2020 Interim Report and 2020 Interim Financial Statements of the Bank Have Been Considered and Approved by the Bank’S Board and Its Audit Committee
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(A joint stock company incorporated in the People's Republic of China with limited liability) Stock Code: 6199 INTERIM REPORT Contents Definitions 2 1. Company Profile 4 2. Summary of Accounting Data and 6 Financial Indicators 3. Management Discussion and 8 Analysis 4. Changes in Share Capital and 48 Information on Shareholders 5. Directors, Supervisors, Senior 62 Management, Employees and Organizations 6. Corporate Governance Report 69 7. Major Events 71 8. Independent Auditor’s Review 77 Report 9. Financial Statements and Notes to 78 the Unaudited Interim Financial Report 10. Unaudited Supplementary 174 Financial Information 11. Appendix: List of Branches and 178 Sub-branches The Bank holds a financial license No. B1383H252010001 approved by the CBIRC and was authorised by the CBIRC Guizhou Office to obtain the business license with a unified social credit code 915200000550280000. The Bank is not an authorized institution within the meaning of the Banking Ordinance (Chapter 155 of the Laws of Hong Kong), not subject to the supervision of the Hong Kong Monetary Authority, and not authorized to carry on banking and/or deposit-taking business in Hong Kong. 2 Bank of Guizhou Co., Ltd. Definitions DEFINITIONS The following terms shall have the following meanings in this report unless the context requires otherwise. “Articles of Association” or “Articles” the articles of association of the Bank, the version of which was passed by our shareholders at the shareholders’ meeting on 20 May 2020, which is subject to the approval of the CBIRC Guizhou Office “Board” the board of Directors of the Bank “Board of Supervisors” the board of Supervisors of the Bank “Banking Ordinance” the Banking Ordinance, Chapter 155 of the Laws of Hong Kong, as amended, supplemented or otherwise modified from time to time “Bank”, “We”, “Our”, “us” or “Bank of Guizhou” Bank of Guizhou Co., Ltd. (貴州銀行股份有限公司), a joint stock company incorporated on 28 September 2012 in Guizhou Province, China, with limited liability in accordance with the PRC laws and regulations and, if the context requires, includes its predecessors, branches and sub-branches “CBIRC” or “CBRC” China Banking and Insurance Regulatory Commission (中國銀行保險監督管 理委員會)/China Banking Regulatory Commission (中國銀行業監督管理委 員會) (before 17 March 2018) “commercial banks” all the banking financial institutions in the PRC other than policy banks, including the large commercial banks, the joint-stock commercial banks, city commercial banks, foreign banks and other banking financial institutions “CBIRC Guizhou Office” China Banking and Insurance Regulatory Commission Guizhou Office (中國 銀行保險監督管理委員會貴州監管局) “Domestic Shares” ordinary shares issued by the Bank in the PRC, with a nominal value of RMB1.00 each, which are subscribed for or credited as paid in full for in Renminbi “Director(s)” the director(s) of the Bank “H Shares” overseas-listed shares in the share capital of the Bank, with a nominal value of RMB1.00 each, which are to be subscribed for and traded in Hong Kong dollars and are listed on the Hong Kong Stock Exchange Definitions Interim Report 2020 3 “HK$” or “HKD” or “Hong Kong dollars” the lawful currency of Hong Kong “Hong Kong” or “HK” Hong Kong Special Administrative Region of the PRC “Hong Kong Stock Exchange” The Stock Exchange of Hong Kong Limited “Hong Kong Listing Rules” the Rules Governing the Listing of Securities on Hong Kong Stock Exchange “Model Code” the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 to the Hong Kong Listing Rules “PRC” or “China” the People’s Republic of China, but for the purpose of this report only, excluding Hong Kong, Macau Special Administrative Region of the PRC and Taiwan “Reporting Period” for the six months ended 30 June 2020 “PBOC” or “Central Bank” the People’s Bank of China (中國人民銀行) “RMB” or “Renminbi” Renminbi, the lawful currency of the PRC “SFO” the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “Supervisor(s)” the supervisor(s) of the Bank 4 Bank of Guizhou Co., Ltd. Chapter 1 Company Profile COMPANY PROFILE 1. BASIC INFORMATION Legal Chinese Name: Fax: 貴州銀行股份有限公司 (86) 0851-86207999 English Name: Email: BANK OF GUIZHOU CO., LTD. [email protected] Legal Representative: Website for Publishing this Report: Mr. Li Zhiming www.bgzchina.com www.hkexnews.hk Authorised Representatives for the Hong Kong Stock Exchange: Address for Inspection of this Report: The Board Office of the Bank (26th Floor, Zhongdu Mr. Li Zhiming, Mr. Zhou Guichang Building, No. 149 South Zhonghua Road, Nanming District, Guiyang, Guizhou Province, PRC) Board Secretary: Place of Listing, Stock Name and Stock Mr. Zhou Guichang Code: Joint Company Secretaries: The Stock Exchange of Hong Kong Limited, BANK OF GUIZHOU, 6199.HK Mr. Zhou Guichang, Mr. Lei Kin Keong Corporate Uniform Social Credit Code: Registered Address: 915200000550280000 No.41, Middle Ruijin Road, Yunyan District, Guiyang, Guizhou Province, PRC Financial License Institution Number: Head Office in the PRC: B1383H252010001 No.149, South Zhonghua Road Compliance Advisor: Nanming District, Guiyang Guizhou Province, PRC Guotai Junan Capital Limited Principal Place of Business in Hong Auditors: Kong: Overseas Auditor: KPMG 40th Floor, Sunlight Tower Public Interest Entity Auditor registered in No. 248, Queen’s Road East, Wanchai, Hong Kong accordance with the Financial Reporting Council Ordinance Contact Address: Domestic Auditor: KPMG Huazhen LLP No.149, South Zhonghua Road Hong Kong H Share Registrar and Nanming District, Guiyang, Guizhou Province, Transfer Office: PRC Computershare Hong Kong Investor Services Telephone: Limited (86) 0851-86207888 Chapter 1 Company Profile Interim Report 2020 5 2. COMPANY PROFILE Founded on 11 October 2012, and headquartered in Guiyang City, Guizhou Province, Bank of Guizhou is a provincial legal person financial institution established through the merger and reorganization of Zunyi City Commercial Bank, Anshun City Commercial Bank and Liupanshui City Commercial Bank. The Bank has been listed on the main board of The Hong Kong Stock Exchange on 30 December 2019 with its stock code of 6199.HK. It is the first financial institution in Guizhou Province to enter the international capital market. The Bank’s business scope is: absorbing public deposits; offering short-term, medium-term and long-term loans; arranging settlement of domestic accounts; arranging entrusted deposits and entrusted loans; handling acceptance and discount of instruments; issuing, cashing and undertaking the sale of government bonds as agents; buying and selling government bonds and financial bonds; undertaking inter-bank borrowing or lending; trading foreign exchanges and providing agency services for foreign exchange trading; engaging in the bank card business; providing letters of credit services and guarantee; handling receipts and payments; providing safe boxes services; concurrent-business insurance agency; fund sales business; other business approved by the banking regulatory authority and relevant department. At the end of the Reporting Period, the Bank had total assets of RMB424,268 million, total deposits from customers of RMB279,320 million and net loans and advances to customers of RMB189,993 million, recorded profit before tax of RMB2,304 million, net profit of RMB1,929 million, non-performing loan ratio of 1.16% and provision coverage rate of 332.68%. As at the end of the Reporting Period, there were 223 licensed institutions of the Bank, including 1 head office, 8 branches, 208 traditional sub-branches, 5 community sub-branches and 1 branch banking operation department, with 4,855 regular employees. All branches of the Bank are located within Guizhou Province, realizing the full coverage of city (prefecture) and county (district) institutions in Guizhou Province. The Bank aims at “building a domestic first-class modern city commercial bank”, with a bright vision of “contribution excellence, happiness sharing”, and strongly supports the economic and social development of Guizhou. The Bank has established business areas covering corporate banking, retail banking, small and micro financial services, financial market operations, and asset management with branches in 88 counties in Guizhou Province. Electronic banking, mobile banking, WeChat banking, online banking, telephone banking and other service channels have been continuously improved, and the customer base has been continuously expanded. The Bank insists on steady and prudent operations, and has established a comprehensive risk management system that matches business development. The asset quality level continues to lead the industry. The Bank continued to optimize its internal management, various systems and mechanisms were continuously improved, the building of the talent team was continuously strengthened, and the Bank has operated efficiently and orderly. The Bank ranked 270th in the world and 45th in China in the list of ‘’2020 Top 1000 Global Banks’’ released by the British Magazine ‘’the Banker’’; the Bank ranked 47th in the “2019 China Top 100 Banks List” released by the China Banking Association. 6 Bank of Guizhou Co., Ltd. Chapter 2 Summary of Accounting Data and Financial Indicators SUMMARY OF ACCOUNTING DATA AND FINANCIAL INDICATORS For the six months ended 30 June Item 2020 2019 Year-on-Year (Expressed in millions of RMB, unless otherwise stated) Operation results Change (%) Net interest income 4,879.61 4,637.48 5.22 Net fee and commission income 209.39 61.27 241.75 Operating