SHENGJING BANK CO., LTD.* 盛京銀行股份有限公司* (A Joint Stock Company Incorporated in the People’S Republic of China with Limited Liability) (Stock Code: 02066)
Total Page:16
File Type:pdf, Size:1020Kb
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. SHENGJING BANK CO., LTD.* 盛京銀行股份有限公司* (A joint stock company incorporated in the People’s Republic of China with limited liability) (Stock Code: 02066) ANNOUNCEMENT OF ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2020 The board of directors (the “Board”) of Shengjing Bank Co., Ltd. (the “Bank”) is pleased to announce the audited annual results (the “Annual Results”) of the Bank and its subsidiaries for the year ended 31 December 2020 prepared in accordance with the International Financial Reporting Standards (the “IFRSs”) promulgated by the International Accounting Standards Board and the proposed dividend arrangement for the year of 2020. The Board and the audit committee have reviewed and confirmed the Annual Results. The Annual Results are published on the website of The Stock Exchange of Hong Kong Limited (www.hkexnews.hk) and the website of the Bank (www.shengjingbank.com.cn). The 2020 annual report of the Bank will be despatched to the holders of H shares of the Bank and be available at the abovementioned websites in due course. By order of the Board Shengjing Bank Co., Ltd. ZHOU Zhi Joint Company Secretary Shenyang, Liaoning Province, China 30 March 2021 As at the date of this announcement, the executive directors of the Bank are Mr. QIU Huofa, Mr. SHEN Guoyong, Ms. ZHANG Jun, Mr. SHI Yang and Ms. LI Ying; the non-executive directors of the Bank are Mr. SU Qingxiang, Mr. LIANG Zhifang, Mr. ZHU Jialin and Mr. JI Kun; and the independent non-executive directors of the Bank are Mr. NI Guoju, Mr. KEUNG Chak, Mr. TAI Kwok Leung, Alexander, Mr. XING Tiancai and Mr. LI Jinyi. * Shengjing Bank Co., Ltd. is not an authorised 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 authorised to carry on banking and/or deposit-taking business in Hong Kong. Contents 1. Company Information 2 8. Directors, Supervisors, Senior 70 2. Financial Highlights 4 Management and Employees 3. Chairman’s Statement 7 9. Corporate Governance Report 89 4. Honours and Awards 9 10. Report of the Board of Directors 116 5. Management Discussion and 10 11. Report of the Board of Supervisors 122 Analysis 12. Social Responsibility Report 125 5.1 Analysis of Overall 10 13. Internal Control 129 Operations 14. Independent Auditor’s Report 130 5.2 Financial Review 12 15. Financial Statements 140 5.3 Business Overview 44 16. Notes to the Financial Statements 148 5.4 Risk Management 53 17. Unaudited Supplementary 283 5.5 Future Outlook and 59 Financial Information Development Strategy 18. Organisational Chart 287 6. Significant Events 60 19. The Statistical Statements of All 288 7. Change in Share Capital and 62 Operating Institution of Shengjing Shareholders Bank 20. Definition 307 * Shengjing Bank Co., Ltd. is not an authorised 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 authorised to carry on banking and/or deposit-taking business in Hong Kong. Chapter 1 Company Information COMPANY INFORMATION Legal Name in Chinese 盛京銀行股份有限公司 Abbreviation in Chinese 盛京銀行 Legal Name in English Shengjing Bank Co., Ltd. Abbreviation in English SHENGJING BANK Legal Representative QIU Huofa Authorised Representatives QIU Huofa and ZHOU Zhi Secretary to the Board of Directors ZHOU Zhi Joint Company Secretaries ZHOU Zhi and KWONG Yin Ping, Yvonne Registered and Business Address No. 109 Beizhan Road, Shenhe District, Shenyang, Liaoning Province, the PRC Contact Number 86–24–22535633 Website www.shengjingbank.com.cn Principal Place of Business in Hong Kong Unit 4105, 41/F, Office Tower, Convention Plaza, 1 Harbour Road, Wanchai, Hong Kong Website of the Hong Kong Stock Exchange http://www.hkexnews.hk/ on which the H Share Annual Report is Published Place of Maintenance of the Annual Report Office of the Board of Directors of Shengjing Bank Short Name Shengjing Bank Stock Code 02066 2 Shengjing Bank Co., Ltd. Chapter 1 Company Information H Share Registrar and its Business Address Computershare Hong Kong Investor Services Limited Shops 1712–1716, 17th Floor, Hopewell Centre 183 Queen’s Road East, Wanchai, Hong Kong Legal Advisor as to PRC Laws and its Tian Yuan Law Firm Business Address 10/F, China Pacific Insurance Plaza 28 Fengsheng Hutong Xicheng District Beijing, the PRC Legal Advisor as to Hong Kong Law and its Freshfields Bruckhaus Deringer Business Address 55th Floor, One Island East, Taikoo Place Quarry Bay, Hong Kong Auditor and its Business Address KPMG 8th Floor, Prince’s Building 10 Chater Road Hong Kong 3 Chapter 2 Financial Highlights FINANCIAL HIGHLIGHTS Year-on- year change (Expressed in thousands of between 2020 Renminbi, unless otherwise stated) 2020 2019 and 2019 2018 2017 2016 Rate of change (%) Operating Results Interest income 42,533,959 44,944,020 (5.4) 42,805,495 42,277,528 36,055,533 Interest expense (27,975,598) (28,594,168) (2.2) (30,387,931) (30,201,911) (22,837,867) Net interest income 14,558,361 16,349,852 (11.0) 12,417,564 12,075,617 13,217,666 Net non-interest income 1,708,452 4,657,415 (63.3) 3,467,902 1,174,066 2,896,210 Operating income 16,266,813 21,007,267 (22.6) 15,885,466 13,249,683 16,113,876 Operating expenses (5,050,086) (4,631,365) 9.0 (3,945,215) (3,617,442) (3,730,598) Impairment losses on assets (10,625,363) (10,233,200) 3.8 (6,401,249) (1,403,284) (3,675,411) Operating profit 591,364 6,142,702 (90.4) 5,539,002 8,228,957 8,707,867 Share of profits of associates – – – – – – Profit before taxation 591,364 6,142,702 (90.4) 5,539,002 8,228,957 8,707,867 Income tax expense 640,577 (704,641) N/A (412,854) (654,818) (1,829,575) Net profit 1,231,941 5,438,061 (77.3) 5,126,148 7,574,139 6,878,292 Net profit attributable to equity shareholders of the Bank 1,203,777 5,443,224 (77.9) 5,128,717 7,580,055 6,864,520 4 Shengjing Bank Co., Ltd. Chapter 2 Financial Highlights Year-on- year change (Expressed in thousands of between 2020 Renminbi, unless otherwise stated) 2020 2019 and 2019 2018 2017 2016 Change Calculated on a per share basis (RMB) Basic and diluted earnings per share 0.14 0.90 (0.76) 0.88 1.31 1.18 Rate of change (%) Major indicators of assets/ liabilities Total assets 1,037,958,375 1,021,480,796 1.6 985,432,940 1,030,617,431 905,482,647 Of which: total loans and advances to customer(1) 547,062,557 457,202,375 19.7 376,597,360 279,513,418 235,416,650 Total liabilities 957,911,826 942,358,811 1.7 928,403,456 978,361,775 859,108,021 Of which: total deposits from customers(1) 681,404,747 641,428,191 6.2 514,166,997 473,580,808 415,246,159 Share capital 8,796,680 8,796,680 0.0 5,796,680 5,796,680 5,796,680 Equity attributable to equity shareholders of the Bank 79,451,932 78,555,532 1.1 56,457,868 51,681,375 45,794,429 Total equity 80,046,549 79,121,985 1.2 57,029,484 52,255,656 46,374,626 Change Profitability Indicators (%) Return on average total assets(2) 0.12 0.54 (0.42) 0.51 0.78 0.86 Return on average equity(3) 1.55 7.99 (6.44) 9.38 15.36 15.62 Net interest spread(4) 1.55 1.59 (0.04) 1.33 1.36 1.65 Net interest margin(5) 1.62 1.76 (0.14) 1.43 1.50 1.75 Net fee and commission income to operating income 4.23 5.50 (1.27) 3.95 12.17 11.88 Cost-to-income ratio(6) 29.76 21.31 8.45 24.13 26.22 19.31 Change Asset quality indicators (%) Non-performing loan ratio(7) 3.26 1.75 1.51 1.71 1.49 1.74 Allowance to non-performing loans(8) 114.05 160.90 (46.85) 160.81 186.02 159.17 Allowance to total loans(9) 3.72 2.82 0.90 2.75 2.77 2.78 5 Chapter 2 Financial Highlights FINANCIAL HIGHLIGHTS Year-on- year change (Expressed in thousands of between 2020 Renminbi, unless otherwise stated) 2020 2019 and 2019 2018 2017 2016 Change Capital adequacy indicators (%) Core Tier-one capital adequacy ratio(10) 11.07 11.48 (0.41) 8.52 9.04 9.10 Tier-one capital adequacy ratio(10) 11.07 11.48 (0.41) 8.52 9.04 9.10 Capital adequacy ratio(10) 12.23 14.54 (2.31) 11.86 12.85 11.99 Total equity to total assets ratio 7.71 7.75 (0.04) 5.79 5.07 5.12 Change Other indicators (%) Loan-to-deposit ratio(11) 80.28 71.28 9.00 73.24 59.02 56.69 Notes: (1) Total balance of loans and advances to customers excludes interest receivables, total deposits from customers excludes interest payables.