Founded in August, 1997 with a registered capital of over RMB 2 billion and headquarters set in No. 5139 Shengli East Street, Kuiwen District, Weifang, Shandong Province, the Bank of Weifang (“the Bank”) is the fourth urban commercial bank in the Shan Peninsula. By far, the Bank has set up 13 regional customer service centers, 8 financial service divisions, and 50 sub-branches in Weifang. The Bank also has one branch in Qingdao with 4 sub-branches, and is the holding company of Qingdao Jiaonan Haihui Community Bank. By the end of 2012, the total asset of the Bank amounted to RMB 52.37 billion with a total amount of deposit in RMB and foreign currencies of RMB 45.09 billion in combination. The volume of total outstanding loan stood at RMB 31.02 billion. In 2012, the Bank paid RMB 420 million of tax, ranking among the top ten taxpayers in Weifang for three consecutive years.

Since its establishment, the Bank has laid solid groundwork for its market positioning of “serving the SMEs, the general public and the local economy”, adopted a differentiated development approach, achieved fast growth in business performance, gained extensive attention and recognition from the public and the industry alike, and gradually become a modernized shareholding commercial bank with complying capital, flexible management system, high profitability and distinctive branding. It has received a number of awards, including the Role Model for Corporate Culture Development, the award of Excellent Corporate Image, the title of “the Most Specialized Small and Medium-sized Bank in China”, “Shangdong Business Award”, the Provincial Excellence Award, the Role Model for Excellent Labor Relations, the municipal award for the Top Ten Enterprises in Terms of Corporate Responsibilities, etc.

[Corporate Governance] Pursuant to the modern corporate governance regime, the Bank has formed a corporate governance structure where the Shareholders’ Meeting, the Board of Directors, the Board of Supervisors and the management team work jointly in their respective capacity within the framework of checks and balances. The Bank has developed a complete set of rules, regulations and procedures, and has developed a governance system with separation of responsibilities and authorities, framework of checks and balances as well as sound regulations and orderly operations.

[Organizational structure] In accordance with the approach of procedure-based operation, the Bank has implemented a comprehensive organizational reform, focusing on four aspect of management, including expansion, operation, control and safeguards, and has set up a brand-new organizational system which is based on the strengthening of risk control, the improvement of customer service and the enhancement of overall competitive edge, paving the way for a shift in the development pattern and stable operations.

[Microfinance] Microfinance service is the most vital strategic focus and represents the greatest growth potential in the development strategy of the Bank. In 2007, the Bank became the first in Weifang to advocate the business concept of “helping small and micro businesses and making joint efforts in promoting sound financial development”, aiming to drive forward microfinance services. By the end of 2012, outstanding small and micro-loans amounted to RMB 16.28 billion with over 10,000 accounts, making up 52.43% of its total amount of outstanding loans. In 2009, drawing upon the experience of the Germany with regard to microloan, the Bank set up the Department of Micro-loan. At present, the outstanding micro-loans exceed RMB 600 million with 4094 accounts. Micro-loan business has become a crucial sub-brand of microfinance services of the Bank.

[Financial innovation] The Bank attaches great importance to enhance its services through financial innovation, making breakthroughs in microfinance, rural finance, cultural finance and technological finance with a wider variety of innovative products and ever expanding innovative fields. Regarding rural finance, the Bank was the first nationwide to launch a series of land distribution products, which received high remarks from the CSRC; in respect of expanding microfinance business, our marketing approach of “building a platform and achieving economy of scale” has obtained recognition and approval from the State Council; in terms of cultural finance, the Bank was the first in the country to launch the business of pledge of artworks, breaking through the bottleneck of artwork financing; as for technological financing, we pioneered the pledge of copyright in Weifang, expanding financing channels for technological enterprises. At present, innovative services have become an essential feature of our financial service offerings.

[Internal management] Centered on the guidelines of “the development of a suitable regime”, the Bank has further explored a series of internal reforms covering human resources, performance, compensation and benefits, training and internal control. The HR management concept of “making the most out of each talent”, the competition mechanism of “encouraging competition, and rewarding based on merit” and the quasi-market-based staff management procedures have become the major driving force for the development of the bank; we have attached great importance to training and education, setting up an employee training institute and a training program where the training institute joins efforts with the Bank, which is innovative in its training-oriented approach in both deposit taking and loan business activities; we have carried out a series of HR training projects such as “963” internal training, the “Bamboo Project” and “Elite Training Plan”, in order to boost the competences of the staff members in a well-rounded manner. In addition, the Bank has been devoted to promoting the standardization of quality management system, streamlining procedures and defining job descriptions. We have also focused on strengthening our internal control system, forming the structure of “control of major risks” and boosting the quality of risk prevention and business management.

[Corporate culture] Over the years, the Bank has always placed great emphasis on the strategic role of corporate culture, and has used its unique corporate spirit and service philosophy to influence the mind setting and behaviors of the staff members, in order to further drive forward the development of the Bank. We have been committed to strengthening cohesion of the staff through the program of “Happiness at the Bank of Weifang”; by creating the Golden Top Club and the “Red Kite” Association of Small Businesses, we have developed a cultural service brand – the “Golden Top” series, so as to serve charitable causes and shoulder our social responsibility. As a result, the Bank has been acclaimed by all stakeholders as a trustworthy enterprise for is social commitments.