Annual Report 2019 Contents

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Annual Report 2019 Contents JIANGXI BANK CO., LTD. (A Joint stock company incorporated in the People's Republic of China with limited liability) Stock Code: 1916 Annual Report 2019 Contents Chapter I Chairman’s Statement 2 Chapter II Company Profile 4 Chapter III Summary of Accounting Data and Financial Indicators 8 Chapter IV Management Discussion and Analysis 11 Chapter V Changes in Share Capital and Information on Shareholders 82 Chapter VI Directors, Supervisors, Senior Management Members, Employees and Institutions 98 Chapter VII Corporate Governance Report 120 Chapter VIII Report of the Board of Directors 166 Chapter IX Report of the Board of Supervisors 175 Chapter X Important Matters 180 Chapter XI Internal Control and Internal Audit 184 Chapter XII Independent Auditor’s Report 186 Chapter XIII Financial Statements 197 Chapter XIV Notes to the Financial Statements 206 Unaudited Supplementary Financial Information 359 Definitions 363 * This annual report is prepared in both Chinese and English. In the event of inconsistency, the Chinese version shall prevail. ^ For identification purpose only. CHAPTER I CHAIRMAN’S STATEMENT 2019 is an unforgettable year by virtue of our endeavor. Facing the macroeconomic environment where changes exist in general stability and downward pressure continues to increase, Jiangxi Bank has comprehensively and deeply promoted the construction of the Party, devoted itself into its core business while returning to its original goals, and focused on the “Top Ten Actions”1, striving for success in difficulty and progress in stability. – We build up momentum and strength to make another success. In 2019, our growth in size reached a new level, with our total assets exceeding RMB450 billion and our branches covering all cities divided into districts in Guangzhou, Suzhou and Jiangxi Province. Our brand image also reached a new level, ranking 258th among the Top 1,000 World Banks released by The Banker, a British magazine, and up 195 places from that Mr. CHEN Xiaoming upon its establishment, 9th on the list of “Domestic Banks Chairman with Fastest Growth Among Top 1,000 Banks in the World for 2019”, and 35th among the “Top 100 Banks in China’s Banking Industry of 2019” released by China Banking Association. Re-election of the Board successfully concluded and job handover was smooth. The new Board kept on implementing various regulatory requirements, further improving rules and regulations and strengthening compliance and internal control, thereby promoting the continuous optimization of all works in the Bank. – We work together and remain grateful for support. In 2019, we were grateful for the concern and support from all social circles. We extended our gratitude to governments and regulatory authorities at all levels for their guidance from problem identification to rectification, which helped strengthen the foundation for our steady and long-term development. We also thanked our shareholders and clients for their trust by virtue of which we were all the more firm in forging ahead. 2 Jiangxi Bank Co., Ltd. Annual Report 2019 CHAPTER I CHAIRMAN’S STATEMENT – Led by science and technology, we improve both quality and efficiency. In 2019, we vigorously promoted the Science and Technology Action and strove to achieve inclusive finance to “quench thirst” for small and micro private enterprises. The unsecured, non-guaranteed and credit-based “Handheld Micro Loan” and “Micro Enterprise Loan” were launched. We deepened financial technological innovation by applying the “Finance + Blockchain” technology and launched “Cloud Enterprise Chain” to reduce the burden on enterprises by combining blockchain and supply chain finance. We vigorously developed smart finance by the launch of smart healthcare, smart campus, smart tourism and smart transportation, and accelerated the construction of the ecosystem of financial technology. – As a financial entity, we engage in charity and go forward with duties on our shoulders. In 2019, the construction of the hope primary school in Ninghong Village, Xiushui County, a poverty-stricken village in Jiangxi Province, was started, being the sixth hope primary school financed by Jiangxi Bank. We were concerned about the people and worked with love. We did our best to fulfill our social responsibilities in poverty alleviation by means of projects, industries and education to help beat poverty. This Spring Festival started with the “fight against the epidemic with all Chinese uniting as one”. As a corporate citizen, we shared the same breath and destiny with the whole country. Firm in ensuring that the financial service channels were not blocked, the quality of financial services were not degraded, and the credit support remained sustained, we donated RMB23.11 million to Jiangxi Charity Federation for epidemic prevention and control, demonstrating our resolution to shoulder financial responsibility for the critical battle against epidemic and to gather the positive energy of optimism and kindness in finance. – Those who struggle to paddle are the first to reach the destination, and those who walk step by step go far. In 2020, ahead of us lie a situation still grim and tasks even more arduous. Under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will strengthen party leadership, make active transformations and strive for development, so as to enhance the quality and efficiency in serving real economy across the board. Only when one walks steadily can one go far. We will stick to our original goal with perseverance, fulfill our mission with persistence, and embark on a brand new journey! 1. The “Top Ten Actions” is an important measure to implement the thinking of “stability, change, progress and service”, which is, specifically, to raise people’s compliance awareness by “Whistling Action”, to effectively defuse credit risks by “Mine-Sweeping Action”, to generate profits from non-performing assets by “Sword-Wielding Action”, to strengthen scientific and technological capabilities to keep up with the pace of the times by “Branch Intellectualization Action” and “Science and Technology Action”, to promote the steady growth of deposits by “Double Hundred Action”, to facilitate financial service innovation by “Characteristic Action”, to strive for higher bond underwriting volume in 2019 by “Must-Win Action”, to issue green financial bonds by “Green Action”, and to tap into county-level markets by “Blue Ocean Action”. Jiangxi Bank Co., Ltd. Annual Report 2019 3 CHAPTER II COMPANY PROFILE 2.1 BASIC INFORMATION Statutory Chinese name of the Company: 江西銀行股份有限公司* Statutory English name of the Company: JIANGXI BANK CO., LTD.* Legal representative: CHEN Xiaoming Authorized representatives: CHEN Xiaoming, NGAI Wai Fung Secretary of the Board of Directors: XU Jihong Joint company secretaries: XU Jihong, NGAI Wai Fung Stock short name: JIANGXI BANK Stock Code: 1916 Unified Social Credit Code: 913601007055009885 Number of financial license: B0792H236010001 Registered capital: RMB6,024,276,901 Registered and office address: Jiangxi Bank Tower, No. 699 Financial Street, Honggutan New District, Nanchang, Jiangxi Province, the PRC Principal place of business in Hong Kong: 40th Floor, Sunlight Tower, No. 248 Queen’s Road East, Wanchai, Hong Kong Contact number: +86-791-86791008/+86-791-86791009 Fax: +86-791-86771100 Website of the Bank: www.jx-bank.com (the contents of the website do not form a part of this report) Service hotline: +86-956055 Domestic auditor: KPMG Huazhen LLP International auditor: KPMG, Public Interest Entity Auditor registered in accordance with the Financial Reporting Council Ordinance Legal advisor in mainland China: Zhong Lun Law Firm Legal advisor in Hong Kong: Clifford Chance Stock exchange on which H Shares are listed: The Stock Exchange of Hong Kong Limited H Share Registrar: Computershare Hong Kong Investor Services Limited Domestic shares custodian: China Securities Depository and Clearing Corporation Limited Compliance advisor: SPDB International Capital Limited * The Bank 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. 4 Jiangxi Bank Co., Ltd. Annual Report 2019 CHAPTER II COMPANY PROFILE 2.2 COMPANY PROFILE Jiangxi Bank is the only legal person bank at provincial level in Jiangxi Province. Officially established in December 2015 and with its H shares listed on the Main Board of the Hong Kong Stock Exchange (stock code: 1916) in June 2018, Jiangxi Bank has become the first listed financial enterprise in Jiangxi Province and the first overseas listed enterprise since the implementation of the “Yingshanhong Action” in Jiangxi Province. As of the end of the Reporting Period, the Group has realized RMB2.957 billion in profit before tax and RMB2.109 billion in net profit, with the amount of its total assets, total deposits from customers and total loans and advances to customers reaching RMB456.119 billion, RMB284.549 billion and RMB210.017 billion, respectively. The Bank has over 5,000 in-service employees, has outlets covering all cities divided into districts in Jiangxi Province and established branches in Guangzhou and Suzhou. At the same time, the Bank initiated the establishment of the first financial leasing company in Jiangxi Province and 5 rural banks. Since its inception, Jiangxi Bank has made rapid progress in various fields and gained wide recognition from many sectors of the society in many respects under the leadership of Jiangxi provincial party committee and provincial government as well as the strong support from all walks of life. The Bank was rated AAA by China Lianhe Credit Rating Company in its long-term credit rating for corporates. The Bank ranked 258th in the Top 1,000 World Banks ranking released by The Banker, a British magazine, 9th on the list of “Domestic Banks with Fastest Growth Among Top 1,000 Banks in the World for 2019”, and 35th among the “Top 100 Banks in China’s Banking Industry of 2019” released by China Banking Association.
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