About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 12 ESG 3

Contents About this reportP4 _ P5

· Company profile P8

Environment

· Business scope P9 · Climate change response P94

About JFL advancing green development · Green finance for low-carbon P100· Organizational structure P10 and building a beautiful China transition

· Green operations for energy P109

· Social recognition P11 conservation

P6 _ P13 P92 _ P111

· Honors and awards P12

ESG governance Society · Joint progress and care for P114employees

and strategy · ESG governance P16 empowering employee growth · Talent cultivation and joint P118

· ESG strategy P19 and creating shared value growth

· Boundless love and warmth for P122

· Materiality analysis P20 the society

P14 _ P25 P112 _ P129 · Standardized procurement and P128collaborative development

Governance · Governance as a priority for a P28solid foundation Special topic

strengthening the governance · Strengthened risk control for P36 · Three core values P133

foundation and ensuring steady stable operations

JFL’s corporate culture: Three

core values and six mindsets

long-term development · Compliance as the cornerstone P41 · Six mindsets P136

and strict adherence to standards

· Ethical conduct for stable and P44

P26 _ P51 sustainable development P130 _ P137

· Core business focus for serving the P54

Development real economy

· Inclusive finance for benefiting P65

small and micro enterprises

Putting finance at the service ESG data tables Content Reader Feedback

of the people and improving · Digital finance and technology P71

service quality and efficiency enablement and notes index Form

· Service excellence and consumer P81

protection P138 _ P144 P145 _ P151 P152

P52 _ P91 · Information security and privacy P90

protection4 ESG 5

About this report

Materiality: The Company has identified material topics relevant to its operations

and of concern to stakeholders as the focus of this report. While reporting on these

material topics the report also addresses the specific characteristics of the Company’s

industry and business operations. The process and results of the materiality analysis

This report the ninth Corporate Social Responsibility Report and the fifth are detailed in the “Topic Materiality Analysis” section of this report.Environmental Social and Governance (ESG) Report issued by Jiangsu Financial Accuracy: Every effort has been made to ensure the accuracy of the information in

Leasing Co. Ltd. (hereinafter referred to as “JFL” or “the Company”) aims to disclose this report. For quantitative information the data scope calculation methodology and

to investors and other stakeholders the Company’s philosophy management assumptions are clearly stated to ensure that any margin of error does not misleadapproaches initiatives and performance concerning ESG. report users. Quantitative data and accompanying notes are provided in the “ESG DataTables and Notes” section of this report.Balance: The content of this report reflects objective facts and provides an unbiased

disclosure of both positive and negative information concerning the Company.Clarity: This report is published in Simplified Chinese and English. It includes tables

Report scope Unless otherwise specified the scope of this report is consistent with the scope of diagrams and other supplementary materials to enhance understanding of the textual

JFL’s consolidated financial statements for the same period. content for stakeholders. To facilitate easier access to information the report provides

Preparation principles a table of contents and a cross-reference index to ESG standards.Quantifiability: This report discloses key quantitative indicators and where possible

The reporting period spans from January 1 2025 to December 31 2025. To augment includes historical data.Reporting period the report’s comparability and foster a forward-looking perspective some content Comparability: The statistical and disclosure methods for the same quantitative

moderately extends to encompass prior and subsequent years. indicators are consistent across reporting periods. If data collection measurement

or calculation methods change the relevant data are retrospectively adjusted and

the adjustments and their reasons are explained in the report notes. This enables

stakeholders to conduct meaningful analysis and assess trends in the Company’s ESG

· No. 14 Shanghai Stock Exchange Listed Companies Self-Regulatory Guidelines – performance.Sustainable Development Report (Trial Implementation) (April 2024) Completeness: The scope of disclosure in this report is consistent with the scope of

the Company’s consolidated financial statements.· No. 1 Shanghai Stock Exchange Listed Companies Self-Regulatory Guidelines – Timeliness: This is an annual report covering the period from January 1 2025 to

Standardized Operations (May 2025) December 31 2025.Basis of preparation Verifiability: The cases and data in this report originate from the Company’s original

· GRI Sustainability Reporting Standards (2021) issued by the Global Sustainability operational records or financial reports. The sources and calculation processes for the

Standards Board (GSSB) disclosed data are traceable and can support external verification procedures.· Environmental Information Disclosure Guidelines for Financial Institutions issued by

the People’s Bank of China (2021) This report is available in both print (printed on eco-friendly paper) and digital formats. The

digital version can be accessed on the Company’s website (https://www.jsleasing.cn/).Publication format

This Report is presented in Chinese and English. In the event of any ambiguity in

· The financial data presented in this report are derived from the audited annual interpretation among the different language versions the Chinese version shall prevail.financial statements for the year 2025 and all other data are sourced from the

Company’s internal documents and relevant statistics.Data notes Address: Building 1 Financial City No. 99 Jialingjiang East Street Jianye District

· All financial figures in this report are denominated in Renminbi (RMB). In the event of Nanjing Jiangsu

any inconsistency between the financial data in this report and the Company’s annual Contact information Tel.: 025-86816908

financial report the annual financial report shall prevail. Email: info@jsleasing.cnAbout JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

6 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 7

About JFL

Stock Code: 600901.SH. JFL is the only financial leasing company listed on China’s A-share market.Service Philosophy: Choose one industry focus on it and remain committed to it.Strategic Goal: To become an internationally leading equipment leasing service provider.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

8 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 9

1 Company profile 2 Business scope

Founded in June 1985 Jiangsu Financial Leasing Co. Ltd. (stock code: 600901.SH) is a non-banking

financial institution approved by the former China Banking and Insurance Regulatory Commission

to conduct financial leasing business. Since its listing on the Shanghai Stock Exchange in 2018 the

Company has become the first and the only financial leasing company listed on China’s A-share

market.With over four decades of experience in the leasing industry the Company adheres to the philosophy

of “choose one industry focus on it and remain committed to it” specializing in providing financing

services for equipment renewal to medium small and micro enterprises. It has delivered specialized

and distinctive financial leasing services to over four hundred thousand of enterprises and individuals.Total assets a year-on-year increase of

160.894 RMBbillion 17.22 %

Financial leasing assets a year-on-year increase of

150.124 RMBbillion 17.46 %

Industrial engineering modern

equipment equipment transportation services healthcare

Net profit a year-on-year increase of

3.241RMBbillion 10.12 %

Return on assets (ROA) Return on equity (ROE)

2.18%13.11%

Non-performing financial leasing asset ratio Provision coverage ratio

0.88%421.22%

Energy

conservation

and

agricultural clean environmental science and people’s well-

equipment energy protection technology beingAbout JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

10 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 11

3 Organizational structure 4 Social recognition

Industry status

Deputy chair unit of the Financial Leasing

Committee of the China Banking Association

Board of Shareholders

Strategy Committee

The only financial leasing company

Sole representative of the leasing industry at listed on the main board

Committee of Risk Management the 5th National Financial Work Conference

and Consumer Rights & Interests

Protection

Council member of the China

Board of Directors Association for Public Companies

Nomination and Remuneration One of the earliest financial

Committee leasing companies in China

National civilized unit

Audit Committee

AAA credit company rated by China Chengxin

Management team Related Party Transaction Control International Credit Rating Co. Ltd.Fitch Ratings: BBB+

Committee

Moody’s Ratings: Baa2

People’s Risk Management

Clean Energy Clean Energy Information Wellbeing Finance Department Finance

Department I Department II Technology Department Department (Business Development DepartmentDepartment)

Medical Health High-end Construction

Office

Credit Review Credit Review (Consumer Rights &

Department Equipment Machinery Department I Department II Interests Protection Center Business breakthroughsDepartment Department Office of the Board of

Directors)

Shipping Industrial

Finance Finance Auto Finance Credit Review Legal Affairs

Discipline

Inspection and The first company to enter the interbank lending The first company to receive authorization for No.1 No.1

Department Department Division Department III Department Supervision Office market receiving shareholders’ deposits

Micro and Small Financial Asset Human Resources

Enterprise Markets Management Department The first company to receive authorization

Finance Division Department Department (Party and Mass Work Department) No.1 for transferring financing lease receivables to

The first company to use leased assets to support

No.1

the introduction of insurance funds

Audit commercial banks

Department

One of the first companies permitted to issue The issuer of the first green bond in China certified

No.1 No.1

Subsidiary financial bonds under the International Climate Bond Standard

JFL BNP Paribas Agriculture and Technology Financial Leasing Co. Ltd. One of the first companies permitted to engage The founder of the first Sino-foreign joint venture (Shareholding ratio: 55%) No.1 No.1

in asset securitization business subsidiary dedicated to serving the agriculture and technology industriesAbout JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

12 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 13

China Association

Best Practice Case for Listed Companies in Rural Revitalization for Public

5 Honors and awards Companies

Excellence in Banking Industry’s “Rural Revitalization” News China Banking

Coverage Association

Shanghai Financial

China Top 50 Green Leasing Companies Leasing Industry

Award Granted by Association

Business awards

Excellent Third-Party Service Organization of Leading China’s Jiangsu Province

Best Practice Case of Internal Control for Listed Companies

China Association Renewable Energy “Photovoltaic Top 100” of the Year

Renewable Energy

Association

for Public

Best Practices in Investor Relations Management for Listed Companies

Companies

Best ESG Leasing Enterprise China International

China Association Finance ForumIncluded in the Cash Dividend Honor Roll of Listed

Companies for Public Companies

ESG Social Responsibility Pioneer The Beijing News ·

“Golden Roundtable Award” of Boards of Directors of Beike Finance

Chinese Listed Companies - Award for Special Contribution Directors and Governance awards

to Corporate Governance Boards magazine ESG Awards Listed Companies ESG Value Delivery Award Easy Board & Value

Jiangsu Enterprise Online

First Prize of the 32nd Jiangsu Enterprise Management Federation SASAC

Modernization Innovation Achievement Award of Jiangsu Provincial

Government

Global Leasing

“Ascendance Awards” - The Most Influential Financial Industry 2025 Typical Fintech Practice Case China Times

Leasing Company Competitiveness

Forum

China Association Technology award

China Financial Leasing Ranking - Company of the Year of Enterprises with

Foreign Investment

China Financial Leasing Excellence Achievement Award China International Finance Forum

Top 100 Jiangsu Service Enterprises Jiangsu Enterprise Federation

Brand awards Golden Bull Award – Most Investment-Valuable Award of China Securities the Year Journal

Jinquan Award – Inclusive Leasing Capital Market Shanghai Financial

Innovative Financing Award Leasing Industry Association

Exceptional Financial Institution Implementing Inclusive China Business

Finance with Competitive Excellence Journal

2025 China Financial Media Publicity Excellence in “Four China Banking andCapabilities” Development Work Brand Insurance NewsAbout JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

14 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 15

ESG governance and strategy

Subject:

To be a warm and caring financial leasing company.Material topics:

Environment: Climate change response Green finance

Society: Consumer rights & interests protection Employee recruitment and

rights & interests Employee training and development Data security and client

privacy protection Social contribution Digital finance Services for real economy

Inclusive finance

Governance: Business ethics Corporate governance Compliance management

Comprehensive risk managementAbout JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

16 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 17

JFL has proactively integrated environmental social and governance factors into its corporate 01 ESG management enhancement

development strategy and daily operations. By building and continuously enhancing its ESG

management and information disclosure system the Company is driving itself toward a new

phase of high-quality sustainable development.In 2025 the Company initiated a comprehensive optimization project for its ESG management system

deeply integrating internationally advanced standards into daily operations and strategic decision-making:

The Company conducted analysis on climate resilience. Leveraging IFC performance

standards and industry best practices it fully introduced and deepened the concept

Establishing an of climate resilience and improved the identification assessment monitoring and

1 ESG governance international climatic risk response processes of its environmental and social risks. In the context of frequent

management system global ESG risk events this initiative has strengthened the Company’s ability to

manage high-risk areas such as customer supply chains and extreme weather

ensuring that non-financial risks remain controllable measurable and manageable.JFL has established a three-level ESG management structure comprising the “decision-makinglayer management layer and execution layer.” This top-down approach provides organizational In response to the regulatory requirements the Company is enhancing the

support for the comprehensive implementation of ESG initiatives. Developing a high-quality completeness and comparability of its reports. By strengthening data governance

information disclosure and standardizing disclosure criteria it ensures the authenticity and accuracy of

paradigm environmental and social data providing high-value decision-making information for

investors regulators and other stakeholders.ESG management structure 02 ESG management practices

Decision-making layer

In 2025 the Company’s Board of Directors and Strategy Committee fully exercised their decision-making and supervisory

· Reviewing and approving the Company' s ESG responsibilities regarding ESG matters. They convened regular meetings to review proposals and reports related to

Board of Directors strategies visions and objectives and ensuring ESG governance corporate governance comprehensive risk management and consumer rights & interests protection

their effectiveness; continuously improving the Company’s ESG governance.Strategy Committee · Supervising inspecting and evaluating the ESG area Matters reviewed or considered

implementation of the Company' s ESG work.ESG management · Reviewed the Proposal on the Environmental Social and Governance (ESG) Report 2024

Management layer

· Reviewed the Proposal on the Abolition of the Board of Supervisors and the

Operational · Responsible for developing the Company' s ESG Amendment to the Articles of Association

management team management policies and strategies researching ESG · Reviewed the Proposal on the Board of Directors Work Report 2024 and the

market trends identifying and managing ESG-related risks Corporate governance Proposal on the Director Performance Evaluation Report 2024· Reviewed the Proposal on Formulating the Rules for Deferred and Exempted

and coordinating ESG-related work. Information Disclosure and the Proposal on Amending the Investor Relations

Management Measures among others

Executive layer · Reviewed the Proposal on Risk Preference 2025 the Proposal on Risk Policy 2025

Functional and business · Responsible for the concrete implementation of ESG work · Reviewed the Proposal on Amending the Operational Risk Management Measures

departments and the advancing ESG objectives regularly updating ESG indicators Comprehensive risk the Proposal on Amending the Compliance Risk Management Measures the Subsidiary Proposal on Formulating the Country Risk Management Measures and the Proposal

completing the information collection compilation and disclosure management on Formulating the Comprehensive Risk Management Measures

of ESG reports and tracking and preventing ESG risks. · Considered the Comprehensive Risk Management Report 2024 and the quarterly

comprehensive risk management reports for 2025About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

18 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 19

· Reviewed the Proposal on Amending the Compliance Risk Management

Compliance Measures

management · Considered the Internal Control and Compliance Management Work Report 2024

and the Internal Control and Compliance Management Work Report of H1 2025

Anti-money · Proposal on Amending the Anti-money Laundering and Anti-terrorist Financing

Management Measures

laundering · Considered the Anti-Money Laundering Work Report 2024

· Reviewed the Proposal on the Case Risk Prevention and Control Assessment

Business Report 2024

· Reviewed the Proposal on Amending the Case Risk Prevention and Control

ethics Management Measures and the Proposal on Amending the Crime-related Incident

Management Measures

· Reviewed the Proposal on the Work Summary 2024 and the Work Plan 2025 of

Consumer rights & the Committee of Risk Management and Consumer Rights & Interests Protection

interests protection · Considered the Consumer Rights & Interests Protection Work Report 2024 and

the quarterly consumer rights & interests protection work reports for 2025 2 ESG strategy

Digital finance · Considered the Data Governance Work Report 2024

ESG management philosophy

03 ESG training Subject To be a warm and caring financial leasing company.

The Company actively conducts training to equip all employees with relevant management and hands-on experience

strengthen ESG capacity building and enhance the Company’s overall ESG awareness. Economic responsibilities Uphold the essence of financial leasing serve the real economy and promote the

sustainable development of companies and society.IFC and JFL hosted an ESG risk management seminar Governance Improve the corporate governance structure ensure compliant operations and

Case

study responsibilities achieve high-quality development.In July 2025 International Finance Corporation (IFC) visited

the Company for a dedicated seminar on the development of

environmental and social risk management systems. The two Develop green leasing business promote environmentally-friendly economic Environmental

parties engaged in in-depth discussions on topics such as ecology; practice green office philosophy and implement green development responsibilities

international standards practical experience and sustainable guidelines.development information disclosure reaching a consensus on

deepening future cooperation in areas such as optimizing ESG Pay attention to the interests and demands of shareholders partners customers At the seminar

risk management systems. Social responsibilities employees and communities contribute corporate strength put people first and

achieve win-win results.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

20 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 21

3 Materiality analysis

· Understanding the Company’s activities and business relationships

Understanding the context of

the Company' s activities and 1 · Understanding the objective external environment

business relationships

· Identifying key affected stakeholders

· Through benchmarking against ESG standards policy analysis and peer comparisons JFL identified

Establishing a topic list 2

and screened ESG topics and developed a list of topics.

01 Materiality analysis process

Conducting impact risk and · JFL systematically identified the actual or potential positive or negative impacts that topics may have

opportunity analysis 3 on the Company’s operations and its upstream and downstream value chain.In 2025 based on the context of the Company’s activities

and business relationships and through benchmarking · JFL conducted an impact materiality assessment to define assessment factors and ranges. Internal and external

against ESG standards pol icy analys is and peer experts evaluated the scale scope irremediability and likelihood of topic impacts to derive impact materiality scores of

comparisons JFL identified and screened ESG topics. all topics. Based on defined thresholds conclusions on impact materiality were formed.It analyzed the actual and potential impacts risks and

opportunities associated with these topics assessing their Assessment and validation · JFL conducted a financial materiality assessment to define assessment factors and ranges. Internal and external

materiality from both a financial materiality and an impact of materiality 4 experts evaluated the likelihood and magnitude of the financial effects of each topic to derive financial materiality

materiality perspective. scores of all topics. Based on defined thresholds conclusions on financial materiality were formed.· The results of the impact materiality and financial materiality assessments were combined for calculations and a

double materiality matrix was developed.· Following review and confirmation by the Company’s Board of Directors topics identified as highly

Topic reporting 5

material for 2025 are highlighted as key disclosures in reports.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

22 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 23

02 Due diligence and stakeholder communication 03 Materiality analysis conclusions

The Company views stakeholder communication as a core component of its operating management. Through diversified The Company employed an expert analysis method integrating the perspectives of internal and external stakeholders.communication and response methods the Company conducts in-depth due diligence focusing on identifying potential It incorporated inputs from various departments and senior executives considered the specific business realities of its

negative impacts and risk points which serve as critical inputs for its materiality assessment. industry and utilized recommendations from external professional institutions to comprehensively analyze the material

topics’ financial impacts on the Company as well as their economic environmental and social impacts.In 2025 the Company identified and screened 16 topics to form its ESG material topic database.Key stakeholders Topic Communication and response methods

· Comprehensive risk management · Meetings of shareholders Area Material topics of 2025 Material topics of 2024 Change Reasons for change

· Information disclosure and interaction platforms on exchange

Shareholders and · Corporate governance websites The topic was added with reference to the SSE

Investors · Investor communication meetings and research visits

Climate change response —— New topic Guidelines for the Sustainable Development

· Compliance management · Phone calls and emails Report Preparation.· Company website WeChat official account and other new media

· Business ethics Environment Green finance Green finance practices

Topic

platforms Topics were combined based on industry

Green financing combination characteristics and best practices of peers.Optimized

Green operation Efficient energy utilization Wording was optimized according to industry

· Services for real economy wording characteristics and Company nature.· Green finance Consumer rights & interests Consumer rights & interests ——protection protection ——

· Party building · Coordination in regulatory inspections Employee recruitment and

· Corporate governance · Regular communication and reportingGovernment and · Public information disclosure rights & interests Topics were split with reference to international

regulatory agencies · Compliance management · Persistent efforts in peasant assistance and related support Employee training and

Employees Topic splitting rating standards and best practices of peers.activities development

· Social contribution · Climate risk identification

Procurement management ——

· Climate change response The topic was added with reference to the SSE

Data security and client New topic Guidelines for the Sustainable Development · Inclusive finance —— Report Preparation.privacy protection

Charity and commonweal

· Consumer rights & interests protection Society Social contribution activities

· Customer complaint hotlines and satisfaction surveys

· Data security and client privacy protection · WeChat official account and other new media platforms

Clients Wording was optimized with reference to the · Improvement of customer privacy protection mechanisms Digital finance Fintech Optimized

· Digital finance SSE Guidelines for the Sustainable Development · Application of fintech

· Implementation of inclusive finance projects Services for real economy Response to national policies wording

Report Preparation industry characteristics and

· Inclusive finance Services for real economy best practices of peers.Inclusive finance Equal treatment of small and micro enterprises

With reference to the SSE Guidelines for the

· Employee recruitment and rights & interests · Employee recruitment strategy Sustainable Development Report Preparation

Employees · Employee training system Partner cooperation for win- and international standards content related to

· Employee training and development · Cultural and sports activities of the Labor Union ——· Establishment of a feedback platform win results

Topic deletion “partner cooperation for win-win results” is now

covered under topics such as services for the real

economy green finance and inclusive finance.Anti-commercial bribery and Topic Topics were combined with reference to the

Business ethics anti-corruption SSE Guidelines for the Sustainable Development

combination Report Preparation and best practices of peers.· Procurement management · Supplier due diligence visits Anti-money laundering

· Formulation of procurement management measures

Suppliers and partners · Compliance management Standardized operation· Development of anti-commercial bribery systems Topic Topics were combined with reference to the

· Tendering and bidding activities Corporate governance Shareholder investment SSE Guidelines for the Sustainable Development

· Business ethics returns combination Report Preparation and best practices of peers.Governance Compliance management Standardized operation Optimized Wording was optimized according to industry

· Green operation · Volunteers and volunteer activities Comprehensive risk wording nature.· Research and implementation of public welfare · projects such as management Financial risk prevention

Community and · Green finance rural revitalization and social contribution

environment · Energy conservation emission reduction and · promotion of —— Communication with · Climate change response paperless operations S takeho lde r commun ica t i on and ESG

· Development of sustainable finance stakeholders management have been moved to the ESG

· Social contribution Topic deletion Governance and Management section and are —— ESG management no longer disclosed as standalone topics.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

24 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 25

Among the 16 topics identified and screened by the Company seven were found to have dual materiality seven have impact

materiality only and two have neither impact nor financial materiality. Dimension Topic in the report Topic required by SSE

Climate change response Climate change response

2025 Double Materiality Topic Matrix of JFL Waste treatment environmental compliance

Environment Green operation management energy use water resource use circular

economy

10

Green finance Climate change response

Services for real

9 Consumer rights & interests protection economy

Green finance Social contribution Rural revitalization social contribution

Inclusive finance Digital finance

8 Climate change response

Digital finance Innovation-driven development

Employee training and development

7 Data security and client privacy protection Procurement management Supply chain security equal treatment of small and medium enterprises

Employee recruitment and rights & interests

Social contribution

6 Business ethics Comprehensive risk management Consumer rights & interests

protection Safety and quality of products and services

Compliance management

5 Corporate governance Society Data security and client privacy protection Data security and client privacy protection

4 Employee training and development

Employees

Employee recruitment and rights &

3 interests

Procurement management

Services for real economy ——

2

Green operation Inclusive finance Rural revitalization

Business ethics Anti-commercial bribery anti-corruption and anti-unfair competition

012345678910

Financial materiality Corporate governance ——

Corporate

governance

Graphical representation Compliance management ——

Neither financially material nor impact-material Impact-material but not financially material Comprehensive risk management ——

Note "——" denotes topics independently identified by the Company. Due diligence and stakeholder communication are fully disclosed in the "ESG Governance and Strategy" section

of this report. As an enterprise in the financial industry the Company is not involved in pollutant emissions ecosystem and biodiversity protection or technology ethics; see the

Financially material but not impact-material Both financially material and impact-material “Benchmark Index” section for further explanation.Impact materialityAbout JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

26 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 27

Governance

strengthening the governance foundation and

ensuring steady long-term development

SDGs addressed in this chapter

Sustainable Development Goals

JFL upholds Party building as a guiding principle and

by improving its governance structure optimizing

information disclosure and strengthening investor relations

management it continues to enhance its corporate

governance.JFL has established a"value-creation-oriented" risk

management system adheres to the principle of "risk-

based prudent and sound" management and continuously

improves its three lines of defense for internal control and

compliance thereby ensuring compliant operations and

stable business performance.JFL has built a solid defense against money laundering

risks continuously improved its anti-corruption oversight

mechanism adhered to the principles of integrity in

operations and fair competition and shaped a clean and

impartial corporate image.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

28 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 29

Innovating new approaches to branch work. Each branch has broadened the

scope of its work and introduced innovative mechanisms for Party members to

1 Governance as a priority for a solid share experience and for tracing the roots of Party-building work making Party Continuously building more engaging and effective.

foundation strengthening branch- Fully leveraging the benefits of Party-building co-construction. Relying on the

level foundations “Party building +” activity platform each branch has joined hands with the

Company’s key partners to carry out co-construction initiatives. Through joint

The Company continuously improves its governance mechanisms strengthens development of themed Party Day activities and business exchange programs the branches have

the Board of Directors fulfills its information disclosure obligations in a timely manner protects promoted the deep integration of primary-level Party building with the core work

investors’ lawful rights and interests and achieves sound and sustainable development through of the Company achieving mutual reinforcement and shared progress.high-standard corporate governance.

01 Case Adhering to Party building as the guiding principle The Second Party Branch The Fourth Party Branch of The Eighth Party Branch of JFL study of JFL and the Agricultural JFL and the First Party Branch and the Second Party Branch of

Machinery Party Branch of the of Neptunus Fuyao jointly the Zhenjiang Branch of Bank

The Company lays emphasis on Party building and strives to drive business growth and empower Party Committee of Jiangsu carried out a themed Party of Nanjing jointly carried out a

development through practical and integrated Party-building initiatives. World Group jointly carried Day activity: themed Party Day activity:

out a Party-building co-

construction activity:

Party-building work addresses the Company’s practical

One core purpose: needs in setting the right direction uniting its people and

promoting development

Two work objectives: first-class Party building and first-class equipment leasing service provider The Company has optimized the “Rongyao JFL” recognition and reward system

Continuously giving full and compiled “JFL micro role-model” case stories. Through positive guidance

play to the exemplary it has fostered a strong atmosphere across the workforce in which everyone

Building a "12345" role of Party members embraces responsibility dares to take on challenges and is encouraged to shine

Party-building system Three Integration Paths: Party Committee–Party Branch–Party Member in their roles and contribute their strength.Four-dimensional Party-

building model: company–clients–employees–society

Five distinctive brands: Party building–incorruptibility–service–culture–ESGAbout JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

30 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 31

02 Improving the governance structure Meetings held by the three types of meetings

· Five meetings of the Board of Directors were held at which 61 proposals were reviewed and

25 reports were Considered. Directors’ attendance rate was 98%.

Board of Effectiveness

Shareholders of the Board of · Fourteen meetings of special committees of the Board of Directors were held at which 43

Directors proposals were reviewed and 35 reports were Considered.· Two special meetings of independent directors were held.Strategy Committee

Board of

Directors Committee of Risk Management and Consumer Rights & Interests Protection Board composition

Nomination and Remuneration

Party Committee 3 executive Committee directors

Professionalism 12 4 independent Board of Auditors and diversity directors

of the Board of

4 directors in totalSenior Related Party Transaction Control Directors shareholder

Management Committee directors employee

Team 1 director

Directors' professional backgrounds

· cover economics finance accounting management law and other fields. They hold key

In 2025 the Company strictly implemented regulatory requirements and no positions in major enterprise groups associations and academic institutions and have strong

longer maintained the Board of Supervisors or supervisors. social influence.The transition and adjustment of supervisory functions from the Board of

Supervisors to the Audit Committee were successfully completed.Reform of the Board

Corresponding revisions were made to the Articles of Association and the

of Supervisors · As of the end of 2025 independent directors accounted for one-third of the Board of

Working Rules of the Audit Committee. Directors.Nearly 50 internal management rules including the Rules of Procedure of the · The Audit Committee Related Party Transaction Control Committee and Nomination and

Board of Shareholders the Rules of Procedure of the Board of Directors and the Independence Remuneration Committee under the Board of Directors are all chaired by independent directors

Management Measures for Impairment of Expected Credit Losses were revised of the Board

of Directors and are mainly led by independent directors ensuring objectivity and fairness in key matters accordingly. such as financial audits related-party transaction review and performance evaluations of senior

executives.In accordance with the Articles of Association directors are elected by the

· Relying on a diversified shareholding structure with checks and balances and a standardized

Standardized Board of Shareholders and serve a three-year term which may be renewed

governance mechanism the Company ensures that decisions of the Board of Directors are not

operation of the upon re-election at the end of the term. Each year the Company evaluates the

influenced by major shareholders senior executives or other stakeholders.Board of Directors effectiveness of the Board of Directors from dimensions including professional

expertise experience and diligence in the performance of duties.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

32 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 33

03 Information disclosure

The Company continuously improves its information disclosure and insider information

management advances the development of its information disclosure management mechanism

strengthens insider information management and ensures that disclosures are truthful

accurate complete timely and fair thereby effectively protecting investors’ legal rights and

interests.Internal reporting mechanism for material

information:

ensuring that the “information source” department

maintains a sense of being the “first responsible party”

and reports relevant developments to the Chairman Main actions and outcomes in improving the quality of information disclosure in 2025

and the Secretary of the Board of Directors as soon as

material information is identified.Disclosure channels: 1 Management of insiders: · After releasing annual results the Company proactively used digital formats

information about the Company’s r e i n fo rc i ng comp l i ance Improving such as performance infographics and videos to clearly explain key highlights

developments and important managemen t o f i n s i de r information such as financial performance business expansion and technology applications

news is promptly communicated TRUTHFUL information through notices comprehensibility thereby strengthening market understanding improving results communication

through mul t ip le channels ACCURATE r e m i n d e r s a n d o t h e r and enhancing the comprehensibility of disclosed information.including the official website 4 COMPLETE 2 measures from time to time

WeChat official account and TIMELY AND and effectively protecting

mainstream news media. FAIR the rights of all shareholders

especially small and medium-

sized investors to access

3 i n fo rmat ion in a t ime ly Enhancing · The Company continued to improve the presentation of its annual report and

accurate and equal manner. information ESG report. By optimizing page design and using data visualization it enhanced

readability the reading experience and improved the readability of the disclosed information.Main types of information disclosure:

Periodic reports — focusing on value communication

and market attention increasing voluntary disclosures

and enhancing visual presentation and readability.ESG reports — providing a comprehensive reflection · In accordance with the stock exchange’s latest guidance the Company carried

of the Company’s non-financial performance in out a double materiality analysis for its ESG report further increasing the number

environmental social and governance areas. Deepening ESG and content of topics and expanding the breadth and depth of disclosure.Ad hoc announcements — timely disclosure of information

material operating information of the Company. disclosure · The ESG report continues the trilingual design in Chinese and English aligning

with international communication needs and the needs of different stakeholders

and broadening the scope of information disclosure.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

34 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 35

04 Investor relations managementActively rewarding The Company has long adhered to a dividend policy of “stable returns toshareholders shareholders” and rewards shareholders through cash dividends ensuring that

The Company always places the protection of investors' interests at its core and is committed to the fruits of the Company’s development are genuinely shared with all investors.building diversified communication bridges to ensure close contact and efficient interaction with

investors.Investor communication forms

· Since its listing the Company has distributed a cumulative RMB 9.375 billion in Cumulative Dividends

dividends (the dividend plan for 2025 is to be implemented) with an overall dividend 9.375RMBbillion

roadshows and reverse roadshows. payout ratio of 49.21% ranking among the top in the market.In 2025 the Company held a total

of 87 investor communication · In the 2025 Cash Dividend Honor Roll of Listed Companies the Company ranked

activities reaching 448 institutional 33rd in the "dividend payout list" with a dividend payout ratio of 53.15% and 24th in Overall Dividend Payout Ratio

hosting live-streaming results Regular Special i nve s t o r s a n d c ove r i n g 517 the “dividend yield list.” 49.21%

briefings to respond to investor meetings initiatives participant instances.questions; and setting up Q&A

sess ions a f ter meet ings o f · In December 2025 the Company implemented an interim dividend for the first time

shareholders. distributing RMB 1.30 in cash dividends per 10 shares to all shareholders with a cash

Day-to-day dividend payout ratio of 48.14%. For the full year of 2025 the proposed total cash

communication dividend distribution is RMB 3 per 10 shares representing a cash dividend payout responding to investor concerns through ratio of 53.62% the highest level in the Company' s history.channels such as the “SSE E-Interaction”

platform the Company’s website the

investor mailbox and the investor relations

hotline. Dividend plan Total dividend amount

Year Cash dividend ratio

(RMB/share) (RMB 100 million)

20170.123.5835.46%

Case

study JFL held its 2025 interim results presentation and investor open day

20180.25.9747.75%

In September 2025 JFL held its 2025 interim results presentation and investor open day. Using an

“online live streaming + on-site event” form the activity attracted on-site participation from more than 2019 0.24 7.17 45.27%

50 institutions and over 1000 online views. Centered on JFL’s interim results presentation the event

included a Q&A session between senior executives and investors. The Company’s senior executives 2020 0.3 8.96 47.73%

engaged in in-depth communication with investors on key topics such as the focus of JFL’s new round

of strategic planning the Company’s asset quality control and the challenges and opportunities in the 2021 0.35 10.45 50.44%

financing market and explained the Company’s response strategies and development plans.

0.3510.6144.00%

2022

4-for-10 bonus issue / /

20230.3213.9852.57%

20240.2715.6453.15%

Interim dividend 0.13

202517.3853.62%

Annual dividend 0.17About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

36 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 37

02 Strategies

2 Strengthened risk control for stable operations Adhering to the principles of alignment full coverage independence and effectiveness the Company

has established a sound and comprehensive risk management framework to effectively prevent and

control various risks and ensure stable operations.

01 Governance Comprehensive risk management strategy

The Company has established a “value-creation-oriented” risk management system adheres to the Risk Description Scope of impact

Financial

impact Response strategy

principle of “risk-based prudent and sound” management continuously strengthens key mechanisms

consolidates the management foundation and steadily improves its comprehensive risk management By upgrading systems and

system. policies optimizing processes

· Strategic risk credit risk and mechanisms empowering

market risk liquidity risk intelligent risk control making

Short-

Comprehensive risk management framework Traditional compliance risk operational risk breakthroughs in compliance medium- and

risks leased asset risk information management and cultivating

long-term

technology risk reputational risk culture and talent the Company is

Decision-making layer Board of Directors Committee of Risk Management and Consumer Rights & Interests and country risk among others building a comprehensive multi-

Protection dimensional risk management

· The Board of Directors serves as the highest decision-making body for comprehensive Higher system.risk management and bears ultimate responsibility. compliance

· Its principal responsibilities include reviewing and approving risk management · Policy and legal risks market costs

systems and policies setting risk appetite and limits supervising the risk management risks and technology risks that The Company is integrating ESG

performance of senior executives and appointing the Chief Risk Officer. may arise if the Company fails risks comprehensively into its

· Under the authorization of the Board of Directors the Committee of Risk Management to properly manage its own management system. Through

and Consumer Rights & Interests Protection performs certain risk management material ESG topics. Medium- and due diligence negative lists and

responsibilities. ESG risks · ESG risks transmitted from long-term leased asset assessments it is

business counterparties during

deeply embedding environmental

Management layer the course of operations may

Operational management team and social risk control into the full turn into reputational risk

business decision-making process.operational risk and other risks.· Senior executives bear responsibility for implementing comprehensive risk management. They

are responsible for establishing the operating and management structure formulating and

implementing risk management policies and procedures enforcing risk appetite reporting to

the Board of Directors on a regular basis and firmly establishing a bottom-line mindset for risk.Executive

layer Risk Management Department business departments and functional departments

· As the lead department the Risk Management Department is responsible for system building leading risk

identification measurement assessment monitoring control and reporting monitoring the implementation

of risk appetite and limits and issuing timely early-warning reports.· Business departments and functional departments serve as important lines of defense for risk management

and carry out specific risk management work within the scope of their respective responsibilities.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

38 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 39

Main risk management actions and outcomes in 2025

Category Main actions and outcomes

· The Company drafted and issued the Comprehensive Risk Management Measures providing a top-

level institutional framework for comprehensive risk management.System · It improved specialized management systems including issuing the Country Risk Management

development and Measures formulating the Management Measures of Bank Book Interest Rate Risks and revising the

policy upgrades Market Risk Management Measures among others.· The Company formulated the 2025 Risk Appetite and the 2025 Risk Policy defining risk tolerance

boundaries and management direction and upgraded the Company’s risk appetite and policies.

03 Management of impacts risks and opportunities · To support business innovation the Company formulated the Working Plan for Establishing a

New Business Decision-making Mechanism and established its new business decision-making

mechanism.The Company has established a sound risk management process covering risk identification risk measurement and · It completed the upgrading and revision of the key risk indicator (KRI) system incorporating the

assessment risk monitoring and reporting and risk control ensuring the stable operation of its business. annual risk appetite indicators into the system; and it worked with the Information Technology Optimization of

risk management Department to advance online monitoring of 120 detailed KRI indicators thereby strengthening the

processes and Company’s risk monitoring.Comprehensive risk management process mechanisms · The Company further optimized its risk pricing model refined pricing dimensions and promoted

special initiatives such as asset portfolio management thereby improving the overall risk-return

· On the basis of risk measurement the Company structure and advancing asset portfolio management and risk pricing.comprehensively balances cost and return determines · Drawing on the experience of the International Finance Corporation the Company initially built a climate physical risk scoring model issued relevant research reports and began addressing

· On the basis of identifying the risk nature through corresponding risk control strategies according to environment-related risks and establishing an emerging risk management mechanism.risk identif ication the Company analyzes the different risk characteristics and implements control

collected information and measures and assesses the measures such as risk avoidance risk diversification · The Company continued to advance the online deployment of routine risk monitoring tools such as

probability and magnitude of potential losses. risk hedging risk transfer and risk compensation. KRIs improving the timeliness and automation of risk identification.Technology · It advanced the development of an anti-money laundering information system and developed

application specialized risk systems using technology to comprehensively improve anti-money laundering

and intelligent efforts.risk control · The Company optimized its business process systems increased the proportion of automated

development contract review for retail business and advanced the systematic development of processes such

as post-leasing changes thereby embedding risk control processes in systems and reducing

Risk Risk operational risk.Risk measurement

identification and monitoring and

Risk

reporting control · The Company engaged a professional institution to launch an anti-money laundering consulting assessment Compliance project optimizing systems models and tools.internal control · It improved its case prevention work framework revised and issued systems such as the Crime-

and special risk related Incident Management Measures and organized risk inspections in key areas.mitigation · The Company identified and rectified credit reporting-related risk matters and issued the

Compliance Manual — Manual for Handling Complaints and Disputes in Credit Reporting.· U s i n g va r i o u s m e t h o d s t h e C o m p a n y · The Company has established a risk monitoring and

systematically and continuously identifies classifies reporting system that defines the type content frequency · The Company established the “JFL Research” system and issued industry and thematic research

reports; it also regularly ran the “Brainstorm Classroom” where employees learn industry knowledge

and records potential internal and external risk and route of monitoring and reporting and monitors and and hot financial topics.factors that affect its ability to achieve strategic reports changes in and trends of various quantifiable Risk culture · The Company conducted in-depth exchanges with internationally advanced peers learnt their

and operational objectives identifies the sources key risk indicators and unquantifiable risk factors as well building and talent management experience in governance structure credit risk operational risk and other areas and

nature and transmission paths of risks and in light as the implementation quality and effectiveness of risk development produced themed reports.of the characteristics of its business identifies the management measures. The scope of risk monitoring and · Through training sessions and experience-sharing meetings organized in coordination with

risk points. reporting covers major business segments major risk business departments the Company helps risk management staff get closer to the front lines of

business cultivating well-rounded professionals with expertise in risk business and strategy.categories and subsidiaries.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

40 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 41

The Company places

ESG due diligence: great emphasis on client Dynamic assessment of environmental and social risks:

ESG risk management. 3 Compliance as the cornerstone and strict

adherence to standards

In the pre-leasing due diligence stage the Company The Company dynamically assesses whether leased The Company integrates a compliance mindset into every aspect of its decision-making

focuses on the client’s fulfillment of social responsibility assets may involve environmental and social risk and operations. It has established a comprehensive and fully integrated internal control and

including timely and full payment of labor remuneration exposures tracks whether clients have committed compliance management system to enable proactive compliance governance and support high-

and compliance with legal working-hour requirements. major environmental violations and uses the risk quality development.In addition the Company has established a clear ESG assessment results as an important basis for post-

negative-list mechanism and will not provide services to leasing management.enterprises that have not obtained the required pollutant Internal control and compliance management framework

discharge permits fail to meet environmental impact

assessment requirements or have a record of serious Hierarchy Main responsibilities

environmental violations.Decision-making and

oversight layer · The Board of Directors bears ultimate responsibility for the Company’s operational

compliance. It is responsible for defining the overall risk management strategy reviewing

and approving compliance policies overseeing their implementation and evaluating the

effectiveness of compliance risk management.ESG due diligence on a chemical enterprise · The Committee of Risk Management and Consumer Rights & Interests Protection under

Case

study the Board of Directors guides and supervises the Company’s overall risk management

In May 2025 for a sale-and-leaseback financial leasing project including compliance risk. It reviews compliance risk management policies monitors

involving a chemical enterprise in Jilin the Company identified their implementation guides the development of compliance risk management systems and promotes consumer rights protection efforts.the client’s environmental compliance qualifications work · Audit Committee under the Board of Directors is responsible for overseeing and

safety management and rectification regarding historical examining the Company’s internal control and risk management and for driving

penalties as the core ESG due diligence items. The project team remediation efforts while leading the Audit Department in carrying out independent

systematically conducted ESG risk verification and re-verification compliance audits.through multiple methods including reviewing business

license and pollutant discharge permit verifying environmental

protection and safety supervision penalty records comparing Management layer

against the negative list and conducting on-site inspections. · Senior executives are responsible for effectively managing the Company’s compliance risks.According to the findings the project’s environmental and social This includes drafting and revising compliance policies for approval by the Board of Directors

risk level was “low” and no high ESG risks were identified. implementing compliance policies and handling violations defining the roles of departments

responsible for compliance risk management reviewing and approving compliance risk

management plans and reporting regularly to the Board.Executive

04 Indicators and targets layer · The Risk Management Department is responsible for the overall management of compliance risk and assists

senior executives in formulating compliance risk management policies and internal control systems. Within this

department a dedicated internal control and compliance management team handles day-to-day compliance

activities conducts special compliance inspections and organizes compliance education and training.In 2025 the Company improved its top-level risk management design revised its 2025 risk appetite and policies defined · Through its project review function the Credit Approval Department is responsible for reviewing the

33 risk-control areas and 97 monitoring indicators and carried out ad hoc risk inspections periodically. No major risk events compliance of proposed leasing projects including their eligibility for approval.

occurred at the Company in 2025. · The Legal Affairs Department is responsible for reviewing the contractual compliance of proposed leasing

Going forward the Company will focus on enhancing the resilience of its risk control system continuously strengthening projects.· Under the leadership of the Audit Committee the Audit Department conducts independent compliance

its professional management capabilities and deepening the development of intelligent risk control to support business audits across all business lines and internal management functions. It reports its findings directly to the Audit

innovation and growth thereby building a strong safety barrier for the Company’s long-term and stable development. Committee and provides recommendations for improvement.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

42 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 43

The three lines of defense in internal control compliance Main actions and outcomes of compliance management in 2025

Category Main actions and outcomes

These departments bear primary responsibility for internal

Business and

First line of control and compliance and are accountable for strictly

functional · The Company continuously optimized its three lines of defense for internal control and

defense following compliance standards within their respective Strengthening

departments compliance implementing a multi-level multi-dimensional compliance management model. With

areas. the compliance clearly defined departmental responsibilities this model creates a coordinated and efficient

management system

management structure.· The Company revised six core compliance management rules including the Compliance

Management Measures Internal Control Management Measures Operational Risk Management

Improving compliance Measures and Related Party Transaction Management Measures.These depar tments are responsible for managing management rules · The Company optimized the work framework for case prevention and control revising and

internal control and compliance. Day-to-day compliance issuing the Crime-related Incident Management Measures and the Measures for Case Risk

management is coordinated and led by the Risk Prevention and Control among others.Compliance

Second line of Management Department through its dedicated internal

management

defense control and compliance team. The Credit Approval

departments

Department is responsible for reviewing compliance · The Company tackled key issues in credit reporting management identifying risks such as the

related to business intake and the Legal Affairs Department disclosure of adverse information retention of records for declined loan applications and the

handles contract compliance reviews. Carrying out online transmission of credit reports. It then developed and implemented rectification plans.special compliance · The Company issued the Compliance Manual — Manual for Handling Complaints and Disputes in

governance Credit Reporting to standardize the complaint handling process.· The Company issued the Working Plan on Further Strengthening Channel Partner Management

(for Trial Implementation) to improve oversight in this area.The Board of Directors has ultimate responsibility for

operational compliance. Its Committee of Risk Management · The Company developed a compliance culture brand launching a series of sub-brands such as

and Consumer Rights & Interests Protection is responsible “Compilation of Internal and External Rules” “Annual Regulatory Policies” “Textual InterpretationThird line of Internal Audit for guiding and supervising risk management including of Compliance” “Illustrations of Compliance” and “Compliance Manual.” These initiatives were

defense Department compliance risk. The Audit Committee leads internal audit presented to regulators and received high praise.work and the Audit Department under the guidance of · Through strengthened professional research by the team including internal “Brainstormthe Audit Committee independently conducts compliance Enhancing compliance Classroom” sessions closer exchange and learning with compliance teams from peers such as

audits and oversight. culture building BNP Paribas Leasing Solutions and continuous enhancement of the “JFL Research” platform the

Company has steadily improved the team’s compliance expertise.· Through the “JFL E-Learning” platform the Company provided centralized compliance training

for new employees and rolled out illustrated communications on new regulatory requirements

such as the Measures for the Administration of Financial Leasing Operations of Financial Leasing

Companies to all employees.Empowering · The Company upgraded its e-signature system and added video dual-recording functionality to

compliance strengthen the legal enforceability of business activities.management with · The Company used the “Smart IoT Manager” platform to carry out IoT monitoring of leased

technology assets thereby preventing asset risks.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

44 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 45

4 Ethical conduct for stable and sustainable

development

Main actions and outcomes of anti-money laundering management in 2025

01 Anti-money laundering

Category Main actions and outcomes

The Company has continuously strengthened money laundering risk management enhanced anti-money laundering (AML) · In response to updated regulatory requirements and the Company’s

awareness and capabilities across its workforce and built robust defenses against money laundering risks. It established evolving business the Company improved its “1+N” policy framework. During

internal rules such as the Measures for Client Identification Management and the Operational Guidelines for Self-Assessment the year it revised and issued five AML-related policies including the Anti-

of Money Laundering Risks revised the Anti-money Laundering and Anti-terrorist Financing Management Measures and set money Laundering and Anti-terrorist Financing Management Measures

up an AML management framework to bolster its efforts. Improving the anti-money ensuring clear rules and guidelines for AML work.laundering system framework

· To comprehensively strengthen its AML efforts the Company engaged an

external consulting firm to launch an AML advisory project.Anti-money laundering management framework

· In full alignment with regulatory requirements the Company advanced the

Hierarchy Main responsibilities Advancing the development of development of its AML system through in-house development and external

the AML information system

Decision-making and oversight layer procurement building an intelligent risk identification and monitoring system.· The Board of Directors assumes the ultimate responsibility for anti-money

laundering management. · The Company established and improved indicator monitoring rules for

· The Risk Management Committee under the Board of Directors performs certain suspicious transaction monitoring models and client money laundering

responsibilities related to anti-money laundering management. Optimizing risk monitoring risk classification models clarified the calculation logic of each indicator

models and tools

and confirmed the test results enabling more accurate identification and

assessment of potential money laundering risks.Management layer

· The senior executives lead the anti-money laundering management under the

guidance of the Board of Directors. · The Company proactively engaged with the regulatory community. As the

· Under senior management an AML Working Group is responsible for leading only financial leasing company invited it participated in a meeting organized

managing and supervising the Company’s AML efforts. It reports risk management by the Anti-Money Laundering Department of the People’s Bank of China

matters to the Board of Directors develops internal AML rules reviews and approves to discuss the Measures for the Identification and Verification of Beneficial

suspicious transaction reports guides money laundering risk self-assessments and Actively participating in Owners of Financial Institutions (for Research and Discussion) demonstrating

recommends disciplinary actions for violations. regulatory discussions and its professional engagement and influence in the AML field.communication

· From the perspective of vendor leasing business the Company researched

Executive layer and prepared the paper Research on Money Laundering Risks in Financial

Leasing Companies: From the Perspective of Vendor Leasing Business and

· Business and functional departments are responsible for implementing AML measures and submitted it for publication contributing to the development of the industry.employees are required to fulfill their AML obligations.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

46 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 47

Category Main actions and outcomes

· The Company conducted AML training for the Board of Directors inviting a 02 Anti-commercial bribery and anti-corruption

professional institution to explain the new Anti-Money Laundering Law and key

regulatory priorities to Board members.The Company has continuously improved its anti-corruption mechanisms regularly

· The Company stepped up its internal AML communications. By summarizing the

conducted incorruptibility awareness and education activities strengthened managementlatest regulatory requirements it distributed six issues of “Textual InterpretationConducting education and measures such as “joint supervision” and fostered a clean financial culture.of Compliance” “Illustrations of Compliance” and the “Compliance Manual” to all

AML training for all employees

employees helping reinforce AML knowledge.· The Company hosted training by external experts inviting experts from the

Provincial Public Security Department to deliver a session on the Current Anti-

money Laundering Crime Situation and New Regulatory Requirements to explain

the money laundering threats facing financial institutions and the latest regulatory

developments.Building a three-line anti-

corruption defense:

business departments middle- and back-

office functional departments and discipline

inspection and audit.Anti-corruption

oversight

Launch meeting for the “AML upgrade” and AML Explanation of AML obligations in AML “One-Stop” compl iance Establishing a “trinity”

training session “Textual Interpretation of Compliance” manual mechanism

working mechanism:

joint meetings information Clarifying risk prevention

sharing and coordinated responsibilities at all levels:

supervision to effectively strengthening accountability and establishing a long-

pool supervisory efforts. term integrity risk prevention and control mechanism

that operates across front middle and back offices.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

48 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 49

Main actions and outcomes of anti-corruption management in 2025

Category Main actions and outcomes

Category Main actions and outcomes

Explore technology- The Company promoted online management of employee reporting

The Company held a warning education conference for all employees based supervision on material matters and home visits and conducted verification of

reported typical cases related to the “Four Forms of Misconduct” measures: information submitted by employees.and issued a negative list of prohibited practices regarding banquet.Company-It also conducted a themed warning education session on “learningwide awarenessfrom cases in four ways” inviting leaders from the provincial discipline

campaigns: Under the leadership of the Discipline Department the Company and

inspection and supervision team stationed at the Company to provide

the Audit Department jointly conducted a special discipline inspection

guidance to middle and senior management and all senior account Conduct targeted

and audit oversight initiative focusing on procurement management

managers on ethics discipline law and responsibility. special oversight:

emphasizing the incorruptibility compliance and necessity of

For the automotive finance retail business the Company implemented procurement activities.the “Incorruptibility Action” in Taiyuan Chongqing Nanjing and other

Incorruptibility Targeted education locations providing targeted incorruptibility education to provincial “Incorruptible JFL” specialists were guided to conduct special

awareness for frontline business: managers and partners. It also conducted specialized education investigations into issues related to the “Four Forms of Misconduct” Close attention to key

and education sessions for team members in remote locations such as the and improper banquets during key holidays such as Labor Day the periods:

activities Construction Machinery Division. Dragon Boat Festival National Day and the Mid-Autumn Festival. No

issues were reported throughout the year.The Company provided new employees with a “first lesson” on

Education for new

incorruptibility and ethical conduct guiding them to start their careers

employees: Company- All employees signed the incorruptibility Commitment Letter explicitly

on the right foot. wide signing of agreeing to comply with the Central Committee’s Eight Provisions

Incorruptibility and requirements on incorruptibility in practice and prohibiting any

Commitment Letter: violations of discipline or rules.The Company conducted over 150 one-on-one incorruptibility

Regular

conversations with team leaders across various business areas

incorruptibility

reminding them to act with incorruptibility and perform their duties in The Company continued to deepen its “trinity” mechanism. During the

discussions:

accordance with regulations. year it held four joint meetings on incorruptibility risk prevention and Joint prevention and

control strengthening coordination among back-office departments

control mechanism:

such as risk management credit approval legal affairs audit and

Focusing on key processes and positions the Company analyzed

Dynamic identification discipline inspection to pool efforts in risk prevention and control.risk mechanisms in depth dynamically identified risk points across

of incorruptibility

the entire chain and explored appropriate incorruptibility risk rating

risks: Reinforced

methods. The Company’s Party and Mass Work Department and Human joint

Extend oversight Resources Department collaborated on employee home visits

Supervision supervision beyond working distributing over 700 copies of a Proposal to Support Incorruptibility.and inspection The Company developed the Three Responsibility Lists for Strict Party and hours: This encouraged family members to help reinforce incorruptibility and

and risk Governance and the Measures for Supervisory File Management collaborative helped build a family-based anti-corruption foundation.prevention and (for Trial Implementation) and revised the Crime-related Incident governance

control Management Measures. It also compiled and organized lists of Improved rules andfraudulent intermediaries involved in cases and their affiliates The Company actively cooperated with the Party Committee’s “look-list management: Cooperation with

establishing a “blacklist database of fraudulent intermediaries.” This back” inspection comprehensive supervision reviews and regulatory internal and external

helps the Risk Management Department standardize channel partner authorities’ case investigations submitting dozens of reports and inspections and

management and prevent commercial bribery and unfair competition materials and ensuring that problems identified were properly rectification:

at the source. addressed.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

50 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 51

Category Main actions and outcomes

Case

study JFL held a meeting on Party governance under strict standards and a warning educationThe Company made dedicated efforts to strengthen its “Incorruptible conferenceStrengthened clean-JFL” clean financial culture brand fostering a culture of incorruptibility

brand initiative:

through a combination of special initiatives and ongoing efforts. On July 18 2025 JFL held its 2025 Party Building Work Conference Meeting on Comprehensive

Strict Party Governance and Warning and Education Conference in a hybrid format combining in-

person and video participation. Company leadership and all employees attended with sessions taking

The Company focused on helping employees correctly understand place at the main venue and 19 sub-venues. Through Party lectures delivered by external experts

Strengthened the principles that “strict management is the truest form of care” and and the Chairman all employees were guided to maintain a sense of reverence caution and integrity

Clarified employee

clean financial “trust cannot replace supervision.” It clearly required all employees reinforcing their ideological commitment to resisting corruption and misconduct.conduct standards:

culture to maintain professional and transparent relationships with business

partners.Through the ongoing release of incorruptibility-themed posters and

Atmosphere of the distribution of publications on incorruptibility and self-discipline

incorruptibility: to business teams the Company fostered a corporate culture that

embraces the idea that “incorruptibility makes life better.”

To promptly detect and prevent corruption and fraudulent conduct the Company

Reporting

established rules for registering investigating and handling petitions and reports.management

It ensures that reporting channels are accessible protects whistleblowers and

mechanism

safeguards their lawful rights and interests.Reporting channels Whistleblower protection

03 Anti-unfair competition

The Company provides multiple reporting channels The Company accepts anonymous reports and is

The Company strictly follows the Anti-Unfair Competition Law upholds the principles of integrity and fair competition and

including website mail telephone and fax. It has set legally obligated to keep whistleblowers' personal

prohibits false advertising anti-competitive practices and the misuse of trade secrets. It is committed to ensuring fair

up a 7×24 hotline for reporting improper business information and the content of reports confidential.and transparent transactions and firmly opposes any form of market monopoly trade secret infringement or other unfair

conduct and has published the number on its No one may disclose such information without

competition. When facing external infringement the Company actively uses legal means to protect its legitimate rights

website actively encouraging public oversight. approval. In addition the Company has a recusal

and interests. In 2025 the Company was not involved in any litigation or major administrative penalties arising from unfair

mechanism in place: personnel involved in handling

competition.a report must recuse themselves if they have any

direct conflict of interest with the matter reported

the whistleblower or the subject of the report

ensuring fair handling.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

52 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 53

Development

Putting finance at the service of the people and

improving service quality and efficiency

SDGs addressed in this chapter

JFL stays true to the core of financial leasing and its

commitment to “serving the real economy” driving

progress in five priority areas of finance: technological

finance green finance inclusive finance elderly care

finance and digital finance.JFL continuously strengthens consumer rights and

interests protection. With the goal of building a

comprehensive full-lifecycle consumer protection

management system it safeguards client privacy and

property security while enhancing the client service

experience.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

54 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 55

1 Core business focus for serving the real Case study Grateful for the joint efforts during the past four decades— A Chronicle of JFL’s 2025 “Together For Better” 40th anniversary journey of gratitude

economy

· In 2025 the Company launched the “40th Anniversary Journey of Gratitude” client visit initiative

with the aim of looking back on four decades of challenges and achievements reaching deep into

The Company fully leverages its distinctive advantages of financial leasing in combining the frontlines of various industries and extend its sincerest appreciation to the clients who have longfinancing with asset leasing adheres to the service philosophy of “focusing on and remaining supported JFL with their trust.committed to one industry after choosing it” and continues to deepen its presence in more · This Journey of Gratitude was more than a routine client follow-up; it was a heartfelt tribute to the

than 100 sub-sectors across 10 major segments including industrial equipment agricultural spirit of hard work captured through a return to the heart of industry. Since its founding in 1985equipment clean energy transportation healthcare and science and technology. JFL has remained dedicated to its mission: “embedding finance within industry delivering servicesthrough equipment leasing and standing alongside clients.” Focusing on its core leasing business it

has supported the growth of over 400000 small and medium-sized enterprises. The team traveled

Overview of JFL’s business experience talent teams and clients and partners along industrial chains visiting workshops ports and industrial parks to capture authentic moments

of industrial development. They documented the strategic considerations of entrepreneurs upgrading

equipment at critical junctures witnessed the wisdom of managers maintaining quality amid market

Business experience Talent teams Clients and partners fluctuations and celebrated the dedication of frontline workers transforming “manufacturing” into

“creation.”

· These stories also underscore the long-term commitment behind the leased assets—where the

More than 20 years serving the More than 62% of employees More than 400000 clients served deployment of a single piece of equipment impacts a company’s efficiency and safety and a single

industrial equipment and medical hold a master’s degree or above in total financing deal connects the entire industrial chain. Through this initiative JFL not only gained insight

device markets into the pioneering resilient and pragmatic spirit of Chinese enterprises but also used the opportunity

to recalibrate its own path forward. Looking ahead the Company will continue to leverage its

More than 15 years serving the Average industry experience of 8 Business coverage spans 13 professional expertise and warm service to deepen industrial-financial symbiosis and steadfastly fulfill

construction machinery markets years countries across 3 continents its commitment to “partnering with the best.”

More than 10 years serving 154 business teams

the agricultural machinery

clean energy and information

technology markets

Highlights from the journey:About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

56 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 57

01 Governance 02 Strategies

The Company pursues a path of specialized and differentiated development. Evolving from a “Transformation + Growth”

Governance framework for “serving the real economy” dual-drive strategy to a “Retail + Technology” dual-leading strategy it consistently focuses on its core equipment leasing

business deepens the role of retail and technology and continuously improves the quality and efficiency of its services to

Hierarchy Organization / Responsibilities the real economy.Decision-making layer

Board of Directors and its specialized committees Analysis of risks opportunities and response strategies

Type of risk and Risk and Time horizon of Financial impact Response

· Review the development plans annual key tasks and major opportunity opportunity analysis impact analysis strategy

matters related to serving the real economy and define the

strategic direction and priorities. Adjustments in national industrial Higher operating

· Supervise the progress and implementation results of work policies or increased regulatory costs

related to serving the real economy. scrutiny may restrict financing for The Company try to

certain key supported sectors. Failure Medium- andPolicy risk excel in “five priorityManagement layer to adapt to policy shifts in a timely long-term a re a s o f f i n a n c e ”

Operational management team manner could result in missing out Lower operating namely technological

on government-backed projects or revenue finance green finance

facing compliance penalties.· Coordinate the organization and implementation of real economy service i n c l u s i v e f i n a n c e

efforts across business lines and relevant departments ensuring the orderly elderly care finance If a client company experiences

execution of strategic goals. and digita l f inance

environmental violations work safety s u p p o r t C h i n e s e

incidents or debt defaults it could Medium- and Lower operating

Reputational risk industries go global

lead to public scrutiny and damage long-term revenue a n d e n a b l e h i g h -

Executive layer the Company’s brand and social q u a l i t y f i n a n c i a l Business departments and subsidiaries Functional departments standing. services to drive high-

The rapid growth of sectors such as q u a l i t y e c o n o m i c· In tegrate rea l economy serv ice · Adhere to the principle of “frontline teams “specialized refined characteristic development.init iatives ef fectively into business serving the market while support teams back and innovative” SMEs green energy The s t ra teg ies and operations. them up.” Through efficient collaboration Market Short- medium- Higher operating

between frontline and support functions the and h igh-end manufactur ing is initiatives related to opportunity and long-term revenue

Company aims to make financial services genera t ing s ign i f i can t l eas ing green finance inclusive

for the real economy more accessible cost- demand providing room for business f inance and d ig i ta l

effective and responsive. expansion. finance are set out in

the “Green Finance”

Digital transformation is driving “ Inc lus ive F inance”

upgrades in emerging sectors such

Product and “Digital Finance”

as smart equipment new energy Short- medium- Higher operating

and service sections of this report.vehicles and smar t agr iculture and long-term revenue

opportunity

creating new leasing scenarios and

demand for customized solutions.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

58 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 59

03 Management of impacts risks and opportunities

Case Hosting the themed forum “Digital and Intelligent Oral Care Empowered by JFL” to build an

The Company closely monitors national policies and regulatory requirements. Leveraging the characteristics of the financial study ecosystem platform for medical technology Commercialization

leasing business it focuses on key regions core industries and primary service areas to systematically assess the strategic

importance of impacts risks and opportunities related to “serving the real economy.” In September 2025 the Company in partnership with a leading oral surgery robot company hosted

Leveraging its existing strategy and operating mechanisms the Company prioritizes and dynamically manages relevant the themed forum “Digital and Oral Care Empowered by JFL.” The event brought together clinical

matters and optimizes strategies and resource allocation in a timely manner in response to market changes and business experts medical institution administrators and technology company representatives to discuss

progress. topics such as the digital transformation of oral healthcare smart equipment applications and clinic

upgrades. A customized financial solution tailored for dental clinics was also unveiled promoting the

implementation of a “finance + technology” service model.By creating an industry dialogue platform the Company actively connects technology providers with

A virtuous cycle among finance technology and industry is a crucial driver healthcare service providers. Through ecosystem-oriented services it facilitates the wider application

of technological and industrial innovation. The Company provides financial of advanced medical technologies supports the intelligent and precise upgrading of oral healthcare

Technological leasing support to meet the financing needs of enterprises at different stages of

and demonstrates the bridging role of finance in driving technological commercialization and industrial

finance development including “specialized refined characteristic and innovative” firms

upgrading.high-tech companies and technology innovation startups.Additionally the Company organizes diverse industry forums to gain a deep

understanding of sector-specific challenges identify common needs among

enterprises and design financial products that better meet the demands of the

technology sector thereby effectively delivering technological finance.Case Launching a green computing-power leasing project

study to support the green upgrade of high-performance

computing capacity

A national high-tech enterprise faced the dual challenges

of high investment and high energy consumption when

deploying a high-performance computing cluster. To

address this the Company provided a five-year financial

leasing solution to support the construction of 300 high-

efficiency servers. IoT technology was integrated to

dynamically monitor equipment energy efficiency ensuring As society develops the elderly care needs of the elderly population are

that funds were precisely directed towards green efficient becoming increasingly diverse and multifaceted. Upgrading the elderly care

computing assets effectively easing the client’s capital service system has become a critical issue related to public welfare. Actively

pressure. The computing resources supported have been Elderly-care finance responding to the strategic call to address population aging the Company has

applied in technological fields such as smart property elevated its elderly care finance business to a strategic priority supporting key

management and autonomous driving safety testing. areas of the elderly care industry across multiple dimensions.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

60 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 61

Dimension Initiatives and outcomes

Case Supporting the implementation of a smart health monitoring system to safeguard the lives of

study seniors

· The Company has incorporated elderly-care industry into the medium- and In 2025 the Company provided specialized financial leasing services to a senior care group facing

long-term development strategy and clearly defined it as a key service area. capital constraints in deploying a smart health monitoring system for seniors with chronic conditions.· A dedicated team has been established to conduct in-depth research on This support facilitated the R&D and upgrade of smart devices and management platforms capable

Strengthening strategic the elderly care industrial chain and its financing needs. of real-time transmission of blood pressure heart rate and other data. This initiative helps technology

guidance · The Company tracks national and local elderly-care policies dynamically to empower the “last mile” of health management currently benefiting over 60000 seniors with chronic

ensure alignment between business and policy. conditions.By focusing on the urgent needs of seniors with chronic conditions and providing financial support

to smart elderly care technology companies the Company promotes the large-scale application of

health monitoring technologies. This enhances the precision and accessibility of elderly care services

demonstrating an effective path for embedding leasing services into the elderly care industry chain

and supporting the development of inclusive smart elderly care.· The Company supports enterprises focused on smart health monitoring

devices for seniors with chronic conditions.· The Company partners with long-term care insurance programs to promote

the adoption of assistive devices for the disabled elderly.Providing targeted

· The Company finances the construction of accessible recreational and

client services

sports facilities for active seniors in communities.· The Company use direct leasing and sale-and-leaseback flexibly to meet

client funding needs at different stages of development. Smart health monitoring dashboard

· The Company innovates guarantee mechanisms by incorporating subsidies

and cash flow into credit enhancement measures.Innovating leasing

· The Company has established a comprehensive risk management system

models

that integrates policy operational and reputational indicators.Supporting the nationwide expansion of an assistive device leasing service company

addressing challenges in purchasing and using assistive devices for disabled elderly

In 2025 the Company provided special financing to an assistive device leasing service provider in

Jiangsu through a sale-and-leaseback arrangement. This funding enabled the company to rapidly

· The Company supports the R&D and scenario implementation of smart procure rehabilitation assistive devices and expand its service network to over ten provinces in China

elderly-care technology enterprises. significantly improving access to professional care for the disabled elderly.· The Company helps long-term care insurance service providers to scale up The Company is highly attentive to the real-world challenges faced by disabled elderly individuals

Deepening ecosystem assistive device leasing. who “cannot afford or access” assistive devices. Leveraging opportunities presented by long-term

cooperation · The Company assists community-based elderly care institutions and elderly care insurance policies it utilizes customized leasing solutions to reduce operational costs for service

care-related manufacturers in upgrading quality and capacity. providers. This promotes the standardization and scaled development of assistive device leasing

services effectively enhancing the accessibility of inclusive elderly care financial services.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

62 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 63

Staying true to its mission to serve the real economy the Company actively

engages in the national strategy of high-level opening-up. In 2025 focusing

Supporting Chinese

on advanced manufacturing sectors such as high-end equipment and green Case

enterprises in “going Continuously supporting the cross-border expansion of green vessels “made in China”

vessels the Company provided comprehensive and specialized financial support studyglobal”

for domestic enterprises “going global” through export leasing models helping In 2025 the Company supported the successful delivery of three 40500 DWT bulk carriers built in

Chinese manufacturing enhance its global competitiveness. China for a Turkish shipowner. These vessels are large-hatch energy-efficient and environmentally

friendly bulk carriers with dual functions as ordinary bulk carriers and timber transport vessels. Their

Energy Efficiency Design Index (EEDI) significantly surpasses the International Maritime Organization

(IMO) Phase III requirements establishing them as a true benchmark for green and energy-saving

vessels. To meet the strictest emissions standards their main engines are equipped with exhaust

after-treatment systems such as selective catalytic reduction (SCR) ensuring that nitrogen oxides

(NOx) emissions comply with IMO Tier III standards. In addition the vessels integrate advanced energy

efficiency management and navigation assistance systems leveraging digital tools for comprehensive

Case Completing the first cross-border direct leasing transaction and helping a Chinese enterprises

study energy savings and consumption reduction.go global Through its specialized leasing services the Company helps Chinese shipyards secure high-tech high-value-added orders effectively alleviating the funding pressures associated with the “build first getIn 2025 the Company successfully completed its first cross-border direct equipment leasing project. paid later” model. This accelerates the export of domestically produced green vessels and strengthens

It provided customized financial support to a leading manufacturer of specialized equipment in the the global competitiveness of Chinese shipbuilders.construction machinery sector facilitating the export of three mining dump trucks to Chile for use in

local copper mine earthmoving operations. This effectively alleviated the capital and risk management

pressures faced by the enterprise in its overseas expansion.This case marks a significant step for the Company in supporting Chinese enterprises “going global.” By

innovating cross-border leasing models the Company systematically addressed challenges related to

policy alignment cost control and risk isolation establishing a replicable business model that provides

financial backing for high-end domestic equipment manufacturers expanding into international

markets.Hosting the “Together For Further — Heading to the Sea Heading to the Future” going global

forum

Going global has become a strategic choice for enterprises seeking broader markets and diversified

development and this places higher demands on financial services. In December 2025 JFL hosted the

“Together For Further — Heading to the Sea Heading to the Future” Jiangsu Enterprise Going Global

Forum. The forum brought together experts from industry finance and technology to directly address

the pain points of cross-border financing and compliance challenges. Industry leaders delivered insightful

presentations on pressing issues and shared cutting-edge trends and real-world case studies. JFL unveiled

its distinctive “Financing + Asset Leasing + Intelligence” service system for going global offering practical

ideas for companies navigating the complexities of overseas expansion financing.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

64 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 65

04 Indicators and targets

2 Inclusive finance for benefiting small and

Leveraging its professional strengths In 2025 new investments reached

in financial leasing to serve national micro enterprisesProgress in RMB 99.124 billion up RMB 16.202

Objectives strategies the Company continued 2025 billion year on year representing

channeling resources into key areas growth of 19.54%. The Company has always adhered to a differentiated development path for inclusive leasing

of the real economy such as high- At the end of 2025 financial lease for micro and small businesses and regards micro and small enterprises and self-employed

end manufacturing clean energy and assets amounted to RMB 150.124 entrepreneurs as important clients. It deploys business teams in regions with concentrated

inclusive finance helping industrial billion an increase of RMB 22.321 micro and small business clusters and in areas with dense manufacturer sales networks and

upgrading and the high-qual i ty billion from the end of the previous deeply integrates with local industries to better serve local micro and small businesses in a

development of the real economy. year represent ing growth of more focused and effective way.

17.46%.

In 2025 the number of projects funded by the Company surpassed 100000 for the first time of which

99% were for micro small and medium clients and the average financing amount per project was less

than RMB 1 million.Agricultural equipment Clean energy

12.355 RMB 41.346 RMB 01 Governancebillion billion

Transportation Medical health In accordance with the governance framework for “serving the real economy” and under the

34.294 RMB 6.039 RMB leadership of the Board of Directors the management team coordinates management matters related billion billion

to inclusive finance while all business departments and subsidiaries carry out inclusive leasing for

micro and small businesses based on their respective industry characteristics dedicated to serving

and benefiting micro and small clients.Distribution of the top ten

Engineering equipment business segments financial Modern services

11.656 RMBbillion lease assets assets 11.287 RMBbillion

Industrial equipment Science and technology

18.560 RMB RMBbillion 3.085 billion

Energy conservation and Livelihood security

environmental protection

8.783 RMB 2.719 RMBbillion billionAbout JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

66 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 67

02 Strategies 03 Management of impacts risks and opportunities

The Company attaches great importance to the management of risks and opportunities in inclusive finance. In light of its The Company dynamically tracks policies related to inclusive finance and in light of its actual business identifies key risk

focus on serving micro small and medium-sized enterprises livelihood-related needs and rural revitalization among other points such as service coverage compliant implementation and reputational impact while also seizing market opportunities

priorities it systematically identifies reputational risks and market opportunities and builds a sustainable inclusive finance brought by growing financing demand from micro small and medium-sized enterprises.service system by improving service quality and effectiveness and increasing application scenarios.Analysis of risks opportunities and response strategies Service areas:

Type of risk and Risk and Time horizon Financial impact Response

opportunity opportunity analysis of impact analysis strategy Serving clusters of micro and small manufacturing enterprises

Leveraging the “vendor + direct leasing” model the Company has forged deep partnerships

If the Company has problems such as with more than 100 leading equipment makers such as Komori and Rieter embedding financial

overly high entry thresholds insufficient By deepening services into the core of supply chains in industrial clusters such as printing and textiles.financing accessibility or uneven service inclusive finance and Through standardized products it supports equipment renewal and technological upgrading

Reputational coverage when serving micro small and Medium- and Lower operating focusing on micro for micro and small industrial enterprises helping address their pain points in financing access

risk medium-sized enterprises it may be long-term revenue small and medium- and weak collateral.criticized for inadequate implementation sized enterprises

of inclusive finance triggering regulatory livelihood needs and

attention or negative social evaluation. rural revitalization the Serving micro and small clients related to agriculture rural areas and farmers

Company supports The Company has built an agricultural machinery leasing system that covers the full process The state is vigorously advancing high-

industrial upgrading of “plowing sowing management and harvesting” and has extended it to the entire animal quality development of inclusive finance

through equipment husbandry chain providing customized financing support for feed production breeding and and encouraging financial resources to

leasing improves processing. It has also brought the service focus closer to the field through technology-be allocated to less supported areas such

as micro and small enterprises science service quality

enabled risk control adapting to diverse agricultural scenarios.Market Short- medium- Higher operating

and technology innovat ion e lder ly and effectiveness

opportunity and long-term revenue

care and green development creating proactively responds Serving the transportation sector

sustainable room for business growth for to reputational risk Focusing on operating vehicles such as sanitation trucks heavy-duty trucks and logistics fleets

the Company to leverage the distinctive and captures market the Company provides flexible financing solutions for vehicle acquisition and replacement.features of leasing and reinforce its opportunities. Moreover it is actively exploring new sectors such as the low-altitude economy providing

presence in niche scenarios. equipment financing support for emerging transportation scenarios such as drone logistics

and urban commuting.Serving the clean energy sector

The Company is vigorously expanding distributed commercial and industrial photovoltaic

projects providing stable funding for the green energy transition of small and micro

enterprises. It is also developing “PV+” projects such as residential PV Fishery-PV projects and

Agri-PV projects helping drive the green transition of the rural energy mix.Serving the construction machinery sector

For special-purpose equipment such as mining trucks and construction machinery the

Company designs leasing products that match long equipment life cycles and high residual

values easing the pressure of large capital expenditures on micro and small construction

firms.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

68 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 69

Case Supporting the sugarcane Industry by financing Case Ramping up logistics capacity ahead of the Lunar New Year

study solutions for tractors during the spring ploughing study

season In the run-up to the 2025 Lunar New Year Mr. Fang’s logistics and transport

company in Nanyang Henan was bustling with activity. He added another

In the early spring the roar of machinery filled the vast freight vehicle through JFL. As a seasoned operator in transporting pasture

sugarcane fields of Chongzuo Guangxi. As a sugarcane feed and live pigs he has purchased over 30 trucks through JFL over the

planting region accounting for 30% of the national total past eight years. During the expansion period in 2018 when traditional

Chongzuo has been actively pursuing an upgrade to financing was plagued by slow approvals and difficult communication JFL’s

mechanized farming. proactive service proved to be a turning point. From real-time progress

However the high cost of imported agricultural machinery updates to considerate payment reminders the professionalism and customer-centric approach gave

has made it dif ficult for local farmers to purchase Mr. Fang great peace of mind.equipment. Leveraging its “HiLeasing” platform JFL tailored Built on this trust the business partnership between Mr. Fang and JFL has steadily grown. Through its

flexible financing solutions for the local farmers. It provided professional and convenient financial leasing model JFL not only addresses urgent funding needs but

RMB 300000 to a local cooperative to acquire CASE also supports countless ordinary dreams through long-term partnership.T1504 tractors boosting operational efficiency by seven times and expanding its service radius by

nearly five times. Additionally JFL offered RMB 2 million in financing to a major local grower Mr. Huang

enabling him to purchase four CASE tractors reducing his operating costs by 60% and increasing yield Supporting small and micro foreign trade enterprises in stabilizing

by approximately one ton per mu. production and ensuring supply

Through its “financing + asset leasing” model JFL has removed funding bottlenecks for spring

ploughing ensuring that farmers can upgrade their equipment in time for the critical farming season. In the spring of 2025 a textile printing and dyeing enterprise in

This use of financial resources helps drive the development of new productive forces in agriculture. Zhangjiagang was racing to fulfill peak-season overseas orders. However

tight international supply chains and volatile raw material prices left the

company facing a funding gap for the large deposit required for imported

dyes. JFL’s small enterprise finance team responded swiftly. Leveraging the

flexible “financing + asset leasing” mechanism it provided a specialized RMB

10 million facility within just a few days. This not only secured procurement

costs in time to ensure production and delivery but also helped this export-oriented company gain a

competitive edge in the fierce international market.By focusing on the “short-term frequent and urgent” financing needs of small and micro foreign tradeHelping an enterprise to address the “transport enterprises the Company uses flexible and efficient leasing services to ease their liquidity pressurescapacity challenge” and safeguarding public mobility and address their urgent needs as they go global.After the 2025 Spring Festival a car rental company in

Suzhou faced a dual challenge while handling the Spring Supporting enterprise transformation and upgrading to ease the

Festival travel rush and accelerating its transition to new pressures on the private economy

energy vehicles: insufficient vehicle inventory and a lack

of funds for replacements. JFL’s small enterprise finance In 2025 an industrial plastic products company in Changzhou Jiangsu

team conducted on-site research accurately assessed the actively pursued digital transformation and green upgrading but ran into a

company’s peak-season operational needs and efficiently funding bottleneck when introducing high-end intelligent production lines

provided RMB 5 million in customized financing support and expanding its modern industrial park.helping the company purchase new vehicles and upgrade With its expertise in the packaging industry JFL precisely identified

its charging facilities. the company’s transformation challenges and potential risks. Taking a

By focusing on the financing pain points of private medium small and micro transportation service proactive approach it tailored a combined “direct leasing + sale-and-leaseback” solution: direct

enterprises—namely the difficulty and urgency of obtaining funds—the Company provides efficient leasing supported the acquisition of advanced extrusion equipment to boost production capacity

and flexible financial support during critical periods such as festivals and holidays. This helps safeguard and efficiency while sale-and-leaseback unlocked capital from existing assets to supplement working

public mobility and demonstrates the inclusive value of financial leasing in serving small and micro capital for the park’s construction.market entities and improving access to public services. This efficient and flexible financial solution not only quickly filled the company’s funding gap but also

helped it successfully unlock new production capacity and expand into high-value-added business areas

injecting strong momentum into the high-quality development of the traditional manufacturing enterprise.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

70 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 71

04 Indicators and targets

3 Digital finance and technology enablementThe Company continues developing inclusive finance and by setting targets for the number of projects

funded and the amount of financing provided to micro and small clients continuously monitors and

manages the implementation of inclusive finance. Going forward the Company will continue to deepen

inclusive finance services focus on micro and small enterprises agriculture rural areas and farmers

Digital finance has become a key engine for reshaping financial leasing processes and

and livelihood-related areas. It aims to channel financial resources more precisely and efficiently to the

improving service efficiency. With the “integration of industry technology and finance” as

underserved segments of the real economy effectively driving the development of inclusive finance.its core strategy JFL is comprehensively advancing a secure intelligent and fully digital

transformation to enhance the precision and efficiency of its services to the real economy.The Company continues expanding the reach of its inclusive finance services

precisely matching the financing needs of market entities such as micro small

Objectives and medium-sized enterprises and self-employed entrepreneurs. Through flexible 01 Governance

and efficient leasing products it improves the accessibility and convenience of

financial services.In accordance with the planning and guidance on “digital finance” set out in the five priority areas of

finance as well as the requirements of documents such as the Fintech Development Plan (2022–2025)

the Company continuously improves and refines its digital finance management system and has

formulated internal rules such as the Data Governance Management Measures Information Security

In 2025 the Company provided approximately RMB 70 billion in financial Management Measures and Information Technology Risk Management Measures to standardize the

Progress in services to micro small and medium-sized clients up 25% year on year. specific processes for implementing digital empowerment initiatives.

2025 In 2025 the Company executed over 100000 contracts with an average Under the strategic guidance of the Board and the support of senior executives the Information

financing amount of RMB 0.95 million per contract. Technology Department oversees the Company’s overall digital transformation roadmap. It leads

core initiatives such as system architecture upgrades data governance framework development

cybersecurity protection and technology-enabled business innovation ensuring the implementation

iterative improvement and value realization of the Company’s digital finance strategy.internal

Data Governance Management rules Information Technology Risk

Measures Management Measures

Information Security

Management Measures

system architecture upgrades cybersecurity protection

core

initiatives

data governance framework technology-enabled business

development innovationAbout JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

72 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 73

02 Strategies 03 Management of impacts risks and opportunities

The Company follows a “three-step” approach and upholds “three core principles” as it continues to advance technology- Through policy tracking technology assessment and business scenario analysis the Company

enabled empowerment and digital transformation. systematically identifies risks and opportunities related to digital finance. It dynamically monitors key

indicators such as AI compliance data security and operating efficiency and continuously optimizes

critical areas such as intelligent risk control automated decision-making and client acquisition.Enablement a strategic focus

three core The Company has built a multi-channel client management system launched Integration three-step Strategies a problem-solving approachprinciples industry-specific WeChat official accounts introduced an intelligent order

Improving client submission function that allows business information to be submitted within one

Leadership seamless integration with expansion and service minute. Additionally the Company keeps increasing mobile business tools for

business development

systems account managers comprehensively upgraded its e-signature system and added

video dual-recording functionality. These enhancements simplify operational

procedures while ensuring legal compliance.Focusing on key areas such as AI applications and intelligent risk control the Company identifies policy and compliance

risks as well as business development opportunities. It is building a sustainable digital finance ecosystem by strengthening

policies optimizing processes and upgrading technology.Analysis of risks opportunities and response strategies

Type of risk and Risk and Time horizon Financial Response

opportunity opportunity analysis of impact impact analysis strategy

The Company has developed

· AI applications face the risk of

and continuously refined

t ighter regulat ion; insuf f ic ient

internal policies specific to AI. It

compliance management could lead

promotes awareness among all “micro”

to negative regulatory feedback and service

Short- employees on the appropriate

a loss of market confidence. Higher architecture

Policy risk medium- and use of AI and ensures that

· The imp lementa t ion o f new operating costs

long-term technical staff understand self-developed

technologies must be embedded

how to build controllable AI 20 systems

within compliance frameworks

applications guaranteeing that

which can create uncertainty due to

all related work is conducted in

approval delays or policy changes.compliance with requirements.· Digital finance improves operating functions

efficiency by shortening business 1340 launched

cycles and reducing operating costs The Company continues

Lower operating In 2025 the Company continued research and development on a “micro”

through online processes intelligent leveraging digital finance

Product Short- costs service architecture built agile business clusters. It independently developed

r i s k c o n t ro l a n d a u t o m a t e d to empower its business

and service medium- and Higher 20 new systems and launched 1340 functional modules covering niche areas

approvals. operations and data

opportunity long-term operating business scenarios such as automotive finance agricultural machinery machinery processing and

· Data-driven asset management and governance enhancing the

revenue 20 digitized and moved distributed photovoltaic power. Over 20 new business scenarios were digitized.client profiling capabilities improve quality of its financial services. online In 2025 the Company’s commercial vehicle segment successfully integrated

risk identification and enable more with an online mobile platform enabling digital data collection and improving

refined operations. business development efficiency.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

74 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 75

JFL's digital & intelligent business matrix Focusing on the needs of key industries the Company has built a middle platform

centered on “industry adaptation + capability reuse.” It rebuilt five due diligence

systems for small businesses regional direct leasing and other business lines

Building a specialized launched general capabilities such as video-based due diligence strengthened

business support risk control by integrating intelligent analysis tools and enabled automatic

system generation of contracts and insurance policies. These changes are driving a shift

toward more intelligent and efficient due diligence and review processes.Additionally focusing on automotive finance the Company has built a digital

support system covering the full process. It has launched a new online mortgage

and release management system that is directly connected to the Ministry

of Public Security platform compressing the processing cycle for mortgage

registration and release from several weeks to within half a day and significantly

reducing costs.Case Intelligent restructuring and practical application of the regional direct leasing due diligence

study

system: driving standardized risk control and service efficiency enhancement through digital

finance

To address challenges in regional direct leasing—such as scattered clients non-standardized

documents and cumbersome manual processes—the Company restructured its regional direct

leasing due diligence review system in 2025. The core objective was to break down data silos by

integrating common capabilities such as “intelligent bank statement analysis” “financial statementrecognition and analysis” “AI digital-human review” and “client relationship mapping" into the system.The Company also connected directly with multiple insurance companies creating a fully closed-loop

process from project review to automatic generation of contracts and insurance policies. Future plans

include launching a reward points mall to manage marketing channels digitally.By embedding risk control rules and algorithmic models into the system the Company has

standardized and automated the due diligence process reduced manual operational risk and

compliance costs and improved the response speed and risk-control precision of financial services to

the real economy.Optimization initiative of JFL’s mobile business development platform in 2025

Vehicle Leasing HiLeasing Mobile Leasing

(Che Le Zu) (Hi Le Zu) (Zhang Le Zu) Through its indicator management platform the Company has further developed

its digital risk control system dynamically optimized strategy models and

upgraded the monitoring and early-warning system enabling routine tracking

Achieved end-to-end mobi le Integrated wi th key vendors ' Added client map and opportunity Strengthening and handling of risk matters.processing for the auto retail applets launched services like management modules integrated full-process risk

business completed foundational pre-approval result inquiries and multi-dimensional external data management Furthermore the Company has launched digital systems such as post-leasing

upgrades such as underly ing project progress tracking and and AI-powered outbound call capabilities management promoting online processing and data aggregation for critical

architecture and CDN optimization promoted digital and intelligent channels for lead screening aspects. For its passenger vehicle business it has established a complete

and improved system stability. management of vendor financing. enabling more targeted client management process covering risk monitoring behavior tracking and asset

outreach. disposal.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

76 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 77

Unified

foundation

Focusing on a data service system · The Company has improved its enterprise client tagging system to include

Improving data Enriched external dataof “unified foundation + diversified passenger and commercial vehicle model databases farmer verificationgovernance

a p p l i c a t i o n s + s t a n d a r d i z e d Data service

resources

affiliated companies agricultural machinery subsidies and real estate data.and application systemgovernance” the Company is working

capabilities Diverse Standardized

to unlock the value of data. applications governance

· A unified data foundation was established.Centralized data asset · The hardware of the data integration and analysis platform was upgraded

JFL’s actions and outcomes in enhancing data governance and application capabilities in 2025 integration computing power improved by 40% and report generation speed shortened

by an average of 25%.Dimension Actions and outcomes

Regulatory system

· The Company completed multiple system upgrades added and revised 69

upgrades and reporting

types of regulatory reports and optimized 153 key reporting items.item optimization · The Company built special data marts for automotive retail and digital

risk control added 72 common models to the offline data warehouse and

achieved a model reuse rate of 65%.· The Company implemented eight core feature upgrades including a net · The Company revised the Data Governance Management Measures carried

Improved company

income-to-disbursement ratio model two-year cycle forecasting and foreign out certification-based training for data entry personnel and cumulatively

data governance

Iteration of the exchange rate adjustments; the system has become a core tool for the covered 600 participants.system

Comprehensive Finance Department’s monthly budget execution analysis. · The Company built an indicator management platform and a knowledge base

Budget 2.0 system · The Company optimized the accounting logic 2.0 of the Profit Center of data standards and terminology with 1165 indicators input and applied.differentiating the accounting of funding costs and the performing targeted · The Company added multiple regulatory data validation rules and completed

allocation of operating costs. the sorting and cataloging of data sources for three main reporting systems.Launch of the online asset · The system calculates probability of default and loss rates across different

portfolio and risk pricing business markets and features a new function of automatic risk cost

system calculation.In terms of self-developed system building the Company completed

microservice transformation and modular upgrades for key systems significantly

enhancing system stability and scalability. It continues enriching its distributed

· The Company launched more than 20 thematic dashboards carried microservice component library shortening response time for new requirements.out special analyses on agricultural machinery regional micro and small The Company is also continuously improving its open-source governance

businesses private hospitals and more and produced more than 50 refined framework advancing a path toward fully autonomous and controllable system

management recommendations. Continuously enhancing development.Deepened data · The Company advanced the construction of “specialized industry data asset independent R&D andapplication applications” setting up joint project teams with groups focused on printing innovation capabilities In addition the Company has strengthened knowledge management and built a

scenarios and packaging sanitation vehicles and other segments to build a client shared knowledge ecosystem. In 2025 the Company’s knowledge management

tagging system and tiering standards. system was initially implemented and the Youle Knowledge Service Platform

· The Company restructured and upgraded the data portal adding modules had accumulated 328 knowledge assets including 69 policy and procedural

such as strategic development and financial operations redesigning over 40 documents 32 industry research reports and 7 classic case reviews. Through AI-

pages and creating a mobile “data pocket.” powered smart search it provides precise knowledge services and helps improve

employees’ innovative capabilities.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

78 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 79

In 2025 the Company significantly expanded its use of AI technology enriching

Expanding AI application scenarios to improve business processing efficiency and risk control

applications precision driving its digital transformation from process digitalization to intelligent

decision-making. Case study Intelligent disbursement review system for the passenger vehicle retail business

· To tackle the challenges of complex disbursement review materials and inconsistent standards in

passenger vehicle retail the Company adopted a dual-engine architecture combining optical character

JFL’s AI applications and outcomes across processes in 2025 recognition (OCR) and multimodal large models. It created AI digital employees for automated pre-

review. By extracting key elements through semantic analysis the system established a process ofLaunched AI digital-human review to enable ”AI-assisted initial review + manual substantive review and decision-making" balancing risk control

intelligent initial risk screening accuracy with business efficiency.· After the system went live 13% of standard cases were automatically screened in the first round.Per-case processing time was reduced by 42% to 3.35 minutes and initial review labor was cut by

Due diligence half allowing the team to focus on complex risk assessments. The system has transformed traditional

and review comparison-based review significantly improving business processing efficiency while maintaining risk

Deployed intelligent review robots and a control accuracy.telephone quality inspection system with Launched a dedicated AI review Operational Business

the contract auto-approval rate reaching review review system improving disbursement Automated Preliminary Processing Time

15% and quality inspection coverage approval efficiency by 40% Screening Rate for per Transaction

OCR

reaching 100% Standard Cases Reduced Marketing Dual-Engine

management Architecture

Mult imodal 13% 42%

large models

Cultivated proprietary traf f ic through AI-driven

automated operations and integrated an AI-powered

outbound call channel for client screening Intelligent marketing management system for regional micro and small clients

Traditional marketing relied heavily on manual efforts resulting low efficiency. The Company adoptedCase Intelligent compliance quality inspection system for the passenger vehicle retail business a complementary public-private architecture and on the premise of ensuring “data can be used butstudy not seen” integrated AI digital employees for business opportunity insight intelligent outbound calling

· To address the challenges of an average monthly volume of 7000 passenger vehicle retail cases and task management. This “digital employee matrix” is driving a shift from manual blanket outreach to

low manual sampling coverage and compliance blind spots the project adopted a dual-engine intelligent targeted engagement.architecture combining automatic speech recognition (ASR) and large language model (LLM). Using By building an intelligent marketing system covering the entire chain from “public pool - potential leadslarge models for full-scope semantic analysis the system accurately identifies risks related to fee - prospects - outreach - conversion” the Company achieved 7×24 network-wide monitoring handleddisclosure and sales inducement creating a human-machine collaboration workflow of “AI full-scope an average of 3600 calls per day and tracked over 300 tasks. It accumulated more than 200 externalinitial review + manual review of suspicious risks.” tags and over 50 internal tags built a pool of nearly 50000 prospective clients and facilitated nearly

· Following implementation quality inspection coverage increased to 100% eliminating blind spots 200 conversions. The Company’s transition from experience-driven to technology-enabled operations

and protecting consumer rights and interests. The system saves nearly six person-months of work provides a digital model for large-scale client acquisition in inclusive finance for micro and small

per month enabling staff to transition to higher-value risk analysis roles. This shift from labor-intensive businesses.to technology-assisted risk control has significantly improved the quality and efficiency of consumer

protection compliance.Business

opportunity insight Average Daily Average Daily

Quality Inspection Monthly Workload Interactions Tasks Tracked

ASR Coverage Savings Intelligent Outbound Digital Workforce

Dual-Engine Calling +Matrix

Architecture 100 6 3600 300LLM % person task managementAbout JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

80 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 81

04 Indicators and targets

4 Service excellence and consumer protection

The Company places a strong emphasis on digital finance. It continues increasing investment in

information technology expanding its IT talent pool and setting relevant indicators and targets

to implement its digital finance strategy. By driving high-quality business development through

digitalization it is building a safer more efficient and smarter financial leasing service system.Service

The Company expands the application of technology promotes digital and intelligent upgrades across Objective Key tasks philosophy

business operations and leverages technology to empower risk management service innovation and

Objectives

operational management. This improves the efficiency of financial services and supports the high- Build a full-life cycle management Improve service quality and enhancing client service

quality development of the real economy. system for consumer rights and efficiency enhance product upgrading brand image

interests protection quality strengthen outreach of deepening client trust

consumer rights and interests empowering business development

protection and optimize

complaint management

Technology investment

for the year totaled RMB 78.4135 million up 26.59% year-on-year.Progress in

2025 For the full year:

20 self-developed 1340 functions business scenarios systems launched 27 digitized and 01 Governance

moved online

The Company has established and continuously improves internal rules such as the Management Measures for the

Protection of Consumers’ Rights and Interests and the Management Measures for Client Complaint Handling. It optimizes

the systems and mechanisms for consumer rights and interests protection safeguards the legitimate rights and interests of

financial consumers and strives to deliver more attentive service.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

82 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 83

02 Strategies

Governance framework for consumer rights and interests protection In 2025 JFL upheld a people-centered philosophy and systematically improved service quality

and efficiency by refining management systems deepening digital empowerment and expanding

communication channels.Hierarchy Organization / Responsibilities

Decision-making layer Board of Directors Committee of Risk Management and Consumer Rights

& Interests Protection Analysis of risks opportunities and response strategies

The Board of Directors integrates the consumer rights and interests protection

strategy into corporate governance and culture. It provides overall planning Type of risk and Risk and Time horizon Financial Responseopportunity opportunity analysis of impact impact analysis strategy

oversees implementation and incorporates it into the evaluation system

strengthening top-level design and strategic guidance. · Regulatory requirements for

consumer r ights and interests

The Committee of Risk Management and Consumer Rights & Interests protection continue to tighten. Any

Protection regularly reviews progress on consumer rights and interests flaws in processes could result

protection system improvements and issue resolution promoting deep in penalties and accountability

integration of systems with business operations and ensuring effective increasing costs for compliance Short- Higher

performance of its duties. Liability risks remediation and legal matters. medium- and operating costs

· Improper handling of customer long-term

c o m p l a i n t s m a y l e a d t o

dissatisfaction causing customers

The Company further

Management layer to seek legal recourse which carries Working Committee for Protecting Rights and Interests of Consumers the risk of legal disputes. strengthens its consumer

rights and interests protection

· A robust system and management framework for consumer rights and interests capabilities by improving · Optimizing the end-to-end service

protection are in place with clear departmental responsibilities improved decision- service quality and efficiency experience can significantly improve

making implementation and assessment mechanisms and guaranteed resources to enhancing product quality and client satisfaction and consumer

execute the strategy. optimizing complaint handling.trust dr iv ing business growth

through positive word-of-mouth.· Complaint data analysis is strengthened a fair and honest consumer rights Product · Adhering to high standards of Short- Higher

protection culture is cultivated and consumer needs are embedded throughout and service consumer r ights and interests medium- and operating

business operations and risk management. opportunity protection helps build a reputation long-term revenue

as a responsible financial institution

a n d c r e a t e s a c o m p e t i t i v e

Executive layer advantage contributing to a larger Consumer Rights & Interests Protection Center market share.· The Center coordinates policy development evaluation and compliance oversight. It manages

the entire process of complaint handling root cause analysis and regulatory reporting laying a

solid foundation for implementing consumer rights and interests protection.· It promotes outreach and training emergency response and digital empowerment while

strengthening cross-departmental collaboration and closed-loop processes to improve the quality

efficiency and responsiveness of consumer rights and interests protection services.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

84 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 85

03 Management of impacts risks and opportunities

Case Establishing a retail small-order factory to improve client service efficiency

The Company continues reinforcing its consumer rights and interests protection efforts focusing study

on improving rules enhancing service quality and strengthening outreach to effectively safeguard In January 2025 to address the surge in small retail orders of construction machinery and the

consumers’ right to know right to choose and right to fair dealing. insufficient responsiveness of traditional large order processes the Company actively integrated

resources and established a “Retail Small-Order Factory.” Through a new organizational structure new

processes and a new operating model it achieved standardized assembly-line project management

and drove system improvements in e-signatures automated pre-review and online order submission.Improving service quality For the full year the number of small-order engineering machinery contracts increased by 91.74%

year-on-year with projects under RMB 3 million accounting for nearly 80%.Through measures such as process streamlining one-time disclosure of required documents and

JFL’s main actions and outcomes of service quality and efficiency improvement in 2025 simplified signing procedures the Company reduced repetitive steps and waiting times for clients

enhancing transaction transparency and service efficiency.Dimension Actions and outcomes

· The consumer rights and interests protection management rules were

revised in a timely manner. A “first-contact accountability system” was

introduced and the responsibilities of senior executives within the Consumer

Improving management

Rights & Interests Protection Center were clarified.rules

· A tiered management mechanism for consumer complaints was improved.Key complaints are subject to escalated review and case-specific resolution

ensuring efficient and effective handling.· The intelligent customer service system was continuously optimized.Voice scripts tailored to different scenarios were designed to better guide

customer emotions and AI was integrated with human service to deliver

7×24 support.

· The customer service system was connected to backend modules such

Improving digital service as collections financing assistance and SMS enabling automated voice

capabilities responses intelligent outbound calls and voice quality inspection. This

improved service efficiency and consistency.· A consumer rights and interests protection section was added to the

Company’s website providing centralized information on complaint channels

handling procedures timeframes and responsible personnel making it

easier and more transparent for customers to exercise their rights.· A multi-layered information disclosure mechanism was established.Establishing

Progress and outcomes of consumer rights and interests protection work

comprehensive consumer

are regularly disclosed through channels such as reports of specialized

communication channels

committees under the Board of Directors annual reports ESG reports and

and approaches

website announcements.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

86 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 87

JFL’s main actions and outcomes of complaint management optimization in 2025

Case Building an “insurance supermarket” to enhance post-leasing support Dimension Main actions and outcomes

study

To address post-leasing risk management needs the Company conducted research and collaborated · The policy for one-time credit reporting corrections was implemented.with several insurance brokerages both international and domestic to develop standardized insurance Internally operating guidelines were developed specialized training was

products for clients. Clients can choose suitable insurance solutions based on their needs and risk provided and an online verification process was established to protect

analysis. This “insurance supermarket” model improves the quality and efficiency of client service. Enhancing the ability customers' legitimate rights and interests.In 2025 the Company facilitated a total of 30 insurance policies with coverage amounting to RMB to proactively resolve · For common issues such as early settlement and asset repossession

305600. It continues promoting the rollout of insurance products across more business segments. complaints the Company improved the authorization mechanism for fee waivers and

This initiative effectively improved clients’ risk protection during equipment use. Through a developed operating guidelines for leased asset repossession reducing

standardized and transparent insurance selection mechanism it enhances clients’ awareness of the disputes at the source.need to protect leased assets throughout their lifecycle and effectively safeguards their right to know

right to choose and right to protection against risks. It reflects the Company’s proactive commitment

and professional service capability in consumer rights and interests protection. · Key terms such as lease interest rate and ownership are now highlighted

during the signing and video recording process improving clients’ right to

Optimizing business know.processes and information · Documents such as the Financial Leasing Contract and the Credit

notifications Reporting Notice were revised to clarify core rights responsibilities and

credit reporting rules comprehensively enhancing clients’ right to know

and risk awareness.· Full-process risk management for retail business was strengthened due

diligence standards were improved and a cross-departmental emergency

Strengthening compliance

response mechanism was established.management and

· Cooperation agreements with partner institutions were comprehensively

cooperation standards

reviewed to further clarify rights and responsibilities improve default

handling clauses and standardize third-party cooperation practices.Employees participating in insurance-focused training

Complaint handling processAdhering to the principle of “balancing business development with risk prevention · On-site complaintsOptimizing Forward

Respond toand control” the Company and all relevant departments work together efficiently Customer · Complaint hotline to relevant Conduct the client with complaint investigation investigation Complaint

to enhance the ability to proactively resolve complaints and further improve complaints · Complaint email functional

management departments and verification and handling

closure

complaint management. · Written complaints resultsAbout JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

88 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 89

Case The mechanism of monthly consumer rights and interests protection meetings and case reviews Case

study Launching the “3·15” all-domain consumer rights and interests protection publicity campaignimprove quality and efficiency of consumer rights and interests protection study

Around March 15 2025 the Company focused on protecting the rights and interests of financial

The Company’s Consumer Rights & Interests Protection Center organizes monthly meetings on consumers and built an integrated online and on-site outreach campaign. Online it released posters

consumer rights and interests protection and holds ad hoc case review sessions as needed. These comics and promotional videos reaching nearly 40000 users. It partnered with five manufacturers

meetings cover topics such as resolving complex issues targeted improvements and rectification to set up on-site “Financial Literacy Stations” reaching over 800 clients. It also carried out the “Elderlyin response to growth in consumer complaints managing frequently occurring problems and Care" campaign in communities providing more than 200 on-site consultations and distributing over

benchmarking best practices all aimed at improving the effectiveness of consumer rights and 100 brochures.interests protection efforts.

04 Indicators and targets

the Company regularly promotes financial literacy. Through

Internally systematic training and standardized service protocols it ensures

that frontline staff have a strong understanding of consumer The Company will continue to strengthen its consumer rights and interests protection system focus

rights and interests protection and strong service capabilities. on improving service quality and efficiency enhancing risk prevention and control and improving

complaint handling mechanisms. It will also strengthen outreach and education working to make

the Company carries out diverse awareness and education consumer rights and interests protection more systematic regular and refined thereby safeguardingExternally activities to help clients and partners “understand know and use consumer rights and interests.Strengthening finance.”

financial literacy

outreach It conducts on-site “Five-Entries” campaign by going into It will effectively protect clients' legitimate rights and interests enhance service

on-site communities setting up information booths distributing

Objectives transparency and satisfaction and build a safe and reliable financial leasing brochures addressing common scams and answering questions service environment.one-on-one. It also publishes risk alerts educational graphics.and short videos online through its official website and new

online media channels to improve public financial literacy and risk

prevention skills. Progress in Annual complaint Annual complaint

2025 handling rate: 100% resolution rate: 98.97%About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

90 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 91

Category Initiatives and outcomes

5 Information security and privacy protection

· Proactive management measures: The Company has built an enterprise-

wide data governance system implemented tiered and classified

management and full lifecycle encryption and regularly conducts security

JFL’s data and information management covers external data such as client data and awareness training for all employees and routine attack and defense

transaction data recorded in business operations risk management and internal control exercises to strengthen human-related risk prevention at the source.processes as well as internal data such as the Company’s operating information. Additionally it has established strict supplier vetting and third-party service

audit mechanisms embedding security and compliance requirements

Implementing into the entire business process to ensure no blind spots in outsourced

information security activities.Management structure protection measures · Passive defense measures: The Company has deployed next-generation firewalls intrusion detection systems and endpoint security software

building a “cloud-network-endpoint” three-dimensional technical defense

Hierarchy Responsibilities line to block malicious attacks and abnormal access in real time. It has also

Decision-making and supervision organizations established a 7×24 Security Operations Center (SOC) and an automated

· The Chairman is the primary person responsible for information incident response mechanism to ensure that in the event of a security

security at the Company. The Data Security Team is the highest incident risks can be quickly isolated threats neutralized and business

decision-making organization for information security management operations restored.responsible for reviewing and approving the information technology

security strategies.· The Internal Audit Department regularly conducts information

technology security risk audits and supervises data security and client Conducting internal and · The Company obtained ISO 27001 Information Security Management

privacy protection. external information System certification

reviews

Execution organization

· The Work Safety Committee is responsible for organizing the implementation

of information technology security strategies; hearing work reports reviewing

solutions to major issues coordinating resources supervising the implementation

of duties and reporting to the Board of Directors. · Cybersecurity information security and data security training is provided Employee information

to employees in key roles and new hires. In 2025 data security and client

security training and

privacy protection training sessions were conducted covering 100% of the

Execution departments awareness campaigns

staff.· The Information Technology Management Department is responsible for organizing

coordinating and implementing the Company’s information technology security management

work and for developing information technology risk management rules including information

technology security management policies.Through a combination of proactive management and passive defense measures the Company implements information

security protections. It also conducts regular internal and external information reviews and ongoing employee training

and awareness campaigns continuously improving information security awareness and execution capabilities at both the

Company and employee levels. Software Capability Maturity Model Data Management Capability Maturity In format ion Secur i ty Management System Integration Level 3 Certification (CMMI Assessment Model Level 3 Certification

Certification (ISO 27001) certificate Level 3) certificate (DCMM Level 3) certificate

In 2025 the Company had no data or client privacy breaches and its data center maintained 100% business continuity.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

92 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 93

Environment

advancing green development and building

a beautiful China

SDGs addressed in this chapterJFL responds to the national goals of “peaking carbondioxide emissions and achieving carbon neutrality”

seizing the trend toward green development and

actively addressing climate change.J F L c o n t i n u e s d eve l o p i n g g re e n f i n a n c e

strengthening green leasing management and

supporting enterprises in their green and low-carbon

transition.JFL integrates green principles into operations and

office practices forming a low-carbon action system

and fulfilling its environmental responsibility.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

94 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 95

01 Governance

1 Climate change response

In terms of its climate governance structure the Company has established a three-tier governance framework covering

decision-making management and execution clearly defining the responsibilities of each level and integrating climate risk

management into corporate governance and business operations.In the face of the global challenge brought by the frequent occurrence of extreme weather

events both domestic and international attention to climate resilience and transition risk

continues to rise. Actively addressing climate change is no longer merely an environmental

issue but a global strategy that bears on economic security and high-quality development. Governance framework for “climate change response”

Hierarchy Organization / Responsibilities

JFL integrates climate risk management into its governance framework and business decision-making Decision-making layer

processes. On the one hand it allocates financial resources to help enterprises transition to low- Board of Directors and specialized committees

carbon operations and supports the development of green finance; on the other hand it carries out

green operations and through measures such as energy conservation and carbon reduction fulfills its

· Formulating the overall strategy and policies for addressing climate

environmental responsibility in a practical way.change incorporating climate risk into the corporate governance

framework reviewing major environmental issues and supervising the

performance of the management team.Management layer

Operational management team

· Coordinating and advancing the implementation of climate-related strategies

organize the formulation of implementation plans coordinating resource support and

reporting progress and risk conditions to the Board of Directors on a regular basis.Execution layer

Risk Management Department

· Taking the lead in identifying assessing and monitoring climate-related risks incorporating

climate risk into the comprehensive risk management system developing management

methods and tools support information disclosure and guiding business departments in

implementing risk response measures.Business functional departments and subsidiaries

· Implementing green operations supporting green finance advancing support for green

projects and low-carbon transition and cooperating in information disclosure and data

management.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

96 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 97

The asset value of high-carbon industries

may decline due to rising carbon costs or

policy restrictions increasing the risk of

02 Strategies leased asset impairment and affecting asset

quality and earnings stability. Medium- Lower

Market risk and long- operating

In the Company’s “Retail + Technology” strategic plan for 2022–2026 green leasing is positioned as an important term revenueWith the accelerating iteration of green

development direction with a focus on industries such as clean energy energy conservation and environmental protection technologies equipment whose technology

and high-end equipment. Against this backdrop the Company systematically identifies the risks and opportunities brought path is replaced may face the risk of early

about by climate change develops targeted response strategies and continuously enhances its green finance service obsolescence or asset devaluation.capabilities.If progress in the green transition is slow or

Medium- Lower

Reputational there is suspicion of “greenwashing” public

and long- operating

risk concerns may be triggered negatively

term revenue

Analysis of risks opportunities and response strategies affecting brand credibility and client trust.Type of Time Financial Policy incentives for green financing and the risk and Risk and opportunity analysis horizon impact Response strategyopportunity of impact improvement of carbon trading mechanisms For operations the

are prompting more enterprises to seek Company continues

support for low-carbon transition increasing

Short- promoting green

market demand for green leasing business.As the national strategy of “peaking carbon Market medium- operations anddioxide emissions and achieving carbon opportunity and long- strengthening awareness The spread of ESG investment concepts isneutral i ty” cont inues to advance and term of climate risk across the For all business segments driving capital toward green assets helping

green finance regulation becomes more Company.the Company is gradually the Company optimize its financing structure

stringent financial institutions face stricter integrating climate risk lower funding costs and enhance market

requirements for environmental information into comprehensive recognition.disclosure and compliance. Failure to meet risk management and

those requirements may affect business accelerating the expansion

access and reputation. Continued growth in demand in areas such Higher of green finance business

Short- as clean energy energy conservation and operating

Higher supporting the green

Policy and medium- environmental protection and high-end revenue

operating transformation of the

legal risks and long- equipment creates broad market space

costs energy mix green

term for financial leasing and drives the launch

development in urban of green projects and the development of

transportation the Product innovative products. Short- to

Differences in local environmental regulations construction of energy- and service medium-

and their dynamic adjustments may increase saving and environmental opportunity term

the complexity of project compliance protection facilities and New scenarios continue to emerge in niche

espec ia l l y c rea t i ng imp lemen ta t i on technological upgrading in segments such as distributed photovoltaics

uncertainty in cross-regional business. high-end equipment. electric heavy-duty trucks and intelligent

agr icu l tura l machinery creat ing new

opportunities for customized and scenario-

based leasing services.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

98 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 99

Climate risk includes physical risk and transition risk. For physical risks the JFL’s risk description and response strategies for the solar power generation and wastewater treatment

Company uses methodologies from authoritative organizations such as the and reuse sectors

Intergovernmental Panel on Climate Change (IPCC) as a reference. It selects the

Pilot project on

major categories of electricity heat gas and water production and supply as

climate resilience

samples in that they involve the highest share of assets. Based on physical risk Solar power generation Wastewater treatment and reuse

analysis

vulnerability and historical disaster losses the Company assesses the risk level Centralized and distributed High concentration and prominent

and exposure level of ten types of natural disasters across different regions photovoltaic systems key disaster risks

analyzes their risk ratings and develops response measures. Significantly differentiated risks

· Conduct targeted risk assessments · Enhance protection capabilities for critical facilities

JFL’s 2025 physical risk results for the major categories of electricity heat gas and water production and supply · Optimize the layout of newly added assets · Promote regional dispersion and technological upgrading

Industry physical risk score

Average

physical

Extreme score

Fourth-tier industries Flood Coastal flood Earthquake Landslide Tsunami Volcano Cyclone Drought high- Wildfire 03 Management of impacts risks and opportunities

temperature

Other electricity

generation 16 2 4 5 1 1 15 5 5 5 6 Leveraging the methodology of the climate resilience pilot project the Company has systematically

Production and 25 6 4 5 2 3 20 16 10 10 10 established a climate physical risk identification and assessment system covering three levels: region supply of natural gas industry and client; it has incorporated climate physical risk into its comprehensive risk management

Solar powergeneration 20 3 4 4 2 2 20 8 10 10 8 framework forming a full lifecycle climate risk management system spanning “pre-leasing duringHydropower leasing and post-leasing.”

generation 20 6 4 5 2 2 20 16 10 10 10

Wastewater

treatment and reuse 20 10 4 3 5 1 25 25 20 10 12Full lifecycle climate risk management spanning “pre-leasing during leasing and post-leasing”

Production and

supply of liquefied 25 2 3 4 1 1 25 16 10 10 10

petroleum gas

Thermal power

generation 15 5 4 4 3 5 25 10 4 10 9 Pre-leasing: During leasing: Post-leasing:

Heat production and 25 8 4 4 2 1 25 20 15 15 12 Strengthen regional Implement Dynamically track supply

risk scoring and differentiated pricing changes in project

Combined heat and

power generation 15 4 4 3 4 1 25 10 5 10 8 access thresholds and insurance risks

Biomass power

generation 20 3 4 4 2 2 25 8 10 10 9

requirements

Electricity supply 20 4 4 5 2 1 20 8 12 20 10Production and In 2025 the Company actively responded to the green finance policy requirements in the “five prioritysupply of tap water 25 10 3 4 4 1 25 16 15 15 12 areas of finance”. For details see the “Green Finance” and “Green Operations” sections of this report.Wind power

generation 20 3 4 4 2 2 20 10 5 10 8

Disaster rating Physical risk score Explanation of disaster rating scores:

Indicators and targets

1 1 — 5 1–No data available 04

2 6 — 10 2–Very low sensitivity The final analysis shows that the overall physical

risk of the Company’s assets in the major

3 10 — 15 3–Low sensitivity categories of electricity heat gas and water The Company actively responds to the national strategy of “peaking carbon dioxide emissions and

4 15 — 20 4–Medium sensitivity production and supply is of very low sensitivity. achieving carbon neutrality” increases financial support for areas such as green energy and energy

conservation and environmental protection fully advances the low-carbon transition of industries and

5 20 — 25 5–High sensitivity jointly addresses the challenge of climate change.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

100 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 101

02 Strategies

2 Green finance for low-carbon transition

The Company practices the philosophy of green development implements the relevant deployment requirements of the

five priority areas of finance and fully integrates the concept of green finance into every aspect of business development.It proactively seizes the strategic opportunities brought by the green transition and continuously advances the high-quality

JFL actively responds to the national strategy of “peaking carbon dioxide emissions and achieving carbon neutrality” development of its green finance business.and deeply integrates the green development philosophy into its business strategy and practices. By supporting

the green transition of the energy mix serving the green development of urban transportation and supporting the

advancement of energy conservation and environmental protection business it leverages specialized and distinctive Analysis of risks opportunities and response strategies

financial leasing services to help drive green and high-quality economic development.Type of Time

risk and Risk and opportunity analysis horizon of Financial impact Response

01 Governance opportunity impact

analysis strategy

As green finance regulatory policies continue

The Company has formulated internal management rules such as the Green Leasing Management Measures incorporated to improve and disclosure requirements Short- Higher operating

the practice of green finance into its strategic planning and promoted the standardized development of green leasing and continue to rise failure to keep pace with medium- costs

green financing business. Market risk compliance standards in a timely manner may and long- Centering on

expose the Company to risks such as restricted

term green leasing

business access higher financing costs and Lower operating and supported by

weaker market competitiveness. revenue

Governance framework for “green finance” green financing

the Company

Hierarchy Organization / Responsibilities As public and investor attention to financial focuses on key

institutions’ environmental responsibilities Higher operating areas such as

Decision-making layer Medium-

Board of Directors and Strategy Committee Reputational increases any gap between the Company’s costs clean energy

and long-

risk green practices or information disclosure and and energy

· Approving the Company’s strategies including development plans for termmarket expectations may affect corporate conservation and

green leasing and supervising and evaluating the implementation of Lower operating credibility and brand value. environmental

related strategic objectives. revenue protection and

Management layer Based on external demand for green financial systematically

Operational management team products the Company expands the scope Short- seizes the

Product

· Implementing strategic plans for green leasing formulating management rules related and service forms of green leasing business medium- Higher operating

development

and service

to green financing and green leasing and establishing and improving the relevant enriches its comprehensive financial service and long- revenue

opportunities of

opportunity green finance

internal management mechanisms. system and enhances its professional service term

· Regularly approving the Company’s green leasing work reports. capabilities in the green industry.through system

building process

Execution layer optimization andBusiness functional departments and subsidiaries Driven by the national strategy of “peakingcarbon dioxide emissions and achieving risk management· In terms of green leasing the execution layer is responsible for implementing requirements of carbon neutrality” and the rapid accumulation while effectively Short-

green leasing policies including investigating and assessing customers’ environmental and social of green capital green credit green bonds and addressing Market medium- Higher operating

risks continuously tracking changes in customers’ environmental and social risks and conducting other instruments are becoming increasingly transition and

quality checks on green leasing business data. opportunity and long- revenuemature channel ing funds steadi ly into compliance risks.· In terms of green financing formulating green financing policies and standards promoting the termsustainable projects and providing long-term

implementation of products such as green bonds and green loans ensuring that funds are directed momentum for financial institutions to expand

to industries included in the green industry directory and strengthening oversight of fund use and high-quality business.compliance management.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

102 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 103

03 Management of impacts risks and opportunities

In 2025 the Company cumulatively funded 21800 green leasing projects up

By tracking green finance policies and regulations regulatory guidance and market trends the Key initiatives and 70.3% year on year with a cumulative investment amount of RMB 23.12 billion. At

Company systematically identifies risks and opportunities related to green finance. It regularly carries outcomes in green the end of the year the outstanding balance of green leasing business reached

out assessments in light of industry trends and business realities and embeds the results into strategy leasing RMB 50.65 billion up 22.5% year on year accounting for 34% of the leasing

formulation product design and risk control processes thereby achieving full-process monitoring and business balance.closed-loop management.In the Green Leasing Management Measures the Company clearly defines Key dimensions Initiatives and outcomes

three support measures — capital allocation process optimization and risk

Green leasing

management — and actively promotes the efficient implementation of green · The Company expanded the clean energy market deepened engagement in

projects helping drive the green transformation of the real economy. large-scale centralized wind and solar projects vigorously developed distributed

retail business for commercial and industrial users and steadily advanced

residential photovoltaic business.· The Company accelerated the deployment of complementary energy sources

Supporting the green such as energy storage biomass power generation and hydrogen energy with a

transition of the energy strong focus on the harmless treatment of solid waste and energy conservation

Support the development of mix and consumption reduction in industrial parks and high-energy-consuming

green leasing business through

enterprises.reasonable fund allocation and

· In 2025 the Company supported new installations of new energy power

prioritized resource allocation.stations with a total capacity of 11 GW equivalent to generating 13.2 billion kWh

of clean electricity annually saving 4.03 million metric tons of standard coal and

reducing carbon dioxide emissions by 9.92 million metric tons.Guiding principles

for green leasing

Standardize the access follow- · The Company supported green consumption in passenger vehicles facilitated

Optimize internal processes to up management and exi t the replacement of gasoline-powered ride-hailing vehicles with electric

accelerate the development mechanisms for medium- and Serving the green ones helped to replace urban buses with electric alternatives promoted the

approval and promotion of high-risk clients. development of urban electrification of sanitation vehicles and accelerated the development of

green leasing products. transportation charging and battery swap projects.· In 2025 the Company facilitated the purchase and replacement of over 30000

new energy vehicles with a total disbursement exceeding RMB 6.6 billion.· National Financial Regulatory Administration the Company has incorporated a · The Company helped enterprises improve energy efficiency in production

number of ESG-related self-assessment indicators into its client due diligence seized the opportunity to promote the “new energy + industry” model and

checklist refining its ESG risk assessment for clients. assisted industrial parks and high-energy-consuming enterprises in reducing

Supporting energy

energy consumption and achieving green power substitution for self-generation

conservation

Due diligence for · Additionally the Company has established a green leasing assessment system and self-use.environmental protection

green leasing clients incorporating the growth of business in restricted industries and the provision of · The Company vigorously supported pollution prevention and control with

and green technology

business to clients with significant environmental and social risks as deduction increased service efforts in the areas of waste gas wastewater and solid waste

upgrades

factors within its green leasing assessment metrics. It also regularly conducts treatment.audits of green leasing management to ensure that its green leasing business is · In 2025 the Company disbursed RMB 3.2 billion in business segments such as

conducted in compliance with regulations. energy conservation environmental protection and green technology upgrades.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

104 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 105

Case

study Empowering the sanitation industry to

Case

study One helicopter safeguarding the ecological

protect the ecological balance of a pristine forests of southern Jiangxi and strengthening

lake the ecological security barrier

In 2021 facing the eutrophication crisis in Erhai supplementary funding solution through a sale- In the spring of 2025 faced with the challenge JFL proactively stepped in and provided a

Lake caused by the combined pressures of tourism and-leaseback arrangement precisely matching of forest fire prevention in the mountainous targeted financing solution through a direct

and agriculture the Dali municipal government the seasonal needs of organic fertilizer production and densely forested areas of southern Jiangxi leasing model offering a special financing

urgently commissioned a local environmental and ensuring the stable operation of 30 intelligent where traditional ground-based patrols were facility of RMB 75 million. This ensured that the

protection company to carry out aquatic weed production lines. insufficient a local forest protection company helicopter was delivered on schedule and put

removal and waste transport. However the As of 2025 JFL provided a total of nearly RMB urgently needed to acquire a high-performance into operation for patrol monitoring and aerial

company faced rejection from traditional banks 20 million in financial support covering the helicopter to establish an aerial patrol network. firefighting. This partnership successfully bridged

due to the long project cycle and a lack of replacement of 69 vehicles and supplemental However the high procurement cost and the the final gap in forest fire prevention and control

collateral putting the remediation work at risk of working capital for raw material procurement nature of aerial forest protection projects— providing a solid “protective umbrella” for the

stalling. At this critical moment JFL stepped in. ahead of the spring plowing season. This support which are characterized by strong public service vast forested mountains through the specialized

Addressing the “asset-light” pain point of sanitation has helped the environmental protection company attributes and a lack of collateral—created a “financing + asset leasing” model.companies it customized a RMB 7 million direct process over 500000 metric tons of organic waste financing dilemma for the company.leasing solution for equipment. With an extremely annually transforming what was once an ecologicalfast turnaround—“approval within one day vehicle burden into 3 million metric tons of organicpickup within three days”—it enabled the first batch fertilizer resources. This case vividly illustrates howof sanitation trucks to be deployed immediately for financial leasing through its “financing + assetSupporting a photovoltaic sand control project in the gobi and promoting synergisticlakeside cleanup. leasing” model can resolve financing challenges in

development of desertification control and clean energy

In 2024 as the company prepared for the spring the environmental protection industry turning each

plowing season it faced a short-term liquidity sanitation truck into a solid force safeguarding a

squeeze caused by the procurement of organic plateau lake. In 2025 the Company provided financial leasing the project is expected to generate over 510

fertilizer. JFL responded quickly providing a services for a 360 MW photovoltaic sand control million kWh of electricity annually equivalent to

project in Changji Xinjiang. This project helped reducing carbon emissions by 268000 metric

build a combined clean energy base in the gobi tons each year.characterized by “generating electricity above Through its green leasing model the CompanySupporting green technological upgrades at ground while controlling sand below.” By using has demonstrated its ability to precisely address

a waste-to-energy plant to create an urban photovoltaic arrays to reduce surface wind the needs of ecologically sensitive areas

environmental “green power bank” speed and evaporation the project promotes facilitating the creation of renewable energy

vegetation restoration achieving synergy assets and opening up new pathways for

between power generation and ecological financial support of ecological governance.Faced with the pressure of treating over 20000 and-leaseback model. It unlocked the value restoration. Once fully connected to the grid

metric tons of waste per day in Shenzhen of the plant’s existing equipment—such as

coupled with stringent environmental standards incinerators and generator sets—with a financing

the local waste-to-energy power plant urgently amount of RMB 270 million effectively turning

needed technological upgrades. However the these core assets into a “green power bank” of

high cost of equipment replacement left the liquidity. This solution quickly filled the funding

plant with a significant funding gap. Moreover gap for the technological upgrades helping the

the plant was reluctant to tie up its core assets plant increase its daily waste treatment capacity

to secure traditional mortgage loans a process by 600 metric tons and generate over 300000

that would also consume considerable time. kWh of green electricity per day.JFL provided a precise solution adopting a sale-About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

106 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 107

The Company maintains deep cooperation with external financial institutions

Facilitating the delivery of a new-generation green oil tanker and expanding applications in Green financing executing green syndicated loans issuing green financial bonds and advancing Case

study international maritime emission reduction blue loan projects. Additionally the Company continues to explore innovative

financing methods such as green asset securitization consolidating high-quality

internal green assets to provide sustained impetus for the development of its

In August 2025 the Company provided financial the low-carbon transformation of the shipping green business.leasing support to a Singapore-based shipowner industry the Company directs financial resourcesfacilitating the successful delivery of the “JAL precisely into the high-efficiency shipbuilding Management initiatives and outcomesKALP” a new-generation 50000 dwt green MR sector promoting the renewal of green shipping

tanker. The vessel’s energy efficiency design equipment and expanding the application of Dimension Initiatives and outcomes

index (EEDI) reaches a leading level in the green leasing in the context of international

current MR tanker market. maritime emission reduction. · Initial screening of leasing projects was conducted in strictly accordance with

Through its professional service capabilities in the Catalogue of Green Bond Endorsed Projects.· Projects that pass the initial screening are reviewed by professional third-

party green rating agencies to ensure they fall within the scope of green bond

investment.Investment management· After funds are disbursed the Company uses the “Green Financial BondManagement Cockpit” to conduct real-time supervision and verification of the

use of funds for ongoing green bond projects ensuring that funds are used

exclusively for their designated purposes and to support the development of

green projects.· The Company has established a special ledger to record the initial investments

subsequent fund inflow and re-investments of green leasing projects.Building a green mine to protect a “life corridor” in the gobi Fund management · This ensures traceability and monitorability throughout the entire process of

green financing funds enhancing the specialization and standardization of fund

management.In December 2025 the Company helped a based intelligent path planning combined with

mining operation in Xinjiang introduce 40 pure electronic fencing technology precisely avoids Since 2019 the Company has been issuing green financial bonds. By the end of 2025 it had issued six series of greenelectric unmanned mining trucks. The mine is animal migration routes and water sources financial bonds totaling RMB 6.5 billion with all raised funds used for green industrial projects as stipulated in the “Cataloguelocated adjacent to the Kalamaili Nature Reserve minimizing disruption to wildlife habitats. of Green Bond Endorsed Projects (2021 Edition).”

a key migration corridor for rare species such It is estimated that in 2026 the application of

as Przewalski’s horses and Mongolian wild asses. these pure electric unmanned mining trucks

Given the fragile Gobi ecosystem the project will help reduce carbon emissions at the project Summary of JFL’s green financial bond issuances

prioritized “zero emissions and low disturbance.” by approximately 9000 metric tons achieving

The pure electric drive eliminates noise and green mining while effectively protecting desert

Issue date Bond name Interest rate (%) Term (year) Issuance scale

vibration avoiding disturbance to wildlife. AI- vegetation and wildlife habitats.

2019/4/11 19 Jiangsu Leasing Green Bond 01 3.7 3 RMB 0.5 billion

2019/4/11 19 Jiangsu Leasing Green Bond 02 4.12 8 RMB 0.5 billion

2020/3/6 20 Jiangsu Leasing Green Bond 01 3.05 3 RMB 1 billion

2023/11/7 23 Jiangsu Leasing Green Bond 01 2.8 3 RMB 1.5 billion

2024/1/18 24 Jiangsu Leasing Green Bond 01 2.76 3 RMB 1.5 billion

2024/3/7 24 Jiangsu Leasing Green Bond 02 2.5 3 RMB 1.5 billionAbout JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

108 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 109

It continuously improves the green finance management system and innovates green leasing products

and service models with a focus on supporting the development of low-carbon industries such as

Case

study Advancing the first blue loan project undertaken by a domestic non-bank financial institution Objectives clean energy energy conservation and environmental protection and green infrastructure. Through

specialized financial services it aims to drive the green and low-carbon transformation of the economy

In 2025 the Company pa r tne red w i th such as agriculture forestry animal husbandry and society.International Finance Corporation (IFC) to fisheries new energy environmental protection

advance a cross-border blue and green equipment and the marine economy.syndicated loan project. The aim was to secure The Company continuously breaks new ground Progress in At the end of 2025 the Company’s green leasing asset balance reached RMB 50.65 billion up 22.5%

medium-to-long-term funding to support in the field of sustainable financing and has 2025 year on year.blue and green leasing business that meets taken a pioneering role in exploring blue finance

international standards with funds to be pathways for non-bank financial institutions

deployed as green and blue assets in sectors supporting the development of green finance.

3 Green operations for energy Securing insurance funds to support green leasing asset projects conservation

In 2025 the Company successfully issued an high-end manufacturing.insurance asset-backed plan invested by PICC This init iat ive is a signif icant step in the As a financial institution the Company’s energy consumption is primarily derived

Capital. The funds raised were used to support Company’s efforts to expand its sustainable from its daily office operations including electricity natural gas and gasoline.high-quality existing leasing assets. Through this financing channels strengthening the role of The Company’s water usage comes from municipal water supplies with stable

asset securitization the Company introduced financial resources in supporting the low-carbon access conditions and no significant water source risks. Solid waste mainly

long-term “patient capital” from the insurance transition and the upgrading of advanced comprises general non-hazardous materials such as office waste and kitchen

sector effectively revitalizing equipment leasing manufacturing. waste along with a small amount of discarded electronic products all of which

receivables in areas such as green energy and are disposed of in accordance with regulations.In 2025 the Company formulated the Interim Measures for Environmental

Protection Management strengthening the institutional framework for its

environmental protection management.

04 The Company’s green and Indicators and targets low-carbon action system:

use

water

The Company actively The Company has The Company coordinates

positions itself across established specific the planning of its green use have

multiple green sectors to quantitative targets and financing structure to electricity Green living Five major meals

support the high-quality conducts regular reviews ensure sufficient support officescenarios

development of green and statistics to ensure that for the development of its

finance. its green leasing business green leasing business.progresses as planned.use paper TravelAbout JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

110 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 111

Dimension Main actions and outcomes

Main actions and outcomes of green operations:

· A kitchen waste vacuum treatment system has been introduced in the canteen achieving 100%

resource utilization of food waste and reducing landfill waste by over 90 metric tons annually.Dimension Main actions and outcomes · Resource management in the canteen has been improved from the perspectives of “reductionsubstitution and recycling” reducing end-of-life disposal pressure and improving resource recovery

Meal

· Water-saving equipment such as sensor-activated faucets and water-efficient fixtures have efficiency.been installed in office areas improving overall water efficiency by approximately 30%.· Water conservation initiatives are continuously promoted in daily office settings embedding · The closed-loop online processing for application submission approval and contract signing

water-saving requirements into employee habits and management reminders. along with a 30% increase in remote collaboration capabilities through the OA system has

Water use · The installation of direct drinking water dispensers has reduced bottled water consumption by reduced physical travel and business trips resulting in an annual reduction of over 200 metric

over 600000 bottles per year. tons of carbon emissions.· A 4K ultra-high-definition remote conferencing system has replaced approximately 30% of in-

person meetings reducing business travel-related carbon emissions by about 150 metric tons

annually.Travel

· With a comprehensive approach of “photovoltaics + energy storage + intelligent control” the · The Company has launched energy-saving and carbon-reduction initiatives related to travel

Company introduced smart energy use and energy-saving retrofits in office scenarios forming and uses a points-based reward system linked to step counts to incentivize green commuting

a replicable integrated management model. promoting low-carbon travel as a regular practice.· A 10 kW distributed photovoltaic power station on the office building’s rooftop generates

approximately 9800 kWh of electricity annually reducing carbon dioxide emissions by about

5 metric tons. The accompanying energy storage system is used for peak shaving and energy

use optimization.· Lighting fixtures with intelligent sensor control and efficient energy-saving have been installed

Power

consumption in meeting rooms saving about 2100 kWh of electricity per year and reducing emissions by Case

study Kitchen waste treatment system driving a low-carbon circular transitionabout 1 metric ton.· Energy consumption of the elevator system has been reduced by approximately 40% through

The Company has introduced a vacuum collection and treatment system for kitchen waste in its

elevator group control optimization.canteen enabling the resource utilization of food waste. On average this system converts waste

· The centralized cooling system uses high-efficiency centrifugal chillers reducing carbon

into approximately 18 metric tons of fertilizer annually. Additionally hazardous waste is entrusted to

emissions by about 800 metric tons annually compared to conventional equipment.qualified environmental protection companies for recycling and is centrally processed by the sub-

district where the Company is located.By closing the loop for resource recovery from waste the Company reduces its environmental

footprint fulfills its responsibility for green operations and promotes the transition of its logistics

· By digitizing business and management processes and utilizing online tools such as the management toward a low-carbon circular model.“LeLeasing” series of apps the Company has closed the loop online for key stages such as

application submission approval and contract signing. This reduces paper consumption by 5

approximately 34 metric tons annually equivalent to saving about 500 mature trees.· The intelligent OA system covers approximately 95% of internal processes enabling various 1 2 1 GCS-01 kitchen garbage GCS-02 integrated garbage disposal inlet 2 storage and dehydration unit

66

internal approvals workflows and archiving to be handled online reducing printing and

physical document transfer. 3 GCS-03 vacuum pump

3 system 4 GCS-04 central control systemPaper use · The shift to electronic meeting materials has resulted in 100% of core meeting materials for 5 7

the Board of Directors and Party Committee being digital reducing paper usage at the source. 1

5 DN75 stainless steel piping 6 Exhaust pipe

· The utilization rate of used paper has been increased with double-sided printing reaching 4

90%. Cloud-based print management has reduced waste from misprints and duplicate printing

Ethernet communication

achieving “controllable traceable and quantifiable” paper use management. Vacuum garbage collection system 7 cable

(GCS system)About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

112 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 113

Society

empowering employee growth and creating

shared value

SDGs addressed in this chapter

JFL always adheres to the principle that employees

and the Company grow together and share in the

rewards of development fostering a community of

shared value.JFL actively participates in charitable and public

welfare activities proactively gives back to society and

continuously demonstrates the positive impact that

finance can have.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

114 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 115

1 Joint progress and care for employees

02 Employee rights and benefits

01 Employee recruitment and hiring Category Measures and outcomes

· The Company provides supplementary commercial

medical insurance including global emergency

JFL follows the principles of legality fairness equality mutual consent consultation and good faith and assistance services along with related claims training.effectively safeguards the lawful rights and interests of employees. This creates a closed loop of health protection:

The Company is committed to diversity in recruitment and firmly opposes all forms of employment securing an insurance service provider upgrading Employee physical

discrimination. It ensures that female employees ethnic minority employees and others enjoy equal coverage and empowering employees through and mental health

opportunities rights and interests. During recruitment the Company verifies identity information in claims training.protection

accordance with laws and regulations and strictly prohibits child labor. In workforce management it · The Company organizes annual health check-ups for all employees providesregularly monitors and reviews employee workloads to prevent forced labor maintaining a fair and AED equipment and a standardized medical room and offers “Four-Leaf Clovercompliant work environment. In 2025 the Company had no incidents of employee discrimination child – Psychological Stress Relief” training.labor or forced labor. · The Company has developed an employee psychological health EAP program

and held two stress management sessions during the year.JFL’s employee composition in 2025 · Through the “Company-Wide Exercise Initiative” the Company partners

Employee sports

with professional sports and cultural venues to reserve time each week for

and cultural

employee use.activities

1.8% · It also organizes annual sporting events and occasional hiking activities etc.

31.7% 32.0% · The Company revised the Working Rules of the Congress of Workers and

Staff to clarify the congress scope and decision-making procedures ensuring

Employee

employees’ rights to be informed participate express their views and provide

communication and

68.3% oversight.66.2% participation · In 2025 the Company held three congresses of workers and staff to discuss

major matters affecting employee interests.· The Company provides a dedicated rest room for

Female employees Under 30 pregnant employees and a mother-and-baby room.Care for female

30–50 · It also organizes activities such as International employees

Women’s Day celebrations to enhance the well-being

Male employees Over 50 of female employees.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

116 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 117

Case Case

study A vibrant club ecosystem: creating a haven for employees study Enriching lives through culture and sports: diverse activities for a dynamic workplace

yoganature club dance “Hand in Hand Together in Women’s Day event:Youth” social event “Her Power for the Future”

Top

badminton basketball

Ten clubs

table tennis

football

chorus clubs

fitness

orchestra

These clubs regularly host sports and cultural competitions and cultural exchanges with distinct themes and diverse formats.By cultivating a lively internal community the Company not only strengthens team cohesion and a sense of belonging but

also inspires a positive and energetic spirit across the workforce.The 11th “Rainbow Run”: The finals of the 6th “JFL Lecture“Run For Better ·Unstoppable Hall” concluded successfullyMomentum Brilliance Ahead”About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

118 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 119

2 Talent cultivation and joint growth

Employee training system

01 Employee training Training category Measures

The Company continues strengthening its “1+2+3” talent development system: · Seven specialized courses were redesigned and paired with mentoring

helping new hires quickly integrate into the company while boosting

industry understanding and operational skills.· This training program deepened the mentor-apprentice system identifying

role models for knowledge transfer to help young employees grow more

one talent two implementation levels three target groups effectively.development map (company-level and (middle and senior “New voyage”

department-level) management account new employee training

managers and new hires)

In 2025 the Company delivered 90 company-wide training courses 392 departmental training sessions and 86 online

courses achieving 100% employee training coverage.· This training program focused on improvement of business development

“Far voyage” risk management and industry specialization. Specialized training was

account manager training provided to team leaders and those handling large projects to enhance

their professional skills.“Navigation” · A new training cycle was launched inviting university professors and

middle and senior industry experts to address topics such as economic trends and leadership

enhancement helping the new cohort of managers execute strategy and

management training

foster innovation.“Cruise” · In 2025 the newly launched “Cruise Program” strengthened department-

cross-department courses level training and enriched the Company’s “1+2+3” training and

development system.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

120 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 121

Training initiatives were further deepened and innovated in 2025 02 Employee development

Training dimension Measures

The Company links internal performance appraisal results to performance-based pay job adjustments competitive

· Aligned with frontline business needs the Company launched targeted recruitment and mutual choice mechanism and recognition programs. This helps the Company break down strategic goals

training series on topics such as “Business Quotation and Negotiation” into actionable objectives and drive performance fostering shared growth for both the Company and its employees.“Strategic Vendor and Dealer Development and Maintenance” and JFL’s initiatives and outcomes in promoting employee development

“Business Risk Prevention and Control.” It adopted practical teaching

methods like simulation drilling roundtables and interview-style sessions Management mechanisms Initiatives and outcomes

to enhance effectiveness.In-depth specialized Guided by job requirements the

business capability Company implements an internal · By optimizing resource allocation including

training competitive recruitment and mutual creating new departments and performing

Competitive choice mechanism. This is supported by competitive recruitment the Company has

recruitment and probationary assessments and follow- strengthened specialized review capabilities in

mutual choice up evaluations for middle managers. its retail business.mechanism By deciding promotion and demotion · In early 2026 the Company completed the

based on merit and placing the best 11th round of competitive recruitment and

candidates in the r ight roles the mutual choice resulting in position changes

· The Company worked closely with business departments to address Company strengthens key positions and for 13 middle managers.specific challenges and needs such as business complexities team improves organizational efficiency.integration performance pressure and management improvement. This

led to customized training programs on topics like credit review and risk · The Company organized the signing of the The Company uses a sys tem o f

management for small and medium-sized enterprises as well as effective 2025 Annual Assessment Target Responsibility q u a r t e r l y a n d a n n u a l re v i e w s

communication and team management. Letter and completed performance appraisals

Customized Performance centered on annual target setting and for all employees.training programs appraisal responsibility agreements. Performance · The Company advanced preparations for

mechanism feedback performance discussions and

the annual appraisal tracked the appraisal

personnel changes are clearly defined

results of regional teams and individuals and

as part of the process.conducted annual simulations.· For the year the Company explicitly aligned

Performance results are l inked to talent pipeline development with position-and-

Dynamic

posi t ion and sa lary adjustments remuneration adjustments and strengthened

remuneration

· In 2025 the newly launched “Cruise Program” strengthened department- with dynamic annual position-and- the rules governing such adjustments.adjustment

level training and enriched the Company’s “1+2+3” training and remuneration adjustments carried out · The Company “successfully completed the mechanismdevelopment system. annually to continuously optimize the annual dynamic adjustment of employees’team structure. positions and remunerations” providing timely

incentives for high-performing employees.Cross-departmental

“Cruise Program” · The Company o rgan i zed the “2024Performance results serve as a keyRecognition Recognition and Commendation Program”

criterion for awards and recognition

and award and provided support for the annual summary

linked to adjustments of performance-

mechanism and commendation conference among other

based pay position and remuneration.activities.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

122 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 123

· Tibet Autonomous In 2025 the Company provided consumption-based

Region: support by purchasing local specialty products such as

3 Boundless love and warmth for the society glacier water taking practical action to support economic

development in Tibet.Consumption-

· Zigui County Hubei In 2025 despite a bumper harvest of navel oranges and based support

citrus in the Three Gorges Reservoir area farmers faced

JFL upholds the philosophy of using finance for good and giving back to society and Province: difficulties in sales. The Company invested RMB 130000 to

continuously participate in and support various public welfare initiatives. Over the years the purchase navel oranges from Zigui directly helping farmers

Company has integrated social responsibility into its daily operations and organizational actions increase their income and supporting rural industrial

through rural revitalization volunteer activities and charitable giving conveying warmth and revitalization.responding to social needs with pragmatic action.· Chahar Right Back In 2025 the Company invested RMB 410000 in assistance

01 Banner Inner Mongolia Rural revitalization funds to help the local government of Chahar Right Back Autonomous Region: Banner Inner Mongolia upgrade its office automation

Targeted

systems equip petit ion departments with security

support

inspection devices improve basic office conditions and

Through its core financial business the Company supports rural revitalization and development in replace convenience service facilities in the government

remote areas via targeted initiatives including industrial support consumption-based support and service hall.targeted support.Case A dedicated bus line to the tea-growing villages:

study improving public mobility and supporting revitalization

Dimension Main actions and outcomes

Shihe District in Xinyang City is the core production area for Xinyang Maojian tea. The region is long

and narrow stretching far from east to west and key tea-producing towns like Dongjiahe Tanjiahe and

The Company has built an agricultural machinery leasing Shihegang are located far from the city center. For the most distant tea farmers traveling to the city issystem that covers the full process of “plowing sowing· Serving agriculture over 100 kilometers. For years the difficulty of getting to the city and the high cost of transporting tea management and harvesting” and has extended it to

rural areas and farmers: have constrained the tea industry and the incomes of tea farmers.the entire animal husbandry chain providing customized To address this the local public transportation company launched two new circular bus routes around

financing support for feed production breeding and Nanwan Lake. These routes not only connect the core tea-growing areas around the lake with tourist

processing. attractions providing a convenient way for visitors to explore the region but also serve as the main

transportation link for tea farmers in the mountains to reach the city.The Company provided dedicated funding for these two bus routes to purchase 40 Zhongtong electric

Industrial The Company offers customized financial services for buses. The routes offer affordable fares and serve as “poverty-alleviation routes reaching every village.”

support · Supporting rural equipment upgrades at primary healthcare facilities Tea farmers can now take a bus from their doorstep to the city as early as 6:00 a.m. to sell their tea.infrastructure construction: rural road network improvements dedicated transport This has fully resolved the last-mile transportation issue for both travel and tea transport ensuring

routes and high-standard farmland irrigation and water efficient and convenient access for tea farmers and providing transportation infrastructure to support

conservancy projects. integrated tea-tourism development.Through its “HiLeasing” online platform and “LeLeasing”

· Simplifying business series of apps the Company provides end-to-end services

processes: including online applications credit assessment and

e-signing simplifying procedures for rural clients. For

details see the “Inclusive Finance” section of this report.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

124 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 125

03 Public science outreach

Case

study Yellow school buses safeguarding the journey to school

In 2025 the Company launched a public science outreach initiative called “Z Live House.” Focusing on the Company’s core

In the past two years Zaozhuang City has implemented a policy of consolidating business areas it produces videos explaining the science behind leased assets. Through engaging short videos the initiative

rural schools closing village-level primary schools and centralizing education makes complex topics such as cutting-edge technology healthy living and the wonders of nature accessible to the public

in township schools. This aims to address challenges faced by small scattered helping to integrate science outreach into daily life and improve scientific literacy of the public.and under-resourced rural schools. To address the resulting transportation

needs local education and traffic authorities coordinated efforts with local Dimension Form Specific content

transport and school bus companies to purchase dedicated yellow school

buses to transport students to township central schools. Upon learning of The Company continuously creates content on math physics and

the situation the Company promptly reached out and provided nearly RMB chemistry concepts related to leased assets. It uses IP mascots/virtual

15 million in funding specifically for the purchase of 48 yellow school buses characters to interact with content creators encouraging more intuitive Produced by JFL

effectively ensuring safe and convenient transportation for rural students. formats such as animated breakdowns visual comparisons of scientific Online principles and short scenario-based skits to enhance reach and

science engagement.outreach

videos The Company collaborates with universities and enterprises to create

content based on leased equipment. Drawing inspiration from formats

02 Charitable giving Co-produced with like “Study with the Youth” it explores knowledge from the perspective of

university youth

young people visiting enterprises. Partnerships with departments such

organizations and

The Company fulfills its social responsibility by integrating philanthropy into its core values. Through initiatives such as the as mechanical engineering electronics and biomedical engineering partner enterprises

“One-day Charitable Donation” “Dream Houses” and “Heartfelt New Wishes” it focuses on supporting vulnerable groups and emphasize practical applications distinguishing this content from purely

education. These small acts of kindness come together to demonstrate the compassion and responsibility of JSL as a state- theoretical science outreach.owned enterprise. Organized by industry related to leased assets or by department

employees and their children are invited to join the workshop outreach

team. Internal technical experts review and guide the content. Regular

JFL sciencethemes are developed experimental equipment is provided and “youngworkshopCase One-day Charitable Donation: Upholding the spirit of enduring scientists” prepare and deliver lessons explaining the science behind study

benefactions and boundless love leased assets. This serves as a highlight for employee-family interaction

and corporate culture building creating more interactive science lessons.On-site

Adhering to the concept that “enduring benefactions and boundless love” science In cooperation with university volunteer teaching teams and platforms like

the Company has continuously held One-day Charitable Donation events for classrooms “Teach For China” the Company provides simplified science experiment Science classrooms

10 consecutive years. In 2025 nearly 500 employees participated and raised kits and attracts university students from science outreach clubs to join for primary and

nearly RMB 50000 in total. All funds raised were used to support disadvantaged the team as volunteers or instructors. Future plans include collaborating secondary schools

individuals in Jiangsu Province with a focus on targeted assistance for families with with rural primary and secondary schools around Nanjing to deliver the

seriously ill members receiving subsistence allowances orphaned and disabled “first lesson of the new school year.”

children elderly individuals living alone and people with severe disabilities In cooperation with universities in Nanjing the Company selects university

ensuring that the resources reached those most in need. students and rural primary and secondary school students to jointly

Science camp participate in campus and corporate visits. Activities include competitions

Voluntary blood donation public welfare activity such as “making a water rocket” and “finding a suitable leased asset oncampus.”

In August 2025 the Company’s CCYL Committee together with the Jiangsu

Province Blood Center organized the voluntary blood donation public welfareactivity under the theme “Bringing JFL’s Positive Energy Continuing theBrilliance of Four Decades with Passion.” The event attracted 123 employees

who donated over 30000 milliliters of blood.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

126 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 127

04 Volunteer teams

Case

study

The Company continues building its “Sunflower” volunteer brand refreshing its activity framework and expanding

partnerships to attract young people to its volunteer initiatives.Additionally volunteer efforts are thriving internally with “non-governmental” teams and individual volunteers emerging

spontaneously collectively creating a culture of benevolence.Case “Star Guardian Plan”: Bringing light to a lonely planet

study — A chronicle of the Information Technology Department’s “Star” volunteer team caring for children

with autism

The Information Technology Department spontaneously formed an 18-member “Star” volunteer team An ecologist in the field guardian of nature’s harmony — Lu Jun

and launched the “Star Guardian Plan.” For two consecutive years the team in partnership with the

Qixia District Disabled Persons’ Federation and the Primary School Affiliated to Nanjing University of Lu Jun serves as a key staff member at JFL yet he is also an

Posts and Telecommunications has organized activities to support children with autism. The team ecological research volunteer who combines scientific rigor with

carefully planned the activities and convey warmth and care through practical actions. a deep appreciation for humanity. His work has taken him across

mountains and rivers from water quality testing on the Yangtze

· Protecting childhood: · Long-term support: River to bird and biodiversity surveys in the Yangtze River Delta

Selecting educational toys and therapeutic Creating dynamic support records and and further afield to bird surveys in Inner Mongolia Tibet and

picture books to enrich the children’s inner regularly following up to track progress. Yunnan. Every step of the way he has been tracking the pulse of

world; the natural world.As a birdwatching enthusiast he does more than capture the

· Building connections: · From one-time activities to ongoing support beauty of wildlife through his lens—he also turns his research

Spending time with the children with autism these IT professionals use their dedication to data into a force for public education. His efforts earned him

and guiding them to open up through fun help these unique children thrive. the “Ecological Civilization Contribution Award” at the Lishui Bird

hands-on activities and participate in social Competition.interaction; He co-authored A Field Guide to Birds on the Campus of the University of Science and Technology of

China building a bird identification system that reaches from the campus to the Dabie Mountains using

tens of thousands of field-work images. In doing so he brings specialized knowledge a wider audience.He is a frequent visitor to primary and secondary schools where he brings research stories to life in

the classroom. Through engaging lessons he inspires young people to love nature and protect the

environment putting into practice the vision of harmonious coexistence between humanity and the

natural world.About JFL ESG governance and Governance Development Environment Society

strategy strengthening the governance foundation Putting finance at the service of the people advancing green development and empowering employee growth and creating

128 ESG and ensuring steady long-term progress and improving service quality and efficiency building a beautiful China shared value 129

Dimension Main actions and outcomes

4 Standardized procurement and collaborative development · A “List of Qualified Suppliers” by category is established. Suppliers are in principle sourced through an open process and the Company emphasizes making full use of the

e-procurement platform to share resources.Establishment of

· The access stage requires market research and analysis as well as screening criteria

a supplier access

The Company’s suppliers mainly fall into three categories: materials services and engineering and comprehensive capability assessment standards.system

with a clear distribution across product categories. Thanks to the high degree of marketization · The procurement demand department is responsible for reviewing supplierand ample supply in these niche segments the Company has strong flexibility in selecting qualifications for specific projects and ensures that “suppliers lacking the requiredsuppliers and negotiating terms. At present the supply chain ecosystem is highly resilient with administrative permits and qualifications do not pass the qualification review.”

no major single-source dependency risk ensuring continuous and stable operations.· The procurement demand department should manage suppliers during contract

execution tracking supplier contract performance to ensure that contract goals are met.Tracking and · If faults incidents or suspected violations—whether legal regulatory or contractual—

supervision during arise during procurement the rules allow the Company to “suspend award eligibility”

Governance framework for procurement management performance while an investigation is carried out. Once the investigation concludes the suspension

is either lifted or finalized based on the findings. This provides temporary control over

process risks.Hierarchy Organization / Responsibilities

Management

Procurement Management Committee · The procurement demand department should evaluate supplier performance and

Review

completes a Supplier Performance Score Sheet.and tiered

· Implementing higher-level procurement policy requirements; reviewing · Supplier grades are graded A/B/C/D based on the comprehensive evaluation score management

and approving the Company’s procurement management rules. which serves as an important reference for future procurement decisions.· Coordinating procurement management work; reviewing and approving

implementation plans and award results for major procurement projects. In 2025 the Company revised the Procurement Management Measures. For procurement

categories that have a significant impact on social responsibility or the ecological

environment a letter of commitment to fulfilling social responsibility and practicing

Oversight layer ESG management of ESG principles is now required as part of the supplier access materials. When defining

Discipline Inspection and Supervision / Audit Supervision Departments suppliers: procurement requirements the Company requires suppliers to actively respond to ESG

principles and implement requirements on labor standards environmental protection

occupational health and safety and business ethics thereby strengthening ESG risk

· Conducting supervision before during and after procurement activities and

management across the supply chain.carrying out supervision inspections and disciplinary accountability in line with their

responsibilities.Relevant incorruptibility clauses are clearly set out in tender documents or supplier

Incorruptibility contracts and both suppliers and procurement personnel are required to strictly comply

procurement

Execution layer with them. The Company has established supervision and management departments to

Procurement Management Office management: oversee and inspect procurement activities promptly correct violations and refer staff

suspected of illegal or disciplinary conduct to the discipline inspection and supervision

department for handling.· Managing inspecting guiding and evaluating procurement activities across departments.Preparing procurement implementation plans; advancing standardization of procurement The Company strictly manages supplier payment terms fulfills payment obligations in

documents and demand specifications; and organizing procurement training. Equal treatment of accordance with the law and protects the lawful rights and interests of SME suppliers. As of

small and medium-

sized enterprises: 2025 the balance of accounts payable including bills payable did not reach RMB 30 billion

or 50% of total assets and there were no overdue payments to suppliers.130 ESG 131

Special topic

JFL’s corporate culture:

Three core values and six mindsets

Three core values

Simplicity Efficiency Positivity

Six mindsets

Tech-forward culture: User-centric mindset Open mindset Growth mindset

Engineer culture: Underlying-principles mindset Systematic mindset Lean mindset132 ESG 133

1 Three core values

JFL’s corporate culture:

Three core values and six mindsets

01 Simplicity

JFL keep our organization simple by

User-centric design enabling us to respond to market Clarity

mindset changes with agility.Direct communication;

Underlying- focus on the issue at

Simplicity principles hand.mindset

Simplicity

Agility Decisiveness

Open

mindset

Adapt to the market; Clear responsibilities

Three core values iterate rapidly. and authority; decisions

and six mindsets Systematic made with resolve.mindset

Efficiency Positivity “Simplicity” is the foundation of sustainable development. It minimizes internal management costs and

builds an agile market-driven organization. Deeply embedded in our culture it means:

structurally flat hierarchies and short decision chains for fast market

response;

Growth

mindset Lean

mindset

straightforward relationships and no internal friction—

culturally employees can focus entirely on serving clients without

distraction.134 ESG 135

02 Efficiency 03 Positivity

Whi le pursu ing h igh -per fo rmance Through striving and growth JFL demonstrate

business growth JFL remain pragmatic responsibility; through mutual success we

and committed to long-term development. Effectiveness build a thriving ecosystem.Put clients first and pursue Responsibility

excellence through

professionalization and Dedicated to our

dedication work; uphold ethical

standards.Progress Benevolence

Efficiency

Boldly enterprising; Act with warmth and

pursue knowledge fairness; give back to

broadly and deeply. Positivity society.Outcomes

Deliver on our missions

through practical

Efficiency execution

Innovating prudently to

create shared value “Positivity” is the core philosophy that drives the collective growth of the Company and it defines

the environment and atmosphere that every employee at JFL should help cultivate. Grounded in

optimism and a drive to excel and measured by our ability to create value we are committed to

continuous growth that fuels the progress of both individuals and the organization.For employees individually For the Company

“Efficiency” reflects our core competitiveness. Guided by strategic goals we this means practicing self-discipline it means sharing both the tangible and

seek optimal results with minimal input balancing short-term performance upholding strong ethical standards and intangible rewards of corporate growth

with long-term healthy development. We integrate resources drive pragmatic maintaining the intrinsic motivation and with our employees while also creating

implementation create value for clients and maximize company returns— drive to pursue continuous development value for the broader social ecosystem.demanding both efficient processes and high-quality outcomes. and progress.136 ESG 137

2 Six mindsets

Looking ahead and guided by our integrated strategy JFL will learn from

tech-forward and engineer cultures. We will put into practice our six

mindsets to build an integrated “technology + industry + finance” culture.Underlying-principles mindset:

Not just fixing problems but understanding the underlying

User-centric mindset: principles and root causes.Not just meeting client needs but uncovering them and

creating new value.Tech-forward SIX Engineer

Open mindset: Systematic mindset: culture Mindsets culture

Not just protecting our own turf but staying flexible and embracing Not just deepening our professional expertise but seeing

trial and error. the big picture and ensuring end-to-end accountability.Growth mindset: Lean mindset:

Not just executing tasks but bringing craftsmanship to our work

Not just iterating dynamically but stepping out of our comfort zones and striving for excellence.to take on challenges.138 ESG 139

ESG data sheets and notes Item Unit 2023 2024 2025

Gasoline consumption for

Liter 22611.63 22787.92 18438.09

Economic performance data sheet service vehicles

Natural gas consumption cubic meters 6656.65 7437.67 7677.69

Item Unit 2023 2024 2025

Self-generated renewable

MWh 91.25 91.25 91.25

Total tax payment RMB 100 million 10.52 12.00 12.45 energy consumption

Total assets RMB 100 million 1199.20 1372.55 1608.94 Indirect energy consumption tce 409.34 457.37 472.13

Purchased electricity

Revenue from main business RMB 100 million 75.61 81.85 89.99 MWh 3328.33 3718.83 3838.85 consumption

Net profit attributable to

listedcompany shareholders RMB 100 million 26.60 29.43 32.41 Clean energy consumption

3 tce 20.08 21.11 21.43

Social contribution value per share1 RMB 1.59 1.40 1.31 Proportion of clean energy % 4.42 4.20 4.17

consumption

Note1 Social contribution value per share = basic earnings per share + (taxes paid to the state during the year by the Company + remunerations paid to Proportion of natural gas

employees + interest paid to banks and other creditors + charitable donations - other social costs caused by environmental pollution and other factors) / % 44.10 46.85 47.64consumption

total number of shares issued by the Company

Proportion of self-generated

%55.9053.1552.36

renewable energy consumption

Environmental management data sheet1

Water consumption Ton 22932 24738 23440

Item Unit 2023 2024 2025

Water consumption per capita t/person 43.43 43.40 35.57

Number of administrative penalties

imposed by departments such as Waste generation4 Ton 19.05 19.95 15.52

the ecological and environmental

authorities due to environmental / 0 0 0

incidents during the reporting Waste generation per capita t/person 0.04 0.04 0.02

period

Hazardous waste generation Ton 0.16 0.15 0.12

Amount of administrative penalties

imposed by departments such as Non-hazardous waste

the ecological and environmental Ton 18.89 19.80 15.40generation

authorities due to environmental RMB 10000 0 0 0

incidents during the reporting

period

Note1 In 2025 based on the principle of reporting accuracy the Company adjusted its statistical caliber and calculation methodologies. Consequently certain

environmental data for 2024 and 2023 have been restated retrospectively.Comprehensive energy

tce 454.04 503.3 513.64 Note2 The Company discloses its total energy consumption in tonnes of standard coal equivalent (tce). The unit conversion factors are referenced to the China

consumption2 Energy Statistical Yearbook and GB/T 2589-2020 General Rules for Calculation of the Comprehensive Energy Consumption. The Company’s comprehensive

energy consumption includes direct energy consumption such as gasoline for service vehicles natural gas and self-generated photovoltaic power as

well as indirect energy consumption such as purchased electricity. Self-generated renewable energy consumption refers to the power generated by the

Total energy consumption per capita tce/person 0.86 0.88 0.78 Company’s photovoltaic facilities.Note3 The Company’s clean energy mainly comprises natural gas and self-generated photovoltaic power.

4

Direct energy consumption tce 44.70 45.93 41.51 Note The Company’s hazardous waste mainly comprises discarded electronic products while non-hazardous waste mainly comprises office waste food waste and construction waste. In 2023 and 2024 due to renovation work on the Company’s office building a relatively large amount of waste such as

construction waste was generated. In 2025 waste generation declined compared with the previous two years.140 ESG 141

Item Unit 2023 2024 2025

Greenhouse gas emissions data sheet

Doctoral degree Person 3 3 3

Item Unit 2023 2024 2025 Master’s degree Person 323 363 405

By educational

Scope 1 greenhouse gas background

emissions1 tCO2e 64.57 66.66 57.55 Bachelor’s degree Person 197 203 248

Scope 2 greenhouse gas

emissions2 tCO2e 1766.01 1973.21 2036.89

Junior college degree

or below Person 5 1 3

Scope 3 greenhouse gas

emissions3 tCO2e —— 820.50 899.18 General employees Person 492 520 609

By employee

Total greenhouse gas category Total number

emissions tCO e 1830.58 2039.87 2094.44 of managerial Person 36 50 502

(Scope 1 + Scope 2) employees

Number of male managerial employees Person 25 36 36

Greenhouse gas emissions

per capita tCO2e/person 3.47 3.58 3.18

(Scope 1 + Scope 2) Number of female managerial employees Person 11 14 14

Note1 Scope 1 greenhouse gas emissions include direct greenhouse gas emissions arising from natural gas gasoline for service vehicles and diesel

consumption. For 2025 the emission factors for gasoline and diesel used by service vehicles are referenced to the Guidelines for Compiling Provincial Employee turnover rate1 % 5 7 3

Greenhouse Gas Inventories (For Trial Implementation) (2011) GB 17930-2016 Gasoline for Motor Vehicles the Guidelines for Accounting and Reporting

Greenhouse Gas Emissions of Land Transportation Enterprises (For Trial Implementation) and the China Energy Statistical Yearbook (2023). The emission

factor for natural gas is referenced to the Ministry of Ecology and Environment’s Guidelines for Accounting and Reporting Greenhouse Gas Emissions Male % 6 6 3

of Enterprises—Power Generation Facilities (2022) and the China Energy Statistical Yearbook (2023). The emission factor for stationary-source diesel

is referenced to the Guidelines for Compiling Provincial Greenhouse Gas Inventories (For Trial Implementation) (2011) and the China Energy Statistical By gender

Yearbook (2023). Female % 4 9 3

Note2 Scope 2 greenhouse gas emissions mainly are indirect greenhouse gas emissions from purchased electricity. For 2025 the carbon emission factor for

purchased electricity is referenced to the national average power carbon dioxide emission factor of 0.5306 tCO2/MWh published in the Announcement on

the Release of 2023 Power Carbon Dioxide Emission Factors by the Ministry of Ecology and Environment and the National Bureau of Statistics. Number of new hires Person 110 84 113

Note3 Scope 3 greenhouse gas emissions mainly are greenhouse gas emissions generated by employee business travel. The emission factors are based on the

direct emission factor data in the Chinese Environmentally Extended Input-Output (CEEIO) database (2020) and adjusted according to China’s 2024 PPI. Social insurance coverage rate % 100 100 100

Labor contract signing rate % 100 100 100

Data sheet of employee employment and employees’ rights Coverage rate of employee health

checkup % 100 100 100and interests

Coverage rate of occupational injury

insurance % 100 100 100

Item Unit 2023 2024 2025 Amount invested in employee

occupational injury insurance RMB 10000 39.97 49.67 60.62

Total number of employees Person 528 570 659

Coverage rate of employee occupational

injury insurance % 100 100 100

Male Person 337 375 450

By gender Number of workplace injury incidents / 2 0 0

Female Person 191 195 209

Number of workdays lost due to workplace

injuries Day 27 0 0

>50 Person 12 12 12

Number of employee deaths due to work-

related causes Person 0 0 0

By age group 30-50 Person 320 371 436

<30 Person 196 187 211 Note1 The statistics for employee turnover rate do not include employees who have reached statutory retirement age. Employee turnover rate = Number of

employees leaving / Total number of employees × 100%.142 ESG 143

Employee training data sheet Innovation-driven data sheet

Item Unit 2023 2024 2025 Item Unit 2023 2024 2025

Employee training expenditure1 RMB 10000 99.91 103.57 81.56 Technological investment amount1 RMB 10000 5242.51 6194.27 7841.35

Number of training sessions / 365 387 457 Technological investment as

a proportion of main business % 0.69 0.76 0.87

Number of employees trained Person 528 570 659 revenue

Employee training coverage rate % 100 100 100 Number of technological personnel Person 32 37 42

Note1 In 2025 the Company carried out work to improve training quality and efficiency. By optimizing training frequency deepening training content and increasing Proportion of technological

online training formats it continued to improve training effectiveness; therefore employee training expenditure decreased compared with 2024. personnel % 6.06 6.49 6.37

Number of invention patent

applications during the reporting / 15 6 11

Charity and public welfare data sheet period

Number of invention patents

Item Unit 2023 2024 2025 granted during the reporting / 1 7 3

period

Charitable donation RMB 10000 99.03 100.79 84.15 Number of valid invention patents

by the end of the reporting period / 3 10 13

Amount of voluntary blood donation CC 28350 29550 30050

Number of invention patents

applied in the main business / 3 10 13

Note1 In 2025 the Company accelerated its digital transformation and continued strengthening R&D in information technology to support business innovation

and operational efficiency improvement; accordingly the company’s information technology investment increased.Data sheet of Product and Service Safety & Quality

Item Unit 2023 2024 2025 Corporate governance data sheet

Total number of complaints received

regarding products and services1 Cases 26 70 158 Item Unit 2023 2024 2025

Complaint handling rate for products Number of members of the Board

and services % 100 100 100 of Directors Person 11 11 12

Monetary value of damages involving

major liability incidents related to RMB 0 0 0 Including: foreign directors Person 1 1 1

product and service safety and quality

Note1 Starting from 2024 the number of micro and small business clients served by the Company has increased significantly. Consequently the volume of business-

related inquiries and complaints has risen compared to 2023. Number of independent directors Person 4 4 4

Number of employee directors Person 0 0 1

Data sheet of data security and customer privacy protection

Number of held shareholders’

meetings / 3 3 3

Item Unit 2023 2024 2025 Number of meetings held by the

Board of Directors / 7 8 5

Number of data security incidents / 0 0 0

Number of meet ings held by

specialized committees of the / 16 15 14

Number of customer privacy leaks / 0 0 0 Board of Directors144 ESG 145

Business ethics data sheet Content index

Item Unit 2023 2024 2025 No. 14 Guidelines for Self-regulation and Governance of Listed

Companies on the Shanghai Stock Exchange - Sustainable

Number of anti-corruption

training sessions conducted / 105 125 134 Development Report (For Trial Implementation)

Corresponding topic of

Number of employees trained Topic of SSE Report sectionthe Company

in anti-commercial bribery and Person 528 570 659

anti-corruption Climate change response Environment: Climate change response

Climate change

Conduct green finance

Coverage rate of employees response ESG data tables and notes

trained in anti-commercial % 100 100 100 business

bribery and anti-corruption As a financial institution neither the Company nor its significant

Number of managerial holding subsidiaries are listed among enterprises legally required Pollutant

employees trained in anti- / to disclose environmental information. Nevertheless the Company

commercial bribery and anti- Person 36 50 50 emissions voluntarily implements pollution reduction measures. For details see

corruption “Green Operations” and “ESG Data Tables and Notes.”

Coverage rate of managerial

employees trained in anti- Green operation Environment: Green operations for energy conservation

commercial bribery and anti- % 100 100 100 Waste treatment

corruption ESG data sheets and notes

The Company’s operations are located in urban areas and have

Number of directors trained in

anti-commercial bribery and Person 11 11 12 Ecosystem and a limited direct impact on ecosystems or biodiversity. However

anti-corruption biodiversity / its green leasing initiatives—such as supporting forest protection

protection through helicopter direct leasing and investing in photovoltaic sand

Coverage rate of directors control projects—demonstrate its sustained attention to this topic.trained in anti-commercial % 100 100 100

bribery and anti-corruption Environmental

compliance Green operation Environment: Green operations for energy conservation

management

Green operation Environment: Green operations for energy conservation

Energy utilization

ESG data sheets and notes

Water resource Green operation Environment: Green operations for energy conservation

utilization ESG data sheets and notes

Circular

Green operation Environment: Green operations for energy conservation

economy

Development: Inclusive finance for benefiting small and micro

Rural Inclusive finance enterprises

revitalization

Social contribution Society: Boundless love and warmth for the society

Social

Social contribution Society: Boundless love and warmth for the society

contribution

Innovation-driven

Digital finance Development: Digital finance and technology enablement

development146 ESG 147

Corresponding topic of

Topic of SSE Report section GRI content index

the Company

As a company in the financial industry the Company is not involved

Technology in scientific research technology development or other activities in

/

ethics ethically sensitive fields such as life sciences or artificial intelligence. Jiangsu Financial Leasing Co. Ltd. has prepared this report in reference to the GRI Instructions for use

Therefore this topic is not applicable. Standards for the period from January 1 2025 to December 31 2025.Supply chain

Procurement management Society: Standardized procurement and collaborative development

security

GRI 1 used GRI 1: Foundation 2021

Equal treatment

of small and

Procurement management Society: Standardized procurement and collaborative development

medium-sized

enterprises

Safety and

quality of Consumer rights & interests

Development: Consumer protection and service optimization

products and protection

services GRI standard Disclosure Report section

Data security and About JFL

Data security and client

client privacy Development: Information security and privacy protection 2-1 Organizational details

privacy protection

protection About this report

Employee training and Entities included in the

Society: Joint progress and care for employees

development 2-2 organization’s sustainability About this report

Employees

Employee recruitment and reporting

Society: Talent cultivation and joint growth

rights & interests Reporting period reporting

2-3 About this report

Due diligence / frequency and contact personDue diligence and communication with stakeholders are important

Communication steps in the Company’s materiality assessment and are not assessed Activities value chain and other About JFL2-6with / as standalone topics. For details see “ESG governance and strategy: business relationships About this reportstakeholders Materiality analysis.”

2-7 Employees ESG data sheets and notes

Anti-commercial GRI 2: General

Governance: Ethical conduct for stable and sustainable development

bribery and anti- Business ethics Disclosures 2021 Governance structure and

About JFL

ESG data sheets and notes 2-9

corruption composition ESG governance and strategy

Anti-unfair Role of the highest governance

Business ethics Governance: Ethical conduct for stable and sustainable development 2-12 ESG governance and strategy

competition body in oversight

/ Services for real economy Development: Core business focus for serving the real economy Delegation of responsibility for 2-13 ESG governance and strategy

managing impacts

Governance: Governance as the foundation for steady and long-

/ Corporate governance term development Role of the highest governance 2-14 ESG governance and strategy

ESG data sheets and notes body in sustainability reporting

Governance: Compliance as the cornerstone and strict adherence to Governance: Governance as a priority for a solid

/ Compliance management

standards Mechanisms for seeking advice foundation

Comprehensive risk and raising concerns Governance: Ethical conduct for stable and

/ Governance: Strengthened risk control for stable operations

management sustainable development148 ESG 149

GRI standard Disclosure Report section GRI standard Disclosure Report section

Governance: Governance as a priority for a solid 302-3 Energy intensity ESG data sheets and notes

foundation

Governance: Service excellence and consumer Environment: Green operations for energy 302-4 Reduction of energy consumption

protection conservation

Environment: Green operations for energy

Compliance with laws and Development: Information security and privacy 303-3 Water withdrawal

2-27 conservation

regulations protection

303-5 Water consumption ESG data sheets and notes

Society: Joint progress and care for employees

Direct (Scope 1) greenhouse gas

305-1 ESG data sheets and notes

emissions

Society: Boundless love and warmth for the society

Energy indirect (Scope 2)

305-2 ESG data sheets and notes

greenhouse gas emissions

Approach to stakeholder

2-29 ESG governance and strategy: Materiality analysis

engagement Other indirect (Scope 3) 305-3 ESG data sheets and notes

greenhouse gas emissions

Process for determining material

3-1 ESG governance and strategy: Materiality analysis

topics Greenhouse gas emissions 305-4 ESG data sheets and notes

GRI 3: Material intensity

topics 2021 3-2 List of material topics ESG governance and strategy: Materiality analysis GRI 305: Green operations for energy saving and

Emissions 2016 306-3 Waste generated consumption reduction

3-3 Management of material topics ESG governance and strategy: Materiality analysis Negative environmental impacts

Standardized procurement and collaborative

Development: Inclusive finance for benefiting small 308-2 in the supply chain and actions development

taken

Infrastructure investments and and micro enterprises

GRI 203: Indirect 203-1 supporting services Benefits provided to full-time

economic Society: Boundless love and warmth for the society 401-2 employees (excluding temporary Society: Joint progress and care for employees

impacts 2016 or part-time employees)

Significant indirect economic

203-2 Society: Boundless love and warmth for the society

impacts 403-6 Promotion of worker health Society: Joint progress and care for employees

Communication and training

Governance: Ethical conduct for stable and Average hours of training per

205-2 on anti-corruption policies and 404-1 ESG data sheets and notes

GRI 205: Anti- sustainable development employee per yearprocedures

corruption 2016 Employee skills development

Confirmed incidents of corruption

205-3 ESG data sheets and notes

and actions taken GRI 404: Training

404-2 programs and transition Society: Talent cultivation and joint growth

and Education assistance programs

GRI 206: Anti- Legal actions for anti-competitive

Governance: Ethical conduct for stable and 2016

competitive 206-1 behavior anti-trust and monopoly Society: Joint progress and care for employees

sustainable development

behavior 2016 practices Ratios of basic salary and 405-2

remuneration of women to men

Energy consumption within the ESG data sheets and notes

302-1 ESG data sheets and notes

GRI 302: Energy organization

2016 Substantiated complaints Energy consumption outside the GRI 418:

302-2 ESG data sheets and notes concerning breaches of customer Development: Information security and privacy

organization Customer Privacy 418-1 privacy and losses of customer protection

2016

data150 ESG 151

United Nations Sustainable Development Goals (SDGs) content index

Sustainable Sustainable

development Description Response to SDGs Corresponding sections development Description Response to SDGs Corresponding sections

goal goal

· Providing various types of support and · Prohibiting all forms of employee

nd poverty in all its forms assistance · Society: Boundless love and warmth for Reduce inequality within and discrimination · Society: Joint progress and care for

everywhere. · Rural revitalization support the society

· Listening to and responding to employee

among countries. opinions and concerns employees

· Providing supplementary medical

Ensure healthy lives and insurance for employees Make cities and human · Supporting real economy development

promoting well-being for all at all · Caring for employees’ mental health and · Society: Joint progress and care for employees settlements inclusive safe

and ensure that elderly-care finance · Development: Core business focus for

offering psychological counseling lectures and inclusive finance are effectively serving the real economyages. resilient and sustainable. implemented

Ensure inclusive and equitable · Improving energy efficiency · Environment: Green operations for energy

quality education and promote · Implementing talent development Ensure sustainable consumption and resource-use efficiency conservation

programs to support employee growth and · Society: Talent cultivation and joint growth · Practicing green office operations and · Society: Standardized procurement and

lifelong learning opportunities for development and production patterns. promoting paperless workflows collaborative development

all. · Building

· Providing equal employment and

development opportunities for female · Active response to climate change

Achieve gender equality and employees · Society: Joint progress and care for Take urgent action to combat · Supporting the construction of new

· Environment: Climate change response

· Protecting the rights and interests of employees energy projects such as wind and solar

· Environment: Green finance for low-

empowering all women and girls. female employees climate change and its impacts. power carbon transition

· Caring for the physical and mental health

of female employees

Conserve and sustainably use · Supporting the delivery of green vessels Ensure availability and · Strengthening water resource · Environment: Green operations for energy the oceans seas and marine and protecting the marine ecosystemsustainable management of management and promoting water conservation · Cooperating in advancing blue syndicated

· Environment: Green finance for low-

water and sanitation for all. conservation resources for sustainable loan projects

carbon transition

development.Protect restore and promote · Implementing photovoltaic sand-control

sustainable use of terrestrial projects and supporting forest protection

Ensure access to affordable · Supporting the green transition of the · Environment: Green operations for energy ecosystems sustainably through helicopter direct leasing among reliable sustainable and modern energy mix by providing leasing services manage forests combat other measures · Environment: Green finance for low-

energy for all. for wind and solar power equipment

conservation desertification halt and reverse · Achieving green financing through the carbon transition

land degradation and prevent issuance of green bonds and cooperation

biodiversity loss. on green syndicated loan projects

· Upholding lawful employment practices Promote peaceful and inclusive · Governance: Governance as a priority for

Promote sustained inclusive and and protecting employee rights and societies for sustainable a solid foundation

interests · Improving corporate governance · Governance: Strengthened risk control for sustainable economic growth full · Society: Joint progress and care for development provide access to strengthening internal control enhancing stable operations· Actively implementing various employee · Governance: Compliance as the

and productive employment and care initiatives and providing multi- employees justice for all and build effective risk management capabilities and cornerstone and strict adherence to

decent work for all. dimensional benefits accountable and inclusive advancing integrity-building standards· Governance: Ethical conduct for stable

institutions at all levels. and sustainable development

· Strengthening investor relations

Build resilient infrastructure Strengthen the means of management and protecting investors’

promote inclusive and · Responding to technology finance and · Development: Core business focus for implementation and revitalize the rights and interests · Governance: Governance as a priority for

sustainable industrialization and digital finance serving the real economy global partnership for sustainable · Establishing communication channels with a solid foundation

foster innovation. development. all stakeholders152 ESG 153

Reader Feedback Form

Thank you for reading this report. To continuously enhance our ESG performance strengthen our sustainable development

management capabilities and further improve the quality of our sustainability reports we sincerely welcome your feedback

and comments on this report. We would greatly appreciate it if you could take a few moments from your busy schedule to

share your valuable opinions and suggestions.You may submit your feedback to us through the following channels:

Mailing address: Building 1 Financial City No. 99 Jialingjiang East Street Jianye District Nanjing Jiangsu

Tel.: 025-86816908

Email: info@jsleasing.cn

Please respond to the following questions:

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