Annual Report 2015 Chapter I Corporate Information
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BANK OF QINGDAO CO., LTD. (A joint stock company incorporated in the People’s Republic of China with limited liability) (Stock code: 3866) Important Notice 1. The Board of Directors, Board of Supervisors, directors, supervisors and senior management members of the Company assure that the information in this report contains no false records, misleading statements or material omissions, and shall be liable jointly and severally for the authenticity, accuracy and completeness of the information in this report. 2. The proposals on the 2015 Annual Report of Bank of Qingdao Co., Ltd. and the 2015 Financial Statements were considered and approved at the 11th meeting of the sixth session of the Board of Directors of the Company held on 9 March 2016. There were 12 directors eligible for attending the meeting, of whom 10 directors attended the meeting. 3. The overseas auditor of the Company for 2015 was KPMG. The 2015 financial report of the Company prepared in accordance with International Financial Reporting Standards has been audited by KPMG, with unqualified auditor’s report issued. 4. Unless otherwise specified, the currency of the amounts mentioned in this annual report is RMB. 5. The Company’s chairman Mr. Guo Shaoquan, president Mr. Wang Lin, vice president in charge of financial work Mr. Yang Fengjiang and head of planning and finance Mr. Wang Bo assure the authenticity and completeness of this annual report. 6. Profit distribution plan: the Board of Directors of the Company has proposed a final dividend of RMB0.20 per share (tax inclusive) in cash for the year ended 31 December 2015 in an aggregate amount of RMB811,742,549.80 (tax inclusive) to all shareholders of the Company. The dividend distribution proposal will be submitted to the 2015 annual general meeting for approval. 7. This report contains certain forward-looking statements about the financial conditions, operating results and business developments of the Company. The report uses the words “will”, “may”, “strive”, “plan” and similar wording to express forward-looking statements. These statements are made based on current plans, estimates and projections, and although the Company believes that the expectations reflected in these forward-looking statements are reasonable, the Company cannot assure that these expectations will be attained or confirmed to be correct and therefore they do not constitute substantive undertakings of the Company. Investors should not unduly rely on such statements, and should be aware of investment risks. Please note that these forward-looking statements are related to future events or future financial, business or other performance of the Company, and are subject to certain uncertainties which may cause the actual results to differ substantially. Board of Directors of Bank of Qingdao Co., Ltd. Contents Chapter I Corporate Information 2 Chapter II Financial Highlights 4 Chapter III Chairman’s Statement 6 Chapter IV President’s Statement 8 Chapter V Management Discussion and Analysis 11 Chapter VI Significant Events 53 Chapter VII Changes in Share Capital and Information on Shareholders 55 Chapter VIII Directors, Supervisors, Senior Management Members, Employees and Institutions 60 Chapter IX Corporate Governance Report 73 Chapter X Report of the Board of Directors 88 Chapter XI Report of the Board of Supervisors 94 Chapter XII Internal Control 95 Chapter XIII Independent Auditor’s Report 96 Chapter XIV Financial Statements and Notes 97 Chapter XV Unaudited Supplementary Financial Information 178 Definitions 182 Bank of Qingdao Co., Ltd. 1 Annual Report 2015 Chapter I Corporate Information 1.1 BASIC INFORMATION OF THE COmpanY Legal name in Chinese: 青島銀行股份有限公司 Tax registration certificate number: (Abbreviation: 青島銀行) Lu Shui Qing Zi number 370202264609602 Legal name in English: Overseas auditor: BANK OF QINGDAO CO., LTD. KPMG (Abbreviation: BANK OF QINGDAO) 8th Floor, Prince’s Building, 10 Chater Road, Central, Hong Kong Legal representative: Guo Shaoquan Domestic auditor: Authorised representatives: Guo Shaoquan, Lu Lan KPMG Huazhen LLP Secretary to the Board: Lu Lan 8th Floor, KPMG Tower, Oriental Plaza, 1 East Chang An Avenue, Joint company secretaries: Lu Lan, Lai Siu Kuen Dongcheng District, Beijing Registered and office address: Legal adviser as to PRC law: No. 68, Hong Kong Middle Road, Shinan District, Qingdao, King & Wood Mallesons Beijing Shandong Province, PRC Legal adviser as to Hong Kong law: Office of Board of Directors & Supervisors Clifford Chance Address: No. 68, Hong Kong Middle Road, Shinan District, Qingdao, Shandong Province, PRC Compliance Adviser: Postal code: 266071 Somerley Capital Limited Telephone: +86 (532) 85709728 Fax: +86 (532) 85709725 Registrar for H shares: Email: [email protected] Computershare Hong Kong Investor Services Limited Shops 1712-1716, 17th Floor, Hopewell Centre, Principal place of business in Hong Kong: 183 Queen’s Road East, Wanchai, Hong Kong 36th Floor, Tower Two, Times Square, 1 Matheson Street, Causeway Bay, Hong Kong Registrar for domestic shares: China Securities Depository and Clearing Co., Ltd. Company website: http://www.qdccb.com/ No. 17 Taipingqiao Avenue, Xicheng District, Beijing Stock exchange on which H shares are listed: Newspapers designated by the Company for information The Stock Exchange of Hong Kong Limited disclosure: Stock name: BQD China Securities Journal Stock code: 3866 Website for information disclosure by the Company: Business licence registration number: 370000018010094 Website of the Company Date of first registration: 15 November 1996 (http://www.qdccb.com/) Date of change of registration: 14 July 2015 HKExnews Website of the Hong Kong Stock Exchange (http://www.hknews.hk/) Organisational code: 26460960-2 Financial licence institution number: B0170H237020001 2 Bank of Qingdao Co., Ltd. Annual Report 2015 Chapter I Corporate Information 1.2 RECOGNITIONS AND Awards In January 2015, the Company’s Jinan Branch outlet, Donghai West Road No.1 Sub-branch, Hong Kong Middle Road No.2 Sub-branch received the title of 2014 Top 1,000 Exemplary Entities in Offering Civilised and Standardised Services in the China Banking Industry from the China Banking Association, and were acclaimed as among the first batch of national Five-star Outlets in Offering Civilised and Standardised Services in the China Banking Industry. In January 2015, the Company received the title of Advanced Entity for Legal Risk Management in the National Banking Industry from the China Banking Association. In January 2015, the Company received the title of 2013-2014 Advanced Entity and Advanced Player in Corporate Culture Building in the National Financial System from the Research Association on Ideological and Political Work in the Financial Industry in China. Chairman Guo Shaoquan of the Company received the title of 2013-2014 Exemplary Leader in Corporate Culture Building in the National Financial System. In January 2015, the Company received the title of 2014 Outstanding Dealer in the Bond Market from the China Central Securities Depository and Clearing Corporation Limited, and the award of 2014 Most Influential Bank in the Interbank Local Currency Market from the China Foreign Exchange Trading Centre and National Interbank Funding Centre. In February 2015, the Company received the title of the Best City Commercial Bank in Trade Finance for 2014 from the Trade Finance magazine and SINOTF.COM. In July 2015, among the Top 1,000 World Banks released by The Banker, a UK magazine, the Company ranked 434th in terms of asset size, rising by 40 positions compared with that for 2014. In September 2015, at the 2015 Summit Forum on the Development of Small and Medium-sized Banks in China held by the Modern Bankers magazine, the Company received awards of the Best Board of Directors and the Best Company in Safeguarding Brand Integrity and Controlling Reputation Risk. In September 2015, among the top 500 enterprises in the service industry in China jointly released by the China Enterprise Confederation and China Enterprise Directors Association, the Company ranked 274th, rising by 51 positions compared with that for 2014. In December 2015, the Company’s research topic on In-depth Applied Research on Cloud Computing Technology and its Full Promotion and Implementation in Commercial Banks received the recognition of class three research achievement in Information Technology Risk Management in the Banking Industry from the China Banking Regulatory Commission. In December 2015, the Company received the 2015 Award for Best User Experience in Mobile Banking among Regional Commercial Banks at the Eleventh China Electronic Banking Annual Conference held by the China Financial Certification Authority. In December 2015, the Company received awards of the Best Small and Medium-sized Bank and Top Ten Institutions for Innovation in Internet Finance under the Chinese Financial Institutions Golden Medal List – Golden-dragon Award jointly hosted by Financial News and the Institute of Finance and Banking of the Chinese Academy of Social Sciences, winning a total of 6 Golden-dragon Award trophies over the past 5 years. In December 2015, the innovative Online Self-service Trading Platform developed independently by the Company received the third class prize under the Science and Technology Development Award presented by the People’s Bank of China. Bank of Qingdao Co., Ltd. 3 Annual Report 2015 Chapter II Financial Highlights 2.1 FINANCIAL DATA Unit: RMB’000 Year-on-year Item 2015 2014 change 2013 2012 2011 Business Performance