IB: Bear the Responsibility to Build a New Fujian Together

The year of 2016 is the initial year of the 'Thirteenth Five Year Plan'.

Faced with opportunities and risks in economic and financial new normal, IB, a leading financial enterprise in Fujian province, keeps a calm and prudent attitude, and insists on market-oriented and differentiated operation strategies. Its scale of asset ranks first among shareholding banks in China and delivers outstanding performance.

By the end of September 2016, the total asset of IB has reached RMB 5.82 trillion, up by 9.78% compared with the beginning of the year; the net profit attributing to the parent company has ran up to RMB 43.982 billion with a YOY growth of 6.7% and total ROA and weighted net ROA were respectively 0.8% and 14.11%, remaining excellent in the industry; cost-income ratio was 20.49%, ranking second among Top 50 World Banks; it was also listed into '2016 top 50 Most Profitable Companies among Fortune Global 500 '.

The latest authoritative global rating in 2016 reveals that IB ranked 32th among 'Top 1000 World Banks' in terms of Tier 1 capital, up by 4 positions over last year; ranks 195th among Fortune Global 500 Companies and is among the top 200, up by 76 positions, and becomes the fastest growing bank; ranks 59th in Forbes Global 2000, up by 14 positions over last year. In authoritative media appraisals announced recently, IB received 'Financial Holding Group with Outstanding Competitiveness', 'Outstanding Commercial Bank in Asia', 'Best Shareholding Bank', 'Outstanding Chinese-funded Bank', 'Outstanding Innovative Bank' and other awards respectively.

As the only Fujian-based national commercial bank, IB keeps its goal in mind, repays the society, and spares no effort to build a new Fujian featuring flexible mechanisms, excellent industries, well-off life and beautiful ecology. It focuses on the central task of 'gaining a new high and build a new Fujian', provides strong support for major strategic businesses and projects concerning people's well-being in Fujian, gives full play to functions of finance to sustain the real economy, and bears the responsibility as a leading financial enterprise in Fujian.

This year IB established Fujian General Office with Tao Yiping, the governor of IB as the president and many deputy governors as CEOs. As an institution of IB Group that coordinates and promotes financial businesses in Fujian province, it coordinates all financial resources of the Group in a unified way, and strengthens financial service for Fujian with regard to systems, mechanisms, operation and management.

According to statistics, during the first 11 months this year, IB granted a total of RMB 288.6 billion to Fujian province through various financing channels including traditional credit, non standard debt, municipal bond investment and bond underwriting. By the end of November, all kinds of financing balance have reached RMB 326.8 billion. Over the past three years, IB has paid a total of over RMB 45 billion in tax and ranked first concerning tax among Fujian enterprises for many consecutive years.

Increase financial supply and give impetus to economic transformation and upgrading

A number of manipulators are being assembled, and various types of robots with functions of painting, assembly, spot welding and sorting take shape rapidly. In spite of overcapacity, the output value of Quanzhou Vibot Industrial Robot Institute Co., Ltd. (hereinafter called 'Quanzhou Vibot') this year is expected to see an increase of 35% over last year and its orders have extended to next year.

Quanzhou Vibot is a high and new technology enterprisecommitted to R＆D, production and sales ofindustrial numerical control systems and industrial robots. 'Our significant growth should be owed to support from IB.' Cai Weiqiang, GM of Quanzhou Vibot, said that the company was in a financing bottleneck due to no mortgage and weak guarantee. IB created intellectual property right pledge business and loan business for high-tech enterprises, and granted a loan of RMB 4.5 million, breaking the shackles of funds for the development and upgrading of the company.

Manufacturing sector is the main 'battlefield' of supply-side structural reform. In August 2015, after Fujian's Implementation of 'Made in China 2025' Plan had been promulgated for a month, IB released a plan to support intelligent manufacturing industry in Fujian province, aimed at offering financing to four types of enterprises, i.e. intelligent equipment manufacturing, intelligent system software R&D, intelligent transformation of traditional industries and intelligent equipment industrial park construction, and helping enterprises with their quality and efficiency improvement. As of the end of November 2016, IB has approved credit of RMB 42.24 billion for intelligent manufacturing industry in Fujian province and has accumulatively granted RMB 27.5 billion, providing strong support for upgrading of a number of intelligent manufacturing enterprises, such as J-tech CNC Technology Co., Ltd., Billion Poly Fiber Technology Co., Ltd. and Ningde Amperex Technology Co., Ltd.

'Fill the gap' is an important task of supply-side structural reform in Fujian province. IB actively connects Fujian' plan of 'fill the gap' key projects, issued the Implementation Opinions on Providing Financial Services to Support 'Fill the Gap' Key Projects, focus on infrastructure, emerging industries and social welfare, and plans to invest another RMB 50 billion to support the first batch of 'fill the gap' key projects in Fujian province. As of the end of November 2016, IB has stored 157 projects in 'fill the gap' intention sand table of Fujian province, has approved 64 programs, has granted credit of RMB 31.178 billion, and has invested RMB 2.3 billion in 'fill the gap' key projects including Putian CPTF Optronics Vibrant Display Technology sixth-generation panel line, Sanming waterproof and drainage series and Xiamen No.1 rail transit.

Speeding up government-earmarked industrial fund is an essential move of supply-side structural reform. Fujian issued A New Round of Special Plans for Enterprise Technology Upgrade at the end of last year, IB actively followed the plans. In July, IB joined hands with Fujian Provincial Economic and Information Technology Commission and Fujian Provincial Bureau of Finance to set up 'Investment Fund for Fujian Enterprise Technology Upgrade' with an initial scale of RMB 8 billion and a valid term of 10 years. Now it has provided 13 funds, and has granted RMB 1.348 billion to projects such as FDT 'small and medium-sized module automatic production line transformation and capacity improvement project', Zhongjin New Materials 'PA6 expansion project' and Changyuan Textile 'technology upgrade project to enhance core competitiveness of manufacturing industry'. In October, IB and Fujian Provincial Department of Finance co-established 'Fujian Province's Public-Private Partnership (PPP) Earmarked Fund' with a total scale of RMB 20 billion. At present, it has 6 projects in store with a planned investment of RMB 6 billion; IB in cooperation with Fujian Ocean and Fisheries Department and CCCC Shanghai Dredging Co., Ltd. co-initiated special industrial fund for marine economic construction with a scale of RMB 10 billion, providing financial support for Fujian's marine economy.

In Quanzhou where private economy prospers, IB and Quanzhou municipal government co-established 'high-tech enterprise development fund' with a total scale of 1.5 billion, providing guarantee-free financing services for local high-tech enterprises; IB, in cooperation with Jinjiang municipal government, helped launch the debt stock linkage model help Jinjiang industrial venture capital investment earmarked fund with an initial scale of RMB 0.5 Billion, guided social capital to invest in strategic emerging industries in Jinjiang including intelligent equipment manufacturing, and promoted the transformation and upgrading of traditional industries.

IB takes advantage of multiple financial licenses and diversified operation, makes use of tools including credit, investment banking, trust and leasing, actively follows major strategic layout of Fujian province, and offers endless finance to the real economy:

IB offered credit of RMB 122.311 billion to nine major fields, i.e. transportation, new urbanization, energy engineering, hydraulic engineering, high-tech and digital engineering, industrial development, the development of modern agriculture, exchange between Fujian and Taiwan as well as green ecology. And the financing balance was RMB 39.732 billion.

IB expanded financing channels for enterprises in Fujian through municipal bond and investment banking underwriting business. Since the beginning of this year it has accumulatively invested RMB 44.85 billion in bonds of local governments, and has accumulatively underwritten debt financing tools of RMB 40.359 billion; it became the lead underwriter of Fujian's first DFI business, and issued ultra short-term financing bonds of 1 billion for Fujian Investment & Development Group with a coupon rate of 2.76% and the lowest price among regional state-owned enterprises with same rating and same period concerning short-term financing bonds...

IB Trust, a subsidiary of IB, provided overall trust finance of RMB 90.477 billion for businesses in Fujian through stand-alone trust and collective trust, vigorously supporting over 30 large-scale enterprises including Fujian Energy Group; IB Financial Leasing Company accumulatively offered leasing financing of nearly RMB 6.9 billion for businesses in Fujian through innovative business models such as 'leasing after purchase' and 'direct leasing plus lease-back'; IB Fund established housing fund mortgage backed securities such as Xingqian II and Xingqian VI in cooperation with Sanming and Quanzhou housing fund center, and set up Xiamen Municipal Development Fund with Xiamen Rail Transit Group, guiding fund to the real economy.

Strengthen innovation-driven strategy and invigorate the development

A series of national strategic deployments such as Fujian FTZ and Haisi Core Area bring vitality to Fujian province. IB gives full play to the role of FTZ as an innovation center, vigorously advances product and service innovations, and serves the real economy in a targeted way.

'IB offers low-cost foreign currency outward bill business for our innovations in export business. Together with foreign exchange option and foreign exchange settlement and sales, the cost slumped to less than 4%, quite lower than that of domestic loan.' Liao Xinghua, Deputy General Manager of Fuzhou Light Industry Import&Export Co., Ltd., one of the top ten export enterprises in Fuzhou, benefited from IB's FTZ business innovations.

After Fujian FTZ was established, IB adheres to customer-oriented principle, actively explores diversified cross-border financing channels, set up three types of cross-border financial products system covering 'cross-border settlement and trade financing', 'cross-border investment and financing' and 'cross-border hedge appreciation', provides low-cost cross-border financial service for export of enterprises like Fuzhou Light Industry Import&Export Co., Ltd., and satisfies clients' various needs of 'going out'.

Due to unique geographical advantages, Fujian FTZ was made an open and innovative pilot of cross-Strait financial cooperation by the State Council with special advantages. IB seized this opportunity, launched free trade account (FT account), opened local and foreign currency capital pool, increased the use of cross-border RMB, actively participated in market-oriented development of interest rate, thus an increasing number of entities can benefit from FTZ.

Xiangyu Group, a Xiamen enterprise in FTZ, was one of the beneficiaries. Fujian started cross-border RMB loan pilot for Taiwan. IB, in cooperation with Taiwan Shanghai Commercial&Savings Bank, borrowed a cross-border RMB loan of 18 million from Taiwan for Xiangyu Group through financing guarantee with a time limit of one year and an interest rate of 3.75% (down by 1.1% over the benchmark interest rate). The loan amount did not occupy the corporate external debt index, greatly reducing its financing cost.

After Fujian FTZ relaxed the access of opening centralized operation and management business of foreign exchange capital for multinational companies, IB immediately designed a centralized operation and management plan of foreign exchange capital for Coland Group, pooled foreign exchange funds of its nine domestic and overseas companies to IB under IB's unified management. This greatly improved its efficiency of use of foreign exchange funds, and reduced its financial cost.

FTZ business provided convenience to Taiwanese-funded Fujian Qinglu Real Estate Co., Ltd. as well. The moment FTZ promulgated 'willingness settlement of foreign exchange capital', IB launched relative businesses and satisfied the company's needs of frequent overseas funds exchange settlement. 'Now it is quite convenient to deal with willingness settlement of capital. One can make a settlement exchange of foreign currency into RMB in a lump sum, avoiding the loss from exchange rate fluctuations. It can also be combined with businesses such as wealth management to increase profit, so this can achieve two advantages at one stroke.' Lin, manager of the company's Finance Department, said excitedly.

Meanwhile, IB also actively provided a package of financial services including international settlement, trade financing, credit financing and foreign exchange rate hedging for several Taiwanese-funded enterprises such as Southeast Motor, CPTF and TPVAOC, and facilitated trade, investment and financing of Taiwanese-funded enterprises.

Explore green finance and co-build beautiful ecology in Fujian

Fresh Fujian is a highlight of Fujian province. From the first national ecological civilization demonstration area to the first national ecological civilization experimental area, Fujian vigorously advances ecological civilization construction. As China's first equator bank and the forerunner and leader in green finance in China, IB makes an effort to build an ecological Fujian and wonderful lives with deep emotion toward Fujian province and its people.

Xiamen pumped-storage power station project which was just launched on December 8th is the largest one under construction in Fujian and also a key project in Fujian '13th Five-Year Plan'. IB has approved credit of RMB 0.5 Billion and granted the first loan of RMB 17 million for the project, providing funds for the safe and stable operation of Fujian power grid, strengthening ecological environmental protection, and improving absorption of clean energy in Fujian.

'Blue mountains and green waters are also our treasure'. In the eyes of Zhou Aimin, a forestry farmer in Yong'an County, Sanming city, 'beautiful ecology' and 'rich life' are of equal importance. He got a 15-year mortgage of RMB 2 million form IB with forests of about 86.66 hectares as the pledge and solved problem of funds in forestry operation. With Sanming city as a pilot, IB launched the first forestry mortgage in China including 'company forestry pledge loan' and 'individual forestry pledge loan', supporting forestry farmers in 'buying woodland like buying houses' and helping a majority of forestry farmers gain wealth from forests. This year it has accumulatively granted forestry mortgage loans of RMB 1.9 billion. By the end of November the loan balance has amounted to RMB 2.58 billion.

IB has formed a complete and multifarious green financial product chain. It keeps making innovations and upgrading, makes use of diversified financial products, and meets various financial needs of corporate customers in the field of energy conservation and environmental protection. This is a 'new normal' of IB's green financial service.

As of the end of November 2016, IB has offered financing of over RMB 55 billion to green finance projects such as Fujian Ethylene refining integration project, environmental-friendly bus project of Fuzhou bus system, Pingtan Beicuo power generation through waste incineration project, Xiamen Huanchuang solid waste and crushing equipment production project and Gutian sewage treatment plant project. The balance has reached RMB 22.6 billion, up by RMB 6.6 billion compared with the beginning of the year. By estimates it can save 4.37 million tons of coal equivalents, reduce emission of carbon dioxide of 11.55 million tons, COD of 70 thousand tons, ammonia nitrogen of 3800 tons, sulfur dioxide of 13.7 thousand and nitrogen oxide of 6400 tons, and reuse solid waste of 1.52 million tons each year. IB Financial Leasing Company, a subsidiary of IB, has accumulatively granted 'green leasing' projects of RMB 1.422 billion.

Apart from financing, IB also actively offers intelligence to improve Fujian green financial system. In order to promote carbon emission permit trading system in Fujian, the bank submitted Suggestion on Building Carbon Emission Permit Trading System in Fujian to Fujian province; it was the first to sign a strategic cooperation agreement with Strait Equity Exchanger, and assisted in drawing up Fujian carbon emission permit trading pilot plan, and provided intellectual support for price mechanism, liquidity, financing function and access rules of carbon market in Fujian.

Customize a 'combination' and support small and micro businesses

'This year Typhoon Meranti, a 15-grade strong typhoon, made landfall in Xiamen and caused a power failure in Xiamen Island. Computers couldn't work but our payment was not interrupted. Clients could make payments on 'IB Butler' via mobile phones, so the business proceeded as usual!' Up to now, Weng Yayan, head of Xiamen Ameson New Material Technology Company, is still full of praise for mobile payment function of 'IB Butler'.

The above-mentioned 'IB Butler' is a kind of corporate mobile payment product designed for micro, small and medium-sized businesses by IB in April 2016, which combines account management, financial audit, transfer and remittance, password creation, account search and mobile office, supports on-site transfer and remittance without any commission, improves operation efficiency and lowers financial costs for enterprises. By the end of November 2016, 'IB Butler' has signed over 30 thousand clients, and has accumulatively completed transactions of RMB 35 billion. Over the past seven months, it has saved commissions of nearly RMB 3.5 million for clients.

Fujian is a province featuring enormous small and micro businesses and prosperous private economy. Faced with economic depression, small and micro businesses longed for invigorating themselves through financing. IB used a 'combination' to solve difficult and expensive financing for small and micro businesses and helped them out.

A private clothing enterprise in Fuzhou had been striving to be a general agency of a German men's clothing brand in Fujian, but it was worrying over a lack of self-owned fund. IB tailored 'Easy & Quick Loan plus Consecutive Loan plus Trading Loan' portfolio financing plan, finished all approval procedures of loan within three days and made a 'Easy & Quick Loan' of RMB 2.8 million. Subsequently, it provided 'Trading Loan' free guarantee financing of RMB 0.7 million and supporting 'Consecutive Loan'. At last, the enterprise succeeded in being the general agent of that brand.

'Easy & Quick Loan', 'Consecutive Loan' and 'Trading Loan' are called a product package for small and micro businesses. They're a special product series for small and micro businesses launched by IB with regard to financing characteristics of 'short time, small amount, frequent and urgent needs' of small and micro businesses. 'Easy & Quick Loan' meets easy and quick needs in financing of small and micro businesses, and a loan will be approved within three days; clients of 'Consecutive Loan' are not required to repay the capital upon expiry and their pressure of repayment is reduced through perfect connection of getting a loan and repaying the loan; 'Trading Loan' requires no mortgage (pledge) and verifies the amount of financing for a client's daily settlement and deal records, thus the client can get a loan easily.

In addition to this, IB also launched innovative products such as 'Start-up Loan' for start-up small and micro businesses, 'Circulating Loan' that supports online self-service borrowing/repaying funds and using funds in a circular way, 'Honest and Easy Loan' with a longer credit period, and 'Taxation Loan' without guarantee based on honest taxation information, in order to reduce burden of interest rate for small and micro businesses and solve problems of pledge and guarantee.

The bank also set up specialized institutions or characteristic industrial centers in agricultural areas with prominent industrial advantages that draw much attention, and carried out specialized and centralized operation. It advanced characteristic 'agriculture, rural areas and farmers' small and micro businesses cluster marketing, built over 10 marketing clusters including Quanzhou tea leaves, Zhangzhou flowers, Ningde aquaculture, Zhenghe bamboo and wood processing, and tailored comprehensive financial solutions for enterprises in the clusters.

By the end of November, IB's small and micro businesses clients with international caliber in Fujian have reached 75 thousand in number, and the loan balance has amounted to RMB 90.868 billion. Nearly 600 clients in Fujian were beneficiaries of the product package for small and micro businesses with loan balance of RMB 1.827 billion.

Obtain reasonable profits and bring benefits to the stakeholders and build 'IB model' of inclusive finance

There's an 'IB Bridge' in Xiabuyang village, Zhenghe county, a national poverty-stricken county in northern Fujian mountainous areas, 15 meters in length and 5 meters in width, so the locals have no need to wade across the river; 'IB Canal' in Banyuan village, over a thousand meters in length, can irrigate more than 13.33 hectares of farmland...Spreading inclusive finance to poverty-stricken villages and families showed IB's care for the locals.

To implement Fujian's 'targeted poverty alleviation' arrangements, IB conducted product poverty alleviation, industrial poverty alleviation, channel poverty alleviation, education poverty alleviation as well as fixed-point poverty alleviation, and the whole group strengthened financial supply for poverty-stricken areas. It granted special poverty alleviation funds to support poverty alleviation projects of over 20 counties in our province; it is always committed to poverty alleviation work in Zhenghe county, and selects business backbones to work in villages, makes regular investment in local water conservancy, bridges and roads per year, and leads the villagers out of poverty; it strengthens credit input in local characteristic industries and advantageous enterprises credit, provided a ten-year loan of RMB 0.36 billion for Zhenghe Tongxin Economic Development Area Construction Investment Company, with an interest rate down by 30%, used for infrastructure construction in this area, and granted loans of RMB 0.7 billion to nearly 30 local enterprises.

In regions linked to people's livelihood that is the focus of government, IB's inclusive finance extends to the grassroots.

In Fujian Maternity and Child Health Care Hospital, a pregnant woman put money into her medical card via 'Maternity and Child Health Care in Hand' APP easily. 'When the balance of the card was insufficient, in the past, I had to queue up at the payment window on the first floor. Now it is so convenient!' IB's 'smart medical treatment' financial solution enables people to enjoy service in seconds. IB relies on 'Bank-hospital Pass', 'Health Pass' and 'Mobile Medical Treatment', explores a new service model 'Internet plus Medical Treatment plus Finance', and builds smart medical treatment platform for hospitals. On this platform, patients can make appointments, get the ticket and wait to see the doctor, pay outpatient fees, inquire the report, put money into medical cards, and pay hospitalization expenses via mobile phone, making it easier for patients to get medical service. In Fujian province, IB has launched 'smart medical treatment' projects for 15 hospitals in 9 cities.

Caring the old is another aspect of IB's inclusive finance. IB launched 'Enjoyable Life', China's first elderly care financial solution designed for the old, which integrates product customization, health management, legal consultation and property guarantee as one, and offers value-added services and specific guarantee including medical care, cultural entertainment, legal assistance and University for the Elderly. IB also effectively combines community bank and elderly care finance, and the elderly can have easy access to the service. Currently, IB has opened 78 community branches in Fujian and has served more than 3.15 million old-age clients. Comprehensive financial assets under IB's management have exceeded RMB 85.3 billion.

While developing businesses, IB is also committed to repaying the society and supporting charity cause. It makes both regular donation and disaster assistance, and has formed a charity mechanism featuring 'education donation', 'disaster fund' and 'poverty alleviation fund'. According to incomplete statistics, IB has made donations of more than RMB 120 million over the past three years. In Fujian, IB set up 'IB Scholarship for Next Generation' from 2000 and 'IB Charity Grant' from 2007. It has accumulatively made donations of nearly 23 million for over 8000 poor students to help them finish their education; IB Trust established Fujian's first charitable trust and the funds raised are mainly invested in three major fields, i.e. 'elderly care, education and poverty alleviation'.