Bank Of Shanghai Co.Ltd(601229) Bank of Shanghai Co., Ltd.
(Stock Code: Bank Of Shanghai Co.Ltd(601229) )
2021 Annual Report
April, 2002
Important tips
1. The board of directors, the board of supervisors and the directors, supervisors and senior managers of the company guarantee that the contents of this annual report are true, accurate and complete without false records, misleading statements or major omissions, and bear individual and joint legal liabilities.
2. On April 21, 2022, the 13th meeting of the 6th board of directors of the company deliberated and adopted the proposal on Bank Of Shanghai Co.Ltd(601229) 2021 annual report and summary. There were 18 directors who should attend the meeting, and 16 directors actually attended the meeting. Non executive director Zhuang zhe entrusted non-executive director Ye Jun, and independent director Xiao Wei entrusted independent director Yang Dehong to attend and vote on his behalf. Six supervisors of the company attended the meeting as nonvoting delegates.
3. Annual profit distribution plan: Based on the total share capital of ordinary shares on the date of equity distribution and equity registration at that time, cash dividends of RMB 4.00 (including tax) will be distributed to all ordinary shareholders for every 10 shares. The above annual profit distribution plan can only be implemented after being deliberated and approved by the 2021 annual general meeting of shareholders.
4. The 2021 financial statements prepared by the group in accordance with the Chinese accounting standards for business enterprises have been audited by PricewaterhouseCoopers Zhongtian Certified Public Accountants (special general partnership) in accordance with the Chinese auditing standards for certified public accountants and issued a standard unqualified audit report.
5. Unless otherwise specified, the accounting data and financial indicators contained in this annual report are the consolidated data of the group, which are presented in RMB. “The group” refers to Bank Of Shanghai Co.Ltd(601229) and its subsidiaries.
6. Jin Yu, chairman of the company, Zhu Jian, President, Shi Hongmin, vice president and chief financial officer, and Zhang Jiguang, head of the financial department, guarantee the authenticity, accuracy and completeness of the financial report in this annual report.
7. Risk statement of forward-looking statements: the forward-looking statements such as future plans and development strategies involved in this annual report do not constitute the company’s substantive commitment to investors. Investors and relevant persons should maintain sufficient risk awareness and understand the differences between plans, forecasts and commitments.
8. Warning of major risks: the company has no foreseeable major risks. The risks faced by the company in operation mainly include credit risk, market risk, liquidity risk, operational risk, etc. the company has taken various measures to effectively manage and control various operational risks. For details, see the chapter “management discussion and analysis”.
catalogue
Important tips 1 directory of documents for future reference 3 interpretation 4 chairman’s speech 5 president’s speech Chapter 1 company profile Chapter II summary of accounting data and financial indicators 18 Chapter III Management Discussion and Analysis Chapter IV corporate governance Chapter V environmental and social responsibility 127 Chapter VI important matters Chapter VII changes in common shares and shareholders 144 Chapter VIII preferred shares Chapter IX bond related information 155 Chapter X financial report one hundred and fifty-eight
Directory of documents for future reference
1. The financial statements containing the signatures and seals of the chairman, President, vice president and chief financial officer and the person in charge of the financial department. 2. The original of the audit report with the seal of the accounting firm and the signature and seal of the certified public accountant. 3. Originals of all company documents and announcements publicly disclosed during the reporting period.
interpretation
In this report, unless the context otherwise requires, the following words have the following meanings:
The company, Bank Of Shanghai Co.Ltd(601229) Bank Of Shanghai Co.Ltd(601229)
The group Bank Of Shanghai Co.Ltd(601229) and its subsidiaries
Shanghai Bank Hong Kong Bank Of Shanghai Co.Ltd(601229) (Hong Kong) Co., Ltd
Shangyin International Co., Ltd
Shangyin International (Shenzhen) Shangyin International (Shenzhen) Co., Ltd
Shanghai Bank Fund Management Co., Ltd
Shangcheng consumer finance, Shangcheng Shanghai Shangcheng Consumer Finance Co., Ltd
Central bank, people’s Bank of China
China Banking and Insurance Regulatory Commission, China Banking and Insurance Regulatory Commission Bank Of China Limited(601988) Insurance Regulatory Commission
China Securities Regulatory Commission, China Securities Regulatory Commission
Shanghai Banking and Insurance Regulatory Bureau Bank Of China Limited(601988) Insurance Regulatory Commission Shanghai regulatory bureau
Shanghai Stock Exchange Shanghai Stock Exchange
Shanghai Free Trade Zone China (Shanghai) pilot Free Trade Zone
New free trade zone Lingang New Area of China (Shanghai) pilot Free Trade Zone
Santander Bank of Spain Santander Bank of Spain Limited
Shanghai Commercial Bank Shanghai Commercial Bank Co., Ltd
Bank Of Shanghai Co.Ltd(601229) articles of Association
RMB yuan
Chairman’s speech
In 2021, we celebrated the Centennial birthday of the Communist Party of China and Bank Of Shanghai Co.Ltd(601229) launched a new round of three-year development plan, leading the construction and high-quality development of boutique banks into a new stage.
Facing the complex and severe external situation, we responded calmly, unswervingly promoted transformation and development, and achieved good business performance. The annual operating revenue was 56.230 billion yuan, a year-on-year increase of 10.81%; The net profit attributable to the shareholders of the parent company was 22.042 billion yuan, a year-on-year increase of 5.54%; At the end of the year, the non-performing loan ratio was 1.25%, and the provision coverage was 301.13%, maintaining a good asset quality and risk offset level.
Allocating more financial resources to key areas and weak links is the mission and responsibility of commercial banks to serve the economic transformation and upgrading strategy. We deepened the main responsibility and main business, closely followed the national and regional development strategies and the needs of the real economy, planned and arranged professional operations, supported inclusive small and micro enterprises, emerging industries, green ecology and people’s livelihood, maintained the safety and stability of the industrial chain supply chain, and expanded channels for the financing needs of the real economy. Over the past year, six major financial and commercial investment banks, including Inclusive Finance, green finance, people’s livelihood finance, science and innovation finance, supply chain finance and cross-border finance, have developed rapidly and become a strong driving force for business growth. At the end of the year, the balance of inclusive loans, green loans, people’s livelihood loans, RMB science and technology enterprise loans and supply chain financial credit support increased by 64.55%, 180.07%, 53.61%, 43.19% and 38.09% respectively compared with the end of the previous year. The annual cross-border RMB facilitation business and debt financing instrument underwriting business maintained rapid development, and the underwriting scale of green bonds, carbon neutral bonds and sustainable linked bonds ranked first among urban commercial banks.
With its robust growth and high volatility, China’s banks are becoming a new growth engine of the current retail market. We strengthened our own advantages, complied with the people’s growing desire for a better life and the demand for high-quality financial services, accelerated the deepening of business features such as wealth management, consumer credit and pension finance, and continued to enhance the sustainable development capacity of retail finance. In the new era of wealth management, we have started the second transformation of wealth management, improved the wealth management products and service system, led the transformation of retail development momentum, improved the coordination mechanism of large wealth management, and driven asset management and custody business to form a circular value chain. The growth of wealth management customers reached a new high in recent years. The annual income of wealth management increased by 32.12% year-on-year, the balance of personal finance at the end of the year increased by 19.33%, and the custody scale of interbank institutions increased by 20.05%. Optimize the structure of consumer credit, actively serve the needs of people’s livelihood, and strengthen the allocation of high-quality medium and long-term loans. At the end of the year, the balance of housing mortgage loans and automobile consumer loans increased by 7.37 percentage points in retail loans. Giving full play to the advantages of pension finance and deepening the service connotation, the per capita AUM of pension customers increased by 18.90% at the end of the year.
Uncertainty is the most significant feature of the business environment of commercial banks. We strive to cope with environmental uncertainty with the certainty of our own development. On the one hand, we will accelerate the adjustment of business structure, promote professional operation and characteristic development, make the growth structure comply with the requirements of periodic development, and strive to resonate with the development of the times. On the other hand, we will firmly seize the new opportunities brought by digital transformation, continue to deepen the transformation of development model, unswervingly consolidate the development foundation and enhance development capacity, stabilize the impact of short-term volatility and effectively ensure steady growth.
Today, digitalization and financial technology have increasingly become the core driving forces for the transformation and development of commercial banks. We take digital transformation as the main line of a new round of development planning to lead future development. We will continue to deepen data governance, create digital management tools, orderly promote the intelligent application of front, middle and back office systems, and accelerate the realization of all-round accurate guidance for customers, products, services and risk control. Customers are always the foothold of our strategic positioning. We take deep understanding of customers and creating value for customers as our central work. By deeply promoting digital transformation, we will accelerate the effective access of products and services, precise marketing and active service for customers. Adhering to the prudent risk preference, we will accelerate the construction of a comprehensive risk management system based on data drive, promote the transformation and upgrading of risk management philosophy and management mode, enhance the foresight, accuracy and initiative of risk management, and enable us to guide the optimization of business structure, risk control in key areas, blacklist management and potential risk resolution and disposal.
The development of economic and social transformation and the deepening financial demand need strong financial supply support. We will continue to build a more open integrated business system, open up the border, coordinate the resource endowment within the group, promote the front, middle and back office, Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integrated coordination, strengthen the two-way integration of business and technology, constantly enrich financial functions, optimize services and product portfolio, achieve breakthroughs in marketing organization and management mode, and meet customers’ financial service needs in an all-round way. At the same time, we will continue to expand cooperation platforms with financial peers and business partners, open up direct financing and indirect financing, improve the supply capacity of financial services and build a more competitive service ecosystem.
With the in-depth practice of the new development concept, the awareness of corporate citizenship continues to awaken, and more attention is paid to the establishment of a harmonious symbiotic relationship with society and the environment. We have the responsibility to give full play to the financial strength, set an example and demonstrate, integrate the ESG concept into corporate governance and operation management, and constantly deepen the connotation of sustainable development. We will continue to improve the governance system, reflect the responsibilities of financial enterprises, focus on green credit, green bonds, green asset securitization, green supply chain finance, green cross-border trade and other fields, constantly enrich the “Green Finance +” product system, promote the development of green Inclusive Finance, increase support for green industries and contribute to green development. At the same time, accelerate the construction of a green bank and implement the Bank Of Shanghai Co.Ltd(601229) carbon peak carbon neutralization white paper; Adhere to the concept of common prosperity, support pairing assistance, consolidate the achievements of poverty eradication and promote rural revitalization; Adhere to people-oriented and value creation, and effectively safeguard the interests of shareholders, customers, employees and stakeholders.
In 2022, the global epidemic continues and the momentum of world economic recovery is insufficient. China’s economic development is still under triple pressure of shrinking demand, supply shock and weakening expectation. We will continue to deepen structural adjustment and development transformation, overcome difficulties, move forward bravely, create certainty in uncertainty, and welcome the victory of the 20th CPC National Congress with new achievements in the construction of high-quality banks.
Chairman: Jin Yu
President’s speech
In the past year, we have met challenges and absorbed upward strength. We have witnessed the centenary of the founding of the party, experienced economic transformation, felt market changes, experienced industry changes and withstood the test of the epidemic. In the tide of reform and development, Bank Of Shanghai Co.Ltd(601229) firmly guided by strategy and steadily moved forward in transformation and development. By the end of 2021, the group’s deposits and loans had increased by 11.81% and 11.44% respectively, and the business structure was gradually optimized in the process of adjustment; The revenue reached 56.2 billion yuan, a year-on-year increase of 10.81%; The net profit attributable to the parent company exceeds 22 billion yuan; The non-performing loan ratio was 1.25%, and the provision coverage remained above 300%.
In recent years, the magnitude and speed of changes in the internal and external environment have made us deeply understand the significance of the changes in the past century. We are facing changes in the development situation: repeated epidemics in the century, reconstruction of industry structure, differentiation of horizontal competition, increasing complexity of bank operation and management and increasing factors requiring overall consideration; The traditional economy has gradually withdrawn from the center of the stage, and Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) , new kinetic energy has risen rapidly. The “smile curve” is gradually flattened, and the development of “no man’s land” and “deep water area”
