|
Annual Report of the Year of 2000
| China Tian Hua Zheng (Jing) Audit (2001) No. 036 Industrial and Commercial Bank of China:
We have audited the accompanying consolidated balance sheet of Industrial and Commercial Band of China as of December 31,2000,the related consolidated statement of profit and loss and the consolidated cash flow statement for the year then ended. These financial statements are the responsibility of the management of Industrial and Commercial Bank of China. Our responsibility is to express an audit opinion on these financial statements based on the audit range regulated by the business engagement. Our audit was conducted in accordance with the Independent Auditing Standards of Chinese Certified Public Accountants and included such tests of accounting records and such other auditing procedures we considered necessary in the circumstances.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Industrial and Commercial Bank of China as of December 31,2000 and the results of its operations for the year then ended, in accordance with Enterprise Accounting Principles and as well as other related financial and accounting regulations of the People's Republic of China. The accounting methods adopted this year are in conformity with that of previous years.
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|
March 18,2001 |
Balance Sheet
|
Dec 31,2000
|
Unit: RMB hundred million Yuan
|
| ASSETS |
1999 |
2000 |
|
Cash
|
429.89
|
295.02
|
|
Deposits with the Central Bank
|
3,049.12
|
2,957.66
|
|
Due from Banks
|
696.91
|
238.51
|
|
Lending to Other Banks
|
356.34
|
1,207.48
|
|
Loans
|
24,271.22
|
24,135.91
|
|
Short-term
|
17,403.50
|
15,371.69
|
|
Medium& Long-term
|
6,867.72
|
8,764.22
|
|
Less:Bad Loan Provision
|
166.09
|
103.77
|
|
Securities Investment
|
3,239.47
|
7,925.37
|
|
Short-term
|
|
|
|
Medium& Long-term
|
3,239.47
|
7,925.37
|
|
Less:Investment Loss Provision
|
1.87 |
1.49
|
|
Fixed Assets
|
761.40
|
926.16
|
|
Less:Accumulated Depreciation
|
167.55
|
200.01
|
|
Other Assets
|
2,929.82
|
2,356.53
|
|
TOTAL ASSETS
|
35,398.66 |
39,737.37 |
| LIABILITIES |
1999
|
2000
|
|
Deposits
|
29,823.78
|
32,485.19
|
|
Short-term
|
13,944.08
|
16,039.86
|
|
Long-term
|
15,879.70
|
16,445.33
|
|
Due to Banks
|
1,880.81
|
3,086.35
|
|
Inter-bank Borrowing
|
81.10
|
151.08
|
|
Borrowings
|
265.99
|
240.01
|
|
Bonds Issued
|
0.67
|
0.21
|
|
Short-term
|
|
|
|
Long-term
|
0.67
|
0.21
|
|
Other Liabilities
|
1,531.56
|
1,900.87
|
|
Owners' Equity
|
1,814.75
|
1,873.66
|
|
Paid-in Capital
|
1,674.17
|
1,674.17
|
|
Capital Reserve
|
9.47
|
12.04
|
|
Surplus Reserve
|
103.54
|
135.09
|
|
Undivided Profit
|
27.57
|
52.36
|
|
TOTAL LIABILITIES AND EQUITY
|
35,398.66
|
39,737.37
|
Profit & Loss Statement
| End of 2000 |
Unit: RMB 100 Million Yuan
|
| ITEM |
1999 |
2000 |
| OPERATING INCOME |
1,877.41 |
1,798.04 |
| Interest Income |
1,471.73
|
1,410.89 |
| Inter-bank Income |
170.92
|
156.11 |
| Fee& Commission Income |
16.14
|
26.08 |
| Bond Interest Income |
201.69 |
198.56 |
| Exchange Income |
4.41
|
4.15 |
| Other Operating Income |
3.52
|
2.25 |
| OPERATING EXPENSES |
1,773.50
|
1,641.49 |
| Interest Expenses |
1,140.56
|
992.60 |
| Interbank Expenses |
79.84
|
115.09 |
| Fee& Commission Expenses |
23.29
|
3.46 |
| Operating Expenses |
344.36
|
383.27 |
| Exchange Loss |
|
|
| Other Operating Expenses |
185.45
|
147.07 |
| OPERATING PROFIT |
103.91
|
156.55 |
| Plus: Investment Income |
2.46
|
1.71 |
| Plus: Non-operating Income |
70.29
|
23.85 |
| Less: Non-operating Expenses |
7.72
|
8.54 |
| Less: Business Tax |
127.68 |
122.70 |
| PROFIT |
41.26
|
50.87 |
Consolidated Balance Sheet
| Dec.31,2000 |
Unit: RMB 100 Million Yuan
|
| ASSETS |
2000 |
|
Cash
|
301.86
|
|
Deposits with the central bank
|
2,958.12
|
|
Due from Banks
|
253.91
|
|
Lending to other banks
|
1,239.00
|
|
Loans
|
24,319.44
|
|
Short-term
|
15,431.51
|
|
Medium & Long-term
|
8,887.93
|
|
Less: Bad Loan Provision
|
122.42
|
|
Securities Investment
|
7,893.11
|
|
Short-term
|
|
|
Medium & Long-term
|
7,893.11
|
|
Less:Investment Loss Provision
|
1.49
|
|
Fixed Assets
|
937.61
|
|
Less:Accumulated Depreciation
|
201.90
|
|
Other Assets
|
2,401.21
|
|
TOTAL ASSETS
|
39,978.45 |
| LIABILITIES |
2000
|
|
Deposits
|
32,667.92
|
|
Short-term
|
16,061.06
|
|
Long-term
|
16,606.86
|
|
Due to Banks
|
3,119.05
|
|
Inter-bank Borrowing
|
157.92
|
|
Borrowings
|
239.08
|
|
Bonds Issued
|
0.21
|
|
Short-term
|
|
|
Long-term
|
0.21
|
|
Other Liabilities
|
1,907.71
|
|
Owner's Equity
|
1,875.06
|
|
Paid-in Capital
|
1,674.17
|
|
Capital Reserve
|
12.07
|
|
Surplus Reserve
|
135.09
|
|
Undivided Profit
|
53.73
|
| Minor Stockholder Equity |
11.50 |
|
TOTAL LIABILITIES AND EQUITY
|
39,978.45
|
Consolidated Profit & Loss Statement
| End of 2000 |
Unit: RMB 100 Million Yuan
|
| ITEM |
2000 |
| OPERATING INCOME |
1,827.02 |
| Interest Income |
1,423.14 |
| Interbank Income |
161.15 |
| Fee & Commission Income |
35.25 |
| Bond Interest Income |
200.91 |
| Exchange Income |
3.86 |
| Other Operating Income |
2.71 |
| OPERATING EXPENSES |
1,667.66 |
| Interest Expenses |
1,003.04 |
| Interbank Expenses |
116.52 |
| Fee& Commission Expenses |
3.33 |
| Operating Expenses |
386.31 |
| Exchange Loss |
|
| Other Operating Expenses |
158.46 |
| OPERATING PROFIT |
159.36 |
| Plus: Investment Income |
1.71 |
| Plus: Non-operating Income |
23.86 |
| Less: Non-operating Expenses |
9.16 |
| Less: Business Tax |
122.88 |
| Less: Minor Stockholder Income |
0.69 |
| TOTAL PROFIT |
52.20 |
Consolidated Cash Flow Statement
| Year Ended December 31,2000 |
Unit: RMB 100 Million Yuan
|
| ITEM |
AMOUNT |
| I. Cash Flows from Operating Activities |
|
|
Load Interest Income
|
1,307.61
|
|
Net Change in Inter-bank Lending Incomes and Inter-bank Borrowing Expenses
|
44.63
|
|
Other Miscellaneous Incomes
|
30.83
|
|
Net Change in Demand Deposits
|
1,997.35
|
|
Net Change in Time Deposits
|
552.79
|
|
Borrowings from PBOC
|
-10.35
|
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Increments in Due to Banks
|
1,209.68
|
|
Sub-total of Cash Inflows
|
5,132.54
|
| Deposit Interest Expenses |
782.03
|
|
Other Miscellaneous Expenses
|
194.89
|
|
Payroll Payment
|
159.30
|
|
Net Change in Short-term Loans Extended and Recovered
|
676.58
|
| Net Change in Long-and-medium-term Loads Extended and Recovered |
1,523.53
|
|
Increments in Lending to Other Banks (Less: Borrowings from Other Banks)
|
925.10
|
| Taxes Paid |
135.02 |
| Other Cash Paid Relating to Operating Activities |
126.35 |
| Sub-total of Cash Outflows |
4,522.80 |
| Net Cash Flows from Operating Activities |
609.74 |
| II. Cash Flows from Investing and Financing Activities |
|
|
Bond Interest Income
|
154.35
|
|
Sub-total of Cash Inflows
|
154.35
|
|
Purchase of Fixed Assets, Intangible Assets and Other Long-term Assets
|
114.43
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|
Cash Paid for Equity Investment
|
38.34
|
|
Net Change in Bond Investment
|
388.04
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|
Sub-total of Cash Outflows
|
540.81
|
|
Net Cash Flows from Investing and Financing Activities
|
-386.46
|
| III.Net Cash Flows from Abnormal Item |
40.82
|
| IV.Net Change in Cash and Cash Equivalents |
264.10
|
|
Plus: Cash and Cash Equivalents, beginning of year
|
6,560.60
|
| V. Cash and Cash Equivalents, end of year |
6,824.70
|
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Cash and Deposits with Banks
|
301.86
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|
Provisions Deposited with Central Bank
|
2,958.13
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Due from Banks
|
115.58
|
| Treasury Bond and Other Short-term Bond Investment |
3,449.13 |
NOTES TO THE FINANCIAL STATEMENTS
| 1. FINANCIAL ACCOUNTING SYSTEM
The following rules and regulations as set forth by the Ministry of Finance in China are applicable to the Industrial & Commercial Bank of China (ICBC): General Financial Provisions for Business Enterprises, Accounting Standards for Business Enterprises, Financial System for Financial Institutions and Accounting System for Financial Institutions. 2. FINANCIAL MANAGEMENT SYSTEM
ICBC is carrying out unified accounting and management by different levels. According to the Bank Law of People's Republic of China and regulations set forth by the Ministry of Finance of China, ICBC assumes full responsibility for the profits or losses of the entire bank. 3. ACCOUNTING PERIOD
The accounting period of ICBC is identical with the calendar year, commencing on January 1 and ending on December 31. 4. BOOKKEEPING METHOD
ICBC adopts debit-credit system as its bookkeeping method. 5. ACCOUNTING PRINCIPLE
ICBC recognizes its fiscal revenue and expenditure in accordance with accrual basis principle. 6. VALUATION STANDARD
The assets of ICBC are valued at their historical costs and generally are not reevaluated at the end of each fiscal year. 7. BOOKKEEPING UNIT AND CURRENCY EXCHANGE
ICBC uses RMB as the reporting currency. Assets, liabilities, losses and profits denominated in foreign currencies are converted into RMB at the exchange rate announced by the People's Bank of China at the end of the year (generally on December 15). The exchange rate for 2000 is US$1=RMB8.2768. 8. PROVISIONS
ICBC makes provision for possible losses of loans, bad debts and investment losses.
According to the regulations set forth by the Ministry of Finance of China for commercial banks, the provision for possible losses of loans is made not in excess of 1% of the outstanding loans at the end of the year; the provision for bad debts is made equivalent to 3‰ of the year-end interests receivable; the provision for investment losses is made not in excess of 1% of the balance of the investment at the end of the year.
The provisions calculated by all of the branches abroad are in conformity with the related regulations of their country or district. 9. DEPRECIATION OF FIXED ASSETS
ICBC adopts a corresponding straight-line method of depreciation for different categories of fixed assets. The depreciable life of the various categories of fixed assets is determined as follows: thirty years for buildings and fixtures; six years for motor vehicles; five years for computers and eight years for other facilities. 10. PROFIT DISTRIBUTION
ICBC distributes its profits centrally by the Head Office in line with the regulations set by the Ministry of Finance:
(1) It pays income tax at the rate of 33%;
(2) It sets aside 10% of its after-tax profit as lawful surplus reserve. 11. REPORTING SYSTEM OF TOTAL ASSETS, TOTAL LIABILITIES, TOTAL INCOMES AND TOTAL EXPENSES
ICBC shows the write-off difference of internal receivable and payable accounts in the Balance Sheet as of December31, 2000. 12. THE CONTENTS OF ICBC'S FINANCIAL STATEMENTS
The financial statements of ICBC include the Head Office and all branches in China and other countries. The inter-branch receivables and payables have already been written-off. 13. THE CONTENTS OF ICBC'S CONSOLIDATED FINANCIAL STATEMENTS
The consolidated financial statements include all branches in China and abroad, and other banks and non-banking institutions owned by ICBC IN excess of fifty percent of their equity ownership,namely ICBC Hong Kong Branch, ICBC Tokyo Branch, ICBC Seoul Branch, ICBC Singapore Branch, ICBC Luxembourg Branch, ICBC Frankfurt Branch, ICBC Almaty Branch, ICBC (ASIA), ICEA, Qingdao International Bank, Chinese Mercantile Bank and IBPS. The inter-bank receivables and payables have already been written-off. |
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