(A joint stock company incorporated in the People's Republic of China with limited liability) Stock Code: 6199 2019 ANNUAL REPORT Contents Definitions 2 1. Chairman’s Statement, President’s 4 Statement 2. Company Profile 8 3. Summary of Accounting Data and 13 Financial Indicators 4. Management Discussion and 16 Analysis 5. Changes in Share Capital and 58 Information on Shareholders 6. Directors, Supervisor, Senior 73 Management, Employees and Organizations 7. Corporate Governance Report 95 8. Report of the Board of Directors 117 9. Report of the Board of Supervisors 124 10. Major Events 127 11. Risk Management, Internal 133 Control and Internal Audit 12. Independent Auditor’s Report 136 13. Financial Statements and Notes 145 14. Unaudited Supplementary 285 Financial Information The Bank holds a financial license No. B1383H252010001 approved by the CBIRC and was authorised by the CBIRC Guizhou office to obtain the business license with a unified social credit code 915200000550280000. The Bank 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. 2 Bank of Guizhou Company Limited Definitions DEFINITIONS The following terms shall have the following meanings in this report unless the context requires otherwise. “Articles of Association” or “Articles” the articles of association of the Bank, the version of which was passed by our shareholders at the shareholders’ meeting on 26 March 2019 and was approved by the CBIRC Guizhou Office on 9 April 2019, which became effective on 30 December 2019, as the same may be amended, supplemented or otherwise modified from time to time “Board” the board of Directors of the Bank “Board of Supervisors” the board of Supervisors of the Bank “Director(s)” the director(s) of the Bank “Supervisor(s)” the supervisor(s) of the Bank “PRC” the People’s Republic of China, but for the purpose of this report only, excluding Hong Kong, Macau Special Administrative Region of the PRC and Taiwan “CBIRC” or “CBRC” China Banking and Insurance Regulatory Commission (中國銀行保險監督管 理委員會)/China Banking Regulatory Commission (中國銀行業監督管理委 員會) (before 17 March 2018) “Bank”, “We”, “Our”, “us” or Bank of Guizhou Co., Ltd. (貴州銀行股份有限公司), a joint stock company “Bank of Guizhou” incorporated on 28 September 2012 in Guizhou Province, China, with limited liability in accordance with PRC laws and regulations and, if the context requires, includes its predecessors, branches and sub-branches “Banking Ordinance” the Banking Ordinance, Chapter 155 of the Laws of Hong Kong, as amended, supplemented or otherwise modified from time to time “CSRC” China Securities Regulatory Commission (中國證券監督管理委員會) “commercial banks” all the banking financial institutions in the PRC other than policy banks, including the large commercial banks, the joint-stock commercial banks, city commercial banks, foreign banks and other banking financial institutions “Domestic Shares” ordinary shares issued by the Bank in the PRC, with a nominal value of RMB1.00 each, which are subscribed for or credited as paid in full for in Renminbi Definitions Annual Report 2019 3 “H Shares” overseas-listed shares in the share capital of the Bank, with a nominal value of RMB1.00 each, which are to be subscribed for and traded in Hong Kong dollars and are listed on the Hong Kong Stock Exchange “H Share Registrar” Computershare Hong Kong Investor Services Limited “HK$” or “HKD” or “Hong Kong dollars” the lawful currency of Hong Kong “Hong Kong” or “HK” Hong Kong Special Administrative Region of the PRC “Hong Kong Stock Exchange” The Stock Exchange of Hong Kong Limited “Listing Date” 30 December 2019, the date on which dealings in the H Shares first commence on the Hong Kong Stock Exchange “Hong Kong Listing Rules” the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited “HKSCC” Hong Kong Securities Clearing Company Limited, a wholly owned subsidiary of Hong Kong Exchanges and Clearing Limited “PBOC” or “Central Bank” the People’s Bank of China (中國人民銀行) “RMB” or “Renminbi” Renminbi, the lawful currency of the PRC “SFO” the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “Basel Accords” Basel I, Basel II and Basel III, collectively “Basel III” the revised Basel Capital Accord promulgated in 2010 “CBIRC Guizhou Office” China Banking and Insurance Regulatory Commission Guizhou Office (中國 銀行保險監督管理委員會貴州監管局) “Reporting Period” for the year ended 31 December 2019 4 Bank of Guizhou Company Limited Chapter 1 Chairman’s Statement and President’s Statement CHAIRMAN’S STATEMENT In 2019, adhering to our vision of “contributing to excellence and sharing happiness”, we overcame various challenges such as difficulties and battles, cast our harvest with sweat, and made solid progress in a practical manner to promote the Bank’s various businesses to take solid steps on the path of high-quality development. As at the end of the Reporting Period, the total assets of Bank of Guizhou amounted to RMB409,389 million, representing an increase of 19.98%. Total deposits from customers amounted to RMB260,266 million, representing an increase of 18.26%. Total loans and advances increased by 28.35% to RMB179,868 million. Operating revenue for the year amounted to RMB10,706 million, representing an increase of 22.08%. Net profit amounted to RMB3,564 million, representing a year-on-year increase of 23.89%. Return on assets (ROA) and return on equity (ROE) were 0.95% and 12.01%, respectively, higher than the national average of 0.08 and 1.05 percentage points, respectively. The non-performing loan ratio was 1.18%, representing a decrease of 0.18 percentage point from the beginning of the year, which was lower than the national average of 0.68 percentage point; The provision coverage ratio was 324.95%, representing an increase of 81.23 percentage points as compared to the beginning of the year. It is worth noting that the Bank was successfully listed on The Hong Kong Stock Exchange on 30 December 2019, and joined the “Moments” of the international capital market. Under the listing requirements and regulatory rules, the Bank’s operation and management reached a new level. The achievements in the past year were attributable to the emotional recognition of tens of millions of customers, enabling us to adhere to a day-to-day recovery in the era of “experience is king”. Thanks to the trust and strong support of our shareholders, we will continue to work together to move forward. We also benefited from the hard work and diligence of nearly 5,000 employees of Bank of Guizhou, and our story is like the star of the summer, making people feel touching. We are well aware that we should be more concerned about the trajectory of moving forward, rather than what we have achieved. The direction is the same and it is not without fear. Every move forward will be closer to our goal. To this end, we have formulated a high standard of strategic planning and embarked on a new journey of strategic transformation and development. Transformation is an inevitable choice for the survival and development of Bank of Guizhou. In the face of the complicated and severe economic situation and the ever-changing operating environment, after in-depth analysis, research and judgment, comprehensive and objective review, we have discovered that Bank of Guizhou has reached a time when it is must be transformed. We will take the opportunity to work hard and unswervingly on the path of transformation. At the beginning of the transformation, the new concept and new method have been subject to the intangible multiplication and constraint of the long-established old pullovers. Over the past year, we have gathered the consensus of transformation and development, and have enjoyed the benefits of transformation but don’t stop there. While the process of transformation and development is inevitable to suffer pains, we firmly believe that the pain will bring a new life. We will continue to promote the transformation and development of corporate business and personal business in a steady manner, accelerate the development of strategic businesses such as financial market, transaction banking, asset management, investment banking, credit card and internet finance, and create a new growth pole. On the road of transformation, we adhere to the value concept of “a bank with heart”. Only by heart, we can get the recognition of customers. We always adhere to the customer-oriented principle, and take the “pain points” and “complaints” of customers as the starting points of our work, so as to demonstrate our value in creating value for customers. We strived to enter into the customer service ecosystem around the financial core, and continued to improve the customer’s sense of acquisition. We have changed our customer image from being blurred to being clear, our basic customer base continued to grow, our customer mix continued to be optimized, and customer loyalty effectively increased. We are deeply rooted in the land, and the “by loan” encourages poverty-stricken villages to build a road of enrichment, uses our financial resources Chapter 1 Chairman’s Statement and President’s Statement Annual Report 2019 5 to nourish the real economy, accurately drives private small and micro enterprises, and jointly builds a “community of destiny” with customers. We will continue to put efforts in green finance, and strive to make the world blue, mountain green and water clearer, so that our business philosophy can be connected with the environment that relies on survival and co-prosperity. On the road of transformation, we adhere to the bottom line of risk prevention and control.