AnnualReport2011
135 2011 年 度 报 告 136 Directory Corporation160 Corporation155 Employees147 rt alRepo Annu 139 Data 报告 年度 Shareholders154 2011267 145 shareholdings Report166 Structure153 Institutions269 2011 144 capital 143 Profile 138 Note 146 shareholders Major 2011ReportonWorkofBoardofSupervisorsofLongjiangBank MemorabiliaofLongjiangBankin LongjiangBankOrganization IntroductiontoGeneralMeetingof 2011ReportonWorkofBoardofDirectorsofLongjiangBank usiness SummaryofFinancialDataandB Changesinshare Top10shareholdersandtheir InformationonDirectors,Supervisors,SeniorExecutivesand FinancialStatementandAudit ListofLongjiangBank eBoard MessagefromtheChairmanofth Important Company 2011 Annual Report 136 theBoard hairmanof efromtheC Messag othedevelopmenthistoryoftheLongjiangBank.Withthe Thisyearisalsoofgreatsignificancet ardandoperatingresultscontinuedtobesignificantlyim- Inthisyear,wecontinuetoworkh eatedthecoreproduct Inthisyear,wehavehardenedskills,improvedcorecompetitivenessandcr hChina's an"period,alsotheyearduringwhic efirstyearofthe"12thFive-YearPl Theyear2011isth alenvi- inthesevereandcomplexinternation vedastableandhealthydevelopment economyhasachie hewhole tralCommitteeandStateCouncil,t ecorrectleadershipoftheCPCCen ronment.Underth fficulties, ulleffortstogetherandovercomedi bythescientificdevelopment-top countryisguided longjiang an"period.Duringtheyear,theHei oodstartinthe"12thFive-YearPl andhasachieveag vincialGovernmentfirmlygraspedthescientificdevelopment ProvincialPartyCommitteeandPro mprovedpeople'slivelihood.Theprovince'seconomicandsocial theme,andeffectivelyprotectedandi roved,qualityisupgradedandpeople'slivelihoodisturningbet- growthisaccelerated,structureisimp ter. ,wehaveenhancedthemanagementlevel,andcontinuedtoad- meticulousmanagementasthetheme chisgearedtotheagriculturalindustry,thesmallandmedi- heretothemarketpositioningwhi conomy,activelyprovideconvenient,efficientfinancialservices um-sizedenterprises,andthelocale micro-enterprisecustomersandthevastmajorityofurbanand fortheagriculturalindustry,smalland eemployeesofourbank,wehavecreatedagratifyingdevelop- ruralresidents.Withjointeffortsofth bleexternalimage. mentsituationandestablishedafavora 153.02billionyuan,anincreaseof84.1%overthepreviousyear; proved.Thetotalassetshavereached 0%overthepreviousyear; thebalanceofdepositshavereached93.37billionyuan,anincreaseof4 epreviousyear;non-per- variousloanshavereached25.68billionyuan,anincreaseof27.4%overth 0.83%;netprofitwas1.12 formingloansandNPLratebothhaveacontinuousdecline;NPLfallsto rofbusinessindicatorshas billionyuan,anincreaseof196.8%overthepreviousyear.Thenumbe comprehensivelymetthe rankedattheforefrontintheprovince;variousregulatoryindicatorshad fthemunicipalcommercial standards,theassetsizehasincreaseddramaticallyinthecountry'srankingo banks. smallandmicro-credit- systemwiththeagriculturalsupplychainfinance-Huinonglian,theIPC ng"prospectiveinvestment Longyidai,the"Xiaolongren"communitybankingbusiness,the"Zizhito e"Longhuitong"interna- banking,the"Wutognshu"capitalbusiness,the"Huideli"billbusiness,th MessagefromtheChairmanoftheBoard
tionalbusiness,the"LongeNetwork"onlinebanking;thebranchesbuildinghastakenanewstep forward,thebank'soutletsreached155,andtheconvenientservicenetworkfeaturedwiththe"Xiao- longren"communitybankingbusiness,the"36588"delayservice,andthe24hoursartificialservice hastakenshape;theprovince'ssixruralbanksareallowedtomakepreparationsandthetotalnumber oftheholdingruralbanksreached11. Inthisyear,wehavepulledtogetherourheartsandeffortstovigorouslypromotethebuildingof enterpriseculture,havingconstructedthecorevaluesofcorporateculturefeaturedwith"inclusiveness, assumption,efficiencyandprofessionalism",establishedthevalueguidelinesthatallstaffneedtofollow, andprovidedvaluablespiritualmotivationandastrongculturalsupportforthesustainabledevelop- mentofLongjiangBank. Theyearof2012isacrucialyearfortheLongjiangBanktoconsolidatethebasisforthedevel- opment,improvethemanagementlevelandachievethebusinessbreakthrough.Wewilleffectively enhanceforward-lookingandinitiativeawarenessinthework,andactivelyrespondtochangesinthe externalbusinessenvironment,seektheprogresswhilemaintainingstability,focusonthebetterment intheprogress,improvecorporategovernance,promotestrategiclanding,enhanceriskawarenessand enhancethequalityofdevelopment,improvemanagement,improvetheemploymentmechanismand theincentiveandconstraintmechanism,soastoeffectivelycarryouttheculturalconstructionyear activities,buildthebankimagewithdistinctivefeatures,andconvenientservice,operationalsafety, well-managementandstrivetoachieveintensive,sustainabledevelopment. Theblueprinthasbeendrawn;theshipisreadyforsail.Inthenewyear,LongjiangBankwill activelyseizemarketopportunitiesandcontinuetoenhancethecompetitivedevelopmentcapacity throughbusinessinnovationandserviceimprovement,consolidateandexpandthegoodmomentum ofdevelopment,moveforwardtowardsthevisionoftheworld-classmodernagriculturalindustrial bankalongthecharacteristics,differentiated,community-based,fineandprofessionaldevelopment path.Wearereadytoworkwithcustomersandfriendsfromallwalksoflifehandinhandsoasto createLongjiangBankabetterfuture!
ChairmanandSecretaryofthePartyCommitteeofLongjiangBank:
137 2011 Annual Report 138 antNote Import April18,2012 Corporation BoardofDirectorsofLongjiangBank ImportantNote: Disclo- elevantrequirementsof"Information ispreparedinaccordancewithther Thisannualreport lsystems sureallowedbytheexistingfinancia lBanks",whichisamaximumdisclo sureofCommercia ormation orsofourbankensuresthattheinf gementsystem.TheBoardofDirect andbusinessmana ignificant lserecord,misleadingstatementors nnualreportdoesnotcontainanyfa containedinthisa isresponsiblefortheauthenticity,accuracyandcompletenessof omissionsofrequireddisclosures,and alfinancialstatementhasbeenauditedbyDeloitteTouche thecontent.Ourbank's2011annu containingunqualifiedopinionhasbeenissued.Thisannualre- Tohmatsu,andastandardauditreport Chineserespectively.Incaseofanydiscrepanciesbetweenthe portispreparedinbothEnglishand llprevail. twoversions,theChineseversionsha SummaryofFinancialDataandBusinessData
1.Resultsofoperations (Unit:RMBthousand)
ItemYr2011Yr2010 Increaseordecreaseyoy(%)
Operationrevenue 3,238,463 1,663,015 94.73
Operatingprofitbeforeprovisions 1,718,294 822,211 108.98
Operatingprofit 1,460,880 489,431 198.49
Incomebeforetax 1,459,725 487,787 199.25
Netprofit 1,101,430 375,373 193.43
BasicEPS(Yuan) 0.36 0.12 200.00
DilutedEPS(Yuan) 0.36 0.12 200.00
CashflowgeneratedfromoperatingactivitiesNetamount 18,016,889 6,186,960 191.21
Netcashgeneratedfromoperatingactivitiespershare(Yuan) 4.84 2.01 140.80
139 2011 Annual Report ) 0 % 7.55 ( 83.62 30.31 64.41 93.11 85.04 39.55 55.71 28.24 39.55 44.92 23.72 26.32 21.65 46.89 27.34 26.29 140 201.38 153.09 -14.39 1,840.61 (Unit:RMBthousand) 0 641 1.31 , 914,541 422,320 020 5,569,919 2,743,873 1,280,811 1,173,231 5,339,111 , 82,864,979 19,627,848 54,008,798 78,844,338 11,273,095 66,290,432 4 66,290,432 47,309,918 17,101,528 19,824,082 13,311,740 19,401,762 0 271 1.68 , 983,561 537,779 503 4,511,313 6,260,505 1,004,419 7,842,609 , 25,576,922 28,531,435 92,507,548 24,855,572 92,507,548 68,559,777 21,158,109 25,041,050 16,194,022 16,786,842 104,296,422 145,894,555 152,155,060 24 ta BusinessDa ialDataand aryofFinanc Summ Retaildeposits Discount Retailloans Held-to-maturityinvestment Loansandreceivables Available-for-salefinancialassets Others Interbankborrowing Deposittaking Others eyoy Yr2010Increaseordecreas Yr2011 Item Totalassets setsandderivativefinancialas- Ofwhich:thefinancialas basedonitsfairvalueandcate- setswhichwasmeasured gorizedthechangeundercurrentprofitorloss Totalliabilities nancial Ofwhich:thefinancialliabilitiesandderivativefi lueand liabilitieswhichwasmeasuredbasedonitsfairva categorizedthechangeundercurrentprofitorloss Shareholders'equity Netassetspershare(Yuan) Totaldeposits Ofwhich:Corporatedeposit Totalloans Ofwhich:Corporateloans Loanimpairmentprovision Networthofloansandadvances ator 2.Scaleindic SummaryofFinancialDataandBusinessData
3.Qualityindicatorofasset (Unit:RMBthousand)
ItemYr2011Yr2010Increaseordecreaseyoy(%)
Normalloans 22,867,142 16,833,341 35.84
Special-mentionedloan 1,962,161 2,671,448 -26.55
Non-performingloans 211,746 319,294 -33.68
Ofwhich:secondaryclass 62,648 171,215 -63.41
Doubtful 141,316 131,197 7.71
Classofloss 7,781 16,881 -53.90
Non-performingloanratio(%) 0.85% 1.61% -0.76
Provisioncoverageratio(%) 253.97% 132.27% 121.70
4.Theadequacyindexforcapital (Unit:RMBthousand)
ItemYr2011Yr2010Increaseordecreaseyoy(%)
Netcapital 6,031,390 3,516,368 71.52
Ofwhich:Netcorecapital 5,946,931 3,553,601 67.35
Supplementarycapital 175,200 0 --
Weightedrisknetassets 50,036,279 28,196,868 77.45
Capitaladequacyratio(%) 12.05 12.47 -0.42
Corecapitaladequacyratio(%) 11.89 12.60 -0.71
5.Changesinshareholders'equityduringthereportingperiod (Unit:RMBthousand)
ItemThebeginningofperiodIncreaseordecreaseTheendofperiod
Capitalstock 3,080,000 64,000 3,720,000
Capitalsurplus 554,572 498,434 1,053,006
SurplusReserves 38,607 110,143 148,750
Generalprovisions 0 437,000 437,000
Undistributedprofits 347,462 554,287 901,749
Totalshareholders'equity 4,020,641 2,239,864 6,260,505
141 2011 Annual Report ) % : 1.61 8.67 46.2 57.66 57.69 29.90 28.13 46.23 142 236.31 176.86 Unit ( 0.85 6.63 38.75 43.49 36.82 48.98 36.84 27.07 25.98 403.30 3% 35% 15% 35% 35% 35% 60% 60% 120% 100% < < < > > > < < > < ta BusinessDa ialDataand aryofFinanc Summ Foreigncurrency ency Domesticandforeigncurr ncesforimpairmentlossestototalloansareaccordingto 2.Loans,netadvances,NPLratio,allow thecriteriaoftheCBRC. dof2010 Attheendof2011Attheen Standardindicators Item Liquidityratio:RMB t) Proportionofdepositsandloans(includingdiscoun t) Proportionofdepositsandloans(excludingdiscoun Non-performingloanratio Netcapitalratioofsinglelargestborrower Netcapitalratiooftoptenborrowers Costtoincomeratio(excludingsalestax) Loanlossesprovisionadequacyratio criteriaoftheparentcompanyofthebank. Note:1.Theaboveisaccordingtothe eriod softheendofreportingp aryfinancialindicatorsa 6.Supplement CompanyProfile
LegalChineseName
龙江银行股份有限公司(LongjiangBankCo.,Ltd.)
(Referredtoas"LongjiangBank"forshort,hereinafterreferredtoas"OurBank")
LegalEnglishName
LONGJIANGBANKCORPORATION
LegalRepresentative
YangJinxian
SecretaryoftheBoard
LiRuiwen
Tel:0451-85706153/85706863
Fax:0451-87117802
RegisteredandOfficeAddress:No.436YouyiRoad,DaoliDistrict,Harbin,HeilongjiangProvince
PostalCode:150018
InternetAddress:www.lj-bank.com
E-mail:[email protected]
Annualreportspreparedat:OfficeoftheBoardandmajorbusinessoutlets
TheCompany'sFirstRegistrationDate:December22,2009
TheRegistrationNumberofBusinessLicenseforEnterpriseasaLegalPerson:230000100069419
FinanceLicenseNo.:B1056H223010001
TaxRegistrationNumber:230103695223154
AccountingFirmEngagedbyOurBank:DeloitteToucheTohmatsu
143 2011 Annual Report 144 apital sinsharec Change heBank'sregisteredcapitalreached3.72billionyuanfrom Attheendofthereportingperiod,t kpassed eralmeetingofshareholders,theban tedbyour2011secondinterimgen Consideredandvo llasIn- lIncreaseandShareExpansionaswe osalonLongjiangBank2011Capita throughthe"Prop theBank program,beforetheendof2011, dCapital".Inaccordancewiththe creaseinRegistere cingand aresbywayofacombinationofpla italincrease,issue640millionnewsh completedthecap onyuan. inissuance,raisesfundsof1.133billi directionalincrease 3.08billionyuan. Top10shareholdersandtheirshareholdings
NameofshareholderNumberofshares(10thousandshares)Proportionintotalshares(%)
HeilongjiangDazhengInvestmentGroupCo.,Ltd. 76,260.00 20.50
COFCOLimited 74,400.00 20.00
DaqingState-ownedAssetsManagementCo.,Ltd. 19,298.50 5.19
ShanghaiSIIC(Group)Co.,Ltd. 18,674.40 5.02
ShanghaiInternationalGroupAssetsManagementCo.,Ltd. 18,525.60 4.98
HeilongjiangTransportDevelopmentCo.,Ltd. 18,228.00 4.90
HeilongjiangGreatNorthernWildernessLandReclamationGroupCorporation 16,294.75 4.38
LiaoningHongchengPlasticProfileCo.,Ltd. 10,652.22 2.86
DaqingAolongRealEstateDevelopmentCo.,Ltd. 9,363.06 2.52
QiqiharMunicipalBureauofFinance 8,724.97 2.35
145 2011 Annual Report 146 hareholders Majors Corporationholds HeilongjiangGreatNorthernWildernessLandReclamationGroup ds186.744millionshares,accountingfor5.02%ofthe ShanghaiSIIC(Group)Co.,Ltd.hol s762.6millionshares,accountingfor engInvestmentGroupCo.,Ltd.hold HeilongjiangDazh millionshares,ac- ShanghaiInternationalGroupAssetsManagementCo.,Ltd.holds185.256 res,accountingfor HeilongjiangTransportDevelopmentCo.,Ltd.holds182.28millionsha entCo.,Ltd.holds192.985millionshares,accounting DaqingState-ownedAssetsManagem It or20.00%ofthetotalsharecapital. olds744millionshares,accountingf COFCOLimitedh ◆ ◆ ◆ ◆ ◆ ◆ ◆ listedcompanymainlyen- 4.90%ofthetotalsharecapital.Thecompanyisastate-ownedholding talis1.213billionyuan;the gagedinhighwaytoll,management,andconservation.Theregisteredcapi legalrepresentativeisSunYisong. ecompanyissubordinateto 162.9475millionshares,accountingfor4.38%ofthetotalsharecapital.Th usinessscopeincludingthe theLandReclamationBureauofHeilongjiangProvince,withthemainb lturalprocessing,theGroup agriculturalcultivation,breeding,seedproductionandmanagement,agricu andranked79inChinatop has15leadingenterprisesengagedinnationalandprovincialkeyindustries resentativeisSuiFengfu. 500enterprisesin2011.Theregisteredcapitalis6billionyuan;thelegalrep rtandexportcompanyaswellasapowerfulfoodmanufacturer, isChina'slargestgrainandfoodimpo theinternationalgrain,oilandfoodmarket,withoutstanding enjoyinganoutstandingreputationin edtopeople'slife,suchastradeinagriculturalproducts,biomass achievementsinthefieldscloselyrelat andprocessing,realestate,property,hotel,financialservicesand energydevelopment,foodproduction nterprisesoftheworld.Thecompanyisacorporateenterprise soon.Itranksamongthetop500e ustryandCommerceofthePeople'sRepublicofChina,The registeredinAdministrationforInd yfundedbytheStateundertheSASAC.Theregisteredcapitalis businesstypeisalargeenterprisesolel iveisNingGaoning. 312millionyuan;thelegalrepresentat ecompanyisanenterprisesolelyfundedbytheState,conduct- for5.19%ofthetotalsharecapital.Th ofstate-ownedassetsonbehalfoftheDaqingmunicipalgov- inginvestmentandassetmanagement billionyuan;thelegalrepresentativeisJinHongda. ernment.Theregisteredcapitalis1.7 enterprisesolelyfundedbyShanghaiSASAC,withthescopeof totalsharecapital.Thecompanyisan nt,domestictrade,andstate-ownedassetsoperationandman- businessincludingindustrialinvestme .Theregisteredcapitalis1.859billionyuan;thelegalrepresen- agementwithinthescopeofauthority tativeisTengYilong. yofShanghaiInternational countingfor4.98%ofthetotalsharecapital.Thecompanyisasubsidiar ervices,assetoperationand Group;themainbusinessscopeistocarryoutavarietyofinvestments gisteredcapitalis1.5billion managementservices,financialadvisoryandinvestmentconsulting.There yuan;thelegalrepresentativeisZhangXing. ompany, vestedstate-ownedlimitedliabilityc lshares.Thecompanyisasolely-in 20.50%ofthetota themain lgovernment'sfinancialinvestment, bodyfortheHeilongjiangprovincia servingasthemain ntanda orizedbytheprovincialgovernme nedfinancialassetmanagementauth bodyforstate-ow aregis- estmentandfinancingbusiness,with tformtocarryoutlocalfinancialinv comprehensivepla angHongtao. llionyuan.Thelegalrepresentative:W teredcapitalof1bi InformationonDirectors,Supervisors,SeniorExecutivesandEmployees
Directors
NameGenderPositioninOurBankReceivingSalaryWithIndividualshareholding
YangJinxian Male Chairman Yes No
LiZhuo Male Director Yes No
WuXiaohui Female Director No No
GuanXihua Female Director,President Yes Yes
XuZhihui Male Director,PresidentAssistant Yes No
SunYanmin Male Director No No
ZhangLei Male Director No No
HouPeiyao Male Director No No
JinHongda Male Director No No
LiuYipeng Male Director No No
QuZhentao Male IndependentDirector No No
DaiGenyou Male IndependentDirector No No
ChenRuoqing Male IndependentDirector No No AdirectorwholeftofficeinAugust2011
LiRuoshan Male IndependentDirector No No
Supervisors
NameGenderPositioninOurBankReceivingSalaryWithIndividualShareHolding
LiJiuchun Male StaffSupervisor Yes No
YangXiulin Male ViceSupervisor Yes Yes
XuJian Male ShareholderSupervisor No No
WangGuanru Male ShareholderSupervisor No No
JuChunyan Female StaffSupervisor Yes No
HuiXiaofeng Male ExternalSupervisor No No
LuanFeng Female ExternalSupervisor No No
147 2011 Annual Report 148 Harbinbranch OfficeofBoardofDirectors Riskcontrolmanagementdpartment SmallBusinessCreditCenter&IndividualBusiness ent,comprehensivedepartment Financialmarketdepartm partment "Agriculture,ruralareasandfarmers"BusinessDe hnologyDepartment OperationManagementDepartment,Science&Tec the ensiveworkofoperatingmanagement;inchargeof Presideoverthecompreh tment,andthebusinessdepartmentofthecompany capitalandfinancedepar VicePresident VicePresident VicePresident VicePresident PresidentAssistant PresidentAssistant SecretaryofBoardofDirectors Male Male Male Male Male Male Male Female GuanXihua ncharge Worki Position NameGender WangGuibin XuYonghui YangBaoren YuLiyong XuZhihui ZengQingfu LiRuiwen ives SeniorExecut andEmployees rExecutives isors,Senio ctors,Superv ationonDire Inform InformationonDirectors,Supervisors,SeniorExecutivesandEmployees
Directors'Resume YangJinxian,male,Hannationality,apartymemberofCPC,borninMarch1957,masterde- gree,senioreconomist,servedasformerDirectorofProgrammeFinanceDepartment,PresidentAs- sistant,VicePresident,VicePresidentandGeneralManagerofSalesDepartment,ExecutiveVice PresidentandmemberofthepartycommitteeofHeilongjiangBranchofIndustrialandCommercial BankofChina.HeisnowtheChairmanofLongjiangBank,theSecretaryofPartyCommittee. LiZhuo,male,Hannationality,apartymemberofCPC,borninSeptember1956,masterde- gree,servedasformerDeputyDirectoroftheWorldBankofProvincialFinanceDivision,Deputy DirectorofInternationalFinanceDivision,ViceChairmanofHeilongjiangDazhengInvestment GroupCo.,Ltd.HeisnowDirectorofLongjiangBank. WuXiaohui,female,Hannationality,apartymemberofCPC,borninJanuary1961,masterde- gree,senioraccountant,servedasformerFinanceDirectorofFinanceDivisionofCOFCOGroup. SheisnowservedchiefaccountantandgeneralmanagerofFinanceDivisionofCOFCOGroup,and DirectorofLongjiangBank. GuanXihua,female,Manchu,apartymemberofCPC,borninMay1963,masterdegree,senior economist,servedasformerVicePresidentofBankofCommunicationsDaqingBranch,memberof thePartyCommittee,ChairmanandofDaqingCommercialBankandSecretaryofthePartyCom- mittee.RoutineVicePresidentofLongjiangBank,memberofthePartyCommittee,Sheisnowthe ExecutiveDirectorandPresidentofLongjiangBank,theDeputySecretaryofPartyCommittee. XuZhihui,male,Hannationality,apartymemberofCPC,borninMay1961,bachelordegree. Heeverservedasstandingdeputyeditor-in-chiefofthemagazine"Investment"(TouZiZongHeng) oftheHeilongjiangBranch,ChinaConstructionBank,deputypresidentofHeilongjiangBranch, ChianInvestmentBank,anddeputypresidentofHarbinBranch,ChinaInvestmentBank,servedas formerGeneralManagerofHarbinCommercialBankCorporateFinance,PresidentAssistant,Vice PresidentofHeilongjiangDazhengInvestmentGroupCo.,Ltd..HeisnowtheExecutiveDirector andPresidentAssistantofLongjiangBank. SunYanmin,male,Hannationality,apartymemberofCPC,borninJune1966,bachelorde- gree,servedasformerDeputyDirectorofFinanceDepartmentChinaNationalFoodstuffsGroupCo. (CNFG)oftheHongKong,GeneralManagerofCOFCOInternationalFinanceDepartment,Current, HeistheGeneralManagerofCOFCOFinanceCompanyLimitedandDirectorofLongjiangBank. ZhangLei,male,Hannationality,apartymemberofCPC,borninSeptember1968,doctorde- gree,senioreconomist,servedasformerdeputymanagerofCustomerAssetManagementDepartment ofShenyinWanguoSecuritiesCo.,Ltd.,headofbusinessgroupofwarrantsandderivatives,Heis
149 2011 Annual Report 150 de- CPC,borninApril1958,bachelor Hannationality,apartymemberof HouPeiyao,male, partymemberofCPC,borninJuly1962,bachelordegree, JinHongda,Male,Huinationality,a partymemberofCPC,borninSeptember1968,master LiuYipeng,male,Hannationality,a partymemberofCPC,borninJanuary1957,doctorde- QuZhentao,male,Hannationality,a partymemberofCPC,borninJanuary1950,bachelorde- DaiGenyou,male,Hannationality,a inJune1951,master ChenRuoqing,male,Hannationality,apartymemberofCPC,wasborn uary1949,doctorde- LiRuoshan,male,Hannationality,apartymemberofCPC,borninFebr lInvest- ceDepartmentofShanghaiIndustria eneralManagerofPlanningandFinan nowtheDeputyG Ltd.andDirectorofLongjiangBank. ment(Group)Co., longjiang ricultureDevelopmentOfficeofHei ist,servedasformerDirectorofAg gree,senioreconom eneralof ndReformCommission,DirectorG Bureau,DirectorofDevelopmenta LandReclamation heGreat eisnowtheGeneralManageroft hofBureauofLandReclamation,H MudanjiangBranc onGroupCorporationandDirectorofLongjiangBank. NorthernWildernessLandReclamati DeputyChiefoftheFinanceBureauofDaqing,Presidentof senioreconomist,servedasformer ofDaqingFinancialInvestmentEvaluationCenter,Heisnow DaqingCommercialBank,Director AssetsOperationCo.,Ltd.andDirectorofLongjiangBank. theChairmanofDaqingState-owned GeneralManagerofOperationCo.,Ltd.ofShanghaiInterna- degree,economist,servedasDeputy ralManagerofOperationCo.Ltd.ofShanghaiInternational tionalGroup.HeisnowtheGene Group,DirectorofLongjiangBank. tary,PresidentofHeilongjiangFinancialJuniorCollege,Heis gree,professor,servedasPartySecre retaryofHarbinUniversityofCommerce,theIndependentDi- nowthePresident,DeputyPartySec rectorofLongjiangBank. erDirectorofMonetaryPolicyDivisionandSecretary-General gree,senioreconomist,servedasform alofCreditAdministration ofMonetaryPolicyCommitteeofPeople'sBankofChina,DirectorGener LongjiangBank. Bureau,DirectorofCreditCenter.HeisnowtheIndependentDirectorof ShanghaiOfficeofChina degree,economist.Heeverservedassecretaryandgeneralmangerofthe ardofJiangnanShipbuild- HuarongAssetsManagementCo.,Ltd.,actedasdeputychairmanofthebo orofChinaHuarongAssets ingandShanghaiTextileHoldingGroup,thegeneralmanagerleveinspect aiInnovationCenterFund ManagementCo.,Ltd.,thedirectorofthepreparationgroupofShangh kinAugust2011. Company.HebegantoserveastheIndependentDirectorofLongjiangBan ssociateDeanofSchoolof gree,professor,tutorofPh.D.students,servedasformerVicePresident,A fManagement,FudanU- Economics,XiamenUniversity,DeanofDepartmentofFinance,Schoolo DirectorinAugust2011. niversity,anIndependentDirectorofLongjiangBank.Helefthisofficeasa andEmployees rExecutives isors,Senio ctors,Superv ationonDire Inform InformationonDirectors,Supervisors,SeniorExecutivesandEmployees
Supervisors'Resume LiJiuchun,male,Hannationality,apartymemberofCPC,borninSepetember1952,bachelor degree,directoroftheHeilongjiangSystemReformOfficeIndustryandMarketSystem,assistantin- spector,directoroftheHeilongjiangFinancialWorkLeadingGroup,director-generalofHeilongjiang RuralCreditCooperatives,andsecretaryofthePartyCommittee.SinceJune2011,hehasservedas supervisorofLongjiangBank,isproposedtoactasthesupervisorgeneralofLongjiangBank,withthe qualificationstobeverifiedbythesupervisiondepartment. YangXiulin,male,Hannationality,apartymemberofCPC,borninFebruary1950,bachelor degree,economist,servedasformerDeputyChiefofFinancialManagementDepartment,Chiefof ComprehensivePlanDepartmentofMudanjiangBranchofPeople'sBankofChina,ViceDirector, DirectorandPartySecretaryofMudanjiangCreditCooperativeUnion,ChairmanandPartySecretary ofMudanjiangCommercialBank.HeisnowViceSupervisor-GeneralofLongjiangBank. WangGuanru,male,Hannationality,apartymemberofCPC,borninApril1979,bachelorde- gree,servedasformerFinancialSupervisorofLiaoningHongchengPlasticCo.,Ltd.,Heisnow DeputyGeneralManagerofLiaoningHongchengPlasticCo.,Ltd.,SupervisorofLongjiangBank. XuJian,male,Hannationality,apartymemberofCPC,borninSeptember1970,bachelorde- gree,accountant,servedasformerDeputyDirector-GeneralofBudgetDivisionofQiqiharMunicipal BureauofFinance,DirectorofFinanceCadreTrainingCenterandDirectorofBudgetDivision.Heis nowDeputyInvestigatorandDirector-GeneralofBudgetDivisionofQiqiharMunicipalBureauof Finance,SupervisorofLongjiangBank. JuChunyan,female,Hannationality,apartymemberofCPC,borninJuly1972,bachelorde- gree,economist,servedasformerViceDirectorofDongjinCreditCooperativesofQitaiheCity,Vice DirectorofHuixiangCityCreditCooperatives,ViceDirector,directorFinanceDepartmentofUrban CreditCooperativesUnionofQitaihecity,ManagerofCapitalandFinanceDepartmentofCity CreditCooperatives.SheisnowVicePresidentXiangjianBranch,Hrbin,ofLongjiangBank,and StaffSupervisorofLongjiangBank. HuiXiaofeng,male,Hannationality,apartymemberofCPC,borninNovember1957,doctor degree,professor,tutorofPh.D.students,servedasformerDeputyDirectorofthefacultyofEconomy andManagementofHarbinInstituteofTechnology,HeisnowProfessorofthefacultyofEconomy andManagementofHarbinInstituteofTechnology,anExternalSupervisorofLongjiangBank. LuanFeng,female,Hannationality,apartymemberofCPC,borninOctober1966,bachelor degree,AssociateProfessor,lawyer,servedasformerChiefofFacultyDivisionofOfficeofAcademic AffairsofMudanjiangUniversity,AssociateProfessorinEducationofLawDepartment(obtaining Lawyer'sQualificationCertificateinApril1992,currentlyregisteredintheBeijingZhongfuLaw Firm.)SheisnowanExternalSupervisorofLongjiangBank.
151 2011 Annual Report 152 shall asicinformationondirectors,which informationprovidedintheaboveb GuanXihua,with elor CPC,borninSeptember1958,bach e,Hannationality,apartymemberof WangGuibin,mal partymemberofCPC,borninFebruary1965,masterde- XuYonghui,male,Hannationality,a apartymemberofCPC,borninSeptember1963,bachelor YangBaoren,male,Hannationality, partymemberofCPC,borninJuly1974,doctordegree, YuLiyong,male,Hannationality,a dintheabovebasicinformationondirectors,whichshallbe XuZhihui,withinformationprovide ,borninAugust1967,masterdegree,servedasGeneral ZengQingfu,male,Hannationality vember1959,bachelor LiRuiwen,male,Hannationality,apartymemberofCPC,borninNo anaverageageof34.2 Asoftheendof2011,ouremployeesreachedatotalof4,137people,with Employees ivesResume SeniorExecut ofParty kinJune2011,theDeputySecretary heservedPresidentofLongjiangBan beomittedhere.S Committee. Secretary. fQiqiharCommercialBank,Party untant,servedasformerChairmano degree,senioracco gBank,theMemberofPartyCommittee. HeisnowVicePresidentofLongjian erDirector-General,PartySecretaryofJiamusiBranchofHei- gree,senioreconomist,servedasform u.HeisnowVicePresidentofLongjiangBank,theMemberof longjiangBankingSupervisionBurea PartyCommittee. hairman,PartySecretaryofUrbanCreditCooperativesofQi- degree,economist,servedasformerC LongjiangBank,theMemberofPartyCommittee. taiheCity.HeisnowVicePresident PresidentofDaqingCityCommercialBank.HeisnowVice AssociateProfessor,servedasformer berofPartyCommittee. PresidentofLongjiangBank,theMem istantofLongjiangBank. omittedhere.HeisnowPresidentAss Assistant,PresidentAssistantofDaqingCommercialBank.Heis ManagerassistantofCOFCOFinance nowPresidentAssistantofLongjiangBank. chofIndustrialandCom- degree,senioreconomist,servedasformerVicePresidentofQiqiharBran partment,GeneralManager mercialBank,OfficeDirector,GeneralManagerofCreditManagementDe ommercialBankofChina. ofCreditApprovalDepartmentofHeilongjiangBranchofIndustrialandC HeisnowSecretaryoftheBoardofLongjiangBank. eeorabove,accountingfor years.Amongallemployees,thereare178peoplewiththemaster'sdegr ,accountingfor57.23%of 4.30%ofthetotalnumberofstaff;2,368peoplewithundergraduatedegree tingfor29.47%ofthetotal thetotalnumberofstaff;1,219peoplewithjuniorcollegedegree,accoun ntingfor9.00%ofthetotal numberofemployees;372peoplewithtechnicalsecondaryschool,accou numberofstaff. andEmployees rExecutives isors,Senio ctors,Superv ationonDire Inform LongjiangBankOrganizationStructure
153 2011 Annual Report 154 rs ofShareholde ralMeeting ctiontoGene Introdu nnualGeneralMeetingofShareholders. OnJune28,2011,weheldthe2010A 1FirstInterimGeneralMeetingofShareholders. OnAugust14,2011,weheldthe201 2011SecondInterimGeneralMeetingofShareholders. OnDecember17,2011,weheldthe ichthere lmeetingsofshareholders,amongwh gperiod,theBankheldthreegenera Duringthereportin eholders, woInterimGenralMeetingsofShar eneralMeetingofShareholdersandt wasoneAnnualG erformed ourworkreports.Variousmeetingsp ptedtheeightproposals,listenedtof consideredandado hts.The ldersparticipateandexercisetheirrig alproceedingstoensurethatshareho theappropriateleg opinion. ZeJunLawOffice,andissuedalegal fShareholderswerewitnessedbyJun GeneralMeetingo Brieflythesituationisasfollows: 2011ReportonWorkofBoardofDirectorsofLongjiangBankCorporation
2011ReportonWorkofBoardofDirectorsofLongjiang BankCorporation
In2011,theBoardofDirectorsoftheBankseriouslyimplementedthenationalmacroeconomicand financialpoliciesandtheregulatoryrequirements,withthemeticulousmanagementasthetheme, continuouslyimprovementedcorporategovernance,andcontinuedtostrengthenriskmanagement andinternalcontrol,andmaintainedafastdevelopmenttrendinacomplexandchangingenviron- ment.Aftertheauditing,in2011,theBankachievedanetafter-taxprofitof1.119billionyuan(the Groupcriteria,thesamebelow),anincreaseof196.82%overthepreviousyear;thereturnonassets was0.95%,upby0.34percentagepointsoverthepreviousyear;areturnonnetassetswas21.39%, increaseby10.28percentagepointsoverlastyear,withasustainedincreaseinshareholderreturns;total assetsreached153.019billionyuan,anincreaseof84.12%overthepreviousyear,thescaleofopera- tioncontinuedtosteponanewlevel;whichachievedanewbreakthroughs;thedepositbalance reached93.373billionyuan,anincreaseby26.697billionyuanoverthebeginningoftheyear,repre- sentinganincreaseof40.04%overthepreviousyear;theincrementandgrowthratewererankedat thetopofthesameindustryinHeilongjiangProvince;theloanbalancewas25.676billionyuan,an increaseof5.515billionyuan,andanincreaseof27.35%,whichwascontrolledwithinthecreditscale approvedbythePeople'sBank;boththebalanceandproportionofnon-performingloanscontinu- ouslydecreasing,amongwhichtherejectionratiofellto0.83percent;theassetqualityimproved steadily;itachievedthesuccessfulcompletionofacapitalincrease,adjustedtoincreasetheregistered capital;attheendoftheyear,thecapitaladequacyratioandcorecapitaladequacyratioreached 12.21%and11.85%respectively;thecapitalstrengthfurtherenhanced,theannualbusinessplancom- prehensivelyoutperformed;allthemajorregulatoryindicatorshadmetthestandards.Themainwork ofBoardofDirectorsin2011isasfollows: IPromotestrategiclanding,achievethesounddevelopment In2011,theBoardofDirectorgavefullplaytothestrategicmanagementrole,seizedthefocal pointofthewholebank,andactivelypromotedtheimplementationofdevelopmentstrategies.Italso vigorouslypushedforwardtheconstructionofmodernagricultureindustrialbank.In2011,thewhole bankhadnewagriculture-relatedloanswhichaccountedfor43.73%ofallthenewloans,the "Huinonglian"productwonthe"BankingFinancialInstitutionsSmallBusinessFinancialServicesFea- turesProductAward"andthe"2011NationalFinancialInstitutionsBestInnovativeAchievement AwardForServingThreeAgricultures".Inordertoprovidesmallandmicroenterprisefinancialser- vicesinarefinedanddetailedway,afterconsiderationbytheBoardofDirectors,thebankdecidedto
155 2011 Annual Report 156 rdofDirectorsinastandardway,withthedeci- IICarryouttheworkoftheBoa ofArticlesofAssociationoftheLongjiangBankCo.,Ltd. In2011,accordingtotheprovisions rservices nhancingtheprofessionallevelofou sinessfranchiseorganization,furthere establishasmallbu e"2011 smallmicro-creditproductswonth oenterprises."Longyidai"seriesof forsmallandmicr creating ilityAward".Wesparednoeffortsin ceInstitutionsBestSocialResponsib ChineseMicrofinan sforthe providingconvenienceandbenefit CommunityBankingServiceBrand the"Xiaolongren" cialser- theBankinthefieldofpersonalfinan herenhancedthecompetitivenessof people,havingfurt manage- orsattachedgreatimportancetothe iddevelopment,theBoardofDirect vices.Withtherap terminedtobetheyearfinemanagement,improvingthe"6S" mentlevel,withtheyearof2011de econstructionofITsystems,establishingtheriskmanagement managementsystem,strengtheningth -making,management,implementation,andoperation,the systemcomposedoftheriskdecision havingachievedtheISO9001internationalstandardcertification functionsofthedifferentlevels,and ionforthelong-termhealthydevelopmentofthewholebank. qualifications,whichlaidthefoundat ttachedgreatimportancetothebuildingofenterpriseculture.By TheBoardofDirectorsoftheBanka ouspartiesonthebasisofextensiveresearchin2011,ithasre- bringingtogetherthewisdomofvari resystemwhichembodiesthespiritofthetimes,isrichinthe finedandformedtheenterprisecultu tablishedtheBank's"inclusive,responsible,efficient,andprofes- featuresofLongjiangBank,havinges eculturalfoundationforthedevelopmentofthewholebank. sional"corevalues,thushavinglaidth stantly sion-makinglevelenhancingcon ork,theBoardofDirectorshadconvenedthreegeneralmeeting andincombinationwiththeactualw wasoneAnnualGeneralMeetingandtwoInterimGeneral ofshareholders,amongwhichthere lssuchasthe"Proposalon MeetingofShareholders,consideredandadoptednineimportantproposa reaseinregisteredcapital", LongjiangBank2011CapitalIncreaseandShareExpansionaswellasInc the"ProposalontheAp- theProposalontheAmendmentstotheBank'sArticlesofAssociation,and ofDirectors,inaccordance pointmentofMr.ChenRuoqingasIndependentDirector".TheBoard holders,carriedoutserious withourconstitutionandauthorizationofthegeneralmeetingofshare plementationofthedeci- discussionandconsiderationonmatterswithintheirpower,withthefullim dmeetingstoconsiderthe sion-makingresponsibilities.TheBoardofDirectorsconvenedsixboar 2010annualaccountspro- Bank's2011annualbusinessplans,profitdistributionplan,21proposalsof playedtheroleofscientific grams,listenedto4businessreportsonthebusinesswork.Iteffectively izationofthewholebank's decision-makingandstrategicmanagement,guidesandpromotesthereal reachedthegoalthatop- rapidandhealthydevelopment.Theoverallcompetitivenesswasrising,and aytothespecialcommittee erationalefficiencyandshareholdervaluecontinuedtogrow.Itgavefullpl edtoimprovethestanding oftheBoardofDirectorindecision-makingandconsultationandcontinu tion ankCorpora fLongjiangB fDirectorso rkofBoardo eportonWo 2011R 2011ReportonWorkofBoardofDirectorsofLongjiangBankCorporation
ordersofthespecialcommitteeoftheBoardofDirectors,formulatinganactionplanatthebeginning oftheyearandconscientiouslyimplementingitwithintheyear,whichimprovedthework'splanning andcoordination.Therewere12meetingsofthespecialcommitteeoftheBoardofDirectororga- nizedthroughouttheyear.Amongthem,thereweretwomeetingsfortheStrategicPlanningCom- mittee,twomeetingsfortheNominationandRemunerationCommittee,fourmeetingsforRisk ManagementandRelatedTransactionControlCommittee,andfourmeetingsfortheAuditCom- mittee,havingexaminedatotalof16varioustypesofproposalsandlisteningtosixreports.Inviewof thechangesinsomedirectors,theBoardofDirectors,onaccordancewiththeArticlesofAssociation andRulesofProcedureoftheBoard,adjustedrelevantspecialcommitteesinatimelymanner,soasto ensurethatallspecialcommitteeswouldplayaneffectiverole. IIIEnhancethelevelofcapitalmanagement,andsuccessfulcompletetheworktoin- creasetheinvestmentandexpandtheshare Tomeettheactualoperatingneedsandensurethecapitaladequacyratiotoremainatthescien- tificandrationallevel,theBoardofDirectorsoftheBank,inaccordancewiththerelevantprovisions oftherelevantstatelawsandregulationsandtheArticlesofAssociation,in2011,itcarriedoutthe workofincreasingtheinvestmentandexpandingtheshare,andadjustingtoincreasetheregistered capital,andultimatelyitallottedthesharesto15originalcorporateshareholders,madetheadditional shareissuetailedfortwonewinvestors,withthenewsharecapitalof640millionsharesandraising 1.133billionyuanoffunds.Thecapitalincreasewascompletedbeforetheendof2011,theBank's registeredcapitalincreasedto3.72billionyuanfrom3.08billionyuan.Atthesametimeofenhancing thecapitaladequacy,itintroducedtheinvestorssuchasChennengGroupLongjiangTraffic,andsoon whichareenterprisegroupswithstrongstrengthintheprovince,thusfurtherimprovingtheowner- shipstructure.Whilecarryingouttheworkofincreasingtheinvestmentandexpandingtheshareand thecapital,thebankstrivedtoenhancetheendogenouscapitalaccumulationcapacity,asoftheendof 2011,thetotalamountofthebankcapitalhadreached6.295billionyuan,whichwasnearlydoubled comparedwithitsinception,providingastrongcapitalprotectionforthefuturedevelopment. IVStrengthencorporategovernanceinfrastructure,furtherimprovetherulesand regulations Inearly2011,accordingtothelatestchangesinregulatoryrequirementsandtheactualworkof thebank,theBank'sBoardofDirectorsconscientiouslysummeduptheexperienceincorporategov- ernance,carriedouttheworkoftheamendmentstotheArticlesofAssociation.Intheprocessofa- mendingtheconstitution,thebankwidelysolicitedopinionsandsuggestionsofthepartiesinsideand outsidethebank,inthespiritofcompliance,applicability,followingthenewstandards,beingstan- dardized,andprudenceduringtheamendment,itcarriedouttheworkthroughcommunicationwith
157 2011 Annual Report 158 the rtofcorporategovernance.In2011, tionmanagementisanimportantpa Therelatedtransac sureofinformation,establishagoodimageofthe VEarnestlydowellinthedisclo ntedthevariousregulatoryrequirements,madethedisclo- In2011,theBoardearnestlyimpleme partments,withthe VIStrengthencontactsandcommunicationwiththeregulatoryde equirementsofannual In2011,theBoardofDirectorsoftheBankseriouslyimplementedther dedand heArticlesofAssociationwereamen madereports,finally,54articlesint variouspartiesand lGeneral eredandadoptedinthe2010Annua sedArticlesofAssociationwasconsid perfected.Therevi toryau- oval.Underthesupportoftheregula totheregulatoryauthoritiesforappr Meeting,reporting wasap- eArticlesofAssociationofthebank withtheurgentneedtomodifyofth thorities,theterms provedsmoothly. strengthentherelatedtransactionmanagement,whichwouldbe BoardofDirectorsoftheBankwould ghouttheyear.Inordertostandardizetherelatedtransaction regardedasanimportantworkthrou effectivelycontroltheriskofrelatedtransactions,afterthecon- managementofLongjiangBankand dRelatedTransactionControlCommitteeoftheBoardofDi- siderationoftheRiskManagementan eypassedtheMethodsoftherelatedtransactionsmanagementof rectorsandtheBoardofDirectors,th lebank'srelatedtransactionmanagementlevelwasimproved. "LongjiangBank",asaresult,thewho Bank strictaccordancewithstandardizedprocedures,hadanaccurate sureofinformationtotheoutsidein gandscale,andnicelycompletedthepreparationanddisclosure graspofthedisclosurecontent,timin henmarketdiscipline,standardizetheinformationdisclosurebe- ofthe2010annualreport.Tostrengt theinformationdisclosureistrue,accurate,completeandtimely, haviorofthebankandtoensurethat materightsandinterestsofdepositorsandstakeholders.In2011, thuseffectivelysafeguardingthelegiti sandregulations,andtherelevantprovisionsoftheCBRC, inaccordancewithrelevantstatelaw onsideredandadoptedthe combinedwiththeactualsituationofthebank,theBoardofDirectorsc rtherregulatedtheinfor- "LongjiangBankInformationDisclosureManagementMeasures",whichfu ,andcomparabilityofthe mationdisclosuremanagement,andenhancedtheaccuracy,completeness Bank'sinformationdisclosure. fullimplementationoftheregulatoryrequirements BankingBureau,withfull regulatoryadviceandprudentialsupervisioninterviewsoftheHeilongjiang uarterly,theBoardofDi- effortstopromotethescientific,steadydevelopmentofthewholebank.Q theRiskManagementand rectorslistenedtothecompletionofthevariousmonitoringindicators, viewsoftheregulatoryde- RelatedTransactionsCommitteeoftheBoardofDirectorslistenedtothe ortaccordingtothetopics, compositionimplementationandtheimplementationandrectificationrep romotedtheimplementa- andputforwardtheworkrequirementsinthenextphase,whichfurtherp tion ankCorpora fLongjiangB fDirectorso rkofBoardo eportonWo 2011R 2011ReportonWorkofBoardofDirectorsofLongjiangBankCorporation
tionofthevariousregulatoryviews. VIIEarnestlyfulfillitsownresponsibilities,completevarioustaskswithintegrityand diligence In2011,theDirectorsstrictlyfollowedtheprovisionsofthelaws,regulationsandarticlesofasso- ciation,performedtheirdutiesdiligently,conductedcautiousscientificdecision-making,safeguarded theinterestsoftheBank,andensuredthatthebusinessconductoftheBankcomplieswithrequire- mentsofnationallaws,administrativeregulations,rules,andthestate'seconomicpolicy,andcon- sciouslyacceptthesupervisionoveritsdutiesbytheSupervisoryBoard.TheDirectorspresentedatthe meetingontime,activelyexpressedtheirviewsonproposals,reflectingastrongsenseofresponsibility andgoodprofessionalism.Surroundingthedevelopmentstrategicandoperationalplans,theexecutive directorswerediligent,responsible,madethescientificplanningandimplementationofthestrategic decisionsofthewholebank,seriouslydidthemanagementwork,andfullycompletedtheannual businesstargetsandstrategicplanningdevelopedbytheBoardofDirectors;thenon-executivedirec- torstriedtheirbest,andactivelymadecarefulstudyonmattersconcernedbytheBoardofDirectors; andincombinationwiththeBank'sdevelopmentstrategyandoperatingmanagementneeds,they madeanalysistoexploretherelatedissuesandputforwardtheirvaluablecommentsandsuggestions, playinganactiveroleinpromotingthescientificdevelopmentandsteadyoperationoftheBank;the independentnon-executivedirectorsoftheBankgavefullplaytotheprofessionaladvantages,actively offeradviceandsuggestionsforourstrategicdevelopment,riskcontrol,compensationmanagement, etc.andinsistedonanindependent,objectiveexpressionoftheirviewsandactivelyprotectthesmall andmediumshareholders'interests. In2011,theBoardofDirectorsoftheBankwasdiligentandpragmatic,withthepioneering spirit,theyfullyimplementedthevariousduties.In2012,theBoardwillcontinuethefullimplemen- tationoftherequirementsofnationalmacro-controlpoliciesandregulatoryauthorities,effectively enhancetheforward-lookingnatureandinitiativenatureofwork,andactivelyrespondedtochanges intheexternaloperatingenvironment,basedontheprogresswhilemaintainingstability,andsought thebettermentintheprogress,continuouslyupgradedthelevelofdecision-makingefficiencyand enhancedriskawarenessandenhancedthedevelopmentquality,improvedtheoperatingmanagement, promotedthestrategiclanding,improvedtheinformationdisclosuremanagement,enhancethein- vestorrelations,upgradedthelevelofcapitalmanagement,andcontinuouslyimprovethecorecom- petitivenessandsustainableprofitability,withagreaterstridetothestrategicobjectiveofbuildinga world-classmodernagriculturalindustrialbank.
159 2011 Annual Report 160 ration BankCorpo IThemainworkin2011 rwardtheworkoftheBoardofSupervisors (I)Furtherclarifytheposition,pushfo hecorporategovernancestructure,theBoardofDirectors, Withtheconstantimprovementoft eardutiespositioning. 1In-depthinvestigationandstudy,cl edcommunicationwiththeBoardofDirectorsandsenior TheBoardofSupervisorsstrengthen iang fSupervisorsofLongj tonWorkofBoardo 2011Repor mbersof rsandseniormanagement,alltheme trongsupportoftheBoardofDirecto In2011,withthes ualwork nceandinaccordancewiththeann rvisorsunitedasone,withduedilige theBoardofSupe ,andeffectivelyplayedtheroleoftheBoardofSupervisorsin plan,carriedoutthein-depthwork results. corporategovernance,hasmadegood fSupervisors,respectively,playanimportantroleintheBank's seniormanagement,andtheBoardo onitoringprocessrelatedwiththeimportantmatters.Invarious decision-making,implementation,m orsregardedseekingtheBank'sbetterandfastersustainablede- kindsofwork,theBoardofSupervis aysadheredtotheconceptof"beinginplacewithoutcrossing velopmentasthetoppriority,hadalw n".WithoneheartandonemindwiththeBoardofDirectors theline,putserviceinthesupervisio eachotherjustlikeinthesameboat,providedgoodservice andseniormanagement,wehelped liancethroughsupervision,safeguardedthehealthydevelopment throughsupervision,promotedcomp throughsupervision. hasJiamusi,Hegang,and management,conductedtheinvestigationandresearchatbasiclevelssuc inguseoftheopportunity understoodthefirst-handinformationatthebasiclevel,especiallybymak wideorganizedbytheOr- oftheBoardofSupervisorsSeminarforSomeFinancialInstitutionsNation uslearningandexploration ganizationDepartmentoftheCentralCommitteeoftheCPCforcontinuo alsituationofourbankand aswellaslearningfromtheirexperience,andincombinationwiththeactu sandresponsibilitiesofthe theworkbasisoftheBoardofSupervisors,itfurtherclarifiedthefunction thecenter,theresumption BoardofSupervisorsoftheBank,thatis,withthefinancialsupervisionas ,compliantoperationand andsupervisionofdirectors,seniormanagementanditsmembersasthestress tastheorientation,imple- supervisionasthebasis,riskmanagementandinternalcontrolmanagemen onsibilities,andpromoting mentingtheeffectivecorrectionanderrorcorrection,fulfillingvariousresp sofdutyperformancewas theBank'ssustainedandhealthydevelopment.Suchpositioningandmean edamongtheseniorman- clarifiedinthemeetingoftheBoardofSupervisors,withanoticecirculat agementandwasfurtherimplementedinpracticalwork. ration gBankCorpo sofLongjian fSupervisor rkofBoardo eportonWo 2011R 2011ReportonWorkofBoardofSupervisorsofLongjiangBankCorporation
2ConvenemeetingsoftheBoardofSupervisorsincompliancewithlawsandregulationsand properlycarryoutthedutiesoftheBoardofSupervisors. In2011,weseriouslyimplementedtheworkingspiritof"beingbasedonthelocaleconomy,ad- heringtoriskbottomline,improvingfinancialservices,andrealizingscientificdevelopment"putfor- wardbytheBankingRegulatoryCommissionforthecitycommercialbanks,withthe"meticulous managementyear",'improvingandinnovatingyear'astheworktheme,seriouslyfulfilleditsintegrity anddiligenceobligations.Thesupervisorsactivelyofferedadviceandsuggestions,throughthecon- veningoffourworkingmeetingsoftheBoardofSupervisors,onespecialmeetingoftheAuditCom- mitteeandonespecialmeetingoftheNominationCommittee,carefullyconsidered12issuessuchas the"2010AnnualReportoftheBoardofSupervisors",the"2011WorkPlanoftheBoardofSuper- visors",andsystematicallysummarizestheworkofBoardofSupervisorsin2010,madetheoverallplan fortheworkin2011,completingvariousdiscussionsbyguaranteeingbothqualityandquantity. 3Attendthegeneralmeetingofshareholdersaccordingtolaw,attendboardmeetingsasa non-votingparty,withtheeffectiveexerciseofsupervisoryfunctions. In2011,membersoftheBoardofSupervisorsattendedtheAnnualGeneralMeetingofShare- holdersandtwoInterimGeneralMeetingsofShareholdersheldbytheBank,carefullyreviewedthe meetingdocumentsandthemotion,checkedthelegalityandcomplianceoftheconveningprocedures andtheproposalvotingofthemeetings,andreportedonthefourissuessuchastheBoardofSupervi- sors'annualworksituation,theevaluationresultsofthedirectorsandsupervisors.Themembersofthe BoardofSupervisorsattendedallthe(six)meetingsasanon-votingpartyheldbytheBoardofDi- rectorsoftheBankandparticipatedinthestudiesanddiscussionaboutmodifyingtheArticlesofAs- sociation,thedistributionofprofits,capitalsupplementyandotherissues,withthesupervisionover whethertheconveningproceduresandvariousproposalsoftheboardmeetingsliveduptotheinter- estsofthemajorityofshareholdersandthebankaswellastheperformanceoftheproposals,providing theconstructivecommentsontheBank'sbusinessdevelopment. 4Strengthenself-construction,improvetheorganizationalstructure,laythefoundationforbring theroleoftheBoardofSupervisorsintobetterplay. In2011,inaccordancewiththerelevantprovisions,reviewedthroughtheworkingmeetingof theNominationCommitteeoftheBoardofSupervisors,theworkingmeetingoftheBoardofSuper- visors,andthegeneralmeetingofshareholders,wecompletedthechangesinshareholdersandsuper- visorsincompliancewithlawsandregulations,andselectedthedirectoroftheBoardofSupervisors andreportedfortheapprovaloftheBankingRegulationBureauofHeilongjiangProvince.Theim- plementationofthisworkperfectedtheorganizationalstructureoftheBoardofSupervisors,laidthe foundationfortheBoardofSupervisorstoplayaneffectiveroleincorporategovernance.
161 2011 Annual Report 162 ceinthesupervision oints,actuallyimplementingtheservi (II)Stressthekeyp ual tsanddowellintheevaluationofann mplementtheregulatoryrequiremen 1Conscientiouslyi re- annualdutyperformanceevaluation ofSupervisorscompletedthe2010 In2011,theBoard strengthenthecreditandfinancialsupervision. 2Strengthenthecentralwork,further BoardofDirectorsofficeoftheBank,riskcontrol,capital (1)TheBoardofSupervisorsandthe usrisks.TheBoardof (2)Adheretothesupervisionanddirection,andstrictlycontrolthevario seniormanagement. establishtheconversationsystemwith dutyperformance, 0an- givingobjectiveevaluationfortheir201 ndseniormanagementrespectively, portsfordirectorsa eirwork forwardthesinceresuggestionsforth igentdutyperformance,andputting nualhonestanddil s'pointofview.Onthebasisofcompletingtheabovework,ac- in2011fromtheBoardofSupervisor ngthePerformanceofDirectorsofCommercialBanksissuedby cordingtoPilotMeasuresforEvaluati ission(DecreeNo.7of2010)andtheregulatoryrequirements theChinaBankingRegulatoryComm combinationwiththeconcretepracticeoftheBank,wedevel- oftheProvincialBankingBureau,in gulationsofEvaluationMethodforthePerformanceofDirec- opedthe"DetailedImplementationRe gjiangBankCo.,Ltd.".In2012,wewillfurtherrefinethee- torsbytheBoardofSupervisorsofLon torsinaccordancewiththisdetailedregulation.Meanwhile,in valuationoftheperformanceofdirec entsandworkingpracticesofdomesticmediumandsmall accordancewithregulatoryrequirem ervisorsestablishedaconversationsystemwithseniormanage- joint-stockbanks,theBoardofSup mplementation. ment,andissuedadocumentforthei rtifiedPublicAccountantsstrengthenedcommunication,kept financialdepartmentsandLixinCe deredtheBank's2010annualauditreport,theprofitdistribution abreastof,seriouslystudiedandconsi ervisors;paidsustainedattentiontoadjustmentprogressineight plan,issuedviewsoftheBoardofSup uditDepartment,itcom- majorissuesraisedbytheaccountingfirm;inclosecoordinationwiththeA esident,andparticipatedin pletedtheauditworkofthepost-leavingoftheBank'sExecutiveVicePr regularauditonsomeofthebranchesinHarbinCity. esofrisksmainlyincluding Supervisorshasalwaysregardedthepreventionandcontrolofvarioustyp ,withthepreventionand thecreditasthemostimportanttask.First,organizetheon-siteinspection riskmanagementandcon- controlofcreditrisk.InMarch2011,withheadofficecreditmanagement, -siteexaminationforthe troldepartment,weconstitutedtheinspectionteam,andconductedtheon tersofgovernmentfinanc- implementationof"threeapproachesandoneguidance",resolvingthemat temforbranchesin12re- ingplatformloans,andtheimplementationofthecreditmanagementsys iction,understoodthesit- gionsandcitiesandsub-branchesin10citiesinHarbinunderitsfulljurisd therectification,effectively uation,foundproblems,andpaidcloseattentiontoandtimelyfollow-up Smanagementandreport strengtheningthepreventionandcontrolofcreditrisk.Second,inthe6 ration gBankCorpo sofLongjian fSupervisor rkofBoardo eportonWo 2011R 2011ReportonWorkofBoardofSupervisorsofLongjiangBankCorporation
meetingofthewholebank,itputforwardtheopinionsanddemandsofthesupervisionandmanage- mentaboutriskawareness,checkingrisk,andstrengtheningriskmanagement,whichwillbeissuedin theformofthefileoftheBoardofSupervisorsforimplementation.Third,Aimingattherelatedis- sues,viewsofriskpreventionareputforwardinatimelymanner. 3.Exploretheprocesssupervision,andpromotethestandardizedoperationofthesignificantmat- ters. Inordertoeffectivelyaddressthepost-supervisionintermsoftimelag,withthestrongsupport oftheBoardofDirectorsandseniormanagement,throughtheoperationoftheimportantmattersof theBank,andinvolvementoftheoperationimplementationprocess,weactivelyexploredtheperfec- tionoftheconcurrentprocesssupervision,andachievedcertainresults. (1)Activelyparticipateinvariousprofessionalcommitteemeetingssuchasthestrategicquestion meeting,creditassessmentmeeting,fiscalreviewmeetingheldbytheseniormanagement,monitorthe processsupervisionovertheloancredit,financialinvestmentsandothersignificantmatters,andtimely issuedtotheBoardofSupervisorsviews,soastoensurethatthebank'sloan,financialapprovalpro- cesses,aspectsisincomplianceandinaccordancewiththelaw. (2)Intermofsignificantinvestment,withthefocusontherenovationworkoftheLongAn building.Onthebasisoftheworkin2010,wefurtherstrengthenedthebiddingsupervisionoverma- jorprojects,andmaintainingastrictstandardonthefinancialexpenditureaspects;whentheproject enteredthecountdownstage,themembersoftheBoardofSupervisorsadvanceddespitethedifficul- ties,shoulderheavyresponsibilitiesandforgotfoodandsleep,hadmealsandstayedatthesitesoasto acceleratethecompletionofthetaskbyguaranteeingbothqualityandquantity. (3)Inpersonnelselection,evaluation,weactivelyparticipatedintheBank'srecruitmentandhir- ingstaff,andannualinspectionoftheworkofthebranchteam.Throughthecloasecoordinationwith theHumanResourcesDepartmentofthebranch,weimplementedstrictsupervisionoverexamina- tions,patrolexaminations,effectivelypromotedthereal-timecorrectionduringtheprocesssupervi- sion,promotedthebank'sjust,fair,selectionandevaluationofpersonnel;throughparticipationinthe humanresourcesdepartment'sannualassessmentworktobranchteamsinDaqing,Qiqihar,Mudan- jiang,Qitaihe,Suihua,Yichun,Daxinganling,andHeihe,perfectedthecadreassessmentsystemand mechanismconstruction. IIPutforwardtheindependentopinionoftheBoardofSupervisorsontherelated matters (I)Business.Attheendof2011,theBankhadtotalassetsof153.019billionyuan(Groupcaliber, thesamebelow),anincreaseof84.12%comparedwiththebeginningoftheyear;thedepositsbalance was93.373billionyuan,anincreaseof40.04%comparedwiththebeginningoftheyear;theloan
163 2011 Annual Report 164 ality dinateddevelopmentofthescale,qu gperiod,thebankachievedthecoor Withinthereportin k's2011annualfinancialreportwasauditedbyDeloitte (II)Thefinancialposition.TheBan actions.In2011,theBankinvestedinthesixruralbanks (III)Thecompany'smajorassettrans srelatedtransactionsmainlyinvolvethebankdepositsand (IV)Relatedtransactions.TheBank' otedthecomprehen- (V)Riskmanagementandinternalcontrol.In2011,theBankfurtherprom theyear; comparedwiththebeginningof billionyuan,anincreaseof27.35% balancewas25.676 ebegin- percentagepointscomparedwithth anratewas0.83%,adecreaseof0.75 non-performinglo henetprofitwas1.119billionyuan. ningoftheyear.T nresults ffectiveimplementation,theoperatio thedevelopmentstrategyhadthee andefficiency,and manage- TheBoardofDirectorsandsenior sion-makingprocesswaslegitimate. werereal,thedeci rmedtheirloyalanddiligentobligationandnoviolationofthe mentmembersconscientiouslyperfo r,andotherdamagetoshareholdersandtheBank'sinterestswas lawsandregulations,theBankcharte found. ewithdomesticauditingstandards,astandardunqualifiedopin- ToucheTohmatsuCPAinaccordanc amination,theBoardofSupervisorsbelievedthat:TheBank's ionauditreportwasissued.Afterex randcompleteinthereflectionofourfinancialconditionand 2011annualauditreportaretrue,fai operatingresults. ngCounty,HubeiProvince.TheBoardofSupervisorsbelieved suchasBenfuVillageBank.Xiaocha noinsidertrading,damagestotheshareholders'equity,orbe- that:duringthereportingperiodand Bankwasfoundinmajorassettransactions. haviorscausingthelossofassetsofthe rvisorsbelievedthat:withinthereportingperiod,theresultsof lendingbusiness.TheBoardofSupe r,noinsidertradinganddamagestotheinterestsoftheshare- theBank'srelatedtransactionsarefai ancewiththeprovisionsof holdersandtheBankwasfound.TheBankwasexpectedthat,inaccord cedin2011andotherreg- the"LongjiangBankRelatedTransactionsManagementApproach"introdu rovalandothermanage- ulations;itwouldfurtherimprovetherelatedtransactionidentification,app mentprocessessoastoeffectivelycontroltheriskofrelatedtransactions. lstandardizationqualifica- siveriskmanagementandcontrolproject,achievedISO9001internationa itedisasterrecoverycenter tion;strengthenedtheinformationtechnologyriskmanagement;theoff-s inaccordancewiththere- wassetupinBeijing,italsosetupadatacenterinChinaCloudValley; temimplementationyear", quirementsofthe"bankinginternalcontrolandthecasepreventionsys tem,andimprovedinternal furtherestablishedandimprovedthecasepreventionworkorganizationsys echanisms,anddidagood controlandthecasepreventionsystem,andstrengthenedaccountabilitym ngthenthebehaviorsuper- jobintheimplementationofpreventingthe"13operationalrisks"andstre theeffortsofinternalaudit, visionovertheseniormanagementandkeypositionpersonnel,increased ration gBankCorpo sofLongjian fSupervisor rkofBoardo eportonWo 2011R 2011ReportonWorkofBoardofSupervisorsofLongjiangBankCorporation
implementedtheon-siteinspectionandspotchecks,andeliminatedhiddendangers.TheBoardof Supervisorsbelievedthat:withinthereportingperiod,theBank'sriskmanagementandinternalcon- trolmechanismwasrelativelysoundandreasonable.TheyhopedthatthattheBankwouldtakethe opportunityof"corporateculturebuildingyear"in2012tostrengthentheconstructionoftherisk complianceculture;tofurtherstrengthenthemarketrisk,liquidityriskmanagement,withthefocus onthecustomersrelatedwiththegroup,creditriskofthegovernmentloansplatform,strengthenthe case-preventionatfront-linekeypositions;activelyexploreandapplyadvancedriskidentification, monitoringtools,establishariskmanagementmodel,andgraduallyimprovethecomprehensiverisk managementsystemwiththewholeprocess,comprehensivedimensionsandcompletecoverage. (VI)Theimplementationoftheresolutiongeneralmeetingofshareholders.In2011,themem- bersoftheBoardofSupervisorsshallattendthegeneralmeetingofshareholdersaccordingtolaw,the BoardofSupervisorshasnoobjectiontoproposalssubmittedtotheshareholders'meetingforconsid- eration.TheBoardofSupervisorssupervisedovertheimplementationoftherelevantresolutionsof thegeneralmeetingofshareholdersconvenedthisyearandbelievedthattheBoardofDirectorscon- scientiouslyimplementedtheresolutionsofthegeneralmeetingofshareholders.
165 2011 Annual Report 166 eport tandAuditR ialStatemen Financ UntilDec.31,2011 port atementandAuditRe FinancialSt ers'Equity172 BankandConsolidatedStatementsofChangesinStockhold 174 NotestoFinancialStatements ceSheet 168 BankandConsolidatedBalan eStatement 170 BankandConsolidatedIncom entofCashFlow 171 BankandConsolidatedStatem 167 AuditReport AuditReport
AuditReport DeShiJingBao(Audit)Zi(12)DiNo.P0424 To:AllshareholdersofLONGJIANGBANKCORPORATION.: WehaveauditedtheaccompanyingFinancialStatementsofLONGJIANGBANKCORPO- RATION.(hereinafterreferredtoas"LongjiangBank"),includingtheBankandConsolidatedBal- anceSheetofDec.31,2011,BankandConsolidatedProfitStatementof2011,ConsolidatedCash FlowStatement,StatementofChangesinStockholders'Equity,BankandConsolidatedStatementof CashFlowandtheNotestoFinancialStatements. 1.ResponsibilitiesoftheManagementforFinancialStatements ItisthemanagementofLongjiangBanktoberesponsibleforthepreparationandfairpresenta- tionofthefinancialstatements.Suchresponsibilitycovers:(1)Preparefinancialstatementinaccor- dancewiththeAccountingStandardsforEnterprises,renderingitwithfairreflections;(2)Design,im- plementandmaintaininternalcontrolrelatingtothepreparationoffinancialstatementssoastoavoid anymajormisstatementcausedbymalpracticesormistakes. 2.Responsibilitiesof(CertifiedPublicAccountant)CPA Itisourresponsibilitytogiveauditingopinionstothefinancialstatementsbasedontheimple- mentationofauditingworks.WehaveexercisedourauditingworksinaccordancewiththeAuditing StandardsforCPAwhichrequiresustoabidebytheprofessionalcodeofethicsinplanningforand implementauditingworksandacquirereasonableassuranceastothenon-existenceofmisstatementin financialstatements. Auditingworksinvolvetheimplementationofauditproceduresforacquiringauditingevidence inrespectoftheamountsanddisclosurescontainedinthefinancialstatements.Theauditprocedures shallbechosenaccordingtothejudgmentofCPA,includingtheassessmentofrisksofmajormisstate- mentinfinancialstatementscausedbymalpracticeormistakes.Inthecourseofriskassessment,we haveconsideredtheemploymentofinternalcontrolrelatedtothefinancialstatementssoastowork outappropriateauditprocedures,butnotforthepurposeofgivingopinionstotheeffectivenessofin- ternalcontrol.Auditingworksalsoinvolvetheassessmentoftheappropriatenessofthemanagementin selectingtheaccountingpolicyandtherationalityinmakingaccountingestimationsandtheevaluation oftheoverallpresentationoffinancialstatements. Webelievetheauditevidencesoacquiredbyusissufficientandappropriate,whichunderliesthe publicationofauditopinions. 3.AuditOpinions WehavebeenreassuredthatthefinancialstatementsofLongjiangBankhavebeenpreparedac- cordingtotheAccountingStandardsforEnterprisesandhavefairlyreflectedinallmajoraspectsthe BankandConsolidatedfinancialsituationsofLongjiangBankbyDecember31,2011anditsbusiness performanceandcashflowin2011.
DeqinhuayongCertifiedChineseCertifiedPublicAccountant: PublicAccountantsCo.,Ltd JiangChangzheng
ZhangZanguo
April18,2012
167 2011 Annual Report 86,700 51,993 168 226,086 914,541 714,661 842,804 2010 5,569,919 2,670,000 2,743,873 3,518,313 1,103,193 Dec.31, 15,668,288 29,352,846 19,401,762 82,864,979 Unit:RMBThousand 983,561 106,700 192,056 106,529 802,401 2011 1,073,651 4,511,313 7,308,937 1,377,455 Dec.31, 28,019,798 47,415,649 16,786,842 18,966,897 24,503,271 152,155,060 - 51,993 850,720 228,120 914,541 714,761 2010 5,569,919 2,670,000 2,743,873 3,518,313 1,119,936 Dec.31, 83,106,580 19,735,158 15,733,659 29,255,587 - OurBank OurGroup 983,561 192,609 106,529 810,111 2011 1,077,254 4,511,313 7,308,937 1,394,910 Dec.31, 28,257,329 47,491,071 16,786,842 18,966,897 25,131,807 153,019,170 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Sheet tedBalance dConsolida Bankan Note9 Assets ntralbanks Cashandbalanceswithce Depositswithbanksandotherfinancialinstitutions ofwhichthe Financialassetsmeasuredattheirfairvalueand urrentperiod alterationschargedtotheprofitsandlossesinthec Redemptorymonetarycapitalforsale Interestaccrued Loansandadvances Available-for-salefinancialassets Heldtomaturityinvestments ReceivablesInvestment Long-termequityinvestments Fixedassets Intangibleassets Deferredincometaxassets Otherassets Totalassets solidatedBalanceSheet BankandCon ,2011 UntilDec.31 BankandConsolidatedBalanceSheet-Continued
BankandConsolidatedBalanceSheet-Continued UntilDec.31,2011 Unit:RMBThousand
OurGroupOurBank
Dec.31, Dec.31, Dec.31, Dec.31, LiabilitiesNote9 2011 2010 2011 2010
BorrowingsfromtheCentralbank 16 60,000 50,000 - -
Depositswithbanksandotherfinancialinstitutions 17 28,359,816 10,985,131 28,531,435 11,273,095
Redemptorymonetarycapitalforsale 18 22,869,886 - 22,869,886 -
deposittaking 19 93,372,969 66,676,288 92,507,548 66,290,432
Salarypayable 20 202,953 158,964 202,881 157,966
Payabletaxes 21 162,841 175,673 156,632 174,228
Interestpayable 22 1,135,365 358,193 1,134,099 356,794
Estimatedliabilities 23 - 6,651 - 6,651
Otherliabilities 24 493,838 591,345 492,074 585,172
Totalliabilities 146,657,668 79,002,245 145,894,555 78,844,338
Shareholders'equity
Capitalstock 25 3,720,000 3,080,000 3,720,000 3,080,000
Capitalreserves 26 1,053,006 554,572 1,053,006 554,572
Earnedsurplus 27 148,750 38,607 148,750 38,607
Generalriskpreparation 28 441,437 - 437,000 -
Undistributedprofits 29 906,768 348,093 901,749 347,462
Owner'sequityattributabletoparentcompany 6,269,961 4,021,272 6,260,505 4,020,641
Minorityequity 30 91,541 83,063 - -
Totalstockholder'sequity 6,361,502 4,104,335 6,260,505 4,020,641
Totalliabilitiesandstockholder'sequity 153,019,170 83,106,580 152,155,060 82,864,979
Notesshallformpartofthefinancialstatement
Thefinancialstatementsfrompage2topage83shallbesignedbythefollowingpersons:
LegalRepresentative:ChiefAccountant:LeaderofAccountingAgency:
169 2011 Annual Report - 418 0.12 (214) 5,103 6,747 18,322 32,412 (1,523) 170 190,408 489,431 487,787 112,414 375,373 375,373 346,551 (72,573) (28,822) (14,090) 2010 (592,905) (768,231) (332,780) 1,663,015 1,455,604 2,048,509 (1,173,584) - Unit:RMBThousand 524 0.36 2,062 5,634 91,031 86,835 24,978 26,133 (9,611) 115,471 358,295 (24,440) 2011 (111,900) (257,414) 3,238,463 3,067,622 5,888,311 1,460,880 1,459,725 1,101,430 1,101,430 1,107,064 (2,820,689) (1,777,583) (1,408,269) 418 755 755 0.12 (214) 6,280 6,752 18,412 32,521 (1,523) 191,134 491,485 491,013 114,098 376,915 376,160 348,093 347,338 (14,109) (73,146) (28,822) 2010 (596,658) (782,815) (335,670) 1,683,116 1,474,889 2,071,547 (1,191,631) 14 OurBank OurGroup 0.36 8,968 5,634 8,968 2,062 92,199 87,080 29,040 26,143 (9,611) 116,648 364,155 (24,449) (113,516) (260,754) 2011 1,480,481 1,483,378 1,119,223 1,110,255 1,124,857 1,115,889 3,292,635 3,120,891 5,952,898 (1,812,154) (1,437,884) (2,832,007) 31 32 33 34 35 36 37 38 39 40 41 42 43 Note9 Statement tedIncome dConsolida Bankan Totalcomprehensiveincomeattributabletominorityshareholder Totalcomprehensiveincomeattributabletoparentcompanyshareholders Less:Incometaxcharges - -Basicincomepershare(RMB) -Netprofitattributabletoshareholdersofparentcompany -Minoritystockholder'sinterest - Add:non-operatingincome Less:non-operatingexpenses Businesstaxesandsurcharges Generalandadministrativeexpenses Lossfromassetdevaluation Netinterestincome Interestincome Interestexpenses Netincomehandlingchargeandcommission handlingchargeandcommissionincome handlingchargeandcommissionexpense Returnorlossesoninvestment Lossesfromfairvaluechange Exchangegain Othernetincomeofthebusiness 7.Othercomprehensiveincome 8.Totalcomprehensiveincome 6.Earningpershare 4.Totalprofit 5.Netprofit 3.Operatingprofit 2.Operatingexpenses 1.Operatingrevenue Notesshallformpartofthefinancialstatement ment solidatedIncomeState BankandCon ,2011 UntilDec.31 BankandConsolidatedStatementofCashFlow
BankandConsolidatedStatementofCashFlow UntilDec.31,2011 Unit:RMBThousand
OurGroupOurBank
Note9 2011 2010 2011 2010 Cashflowgeneratedfromoperatingactivities Netincreaseincustomerdepositsandinterbank 44,073,275 41,067,972 43,477,365 41,131,372 Netincreasetofinancialassetssoldforrepurchase 22,869,886 - 22,869,886 - Netincreasetothecentralbankborrowings 10,000 50,000 - - Interestcharges,fees,andcommissionsofcash 4,853,607 1,824,025 4,789,413 1,802,810 Cashreceivedfromotheroperatingactivities 124,054 213,930 118,168 203,000 Cashinflowsfromoperatingactivities 71,930,822 43,155,927 71,254,832 43,137,182 Customerloansandadvancesofthenetincrease (5,558,221) (4,209,738) (5,257,988) (3,989,963) Balanceswithcentralbanksandinterbankpaymentsnetincrease (18,218,926) (25,869,845) (18,168,261) (25,862,122) Netincreasefrombuyingbackthesaleoffinancialassets (14,675,929) - (14,675,929) - Cashtopayinterestonthefeeandcommission (2,079,284) (489,037) (2,067,824) (486,483) Cashpaidtoemployeesandpayforemployees (691,072) (389,819) (678,817) (386,920) Othertaxespayment (561,460) (143,535) (558,158) (142,665) Othercashpaidrelatingtooperatingactivities (11,850,235) (6,086,102) (11,830,966) (6,082,069) BusinessactivitiesSubtotalofcashoutflows (53,635,127) (37,188,076) (53,237,943) (36,950,222) Netcashflowgeneratedfromoperatingactivities 45 18,295,695 5,967,851 18,016,889 6,186,960 Cashflowfrominvestingactivities 297,935 1,404,648 297,935 1,404,648 Recoveryofinvestmentreceivedbythecash 362,400 136,534 362,910 136,534 Obtaininvestmentincomereceivedincash Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets 555,402 450 555,403 424 InvestingactivitiesSubtotalofcashinflows 1,215,737 1,541,632 1,216,248 1,541,606 Paymentforinvestment (5,955,196) (4,241,511) (5,975,196) (4,302,711) Paymentforfixedassets/intangibleassets/andotherlong-termassets (520,104) (516,280) (516,476) (499,480) Subtotalofcashininvestmentactivities (6,475,300) (4,757,791) (6,491,672) (4,802,191) Thenetcashflowsfrominvestingactivities (5,259,563) (3,216,159) (5,275,424) (3,260,585) Cashflowfromfinancingactivities Cashfrominvestmentabsorption 1,132,800 58,800 1,132,800 - Ofwhich:cashreceivedfromminorityshareholdersofsubsidiarycash - 58,800 - - Subtotalofcashinflowfromfinancingactivities 1,132,800 58,800 1,132,800 - Cashpaidfordividendandprofitdistributionorinterestpayment (490) - - - Ofwhich:Dividendandprofitpaidbysubsidiarytominorityshareholders (490) - - - Subtotalofcashoutflowfromfinancingactivities (490) - - - Thenetcashflowfromfinancingactivities 1,132,310 58,800 1,132,800 - Foreignexchangeratefluctuationconsequencesoncashandcashequivalents (7,244) (1,481) (7,244) (1,481) NetincreaseofCashandcashequivalents 14,161,198 2,809,011 13,867,021 2,924,894 Add:BalanceofYear-startcashandcashequivalents 16,705,113 13,896,102 16,789,560 13,864,666 BalanceofYear-endcashandcashequivalents 44 30,866,311 16,705,113 30,656,581 16,789,560
Notesshallformpartofthefinancialstatement
171 2011 Annual Report ------(490) 5,634 58,800 172 equity equity 440,374 576,624 376,915 348,093 (28,822) 3,663,961 4,104,335 1,119,223 1,124,857 1,132,800 6,361,502 3,120,818 3,697,442 4,104,335 Totalshareholders' Totalshareholders' ------755 755 (117) (916) (490) 8,968 8,968 23,625 23,508 58,800 83,063 83,979 83,063 91,541 Unit:RMBThousand Minority interests Minority interests ------5,634 576,741 376,160 347,338 441,290 (28,822) Subtotal Subtotal 3,097,193 3,673,934 4,021,272 3,579,982 4,021,272 1,110,255 1,115,889 1,132,800 6,269,961 ------9,470 15,442 73,807 (5,972) 274,286 348,093 906,768 376,160 376,160 348,093 (37,537) (110,143) (441,437) profit profit 1,110,255 1,110,255 Undistributed Undistributed ------365,000 441,437 441,437 (365,000) provisions provisions Generalrisk Generalrisk ------(672) 1,742 1,070 48,603 38,607 (9,996) 37,537 38,607 110,143 148,750 reserve reserve Surplus Surplus 9 ------5,634 5,634 12,572 583,385 583,394 554,572 542,000 554,572 492,800 (28,822) (28,822) Capital reserve Capital reserve 1,053,006 ------ttributabletotheParentCompany Shareholder'sEquityA stock ntCompany Shareholder'sEquitiesAttributabletothePare stock 640,000 Capital Capital 3,080,000 3,080,000 3,080,000 3,080,000 3,080,000 3,720,000 ity holders'Equ sinStock mentsofChange lidatedState Conso BalanceofDec.31,2009 Priorcorrectionofaccountingerrors(Note6) BalanceofJan.1,2010 Adjustmentsforcurrentyear (1)Netprofits (2)Othercomprehensiveincome subtotalof(1)and(2) (3)Shareholders'investment 1.Shareholders'capital 2.Newlyestablishedsubsidiary (4)Distributionofprofits 1.ExtractSurplusreserve 2.ExtractGeneralriskprovisions 3.Distributiontoshareholders BalanceofDec.31,2010 BalanceofDec.31,2010 Priorcorrectionofaccountingerrors(Note6) BalanceofJan.1,2011 Adjustmentsforcurrentyear (1)Netprofits (2)Othercomprehensiveincome subtotalof(1)and(2) (3)Shareholders'investment 1.Shareholders'capital (4)Distributionofprofits 1.ExtractSurplusreserve 2.ExtractGeneralriskprovisions 3.Distributiontoshareholders BalanceofDec.31,2011 Notesshallformpartofthefinancialstatement inStockholders'Equity StatementsofChanges Consolidated ,2011 UntilDec.31 ConsolidatedStatementsofChangesinStockholders'Equity
ConsolidatedStatementsofChangesinStockholders'Equity UntilDec.31,2011 Unit:RMBThousand
CapitalstockCapitalreserveSurplusreserveGeneralriskprovisionsUndistributedprofitTotalshareholders'equity
BalanceofDec.31,2010 3,080,000 12,572 48,603 365,000 72,426 3,578,601 Priorcorrectionofaccountingerrors(Note6) - 542,000 (9,996) (365,000) 275,036 442,040 BalanceofJan.1,2011 3,080,000 554,572 38,607 - 347,462 4,020,641 Adjustmentsforcurrentyear (1)Netprofits - - - - 1,101,430 1,101,430 (2)Othercomprehensiveincome - 5,634 - - - 5,634 Subtotalof(1)and(2) - 5,634 - - 1,101,430 1,107,064 (3)Shareholders'investment 1.Shareholders'capital 640,000 492,800 - - - 1,132,800 (4)Distributionofprofits 1.ExtractSurplusreserve - - 110,143 - (110,143) - 2.ExtractGeneralriskprovisions - - - 437,000 (437,000) - 3.Distributiontoshareholders ------BalanceofDec.31,2011 3,720,000 1,053,006 148,750 437,000 901,749 6,260,505
CapitalstockCapitalreserveSurplusreserveGeneralriskprovisionsUndistributedprofitTotalshareholders'equity
BalanceofDec.31,2009 3,080,000 9 1,742 15,678 3,097,429 Priorcorrectionofaccountingerrors(Note6) - 583,385 (672) (6,052) 576,661 BalanceofJan.1,2010 3,080,000 583,394 1,070 9,626 3,674,090 Adjustmentsforcurrentyear (1)Netprofits - - - 375,373 375,373 (2)Othercomprehensiveincome - (28,822) - - (28,822) Subtotalof(1)and(2) - (28,822) - 375,373 346,551 (3)Shareholders'investment 1.Shareholders'capital - - - - - (4)Distributionofprofits 1.ExtractSurplusreserve - - 37,537 (37,537) - 2.ExtractGeneralriskprovisions - - - - - 3.Distributiontoshareholders - - - - - BalanceofDec.31,2010 3,080,000 554,572 38,607 347,462 4,020,641
Notesshallformpartofthefinancialstatement
173 2011 Annual Report 174 ts ialStatemen totheFinanc Notes eFinancialStatements Notestoth 1Accountingyear ftheAccountingStan- ThefinancialstatementspreparedbytheBankcomplywiththerequirementso Regulations(hereinafter TheGroupexecutestheAccountingStandardsforEnterprisesandRelated alcurrencyoftheBank ThefinancialstatementsarepresentedinRMByuan,whichisalsothefunction 2branches,providingtheretailandcorporatebankingservices OnDecember31,2011,theBankhas1 ssubsidiaries(hereinafterreferredtoasthe"Group")includes ThemainbusinessoftheBankandit BankingRegulatoryCommission(hereinafterreferredtoasthe TheBankwasapprovedbytheChina enteredintobythepromotersofthebank,thebankinherited Accordingtothepromoters'agreement bank e"Bank")isajoint-stockcommercial Co.,Ltd.(hereinafterreferredtoasth TheLongjiangBank onsolidatedfinancialposition dardsforEnterprises,whichisatrueandcompletereflectionoftheBankandc 2011,theBankandthecon- onDecember31,2011,theBankandtheconsolidatedresultsofoperationsin solidatedcashflow. IVThesignificantaccountingpoliciesandaccountingestimates FinanceofthePeople'sRe- referredtoasthe"EnterpriseAccountingStandards")issuedbytheMinistryof ry15,2006. publicofChina(hereinafterreferredtoasthe"MinistryofFinance")onFebrua es IIIFollowtheStatementofAccountingStandardsforEnterpris anditssubsidiaries. IIPreparationbasisofthefinancialstatements inHeilongjiangProvince. loans,paymentandsettlementandotherbankingservices,aswellas RMBandforeigncurrencydepositsand ingRegulatoryCommission. otherbusinessapprovedbyChinaBank hthenumberofB1056H223010001,andreceivedthebusinessli- CBRC),holdingafinanciallicensewit iththeregistrationnumberof230000100069419approvedbythe censefortheenterprise'slegalpersonw forIndustryandCommerce. HeilongjiangProvincialAdministration tyCommercialBank,theQiqiharCityCommercialBankCo.,Ltd., allassetsandliabilitiesoftheDaqingCi .,Ltd.andQitaiheCityUrbanCreditCooperativesCo.,Ltd.(col- MudanjiangCityCommercialBankCo rcooperatives");therelevantbusinesswastransferredtothebankon lectivelyreferredtoasthe"fourbankso December22,2009. ankCo., "ReplytotheOpeningofLongjiangB poratedinChinaaftertheapprovalof registeredandincor inJianFu kingRegulatoryCommission"(HeiY RegulatoryBureauoftheChinaBan Ltd.ofHeilongjiang [2009]No.309)onDecember22,2009. theBank IIntroductionto NotestotheFinancialStatements
TheGroup'saccountingyearisthecalendaryear,thatis,fromJanuary1untilDecember31. 2Recordingcurrency TheRMBisthecurrencyintheprimaryeconomicenvironmentinwhichGroupoperates.The GroupusestheRMBastherecordingcurrency.TheGroup'scurrencyusedinthepreparingthefinancial statementisRMB. 3Basisofaccountingandvaluationprinciples TheGroup'sfinancialaccountingisbasedontheaccrualbasis,inadditiontocertainfinancialinstru- mentsmeasuredatfairvalue;thefinancialstatementsusehistoricalcostasthebasisofmeasurement.Ifthe assetsareimpaired,inaccordancewiththerelevantprovisions,oneshalldrawtheprovisionforimpairment. 4Thebusinesscombinationaccountingtreatmentundertheidenticalcontrolandunderthenon-i- denticalcontrol Thebusinesscombinationisdividedintothebusinesscombinationundertheidenticalcontroland businesscombinationundernon-identicalcontrol.TheGroup'sbusinesscombinationsarebusinesscombi- nationundernon-identicalcontrol. Thebusinesscombinationundernon-identicalcontrol Enterprisesinvolvedinthecombinationarenotsubjecttotheultimatecontrolofthesamepartyorthe identicalmulti-partybeforeandafterthecombination,whichisthebusinesscombinationundernon-i- denticalcontrol. Thecostofthecombinationreferstothefairvalueoftheassetspaidbythebuyertoobtaintheseller's controlright,theliabilitiesincurredorassumed,andtheissuedequityinstruments.Theaudit,legalservices, evaluationandconsultingandotherintermediarycostsandotherrelatedadministrativeexpensesincurredby thebuyerinabusinesscombinationareincludedintheprofitorlossatthetimeofoccurrence.Through multipletransactions,fortheenterprises,withthestep-by-steprealizationofbusinesscombinationunder non-identicalcontrol,themergercostsarethecombinationoftheconsiderationonthepurchasedateand thefairvalueonthepurchasedateoftheseller'sstockequityheldbeforethedateofpurchase.Forthesell- er'sstockequityheldpriortothedateofpurchase,re-measurementisconductedinaccordancewithfair valueontheacquisitiondate.Thedifferencebetweenfairvalueandbookvalueareincludedininvestment incomeinthecurrentperiod;fortheseller'sstockequityheldpriortothedateofpurchasewhichinvolves othercomprehensiveincome,othercomprehensiveincomerelatedistransferredtothecurrentinvestment incomeonthepurchasedate. Theidentifiableassets,liabilitiesandcontingentliabilitiesdeterminedbythebuyertomeetthecondi- tionsobtainedbythebuyerinthecombination,shallbemeasuredatfairvalueonthedateofpurchase.If thecombinationcostisgreaterthanthedifferenceofthefairvalueshareofidentifiablenetassetsobtainedin thecombination,oftheseller,itshallberecognizedasgoodwillandbegintheinitialmeasurementaccord- ingtocost.
175 2011 Annual Report 176 ts ialStatemen totheFinanc Notes 7Financialinstruments partytothecontractof AfinancialassetorfinancialliabilityisrecognizedwhentheGroupbecomesa 6Cashandcashequivalentssetstandards ay.Cashequivalentsare Cashreferstothebankcashonhandandthedepositwhichcanbeusedtop rs,andshallnotbere- Goodwillimpairmentlossisincludedinthecurrentprofitorlosswhenitoccu etamountoftheasset'sfairvaluelessdisposalcostsorthepre- Therecoverableamountiseitherthen uctedtogetherwiththerelatedassetgrouporcombinationof Impairmenttestingofgoodwilliscond 5Goodwill dat- ssispresentedseparatelyintheconsoli isformedduetotheacquisitionbusine Thegoodwillwhich adilyconvertibletoknown investmentheldbytheGroupwhichisshort-term,highlyliquid,andre amountsofcash,withinsignificantriskchangesinworth. versedinfutureaccountingperiods. lows,andthehigheroneshallprevail.Thefairvalueofassetsisde- sentvalueoftheexpectedfuturecashf iceinthefairtrade;ifthereisnosaleagreementbutanactivemar- terminedbasedonthesaleagreementpr erminedacoridingtothepriceofferedbythebuyeroftheasset;if ketofassets,thefairvalueshallbedet arketofassets,thefairvalueoftheassetshallbeassessedinaccor- thereisnosaleagreementoranactivem esforasset-relateddisposal, dancewiththebestretrievableinformation;thedisposalcosts,includinglegalfe ssettoitssalecondition.The relatedtaxes,handlingcharges,aswellasthedirectcostsincurredtobringthea dfuturecashflowsgenerated presentvalueoftheassetsexpectedfuturecashflows,accordingtotheexpecte untratetodetermineinac- incontinueduseandultimatedisposaloftheassets,selecttheappropriatedisco cordancewithdiscountedamount. ondate,thebookvalueofgoodwill,inaccordancewithreasonable assetgroups.Thatis,fromtheacquisiti binationofassetgroupswhichcanbenefitfromtheenterprisecom- basis,isdividedintoassetgrouporcom mountofassetgrouporcombinationofassetgroupscontainingthe bination,forexample,therecoverablea recognizethecorrespondingimpairmentloss.Theamountofthe goodwillislessthanitscarryingvalue, goodwillbookvalueapportionedtotheassetgrouporcombination impairmentlossisfirstsetoffagainstthe ookvalueofotherassetsinproportionaccordingtotheproportion ofassetgroups,thensetoffagainsttheb ngthegoodwillintheassetsgroupsorcombinationofassetgroups. ofthebookvalueofotherassetsexcludi theamountsobtainedafterthecostlessaccumulatedimpairment. edfinancialstatementsandmeasuredat stattheendofeachyear. Goodwillistestedforimpairmentatlea obtained fairvalueshareofidentifiablenetassets ostislowerthanthedifferenceofthe Ifthecombinationc ilitiesand inationcostofidentifiableassets,liab ,firstrecheckthefairvalueandcomb inthecombination ceofthe tioncostisstilllowerthanthedifferen ,andif,aftertherecheck,thecombina contingentliabilities entprofit bination,itwillbeinlcudedinthecurr entifiablenetassetsobtainedinthecom fairvalueshareofid andloss. NotestotheFinancialStatements
financialinstruments.Financialassetsandfinancialliabilitiesaremeasuredatfairvalueatinitialrecognition. Forfinancialassetsandfinancialliabilitiesmeasuredatfairvalueanditschangesincludedinthecurrentprofit orloss,relatedtransactioncostsaredirectlyincludedintheprofitorloss,forfinancialassetsandfinanciallia- bilitiesoftheothercategories,relatedtransactioncostsareincludedtheamountinitiallyrecognized. (1)Thedeterminingmethodforthefairvalue Fairvaluereferstotheamountforwhichbothpartiesfamiliarwiththesituationarewillingtomake theassetsexchangeordebtredemptiononavoluntarybasis.Forfinancialinstrumentsinactivemarket,the Groupusesquotedpricesinactivemarketstodetermineitsfairvalue;forfinancialinstrumentnotinactive market,theGroupusesvaluationtechniquestodetermineitsfairvalue.Valuationtechniquesincludethe referencetothepriceusedintherecentmarkettransactionsbypartiesfamiliarwiththesituationandwilling tomakethetransactions,thecurrentfairvalueofotherfinancialinstrumentswhichissubstantiallythesame, discountedcashflowanalysisandoptionpricingmodel,etc. (2)Theeffectiveinterestmethod Theeffectiveinterestmethodisthemethodtocalculateamortizedcostandinterestincomeorexpense invariousperiodsinaccordancewiththeeffectiveinterestrateofthefinancialassetsorfinancialliabilities (includingagroupoffinancialassetsorfinancialliabilities).Theactualinterestratereferstothefuturecash flowsofafinancialassetorfinancialliabilityintheexpecteddurationorwithintheapplicableshorterperiod, isdiscountedintotheinterestratesusedinthecurrentbookvalueforfinancialassetsorfinancialliabilities. Incalculatingtheeffectiveinterestrate,theGroupwillconsidertheexpectedfuturecashflowsonthe basisofallthetermsofthecontractofthefinancialassetsorfinancialliabilities(notconsiderfuturecredit losses),andwillalsoconsiderthefeesandcharges,transactionfeesanddiscountorpremiumpaidorreceived bythecontractedpartiesofthefinancialassetsorfinancialliabilities,whichbelongstotheeffectiveinterest ratecomponents. (3)Classification,recognitionandmeasurementoffinancialassets Uponinitialrecognition,thefinancialassetsareclassifiedasfinancialassetsmeasuredatfairvalueand whosechangesincludedinthecurrentprofitorloss,held-to-maturityinvestments,loansandreceivables andavailable-for-salefinancialassets.Regularwaypurchasesoffinancialassetsarerecognizedandderecog- nizedusingtradedateaccounting. Financialassetsmeasuredatfairvalueandwhosechangesincludedinthecurrentprofitorloss Financialassetsmeasuredatfairvalueandwhosechangesincludedinthecurrentprofitorlossinclude tradingfinancialassetsandfinancialassetsdesignatedasmeasuredatfairvalueandwhosechangesincludedin thecurrentprofitorloss. Tradingfinancialassetsrefertothefinancialassetsmeetingoneofthefollowingconditions: ●Thepurposeofobtainingthefinancialassetismainlyaimedforsellinginthenearfuture; ●Uponinitialrecognition,theyarepartofthecentralizedmanagedidentifiableportfoliooffinancial
177 2011 Annual Report 178 ts ialStatemen totheFinanc Notes t, mentorinvestmentstrategyhassetou documentoftheGroup'sriskmanage Theformalwritten tencyoftherelatedgainsorlossesinthe inatesorsignificantlyreducesinconsis Thedesignationelim sorlossesfromchanges Available-for-salefinancialassetsaresubsequentlymeasuredatfairvalue,gain Available-for-salefinancialassets dasavailableforsaleat Available-for-salefinancialassetsarenon-derivativefinancialassetsdesignate measuredatamortized Loansandreceivablesusetheeffectiveinterestmethodandaresubsequently Loansandreceivables ivefinancialassetswhicharenotquotedinanactivemarket, Loansandreceivablesarenon-derivat theeffectiveinterestmethodandissubsequentlymeasuredat Thehold-to-maturityinvestmentuses Held-to-maturityinvestments ertonon-derivativefinancialassetswithfixedmaturity,fixed Theheld-to-maturityinvestmentsref ● andwhosechangesincludedinthecurrentprofitorlossshall Financialassetsmeasuredatfairvalue ● das s,atinitialrecognition,canbedesignate eetingoneofthefollowingcondition Thefinancialassetsm nforeigncurrencymonetary infairvalue,exceptforimpairmentlossesandtheexchangedifferencesbetwee gnizedasothercomprehen- financialassetsandamortizedcostincludedinthecurrentprofitorloss,isreco fairvalueandwhosechanges initialrecognitionandfinancialassetsotherthanthefinancialassetsmeasuredat nt. includedinprofitorloss,loansandreceivables,andheld-to-maturityinvestme ationshallbeincludedinthe cost,andthegainsorlossesarisingfromderecognition,impairmentoramortiz currentprofitorloss. ount.ThefinancialassetsthattheGroupdividesasloansandre- withfixedordeterminablerecoveryam lloantobanks,redemptory ceivablesincludefundsdepositedincentralbanks,depositsofinterbanks,cal receivablesandotherreceiv- monetarycapitalforsale,interestreceivable,loansandadvances,investmentin ables,andsoon. gfromderecognition,impairmentoramortizationshallbeincluded amortizedcost;thegainsorlossesarisin inthecurrentprofitorloss. heGrouphasthepositiveintentionandabilitytoholdtomaturity. ordeterminablerecoveryamount,andt urement,andthegainsorlossesfromchangesinfairvalue,aswellas adoptthefairvalueforfollow-upmeas suchfinancialassetsshallbeincludedinthecurrentprofitorloss. dividendsandinterestincomerelatedto isofmeasurementofthefinancialassets; ognitionresultingfromthedifferentbas measurementorrec cialassetsandfinancialliabilitiesportfoliowherethefinancialasset theportfoliooffinancialassetsorfinan tedbasedonthefairvalue,andbereportedtothekeymanagement belongstoshallbemanagedandevalua personnel. ludedinthecurrentprofitorloss: redatfairvalueandwhosechangesinc financialassetsmeasu ort-term attheGroup'srecentlyadoptsthesh ereisobjectiveevidenceindicatingth instruments,andth ortfoliomanagement; profitabilityforthep NotestotheFinancialStatements
siveincomeincludedincapitalsurplus,andtransferredwhenthefinancialassetisderecognized,whichshall beincludedinthecurrentprofitorloss. Theinterestobtainedduringtheperiodtheavailableforsalefinancialassetsareheldandthecashdivi- dendsachievedbytheinvestmentunitduringthedeclaration,shallberespectivelyincludedininterestin- comeandinvestmentincome. Theinvestmentsinequityinstruments,whicharenotquotedinanactivemarketandtheirfairvalue cannotbereliablymeasured,aremeasuredbycost. (4)Impairmentoffinancialassets Inadditiontothefinancialassetsmeasuredatfairvalueandwhosechangesincludedinthecurrent profitorloss,thegroupcarriesoutthecheckforthecarryingvalueofotherfinancialassetsoneachbalance sheetdate.Ifthereisobjectiveevidenceindicatingthatfinancialassetisimpaired,impairmentprovisionshall bemade.Theobjectiveevidenceshowingtheimpairmentoffinancialassetsisthematterswhichactually happensafterthefinancialassetsareinitiallyrecognized,affectstheexpectedfuturecashflowsofthefinan- cialassetandtheimpactofwhichtheenterprisescanreliablymeasure. Theobjectiveevidenceofimpairmentoffinancialassetsincludesthefollowingmattersthatcanbeob- served: ●Theissuerorobligorencounterseriousfinancialdifficulties; ●Theobligorhasthebreachofcontractterms,suchasadefaultoroverdueininterestorprincipal payments; ●TheGroupmakeconcessionsforadebtorinfinancialdifficulty,duetoeconomicorlegalconsider- ations,; ●Probablethatthedebtorwillenterbankruptcyormakeotherfinancialreorganization; ●Dueamajorfinancialdifficulties,resultinginfinancialassetscannotcontinuetobetradedinanac- tivemarket; ●Unabletoidentifywhetheranasset'scashflowinagroupoffinancialassetshasbeenreduced,how- ever,basedonpublicdata,wehavefoundthat,afteroverallevaluation,theexpectedfuturecashflowsof thegroupoffinancialassetshavebeenreducedandmeasureablesincetheinitialrecognition,including: -Thegradualdeteriorationofthefinancialassetsdebtor'sabilitytopay; -Thedebtorcountryorregionaleconomicsituationthatmayleadtothegroupoffinancialassetscan notbepaid; ●Thetechnology,market,economicorlegalenvironmentattheequityinstrumentsissuer'sbusiness placehasthematerialadversechange,whichmakesitsinvestorinequityinstrumentsmaynotbeabletore- covertheinvestmentcosts; ●Thefairvalueofequityinstrumentsinvestmenthasasignificantorprolongeddecline; ●Otherobjectiveevidenceindicatesthefinancialassetsimpairment.
179 2011 Annual Report 180 ts ialStatemen totheFinanc Notes (5)Derecognitionoffinancialassets ns: TheGroupderecognizedfinancialassetsmeetingoneofthefollowingconditio Financialassetsimpairmentmeasuredatcost etandwhosefairvalue Fortheequityinstrumentsimpairmentwhichisnotquotedinanactivemark ngthatthevalueoffi- Aftertheimpairmentlossisrecognized,ifthereisobjectiveevidenceindicati rment Available-for-salefinancialassetsimpai aired,andthecumulativelossduetothedeclineinfairvalueof Available-for-salefinancialassetisimp costoramortizedcost,itsbookvalueisreducedtoexpected Forthefinancialassetsmeasuredatthe ialassetscalculatedatamortizedcost Impairmentoffinanc duct ividuallysignificantfinancialassets;con yconductstheimpairmenttestsforind theGroupseparatel eenthecarryingvalueoffi- cannotbereliablymeasured,theimpairmentlossamountisthedifferencebetw ountinaccordancewiththe nancialassetsandthecurrentvaluedeterminedforthefuturecashflowsdisc ossesofsuchfinancialassets, prevailingmarketrateofreturnforsimilarfinancialassets.Theimpairmentl oncerecognized,arenotreversed. fterthelossisconfirmed,the nancialassetshasbeenrestored,andobjectivelyrelatestothematteroccurreda uityinstrumentimpairment previouslyrecognizedimpairmentlossisreversed,andavailable-for-saleeq hecapitalreserve,theavail- lossesreversalisrecognizedasothercomprehensiveincomeandincludedint currentprofitandloss. able-for-saledebtinstrumentsimpairmentlossisreversedandincludedinthe shallbetransferredandincludedinthecurrentprofitandloss.The theoriginalincludedincapitalsurplus ransferistheinitialacquisitioncostsoftheassetslessoftheretrieved amountofthecumulativelossofsucht thecurrentfairvalueandthebalanceincludedinprofitorlossaf- principalandamortizationpayment,and tertheimpairmentloss. dingtothefinancialasset'soriginaleffectiveinterestrate(excluding futurecashflowvaluediscountedaccor curred),thereducedamountisrecognizedasanimpairmentloss, futurecreditriskwhichhasnotyetoc rofitandloss.Aftertheimpairmentlossofthefinancialassetsisrec- whichshallbeincludedinthecurrentp ndicatingthatthevalueoffinancialassetshasbeenrestored,anditis ognized,ifthereisobjectiveevidencei dafterthelossisconfirmed,thepreviouslyrecognizedimpairment objectivelyir-relatesthematteroccurre financialassetsgettheimpairmentlossdoesnotexceedtheamor- lossisreversed,thebookvalueafterthe versaldateassumingnoprovisionforimpairment. tizedcostofthefinancialassetsonthere sinclud- lassets,orconductstheimpairmenttest forindividuallynotsignificantfinancia theimpairmenttests ttest,the kcharacteristics.Aftertheindependen offinancialassetswithsimilarcreditris edintheportfolios assets)is significantornotsignificantfinancial noimpairment(includingindividually financialassetswith stics.The assetswithsimilarcreditriskcharacteri tincludedintheportfoliosoffinancial testedforimpairmen onducted impairmentlosses,impairmenttestisc confirmedthatthefinancialassetshave individualtestshave lassetswithsimilarcreditriskcharacteristics. notincludedintheportfoliosoffinancia NotestotheFinancialStatements
.Terminationofthecontractualrightstoreceivethecashflowsofsuchfinancialasset; .Thefinancialassetshavebeentransferred,andalmostalloftherisksandrewardsconcerningtheown- ershipoffinancialassetshavebeentransferredtothetransferee; .Thefinancialassetshavebeentransferred,althoughtheGrouphasneithertransferrednorretainedal- mostalloftherisksandrewardsconcerningtheownershipoffinancialassets,butgaveupcontroloverthe financialassets. IftheGrouphasneithertransferrednorretainedalmostalloftherisksandrewardsconcerningthe ownershipoffinancialassets,anddidnotgiveupcontroloverthefinancialassets,thefinancialassetsshallbe recognizedinaccordancewiththedegreeofcontinuinginvolvementintransferredfinancialasset,andrec- ognizethecorrespondingliabilities.Thedegreeofcontinuinginvolvementintransferredfinancialassets referstothelevelofriskfacingtheenterpriseduetothechangesinthevalueoffinancialassets. Ifanentirefinancialassettransferqualifiesforderecognition,thecarryingvalueofthetransferredfi- nancialassets,andthedifferencebetweentheconsiderationsreceivedfromthetransferandthecumulative amountofthefairvalueoriginallyrecognizedinothercomprehensiveincomechangesshallbeincludedin thecurrentprofitorloss. Ifthefinancialassetspartialtransferqualifiesforderecognition,thecarryingvalueoffinancialassets transferredshallbesharedaccordingtotheirrelativefairvaluebetweenthederecognitionandnoderecog- nition.Theconsiderationsreceivedfromthetransferandthedifferencebetweenthecumulativeamountof thefairvalueoriginallyrecognizedinothercomprehensiveincomewhichshallbedividedintothedere- cognitionpartandtheabovecarryingvaluesharedshallbeincludedinthecurrentprofitandloss. (6)Classification,recognitionandmeasurementoffinancialliabilities Theclassificationandmeasurementoffinancialliabilities TheGrouprecognizestheissuedfinancialinstrumentsasfinancialliabilitiesorequityinstrumentsbased ontheessenceofacontractualarrangementofthefinancialinstrumentsandthedefinitionoffinancialliabil- itiesandequityinstruments. Financialliabilities Financialliabilitiesusetheeffectiveinterestmethodandaresubsequentlymeasuredatamortizedcost, andthegainsorlossesarisingfromderecognitionoramortizationareincludedinthecurrentprofitorloss. Equityinstruments AnequityinstrumentreferstothecontractthatcanprovetohavetheGroup'sresidualinterestinassets afterdeductionofallliabilities.TheGroup'sissuedequityinstrumentsarerecognizedastheamountob- tainedfromtherevenuelessdirectissuecosts. (7)Derecognitionoffinancialliabilities Whenthepresentobligationofthefinancialliabilitieshavebeendischarged,canceledorexpires,the financialliabilitiescanbederecognized.TheGroup(thedebtor)andcreditorsshallsignanagreementto
181 2011 Annual Report 182 ts ialStatemen totheFinanc Notes (2)Thefollow-upmeasurementandrecognitioninprofitorloss 8Thelong-termequityinvestments (1)Determinationoftheinvestmentcost non-identicalcontrol, Forlong-termequityinvestmentobtainedbyenterprisescombinationunder financialliabilities (9)Theoffsettingoffinancialassetsand edstatutoryrightsoffinancialassetsandfinancialliabilities,and WhentheGrouphasoffsettherecogniz arenotdesignatedasfinancialliabilitiesmeasuredatfairvalue Thefinancialguaranteecontractswhich edbytheGroupaccordingtothefairvalueshallbedesignated Thefinancialguaranteecontractsmanag eecontracts (8)Financialguarant issuertoproviderepaymentprotectionforthecontracthold- Financialguaranteecontractsrequirethe lia- etweenthecarryingvalueoffinancial lthefinancialliabilities,thedifferenceb Derecognitionofal ombinationcost.Forenter- thelong-termequityinvestmentcostsshallbedeterminedaccordingtothec helong-termequityinvest- prisecombinationthroughmultipletransactionsundernon-identicalcontrol,t ateofpurchaseandthenew mentcostisthesumofthebookvalueoftheseller'sequityheldbeforethed nthelong-termequityin- costofinvestmentonthedateofpurchase.Otherequityinvestmentothertha vestments,shallbemeasuredinitiallyatcost. netsettlementorsimultane- thestatutoryrightsareexecutableatpresent,andtheGroupplanstomakethe tafterfinancialassetsandfi- ousrealizationofthefinancialassetandsettlethefinancialliabilities,theamoun ,financialassetsandfinancial nancialliabilitiesoffseteachothershallbelistedinthebalancesheet.Inaddition liabilitiesarepresentedseparatelyinthebalancesheet,withoutoffsetting. currentprofitorlossareinitiallyrecognizedatfairvalueatinitial andwhosechangesareincludedinthe ,inaccordancewiththeamountandtheamountinitiallyrecognized recognition,aftertheinitialrecognition risesNo.13-Contingencies"lessaccumulatedamortizationbal- inthe"AccountingStandardsforEnterp principleof"AccountingStandardsforEnterprisesNo.14-Rev- ancedeterminedinaccordancewiththe edforsubsequentmeasurement. enue",thehigherofthetwoshallbeus recognitionanditschangesshallbeincludedinprofitorlossfinan- tobemeasuredatfairvalueuponinitial econtractsarerecognizedatfairvalue,changesinfairvalueat cialliabilities.Suchfinancialguarante ecurrentprofitorloss. re-measurementshallbeincludedinth oldertopayhislosswhentheguaranteedpersoncannotfulfillthe ers,thatis,onbehalfofthecontracth ntract. duepaymentswithinthetermsoftheco ilities)are ansferredorassumednewfinancialliab siderations(includingnon-cashassetstr bilitiesandpaidcon entprofitandloss. includedinthecurr newfi- gfinancialliability,andincasethatthe alliabilitymethodtoreplacetheexistin takeonnewfinanci recognize cialliabilitiesaredifferent,oneshallde contractualtermsoftheexistingfinan nancialliabilitiesand thenewfinancialliabilities. lliability,andatthesametimeconfirm theexistingfinancia NotestotheFinancialStatements
Long-termequityinvestmentcheckedusingthecostmethod TheGrouphasnoidenticalcontrolorsignificantinfluenceoverinvestee,andthelong-termequity investmentswhicharenotquotedinanactivemarket,andthefairvaluecannotbereliablymeasuredshall becheckedbyusingthecostmethod;Inaddition,thecompanyfinancialstatementsusethecostmethodfor thesubsidiary'slong-termequityinvestments.ThesubsidiaryistheinvesteeoverwhichtheGroupisable toexercisecontrol. Whenthecostmethodisused,thelong-termequityinvestmentismeasuredattheinitialinvestment cost,exceptfortheactualpricepaidoninvestmentsorcashdividendsorprofitsincludedintheconsidera- tionsanddeclaredbutnotyetpaid,thecurrentinvestmentincomeshallberecognizedaccordingtocash dividendsorprofitsdeclaredorissuedbytheinvestee. Thelong-termequityinvestmentcheckedbyusingtheequitymethod TheGroup'sinvestmentinassociatesandjointventuresshallbecheckedbyusingtheequitymethod. AssociatesaretheinvesteewhichtheGroupisabletoexertasignificantimpactonandajointventure referstotheinvesteeoverwhichtheGroupandotherinvestorshavetheirjointcontrol. Usingtheequitymethod,iftheinitialinvestmentcostoflong-termequityinvestmentisgreaterthan theinvestment,itshallenjoytheinvestee'sidentifiablenetassetsatfairvalueshare,suchenterprisedoesnot adjusttheinitialinvestmentcostoflong-termequityinvestment;theinitialinvestmentcostislessthanin- vestment,itshallenjoytheinvestmentidentifiablenetassetsatfairvalueshare,thedifferenceshallbein- cludedinthecurrentprofitorloss,meanwhileadjustingthecostoflong-termequityinvestment. Usingtheequitymethod,theinvestmentgainorlossinthecurrentperiodshouldenjoyorsharethe investeeshareofnetprofitorlossrealizedintheyear.Inconfirmationoftheshareofthenetprofitorloss thattheinvesteeshallenjoy,thefairvalueoftheidentifiableassetswhenobtainingtheinvestmentshallbe usedasabase,andinaccordancewiththeGroup'saccountingpoliciesandaccountingperiods,thenetprofit ontheinvesteeshallberecognizedafteradjustment.Theunrealizedtradinggainsandlossesbetweenthe GroupandassociatesandjointenterpriseshallbecalculatedthepartbelongtotheGroupinaccordance withtheshareholdingratioforcalculationandbeoffset,theinvestmentgainsandlossesshallberecognized onthisbasis.TheunrealizedinsidertradinglossoftheGroupandtheinvesteebelongstothetransferredas- setimpairmentlossesandcannotbeoffset.Fortheinvestee'schangesinequityotherthanthenetprofitor loss,acorrespondingadjustmenttothecarryingvalueoflong-termequityinvestmentisrecognizedinoth- ercomprehensiveincomeandrecognizedascapitalreserve. Inrecognizingthesharingofthenetlossesincurredbytheinvestee,thelimitshallbesetwhenthe carryingvalueoflong-termequityinvestmentandothersubstantiallyformingthelong-terminterestsof theinvestor'snetinvestmentbeingreducedtozero,unlesstheGroupbearstheobligationoftheadditional lossestotheinvestee.Iftheinvesteeachievesthenetprofitinsubsequentperiods,theGroupshallrestore therecognitionofthegainsharingaftertheincomeamountcompensatesfortheunrecognizedlossshare
183 2011 Annual Report 184 3.17%-6.47% 19.00%-33.33% 15.83%-25.00% 19.00%-33.33% 3%-5% 0%-5% 0%-5% 0%-5% ts ialStatemen totheFinanc Notes 3-5years 4-6years 3-5years 15-30years eablecondition,usethe Fixedassets,startingfromthenextmonthwhenitreachesitsintendedservic dassets,iftheeconomicbenefitsassociatedwiththefixedassets Subsequentexpendituresrelatedtofixe 9Fixedassets ovideservices,usedforrentalormanagement,withtheservice Fixedassetsaretangibleassetsheldtopr ceovertheinvestee gthejointcontrolorsignificantinfluen Evidencedeterminin inethefinancialandoperatingpoliciesofanenterprise,andto Controlishavingthepowertodeterm mequityinvestments Disposaloflong-ter ctual ncebetweenitsbookvalueandthea ng-termequityinvestment,thediffere Inthedisposaloflo Buildings Electronicequipment Transporttools Furnitureandother efullifeofvariousfixedassets straight-linemethodtocalculatethedepreciationduringitsservicelife.Theus andestimatednetresidualvaluesandannualdepreciationrateareasfollows: includedinthecostoffixed islikelytoflowtotheGroupanditscostcanbecanbereliablymeasured,are tinuedspendingshallbein- assets,andderecognizethecarryingvalueofthereplacedpart.Theothercon cludedinthecurrentprofitorlossatthetimeofoccurrence. Annualdepreciationrate ClassesUsefullifeEstimatedresidualvalues setscanberecognizedonlywhentherelatedeconomicbenefitsare lifeofmorethanonefiscalyear.Fixedas canbereliablymeasured.Fixedassetscanbeinitiallymeasuredac- likelytoflowtotheGroupanditscost mpactofexpectedcostsofabandoning. cordingtothecostandconsideredthei sinessactivities.Jointcontrolisthecontractuallyagreedsharingof obtainbenefitsfromtheenterpise'sbu onlyexistswhentheinvestorwhoneedstosharecontroloverim- controloveraneconomicactivity,and sintheeconomicactivityagrees.Significantinfluenceishavingthe portantfinancialandoperatingdecision kingforthefinancialandoperatingpoliciesofanenterprise,butnot powertoparticipateinthedecision-ma oliciestogetherwithotherparties.Whentakigintoaccountinde- tocontrolorjointcontroloverthosep orsignificantinfluenceovertheinvestee,ithasconsideredthepo- terminingwhethertoexercisecontrol entcompaniesandotherholdingsofcurrentconvertiblecorporate tentialvotingrightssuchastheinvestm tablewarrantsandsoon. bondsoftheinvesteesandcurrentexecu theeq- mequityinvestmentscheckedbyusing thecurrentprofitorloss.Thelong-ter priceisincludedin edtothe heshareholders'equityshallbetransferr disposal,theoriginalpartincludedint uitymethod,inthe byacorrespondingpercentage. currentprofitorloss amount. NotestotheFinancialStatements
ExpectednetsalvagevaluereferstotheamountthattheGroupobtainsfromthedisposalofassetsafter deductingtheestimatedcostsofdisposalwhentheassumedfixedassets'expectedservicelifeisfullandin theexpectedstateattheendofservicelife. TheGroupshallreviewtheservicelifeoffixedassets,theestimatednetresidualvaluesanddeprecia- tionmethodatleastattheendoftheyear;ifthereisanychange,itshallbehandledasachangeinaccount- ingestimate. Whenthefixedassetsisatthedisposalorwhennofutureeconomicbenefitsexpectedfromtheuseor disposal,derecognitionoffixedassetsshallbemade.Thedisposaloffixedassetssales,transfer,scraporde- stroyshalldeductthebookvalueandrelatedtaxes,thedifferenceisincludedinprofitorloss. 10Constructioninprogress Constructioninprogressshallbemeasuredaccordingtotheactualcost,andtheactualcostsincluding theprojectexpenditureandotherrelatedcostsduringtheconstructionperiod.Constructioninprogressis notdepreciated.Constructioninprogressistransferredasfixedassetsinachievingitsintendeduse. 11Intangibleassets Intangibleassetsincludelanduserights,computersoftware,andcoredeposits. Theobtainedlanduserightsareoftenusedasanintangibleasset.Forthebuildingsindividuallydevel- oped,therelatedlanduserightandbuildings,constructioncostsshallbecheckedasintangibleassetsand fixedassets.Forthehousesandbuildingsobtainedbyoutsourcing,therelatedcostisallocatedbetweenthe landuserightandbuildings,ifitisdifficulttomaketherationalallocation,allshallbedisposedasfixedas- sets. Intangibleassetsshallbeinitiallymeasuredatcost.Theintangibleassetswithlimitedusefullife,since theyareavailableforuse,theiroriginalvaluelessestimatednetsalvagevalue,andprovisionforimpairment accumulatedamountshalladopttheequalinstallmentsamortizationwithintheirexpectedusefullifeusing thestraight-linemethod.Intangibleassetswithindefiniteusefullifearenotamortized. Attheendoftheterm,theusefullifeandamortizationofintangibleassetswithfiniteusefullifearere- viewed,andmakeadjustmentswhennecessary. 12Theforeclosedassets Theforeclosedassetsareinitiallymeasuredatfairvalue.Onthebalancesheetdate,theforeclosedassets shallbemeasuredinaccordancewiththebookvalueandnetrealizablevalue,whenthenetrealizablevalue islowerthanthebookvalue,depreciationprovisionshallbedrawnfortheforeclosedassets. Inthedisposaloftheforeclosedassets,thedifferencesbetweentheobtaineddisposalincomeandfore- closedassetsbookvalueareincludedinnon-operatingincomeorexpense. Theobtainedforeclosedassetsareconvertedtopersonaluse,thesettlementandtransfershallbecon- ductedaccordingtothecarryingamountbalanceofforeclosedassetsonthedateofconversion.Forthose thathavemakethedepreciationprovisionfortheforeclosedassets,thedepreciationprovisionshallbeset-
185 2011 Annual Report 186 ts ialStatemen totheFinanc Notes Post-retirementbenefits Annuityplan ytheBank(hereinafter ActiveemployeesoftheBankshallparticipateintheannuityplanestablishedb Socialinsurancepremiums ablishedbygovernment TheGroupisrequiredtoparticipateintheworkerssocialsecuritysystemest 14Employeecompensation forthecancellationofthelaborrelationswithemployees,dur- Inadditiontothecompensationgiven assetsisrecognized,itisnotreversedinsubsequentaccounting Onceanimpairmentlossfortheabove irvaluelessthenetamountafterthedisposalcostsandtheas- Therecoverableamountistheasset'sfa n-financialassets 13Impairmentofno sets, ong-termequityinvestments,fixedas teachbalancesheetdate,checkthel TheGroupshall,a ofthetotalwage,shallmake referredtoasthe"annuityplan").TheBank,pursuanttoacertainpercentage nprofitorlossatthetimeof paymenttotheannuityplan,thecorrespondingexpenditureshallbeincludedi irementbenefitsfortheem- payment.Ifthepensionplanassetsareinsufficienttopaythesupplementaryret ployees,theBankhasnofurtherresponsibilitytoinjectcapital. gprovidentfundsandother agencies,includingthebasicendowmentinsurance,medicalinsurance,housin allbeincludedinthecurrent socialsecuritysystem,andwhenthecorrespondingexpenditureoccurs,theysh profitorloss. ployeesrenderservicestotheGroup,theremunerationpayableto ingtheaccountingperiodwhentheem theemployeeisrecognizedasaliability. periods. ershallbeprevail.Thefairvalueofassetsshallbedeterminedbased sets'expectedfuturecashflows,thehigh fairtrade;incasethatthereisnosaleagreementbutanactivemar- onthepriceinthesaleagreementinthe minedinaccordancewiththebuyer'spriceoftheasset;incasethat ketofassets,thefairvalueshallbedeter arketofassets,thefairvalueofassetsisestimatedonthebasisofthe thereisnosaleagreementoranactivem udelegalfees,taxes,andhandlingchargesrelatedtodisposalofthe bestinformation.Costsofdisposalincl bybringingtheassettothesalecondition. assets,aswellasthedirectcostsincurred thereare servicelifeandotherassetstoseeif gress,theintangibleassetswithdefinite constructioninpro untises- nindication,thentherecoverableamo airment.Ifthoseassetshavedepreciatio signsofpossibleimp imatethe individualbasis,ifitisdifficulttoest recoverableamountisestimatedonan timated.Theassets' recover- eassetgroupthattheassetbelongs,the ofanindividualasset,onthebasisofth recoverableamount determined.Iftheasset'srecoverableamountislessthanitscarrying ableamountoftheassetgroupshallbe tallowancesshallbemadeaccordingtothedifference,andbein- value,theprovisionforassetimpairmen cludedinthecurrentprofitorloss. atthesametime. tledandtransferred NotestotheFinancialStatements
Post-retirementbenefitsincludeearlyretirementbenefitsandsupplementalretirementbenefits. Theinternalearlyretirementbenefitsrefertothewelfarecostspaidtotheemployeeswhovoluntarily withdrawfromtheworkpostforrestnotmeetingthestateretirementage,andareapprovedbytheBank's management.TheBankshall,sincethestartingdateofearlyretirementarrangements,paytheearlyretire- mentbenefitstoemployeeswhoreceivetheinternalearlyretirementinthedomesticinstitutionsuntilthey reachnormalretirementagerequiredbytheState. Post-retirementbenefitsobligationsshallbecalculated,onthebalancesheetdate,byindependentac- tuariesusingtheprojectedbenefitunitmethod,theactuarialgainsorlossescausedasaresultoftheactuarial assumptionschangeshallbeincludedinothercomprehensiveincomeofthecurrentoccurringperiod,and thenewservicecostsandinterestcostsshallbeincludedintheprofitorlossinthecurrentperioditoccurs.. 15Thetransferofassetsattachedtorepurchaseconditions Financialassetspurchasedunderresaleagreements Accordingtotheagreementcommitments,thefinancialassetstoberesoldonafuturespecificdateare recognizedonthebalancesheet.Thecostpaidtobuythoseassetsshallbelistedunderresalefinancialassets inthebalancesheet.Thedifferencebetweenthebuyingpriceandresellingpriceshallberecognizedac- cordingtoeffectiveinterestmethodandincludedintheinterestincome. Paymentofsellingthebuy-backfinancialassets Undertheagreementcommitment,thesoldfinancialassetsboughtbackonafuturespecificdateshall notbederecognizedonthebalancesheet.Thepaymentobtainedbysellingsuchassetsshallbelistedasthe paymentofthesoldbuy-backfinancialassetsinthebalancesheet.thedifferencebetweenthesellingprice andrepurchasepriceshallberecognizedaccoringtotheeffectiveinterestmethodandincludedininterest expense. 16Estimatedliabilities WhentheGroupassumesthecurrentobligationsdueapastevent,andislikelytoberequiredtosettle theobligation,theGroupwillconfirmtheprojectedliabilitiesfortheobligation. Theamountrecognizedastheestimatedliabilitiesshouldbethebestestimatefortheconsiderationsto bepaidfortheunfulfilledcurrentobligationsattheendofeachreportingperiod,aftertakingintoaccount therelatedrisksanduncertainties.Iftheexpectedliabilitiesarecalculatedaccordingtotheestimatedcash flowsoftheexpenditurerequiredbytheexpectedfulfillmentofthecurrentobligations,itscarryingamount isthepresentvalueofthecashflows(wheretheeffectissignificant). Ifpartorallexpectedeconomicbenefitsrequiredtooutflowforthesettlementofliabilitiesisexpected togetthird-partycompensation,thereceivablesshallberecognizedastheassetswhentheamountofcom- pensationisbasicallydecidedtobeabletoreceiveandthereceivablescanbereliablymeasured. 17Interestincomeandexpense Interestincomeandexpenseshallbecalculatedinaccordancewiththeamortizedcostoftherelatedfi-
187 2011 Annual Report 188 ts ialStatemen totheFinanc Notes astherelateddeferred Undernormalcircumstances,alltaxabletemporarydifferencesarerecognized Deferredincometax eirtaxbases,andtem- Thedifferencebetweenthecarryingvalueofcertainassetsandliabilitiesandth 20Incometax Incometaxexpensecomprisescurrentincometaxanddeferredincometax. Currentincometax rrentandpriorperiods Onthebalancesheetdate,thecurrentincometaxliabilities(orassets)inthecu recognizedneedstorefund,ifthereisthebalanceoftherelat- Ifthegovernmentsubsidythathasbeen llberecognizedasdeferredincome,andshallbeequallydis- Governmentgrantsrelatedtoassetssha yassets,theyshallbemeasuredattheamountreceivedorre- Iftheggovernmentgrantsaremonetar ionincome 18Feeandcommiss iswhenservicesareprovided. incomeisrecognizedonanaccrualbas Feeandcommission nts 19Governmentgra rn- assetstheGroupobtainsfromthegove aremonetaryassetsandnon-monetary Governmentgrants totorecognizethedeferred incometaxliabilities.Fordeductibletemporarydifferences,theGroupislikely jectwhichisnotrecognized porarydifferencesofthedifferencebetweenbookvalueandtaxbasisofthepro taxlaw,thedeferredincome asassetsandliabilitiesbutcandeterminethetaxbasisinaccordancewiththe tliabilitymethod. taxassetsanddeferredtaxliabilitiesshallberecognizedbyusingthebalanceshee taxlaws. shallbemeasuredattheexpectedpayable(orreturn)incometax,accordingto instthecarryingamountofthedeferredrevenuebalance,theexcess eddeferredincome,itshallbeoffsetaga fitorloss;ifthereisnodeferredincome,itshallbeincludeddirectly partshallbeincludedinthecurrentpro intheprofitorloss. andincludedinthecurrentprofitorloss.Governmentgrantrelated tributedinthelifeoftherelatedassets ortherelatedcostsandlossesinthelaterperiod,shallberecognized toincome,ifitisusedtocompensatef iodwhentherelevantexpensesarerecognized,shallbeincludedin asdeferredincome,andduringtheper compensatefortherelatedcostsandlosses,itshallbeincludeddi- thecurrentprofitorloss;ifitisusedto rectlyinthecurrentprofitorloss. non-monetaryassets,theyshallbemeasuredatfairvalue;ifthefair ceivable.Iftheggovernmentgrantsare allbemeasuredattheirnominalamounts.Thegovernmentgrants valuecannotbereliablyobtained,itsh ountshallbeincludeddirectlyinthecurrentprofitandloss. measuredaaccordingtothenominalam talinvestedbythegovernmentasanowner.Governmentgrantsare mentfreeofcharge,excludingthecapi rantsandincome-relatedgovernmentgrants. dividedintoasset-relatedgovernmentg tprofitor estmethod,andincludedinthecurren ancialliabilitiesusingtheeffectiveinter nancialassetsandfin calculated tractinterestrateissmaller,itmaybe betweentherealinterestratesandcon loss.Ifthedifference hecontractrates. inaccordancewitht NotestotheFinancialStatements
taxassetsusingtaxableincometodeductthedeductibletemporarydifferencesasalimit.Butthetaxable temporarydifferencesrelatedwiththeinitialrecognitionofgoodwill,andrelatedwiththeassetsorliabilities initiallyrecognitionoccurringduringthetaxableincome(ordeductibleloss)notinabusinesscombination ortheoccurrencethatdoesnotaffectaccountingprofitarenotrecognizedforthedeferredtaxliabilities. Forthecarryforwarddeductiblelossesandtaxcreditsthereafter,withtheprobablefuturetaxablein- comeusedtooffsettaxlossesandtaxdeductibleasthelimit,thecorrespondingdeferredincometaxassets shallberecognized. TheGrouprecognizeddeferredincometaxliabilitiesfortaxabletemporarydifferencesarisingfrom subsidiaries,associatesandjointventures,exceptwheretheGroupisabletocontrolthetimingofthere- versaloftemporarydifferences,andthatthetemporarydifferencesintheforeseeablefutureisunlikelytobe reversed.Astothedeductibletemporarydifferencesrelatedtothesubsidiaries,associatesandjointventures, onlywhenthetemporarydifferencesintheforeseeablefutureislikelytobereversed,andinthefuture,itis likelytobeusedtooffsetthedeductibletemporarydifferencestaxableincome,theGroupshallrecognizeit asthedeferredincometaxassets. Onthebalancesheetdate,thedeferredincometaxassetsanddeferredtaxliabilitiesshall,accordingto taxlaw,bemeasuredinaccordancewiththeapplicabletaxratesduringtheperiodoftheexpectedrecovery oftherelatedassetorsettlementoftherelatedliability. Exceptthatthecurrentincometaxanddeferredtaxrelatedwiththetransactionandmattersdirectly includedinothercomprehensiveincomeortheowner'sequityareincludedinothercomprehensivein- comeorowner'sequity,aswellasdeferredincometaxoccurredinthebusinesscombinationadjustsbook valueofgoodwill,therestofthecurrentincometaxanddeferredtaxexpenseorincomeareincludedinthe currentprofitorloss. Onthebalancesheetdate,thecarryingvalueofthedeferredincometaxassetsisreviewed,andifin thefuture,itislikelytobeunabletoobtainthesufficienttaxableincometooffsetthedeferredincometax assetsinterests,itmaywriteoffthecarryingvalueofdeferredincometaxassets.Itispprobablethatwhen thesufficienttaxableincomeisobtained,thereducedamountshouldbereversed. WhentheGrouphasastatutoryrightofthenetting,andtheintenttosettlebynettingoracquiresas- setsandsettlestheliabilitysimultaneously,theGroup'scurrenttaxassetsandthecurrenttaxliabilitiesare listedasthenetaftertheoffset. Whenyouhavethelegalrighttooffsetcurrenttaxassetsandthecurrenttaxliabilities,anddeferred incometaxassetsanddeferredtaxliabilitiesarerelatedtotheincometaxleviedbythesametaxationau- thorityonthesametaxableentityorrelatedtodifferenttaxableentities,butduringthereversalperiodof deferredincometaxassetsandliabilitieswiththefutureimportance,thetaxpayerinvolvesintendstooffset currenttaxassetsandliabilitiesorobtaintheassetsandsettletheliabilitiesatthesametime,thedeferredin- cometaxassetsandthedeferredtaxliabilitiesoftheGroupshallbelistedasthenetaftertheoffset.
189 2011 Annual Report 190 ts ialStatemen totheFinanc Notes iaryshallbedetermined Theprincipalaccountingpoliciesandaccountingperiodsadoptedbythesubsid wspriortothedisposal AstothesubsidiaryattheGroup'sdisposal,theresultsofoperationsandcashflo 23Thepreparationmethodofconsolidatedfinancialstatements asisofcontrol.Control Thescopeoftheconsolidatedfinancialstatementsshallbedeterminedontheb tinglease TheGroupasalessorrecordstheopera zedasthecurrentprofitandlossonastraight-linebasisover Operatingleaserentalincomeisrecogni glease TheGroupaslesseerecordstheoperatin includedinthecurrentprofitorlossonastraight-linebasis Operatingleaserentalexpenseshallbe 22Lease gtheleaseofalltherisksandrewardsrelatedwiththeowner- Thefinanceleaseisessentiallytransferrin gencybusiness 21Thetrusteeanda En- loansandentrustedagentinvestment. ftheGroupmainlyincludeentrusted Fiduciaryactivitieso esandaccountingperiods.If inaccordancewiththeunifiedregulationsoftheCompany'saccountingpolici datedincomestatementand date(thedateoflossofcontrol)havebeenproperlyincludedintheconsoli consolidatedcashflowstatement. ngpoliciesofanotherenter- referstotherightthattheGroupisabletodeterminethefinancialandoperati prise,andtoobtainbenefitsfromtheenterprise'sbusinessactivities. etimeofoccurrence,within theleaseperiods.Theinitialdirectcostswithlargeramountiscapitalizedatth ccordancewiththesameba- theleaseperiod,itwillbeincludedinthecurrentprofitorlossperiodicallyina inthecurrentprofitorloss sisasrentalincome;otherinitialdirectcostswithsmalleramountareincluded losswhenitactuallyoccurs. whenitoccurs.Thecontingentrentalshallbeincludedinthecurrentprofitor tsareincludedinthecurrentprofitorloss.Thecontingentrental overtheleaseperiods.Initialdirectcos losswhenitactuallyoccurs. shallbeincludedinthecurrentprofitor ventuallybetransferredormaynottransferred.Theleaseotherthan shipofanasset,anditsownershipmaye thefinanceleasesistheoperatingleases. ordance idefunds,theGroup(astrustee)inacc othatthecustomers(asprincipal)prov trustedloansrefert supervise, nterestrates,actsasanagenttogrant, bjectoftheloans,use,amount,term,i withtheprincipalo ebysuch ecoveryofloans,theriskshallbeborn dtheGroupprovidesassistanceinther andusetheloans,an principal alreceiptofthefundsprovidedbythe onlychargesafee.TheGroup'sactu principal,theGroup wishes,it tingtheloansaccordingtoprincipal's entrustedloanfundprojects;whengran areincludedinthe ojectsinaccordancewiththeamountactuallypaidorinvested.A- shallbeincludedintheentrustedloanpr eprincipal,theGroupshallmaketheinvestmentonbehalfofthe gentfinancialfundsareprovidedbyth greedscope.TheGrouponlychargesahandlingfee,nottobearthe principalintheagreedperiodandthea ancialassets.Theaboveagentfinancialassetsandthematuritymakes majorrisksassociatedwiththeagentfin theprincipalcheckedoutsidethebalancesheet. theobligationsofreturningtheassetsto NotestotheFinancialStatements
theaccountingpolicies/accountingperiodadoptedbythesubsidiaryisinconsistentwiththatofthecom- pany,inthepreparationoftheconsolidatedfinancialstatements,theGrouphasmadethenecessaryadjust- mentstothefinancialstatementsofthesubsidiariesinaccordancewiththecompany'saccountingpolicies/ accountingperiod.. AllthemajoraccountsandtransactionsbetweentheBankanditssubsidiaryandbetweenthesub- sidiariesshallbeeliminatedonconsolidation. Theowner'sequityofthesubsidiarywhichdoesnotbelongtotheparentcompany'shallbelistedas the"minorityinterest",intheconsolidatedbalancesheet,itshallbelistedas"minorityinterests"underthe itemoftheowner'sequity.Theshareofnetprofitorlossofsubsidiariesbelongtotheshareofminorityin- terestsshallbelistedunderthe"minorityprofitorloss"underthenetprofitintheconsolidatedincome statement. Ifthesubsidiary'sminorityshareholdersshareofcurrentlossesexceededtheshareenjoyedbythemi- norityshareholdersintheowner'sequityinthesubsidiaryatthebeginning,thebalancestilloffsetsthemi- norityinterests. Forthetransactionswiththethepurchaseofthesubsidiary'sminoritystakeordisposalofpartofthe equityinvestment,butwithnolossofcontroloverthesubsidiaryshallbecheckedasanequitytransaction, Theadjustmentshallbemadetothecarryingvalueoftheparentcompany'sowners'equityandminority intereststoreflectitssubsidiaryinterests.Thedifferencebetweentheminorityinterestadjustmentsandthe fairvalueofthepaid/receivedconsiderationadjustthecapitalsurplus,ifthecapitalsurplusisnotsufficient, adjusttheretainedearnings. Asforthelossofcontrolovertheoriginalsubsidiaryduetothedisposalofsomeequityinvestmentsor otherreasons,theremainingequityshallbere-measuredinaccordancewithitsfairvalueonthedateofloss ofcontrol.Thesumoftheconsiderationsobtainedbythedisposalofequityandthethefairvalueofthere- mainingequityminusthedifferencebetweentheshareofnetassetscalculatedaccordingtotheoriginal shareholdingratiothatshouldbeenjoyedbycontinuouscalculationsincethepurchasedateofthetheorigi- nalsubsidiaryprice,whichshallbeincludedintheinvestmentincomeofthecurrentperiodoflossofcon- trol.Theothercomprehensiveincomewiththeoriginalsubsidiary'sinvestmentshallbeconvertedintothe currentinvestmentincomeofthecurrentperiodatthetimeoflossofcontrolrights. VTheimportantjudgmentsintheapplicationofaccountingpoliciesandkeyassump- tionsanduncertaintiesusedinaccountingestimates TheGroup,duringtheprocessaccountingpolicydescribedintheNote4,duetotheinherentuncer- taintiesoftheoperatingactivities,theGroupneedstojudgethebookvalueofthestatementitemsthatcan notbeaccuratelymeasured,estimatesandmakesassumptions.Thesejudgments,estimatesandassumptions arebasedonpasthistoricalexperienceofthemanagementoftheGroup,andmadebytakingintoaccount otherrelevantfactorsandtheactualresultscoulddiffermateriallyfromtheestimatesoftheGroup.
191 2011 Annual Report 192 ts ialStatemen totheFinanc Notes 4Hold-to-maturityinvestmentsimpairment pairedtoalargeextent TheGroup'sdeterminationofwhetherthehold-to-maturityinvestmentisim ntwithnotsignificant Inadditiontothespecificcircumstances(forexample,thesaleofinvestme 3Held-to-maturityinvestments rivativefinancialassetsasheld-to-maturityinvestmentswhich TheGroupwillcategorizethenon-de 2Thefairvalueoffinancialinstruments activemarkets,theGroupdeterminesitsfairvaluethrougha Astothefinancialinstrumentswithno ancesimpairment (1)Theloansandadv eof oupisrequiredtojudgethebookvalu tdate,theimportantareasthattheGr Onthebalanceshee the dgments,estimatesandassumptionson egularlyreviewtheaforementionedju TheGroupmakesr entincludestheseriousfi- isdependentonthejudgmentofmanagement.Objectiveevidenceofimpairm nuetobetradedinanactive nancialdifficultiesoftheissuerwhichmakesthefinancialassetunabletoconti orprincipalpaymentsdefault market,unabletofulfillthetermsofthecontract(forexample,wheninterest bjectiveevidenceofimpair- occurs).Duringtheprocessofjudgment,theGroupisrequiredtoassesstheo entstomaturity,itshallre- amounttowardsthematuritydate),theGroupisnotabletoholdsuchinvestm classifyalloftheseinvestmentsasavailable-for-salefinancialassets. fixedmaturitiesandthatthe complywiththeconditions,havefixedordeterminedrepaymentamountand onofsuchkindrequiresalot Grouphasthepositiveintentionandabilitytoholdtomaturity.Theclassificati pwillassestheintentionand ofjudgmentinvolved.Duringtheprocessofmakingthisjudgment,theGrou abilityforholdingsuchhold-tomaturityinvestments. ationmethodsincludethediscountedcashflowmodelanalysis.The varietyofvaluationmethods.Thesevalu ssuchastheirownandcounterparty'screditrisk,theunderlyingas- Groupisrequiredtoestimatetheaspect lueoffinancialinstruments. sumptionschangewillimpactthefairva theloanportfolioonaregularbasis.TheGroupshall,basedonthe TheGroupassessestheimpairmentof hreflectthattheloanportfoliocashflowissignificantlyreduced, objectivebasisofobservabledatawhic indicationofimpairment.Whenthereductionincashflowcannot judgewhethertheloanportfoliohasthe singleloanisnotsignificant,themanagementusesacombination beidentifiedinanindividualformora heloanportfoliobasedonhistoricallossexperienceforsimilarassets. way,estimatesthefuturecashflowsoft dsandassumptionsusedtoestimatetheamountandtimeoffuture TheGroupregularlyreviewsthemetho rencebetweentheestimatedimpairmentlossesonloansandactual cashflows,inordertoreducethediffe loanimpairmentlosses. listedasfollows: atesandmakesassumptionsaboutare assets,liabilities,estim hange,its stimatesaffectsonlytheperiodofthec perations.ThechangesinAccountingE basisofcontinuingo angeand impactsonthecurrentperiodofthech intheperiodofthechange;asforthe impactisrecognized eriod. ecurrentchangeperiodandthefuturep eimpactamountisrecognizedduringth thefutureperiod,th NotestotheFinancialStatements
mentandpredictstheimpactoffuturecashflowsoftheinvestment. 5Available-for-salefinancialassets TheGroup'sdeterminationofwhethertheavailable-for-salefinancialassetsisimpairedtoalargeex- tentisdependentonthejudgmentofmanagement.Intheprocessofthejudgment,theGroupisrequiredto assesstheextentanddurationofthefairvalueoftheinvestmentbelowthecost,aswellasthefinancialcon- ditionoftheinvesteeandshort-termbusinessoutlook,includingindustryconditions,technologicalchange, creditrating,defaultratesandcounterpartyrisks. 6Incometax DuringtheGroup'snormalbusinessactivities,inpartofthetransactionprocessingandcalculationof thefinaltax,thereisacertainuncertainty.Whethersomeoftheprojectsareabletobedisbursedfromcosts andexpensesbeforetaxrequiresidentificationofthecompetentauthorityoftheGovernment.Ifthereis differencebetweenthefinaldeterminationresultsofthesetaxmatterswiththeinitialamountincludedin theaccount,thedifferencewillimpactthecurrentanddeferredtaxinitsderecognitionperiod. 7Post-retirementbenefits TheBank,basedonvariousassumptions,usestheprojectedbenefitunitmethodtodeterminethe post-retirementbenefitsliabilities.Theseassumptionsincludediscountrate,thegrowthrateoftheaverage medicalcosts,subsidygrowthrateofinternalretiredpersonnelandotherfactors.Theactualamountandthe estimatedamountmaybedifferent.Anydifferencesofactualresultsorchangesofassumptionsmayaffect ourbank'spost-retirementbenefitscosts,othercomprehensiveincomeandtheremainingbalanceoftheli- ability. VI.CorrectionofPreviousAccountingErrors Ourbankhasfoundinthecurrentyearthatthereexistaccountingerrorsinthepreviousyear.Inthe preparationofthecurrentfinancialstatements,wehavecorrectedsuchaccountingerrorsthathaveexisted inthefinancialstatementsofthepreviousyear,whichwillimpacttheassets,liabilitiesandshareholder'seq- uityatthebeginningoftheyearandthenetprofitinthecomparableyear.Themajoraccountingerrorsin thefinancialstatementofthepreviousyeararedescribedasfollows: (1) AsdescribedinNote1,ourbankinheritedalltheassetsandliabilitiesoftheoriginalfourbanks andcooperativeswithrelevantservicesassignedtoourbank.Inaccordancewiththeenterpriseaccounting standard,suchtransactionisidentifiedasamalgamationundernon-identicalcontrol.Therecognizableas- sets,liabilitiesandcontingentliabilitiesincompliancewithconfirmationconditionsobtainedfromthefour banksbyourbankinthistransactionshallbecalculatedatafairvalueonDec.22,2009.Thereforeapro- fessionalevaluationcorporationwasemployedbyourbankonDec.22,2009toevaluatetherecognizable assetsandtheliabilitiestakenoverbyourbankfromtheacquisitionoftheundertakingsofthefourbanks andissueanevaluationreportaswell.Accordingtotheevaluationresult,thefairvalueofthecoredeposit recognizableintheacquisitionprocessisRMB201.00millionYuanwhichwillbeamortizedoverthecom-
193 2011 Annual Report - - 38,607 194 554,572 347,462 3,080,000 4,020,641 82,864,979 78,844,338 adjustment Amountafter RMBThousand - - 51,301 (9,996) 542,000 275,036 442,040 (390,739) (365,000) amount Adjusted RMBThousand - 12,572 48,603 72,426 365,000 3,080,000 3,578,601 82,813,678 79,235,077 adjustment Amountbefore RMBThousand - 38,607 83,063 ts ialStatemen totheFinanc Notes 554,572 348,093 3,080,000 4,104,335 83,106,580 79,002,245 adjustment Amountafter RMBThousand - (961) (9,996) 542,000 274,286 440,374 (97,581) (537,955) (365,000) amount Adjusted OurGroupOurBank RMBThousand 12,572 48,603 73,807 83,979 365,000 3,080,000 3,663,961 83,204,161 79,540,200 adjustment Amountbefore RMBThousand nConsulting(Shanghai)Co.,Ltd(independentexternal OurbankhasemployedTowersWatso B342.00millionYuan,theexcesspart edasofDecember22,2009,TheRM Ourbankwasfound nwasallowedforbyourbank,wehavemadearetroac- Asnoriskassetsdepreciationpreparatio orsofthepreviousyearshasalsoexertedinfluencetothe Astheadjustmenttotheaccountingerr ) ) ) ) 3 2 4 5 orrectionofearlieraccountingerrorsontheassets,liabilitiesand Theinfluenceoftheabovementionedc ( ( ( ( Sharecapital Capitalreserve Surplusreserves Generalriskpreparation Undistributedprofit Minorityshareholder'sequity Totalofshareholder'sequity Totalassets Totalliabilities Shareholder'sequity listedasfollows: shareholder'sequityonDec.31,2010is aidinthe tweentheacquisitionconsiderationsp MB340.00millionYuandifferencebe ing8years.TheR ableassets ankandthefairvalueoftherecogniz ndertakingsofthefourbanksbyourb acquisitionoftheu initiative shallberecognizedasgoodwill.Asno iesundertakenduringthesameprocess obtainedandliabilit emadea nourbankwasestablished,butwehav etothegoodwillandcoredepositwhe recognitionwasmad nttosuchanaccountingerror; retroactiveadjustme thecapital fthenewsharesshallberecognizedas ftheshareholdersoverthefacevalueo ofthecontributiono lreserve.Asnoinitiativerecognitionwasmadetothecapitalstock stockpremiumandcalculatedascapita ,wehavemadearetroactiveadjustmenttosuchanaccountingerror; premiumwhenourbankwasestablished rialcomputationoftheretiredemployeewelfareexpensetobeun- actuarialinstitution)toconductanactua rialreportaswell.Accordingtothisreport,theliabilityinrelationto dertakenbyourbankandissueanactua ourbankwascomputedatRMB146.00millionYuanbyDec.31, thewelfareoftheretiredemployeesof eactuarialliabilitiesinthepreviousyears,wehavemadearetroac- 2010.Asnorecognitionwasmadetoth rror; tiveadjustmenttosuchanaccountinge rror; tiveadjustmenttosuchanaccountinge etaxetc.,wehavemadearetroactiveadjustmenttosuchanac- incometaxexpenseanddeferredincom countingerror; NotestotheFinancialStatements
Theinfluenceoftheabovementionedcorrectionofearlieraccountingerrorsonshareholder'sequityon Jan.1st,2010islistedasfollows:
OurGroupOurBank Amountbefore Adjusted Amountafter Amountbefore Adjusted Amountafter adjustment amount adjustment adjustment amount adjustment RMBThousand RMBThousand RMBThousand RMBThousand RMBThousand RMBThousand Shareholder'sequity Sharecapital 3,080,000 - 3,080,000 3,080,000 - 3,080,000 Capitalreserve 9 583,385 583,394 9 583,385 583,394 Surplusreserves 1,742 (672) 1,070 1,742 (672) 1,070 Generalriskpreparation ------Undistributedprofit 15,442 (5,972) 9,470 15,678 (6,052) 9,626 Minorityshareholder'sequity 23,625 (117) 23,508 - - - Totalofshareholder'sequity 3,120,818 576,624 3,697,442 3,097,429 576,661 3,674,090
Theinfluenceoftheabovementionedcorrectionofearlieraccountingerrorsnetprofitin2010islisted asfollows:
OurGroupOurBank Amountbefore Adjusted Amountafter Amountbefore Adjusted Amountafter adjustment amount adjustment adjustment amount adjustment RMBThousand RMBThousand RMBThousand RMBThousand RMBThousand RMBThousand Netprofit 471,780 (94,865) 376,915 468,607 (93,234) 375,373
VII.MainTaxes 1.EnterpriseIncomeTax InaccordancewiththeEnterpriseIncomeTaxLawofthePeople'sRepublicofChina,ourbankwill paytheenterpriseincometaxatarateof25%. Thepre-taxdeductionontheenterpriseincometaxshallbesubjecttorelevantregulationsofthe state. 2.BusinessTax Ourbankanditssubsidiaryshallpaythebusinesstaxontheirtaxableturnoveratarateof5%forour bankand3%foritssubsidiary. Businesstaxshallbepaidlocallywherethebranchesshalldeclareandpaythetaxtothelocaltaxation department. 3.UrbanMaintenanceandConstructionTax Theurbanmaintenanceandconstructiontaxshallbecalculatedandpaidby1-7%ofthebusinesstax. 4.EducationalSurcharge
195 2011 Annual Report 51.00 51.00 51.00 51.00 51.00 100.00 196 474,058 320,131 9,190,443 5,683,656 ofVotes 15,668,288 Proportion Dec.31,2010 RMBThousand 51.00 51.00 51.00 51.00 51.00 100.00 ,2011inaccordance 765,230 487,233 st 16,112,679 10,654,656 28,019,798 ofOurBank Dec.31,2011 RMBThousand Year-endShareholding RatioonPaidInvestment 484,936 320,131 9,243,002 5,685,590 15,733,659 20,000 50,000 50,000 30,000 20,000 20,000 Capital OurGroupOurBank Dec.31,2010 Registered 12/31/2011 RMBThousand 785,903 542,393 ts ialStatemen totheFinanc Notes 16,160,742 10,768,291 28,257,329 Business andRangeof BankingIndustry BankingIndustry BankingIndustry BankingIndustry BankingIndustry BankingIndustry BusinessNature Dec.31,2011 RMBThousand (1) (2) (3) Note Hubei,China Heilongjiang,China Heilongjiang,China Heilongjiang,China Heilongjiang,China Heilongjiang,China .,Ltd.isasubsidiaryestablishedbyourbankonDec.26,2011. Note2:XiaochangBenfuRuralBankCo 1.Cashandbalanceswiththecentralbank ownedbyourbankbytheendofboththepreviousyearand Note1:Allthesesubsidiariesarethose rbankby3%ofthebusinesstax. chargeshallbecalculatedandpaidbyou Theeducationalsur ed argebasedon1%ofthepaidvalue-add lateandpaythelocaleducationalsurch Ourbankshallcalcu sidiaryofourbankislistedasfollows: Thebasicinformationoftheownedsub ncialStatements NotestoMainItemsoftheFina egistration NameofSubsidiaryPlaceofR Cash Legaldepositreserveinthecentralbank Excessdepositreserveinthecentralbank Otherfundsinthecentralbank Total Yi'anRunshengRuralBankCo.,Ltd(Note1) JixianRunshengRuralBankCo.,Ltd(Note1) KeshanRunshengRuralBankCo.,Ltd(Note1) XiaochangBenfuRuralBankCo.,Ltd(Note2) DongningRunshengRuralBankCo.,Ltd(Note1) DorbetRunshengRuralBankCo.,Ltd(Note1) Ⅸ currentyear. changedto2%asofFeb.1 xandbusinesstax.Thispercentagewas tax,consumptionta Standard ngProvinceontheAdjustmentofthe thePeople'sGovernmentofHeilongjia withtheNoticeof 1]No.13). ducationalSurcharges(HeiZhengFa[201 forLevyingLocalE tedFinancialStatement aryandScopeofConsolida VIII.OwnedSubsidi NotestotheFinancialStatements
(1)Thegroup'slegalreserve,depositedinthepeople'sbankofChina("thepeople'sbank"),islegal reserveinRMBandforeigncurrencies.Depositamountiscalculatedbasedontheamountofdepositab- sorbedbyourbankinthatyearinconformitywithrelevantregulations.Thelegalreserveshallnotbeused forthepurposeofeverydayoperationofourgroup.ThePeople'sBankofChinawillnotchargeintereston thedepositedreservesforforeignexchangeproceeds.
ByDec.31,2011ByDec.31,2010
TheLegalReserveRatiooftheRMBDeposit 19%(RuralBank14%) 16.5%(RuralBank11.5%)
TheLegalReserveRatiooftheForeignCurrencyDeposit 5% 5%
(2)TheexcessamountofdepositreservedepositedatthePeople'sBankofChinaismainlyusedfor fundsettlement. (3)TheotherfundstoredinthePeople'sBankmainlyincludethecaptureputsthefinancedepositof theCentralBankandthePeople'sBankdon'tallowinteresttothecaptureputsdeposit. 2.DuefromPlacementswithBanksandOtherFinancialInstitutions
OurGroupOurBank
Dec.31,2011 Dec.31,2010 Dec.31,2011 Dec.31,2010
RMBThousand RMBThousand RMBThousand RMBThousand Fundsindomesticbanks 47,478,790 29,255,234 47,403,368 29,352,493
Fundsinabroadbanks 12,281 353 12,281 353
Total 47,491,071 29,255,587 47,415,649 29,352,846
197 2011 Annual Report - - - - 5,580 39,984 39,984 44,053 98,689 19,224 23,923 12,686 21,931 198 226,086 5,529,935 5,569,919 2,670,000 2,670,000 Dec.31,2010 Dec.31,2010 Dec.31,2010 RMBThousand RMBThousand RMBThousand - 43,823 19,303 12,256 10,172 549,813 412,554 105,815 305,590 171,012 405,680 3,188,051 4,150,418 1,073,651 12,636,424 16,786,842 18,966,897 18,966,897 Dec.31,2011 Dec.31,2011 Dec.31,2011 RMBThousand RMBThousand RMBThousand - - - - 5,580 39,984 39,984 45,861 98,915 19,224 23,923 12,686 21,931 228,120 2,670,000 2,670,000 5,529,935 5,569,919 OurGroupOurBank OurBank OurGroup OurGroupOurBank Dec.31,2010 Dec.31,2010 Dec.31,2010 RMBThousand RMBThousand RMBThousand - ts ialStatemen totheFinanc Notes 43,823 19,303 12,256 10,172 109,580 305,590 170,850 405,680 549,813 412,554 1,077,254 3,188,051 4,150,418 18,966,897 18,966,897 12,636,424 16,786,842 Dec.31,2011 Dec.31,2011 Dec.31,2011 RMBThousand RMBThousand RMBThousand 5.InterestReceivable ets 4.BuyingBacktheSaleofFinancialAss and hthealterationschargedtotheprofits easuredattheirfairvalueandofwhic 3.Financialassetsm Interestoffinancialassetsmeasuredattheirfairvalueandofwhichthe alterationschargedtotheprofitsandlossesinthecurrentperiod Interestofavailable-for-salefinancialassets Interestofreceivables Interestoftheheld-to-maturityinvestment Interestoffundsinthecentralbank Total Interestofloansandadvances Interestofredemptorymonetarycapitalforsale Interestoffundsinbanks Bonds Notes Total Tradablefinancialassets Publicentitybonds Financialinstitutionbonds Corporateentitybonds Subtotal whichthe Financialassetsmeasuredattheirfairvalueandof urrentperiod alterationschargedtotheprofitsandlossesinthec Financialproducts Total period lossesinthecurrent NotestotheFinancialStatements
6.GrantingofLoansandadvances (1)Loansandadvancesgrantedtoindividualsandbusinessesinthefollowingways:
OurGroupOurBank
Dec.31,2011 Dec.31,2010 Dec.31,2011 Dec.31,2010
RMBThousand RMBThousand RMBThousand RMBThousand
Companyloansandadvances
LoansandAdvances 16,328,927 13,208,320 16,164,223 13,191,720
Notesdiscounted 1,067,123 1,272,923 1,004,419 1,173,231
Subtotal 17,396,050 14,481,243 17,168,642 14,364,951
Individualloansandadvances
Housingmortgage 1,634,104 1,275,493 1,634,104 1,275,493
Privatemanagement 4,638,130 2,907,414 4,551,886 2,859,497
Farmloan 1,161,235 679,557 852,639 516,426
Others 816,643 696,786 803,980 687,695
Subtotal 8,250,112 5,559,250 7,842,609 5,339,111
Totalamountofloansandadvances 25,646,162 20,040,493 25,011,251 19,704,062
Preparationforlossofgrantedloansandadvances
Ofwhich:Singlemodeassessment (114,982) (86,664) (114,982) (86,664)
Combinationevaluation (399,373) (218,671) (392,998) (215,636)
Accountvalueofloansandadvances 25,131,807 19,735,158 24,503,271 19,401,762
(2)Issueloansandadvanceswayaccordingtotheassessmentlistedbelow OurGroup
Recognizedimpairedloansandadvancesincash(ii) Loansandadvances Reservefor Reservefor Percentageofrecognized preparedforaccrued potentiallosses potentiallosses impairedloansand losses assessedby assessedby assessedby advancestototalloans compoundmode(i) compoundmode individualmode SubtotalTotal andadvances(%) Year-endBalance Totalamountofloansandadvances 25,445,426 23,378 177,358 200,736 25,646,162 0.78 Lossprovisionsofloansandadvances (385,843) (13,530) (114,982) (128,512) (514,355) Accountvalueofloansandadvances 25,059,583 9,848 62,376 72,224 25,131,807
199 2011 Annual Report 0.80 1.30 1.28 200 andadvances(%) andadvances(%) andadvances(%) impairedloansand impairedloansand impairedloansand advancestototalloans advancestototalloans advancestototalloans Percentageofrecognized Percentageofrecognized Percentageofrecognized (305,335) (507,980) (302,300) 20,040,493 19,735,158 25,011,251 24,503,271 19,704,062 19,401,762 71,977 200,407 256,781 150,597 256,781 150,597 SubtotalTotal SubtotalTotal SubtotalTotal (128,430) (106,184) (106,184) 62,376 230,567 143,903 230,567 143,903 177,358 (86,664) (86,664) (114,982) Reservefor potentiallosses assessedby individualmode Reservefor potentiallosses assessedby individualmode Reservefor potentiallosses assessedby individualmode ts ialStatemen totheFinanc Notes 6,694 9,601 6,694 26,214 26,214 23,049 (19,520) (19,520) (13,448) Reservefor potentiallosses assessedby compoundmode Reservefor potentiallosses assessedby compoundmode Reservefor potentiallosses assessedby compoundmode (196,116) (199,151) (379,550) 19,447,281 19,783,712 19,584,561 24,810,844 24,431,294 19,251,165 assessedby assessedby assessedby h(ii) Recognizedimpairedloansandadvancesincas h(ii) Recognizedimpairedloansandadvancesincas oansandadvancesincash(ii) Recognizedimpairedl compoundmode(i) Loansandadvances preparedforaccrued losses compoundmode(i) compoundmode(i) Loansandadvances preparedforaccrued losses Loansandadvances preparedforaccrued losses nswhichshowsignsof (ii)Thetotalamountoftheidentifiedimpairedloansandadvancesincludeloa entfollowingindivid- (i)Thedepreciationreservesfortheloansandadvanceswhichincurnoimpairm OurBank BalanceattheEndofYear Totalamountofloansandadvances Lossprovisionsofloansandadvances Accountvalueofloansandadvances BalanceattheEndofYear Totalamountofloansandadvances Lossprovisionsofloansandadvances Accountvalueofloansandadvances Year-endBalance advances Totalamountofloansand ndadvances Lossprovisionsofloansa dadvances Accountvalueofloansan esoftheseloansshallbeal- impairmentandareidentifiedaswithimpairedlosses.Thedepreciationreserv lowedforinanindividualorcombinedway. ualtestshallbeallowedforintheformofcombinedassessment. NotestotheFinancialStatements
(3)Preparationforlosstotheloansandadvances OurGroup
2011 Singlewayassessment Combinationassessment Total
RMBThousand RMBThousand RMBThousand
Year-beginningbalance 86,664 218,671 305,335 Yearaccrue 37,933 190,341 228,274 Yearchargeoff (5,787) (9,063) (14,850) Yearexportcausedbythediscountriseinvalue (3,828) (576) (4,404) Year-endbalance 114,982 399,373 514,355
2010 Singlewayassessment Combinationassessment Total
RMBThousand RMBThousand RMBThousand
Year-beginningbalance 112 8,657 8,769 Yearaccrue 90,507 210,814 301,321 Yearexportcausedbythediscountriseinvalue (3,955) (800) (4,755) Year-endbalance 86,664 218,671 305,335
OurBank
2011 Singlewayassessment Combinationassessment Total RMBThousand RMBThousand RMBThousand
Year-beginningbalance 86,664 215,636 302,300 Yearaccrue 37,933 187,001 224,934 Yearchargeoff (5,787) (9,063) (14,850) Yearexportcausedbythediscountriseinvalue (3,828) (576) (4,404) Year-endbalance 114,982 392,998 507,980
2010 Singlewayassessment Combinationassessment Total
RMBThousand RMBThousand RMBThousand
Year-beginningbalance 112 8,512 8,624 Yearaccrue 90,507 207,924 298,431 Yearexportcausedbythediscountriseinvalue (3,955) (800) (4,755) Year-endbalance 86,664 215,636 302,300
201 2011 Annual Report - 1,949 19,446 40,900 69,206 202 978,629 550,534 469,266 374,120 914,541 1,154,364 2,702,973 2,743,873 3,518,313 3,518,313 Dec.31,2010 Dec.31,2010 Dec.31,2010 RMBThousand RMBThousand RMBThousand 1,953 40,900 14,401 78,186 885,138 671,349 628,197 275,225 983,561 (23,095) 4,511,313 2,899,525 4,470,413 7,332,032 7,308,937 Dec.31,2011 Dec.31,2011 Dec.31,2011 RMBThousand RMBThousand RMBThousand - 1,949 40,900 19,446 69,206 978,629 550,534 469,266 374,120 914,541 2,743,873 1,154,364 2,702,973 3,518,313 3,518,313 Dec.31,2010 Dec.31,2010 Dec.31,2010 RMBThousand RMBThousand RMBThousand OurGroupOurBank OurBank OurGroup OurGroupOurBank 1,953 40,900 78,186 ts ialStatemen totheFinanc Notes 14,401 628,197 275,225 983,561 885,138 671,349 (23,095) 4,511,313 2,899,525 4,470,413 7,332,032 7,308,937 Dec.31,2011 Dec.31,2011 Dec.31,2011 RMBThousand RMBThousand RMBThousand ) 1 ( Note Note Note uctswithfixedinterests (1)Thefundtrustschemeandfinancialproductsheldbyourgroupareallprod 9.Receivables 8.Theheld-to-maturityinvestment efinancialassets 7.Available-for-sal Capitaltrustplansandfinancialproducts Less:receivablesinvestmentdepreciationreserve Bookvalueofreceivablesinvestment butors Bonds-dividedbydistri Governmentbondsandcentralbanknote Publicentitybonds Financialinstitutionsbonds Legalentitybonds Subtotal Equityinstrument Total Governmentbondsandcentralbanknote Publicentitybonds Financialinstitutionsbonds Legalentitybonds Total et,assetsinvestmentincludes andcannotberedeemedinadvance.Withoutquotationsfromtheactivemark trustloansandinterbankdeposit,etc. NotestotheFinancialStatements
10.Long-termequityinvestment
OurGroupOurBank Dec.31,2011 Dec.31,2010 Dec.31,2011 Dec.31,2010 Note RMBThousand RMBThousand RMBThousand RMBThousand
Calculatedbycostmethod
Subsidiary (1) - - 106,700 86,700
Total - - 106,700 86,700
(1)Subsidiary Dec.31,2011
Accounting Book Shareholding Proportionof Depreciation InvestedUnit Method Balance Ratio(%) Votes (%) Reserve
DongningRunshengRuralBankCo.,Ltd CostMethod 10,200 51.00 51.00 -
DorbetRunshengRuralBankCo.,Ltd CostMethod 25,500 51.00 51.00 -
Yi'anRunshengRuralBankCo,.Ltd CostMethod 25,500 51.00 51.00 -
JixianRunshengRuralBankCo,.Ltd CostMethod 15,300 51.00 51.00 -
KeshanRunshengRuralBankCo,.Ltd CostMethod 10,200 51.00 51.00 -
XiaochangBenfuRuralBankCo,.Ltd CostMethod 20,000 100.00 100.00 -
Total 106,700
Dec.31,2010
Accounting Book Shareholding Proportionof Depreciation InvestedUnit Method Balance Ratio(%) Votes (%) Reserve
DongningRunshengRuralBankCo.,Ltd CostMethod 10,200 51.00 51.00 -
DorbetRunshengRuralBankCo.,Ltd CostMethod 25,500 51.00 51.00 - - Yi'anRunshengRuralBankCo,.Ltd CostMethod 25,500 51.00 51.00 - JixianRunshengRuralBankCo,.Ltd CostMethod 15,300 51.00 51.00 - KeshanRunshengRuralBankCo,.Ltd CostMethod 10,200 51.00 51.00 - Total 86,700 -
Theabilityoftheabovesubsidiariestotransferfundstoourbankisnotlimited.
203 2011 Annual Report - - 4,094 4,291 204 385,200 387,334 (33,750) (59,785) (81,282) (33,947) (60,657) (82,704) (136,973) (139,070) 1,162,978 1,514,428 1,103,193 1,377,455 1,180,593 1,533,980 1,119,936 1,394,910 Total Total RMBThousand RMBThousand ------365,574 236,722 127,798 365,574 127,798 365,574 236,722 127,798 365,574 127,798 (474,498) (474,498) Construction Construction Projectunder Projectunder RMBThousand RMBThousand 78 78 (78) (78) 1,549 1,549 30,322 56,228 88,021 13,980 59,372 30,731 57,819 90,021 14,337 61,093 (16,342) (12,385) (28,649) (16,394) (12,612) (28,928) Other Other Furnitureand Furnitureand RMBThousand RMBThousand - - 163 163 (163) (163) 9,509 7,330 7,807 17,569 26,915 21,680 10,067 17,940 27,844 22,418 (2,179) (3,219) (5,235) (2,260) (3,329) (5,426) ts ialStatemen totheFinanc Notes TrafficTools TrafficTools RMBThousand RMBThousand 1,034 1,400 1,034 1,597 98,718 42,991 81,714 91,351 43,163 84,571 93,812 (3,192) (3,389) 139,551 102,037 142,845 (17,004) (32,596) (48,200) (17,466) (33,164) (49,033) Electronic Electronic Equipments Equipments RMBThousand RMBThousand 2,453 2,453 31,690 31,690 658,855 471,915 634,595 672,184 471,915 647,647 (30,317) (24,260) (33,082) (54,889) (30,317) (24,537) (33,599) (55,683) 1,132,143 1,077,254 1,145,472 1,089,789 Buildings Buildings RMBThousand RMBThousand fthefixedassetswhich BytheendofDecember31,2011,housebuildingswithinthenetvalueo OurBank 11.Fixedassets OurGroup OriginalValue Year-beginningbalance CurrentYearpurchase Yearreceive/(export) CurrentYearDecrease Year-endbalance AccumulatedDepreciation Year-beginningbalance Currentwithdrawal Currentyeardecrease Year-endbalance NetValueofFixedAssets Year-beginningbalance Year-endbalance OriginalValue Year-beginningbalance CurrentYearpurchase Yearreceive/(export) CurrentYearDecrease Year-endbalance AccumulatedDepreciation Year-beginningbalance Currentwithdrawal Currentyeardecrease Year-endbalance NetValueofFixedAssets Year-beginningbalance Year-endbalance ndYuan)havenotobtained amountstoRMB441.209thousand(December31,2010:RMB30.317thousa propertyrightcertificates. NotestotheFinancialStatements
12.IntangibleAssets OurGroup
LandUseRight SoftwareUseRight CoreDeposit Other Total
RMBThousand RMBThousand RMBThousand RMBThousand RMBThousand OriginalValue Year-beginningbalance 542,729 11,188 201,000 - 754,917 Yearaccrual - 25,048 - 16 25,064 Yeardeduction (526,150) - - - (526,150) Year-endbalance 16,579 36,236 201,000 16 253,831 AccumulativeAmortization Year-beginningbalance (11,843) (3,188) (25,125) - (40,156) Yearaccrual (6,101) (7,067) (25,125) (2) (38,295) Yeardeduction 17,229 - - - 17,229 Year-endbalance (715) (10,255) (50,250) (2) (61,222) Netamount Year-beginningbalance 530,886 8,000 175,875 - 714,761 Year-endbalance 15,864 25,981 150,750 14 192,609 Surplusamortizationyears 1-50 1-10 6 1-5
OurBank
LandUseRight SoftwareUseRight CoreDeposit Other Total
RMBThousand RMBThousand RMBThousand RMBThousand RMBThousand OriginalValue Year-beginningbalance 542,729 11,087 201,000 - 754,816 Yearaccrual - 24,560 - 16 24,576 Yeardeduction (526,150) - - - (526,150) Year-endbalance 16,579 35,647 201,000 16 253,242 AccumulativeAmortization Year-beginningbalance (11,843) (3,187) (25,125) - (40,155) Yearaccrual (6,101) (7,032) (25,125) (2) (38,260) Yeardeduction 17,229 - - - 17,229 Year-endbalance (715) (10,219) (50,250) (2) (61,186) Netamount Year-beginningbalance 530,886 7,900 175,875 - 714,661 Year-endbalance 15,864 25,428 150,750 14 192,056 Surplusamortizationyears 1-50 1-10 6 1-5
BytheendofDecember31,2011,housebuildingswithinthenetvalueofthefixedassetswhich amountstoRMB7,687thousand(December31,2010:RMB7,855thousandYuan)havenotobtained propertyrightcertificates.
205 2011 Annual Report - 53 1,663 1,545 68,538 51,993 51,993 51,993 11,203 36,514 206 119,516 (43,969) (23,554) (67,523) Dec.31,2010 RMBThousand taxassets\(debt) Deferredincome RMBThousand - 214 6,178 6,651 44,811 274,150 146,060 478,064 207,973 (94,216) (175,875) (270,091) 106,529 106,529 Dec.31,2011 RMBThousand (PayableTax) RMBThousand TheDeductible\ - TemporaryDifferences - 51,993 51,993 2,456 7,253 8,077 90,881 40,254 (4,704) 148,921 106,529 (37,688) (42,392) Dec.31,2010 RMBThousand ts ialStatemen totheFinanc Notes taxassets\(debt) Deferredincome RMBThousand - - Dec.31,2010 Dec.31,2011 OurGroupOurBank 9,825 106,529 106,529 29,010 32,308 363,521 161,022 595,686 426,118 (18,818) (150,750) (169,568) Dec.31,2011 RMBThousand (PayableTax) RMBThousand TheDeductible\ TemporaryDifferences Aslistedinthebalancesheetasfollows: taxinanaggregatewaywithrelevantdeferredincometaxas- Allsubsidiariesofourbankwillpaythe taxassets 13.Deferredincome beenrecognizedandnotoffset ometaxassetsandliabilitieswhichhave (1)Thedeferredinc rBank OurGroupandOu Thedeferredincometaxassets Thedeferredincometaxliabilities Net Estimatedliabilities Retirementbenefits Payrollpayable Total TheDeferredIncomeTaxLiabilities Coredeposit Other Total Net DeferredIncomeTaxAssets Assetsimpairmentreserves Financialassetsmeasuredattheirfairvalueandofwhichthe alterationschargedtotheprofitsandlossesinthecurrentperiod Changestofairvalueofavailable-for-salefinancialassets idiaryofourbankisseenas setsoffsetagainstdeferredincometaxandpresentedinnetvalue;eachsubs companyoffsetagainstde- independenttaxpayerwiththerelevantdeferredincometaxassetsofthesame ferredincometaxandpresentedinnetvalue. NotestotheFinancialStatements
(2)Changestobalanceofdeferredincometax
OurGroupOurBank Dec.31,2011 Dec.31,2010 Dec.31,2011 Dec.31,2010 RMBThousand RMBThousand RMBThousand RMBThousand
Year-beginningbalance 51,993 (1,239) 51,993 (1,239)
Netchangeofdeferredincometaxrecordedintheincometax 56,414 43,625 56,414 43,625
Netchangeofdeferredincometaxrecordedintheothercomprehensiveincome (1,878) 9,607 (1,878) 9,607
Total 106,529 51,993 106,529 51,993
Accordingtothepredictionoffuturebusiness,ourgroupexpectsthatitislikelytoobtainsufficient taxableincometaxestooffsetthedeductibletemporarydifferencesinthenextperiodsoastorecognizerel- evantdeferredincometaxassets. 14.Otherassets
OurGroupOurBank Dec.31,2011 Dec.31,2010 Dec.31,2011 Dec.31,2010 Note RMBThousand RMBThousand RMBThousand RMBThousand Otherreceivables (1) 231,313 213,455 231,076 213,417 Settlementaccount 83,597 88,013 83,597 88,013 Oweassets (2) 25,127 78,602 25,127 78,602 Long-termdeferredexpenses (3) 122,247 75,493 115,677 68,494 Goodwill (4) 340,000 340,000 340,000 340,000 Other 7,827 55,157 6,924 54,278 Total 810,111 850,720 802,401 842,804
(1)Otherreceivables Listedasfollowsaccordingtoaccountreceivableage:
OurGroup Dec.31,2011 Dec.31,2010 Sum Proportion BadDebtReserves BookValue Sum Proportion BadDebtReserves BookValue RMBThousand (%) RMBThousand RMBThousand RMBThousand (%) RMBThousand RMBThousand Withinayear 182,326 74 - 182,326 12,534 5 - 12,534 1-2years 1,278 - - 1,278 800 - - 800 2-3years 24 - - 24 18 - - 18 Above3years 63,529 26 (15,844) 47,685 234,452 95 (34,349) 200,103 Total 247,157 100 (15,844) 231,313 247,804 100 (34,349) 213,455
207 2011 Annual Report - 18 800 1,565 3,560 2,666 77,037 78,602 78,602 91,617 27,070 86,191 26,820 12,496 208 122,247 115,677 200,103 213,417 BookValue Balance Balance RMBThousand Year-end Year-end Dec.31,2010 - - - RMBThousand RMBThousand RMBThousand - (34,349) (34,349) 971 (921) (921) 25,127 25,127 24,156 (2,731) (2,731) RMBThousand (24,685) (28,337) (23,250) (26,902) BadDebtReserves 5 - - Year Year 95 100 Dec.31,2010 Dec.31,2011 Assumption Assumption RMBThousand (%) RMBThousand RMBThousand Proportion - 18 800 1,565 77,037 78,602 78,602 12,496 234,452 247,766 1,682 1,044 Sum 53,031 20,378 75,091 52,913 20,128 74,085 RMBThousand 24 Dec.31,2010 RMBThousand 1,278 YearIncrease YearIncrease ts ialStatemen totheFinanc Notes OurBank 47,685 RMBThousand RMBThousand 182,089 231,076 - 971 BookValue rBank OurGroupOu RMBThousand 25,127 24,156 25,127 - - - 9,423 2,799 9,423 2,543 63,271 75,493 56,528 68,494 Dec.31,2011 (15,844) (15,844) RMBThousand Balance Balance YearBeginning YearBeginning RMBThousand RMBThousand RMBThousand BadDebtReserves - - Dec.31,2011 74 26 100 (%) Proportion 24 1,278 63,529 246,920 182,089 Sum RMBThousand OurBank (3)Long-termdeferredexpense OurGroup (2)Capitalfordebtpayment Expensefordecorationofleasedhouse Rent Other Total Expensefordecorationofleasedhouse Rent Other Total Buildings Other Originalvalueofdebtasset Less:valuedecreasepreparationofdebtasset Accountvalueofdebtasset Withinayear 1-2years 2-3years Above3years Total NotestotheFinancialStatements
(4)BusinessReputation Ourgroupregardsthemergencecostandthebalanceofthereceivedrecognizednetassetsvaluefrom fourbanksbusinessreputationonDec.22,2009.
OurGroupOurBank Dec.31,2011 Dec.31,2010 Dec.31,2011 Dec.31,2010 RMBThousand RMBThousand RMBThousand RMBThousand
Cost 340,000 340,000 340,000 340,000
Less:ValueDecreasePreparation - - - -
AccountValue 340,000 340,000 340,000 340,000
Ourgroupconcludesthebusinessreputationcontainnovaluedecreasingtrendonthebasisofpredict- edfuturecashflowvalueonDec.31,2010&2011. Theinvolvedassumptionsofthepredictedfuturecashflowvalueare: Thefuturecashflowwillapplythefiveyearsfinancialbudgetapprovedbymanagementlayersand discountrateis14%and16%separatelyuntilDec.31,2011&2010topredict.Theapplyingdiscountrate willreflectthecertainriskoftheinvolvedunitsexportingcash.Thecashflowcouldbeinferredat3%,a steadincreasingrateafterfiveyearsperiod.Thisincreasingrateispredictedonthebasisofinvolveddomes- ticindustryincreasingtrend,andwillnotsurpassthelongtermaverageincreasingrate.
15.AssetsValueDecreasePreparation OurGroup
2011 Year-beginning Currentyear Currentyear Currentyear Recoveryafter Year-end Balance withdrawal/roll-out roll-in/roll-out write-off write-off Balance RMBThousand RMBThousand RMBThousand RMBThousand RMBThousand RMBThousand
Loansandadvanceslossreserves 305,335 228,274 (4,404) (14,850) - 514,355 Baddebtreserves-otherreceivables 34,349 9,385 - (27,890) - 15,844 Valuedecreasepreparationofreceivableinvestment - 23,095 - - - 23,095 Total 339,684 260,754 (4,404) (42,740) - 553,294
209 2011 Annual Report - - 34,349 34,349 15,844 23,095 210 305,335 339,684 302,300 336,649 507,980 546,919 Balance Balance Balance Year-end Year-end Year-end RMBThousand RMBThousand RMBThousand Dec.31,2010 RMBThousand ------write-off write-off write-off Recoveryafter Recoveryafter Recoveryafter RMBThousand RMBThousand RMBThousand ------Dec.31,2011 RMBThousand (14,850) (27,890) (42,740) write-off write-off write-off Currentyear Currentyear Currentyear RMBThousand RMBThousand RMBThousand 50,000 50,000 - - - - 2010 2010 2011 (4,755) (4,755) (4,755) (4,755) (4,404) (4,404) Dec.31,2010 RMBThousand Currentyear Currentyear Currentyear roll-in/roll-out roll-in/roll-out roll-in/roll-out RMBThousand RMBThousand RMBThousand ts ialStatemen totheFinanc Notes OurGroupOurBank 9,385 60,000 60,000 34,349 34,349 23,095 257,414 224,934 298,431 332,780 301,321 335,670 Currentyear Currentyear Currentyear RMBThousand RMBThousand RMBThousand Dec.31,2011 withdrawal/roll-out withdrawal/roll-out withdrawal/roll-out RMBThousand - - - 8,624 8,624 8,769 8,769 34,349 302,300 336,649 Balance Balance Balance Year-beginning Year-beginning Year-beginning RMBThousand RMBThousand RMBThousand 16.BorrowingfromCentralBank OurBank Projectloan Total Valuedecreasepreparationofreceivableinvestment Total Loansandadvanceslossreserves Baddebtreserves-otherreceivables Total eserves Loansandadvanceslossr eceivables Baddebtreserves-otherr Total Loansandadvanceslossreserves Baddebtreserves-otherreceivables NotestotheFinancialStatements
17.Depositswithbanksandotherfinancialinstitutions
OurGroupOurBank Dec.31,2011 Dec.31,2010 Dec.31,2011 Dec.31,2010 RMBThousand RMBThousand RMBThousand RMBThousand
Fundsindomesticbanks 28,338,460 10,455,131 28,510,079 10,743,095
Fundsinotherfinancialinstitution 21,356 530,000 21,356 530,000
Total 28,359,816 10,985,131 28,531,435 11,273,095
18.Financialassetssoldforrepurchase
OurGroupOurBank Dec.31,2011 Dec.31,2010 Dec.31,2011 Dec.31,2010 RMBThousand RMBThousand RMBThousand RMBThousand
Bonds 4,049,400 - 4,049,400 -
Note 18,820,486 - 18,820,486 -
Total 22,869,886 - 22,869,886 -
19.deposittaking
OurGroupOurBank Dec.31,2011 Dec.31,2010 Dec.31,2011 Dec.31,2010 RMBThousand RMBThousand RMBThousand RMBThousand
CurrentDeposit
-CompanyCustomer 56,765,228 37,622,882 56,240,915 37,447,651
-PersonalCustomer 9,150,243 7,299,356 8,992,895 7,179,278
FixedDeposit
-CompanyCustomer 12,343,938 9,892,467 12,318,862 9,862,267
-PersonalCustomer 12,277,753 9,979,722 12,165,214 9,922,250
Margindeposit(1) 2,682,389 1,868,993 2,636,244 1,866,118
OtherDeposit 153,418 12,868 153,418 12,868
Total 93,372,969 66,676,288 92,507,548 66,290,432
211 2011 Annual Report - 534 1,490 3,840 3,050 7,537 84,507 28,530 212 212,567 161,022 202,953 1,565,994 1,866,118 Balance Year-end Dec.31,2010 RMBThousand RMBThousand - (5,665) 31,058 41,336 (76,318) (73,849) (28,163) (12,754) 496,127 (494,324) (691,073) 2,636,244 2,067,723 Dec.31,2011 YearDecrease RMBThousand RMBThousand 3,050 76,318 73,656 29,248 11,997 28,530 20,627 87,382 494,686 735,062 212,567 1,565,994 1,868,993 YearIncrease Dec.31,2010 RMBThousand RMBThousand ts ialStatemen totheFinanc Notes - - 727 405 7,175 4,597 OurBank OurGroup 31,058 87,481 146,060 158,964 496,127 2,067,723 2,682,389 Balance RMBThousand Dec.31,2011 Year-beginning RMBThousand (1) Note 20.Payrollpayable OurGroup itreceivedislistedbyitemsasfollows: (1)Guaranteedepos Salary,Bonus,Allowanceandsubsidiary Employeewelfareexpense SocialInsurance HouseFund Unionfundandworkers'educationfund Annuity Postretirementbenefit Total margin Bankersacceptancedraft ginaldeposit Letterofguarantee&mar Tenderbond Other Total NotestotheFinancialStatements
OurBank
Note Year-beginning YearIncrease YearDecrease Year-end Balance Balance RMBThousand RMBThousand RMBThousand RMBThousand
Salary,Bonus,Allowanceandsubsidiary 6,178 485,587 (484,285) 7,480
Employeewelfareexpense - 75,620 (75,620) -
SocialInsurance 727 72,685 (72,878) 534
HouseFund 405 28,838 (27,753) 1,490
Unionfundandworkers'educationfund 4,596 11,845 (12,616) 3,825
Annuity - 28,530 - 28,530
Postretirementbenefit (1) 146,060 20,627 (5,665) 161,022
Total 157,966 723,732 (678,817) 202,881
Ourbanksetupasave-drawpatternannuityplanforstaffsince2011,whichwillsavesrelevantfund toannuityaccordingtoacertainpercentageofstaff'ssalaryandtherelevantcostwillincludeincurrent profitandloss. (1)RetirementBenefit Changestotherecognizedretirementbenefitareasfollows:
OurGroup OurBank
RMBThousand RMBThousand
Year-beginningbalance 146,060 146,060 Servicecost 5,640 5,640 Interestcost 6,698 6,698 Confirmedactuarialloss 8,289 8,289 PaidBenefit (5,665) (5,665) Year-endBalance 161,022 161,022
213 2011 Annual Report - 1,124 2,100 4.50% 7.00% 3.00% 16,327 21,245 31,393 214 10.00% 340,467 356,794 174,228 118,366 Dec.31,2010 Dec.31,2010 Dec.31,2010 RMBThousand RMBThousand RMBThousand 2,409 3,095 4.25% 7.00% 3.00% 73,925 33,656 43,547 10.00% 440,409 295,530 398,160 156,632 1,134,099 hinaLife MortalityexperiencetableofC Dec.31,2011 Dec.31,2011 Dec.31,2011 RMBThousand RMBThousand RMBThousand InsuranceService-PensionService2000-2003 - 1,139 2,103 4.50% 7.00% 3.00% 17,209 21,296 31,636 10.00% 358,193 340,984 119,499 175,673 Dec.31,2010 Dec.31,2010 Dec.31,2010 RMBThousand RMBThousand RMBThousand ts ialStatemen totheFinanc Notes OurGroupOurBank OurBank OurGroup rBank OurGroupOu 2,425 3,812 4.25% 7.00% 3.00% 78,902 33,764 43,938 10.00% 441,675 295,530 398,160 162,841 1,135,365 hinaLife MortalityexperiencetableofC Dec.31,2011 Dec.31,2011 Dec.31,2011 RMBThousand RMBThousand RMBThousand InsuranceService-PensionService2000-2003 Othertaxpayablesmainlyincludehousingpropertytax,landusetax,etc. 22.Interestpayable ate: sumptionemployedonbalancesheetd Themainactuarialas 21.Taxpayable d.(IndependentExternalActuarialScienceOrganization)ap- TaoruihuiyueConsultant(Shanghai)Lt Dueinterestofacceptmoneydeposits DiscountRate DeathRate Predictedannualgrowthrateofaveragemedicalexpenses tc Predictedannualgrowthrateofsupplementwelfare,heatingfeee Predictedannualgrowthrateofearly-retiredstaffwelfare Dueinterestoffinancialassetssoldforrepurchase Dueinterestoffundsinbanksandotherfinancialinstitutions Total BusinessIncomeTax IndividualIncomeTax Businesstax Citymaintenanceandconstructiontax Other Total alculateourbank'svariousretiredbenefitandcompulsory. pliespredictedbenefitunitmethodtoc NotestotheFinancialStatements
23.Anticipationliabilities OurGroup
Year-beginning YearIncrease YearDecrease Year-end Balance Balance RMBThousand RMBThousand RMBThousand RMBThousand
Presumedlossofpendingaction 6,651 - (6,651) -
OurBank
Year-beginning YearIncrease YearDecrease Year-end Balance Balance RMBThousand RMBThousand RMBThousand RMBThousand
Presumedlossofpendingaction 6,651 - (6,651) -
24.OtherDebt
OurGroupOurBank Item Note Dec.31,2011 Dec.31,2010 Dec.31,2011 Dec.31,2010 RMBThousand RMBThousand RMBThousand RMBThousand
Otherpayables (1) 34,860 69,944 33,096 63,771
SettledAccounts 458,978 521,401 458,978 521,401
Total 493,838 591,345 492,074 585,172
(1)Otherpayables Listbypropertiesasfollows:
OurGroupOurBank Dec.31,2011 Dec.31,2010 Dec.31,2011 Dec.31,2010 RMBThousand RMBThousand RMBThousand RMBThousand
Pendingamountnotwithdrawn 3,335 5,749 3,335 5,734
Qualityguaranteedeposit 21,937 11,871 21,937 11,871
Constructioncostpayable 6,678 39,293 6,678 39,293
Other 2,910 13,031 1,146 6,873
Total 34,860 69,944 33,096 63,771
215 2011 Annual Report 7,253 2,074 (8,299) 216 (27,982) (29,010) 3,720,000 3,080,000 1,080,988 1,053,006 Balance Balance Balance Year-end Year-end Year-end RMBThousand RMBThousand RMBThousand - - - - - 2,072 (6,217) (8,289) (6,217) YearDecrease RMBThousand YearDecrease YearDecrease RMBThousand RMBThousand - - 2011 2011 2010 - 11,851 15,801 (3,950) 492,800 504,651 640,000 YearIncrease RMBThousand YearIncrease YearIncrease 2 RMBThousand RMBThousand (10) ts ialStatemen totheFinanc Notes 11,203 554,572 588,188 (33,616) (44,811) Balance 3,080,000 3,080,000 RMBThousand Year-beginning Balance Balance RMBThousand RMBThousand Year-beginning Year-beginning Actuarialgainsfrompost-retirementwelfare Incometaxrelatedtoactuarialgainsfrompost-retirementwelfare Netchangestofairvalueofavailable-for-salefinancialassets Incometaxrelatedtofairvaluechangesofavailable-for-salefinancialassets : wstockatRMB1.77Yuan,whichparvalueisRMB1.00and OnDec.23,2011,ourbankreleasesne 25.ShareCapital OurBank 26.CapitalReserve OurGroup Item Total Capitalstockpremium Othercomprehensiveincome Where Sharecapital Sharecapital shareholdersvianonpublicway.Theabovestocksituationwas measuredRMB640,000,000.00to17 PublicAccountantsCo.,Ltd.HeilongjiangBranchOfficeand approvedbyBeijingXinhuaCertified nDec.23,2011titled(2011)JinghuixingHeilongjiangFenYanZiDi receivedthecapitalverificationreporto No.10. NotestotheFinancialStatements
2010 Year-beginning YearIncrease YearDecrease Year-end Balance Balance Item RMBThousand RMBThousand RMBThousand RMBThousand
Capitalstockpremium 588,188 - - 588,188
Othercomprehensiveincome (4,794) - (28,822) (33,616)
Where:Netchangestofairvalueofavailable-for-salefinancialassets (6,381) - (38,430) (44,811)
Incometaxrelatedtofairvaluechangesofavailable-for-salefinancialassets 1,595 - 9,608 11,203
Actuarialgainsfrompost-retirementwelfare (11) 1 - (10)
Incometaxrelatedtoactuarialgainsfrompost-retirementwelfare 3 (1) - 2
Total 583,394 - (28,822) 554,572
OurBank
2011 Year-beginning YearIncrease YearDecrease Year-end Balance Balance Item RMBThousand RMBThousand RMBThousand RMBThousand
Capitalstockpremium 588,188 492,800 - 1,080,988
Othercomprehensiveincome (33,616) 11,851 (6,217) (27,982)
Where:Netchangestofairvalueofavailable-for-salefinancialassets (44,811) 15,801 - (29,010)
Incometaxrelatedtofairvaluechangesofavailable-for-salefinancialassets 11,203 (3,950) - 7,253
Actuarialgainsfrompost-retirementwelfare (10) - (8,289) (8,299)
Incometaxrelatedtoactuarialgainsfrompost-retirementwelfare 2 - 2,072 2,074
Total 554,572 504,651 (6,217) 1,053,006
217 2011 Annual Report 2 (10) 11,203 38,607 218 588,188 554,572 148,750 441,437 (33,616) (44,811) Balance Balance Balance Balance Year-end Year-end Year-end Year-end RMBThousand RMBThousand RMBThousand RMBThousand ------9,608 (28,822) (38,430) (28,822) YearDecrease RMBThousand YearDecrease YearDecrease YearDecrease RMBThousand RMBThousand RMBThousand 1 - - - - - (1) 2011 2011 2010 2011 37,537 441,437 110,143 YearIncrease RMBThousand 3 YearIncrease YearIncrease YearIncrease RMBThousand RMBThousand RMBThousand (11) ts ialStatemen totheFinanc Notes 1,595 (4,794) (6,381) 583,394 588,188 - Balance 1,070 38,607 RMBThousand Year-beginning Balance Balance Balance RMBThousand RMBThousand RMBThousand Year-beginning Year-beginning Year-beginning able-for-salefinancialassets Netchangestofairvalueofavail ets Incometaxrelatedtofairvaluechangesofavailable-for-salefinancialass Actuarialgainsfrompost-retirementwelfare Incometaxrelatedtoactuarialgainsfrompost-retirementwelfare : 28.Generalriskpreparation OurGroup 27.SurplusReserves OurGroupandOurBank Item Item Item Item Generalriskpreparation LegalSurplusReserve LegalSurplusReserve Capitalstockpremium me Othercomprehensiveinco Where Total NotestotheFinancialStatements
OurBank
2011 Year-beginning YearIncrease YearDecrease Year-end Balance Balance Item RMBThousand RMBThousand RMBThousand RMBThousand
Generalriskpreparation - 437,000 - 437,000
AccordingtotheAdministrativeMethodforthe (CaiJin[2005]No.49)andtheAccountingRulesforFinancialEnterprise-ImplementationGuideline (CaiJin[2007]No.23)issuedbytheMinistryofFinance,thegeneralriskpreparationmustbewithdrawn fromthenetprofitbymeansofprofitdistributionwiththewithdrawalproportiontobedeterminedbythe bankinviewoftheriskinanall-roundway,butgenerallynolessthan1%oftheclosingbalanceoftherisk assets.Generalriskpreparationformsapartoftheshareholder'sequity,butnotforthepurposeofdistribut- ingdividends.Thisgeneralriskpreparationwillberecordedinthefinancialstatementatageneralmeeting tomakeupforthepotentiallossthathasyetidentified. 29.ProfitDistribution (1)WithdrawalofLegalSurplusReserve Accordingtothearticlesofassociation,ourbankshallwithdrawitslegalsurplusreserveby10%ofthe netprofitofeachyear.OurbankwithdrewRMB37,537thousandYuanandRMB110,143Yuanaslegal surplusin2010and2011respectively.Whentheaccumulatedlegalsurplusreservereaches50%ofthereg- isteredcapitalofourbank,itisunnecessarytocontinuetowithdrawthelegalsurplusreserve. (2)Profitdistributionthathasbeenimplementedthecurrentyear SubjecttotheproposaloftheboardofdirectorsandtheapprovalofthegeneralmeetingonJune28, 2011,ourbankwithdrewRMB437,000ThousandYuanofgeneralriskreservein2011fromthenetprofit of2010. (3)Profitdistributiondeterminedafterthedateofthebalancesheet Accordingtotheresolutionoftheboardofdirectors,ourbankisplanedtowithdrawRMB400,000 ThousandYuanofgeneralriskpreparationin2012;todistributetotalcashdividendofRMB215,000 ThousandYuantotheshareholdersregisteredbyDec.29,2011atarateofRMB0.70(pre-tax)Yuanper 10sharesbasedonthe3,080,000thousandshares(RMB1Yuanpershare)byDec.29,2011;ourbank'splan ofincreasingfundingandexpandingstockshasbeenapprovedbyHeilongjiangIndustrialandCommercial AdministrationwiththerightoftheshareholdersofnewlyincreasedsharesshallbecomevalidasofDec.30, 2011.Inaccordancewith"thenewlyincreasedsharesshallparticipateintheprofitdistributionbythehold- ingduration"asspecifiedinthe ,ourbankis planedtodistributeatotalcashdividendof246thousandtothe640,000thousandshares(RMB1Yuanper
219 2011 Annual Report 8,911 10,536 25,215 24,394 14,007 83,063 220 RMBThousand Year-beginningamount 12,576 26,436 26,903 14,947 10,679 91,541 RMBThousand Year-endamount ts ialStatemen totheFinanc Notes older'sEquity 30.MinorityShareh roupisasfollows: older'sequityofthesubsidiaryofourg Theminorityshareh NameofSubsidiary DongningRunshengRuralBankCo.,Ltd DorbetRunshengRuralBankCo.,Ltd Yi'anRunshengRuralBankCo,.Ltd JixianRunshengRuralBankCo,.Ltd KeshanRunshengRuralBankCo,.Ltd Total proposal uan(pre-tax)per10shares.Theabove edin2011atarateofRMB0.00384Y share)newlyincreas egeneral ountingtreatmenthasbeenmadetoth thegeneralmeetingwherethenoacc istobeapprovedby lisgiven. fitdistributionplanbeforetheapprova mmendedtobewithdrawnandthepro riskpreparationreco NotestotheFinancialStatements
31.NetInterestIncome
OurGroupOurBank 2011 2010 2011 2010 RMBThousand RMBThousand RMBThousand RMBThousand
InterestIncome
LoansandAdvances 2,263,405 1,267,010 2,200,875 1,248,467
Ofwhich:LoansandAdvancesforbusinesses 1,292,532 976,095 1,264,870 975,784
LoansandAdvancesforindividuals 541,943 230,117 513,585 212,320
Notediscounted 428,930 60,798 422,420 60,363
Financialassetsmeasuredattheirfairvalueand
ofwhichthealterationschargedtotheprofits
andlossesinthecurrentperiod 709,346 125,532 709,346 125,532
Available-for-salefinancialAssets 104,374 57,723 104,374 57,723
Held-to-MaturityInvestment 52,362 77,855 52,362 77,855
AccountsReceivableInvestment 235,192 6,811 235,192 6,811
DepositintheCentralBank 276,486 127,037 275,282 126,712
Buyingbackthesaleoffinancialassets 556,786 1,538 556,786 1,538
Interbankdeposit 1,754,947 408,041 1,754,094 403,871
Subtotal 5,952,898 2,071,547 5,888,311 2,048,509
InterestExpenses
Deposittaking (1,260,875) (554,036) (1,255,756) (551,921)
BorrowingfromtheCentralBank (4,173) (212) - -
Financialassetssoldforrepurchase (470,621) (6,580) (470,621) (6,580)
DepositswithBanksandOtherFinancial (1,096,338) (35,830) (1,094,312) (34,404)
Institutions
Subtotal (2,832,007) (596,658) (2,820,689) (592,905)
NetInterestIncome 3,120,891 1,474,889 3,067,622 1,455,604
Ofwhich:InterestIncomeonrecognized 4,404 4,755 4,404 4,755
impairedfinancialassets
221 2011 Annual Report - - 814 3,299 4,788 1,090 6,401 3,897 1,434 1,038 10,465 32,412 18,322 (2,337) (1,523) (9,460) (3,237) (1,393) 222 (14,090) 2010 2010 RMBThousand RMBThousand 510 510 212 524 (198) 6,996 6,323 4,171 32,751 22,600 17,215 14,167 11,248 91,031 (5,606) (1,442) 115,471 (17,392) (24,440) 2011 2011 RMBThousand RMBThousand - - 814 3,299 4,788 1,090 6,401 3,897 1,434 1,038 10,574 32,521 18,412 (2,337) (1,523) (9,460) (3,256) (1,393) (14,109) 2010 2010 RMBThousand RMBThousand ts ialStatemen totheFinanc Notes - - 14 212 OurGroupOurBank OurBank OurGroup (198) 6,996 6,323 4,171 32,751 23,777 17,215 14,167 11,248 92,199 (5,615) (1,442) 116,648 (17,392) (24,449) 2011 2011 RMBThousand RMBThousand 33.IncomeonInvestment/(Loss) HandlingChargesandCommissions 32.NetIncomefrom Long-termEquityInvestmentIncome Ofwhich:dividenddistributedbythe investmentunit Investmentincomefromfinancialassets measuredattheirfairvalueandofwhichthe alterationschargedtotheprofitsandlossesin thecurrentperiod Investmentincomefromavailable-for-sale financialassets Total rgesandcommission Incomefromhandlingcha ffinancialadvisers Handlingchargeincomeo IncomefromSettlementandLiquidationCharges Commissionincomefromcustodyservice Handlingchargeincomefromcreditcommitment IncomefromAnnualFeesandHandlingChargesofBankCard Incomefromhandlingchargesforagentservice ct IncomefromHandlingChargesforFinancialProdu OtherHandlingChargesandCommissions Subtotal Handlingchargesandcommissionexpenses ExpensefromhandlingchargesforBankCard ExpensefromSettlementandAgentService OtherHandlingchargesandCommissionexpenses Subtotal Netincomefromhandlingchargesandcommission NotestotheFinancialStatements
34.LossfromChangesinFairValue
OurGroupOurBank 2011 2010 2011 2010 RMBThousand RMBThousand RMBThousand RMBThousand
Financialassetsmeasuredattheirfairvalue (9,611) (214) (9,611) (214)
andofwhichthealterationschargedtothe
profitsandlossesinthecurrentperiod
Total (9,611) (214) (9,611) (214)
35.NetIncomefromOtherBusinesses
OurGroupOurBank 2011 2010 2011 2010 RMBThousand RMBThousand RMBThousand RMBThousand
RentalIncome 2,255 5,158 2,255 5,158
Other(1) 84,825 185,976 84,580 185,250
Total 87,080 191,134 86,835 190,408
(1)Mainlytheloangrantedbythefourbanksboughtbackbyourbankpriortothereportdatewhere thecapitalobtainedfromtherecoveryofsuchloansisinexcessofthevalueoftheloanrecognizedascalcu- latedintotheaccountontheoriginalacquisitiondatewiththeexcesspartrecordedinthecurrentprofitand loss. 36.BusinessTaxandSurcharges
OurGroupOurBank 2011 2010 2011 2010 RMBThousand RMBThousand RMBThousand RMBThousand
BusinessTax 101,810 66,433 100,792 66,110
CityMaintenanceandConstructionTax 7,769 4,608 7,352 4,495
EducationalSurcharges 3,937 2,105 3,756 1,968
Total 113,516 73,146 111,900 72,573
223 2011 Annual Report - 6,326 27,297 59,303 40,128 12,295 10,571 26,833 34,349 224 401,520 183,958 768,231 298,431 332,780 2010 2010 RMBThousand RMBThousand 9,385 42,647 81,282 38,260 26,902 27,276 13,954 58,359 23,095 715,443 404,146 224,934 257,414 1,408,269 2011 2011 RMBThousand RMBThousand - 6,611 27,827 60,175 40,129 12,460 10,678 33,086 34,349 782,815 335,670 405,389 186,460 301,321 2010 2010 RMBThousand RMBThousand ts ialStatemen totheFinanc Notes rBank OurGroupOu OurBank OurGroup 9,385 23,095 43,976 82,704 38,295 28,337 27,276 14,542 59,117 228,274 260,754 726,773 416,864 1,437,884 2011 2011 RMBThousand RMBThousand 38.Lossfromassetdevaluation nagementExpense 37.BusinessandMa LossfromImpairmentofLoan-GrantedLoans andAdvances Lossfromimpairmentofaccountsreceivable TheLossondaddebts-otherreceivables Total EmployeeCompensation DailyAdministrativeExpenses Operatingleasefee DepreciationofFixedAssets AmortizationofIntangibleAssets AmortizationofLong-termDeferredExpenses AmortizationofLowValueArticles Taxes Other Total NotestotheFinancialStatements
39.Non-businessIncome
OurGroupOurBank 2011 2010 2011 2010 RMBThousand RMBThousand RMBThousand RMBThousand
GainsfromDisposalFixedAssets 13,629 159 13,629 133
GainsfromDisposalofMortgageAssets 1,511 1,581 1,511 1,581
Amountpendingnotwithdraw 1,910 1,418 1,910 1,418
Governmentgrants(1) 7,687 - 3,793 -
Other 4,303 3,122 4,135 1,971
Total 29,040 6,280 24,978 5,103
(1)Governmentgrantsrefertoagriculture-relatedloansgrantedtoourgroupforsupportingagricul- turaldevelopment.InaccordancewiththeNoticeoftheProvincialDepartmentofFinanceonRewardto theIncreaseinagriculture-relatedloansincounty-levelfinancialinstitutionsin2010(HeiCaiJiJinHan [2011]No.7)issuedbyHeilongjiangProvincialDepartmentofFinance,thepartofincreaseinthemean balanceoftheagriculture-relatedloanin2010thatexceeds15%onayear-on-yearbasis,arewardequalto 2%oftheexcesspartwillbeoffered. 40.Non-businessexpenditure
OurGroupOurBank 2011 2010 2011 2010 RMBThousand RMBThousand RMBThousand RMBThousand
LossonDisposalofFixedAssetsandIntangibleAssets 21,410 3,298 21,410 3,298
DonationExpenses 1,605 443 1,600 443
Other 3,128 3,011 3,123 3,006
Total 26,143 6,752 26,133 6,747
225 2011 Annual Report - 191 2010 (9,724) 226 112,414 156,039 112,414 487,787 121,947 (43,625) 376,160 376,160 2010 2010 RMBThousand RMBThousand 3,408 414,709 358,295 364,931 358,295 (56,414) (10,044) 1,459,725 2011 2011 RMBThousand RMBThousand 1,069 (9,724) 491,013 122,753 114,098 157,723 114,098 (43,625) - 2010 2010 RMBThousand RMBThousand ts ialStatemen totheFinanc Notes 1,110,255 1,110,255 2011 OurBank OurGroup rBank OurGroupOu 4,328 370,845 364,155 420,569 364,155 (11,018) (56,414) 1,483,378 2011 2011 RMBThousand RMBThousand Netprofitattributabletodiscontinuingoperation nse 41.Incometaxexpe 42.BasicEarningspershare ocommonshareholders Incalculatingthebasicearningspershare,thecurrentnetprofitattributablet TaxExpenseandAccountingProfitisshownasfollows: ThereconciliationstatementforIncome Pre-taxProfit Incometaxexpensescalculatedby25%ofthe statutorytaxrate ImpactofTaxExemptIncome ImpactofTaxationUnavailablefordeductionof Expenses IncomeTaxExpenses Currentnetprofitattributabletocommonshareholders Ofwhich:Netprofitattributabletogoingconcern nses CurrentIncomeTaxExpe enses DeferredIncomeTaxExp Total is: NotestotheFinancialStatements
Incalculatingthebasicearningspershare,theweightedaverageofoutstandingcommonsharesis:
2011 2010
Quantityofoutstandingcommonsharesatthebeginningoftheyear 3,080,000 3,080,000
Add:Weightingsoftheoutstandingcommonsharesforthisyear 14,027 -
Weightedaverageoftheoutstandingcommonsharesatyearend 3,094,027 3,080,000
BasicEarningspershare: BasicEarningspershareiscalculatedwiththenetprofitacquiredbythecommonshareholderdivided byweightedaverageofcommonsharesoutstandinginthecurrentperiod.
2011 2010
Currentnetprofitattributabletocommonshareholders 1,110,255 376,160
Weightedaverageoftheoutstandingshares(thousandshares) 3,094,027 3,080,000
BasicEarningsPerShare(RMBYuanPerShare) 0.36 0.12
Thereexistsnodilutivepotentialordinaryshareinourbank,sodilutedearningspersharedoesnot existeither. 43.OthercomprehensiveIncome
OurGroupOurBank 2011 2010 2011 2010 RMBThousand RMBThousand RMBThousand RMBThousand
Changestofairvalueoftheavailable-for-sale 15,801 (38,430) 15,801 (38,430) financialassets
Gains/(loss)onchangestofairvalueofthe 16,013 (37,616) 16,013 (37,616) available-for-salefinancialassets Amountofavailable-for-salefinancialassets (212) (814) (212) (814)
transferredtocurrentprofitandlossforreasonsof reclassification
Incometaxinrelationtochangestofairvalueof (3,950) 9,608 (3,950) 9,608
theavailable-for-salefinancialassets Actuarialgains/(loss)onpost-retirementwelfare (8,289) 1 (8,289) 1 Incometaxinrelationtoactuarialgains/(loss)on 2,072 (1) 2,072 (1)
post-retirementwelfare Total 5,634 (28,822) 5,634 (28,822)
227 2011 Annual Report 228 474,058 5,683,656 7,961,846 2,670,000 16,789,560 Dec.31,2010 RMBThousand 765,230 4,290,969 10,654,656 14,945,726 30,656,581 Dec.31,2011 RMBThousand 484,936 5,685,590 7,864,587 2,670,000 16,705,113 Dec.31,2010 RMBThousand ts ialStatemen totheFinanc Notes OurBank OurGroup 785,903 4,290,969 30,866,311 10,768,291 15,021,148 Dec.31,2011 RMBThousand quivalents 44.CashandCashE Cash inCentralBank Excessreservesdeposited Depositinbanksandotherfinancialinstitutions wheretheoriginalmaturitydateiswithinthree months Redemptorymonetarycapitalforsalewherethe originalmaturitydateiswithinthreemonths Total NotestotheFinancialStatements
45.SupplementaryDataofCashFlowStatement
OurGroupOurBank 2011 2010 2011 2010 RMBThousand RMBThousand RMBThousand RMBThousand
1.Cashflowforbusinessactivitiesadjustedfromnetprofit
Netprofit 1,119,223 376,915 1,101,430 375,373
Add:LossfromAssetdevaluation 260,754 335,670 257,414 332,780
DepreciationofFixedAssets 82,704 60,175 81,282 59,303
AmortizationofIntangibleAssets 38,295 40,129 38,260 40,128
Amortizationoflong-termdeferredexpense 28,337 6,611 26,902 6,326
Interestincomefromrecognizedimpairedfinancialassets (4,404) (4,755) (4,404) (4,755)
Loss/(yield)ondisposaloffixedassets,intangibleassets
andotherlong-termassets 6,270 1,558 6,270 1,584
InterestIncomeonBondsInvestment (391,928) (142,389) (391,928) (142,389)
IncomeonInvestment (212) (814) (722) (814)
Profit/lossfromchangesinthefairvalue 9,611 214 9,611 214
ExchangeGainsandLosses 1,932 1,361 1,932 1,361
IncreaseinDeferredIncomeTaxAssets (56,414) (43,625) (56,414) (43,625)
IncreaseinBusinessReceivables (50,478,224) (35,970,708) (50,127,285) (35,749,608)
IncreaseinBusinessPayables 67,679,751 41,307,509 67,074,541 41,311,082
Netamountofcashflowfrombusinessactivities 18,295,695 5,967,851 18,016,889 6,186,960
2.Materialinvestmentandfinancialactivitiesirrelevanttocashreceiptandpayment
Transferofliabilitiestocapital - - - -
Financingfixedassetsunderoperatinglease - - - -
3.Netchangestocashandcashequivalent
Year-endbalanceofcashandcashequivalent 30,866,311 16,705,113 30,656,581 16,789,560
Less:Year-beginningbalanceofcashandcash 16,705,113 13,896,102 16,789,560 13,864,666
equivalent
Netincreaseincashandcashequivalent 14,161,198 2,809,011 13,867,021 2,924,894
229 2011 Annual Report 230 ts ialStatemen totheFinanc Notes OtherServices ensethatcannotbedi- Otherservicesrefertoequityinvestmentandassets,liabilities,incomeandexp CapitalManagementService uy-backdeal,debtin- Capitalmanagementservicedivisionincludescurrencymarkettransactionsorb PersonalBankingService idedtoindividualcus- PersonalBankingServiceDivisionincludesfinancialproductsandservicesprov CorporateBankingService rovidedtoallkindsof Corporatebankingservicedivisioninvolvesfinancialproductsandservicesp ththediversifiedbankingandrelevantfinancialservices,with Ourgroupshallprovidecustomerswi setsandliabilitiesofthedivisionsincludeitemsdirectlyat- Theincome,businessperformance,as idesservicetolocalcustomersinHeilongjiangandveryfew Eachbranchofourgroupmainlyprov lbecarriedoutaccordingtogeneralbusinesstermsandcondi- Thetransactionsbetweendivisionsshal tingstandardandfinancialregulations,theassetsandliabilities Inaccordancewiththeenterpriseaccoun ge- internalorganizationalstructure,mana ivisionisdeterminedaccordingtothe Themanagementd rectlyattributabletoanydivisionorreasonablydistributed. strumentinvestmentservice. ankcardservice,personalfi- tomers.Theseproductsandservicesincludepersonalloan,depositproducts,b nancialserviceandotherpersonalintermediaryservice. ndservicesincludecompany customers,governmentalagenciesandfinancialinstitutions.Theseproductsa ryservices. loans,tradefinance,depositingactivitiesandothervariouscorporateintermedia s: eachservicedivisiondescribedasfollow stributablebasedonreasonablebenchmark. tributabletoanysinglepartandthosedi rgelyrelyingonanysinglemajorexternalcustomer customersfromotherregionswithoutla pricingshallalsobedeterminedbyreferencetomarketinterestsand tions.Theinternalexpenseandtransfer ortofeachdivision.Theinterestincomeandexpenseincurredfrom shallbereflectedintheperformancerep transferpriceisdefinedas"interestincome/expenseamongdivi- theadjustmenttointernalexpenseand acquiredfromathirdpartyshallbedefinedas"externalinterestin- sions".Theinterestincomeandexpense come/expense". ndperformanceofthedivisionsshallbecalculatedbasedontheac- ofthedivisionsaswellastheincomea nobigdifferencebetweentheaccountingpolicyofthedivisionand countingpolicyofourgroup.Thereis linformation. thepolicyforthepreparationoffinancia manage- p.Theboardofdirectorsandrelevant ndinternalreportingsystemofourgrou mentrequirementa ocatere- regularlyreviewthereportssoastoall ainmanagementdecision-makers)will mentcommittee(m rsofour hemainmanagementdecision-make sstheperformanceofeachdivision.T sourcestoandasse sessper- mationsoastoallocateresourcesandas hebusinessandauditthefinancialinfor groupwillmanaget formance. mation X.SegmentInfor NotestotheFinancialStatements
OurGroup
2011
TheCompany PersonalBanking CapitalOperation Other Total BankBusines business Business Businesses
NetInterestIncome 1,762,597 722,759 635,535 - 3,120,891
ExternalInterestIncome 1,721,462 541,943 3,689,493 - 5,952,898
ExternalInterestExpense (918,751) (342,124) (1,571,132) - (2,832,007)
Inter-divisionInterest(Spending)/Income 959,886 522,940 (1,482,826) - -
NetIncomefromhandlingchargesandCommissions 33,937 60,377 (2,115) - 92,199
IncomefromhandlingchargesandCommissions 45,100 62,992 8,556 - 116,648
ExpensefromhandlingchargesandCommissions (11,163) (2,615) (10,671) - (24,449)
IncomeonInvestment - - 14 - 14
ProfitandLossonChangestoFairValue - - (9,611) - (9,611)
ExchangeGainsandLosses - - 2,062 - 2,062
OtherBusinessIncome 56,447 28,050 2,583 - 87,080
BusinessTaxandsurcharges (33,770) (11,705) (68,041) - (113,516)
BusinessandManagementfee (895,150) (495,287) (47,447) - (1,437,884)
LossonAssetsImpairment (157,390) (80,269) (23,095) - (260,754)
OperatingProfit 766,671 223,925 489,885 - 1,480,481
Add:Non-businessIncome 18,567 10,021 452 - 29,040
Less:Non-businessexpense 8,823 8,689 8,631 - 26,143
TotalProfit 776,415 225,257 481,706 - 1,483,378
Less:IncomeTaxExpenses 364,155
NetProfit 1,119,223
DivisionAssets 30,090,530 12,726,740 109,644,772 557,128 153,019,170
DivisionLiabilities (72,449,113) (21,786,952) (52,342,701) (78,902) (146,657,668)
SupplementaryInformation
CreditCommitment 6,756,413 325,094 - - 7,081,507
DepreciationandAmortizationExpenses 95,477 51,536 2,323 - 149,336
CapitalExpenditure 311,674 168,233 7,582 - 487,489
231 2011 Annual Report - 418 (214) Total 6,280 6,752 18,412 32,521 (1,523) 232 191,134 491,485 491,013 114,098 376,915 106,915 553,230 (73,146) (14,109) (596,658) (782,815) (335,670) 1,474,889 2,071,547 3,759,360 83,106,580 (79,002,245) ------432,892 (119,499) Other Businesses - - 118 418 (214) 2,232 2,010 5,032 8,835 10,400 12,030 (6,998) (1,523) 181,647 179,533 210,080 804,537 (26,265) (14,716) (42,622) (551,835) 52,421,256 (11,135,841) Business CapitalOperation - - - 1,027 2,918 2,085 2,247 53,258 87,007 86,845 35,490 (1,891) (8,866) 378,122 221,555 374,665 200,448 183,644 (76,680) ts ialStatemen totheFinanc Notes (218,098) (259,854) 8,794,512 (17,711,788) 2010 business PersonalBanking - - - 4,077 2,273 12,353 17,573 69,415 (5,220) 359,186 886,687 177,170 129,041 222,831 224,635 (38,015) (335,938) (508,245) (258,990) 3,558,912 1,045,455 21,457,920 (50,035,117) TheCompany BankBusines NetInterestIncome ExternalInterestIncome ExternalInterestExpense Inter-divisionInterest(Spending)/Income NetIncomefromhandlingchargesandCommissions IncomefromhandlingchargesandCommissions ExpensefromhandlingchargesandCommissions IncomeonInvestment ProfitandLossonChangestoFairValue ExchangeGainsandLosses OtherBusinessIncome BusinessTaxandsurcharges BusinessandManagementfee LossonAssetsImpairment OperatingProfit Add:Non-businessIncome Less:Non-businessexpense TotalProfit Less:IncomeTaxExpenses NetProfit DivisionAssets DivisionLiabilities SupplementaryInformation CreditCommitment DepreciationandAmortizationExpenses CapitalExpenditure NotestotheFinancialStatements
XI.RelationsandTransactionsbetweenRelatedParties 1.Ownedsubsidiaryofourbank Therelatedpartyundercontrolofourbankistheownedsubsidiaryofourbank(SeeNote8).The transactionsbetweenourbankanditsownedsubsidiarywillbecarriedoutonthebasisofnormalbusiness conditionsandgeneraltransactionpriceandinaccordancewithnormalbusinessprocedures. Allmaterialintercompanybalanceandtransactionsbetweenourbankanditsownedsubsidiaryaree- liminatedinthefinancialstatement. 2.Relatedpartieswithnocontrolrelations (1)Shareholdersholdingnolessthan5%ofthesharesofourbank Namesandshareholdingofshareholdersholdingnolessthan5%ofthesharesofourbankarelistedas follows:
Dec.31,2011Dec.31,2010
Shares ShareholdingPercentage Shares ShareholdingPercentage
ThousandShares % ThousandShares %
HeilongjiangDazhengInvestmentGroupCo.,Ltd. 762,600 20.50% 631,400 20.50%
COFCOLimited 744,000 20.00% 616,000 20.50% HeilongjiangGreatNorthernWildernessLand 162,948 4.38% 162,948 5.29% ReclamationGroupCorporation(Note1) 192,985 5.19% 159,783 5.19% DaqingState-ownedAssetsManagementCo.,Ltd.
ShanghaiSIIC(Group)Co.,Ltd. 186,744 5.02% 154,616 5.02%
Total 2,049,277 55.09% 1,724,747 56.50%
Note1:AfterthecompletionoffundincreasingandshareexpandingbyourbankbyDec.31,2011, theshareholdingratioofHeilongjiangGreatNorthernWildernessLandReclamationGroupCorporation droppedfrom5.29%to4.38%,whichdisqualifiedthecompanyasashareholderholdingnolessthan5%of thesharesofourbank. (2)Otherrelatedparties Otherrelatedpartiesincludekeymanagementpersonnel(director,supervisorandseniormanagement oftheheadoffice)andtheenterprisecontrolledtherebyorjointlywiththeirintimatefamilymembersand theownedsubsidiarywithshareholdersholdingnolessthan5%ofthesharesofourbank. 3.Relatedpartytransaction Theconditionsandpriceforthetransactionsbetweenourbankandrelatedpartyshallbehandledas normalbusinessofourbankandsubmittedtorelevantdecision-makingorganizationforreviewandap- provalintermsofthetypeandcontentoftransaction.
233 2011 Annual Report 1 43 167 211 (964) (146) 1,953 8,228 16,973 2010 2010 10,181 2010 2010 234 16,009 300,780 300,634 RMBThousand RMBThousand RMBThousand RMBThousand 662 1 - 1,319 48,739 16,893 18,212 49,401 (39,854) 1,476 1,477 (50,480) (90,334) 2011 2011 2011 2011 RMBThousand RMBThousand RMBThousand RMBThousand ts ialStatemen totheFinanc Notes (4)Interestexpense ing (3)Netincrease(decrease)indeposittak (2)Interestincome crease)ingrantedloanandadvance (1)Netincrease(de HeilongjiangGreatNorthernWildernessLandReclamationGroupCorporation DaqingCommercialBankCompanyLimited DaqingCommercialBankCompanyLimited DaqingCommercialBankCompanyLimited CompanyLimited DaqingCommercialBank Otherrelatedparty Total Otherrelatedparty Total Otherrelatedparty Total ofourbank Shareholdersholdingnolessthan5%oftheshares Shareholdersholdingnolessthan5%ofthesharesofourbank Otherrelatedparty Total ofourbank Shareholdersholdingnolessthan5%oftheshares essthan5%ofthesharesofourbank Shareholdersholdingnol NotestotheFinancialStatements
(5)Otherbusinessincome
2011 2010 RMBThousand RMBThousand
Shareholdersholdingnolessthan5%ofthesharesofourbank - -
Otherrelatedparty 7 -
Total 7 -
(6)Salaryofkeymanagementpersonnel
2011 2010
RMBThousand RMBThousand
Salaryandappropriatebonus 7,933 7,393
Otherbenefitsandallowances 3,020 1,759
Pensiongrants - -
Emoluments 520 560
Total 11,473 9,712
4.Unsettledamountofrelatedtransaction (1)Grantedloanandadvance
Dec.31,2011 Dec.31,2010 RMBThousand RMBThousand
Shareholdersholdingnolessthan5%ofthesharesofourbank
DaqingCommercialBankCompanyLimited - 39,854
Otherrelatedparty 250,300 300,780
Total 250,300 340,634
(2)Interestreceivable
Dec.31,2011 Dec.31,2010 RMBThousand RMBThousand
Shareholdersholdingnolessthan5%ofthesharesofourbank
DaqingCommercialBankCompanyLimited - 58
Otherrelatedparty 385 470
Total 385 528
235 2011 Annual Report 3 3 - - - 6,651 6,651 86,300 86,300 236 23,173 23,173 Dec.31,2010 Dec.31,2010 Dec.31,2010 Dec.31,2010 RMBThousand RMBThousand RMBThousand RMBThousand - - - 158,013 158,013 Dec.31,2011 Dec.31,2011 RMBThousand RMBThousand - 6,651 6,651 662 - 86,300 86,300 26 26 71,912 72,574 Dec.31,2010 Dec.31,2010 RMBThousand RMBThousand Dec.31,2011 Dec.31,2011 RMBThousand RMBThousand ts ialStatemen totheFinanc Notes - - - rBank OurGroupOu OurGroupOurBank 158,013 158,013 Dec.31,2011 Dec.31,2011 RMBThousand RMBThousand (3)Deposittaking 2.Commitmentoncapitalexpenditure 1.Pendingaction (4)Interestpayable CompanyLimited DaqingCommercialBank Signedbutnotperformedcontract Approvedbutnotsignedcontract Total Otherrelatedparty Total essthan5%ofthesharesofourbank Shareholdersholdingnol Amountofthesubjectofrespondingcase Withdrawnanticipationliabilities ofourbank Shareholdersholdingnolessthan5%oftheshares Otherrelatedparty Total ments XII.Contingenciesandcommit NotestotheFinancialStatements
3.Creditcommitment Thecontractualamountofcreditcommitmentthatourbankandgrouppromisetooffertothecus- tomersislistedasfollows:
OurGroupOurBank Dec.31,2011 Dec.31,2010 Dec.31,2011 Dec.31,2010 RMBThousand RMBThousand RMBThousand RMBThousand
Loancommitment 2,573,692 1,609,337 2,573,692 1,609,337
Ofwhich:within1year 1,411,198 1,239,484 1,411,198 1,239,484
Above1year 1,162,494 369,853 1,162,494 369,853
Letterofguaranteeopened 25,327 3,050 25,327 3,050
Letterofcreditopened 3,085 - 3,085 -
Acceptancebill 4,154,309 1,946,525 4,154,309 1,946,525
Creditcardcommitment 325,094 200,448 325,094 200,448
Total 7,081,507 3,759,360 7,081,507 3,759,360
4.Operatingleasecommitment Withourgroupandbankasthelesseeandinaccordancewiththeirrevocableleasecontract,themini- mumamountofrentthatneedstobepaidisshownasfollows:
OurGroupOurBank Dec.31,2011 Dec.31,2010 Dec.31,2011 Dec.31,2010 RMBThousand RMBThousand RMBThousand RMBThousand
Within1Year 70,737 30,974 69,692 30,174
1-2Year 64,256 28,041 63,281 27,241
2-3years 60,418 26,854 59,738 26,124
Above3years 194,020 90,044 192,590 87,944
Total 389,431 175,913 385,301 171,483
5.Collateral (1)Assetsseenascollateral OurGroupandBank'sassetsbookvalueascollateralandrelevantliabilityislistedasfollowsaccording torepurchaseagreement:
237 2011 Annual Report - - - - 238 RMBThousand RMBThousand RelevantLiability RelevantLiability - - - - Collateral Collateral RMBThousand RMBThousand 4,049,400 4,049,400 4,049,400 4,049,400 RMBThousand RMBThousand RelevantLiability RelevantLiability ts ialStatemen totheFinanc Notes Dec.31,2010 Dec.31,2011 ,2010 Dec.31,2011Dec.31 4,063,333 4,063,333 4,063,333 4,063,333 Collateral Collateral RMBThousand RMBThousand 2.RiskManagementFramework transactioncommittee. Boardofdirectorsofthebankconsistsofriskmanagementandtherelatedparty ebalancebetweenrisks Thegoaloftheriskmanagementthegroupengagesinistoobtainappropriat 1.Overview fvarioustypesofrisks. Thebankandotherfinancialbusinessthegroupengagesinmakeusinfaceo n12monthsaftertheycomeintoeffect. Alloftheagreementswillbecomeduei (2)Receivedcollateral buyingtheresoldbusiness.OnDecember31,2011,theface Thegroupacceptedthecollateralwhen OurBank OurGroup Bonds Total Bonds Total fordrawingupthegroup's Riskmanagementandtherelatedpartytransactioncommitteeisresponsible up'sriskmanagement;regu- overallriskmanagementandinternalcontrollingstrategies;monitoringthegro .Seniormanagementstaffof larlyevaluatingtheoverallrisksituation,risktoleranceandmanagementability skmanagementpolicies,sys- thegroupdrawsupandpromotestheimplementationofthecorrespondingri theboardofdirectors.De- temsandproceduresaccordingtotheriskmanagementstrategiesdevelopedby level. andbenefits,soastoensureasafeandstableoperationunderthereasonablerisk riskmanagementpolicyand Thegroupidentifies,analyzes,monitorsandreportstheriskbydrawingup risks,liquidityrisks,market settingtheriskcontrol.Thebusinessesthegroupoperatesmainlyfacecredit risks(exchangerateandinterestraterisks)andoperationalrisks. eptedis19,494,000,000RMB,inwhichthefaceamountofout- amountofcollateralbillthegroupacc RMB;OnDecember31,2010,thefaceamountofcollateralbillthe wardlymortgagebillis19,325,000,000 allofwhichcannotbesoldormortgagedagain groupacceptedis2,641,000,000RMB, XIII.Financialriskmanagement NotestotheFinancialStatements
partmentofriskmanagementbranch,financialmarketbranchandfinancebranchinthebanktogethermake upthemainfunctionaldepartmentsofthegroup'sriskmanagement,allofwhichspecificallyimplementing everypolicyandregulationofriskmanagementinthegroup.Internalauditdepartmentofthegroupisre- sponsiblefortheindependentreviewofthegroup'sriskmanagementandenvironmentalcontrol 3.Creditrisk 3.1Creditriskmanagement Creditriskreferstothepossibleriskoflossduetothattheclientorcounterpartyfailstoperformits obligation.Themaincreditriskthegroupfacesisoriginatedfromtheloansandadvancesissuedtothe clientsandotherbusinessesthatfaceriskinsideandoutsidethebalancesheet. Thegroupcarriesoutstandardizedcreditmanagementinthewholeprocessofcreditbusinesslinksof creditinvestigationandreporting,linesofcreditreviewforapproval,loanorigination,monitoringafterthe loanisissuedandnon-performingloanmanagement.Accordingtotherequirementsofguidingprinciples forclassificationofloanriskswhichispublishedbyCBRC,thegroupisresponsibleforthemeasurement andmanagementofthequalityofcreditassets. Exceptthatthecreditassetsandthedepositionoffundsofthesameindustriesandotherfinancialinsti- tutionscanbringcreditrisktothegroup,intermsofthefundsbusiness,thegroupcanrefertoavailableex- ternalcreditratinginformationmethodstochoosetheindustrywithacceptablecreditlevelformanagement. Inaddition,thegroupcanprovidefinancialguaranteebusinessforclients,thereisthepossibilitythatthe clientswillviolatethetermsofthecontractandthegroupwillmakethepaymentfortheclients,andbeara similarriskofloansandadvances,sothegrouptakesequalriskmanagementproceduresandpoliciesforthis kindoftransaction. 3.2Impairmentappraisal Majorfactorsofimpairmentappraisal Thegroupdividestheloansintothefollowingfivecategories:normalloan,specificallymentioned loan,substandardloans,doubtfulloansandlossloansandthesubstandardloans,doubtfulloansandlossloans areregardedasthenon-performingloans.Themainconsiderationsontheimpairmentofthecreditsarethe possibilitytorepaytheloanandtheirretrievabilityofprincipalandinterestoftheloanandthemajorfactors ofappraisalinclude:therepaymentabilityoftheborrower,thecreditrecord,therepaymentaspiration,the profitabilityofloanitems,warrantorpledgeandthelegalliabilityofrepayingtheloan.Thegroupmakes useoftheportfolioassessmentortheindividualassessmenttocountanddrawtheimpairmentprovisionof thecredits. Thegroupappraisestheimpairmentofthecreditandadvancesofthecustomerattheendofreport periodaccordingtotheaccountingpolicyrecordedinAnnotationIII.Besides,attheendofreportperiod, thebankanalyzescontractsumofthecreditandadvancedmoneyofthecustomerandhandsittotheman- agementtoassessthefinancialrisks.
239 2011 Annual Report 240 ts ialStatemen totheFinanc Notes heloancannotbetakenbackoronlypreciouslittlecanbe Lossloan:theprincipalandinterestoft epaytheprincipalandinterestoftheloaninfullspecified Doubtfulloan:theborrowercannotr ppearsobviousproblems,andthebor- erepaymentabilityoftheborrowera Substandardloan:th dthereisnoreasonstodoubtthatthe orrowercanfulfillcreditprovisionsan Normalloan:theb re litytorepaytheloanatpresent,therea dloan:thoughtheborrowerhastheabi Specially-mentione ailablepledgeorothermeasuresofcreditenhancement,the Atthetimeofnotconsideringanyav reinformationwithoutconsideringtheheldpledgeorother 3.3Themaximumcreditriskexposu ● assesstheimpairmentlossofthefinancialassetsisrecordedin Theaccountingpolicyofthegroupto ● ● ● s: tsandadvancedmoneyarelistsasfollow efivecategoriesofthecustomer'scredi Thedefinitionsofth ● tionreflectstheworstcaseofthedailycreditriskexposureofthe maximumcreditriskexposureinforma ofthegroupandthebankmainlycomesfromtheloanbusinessand balancesheet.Thecreditriskexposure thefinancialinstrumentsoutsidethebalancesheetalsohavecredit thebond-investmentbusiness.Besides, ancebill,letterofguaranteeandletterofcredit. risks,suchascreditcommitment,accept measuresofcreditenhancement fAnnotationIV. ImpairmentofFinancialAssetsin7(4)o simplemented,therearestillgreatlosses. amount,thoughthewarrantorpledgei resorthewholenecessarylegalproceduresarecarriedout. takenbackevenifallthepossiblemeasu operation byfullydependingonhis/hernormal theprincipalandinterestoftheloan rowercannotrepay pledgeisimplemented,therearestillcertainpossiblelosses. revenue,thatis,thoughthewarrantor nt. ycauseadverseimpactontherepayme somefactorsthatma pecifiedamountontime. tofthecreditcannotberepaidinfulls principalandinteres NotestotheFinancialStatements
Thetablebelowliststheinformationofthemaximumcreditriskexposure:
OurGroupOurBank Dec.31,2011 Dec.31,2010 Dec.31,2011 Dec.31,2010 RMBThousand RMBThousand RMBThousand RMBThousand CashandDepositinCentralBank 27,471,426 15,248,723 27,254,568 15,194,230 DepositinbanksandotherFinancialInstitutions 47,491,071 29,255,587 47,415,649 29,352,846 Financialassetsmeasuredattheirfairvalueandof 16,786,842 5,569,919 16,786,842 5,569,919 whichthealterationschargedtotheprofitsand lossesinthecurrentperiod Redemptorymonetarycapitalforsale 18,966,897 2,670,000 18,966,897 2,670,000 GrantedLoansandAdvances 25,131,807 19,735,158 24,503,271 19,401,762 AvailableforSaleFinancialAsset 4,470,413 2,702,973 4,470,413 2,702,973 HeldtoMaturityFinancialAssets 983,561 914,541 983,561 914,541 AccountReceivableInvestment 7,308,937 3,518,313 7,308,937 3,518,313 OtherFinancialAssets 1,392,164 529,588 1,388,324 527,516 Subtotal 150,003,118 80,144,802 149,078,462 79,852,100 Amountbeyondfinancialstatement Loancommitment 2,573,692 1,609,337 2,573,692 1,609,337 Letterofcreditopened 3,085 - 3,085 - Letterofguaranteeopened 25,327 3,050 25,327 3,050 Bankacceptance 4,154,309 1,946,525 4,154,309 1,946,525 Creditcardcommitment 325,094 200,448 325,094 200,448 Total 157,084,625 83,904,162 156,159,969 83,611,460
Thegrouptakesthespecialpoliciesandthemeasuresofcreditenhancementtotransferthecreditrisks totheacceptablelevel.Thereinto,themostcommonwayincludesrequiringtheborrowertoprovidethe pledgeandwarrant.Theacceptablecollateralamountandtypeofthegroupdependsonthecreditrisksas- sessmentoftheborrower. Collateralsecuritymainlyincludesthefollowingtypes: ●Theindividualhousingmortgageloanusuallyusesthehouseasthepledge; ●Theotherindividualloansandthecompanyloansandadvancedmoneyusuallyusetheland,reales- tateandotherassetsoftheborrowerasthepledge;and ●Thepurchasedandresoldcollateralsecuritymainlyincludesthebondandthebill.
241 2011 Annual Report 3.9 7.7 6.1 4.6 1.3 1.8 8.2 9.4 4.7 3.3 1.9 5.1 100 23.0 52.3 12.2 12.5 28.0 14.0 100.0 242 Percentage 559,922 883,628 668,115 192,383 265,498 683,209 478,843 281,653 737,617 679,557 696,786 1,113,590 4,033,442 2,033,478 1,185,616 1,364,249 1,275,493 2,907,414 5,559,250 14,481,243 20,040,493 Amount 9.8 8.4 5.0 4.4 2.7 2.0 2.1 5.0 4.4 1.9 1.4 3.1 9.9 100 31.2 18.6 19.8 56.2 14.1 100.0 Percentage ts ialStatemen totheFinanc Notes Dec.31,2010 Dec.31,2011 873,966 764,131 462,223 351,435 363,382 862,447 763,594 330,856 251,134 546,621 816,643 1,705,481 1,463,012 5,419,282 3,238,486 1,634,104 4,638,130 1,161,235 8,250,112 17,396,050 25,646,162 Amount dadvances 3.4Grantedloansan tedbelow dadvancesbyindustrydistributionislis (1)Grantedloansan OurGroup ces Companyloansandadvan Agriculture,forestry,animalhusbandryandfishery Miningindustry Manufacturingindustry Productionandsupplyofelectric,fuelgasandwater Constructionindustry Transportation,storageandpostalindustry Wholesaleandretail Accommodationandcateringindustry Financialindustry Realestate Leaseandbusinessserviceindustry ment Waterconservancy,environmentandutilitymanage Residentserviceandotherservice Otherindustries Subtotal Individualloanandadvance Housingmortgage Individualbusiness Loanforfarmers Other Subtotal Amount NotestotheFinancialStatements
OurBank
Dec.31,2011Dec.31,2010
Amount Percentage Amount Percentage Companyloansandadvances Agriculture,forestry,animalhusbandryandfishery 1,603,021 9.4 559,422 3.9 Miningindustry 1,450,012 8.4 1,113,590 7.8 Manufacturingindustry 5,359,511 31.3 4,028,692 28.1 Productionandsupplyofelectric,fuelgasandwater 865,766 5.0 883,128 6.1 Constructionindustry 764,131 4.5 664,115 4.6 Transportation,storageandpostalindustry 462,223 2.7 192,383 1.3 Wholesaleandretail 3,210,646 18.8 2,019,636 14.1 Accommodationandcateringindustry 349,435 2.0 265,498 1.8 Financialindustry 363,382 2.1 1,092,916 7.6 Realestate 862,447 5.0 1,364,249 9.5 Leaseandbusinessserviceindustry 763,594 4.4 683,209 4.8 Waterconservancy,environmentandutilitymanagement 330,856 1.9 478,843 3.3 Residentserviceandotherservice 248,534 1.4 281,653 2.0 Otherindustries 535,084 3.1 737,617 5.1 Subtotal 17,168,642 100 14,364,951 100 Individualloanandadvance Housingmortgage 1,634,104 20.8 1,275,493 23.9 Individualbusiness 4,551,886 58.0 2,859,497 53.6 Loanforfarmers 852,639 10.9 516,426 9.7 Other 803,980 10.3 687,695 12.8 Subtotal 7,842,609 100.0 5,339,111 100.0 Amount 25,011,251 19,704,062
(2)Grantedloansandadvancesbycontractduedateandguaranteetypedistributionislistedbelow OurGroup
2011-12-31 Within1year 1-5years Above5years Total RMBThousand RMBThousand RMBThousand RMBThousand
CreditLoans 126,172 188,455 265,853 580,480
GuaranteedLoans 3,421,294 6,405,225 552,023 10,378,542
MortgageLoans 4,268,394 4,125,707 3,255,798 11,649,899
PledgeLoans 2,496,380 451,402 89,459 3,037,241
Total: 10,312,240 11,170,789 4,163,133 25,646,162
243 2011 Annual Report 244 576,103 831,096 831,096 9,961,253 2,963,034 8,106,671 8,333,870 2,432,425 8,246,863 8,425,017 2,537,517 11,510,861 25,011,251 19,704,062 20,040,493 Total Total Total RMBThousand RMBThousand RMBThousand 89,406 84,822 84,822 261,516 551,123 363,985 217,092 364,053 217,092 4,153,796 3,251,751 1,737,017 2,402,916 1,738,137 2,404,104 Above5years Above5years Above5years RMBThousand RMBThousand RMBThousand 188,415 442,402 309,707 348,265 309,707 348,265 6,145,789 4,036,160 3,883,358 3,035,081 7,576,411 3,984,474 3,045,662 7,688,108 10,812,766 1-5years 1-5years 1-5years RMBThousand RMBThousand RMBThousand ts ialStatemen totheFinanc Notes 2010-12-31 2010-12-31 2011-12-31 436,567 436,567 126,172 3,859,328 3,561,772 1,867,068 9,724,735 3,898,336 3,641,218 1,972,160 9,948,281 3,264,341 4,222,950 2,431,226 10,044,689 Within1year Within1year Within1year RMBThousand RMBThousand RMBThousand OurBank CreditLoans GuaranteedLoans MortgageLoans PledgeLoans Total: CreditLoans GuaranteedLoans MortgageLoans PledgeLoans Total: CreditLoans GuaranteedLoans MortgageLoans PledgeLoans Total: NotestotheFinancialStatements
(3)Pastdueloansbyoverduedays OurGroup
2011-12-31
Overdue1-90days Overdue91-360days Overdue361daysto3years Overduemorethan3years Total RMBThousand RMBThousand RMBThousand RMBThousand RMBThousand
CreditLoans - 3,986 - 1,965 5,951
GuaranteedLoans 64,680 33,757 22,907 226 121,570
MortgageLoans 67,749 29,095 45,607 15,981 158,432
PledgeLoans - 10,000 - - 10,000
Total: 132,429 76,838 68,514 18,172 295,953
2010-12-31
Overdue1-90days Overdue91-360days Overdue361daysto3years Overduemorethan3years Total RMBThousand RMBThousand RMBThousand RMBThousand RMBThousand
CreditLoans 2,988 39,462 2,030 - 44,480
GuaranteedLoans 14,786 22,663 3,072 3,584 44,105
MortgageLoans 6,149 38,473 69,174 29,248 143,044
PledgeLoans 161 - 3,410 - 3,571
Total: 24,084 100,598 77,686 32,832 235,200
OurBank
2011-12-31
Overdue1-90days Overdue91-360days Overdue361daysto3years Overduemorethan3years Total RMBThousand RMBThousand RMBThousand RMBThousand RMBThousand
CreditLoans - 3,986 - 1,965 5,951
GuaranteedLoans 62,828 33,617 22,427 226 119,098
MortgageLoans 67,249 28,756 45,607 15,981 157,593
PledgeLoans - - - - -
Total: 130,077 66,359 68,034 18,172 282,642
245 2011 Annual Report 3,571 44,480 43,518 246 116,640 256,781 135,688 227,257 (302,300) 5,521,964 19,330,641 19,704,062 19,401,762 14,137,165 19,659,129 Total Total Dec.31,2010 RMBThousandYuan RMBThousand RMBThousand - - 3,584 11,858 29,248 32,832 2,596,510 2,584,652 126,206 200,407 (507,980) 25,011,251 24,503,271 24,684,638 Specialattention RMBThousandYuan RMBThousand Overduemorethan3years Dec.31,2011 RMBThousand 2,030 3,072 3,410 69,174 77,686 5,510,106 11,552,513 17,062,619 Normal 124,583 256,781 (305,335) 20,040,493 19,735,158 19,659,129 RMBThousandYuan RMBThousand Dec.31,2010 Overdue361daysto3years RMBThousand - ts ialStatemen totheFinanc Notes 8,194,089 17,112,148 25,306,237 95,469 39,462 22,613 33,394 Total rBank OurGroupOu 2010-12-31 139,189 200,736 RMBThousandYuan (514,355) 25,646,162 25,131,807 25,306,237 129 RMBThousand Overdue91-360days Dec.31,2011 RMBThousand 1,869,795 1,869,924 161 3,872 2,988 21,270 14,249 Specialattention RMBThousandYuan Dec.31,2011Dec.31,2010 Overdue1-90days RMBThousand 8,193,960 23,436,313 15,242,353 Normal RMBThousandYuan (i)Grantedloansandadvancesnotyetoverduenorimpaired OurGroup alitydistribution (4)Grantedloansandadvancescreditqu aspastdueloansiftrancheprincipalorinterestisoverduefor Note:lump-sumloanswillbeclassified Total: Publicloansandadvances Retailloansandadvances Notyetoverduenorimpaired(i) Overduebutnotyetimpaired(ii) Impaired(iii) Subtotal: Less:ImpairmentreservestoLoansoradvances NetamounttoclientsLoansandadvances CreditLoans GuaranteedLoans MortgageLoans PledgeLoans Total: oneday NotestotheFinancialStatements
OurBank
Dec.31,2011Dec.31,2010
Normal Specialattention Total Normal Specialattention Total RMBThousandYuan RMBThousandYuan RMBThousandYuan RMBThousandYuan RMBThousandYuan RMBThousandYuan
Publicloansandadvances 15,024,946 1,869,795 16,894,741 11,436,221 2,584,652 14,020,873
Retailloansandadvances 7,789,852 45 7,789,897 5,297,910 11,858 5,309,768
Total: 22,814,798 1,869,840 24,684,638 16,734,131 2,596,510 19,330,641
(ii)Grantedloansandadvancesoverduebutnotimpaired OurGroup
2011-12-31 Overdue1-30days Overdue31-60days Overdue61-90days Overduemorethan FairValueto Total (includingthe30thday) (includingthe60thday) (includingthe90thday) 91days CollateralGoods
CorporateLoansandAdvances 59,100 - 37,444 10,000 106,544 99,275
PrivateLoansandAdvances 26,119 3,578 2,318 630 32,645 53,973
Total: 85,219 3,578 39,762 10,630 139,189 153,248
2010-12-31
Overdue1-30days Overdue31-60days Overdue61-90days Overduemorethan FairValueto Total (includingthe30thday) (includingthe60thday) (includingthe90thday) 91days CollateralGoods
CorporateLoansandAdvances 9,046 3,197 856 100,412 113,511 180,560
PrivateLoansandAdvances 5,274 202 349 5,247 11,072 16,054
Total: 14,320 3,399 1,205 105,659 124,583 196,614
247 2011 Annual Report 1,194 6,694 89,275 49,288 248 180,560 181,754 143,903 150,597 138,563 BookValue FairValueto FairValueto CollateralGoods CollateralGoods RMBThousandYuan Total Total 3,129 96,544 29,662 126,206 116,640 113,511 (86,664) (19,520) (106,184) Impairment - - - reservestoLoans RMBThousandYuan 119 531 , 100,412 100 91days 91days 26,214 256,781 230,567 Overduemorethan Overduemorethan Advances TotalAmountof 856 101 957 RMBThousandYuan GrantedLoansand 2,298 37,444 39,742 9,848 ts ialStatemen totheFinanc Notes 72,224 62,376 BookValue Overdue61-90days Overdue61-90days (includingthe90thday) (includingthe90thday) - 2011-12-31 2010-12-31 202 RMBThousandYuan 2,818 2,818 3,197 3,399 (13,530) (128,512) (114,982) Overdue31-60days Overdue31-60days (includingthe60thday) (includingthe60thday) Impairment reservestoLoans RMBThousandYuan Dec.31,2010 Dec.31,2011 9,046 2,707 59,100 24,546 83,646 11,753 23,378 200,736 177,358 Overdue1-30days Overdue1-30days (includingthe30thday) (includingthe30thday) Advances TotalAmountof RMBThousandYuan GrantedLoansand (iii)Grantedimpairedloansandadvances OurGroup OurBank CorporateLoansandAdvances PrivateLoansandAdvances Total: Assessmentby individualMode Assessmentby CombinationMode Total: CorporateLoansandAdvances PrivateLoansandAdvances Total: NotestotheFinancialStatements
OurBank
Dec.31,2011Dec.31,2010 TotalAmountof TotalAmountof Impairment Impairment GrantedLoansand BookValue GrantedLoansand BookValue reservestoLoans reservestoLoans Advances Advances RMBThousandYuan RMBThousandYuan RMBThousandYuan RMBThousandYuan RMBThousandYuan RMBThousandYuan
Assessmentby 177,358 (114,982) 62,376 230,567 (86,664) 143,903
individualMode
Assessmentby 23,049 (13,448) 9,601 26,214 (19,520) 6,694
CombinationMode
Total: 200,407 (128,430) 71,977 256,781 (106,184) 150,597
Ofwhich:
OurGroupOurBank Dec.31,2011 Dec.31,2010 Dec.31,2011 Dec.31,2010 RMBThousand RMBThousand RMBThousand RMBThousand
ImpairedLoantoIndividualAssessment 177,358 230,567 177,358 230,567 RatioofImpairedLoantoIndividualAssessment 0.69% 1.15% 0.71% 1.17% FairValueofCollaterals 21,510 56,914 21,510 56,914
(5)Loansandadvancesrestructured Loansandadvancesrestructuredaretheloanswhoserepaymentagreementisdecidedagainandrepay- mentisdelayed,beingmonitoredcontinuously.
OurGroup Dec.31,2011 Dec.31,2010 Totalamountofloansrestructured 39,900 61,600 Ofwhich:Restructuredloanswhichoverduemorethan3months - - Ratioofloansrestructuredoverduemorethan3monthstototalLoans - -
OurBank Dec.31,2011 Dec.31,2010 Totalamountofloansrestructured 39,900 61,600 Ofwhich:Restructuredloanswhichoverduemorethan3months - - Ratioofloansrestructuredoverduemorethan3monthstototalLoans - -
249 2011 Annual Report - 21,395 250 566,167 924,654 Total 1,513,335 1,359,128 6,165,762 Total 1,447,895 1,263,554 9,048,248 12,705,746 12,705,746 12,705,746 19,968,456 29,572,848 12,705,746 RMBThousand RMBThousand Dec.31,2010 RMBThousand ------7,332,032 7,332,032 3,518,313 3,518,313 (23,095) Investment RMBThousand Investment RMBThousand Receivable Receivable 29,572,848 29,572,848 29,549,753 - - Dec.31,2011 RMBThousand 1,953 1,949 78,186 69,206 628,197 275,225 469,266 374,120 983,561 914,541 - Investment Investment RMBThousand RMBThousand Heldtomaturity Heldtomaturity - - 12,705,746 12,705,746 12,705,746 14,401 19,446 Dec.31,2010 RMBThousand 885,138 671,349 978,629 550,534 2,899,525 4,470,413 1,154,364 2,702,973 2010-12-31 ts ialStatemen totheFinanc Notes 2011-12-31 Sellable Sellable RMBThousand RMBThousand financialassets financialassets OurBank OurGroup - - - - (23,095) 29,572,848 29,572,848 29,549,753 39,984 549,813 412,554 5,529,935 5,569,919 3,188,051 12,636,424 16,786,842 Dec.31,2011 RMBThousand RMBThousand RMBThousand tofinancialassetsofcurrentprofitorloss tofinancialassetsofcurrentprofitorloss MeasurementbyFairvalue,itsvariationrecorded MeasurementbyFairvalue,itsvariationrecorded ment 3.5Securitiesinvest securitiesinvestment (1)Creditqualityof (i)Notyetoverduenorimpaired OurGroup Governmentbondsandcentralbanknotes Publicentitybonds Financialinstitutionbonds Legalentitybonds CapitalTrustschemeandfinancialproducts Total: ed(i) Notyetoverduenorimpair Total Less:ImpairmentreservestosecuritiesInvestments NetValuetosecuritiesInvestment Governmentbondsandcentralbanknotes Publicentitybonds Financialinstitutionbonds Legalentitybonds CapitalTrustschemeandfinancialproducts Total: NotestotheFinancialStatements
OurBank
2011-12-31 MeasurementbyFairvalue,itsvariationrecorded Sellable Heldtomaturity Receivable Total tofinancialassetsofcurrentprofitorloss financialassets Investment Investment RMBThousand RMBThousand RMBThousand RMBThousand RMBThousand
Governmentbondsandcentralbanknotes - 885,138 628,197 - 1,513,335
Publicentitybonds 549,813 14,401 1,953 - 566,167
Financialinstitutionbonds 412,554 671,349 275,225 - 1,359,128
Legalentitybonds 3,188,051 2,899,525 78,186 - 6,165,762
CapitalTrustschemeandfinancialproducts 12,636,424 - - 7,332,032 19,968,456
Total: 16,786,842 4,470,413 983,561 7,332,032 29,572,848
2010-12-31 MeasurementbyFairvalue,itsvariationrecorded Sellable Heldtomaturity Receivable Total tofinancialassetsofcurrentprofitorloss financialassets Investment Investment RMBThousand RMBThousand RMBThousand RMBThousand RMBThousand
Governmentbondsandcentralbanknotes - 978,629 469,266 - 1,447,895
Publicentitybonds - 19,446 1,949 - 21,395
Financialinstitutionbonds - 550,534 374,120 - 924,654
Legalentitybonds 39,984 1,154,364 69,206 - 1,263,554
CapitalTrustschemeandfinancialproducts 5,529,935 - - 3,518,313 9,048,248
Total: 5,569,919 2,702,973 914,541 3,518,313 12,705,746
251 2011 Annual Report 252 889,188 581,024 170,916 550,735 Total Total 2,047,390 4,207,907 11,064,618 12,705,746 22,743,721 29,549,753 RMBThousand RMBThousand ------3,518,313 3,518,313 7,308,937 7,308,937 Investment RMBThousand Investment RMBThousand Receivable Receivable - - 20,112 27,085 325,674 228,156 568,755 914,541 728,320 983,561 Investment Investment RMBThousand RMBThousand Heldtomaturity Heldtomaturity 563,514 560,912 130,932 603,595 141,617 1,447,615 2,702,973 2,249,633 1,475,568 4,470,413 ts ialStatemen totheFinanc Notes 2011-12-31 2010-12-31 Sellable Sellable RMBThousand RMBThousand financialassets financialassets - - 39,984 409,118 5,529,935 5,569,919 1,215,639 1,931,189 13,230,896 16,786,842 RMBThousand RMBThousand tofinancialassetsofcurrentprofitorloss tofinancialassetsofcurrentprofitorloss MeasurementbyFairvalue,itsvariationrecorded MeasurementbyFairvalue,itsvariationrecorded OurGroup 3.6Bondsandbills tingandcreditrisks bleislistedaccordingtobondscreditra (1)Thefollowingta heet reditbyratingagencyinthebalances urGroupandOurBankisratedinc SecuritiesheldbyO AAA AA-toAA+ A-toA+ Notrated Total: AAA AA-toAA+ A-toA+ Notrated Total: datelistedasfollows: NotestotheFinancialStatements
OurBank
2011-12-31 MeasurementbyFairvalue,itsvariationrecorded Sellable Heldtomaturity Receivable Total tofinancialassetsofcurrentprofitorloss financialassets Investment Investment RMBThousand RMBThousand RMBThousand RMBThousand RMBThousand
AAA 1,215,639 603,595 228,156 - 2,047,390
AA-toAA+ 1,931,189 2,249,633 27,085 - 4,207,907
A-toA+ 409,118 141,617 - - 550,735
Notrated 13,230,896 1,475,568 728,320 7,308,937 22,743,721
Total: 16,786,842 4,470,413 983,561 7,308,937 29,549,753
2010-12-31 MeasurementbyFairvalue,itsvariationrecorded Sellable Heldtomaturity Receivable Total tofinancialassetsofcurrentprofitorloss financialassets Investment Investment RMBThousand RMBThousand RMBThousand RMBThousand RMBThousand
AAA - 563,514 325,674 - 889,188
AA-toAA+ - 560,912 20,112 - 581,024
A-toA+ 39,984 130,932 - - 170,916
Notrated 5,529,935 1,447,615 568,755 3,518,313 11,064,618
Total: 5,569,919 2,702,973 914,541 3,518,313 12,705,746
Unratedsecuritiesmainlyconsistofgovernmentbonds,centralnotes,publicentitybondsandfinancial trustschemeandfinancialproducts. 4.Liquidityrisk Liquidityriskistheriskofcapitallackwhendebtisdue.Mismatchingofcashflowordeadlineofassets andliabilitiesmayengendersuchrisk.OurGroup'sgoaltoliquiditymanagementistograspmorenewin- vestmentopportunitieswhileguaranteeabundantcapitaltomeetfulfillcommitmentofdrawings,matured debtrepaymentandloanorigination. RiskManagementDepartmentofourGroupmanagesliquidityriskbytakingthefollowingmeans: ● Realizedailyfundsmanagementthroughsupervisingfuturecashflow; ● Maintainhighmarketabilityofassetportfoliosoastoselloffrapidlywhenunexpectedcashflow impacthappens; ● Superviseassetliquidityratiosoastomeetinternalandsupervisionrequirements; ● Maintainstabledepositbase;and ● Formulatetargetratioofrelevantassetsandliabilitiesaccordingtosupervisionprovisionandbusi- nessplan.
253 2011 Annual Report Total 254 330,754 (61,187) (493,838) 6,494,935 1,365,415 7,499,142 28,267,598 50,096,443 18,773,433 19,494,392 28,274,741 12,521,122 160,596,853 (29,435,512) (23,381,628) (94,703,566) (148,075,731) ------345,721 16,506,463 16,506,463 16,160,742 unlimited Overdue/ ------(8,353) (8,353) 587,580 2,168,971 3,026,677 3,705,204 9,488,432 9,480,079 5yearsup - - - - - 70,150 1-5 (3,021) years 440,003 3,116,403 5,451,666 2,364,511 18,549,928 12,861,237 24,303,970 (3,438,870) (5,754,042) (2,312,151) - - (6,068) 360,572 333,972 (30,724) 3-12 6,958,510 4,670,904 3,584,453 months 16,978,636 14,337,603 47,224,650 15,844,269 (9,723,602) (4,670,904) ts ialStatemen totheFinanc Notes (16,949,083) (31,380,381) 2011-12-31 - 3,860 10,269 63,970 (2,751) (30,463) 1-3 3,827,226 5,304,467 4,106,986 4,601,240 3,599,140 3,043,183 months 21,517,158 (9,313,484) (4,601,240) (4,526,037) (18,473,975) - - - 678 17,313 83,597 Within (469,075) 1month 3,962,821 1,513,934 2,422,563 28,493,332 10,222,248 14,232,999 (8,048,318) (1,903,634) (14,109,484) (24,530,511) ------247,157 719,104 (37,957) (12,923) 13,062,848 12,096,587 (67,877,589) (67,928,469) (54,865,621) Repayable onDemand OurGroup entsanalyzingliquidity 4.1Financialinstrum duedate contractcashflowdividedbycontract (1)Non-discounted idual ncialassetsandfinancialliabilitiesinres ntractcashflowofnon-derivativefina Non-discountedco NetPosition OtherFinancialAssets TotalFinancialAssets Borrowingfromcentralbank Depositinbanksandotherfinancialinstitutions Financialassetssoldforrepurchase CustomerDeposit OtherFinancialLiabilities TotalFinancialLiabilities Financialassetsmeasuredattheirfairvalueandof whichthealterationschargedtotheprofitsand lossesinthecurrentperiod Redemptorymonetarycapitalforsale CustomerLoansandAdvances AvailableforSaleFinancialAsset HeldtoMaturityFinancialAssets AccountReceivableinvestment CashandDepositinCentralBank DepositinbanksandotherFinancialInstitutions isshownasfollows. ractduedateintheendofreportperiod maturityofthecont NotestotheFinancialStatements
2010-12-31
Repayable Within 1-3 3-12 1-5 Overdue/ 5yearsup Total onDemand 1month months months years unlimited
CashandDepositinCentralBank 6,490,657 - 5,826 - - - 9,243,002 15,739,485
DepositinbanksandotherFinancialInstitutions 681,622 9,124,805 2,813,762 16,598,395 398,005 - - 29,616,589
Financialassetsmeasuredattheirfairvalueandof - 4,277,840 967,600 518,500 - - - 5,763,940
whichthealterationschargedtotheprofitsand
lossesinthecurrentperiod
Redemptorymonetarycapitalforsale - 2,681,257 - - - - - 2,681,257
CustomerLoansandAdvances - 344,553 2,962,212 12,267,476 4,540,030 1,318,496 236,042 21,668,809
AvailableforSaleFinancialAsset - 1,461 13,978 450,337 1,310,845 1,986,555 - 3,763,176
HeldtoMaturityFinancialAssets - - 3,860 177,152 726,573 173,342 - 1,080,927
AccountReceivableinvestment - 1,552,500 216,727 721,000 1,155,497 - - 3,645,724
OtherFinancialAssets 247,804 88,013 - - - - - 335,817
TotalFinancialAssets 7,420,083 18,070,429 6,983,965 30,732,860 8,130,950 3,478,393 9,479,044 84,295,724
Borrowingfromcentralbank - - (360) (51,017) - - - (51,377)
Depositinbanksandotherfinancialinstitutions (2,156,293) (2,549,510) (2,324,114) (4,061,139) - - - (11,091,056)
CustomerDeposit (45,959,351) (1,006,956) (3,923,351) (14,651,530) (1,876,109) (1,570) - (67,418,867)
OtherFinancialLiabilities (58,073) (522,408) (7,789) (779) (2,296) - - (591,345)
TotalFinancialLiabilities (48,173,717) (4,078,874) (6,255,614) (18,764,465) (1,878,405) (1,570) - (79,152,645)
NetPosition (40,753,634) 13,991,555 728,351 11,968,395 6,252,545 3,476,823 9,479,044 5,143,079
255 2011 Annual Report Total 256 330,517 (492,074) 6,494,935 1,365,415 7,499,142 28,029,970 50,023,254 18,773,433 19,494,392 27,564,740 12,260,670 159,575,798 (29,607,214) (23,381,628) (93,834,212) (147,315,128) ------332,405 16,112,679 16,445,084 16,445,084 unlimited Overdue/ ------(8,352) (8,352) 587,580 2,168,971 3,023,376 3,705,204 9,485,131 9,476,779 5yearsup - - - - 70,150 (3,021) 1-5 years 440,003 3,116,403 5,321,578 2,364,511 24,173,882 18,429,031 12,861,237 (2,312,151) (3,429,679) (5,744,851) - - (6,068) 360,572 333,972 3-12 3,584,453 6,958,510 4,670,904 months 46,876,858 (9,723,602) (4,670,904) 15,573,844 17,033,614 13,934,833 ts ialStatemen totheFinanc Notes (16,902,440) (31,303,014) 2011-12-31 - 3,860 10,172 63,970 (2,751) 1-3 3,025,545 3,827,226 5,326,437 4,106,986 4,601,240 3,462,132 months 21,402,023 (9,313,484) (4,601,240) (4,459,003) (18,376,478) - - 678 17,313 83,597 Within (469,075) 1month 1,490,416 4,027,428 2,422,563 28,550,074 10,222,248 14,313,259 (8,048,318) (1,895,769) (14,109,484) (24,522,646) ------246,920 488,707 (11,159) (209,659) 12,642,746 11,907,119 (67,138,969) (67,359,787) (54,717,041) Repayable onDemand OurBank CustomerDeposit OtherFinancialLiabilities TotalFinancialLiabilities NetPosition CustomerLoansandAdvances AvailableforSaleFinancialAsset HeldtoMaturityFinancialAssets AccountReceivableinvestment OtherFinancialAssets TotalFinancialAssets Depositinbanksandotherfinancialinstitutions Financialassetssoldforrepurchase CashandDepositinCentralBank DepositinbanksandotherFinancialInstitutions Financialassetsmeasuredattheirfairvalueandof whichthealterationschargedtotheprofitsand lossesinthecurrentperiod Redemptorymonetarycapitalforsale NotestotheFinancialStatements
2010-12-31
Repayable Within 1-3 3-12 1-5 Overdue/ 5yearsup Total onDemand 1month months months years unlimited
CashandDepositinCentralBank 6,477,845 - 5,800 - - - 9,190,443 15,674,088
DepositinbanksandotherFinancialInstitutions 778,881 9,124,805 2,813,762 16,598,395 398,005 - - 29,713,848
Financialassetsmeasuredattheirfairvalueandof - 4,277,840 967,600 518,500 - - - 5,763,940
whichthealterationschargedtotheprofitsand
lossesinthecurrentperiod
Redemptorymonetarycapitalforsale - 2,681,257 - - - - - 2,681,257
CustomerLoansandAdvances - 339,951 2,855,601 12,118,240 4,452,375 1,317,033 228,025 21,311,225
AvailableforSaleFinancialAsset - 1,461 13,978 450,337 1,310,845 1,986,555 - 3,763,176
HeldtoMaturityFinancialAssets - - 3,860 177,152 726,573 173,342 - 1,080,927
AccountReceivableinvestment - 1,552,500 216,727 721,000 1,155,497 - - 3,645,724
OtherFinancialAssets 247,766 88,013 - - - - - 335,779
TotalFinancialAssets 7,504,492 18,065,827 6,877,328 30,583,624 8,043,295 3,476,930 9,418,468 83,969,964
Depositinbanksandotherfinancialinstitutions (2,439,257) (2,549,510) (2,329,114) (4,061,139) - - - (11,379,020)
CustomerDeposit (45,641,566) (1,006,956) (3,922,969) (14,584,324) (1,873,715) (1,570) - (67,031,100)
OtherFinancialLiabilities (51,900) (522,408) (7,789) (779) (2,296) - - (585,172)
TotalFinancialLiabilities (48,132,723) (4,078,874) (6,259,872) (18,646,242) (1,876,011) (1,570) - (78,995,292)
NetPosition (40,628,231) 13,986,953 617,456 11,937,382 6,167,284 3,475,360 9,418,468 4,974,672
Assetswhichisavailableforrepayingallliabilitiesandcreditcommitmentaswellaspayingoutstanding loancommitmentincludecash,duefromCentralBank,duefrombanksandotherfinancialinstitution funds,financialassetsmeasuredbyfairvalueandwhosevariationisnumberedincurrentprofitsandlosses, redemptorymonetarycapitalforsale,etc.Duringtheregularoperation,mostdueamountdepositedisnot drawnimmediatelyintheduedatebutcontinuestobekeptinourGroup.Besides,available-for-salefi- nancialassetsmayalsohandlethecapitalforrepayingmatureddebtswhenneeded. 4.2Off-balancesheetitem OurGroup'soff-balancesheetitemsofassetsliabilitiesincludeloancommitment,lettersofcredit opened,letterofguaranteeopened,banker'sacceptance,etc.Off-balancesheetitemamountdividedby residualmaturityisshownasfollows.
257 2011 Annual Report - - Total Total 3,050 3,050 258 200,448 200,448 1,946,525 3,759,360 1,946,525 3,759,360 1,609,337 1,609,337 ------77,060 77,060 77,060 77,060 5YearsAbove 5YearsAbove ------118,243 118,243 118,243 118,243 1to5Years 1to5Years - - 3,050 3,050 200,448 200,448 1,414,034 1,946,525 3,564,057 1,414,034 1,946,525 3,564,057 WithinaYear WithinaYear Total Total 3,085 3,085 25,327 25,327 ts ialStatemen totheFinanc Notes 325,094 325,094 4,154,309 7,081,507 4,154,309 7,081,507 2,573,692 2,573,692 ------281,747 281,747 281,747 281,747 5YearsAbove 5YearsAbove ------010 Dec.31,2 Dec.31,2011 Dec.31,2010 Dec.31,2011 6,345 6,345 410,033 416,378 410,033 416,378 1to5Years 1to5Years 3,085 3,085 18,982 18,982 325,094 325,094 4,154,309 6,383,382 4,154,309 6,383,382 1,881,912 1,881,912 WithinaYear WithinaYear OurBank OurGroup (2)Interestraterisk isless,andforeignex- OurGroupmainlyhandlesRMBtransactions,foreigncurrencytransaction (1)Exchangeraterisk ilitiesvaluedbyforeign Foreignexchangerateriskreferstotheriskthattransactionbyassetsandliab edbyriskmanagement OurGroup'soverallmarketriskresponsepoliciesandmeasuresshallbeapprov 5.Marketrisk eetbusinessduetodis- MarketriskreferstotheriskoflossesinourGroup'sbalanceandoff-balancesh Loancommitment Letterofcreditopened Issuedletterofguarantee Bankacceptance Creditcardcommitment Total Loancommitment Letterofcreditopened Issuedletterofguarantee Bankacceptance Creditcardcommitment Total rious. changeexposureisless,therefore,wethinkthatourexchangerateriskisnotse ingfromlossesduetoforeign exchangecausedbyforeignexchangeratefluctuationmakesourGroup'ssuffer exchangeexposure .Financialmarketlineisre- andrelatedtransactioncontrolcommitteeunderourbank'sboardofdirectors ementatregularintervals. sponsibleformonitoringourGroup'smarketriskandreportingtoseniormanag advantageouschangeofmarketrateandexchangerateprice. NotestotheFinancialStatements
OurGroup'sinterestrateriskrootsmismatchingofcontractduedateandre-pricingdatebetweenin- terest-bearingassetsandinterest-paidliabilities.OurGroupmonitorsregularlyre-pricingdeadlinegapof ratesensitiveassetsandliabilitiesbymakinguseofgapanalysissystemsoastoinitiativelyadjustproportion ofinterestrateandfixedrateassets,andtocontrolinterestraterisk. OurGroup'sinterest-bearingassetsandinterest-paidliabilitiesaremainlyvaluedbyRMB.RMB benchmarkinterestratepublishedbyPeople'sBankofChinahasspecifiedlowerlimitofRMBloaninterest rateandupperlimitofRMBdepositrate. OurGroup'scontractre-pricingdateorduedate(subjecttotheearlierone)offinancialassetsandfi- nancialliabilitiesisshownasfollows: OurGroup
Dec.31,2011
Within 1-3 3-12 1-5 5yearsup Non-interest Total 1month months months years
CashandDepositinCentralBank 26,918,495 - - - - 1,338,834 28,257,329 Depositinbanksandother 14,902,219 4,761,556 15,623,489 12,203,807 - - 47,491,071 FinancialInstitutions Financialassetsmeasuredattheir 2,377,281 3,917,243 6,499,975 2,178,679 1,813,664 - 16,786,842 fairvalueandofwhichthe alterationschargedtotheprofits andlossesinthecurrentperiod Redemptorymonetarycapitalfor 9,995,206 4,461,453 4,510,238 - - - 18,966,897 sale CustomerLoansandAdvances 6,201,653 2,839,158 15,936,772 100,166 54,058 - 25,131,807 AvailableforSaleFinancialAsset - 200,928 160,692 1,386,556 2,722,237 - 4,470,413 HeldtoMaturityFinancialAssets - - 302,604 355,938 325,019 - 983,561 AccountReceivableInvestment - 3,752,518 3,491,947 64,472 - - 7,308,937 OtherFinancialAssets - - - - - 1,392,164 1,392,164 TotalFinancialAssets 60,394,854 19,932,856 46,525,717 16,289,618 4,914,978 2,730,998 150,789,021 Borrowingfromcentralbank - (30,000) (30,000) - - - (60,000) Depositinbanksandother (8,045,426) (9,008,000) (9,296,390) (2,010,000) - - (28,359,816) financialinstitutions Financialassetssoldfor (13,888,849) (4,464,289) (4,516,748) - - - (22,869,886) repurchase CustomerDeposit (69,153,388) (4,427,769) (16,243,941) (2,982,339) (6,530) (559,002) (93,372,969) OtherFinancialLiabilities - - - - - (1,629,203) (1,629,203) TotalFinancialLiabilities (91,087,663) (17,930,058) (30,087,079) (4,992,339) (6,530) (2,188,205) (146,291,874) NetPosition (30,692,809) 2,002,798 16,438,638 11,297,279 4,908,448 542,793 4,497,147
259 2011 Annual Report Total 260 914,541 529,588 (50,000) (949,538) 5,569,919 2,670,000 2,702,973 3,518,313 1,968,781 15,733,659 29,255,587 19,735,158 80,629,738 (10,985,131) (66,676,288) (78,660,957) ------805,309 529,588 (85,538) (470,897) (949,538) 1,334,897 (1,420,435) Non-interest ------(1,256) (1,256) 105,242 1,347,283 1,452,525 1,451,269 5yearsup ------32,046 398,000 902,135 659,157 1-5 years 1,412,816 1,108,897 3,100,235 (1,687,419) (1,687,419) - - - - 202,573 150,142 707,204 499,974 (50,000) ts ialStatemen totheFinanc Notes 3-12 Dec.31,2010 months 32,262,722 (4,000,000) 13,977,230 14,364,529 16,338,300 (14,235,492) (18,285,492) ------464,900 939,963 150,768 200,057 2,784,700 2,513,726 6,589,214 1-3 (2,295,000) (3,829,314) (6,124,314) months - - - - 100,214 Within 9,734,587 4,129,982 2,670,000 2,824,857 1,502,155 1month (4,690,131) 14,928,350 35,890,145 (46,451,910) (51,142,041) (15,251,896) alBank CashandDepositinCentr Depositinbanksandother FinancialInstitutions Financialassetsmeasuredattheir fairvalueandofwhichthe alterationschargedtotheprofits andlossesinthecurrentperiod Redemptorymonetarycapitalfor sale CustomerLoansandAdvances AvailableforSaleFinancialAsset HeldtoMaturityFinancialAssets AccountReceivableInvestment OtherFinancialAssets TotalFinancialAssets Borrowingfromcentralbank Depositinbanksandother financialinstitutions CustomerDeposit OtherFinancialLiabilities TotalFinancialLiabilities NetPosition NotestotheFinancialStatements
OurBank
Dec.31,2011
Within 1-3 3-12 1-5 5yearsup Non-interest Total 1month months months years
CashandDepositinCentralBank 26,756,797 - - - - 1,263,001 28,019,798 Depositinbanksandother 14,751,797 4,782,556 15,677,489 12,203,807 - - 47,415,649 FinancialInstitutions Financialassetsmeasuredattheir 2,377,281 3,917,243 6,499,975 2,178,679 1,813,664 - 16,786,842 fairvalueandofwhichthe alterationschargedtotheprofits andlossesinthecurrentperiod Redemptorymonetarycapitalfor 9,995,206 4,461,453 4,510,238 - - - 18,966,897 sale CustomerLoansandAdvances 6,167,078 2,713,302 15,468,667 100,166 54,058 - 24,503,271 AvailableforSaleFinancialAsset - 200,928 160,692 1,386,556 2,722,237 - 4,470,413 HeldtoMaturityFinancialAssets - - 302,604 355,938 325,019 - 983,561 AccountReceivableInvestment - 3,752,518 3,491,947 64,472 - - 7,308,937 OtherFinancialAssets - - - - - 1,388,324 1,388,324 TotalFinancialAssets 60,048,159 19,828,000 46,111,612 16,289,618 4,914,978 2,651,325 149,843,692 Depositinbanksandother (8,217,045) (9,008,000) (9,296,390) (2,010,000) - - (28,531,435) financialinstitutions Financialassetssoldfor (13,888,849) (4,464,289) (4,516,748) - - - (22,869,886) repurchase CustomerDeposit (68,407,264) (4,361,581) (16,198,863) (2,974,309) (6,529) (559,002) (92,507,548) OtherFinancialLiabilities - - - - - (1,626,173) (1,626,173) TotalFinancialLiabilities (90,513,158) (17,833,870) (30,012,001) (4,984,309) (6,529) (2,185,175) (145,535,042) NetPosition (30,464,999) 1,994,130 16,099,611 11,305,309 4,908,449 466,150 4,308,650
261 2011 Annual Report Total 262 914,541 527,516 145,137 (941,966) 5,569,919 2,670,000 2,702,973 3,518,313 1,820,665 (130,192) 15,668,288 29,352,846 19,401,762 80,326,158 (11,273,095) (66,290,432) (78,505,493) ------RMBThousand OtherComprehensiveIncomes 794,431 527,516 (90,916) (470,897) (941,966) 1,321,947 (1,412,863) Non-interest ------350,415 (350,415) (1,256) (1,256) 105,242 1,347,283 1,452,525 1,451,269 RMBThousand NetInterestIncomes 5yearsup ------32,046 398,000 902,135 659,157 1-5 years 1,414,941 1,108,897 3,100,235 258,943 (1,685,294) (1,685,294) (237,567) - - - - RMBThousand 202,573 150,142 707,204 499,974 OtherComprehensiveIncomes ts ialStatemen totheFinanc Notes 3-12 Dec.31,2010 months 32,047,140 (4,000,000) 13,877,215 14,148,947 16,338,300 (14,169,925) (18,169,925) Dec.31,2011Dec.31,2010 - - - - - 434,484 (434,484) 354,939 939,963 150,768 200,057 2,784,700 2,408,386 6,483,874 1-3 (2,300,000) (3,828,935) (6,128,935) months RMBThousand NetInterestIncomes - - - 100,214 Within 9,831,846 4,129,982 2,670,000 2,812,383 1,502,155 1month 14,873,857 35,920,437 (4,973,095) (46,134,125) (51,107,220) (15,186,783) OurGroup earingassetsandinter- Thefollowingtableshowsthatbalancesheetdate-basedstructureofinterest-b alBank CashandDepositinCentr Depositinbanksandother FinancialInstitutions Financialassetsmeasuredattheir fairvalueandofwhichthe alterationschargedtotheprofits andlossesinthecurrentperiod Redemptorymonetarycapitalfor sale CustomerLoansandAdvances AvailableforSaleFinancialAsset HeldtoMaturityFinancialAssets AccountReceivableInvestment OtherFinancialAssets TotalFinancialAssets Depositinbanksandother financialinstitutions CustomerDeposit OtherFinancialLiabilities TotalFinancialLiabilities NetPosition Increaseof100basepoints Dropof100basepoints underthecircumstancethat est-paidliabilitiesinfluencesinterestnetincomeandotherconsolidatedincome yieldofallcurrencyrisesordropsby100basepointssimultaneously. NotestotheFinancialStatements
OurBank
Dec.31,2011Dec.31,2010 NetInterestIncomes OtherComprehensiveIncomes NetInterestIncomes OtherComprehensiveIncomes RMBThousand RMBThousand RMBThousand RMBThousand
Increaseof100basepoints 428,248 (237,567) 346,702 (130,192) Dropof100basepoints (428,248) 258,943 (346,702) 145,137
Sensitivityanalysisonnetinterestincomebasesonone-yearinfluenceundertheassumptionthat structureoffinancialassetsandfinancialliabilitiesheldbyeachendofreportperiodremainunchanged. Influenceonotherconsolidatedincomereferstotheinfluenceoffairvaluechangeafterrevaluating fixedrateavailable-for-salefinancialassetsheldbytheendofreportperiodbasedonsomeinterestrate change. Theforecastabovesupposesthatinterestrateofassetsandliabilities(exceptdemanddeposit)invarious periodsbemovedupordownsimultaneously,therefore,itdoesn'treflecttheinfluencesthatmaybe broughtbecausesomeinterestratesarechangedbuttherestinterestratesareunchanged.Thisforecastis basedonothersimplifiedassumptionsaswell,includingthatallthepositionswillbeheld-to-maturity.Our Groupexpectsthatsensitivityanalysiswillnotchangegreatlyinamountunderthecircumstancethatthe positionisnotheldtomaturity. OurGroupthinksthattheassumptiondoesn'tstandforourpoliciesinfundsemploymentandinterest rateriskmanagement;therefore,above-mentionedinfluencesmayhavedifferencefromthephysicaltruth. Inaddition,above-mentionedinterestratechangeinfluenceanalysis,ascasesinpointonly,showsthe estimatedchangeofinterestnetincomeandotherconsolidatedincomeundersituationofvariouspredicted incomeandourcurrentinterestraterisk.However,thisinfluencehasn'tconsideredtheriskmanagement activitiesthatmanagementlayermayadoptforreducinginterestraterisk. 6.Capitalmanagement Thegoalsofcapitalmanagementofourenterpriseareasfollows: ●Toconformtotherequirementsputforwardbybankmarketcapitalregulationwhereourenterprise isin; ●Toensuretheabilityofcontinuousoperationofourenterprisetomaintaincontinuousreturnto shareholdersandotherpartiesinterested. ●Tomaintainsufficientcapitalsupportwhichoperationanddevelopmentneeds. CBRCasksthatcapitaladequacyratioofcommercialbankcanneverbelessthan8%,andcorecapital adequacyratiocanneverbelessthan4%,andsubsidiarycapitalofcommercialbankcanneverexceed100% ofcorecapital.Currently,ourenterprisecanfullymeeteachstatutoryrequirement. Differentriskratedratioisadoptedtocalculaterisk-weightedassetsinthetable.Riskratedratioisde-
263 2011 Annual Report 264 928,930 66,671,098 FairValue FairValue 914,541 66,676,288 BookValue BookValue 998,032 ts ialStatemen totheFinanc Notes 93,401,415 FairValue FairValue Dec.31,2011Dec.31,2010 Dec.31,2011Dec.31,2010 983,561 93,372,969 BookValue BookValue andfinancialliabilitiesaredeterminedinaccordancewith Thefairvaluesofotherfinancialassets umentsissuedbyfinancialinstitutionsarecalculatedusingnet Thefairvaluesofnon-listedbondinstr ancialliabilitieswithstandardtermsandconditionsandtrad- Thefairvaluesoffinancialassetsandfin OurGroup alueandfairvalueoffinancialassetsandfinancialliabilitiesthat Thefollowingtablepresentsthebookv ● ● Determinationoffairvalue: ● tof ionsmadebyCBRC,themanagemen idanceofBaslecommitteeandregulat Basedonrelatedgu Deposittaking Held-to-maturityInvestment tdate.Financialassetsandfinancialliabilitiesinwhichbookvalueis failtoreportatfairvalueonbalanceshee ,forinstance:duefromthecentralbank,duefrominnerbankand similartothefairvaluearenotincluded monetarycapitalforsale,loansandadvancestocustomers,receivable otherfinancialinstitutions,redemptory lbank,depositsfrominnerbankandotherfinancialinstitutions,fi- investments,borrowingfromthecentra nancialassetssoldforrepurchase. assetvaluereportedbytheissuer. ondiscountedcashflowanalysisusingpricesfromobservablecur- generallyacceptedpricingmodelsbased tesforsimilarinstruments.Wheresuchpricesarenotavailable,the rentmarkettransactionsanddealerquo discountedcashflowanalysisusingtheapplicableyieldcurve. fairvaluesarecalculatedbasedonfuture threferencetoquotedmarketprices. edonactivemarketsaredeterminedwi ime.Our licationofregulationcapitalinrealt torstheadequacyofcapitalandtheapp ourenterprisemoni nceaquarter. dinformationaboutcapitaltoCBRCo bankreportsrequire uments XIV.Fairvalueoffinancialinstr security. erparty,andguarantyofpledgeand ideringcapital,creditstatusofcount terminedaftercons esofpo- lateandadjustadequatelyagainstfeatur urealsoadoptssimilarmethodtocalcu Off-tableriskexpos tentialloss. NotestotheFinancialStatements
OurBank
Dec.31,2011Dec.31,2010
BookValue FairValue BookValue FairValue
Held-to-maturityInvestment 983,561 998,032 914,541 928,930
Dec.31,2011Dec.31,2010
BookValue FairValue BookValue FairValue
Deposittaking 92,507,548 92,535,994 66,290,432 66,285,242
Thefinancialinstrumentsthataremeasuredsubsequenttoinitialrecognitionatfairvaluearegrouped intolevel1to3basedonthedegreetowhichthefairvalueisobservable: ●Level1Fairvaluemeasurementsarethosederivedfromquotedprices(unadjusted)inactivemarkets foridenticalassetsorliabilities. ●Level2Fairvaluemeasurementsarethosederivedfrominputsotherthanquotedpricesincluded withinlevel1thatareobservablefortheassetorliability,eitherdirectly(i.e.asprices)orindirectly(i.e.de- rivedfromprices). ●Level3Fairvaluemeasurementsarethosederivedfromvaluationtechniquesthatincludeinputsfor theassetorliabilitythatarenotbasedonobservablemarketdata(unobservableinputs). OurGroupandOurBank
Dec.31,2011
TheFirstLevel TheSecondLevel TheThirdLevel Total RMBThousand RMBThousand RMBThousand RMBThousand
Financialassetsmeasuredattheirfairvalueandofwhichthe - 16,786,842 - 16,786,842 alterationschargedtotheprofitsandlossesinthecurrent period - Available-for-salefinancialassets 4,470,413 40,900 4,511,313 Total - 21,257,255 40,900 21,298,155
Dec.31,2010
TheFirstLevel TheSecondLevel TheThirdLevel Total RMBThousand RMBThousand RMBThousand RMBThousand
Financialassetsmeasuredattheirfairvalueandofwhichthe - 5,569,919 - 5,569,919 alterationschargedtotheprofitsandlossesinthecurrent period - Available-for-salefinancialassets 2,702,973 40,900 2,743,873 Total - 8,272,892 40,900 8,313,792
265 2011 Annual Report 266 ts ialStatemen totheFinanc Notes ytheboardofdirectorsofthebankonApril18th,2012. Thefinancialstatementwasapprovedb isfinancialstatementhasbeenrestatedinaccordancewiththe Thecomparativedataoflastyearinth sting uptoApril18th,2012,nonon-adju itdistributionplansinNote9and29, Exceptfortheprof 31st, eenJanuary1st,2010andDecember ngesinfinancialassetsofLevel3betw Therewerenocha De- evel2betweenJanuary1st,2010and ificanttransfersbetweenLevel1andL Therewerenosign presentationmodeofthisyear. statement XVII.Theapprovaloffinancial eedtobedisclosedhaveoccurredinourbankandourgroup. eventsafterthebalancesheetdatethatn XVI.Comparativedata 11. anuary1st,2011andDecember31st,20 2010andbetweenJ etdate ingeventsafterthebalanceshe XV.Non-adjust mber31st,2011. ndbetweenJanuary1st,2011andDece cember31st,2010a MemorabiliaofLongjiangBankin2011
MemorabiliaofLongjiangBankin2011
◎InJanuary,LongjiangBank,the"Longyidai"seriesofproductswonthe"2010ChineseMi- crofinanceInstitutionsBestInnovationContributionAward"jointlygrantedbytheChineseMicrofi- nanceInstitutionsJointCommitteeandtheGraduateSchoolofthePeople'sBankofChina. ◎InFebruary,theBank'scorporatecultureconstructionprojectwasofficiallylaunched,and launchedtheLongjiangBankCorporateCultureHandbookafteracomprehensiveandsystematicre- search,diagnosis,andanalysis,havinginitiallybuiltacorporateculturesystemwiththeLongjiangBank characteristics. ◎InFebruary,comradeDuJiahao,amemberoftheStandingCommitteeofCPCHeilongjiang ProvincialCommitteeandExecutiveViceGovernor,andcomradeXiaJie,DeputyMinisterofOrga- nizationDepartmentoftheProvincialPartyCommittee,wenttoLongjiangBank,announcedthe nominationofcomradeGuanXihuatobethepresidentcandidateoftheLongjiangBankCo.,Ltd.; inMarch,inThe9thmeetingofthefirstsessionofBoardofDirectors,theProposalonPlanningto AppointGuanXihuaaspresidentoftheLongjiangBankwasconsideredandadopted;inJune,Hei- longjiangSupervisionBureauoftheChinaBankingRegulatoryCommissionformallyapprovedthe qualificationsoftheofcomradeGuanXihua. ◎InApril,theBank'smanagementsystemobtainedtheISO9001:2008qualitymanagementsys- temcertifications. ◎InApril,theBanklaunchedthe"LongeNetwork"onlinebankingbrand,withe-channel constructionmakingabreakthrough,achievingatransactionvolumeof13billionyuanin2011. ◎InMay,LongjiangBankwasawarded2010UnionpayStandardCreditCardGrowthAward issuedbytheChinaUnionPay. ◎InMay,theAuditDepartmentofLongjiangBankwasplacedunderthedirectleadershipofthe AuditCommitteeoftheBoardofDirectors;inNovember,theAuditDivisionwasestablishedin Daqing,Qiqihar,Jiamusi,andMudanjiang,withtheinitialestablishmentofthevertical,independent internalauditmanagementsystem;andtheindependenceandauthorityoftheauditdepartmentgot furtherenhanced. ◎InJune,theBank'stotalassetsanddepositbalancebothachievedmorethanonehundredbil- lionyuan,thetotalassetsreached112.4billionyuan,thebalanceofdepositsreached103.7billion yuan,andthebankcompletedathree-yearbusinessdevelopmentgoalwithinayearandanhalf. ◎InJuly,thenewsiteoftheofficebuildingoftheLongjiangBankheadofficewascompleted
267 2011 Annual Report 268 in2011 jiangBank abiliaofLong Memor ialFinancialWorkConferencewassuccessfullyheldin InNovember,HeilongjiangProvinc inthe2ndanniversaryofthebrandpromotionandthe InDecember,LongjiangBankheld ryCommissionapprovedtheLongjiangBank'sbuilding InOctober,ChinaBankingRegulato retaryofthePartyCommitteeofHeilongjiangProvince, InNovember,DuJiahao,deputysec adjustedtoincrease InDecember,theBankcompletedacapitalincreaseandshareexpansion, ChinaBankingRegulatoryCommis- gjiangBankwasformallynotifiedby InSeptember,Lon reditSystemsPhaseIIProjecthasbeenformallyputinto InNovember,theLongjiangBankC oject,theoveralldatacentermigration unchedadatacenterconstructionpr InJuly,theBankla ◎ ◎ ◎ ◎ ◎ ◎ ◎ ◎ touse. andformallyputin rmationsystemssecurityandstability. ovember,furtherenhancingourinfo wascompletedinN ingdong ownsinthesixplacessuchasinN vedthebanksinvillagesandsmallt sion,whichappro County, ganCity,HubeiProvince,Xingshan y,Ningxia,XiaochangCounty,Xiao Town,LingwuCit iyuanCounty,BengbuCity,AnhuiProvince,LingbiCounty, YichangCity,HubeiProvince,Hua uyishanCity,FujianProvince,theBankhasinitiatedtheestab- SuzhouCity,AnhuiProvince,andW lishmentofatotalof11villagebanks. enteristhefirstsmallbusinessescreditfranchiseeinHeilongjiang ofasmallbusinesscreditcenter;thec province. Bankheadofficetoinspectandguidethework. wenttothenewsiteoftheLongjiang nkui,andvicegovernorLiuGuozhong,spokeatthemeeting, LongjiangBank,governorWangXia ourbank. andinspectedandguidedtheworkof production. editcenter,DuJiahao,deputysecretaryoftheProvincialParty listingceremonyofsmallbusinesscr rovincialPartyCommittee Committee,andLiuGuozhong,memberofStandingCommitteeoftheP ateinthemeeting. andexecutivevicegovernorandothercomradeswenttothesitetoparticip talof1.133billionyuan;a theregisteredcapital,andincreased640millionnewshares,raisedacapi forbusinessdevelopment. registeredcapitalreached3.72billionyuan,andprovidedcapitalprotection ListofLongjiangBankInstitutions
SNNameAddressPostcode BusinessAcceptanceTel.
1 GeneralBankingDepartment No.436,YouyiRoad,DaoliDistrict 150018 0451-87117888
2 HarbinGuogeliBranch No.281,GogolStreet,NangangDistrict 150000 0451-87117870
3 HarbinLongfuBranch No.171,HepingRoad,XiangfangDistrict 150040 0451-87117872
4 HarbinXiangjiangBranch No.116,ZhongshanRoad,XiangfangDistrict 150030 0451-87970716
5 HarbinLongyuanBranch No.301,HuayuanStreet,NangangDistrict 150001 0451-87580326
6 HarbinLongxinBranch No.378,ZhengyiRoad,NangangDistrict 150086 0451-87508515
7 HarbinZhongyangStreetBranch No.16,HongxiaStreet,DaoliDistrict 150010 0451-87655310
8 HarbinDayueBranch No.200,HuayuanStreet,NangangDistrict 150001 0451-87529509
9 HarbinDaoliBranch No.198,ShangzhiStreet,DaoliDistrict 150010 0451-87655116
10 HarbinTongdaBranch No.403,TongdaStreet,DaoliDistrict 150076 0451-87393008
11 HarbinWuchangBranch No.215,KaifaStreet,WuchangTown,WuchangCity 150200 0451-56666070
12 HarbinXianfengBranch No.111,XianfengRoad,DaoliDistrict 150056 0451-51959906
13 HarbinNanyangBranch No.84andNo.88,NanjiIRoad,DaoliDistrict 150020 0451-51959899
14 HarbinLujiaBranch No.92,LujiaStreet,NangangDistrict 150009 0451-51959801
15 HarbinKaifaquBranch No.389,HanshuiRoad,NangangDistrict 150009 0451-87117826
16 HarbinLongtengBranch No.118,DongdazhiStreet,NangangDistrict 150001 0451-51983055
17 HarbinEdmontonBranch No.59,EdmontonRoad,DaoliDistrict 150070 0451-83075959
18 HarbinBinjiangBranch No.84-7,No.84-8andNo.84-9,ShimaoRoad,SongbeiDistrict 150028 0451-51983019
19 HarbinAchengBranch No. 23BuildingofGaomingCommunity,PailuStreet,AchengDistrict 150300 0451-51725009
20 HarbinShuangchengBranch No.4Building,XianggeGardenCommunity,DongzhiRoad,ShuangchengCity 150100 0451-87655136
21 HarbinHuashuBranch No.3Building,HuashuCommunity,DaowaiDistrict,HarbinCity 150056 0451-87655123
22 HarbinPingfangBranch FuNo.147,XinjiangStreet,PingfangDistrict,HarbinCity 150060 0451-51787808
23 HarbinShangzhiBranch No.1BuildingofShibofudi,HongxingCommunity,ShangzhiCity 150600 0451-53492111
Floor1,ComprehensiveBuilding,AnyangKangfuCenter, 24 HarbinFangzhengBranch FangzhengXieheHospital,ChengbeiXinqu,Fangzheng 150800 0451-57160098 Town,FangzhengCoupnty
25 QiqiharBranchBankingDepartment No.350,ZhonghuaRoad,JianhuaDistrict,Qiqihar 161006 0452-2581176
26 QiqiharTiexiBranch No.193,HepingStreet,FularjiDistrict,Qiqihar 161041 0452-6710677
27 QiqiharJianhuaBranch No.203,BukuiStreet,JianhuaDistrict,Qiqihar 161006 0452-2557794
28 QiqiharJinyuanBranch No.74,QingyunStreet,LongshaDistrict,Qiqihar 161005 0452-2400355
29 QiqiharLongshaBranch No.142,BukuiSouthStreet,LongshaDistrict,Qiqihar 161005 0452-2216581
30 QiqiharGuangxinBranch No.86,HuaxiRoad,JianhuaDistrict,Qiqihar 161006 0452-2716144
269 2011 Annual Report 270 0452-2400339 0452-2539918 0452-2183566 0452-2735488 0452-2400375 0452-2180233 0452-2739311 0452-3122959 0452-2148675 0452-2212223 0452-2400393 0452-2400500 0452-5831083 0452-2321961 0452-2400348 0452-2793301 0452-2180579 0452-2400386 0452-6881684 0452-3376005 0452-4281789 0452-7339091 0452-8760001 0452-5753006 0459-6362059 0459-6562279 0459-4681053 0459-6500807 0459-6655917 0459-8101986 BusinessAcceptanceTel. 161300 164800 164700 162400 162100 163311 163714 163311 163318 163001 163316 161005 161000 161006 161005 161006 161000 161006 161200 161000 161000 161005 161005 161100 161005 161005 161006 161006 161000 161041 kInstitutions LongjiangBan Listof MinzhengBuilding,Bao'anStreet,KedongTown,KedongCounty XianzhiRoad,ChaoyangStreet,BaiquanCounty No.102,BayiRoad,TailaiCounty DongfanghongStreet,GannanCounty No.26,WestShangmaoStreet,High-techZone,Daqing No.109,110,BuildingB,YixiGoldenCenturyCommercialPlaza,Daqing No.35,JiansheRoad,SartuDistrict,Daqing No.79,BusinessService,XueyuanCommunity,PetroleumInstitute,DongfengNewVillage,Daqing No.18,HuizhanStreet,SartuDistrict,Daqing No.13,XinghuaStreet,HighandNewTechIndustrialDevelopmentZone,Daqing treet,JianhuaDistrict,Qiqihar No.97,MiddleSection,BukuiS No.226,LonghuaRoad,TiefengDistrict,Qiqihar No.25-15,XinmingStreet,JianhuaDistrict,Qiqihar No.229,ZhongxinStreet,FuyuCounty,Qiqihar No.158-2,LonghuaRoad,TiefengDistrict,Qiqihar No.50,Nanmalu,TiefengDistrict,Qiqihar No.47,BukuiStreet,LongshaDistrict,Qiqihar No.39,CentralPlaza,LongshaDistrict,Qiqihar 7thStreet,ErmaRoad,LongjiangCounty,Qiqihar No.98,BukuiSouthStreet,LongshaDistrict,Qiqihar No.37,FenghengRoad,LongshaDistrict,Qiqihar XinmingStreet,JianhuaDistrict,Qiqihar No.216,JiansheStreet,JianhuaDistrict,Qiqihar No.438,LonghuaRoad,LonghuaDistrict,Qiqihar No.154,HepingRoad,FularjiDistrict,Qiqihar District,Qiqihar No.21,MinyiRoad,Longsha d,TiefengDistrict,Qiqihar No.336,EastZhonghuaRoa uaDistrict,Qiqihar No.548,JiansheStreet,Jianh shaDistrict,Qiqihar No.69,WenhuaStreet,Long ComprehensiveBuilding,ShengshiNewCity Community,NorthwestStreet,NeheCity QiqiharLaodongBranch QiqiharTiedongBranch QiqiharYong'anBranch QiqiharWenhuaBranch QiqiharBukuiBranch QiqiharTiefengBranch QiqiharXinghaiBranch QiqiharFuyuBranch QiqiharJianxingBranch QiqiharNanmaluBranch QiqiharAnxinBranch QiqiharZhonghuanBranch QiqiharLongjiangBranch QiqiharGuomaoBranch QiqiharCaixinBranch QiqiharChengxinBranch QiqiharHuaqiaoBranch QiqiharLonghuaBranch QiqiharFularjiBranch QiqiharKedongBranch QiqiharBaiquanBranch QiqiharTailaiBranch QiqiharGannanBranch DaqingBranchBankingDepartment DaqingQinghuaBranch DaqingLaodongBranch DaqingXuefuBranch DaqingXingshengBranch DaqingDevelopmentZoneBranch QiqiharNeheBranch 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 51 52 53 54 55 56 57 58 59 60 50 Postcode e Address SNNam ListofLongjiangBankInstitutions
SNNameAddressPostcode BusinessAcceptanceTel.
Door6-7,BuildingE,DaqingSportsMarketingCenter, 61 DaqingHuaqiaoBranch 163311 0459-4608126 JingsanStreet,DongfengNewVillage,Daqing
62 DaqingYinheBranch No.3-40,WeiqiRoad,SartuDistrict,Daqing 163311 0459-6366960
63 DaqingLongnanBranch No.454,XibinRoad,RanghuluDistrict,Daqing 163453 0459-5109101
64 DaqingRanghuluBranch No.12,XijingRoad,RanghuluDistrict,Daqing 163712 0459-5599654
65 DaqingChengfengBranch No.77,ChengfengStreet,RanghuluDistrict,Daqing 163411 0459-5796477
Buliding9,WestNanMeiGarden,Nancelong6thRoad, 66 DaqingLongfengBranch 163711 0459-6249134 LongfengStreet,LongfengDistrict,Daqing
67 DaqingDonghuBranch No.67,Donghu3rdStreet,RanghuluDistrict,Daqing 163416 0459-5767798
68 DaqingWanbaoBranch No.90,WanxingRoad,WanbaoCommunity,SartuDistrict,Daqing 163311 0459-4624197
69 DaqingXinchaoBranch No.58,AiguoRoad,RanghuluDistrict,Daqing 163453 0459-5169727
70 DaqingDatongBranch No.58,TongyangRoad,DatongDistrict,Daqing 163515 0459-6171010
71 DaqingHonggangBranch No.28,SouthtoSadaRoad,HonggangDistrict,Daqing 163511 0459-4193256
72 DaqingZhenxingBranch E41-1andE41-2,HubinTeachers'Garden,DevelopmentZone 163300 0459-4322110
73 DaqingZhaozhouBranch CenterStreet,ZhaozhouTown,Daqing 166400 0459-8523042
74 DaqingLindianBranch ZhenxiErdaoStreet,LindianCounty,Daqing 166300 0459-3311614
75 DaqingZhaoyuanBranch CenterStreet,ZhaoyuanCounty,Daqing 166500 0459-8227502
No.S-3-8,LishuiMoerStreet,LishuiHuacheng 76 DaqingLishuiBranch 163453 0459-5912075 Community,RanghuluDistrict,Daqing
77 DaqingHongyuanBranch BusinessService,No.57,YinyiSunnyCityB,RanghuluDistrict,Daqing 163453 0459-5921772
78 DaqingHongtuBranch IntheMunicipalGovernmentBuilding,DongfengNewVillage,Daqing 163311 0459-6181291
79 DaqingYoushuiBranch F06-1,GreenHometown,DongfengNewVillage,SartuDistrict,Daqing 163311 0459-2678761
80 DaqingXingzhanBranch 6wei,XinzhaoStreet,XinzhanTown,ZhaoyuanCountry 166516 0459-8413118
81 DaqingDumengBranch NorthofTianhuHotel,DumengCounty 166200 0459-3428837
82 DaqingXianggeBranch BusinessService,C2-7,XianggeGarden,DevelopmentZone 163318 0459-6500670
83 DaqingAolongBranch No.24,AolongCommunityB,LongfengDistrict,Daqing 163711 0459-8171313
84 DaqingChangqingBranch No.23,SunnyJiayuanPhaseII,RanghuluDistrict,Daqing 163453 0459-5977131
85 DaqingZhengyangBranch NorthofZhengyangStreet,ZhaozhouTown,ZhaozhouCounty,Daqing 166400 0459-8512628
86 DaqingYuanwangBranch No.22,XihuRoad,RanghuluDistrict,Daqing 163458 0459-5996277
BusinessService,No.19andNo.20,YitengShangdu 87 DaqingRunfengBranch 163311 0459-6150151 District2,SartuDistrict,Daqing
271 2011 Annual Report 272 0459-4815512 0459-5166118 0459-5085789 0459-6408000 0459-4689839 0459-5931817 0459-5158038 0453-6265414 0453-6955841 0453-6937149 0453-6285023 0453-6266354 0453-6926503 0453-6680718 0453-6930614 0453-7688637 0453-3520645 0453-3927089 0453-7233001 0453-3124415 0453-3621081 0453-6265414 0453-7612288 0453-6221775 0453-6481108 0453-6935626 0453-6680728 0453-6926343 0459-5086515 BusinessAcceptanceTel. 163412 163458 163453 163453 163453 157000 157000 157000 157000 157000 157000 157000 157000 157400 157699 157300 157199 157500 157200 157000 157400 157009 157000 157000 157000 157000 163711 163000 163453 kInstitutions LongjiangBan Listof JinxiuyuanBuildingF,LongfengDistrict,Daqing BusinessServiceBuildingB,No.9,Jingsan Street,DevelopmentCenterofSportsIndustry, SartuDistrict,Daqing No.152,EastChang'anStreet,Dong'anDistrict,Mudanjiang No.119-C,EastPing'anStreet,YangmingDistrict,Mudanjiang No.97,EastXin'anStreet,Dong'anDistrict,Mudanjiang No.62,TongjiangRoad,Ning'anCity NewHongjiYutingParkCommunity,MiddleSection,WenzhengStreet,LinkouCounty No.243,TongtianRoad,SuifenheCity No.37,LinhaiRoad,HailinCity No.139,ChangzhengRoad,MulingCity No.29,ZhonghuaNorthRoad,DongningCounty No.8,WestPing'anStreet,Xi'anDistrict,Mudanjiang No.5,TongjiangRoad,Ning'anCity No.45,XinhuaRoad,AiminDistrict,Mudanjiang WestZone,Farmers'Market,MieheVillage,NorthofXinglongSquare,Mudanjiang No.35,FuminStreet,Dong'anDistrict,Mudanjiang No.85,EastErtiaoRoad,Dong'anDistrict,Mudanjiang No.195,EastYitiaoRoad,Dong'anDistrict,Mudanjiang ,RanghuluDistrict,Daqing No.24andNo.26,QiushiRoad IntersectionBetweenQixingStreetandTaipingRoad,Dong'anDistrict,Mudanjiang No.2,Chang'anStreet,Dong'anDistrict,Mudanjiang No.25,WestChang'anStreet,Xi'anDistrict,Mudanjiang No.1-A,WestPing'anStreet,Xi'anDistrict,Mudanjiang No.22,YinyiSunnyCityE,RanghuluDistrict,Daqing No.62,XinzeRoad,RanghuluDistrict,Daqing No.106,AiminStreet,Xi'anDistrict,Mudanjiang ghuluDistrict,Daqing No.1,YinlangNewCity,Ran huluDistrict,Daqing No.16,JiangshuStreet,Rang No.136,Kunlun SunnyXinyuanCommunity, qing Street,RanghuluDistrict,Da DaqingLongshengBranch DaqingLongxiangBranch MudanjiangBranchBankingDepartment MudanjiangFuqiangBranch MudanjiangZhendongBranch MudanjiangAiminBranch MudanjiangJiansheBranch MudanjiangDongshengBranch MudanjiangYangmingBranch MudanjiangZhigongBranch MudanjiangNing'anBranch MudanjiangLinkouBranch MudanjiangSuifenheBranch MudanjiangHailinBranch MudanjiangMulingBranch MudanjiangDongningBranch MudanjiangPing'anBranch MudanjiangMudanBranch MudanjiangXinhuaBranch MudanjiangXinquBranch MudanjiangFuminBranch MudanjiangDong'anBranch MudanjiangXin'anBranch DaqingMinghuBranch DaqingAolinBranch DaqingXinyuanBranch DaqingYinlangBranch DaqingYueyuanBranch DaqingJingyuanBranch 94 95 96 97 98 99 88 89 90 92 93 91 Postcode Address SNName 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 ListofLongjiangBankInstitutions
SNNameAddressPostcode BusinessAcceptanceTel.
117 MudanjiangXingsuiBranch No.97,1/F,SquareBuilding,SuifenheCity 157300 0453-3927095
118 MudanjiangChangqingBranch No.37,LinhaiRoad,HailinCity,UnderthePeople'sBankBuilding,ZirongStreet,HailinCity 157199 0453-7220855
119 MudanjiangChaiheBranch MaolinBuliding,XueziStreet,LinxingRoad,ChaiheTown,HailinCity 157131 0453-7529377
120 QitaiheBranchBankingDepartment No.297,DatongStreet,TaoshanDistrict,Qitaihe 154600 0464-8688598
121 QitaiheJingfengBranch No.26,JingfengRoad,TaoshanDistrict,Qitaihe 154600 0464-8264346
122 QitaiheYinjuBranch (1/F,BuildingNo.1,XuefuJiayuan)XuefuRoad,TaoshanDistrict,Qitaihe 154600 0464-8251456
123 QitaiheYucaiBranch No.111,DatongStreet,TaoshanDistrict,Qitaihe 154600 0464-8688113
124 QitaiheXuefuBranch BuildingNo.2,XuefuBuilding,TaodongStreet,TaoshanDistrict,Qitaihe 154600 0464-8697661
125 QitaiheTaoshanBranch 1/F,TaoshanTradeCity,DamingStreet,TaoshanDistrict,Qitaihe 154600 0464-8280778
126 QitaiheHubinBranch BuildingNo.6,HubinCommunity,XuefuRoad,TaoshanDistrict,Qitaihe 154600 0464-8266646
127 QitaiheGuangmingBranch BuildingNo.20,Yi'anCommunity,GuangmingStreet,TaoshanDistrict,Qitaihe 154600 0464-8278836
128 QitaiheYinxinBranch No.57,Chang'anStreet,BoliCounty 154500 0464-6180811
129 QitaiheDatongBranch No.24,DatongStreet,TaoshanDistrict,Qitaihe 154600 0464-8280742
130 QitaiheZhengwuBranch No.45,DatongStreet,TaoshanDistrict,Qitaihe 154600 0464-8292134
131 QitaiheTaibaiBranch XiaguangStreet,TaoshanDistrict,Qitaihe 154600 0464-8289199
132 QitaiheNew-MartBranch ShanhuRoad,TaoshanDistrict,Qitaihe 154600 0464-8266635
133 QitaiheGuangyiBranch No.136,YangyangStreet,QieziheDistrict,Qitaihe 154600 0464-8813898
134 QitaiheQieziheBranch DongfuRoad,QieziheDistrict,Qitaihe 154600 0464-8814848
135 QitaiheXinxingBranch ZhengyangStreet,XinxingDistrict,Qitaihe 154600 0464-8331584
136 QitaiheBeishanBranch No.41,YuexiuRoad,XinxingDistrict,Qitaihe 154600 0464-8335999
137 QitaiheZhenxingBranch ZhengyangStreet,XinxingDistrict,Qitaihe 154600 0464-8331583
138 QitaiheLongxiangBranch XinghuaStreet,XinxingDistrict,Qitaihe 154600 0464-8334334
139 QitaiheBoliBranch No217,BeidazhiRoad,BoliCounty 154500 0464-6180555
140 QitaiheHuixinBranch No20,XuefuRoad,BoliCounty 154500 18945475806
141 HeheiBranchBankingDepartment No.131,ZhongyangEastStreet,Hehei 164399 0456-6186012
142 HeiheJiusanBranch MiddleSegment,ShangheRoad,JiusanManagementBureauofLandReclamation 161441 0456-7878061
143 HeiheBei'anBranch No.10ofBuildingD,WenhuaCommunity,LoangjiangRoad,BeianCity 164000 0456-6198818
144 JiamusiBranchBankingDepartment No.906,Chang'anRoad,QianjinDistrict,Jiamusi 154002 0454-6045148
145 JiamusiJiansanjiangBranch MiddleSegment,YingbinRoad,LandreclamationJiansanjiangManagementBureau 156300 0454-6194666
146 DaXing'anLingBranchBankingDepartment No.99,WestYidaoStreet,JiagedaqiDistrict,DaXinganMountains 165000 0457-6116956
147 YichunBranchBankingDepartment No.173,TongshanRoad,YichunDistrict,Yichun 153000 0458-3029911
273 2011 Annual Report 274 0458-2879903 0468-6187770 0469-6672618 0469-5868500 0455-8715051 0455-7625003 0459-7966607 0467-6230000 BusinessAcceptanceTel. 154100 155100 152000 151400 151100 158100 155811 152500 kInstitutions LongjiangBan Listof ZhenxingGarden, No.105-106,Building18#, 18Wei,XiangyangDistrict shanDistrict No.207,XinxingStreet,Jian No.29,NorthZhongzhiRoad,Suihua Floors1-2,RundaXuefuHighVuiding,DaqingRoad,AndaCity No.95,ZhengyangJiudaoStreet,Zhaodong No.97,DongfengRoad,JiguanDistrict,Jixi tLocalTaxBureau, WestSideofZhengyangStree gyangStreet,TieliCity TieliCity,No.273-2ofZhen (No.5ofZhongxingGardenBuilding7)Middle Segment,ZhongxingRoad,Sanwei,Hongxinglong Subbureau,YouyiCounty artment HegangBranchBankingDep partment ShuangyashanBranchBankingDe SuihuaBranchBankingDepartment SuihuaAndaBranch SuihuaZhaodongBranch JixiBranchBankingDepartment ShuangyashanHongxinglongBranch YichunTeiliBranch 149 152 153 154 155 150 151 148 Postcode e Address SNNam