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Annual Report 2020 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 2020 Contents Chapter I Chairman’s Statement 2 Chapter II Company Profile 4 Chapter III Summary of Accounting Data and Financial Indicators 9 Chapter IV Management Discussion and Analysis 12 Chapter V Changes in Share Capital and Information on Shareholders 75 Chapter VI Directors, Supervisors, Senior Management Members, Employees and Institutions 88 Chapter VII Corporate Governance Report 111 Chapter VIII Report of the Board of Directors 156 Chapter IX Report of the Board of Supervisors 165 Chapter X Important Matters 172 Chapter XI Independent Auditor’s Report 175 Chapter XII Financial Statements 185 Chapter XIII Notes to the Financial Statements 194 Unaudited Supplementary Financial Information 347 Definitions 351 * 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 2020 was not only an extraordinary year, but also an extremely challenging year. Facing the unexpected novel coronavirus epidemic, Jiangxi Bank forged ahead through difficulties with new milestones achieved in its business development. At this moment, on behalf of Jiangxi Bank, I pay tribute to the department in charge, regulatory agencies, shareholder units, all walks of life, and extensive clients that always care about and support the development of Jiangxi Bank! Over the past year, under the guidance of Xi Jinping’s Thought on Socialism with Chinese Characteristics for a New Era, we thoroughly implemented a variety of deployments from the Provincial Committee and the Provincial Government, practically promoted the construction of the Party with the further enhancement of political awareness, mechanism and system of Party construction, and the further deepened comprehensive and strict Party discipline; we also adhered a great importance to the unity of the Party’s leadership and Mr. CHEN Xiaoming corporate governance with integration of the Party’s leadership Chairman into all aspects of corporate governance, thus improving corporate governance system that was scientific and efficient. Over the past year, we attached a great importance to the main businesses, demonstrating our commitment to ensuring “Stability and Guarantee on Six Fronts”, and increased special re-lending, small loans, agriculture- related loans, poverty alleviation loans for supporting resumption of work and production for enterprises. The Bank was granted the honorary title of “the Best Small and Medium Bank of the Year in Supporting the Resumption of Production” by the Financial Times. We actively organized donations and materials for fighting epidemic and targeted poverty alleviation, and achieved poverty alleviation in all 20 targeted poverty alleviation villages, including “Xiazou Village” and “Ninghong Village”, which highlighted our mission and responsibility as “Jiangxi Army in Finance”. 2 Jiangxi Bank Co., Ltd. Annual Report 2020 CHAPTER I CHAIRMAN’S STATEMENT Over the past year, we promoted transformation featuring science and innovation by “empowering the finance with new technologies”. The Bank worked out “Cloud Enterprise Chain” to empower supply chain finance with block chain technology, and launched “Jiangxi Bank Micro Shop”, “WeBank platform”, thus creating a social and financial ecosystem, the Bank was granted the honorary title of “Advanced Unit in Graded Protection of Internet Security in Jiangxi Banking in 2020”. In actively responding to the strategic deployment of green success of Jiangxi, we enhanced green credit release, resulting a vigorous improvement of green development of Jiangxi’s economy. Over the past year, we focused minds to strive forward by adopting multiple improved measures of non- performing asset disposal, and continuously enhanced the optimization of internal control compliance, thus laying a solid foundation to the Jiangxi Bank’s healthy development by winning the battle against financial risks and establishing and improving the long-term internal management mechanism. The year of 2021 marks the 100th anniversary of the founding of CPC, which is not only the beginning year of “14th Five-year Plan”, but also the first year in which we embark on a new journey to build China into a modern socialist country in all respects. We are embarking a new journey for a new height. Under the strategic landscape of “dual circulation”, Jiangxi Bank will initially adopt a new phase of development by highly integrating Party conduct construction and business promotion with corporate governance, promote high-quality development featuring the optimization of structure, mechanism and work practices, and enhance quality and efficiency of serving on real economy with our hearts, emotions and efforts. We integrate into new development pattern in Jiangxi Province for high perspective, thus to provide powerful and effective financial supports for the overall development of social and people’s livelihood. Jiangxi Bank Co., Ltd. Annual Report 2020 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, Dah Sing Financial Centre, 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 * 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 2020 CHAPTER II COMPANY PROFILE 2.2 COMPANY PROFILE Jiangxi Bank is the only legal person bank at provincial level in Jiangxi Province. The Bank was officially established in December 2015 and listed in Hong Kong (stock code: 1916.HK) 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 2020, the Group’s total assets amounted to RMB458.693 billion, the total deposits from customers was RMB315.771 billion and the net loans and advances to customers was RMB217.449 billion, and realized a total operating income of RMB10.285 billion with net profits of RMB1.905 billion during the Reporting Period. The Bank has over 5,000 in-service employees and 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 Committee and Jiangxi Provincial Government as well as the strong support from all walks of life. The highest credit rating of the Bank for domestic city commercial banks was AAA. The Bank’s tier-one capital ranked 264th in “Top 1,000 World Banks ranking in 2020” released by The Banker, a British magazine, and ranked 324th among “China Top 500 Service Companies”. Jiangxi Bank has successively received multiple awards such as “Enterprises Contributing to the Combat against the COVID-19”, “Best Small and Medium Bank to Support to Combat against the COVID-19 and Resumption of Production”, “2019 Outstanding Contribution Award for ‘Inclusive Finance Contribution’ in the new era”, “Best City Commercial Bank in Inclusive Finance”, “Advanced Unit in National Open and Democratic Management in Factory Affairs”, “Advanced Unit in Graded Protection of Internet Security in Jiangxi Banking in 2020”. Adhering to the business philosophy of “serving local economy, serving small and medium enterprises, and serving community residents”, Jiangxi Bank built a featured financial service system covering eight fields, i.e. “corporate finance, small and micro finance, community finance, government finance, industrial park finance, lease finance, consumer finance and network finance”, as well as over 100 products represented by five types
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