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.

*

Chongqing Rural Commercial Bank Co., Ltd.*

(a joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock Code: 3618)

2019 THIRD QUARTERLY FINANCIAL INFORMATION

This announcement is made by Chongqing Rural Commercial Bank Co., Ltd. 重慶農村商業銀行股份 有限公司* (the "Bank") pursuant to Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong).

References are made to the announcement of the Bank dated 28 April 2016, the supplemental circular dated 6 June 2016, the announcement dated 17 June 2016, the announcement dated 17 March 2017, the announcement dated 21 March 2017, the circular dated 12 April 2017, the announcement dated 5 May 2017, the announcement dated 12 March 2018, the announcement dated 13 March 2018, the announcement dated 29 March 2018, the circular dated 4 April 2018, the announcement dated 27 April 2018, the announcement dated 26 February 2019, the announcement dated 26 March 2019, the circular dated 4 April 2019, the announcement dated 26 April 2019, the announcement dated 15 August 2019, the announcement dated 6 September 2019, the announcement dated 10 September 2019 and the announcement dated 20 September 2019, in relation to the Bank's proposed A Share Offering (the "A Share Offering") and relevant matters. Unless otherwise defined, capitalized terms used in this announcement shall have the same meanings as defined in the above announcements and circulars.

The full text of the Listing Announcement in Chinese only in relation to the A Share Offering (the "A Share Listing Announcement") will be published by the Bank on the websites of the Shanghai Stock Exchange (www.sse.com.cn), the Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk) and the Bank (www.cqrcb.com) on 28 October 2019.

- 1 -

The financial statements (the "Financial Statements") and its summary and the major operating conditions of the Group and the Bank (excluding its subsidiaries) for the nine months ended 30 September 2019 ("Reporting Period") are respectively set out in the sections headed "I. Key financial data and financial indicators from January to September 2019" and "II. Brief explanation of operating conditions and financial status" under "Section 5 Financial and Accounting Information" and the section headed "2019 third quarterly financial statements of Chongqing Rural Commercial Bank Co., Ltd." in the A Share Listing Announcement. The financial information contained in this announcement prepared in accordance with the Chinese Accounting Standards for Business Enterprises has not been audited.

Furthermore, according to the "Approval of the Issuance of Tier-2 Capital Bonds by Chongqing Rural

Commercial Bank Co., Ltd. from the CBRC Chongqing Regulatory Bureau" (Yu Yin Jian Fu [2016] No. 63) (《中國銀監會重慶監管局關於重慶農村商業銀行股份有限公司發行二級資本債券的批

覆》(渝銀監覆[2016]63)), the "Approval of the Issuance of Tier-2 Capital Bonds by Chongqing

Rural Commercial Bank from the CBIRC Chongqing Office" (Yu Yin Bao Jian Fu [2019] No. 153) (《重慶銀保監局關於重慶農村商業銀行募集發行二級資本債券的批覆》(渝銀保監覆[2019]153

)), "The Decision on Administrative Approval from the People's Bank of China" (Yin Shi Chang Xu Zhun Yu Zi [2016] No. 208, Yin Shi Chang Xu Zhun Yu Zi [2019] No. 79) (《中國人民銀行准予 行政許可決定書》(銀市場許准予字[2016]208號、銀市場許准予字[2019]79)), the "Measures

for the Administration of the Issuance of Financial Bonds in the National Inter-bank Bond Market" (《全國銀行間債券市場金融債券發行管理辦法》) and the "Administrative Procedures for the Issuance of Financial Bonds in the National Inter-bank Bond Market" (《全國銀行間債券市場金融 債券發行管理操作規程》) and relevant regulatory requirements, the Bank shall disclose its unaudited

operating information, financial information and capital management information on a quarterly basis at the websites of China Money (http://www.chinamoney.com.cn) and China Bond (http://www. chinabond.com.cn).

The Group and the Bank's (excluding its subsidiaries) financial statements for the nine months ended 30 September 2019 and its summary prepared in accordance with the Chinese Accounting Standards for Business Enterprises, and the major operating conditions and capital management condition of the Group are as follows:

- 2 -

1. KEY FINANCIAL DATA AND FINANCIAL INDICATORS FROM JANUARY TO SEPTEMBER 2019

Increase/

decrease at

the end of

the Reporting

Period as

compared to

the end of the

30 September

31 December

previous year

Items

2019

2018

(%)

Total assets (RMB million)

1,034,192

950,178

8.84

Owner's equity attributable to

shareholders of the Issuer (RMB

million)

76,843

70,308

9.29

Net assets per share attributable to

shareholders of the Issuer (RMB)

7.68

7.03

9.25

- 3 -

Increase/

decrease in

the Reporting

Period as

compared to

the same period

January to

January to

of the previous

Items

September 2019

September 2018

year (%)

Total operating income (RMB million)

19,991

19,746

1.24

Operating profit (RMB million)

10,619

9,603

10.58

Gross profit (RMB million)

10,626

9,622

10.43

Net profit attributable to shareholders of

the Issuer (RMB million)

8,628

7,335

17.63

Net profit after deduction of non-

recurring profit or loss attributable

to shareholders of the Issuer (RMB

million)

7,834

7,325

6.95

Basic earnings per share (RMB)

0.86

0.73

17.81

Basic earnings per share after deduction

of non-recurring profit or loss (RMB)

0.78

0.73

6.85

Weighted average return on net assets

(%)

11.67

11.06

0.61

Weighted average return on net assets

after deduction of non-recurring profit

or loss (%)

10.60

11.04

-0.44

Net cash flows from operating activities

(RMB million)

33,377

-89,561

-137.27

Net cash flows from operating activities

per share (RMB)

3.34

-8.96

-137.28

Note: The two indicators, weighted average return on net assets and weighted average return on net assets after deduction of non-recurring profit or loss, represent the difference between the amounts of the increase/decrease in the Reporting Period as compared to the same period of the previous year.

- 4 -

  1. BRIEF EXPLANATION OF OPERATING CONDITIONS AND FINANCIAL STATUS
    The assets of the Bank were in good condition and the Bank maintained a steady growth trend. As of 30 September 2019, the total assets of the Bank was RMB1,034,192 million, representing an increase of 8.84% as compared to the end of the previous year, and the owner's equity attributable to shareholders of the Parent was RMB76,843 million, representing an increase of 9.29% as compared to the end of the previous year.
    The major operating businesses of the Bank continued to develop steadily. From January to September 2019, the Bank recorded operating income of RMB19,991 million, representing an increase of 1.24% as compared to the same period of the previous year; from January to September 2019, the net profit after deduction of non-recurring profit or loss attributable to shareholders of the Parent was RMB7,834 million, representing an increase of 6.95% as compared to the same period of the previous year.
    As of the date of signing the A Share Listing Announcement, the Bank's overall operation was in sound condition, its business model and the status of the operating income were stable, no material adverse change has occurred. With no major natural disaster and no significant fluctuation occurred in the capital market, the Bank expected that there would be no material change to the operating results of 2019 year on year.
  2. CAPITAL MANAGEMENT CONDITION
    As of the end of September 2019, capital adequacy ratio, tier 1 capital adequacy ratio and core tier 1 capital adequacy ratio of the Bank on a consolidated basis amounted to 13.65%, 11.18% and 11.17%, respectively.

- 5 -

4.

CONSOLIDATED BALANCE SHEET

30 September

31 December

2019

2018

RMB'000

RMB'000

ASSETS

Cash and deposits with central bank

80,001,989

85,935,176

Deposits with banks

25,669,541

32,208,145

Placement with banks and other financial institutions

134,714,783

138,543,543

Derivative financial assets

100,513

93,990

Financial assets held under resale agreements

5,125,903

6,000,733

Loans and advances released

404,690,156

364,026,148

Financial investments:

Held-for-trading financial assets

20,736,423

15,094,518

Debt securities investments

345,419,476

289,564,720

Other debt securities investments

4,395,919

7,096,739

Other investments in equity instruments

572,790

616,375

Fixed assets

4,602,418

4,841,593

Right-of-use assets

165,716

N/A

Intangible assets

530,136

536,105

Deferred tax assets

5,465,880

4,512,960

Other assets

2,000,549

1,107,165

Total assets

1,034,192,192

950,177,910

- 6 -

4.

CONSOLIDATED BALANCE SHEET (continued)

30 September

31 December

2019

2018

RMB'000

RMB'000

LIABILITIES

Borrowings from central bank

29,043,874

30,454,523

Deposits from banks and other financial institutions

16,828,354

23,500,698

Placements from banks and other financial institutions

28,361,203

28,873,761

Derivative financial liabilities

103,392

83,907

Financial assets sold under repurchase agreements

10,997,190

5,920,678

Deposits from customers

676,855,763

616,166,192

Accrued staff costs

4,641,121

5,625,314

Tax payable

1,391,787

1,355,804

Provision

431,417

307,619

Lease liabilities

150,506

N/A

Bonds payable

181,250,242

159,609,417

Other liabilities

5,766,714

6,571,264

Total liabilities

955,821,563

878,469,177

SHAREHOLDERS' EQUITY

Share capital

10,000,000

10,000,000

Capital reserve

11,897,678

11,897,678

Other comprehensive income

(353,385)

(255,095)

Surplus reserve

10,346,945

10,346,945

General risk reserve

12,634,001

12,225,243

Unappropriated profit

32,317,367

26,093,355

Interests of shareholders of the Parent

76,842,606

70,308,126

Minority interests

1,528,023

1,400,607

Total shareholders' equity

78,370,629

71,708,733

Total liabilities and shareholders' equity

1,034,192,192

950,177,910

- 7 -

5.

BALANCE SHEET

30 September

31 December

2019

2018

RMB'000

RMB'000

ASSETS

Cash and deposits with central bank

79,808,022

85,725,888

Deposits with banks

25,572,096

31,963,890

Placement with banks and other financial institutions

138,860,108

141,969,601

Derivative financial assets

100,513

93,990

Financial assets held under resale agreements

5,125,903

6,000,733

Loans and advances released

368,691,307

332,602,257

Financial investments:

Held-for-trading financial assets

20,736,423

15,094,518

Debt securities investments

345,521,331

289,564,720

Other debt securities investments

4,395,919

7,096,739

Other investments in equity instruments

572,790

616,375

Long-term equity investments

3,013,379

3,013,379

Fixed assets

4,448,034

4,680,971

Right-of-use assets

147,520

N/A

Intangible assets

528,209

534,422

Deferred tax assets

5,323,174

4,371,153

Other assets

1,910,006

965,369

Total assets

1,004,754,734

924,294,005

- 8 -

5.

BALANCE SHEET (continued)

30 September

31 December

2019

2018

RMB'000

RMB'000

LIABILITIES

Borrowings from central bank

28,944,522

30,275,613

Deposits from banks and other financial institutions

17,425,140

24,175,249

Placements from banks and other financial institutions

7,600,111

8,742,272

Derivative financial liabilities

103,392

83,907

Financial assets sold under repurchase agreements

10,997,190

5,920,678

Deposits from customers

675,143,542

614,518,999

Accrued staff costs

4,477,158

5,462,541

Tax payable

1,367,033

1,302,103

Provision

431,397

307,567

Lease liabilities

135,116

N/A

Bonds payable

179,318,270

159,609,417

Other liabilities

2,709,009

4,062,723

Total liabilities

928,651,880

854,461,069

SHAREHOLDERS' EQUITY

Share capital

10,000,000

10,000,000

Capital reserve

11,907,057

11,907,057

Other comprehensive income

(353,385)

(255,095)

Surplus reserve

10,346,945

10,346,945

General risk reserve

12,231,636

11,855,025

Unappropriated profit

31,970,601

25,979,004

Total shareholders' equity

76,102,854

69,832,936

Total liabilities and shareholders' equity

1,004,754,734

924,294,005

- 9 -

6. CONSOLIDATED INCOME STATEMENT

For the nine

For the nine

months ended

months ended

30 September

30 September

2019

2018

RMB'000

RMB'000

I. Operating income

19,990,582

19,746,281

Net interest income

17,307,199

14,488,757

Interest income

33,566,389

29,199,978

Interest expense

(16,259,190)

(14,711,221)

Net fee and commission income

1,991,791

1,600,627

Fee and commission income

2,068,355

1,676,545

Fee and commission expense

(76,564)

(75,918)

Gains on investments

715,480

2,517,872

Changes in fair value (loss)/gain

(67,736)

910,555

Exchange (loss)/gain

11,691

197,811

Gain from assets disposal

7,589

6,449

Other business income

24,568

24,210

II. Operating expenses

(9,371,551)

(10,143,222)

Taxes and surcharges

(152,378)

(165,528)

Business and administrative fee

(4,922,512)

(5,584,828)

Credit impairment losses

(4,296,661)

(4,392,866)

- 10 -

6. CONSOLIDATED INCOME STATEMENT (continued)

For the nine

For the nine

months ended

months ended

30 September

30 September

2019

2018

RMB'000

RMB'000

III. Operating profit

10,619,031

9,603,059

Add: Non-operating income

12,465

33,179

Less: Non-operating expenses

(5,316)

(14,007)

IV. Total profit

10,626,180

9,622,231

Less: Income tax expenses

(1,831,170)

(2,212,079)

V. Net profit

8,795,010

7,410,152

Net profit attributable to

Shareholders of the Parent:

8,627,594

7,335,238

Minority shareholders:

167,416

74,914

VI. Other comprehensive income

(93,114)

(1,199)

VII. Total comprehensive income

8,701,896

7,408,953

- Total comprehensive income attributable to

shareholders of the Parent

8,534,480

7,334,039

- Total comprehensive income attributable to minority

shareholders

167,416

74,914

VIII.Earnings per share

- Basic earnings per share (RMB)

0.86

0.73

- 11 -

7.

INCOME STATEMENT

For the nine

For the nine

months ended

months ended

30 September

30 September

2019

2018

RMB'000

RMB'000

I. Operating income

19,042,771

19,171,710

Net interest income

16,275,639

13,865,562

Interest income

31,811,165

27,930,564

Interest expense

(15,535,526)

(14,065,002)

Net fee and commission income

1,993,064

1,600,431

Fee and commission income

2,067,957

1,675,961

Fee and commission expense

(74,893)

(75,530)

Gains on investments

800,480

2,568,872

Changes in fair value (loss)/gain

(67,736)

910,555

Exchange (loss)/gain

11,691

197,811

Gain from assets disposal

7,384

6,448

Other business income

22,249

22,031

II. Operating expenses

(8,922,726)

(9,803,821)

Taxes and surcharges

(145,972)

(163,160)

Business and administrative fee

(4,785,113)

(5,452,354)

Credit impairment losses

(3,991,641)

(4,188,307)

III. Operating profit

10,120,045

9,367,889

Add: Non-operating income

10,730

31,539

Less: Non-operating expenses

(4,792)

(13,445)

IV. Total profit

10,125,983

9,385,983

Less: Income tax expenses

(1,762,951)

(2,148,052)

V. Net profit

8,363,032

7,237,931

VI. Other comprehensive income

(93,114)

(1,199)

VII. Total comprehensive income

8,269,918

7,236,732

- 12 -

8. CONSOLIDATED STATEMENT OF CASH FLOWS

For the nine

For the nine

months ended 30

months ended 30

September 2019

September 2018

RMB'000

RMB'000

I.

Cash flows from operating activities

Net increase in borrowings from central bank

-

1,804,500

Net increase in deposits from customers and deposits from banks

52,898,438

-

Net Increase in placements from banks and other financial institutions

-

737,711

Net decrease in financial assets held for transaction purposes

-

221,053

Net increase in financial assets sold under repurchase agreements

4,768,805

-

Net decrease in deposits with central bank and banks

14,093,188

9,847,122

Interest, fee and commission income received

26,432,143

23,435,038

Other cash received related to operating activities

1,152,498

3,303,775

Sub-total of cash inflows from operating activities

99,345,072

39,349,199

Net decrease in borrowings from central bank

(1,186,069)

-

Net decrease in placements from banks and other financial institutions

(687,378)

-

Net increase in placements with banks and other financial institutions

(1,450,151)

(50,734,624)

Net increase in financial assets held for transaction purposes

(892,990)

-

Net decrease in deposits from customers and deposits from banks and

other financial institutions

-

(15,696,160)

Net increase in loans and advances from customers

(43,118,518)

(34,584,283)

Net decrease in financial assets sold under repurchase agreements

-

(5,901,239)

Interest, fee and commission income paid

(7,085,906)

(11,736,473)

Cash paid to staff and paid for staff

(4,139,072)

(3,811,807)

Taxes paid

(3,891,137)

(3,990,302)

Other cash paid related to operating activities

(3,516,916)

(2,454,858)

Sub-total of cash outflows from operating activities

(65,968,137)

(128,909,746)

Net cash flows from/(used in) operating activities

33,376,935

(89,560,547)

- 13 -

8. CONSOLIDATED STATEMENT OF CASH FLOWS (continued)

For the nine

For the nine

months ended 30

months ended 30

September 2019

September 2018

RMB'000

RMB'000

II.

Cash flows from investing activities

Recovery of cash received from investments

100,020,243

215,914,474

Net cash received from gains on investment obtained

9,837,284

7,472,215

Net cash received from the disposal of fixed assets, intangible assets

and other long-term assets

11,101

19,309

Sub-total of cash inflows from investing activities

109,868,628

223,405,998

Cash paid for investments

(158,383,451)

(190,388,291)

Cash paid on purchase of fixed assets, intangible assets and other long-

term assets

(287,005)

(250,694)

Sub-total of cash outflows from investing activities

(158,670,456)

(190,638,985)

Net cash flows (used in)/from investing activities

(48,801,828)

32,767,013

  1. Cash flows from financing activities

Cash received from bonds issued

181,333,870

114,190,847

Sub-total of cash inflows from financing activities

181,333,870

114,190,847

Cash paid for distribution of dividends, profits or interest

(6,135,156)

(2,328,212)

Cash paid for redemption of bonds issued

(163,410,000)

(94,320,000)

Cash paid for acquire minority interests of subsidiaries

-

(264,650)

Distribution of dividends to minority shareholders of non-controlling

equity subsidiaries

(40,000)

(24,000)

Other cash paid related to financing activities

(52,644)

-

Sub-total of cash outflows from financing activities

(169,637,800)

(96,936,862)

Net cash flows from financing activities

11,696,070

17,253,985

IV.

Effect of foreign exchange rate changes on cash and cash

equivalents

14,313

35,365

V.

Net changes in cash and cash equivalents

(3,714,510)

(39,504,184)

Add: Balance of cash and cash equivalents at the beginning of the

period

34,637,437

48,608,610

VI.

Balance of cash and cash equivalents at the end of the period

30,922,927

9,104,426

- 14 -

9. STATEMENT OF CASH FLOWS

For the nine

For the nine

months ended

months ended

30 September

30 September

2019

2018

RMB'000

RMB'000

I.

Cash flows from operating activities

Net increase in borrowings from central bank

-

1,834,500

Net increase in deposits from customers and deposits

from banks

52,758,821

-

Net increase in placements from banks and other

financial institutions

-

-

Net decrease in financial assets held for

transaction purposes

-

221,053

Net increase in financial assets sold under repurchase

agreements

5,081,810

-

Net decrease in deposits with central bank and banks

13,914,794

9,945,549

Interest, fee and commission income received

24,525,912

22,121,189

Other cash received related to operating activities

708,767

2,732,494

Sub-total of cash inflows from operating activities

96,990,104

36,854,785

Net decrease in borrowings from central bank

(1,106,229)

-

Net decrease in placements from banks and other

financial institutions

(1,443,495)

(3,192,421)

Net increase in placements with banks and other

financial institutions

(2,069,006)

(51,804,624)

Net increase in financial assets held for transaction

purposes

(892,990)

-

Net decrease in deposits from customers and deposits

from banks and other financial institutions

-

(15,708,910)

Net increase in loans and advances from customers

(38,394,250)

(29,394,775)

Net decrease in financial assets sold under repurchase

agreements

-

(5,901,239)

Interest, fee and commission income paid

(6,550,843)

(11,097,238)

Cash paid to staff and paid for staff

(4,048,725)

(3,738,517)

Taxes paid

(3,750,410)

(3,938,020)

Other cash paid related to operating activities

(3,476,124)

(2,277,855)

Sub-total of cash outflows from operating activities

(61,732,072)

(127,053,599)

Net cash flows from/(used in) operating activities

35,258,032

(90,198,814)

- 15 -

9. STATEMENT OF CASH FLOWS (continued)

For the nine

For the nine

months ended

months ended

30 September

30 September

2019

2018

RMB'000

RMB'000

II.

Cash flows from investing activities

Recovery of cash received from investments

100,105,243

215,989,388

Net cash received from gains on investment obtained

9,839,163

7,472,216

Net cash received from the disposal of fixed assets,

intangible assets and other long-term assets

10,786

18,482

Sub-total of cash inflows from investing activities

109,955,192

223,480,086

Cash paid for investments

(158,485,330)

(190,652,941)

Cash paid on purchase of fixed assets, intangible assets

and other long-term assets

(283,166)

(247,490)

Sub-total of cash outflows from investing activities

(158,768,496)

(190,900,431)

Net cash flows (used in)/from investing activities

(48,813,304)

32,579,655

III.

Cash flows from financing activities

Cash received from bonds issued

179,401,950

114,190,847

Sub-total of cash inflows from financing activities

179,401,950

114,190,847

Cash paid for distribution of dividends, profits or

interest

(6,135,156)

(2,328,212)

Cash paid for redemption of bonds issued

(163,410,000)

(94,320,000)

Other cash paid related to financing activities

(47,419)

-

Sub-total of cash outflows from financing activities

(169,592,575)

(96,648,212)

Net cash flows from financing activities

9,809,375

17,542,635

- 16 -

9. STATEMENT OF CASH FLOWS (continued)

For the nine

For the nine

months ended

months ended

30 September

30 September

2019

2018

RMB'000

RMB'000

IV.

Effect of foreign exchange rate changes on cash and

cash equivalents

14,313

35,366

V.

Net changes in cash and cash equivalents

(3,731,584)

(40,041,158)

Add: Balance of cash and cash equivalents at the

  beginning of the period

34,322,039

48,281,318

VI.

Balance of cash and cash equivalents at the end of

the period

30,590,455

8,240,160

The above English version of the Financial Statements and its summary and the major operating conditions of the Bank is an unofficial translation of its Chinese version. In case of any discrepancies, the Chinese version shall prevail.

For more details of the A Share Offering, please refer to the A Share Listing Announcement which will be published by the Bank on the website of the Shanghai Stock Exchange (www.sse.com.cn) on 28 October 2019.

The Bank will keep the Shareholders and potential investors informed of any further development in relation to the A Share Offering when appropriate.

For and on behalf of the Board

Chongqing Rural Commercial Bank Co., Ltd.*

重慶農村商業銀行股份有限公司*

Liu Jianzhong

Chairman and Executive Director

Chongqing, the PRC, 25 October 2019

- 17 -

As at the date of this announcement, the executive directors of the Bank are Mr. Liu Jianzhong, Mr. Xie Wenhui and Mr. Zhang Peizong; the non-executive directors of the Bank are Mr. Zhang Peng, Ms. Chen Xiaoyan, Mr. Luo Yuxing and Mr. Wen Honghai; and the independent non-executive directors of the Bank are Mr. Yuan Zengting, Mr. Cao Guohua, Mr. Song Qinghua, Mr. Zhang Qiaoyun and Mr. Lee Ming Hau.

  • The Bank holds a financial licence number B0335H250000001 approved by the regulatory authority of the banking industry of the PRC and was authorised by the Administration for Market Regulation of Chongqing to obtain a corporate legal person business licence with a unified social credit code 91500000676129728J. The Bank is not an authorised institution in accordance with the Hong Kong Banking Ordinance (Chapter 155 of the Laws of Hong Kong), not subject to the supervision of the Hong Kong Monetary Authority, and not authorised to carry on banking/ deposit-taking business in Hong Kong.

- 18 -

Attachments

  • Original document
  • Permalink

Disclaimer

Chongqing Rural Commercial Bank Co. Ltd. published this content on 28 October 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 October 2019 23:46:02 UTC