Important Notice I. Board of Directors, Board of Supervisors as well as directors, supervisors and senior management executives of the Company warrant that there are no false representations or misleading statements contained in this report and there is no great omission, and severally and jointly take responsibility for authenticity, accuracy and completeness of the information contained in this report. II. This report was been reviewed and approved in the tenth meeting of the Third Board of Directors on March 26, 2015. III. Except as otherwise noted, financial data and indexes set forth in this annual report are consolidated financial data of Bank of Jiangsu, Co., Ltd. and its holding subsidiary, Jiangsu Danyang Baode Rural Bank Co., Ltd. IV. Annual financial report of the Company was audited by BDO China Shu Lun Pan Certified Accountants LLP, and the auditor issued an unqualified opinion. XIA Ping, Chairman of Board of Directors, ZHU Qilong, leading accountant, and LUO Feng, director of accounting department, warrant the authenticity, accuracy and integrality of financial report in this annual report. Signatures of Directors: XIA Ping ZHU Dashu ZHU Qilong JIANG Kai WANG Weihong JIANG Jian TANG Jingsong SHEN Bin DU Wenyi ZHANG Qu ZHOU Suming GU Yingbin LIU Yuhui YAN Yan Message from the Chairman 2014 was a year with complex and changing international environment and "new normal" Chinese economy. Under wise leading of Jiangsu Provincial Party Committee and Provincial Government, supervision of supervision department, support of all shareholders and all sectors of the society, the Bank of Jiangsu made great business performance by promoting strategy transformation, reform and innovation. By the end of the report period, the total assets had reached RMB1,038.3 billion, an increase of 36%; total deposits had reached RMB681.3 billion, an increase of 14.2%; and the total loan had reached RMB488.5 billion, an increase of 18.7%. In the whole year, the Bank of Jiangsu realized RMB8,699 million of total net profit after tax, a year-on-year increase of 6.1%, and had major supervision indexes be maintained at a good level. Among top 1,000 banks selected by The Banker, a UK magazine, in the world, the Company ranked the 153rd in 2014, increased by 26 over the previous year; besides, the Company had business scale ranking the 18th in domestic banks in China and the 3rd in city commercial banks. Moreover, the Bank was successively granted the titles of "The City Commercial Bank with the Highest Brand Value in China in 2014", "The City Commercial Bank with the Best Wealth Management in 2014", "The Most Influential Regional Bank in 2014", etc. In 2014, the Board of Directors of the Bank kept focusing on market changes and insisted in adhering to the values of "market view, benchmarking view, benefit view, period view and team view" and observing the transformation policies of "characteristic development, inherent growth and being innovation-driven". With the "nail spirit" and by adjusting structure, building characteristic image and controlling risk, members of the Board of Directors worked scrupulously to fulfill duties and made timely, prudent and scentific decisions on important issues of the Bank, ensuring sound development of all businesses. We seized the market opportunity to issue the Tier II capital debenture, laying solid capital foundation for the bank development. Under approval of China Banking Reglatory Commission, the Bank prepared to establish financial leasing company, which represented the start of comprehensive bank operation. Keeping pace with Internet finane development, non-store banking and Internet investmetn and financial businesses were launched and showed rapid development. The past year witnessed severe challenges encountered by the banking industry in rish management. The Board of Directors attached great importance in risk prevention and control, approved many risk mangement policies and strengthened supervision and inspection in risk management. The Bank developed and implemented multiple risk management system and made great efforts in realizing full coverage of risk management. Continuous efforts were made in deepening risk management system reform and improving risk management system. Through comprehensive planning and frame design, soundness and systematicness of internal control system are ensured. The Bank positively fulfilledd the social responsibilities and was dedicated to promoting harmonious and sustainable development of economy, society and environment. Loan granted to small and micro businesses continued to rank the first among the same industry in Jiangsu and "Jiangsu loan for science and technology" supporting scientific and technological busiensses occupied more than 90% market share. Moreover, the financing project for energy conservation and emmission reudction implemented with IFC and energy efficiency loan sharing project of the World Bank in Jiangsu both won the honor of "Project with the highest social and economic performances". The Board of Directors earnestly implemented the national policies and supervison requirements, vigorously promoted the corporation governance and building, and further amended and improved the Artices of Association and other institutional systems. Furthermore, the Bank further strengthened strategic management and control, made the new five-year development plan, and determined four strategies of "specialization, intellectualization, integration and internationalization". New Board of Directors and Board of Supervisors are elected in accordance with laws and regulations. In 2015, the international and domestic environments are still complex and changing. The world economy is slowly recovering, while the domestic economy is undergoing strategic adjustment in development mode and structure. Adhering to the objective of being a first-class commercial bank, the Bank of Jiangsu will adapt to all changes and the deepended national reform and opening-up, enhance the development confidence, keep the force in strategic development, highlight characteristics, strengthen risk control and promote strategic transformation, thereby to requite trust and support of the shareholders and all sectors of the society with good performance. Chairman of the Board of Directors of Bank of Jiangsu Table of Contents 08 / Company Profile 10 / Accounting Data and Business Data Summary 14 / Management Discussion and Analysis 35 / Shareholders and Share Capital 38 / Directors, Supervisors, Senior Management Executives and Employees 48 / Corporate Governance Structure and Mechanism 57 / General Meeting of Shareholders 59 / Report of the Board of Directors 66 / Report of the Board of Supervisors 72 / Significant Issues 76 / Financial Report and Documents for Reference Company Profile 008 融你我 融无限 Annual Report 2014 009 Registered name in Chinese: 江苏银行股份有限公司 Registered name in English: BANK OF JIANGSU CO., LTD.(i.e., "Bank of Jiangsu", hereinafter referred to as "the Company" or "our Company") Legal representative:XIA Ping Secretary of the Board of Directors: ZHU Qilong Telephone number of the Board of Directors Office: 025-58587122 Fax number of the Board of Directors Office: 025-58588273 Registered address and office address: No. 55, Hongwu North Road, Nanjing, Jiangsu, China. Post Code: 210005 Company Profile Other related information First registration date: January 22, 2007 First registration address: No. 55, Hongwu North Road, Nanjing, Jiangsu, China. First registration query index: Website of General Administration for Industry and Commerce of People'sRepublic of China (www.saic.gov.cn) Corporate Business License Serial Number: 320000000022189 Tax Registration No.: S.G.S.Z.Z. No. 320000796544598 S.D.S.D.Z. No. 320002796544598 Internet website (Information disclosure website): http://www.jsbchina.cn Email: [email protected] Preparation place of the Annual Report: The Company's Office of Board of Directors Auditing Firm: BDO China Shu Lun Pan Certified Accountants LLP Office address: 4/F, New Huangpu Financial Plaza, No. 61, Nanjing East Road, Huangpu District, Shanghai Other information: The report is prepared in both Chinese and English; in case of any ambiguity between the Chinese and English versions, the former shall prevail. 008 融你我 融无限 Annual Report 2014 009 Accounting Data and Business Data Summary 010 融你我 融无限 Annual Report 2014 011 I. Major accounting data and financial indexes in reporting period Unit: RMB1,000 Item 2014 2013 2012 Assets and liabilities Total assets 1,038,309,050 763,652,173 650,328,811 Loan and advance issued 488,511,845 411,690,610 352,962,693 Including: Corporate loan and advance 356,950,074 318,957,667 288,115,068 Accounting Data and Business Summary Personal loan and advance 73,896,378 60,038,479 40,287,869 Discount 57,665,393 32,694,464 24,559,756 Loan loss reserves 13,148,296 10,617,343 9,402,705 Total lending funds 8,595,168 6,505,595 13,897,973 Total liabilities 982,243,964 715,757,045 616,059,940 Deposit taking 681,297,329 596,553,924 532,719,530 Including: Corporate deposit 403,231,280 365,990,961 316,668,879 Personal deposit 134,542,734 123,808,106 101,187,397 Total inter-bank lending 2,243,325 6,695,748 16,597,927 Shareholders' equity 55,935,208 47,763,497 34,151,101 (excluding minority shareholders' equity) Profits and losses Business income 25,325,842 22,325,709 19,842,450 Business profit 11,375,594 10,879,846 9,542,334 Net interest income 22,338,619 19,817,785 17,644,832 Net income in fees and commissions 2,802,284 2,382,976 1,708,024 Investment income 34,012 22,105