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. ANNOUNCEMENT OF ANNUAL RESULTS FOR THE YEAR ENDED 31 December 2019 The board of directors (the “Board”) of Bank of Guizhou Co., Ltd. (the “Bank”) is pleased to announce the audited annual results (the “Annual Results”) of the Bank for the year ended 31 December 2019 (the “Reporting Period”). The content of annual results announcement has been prepared in accordance with the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited (the “Hong Kong Listing Rules”) and the International Financial Reporting Standards (“IFRSs”) promulgated by the International Accounting Standards Board. The Board and the audit committee of the Board have reviewed and confirmed the Annual Results. Unless otherwise stated, financial data of the Bank are presented in Renminbi. 1. BASIC INFORMATION Legal Chinese Name: Registered Address: 貴州銀行股份有限公司 No. 41 Middle Ruijin Road, Yunyan District Guiyang, Guizhou Province PRC English Name: BANK OF GUIZHOU CO., LTD. Head Office in the PRC: No. 149 South Zhonghua Road Legal Representative: Nanming District Mr. Li Zhiming Guiyang, Guizhou Province PRC Authorised Representatives for the Hong Kong Stock Exchange: Principal Place of Business in Hong Kong: Mr. Li Zhiming, Mr. Zhou Guichang 40th Floor, Sunlight Tower No. 248 Queen’s Road East Board Secretary: Wanchai Mr. Zhou Guichang Hong Kong Joint Company Secretaries: Contact Address: Mr. Zhou Guichang, Mr. Lei Kin Keong No. 149 South Zhonghua Road Nanming District Guiyang, Guizhou Province PRC – 1 – Telephone: 0851-86207888 Fax: 0851-86207999 Email: [email protected] Website for Publishing this Report: www.bgzchina.com www.hkexnews.hk Location for Storage of this Report: The Board Office of the Bank (26th Floor, Zhongdu Building, No. 149 South Zhonghua Road, Nanming District, Guiyang, Guizhou Province, the PRC.) Place of Listing, Stock Name and Stock Code: The Stock Exchange of Hong Kong Limited, BANK OF GUIZHOU, 6199.HK Corporate Uniform Social Credit Code: 915200000550280000 Finance Permit Institution Number: B1383H252010001 Compliance Advisor: Guotai Junan Capital Limited Auditors: Overseas Auditor: KPMG Public Interest Entity Auditor registered in accordance with the Financial Reporting Council Ordinance Domestic Auditor: KPMG Huazhen LLP Hong Kong H Share Registrar and Transfer Office: Computershare Hong Kong Investor Services Limited – 2 – 2. FINANCIAL SUMMARY The financial information contained herein is prepared under the International Financial Reporting Standards. Unless otherwise stated, such information is denominated in RMB. (RMB million, except for percentages) Operation results indicators For the year ended 31 December Year-on- Year Item 2019 2018 Growth 2017 2016 (%) Net interest income 9,870.96 8,326.29 18.55 8,710.81 7,930.24 Net fee and commission income 94.64 21.30 344.32 (9.67) 189.97 Operating income 10,705.53 8,769.61 22.08 8,625.38 8,068.50 Operating expense (3,422.11) (3,039.83) 12.58 (2,919.53) (2,858.21) Impairment losses on assets (3,172.77) (2,392.28) 32.63 (3,058.52) (2,819.43) Total profit 4,091.39 3,303.04 23.87 2,641.84 2,397.87 Net profit 3,563.64 2,876.57 23.89 2,254.95 1,961.43 Net assets per share (RMB) 2.32 2.06 12.62 1.87 1.68 Basic earnings per share (RMB) 0.29 0.24 20.83 0.23 0.23 Profitability indicators For the year ended 31 December Year-on- Year Item 2019 2018 Growth 2017 2016 (%) Return on average total assets (1) 0.95% 0.92% 0.03% 0.88% 0.99% Return on average equity (2) 12.01% 12.36% -0.35% 12.07% 13.14% Net interest spread (3) 2.75% 2.66% 0.09% 3.31% 3.86% Net interest margin (4) 2.82% 2.82% – 3.45% 3.95% Net fee and commission income to operating income 0.88% 0.24% 0.64% -0.11% 2.35% Cost-to-income ratio (5) 30.84% 33.91% -3.07% 33.05% 32.53% – 3 – Scale indicators For the year ended 31 December Year- on-Year Item 2019 2018 Growth 2017 2016 (%) Total assets 409,388.80 341,202.88 19.98 286,368.40 228,949.27 Including: Total loans and advances to customers 179,867.72 140,140.53 28.35 88,132.34 68,331.41 Net loans and advances to customers (6) 173,349.70 135,831.85 27.62 85,409.49 65,549.85 Total liabilities 375,499.56 315,743.99 18.93 265,270.99 212,692.29 Including: Deposits from customers (7) 260,266.47 220,083.74 18.26 202,270.51 164,810.11 Share capital 14,588.05 12,388.05 17.76 11,263.05 9,661.35 Total equity 33,889.24 25,458.89 33.11 21,097.41 16,256.98 Asset quality indicators For the year ended 31 December Year- on-Year Item 2019 2018 Growth 2017 2016 (%) Non-performing loan ratio (8) 1.18% 1.36% -0.18 1.60% 1.91% Allowance coverage ratio (9) 324.95% 243.72% 81.23 192.77% 212.86% Allowance to gross loans (10) 3.85% 3.31% 0.54 3.09% 4.07% Capital adequacy ratio indicators (11) For the year ended 31 December Year- on-Year Item 2019 2018 Growth 2017 2016 (%) Core tier-one capital adequacy ratio 12.30% 10.62% 1.68 10.93% 10.26% Tier 1 capital adequacy ratio 12.30% 10.62% 1.68 10.93% 10.26% Capital Adequacy Ratio 14.45% 12.83% 1.62 11.62% 11.21% Total equity to total assets 8.28% 7.46% 0.82 7.37% 7.10% – 4 – Other indicators For the year ended 31 December Year- on-Year Item 2019 2018 Growth 2017 2016 % Liquidity coverage ratio 320.18% 180.08% 140.10 143.01% 119.87% Liquidity ratio 96.29% 65.31% 30.98 60.33% 49.67% Loan-to-deposit ratio 69.60% 63.68% 5.92 43.57% 41.46% Notes: (1) The percentage of net profit for the Reporting Period to the average balance of the total assets at the beginning and the end of the period. (2) The percentage of net profit for the Reporting Period to the average balance of total equity at the beginning and the end of the period. (3) Calculated by the difference between the average yield on total interest-earning assets and the average cost on total interest-bearing liabilities, on a basis of the daily average of the interest-earning assets and interest-bearing liabilities. (4) Calculated by dividing net interest income by average interest-earning assets, on a basis of the daily average of the interest-bearing assets. (5) Calculated by dividing operating cost after tax and surcharges by operating revenue. (6) Net loans and advances to customers = total loans and advances to customers + accrued interest on loans and advances to customers-provision for impairment of loans and advances to customers. (7) Deposits from customers = total deposits from customers + interest payable on deposits from customers. (8) Calculated by dividing total NPLs by total loans and advances to customers. (9) Calculated by dividing provision for impairment loss on loan by total NPLs. (10) Calculated by dividing total loans and advances to customers by total customer deposits. (11) Core tier-one capital adequacy ratio, tier-one capital adequacy ratio and capital adequacy ratio were calculated in accordance with the latest guidance promulgated by the (China Banking and Insurance Regulatory Commission (formerly known as China Banking Regulatory Commission)) (effective from 1 January 2013). – 5 – 3. MANAGEMENT DISCUSSIONS AND ANALYSIS 3.1 Economic, Financial and Policy Environment In 2019, under the complicated situation with increasing domestic and overseas risks and challenges, the domestic economic development focused on “six stabilizings”, namely “stabilizing employment, stabilizing finance, stabilizing foreign trade, stabilizing foreign capitals, stabilizing investment and stabilizing expectation”. Key progresses have been achieved in three critical battles against potential risks, poverty, and pollution. The national economy maintained stable growth on the whole with steady improvement in development quality. Major expected targets have been achieved smoothly. Based on the preliminary calculation of the National Bureau of Statistics, the gross domestic product (GDP) reached RMB99,086.5 billion, representing an increase of 6.1% as compared with the previous year. Industrial production continued to develop and high-end manufacturing and strategic emerging industries achieved rapid growth. Service industries saw rapid development and modern service industries witnessed strong momentum of growth. Market sales and investment in fixed assets increased steadily while investment in high-tech industries grew rapidly. Solid progresses have been made in key reforms and major battles and economic transformation and upgrading maintained the momentum. During the Reporting Period, the economic operation in Guizhou Province, where the Bank mainly conducts operation, was generally steady and the economic growth maintained strong trends. Based on the data released by the Statistical Bureau of Guizhou Province, the gross regional product of Guizhou province amounted to RMB1,676,934 million in 2019, representing an increase of 8.3% from the previous year. Agricultural restructuring was deeply advanced across the province. Industrial economy grew rapidly and service industries developed stably. The implementation of ten major projects on innovative development sped up. As at the end of 2019, money supply (M0) across the PRC was RMB7,718,947 million and social financing amounted to RMB25,575.3 billion.