All copy right reserved by Shanghai Rural Commercial Bank. It is not allowed to transfer and reprint without permission. Welcome to put forward your suggestion and advice. Annual Report Annual Report 2009 02 Company Information 04 Important Statements 07 Message from the Leaders 14 Summary of Accounting Data and Financial Performance 20 Changes of Share Capital and Shareholders Profile 24 Profiles of Directors on the Company Board, Supervisory Board, Senior Management Staff 34 Corporate Governance Structure 42 Shareholders Meeting 44 Report of the Company Board of Director 68 Report of the Supervisory Board 76 Significant Events 84 2009 Big Annual Events 90 Financial Report and Documents Available for Inspection Appendix Financial Report Social Responsibility Report Shanghai Rural Commercial Bank Address: No.8 middle yincheng road shanghai Tel:86-21-38576666 Fax:86-21-50105085 Welcome to dial our 24-hour customer service hotline 86-21-962999 or login our website www.srcb.com According to the statistics provided by the British magazine “The Banker”, SRCB was ranked No. 340th among world’s top 1000 banks based on tier-1 capital, which was 74 positions higher than last year. Also, SRCB was ranked No. 17th among all the selected Chinese banks. Total assets and Shareholders Equity Net profit and average earnings per share NPL ratio Total assets Shareholders Net profit Average earnings per share 2500 150 20 0.6 2.5 2,119.16 2000 120 1,733.27 0.5 1,574.74 15 1500 90 0.4 10 2.0 1000 60 0.3 5 500 30 0.2 0 0 0 0.1 1.5 Deposit balance and Loan balance Capital adequacy ratio Average return on equity (%) and net assets per share Deposit balance Loan balance Net Assets Per Share Average Return On Equity 2000 20 1,788.69 12 1,470.43 10 1500 15 1,283.17 1,185.39 8 1000 6 10 4 500 5 2 0 0 0 According to the statistics provided by the British magazine “The Banker”, SRCB was ranked No. 340th among world’s top 1000 banks based on tier-1 capital, which was 74 positions higher than last year. Also, SRCB was ranked No. 17th among all the selected Chinese banks. Total assets and Shareholders Equity Net profit and average earnings per share NPL ratio Total assets Shareholders Net profit Average earnings per share 2500 150 20 0.6 2.5 2,119.16 2000 120 1,733.27 0.5 1,574.74 15 1500 90 0.4 10 2.0 1000 60 0.3 5 500 30 0.2 0 0 0 0.1 1.5 Deposit balance and Loan balance Capital adequacy ratio Average return on equity (%) and net assets per share Deposit balance Loan balance Net Assets Per Share Average Return On Equity 2000 20 1,788.69 12 1,470.43 10 1500 15 1,283.17 1,185.39 8 1000 6 10 4 500 5 2 0 0 0 Shanghai Rural Commercial Bank All copy right reserved by Shanghai Rural Commercial Bank. It is not allowed to transfer and reprint without permission. Welcome to put forward your suggestion and advice. Annual Report Annual Report 2009 02 Company Information 04 Important Statements 07 Message from the Leaders 14 Summary of Accounting Data and Financial Performance 20 Changes of Share Capital and Shareholders Profile 24 Profiles of Directors on the Company Board, Supervisory Board, Senior Management Staff 34 Corporate Governance Structure 42 Shareholders Meeting 44 Report of the Company Board of Director 68 Report of the Supervisory Board 76 Significant Events 84 2009 Big Annual Events 90 Financial Report and Documents Available for Inspection Appendix Financial Report Social Responsibility Report Shanghai Rural Commercial Bank Address: No.8 middle yincheng road shanghai Tel:86-21-38576666 Fax:86-21-50105085 Welcome to dial our 24-hour customer service hotline 86-21-962999 or login our website www.srcb.com 02 SRCB Annual Report 2009 Concentrate on Rural/Suburban Expand in Downtown (CBD) Based in Shanghai Extend to Surrounding Cities 02 SRCB Annual Report 2009 Company Information • Legal Name in Chinese: 上海农村商业银行股份有限公司 Abbreviations: 上海农商银行 Legal name in English: Shanghai Rural Commercial Bank Co., Ltd. Abbreviations: SRCB (“Shanghai Rural Commercial Bank”, referred to as “the Company”) • Legal Representative: Hu Ping Xi • Board Secretary: Liu Yong Fen Telephone: 0086-21-38576709 Facsimile: 0086-21-50105085 Email: [email protected] Mailing Address: Level 23 No.8 Middle Yincheng Road, Pudong New Area, Shanghai PRC • Registered Address: No.981 Pudong Avenue, Shanghai, China Office Address: Level 15-27 No.8 Middle Yincheng Road, Pudong New Area, Shanghai, China Postcode: 200120 Website: http://www.srcb.com Email: [email protected] • The newspaper for disclosure of company information: Jiefang Daily, Shanghai Financial News, Shanghai Securities News, Shanghai Morning Post, Shanghai Evening Post, and Xinmin Evening News Annual Report published on: http://www.srcb.com Copies of Annual Report available at the Company Secretary's Office • Other Information: Date of first registration: 23 August 2005 Registration Number of Legal Entity License: 310000000088142 Tax Registration Number: Shanghai 310043779347314 Organization Code: 77934731-4 Auditor: PricewaterhouseCoopers Zhong Tian CPAs Limited Company Auditor Address:11/F. PricewaterhouseCoopers Center, No.202 Hu Bin Road, Shanghai PRC Better Service Better Experience 04 SRCB Annual Report 2009 Important Statements 1. The Company and the Directors assume several and joint responsibilities for any false record, misleading statements or significant omissions of information contained in this report. 2. Content of the “Shanghai Rural Commercial Bank Company Limited 2009 Annual Report” has been approved by the second Board of Directors at the Fourth Company Board Meeting and by the second Supervisory Board of Directors at the Fourth Supervisory Board Meeting. 3. The financial reports have been audited and opined by the PricewaterhouseCoopers Zhong Tian Accounting Firm. 4. The Report is prepared in both Chinese and English. The Chinese version prevails. SRCB Board of Directors March 2010 Interpretation The following words have the following meanings in the Report unless otherwise referred to in the context: 1. Company, the Company, the Bank and SRCB all refer to Shanghai Rural Commercial Bank Co., Ltd. 2. The Group refers to Shanghai Rural Commercial Bank Co., Ltd. and its subsidiary Shanghai Chongming Changjiang Village and Town Bank Co., Ltd. 3. CBRC refers to China Banking Regulatory Commission 4. The Central Bank refers to the People's Bank of China 5. The Company Law refers to the Company Law of the People's Republic of China 6. The Articles of Association refers to the Articles of Association of Shanghai Rural Commercial Bank Co., Ltd. 7. Yuan refers to Chinese Renminbi (RMB) 05 Board of Directors Signatures Hu Pingxi Hou Funing Shen Xunfang Robert John Edgar Alistair Marshall Bulloch Wan Jianhua Shi Derong Yuan Ping Zhang Yuliang Chen Wenjun Liu Yipeng Shi Jiliang Wu Daqi Su Zhong Yu Yinghui Liu Hongzhong Wu Jian Hu Pingxi Party Secretary and Chairman 07 Chairman’s Address Looking back over the past year, with a severe external envi- moted. Being people-oriented, we vigorously strengthened ronment, SRCB actively responded to the impact of interna- the building of human resources, a large number of businesses tional financial crisis and resolutely implemented the national backbones were introduced, strict internal management was macro-control policy as guided by the scientific development conducted, corporate culture developmentwas actively carried concept. Prudent management and rational development was out, and the tendency towards new development was created. carried out and the two main themes of realizing development We are very thankful for all sections ofsociety and all custom- and controlling risk were focused with the main customer ers that are interestedand supportive for SRCB’s development! bases of farmers, countryside, agriculture, small and medium According to the prospects for 2010, the global economy is ex- enterprises, and community residents. All types of business pected to rise from its recent depths, and the domestic econ- were developed in a stable and healthy manner, services con- omy is starting to be stable and is beginning to rise. However, tinued to be improved, the quality of the assets was further im- the macroeconomic situation remains complex; Shanghai is proved and good performance was maintained. As at the end speeding up the "two centers" construction and is further pro- of 2009, the total assets of the Bank were RMB 211.9 billion, the moting developmentand economic restructuring to host the outstanding deposit were RMB 178.9 billion, the outstanding World Expo that will attract worldwide attention. With the new loans were RMB 118.5 billion, the non-performing loan ratio opportunities and challenges, we must completely analyze and (five categories) was 1.88% and the net profit was RMB 1.973 understand the domestic and international economic and fi- billion. nancial situation, carefully carry out the national macro control At the same time, we attached importance to improving the policy, and identify the orientation and focus point with the Company governance and successfully carried out transition policy guidance of structural adjustment, restructuring promo- amongst the Board of Directors and the Board of Supervisors. tion, and processes to improve people's living conditions. We We established the governance structure of the Board of Direc- will adhere to the principle of maximizing favorable factors tors, the Board of Supervisors, the Shareholders' Meeting and and minimizing unfavorable ones, doing what is appropriate Senior Management with clear division and responsibilities. and discarding what is inappropriate to realize a good start for A new three-year development strategy was developed. We the new three-year strategy. formulated the development neededto train the employee We will further improve the company governance, adhere team to be willing to learn, and be progressive, pragmatic and to compliant management, stable development, risk con- innovative and to build a people-friendly bank that serves the trol, rational structuralorganisation, optimize the business public and is caring and thoughtful.