Qifu Technology : Environmental, Social, and Governance Report 2023

ENVIRONMENTAL, SOCIAL, AND GOVERNACE REPORT

2023

Environmental, Social, and Governance Report 2023

About The Report

Reporting Period

The scope of the Environmental, Social, and Governance (ESG) report covers the period from January 1, 2023, to December 31, 2023.

Report Objectives

The primary objective of this edition of the Environmental, Social, and Governance (ESG) report is to identify significant sustainable development issues relevant to the company and provide information on how the company mitigates such risks and explores these issues. It aims to better inform stakeholders about the company's social values, strategies, and practices in sustainable development.

Report Scope

This ESG report considers the importance of sustainable development in the company's operations. As a financial technology company based in Shanghai, China, with its main revenue coming from the Chinese market, this ESG report primarily reflects the performance of the Shanghai headquarters and branch offices in ESG from January 1, 2023, to December 31, 2023.

Reporting Guidelines

This edition of the ESG report is prepared in accordance with the ESG Reporting Guide (ESG Guide) in Appendix 27 of the Hong Kong Stock Exchange Listing Rules. We use a consistent approach to ensure fair comparison with past data and provide comprehensive and objective disclosure of ESG performance.

Indicator Selection

This report primarily considers the importance, measurability, balance, and consistency of specific indicators related to key performance disclosures. We will continue to adjust and optimize disclosure indicators in future reports. Importance: Utilizing stakeholder power - stakeholder models, engagement mechanisms, ESG-relatedsurveys

distributed to stakeholders, etc., to identify corporate social responsibility issues that are important or

About This Report	01 / 02

relevant to the company and stakeholders;

Measurability: Key performance indicators disclosed can be measured;

Balance: Objectively presenting the company's work in environmental, social, and governance aspects in the report;

Consistency: This year's ESG report adopts a consistent data disclosure method with previous years, compares data from different years, and lists changes in statistical methods and key performance indicators.

Information Sources

The qualitative and quantitative information used in this report comes from publicly available information, internal documents, and relevant statistical data of Qifu Technology Company.

Referencing

For ease of expression and readability, "Qifu Technology", "the company", or "we" are used in this report.

Publication Format

The web version of this report can be viewed and downloaded on the Qifu Technology website (http://www.qi- fu.tech/).

Feedback

This edition of the report aims to provide stakeholders and the public with a comprehensive understanding of the company's corporate social responsibility and corporate values. We welcome your comments and opinions on the report and its contents, as this helps us establish a consensus on corporate social responsibility. Please email your feedback to [e-mail].

Environmental, Social, and Governance Report 2023

Company Overview

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01	Company Overview	QiFu Technology Introduction	05
		The honors received by Qifu	07
		Technology in 2023

02	Analysis of Material	Identification, Evaluation, and	11
ESG Issues	Prioritization of Material Issues
		Stakeholder Communication	12

03 Special Report	Highlights of 2023 Data	15
Steady Support for Micro and Small	17
	Enterprises, for Fully "Backing" Growth
	Finance for Charity	19

04	Corporate Responsibility	Corporate Governance	26
Governance	Compliance and Anti-corruption	27

Management

05	Responsibility	Innovation and Research	31
Operation	Data Governance	37
			Intelligent Risk Control	40
			Intellectual Property Protection	41
06	Win-Win Cooperation	Customers First	47
	Supplier Management	65
			Industry Win-win	67
07	People-oriented	Diverse Compensation and Benefits System	74
Approach	Health and Safety Focus	79
			Comprehensive Talent Development Path	81
			Protection of Employee Rights	86
08	Proud of Green	Resource Usage	89
	Emission Management
	90

Green Business	91

Environmental, Social, and Governance Report 2023

Company Overview

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01 Company Overview

Qifu Technology is an outstanding artificial intelligence-driven credit technology service platform in China, using advanced technology to create wealth for society. Qifu Technology adheres to the initial heart of "originating from security, persisting in technology," empowering financial institutions to improve quality and efficiency through intelligent services, AI research and applications, and security

technology. This facilitates the high-quality development of inclusive finance, enabling more people to enjoy secure and convenient financial technology services, and contributing to achieving common prosperity.

Environmental, Social, and Governance Report 2023

The honors received

by Qifu Technology in 2023

Awarded the "Consumer Rights Protection Award" for outstanding cases of inclusive finance by People's Daily Online in 2023.

Ranked on the "Double 50" list by KPMG Fintech for five consecutive years.

Recognized as the "Qifu Financial Big Model" in the annual forefront artificial intelligence application cases by Southern Metropolis Daily.

Named one of the top 100 enterprises in the Shanghai software and information technology service industry in 2023.

Awarded the "Best Credit Project in China" in the 2023 China Awards Program by The Asian Banker.

Winner of the "Annual Generative AI Innovation Enterprise" award by Huaxia Times.

Recognized as an "Excellent Blue Team" in the "Panshi Action" industrial and information security practical combat event in Shanghai in 2023.

Accredited as the leading unit for the certification of "Financial Big Model" by the China Artificial Intelligence Industry Development Alliance.

Named one of the "Top Ten Financial Big Model Companies of the Year" in 2023 by Beijing Business Daily.

Awarded a "Donation Certificate" by the Shanghai Disabled Welfare Foundation.

Winner of the "2023 ESG Excellent Case Award" by Huaxia Times.

Company Overview	07/ 08

Recognized for "ESG Innovation Practices in Listed Companies in 2023" by Securities Daily.

Awarded the "2023 ESG Pioneer 60 Annual Social Responsibility Excellence Award" by Jiemian News.

Selected as a co-drafting unit for the "Platform Economy Data Governance Evaluation Guide" by the China Technology Market Association.

Winner of the "Crystal Ball Award for the Most Socially Responsible (ESG) Listed Company in 2023" by Securities Market Weekly.

Winner of the "2023 Outstanding Digital Technology Enterprise" award by Gelonghui.

Recognized as the "2023 ESG Development Influence Enterprise" by Hexun China Financial and Economic Influence List.

Awarded the "Best ESG Innovation Award" by Smart Finance in the listed company selection.

Winner of the "2023 Anti-Fraud Ecological Co-construction Award" by the Internet and Financial Anti-Fraud Alliance.

Selected as the "Best Partner in Supply Chain Financial Technology of 2023" by JD Technology.

Awarded the "Most Socially Responsible Listed Company Award of 2023" by Guangzhou Daily Media Group.

Received the "Annual Cutting-edge Technology Innovation Award" by Caijing in 2023.

Environmental, Social, and Governance Report 2023

Analysis of Material ESG Issues

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02 Analysis of Material ESG Issues

In accordance with the HKEX's ESG Reporting Guidelines, the Company has identified material issues that have a significant impact on itself and its stakeholders across a wide range of material issues, in conjunction with internal and external communication and discussion.

Environmental, Social, and Governance Report 2023

Identification, Evaluation and Prioritization of Material Issues

Following the guidance provided by the Hong Kong Stock Exchange (HKEX) ESG reporting framework and through internal and external communication and discussions, the company has identified substantive issues with significant impacts on Qifu Technology and its stakeholders within a wide range of sustainable development topics. These issues contribute to the development of ESG governance and risk management measures at the company level, ensuring the effective handling of significant concerns raised by stakeholders.

Based on the principle of importance, the company has ranked the identified significant substantive issues using an importance matrix, which has been reviewed and approved by the management. The results are as follows:

Analysis of Material ESG Issues	11 / 12

Stakeholders	Substantive Issues of Concern	Response of Enterprise
	Innovation and R&D	Increase R&D investment in product innovation
	Data Governance	Improve customer service quality
	Customer First	Client service
Client		Customer complaint handling mechanism
	Intelligent Risk Control	Establish credit risk control system
	Anti-fraud protection	Advocacy and Education Front-end interception
	Inclusive Micro and Small Enterprises	Conduct targeted help
	Employee Rights	Implement scientific employment standards
	Employee Health and Safety	Strengthen safety knowledge education
Staff	Staff Training and Development	Improve relevant training mechanisms

Highly Important Substantive Issues

1	Innovation and R&D	6	Compliance	High
2	Intellectual Property	7	MSEs
	Protection
3	Data Governance	8	Anti-fraud protection
4	Intelligent Risk Control	9	Green business	Importanceto
Moderately Important Substantive Issues
5	Client First
10	Supplier management	14	Employee Health	stakeholders
& Safety
11	Community Benefits	15	Emission management
12	Win-Win Industry	16	Employee Benefits

13 Staff Training & Development

Mildly Important Substantive Issues

17 Resource Utilization	18	Extreme Weather	Low
Response

				5	1
			9		6
10				2
11		3
				4	8
	13	12			7
		15	14
				16

17

18

Importance to Qifu Tech

High

	Employee Compensation and Benefits	Improve the salary system
	Labour Standards	Establish and improve internal system
	Corporate Governance	Implement ESG governance
Shareholder
Compliance Operation	Compliance management system
			Establish anti-fraud reporting mechanism and policy
	Innovation and R&D	Establish industry standards
			and promote industry progress
	Supplier Management	Supplier evaluation and communication
Supplier			Green supplier management
	Win-win for both	Conducting sharing and exchange
Business Partner	Win-win for both	Establish intellectual property protection policies
			Strengthen training on intellectual property protection
	Win-win for both	Share and exchange
Government and	Compliance and Anti-Corruption	Information disclosure

Stakeholder Communication

We welcome stakeholders to provide feedback and engage in discussions with our company on sustainable development matters. Over the long term, we maintain continuous and close communication with relevant stakeholders through various channels, including but not limited to regular events, media platforms, and various reports. This is aimed at better understanding their feedback on the current social practices of our company and identifying areas for improvement.

Additionally, we regularly review sustainable development issues related to the environment, society, and governance to ensure compliance with the expectations of relevant stakeholders, market trends, regulatory requirements, ESG guidelines, and matters related to the financial technology sector. The following outlines the concerns of relevant stakeholders and the communication methods:

Regulatory Agencies	Management
	Resource Use	Policy formulation and implementation
Environmental	Emission Management	Strict management of emissions
Extreme Weather Response	Implement ecological protection measures
Organization
	Green Finance	Promote green products
	Community Public Welfare	Participate in public welfare activities
Community
Poverty Alleviation Charity	Organize poverty alleviation charity assistance
	Carbon Neutralization Program	Supporting policies related to carbon neutralization

Environmental, Social, and Governance Report 2023

Special Reports

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03 Special Reports

QiFu Technology is actively exploring new avenues in financial technology to better support the development of the real economy. We have deeply ingrained the philosophy of digital technology, striving to permeate the endless power of technology into every corner of the real economy, injecting more vitality and color into the world.

Environmental, Social, and Governance Report 2023

Special Reports

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Highlights of 2023 Data

2023

Inclusive Micro and

Small Enterprises (MSEs):

162.1billion

Assisting financial institutions in lending to MSEs

34.1%

Proportion of MSEs loan size.

Rural Revitalization Green Finance

22.14 billion	16.05 billion	25.96billion
Assisting financial institutions in lending	Cumulative assistance to financial institutions for	Cumulatively assisted financial institutions
to agriculture-related sectors.	loans to environmental protection enterprises	to issue new energy vehicle owner loans
3.752million	216 thousand	175thousand
Cumulative number of farmers served	Cumulative number of environmental	Cumulative number of new energy vehicle
	protection enterprises served	owners served.

Environmental, Social, and Governance Report 2023

Steady Support for Micro and Small Enter- prises, for Fully "Backing" Growth

Amidst the current wave of flexible employment, various emerging professions and highly segmented entrepreneurial paths have emerged. Regardless of the emerging formats, the constant factor remains the frequent struggle faced by micro-businesses and entrepreneurs in terms of financial needs. Therefore, identifying micro-users and providing them with corresponding assistance and services has become one of the significant responsibilities of financial technology companies. Qifu Technology has accumulated a large amount of data in various aspects such as micro-enterprise data behavior and industry financial graphs. Based on this, the Qifu Mega Model, born out of this, can understand the behavioral characteristics of micro-enterprises in different industries and establish an overall industry concept based on this understanding. After in-depth understanding of the fluctuations in industry capital flow, marketing, or entry and exit nodes, Qifu Technology effectively reduces the financing threshold for micro-enter- prises. At the same time, based on the seven years of past industry experience, Qifu has built a scientifically accurate credit assessment model on the basis of massive data and hundreds of models, significantly reducing the overall financing costs of micro-enterprises.

Case: Technological Finance Ignites the 6.18 Stocking Craze

During the 6.18 Shopping Festival, Qifu Technology launched the "Preparedness Ensures Success, Taking the Lead" stocking festival activity through its product matrix, including 360 Borrowing, 360 Micro Loans, and 360 Capital Turnover Flexibility. By offering multiple financial incentives such as interest-free turnover funds and interest coupon discounts, it provided financial support to 5 million micro-enterpris- es, helping them prepare for the 6.18 Shopping Festival.

5 million households

micro-businesses provide financial support

Special Reports	17 / 18

Case: "Business Gold" Wholesale and Retail Special Support Plan

aIn December 2023, in response to the increasing need for capital turnover in the national wholesale and retail industry, Qifu Technology launched the "Business Gold" Wholesale and Retail Special Support Plan. This plan focused on five provinces with particularly high demand for funds: Guangdong, Zhejiang, Jiangsu, Fujian, and Anhui. By combining the use of interest-free coupons and interest-free months, the plan provided over 50 million RMB in total funding support to 300,000 micro-businesses in industries such as household appliances, textiles, clothing, and lighting. Earlier in November, Qifu Technology had already observed the sharp rise in the "Yiwu·China Small Commodity Index" and anticipated the upcoming peak period of funding for wholesale and retail enterprises. Based on this precise prediction, the company swiftly implemented the "Business Gold" plan, ensuring powerful support for micro-merchants in urgent need of funds in the shortest possible time, achieving efficient capital docking, and rapid deployment.