CITIC Securities Company Limited (hereinafter referred to as “CITIC Securities”, or the “Company”)  adheres to the core values of people-oriented, is committed to respecting and protecting human rights, caring about the career development of employees, providing comprehensive development paths and diversified training, paying attention to the wellness safety of employees, listening to their opinions, and striving to achieve common development between employees and the Company.

The term "employee" referred to in this policy refers to all full-time employees who have signed formal employment contracts with CITIC Securities, and the Company has not recruited part-time employee.

I.Employee rights protection

CITIC Securities strictly complies with relevant national laws and regulations, providing employees with equal employment opportunities. For matters related to employee recruitment, onboarding, training, promotion, incentives, working hours, holidays, welfare benefits, dismissal, etc., there are no differences based on race, religion, gender, age, marriage, appearance, etc. Human resources management is carried out in accordance with the requirements of prohibiting child labor, eliminating various forms of forced labor, and eliminating employment and employment discrimination, so as to fully protect the rights and interests of employees.

CITIC Securities is committed to providing employees with the inclusion, honest, caring and cooperative work environment, ensuring that employees obtain the necessary working conditions for fulfilling their duties, obtain relevant business knowledge and skills training, receive corresponding labor remuneration, establish a comprehensive welfare guarantee system, and standardize the management of employees' working hours and various holidays. Establish diverse channels for collecting opinions and suggestions, listen to employees' voices and ideas, and encourage them to unleash their potential and create value.

CITIC Securities focuses on humanistic care for its employees, strives to create a happy and heartwarming workplace, and establishes non-pay benefits covering all employees[1], carry out diversified employee activities, improve employee benefits, promote employee communication, establish an open, friendly, united and mutually supportive corporate culture, and enhance employees' sense of belonging and happiness.

II.Employee recruitment and diversification

CITIC Securities always adheres to the concept of equality and diversification of talents, and is committed to absorbing talents with various backgrounds and skills in different industry to build a diversified employee system.

Based on the talent introduction mechanism and annual recruitment plan, CITIC Securities comprehensively evaluates recruitment needs for different employers and professional fields, utilizing various talent recruitment channels such as campus recruitment and social recruitment, combined with diversified evaluation methods such as written exams, interviews, and internship inspections, to improve the accuracy of talent introduction.

CITIC Securities attaches great importance to the diversity construction of its workforce, setting quantitative goals for diversity in the recruitment process, and recruiting outstanding talents with different professional backgrounds and languages to ensure the development of a high-quality talent team.

The senior management of CITIC Securities shall manage and supervise the implementation of diversification related policies, be responsible for promoting diversification policy training, and make improvements based on the implementation effect of diversification related measures.

III. Development and training

CITIC Securities attaches great importance to talent attraction and retention, formulates talent development strategies, provides employees with competitive salaries and benefits, and builds a sound career development and training system. The company considers the existing training system and business development needs comprehensively every year to develop an annual training plan.

The Company attaches great importance to the personal development and promotion of employees, establishes an MD rank system with the core concept of "equal responsibility and rights", sets up a diversified job system, constructs a talent development system with dual channels of management and profession, develops training projects for talent groups at different development stages, establishes clear and clear talent growth paths, and empowers employees to grow.

Establish a training system that covers all employees, empowering employees in all aspects through various training channels such as online, offline, internal, and external. Provide comprehensive or professional training courses and plans for management, reserve cadres, backbone talents, graduate recruited employees and other employees at different positions and levels to enhance their professional skills, management ability and leadership; emphasize and strengthen cooperation with professional education and training institutions, collaborate with well-known universities and educational institutions to cultivate talents, and provide employees with comprehensive and multi-dimensional joint training programs.

Encourage all employees to participate in relevant professional qualification exams, professional title assessments, etc., and support employees in obtaining relevant professional certificates, professional titles, or degrees. Organize employees to actively participate in various trainings organized by regulatory agencies and industry associations.

IV. Employee communication and grievance

CITIC Securities has established democratic management mechanisms such as labor unions and employee rights protection departments, as well as employee representative conferences, to promptly listen to and resolve employee feedback. The company conducts grassroots employee research through forums and other forms to understand the needs of grassroots employees and solicit their opinions and suggestions on the Company.

The Company conducts employee satisfaction surveys every year, using information technology to conduct surveys on the working conditions, work and career development guidance, team collaboration and work atmosphere, employee care and respect, and employee opinions and suggestions in the department, while following anonymous scoring and not disclosing individual specific ratings. Based on the satisfaction survey results, the Human Resources Department, in conjunction with relevant personnel, will review feasible optimization plans and continuously improve them.

The Company sets up various channels for employee communication and grievance, in order to timely understand the demands of employees and grasp the problems in company management. The Company stipulates that grievance investigators shall keep the details of the grievance matter and the personnel involved in the investigation confidential, and promises that all grievance will be retaliated or injured during or after the process.

V. Employee performance evaluation

CITIC Securities has established a fair and reasonable system for employee performance evaluation, promotion and grievance. Adhering to the goal-oriented performance philosophy and the principle of fair and objective evaluation, the Company continuously improves employees' business abilities and comprehensive qualities by setting performance goals, tracking and coaching the performance process, evaluating performance, and providing feedback on performance results, promoting the common development of employees and the Company.

The Company conducts annual performance evaluations for all employees. Through the closed-loop performance management system of "initial goal setting, mid-term tracking and improvement, and final assessment and evaluation", the assessment results are comprehensively considered, including the completion of employee performance indicators, daily behavior performance, compliance with professional ethics standards of securities practitioners, practice of industry and company cultural concepts, reputation and rewards and punishments.

The Company's compensation system consists of two parts: fixed compensation and performance-based compensation. Among them, performance-based compensation is a floating compensation item that is linked to the performance of the company, department, and individual employees. Performance based compensation reflects the differences in employee performance and contribution, and is applicable to all employees. The Company has established a performance-based compensation deferral mechanism to align senior management, core key employees, and employees with direct or significant risks with the Company's development goals, ensuring that the payment period of performance bonuses matches the risk duration of the corresponding business, and rewarding continuous value creation.

Establish a complete grievance mechanism for employee performance. According to the relevant regulations of the Company, if employees do not recognize or accept the performance evaluation results, they can submit a written grievance application to the Human Resources Department within the specified time. The Human Resources Department will verify the content of grievance and provide handling opinions based on the investigation results, and provide feedback on the appeal results to the grievance.

The Company has established a diversified employee reward system, adhering to the combination of material and spiritual incentives. Through notification of commendation, awarding honorary titles, and special rewards, it encourages employees to be diligent and responsible, strive for excellence, serve customers, collaborate, and be enthusiastic about public welfare.

VI. Wellness and safety

CITIC Securities provides employees with a wellness and safe working environment. In accordance with relevant laws, regulations and industry standards, CITIC Securities formulates occupational wellness and safety management regulations, formulates emergency plans, conducts regular health examinations and occupational wellness and safety education and training for employees, and guarantees occupational health and life safety of employees.

VII. Supply chain responsible management

CITIC Securities adheres to a responsible supply chain management policy and supervises supplier and contractors to comply with employment and labor related laws and regulations and fulfill their corresponding responsibilities in the signing of contract agreements.