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.
םਠვБٰ΅Ϟࠢʮ̡
CHINA MERCHANTS BANK CO., LTD.
(A joint stock company incorporated in the People's Republic of China with limited liability)
(H Share Stock Code: 03968)
(Preference Share Stock Code: 04614)
2020 ANNUAL RESULTS ANNOUNCEMENT
The Board of Directors (the "Board") of China Merchants Bank Co., Ltd. (the "Company") hereby announces the audited results of the Company and its subsidiaries for the year ended 31 December 2020. This announcement, containing the full text of the 2020 Annual Report of the Company, complies with the relevant requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited in relation to information to accompany preliminary announcement of annual results. Printed version of the Company's 2020 Annual Report will be delivered to the H-Share Holders of the Company and available for viewing on the websites of The Stock Exchange of Hong Kong Limited (www.hkex.com.hk) and of the Company (www.cmbchina.com) in April 2021.
Publication of Results Announcement
Both the Chinese and English versions of this results announcement are available on the websites of the Company (www.cmbchina.com) and The Stock Exchange of Hong Kong Limited (www.hkex.com.hk). In the event of any discrepancies in interpretations between the English version and Chinese version, the Chinese version shall prevail.
The Company has also prepared the annual report in Chinese in accordance with the PRC Generally Accepted Accounting Principles, which is available on the websites of the Company (www.cmbchina.com) and Shanghai Stock Exchange (www.sse.com.cn).
By Order of the Board China Merchants Bank Co., Ltd.
Miao Jianmin
Chairman
19 March 2021
As at the date of this announcement, the executive directors of the Company are Tian Huiyu, Liu Jianjun and Wang Liang; the non-executive directors of the Company are Miao Jianmin, Fu Gangfeng, Zhou Song, Hong Xiaoyuan, Zhang Jian, Su Min, Wang Daxiong and Luo Sheng; and the independent non-executive directors of the Company are Leung Kam Chung, Antony, Zhao Jun, Wong See Hong, Li Menggang, Liu Qiao and Tian Hongqi.
Contents
Contents
2 Important Notice
3 Definitions
3 Significant Risk Warning
4 Chairman's Statement
7 President's Statement
12 I Company Information
18 II Summary of Accounting Data and Financial Indicators
22 III Report of the Board of Directors
22 3.1 Analysis of Overall Operation
22 3.2 Analysis of Income Statement
29 3.3 Analysis of Balance Sheet
34 3.4 Analysis of Loan Quality
40 3.5 Analysis of Capital Adequacy Ratio
43 3.6 Results of Operating Segments
43 3.7 Other Financial Disclosures Under the Regulatory Requirements
44 3.8 Implementation of Business Development Strategies
48 3.9 Key Business Concerns In Operation
61 3.10 Business Operation
80 3.11 Risk Management
88 3.12 Outlook and Coping Tactics
90 3.13 Profit Appropriation
92 3.14 Environmental, Social and Governance (Esg)
98 3.15 Compliance with Relevant Laws and Regulations
98 3.16 Management Contracts
98 3.17 Permitted Indemnity Provision
100 IV Important Events
108 V Changes in Shares and Information on Shareholders
119 VI Directors, Supervisors, Senior Management, Employees, and Organisational Structure
136 VII Corporate Governance
156 VIII Report of the Board of Supervisors
157 IX Financial Statements
Important Notice
Important Notice
1. The Board of Directors, the Board of Supervisors, Directors, Supervisors and senior management of the Company confirm that the contents in this annual report are true, accurate, and complete and have no false representations, misleading statements or material omissions, and they will severally and jointly accept legal responsibility for such contents.
2. The 22nd meeting of the Eleventh Session of the Board of Directors of the Company was held at the China Merchants Bank University in Shekou, Shenzhen on 19 March 2021. The meeting was presided by Miao Jianmin, Chairman of the Board of Directors. 17 out of 17 eligible Directors attended the meeting in person. 7 Supervisors of the Company were present at the meeting. The convening of the meeting complied with the relevant provisions of the Company Law of the People's Republic of China and the Articles of Association of China Merchants Bank Co., Ltd..
3. Deloitte Touche Tohmatsu Certified Public Accountants LLP and Deloitte Touche Tohmatsu (both being auditors of the Company) have separately reviewed the 2020 annual financial report prepared in accordance with the PRC Generally Accepted Accounting Principles and International Accounting Standards, and have separately issued standard auditing reports with unqualified opinions.
4. Unless otherwise stated, all monetary sums stated in this annual report are expressed in RMB.
5. Miao Jianmin, Chairman of the Company, Tian Huiyu, President and Chief Executive Officer, Wang Liang, Executive Vice President and Chief Financial Officer, and Li Li, the person in charge of the Finance and Accounting Department, hereby make representations in respect of the truthfulness, accuracy and completeness of the financial statements in this annual report.
6. The profit appropriation plan: it was proposed that 10% of the audited net profit of the Company for 2020 of RMB88.674 billion, equivalent to RMB8.867 billion, will be allocated to the statutory surplus reserve, while 1.5% of the total amount of the risk assets, equivalent to RMB8.247 billion, will be appropriated to the general reserve. Based on the total share capital of A Shares and H Shares on the record date for implementation of the profit appropriation, the Company will declare a cash dividend of RMB1.253 (tax included) for every share to all shareholders of the Company whose names appear on the register, payable in Renminbi for holders of A Shares and in Hong Kong Dollars for holders of H Shares. The actual profit appropriations amount in HKD would be calculated based on the average benchmark rate for RMB to HKD published by the People's Bank of China for the previous week (including the day of the shareholders' general meeting) before the date of the shareholders' general meeting. The retained profits will be carried forward to the next year. In 2020, the Company did not transfer any capital reserve into share capital. The above profit appropriation plan is subject to consideration and approval at the 2020 Annual General Meeting of the Company.
7. We have included in this report certain forward-looking statements with respect to the financial position, operating results and business development of the Group. We use words such as "will", "may", "expect", "try", "strive", "plan", "anticipate", "aim at", and similar expressions to indicate forward-looking statements. These statements are based on current plans, estimates and projections. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we give no assurance that these expectations will turn into reality or prove to be correct. Therefore they should not be deemed as the Group's commitments. Investors should not place undue reliance on such statements and should pay attention to investment risks. You are cautioned that such forward-looking statements are related to future events or future financial position, business, or other performances of the Group, and are subject to a number of uncertainties which may cause substantial differences from those in the actual results.
Definitions / Significant Risk Warning
Definitions
The Company, the Bank, CMB or China Merchants Bank:
China Merchants Bank Co., Ltd.
The Group:
China Merchants Bank and its subsidiaries
CBIRC:
China Banking and Insurance Regulatory Commission
CSRC:
China Securities Regulatory Commission
Hong Kong Stock Exchange or SEHK:
The Stock Exchange of Hong Kong Limited
Hong Kong Listing Rules:
The Rules Governing the Listing of Securities on the SEHK
CMB Wing Lung Bank:
CMB Wing Lung Bank Limited
CMB Wing Lung Group:
CMB Wing Lung Bank and its subsidiaries
CMB Financial Leasing or CMBFL:
CMB Financial Leasing Co., Ltd.
CMB International Capital or CMBIC:
CMB International Capital Holdings Corporation Limited
CMB Wealth Management:
CMB Wealth Management Company Limited
Significant Risk Warning
China Merchants Fund or CMFM:
China Merchants Fund Management Co., Ltd.
CIGNA & CMB Life Insurance:
CIGNA & CMB Life Insurance Co., Ltd.
MUCFC:
Merchants Union Consumer Finance Company Limited
CM Securities:
China Merchants Securities Co., Ltd.
CMB YunChuang:
CMB YunChuang Information Technology Co., Ltd. with 100% equity interest held by the Company indirectly
CMB Network Technology:
China Merchants Bank Network Technology (Shenzhen) Co., Ltd. with 100% equity interest held by the Company indirectly
Deloitte Touche Tohmatsu Certified Public Accountants LLP:
Deloitte Touche Tohmatsu Certified Public Accountants LLP (Special General Partnership)
SFO:
Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong)
Model Code:
Model Code for Securities Transactions by Directors of Listed Issuers of Hong Kong Stock Exchange
The Company has disclosed herein the major risks involved in its operations and the proposed risk management measures. Please refer to Chapter III for the details in relation to risk management.
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China Merchants Bank Co. Ltd. published this content on 19 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 March 2021 11:28:03 UTC.