Zhangjiagang Line: Fuanda Fund, China Life Pension and other 9 institutions investigated our company on September 17

On September 18, 2021, Zhangjiagang Bank (002839) issued an announcement that Fuanda Fund Li Zhenglun, Guoshou Pension Yan Cheng, Guotai Junan Asset Management Zhang Shuang, Hexi Investment Geng Rongchen, Jianxin Trust Wu Xiaopeng, Taikang Fund Ji Yixuan, Tianfeng Securities Bank Group Guo Qiwei, Fan Qinglin, Wanjia Fund Huang Tianyi, Galaxy Fund Yin Zeyi investigated our company on September 17, 2021, this survey was conducted by Vice President and Head of Financial Work Chen Jinlong, Deputy Director of the Board of Directors Office Securities Representative Tao Ying, Xue Xiaotong, deputy director of the board office and deputy general manager of the strategy department, and the relevant staff of the board office are responsible for the reception.

The main contents of this survey are:

The survey included two parts: introducing the basic situation of Zhangjiagang and interacting with each other. First of all, Vice President Chen Jinlong briefed the participating investors on the basic situation of Zhangjiagang Bank. Subsequently, the company conducted key exchanges with investors on the operation and planning of Zhangjiagang Bank, and the following is a record of investor inquiries and brief replies: Q: The company's mid-income business has developed well, especially the consignment business. How to grasp the general trend of wealth management and create a differentiated competitive advantage? What are the company's plans and goals for the future in terms of mid-income expansion? A: The Bank attaches great importance to the development of intermediate business, continues to carry out retail cross-selling work, enhances the stickiness of various customer groups, and increases the contribution of medium income. In the face of the full coverage of the Bank's customer base structure and the characteristics of large coverage, it gathers "high-net-worth private bank customers and long-tail customers of savings and wealth management", carries out differentiated marketing, and continuously expands the scale of intermediate business. In the face of high-net-worth private bank customers, according to the Bank's location advantages, strengthen investor relations management, and provide personalized and differentiated products and services to improve customer loyalty. Since the beginning of this year, the Bank has piloted the consignment sales of securities companies and trust private equity asset management products to enhance the competitiveness of the bank's products; Continuously optimize the content of value-added services and provide one-on-one value-added services for high-net-worth private bank customers; In the face of long-tail customers, we will carry out a wide range of inclusive wealth business. This year, the Bank's self-operated wealth management has grown well, and it actively meets the wealth needs of low- and medium-risk customers; Since the beginning of the year, it has signed a strategic cooperation agreement with PICC Property & Casualty Suzhou Branch to exclusively act as an agent of "Su KangBao" health insurance in the city, and actively prepare for the car insurance business, and continuously enrich the wealth product line of inclusive customers. In the future, the Bank will strengthen cooperation with insurance companies and fund companies, increase the customer penetration rate of agency insurance business, strengthen business cooperation with tripartite insurance companies, improve the response speed of both parties, optimize processes, and enhance the customer experience at the channel end; In terms of funds, in view of the characteristics of our customers, we strengthen the introduction and marketing of "fixed income +" fund products, form a differentiated positioning with the Bank's wealth management products, optimize the wealth allocation for customers, help customers increase their wealth, and simultaneously enhance the Bank's revenue contribution. Q: In the first half of the year, the deposit cost ratio has rebounded to a certain extent, whether it is structure or price, how does the company control and reduce the cost of debt? A: In late June this year, after the introduction of the central bank's deposit rate reform policy, the interest rate of new long-term deposits fell, which helped to curb the rise in the cost of interest payments of our bank. At the same time, in order to control the cost of interest payment, our bank has taken the following measures: on the one hand, adjust the product issuance structure, mainly promote deposit products of 2 years and below, optimize the term structure of deposits, and guide the short-term development of customer deposits; On the other hand, by adjusting the FTP price of internal deposits, including increasing the FTP spread of demand deposits and reducing the FTP spread of long-term deposits, business departments and branches are encouraged to optimize the deposit structure, and through auxiliary forms such as assessment and notification, business departments and branches are encouraged to effectively control the cost of interest payment. Q: High asset growth rate caused certain losses to capital, the company's convertible debt-to-equity conversion expectations, and short-term capital replenishment plan? A: In November 2018, our bank issued 2.5 billion yuan of convertible bonds, and in mid-to-late May 2019, it began to enter the equity conversion period, due to the sluggish overall market performance of bank stocks in the past two years, the progress of debt-to-equity swaps was relatively slow, and it has not effectively replenished core Tier 1 capital. In the first half of this year, our bank completed the issuance of 2 billion yuan of perpetual bonds, increasing the capital adequacy ratio by about 1.7 percentage points. Subsequently, in terms of capital replenishment, our bank plans to strive to promote the process of debt-to-equity swap on the one hand; On the other hand, we will further strengthen our management capabilities, focus on improving our operating performance, and enhance the capital strength of our bank by increasing profits and other endogenous capital supplements, and combining exogenous capital supplements at appropriate times.

Zhangjiagang Bank's main business: absorbing deposits from the public; Issuance of short-, medium- and long-term loans; Handle domestic and foreign settlements; Handle bill acceptance and discounting; Acting as an agent for payments and payments and insurance business; Acting as an agent for the issuance, redemption and underwriting of government bonds; Buying and selling government bonds and financial bonds; Engaged in interbank lending; Provision of safe deposit box services; Handle debit card business; Foreign exchange deposits; Foreign exchange loans; Foreign exchange remittances; Foreign currency exchange; Settlement and sale of foreign exchange; Credit investigation, consulting and witness services; Other business approved by the China Banking and Insurance Regulatory Commission.

Zhangjiagang Bank's 2021 interim report shows that the company's main revenue was 2.225 billion yuan, up 4.93% year-on-year; net profit attributable to the mother was 596 million yuan, up 20.9% year-on-year; deducted non-net profit of 584 million yuan, up 23.9% year-on-year; debt ratio was 91.2%, and investment income was 384 million yuan.