Huishang Bank Corporation Limited* 徽 商 銀 行 股 份 有 限 公
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Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. Huishang Bank Corporation Limited* 徽商銀行股份有限公司* (A joint stock company incorporated in the People’s Republic of China with limited liability) (Stock Code:3698 and 4608 (Preference shares)) 2020 INTERIM RESULTS ANNOUNCEMENT The board of directors (the “Board”) of Huishang Bank Corporation Limited (the “Bank”) is pleased to announce the unaudited interim results of the Bank and its subsidiaries for the six months ended June 30, 2020. This announcement, containing the full text of the 2020 Interim Report of the Bank, complies with the relevant content requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited in relation to preliminary announcements of interim results. The printed version of the Bank’s 2020 Interim Report will be delivered to the holders of H Shares of the Bank and available for viewing on the websites of Hong Kong Exchanges and Clearing Limited at www.hkexnews.hk and of the Bank at www.hsbank.com.cn in September 2020. By order of the Board Huishang Bank Corporation Limited* Wu Xuemin Chairman Hefei, Anhui Province, the PRC August 27, 2020 As at the date of this announcement, the Board comprises Wu Xuemin and Zhang Renfu as executive directors; Zhu Yicun, Yan Chen, Wu Tian, Qian Dongsheng, Gao Yang, Wang Wenjin and Zhao Zongren as non-executive directors; Dai Peikun, Zhou Yana, Liu Zhiqiang, Yin Jianfeng and Huang Aiming as independent non-executive directors. * Huishang Bank Corporation Limited is not an authorized institution within the meaning of the Hong Kong Banking Ordinance (Chapter 155 of the Laws of Hong Kong), not subject to the supervision of the Hong Kong Monetary Authority, and not authorized to carry on banking/deposit-taking business in Hong Kong. Contents Definitions 4 Chapter I Corporate Information 6 Chapter II Summary of Accounting Data and Business Data 8 Chapter III Management Discussion and Analysis 10 Chapter IV Changes in Share Capital and Particulars of Shareholders 52 Chapter V Directors, Supervisors, Senior Management, Employees and 61 Institutions Chapter VI Corporate Governance 66 Chapter VII Significant Events 68 Chapter VIII Interim Financial Report 71 2020 INTERIM REPORT 徽商銀行股份有限公司 Definitions In this interim report, unless the context otherwise requires, the following terms shall have the meaning set out below. “Bank” or “Huishang Bank” Huishang Bank Corporation Limited, including its subsidiaries and branches “China” or “PRC” the People’s Republic of China “CBIRC” the China Banking and Insurance Regulatory Commission “CBRC” the former China Banking Regulatory Commission “CBIRC Anhui Office” the China Banking and Insurance Regulatory Commission Anhui Office “CBRC Anhui Office” the former China Banking Regulatory Commission Anhui Office “PBOC” the People’s Bank of China “Domestic Shares” the ordinary shares issued by the Bank in the PRC with a nominal value of RMB1.00 per share “H Shares” the ordinary shares issued by the Bank to overseas investors, which are denominated in RMB, subscribed for in Hong Kong Dollars and listed on the Main Board of the Hong Kong Stock Exchange “Offshore Preference Shares” 44,400,000 non-cumulative perpetual offshore preference shares with a nominal value of RMB100 per share issued by the Bank at the issue price of US$20 per share and listed on the Hong Kong Stock Exchange to raise US$888 million “Hong Kong” Hong Kong Special Administrative Region of the PRC “Hong Kong Stock Exchange” The Stock Exchange of Hong Kong Limited “Hong Kong Listing Rules” the Rules Governing the Listing of Securities on the Hong Kong Stock Exchange “H Share Listing” the listing of H Shares of the Bank on the Main Board of the Hong Kong Stock Exchange on 12 November 2013 “SFO” Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “Corporate Governance Code” the Corporate Governance Code set out in Appendix 14 to the Hong Kong Listing Rules “Model Code” the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix 10 to the Hong Kong Listing Rules “Latest Practicable Date” the latest practicable date for the purpose of ascertaining certain information contained in this report, i.e. 27 August 2020 “Non-green Industries” heavily-polluting, highly energy-consuming and over-capacity industries “Reporting Period” the first half of 2020 (1 January 2020 to 30 June 2020) “Three Dimensional abbreviation for issues related to agriculture, rural areas and farmers Rural Issues” 4 INTERIM REPORT 2020 Definitions “Yuan” or “RMB” Renminbi, the lawful currency of China. Unless otherwise specified herein, the currency used in this report shall be Renminbi “US$” or “U.S. Dollars” U.S. dollars, the lawful currency of the United States “HK$” or “Hong Kong Dollars” Hong Kong dollars, the lawful currency of Hong Kong “MLF” Medium-term Lending Facility “IFRS” International Financial Reporting Standards “PMI” Purchasing Managers’ Index “GDP” Gross Domestic Product “PPP” Public-Private Partnership “FVTPL” Fair Value through Profit and Loss 5 徽商銀行股份有限公司 Chapter I Corporate Information 1.1 CORPORATE INFORMATION 1.1.1 Registered Chinese name:徽商銀行股份有限公司1 Registered English name: Huishang Bank Corporation Limited 1.1.2 Legal representative: Wu Xuemin Authorized representatives: Wu Xuemin, Ngai Wai Fung Secretary to the Board of Directors: Lian Baohua Company secretary: Ngai Wai Fung 1.1.3 Registered and business office address: Block A, Tianhui Building, 79 Anqing Road, Hefei, Anhui Province, the PRC 1.1.4 Contact address: Block A, Tianhui Building, 79 Anqing Road, Hefei, Anhui Province, the PRC Tel:+86-551-62667729 Fax:+86-551-62667787 Postal code:230001 Bank’s website:www.hsbank.com.cn E-mail:[email protected] 1.1.5 Principal place of business in Hong Kong:40/F, Sunlight Tower, No. 248 Queen’s Road East, Wanchai, Hong Kong 1.1.6 Domestic auditor: Ernst & Young Hua Ming LLP (Special General Partnership) Office address: Room 01-12, Level 17, Ernst & Young Tower, Oriental Plaza, No. 1 East Chang An Avenue, Dong Cheng District, Beijing, the PRC International auditor: Ernst & Young Office address: 22/F, Citic Tower, 1 Tim Mei Avenue, Hong Kong 1.1.7 Legal advisor as to PRC law: DeHeng Law Offices Legal advisor as to Hong Kong law: Clifford Chance 1.1.8 Domestic Shares trustee agency: China Securities Depository and Clearing Corporation Limited H Shares registrar: Computershare Hong Kong Investor Services Limited Note: 1. Huishang Bank Corporation Limited is not an authorized institution within the meaning of the Banking Ordinance (Chapter 155 of the Laws of Hong Kong), not subject to the supervision of the Hong Kong Monetary Authority, and not authorized to carry on banking/deposit-taking business in Hong Kong. 6 INTERIM REPORT 2020 CHAPTER I CORPORATE INFORMATION Chapter I Corporate Information 1.2 COMPANY PROFILE Headquartered in Hefei, Anhui Province, Huishang Bank is the first regional joint stock commercial bank in the PRC established through the merger and reorganization of city commercial banks and urban credit cooperatives with the approval of the former CBRC. The Bank was incorporated on 4 April 1997, and changed its name to Huishang Bank Corporation Limited on 30 November 2005. On 28 December 2005, the Bank officially merged with the 5 city commercial banks of Wuhu, Ma’anshan, Anqing, Huaibei and Bengbu and the 7 urban credit cooperatives of Lu’an, Huainan, Tongling, Fuyang Technology, Fuyang Xinying, Fuyang Yinhe and Fuyang Jinda in Anhui Province. The Bank officially opened for business on 1 January 2006. On 12 November 2013, H Shares of the Bank were listed on the Main Board of the Hong Kong Stock Exchange (stock code: 3698). The Bank holds a financial institution license numbered B0162H234010001 from the former CBRC Anhui Office and the unified social credit code numbered 913400001489746613 from the former Anhui Provincial Administration of Industry and Commerce. The registered address is Block A, Tianhui Building, 79 Anqing Road, Hefei, Anhui Province, the PRC. As at the end of June 2020, the registered capital of the Bank was RMB12,154,801,211. The Bank successfully issued the USD888,000,000 Offshore Preference Shares in November 2016 and such shares were listed on the Hong Kong Stock Exchange (stock code: 4608). The Bank’s principal activities in the PRC include the taking of deposits from corporate and retail customers, the granting of loans using the deposits received, and the conducting of capital business including money market business, investment and trading business and transactions on behalf of customers. As at the end of June 2020, the Bank had 9,4521 on-the-job employees. Apart from its headquarter, the Bank has 21 branches, 485 front offices and 680 self-service areas (points). The Bank also has four subsidiaries, namely Huishang Bank Financial Leasing Co., Ltd., Huishang Bank Wealth Management Co., Ltd., Wuwei Huiyin Rural Bank Co., Ltd. and Jinzhai Huiyin Rural Bank Co., Ltd. and owns equity interest in Chery Huiyin Motor Finance Service Co., Ltd. and Mengshang Bank Co., Ltd. By maintaining its market position as a bank “serving the local economy, serving small and medium enterprises (“SME(s)”) and serving the general public”, the Bank has continuously experienced a relatively fast growth in its business development, has gradually strengthened its comprehensive strength, has steadily improved its operational management standards, and has achieved a synergic development of scale, quality and efficiency. With the full recognition and widespread praise from all sectors of society, the Bank was named one of the top 200 in the “Top 1000 World Banks” by The Banker, a UK magazine, with the ranking at No.