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  Speed up Transformation and Push forward Business Development to a New Stage

Recently, guided by the strategy of “taking the international, integrated road to become a first-class public shareholding bank group with feature of wealth management”, Bank of Communications International Trust Co., Ltd. (BOCOMMTRUST) has closely centered on transformation, given the full play of the advantages of trust system and the resources of the Group and taken the lead in the industry in terms of indicators of scale, profitability and quality. It was rated as A by China Trustee Association and won the award of the “Excellent Trust Company” hosted by Shanghai Securities News and the award of the “Excellent Risk-Control Trust Company” hosted by Securities Times. It has won the full recognition by the regulatory authorities, companies in the same industry as well as the market.

Return to Essence and Target at Direction of Transformation

In compliance with the macroeconomic new normal and the guidance of supervision, BOCOMMTRUST has transformed in time its operation strategy, optimized business structure, and focused on pushing forward the five transformations so as to promote the shift of profit growth mode from scale-driven to value-driven:

Transforming from “financing dominated” to “establishing a linkage between investment and loan”. BOCOMMTRUST has brought into play the functional advantages of trust investment, strengthened integration between industry and financing sector, and made efforts on expanding key business such as bond investment, fund investment and QDII.

Transforming from “single trust” to “collective trust”. BOCOMMTRUST has carefully selected counterparties and business projects. The proportion of collective trust has been increased significantly at the end of the year.

Transforming from “transaction management” to “active management”. It has brought into play the unique features of private investment bank, upgraded the capacity of obtaining high-quality assets and products’ design and innovation. The business scale of active management has been increased significantly.

Transforming from “relying on resources” to “matching resources”. It has brought into play the advantages of trust platform, committed itself to serving the real economy and realized an effective docking between the internal and external funds and assets.

Transforming from “traditional business” to “business of new type”. It has strengthened and expanded the securitization of credit assets. The value of total issued securitized products is RMB 81.2 billion this year, ranking the fourth in the industry. It has broken through the securitization of enterprises’ assets and participated in many ABN projects such as Jiangsu Yangtze Bridge Co., Ltd. and Sinopharm Holding Finance Leasing Co., Ltd. With regard to fund, it has developed business models such as contractual fund, forward subscribed fund and parallel fund. With regard to equity financing areas, it has grasped excellent enterprises’ needs in deleveraging and adjusting structure and conducted business of perpetual bond and debt-for-equity swap with China National Building Material Group Corporation (CNBM) and Hubei United Investment Group.

Optimize Approach and Build an Engine for Transformation

Adhere to the leading role of innovation and enhance the transformation drivers.

Improve the innovation mechanism and establish the innovation committee; allocate earmarked resources for innovation and make great efforts on the implementation of innovation-driven strategy; upgrade innovation profitability and emphasize on the innovation of key products; strengthen the efforts on replicating and promoting inside and outside the Group to achieve results at various places; the scale of business of new type exceeded RMB 150 billion in the year.

Insist on wining the market by specialty and upgrade the competitiveness of transformation.

Improve the matrix business layout of “specialty & region” to establish professional departments such as asset management, cash management, asset securitization and property management on the basis of 9 integrated professional trust teams covering 37 provincial branches, and focus on key areas. Improve professional product lines to develop the four major product lines such as private investment bank, asset management, wealth management and asset securitization with an orientation of market requirement and comprehensive profitability for the purpose of satisfying customer’s need of diversification; build a market brand with professional advantages.

Adhere to market orientation and inspire the energy of transformation.

Optimize the operation mechanism of marketization and stay close with the market; dynamically optimize and adjust the business authorization, business system and business process; win market opportunity by increasing service efficiency; deepen incentive mechanism of marketization and strengthen the second distribution of compensation resources; improve the balanced performance appraisal system of focusing on comprehensive contribution on annual appraisal, focusing on time schedule on quarterly appraisal, focusing on strategic transformation in delivering special rewards, not relying on indicators but on contribution in delivering extra rewards and emphasizing on safeguarding risk bottom line in risk constraint.

Insist on deepening synergy and upgrade integration and co-share efficacy.

Deepen the synergy between system and mechanism and establish a system and mechanism matching with the Group’s special action on integration and bilateral bookkeeping to enhance the endogenous dynamic of the synergy development between BOCOMMTRUST and the Group; deepen the synergy in product development and research and assist the headquarters and other branches to develop and research innovation products such as debt-for-equity swap, ABN and contractual fund so as to drive the business development through product innovation; deepen customer marketing synergy and establish teams located in Beijing, Shanghai, Wuhan, Chengdu, Guangzhou and Zhengzhou to synergize branches to increase their response speed to customers’ requirements; deepen the synergy of risk management and seriously implement the Group’s requirement of risk management and control; co-share the Group’s risk management resources and enhance capacity of risk management and control.


Enhance Safeguard and Lay Solid Foundation for Transformation

Insist on safeguarding the bottom line and comprehensively strengthen risk management and control.

Prevent systemic risks; establish the System Planning Department to comprehensively plan system; regularly review and optimize dynamically risk management structure and business management system to prevent systemic risks caused due to the lag and lack of structure and system; prevent business risks and hold tight the four gates, i.e. project access, due diligence, business review, post-investment management; pay attention to the internal business logic and emphasize substance over form; strictly control business risks and prevent compliance risks; upgrade the level of Legal and Compliance Department (first-level) and involve compliance into the comprehensive evaluation system and increase the weight of evaluation; involve compliance management into business process and strengthen the compliance process management to safeguard the compliance bottom line.

Strengthen Party discipline and pool our will and strength to promote transformation.

Strengthen the team building and deeply learn and implement the spirit of the 19th CPC National Congress and Xi Jinping’s Thought on Socialism with Chinese Characteristics for a New Era; strengthen the main responsibility of the Party Committee and guide the direction, control the big picture and guarantee the implementation of transformation; steadily push forward the construction of grass-roots organizations of the CPC and improve the grass-roots organization system; confirm the responsibility of the construction of grass-roots organizations of the CPC and serve the transformation development center; give full play to the Party Branch’s role in rallying and leading and the Party Member’s pioneering model role; promote the construction of a clean and honest party and anti-corruption work and implement the policy of “Two Duties for One Post”; confirm the main responsibility of the construction of a clean and honest party and anti-corruption work and the duties of discipline inspection commission; take firm action to address formalism, bureaucratism, hedonism, and extravagance; establish a long-term mechanism and form the synergy of supervision and consistently promote full and strict governance over the Party.

In 2018, BOCOMMTRUST will comply with the external environment of “deleveraging, strengthening supervision and tightened funds”, seriously implement the headquarters’ work requirements as “three major tasks, three key areas and three major objectives”, and fully push forward the strategy of “taking the international, integrated road to become a first-class public shareholding bank group with feature of wealth management”. With unwavering determination and encouragement, we will adhere to transformation, aim at “internationalization and integration” and fuel “two wheels”—the branches and business units, so as to assist the Group to create differential and special competitive advantages.