2020 Annual Results Announcement
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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. CHINA ZHESHANG BANK CO., LTD. 浙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: 2016) (Stock Code of Preference Shares: 4610) 2020 ANNUAL RESULTS ANNOUNCEMENT The board of directors (the “Board”) of China Zheshang Bank Co., Ltd. (the “Bank”) hereby announces the audited results of the Bank for the year ended December 31, 2020. This announcement, containing the full text of the 2020 annual report of the Bank, complies with the relevant requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) in relation to information to accompany preliminary announcements of annual results. PUBLICATION OF ANNUAL RESULTS ANNOUNCEMENT AND ANNUAL REPORT Both the Chinese and English versions of this results announcement are available on the websites of the Bank (www.czbank.com) and the Stock Exchange (www.hkex.com.hk). In the event of any discrepancies in interpretations between the English and Chinese text, the Chinese version shall prevail. The printed version of the 2020 annual report of the Bank will in due course be delivered to the H shareholders of the Bank and available for viewing on the websites of the Bank (www.czbank.com) and the Stock Exchange (www.hkex.com.hk). By order of the Board China Zheshang Bank Co., Ltd. Shen Renkang Chairman Hangzhou, the PRC March 30, 2021 As at the date of this announcement, the executive directors of the Bank are Mr. Shen Renkang and Mr. Xu Renyan; the non-executive directors are Mr. Wang Jian, Mr. Ren Zhixiang, Ms. Gao Qinhong, Mr. Hu Tiangao, Mr. Zhu Weiming and Ms. Lou Ting; the independent non-executive directors are Mr. Tong Benli, Mr. Dai Deming, Mr. Liu Pak Wai, Mr. Zheng Jindu, Mr. Zhou Zhifang, Mr. Wang Guocai and Mr. Wang Wei. Important Notice The Board of Directors, the Board of Supervisors, Directors, Supervisors and Senior Management of the Company warrant that the contents in this report are true, accurate and complete and have no false representations, misleading statements or material omissions, and they will take legal responsibilities for such contents on a joint and several basis. The twelfth meeting of the fifth session of the Board of the Company, held on March 30, 2021, approved the Annual Report of China Zheshang Bank Co., Ltd. for 2020 and its Summary. The Company has 15 Directors, among which 13 Directors attended the meeting in person, and Mr. Xu Renyan had authorized Mr. Shen Renkang to attend the meeting on his behalf and Mr. Ren Zhixiang had authorized Mr. Zhu Weiming to attend the meeting on his behalf, which was in compliance with the requirements of the Company Law of the People’s Republic of China and the Articles of Association of the Company. 5 Supervisors of the Company attended the meeting. KPMG Huazhen LLP and KPMG (both being auditors of the Company) have audited the 2020 annual financial report of the Company prepared in accordance with the China Accounting Standards and the International Financial Reporting Standards, and have issued standard unqualified audited reports, respectively. Unless otherwise illustrated in this report, the currency for any amount herein is RMB. Certain amounts and percentage numbers in this report have been rounded. Any discrepancies in any table between totals and sums of the amounts listed are due to rounding. This report is prepared in Chinese and English, respectively, and the Chinese version shall prevail in the event of any discrepancy between the two versions. The Board of the Company has proposed to declare a cash dividend of RMB1.61 per 10 shares (tax inclusive) for 2020, payable in RMB to holders of A Shares and in HK dollars to holders of H Shares. The above proposal on dividend distribution is subject to consideration and approval at the 2020 annual general meeting of the Company. Shen Renkang (Chairman of the Bank), Xu Renyan (President of the Bank), Liu Long (Principal in charge of Finance) and Jing Feng (Director of the Financial Department) warrant that the financial report in the annual report is true, accurate and complete. Significant Risk Warning Please refer to the section headed “Management Discussion and Analysis – Risk Management” of this report for information about major risks faced and measures to be taken by the Company. The forward-looking statements about matters like future plans of the Company in this report do not constitute substantive commitments of the Company to the investors, and the investors and related persons shall maintain sufficient risk awareness in this regard, and shall understand the difference among plans, forecasts and commitments. China Zheshang Bank Co., Ltd. Annual Report 2020 Definitions “Company”, “Bank”, China Zheshang Bank Co., Ltd. “our Bank”, “China Zheshang Bank” or “CZBank”: “CBIRC”: China Banking and Insurance Regulatory Commission “CSRC”: China Securities Regulatory Commission “Hong Kong Stock Exchange”: The Stock Exchange of Hong Kong Limited “SFO”: Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “Hong Kong Listing Rules”: The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited “Model Code”: The Model Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix 10 to Hong Kong Listing Rules “Zheyin Financial Leasing”: Zhejiang Zheyin Financial Leasing Co., Ltd., a holding subsidiary 001 of the Company, in which the Company holds 51% of equity interest “Group”: the Company and its subsidiary China Zheshang Bank Co., Ltd. Annual Report 2020 Chairman’s Statement In 2020, we managed to make remarkable achievements despite trials and hardships. Notwithstanding the profound influence of major changes, reforms and events, over the past year, with the support of investors and all walks of society, CZBank implemented a new development concept in a full manner. With a focus on the supply- side structural reform in the financial industry, CZBank innovatively promoted its platform-based business while making efforts to the pandemic prevention and control, as well as financial services, which had strong effectiveness as shown by a stable and sound operation and management throughout the year. In the past year, we realized business innovation and transformational development through planning and coordination. As at the end of the reporting period, the Bank had total assets of more than RMB2 trillion, and recognized operating income of RMB47.771 billion, pre-provision operating profit of RMB34.529 billion and net profit attributable to shareholders of the Bank of RMB12.309 billion notwithstanding the provision made, respectively, all meeting the target specified in the “3rd Five-Year” plan. As we accelerated the upgrade of our platform-based products and business model, the financing balance via the platform-based services accounted for 37% of our total credit facilities. Our platform-based service company had a user base of 62,500 and has established strategic cooperation with many large-scale state-owned group companies and A-share listed companies. The significant increase in the proportion of retail deposits, the continuous increase in the proportion of each type of loans over total assets and the notable decrease in the average loan balance per new borrower indicated our business structure was improving. In the past year, we improved our bank-wide internal control by optimizing governance structure. We 002 optimized the Board composition as appropriate and revised and updated all rules and regulations in a timely manner to transform system advantages into governance efficiency. The Banks performed well during the first corporate governance assessment organized by the CBIRC. We further improved the unified credit management mechanism, proactively made adjustments to existing businesses based on our platform-based products and services, and accelerated the establishment of a big data-oriented risk control platform in order to further improve our comprehensive risk management system and make the quality of assets generally controllable. We have fully implemented the “five strict” (五個從嚴) basic requirements of internal control compliance management, strived to improve the establishment of the three long-term effective mechanisms of internal control, intensified the control over internal control compliance management system and continued to maintain major cases and major operational risks at a “zero” level. In the past year, we improved the quality and efficiency of our real economy services by innovating service mode. Throughout the year, we cut rates and reduced interests and fees. We innovatively used our platform- based products and business mode to serve the real economy and provided targeted support to enterprises for the resumption of work, production and distribution to help maintain a safe and sound industrial chain and supply chain effectively. We endeavored to develop a comprehensive service platform of “technology + finance + industry + customer”, which integrates banking business and services into the production, operation and capital management activities of enterprises with the support of financial technology and innovative business mode in order to help the enterprises to reduce cost and improve efficiency and construct a sound supply chain. We also followed the key development strategies of the government, and maintained an industry-leading position in terms of loans to private enterprises and inclusive small and micro enterprise loans, meeting its service target for private enterprises, manufacturing industry and small and micro enterprises fully. China Zheshang Bank Co., Ltd. Annual Report 2020 Chairman’s Statement Many a little makes a mickle. 2021 marks the start of China’s “14th Five-Year Plan” and also the first year of the “Fourth Five-Year Plan” of CZBank.