Chongqing Rural Commercial Bank Co., Ltd.* (A Joint Stock Limited Company Incorporated in the People’S Republic of China with Limited Liability) (Stock Code: 3618)
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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. * Chongqing Rural Commercial Bank Co., Ltd.* (a joint stock limited company incorporated in the People’s Republic of China with limited liability) (Stock Code: 3618) INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2020 The board of directors (the “Board”) of Chongqing Rural Commercial Bank Co., Ltd. 重慶農村商業 銀行股份有限公司* (the “Bank”) is pleased to announce the unaudited consolidated interim results of the Bank and its subsidiaries (the “Group”) for the six months ended 30 June 2020 (the “Interim Results”). This announcement contains the full text of the interim report of the Group for the six months ended 30 June 2020 and the contents were prepared in accordance with the relevant disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”) and International Financial Reporting Standards. The Interim Results have also been reviewed by the Board and the audit committee of the Board. This results announcement is published on the websites of the Bank (www.cqrcb.com) and the Hong Kong Stock Exchange (www.hkexnews.hk). The interim report of the Bank for the six months ended 30 June 2020 will be despatched to shareholders and will also be available at the abovementioned websites in due course. By order of the Board Chongqing Rural Commercial Bank Co., Ltd.* 重慶農村商業銀行股份有限公司* Liu Jianzhong Chairman and Executive Director Chongqing, the PRC, 26 August 2020 As at the date of this announcement, the executive directors of the Bank are Mr. Liu Jianzhong, Mr. Xie Wenhui and Mr. Zhang Peizong; the non-executive directors of the Bank are Mr. Zhang Peng, Mr. Luo Yuxing and Mr. Wen Honghai; and the independent non-executive directors of the Bank are Mr. Yuan Zengting, Mr. Cao Guohua, Mr. Song Qinghua, Mr. Zhang Qiaoyun and Mr. Lee Ming Hau. * The Bank holds a financial licence number B0335H250000001 approved by the regulatory authority of the banking industry of the PRC and was authorised by the Administration for Market Regulation of Chongqing to obtain a corporate legal person business licence with a unified social credit code 91500000676129728J. The Bank is not an authorised institution in accordance with the Hong Kong Banking Ordinance (Chapter 155 of the Laws of Hong Kong), not subject to the supervision of the Hong Kong Monetary Authority, and not authorised to carry on banking/deposit-taking business in Hong Kong. Important Notice 1. The Board, the Board of Supervisors and directors, supervisors and senior management of the Bank warrant that the truthfulness, accuracy and completeness of the contents of the interim report, and that there are no false presentations, misleading statements or material omissions herein, and legally liable jointly and severally. 2. The 2020 interim report and interim results announcement of the Bank have been considered and approved at the 38th meeting of the fourth session of the Board of Directors convened on 26 August 2020. The number of directors who should attend the meeting is 11, with 8 directors actually attended the meeting and 3 directors entrusted other directors to vote on their behalf. Some supervisors and senior management personnel of the Bank attended the meeting. 3. The Bank’s 2020 interim report prepared by the Bank in accordance with Chinese Accounting Standards has been audited by PricewaterhouseCoopers Zhong Tian LLP in according to the Chinese Standards on Review and the 2020 interim financial report prepared in accordance with International Financial Reporting Standards has been audited by PricewaterhouseCoopers in according to the International Standards on Review. 4. The Bank did not distribute profits and no capitalisation of the capital reserve to share capital is proposed during the 2020 interim period. 5. The chairman of the Bank Liu Jianzhong, president Xie Wenhui and vice president in charge of financial function Shu Jing warrant the authenticity, accuracy and completeness of the financial report in this report. 6. This report may contain forward-looking statements such as future plans of the Bank. Such statements are made by the Bank based on the current situation and forecast, are related to future events or the Bank’s future financial, business or other performance. Possible future plans do not constitute a substantive commitment by the Bank to its investors. Investors and people concerned should be fully aware of the risks and understand the differences between plans, forecast and commitment. 7. There is no misappropriation of the Bank’s funds by its controlling shareholders and other related parties for non-operating purposes and no instance of providing external guarantee that is in breach of the established decision-making procedure. Interim Report 2020 1 Content Chapter 1 Definitions 3 Chapter 2 Company Profile 5 Chapter 3 Financial Highlights 8 Chapter 4 Management Discussion and Analysis 11 I. Overview 11 II. Financial Review 12 III. Discussion and analysis of principal businesses 50 IV. Risk Management 74 V. Capital Management 90 VI. Consumer Rights Protection 94 VII. Outlook 96 Chapter 5 Changes in Share Capital and Particulars of Shareholders 98 Chapter 6 Information on Directors, Supervisors, Senior Management, 110 Employee and Institutes Chapter 7 Major Events 117 Chapter 8 Review Report 129 Chapter 9 Financial Statements and Notes 130 Chapter 10 Unaudited Supplementary Financial Information 236 Chapter 11 Organisation Chart 240 2 CHONGQING RURAL COMMERCIAL BANK Definitions Definitions of frequently-used terms “Bank” or “our Bank” Chongqing Rural Commercial Bank Co., Ltd. (重慶農村商業銀行 股份有限公司) “CBIRC Chongqing Office” China Banking and Insurance Regulatory Commission Chongqing Regulatory Bureau (中國銀行保險監督管理委員會重慶 監管局) “CBIRC” China Banking and Insurance Regulatory Commission “China Banking Regulatory the CBIRC and its agencies Authority” “CSRC” China Securities Regulatory Commission “CPC” the Communist Party of China (中國共產黨) “Board of Directors” or “Board” the board of directors of the Bank “Board of Supervisors” the board of supervisors of the Bank “Articles of Association” Articles of Association of Chongqing Rural Commercial Bank Co., Ltd.*, as amended from time to time “Group” Chongqing Rural Commercial Bank Co., Ltd.* (重慶農村商業銀行股份有限公司) and its subsidiaries “RMB or Renminbi” the lawful currency of the PRC “yuan” RMB yuan “HKD or HK dollars” Hong Kong dollars, the lawful currency of Hong Kong “Hong Kong” Hong Kong Special Administrative Region, the PRC “Hong Kong Stock Exchange” The Stock Exchange of Hong Kong Limited “Hong Kong Listing Rules or Listing The Rules Governing The Listing of Securities on The Stock Rules” Exchange of Hong Kong Limited, as amended from time to time “Shanghai Stock Exchange” Shanghai Stock Exchange Interim Report 2020 3 Definitions “rural commercial bank” a short-hand reference to “rural commercial bank” (農村商業銀 行) “Sannong” a short-hand reference to the Chinese pronunciation of the phrase “agriculture, rural areas and farmers” “village and township banks” bank institutions that are approved by China Banking Regulatory Authority to be incorporated in rural areas to provide services to local farmers or enterprises “New Financial Instruments “Accounting Standards for Business Enterprises No. 22 – Standards” Recognition and Measurement of Financial Instruments”, “Accounting Standards for Business Enterprises No. 23 – Transfer of Financial Assets”, “Accounting Standards for Business Enterprises No. 24 – Hedge Accounting” and “Accounting Standards for Business Enterprises No. 37 – Presentation of Financial Instruments” “PBOC” or “Central Bank” the People’s Bank of China “PRC” or “China” the People’s Republic of China “Reporting Period” for the six months period from 1 January 2020 to 30 June 2020 4 CHONGQING RURAL COMMERCIAL BANK Company Profile I. Company Basic Information Legal name and abbreviation in Chinese 重慶農村商業銀行股份有限公司 (abbreviated as “重慶農村商業銀行”) Legal name and abbreviation in English Chongqing Rural Commercial Bank Co., Ltd. (abbreviated as “Chongqing Rural Commercial Bank”) Legal Representative LIU Jianzhong Authorised Representatives LIU Jianzhong XIE Wenhui Contact details of Secretary Correspondence Address: No. 36 Jinshamen Road, to the Board Jiangbei District, Chongqing, the PRC Telephone (telephone to investors): (8623) 6111 1637 Fax: (8623) 6111 0844 Email address: [email protected] Company Secretary WONG Sau Ping (appointed as Company Secretary on 26 August 2020) CHU Wai Ha (resigned as Company Secretary on 26 August 2020) Registered address and postcode No. 36 Jinshamen Road, Jiangbei District, Chongqing, the PRC 400023 Principal place of business in Hong Kong 31/F, Tower Two, Times Square, 1 Matheson Street, Causeway Bay, Hong Kong Company’s website www.cqrcb.com Email address [email protected] Designated media for information China Securities Journal, Shanghai Securities disclosure News, Securities Times, Securities Daily Designated website of CSRC for Website of the Shanghai Stock Exchange publication of interim report (www.sse.com.cn) Website of the Hong Kong Stock Website of the Hong Kong Stock Exchange Exchange for publication of interim report (www.hkexnews.hk) Place