2019 Annual Report
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2019 ANNUAL REPORT Stock Code : 601229 Content Important Notice 1 Chapter V Changes in Ordinary Shares and Shareholders 84 Definitions 2 Chapter VI Chairman’s Statement 3 Preference Shares 92 President’s Statement 6 Chapter VII Directors, Supervisors, Senior Management and Employees 96 Chapter I Company Profile 11 Chapter VIII Corporate Governance 114 Chapter II Summary of Accounting Data and Financial Indicators 18 Chapter IX Financial Report 127 Chapter III Discussion and Analysis of Operation 22 Chapter X Documents for Inspection 129 Chapter IV Major Events 69 Auditors’ Report and Financial Statements 132 Content Important Notice 1 Chapter V Changes in Ordinary Shares and Shareholders 84 Definitions 2 Chapter VI Chairman’s Statement 3 Preference Shares 92 President’s Statement 6 Chapter VII Directors, Supervisors, Senior Management and Employees 96 Chapter I Company Profile 11 Chapter VIII Corporate Governance 114 Chapter II Summary of Accounting Data and Financial Indicators 18 Chapter IX Financial Report 127 Chapter III Discussion and Analysis of Operation 22 Chapter X Documents for Inspection 129 Chapter IV Major Events 69 Auditors’ Report and Financial Statements 132 Important Notice Definitions Important Notice Definitions In this report, unless the context otherwise requires, The Board of Directors, Board of Supervisors and the directors, supervisors and senior management the following terms have the meanings set forth below 1 of the Company undertake that the contents of this annual report is true, accurate and complete without any false record, misrepresentation or material omission and are severally and jointly The Company, the Bank or Bank of Shanghai Bank of Shanghai Co., Ltd. liable in this respect. The Group Bank of Shanghai Co., Ltd. and its subsidiaries 2 The Resolution regarding the 2019 Annual Report and Summary of Bank of Shanghai Co., Ltd. was considered and approved at the fourteenth meeting of the fifth session of the Board of Directors Bank of Shanghai (Hong Kong) Bank of Shanghai (Hong Kong) Limited of the Company on 24 April 2020. 18 directors were supposed to attend the meeting and 17 of them actually attended the meeting. Director Gu Jinshan appointed Director Ye Jun to attend BOSC International BOSC International Company Limited and vote on his behalf. 4 supervisors of the Company were present at the meeting. The proposal on distribution of profit in the reporting period which has been considered and BOSC Asset BOSC Asset Management Limited 3 approved by the Board of Directors: Distribute RMB4.00 (tax inclusive) of cash dividend per 10 Shanghai ShangCheng Consumer Finance ShangCheng Consumer Finance shares to ordinary shareholders on a basis of 14,206,528,700 ordinary shares, totaling Corporation Limited RMB5,682,611,480. This proposal is subject to consideration at the 2019 annual general meeting of the Company. The central bank, PBOC The People’s Bank of China China Banking and Insurance The 2019 financial statements of the Group prepared under the Accounting Standards for Business CBIRC 4 Enterprises of the PRC has been audited according to the Auditing Standards for CPAs in the Regulatory Commission PRC by KPMG Huazhen (Special General Partnership), which had issued a standard unqualified CSRC China Securities Regulatory Commission audit report. China Banking and Insurance Regulatory CBIRC Shanghai Bureau The financial data and indicators set out in this annual report are prepared on a consolidated Commission Shanghai Bureau 5 basis in accordance with PRC GAAP and expressed in Renminbi, unless otherwise stated. “The Group” refers to Bank of Shanghai Co., Ltd. and its subsidiaries. SSE The Shanghai Stock Exchange The Company’s Chairman Jin Yu, President Hu Youlian, and Vice President and Chief Financial The Free Trade Zone China (Shanghai) Pilot Free Trade Zone 6 Officer Shi Hongmin guarantee that the financial report in this annual report is true, accurate and complete. Banco Santander Banco Santander S.A. Risk disclosure of forward-looking statements: the forward-looking statements such as future Shanghai Commercial Bank Shanghai Commercial Bank Limited 7 plans and development strategies involved in this annual report do not constitute a substantial commitment of the Company to the investors. Investors and relevant persons should have RMB Renminbi yuan sufficient risk awareness and understand the difference of plans and forecasts from commitments. Material risk warning: the Company does not have foreseeable material risks. The risks faced by 8 the Company in its operations mainly include credit risk, market risk, liquidity risk and operational risk. The Company has taken various measures to effectively manage and control various types of operational risks. Please refer to the Chapter “Discussion and Analysis of Operation” for details. Bank of Shanghai 2019 Annual Report 丨 01 02 丨 Bank of Shanghai 2019 Annual Report Important Notice Definitions Important Notice Definitions In this report, unless the context otherwise requires, The Board of Directors, Board of Supervisors and the directors, supervisors and senior management the following terms have the meanings set forth below 1 of the Company undertake that the contents of this annual report is true, accurate and complete without any false record, misrepresentation or material omission and are severally and jointly The Company, the Bank or Bank of Shanghai Bank of Shanghai Co., Ltd. liable in this respect. The Group Bank of Shanghai Co., Ltd. and its subsidiaries 2 The Resolution regarding the 2019 Annual Report and Summary of Bank of Shanghai Co., Ltd. was considered and approved at the fourteenth meeting of the fifth session of the Board of Directors Bank of Shanghai (Hong Kong) Bank of Shanghai (Hong Kong) Limited of the Company on 24 April 2020. 18 directors were supposed to attend the meeting and 17 of them actually attended the meeting. Director Gu Jinshan appointed Director Ye Jun to attend BOSC International BOSC International Company Limited and vote on his behalf. 4 supervisors of the Company were present at the meeting. The proposal on distribution of profit in the reporting period which has been considered and BOSC Asset BOSC Asset Management Limited 3 approved by the Board of Directors: Distribute RMB4.00 (tax inclusive) of cash dividend per 10 Shanghai ShangCheng Consumer Finance ShangCheng Consumer Finance shares to ordinary shareholders on a basis of 14,206,528,700 ordinary shares, totaling Corporation Limited RMB5,682,611,480. This proposal is subject to consideration at the 2019 annual general meeting of the Company. The central bank, PBOC The People’s Bank of China China Banking and Insurance The 2019 financial statements of the Group prepared under the Accounting Standards for Business CBIRC 4 Enterprises of the PRC has been audited according to the Auditing Standards for CPAs in the Regulatory Commission PRC by KPMG Huazhen (Special General Partnership), which had issued a standard unqualified CSRC China Securities Regulatory Commission audit report. China Banking and Insurance Regulatory CBIRC Shanghai Bureau The financial data and indicators set out in this annual report are prepared on a consolidated Commission Shanghai Bureau 5 basis in accordance with PRC GAAP and expressed in Renminbi, unless otherwise stated. “The Group” refers to Bank of Shanghai Co., Ltd. and its subsidiaries. SSE The Shanghai Stock Exchange The Company’s Chairman Jin Yu, President Hu Youlian, and Vice President and Chief Financial The Free Trade Zone China (Shanghai) Pilot Free Trade Zone 6 Officer Shi Hongmin guarantee that the financial report in this annual report is true, accurate and complete. Banco Santander Banco Santander S.A. Risk disclosure of forward-looking statements: the forward-looking statements such as future Shanghai Commercial Bank Shanghai Commercial Bank Limited 7 plans and development strategies involved in this annual report do not constitute a substantial commitment of the Company to the investors. Investors and relevant persons should have RMB Renminbi yuan sufficient risk awareness and understand the difference of plans and forecasts from commitments. Material risk warning: the Company does not have foreseeable material risks. The risks faced by 8 the Company in its operations mainly include credit risk, market risk, liquidity risk and operational risk. The Company has taken various measures to effectively manage and control various types of operational risks. Please refer to the Chapter “Discussion and Analysis of Operation” for details. Bank of Shanghai 2019 Annual Report 丨 01 02 丨 Bank of Shanghai 2019 Annual Report Chairman’s Statement Chairman’s Statement The year 2019 marks the 70th anniversary of the founding of the People’s Republic of China. The whole country celebrated the We strengthened risk management and consolidated the foundation for steady development. As an enterprise facing great journey and remarkable achievements over the years, which greatly inspired us and unleashed our confidence. We faced operational risks, we abide by bottom-line thinking, strengthened our risk awareness, built a healthy risk culture, improved the the complex and challenging operating environment head-on, made continuous efforts in building a boutique bank, quickened three lines of defense for risk management, and continued to strengthen the comprehensive risk management system. We headway towards transformation and unwaveringly promoted high-quality development. Throughout the year, the business adhered to stable risk