2019 Interim Report Contents
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* Bank of Jinzhou Co., Ltd. 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 and/or deposit-taking business in Hong Kong. II Bank of Jinzhou Co., Ltd. 2019 Interim Report Contents 2 Definitions 4 Chapter 1 Company Profile 7 Chapter 2 Financial Highlights 10 Chapter 3 Management Discussion and Analysis 70 Chapter 4 Changes in Ordinary Shares and Particulars of Shareholders 79 Chapter 5 Particulars of Offshore Preference Shares 82 Chapter 6 Directors, Supervisors, Senior Management, Employees and Organisations 88 Chapter 7 Important Events 92 Chapter 8 Independent Auditor’s Report on Review 93 Chapter 9 Unaudited Interim Financial Report 100 Chapter 10 Notes to the Unaudited Interim Financial Report 202 Chapter 11 Unaudited Supplementary Financial Information Bank of Jinzhou Co., Ltd. 2019 Interim Report 1 Definitions In this interim report, unless the context otherwise requires, the following terms shall have the meanings set out below: “Articles of Association” the articles of association of the Bank, as amended from time to time “Bank”, “Bank of Jinzhou” or “Group” Bank of Jinzhou Co., Ltd. (錦州銀行股份有限公司), a joint stock company incorporated in the PRC on 22 January 1997 with limited liability in accordance with PRC laws and, unless the context requires otherwise, its subsidiaries, branches, sub-branches and special institutions “Board” or “Board of Directors” the board of Directors “Board of Supervisors” the board of Supervisors “CBIRC” China Banking and Insurance Regulatory Commission, which was formed after duty restructuring of China Banking Regulatory Commission (the “CBRC”) and China Insurance Regulatory Commission “Former CBRC Liaoning Bureau” the former China Banking Regulatory Commission Liaoning Bureau (中國銀行業監督管理委員會遼寧監管 局), now renamed as China Banking and Insurance Regulatory Commission Liaoning Bureau (中國銀行保 險監督管理委員會遼寧監管局) “CSRC” China Securities Regulatory Commission “Director(s)” the director(s) of the Bank “Domestic Share(s)” the ordinary share(s) in the share capital of the Bank, with a nominal value of RMB1.00 each, which are subscribed for and fully paid up in Renminbi “H Share(s)” the ordinary share(s) in the share capital of the Bank, with a nominal value of RMB1.00 each, which are subscribed for and traded in HK dollars and listed on the Hong Kong Stock Exchange “HK$” or “HK dollars” the lawful currency of Hong Kong “Hong Kong” the Hong Kong Special Administrative Region of the PRC “Hong Kong Stock Exchange” The Stock Exchange of Hong Kong Limited “Listing Rules” the Rules Governing the Listing of Securities on the Hong Kong Stock Exchange, as amended, supplemented or otherwise modified from time to time “Offshore Preference Share(s)” the offshore preference share(s) in the preference share capital of the Bank, with a nominal value of RMB100 each, which are listed on the Hong Kong Stock Exchange and traded in US dollars (stock code: 4615) “PBOC” the People’s Bank of China “PRC” or “China” the People’s Republic of China, but for the purposes of this interim report only, excluding the Hong Kong Special Administrative Region of the PRC, the Macau Special Administrative Region of the PRC and Taiwan 2 Bank of Jinzhou Co., Ltd. 2019 Interim Report Definitions “Reporting Period” the six-month period ended 30 June 2019 “RMB” or “Renminbi” Renminbi, the lawful currency of the PRC “SFO” the Securities and Futures Ordinance, Chapter 571 of the Laws of Hong Kong, as amended, supplemented or otherwise modified from time to time “Shareholder(s)” the holder(s) of the share(s) of the Bank “Share(s)” or “Ordinary Share(s)” the Domestic Share(s) and the H Share(s), excluding the Offshore Preference Share(s) “Supervisor(s)” the supervisor(s) of the Bank “US$” or “US dollars” the lawful currency of the United States of America Bank of Jinzhou Co., Ltd. 2019 Interim Report 3 Chapter 1 Company Profile I. Basic Information about the Company Legal Chinese Name and Abbreviation : 錦州銀行股份有限公司 (abbreviated as “錦州銀行”) Legal English Name and Abbreviation : BANK OF JINZHOU CO., LTD. (abbreviated as “BANK OF JINZHOU”) Legal Representative : Zhang Wei Authorised Representatives : Zhang Wei, Wang Jing Secretary to the Board : Sun Jing Joint Company Secretaries : Sun Jing, Leung Wing Han Sharon Registered and Office Address : No. 68 Keji Road, Jinzhou City, Liaoning Province, the PRC Telephone : +86-416-3220002 Fax : +86-416-3220003 Postal Code : 121013 Company Website : www.jinzhoubank.com Email Address : [email protected] Customer Service Hotline : +86-400-66-96178 Principal Place of Business in Hong Kong : 40/F, Sunlight Tower, 248 Queen’s Road East, Wanchai, Hong Kong Accountant : Crowe (HK) CPA Limited PRC Legal Advisor : Beijing Zhong Lun Law Firm Hong Kong Legal Advisor : Luk & Partners in Association with Morgan, Lewis & Bockius Custodian of Domestic Shares : China Securities Depository and Clearing Corporation Limited H Share Registrar : Computershare Hong Kong Investor Services Limited 4 Bank of Jinzhou Co., Ltd. 2019 Interim Report Chapter 1 Company Profile Listing Place of Stock, Stock Name and : H Shares: Hong Kong Stock Exchange; BANKOFJINZHOU; 0416 Stock Code Offshore Preference Shares: Hong Kong Stock Exchange; BOJZ 17USDPREF; 4615 Uniform Social Credit Code of Corporation : 912107002426682145 Finance License No. of Institution : B0127H221070001 Website of the Hong Kong Stock Exchange : www.hkexnews.hk where this interim report is published Place where the interim report is maintained : Office of the Board II. Company Profile Bank of Jinzhou was incorporated, with approval of the People’s Bank of China, on 22 January 1997, headquartered in Jinzhou City, Liaoning Province, the PRC. There are 15 branches established in Beijing, Tianjin, Shenyang, Dalian, Harbin, Dandong, Fushun, Anshan, Chaoyang, Fuxin, Liaoyang, Huludao, Benxi, Yingkou and Jinzhou in China and 7 village and township banks were promoted and established, namely Jinzhou Taihe Jinyin Village and Township Bank Co., Ltd. (錦州太和錦銀村鎮銀行股份有限公司), Liaoning Yixian Jinyin Village and Township Bank Co., Ltd. (遼寧義縣錦銀村鎮銀行股份有限公司), Liaoning Beizhen Jinyin Village and Township Bank Co., Ltd. (遼寧北鎮錦銀村鎮銀行股份有限公司), Liaoning Heishan Jinyin Village and Township Bank Co., Ltd. (遼 寧黑山錦銀村鎮銀行股份有限公司), Liaoning Kazuo Jinyin Village and Township Bank Co., Ltd. (遼寧喀左錦銀村鎮銀行股份有限公 司), Liaoning Linghai Jinyin Village and Township Bank Co., Ltd. (遼寧凌海錦銀村鎮銀行股份有限公司) and Liaoning Huanren Jinyin Village and Township Bank (遼寧桓仁錦銀村鎮銀行股份有限公司); meanwhile, Bank of Jinzhou promoted and established Bank of Jinzhou Financial Leasing Co., Ltd. (錦銀金融租賃有限責任公司). As at the end of the Reporting Period, the Bank had, in aggregate, 244 organs. As at the end of the Reporting Period, the Bank had total assets of RMB825.458 billion, total loans and advances released of RMB426.938 billion and total deposits of RMB447.867 billion. The Bank was listed on the Main Board of the Hong Kong Stock Exchange (stock code: 0416) on 7 December 2015. On 27 October 2017, the Bank successfully issued US$1.496 billion of Offshore Preference Shares which were listed on the Hong Kong Stock Exchange with stock code 4615. Bank of Jinzhou Co., Ltd. 2019 Interim Report 5 Chapter 1 Company Profile III. Awards in the First Half of 2019 In January 2019, the Bank was granted “2018 Banking Information and Technology Risk Management Research Project Achievement Award” (2018年度銀行業信息科技風險管理課題成果獎) in 2018 Banking Information and Technology Risk Management Research Project carried out by CBIRC. In March 2019, the Bank was granted the honorary title of “Caring Enterprise of National Charity Association in 2018”(全國慈善 會愛心企業) in the “2018 Advanced Deeds Publicity Campaign of National Charity Association’s Grassroot Charity worker, Caring Enterprise, and Caring Entrepreneur” organised by China Charity Federation, and was the only one enterprise ever granted the award in Jinzhou. In April 2019, the Bank was granted the title of “2018 Excellent City Commercial Bank of the National Banking Industry in terms of Financial Information Registration Work”( 2018年全國銀行業理財信息登記工作優秀城商行) in the evaluation and selection of “2018 Excellent Organisations of the National Banking Industry in terms of Financial Information Registration Work” organised by Banking Financial Registration and Custody Center Co., Ltd. In May 2019, the Youth League Committee of the Bank was granted the title of “May Fourth Red Flag Youth League Committee” (五四紅旗團委) among 2018 Liaoning Province financial systems. In May 2019, the Bank was granted “Top Ten Private Enterprise Financial Service Innovation Award”(十佳民營企業金融服務創新 獎) by virtue of mobile loan on the “2019 China Financial Innovation Forum & 2019 China Financial Innovation Award Ceremony” (2019中國金融創新論壇暨2019中國金融創新獎頒獎典禮) co-sponsored by the Banker magazine, the Institute of Finance and Banking of the Chinese Academy of Social Sciences, and Central University of Finance and Economics. In May 2019, the Bank was awarded the Best Performer by the Liaoning Banking Association in “2017-2018 Promotion Activities of Financial Knowledge in Liaoning’s Banking Industry”( 2017-2018年遼寧省銀行業普及金融知識萬里行活動最佳成效獎). 6 Bank of Jinzhou Co., Ltd. 2019 Interim Report Chapter 2 Financial Highlights I. Financial Data Interim period of (Expressed in thousands of For the six-month period ended 30 June 2019 vs Interim For the year ended Renminbi, unless otherwise stated) 2019 2018 period of 2018