Chairman's annual report speech| Wang Tianyu of Bank of Zhengzhou: Bravely embrace digital transformation and embrace the reform of science and technology finance

The tide rises and falls, but it is not broken, and the harvest is full of flowers for another year.

On March 30, the Bank of Zhengzhou released its 2020 operating results, and Chairman Wang Tianyu said in his annual report speech that in 2020, we climbed over the hills, rolled stones up the mountain, maintained concentration, activated the momentum, exerted synergy, and handed over a steady "report card" to shareholders.

According to the annual report, as of the end of the reporting period, the total assets of Bank of Zhengzhou were 547.813 billion yuan, an increase of 9.46% over the end of the previous year, and the total principal amount of loans and advances issued was 237.959 billion yuan, an increase of 21.46% over the end of the previous year. Achieved operating income of RMB14.607 billion, an increase of 8.30% year-on-year, and profit before provision of RMB11.197 billion, an increase of 14.22% year-on-year.

"The Bank of Zhengzhou is like a big ship ready to go, the unreserved trust of the majority of shareholders has laid the anchor for us to let go, the dependence of thousands of customers has set the beacon for us to set sail, and the dedication of all employees has created our double oars to climb the tide." Wang Tianyu said.

He pointed out that the past year was the "closing year" of the bank of Zhengzhou's five-year strategic plan (2016-2020), which was refined and purified to achieve the transformation from "clay" to "porcelain".

"It is our duty to guard the land, and we are more dedicated to serving the real economy." Wang Tianyu said that as a local small and medium-sized bank, Bank of Zhengzhou is rooted in the depths of the vast Henan region and tirelessly promotes the positive interaction between finance and regional development and the real economy. Formulate a plan to support the high-quality development of the manufacturing industry, focus on promoting people's livelihood projects that are in line with the national policy orientation, and formulate action plans to support the development and expansion of private enterprises, with a balance of 89.129 billion yuan in loans for private enterprises as of the end of the reporting period, an increase of 8.377 billion yuan over the end of the previous year.

Looking forward to the future, Wang Tianyu said that the tide of the times is wrapped in us to new opportunities and challenges, the de-banking of young customers is an indisputable fact, and the transformation to "light" also requires us to bravely embrace digital transformation and embrace the reform of science and technology finance.

The trend of ambition is far-reaching. He stressed that wonderful things must be done, and success will only favor those who are firm and enterprising, and will not wait for those who hesitate and fear difficulties. In the new year, we will conform to the general trend, respect the law, carry forward the spirit of "serving the people's widow cattle, innovating and developing pioneering cattle, and struggling hard old cattle", and write a new chapter with hard work.

The following is the full text of the annual report speech:

Time sequence changes, dreams move forward. Along the way, bank of Zhengzhou has always had a clear positioning and cognition of itself, and has opened up a route suitable for its own development. In 2020, we have gone all the way on the road of high-quality development, adhered to our hearts, maintained our confidence, and demonstrated our determination.

The tide rises and falls, but it is not broken, and the harvest is full of flowers for another year

In 2020, we climbed over the hill and rolled stones up the hill, maintained our concentration, activated the momentum, exerted our synergy, and handed over a solid "report card" to shareholders. As of the end of the reporting period, Bank of Zhengzhou had total assets of RMB547.813 billion, an increase of 9.46% over the end of the previous year, total principal amount of loans and advances of RMB237.959 billion, an increase of 21.46% over the end of the previous year, and total principal amount of deposits absorbed of RMB314.230 billion, an increase of 8.65% over the end of the previous year. During the reporting period, the operating income was RMB14.607 billion, an increase of 8.30% year-on-year, and the profit before provision was RMB11.197 billion, an increase of 14.22% year-on-year.

Bank of Zhengzhou is like a big ship ready to go, the unreserved trust of the majority of shareholders has laid the anchor for us to let go, the dependence of thousands of customers has set up a beacon for us to set sail, and the efforts of all employees have created our double oars to bravely climb the tide.

We are more actively promoting high-quality development. The past year has been the "closing year" of the Bank of Zhengzhou's five-year strategic plan (2016-2020), which has been refined and purified to achieve the transformation from "mud billet" to "porcelain". We completed the non-public issuance of 1 billion A-share shares, supplementing the Bank's core Tier 1 capital of RMB4.632 billion, "soldiers and horses" are coming, "grain and grass" first; making full use of the qualifications of first-level dealers and market makers in the open market, the total amount of underwriting and distribution in the whole year exceeded RMB100 billion for the first time, and the scale of bond and capital transactions exceeded RMB10 trillion; solidly promoted the "Ten Practical Matters", the seven village and town banks controlled and participated in by the Bank completed the core system integration ahead of schedule, and the construction of risk lines made outstanding progress. The capital matching business of the Golden City Line has been exceeded, and the public-private linkage application scenarios and product linkage solutions have become more mature; accelerate the deep integration of scientific and technological innovation and business development, set up a support center for public, retail and risk technology, launch a long-term mobile banking, set up 55 innovative projects and put into production 33 projects; elaborately prepare a new round of strategic development planning and implementation sub-planning, involving 14 sectors and 35 branches, and establish a regular review mechanism, and the implementation of the plan is carried out in an orderly manner.

It is our duty to guard the land, and we are more dedicated to serving the real economy. As a local small and medium-sized bank, Bank of Zhengzhou is rooted in the vast depths of Henan and tirelessly promotes the positive interaction between finance and regional development and the real economy. We vigorously support the construction of key areas and weak links in the national economy, focus on the transformation and upgrading of the manufacturing industry in Henan Province, formulate a plan to support the high-quality development of the manufacturing industry, strive to promote the development of strategic emerging industries, and actively promote the prosperity of cultural and creative, scientific and technological, tourism and other industries; increase the intensity of bank-government cooperation, focusing on promoting municipal infrastructure, affordable housing, and public service people's livelihood projects that conform to the national policy orientation; formulate action plans to support the development and expansion of private enterprises, launch 25 measures, and release 340 households." Non-housing non-platform " customer white list, as of the end of the reporting period of private enterprise loan balance of RMB89.129 billion, an increase of RMB8.377 billion over the end of the previous year.

By doing good, we build our identity more precisely. Consumption is the "accelerator" to promote economic growth, we spare no effort to promote the transformation of retail business, orderly promote the reduction of debt costs, take salary distribution, trade union membership cards, etc. as the starting point to dig deep into the customer base, build a bank-level private bank rights and interests platform, launch the "wealth manager" platform, launch the "Zhengyin Aoying Card" and other co-branded credit cards, build a four-in-one channel ecology, and expand the fan base and circle of friends of Bank of Zhengzhou. Small and medium-sized enterprises are our closest growth partners, we are always committed to breathing and developing together with small and medium-sized enterprises, making good use of policies such as inclusive small and micro credit loan support plans, deferred principal and interest payments, etc., actively promoting product innovation and upgrading such as "housing e finance" and "E loan", launching a new retail credit system, using science and technology finance as a "driver", launching the "Qianfan Plan", and striving to support thousands of technology-based small and medium-sized enterprises in the next three years. Zhengzhou is located on the edge of the Yellow River, the hinterland of the Central Plains, we insist that the transportation and logistics location advantages do not relax, reposition the transaction bank, organize 5 bank-enterprise exchange meetings, product promotion meetings, launch the "cloud logistics" version 2.0, create a new model of online freight platform services, hold the "Fourth China Commercial Logistics Bank Alliance Summit", and strive to build a benchmark bank for commercial logistics.

With a firm baseline, we are more cautious about managing risks. Bank of Zhengzhou has entered the "fast lane" of development in the past five years, with H-share listings in 2015 and A-shares listings in 2018, the road is fast, but there are also some problems. We have painstakingly pondered the pain, faced the problem squarely, expanded our thinking and changed the method in a timely manner, established a large-scale asset management center, classified and disposed of risk assets in a hierarchical and classified manner, strictly implemented the management of concentration limits, and comprehensively used means such as collection, reorganization, write-off, and batch transfer, and the intensity of risk disposal and resolution has increased unprecedentedly. We persevered, committed to winning the battle to sweep away the chaos, comprehensively carried out due diligence, vigorously grasped negative models, completed 4 batches of bad liability investigation, held a compliance meeting of the whole bank, issued "thirteen high-pressure lines" of employee behavior, issued opinions on the implementation of joint prevention and control of letters and petitions, cases, and public opinion, carried out "mine clearance action" for hidden danger investigation, carried out party committee inspections of 15 branches, completed 14 special audits, and 10 routine audits.

With concerted efforts, we fulfill our responsibilities more sincerely. At the beginning of 2020, the epidemic suddenly struck, and to this day, the global epidemic is still spreading, and in this war "epidemic", China has shown extraordinary institutional, political and organizational advantages. At present, we have quickly launched the epidemic prevention response mechanism, grasped the epidemic prevention and anti-epidemic on the one hand, carried out employee platooning, distributed anti-epidemic materials, introduced measures to facilitate the people and benefit enterprises, organized donations and materials, launched voluntary activities such as free blood donation, opened up the "elevated" of donation of all channels of love, and did the support guarantee behind the "most beautiful retrograde"; on the one hand, we grasped the resumption of production and work, opened up financial green channels, issued guidance to support enterprises to resume work and production, explored the impact of the epidemic on the production and operation of enterprises, classified help for one household and one policy, and actively reduced financing interest rates. Special re-loans were issued to enterprises in difficulty, principal and interest repayment deferred, and a total of RMB5.6 billion of low-interest "resumption loans" were issued to 3,325 small and micro enterprises, fully ensuring that enterprises tide over the difficulties.

The clouds are cirrus, but the change is unchanged, and our direction is the sea of stars

"Spring urges a thousand trees to hair, day dyeing Kyushu new". At the beginning of the third decade of the 21st century, we deconstructed and reconstructed ourselves, strengthened the bright road of high-quality development, rolled out a new strategic planning grand plan, established the strategic vision of "a leading bank in the value of high-quality development", and strived to create value for customers, shareholders and brands.

Good at breaking, and shining a sword to Shen Ke. Our most important thing is to dissolve the burden of history and start again with light loads. In the past, we won the speed, rapid development for us to seize the opportunity, but also brought a lot of hidden risks, the next step we must be based on reality, recognize the facts, effectively resolve the bad stock, the historical burden that restricts the development of the thorough clear, out of the clear, scraping the bones to cure the poison is bound to be painful, but we believe that "although the road is far away, it will come, although it is difficult to do, it will be done."

Proficient in transformation, reduce the burden on reloading. Our magic weapon for victory is to accelerate the transformation of light capital, abandon the scale complex, and comprehensively refine. We must realize the transformation from "heavy" to "light" from thought to action, emphasize connotative development, optimize the structure of assets and liabilities, increase the proportion of revenue, do more with the same or even less capital, make our balance sheet structure healthier, and use endogenous profits to drive sustainable development.

Dare to innovate and dredge the veins for strengthening the body. The tide of the times is wrapped in us to new opportunities and challenges, the de-banking of young customers is an indisputable fact, and the transition to "light" also requires us to bravely embrace digital transformation and embrace the reform of science and technology finance. Characteristics, differentiation to create core competitiveness, we want to be a "business and trade logistics bank", "small and medium-sized enterprise financial service experts", "boutique citizen bank", we must rely on the integration of science and technology and business, break the business boundary, forge long chain, make up for shortcomings, and inject new momentum into development.

Willing to shape, cultivate temperament for breaking the cocoon. In the corners and crevices that individuals cannot reach, we must irrigate with the living water of corporate culture, so that corporate culture is attached to each employee's body, and form conditioned reflexes and muscle reactions when overcoming difficulties. We firmly adhere to the route of high-quality development, build a cultural temperament of "compliance, collaboration, innovation, enterprising and inclusiveness", encourage innovation and hard work, establish a fault-tolerant mechanism, and we look forward to the quiet beauty of "clear water surface, one wind and one wind".

The trend of ambition is far-reaching. We believe that the wonderful must be done, the glory is never waited for, success will only care for the firm, the enterprising, will not wait for the hesitant, afraid of difficulties. In the new year, we will conform to the general trend, respect the law, carry forward the spirit of "serving the people's widow cattle, innovating and developing pioneering cattle, and struggling hard old cattle", and write a new chapter with hard work.