2019 ANNUAL REPORT Important Notes
Total Page：16
File Type：pdf, Size：1020Kb
2019 ANNUAL REPORT Important Notes ◎ The Board of Directors, Board of Supervisors, directors, supervisors and senior management of the Company guarantee that the information presented in the Report are true, accurate and complete, and do not contain false records, misrepresentations and major omissions and bear individual and joint legal liabilities. ◎ The 2019 Annual Report was approved on 3 March 2020 by the 11th Meeting of the 7th Board of Directors. Fifteen directors were expected to attend the meeting. Fifteen directors were present at the meeting. Eight supervisors of the Company were present at the meeting. ◎ KPMG Huazhen LLP issued a standard unqualified auditors' report for the Company in accordance with the China Accounting Standards. ◎ The Annual Report is prepared in simplified Chinese, traditional Chinese and in English. The simplified Chinese version shall prevail if the Chinese and English versions do not conform. ◎ Mr. Lu Guofeng, Chairman of the Board of Directors of the Company, Mr. Cheng Jingsong, President of the Bank, Ms. Sun Weiling, Chief Accountant, and Ms. Wei Sanfang, Head of Accounting Department represent that financial reports presented in the Annual Report are true, accurate and complete. ◎ The profit appropriation plan for the reporting period approved at the 11th Meeting of the 7th Board of Directors is to distribute cash dividend totalling RMB 545 million to all shareholders of 2.18 billion capital shares at 31 December 2019 on the basis of RMB 2.5 (including tax) for every 10 shares. ◎ Unless otherwise stated, the accounting and financial data mentioned in the report are consolidated data. ◎ Forward-looking descriptions involved in the report, including future planning and development strategies are not regarded as the Bank’s substantial commitments to its investors. Investors and relevant parties should be sufficiently aware of the related risks and understand the distinction among plans, forecasts and commitments. ◎ Investors are expected to read the full text of the report carefully. Further details on existing major risks and proposed countermeasures are set out in the report. Please refer to “Discussion and Analysis on Operating Performance” for information relating to risk management. Contents Interpretation ...................................................................................................................02 Chairman’s Address......................................................................................................03 Company Overview ....................................................................................................04 Summary of Accounting and Business Data .............................................05 Corporate Business Overview ..............................................................................08 Discussion and Analysis on Operating Performance ...........................15 Significant Matters ........................................................................................................46 Changes in Shares and Shareholders..............................................................52 Directors, Supervisors, Senior Management and Employees ........54 Corporate Governance .............................................................................................61 Financial Reporting ......................................................................................................76 List of Reference Documents ...............................................................................77 02 BANK OF DONGGUAN ANNUAL REPORT 2019 Interpretation Interpretation In the report, unless otherwise stated, the following terms contain connotations as below: 1.“Bank of Dongguan”, “the Bank”, “our Bank” and “the Company” all refer to Bank of Dongguan Co., Ltd. 2.Cai Kuai [2018] No.36 represents the Notice on Issuing the Format of Financial Statements of Financial Enterprises for 2018. 3.The reporting period represents the year 2019. 03 Chairman’s Address 2019 marks the 70th anniversary of the founding of the People's Republic of China. It is also a critical year for the Bank to comprehensively deepen reform, implement its five-year strategic plan and three-year business planning initiative. In the past year, amid the changes and challenges in domestic and overseas business environment, we carried out reforms in key areas and continued to improve our operation capabilities under the effective supervision from regulators with the supports from governments and all sectors of the society. In 2019, all major regulatory indicators have met the standards; the Bank’s development remained steady and positive and a more solid path to the Bank’s development can be seen. Over the past year, the Board of Directors and Senior Management diligently performed their duties, which mainly included: Adhering to the Party’s leadership and strengthening the Party’s construction. Following the President Xi Jinping’s Thought on socialism with Chinese characteristics in the new era and the spirit of the Nineteenth CPC National Congress, we carried out special campaign with the theme of “Never forget why we started and keep the mission in mind” to concentrate comprehensive efforts of strict Party governance. Dedicatedly serving the real economy. Adhering to the primary objective of serving the real economy, we advanced fintech and explored inclusive finance service, so as to develop innovative green finance. Continuing to deepen reform of systems and mechanisms. We further improved the corporate governance mechanism, actively promoted the reform of the organisational system and risk control system, and fully implemented the new performance assessment, resource allocation and tiered customer service system. The vitality of the new system and mechanism is gradually reflected. Striving to perform risk management. We adhered to bottom-line thinking. By strengthening the audit supervision mechanism and security, we performed comprehensive risk management and advanced case prevention and compliance risk management construction. We always fulfilled our responsibility to guard against risks. Strongly promoting talent building. We guaranteed the lawful rights and interests of our employees and ensured a barrier-free path for their career development. By putting talent building initiatives into practice, we aim to boost our team’s dynamics and mutual growth for both employees and the enterprise. In 2019, our Bank proactively fulfilled our social responsibilities. We vigorously supported local economic development and participated in public welfare for cultural, sports, educational and medical development. In addition, we constantly fought against poverty and played a proactive role as financial entity in economic development. In 2020, we are determined to put into practice the initiative and requirements by President Xi Jinping and CPC Central Committee regarding the COVID-19 pandemic. We will endeavour to maintain financial stability and offer helping hands to entities in need; we will also be firmly supporting the resumption of production to boost service quality. Our Bank will be motivated by the mission and closely follow the leadership of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as our guiding principle. We will carry out the new development concept, deeply implement the innovation driven strategy, seize the important opportunity of the construction of Guangdong-Hong Kong-Macao Greater Bay area, continue to deepen reform, strive to perform business management, and present outstanding operating performance in return for the support of the majority of shareholders and all sectors of society. Chairman: 04 BANK OF DONGGUAN ANNUAL REPORT 2019 Company Overview Company Overview I. Company status Legal Chinese name 东莞银行股份有限公司 Chinese abbreviation 东莞银行 Legal English name BANK OF DONGGUAN CO.,LTD. English abbreviation BOD Legal representative Lu Guofeng Date of initial registration 8 September 1999 Unified social credit code 914419007076883717 Financial license No. B0201H244190001 Registered office address No. 21 Tiyu Road, Guancheng District, Dongguan, Guangdong II. Contacts Secretary of Board of Directors Mr. Li Qicong Office of the Board of Directors, Bank of Dongguan, No. 21 Tiyu Road, Guancheng District, Contact address Dongguan, Guangdong Tel 0769-22865192 Fax 0769-22116029 E-mail [email protected] Postal code 523000 III. Disclosure and preparation site for the annual report Newspapers for publishing a summary of the annual report Financial Times Website for annual report publishing Official website of the Bank: http://www.dongguanbank.cn Site for preparing the annual report Office of the Board of Directors and branch offices of the Company IV. Other relevant information Certified public accountant engaged KPMG Huazhen LLP Office address 8th Floor, KPMG Tower Oriental Plaza, 1 East Chang An Avenue Signing Certified Public Accountants Huang Aizhou, Li Jiali 05 Summary of Accounting and Business Data I. Major accounting data and financial indicators Unit: RMB '000 Item 2019 2018 Operating income 9,082,673 7,495,102 Net interest income 6,973,237 6,324,224 Total profits 2,947,255 2,677,341 Net profits 2,832,463 2,461,066 Net profit attributable to shareholders of the Company 2,826,134 2,456,745 Net profit attributable to shareholders of the Company 2,830,921 2,391,341 after deducting non-recurring profit and loss Total assets 372,007,876 314,498,863 Total liabilities 349,199,810 293,773,402 Shareholders’ equity 22,808,066