Belt and Road Initiative (BRI), the protection of the Yangtze River, the construction of Hainan Free Trade Zone, and the coordinated development of the Guangdong-Hong Kong-Macao Greater Bay Area, the Yangtze River Delta, the Beijing-Tianjin-Hebei Region, and the Chengdu-Chongqing Economic Circle to help create a new development pattern. It also actively bolstered the real economy and increased support for the aviation industry and inclusive finance.
In 2020, CDB Leasing invested RMB 58.2 billion in infrastructure, accounting for 56% of the Group's business investment in 2020, a year-on-year increase of 33%. Most of the investment flowed into transportation infrastructure, urban infrastructure and energy infrastructure. CDB Leasing and China Development Bank supported the green transformation of the economy, especially the infrastructure sector, as part of its effort to help China fulfill its promise to peak CO2 emissions by 2030 and achieve carbon neutrality by 2060.
In response to increased financial pressures faced by medium, small and micro businesses during the pandemic, CDB Leasing formulated an inclusive financial leasing policy and introduced relief measures such as repayment extension, liquidated damage reduction, and interest concessions to help them pull through the difficult times and resume operations.
Green finance
CDB Leasing has actively participated in the creation of a green financial services system, supported the development of environmental protection and clean energy industries, promoted innovation in renewable energy, adopted green business concepts, and energy conservation and environmental protection measures. It fully supports the construction of ecological civilization and promotes economic and social sustainability.
In 2020, CDB Leasing dedicated a lot of resources to the development of innovative green leasing products, improvement of its financing models and development strategy. It invested RMB 8.026 billion to support the market-oriented development of clean energy. As of the end of 2020, CDB Leasing had provided RMB 3.98 billion in financing to major bus companies across the country, replacing a total of 5,309 old buses with buses powered by renewable energy. In the future, CDB Leasing will continue to actively support green finance, innovate business models, enhance Chinese people's livelihoods, and improve the country's social and natural environment.
Poverty alleviation
Poverty alleviation is a primary indicator of the CPC's First Centenary Goal. Since the 18th National Congress of the CPC, the CPC Central Committee has taken a series of actions to eradicate poverty. At the 19th National Congress of the CPC, the CPC Central Committee announced targeted poverty alleviation as one of the three major "battles" the victory of which must be secured in order to build a moderately prosperous society in an all-round way.
To eradicate poverty within the set time frame, CDB Leasing has actively participated in rural revitalization and paired-up poverty alleviation programs and helped poor areas boost sales of local products. Since 2019, CDB Leasing has purchased 546,900 yuan worth of agricultural products (including 386,100 yuan worth of products in 2020) from Gulin in Sichuan Province and Zhengan, Wuchuan and Daozhen in Guizhou Province through direct purchase. It has also helped these countries sell 140,700 yuan worth of products (including 79,900 yuan worth of products in 2020). In total, it has helped local people achieve an increase of RMB 687,600 in sales of local products.
New era, new mission. 2021 marked the start of China's 14th Five-Year Plan. It was crucial for getting the country's efforts to build a modern socialist country in all respects off to a good start. In the future, CDB Leasing will continue to maintain its leadership position in China's leasing market; support the real economy, national strategies, and the development of the Yangtze River Economic Belt, the Guangdong-Hong Kong-Macao Greater Bay Area and other regions; give full play to the advantages of its leasing business; promote business model innovation; support green finance and rural revitalization; increase effort to help the poor; participate in social welfare and charitable causes; and forge ahead on the path of sustainable development and promote the transition to environmental, social and economic sustainability.
