(A joint stock company incorporated in the People's Republic of China with limited liability) Stock Code: 6138 2017 Annual Report The Company holds the Finance Permit No. B0306H223010001 approved by the China Banking Regulatory Commission and has obtained the Business License (Uniform Social Credit Code: 912301001275921118) approved by Market Supervision and Administration Bureau of Harbin. The Company is not an authorised institution within the meaning of the Hong Kong 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/deposit-taking business in Hong Kong. Harbin Bank Co., Ltd. 1 Contents 2017 Annual Report Definitions 2 Company Profile 4 Summary of Accounting Data and Financial Indicators 10 Chairman’s Statement 14 President’s Statement 17 Report of the Board of Directors 21 Changes in Share Capital and Information on Shareholders 96 Corporate Governance Report 101 Report of the Board of Supervisors 130 Important Events 132 Directors, Supervisors, Senior Management, Employees and Organisations 144 Financial Statements 158 Documents for Inspection 288 2 Harbin Bank Co., Ltd. 2017 Annual Report Definitions Definitions Company Profile Summary of Accounting Data and Financial Indicators Chairman’s Statement President’s Statement In this report, unless the context otherwise requires, the following terms shall have the meanings set out below. “A Shares” ordinary shares with a par value of RMB1.00 per share that are proposed to be issued pursuant to the A Share Offering by the Bank, which will be applied for listing on the Shanghai Stock Exchange and subscribed and traded in RMB “A Share Offering” the Bank’s proposed initial public offering of not more than 3,666,000,000 A Shares which will be applied for listing on the Shanghai Stock Exchange “Reporting Period” or “Year” the year ended 31 December 2017 “Company” Harbin Bank Co., Ltd. (哈爾濱銀行股份有限公司), a joint stock company incorporated in the PRC on 25 July 1997 with limited liability in accordance with PRC laws “Group” or “Bank” the Company and all of its subsidiaries and branches “Model Code” the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix 10 to the Hong Kong Listing Rules “Chief Financial Officer” the chief financial officer of the Company “Director(s)” the director(s) of the Company “Board” or “Board of Directors” the board of directors of the Company “Articles of Association” the articles of association of Harbin Bank Co., Ltd. “H Shares” overseas-listed foreign invested ordinary shares of a nominal value of RMB1.00 each in the share capital of the Company, which are listed on the Hong Kong Stock Exchange and subscribed and traded in HKD “Harbin Economic Development” Harbin Economic Development and Investment Company “HBCF” Harbin Bank Consumer Finance Co., Ltd. “HB Leasing” Harbin Bank Financial Leasing Co., Ltd. “Supervisor(s)” the supervisor(s) of the Company “Board of Supervisors” the board of supervisors of the Company Harbin Bank Co., Ltd. 3 2017 Annual Report Definitions Definitions Company Profile Summary of Accounting Data and Financial Indicators Chairman’s Statement President’s Statement “Domestic Shares” ordinary shares of a nominal value of RMB1.00 each in the share capital of the Company, which are subscribed for or credited as paid in Renminbi “PBOC” or “Central Bank” the People’s Bank of China “Hong Kong” the Hong Kong Special Administrative Region of the PRC “Hong Kong Stock Exchange” The Stock Exchange of Hong Kong Limited “Hong Kong Listing Rules” The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited “SFO” the Securities and Futures Ordinance, Chapter 571 of the Laws of Hong Kong “CBRC” the China Banking Regulatory Commission “CSRC” the China Securities Regulatory Commission “PRC” the People’s Republic of China, for the purpose of the report, excluding Hong Kong, the Macau Special Administrative Region and Taiwan 4 Harbin Bank Co., Ltd. 2017 Annual Report Company Profile Definitions Company Profile Summary of Accounting Data and Financial Indicators Chairman’s Statement President’s Statement Basic Information Website for Publishing this Report: Legal Chinese Name: www.hrbb.com.cn 哈爾濱銀行股份有限公司(Abbreviation: 哈爾濱銀行) www.hkexnews.hk English Name: Place Where this Report is Available: HARBIN BANK CO., LTD. (Abbreviation: HARBIN BANK) No. 888 Shangjiang Street, Daoli District, Harbin, PRC Legal Representative: Place of Listing, Stock Name and Stock Code: GUO Zhiwen The Stock Exchange of Hong Kong Limited, HARBIN BANK and 6138 Authorised Representatives for the Hong Kong Corporate Uniform Social Credit Code: Stock Exchange: 912301001275921118 LIU Zhuo and SUN Feixia Finance Permit Institution Number: Board Secretary: B0306H223010001 SUN Feixia Date of Initial Registration: Company Secretary: 25 July 1997 SUN Feixia Initial Registration Authority: Registered Address: Market Supervision and Administration Bureau of Harbin, No. 160 Shangzhi Street, Daoli District, Harbin, PRC Heilongjiang Province, PRC Principal Place of Business in Hong Kong: Legal Adviser as to Laws of China: 18/F, Tesbury Centre, 28 Queen’s Road East, Beijing Jun He Law Offices Wan Chai, Hong Kong Legal Adviser as to Laws of Hong Kong, China: Contact Address: Linklaters No. 888 Shangjiang Street, Daoli District, Harbin, PRC Auditors: Telephone: Overseas auditor: Ernst & Young, Certified Public Accountants 86-451-86779933 in Hong Kong Domestic auditor: Ernst & Young Hua Ming LLP Facsimile: 86-451-86779829 Hong Kong H Share Registrar and Transfer Office: Computershare Hong Kong Investor Services Limited Email: [email protected] Harbin Bank Co., Ltd. 5 2017 Annual Report Company Profile Definitions Company Profile Summary of Accounting Data and Financial Indicators Chairman’s Statement President’s Statement Company Profile The Bank, headquartered in Harbin, was granted its finance permit to carry on financial business by the PBOC in February 1997, and obtained its corporate business license on 25 July 1997. At present, the Bank has established 17 branches in Tianjin, Chongqing, Dalian, Shenyang, Chengdu, Harbin, Daqing, etc. and 32 village and township banks in 14 provinces and municipalities, including Beijing, Guangdong, Jiangsu, Jilin and Heilongjiang. The Bank, as a controlling shareholder, has promoted the establishment of HB Leasing, the first financial leasing company in Northeastern China, and HBCF, the first consumer finance company in Heilongjiang Province, respectively. As at 31 December 2017, the Group had 363 business outlets with branches and sub-branches across seven administrative regions in China. As at 31 December 2017, the Bank had total assets of RMB564.2552 billion, total loans and advances to customers of RMB237.3978 billion and total customer deposits of RMB378.2584 billion. In 2017, the Bank was ranked 195th in “Brand Finance Banking 500 for the Year 2017” published by Brand Finance (a famous UK-based branded business valuation consulting firm), 1,130th in the “World’s 2000 Largest Public Companies 2017” published by Forbes of the US, 217th in “The Banker Top 1,000 World Banks 2017” in terms of total tier 1 capital and 35th among the Chinese-funded Banks in 2017 published by the Banker of United Kingdom, 417th in the “Top 500 Chinese Companies for 2017” published by the FORTUNE China and 23rd among the 25 commercial banks on the list. The Bank was awarded “2017 The China Country Awards: Best Regional Cash Management Bank in China” from The ASIAN BANKER, and won the “2017 Best City Commercial Bank” award under the “Stars of China Awards” from GLOBAL FINANCE, a US-based magazine, for four consecutive years, and also won the “Best Bank for Asian Syndicated Lending” for the first time. 6 Harbin Bank Co., Ltd. 2017 Annual Report Company Profile Definitions Company Profile Summary of Accounting Data and Financial Indicators Chairman’s Statement President’s Statement Major Awards for 2017 List of Major Awards for 2017 No. Name of Award Awarding Party Time of Award 1 “Bond Institution of Good Progress Award” of China Central Depository & January 2017 Outstanding members of China’s Bond Market Clearing Co., Ltd. in 2016 (2016年中國債券市場優秀成員之 “債券業務進步獎”) 2 Outstanding Award (突出貢獻獎) Clearing Center For City Commercial January 2017 Banks 3 China Banking Wealth Management Grade Work China Banking Wealth Management February 2017 Outstanding City Commercial Bank (2016) Registration & Depository Center (全國銀行業理財等級工作優秀城商行(2016年度)) 4 Active Dealer in Interbank RMB Market in 2016 National Interbank Funding Center March 2017 (2016年度銀行間本幣市場活躍交易商) 5 Harbin Marathon Gala: The Most Influential www.cebnet.com.cn March 2017 Award under the 3rd session of Golden Chestnut Award of China Financial Marketing (哈馬嘉年華：第三屆中國金融品牌“金栗子獎” 極具影響力獎) 6 2017 Regional Commercial Bank Best Mobile China Financial Certification March 2017 Banking Innovation Award (2017年區域性商業 Authority (CFCA) 銀行最佳手機銀行業務創新獎) 7 2016 MasterCard Best Commercial Bank Partner Mastercard Incorporated April 2017 Award (2016萬事達卡最佳合作商業銀行獎) 8 Syndicated Loans to Russia: Top Ten Innovative Chinese Banker June 2017 Financial Products Awards (Corporate Business) under 2017 China Financial Innovation Award (俄易融：2017中國金融創新獎之十佳金融產品 創新獎（對公業務)) 9 Medical Loan Tong: Top Ten Innovative Financial Chinese Banker June 2017 Products Awards (Retail Business) under 2017 China Financial Innovation Award (醫貸通： 2017中國金融創新獎之十佳金融產品創新獎 （零售業務)) Harbin Bank Co., Ltd. 7 2017 Annual Report