China Huirong Financial : ANNUAL REPORT 2018 2019-04-17

CHINA HUIRONG FINANCIAL HOLDINGS LIMITED

中 國 匯 融 金 融 控 股 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

Stock Code : 1290

匯

REPORT ANNUAL

融

WE ARE COMMITTED TO BEING A LEADING COMPREHENSIVE FINANCING SERVICE PROVIDER IN CHINA.

We are dedicated to providing diversified financial services including secured loans, credit loans, internet lending agency services to our customers and to carrying out investment business.

We operate in Suzhou city and the four county-level cities that are governed by the Suzhou city government, or the Greater Suzhou Area, which is the most economically advanced region in Jiangsu Province, one of the most economically developed provinces in China. Our business has been steadily expanding across China.

CONTENTS

Corporate Information

Financial Summary

Chairman's Statement

Management Discussion and Analysis

Directors and Senior Management

Directors' Report

Corporate Governance Report

Risk Management and Internal Control Report

Environmental, Social and

Governance Report

0275 Consolidated Financial Statements

03		and Independent Auditor's Report
	80
04		Consolidated Statement of
		Comprehensive Income

0681 Consolidated Statement of Financial

26	Position
	83 Consolidated Statement of Changes
33
	in Equity

5385 Consolidated Statement of Cash Flows

6586 Notes to the Consolidated Financial Statements

70172 Definitions

176 Glossary

02	China Huirong Financial Holdings Limited
	ANNUAL REPORT 2018

Corporate Information

BOARD OF DIRECTORS

Executive Directors

Mr. Wu Min (Chairman and Chief Executive Officer) Mr. Zhang Changsong (Chief Financial Officer)

Non-executive Directors

Mr. Zhuo You

Mr. Zhang Cheng

Ms. Zhang Shu

Mr. Ling Xiaoming

Independent Non-executive Directors

Mr. Zhang Huaqiao

Mr. Feng Ke

Mr. Tse Yat Hong

COMMITTEE COMPOSITION

Audit Committee

Mr. Tse Yat Hong (Chairman)

Mr. Feng Ke

Ms. Zhang Shu1

Remuneration Committee

Mr. Zhang Huaqiao (Chairman)

Mr. Tse Yat Hong

Mr. Wu Min

Nomination Committee

Mr. Wu Min (Chairman)

Mr. Feng Ke

Mr. Zhang Huaqiao

Technology Finance Business Committee2

Mr. Feng Ke (Chairman)

Mr. Wu Min

Mr. Zhang Changsong

COMPANY SECRETARY

Miss Leung Ching Ching

AUTHORISED REPRESENTATIVES

Mr. Wu Min

Miss Leung Ching Ching

REGISTERED OFFICE

Cricket Square

Hutchins Drive

P.O. Box 2681

Grand Cayman KY1-1111

Cayman Islands

PRINCIPAL PLACE OF BUSINESS IN HONG KONG

23F, No. 238

Des Voeux Road Central

Hong Kong

PRINCIPAL PLACE OF BUSINESS AND HEAD OFFICE IN THE PRC

22/F, 345 Baodai East Road, Suzhou

Jiangsu Province, the PRC

PRINCIPAL SHARE REGISTRAR

Conyers Trust Company (Cayman) Limited

HONG KONG BRANCH SHARE REGISTRAR

Computershare Hong Kong Investor Services Limited

PRINCIPAL BANKS

Jiangsu Bank, Suzhou Branch

Suzhou Bank, Suzhou Branch

AUDITORS

PricewaterhouseCoopers

LEGAL ADVISERS

Mayer Brown

Haiwen & Partners

COMPANY'S WEBSITE

www.cnhuirong.com

STOCK CODE

The shares of the Company are listed on the main board of The Stock Exchange of Hong Kong Limited

Stock Code 01290

1Ms. Zhang Shu has been appointed as a member of the audit committee of the Company replacing Mr. Zhang Cheng with effect from 26 March 2019.

2The Internet Finance Business Committee has been replaced by the Technology Finance Business Committee with effect from 26 March 2019.

China Huirong Financial Holdings Limited	03
ANNUAL REPORT 2018

Financial Summary

		For the year ended or as at 31 December
	2018	2017	2016	2015	2014
	RMB'000	RMB'000	RMB'000	RMB'000	RMB'000
Operating Results
Revenue	305,194	272,353	248,334	375,536	388,832
Profit attributable to equity holders	60,996	50,904	40,078	101,886	165,003
Financial Position
Total assets	2,800,226	3,034,269	3,136,179	2,769,417	2,380,204
Cash at bank and on hand	797,964	941,645	912,349	670,547	855,975
Loans to customers	1,738,283	1,945,652	2,024,425	2,030,053	1,494,248
Total liabilities	903,198	1,180,304	1,336,041	1,002,596	880,091
Net assets	1,897,028	1,853,965	1,800,138	1,766,821	1,500,113

Revenue (RMB'000)

325,000

300,000

12.06%

275,000

250,000

225,000

20172018

Net assets (RMB'000)

Prot attributable to equity holders (RMB'000)

75,000

60,000

19.83%

45,000

30,000

15,000

20172018

Loans to customers (RMB in millions)

1,900,000					2.32%						2,100
1,850,000										2,000
									1,900
1,800,000													-10.66%
1,750,000										1,800
									1,700
1,700,000									1,600
					2018								2018
2017									2017