Xiamen International Bank Co., Ltd. 2019 Annual Report Any Conflict
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Xiamen International Bank Co., Ltd. 2019 Annual Report Any conflict between the Chinese version and the English version of the annual report, the Chinese version shall prevail. 2019 Annual Report of Xiamen International Bank Co., Ltd. Important Notice The Board of Directors, Board of Supervisors, directors, supervisors, and senior management members of Xiamen International Bank Co., Ltd. (hereinafter referred to as “the Bank”) hereby undertake that this Annual Report contains no false record, misleading statement or material omission, and they assume joint and several liability for the authenticity, accuracy and completeness of the information herein. Compiled in accordance with China Accounting Standards, all financial figures and indicators contained in this Annual Report, unless otherwise specified, are consolidated figures of domestic and overseas institutions presented in CNY. KPMG Hua Zhen LLP (special general partnership), official auditor of the Bank, conducted an audit on the 2019 Financial Statements of the Bank prepared in accordance with China Accounting Standards, and issued a standard unqualified audit report thereon. Mr. Weng Ruotong, the Bank’s chairman, Ms. Tsoi Lai Ha, the chief accountant and Mr. Zheng Bingzhang, head of the accounting office, hereby ensure the authenticity accuracy and completeness of the financial report contained herein. Notes on Major Risks: The Bank has not identified any major foreseeable risk. During its operation, the key risks faced by the Bank include credit risks, market risks, operation risks, liquidity risks, compliance risks, country risks, information technology risks, and reputation risks, etc. The Bank has taken measures to effectively manage and control all kinds of business risks. For details, please refer to Chapter II “Discussion and Analysis of Business Performance”. Cautionary Note Regarding Forward-looking Statements: This Report includes several forward-looking statements with respect to the financial position, operating performance and business development of the Bank, which can be identified by words such as “will”, “may”, “aim for”, “endeavor”, “planned to”, “goal” and other comparable words used herein. Such statements are based on current plans, estimates and forecasts and they do not constitute substantial commitment of the Bank. Please maintain adequate awareness of risk and understand the differences among plans, forecasts and commitments. 1 2019 Annual Report of Xiamen International Bank Co., Ltd. Table of Contents Important Notice ............................................................................................................... 1 Definitions ........................................................................................................................ 3 Chairman’s Statement ...................................................................................................... 4 President’s Statement ....................................................................................................... 7 Chapter I Company Profile and Major Financial Indicators .......................................... 10 Chapter III Changes to Capital Stock and Shareholders ................................................ 62 Chapter IV Overview of Directors, Supervisors, Senior Officers and Employees ........ 67 Chapter V Corporate Governance .................................................................................. 78 Chapter VI Major Events .............................................................................................. 102 Chapter VII Financial Statements ................................................................................. 105 Chapter IX List of Documents for Reference ............................................................... 105 Attachment Consolidated Financial Statements and Auditor’s Report of Xiamen International Bank Co., Ltd. 2019…………………………………………………………………………….106 2 2019 Annual Report of Xiamen International Bank Co., Ltd. Definitions In this Annual Report, unless the context otherwise requires, the following terms and expressions shall bear the following meanings: Terms and Expressions Definitions The Bank, the Company and Xiamen International Bank Co., Ltd. Xiamen International Bank, XIB The Articles of Association, the The Articles of Association of Xiamen Bank’s Articles of Association and International Bank Co., Ltd. the Company’s Articles of Association CBRC China Banking Regulatory Commission CBIRC China Banking and Insurance Regulatory Commission CBIRC Xiamen Xiamen Office of China Banking and Insurance Regulatory Commission Yuan CNY Institutions in Mainland China All offices that XIB has established in Mainland China, including the head office of Xiamen International Bank Co., Ltd. Overseas Institutions Luso International Banking Ltd. (LIB), Chiyu Banking Corporation Limited (CYB), Xia men International Investment Co., Ltd. and other subsidiaries included in the Bank’s consolidated financial statements. Luso International Bank, LIB Luso International Banking Ltd. Chiyu Bank, CYB Chiyu Banking Corporation Ltd. The Fourth Five-Year Plan The Fourth Five-Year Plan (2016–2020) of Xiamen International Bank Co., Ltd. The reporting period January 1, 2019 – December 31, 2019 3 Chairman’s Statement In 2019, facing the complicated and tough economic and financial situations both at home and abroad, XIB continued to stay on a robust and positive development trend with the guidance and aid of governments and regulatory authorities at all levels, and under the strong leadership of the Bank’s CPC Committee and the Board of Directors. As of the end of 2019, the Bank’s total assets registered CNY 915.5 billion, up by 13.57% from the end of 2018; annual after-tax profit amounted to CNY 6.315 billion, up by 8.43% from the end of 2018; the balance of customer deposits reached CNY 6.347 billion, up by 18.16% from the end of 2018; non-performing loan ratio at the end of 2019 was 0.71%, indicating the asset quality was further optimized compared with 2018 and representing a non-performing loan ratio below 1% for 14 consecutive years. In the “Top 1,000 Global Banks of 2019” ranking list published by the Banker, a British magazine, the Bank continued to strive for top places, ranking the 158th in terms of total assets and the 193rd in terms of tier I capital, retaining its position among top 200 global banks. Over the past year, under the guidance of the Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the Bank was devoted to including the CPC development requirements in the bank’s Articles of Association to achieve effective synergy between the CPC organization and bank operations; with the three mission requirements of “serving the real economy, preventing and controlling financial risks and furthering financial reform” proposed by the central government for financial work thoroughly implemented across the Bank, the Bank was determined to implement the annual work policy of “One core and two drives” 1 and the overall requirements of “Quality Management Year”, increase the transformation and transition efforts, and boost the sustained and steady development of the Bank. The Bank continued to implement the policies of the state and regulatory authorities, to prevent and control financial risks and reaffirm total quality management (TQM); devoted to returning to the basics and exploring localization, it further increased services to the local real economy and small, medium and micro-sized enterprises; it fulfilled its social 1 With profit as the core, quality control and transformation by reform as two drives. 4 2019 Annual Report of Xiamen International Bank Co., Ltd. responsibilities and increased the efforts to drive inclusive finance on a continuous basis; it strengthened technological empowerment and steadily advance digital management; dedicated to international characteristics, the Bank expanded domestic and overseas integration; with the focus on creating a brand image of “sound development, strong sense of responsibility and good service”, the Bank gained great improvement in its image. Meanwhile, the Bank actively responded to China’s policies for expanding financial reform and opening-up, dedicated to the strategic orientation of “subdivision to fill gaps, differential exploration, financing interconnection and international pluralism”, actively involved in the “Belt and Road Initiative”, “the Development Plan for Guangdong-Hong Kong-Macao Greater Bay Area”, “Yangtze River Delta Pilot Area” and “Pilot Area for Coordinated Development of Beijing, Tianjin and Hebei” and other national development strategies and continuously improved deep integration of institutions in mainland China, Hong Kong and Macao. In 2019, the domestic institution of the Bank became qualified as a primary dealer in open market business with its financing capacity improved; Luso International Bank, the Bank’s affiliate in Macao, was awarded the Inter-bank borrowing market license in foreign currencies for domestic branches and qualified to engage in general derivative transactions and opened the Hangzhou Branch of Luso International Bank for business, further improving financial interactions between institutions abroad and in mainland China; Chiyu International Capital Co., Ltd., a subsidiary of Chiyu Bank, the Bank’s affiliate in Hong Kong, obtained Type 1 and Type 4 licenses of Securities and Futures Commission (SFC). It successfully drove the procedure of approval and registration with the competent