Chongqing Three Gorges Bank Co., Ltd. 2016 Annual Report
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Chongqing Three Gorges Bank Co., Ltd. 2016 Annual Report April 2017 Contents Definitions.........................................................................1 Chairman’s Statement.................................................... 2 Important Notice..............................................................4 1. Bank Profile..................................................................5 2. Accounting and Business Data Summary................ 7 3. Business Summary.................................................... 13 4. Management Discussion and Analysis....................25 5. Changes in Share Capital and Shareholdings of Shareholders...................................................................74 6. Directors, Supervisors, Senior Management Members and Staff........................................................ 79 7. Corporate governance...............................................96 8. Significant Events....................................................130 9. Financial Report......................................................134 10. Inspection Documents Catalog............................ 135 2016 Annual Report Definitions Unless otherwise specified, definitions of following terms are as follows: In the text Definitions The Bank, Company and the Company Chongqing Three Gorges Bank Co., Ltd. Articles of Association of the Bank, Articles of Articles of Association of Chongqing Three Association of the Company Gorges Bank Co., Ltd. Our country The People's Republic of China Central Bank, People's Bank of China People's Bank of China BRC, CBRC China Banking Regulatory Commission CQITC Chongqing International Trust Inc. Amount of currency Amount is in RMB unless otherwise specified 1 2016 Annual Report Chairman’s Statement Time flies in a blink of an eye. 2016 was an fruitful year in the Bank’s development. Confronted with complicated economic and financial situation, the Bank acted positively, planned in advance and took the initiate to adapt itself to new normal of economic development. Based upon ‘development promotion, risk prevention’ under the theme of ‘management improvement’ and highlighting by ‘reform, development, risk management, service and culture’, the Bank has been adhering to the development path of ‘integration, specialization, differentiation, refinement and professionalization’, sparing no effort in exploration and innovation, enhancing risk control, advancing operational transformation, performing social responsibility and preferably fulfilling major target tasks. To sum up, the Bank has not only maintained healthy and steady development trend, but also made a good beginning for ‘the 13th Five-Year Plan’. By the end of reporting period, the Bank generated total assets of RMB 181.50 billion, deposits balance of RMB 122.16 billion and loans balance of RMB 38.45 billion. Total realized profits of the Bank amounted to RMB 2.60 billion, including RMB 1.985 billion of realized net profit, and NPL ratio stood at 0.93%. As a result, scheduled targets assigned by Board of Directors in the beginning of the period have been achieved. In addition, all supervision indicators have met the requirements of prudential supervision. In 2016, the Bank dared to blaze new trails in a pioneering spirit, strove to find sally port for innovation from homogeneous competition. As result, not only its 2 2016 Annual Report comprehensive operational strength is enhanced, but also its brand influence is improved continuously as it received various awards including ‘Top 100 Chongqing Enterprises’, ‘Top 100 Chongqing Service Enterprises’, ‘Top 50 Profitable Chongqing Enterprises’, ‘Top 10 Growing Banks in Chinese Local Finance’, ‘Top 4 Urban Commercial Bank in Competitiveness Evaluation’ and ‘2016 Top 10 Commercial Banks Supporting Development of Small-and-medium-sized Enterprises Nationwide’. The Bank ranked the 82nd in Top 100 Banks Ranking first published by China Banking Association. In 2016, the Bank moved up 115 places (compared with that in last year) to 530th among the Top 1000 Bank Brands by the Banker, and ranked the 22nd among Global Fastest-Growing Commercial Banks. ‘A time will come to ride the wind and cleave the waves, I’ll set my cloud like sail to cross the sea which raves.’ ‘In 2017, the Bank will adhere to the principle of steady development and compliance operation, fulfill social responsibilities effectively, support local construction fully, serve economic and social development, be strict in risk control, carry out internal construction strictly, strive to realize coordinated and sustainable development, promote the Bank to go a step further, and do all it can do to respond trust and support of shareholders and all sectors of society!’ Chairman: Ding Shilu April 27, 2017 3 2016 Annual Report Important Notice Board of Directors and directors of Chongqing Three Gorges Bank Co., Ltd. ensure that there are no false records, misleading statements or major omissions in the report. The Bank bears joint and several liabilities for their authenticity, accuracy and integrity. On April 21, 2017, Board of Directors of the Bank deliberated and approved 2016 Annual Report and Summary. Financial figures in the report are prepared according to Accounting Standards for Business Enterprises - Basic Standards, various specific accounting standards, Application Guide of Accounting Standards for Business Enterprises, Explanation on Accounting Standards for Business Enterprises and other provisions issued by the Ministry of Finance. 2016 Annual Financial Report has been audited by ShineWing International Accounting Firm in accordance with PRC Independent Standards on Audit for Certified Accountants, and standard 2016 Annual Auditor's Report with clean opinion has been issued as well. Ding Shilu, Chairman & President of the Bank and Wang Liangpin, Financial Administrator jointly declare and guarantee authenticity and integrity of financial data in this annual report. Board of Directors of Chongqing Three Gorges Bank Co., Ltd. April 27, 2017 4 2016 Annual Report 1. Bank Profile 1.1 Legal Chinese name: 重庆三峡银行股份有限公司(hereinafter referred to as: 重 庆三峡银行) 1.2 Legal English name: CHONGQING THREE GORGES BANK CO.,LTD. 1.3 Legal representative: Ding Shilu 1.4 Board Secretary: Yao Jiangjun 1.5 Registered and office address: No.3, Baiyan Road, Wanzhou District, Chongqing, and No.99, Huichuanmen Road, Jiangbeicheng, Jiangbei District, Chongqing Zip: 404000 Website: www.ccqtgb.com Customer services tel: 96968 1.6 Information disclosed on: public newspaper authorized by supervision department Annual report published at: www.ccqtgb.com Annual report prepared at: Board Office, Head Business Office, business hall of branch and sub-branch 1.7 Address: 28F, Tower B, Oriental International Square, No.99, Huichuanmen Road,Jiangbeicheng, Jiangbei District, Chongqing Tel.: 023-88890985 Fax: 023-88890022 1.8 Registration Information: First registered on: February 18, 1998 5 2016 Annual Report Unified social credit code: 915001017116939742 1.9 Auditor Name: ShineWing International Accounting Firm Office address: 9F, Tower A, Fuhua Building, No.8, Chaoyangmen North Street, Dongcheng District, Chongqing 6 2016 Annual Report 2. Accounting and Business Data Summary 2.1 Major operating profit norm during reporting period 2.1.1 Overall profit norm (unit: ten thousand yuan) reporting period Total profit 260,508.69 Net Profit 198,476.93 Profit from major operations 259,556.46 Profit from other operations -111.04 Operating profit 259,445.42 Investment income 5,928.09 Net nonoperating income and expense 1,063.27 Net cash flow provided by operating 3,022,394.54 activities 2.1.2 Deducted amount involving non-recurring profit and loss item (unit: ten thousand yuan) Non-recurring profit and loss reporting period Non-business expenditure 1,688.00 Gain from non-current asset disposal 390.63 Income from penalties 39.47 Government grant 1,227.68 Other incomes 30.22 Nonoperating expense 624.73 Disposal loss on non-current assets 125.52 Donations made 83.61 Loss from compensation and penalty 0.00 Loss from credit asset transfer 404.89 Others 10.71 Net nonoperating income and expense 1,063.27 Income tax affected by non-recurring profit and loss 265.82 Amount 797.45 7 2016 Annual Report 2.2 Main accounting data and financial index in previous three years by the end of reporting period (unit: ten thousand yuan) 2016 2015 Year 2014 Operating revenue 426,346.42 355,191.66 272,528.85 Total profit 260,508.69 168,293.72 142,749.91 Net Profit 198,476.93 126,804.34 106,783.19 Total assets 18,150,364.06 13,246,802.48 10,079,798.82 Total liabilities 16,924,100.72 12,360,738.48 9,530,559.93 Basic earning per share (RMB) 0.54 0.43 0.36 Diluted earnings per share (RMB) 0.54 0.43 0.36 Fully diluted return on equity (%) 16.19 14.31 19.44 Weighted average return on equity 21.13 20.71 21.45 (%) Shareholders' equity 1,226,263.34 886,064.00 549,238.88 Net asset value per share 2.78 2.90 2.33 Note: the Bank officially launched listing work and proceeded to counseling period in the 4th quarter of 2016, preparatory work was proceeding orderly. In order to guarantee normativity of IPO enrollment period accounting and consistency of accounting policies, improve financial information quality declared for IPO, the Bank sorted out various accounting methods and accounting policies, and standardized and adjusted preliminary comparative statements. 8 2016 Annual Report 2.3 Principal activity information and data in previous three years by the end of reporting period (unit: ten thousand