During the scientific and frog-leap development of Fujian, the powerful support given by the real economy is self-evident.
As the only national listed bank based in Fujian, Industrial Bank (IB), bearing deep feeling to the land of its hometown, actively implemented and enforced the requirements of the “Circular of Fujian Provincial Government on the 11 Measures for the Finance to Serve the Development of Real Economy”. Centering on the objectives and tasks of accelerating the development of Fujian and construction of the Western Taiwan Straits, the bank worked out plans in advance, effectively entered into and closely responded to the area of real economy, and brought into play its role as a leading financial force in the Western Taiwan Straits to give a full boost the development of real economy in the province.
According to statistics, by the end of this first quarter, the bank's balance of all credits both in home and foreign currencies has reached RMB 193.963 billion across Fujian, increasing RMB 15.562 billion over the beginning of this year, up by 8.72%, which is 4.92%, 3.03% and 4.29% higher than the increase of loans of the whole bank, increase of loans extended by financial institutions in the province, and the increase of loans extended by financial institutions across China respectively. Thus, IB has made active contribution to the scientific and frog-leap development of the province.
Providing All-sided Services to the Five Campaigns
While the opening up and development of Pingtan went on in full swing, IB took the lead to take actions to exert itself in serving the construction of the pilot zone.
In April 2010, IB Head Office took the lead to sign an overall strategic cooperation agreement with the Management Committee of Pingtan Composite Pilot Zone, formulating a special financial service solution for the demands of the pilot zone. In that December, the bank established a sub-branch in Pingtan, becoming the first joint-stock commercial bank with branch office in the area.
In July 2012, IB issued the “Circular on Providing Further and Better Financial Services for the Development and Construction of Pingtan Composite Pilot Zone, releasing measures to further five financial services and to keep intensifying its efforts in supporting the development and construction of the pilot zone. First, the bank would increase the special loans by RMB 3 billion to the Western Taiwan Straits for the development and construction of Pingtan so as to fully guarantee the fund demands for the construction of the zone. Second, it would increase its support to the government-planned financing for the construction and development of Pingtan, and actively respond to the financing needs of key projects. Third, it would reinforce the implementation of investment banking instruments in Pingtan Composite Pilot Zone, striving to provide RMB 10 billion direct financing funds for the construction of the zone in the coming two years. Fourth, it would establish the “fast passage for credit cooperation with the pilot zone” to improve the approval efficiency for credit to key projects in the pilot zone, and give the zone special and flexible preferential policies regarding such loan conditions as loan interest rate, credit structure, contract execution and loan extension. Fifth, it would intensify service response and establish the working group for financial services in Pingtan consisting of Fuzhou Branch, Corporate Finance Risk Management Department of the Head Office, and the Investment Banking Department under the leading of the Corporate Finance Marketing Management Department of the Head Office, exerting itself to provide financial services in the zone.
This is only a small part of the whole story that IB has been serving the development of the Western Taiwan Straits around the central work.
For years, IB has, based on the general development of the whole province, provided financial services to the central work of the provincial Party committee and government, sparing no effort to support the "Five Campaigns”.
To the construction of major projects of overall significance, including Pingtan Composite Pilot Zone, Mawei New Town of Fuzhou, Xiamen Hi-tech Industrial Park, strategic emerging industries of Quanzhou, agricultural and subsidiary industries of Zhangzhou, water conservancy project of Putian, and small towns of Minhou, etc., the bank brought into play its two major advantages – location of group headquarters and integrated business, combined such financial resources as banking, trust, securities, and lease, and employed a variety of financial service tools including investment banking, financial lease, wealth management, trust financing, supply chain finance, cash management, and green finance to lend vigorous support and provide sufficient guarantee for the follow-up capital demands of the “Five Campaigns”. Meanwhile, it kept extending its service areas and coverage, establishing sustained driving power. By the end of May 2012, the total credit line extended by IB to the projects under the “Five Campaigns” across the whole province has reached RMB 68.994 billion, increasing by RMB 6.792 billion over the beginning of this year, and the balance of loans has reached RMB 20.329 billion, up by 1.816 billion compared with the last year.
The arrangement of special loans is another major feature that IB serves the central work of our province. Against the background of tense credit scale, IB has also arranged RMB 5 billion as the special loans to the Western Taiwan Straits each year for three years consecutively to support the key projects under the close attention of the government in the region that were of great importance, big social influence and significant composite incomes.
Fully Guaranteeing the Fund Demands of Key Projects
The “6•18” fair, which is held every year, is great event for connecting scientific and technological research achievements with enterprises. With active participation, IB has established extensive cooperation with enterprises, thus becoming a brilliant landscape in the great fair.
Last year, the bank entered into a cooperation agreement with Fujian Baosteel Desheng Stainless Steel Co., Ltd., a key project of the province, at the fair, extending RMB 2 billion credit to the company.
In this “6•18” fair, IB signed an agreement with Fujian WuHang Stainless Steel Products Co., Ltd., establishing a strategic partnership. The bank provided RMB 1.35 billion to the company as the funds for transforming its manufacturing technology and working capital for its production and operation.
In recent years, IB has always focused its services on key industries and projects, lending full guarantee for their fund needs. Great moves have been launched one after another.
It supported the construction and development of expressways in Fujian Province. By the end of May 2012, the balance of all credits extended by the bank to expressway projects across the province reached RMB 9.478 billion. In addition, it also provided two phases of non-standard trust financing for the project of Quanzhou Bay Bridge (under construction), which is a part of Quanzhou Fast Ring Passage, raising a total of RMB 1.5 billion.
It provided financial support for the railway construction of the province. By the end of May 2012, the bank has engaged in four railway projects, extending a total credits up to RMB 6.989 billion, and the balance of loans totaled RMB 2.194 billion. In addition, acting as the warrantor, the bank provided the financing guarantee for the debt investment plan of Xiangtang-Putian Railway worth RMB 1.5 billion. With a term of five years, the funds would be used in the construction of Xiangtang-Putian Railway, and the project was launched on May 29.
At the end of May 2012, targeting at the key projects within Fujian Province, the loan balance of the bank reached RMB 15.172 billion, increasing RMB 1.249 billion over the beginning of this year. Such loans were mainly used to support a group of major projects including Quanzhou Bay Bridge and those of Fuzhou Urban and Rural Construction and Development Corporation, Changle Hengshen Synthetic Fiber Technology Co., Ltd., WuHang Stainless Steel Products Co., Ltd., Xianyou Pumped-Storage Power Station and Longyan Makeng Ming Co., Ltd., and meet the financing demands of Taiwan-invested enterprises like Xiamen Cheng Shin Rubber and Zhangzhou Kaijing Steel Development Co., Ltd.
Another important focus of IB in supporting the real economy is to lend vigorous support to the development of key SOEs and private businesses in Fujian Province. This year, the bank has successively customized financial service solutions for a group of outstanding SOEs and private businesses in the province that meet their individual business characteristics. Enterprises in eight major industries were under key support, including iron and steel (e.g., Fujian Sansteel Group and WuHang Stainless Steel Products Co., Ltd.), automobile (e.g., Xiamen King Long Motor Group), construction machinery (e.g., Lonking Machinery Co., Ltd.), electricity (e.g., Fujian Electric Power Co., Ltd. and State Grid Information and Telecommunications Corporation), mobile communication (e.g., China Mobile Group Fujian Company Limited), clothing (e.g., 361 Degrees International Limited, Lilanz Group, GRN Group and Qiaodan Sports), building materials (e.g., Jomoo Group), and public utilities (e.g., Fujian Medical University Union Hospital).
From January to May this year, the credit line of supply chain financing approved by IB to key enterprises and groups in the province registered RMB 12.153 billion, and the total extended amount hit RMB 2.934 billion.
Financial Innovation Broadening Financing Channels of Enterprises
The philosophy of sustainable development has always run through the sincere services of IB.
The project of waste incineration for power generation in the east of Xiamen is located within the East Solid Wastes Treatment Center in Baiyunfei, Xiang'an District, covering an area of 58,663 square meters. In the first phase, the project has an installed capacity of 12 MW and 600 tons of wastes can be incinerated daily. After completion, the project can achieve the purpose of treating domestic garbage as resources in a harmless manner, thus significantly reducing the environmental pollution by wastes. This saves about 700 mu land compared with the solution of landfill, and eliminates the secondary harm caused by landfill.
IB Xiamen Branch lent vigorous support to the construction of the project, providing RMB 160 million credit funds, which accounted for 54.6% of the investment for the core works of the project.
As the first “Equator bank” as well as the forerunner and advocator of green finance in China, IB brought into play its advantages in technology and resources, actively boosting the energy-saving construction of the Western Taiwan Straits with “green finance”. By the end of May 2012, the bank has extended a total of 407 green finance loans in all districts and cities of Fujian Province accumulatively, totaling RMB 9.034 billion, and the balance of green credit reached RMB 4.884 billion. A total of 104 loans were newly granted in the year, totaling RMB 2.057 billion. The supported projects cover new energy and renewable energy projects (e.g., wind power and hydropower), energy conservation project of electric machine, and clean and efficient utilization of coal, etc.
To adapt to the general trend of transformation of economic development mode and transformation and upgrading of economic structure, IB has made sustained innovation and combined a package of businesses such as investment banking, trust and financial lease, trying every means to extend the financing channels for enterprises.
In the aspect of investment banking, the bank raised RMB 4.512 billion for enterprises in the province with such non-financial corporate debt financing tools as short-term financing bonds, medium-term notes, and structure financing. From January to May this year, it underwrote and issued the debt financing tools worth RMB 2.315 billion for enterprises including Fujian Provincial Communication Transportation Group and Fujian Investment and Development Group, and provided structure financing worth RMB 2.82 billion for enterprises including Xiamen Light Industrial Group, Xiamen Xiangyu Group, Xiamen Xindeco Ltd., and San'an Optoelectronics Co., Ltd. By the end of May, the bank's financing balance in the business of investment banking registered RMB 9.915 billion.
In terms of trust, the bank actively brought into play the role of Industrial Trust, a subsidiary under its control, providing RMB 3.5 billion trust financing for more than 20 enterprises including Fujian Energy Group, Fujian Provincial Communication Transportation Group and Fujian Provincial Expressway Company. Moreover, Industrial Trust released the serial trust products of “Industrial Trust • SME Well-chosen Investment Fund” at pilot sites in May 2011, to support the business development of SMEs across the province. By the end of May, Industrial Trust provided a total of financing funds up to RMB 6.74 billion to all industries throughout the province.
Meanwhile, through other trust institutions, the bank provided two phases of non-standard trust financing for the project of Quanzhou Bay Bridge (under construction), which is a part of Quanzhou Fast Ring Passage, raising a total of RMB 1.5 billion, and it also raised RMB 1.4 billion for enterprises including Fujian Provincial Expressway Company and Fujian Provincial Communication Transportation Group.
In terms of financing lease, IB has tried to provide fund support for enterprises and construction projects in the province with financial lease products in an active manner. By the end of May, the bank made two business extensions in the province through Industrial Bank Financial Leasing Co., LTD, a wholly-owned subsidiary, totaling RMB 1.03 billion, and it will continue providing financing support to such projects as Beijing-Fuzhou Expressway (Fuzhou), Fuzhou Airport Expressway, and Luoyuan-Changle Expressway with financial leasing products.
Supporting the Growth of SMEs with Great Enthusiasm
Small-sized enterprises are small in size, but vast in number like the stars. They play an important role in solving the problem of employment and increasing the aggregate economic volume of the province. Meanwhile, many small-sized enterprises adopt flexible mechanisms and have great pioneering spirit. With advanced technologies, they have a board prospect in development.
On November 3, 2011, the first phase of 2011 SME collection notes of Jinjiang, Fujian, with IB as the leading underwriter, was issued successfully.
The SME collection notes of Jinjiang were jointly issued by four enterprises, including Fujian Jingong Machinery Co., Ltd., Hede Light Industry Co., Ltd., Panpan Bio-tech Co., Ltd., and Jinjiang Fengzhu Footware Development Co., Ltd. With registered capital of RMB 220 million, these notes were issued for a term of two years.
They were the first issue of collection notes released successfully in Fujian Province, a breakthrough of SME notes issued in the province. This was also the first time that the SMEs of Jinjiang had presented themselves in group at the inter-bank debt market.
The practical attitude which IB has always adhered to can also been seen in its support to the development of SMEs. Centering on the characteristics of demands of small- and mini-sized enterprises, the bank targeted at their financing difficulties, and kept enriching the business product line for small- and mini-sized enterprises and improving the specialized, pertinent and applicable properties of financial services to small- and mini-sized enterprises.
The “Open Sesame SME IPO Program” built by the bank particularly provided corresponding traditional products and innovative services in particular in line with the different business features and business demands of enterprises at the different stages of their growth, namely initialization, growth and maturity, with a view to propelling the IPO of SMEs.
By the end of this May, there have been 706 customers from Fujian joining the “Open Sesame SME IPO Program” of the bank, with 12 launching IPO successfully either at home or abroad, 21 being in the IPO procedure, 32 successfully introducing private placement or venture capital institutions, and four successfully completing registration or issuing bonds.
In addition, the bank released “IB enhancement loan” to enhance credit for small- and mini-sized enterprises on its own initiative; offered “IB Quick Loan” to quickly meet the financing demands of small and mini-sized enterprises which are characterized by “small amount, high frequency and fast rate”, and launched “IB Point-based Loan” to provide preferential credit support and return to outstanding small- and mini-sized enterprises in long cooperation with IB.
By the end of May 2012, the bank's customers of self-defined effective basic small-sized enterprises and above in Fujian Province reached 7470, increasing 280 over the beginning of this year; the balance of loans granted by IB to self-defined small-sized enterprises in the province hit RMB 30.763 billion, increasing RMB 4.382 billion over the beginning of this year, a growth of 16.61%. The enthusiastic support of IB lent vigorous boost for these small- and mini-sized enterprises to get blossomed and harvested and grow strong.
Supporting the Cultural Industries to Grow Bigger and Stronger
As a sunrise sector, culture industries play an active role in enriching the cultural life of people and improving the overall quality of people. In recent years, it has been put at an increasingly important position.
Fujian Time Power Co., Ltd. is a diversified cultural enterprise centering on the animation and creative industries in Fujian Province, producing a number of excellent animation works such as “Mr. Black” and “Tea Garden Story”. The animation film shot by the company in collaboration with Shanghai Animation Film Studio and the Cross-Strait Exchange Association of Tea, “Oolong Kids”, is the first original animation film of tea culture across the world.
In 2011, “Oolong Kids” which had a busy shooting schedule encountered the difficulty of insufficient short-term working capital. Taking into consideration the urgent needs of the company, IB took the initiative to communicate with the enterprise and granted a short-term working capital loan worth RMB 20 million after examining its corporate qualifications and securing relevant guaranteeing conditions, thus providing strong support for the smooth progress of the film. “Oolong Kids” had its first show at CCTV Children's Channel in the golden hours on the Spring Festival of 2012, enabling the children and kids to understand Chinese tea and tea culture in a popular and easy manner through watching an animation film. The film won high comments extensively.
In the allocation of credit scale, IB gave preferential support to the backbone and leading enterprises in the culture industries including radio, film and TV, publishing, cultural tourism, animation and game, and industrial arts, supporting the culture industries to grow bigger and stronger. By developing new products suitable for cultural enterprises through innovation, including “Enhancement Loan” and “Point-based Loan” for small-sized enterprises, and adopted diversified guaranteeing methods, such as joint guarantee of cultural enterprises, pledge of accounts receivable, and equipment mortgage, thus solving the financing difficulty in a practical way.
For years, IB has provided financing support to a large group of outstanding cultural enterprises including Fujian Time Power Co., Ltd., Fujian Media Group, and Hakka Earth Buildings Tourism Development Co., Ltd.
By the end of May 2012, the balance of credit support provided by IB to the cultural sector in Fujian Province reached RMB 1.056 billion, increasing RMB 77 million over the beginning of this year. The bank played an active role in driving the vigorous development and prosperity of culture in the province.
Study for outperformance, and compete for frog-leap development. Changes are happening every in both rural and urban areas. The vigorous development of economy and society in Fujian, no doubt, provides a big stage for the development of banking.
The province is not only the “birthplace” and “headquarter”, but also an important “base” of IB. The bank has its root here and has grown strong here. As the leading financial enterprise and golden name card of the Western Taiwan Straits, IB has always been concerned about and given reciprocation to its hometown. Looking into the future, IB will endeavor to build a mainstream banking group with “solid foundation, concerted structure, distinctive and specialized services, great strength and high responsibility”, and make greater contribution for the scientific and frog-leap development of Fujian Province as well as the construction of harmonious society with the spirit of strenuous development, the bearing of innovative breakthrough, and the character of sincere service.