Document of The World Bank FOR OFFICIAL USE ONLY Report No. 14755 PROJECT COMPLETION REPORT CHINA FOURT1-INDUWSTRIAL CREDIT PROJECT (CIB IV) (LOAN 2783-CHA/CREDIT 1763-CHA) JUNE 30, 1995 Industry and Energy Operations Division China and Mongolia Department East Asia and Pacific Regional Office This document has a restricted distribution and ma) be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Currency Unit = Yuan (Y) 1987 $1 = Y 3.72 1988 $1 = Y 3.72 1989 $1 = Y 3.76 1990 $1 = Y 4.78 1991 $1 = Y 5.36 1992 $1 = Y 5.42 1993 $1 = Y 5.73 ABBREVIATIONS AND ACRONYMS ADB - Asian Development Bank CIB - China Investment Bank ERR - Economic Rate of Return FRR - Financial Rate of Return GOC - Government of China MOF - Ministry of Finance PBC - People's Bank of China (central bank) PCBC - People's Construction Bank of China SAR - Staff Appraisal Report PRC - People's Republic of China FOR OFFICIAL USE ONLY THE WORLD BANK Washington, D.C. 20433 U.S.A. Office of Director-General Operations Evaluation June 30, 1995 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report on China Fourth Industrial Credit Project (Loan 2783-CHA/Credit 1763-CHA) Attached is the Project Completion Report (PCR) for the China Fourth Industrial Credit project (Loan 2783/Credit 1763-CHA, approved FY87) prepared by the East Asia and Pacific, Regional Office with Part II of the report contributed by the Borrower. The project was the fourth line-of-credit to the China Investment Bank (CIB), a state-owned development finance institution providing finance for the restructuring and technological upgrading of industrial enterprises. Its main objectives were to increase the productivity and efficiency of small- and medium-scale industries and strengthen the institutional capabilities of CIB. The project was implemented successfully, although with some delays due to a slow down in investment activity following the Tiannanmen Square incident of June 1989. The line-of-credit supported 228 subloans for the modernization and expansion of mainly state- owned enterprises. An ex-post evaluation of the financial and technical performance of these subprojects has not be carried out. But the low, albeit increasing, level of CIB's arrears suggests that the financial performance of most is satisfactory. The technical assistance component helped improve the CIB's project appraisal capabilities, but was less effective in strengthening its monitoring activities. The project outcome is rated as marginally satisfactory. Institutional development is rated as modest and sustainability as uncertain. The PCR is satisfactory. However, it does not provide an adequate sectoral background against which issues of project relevance and efficacy can be carefully judged. At the time the PCR was prepared, the future status of the CIB was uncertain. The CIB had proposed that it be converted into a commercial bank, whereas the Government's idea was to consolidate CIB into the operations of the People's Construction Bank of China. More recently, the decision was taken to establish the CIB as a fully-owned subsidiary of the People's Construction Bank of China, but the corporate structure and degree of autonomy that CIB will have under the new arrangement is not yet known. A cluster audit of this and the follow-on project - the Fifth Industrial Credit Project (Loan 3075- CHA, approved in FY89) is planned. The audit would attempt to analyze the performance of subprojects and the sustainability and performance of CIB under its new organizational set-up. Attachment This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ FOR OFFICIAL USE ONLY PROJECT COMPLETION REPORT CHINA FOURTH INDUSTRIAL CREDIT PROJECT (CIB IV) (LOAN 2783-CHA/CREDIT 1763-CHA) CONTENTS Preface ............................................... i Evaluation Summary ..................................... iii PART I: PROJECT REVIEW FROM THE BANK'S PERSPECTIVE ... ..... 1 Project Identity ..................................... 1 Background ....................................... 1 Project Objectives and Description .......................... 2 Project Implementation ................................. 3 Institutional Aspects .................................. 4 Operational/Financial Performance of CIB ..................... 6 Loan Utilization and Subproject Implementation ................. 8 Bank Performance ................................... 15 Borrower Performance .................................. 16 PART II. PROJECT REVIEW FROM BORROWER'S PERSPECTIVE ... .... 18 PART III. STATISTICAL INFORMATION ....................... 19 Bank Loans and/or Credits to CIB .......................... 19 Project Timetable .................................... 21 Loan Disbursements ................................... 21 Status of Covenants ................................... 22 Use of Bank Resources ................................. 22 ANNEX A . ........................................... 24 ANNEX B . ........................................... 25 ANNEX C . ........................................... 26 ANNEX D . ............................................ 27 ANNEX E . ............................................ 28 Attachment 1 . ........................................... 35 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. I PROJECT COMPLETION REPORT CHINA FOURTH INDUSTRIAL CREDIT PROJECT (CIB IV) (LOAN 2783-CHA/CREDIT 1763-CHA) PREFACE This is the Project Completion Report (PCR) for the Fourth Industrial Credit Project in China for which Loan 2783-CHA for $250 million and Credit 1763-CHA for SDR 40.9 million were approved on March 3, 1987. The Project was closed on June 30, 1993, 12 months behind schedule. The Loan and Credit were fully disbursed and the last disbursement was on October 13, 1993. The PCR (Preface, Evaluation Summary, Parts I and III) was prepared by the Industry and Energy Operations Division, China and Mongolia Department. The Bank received Part II from the Borrower in January 1994 for inclusion in the PCR. Preparation of the PCR was started during a supervision mission of the Project in March 1993 and followed by a PCR mission in April 1994. The PCR is based the President's Report, Staff Appraisal Report, Loan Credit and Project Agreements, Supervision Reports, Bank's Disbursement Summaries, and draft PCR prepared by the Borrower as well as progress reports and audited financial statement of the China Investment Bank. I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ - iii - PROJECT COMPLETION REPORT CHINA FOURTH INDUSTRIAL CREDIT PROJECT (CIB IV) (LOAN 2783-CHA/CREDIT 1763-CHA) EVALUATION SUMMARY 1. Objectives. The Fourth Industrial Credit Project (CIB IV) was the fourth of a series of five credit projects to the China Investment Bank (CIB). It was intended to continue to assist the Government of China (GOC) to promote technology upgrading and modernization of the light industry sector as well as the further institutional development of CIB; CIB was also expected to initiate diversification of its sources of funds and products/services and develop into an autonomous, efficient and viable financial intermediary in industrial finance. The Project had two components: a credit line to CIB of $299.3 million and a technical assistance component of $0.7 million. The Project was approved on March 3, 1987, the legal documents signed on March 16, 1987 and became effective on June 22, 1987 within the scheduled date. 2. Implementation Experience. The Project was implemented successfully despite some difficulties and both Loan and Credit were fully disbursed. The Closing Date was extended by one year which was necessitated mainly by the slack in investment activities following the Tiananmen Square incident of June 1989. Under the Project, improvement in CIB's efforts to diversify its sources of funds and products/services was notable in terms of local currency deposit base and working capital financing; in terms of long-term operations, the improvement was marginal. CIB's arrears have been a growing concern and needs to be tackled as early as possible to prevent a financially unsustainable situation. The issue of the future role of CIB within the changing environment in the financial sector in China remains important. CIB has itself proposed to become a full- fledged commercial bank, but this has remained unresolved for sometime. On the contrary, it has been proposed recently that CIB be consolidated into PCBC. In line with GOC's reform policies for the financial sector which promote competition and market- oriented operations, the Bank believes that the original objective of establishing a relatively small but efficient and viable CIB is still valid and achievable but only with adequate support and commitment from GOC, PBC and other related agencies as well as strong leadership and competent management. Attainment of the objectives under the Project (as well as previous Bank industrial credit projects) and the sustainability of CIB now depends on the resolution of its future role and indeed, on its very existence as a separate and independent financial institution. 3. Findings and Lessons. Together with GOC and PCBC, the Bank was instrumental in the establishment of CIB which was the first of many new financial - iv - institutions to emerge in China during the early 1980s. Bank's financing through CIB has made available foreign exchange resources for the much needed technical renovation projects in the light industry sector. Under the Project, the Bark has helped CIB towards achieving its objectives: (a) the Bank contributed significantly in developing CIB's project appraisal capacity not only through CIB's appraisal manual which is now extensively used throughout China but also in terms of continuing training and feedback advice during supervision and subproject reviews; (b) with encouragement from the Bank to diversify its sources of funds, CIB has developed a reasonably successful deposit base for short-term local currency resources; (c) CIB has developed a sizable branch network, albeit with the support and assistance from PCBC and with the Bank's urging, most of these branches now have full-time presidents; and (d) under the Bank's guidance and technical assistance funding, CIB has developed a core staff which are well-trained and experienced in project finance. At the same time, there are still a number of aspects in which the Bank should continue to assist CIB's improvement, e.g., project/loan supervision and collection, corporate and financial planning, mobilization of long-term resources, And overall assets and liabilities management. 4. Under the CIB IV and other Bank projects with CIB, some of the lessons which may be learned would include the following. First, in establishing new financial institutions, there needs to be not only full commitment, support and clear ownership from the GOC as implementing agency but also a clear understanding and agreement on the long-term objectives of such institutions. In retrospect, there really was no full agreement on the long-term objectives for CIB. CIB was always considered by GOC merely as a way to channel Bank funds through the leadership of PCBC, thus the apparent lack of support for its development as an independent financial institution. The Bank could have accepted this much earlier in its relationship with CIB and pursued more aggressively a clear agreement and a more permanent solution to CIB's independence and long-term role. 5. Second, although the Bank has consistently emphasized the importance of project supervision and collection, there were perhaps inadequate programs for training and project requirements for appropriate organization and procedures for the activities under the Bank project. Furthermore, it was only after the fifth CIB Project (Loan 3075-CHA) that specific performance indicators such as collection ratios, were included in the design of CIB projects. These indicators would have been useful, effective tools and an incentive for the Bank to monitor and for CIB to develop its project supervision and financial performance which are key to its long-term viability. For example, under CIB V, without the specific targets agreed for the provisions for doubtful debts, CIB would not have been allowed to build such reserves. 6. Third, CIB's diversification of resources should have been pursued more aggressively. Specific targets as adopted under CIB V could have been initiated earlier under the Project. Furthermore, the slow implementation and unclear direction of reforms in the financial sector during the Project implementation greatly influenced CIB's overall development and performance. For sometime, CIB had virtually no competition for Bank funds and other suitable financial institutions could have been involved earlier in Bank projects. PROJECT COMPLETION REPORT CHINA FOURTH INDUSTRIAL CREDIT PROJECT (CIB IV) (LOAN 2783-CHA/CREDIT 1763-CHA) PART I: PROJECT REVIEW FROM THE BANK'S PERSPECTIVE Project Identity 1. Project Name Fourth Industrial Credit Project (China Investment Bank, CIB) Loan/Credit Number Loan 2783-CHA/Credit 1763-CHA RVP Unit East Asia and Pacific Region Country China Sector : Industry and Finance Subsector Financial Intermediary Background 2. In December 1981, the China Investment Bank (CIB) was established through a special charter approved by the State Council and was one of the first new institutions in what was expected to be an increasingly competitive and efficient financial system in China. At the time the CIB IV was approved in early 1987, the Bank had already provided $345.6 million in three credit lines to CIB. These three industrial credit projects I/ were to basically assist in the institutional development of CIB as it provided assistance, mainly foreign exchange financing, for the restructuring and technical upgrading of light industrial enterprises. CIB IV (the subject of this PCR) for $300 million and CIB V for another $300 million,2/ were to follow in 1987 and 1989, respectively, to continue on the development of CIB as an autonomous, efficient, viable and sound financial intermediary in industry finance. Because of the expertise it has acquired in project financing and appraisal, CIB also became an active participant (as financial intermediary or financial agent) in relending Bank funds in several provincial and sector projects, e.g., two projects in Tianjin in 1989 and 1993, Shanghai Industrial Development Project in 1991, Rural Industrial Technology Project (SPARK) in 1990, Beijing Environment Project 1/ Project Performance Audit Report, China - China Investment Bank (Loans 2226, 2434, 2659-CHA and Credits 1313, 1491, 1663-CHA), Report No. 9945 dated October 3, 1991. 2/ Under implementation but is fully committed; closing date is December 31, 1994. - 2 - in 1992, Medium Cities Project in 1992, Southern Jiangsu Environment Project in 1993 and more recently in ODS II Project in 1993. These projects involve Bank funds amounting to $2,070 million; loans in which CIB would absorb the full credit risks amount to about $1,215 million or 60 percent, the balance would be on a financial agency basis, i.e., no credit risk to CIB. 3. This PCR covers CIB IV (the Project). It describes the objectives, components, and main features of the Project and Bank Loan/ Credit, reviews CIB's performance on project implementation and provides institutional, financial, and operational background on CIB as well as the results of project specific analyses, and highlights some of the conclusions and lessons learned from the Project. Project Objectives and Description 4. The basic objective 3! of the Project was to assist the Government of China (GOC) to promote and implement technology upgrading and modernization in industry, to build up sound procedures and competent staff for project appraisal and investment financing, and to improve financial intermediation practices. The project would also further strengthen the influence of CIB in the decision making process of concerned government agencies and industrial enterprises relating to industrial investment. Specifically, the Project was to continue financing high priority industrial investments through CIB and assistance to the institutional development of CIB so that it could operate efficiently and become a model and catalyst in the ongoing reforms of the investment design and selection system in China. CIB was also expected to diversify its sources of financing by raising resources from international and domestic capital markets. The Project had two major components: a credit line of $299.3 million and $0.7 million in technical assistance to support the training of CIB staff. 5. Main Features of the Bank Loan/IDA Credit. Similar to previoul projects with CIB, the People's Republic of China (PRC) was the borrower of the Bank Loan and IDA Credit. The proceeds were relent to CIB for 20 yeai s including a grace period of five years with CIB being allowed to rollover the funds. CIB's subloans would normally not extend beyond seven years but the longest maturity should in no case exceed twelve years. Similar to CIB I through III, the GOC will charge CIB a fixed interest rate 7 percent and GOC will absorb the variable interest rate risks. CIB's obligations to GOC and CIB's subloans will be denominated in US Dollars with GOC absorbing the foreign exchange risks between the US Dollar and Bank's currency pool index for the Bank Loan and SDR for the IDA Credit. For its subloans, CIB will charge an interest rate of no less than 8.5 percent (similar to CIB III but up from 8.0 percent for CIB I and II). 31 President's Report, Fourth Industrial Credit Project - Report No. P-4453-CHA, dated February 6, 1987. - 3 - 6. Eligibility Criteria of Subloans.4/ All the subprojects to be financed out of the Bank Loan/Credit were to meet the following eligibility criteria: (a) subprojects would be in the manufacturing sector and have a minimum financial and economic rate of return of 12 percent; (b) projects in the heavy industries would be eligible only for modernization or energy/material savings; (c) aggregate subloan to a single enterprise should not exceed $15 million equivalent; and (d) borrowing enterprises/companies should have satisfactory projected financial operations and position. Initial CIB "free-limits" under the Project were as follows: $2.5 million on subloans from its branches in Shanghai, Tianjin and Jiangsu, $1.5 million for branches in Hebei, Hubei, Fujian, Lioaning, Anhui and Zhejiang, and $1.0 million for its other 10 branches. To encourage more delegation of decision making responsibility and with the improving appraisal capabilities of the branches, the Bank's free-limits to CIB were to be twice CIB's own free- limits to its individual branches (under CIB V). CIB's current free-limits with the Bank are: $4.0 million for its branches in Shanghai, Tianjin, Jiangsu, Zhejiang, and Hebei, $2.0 million for Hubei, Fujian, Lioaning, Anhui, Shandong, Heilongjiang, Beijing, Hunan, Jilin, Guangdong, Shenyang, Dalian, Qingdao, and Guangzhou, and $1.0 million for the other 12 branches. Project Implementation 7. Loan Effectiveness and Implementation Schedule. The Project was approved by the Bank on March 3, 1987; the Loan, Credit, and Project Agreements were signed on March 16, 1987 and became effective on June 22, 1987 within the scheduled date. The original Closing Date was June 30, 1992 but was extended by one year to June 30, 1993 and the Loan Account was actually closed on October 13, 1993. The delay was due mainly to the general slow down in investment activity resulting from the Tiannanmen Square incident in June 1989. In fact, CIB had no additional commitments under the Project in the 1990/91 period. However, two other factors contributed to the slow utilization. The Bank had held processing and approval of several subprojects until CIB provided satisfactory clarifications on its interest rate policies, e.g., CIB was charging interest rates of lower than 8.5 percent which is the minimum agreed under the Project. It was also only at the latter end of 1992 that CIB initiated cancellations of subloans with no amounts disbursed and subloans with some undisbursed balances which were no longer required by the subproject. This created a large unallocated portion under the Loan and Credit for which CIB had to present other eligible subprojects. This caused further delays since many of the subprojects presented could not be authorized under the Loan/ Credit due to the short disbursement period remaining (six months) and due to grounds of eligibility, e.g., the subloans were to be provided to CIB's clients who in turn, would use the proceeds to finance their equity investments in separate joint venture companies. Despite these difficulties, both Loan and Credit were fully disbursed with no cancellations. 4/ Schedule I of the Project Agreement dated March 16, 1987. -4- Institutional Aspects 8. CIB's Role. During the Project, the future role of CIB within the changing environment in the financial sector surfaced as the important issue for CIB, GOC, and the Bank. It became apparent that CIB showed limited progress in diversifying its fund sourcing and its products and services. It continued to show dependence on Bank funds with its access to the market subject to GOC approval which was limited and at times not available . Indeed, a development strategy for CIB agreed between GOC and the Bank was crucial for the future development of CIB into an autonomous and viable financial institution in China. This strategy was developed during the preparation of CIB V which was approved in 1989. It spelled out the need for CIB to function more independently as a banking institution, to provide a wider range of products and services and to mobilize foreign and local resources from varied sources including the capital markets through issuance of long-term bonds. This strategy had some but limited successes. CIB was able to raise funds from the Asian Development Bank, KfW of Germany, and some token amounts in commercial credits from Japan, Hongkong, and Europe. With local currency funds no longer available from GOC, CIB expanded fairly successfully its deposit mobilization and working capital loans despite limitations to enterprise deposits only. By 1993, CIB had significant international operations in terms of foreign exchange settlements and transactions and under CIB V, initiated a small number of equity investments and lease financings. By this time, CIB's major operations were closer to those of a commercial bank. However, CIB was still not fully under the jurisdiction or supervision of the People's Bank of China (PBC) and thus, could not avail of borrowings from PBC. 9. In 1992, and to settle the issue of its role in the financial sector, CIB had proposed to become a full-fledged commercial bank subject to the approval of GOC. PBC, and PCBC. The Bank had no objection to this proposal provided a satisfactory strategy including appointment of qualified management, was implemented with the appropriate technical assistance. In January 1994, however, the Bank was informed t. GOC's intention to consolidate CIB into PCBC. The Bank's position5/ was that the original objective of establishing a relatively small but efficieitt and viable CIB is still valid particularly in line with GOC's reform policies for the financial sector which promote competition and market-oriented operations. One of the major objectives of the ongoing reforms in the financial sector in China is to "enhance competition within the framework of a sound and transparent institutional and regulatory infrastructure." New banks are being licensed including joint-venture and foreign banks. Under this environment, CIB's proposal would seem feasible. However, the success of an institution such as CIB would depend on the support and commitment of GOC, PBC, and other agencies to ensure adequate autonomy, strong leadership and competent management. Another aspect is the need to corporatize the "new" CIB and transform it into a limited liability shareholding company. The shareholders would include the GOC, financial institutions/banks and eventually individuals. To attain improved access to the international markets and know- 5/ Bank's letter of January 31, 1994 to the Ministry of Finance. - 5 - how in modem banking, foreign equity participation in the new CIB should seriously be considered. 10. Policies and Strategies. CIB's Policy and Development Strategy Statements which were revised in September 1986 as part of the appraisal of CIB IV, are the basic guidelines for its operations. Under the Project, it remained a specialized bank designated by the GOC to raise foreign exchange resources and provide investment loans to the enterprises in the industrial sector. The Project initiated the desired shift to diversify the sources and uses of its funds and attain more management autonomy. A specific operational plan for CIB was agreed which covered (a) raising capital market loans of $130 million in 1987 and 1988; (b) appointment of full-time presidents in its branches; (c) delegation of approval authority to branches according to capability; (d) appointment of a technical advisor, and recruitment and training of other additional staff; and (e) creation of an economic and research unit to undertake market and economic analysis of subprojects, subsector studies and analysis, and monitoring of economic developments in China and abroad. These were essentially achieved and implemented under the Project although as of December 31, 1993 full-time presidents were appointed in 27 branches out of its total 31 branches. 11. Organization, Management and Staff. Annex A shows the organization chart of CIB as of December 31, 1993. The main differences from that during the appraisal of CIB IV are as follows: Table 1: CIB ORGANIZATION AND STAFFING July 31, 1986 December 31, 1993 No. in board of directors 33 17 No. in managing committee 1i 12 President 1 1 Executive vice-presidents 2 3 No. of head office depts. 6 13 Total no. of staff 655 2,219 - professional staff 563 1,910 No. of head office staff 67 187 professional staff 132 159 No. of branches 19 31 - with full time presidents 0 27 Note: Branches without full-time presidents: Ningbo, Hebei, Guangdong, Qingdao. Prior to 1986, CIB's staff were transfers from PCBC and its presidents both at the head office and branches were concurrently vice-presidents of the PCBC branches; it was only - 6 - in August 1986 that the head office president was appointed on a full time basis as chief executive officer (CEO). To help attain administrative independence from PCBC, an emphasis under the Project (included in its agreed operational plan) was the appointment of full time presidents in all branches by the end of 1988. In 1987, staff recruitment from the market and outside PCBC was initiated. The issue of autonomy from PCBC remains an issue to date with four branches still without a full-time president with staff housing and branch location still provided and determined by PCBC. Under the Project, delegation of subloan approval authority to the branches was initiated with each branch given a "free limit" which became the bench mark for CIB's own free limits with the Bank (para. 6). Operational/Financial Performance of CIB 12. Loan Operations. Annex B contains CIB's comparative statement of actual and projected loan operations for 1987-92. CIB's actual and cumulative loan operations as compared to projections during appraisal were as follows: Table 2: CIB - LOAN APPROVALS AND DiSBURSEMENTS- PROJECTED AND ACTUAL, 1987-92 (In Y million unless otherwise stated) Actual/ Projected Actual projected Approvals: Local currency 4,126.4 1,055.9 0.26 Foreign currency 10,126.5 5,694.3 0.56 ($ million) (2,724.6) (1,333.9) 0.49 Disbursements: Local currency 3,383.6 1,612.2 0.48 Foreign currency 8,857.9 6,834.3 0.77 ($ million) (2,383.5) (1,527.4) 0.60 Note: Projected figures as provided in the Bank's Staff Appraisal Reports (SAR) for CIB IV (1987-1988) and CIB V (1989-1992); Actual figures as provided by CIB. 13. In 1985, CIB had an exceptional increase in its loan operations with total loan approvals reaching Y 973 million or three times that of 1984. The loan demand continued to increase and led to the Bank's third industrial credit (CIB III) which was approved in 1986 as "bridging" loan. Due to the developing resource constraints, 1986 approvals decreased slightly. Starting in 1987, CIB's operations reached a new high level which were about twice the level of 1985 and 1986. This level continued until the first half of 1989 and the full impact of the political incident of June 1989 was evident in 1990 with foreign currency loan approvals down to less than half of 1989 levels; local currency loan approvals were minimal in 1990 and showed a negative figure due to cancellations in 1991. As indicated in Table 2, overall loan approvals were about 47 percent of projection made during appraisals. As shown in Appendix B, actual performance was above projections prior to 1989 but way below projection after 1989. Besides the political turmoil in June 1989, the austerity program of GOC during the early 1990s and slow down in the growth of its resources particularly foreign currency had contributed to the lower level of operations compared to projections. 14. Financial/Operational Performance. A comparative summary of CIB's financial and operational performance from 1987-92 is shown as Annex C. In terms of profitability, actual performance was disappointing compared to projections in terms of a declining trend and much lower level net income. However, actual expansion of its assets was much higher than projected; e.g., CIB deposits accumulated to Y 6.0 billion which were not shown in the projection and this lead to a substantial volume of short-term working capital loans which were about 5 times the projections by the end of 1992. Actual long-term borrowings in local currency were about 4 times the projected amounts. Consequently, at the end of 1992, CIB's total assets of Y 23.9 billion ($4.2 billion equivalent) were almost twice the projected levels; CIB's equity did not increase as much as projected and its debt/equity ratio exceeded the agreed level (5 times) at about 5.22 times at the end of 1992. In brief, CIB's actual operations and performance are quite different than projected (para. 9). The actual importance of deposits, working capital loans, and local currency borrowings to its operations was not fully reflected in the projections although these operations were not then expected to be major CIB operations. 15. Quality of Loan Portfolio and Loan Collection Performance. Annex D contains the breakdown of CIB's arrears as of December 31, 1992. CIB's total arrears amounted Y 334.47 million and were equivalent to 4.6 percent of total long-term portfolio (3 percent in 1991) which is still reasonably low. However, the trend is worsening-arrears in 1992 increased by 53 percent over those of 1991. The ageing of its arrears is also deteriorating, e.g., arrears over three months were 93 percent of total in 1992 compared to 59 percent in 1991 and arrears over two years were 43 percent of the total in 1992 versus 22 percent in 1991. Its collection performance in 1992 was also lower than in 1991 with collection ratios as follows: 73.4 percent and 78.8 percent for foreign and local currency long-term loans, respectively; working capital loans had ratios of 96.2 percent for foreign currency and 97.4 percent for local currency. During the implementation of the Project, arrears and collection problems became major issues for CIB. Consequently, starting 1993 and as required under the Bank's Tianjin Industrial Development Project (TIDP), CIB adopted collection targets as shown in Table 3. 16. To achieve these collection rates, CIB has adopted several measures to improve collections including (a) to prepare monthly reports from branches on overdue accounts for head office analysis and supportive actions; (b) to establish working groups for collections in branches headed by their presidents; (c) to set up a special fund to provide short-term loans to overdue accounts experiencing temporary shortage in working capital; (d) to reschedule repayment terms of selected clients; and (e) to pursue collections - 8 - Table 3: CIB's COLLECTIONS TARGETS (percentage) 1992 1993 1994 1995 (actual) ---- (projected targets) ----- Long-term/fixed asset loans: - foreign currency loans 73.4 75.0 80.0 85.0 - local currency loans 78.8 78.0 80.0 90.0 Short-term/working capital loans: - foreign currency 96.2 97.0 97.0 97.0 - local currency 97.4 98.0 98.0 98.0 Overall collection rate 94.9 87.0 88.7 92.5 from guarantors. Additional measures which the Bank has recommended are: to examine CIB's policy on the maturity of its subloans, e.g., there may be a need to provide a longer repayment period than currently provided which is normally within five years; to undertake studies in sectors where a substantial portion of arrears is concentrated; to concentrate its efforts on larger arrears which are overdue for longer periods, i.e., over two years. To be effective, the above strategies should result in specific actions to be taken within specific timeframe. Loan Utilization and Subproject Implementation 17. Actual Utilization and Disbursements. The Loan and Credit udder the Project amount to $250 million and SDR 40.9 million respectively, equivalent to $300 million of which $0.7 million was for technical assistance and the balance of $299.3 million was for a credit line for onlending to light industry. The number of subloans and amounts disbursed under the Loan and Credit of the Project are shown in Table 4. Annex E lists the individual subprojects and amounts disbursed under Bank's Loan 2783 and Credit 1763-CHA. 18. As noted in Table 4, the Project provided a total of 228 subloans (net of cancellations). Seventy-six subloans amounting to $180 million equivalent were above CIB's free-limit and were reviewed by the Bank; these represented 33 percent of total subloans by number and 60 percent by amount which is about what was expected during appraisal. The "above free limit" subloans would have been larger except for the higher free-limits which were implemented to be consistent with those under CIB V. The average subloan size was $1.3 million (ranging from about $0.147 to $5.5 million) which is similar to the average subloan size under CIB II and III and typifies the size and type of subprojects which CIB normally covers. - 9 - Table 4: SUBLOANS UNDER CIB IV ($/SDR million) Number of Percent Amount Percent subloans of Total Disbursed of Total Loan 2783-CHA ($): Above free limit 64 37.4 161.831 64.7 Below free limit 107 62.6 88.193 35.3 Total 171 100.0 250.004 100.0 Credit 1763-CHA (SDR): Above free limit 12 21.1 15.163 38.9 Below free limit 45 78.9 23.756 61.1 Total 57 100.0 38.919 100.0 Note: The amounts of SDR 1.407 million under Credit 1763-CHA and $4,173 under Loan 2783-CHA were disbursed to cover foreign exchange fluctuations. 19. Subproject Review.6/ Based on the Bank's review, some of the major characteristics and recommendations to improve CIB's appraisal reports included the following. CIB has introduced the use of a computerized program in its financial projections which should facilitate report preparation and provide more time for analysis. The major assumptions used for projections should have been included in its reports as standard information. However, CIB's appraisal could still be improved in the area of market analysis; its analysis should be supported more with market data and information, detailed information on marketing arrangements such as pricing, terms of payment, legal agreements, etc. There is also a need for better monitoring and feedback on projects; for example, appraisal of identical or similar projects should be compared and analyzed for consistency. CIB's head office needs to continuously monitor adherence to approved lending policies. In some cases, CIB submitted subloans to the Bank which were found ineligible for financing under the Project; also, some projects were approved which were not within its approved scope of operations (e.g., outside the industrial sector). There is also the need to improve quality control on its appraisal reports to ensure accuracy of figures (even typos) and information and avoid outdated reports. 6/ The Project Appraisal Manual is currently being updated to reflect the new accounting standards and tax regulations and ex-post analysis of subprojects. - 10 - 20. Technical Assistance Component. Under the Credit 1763-CHA, SDR 0.575 million was earmarked for technical assistance component for CIB staff training. Actual amount disbursed was SDR 574,818.98 (from 1989 to 1993) and involved 131 CIB staff, about 7 percent of its total staff as of June 30, 1993. The training courses under the TA were mostly short term (below three months) with the following major breakdown: Table 5: BREAKDOWN OF TA COMPONENT Number of % of Training course CIB staff Cost Total ($) 1. Bank management 14 240,179.43 30 2. Project supervision and appraisal 34 126,788.43 16 3. Senior seminar/tours 14 102,245.05 13 4. International clearing foreign exchange operations 12 76,023.70 10 5. Computer training 9 65,969.20 8 6. Others 49 190,772.50 23 Total 132 801,978.29 100 Note: The category "Others" included training in major areas such as development and commercial bank management, securities and financial markets, administrative and personnel management. Of the 132 staff, 177 have remained with CIB: 79 at head office and 38 at its branches. 21. Subprojects Financed under the Project. As shown in Table 6, there were 228 subloans under the Project for new and balancing, modernizing, rehabilitation and expansion (BMRE) subprojects. Like previous credit lines, the subloans were mostly for BMRE. These subloans were spread over 28 provinces and municipalities. Unlike previous credits, the subloans under the project were spread more evenly among CIB's branches with no one branch accounting for more than 9 percent. The active branches such as Jiangsu, Tianjin, Shanghai, and Liaoning continue to have the larger share of the subloans but at much lower level. Other branches such as Shandong, Shenyang and Guangdong showed more active use of the Bank funds under the Project. 22. Sectoral Distribution. Textile continued to account for a substantial portion of the subloans under the Project with 55 subloans (24 percent of total) amounting to $82.8 million equivalent to 27 percent of total subloans. Light industry group and - 11 - Table 6: SUBLOAN BREAKDOWN UNDER CIB IV Amounts % of approved % of Number Total ($ million) Total Type of Project New 32 14.0 48.49 16.0 BMRE /a 196 86.0 253.65 84.0 Type of Enterprises State-owned 208 92.0 280.99 93.0 Collectives 14 6.0 12.09 4.0 Other nonstate-owned 5 2.0 9.06 3.0 Sector Textiles 55 24.0 82.82 27.0 Light industry 38 17.0 51.05 17.0 Machinery 36 16.0 47.17 16.0 Electronics 20 9.0 21.53 7.0 Pharmaceutical 16 7.0 26.39 9.0 Construction materials 11 5.0 17.34 6.0 Others /b 52 22.0 55.80 18.0 Location Jiangsu 26 11.0 21.15 7.0 Tianjin 19 8.0 24.17 8.0 Hubei 19 8.0 15.11 5.0 Shandong 17 7.0 27.19 9.0 Shanghai 15 7.0 27.19 9.0 Liaoning 15 7.0 21.15 7.0 Guangdong 11 5.0 15.11 5.0 Zhejiang 10 4.0 9.06 3.0 Jilin 9 4 0 12.09 4.0 Hebei 9 4.0 15.11 5.0 Dalian 8 4.0 6.04 2.0 Sichuan 8 4.0 9.06 3.0 Shenyang 7 3.0 12.09 4.0 Anhui 7 3.0 9.06 3.0 Qingdao 6 3.0 12.09 4.0 Guangxi 6 3.0 9.06 3.0 Heilongjiang 4 2.0 12.09 4.0 Others (11) 32 13.0 45.30 15.0 Total 228 100.00 302.10 100.0 /a BMRE = balancing, modernization, rehabilitation and expansion. lb Others includes pharmaceutical, packaging, food, metallurgy and agribusiness. Source: Breakdown provided by CIB. - 12 - machinery group accounted for 17 percent each and 16 percent each by number and amount of subloans respectively. These three groups together accounted for 60 percent of the total amount of subloans. Diversification of its portfolio is one of CIB's objectives and under CIB V, it adopted a exposure ceiling of 25 percent for any sector and exposure to textiles was about 23 percent of total portfolio as of the end of 1992. 23. Type of Enterprises. State-owned enterprises dominated the use of subloans which numbered 208 out of 228 or 92 percent and $280 million out of $302 million or 93 percent. The balance of about 7 percent was accounted for by collectives and other nonstate enterprises (mostly joint ventures) which was slightly lower than the target of 10 percent of total approvals. This target was agreed under CIB V. 24. Subproject Costs and Financing. No data was provided in the estimates of subproject costs although based on experience on previous credit lines, the CIB's portion of the total investment cost averaged about 65 percent. Based on a limited sample of subprojects, the average percentage of CIB financing to total investments was 62-52 percent in foreign exchange and 10 percent in local currency with the enterprises providing most of the local currency funds averaging 38 percent of total investments (these could also be in the form of other local currency loans). Total investments were about equally divided between foreign and local currency requirements. Using these averages, the estimated actual total investments of the subprojects under CIB IV are shown in Table 7. The sample also indicates that there were usually no overruns in the foreign currency portion (in fact a slight underrun) but an average overrun of 5 percent in the local currency component. Table 7: ESnMATED ACTUAL PRoJECr INVESTMENTS Amount Percent ($ mihion) Total investments 573.0 100.0 (foreign currency) (292.0) (51.0) (local currency) (281.0) (49.0) CIB loans 355.0 62.0 (foreign currency) (298.0) (52.0) (local currency) ( 57.0) (10.0) Enterprise funds 218.0 38.0 25. Subproject hnplementation. Implementation of the subprojects under the Project was basically satisfactory. As of June 30, 1993 there were 197 (86 percent) subprojects in operations and 31 (14 percent) were still under construction. Out of the total subprojects in operation, 124 (63 percent) were completed on schedule, 41 - 13 - (21 percent) were delayed for up to six months, 26 (13 percent) were delayed for six months to 12 months, and 6 (3 percent) were delayed for more than one year to two years. By comparison, the on-time completion of subprojects for CIB II was 72 percent and 42 percent for CIB III. Some of the common and major causes of delays included: shortage of and delay in the provision of counterpart funds arising mainly to increased local currency costs, change in project design to implement project within the budget which proved to be lower than actual costs during procurement, delayed delivery and installation difficulties of some imported equipment. In terms of capacity utilization, the performance of the subprojects in operation is shown in Table 8. Table 8: CAPACITY UTILIZATION OF SUBPROJECTS IN OPERATION Percent of capacity Number of subprojects Percent of total 90 percent-100 percent 99 50 percent 70 percent-90 percent 20 10 percent 50 percent-70 percent 27 14 percent below 50 percent 51 26 percent 26. Compared to CIB II and III, the operating performance of subprojects under CIB IV indicates a deteriorating trend although the reasons for the low performance are much the same and included (a) inadequate working capital due higher prices of inputs; (b) operational difficulties with new and imported equipment; and (c) low and ucclining domestic market demand. Based on the above figures, it can be estimated that at least 40 percent of the subprojects (those operating at 70 percent of capacity and below) would be incurring losses or at best break-even. This performance is also reflected in the overall deterioration of CIB's arrears situation (paras. 16 and 17) and repayment experience of the subprojects under CIB IV (para. 27). 27. Repayment Experience. Table 9 summarizes the collection and arrears situation of 197 subprojects under CIB IV. Repayment experience under the Project indicates a reasonably high overall collection ratio of 87 percent although the "on-time" collection is at 75 percent which reflects the average experience of CIB's total portfolio of long-term loans. However, the cumulative arrears under the Project amount to Y 155 million equivalent or 45 percent of the total arrears ending 1992 representing only 35 companies or only 4 percent of the total number of companies in CIB's portfolio. Furthermore, the ten companies with the largest arrears account for Y 95 million or 61 percent of total arrears under the Project (ranging from Y 1.0 million to Y 28 million in arrears). As indicated in para. 16, CIB will continue to face arrears problems given that the problems of its clients do not seem to have been addressed early enough and are fast - 14 - Table 9: COLLECTION AND ARREARS POSmON (As of June 30, 1993) Principal and interest Number of Foreign currency Local currency projects ($ million) (Y million) 1. Cumulative amount due 197 190.4 162.4 2. Cumulative amount paid 137 165.6 141.3 3. Amount of arrears 35 24.8 21.1 4. Amount paid on time 116 144.1 122.9 Ratios ( percent): - 2/1 69.5 87.0 87.0 - 3/1 17.8 13.0 13.0 - 4/1 59.0 75.7 75.7 Note: The number of projects is net of 31 subprojects under construction; there were 197 under repayment period of which 45 have fully paid their subloans. becoming hard core issues and are more difficult to resolve, e.g., evidenced by the increasing arrears which are over one year. 28. Furthermore, CIB's accumulated provisions for doubtful debts need to be reviewed. As the end of 1992, CIB's provisions accumulated to Y 227.99 million equivalent of 1.46 percent of its gross portfolio (3.1 percent of long-term portfolio). In addition to CIB's collection strategies and efforts, it would require additional and larger provisions which in turn, will result in the need for larger additional equity contributions to maintain a strong capital structure. As it is, CIB's long-term debt equity ratio is above the agreed maximum level of 5 times which is still considered prudent for its type of operations. The debt-equity issue is still outstanding under CIB V for which the Bank is awaiting for CIB's strategy and action plan to achieve such ratio as agreed under all the agreements with the Bank. 29. Economic and Financial Rates of Return. Similar to CIB II and III, the ex-ante financial (FRR) and economic (ERR) rates of return for the Project were within a wide range: 15 percent to 74 percent for FRR and 14 percent to 86 percent for ERR. The average FRR and ERR were 45 percent and 38 percent respectively. Based on a sample of ten subprojects, the ex-post calculations show the following results: (a) the ex- post FRR were lower than the ex-ante estimates with an average of 21 percent (ranging - 15 - from 12 percent to 29 percent) compared to an average ex-ante FRR of 27 percent (ranging from 18 percent to 42 percent). However, the ex-post rates were satisfactory in that all except for one project had FRRs of over 17 percent. (b) the ex-post ERR were also generally lower that ex-ante estimates; the average ex-post ERR was 28 percent (ranging from 17 percent to 79 percent) compared to an average ex-ante ERR of 34 percent (ranging from 18 percent to 47 percent). Based on the implementation and arrears situations for the subprojects, the results of the sample may not be representative. For example, about 40 percent or 91 enterprises were operating below 70 percent of capacity which indicates losses or about at the break-even level (paras. 25 and 26). Furthermore, there were 35 companies (18 percent of those in operation) which had arrears with CIB; 31 companies (14 percent of total) were still under construction and not operating. 30. Other Economic Benefits. It is estimated that the operations of 197 completed projects generated incremental revenues of about Y 2,950 million ($550 million) and Y 200 million in taxes, and an equivalent of $260 million in foreign exchange earnings (about 50 percent of revenues) indicating the export orientation of CIB clients. The 197 subprojects also created incremental employment for close to 14,000 or an average of 71 jobs per project. The incremental jobs for the 228 subproject should amount to about 16,000 at estimated average cost of $35,000 per job which is reasonably low. 31. Project Sustainability. The benefits derived from the project could only be assured with continuing achievement of CIB's long-term objective-to become an independent, efficient and viable financial institution. This, in turn, is dependent on the commitment and support of GOC and other related agencies. CIB needs to evolve with the changing environment particularly in the financial sector. In reviewing CIB's operations and implementation of the Project as well as CIB V during the seven-year period (1987-93), CIB's role in the financial sector in China has been the focus of the Bank and GOC dialogue (paras. 8-10). It became evident that despite the Bank's concerted efforts, GOC has not been fully committed to the same long-term objective for ClIB. It has become clearer that to GOC, CIB under the leadership of PCBC, is still limited to a convenient channel for Bank funds. Thus, the proposal to consolidate CIB into PCBC. If this is implemented, the main objective of the various Bank projects for CIB would be lost, i.e., to develop CIB as an independent and sound financial institution providing meaningful competitive services in the financial sector. Bank Performance 32. Together with GOC and PCBC, the Bank was instrumental in the establishment of CIB which was the first of many new financial institutions emerging in China. Bank's financing through CIB has made available foreign exchange resources for the much needed technical renovation projects in the light industry sector. Under the Project, the Bank's performance has helped CIB towards achieving its objectives: (a) the Bank contributed significantly in developing CIB's project appraisal capacity not only through CIB's appraisal manual which is now extensively used in China but also in terms of continuing training and feedback advice during supervision and subproject reviews; (b) with encouragement from the Bank to diversify its sources of funds, CIB has developed - 16 - a reasonably successful deposit base for short-term local currency resources; (c) CIB has developed a sizable branch network, albeit with the support and assistance from PCBC and with the Bank's urging, most of these branches now have full-time presidents; and (d) under the Bank's guidance and technical assistance funding, CIB has developed a core staff which are well-trained and experienced in project finance. At the same time, there are still a number of aspects in which the Bank should continue to assist CIB's improvement, e.g., project/loan supervision and collection, corporate and financial planning, mobilization of long-term resources, and overall assets and liabilities management. 33. Under the CIB IV and other Bank projects with CIB, some of the lessons which may be learned would include the following. First, in establishing new financial institutions, there needs to be not only full commitment, support and clear ownership from the GOC as implementing agency but also a clear understanding and agreement on the long-term objectives of such institutions. In retrospect, there really was no full agreement on the long-term objectives for CIB. CIB was always considered by GOC merely as a way to channel Bank funds through the leadership of PCBC, thus the apparent lack of support for its development as an independent financial institution. The Bank could have accepted this much earlier in its relationship with CIB and pursued more aggressively a clear agreement and a more permanent solution to CIB's independence and long-term role. 34. Second, although the Bank has consistently emphasized the importance of project supervision and collection, there were perhaps inadequate programs for training and project requirements for appropriate organization and procedures for this activity under the Bank projects. Furthermore, it was only after the fifth CIB project that specific performance indicators such as collection ratios, were included in the design of Bank project for CIB (paras. 15 and 16). These indicators would have been useful, effective tools and an incentive for the Bank to monitor and for CIB to develop its project supervision and financial performance which are key to its long-term viability. For example, under CIB V, without the specific targets agreed for the provisions for doubtful debts, CIB would not have been allowed to build such reserves (para. 16). 35. Third, CIB's diversification of resources should have been pursued more aggressively. Specific targets as adopted under CIB V could have been initiated earlier under the Project. Furthermore, the slow implementation and unclear direction of reforms in the financial sector during the Project implementation had greatly influenced CIB's overall development and performance. For sometime, CIB had virtually no competition for Bank funds and other suitable financial institutions could have been involved earlier in Bank projects. Borrower Performance 36. Under difficult circumstances, CIB was able to implement the project satisfactorily. The Loan and Credit under the Project were fully disbursed although the Closing Date had to be extended by one year. Its progress reporting were delayed and lately has not been adequate. However, submission of its annual long-form financial audit reports has been satisfactory and on time. For its existing operations, CIB needs to focus - 17 - in implementing its strategy to improve project supervision and loan collections which are key to its long-term viability. At the same time, CIB needs to vigorously pursue a clear and firm resolution on its future role in the financial sector and prepare a feasible plan for its transformation into a full-fledged commercial bank. In this effort and as indicated to CIB and GOC, the Bank is prepared to consider providing technical assistance to ensure a smooth transition and operations of the "new" CIB. 37. Project Documentation and Data. The Loan, Credit, and Project Agreements with GOC and CIB for the Project were adequate for achieving the Project objectives; they were also in reasonable detail and served as useful guide during implementation. Likewise, the Appraisal Report was well-prepared and also was a useful reference for the Bank, CIB and GOC. CIB also provided progress reports and annual long-form financial audit reports which were valuable supervision and monitoring data. Part II of this PCR contains a completion report for the Project prepared by CIB. - 18 - PART II. PROJECT REVIEW FROM BORROWER'S PERSPECTIVE (See Attachment 1) - 19 - PART III. STATISTICAL INFORMATION 1. Bank Loans and/or Credits to CIB A. First Industrial Credit Project (CIB I) Amounts: Loan - $40.6 million Credit - SDR 28.0 million Total - $71.5 million (actual) Purpose: To assist CIB in meeting the need for foreign exchange for industrial financing, improving investment efficiency, and organizing and improving CIB's capacities for project design, selection, appraisal, and technology transfer. Year of approval: 1983 Status: Project completed as of June 30, 1989. B. Second Industrial Credit Project (CIB II) Amounts: Loan - $105 million Credit - SDR 65.8 million Total - $183.2 million (actual) Purpose: The main objective of CIB II was to continue the institutional building efforts of CIB I. These efforts included expanding the bank's branches and assisting the bank in the appraisal of larger projects; and allowing the bank to meet its resource requirements, which were expanding much faster than anticipated in CIB I. Year of approval: 1984 Status: Project completed as of June 30, 1990. C. Third Industrial Credit Project (CIB III) Amounts: Loan - $75 million Credit - SDR 22.8 million Total - $103.6 million (estimated) Purpose: To assist the CIB in financing productive facilities and resources in China that will contribute to the economic and social development of the country; to provide the CIB with the funds needed to develop its operations and carry out its Charter and Statements of Policy and Strategy. - 20 - Year of approval: 1986 Status: Project completed as of June 30, 1992 D. Fourth Industrial Credit Project (CIB IV) Amounts: Loan - $250 million Credit - SDR 40.9 million Total - $300 million equivalent (at appraisal) Purpose: To assist the government in promoting and implementing technology upgrading and modernization in industry, to build up sound institutions and procedures for project appraisal and investment financing and to improve financial intermediation practices; specifically, to continue institutional assistance to the CIB and provide a general line of credit for industry. Year of approval: 1987 Status: Project completed as of June 30, 1993 E. Fifth Industrial Credit Project (CIB V) Amount: Loan - $300 million Purpose: To continue institutional strengthening of CIB in its traditional and new areas of activities; to expand and diversify CIB's resources, to remove its operational bottlenecks, and to provide funds for investment in the modernization and restructuring of light industry. Year of approval: 1989 Status: CIB V is fully committed and progressing satisfactorily; as of February 28, 1994, disbursements were $171 million (57 percent); the loan closing date is December 31, 1994. - 21 - 2. Project Timetable Date Timetable of key events CIB IV First presentation to Bank/IDA 12/85 First Bank mission to identify project 04/86 Time taken to prepare the project 3 months Agencies preparing the project Bank/CIB Departure date of appraisal mission 07/86 Completion of negotiations 01/87 Board approval , 02/11/87 Loan signing 03/16/87 Planned effectiveness date 06/30/87 Actual effectiveness date 06/22/87 Latest commitment date 06/30/89 Original closing date 06/30/92 Actual closing date 06/30/93 3. Loan Disbursements ($ million) Bank fiscal year 1987 1988 1989 1990 1991 1992 1993 1994 CIB IV Appraisal estimate 15.0 81.0 186.0 255.0 288.0 300.0 300.0 300.0 Actual - 34.3 133.6 213.0 225.0 211.8/a 287.2 303.7 Actual as % of estimate - 42.4 71.6 83.5 78.1 70.6 95.7 100.0 Date of final disbursement 10/13/94 /a $13.2 million reduction represents the refund of its Special Account. - 22 - 4. Status of Covenants Deadline for Covenant Subject compliance Status Sec. 3.02-PA Maintenance of a 5:1 long- At all times Not in compliance as of term debt/equity ratio or 12/31/92 lower In compliance as of 12/31/93 Sec. 3.01 Submission of audited Annually In compliance financial statements PA = Project Agreement 5. Use of Bank Resources A. Staff Inputs (staff-weeks) Actual CIB IV Through appraisal/ 131.8 Board approval 50.6 Supervision 55.8 Total 238.2 - 23 - B. Missions Stage of Month/ No. of Days in Specialization Performance Types of project cycle year persons field represented rating status problems CIB IV Through appraisal/ Board approval /a 10/83 3 20 Eco Fin Eng 2 M Supervision /b 07/84 4 13 Eco Fin Eng 2 M Supervision /b 01/85 3 15 Eco Fin Eng 2 M Supervision /c 07/86 3 7 Eco Fin Eng 2 M Supervision /d 05/87 2 8 Eco Fin 2 M Supervision le 05/88 2 6 Eco Fin 2 M Supervision /e 10/88 3 5 Eco Fin Eng 2 M Supervision /e 01/89 2 3 Eco Fin 2l M Supervision /e 10/89 2 3 Fin Eng 1 Supervision /e 09/90 3 3 Fin Eng 1 Supervision Le 03/92 1 12 Fin Analyst 2/3 M/F /a The mission also supervised CIB I. /b Combined mission to supervise CIB I and CIB II. /c Combined mission to supervise CIB I - III and prepared CIB IV. /d Combined supervision for CIB I - IV. /e Combjined mission to supervise CIB I - V. ORGANIZATIONAL CHART CHINA INVESTMENT BANK (December 31, 1993) j Board of Directors j Chairzuan Mr. Zhou Dao-Jiong (17 m-hers) rH Technical I I Advisor | Board of Managing Directors I I I Managing Directors (5) 71 o k) I i ' I E~~~~~~cono ic jp ___________ ___________ _______ I I Adviosor President I K r. Lu Xianlin 41 p-- Advisor: Assistant to President ir. Zhao Hong 61 Mr. Sun Xiao Fan 5 1 - Executive Vice-President Executive Vice-President Executive Vice-President j j Kr. Qin Kersng 1i I I (vacant) 21 j M r. We Xi-Gen 31 I I~~ ~ ~ ~ ~~~~~ ~~ ~~~~~~~~~~~~~ ' ii I IAd.ini8tra-I Planning j Financing &Ilinut'l Treas. FProJect LoanilProject LoanilCredit I Int'l Invest./ li camutingI lPron l/IGeneral Il Auditing I IXanjing I Itive Officej iDepartsientIlAccounting IlDepartment IlDept. Ho. 1 IDept. No. 2 lixngt.- I ISettlenmentljHeat. IlCenter IlTraining IlAffairs IlDepartasntI Staff Trogl )Chief: H Chief: HDepartxment Hchief I HchLief: H Chief: HDepartisentHnepartmentHDepart.mentHv. Chief-HDepartmeat HoDepartmentHHjChief: H center I I Mr. Li M1 r. Sun lichief, 1 Mr. Tong 1 Mr. Ye 11 r. Htuang liChiof: lichief: liChief: 11 r. Liu IlChief: lichief: IIMr. Wang IlChief: I I Zhong Man II Zino Fan 1 Mr. Zhang 11 Yu Xiang 11 Binqi 11 Tie-An I I Mr. Yang I I _Mr. on I I Mr. Tang IJIiinqen I I Kr. Shi YijI I Xr. Liu Ij Yun Xiang) Mr. Zhao I II II Chang mhi I t111 uangdou I I Guangminll Zhi Do IL P11 u Shen HI 1Eong I I 311 slI 311 ill 311 311 51 I ill 5jj 411 3111 711 61 h Brancheg (31) i | Subbranches (28) j | Operating offices (25) I ACTUAL AND PROJECTED LOAN OPERATIONS (1987-92) (Y million) Actual Projected 1987 1988 1989 1990 1991 1992 Total 1987 1988 1989 1990 1991 1992 Total (1987-92) (1987-92) Approvals: Local currency 518.40 484.43 45.63 14.01 (12.43) 5.89 1,055.93 330.00 360.00 597.00 724.20 923.30 1,191.90 4,126.40 Foreign currency 1,491.63 1,496.13 1,018.21 473.77 334.07 880.49 5,694.30 814.00 888.00 1,469.40 1,772.60 2,261.00 2,921.50 10,126.50 ($ equivalent) 400.80 402.01 215.66 90.73 62.27 162.45 1,333.92 220.00 240.00 395.00 476.51 607.80 785.35 2,724.66 Total 2,010.03 1,980.56 1,063.84 487.78 321.64 886.38 6,750.23 1. 144 00 1,248.00 2.066.40 2,496.80 3,184.30 4113.40 14,252.90 Commitments: Local currency 457.80 484.19 63.08 44.43 18.02 76.26 1,143.78 325.50 355.50 567.20 688.20 877.10 1,132.30 3,945.80 Foreign currency 1,138.44 1,637.74 690.36 501.57 944.42 1,022.98 5,935.51 802.90 876.90 1,395.90 1,684.00 2,148.00 2,775.50 9,683.20 ($ equivalent) 305.90 440.06 146.22 96.05 176.04 188.74 1,353.01 217.00 237.00 375.24 452.69 577.42 746.10 2,605.45 Total 1,596.24 2,121.93 753.44 546.00 962.44 1.099.24 7,079.29 1.128.40 1,23240 1,963.10 2,372.20 3,025.10 3.907.80 13,629.00 Disbursements: Local currency 450.90 523.56 297.35 114.38 51.03 174.95 1,612.17 341.30 340.20 440.60 670.90 740.60 850.00 3,383.60 k Foreign currency 912.91 1,716.67 1,342.09 980.20 836.21 1,046.19 6,834.27 793.30 827.70 1,177.30 1,699.90 1,999.20 2,360.50 8,857.90 t ($ equivalent) 245.30 461.27 284.25 187.71 155.87 193.02 1,527.42 214.41 223.70 316.48 456.96 537.42 634.54 2,383.51 Total 1,363.81 2,240.23 1,639.44 1,094.58 887.24 1,221.14 8.446.44 1,134.60 1,167.90 1,617.90 2,370.80 2,739.80 3.210.50 12,241.50 Loan Repayment: Local currency 81.60 198.34 106.78 97.30 101.06 119.16 704.24 85.90 95.50 165.00 220.00 361.00 511.00 1,438.40 Foreign currency 285.82 457.80 500.12 670.77 640.61 591.65 3,146.77 145.80 286.80 372.00 483.30 714.20 948.60 2,950.70 ($ equivalent) 76.80 123.01 105.93 128.45 119.41 109.16 662.76 39.41 77.51 100.00 129.92 191.99 255.00 793.83 Total 367.42 656.14 606.90 768.07 741.67 710.81 3,8501 231.70 382.30 537.00 703.30 1,075.20 1,459.60 4,389.10 Loan Portfolio: Local currency 1,083.41 1,408.63 1,599.20 1,615.20 1,565.17 1,619.41 n.a. 746.50 991.20 1,675.90 2,126.80 2,506.40 2,845.40 n.a. Foreign currency 1,698.92 2,952.92 4,330.33 5,115.79 5,448.12 5,950.89 n.a. 1,741.60 2,282.50 3,511.20 4,727.80 6,012.80 7,424.70 n.a. ($ equivalent) 456.50 793.45 917.16 979.67 1,015.53 1,097.94 n.a. 480.70 626.90 943.87 1,270.91 1,616.-34 1,995.89 n.a. Total 2,782.33 4.361.55 5,929.53 6.730.99 7,013.29 7,570.30 n.a. 2,488.10 3,273.70 5,187.10 6,854.60 8519.20 10,270.10 n.a. Exchange rate used (yuan : $1.00) 3.72 3.72 4.72 5.22 5.36 5.42 3.70 3.70 3.72 3.72 3.72 3.72 z Outstanding working capital loans - - 1,014.76 2,144.86 4,297.94 8,401.13 n.a. n. a. n.a n.a n.a. n.a. n.a. z Sources: Actual figures provided by CIB; projected figures from SARs (1987 to 1988 from CDB IV and 1989 to 1992 from CEB V). X CIB - COMPARATIVE (ACTUAL AND PROJECTED) FINANCIAL STATEMENTS FOR YEARS ENDING DECEMBER 31, 1987-92 (Y million) Actual Projected 1987 1988 1989 1990 1991 1992 1987 1988 1989 1990 1991 1992 Income Statements: Total Income 224.66 395.36 630.33 855.21 881.43 1,094.43 185.90 255.70 566.30 721.40 1,019.10 1,378.50 Total Expenses 130.32 238.73 470.28 736.43 764.91 969.30 155.30 208.10 341.10 475.70 598.30 872.70 NetIncome before Inc. Tax 94.34 156.63 160.05 118.78 116.52 125.12 21.10 34.60 212.80 233.10 397.40 478.00 Income Taxes 0.00 95.54 97.63 72.46 71.08 76.33 0.00 19.00 117.10 128.20 218.60 262.90 Net Income 94.34 61.09 62.42 46.32 45.44 48.80 21.10 15.60 95.70 104.90 178.80 215.10 Balance Sheet Statements: Cash/ due from banks 748.69 952.12 935.91 1,801.96 1,929.47 2,425.33 746.90 1,012.60 752.90 497.10 317.20 440.50 Current assets 1,015.29 1,938.22 2,018.80 3,653.51 4,568.37 5,685.64 1,212.10 1,605.40 1,735.60 2,026.50 2,757.90 4,139.70 Investment Loans: -local currency n.a. 1,425.47 1,598.36 1,615.22 1,565.15 1,719.84 746.50 991.20 1,675.90 2,126.80 2,506.40 2,845.40 -foreign currency n.a. 3,024.10 4,529.74 5,346.79 5,616.38 5,703.83 1,741.60 2,282.50 3,511.20 4,727.50 6,012.50 7,424.30 -Working Capital loans 0.00 0.00 1,014.76 2,144.86 4,297.94 8,401.13 0.00 0.00 186.00 515.00 996.50 1,710.80 Total Investment Loans 2,794.32 4,449.57 7,164.35 9,106.87 11,479.47 15,824.79 2,105.80 2,763.80 4,650.10 6,150.70 7,443.70 8,710.10 less: Accu. Provisions 3.65 14.82 21.49 109.28 109.28 227.99 22.70 39.10 43.00 88.40 152.30 239.60 Net investment loans 2,790.67 4,434.75 7,142.86 8,997.59 11,370.19 15,596.80 2,083.10 2,724.70 4,607.10 6,062.30 7,291.40 8,470.50 Long-term investments 13.95 32.06 14.88 17.41 26.68 98.40 15.50 25.90 14.00 42.70 81.50 134.20 Net fixed assets 3.67 7.32 10.70 15.50 27.97 34.27 3.30 4.30 7.00 15.00 31.10 63.10 Other assets 6.55 292.02 830.11 830.78 1,331.02 2,451.41 0.00 0.00 206.60 261.90 351.00 423.60 Total Assets 3,830.13 6.70436 10,017.35 13.514.79 17,324.23 23,866.51 3.314.00 4,360.30 6.570.30 8408.40 10,512.90 13.231.10 Deposits: Local curency 121.80 770.55 613.00 939.68 1,651.63 4,044.41 0.00 0.00 0.00 0.00 0.00 0.00 Foreign currency 198.98 629.56 745.62 927.73 1,331.23 2,090.32 0.00 0.00 0.00 0.00 0.00 0.00 Total current Liabilities 438.68 1,852.36 2,344.51 4,033.66 5,300.54 9,569.28 235.70 277.50 1,373.40 1,962.50 2,643.30 3,697.00 Long-term Debts: Local currency 420.00 520.00 620.00 1,355.81 2,853.56 3,567.28 420.00 420.00 795.00 895.00 875.00 845.00 Foreign currency 1,448.98 2,596.55 4,197.15 5,245.22 5,622.09 5,991.98 1,685.60 2,504.50 2,585.90 3,372.50 4,382.40 5,536.80 Total Long-term Debts 1,868.98 3,116.55 4 817.15 6.601.03 8,475.65 9.559.25 2.10560 2924.50 3380.90 4,267.50 5,257. 6,381.80 Other liabilities 161.71 222.67 1,146.34 1,059.12 1,702.51 2,906.24 0.00 0.00 287.50 295.00 300.00 375.00 Equity 1,360.77 1,512.79 1,709.34 1,748.53 1,845.53 1,831.75 972.70 1,158.30 1,528.50 1,883.40 2,312.20 2,777.30 Total Liabilitv & Equity 3830.13 6,704.36 10,017.34 13.442.33 17.324.23 23.866.53 3.314.00 4,360.30 6.570.30 8.408. 10,512.90 13,231.1 Ratios: Current ratio (X) 2.31 1.05 1.29 1.44 1.67 1.47 5.14 5.79 1.26 1.03 1.04 1.12 Long-term debt/equity ratio (X) 1.38 2.08 2.85 3.78 4.59 5.22 2.16 2.52 2.21 2.27 2.27 2.30 Acc. provisions/gross loan portfolio (%) 0.13 0.33 0.30 1.20 0.95 1.44 0.91 1.19 0.83 1.29 1.79 2.33 Net Income/Equity (S) 6.93 4.04 3.65 2.65 2.46 2.66 2.17 1.35 6.26 5.57 7.73 7.74 As % of total assets: Total income 5.87 5.90 6.29 6.33 5.09 4.59 5.61 5.86 8.62 8.58 9.69 10.42 Z Net income 2.46 0.91 0.62 0.34 0.26 0.20 0.64 0.36 1.46 1.25 1.70 1.63 Z Administrative/other expense 0.56 0.32 0.21 0.16 0.19 0.33 0.10 0.10 0.69 0.53 0.35 0.27 Note: Equity and loan portfolio are net of provisions for doubtful debts in calculating debt/equity ratio). Current maturities of long-term loan have been classified in current assets in projected figures. Current assets includes working capital loans in calculating current ratio - actual figures. Sources: Actual CIB audited financial statements and Staff Appraisal Reports (CEB IV - 1987/88 and V - 1989-92) for projected data. CIB - ARREARS POSITION FOR YEARS ENDING DECEMBER 31, 1991 AND 1992 (Y million) (Exchange Rate used: Y 5.42: $ 1.00; Y 5.36: $ 1.00) 1992 1991 US dollars Yuan Yuan equiv. Percent US dollars Yuan Yuan equiv. Percent Total Arrears (interest & principal): 55.40 34.20 334.47 100.00 39.81 4.07 217.47 100.00 - up to 3 months 3.96 0.06 22.11 6.61 16.60 n.a. 88.99 40.92 - 3 months to 6 months 12.58 2.46 70.63 21.12 7.05 0.23 38.02 17.48 - 6 months to 12 months 6.85 2.39 39.53 11.82 3.78 0.32 20.58 9.46 - 1 to 2 years 9.41 6.17 57.18 17.10 3.95 0.80 21.99 10.11 - over 2 years 22.60 22.53 145.02 43.36 8.43 2.72 47.89 22.02 Arrears in Excess of Three Months (interest and princioal) 1992 Number Percent US dollars Yuan Total Y equiv. Percent A. Companies operating profitably 564 0.67 4.85 0.00 26.29 0.08 B. Companies under construction or in pre- operating stage not in technical or < financial difficulties 245 0.29 13.44 3.50 76.34 0.24 C. Companies operating at a loss or in technical or financial difficulties 24 0.03 21.12 13.91 128.38 0.41 D. Companies in liquidation 11 0.01 12.01 16.15 81.24 0.26 Total 844 1.00 51.42 33.56 312.26 1.00 1991 Number Percent US dollars Yuan Total Y eauiv. Percent A. Companies operating profitably 550 0.68 2.59 0.00 13.89 0.11 B. Companies under construction or in pre- operating stage not in technical or financial difficulties 235 0.29 7.78 0.33 42.04 0.33 C. Companies operating at a loss or in technical or financial difficulties 17 0.02 9.99 1.65 55.17 0.43 D. Companies in liquidation 4 0.00 2.86 2.35 17.69 0.14 Total 806 1.00 23.22 4.33 128.79 1.00 Source: CIB long-form audited financial statements. - 28 - ANNEX E LIST OF SUBPROJECTS/SUBLOANS AMOUNTS Actual amounts disbursed Subloan Ln.2783 Cr. 1763 number Name of subproject ($'000) (SDR'000) A-001 Zibo Towels Mill 1,994.4 A-002 Xiamen Rubber Plant 1,255.5 A-003 Yichang Machine Tool Industry 1,172.0 A-004 Zhongnan Rubber Plant 1,587.8 A-005 Keshan Linen Yam Spin. Mill 917.4 A-006 /a Hubei Gear Plant 0.8 A-007 Liao Yun Auto Elec. App. Fac. 1,688.1 A-008 Daye Steel Plant (see. B-169) 54.3 A-009 Xiang Tan Cable Works 2,158.2 A-010 Yushu County Shoe Factory 43.5 A-01I /a Da An Tannery 0.0 A-012 Mudanjiang Vulcanized Paper Mill 5,353.0 A-013 Fifth Electronics Element Plant 316.5 A-014 Changchun Testing Machine Factory 691.0 A-015 Shaoguan Tool Plant 1,198.9 A-016 Nanjing Woolen Mill 3,040.2 A-017 Zhu Zhou No. 7 Radio Factory 534.8 A-018 Chongqing Ramie Spinning Mill 1,859.0 A-019 Yantai Tannery Mill 1,944.9 A-020 Dongning Building Ceramics Plant 1,900.0 A-021 Chuzhou Main Fac. of Electric Fan 2,330.0 A-022 Shaoguan Powder Metallurgical Fac. 1,031.5 A-023 Shenyang Wire Rod Plant 4,910.0 A-024 Guilin Tyre Factory 2,200.1 A-025 Shanghai Copper Factory 6,486.9 A-026 Fuzhou Electric Wire Factory 1,525.4 A-027 Hefei Aluminum Plant 1,800.0 A-028 Xiangtan Textile Print & Dye Mill 1,030.5 A-029 La Quingdao Flannelette Mill A-030 Shang Yu Cotton Mill 2,377.1 A-031 Guangzhou Rubber Hose Factory 1,980.8 A-032 Wuzhou Cotton Mill 3,183.4 A-033 /a Tianchi Pharmaceutical Factory A-034 Liuzhou Machinery Plant 2,489.0 A-035 Dongfang Chemical Plant 3,882.2 A-036 Shijiazhuang Textile Warp Knitting 1,771.1 A-037 Dalian Recording Equipment Plant 1,938.2 - 29 - ANNEX E Actual amounts disbursed Subloan Ln.2783 Cr. 1763 number Name of subproject ($'000) (SDR'000) A-038 Hefei Bicycle Factory 1,601.3 A-039 Zhanjiang Instrument & Meter Fac. 1,260.2 A-040 Linyi Printing & Dyeing Plant 1,091.2 A-041 Mudanjiang Electric Ceramic Plant 2,944.0 A-042 Qingdao Embroidery Factory 2,804.0 A-043 Shanghai No. 1 Film Factory 5,232.4 A-044 Benxi Tungsten & Molybdenum Fac. 1,535.2 A-045 ia Qin Huangdao Ship Building Fac. A-046 Shanghai Safety Razor Blade Fac. 3,229.0 A-047 Changchun Waterproof Material Fac. 2,222.0 A-048 /a Shanghai Suyi Embroidered Curtain A-049 Dandong No.2 Silk Factory 2,045.3 A-050 Baotou Spinning Mill 1,903.0 A-051 /a Wuhu Silk Mill 0.3 A-052 Woolem Mill of Taonan City 718.0 A-053 Shi He Zi Food Product 1,445.0 A-O5J Baotou Gelatin Plant 1,518.8 A-055 Jing Yin Elect Corp 4,353.0 A-056 Qingdao Grape Winery 2,273.5 A-057 Fenfcheng silk Mill 1,755.8 A-058 Guangzhou Textile Clothes 3,545.3 A-059 Chengdou No.2 Radio Plant 1,251.0 A-060 Rongcheng Plastic Mill 2,371.8 A-061 Beijing No. 3 Plastic Factory 2,019.9 A-062 Haichen Silk Mill 3,814.3 A-063 Southwest Electric Factory 1,228.3 A-064 Shenyang Towel Factory 2,133.6 A-065 Yantai Broadcloth Fabric 3,213.8 A-066 Anshan Steel Wire 3,795.1 A-067 Shidao Embroidery Mill 1,493.1 A-068 Jiangmen Paper Mill 3,883.4 A-069 /a Beijing Washing Machine Factory 53.5 A-070 Tianjin Woolen Fabric Mill 3,599.9 A-071 Tianjin No. 1 Knitting Factory 2,741.0 A-072 Qingdao #1 Dyeing & Weaving Pit. 3,320.0 A-073 Handan 3d Porcelain Factory 2,639.7 A-074 Yinkou No.2 Textile Mill 2,646.8 A-075 Shanghai 3d Bicycle Factory 4,573.9 A-076 Shanghai No 2 Towel Factory 2,859.0 A-077 /a Shangdong Xinwen Cement Factory 871.1 - 30 - ANNEX E Actual amounts disbursed Subloan Ln.2783 Cr. 1763 number Name of subproject ($'000) (SDR'000) A-078 A-079 Shanchuan Machinery 2,989.8 A-080 Jiannan Die Casting 1,756.0 A-081 A-082 Jianxi Ruifeng Ceramics 2,776.5 A-083 Heze Wollen Textile 2,921.5 A-084 Wuhan Cable Corporation A-085 Wuhan Cable Corporation 205.7 A-086 Chongqing Siu-Ceramics 2,994.9 A-087 Sichuan Rubber Plant 2,988.4 A-088 Changshen Ceramics Co. 1,308.6 A-089 Changpu Oil Seals Co. 2,400.0 Subtotal A subloans 161.811.1 15.163.2 B-001 Wuxi No. 2 Elec. Fan Factory 434.8 B-002 Chaozhou Civic Magnetic Mat. Fac. 169.8 _.-003 North China Pharmaceutical Corp. 326.3 B-004 Zaoyang Bicycle Mfg. Factory 409.7 B-005 Yaan Shoemaking & Leather Proc. 464.8 B-006 Jianguin Standard Parts Plant 325.9 B-007 Xiaoshan Instr. Stand. Fastener 369.4 B-008 /a Jin-zhou Chemical Plant B-009 Yulin Medicine Factory 319.5 B-010 Chengdu Silk Prin. & Dyeing Plant 226.5 B-011 /a Xinji Fur Proc. & Tanning Fac. B-012 Nanchong Silk Plant 1550 233.2 B-013 Zhejiang Shaoxing Silk & Dye. 791.4 B-014 Fuan Leather Factory 202.5 B-015 Chaoyang Radio Factory No. 4 435.1 B-016 Dailan Rubber & Plastic Machinery 431.7 B-017 Liuzhou Pharmaceutical Factory 202.4 B-018 Shanghai No. 1 Aluminum Plant 1,238.1 B-019 Honghu Iron Print. Can Making Fac. 672.1 B-020 Yangzhuan Embroidery Factory 424.6 B-021 Zhaoyuan Metals Lockmaking Fac. 654.4 B-022 Shandong Cheng Wooden Furniture 63.8 B-023 /a Wuhan Hanguang printing Factory B-024 Wuxi Meat Factory 289.6 B-025 Majiagoud Refractories Plant 709.7 - 31- ANNEX E Actual amounts disbursed Subloan Ln.2783 Cr. 1763 number Name of subproject ($'000) (SDR'000) B-026 /a Ningbo Granite Co. Ltd. 0.0 B-027 Nantong Woolen Mill 559.8 B-028 Shenyang 1st Print. & Dyeing Mill 968.5 B-029 Jingjian Quinjing Knitting Mill 547.0 B-030 Anqing Bed Sheet Factory 1,060.0 B-031 Dong Ya Worsted Mill 650.5 B-032 Jilin Hosiery Factory 524.3 B-033 Shanghai No. 15 Towel Factory 946.6 B-034 Qingdao No. 5 Knitting Mill 504.0 B-035 Hubei Auto Storage Battery Plant 1,153.3 B-036 Shandong Linyi # 2 Refrigeration 301.7 B-037 Hainen Leather Products Factory 176.7 B-038 Shenyang Cable Works 885.7 B-039 /a Qingdao General Stone Products B-040 /a Glass Factory of Fenyang County 0.0 B-041 Chang Zhou Radio Material Factory 1,044.1 B-042 Tianjin Tool Factory 232.9 B-043 Hanjiang Garment Factory 185.7 B-044 Dalian Zhongchang Industrial Corp. 147.3 B-045 Tianjin No. 9 Garmnent Mill 579.3 B-046 /a Qiyang Matting Factory 0.0 B-047 Shenyang 12th Radio Factory 990.0 443.4 B-048 Changzhou Transformer Factory 1,214.2 B-049 Tianjin No. 25 Garment Mill 630.0 895.7 B-050 Yichang Electric Wire Mill 657.9 B-051 Tianjin Toilet Soap Factory 1,139.9 B-052 /a Tunxi Pharmaceutical Factory B-053 Tianjin 712 Factory 1,000.0 B-054 Tianjin Yuhua Dressmaking Corp. 1,120.0 B-055 Tianjin No. 1 Garment Factory 659.9 B-056 /a Tongliao No. 1 Woolen Mill B-057 Lishu Cty. Woll. Mining Ind. Corp. 326.0 B-058 Hongxing Chemical Factory 968.2 B-059 Nanjing Steel Rolling Plant 616.1 B-060 Zhong Hua Rubber Factory 903.2 B-061 Wuxi Silk Dyeing & Printing Mill 1,956.8 B-062 Hangzhou Sock Factory 1,051.0 B-063 /a Shanghai Union Perfume Factory B-064 Shanghai Household Chemical Prods. 265.0 B-065 Shanghai Daily Chemical Prods. 864.0 - 32 - ANNEX E Actual amounts disbursed Subloan Ln.2783 Cr. 1763 number Name of subproject ($'000) (SDR'000) B-066 Foshan City Sweets Factory 497.1 B-067 Benxi Silk Print. & Dyeing Mill 588.8 B-068 Shanghai Dazhihe Woolen Mill 850.9 B-069 Xinchang Sock Factory 201.5 B-070 Yifeng Enamel Products Factory 2,180.0 B-071 Yan Tai Wool Mill 600.4 B-072 Anhui Shucheng Jute Carpet Mill 1,150.0 B-073 Yangzhou Baocheng Radio Factory 358.1 B-074 Dandong No. 1 Silk Mill 48.1 B-075 No. 1 Rubber Fac. of Shijiazzhung 1,030.0 B-076 Hechuan Chemical Mill 626.7 B-077 Yingkou Washing Machine Factory 260.5 B-078 Ninth Inst. of Electr. Ministry 564.2 B-079 Wuxi Zhonghuan Embroidery Factory 700.5 B-080 Jingmen Chemical Plant 424.0 B-081 Wuxi Knitting Factory No. 2 680.5 B-082 Dalian Brewery 900.1 B-083 Fujian Zhangzhou Canning Factory 1,257.8 B-084 Hangzhou Printing & Dyeing Mill 449.9 B-085 Shanghai Hongyi Garment Factory 170.0 B-086 Chengdu Battery Factory 689.1 B-087 Fangshan No. 1 Clothing Plant 899.0 B-088 Dalian Enamel Industrial Plant 506.9 B-089 Dunhau Shengli Wood Factory 390.0 B-090 Jinzhou No. 1 Pharmaceutical Fac. 23.3 B-091 Mexian Magnetic Material Factory 838.5 B-092 /a Suzhou Kunshan Hydraulic Comp. Fac. B-093 Fu Shun Light Ind. Casting Plant 1,003.9 B-094 Huang Shi Spring Mill 311.9 B-095 2nd Automobile Fitting Factory 507.4 B-096 Shanghai Bee Honey Production Fac. 500.0 B-097 Lao Shan Nutrition Food Stuff Fac. 525.0 B-098 Shanghai 3rd Spare Parts Pen Fac. 280.9 B-099 Tianjin Fabric Weaving Mill 1,500.0 B-100 Hubei Worsted Polyester Mill 998.0 B-101 Hubei Suizhou Blanket Mill 290.9 B-102 Xiang Fan Tannery 937.0 B-103 Laohekou Spectacle Manufacturer 382.9 B-104 Shashi Rubber Plant 488.9 B-105 /a Nanjing Plastics Factory 3.1 - 33 - ANNEX E Actual amounts disbursed Subloan Ln.2783 Cr. 1763 number Name of subproject ($'000) (SDR'000) B-106 # 2 Knitting Mill of Huangshi City 331.1 B-107 Yichang Cotton Textile Mill 950.0 B-108 Jing Jiang Glucose Factory 1,513.4 B-109 Zhejiang Hangzhou H. Paper Mill 784.8 B-110 Anhui Silk Mill 1,200.7 B-111 Zuzhou Lift Equipment Factory 296.3 B-112 Qingdao Counter Factory 774.5 B-1 13 Tianjin Third Towel Mill 760.1 B-114 Hangzhou No. 3 Knitting Mill 1,229.5 B-115 Tianjin Semiconduc. Refrig. Equip. 1,410.0 B-116 Haimen Cty. Handkerchief Factory 767.5 B-117 Dalian Sushun Knitting Mill 223.4 B-118 Wuxi Woolen Mill No. 2 977.8 B-119 Tianjin No. 2 Knitweave Mill 761.0 B-120 Chinese Rubber Factory 969.4 B-121 /a Heze Instrument & Meter Plant 12.0 B-122 Benxi No. 3 Radio Factory 591.1 B-123 Songzhu Woolen Knitwear Factory 594.0 B-124 Zhenjiang Plastics Factory 829.2 B-125 Xinjiang Qiyi No. 2 Cotton Mill 480.8 B-126 Yangzhou Radiator Factory 455.9 B-127 Tianjin Glassware Wks 2,430.0 B-128 Tianjin Glass Instrucment Wks 2,158.6 B-129 Dalian Zhuanghe Silk Mill 170.8 B-130 Yingkou Washing Machine Works 792.3 B-131 /a Shanghai No.6 Worsted Mill B-132 Zhangjianggang Sweater Kintting 649.9 B-133 /a Chengehu Bixi Sweeter Knitting B-134 Shandong Weihai Woolen Mill 986.4 B-135 Dalian Lid Prod 379.4 B-136 Shenyang Metalforming Machine Wks 192.8 B-137 /a Shanghai No.10 Fastner Factory B-138 Shenyang Automobile Gear Plant 1,440.0 B- 139 Chengzhou Mirror-Making Factory 215.9 B-140 Changchun Medicine Factory 991.0 B-141 Baotou No.4 Furniture Plant 543.0 B-142 Shanghai Fuda Industrial Group 226.1 B-143 Ta Hui Industrial Corp & Shanghai 607.7 B-144 Hohhot Electric Tool Plant 480.5 B-145 Weihai Clinical Macromolecular Products 1,300.0 - 34 - ANNEX E Actual amounts disbursed Subloan Ln.2783 Cr. 1763 number Name of subproject ($'000) (SDR'000) B-146 Chongqing Jinyun Ceramics Corp. Ltd. 1,167.0 B-147 Rongcheng Light Bulb Factory 599.0 B-148 /a Yingkuo Aluminum Materials Plant B-149 Luannan Fishnet Factory 1,337.6 B-150 Tianjin No.7 Plastic Products 889.9 B-151 Zhuzhou TV Factory 899.7 B-152 Suzhou Victory Radio Factory 703.1 B-153 /a Yingkuo Aluminium Factory B-154 Nianning Walking Tractor Plant 498.0 B-155 /a Kaifeng Cable Works B-156 Shishou Pump Works 377.9 B-157 Tianjin Metallurgical Spare Parts 858.3 B-158 Shenyang Aluminum Products Factory 1,680.0 B-159 Yantai Printing Factory 1,181.8 B-160 Luzhou Transportation Machinary 1,023.1 B-161 Yingkuo Pharmaceutical Factory 298.6 B-162 Tangshan Composite Material Plant 813.6 B-163 Senda Super Hard Material Dev.Co. 433.1 B-164 Qingdao Lamination 1,071.1 B-165 Binzhou Package Printing Co. 1,467.6 B-166 Lianyunggang DZ Industries 709.0 B-167 Changxin Spandex Products 595.0 B-168 Industry and Trade Assoc. 1,272.0 B-169 Daye Steel Co. 1,552.0 B-170 Shunde Silk Factory 914.4 B-171 Shaoxing No.4 Chem. Plant 1,951.0 Subtotal B subloans 88.193.2 23,755.5 Total A and B Subloans 250,004.4 38,918.7 Training component - 574.8 Revolving fund /b (4.2) 1,406.5 GRAND TOTAL 250,000.2 40,900.0 /a Denotes cancellation of subloan or undisbursed balance. /b Adjustments due to foreign exc hange fluctuations. - 35 - ATTACHMENT 1 CHINA INVESTMENT BANK PROJECT COMPLETION REPORT ON THE INDUSTRIAL CREDIT PROJECT LOAN/CREDIT NUMBER: LOAN: 2783-CHA CREDIT: 1763-CHA CURRENCY NAME: RENMINBI (RMB) US DOLLAR (US$) SPECIAL DRAWING RIGHTS (SDR) EXCHANGE RATE: APPRAISAL TIME: (DECEMBER 1987) 1 US$ 3.7 RMB I SDR = 1.2 US$ REPORTING TIME: (DECEMBER 1993) 1 US$ = 5.8 RMB 1 SDR = 1.35 US$ FISCAL YEAR: ON CALENDAR: JANUARY 1 - DECEMBER 31 I - 37 - Part I. Background and Objectives of Loan/Credit IV I. Loan/Credit IV Profile 1.01 Borrower: People's Republic of China (PRC) 1.02 Representative of the Borrower: Ministry of Finance, PRC (MoF) 1.03 Beneficiary: China Investment Bank (CIB) 1.04 Amount: an equivalent of USD 300 million, of which IBRD provides the loan with an equivalent to USD 250 million, and IDA Provides SDR40.9 million with an equivalent to USD 50 million. 1.06 Terms: Loan has a maturity of twenty Years with standard variable interest rates, including five-year grace period. Crecit has a maturity of fifty years with zero interest rates, including ten-year grace period. 1.06 Terms regarding on-lending arrangement: (1) MoF makes an on-lending, combining the Loan and the Credit, to CIB with a maturity of twenty years. including five-year grace period. The interest rate is 7%. (2) CIB pays commitment fees in accordance with the provision in the Loan/Credit Agreement (the Agreement). (3) MoF takes the following two kinds of interest and exchange risks: a. rate of U.S. dollar ( unit of account of the Loan/Credit) against currency pool: and b. U.S. dollar rate against SDR. (4) CIB makes loans under the on-lending arrangement to enterprises with a fixea annual rate of 8.5%. The borrowing enterprises will take the risk of changes in U.S. dollar rate against Rerninbi. 1.07 Date on signing the Agreement: March 16, 1987. 1.08 Date of the Agreement becoming effective: June 22. 1987. 1.09 Free limit: USD 1 - 2.5 million 1.10 The amount limit on each subproject will be no more than USD 15 million. 1.11 Original time for finishing the disbursement: June 30. 1992. 1.12 Recuested time norizon for finishing tne disbursement: June 30. 1993. 1.13 Cumulative disbursements (as of December 31, 1991): Loan 1763-CHA SDR37.4579 million Credit 2783-CHA USD178.7861 million II. Economic Setting - 38 - 1.14 In the eignties, tne main task of China ras Deen focusing on economic construction. Economic aeveloPment and reforms went nana in hand. Economic and social developments could only be fosterec tnrough reforms and opening to the outside world. One decade-long reforms ana oDening policy have created a new era of modernization of the economy. and accomPi shea eye-catching achievements whicn manifested in the average amnual growth rate of 9% of GNP over the past decade. During this period, the growth of inaustrial production in China was the fastest in the world. Modernization of industrial sectors strengthened China's competitiveness in the international markets. Within a couple of years, export volume increased three times. China's share in the volume of world trade increased from 0.97% to 1.70%. The past mono-state- ownership was gradually replaced by a new framework in which state ownership played a dominant role, with supplementation of other kinds of ownership. The highly centralized plaMning system was in the Drocess of being sLverseded by a new setup in which economic planning took into serious consideration market forces; Prior to the reforms, the state managea economic activity through direct control. The practice was progressively succeeded by combination of direct and indirect measures, with indirect means playing an increasingly central role. The closed and partially closed economy was gradually shifted to a mucn more oPened one with increased involvement in internationa I exchange and cooperation. The overall economic situation continued on the path of continued, steady and coordinated development. 1.15 While accomplishing some achievements in reforms, we are also aware that some problems, such as inappropriate production structure and low efficiency, will not be completely eliminated within short period of time. Thus, some difficulties will remain in the economy. These include (1) inflation emerging in the latter part of the eighties: and (2) negative effects of the political disturbance in 1989 on Chinese economy; and (3) no fundamental improvements in market sluggishness: and (4) uneven recovery in the industrial proauction, and mismanagement and low efficiency of some enterprises. 1.16 The Chinese government has been fully aware of these difficulties and taken a series of measures to address them. In curtailing inflation, the Government took measures to contain investment anm tighten money supoly. Inflationary pressure was eased in the first Quarter of 1990. Although the political disturbance in 1989 did have some negative effects on Chinese economy, the sLbsequent positive phenomenon --reflecting in new interests of foreign investors in China, enhanced national economic integrity, lifting of embargo by EuroPe Community and renewal of preferential loans by Japanese government -- indicates that these consequences are only temporary. The Chinese government also took necessary measures to address market sluggishness, uneven industrial recovery and widespread low economic efficiency. Following reduction in interest rates on two occasions and gradual price correctness, the consumer market began to revive. Enterprises began to pay increased attention to product auality dunring the course of "Year of Quality, Variety and Efficiency Campaign" in 1991. At the same time, the policy of the centra I government on reinvigorating large- and medium-sized enterprises was conducive to making these enterDrises more dynamic. 1.17 Reform measures, above all, are successfu;. The negative effects resulting from the austerity have to a larger extent been mitigated. In the early nineties. China will focus on maintaining tne economy in a sustained, - 39 - steaay ana coordinated way. with the purDose cf attaining the objectives set out fcr the second stage of strategic develooment of modernization ana, correcting the weaknesses in the macroeconomic controi and price reform in the past decade. III. Objectives of Loan/Credit lV 1.18 The main objectives of Industrial Loan/Credit IV for CIB approved by the World Banr (the Bank) are as follows: (1) to helip CIB finance the productive facilities ana resources which are conducive to domestic economic ana social developments: and (2) to improve the institutional arrangement, project evaluation and resource financing, and to ameliorate the financial intermediaries. 1.19 During the implementation under Loan/Credit IV, the Bank put emphasis on enhancing quality of CIB staff, especially through overseas training in the industrial, operational, financial and managerial aspects. In addition, the Bank was expected to provide assistance and guidance to CIB with regard to project assortment and review. 1.20 The imp I ementation of these oijectives will be elaborated in the remainder of this report. Part II. Basic Facts on Subprojects underr Loan/Credit IV 1. Sumuary on the Lses of Loan/Credit I-l1l 2.01 As of June 1987, CIB had provided 306 suborojects with loans of an amount of USD 340 million under the Bank Loan/Credit I-ill, and an amount of Y590 million. Each sLbproject, on average, received USD1.11 million and Y1.94 million. The share of foreign and Rervninbi within the loans was 1:1.7. 2.02 As of June 1987. Disbursements under Loan/Credit I-IlIl had been completed. The pace of disbursements, which was slow from 1983 through 1984. definitely sped up during 1985-86. By the end of June 1986, cumu I ative disbursements reached to USD157 million, accounting for 60% of Loan/Credit I and 45% of the second, respectively. It was felt that the pace of disbursements under Loan/Credit I-l1l were broadly satisfactory. Disbursement under Loan/Credit II was terminated twelve months ahead of schedule. And disbursement under Loan/Credit III was concluded as scheduled. 2.03 The maturity of Loan/Credit I-IllI was on average three to five years. with varying grace periods of one to three years. Borrowers were mainly state- owned enterprises (SOEs). Unkder Loan/Credit I-1II, 219 subprojects were SOEs and 87 were collectively-owned, accounting for 70% and 28% of the total, respectively. Most of subProjects were characterized by technological transformation. Of the total, 275 were technical transformation, accounting for 90%. The expected rate of financial return was between 12%-45%. rate of economic return 18%-35%, which would have attained the envisaged objectives. II. Performance of Subprojects under LoarVCredit IV 2.04 Al location of the Financing: the Forth Industrial Loan/Credit Project came into effect in June 1987. As of June 30, 1993, 228 suborojects had been approved. As a matter of fact. 242 haa been permittea, Dut 14 had been - 40 - istea under otner CIB Loan/Credit. The tota amount was loan 2782-CHA USD 250.73 mil lion, with each subproject on average receiving USY 1.33 mill ion. Meanwnile. CIB provided Y280.77 million, with eacn suvProject averagely ob- taining RMB Y1.23 million. The share of foreign currency and Renminri within the loans was 1:0.9.(see Table 2.1, 2.2) 2.05 Commitments: From June 1987 when f irst suLoroject was committed by the World Bank, until June 30 1993, total 228 subProjects had been committed as the elements of the Forth Industrial loan/credit projects. Total amount of commitments under Loan 2783-CHA was USD 250.73 million and Credit 1763-CHA SDR39.2 miIlion, respectively. On table 2.3: 1)The fastest pace of commitment was during 1987-1988, the committed amount accounted for 84 of the Loan and 77% of the Credit, respectively. It was in conformation with the Pace of domestically economic develoPment on that days: 2) During 1990-1991, the datum of conmitted amount was zero, because: (A) CIB had made adjustment to these subprojects which were identified in the period (see 2.08); (B) The cost of the Forth World Bank Loan was a little bit higher; (C) The Influence came from the "political disturbance" in 1989: (D) Since contents of 5 year financial forecast must be placed into project appraisal report, so as to slow down project-evaluating speed: (E) The caoital of tne Fifth World Bank Loan in 1989 had been poured in. 2.06 Loan/credit Disbursements: From the trird quarter in 1987 when first suboroject was disbursed, to June 30 1993, the account-closing day, total 301.297,932.01 USD had been withrcawn consisting of Loan 2783-CHA 247,075,626.30 dollars and Credit 1763-CHA 54,222.305.71 dollars. Tab I e 2.4 points: 1) During 1987-1989, the Forth World Bank's reimbursement was a little bit faster, the amount accounted for 66% of the total reimbursements. It was in keeping with the progress of suLprojects' commitment and expenditure in these years: and 91.6%. 2) In 1992, the figLre of disbursement on SDR was negative, because in the year, 150,000,000 us dollars were returned back from the accounts for special purposes. and the actual disbLrsements were 1,920,000.00 dollars. 3) From 1990-1992, the Forth World Bank reimbursement were honoured a little bit slower, the amount was 6% of the total reimbursements. During 1987-1992, the total amount of reimiDursement actual ly honourea made up 72% of the due. The account could not been closea according to tne reauirements of the loan agreement. 2.07 Reasons for reimbursement unfinishing by the end of 1992: 1) Because of the influence from "*June 4" politica I turmoil, tne imp I ementation of commercial contracts were encountered great difficulties, and equipments deliveries were also delayed, so as to affect the regularly financing disbursement to these projects: 2) After 1987, a bidding system that equipments needed must be called for domestic tenders prior to applying importation, in China, was initiated, wnich increasea the Droceoures for approval of equipment importation. In turn, it to some extent affected Dace of disbursements. 3) The cost of the World Bank capital IV was 8.5%, one percent point higher than costs of domestic caDital in same term: 4) During disbursing proceoure of tne loan I-IV, unaertaken by CIB, some weaknesses still existed. Due to these reasons, the account of tne loan/credit IV project couldn't be closed on June 30 1992. 2.08 Vigorous measures: For changing the situation, CIB nad apoIied for one year's grace to postpone the closing aeadline and took vigorous measures: One was that CIB adjusted the ooerational distribution among No. 1 Project Department, No.2 Project Department and Credit DeDartments - 41 - in NovemDer 1991 (see 4.03). After adjustment, the operational distribution was more Deneficial to managing Payment to constructing suoProjects. Tne other was that for the suoProjects with a Dayment slower or a unpaid balance, the due disbursing balance which CIB decided not to Pay any more was transferred into the undistributed balance on the World Bank's accounts. in order to make uo needs of new suborojects witn a faster Pace of payment. In the period of Nov. 1992 to Jun. 1993, total subprojects cancelled or with a cancelled balance were 142: the amount cf cancellation maae respectively up loan 2783-CHA 27.99 million aollars ana credit 1763-CHA 4.89 million dollars. In the meantime, 35 new subprojects were approved; the amount of approval accounted for USD50.82 million. 3) Persons with special duty were authorized to be responsible for reimbursement of the Loan/Credit IV expenditure. Since utilizing these measures, from Nov. 1992 to Jun. 1993, the amount reimbursed by the World Bank was 2783-CHA USD77.8 million and 1763-CHA SDR2.85 million, respectively. Ana on JuLne 30 1993, in the grace term greeted by WB. the account was closed on time. Ill. Subproject Profile under Loan/Credit IV 2.09 Ownership: Most of subprojects under Loan/Credit IV were state-owned enterprises (SOEs), which accounted for 92% of the total number of suDpro- jects and 93% of the total approved amount. The primary reasons for SOES' great portion were as follows: (1) SOEs continue to be the principal k inds of ownership in Chirna. In addition, they possess good underpinnings for developments, which mitigate the risk of making investment there. With the advent of reforms and opening to the oxutside world, SOEs have become more cautious of selecting projects, and the possibility of their successful comDletion of projects was higher tnan enterprises of other k inds of ownership. and (2) While implementing Loan/Credit IV, CIB experimented with financing a small number of joint-ventures and township and village enterprises (TVEs). As these were new areas for it. CIB used its own funds to finance these projects in order to reduce the risks of failing to repay foreign currency loans. That is why not many of enterprises of these two kinds were financed by Loan/Credit IV. As recommended by the Bank, CIB therefore increased the financing ,I non-state enterprises under Loan/Credit V.(see Table 2.5) 2.10 Subproject Character: Under Loan/Credit I-Ill, technical transformation subprojects accounted on average for 90% of the total. Under Loan/Credit IV, however, its share declined to 86%. It shows that while emphasizing on technical transformation, CIB also paid due attention to helP with the restructuring and extension of enterprises, with the aim of make the share of restructuring and technica I transformation suboprojects becoming more balanced. (see Table 2.6) 2.11 Subproject Scale: In the suborojects approved, CIB has been emphasizing on small- and medium-sized industrial projects which needed small amount of financing, but Yielded returns quickly and had definite potentials for repayments. Under Loan/Credit IV, foreign currency financing for each subproject generally did not exceed the uPPer ceiling. SuDprojects with an amount of less than USD1 million accounted for 52% of the total, those less tnan USD,-2.5 million 35% and those more tran USD5 million only 1°.(see Table 2.7) 2.12 Regional Distribution: Geographical distribution became more oalancea: The areas located by suDProjects uncer Loan/Credit 'V were extended from - 42 - concentrating on JiangSu Province and such cities as ShangHai. TianJing and ShenYang under Loan/Credit l-ll to 21 provinces, cities ana autonomous regions. This reflected This due to the expansion of CIB's Drancn network which laid down the institutional structure in this regard. On top of that, it was also the result of increased demand for financing from open areas, Special Economic Zones(SEZs) and cities under seParate planning within the State DevelIopment Plan, due to continued pursuit of opening to the outside world. And third, this could disperse finances, so as to reduce the risks of loan investment. (see table 2.8) 2.13 Industries: Sector distribution became more diversified. Under Loan/ Credit IV, subprojects lied mainly in 14 industries, including textiles, light industry, machinery, electronics, petrochemicals and sewing industry, etc. Except that textile industry secured more than 25% of the total under Loan/ Credit IV, other industry each accommodated less than 25%. thus reducing the risks of financlng. (see Table 2.9) Part ll. SubproJect Implementation under Loan/Credit IV I. Selection, Appralsal and Supervision 3.01 Selection: Under Loan/Credit IV, CIB had considered uP to 694 projects. According to the principle of "Selecting the best of the possible proJects". CIB project managers had chosen a number of projects to be financed by Loan/Credit IV. In the process of selection, project managers made analysis on the feasibility of each suborojects from both micro and macro perspectives. First, they determined whether a subproject could be financed on the condition that it complied with the requirements in the national industrial policy. Second, they examined the management, profitability, marketability. construction conditions and expected financia I and economic returms of the envisaged subproject. Only could be filed for submissIon to the Bank for approval those subprojects which had complied with the envisaged criteria. Preliminary information shows that project managers spent on average seven business days making an in-depth evaluation on each envisaged subproject. This step laid sound foundation for better completion of the subsequent pro.:ct appraisal. 3.02 Appraisal: After selected subprojects were filed for appraisal, CIB project managers started preparing project appraisal reports. First, CIB, together with admInistrative author -ties- f borrowing enterprises and project planners, made feasibility studies. Second, project managers tried to collect information as complete as possible of product marketability and technical characteristics of envisaged imported equipment. Third. they made comprehensive eval uation with regard to enterprises's management, financial position and construction conditions, with the aim of finalizing the appraisal reports. Under Loan/Credtit IV, CIB had assessed 300 selected subprojects and completed 270 appraisal reports. CIB then chose 242 as subprojects under Loan/Credit IV to submit to the Bank for review. All subprojects submitted to the Bank had been approved. 3.03 Experience regarding appraisal activities under Loan/Credit II -IV shows that CIB has established relatively comprehensive project appraisal and approval procedures, and had a number of project managers who nave competently commanded the method of project appraisal. Quality and efficiency of CIB's project evaluation increased remarkably. For further enhancing work in this regard, CIB developed "CIB Software on Project Evaluation" with the assistance - 43 - of both computer experts and project managers. Experiment indicated that tne software was useful and effective. 3.04 Supervision: After suIxrojects were apProved by the Bank, CIB project managers helped enterprises with price inquiries and business negotiations. At the same time. they coordinated the relations between borrowing enterprises, project contractors and entities responsible for procurement, with a view to speeding up project construction. In addition. they oversaw the disbursements and helped solve the problems as long as they emerged. They also reviewed subproject budget. After the putting into oPeration of subprojects, they helPed enterprises promptly address difficulties in the production process, in order to facilitate the projects to become operational and make repayments as scheduled. When a subproject closed its account, CIB project managers began preparing project post-evaluation report. 3.05 Under Loan/Credit IV, CIB held a series of training courses and project management seminar participated by project managers from its branches. International trade and project management experts were invited from abroad. The emphasis of the training was on the procedures and techniques of procu.rement, Project financial management and implementation management. In addition, the Bank experts came to provide assistance and advice on project supervision during the implementation of Loan/Credit IV, and made lots of worthwhile suggestions. All these were extremely conducive to strengthening project management. II. Constructing Progress 3.06 Construction: BY the end of June 1993. of 228 subprojects under Loan/ Credit IV, 197 had been put into operation, accounting for 86% of total subprojects. 45 had been cleared their accounts , making up 20%. The constructing sLbprojects were 31, 14% of the total. (details in Table 3.1) 3.07 Table 3.1 indicates that most subprojects under Loan/Credit IV can be put into operation on time and even ahead of schedule. A few, however, are delayed to varying degree. The main reasons are as follows: (1) As offer prices of procurement differed 3ignificantly from expected ones, enterprises were compelled to change their original plans, thus affecting the procurement and the pace of project implementation. and (2) Some preparatory work was not compIeted as scheduled. Thus, the period of project construction was delayed. and (3) With price increases In building materials and domestically purchased equipment, there existed shortfall in Rerminbi financing which could not be fHied up immediately. and (4) Delivery time of some imported equiDment was incomparable with that of domestic accessory apparatus, thus delaying the putting into operation of the project. and (5) As a result of postponed delivery or noncompliance with the contracts by foreign suppliers, a number of imported equipment was not delivered on time. and (6) Work was delayed on making equipment operational by foreign experts. And loss claims took longer time than expected. 3.08 As examples: Mudanjiang General Vulcanized Fiber Paper Plant (A12 CIB credit USD5.35 million, RMB 6.73 million yuan), its foreign equiDments were not reached the standards while they were debugged by foreign business men. so its operational time nad to be delayed by tne repeated modulation for - 44 - these equipments later. Guangaong Jiangmen PaPer Mill (A68 CIB credit USD 3.88 mil ion, RMB 3.63 mil ion yuan), it needea to increase RMB investment 1.09 mill ion yuan due to price inflation of raw materials, but the funds still were not available for a long time, as the result, its operation time was delayed. AnHui ChuZhou Main Factory of Electric Fan (A21, CIB credit USD2.33 million. RMBY1.35 million) also Postponed its operational term, because of equipments' delivery getting some troubles. Ill. Analysis of SLtprojects' Economic Efficiency 3.09 Table 3.2 shows: As of the end of June 1993, of 197 operating subprojects under Loan/Credit IV, actual productivities of 99 had been reached 90-100% of designed capacities. 20's at 70-90% of designed capacities, and 27's at 50-70% of the capacities; the remained 51 subprojects were operating less than 50% of designed ones. Main reasons for these sLbprojects operating below designed capacity were as follows: (1) The putting into operation of sLbprojects were delayed. and (2) Working capital fell short as a result of increases in prices of raw materials. and (3) The delivery of imported equipment and domestic accessories was delayed. In addition, installment and adjustment of equipment were suspended. and (4) Weak domestic markets made products difficult to be sold. 3.10 197 subprojects under Loan/Credit IV had newly increased-sales revenue Y2.95 billion in the year when they became operational. The realized profits, taxes and exchange earnings were Y230 million, Y200 million and USD260 million, respectively. Subprojects total ly created 13.967 employment opportunity. Each subproject on average had realized arnual ly profits of Y1. 16 million, taxes of Y1.01 million and exchange earnings of USD1.2 million. Therefore, economic efficiency of subproject was satisfactory. (Details in Table 3.3) 3.11 Table 3.4.1, 3.4.2, 3.4.3. 3.4.4, 3.4.5 show a data comparison between anpraisaIs of ten a sort st.bprojects and their successive evaluation after account-closing. These data mean: general productivity, date of putting into operation and date of operating at ful I capacity If these ten tallied with the appra i sed ones. And new I y- i ncreased prof It, rate of I ntema I revenue, and investment profit ratIo of them were a litt I e bit I ower than the appraised data. But from total parameters, it might concluded that the requirements of project appraisal put forward by CIB had been achieved. For instance, ratio of intemal f inancial revenue and internal economic income of these projects were respectively reached 16% and 19%: and investment profit ratio was on average 21%. Furthermore, 1092 new employees were hired to the ten subprojects. But from repayment, just subproject A068 and A017 did not paid back its loan on time, and postponed their repayment term. IV. Subproject Repayments 3.12 As of June 1993, of 228 subprojects under Loan/Credit IV. 197 had begun repayments. Among them, 45 had completely repaid their loans. The cumu I ative amount of loans for 197 sLbprojects was USD190.38 miIIion. Actual repayments had reached to USD165.63 million, accounting for 87% of loans receivable. Among them. 35 had arrears with an amount of USD24.75 million, accounting for 13% of foreign currency loans receivable. Renminbi loans accumu I ative falling due was Y162.37 million. Actua I repayments were Y141.26 - 45 - million, accounting for 87% of loans receivable. Among them, 19 were in arrears with an amount of Y21.11 million. accounting for 13% of Renrminbi loans receivable. (See Table 3.5) ._ 3.13 Table 3.6 lists ten suborojects with tne most great arrears among 19 sub-projects which have overdue loans. Their accumulative arrears were USD15.16 million and 13.24 million Yuan, accounting for 61% and 63% of the total amounts of overdue foreign exchange loans and Rerminbi loans respectively. In addition, 6 of the ten had a longer overdue term for 12 months. From the regional distribution, the suborojects with an arrears of loan were mostly located in the interior of China. 3.14 Main reasons causing arrears are as follows: (1) Construction delays made these subDrojects unable to become productive. and (2) Production costs increased and profits reduced. and (3) Market conditions changed, affecting the marketability of products. and (4) Working capital fell short and undercapacity occurred. and (5) The overall low efficiency of enterprises affected the repayments of subprojects. (6) Since the rate of foreign exchange to Renminbi fluctuated rapidly within a wide range, it added a heavier burden on subproject enterprises to repay their loans on market floating exchange rate. V. Persomel Training under Loan/Credit IV 3.15 In accordance with provisions in the Agreement on the World Bank's Loan/ Credit IV, SDRO.575 million was set aside for personnel training (with an equivalent to USD 0.75 million). CIB began exercising the resources in 1989. As of June 30 1993, CIB had sent 131 staff to attend various training programs abroad. UP to June 30 1993, total SDR574,818.98 had been disbursed. (equivalent to 801,978.29 us dollars) Details on Table 3.7. Part IV. Institutional Arrangement.s I. Institutional Structure (see Table 4.1) 4.01 Management: Before 1986, there were no full-time presidents at either headoffice or branches of CIB. CIB presidents at that time were concurrent presidents of the People's Construction Bark of China (PCBC). Based on the suggestions by the Bank, CIB in 1986 began appointing its full-time presidents. As of end-June 1993, within its 31 branches. CIB had appointed 24 presidents. At the same time, in order to streamline the operations and increase efficiency of CIB. members in the Board of Directors were reduced from 33 to 17. All directors were from various ministries and/or agencies. At end-1991, CIB headoff ice added another vice president who was in charge of Comprehensive Planning Division, Research Division, Financing Division, and Computer Center. As a result, there-were four staff in the headoffice of CIB at presidential level. It, therefore. strengtnened the management of CIB. From 1987 trrough 1991, CIB also appointed a numDer of divisional heads, result ing' in Improved management and laying the foundation for operational developments. 4.02 Organization (See Table 4.1): At the early stage of CIB. its volume of business was small. The headoffice then haC only five divisions and/or - 46 - offices. As a result of expanded businesses, five divisions could never meet the increasea workload. After 1987, therefore, CIB reorganized its headoffice. (1) The Research Division was resuLed. and (2) The Project Implementation & Supervision Division was changed into Credit Management Division. and (3) Established were Personnel Division, Computer Center, International Settlement Division, Financing Division, Audit Office and Administration Division. 4.03 In addition, the previous two Project Divisions were reorganized in 1991. delegating different responsibilities according to industries in order to make operations more appropriate. After the reorganization, term loan - activities were granted to Project Division I. Leasing, equity investment and guarantee operations were the responsibilities of Project Division II. Project Division I took over the responsibilities for managing projects under construction, which were previously preserved by Credit Management Division. According to new work division, Project Division I was responsible for project implementation until the project put into operation. Credit Management Division was responsible for working capital financing and deposit-taking activities and designated to supervise the operational situation of projects which had already become operational, with emphasis attached mainly on facilitating repayments and preparing ex post evaluation. 4.04 Branch's Organization: During the early years of CIB, it had only three branches. With the help of relevant agencies and the development of CIB's own business, its branches increased markedly. The chronicle can be grouped into two stages. From 1984 to 1985, the Government had established reforms and opening policies. In response, the emphasis was then given to economic construction. Economic development needed badly financing to update the equipment of enterprises, and needed to address the imbalance between light and heavy industrles. At that time, China lacked foreign exchanges. Thus, the Government put great emphasis on financial sector development, with the purpose of making full use of financial intermediaries. Uses of external financing, in particular loans from international financial organizations. were considered effective means of addressing deficiency in financial resources in China. Against this background, CIB branches expanded remarkably for the first time, totaling nineteen. From 1987 to 1988, CIB branches witnessed another period of rapid expansion as a result of extended business scope. Financial resources from the Bark and ADB gradually increased. In addition. CIB started external commercial borrowing. Lending activities also expanded remarkably. At the same time, the Goverment set up separate plans for a number of large- and medium-sized cities within the State Social and Economic Development Plan and gave them authorities comparable to provinces, with a view to Providing increased incentives for these cities to make the economy more dynamic. In order to help these measures and to meet Its increased business requirements, CIB had been establishing branches in these cities ever since. These branches were under direct auspices of CIB headoffice. As of June 1988. CIB had 31 branches and 28 sub-branches around the nation. Thus. CIB maintained branches in twenty-two provinces, municipal cities. autonomous regions. 4.05 Relationships between headoffice and its branches: Headoffice has guiding and supervisory authorities over branches with regard to operations. Each branch conducts activities in accordance with guiding principles and policies set out by headoffice. In 1986, on project management, branches and sub-branches made comprenensive reviews. Appraisal reports for all projects - 47 - should be submitted by oranches to headoff ice for aQproval. Under necessary conditions, staff from neadoffice helped branches review project appraisal reports, and made comments and suggestions accordingly. After loans were approved, branches supervised implementation of projects according to guidelines of headoffice and submitted reports regularly to headoffice. In order to ease the pressures on neadoffice with regard to project approval and grant some branches with great experience more autonomy, CIB headoffice in 1987 delegated a few branches authorities to approve projects within upper limits set out by headoffice. The annual limits for each brancn had to be reviewea by headoffice each year. 4.06 Staff: CIB had 56 staff in its early years. At end-1987, it had 975 staff. At the end of 1987, it had 975 staff. Up to June 30 1993, staff number increased to 2150. Especially, in 1987, 1988, 1992 and 1993, staff numner of CIB had increased more quickly. It was mainly adapted to the both requirement for expansion of CIB's business and number of branches. (see Table 4.2) 4.07 With staffing number increasing, CIB paid attention to recruiting more professionals, with the aim of enhancing the quality of staff and laying the foundation for further development of business. In recent years. professionals stood at some 86% of total staff. Senior and medium-level staff were 723, accou.nting for 34%. Among them. 93 were senior staff, accounting for 4%. while medium-level were 630. accounting for 29%. Economists accounted for 49.5%, financial analysts 17.9%, engineers 12.2% and other professionals 6.5%. The composition of staff became more reasonable. It should be noted that number of professionals in 1987 and 1988 increased markedly, respectively, compared with each preceding year. During this time, increases in rumber of financial analysts and engineers were significant, with an increase of 33% and 47%, respectively. This mainly resulted from growth of international settlement operations, establishment of computer center and needs of more project managers. (See Table 4.3) 4.08 Recruitment: Before 1986, most of staff were from PCBC. as CIB needed staff who were familiar with banking operations at its early stage of development. After 1987, CIB changed its dependance on PCBC with more aiannels for recruitment. In addition to accepting graduates from universities and vocational scnools who were assigned by the Government, CIB also recruited professionals with strong educational background and long working experience from other agencies, with a view to meeting the work requirements. The establishment of the Personnel Division laid the ground for better recruitment, as it set up a recruitment examination scheme. After 1987. most of new recruits therefore were newly-graduated students and professionals from other agencies. The diversified sources of staff facilitated the potential operational developments of CIB. On the other hand, CIB faced immediate pressures, as it would take some time to make newly-graduated students familiarize themselves with and adapt themselves to CIB activities. II. Training 4.09 Since its establishment, CIB continued putting empnasis on staff training. Training programs were considered fundamentals to operation developments and improved management. ClB training programs took different forms in order to meet different needs. In recent Years, CIB held forty-nine-. training courses in China, and EDI held five seminars, with a combined cumulative audience of 2655. Each year, about 25% of staff in CIB participated in such training programs. To date, 253 staff have been sent to particioate in - 48 - training programs offered by international financial organizations and foreign banks; to study in universities aDroad and to receive on-the-job training in some foreign banks. Fifty-six Chinese and foreign experts have been invited to work and/or lecture in CIB. Branches conducted different kinds of off-the-job or on-the-job training programs by taking into account their own work load and prospective needs. In order to increase the quality of training programs, CIB had Trepared a great number of training materials. Through tnese training programs. CIB had heId a nunber of staff who could do satisfactorily project evaluation work and internationa I financial operations. Overall quaIity of CIB staff had been improved remarkably. (See Table 4.4.) 4.10 Manual on Industrial Project Appraisal (the Manual): The Manual was prepared by taking into account both industr I a I project appraisal practice in China and experience of the Bank in this regard. It played an extremely important role in enhancing the abilities of CIB staff with regard to project evaluation. The preparation of the Manual was a process of perfection. In addition, the publication of the Manual was supported by the Bank. When the Manual was revised, CIB received a lot of worthwhile advice from the Bank experts. In 1990 when the third edition was published, its coverage was enlarged further. It added a few chapters on Shadow Price Methods, Five-Year Financial Projections, Conversion Value in Sensitivity Analysis and Joint- Venture Project Evaluation. In October 1991. CIB made another revision on the third edition based on the suggestions made by the Bank with regard to Calculation of Contingency Costs. Calculation of Internal Financial and Economic Returns, Projections on Working Capital Requirements, Economic Analysis, Enterprise Repayments Projections and Five-Year Financial Projections. It is our convictions that the perfection and application of the Manual will make project evaluation work of CIB reach another new step in the future, and extend the current emphasis on project appraisal further to assessments on the overall abi I ities of borrowing enterprises to iimplement and repay the project loans. 4.11 As soon as the Manual was published. CIB started making it used In project evaluation. (1) In 1982. at its first project evaluation workshop. CIB began making its staff familiarize themselves with the Manual. By 1989. thirteen project evaluation workshops had been held, with an audience of 650. in addition, CIB made a campaign to encourage its staff to study the Manual by themselves, with a view to making each project manager within CIB know comIpletely the thirust of the Manual and use it ski I Ifully. (2) After its publication, the Manual had been selected by a nunber of universities as textbooks. (3) CIB staff were invited by other agencies to lecture on the method of project evaluation and to hold seminars on project evaluation for units in localities. As a result of these efforts, CIB had made the Manual used in its own work and known to other agencies as well. Therefore. CIB became the pioneer financial institution to introduce the internationally- recognized methods on project evaluation into China. Part V. Operational Development and Financial Performance I. Out Line Of CIB'S Operation Development 5.01 In the early day of CIB's establishaent. CIB mainly undertook on-lending industrial credits proved by World Bank. Starting from 1986, in order to adapt the Chinese developing-direction of a stepped up ' open to the outside' and the need of utilizing foreign funds, CIB's charnels of raising foreign - 49 - funds and business scope has been successively exploited wider and wider, and its diverse operations nas developed more quickly tnan before. 5.02 In raising funds from overseas, besides continuously getting loans from Wor I d Bank, CI B had yet borrowed Loans from ADB, commerc i a I banks and fore i gn governments. Its business has exPanded from concentrating on relending World Bank's loan to handling deposit, loan, loan in foreign exchange, international settlements, foreign exchange dealing and banking guarantee, issuing and issuing as agent of securities in foreign currency, and international financial leasing, etc. 15 kinds of foreign excnange operations. It has had strong capacity of handling foreign exchange operations in all-round. 5.03 Owing to drawing on the World Bank's useful experience in project management , CIB conducted scientific evaluation and strict management to the Loan subprojects: ensured projects' successful implementation: Strongly improved enterprises' technical progress: enhanced their capacities in exportation and foreign exchange earning and also achieved remarkably economic and social benef its. I n recent years. its short term loan oPerat ion has a I so developed so speed up that has well improved CIB's Assets gearing and has increased the benefits of Fixed Assets Loan. II. CIB'S Debt And Asset Operation 5.04 BorrowIng: After establisnment, CIB undertook on-lending industrial loan of World Bank: from the year, 1982, it borrowed 945 million dollars one after another from World Bank, Including 'hard loan' USD 770 million and 'soft loan' 175 million dollars. In 1986, the state council appointed CIB as one of the windows for financing funds from overseas. It has speared its business in this aspect steadily. Every year. in accordance with the planning target of raising overseas' funds approved by the State Planning Commission. CIB has borrowed medimn and long-term loans from commercial banks abroad. The currency sort, the interest rate and pay back term of these loans are different respectively. By the end of 1992. the Loans borrowed by CIB from foreign commercial barks were accumulated to 415 million dollars. In 1988, it borrowed ADB loan 100 miIIion US dollars, furthermore, in 1990, C0B negotiated yet with German government for borrowing a loan with amount of 2.7 million Deutsche Marks through a Germany bank. By di verse channe I s and measures, such as b i I atera I borrowing, joint-lending, banking group's loan, loan of international finance organization, government's loan, and buyer's credits, C0B raised foreign exchange 1.496 billion dollars. Among them, World Bank's loan was 63.1%; ADB loan made up 6.68%; govermment's loan accounted for 1.06%: buyer's loan hold 33%. and commercial Bank's loan held 27.74% of the total. On 23 JUIy 1993, in first time. CI8 successfully Issued floating rate bonds of 100 million dollars at the Asian capital market. Hong Kong. It not only perfected the CIB's measures of raising funds, but also won a good reoutation among coLunterParts in the capital markets, Nowadays, when the international caDital market has been tending to securitiesation consistently. 5.05 Deposits: Before 1990, the CIB's financial measures was mainly to borrow from international banking organizations and f-inance markets. A long with the deeP development of the financial and Banking system reform,' financial diversification and debt gearing multi lateralism nas become the operative strategy of various vocational banks . Commencing from 1991, the aeoosit operation has been put into CIB's important vocational plan. And by the end -50 - of 1992. the ooeration naa gainea great progress. RMB and foreign currency aeposits were reached 3.73 billion Yuan and 420 millions ao IIars. respectively. 5.06 Medium and long term loan. According to the requirements of the state's industrial policies, CIB selected loan projects actively but cautiously. Until the end of 1992, tne fixed asset loan projects approved by CIB were accumulated to 1339 ones; for them, foreign excnange was approved as 1.8 billion dot tars and counterpart RMB was 2.0 billion Yuan. In 1339 projects, 1056 had finished and had been operating: and nearly 300 of them had paid off the entire amount of the loan they borrowed. The establishments and operations of these projects have forceful ly improved these enterprises' tecrnological progress, enhanced their capacities in exportation and foreign exchange earning, and attained remarkably economic and social benefits. CIB took a series of strict and serious project estimation and selection, in the meantime, strengthened management and implementation for these projects. It helped enterprises to solve loan problems, and difficulties encountered during project constructive and operative stages. It not only improve the enterprises' economic benefits, but also guaranteed CIB needs of repaying principals and interests to overseas: at meantime, sPed up fund's turnover and made credit fi.nds flow in a sound circles. 5.07 Short term loan: In current years, CIB's short term credit developed very quickly. UP to 31 Dec.,1992, the balance of short term loan was foreign exchange 270 million dollars. and Y5.1 billions RMB. It means great significance to perfecting CIB's operation, functions and to transforming its operative mechanism. The development of short term credit has changed the unitary composition of CIB's assists; made the proportion between long and short term I oan tending rationally day oy day, and raised the fluidity of its credit assets. Not only investing direction of capitals has become further flexible, and credit risk has been reduced, but other operations has been improvea as well, such as tne developments of absorbing deposits and settlement operation. Especially lending short term loan to CIB's fixed assets loan clients, it has set uD long term credit relationship with tnem; besides perfecting CIB's credit assets gearing, increasing investment benefits, and ensiring loan recovery , so as to stabilize basic clients and to exploit operative realm. 5.08. International settlement : For perfecting banking functions further and offering full-scale services to clients, from the ena of 1987, CIB formally started to handle international settlement. Over 5 years, this operation developed speed up from only handling importation clearing under the amount of CIB loan at the beginning, to conducting exportation settlement, and further developed to handle nontrade clearing. So the service scale for clients has been successively exPanding . LUnti I May 1993. State Foreign Exchange Management Agency, authorized CIB's 28 branches to conduct trade settlement. The 26 of Them nas formally handled internationa I settlement to overseas. At banking operation aspects, these brancnes aealing with international clearing have Kept up good and cooperative relationship with PeoPle's Bank, China Bank, Constructive Bank. Commercial Bank, Agricultural Bank ana otner financial institutions, consistently. As yet, CIB has set up agent Dank relationsnio witn 140 banks in 24 countries; and has signea cooDerative agreements witn 1946 banks: so that an international settlement service network nas Deen formea by CIB all over tne Asia. Europe, Oceanic and America. ,see Table 5.2) -51- 5.09 Foreign Exchange Dealing. From'1989, CIB began to handle foreign excnange dealing and set uo foreign excnange dealing house. In current years. the operation has not only been developed sharply but also has offered perfectly service to clients and satisfied the demands of CIB's banking settlement and fund managements. The CIB's foreign exchange dealing house installed a relatively full range capital message communicative and dealing eouipment which are necessary for capital market, as same as the capital message communicating, dealing and technological analyzing system which used by Renter and American Federal News Agency for capital market need. By several years' development, CIB has fostered a group of experiential dealers and capital managers. Nowadays. CIB has had wide business relation-ship with several tens grant banks and finance institutions in major world finance markets, and has handled on spot, future. swap and option dealings for more than ten sorts of foreign currencies. In 1992. CIB totally conducted foreign exchange dealing several more than 2400 times; the amount of these dealings in various currencies, was equivalent to 6.5 billion US dollars. And did capital dealings reached about 600 times, the amount of capital dealings was reached equivalent value USD uP to 200 billions. In meantime, capital dealing showed very vigorous. and has brought nice benefits. Besides these. CIB has yet cone a party of securities' dealing, such as Japanese National Debt Commodities. In the day to come CIB will continuously speed up its development in the operation scale, variety of currencies dealing and client services, and so on. 5.10 Investment: CIB's directly participating and investing objects are domestic industrial firms, and Sino-Overseas joint-venture which participated by CIB. The investing-capitals are mainly as foreign exchanges. By the end of May 1993. CIB invested 12 million dollars in 18 projects. One out of the 18 projects,in 1992. the Shanghai International Leasing Corporation Limited, a joint venture of which CIB as a share holder signed agreements with an amount of 140 million USD. and the received rents were 40.73 million dollars. net profits 488 million RMB Yuan. It gained better operative achievement. 5.11 Leasing: Since 1992 starting financial leasing, to the end of May 1993. CIB had undertaken 8 leasing projects and financed 33 million dollars under loan. It put its operative emphasis on financing leasing for advanced foreign technology and equipments imported by domestic enterprises; in above amount. CIB financed 13.39 million USD for Shan Xi province to import movable telephone communicative installations, in order to support the development of local communication. It also raised or financed 11.23 million dollars for a firm of the state Aviation Department to help the project to import screw press with 800 screws, so as to improve the large-sized precise forging level of Chinese Aviation Industry. 5.12 Ratio of CIB's Assets and Debts: Table 5.1 shows: (1) Capital ratio ( Total Capital/Total Assets ), From 1988 to 1992, CIB's operation got a full-scale development, Assets increased so quickly, that improved its capital ratio's state which had been too high. The rate was rationally descended year by year, until the end of 1992. still was kept on the level of international common standards. (2) Loan Ratio (total Loan/ total Assets) The ration of CIB's total loan to total Assets was controlled on the level of 65-70% . during recent 5 years. Just in 1989, it was reached 76.5%; but latter, by adjustment, it was returned to the - 52 - controlled level afore mentionea. (3) Long term jiability -capital ratio (Long term liability/ total capital), According to tne ADB's requirements and suggestions of divers channels and resources to solve fund reauired, and the development strategy that CIB formulated, curing 5 years. long term funds raised directly by CIB from finance marKet haa been increased more quickly: untii 1992, tne ratio was basically reached tne upper ceiling on the reQuirements wnich was indicated by tne Worlc Bank and ADB. (4) Liability - Capital Ratio (Total liability/ Total capital). In oace with the development of CIB's operations, in debt operation. deposits absorbed and fund raised directly by CIB had greatly increased, so that tne CIB's liability - caoital ratio had been improved from 3.44 in 1988 to 10.69 in 1992, 2 times more than the 1988's figure. (5) Benefit ratio (Assets -Profit Ratio. total profit / Total Assets ), (Capital - Profit Ratio. Total profit / Total Capital) 1988 to 1992 was a key period of Chinese economic system turning from planning management to market mechanism. All economic factors such as resource allocation, market suoply and demand, price, measures of financing, basic income environment, and economic entity's ownersnip gearing, and so on. had happened tremendous changes. Economic management system had yet been pushed into reforming. Under these atmosphere, CIB's benefit state also had some waves, and its capital-profit rate and Assets-Profit rate had relevantly cropDed, too. Ill. CIB'S Financial State (see Table 5.3.5.4.5.5) 5.13 Financial State and Operative results: In recent five years. the CIB's financial state and operative results from 1988 to 1992. Sum of loan and investment: in 1988. the figure was Y4,466.812 thousand RMB. after then, it averagely increased by 38% in each year. In 1992. the sum of loan and investment reached Y15,923,188 thousand RMB. Its increase means that the state of loan's approval. commitment, payment and recovery was well. 5.14 Total Assets: in 1988 was Y6.704,364 thousand RMB. after than, increased averagely by 37.6% in every year. In 1992, tne figure of assets reached Y24.094,503 thousand RMB. the amount of net increase was 17.390,139 thousand yuan. This means CIB's operative amount has risen year by year. and its caoacity nas successively enhanced. 5.15 The amount of deposits; in 1988 was Y854,0195 thousand RMB. after then. it averagely increased by 65% each year. In 1992 the amount reached 6,134.724 thousano Yuan, in clouding foreign excnange deposits 1,649,457 thousand dollars and RMB deposits Y3.584,646 thousand RMB. It shows that CIB's capacity of absorbing deposits has consistently enhanced; its influence has constantly expanded. 5.16 The amount of borrowing, in 1988, was Y3.116.548 thousand RMB. after then, in every year, averagely increased by 33%. In 1992, it reacned Y9,559.236 thousand RMB. it means, CIB's has nad strong financing capacity ana souna reputation in loan repayment. 5.17 Net Worth.in 1988 was 1,512,789 thousana yuan, after then, in eacn year. it. on average, increased by 8%. In 1992, the figure reached Y2,059.748 tnousand RMB . t snows CIB's ooeration state nas been very well and its reserve nave increased year after year. 5.18.Especially the specific reserve expense. before 1998, it was lower tnari 4100 tnousand Yuan. but each Year. but in 1988.,t snarDly increasea to 11.777 -53 - thousana Yuan. From 1989 to 1992. it haa a consistent increase witn the resoective aata of 8,443; 86.192; 109,282: and 28.476 thousana yuan. The ratio of reserves for bad debts rose respectively as 0.4%. o.4%.1.2%. 1.2%, 2% auring-1988-1992. It ensurea that CIB's caoacity to oear loan repayment had expanded successively. 5.19. Net income, in 1988. was 61.086 thousand Yuan. and in 1992 it was 48.797 tnousand yuan. !t means, CIB's net income nas Dasically kept a higher profit level. 5.20. Benefit State. From 1988 to 1992, CIB's operation income/per Year was 396,925; 630,324; 855.727: 882,124; 1,095.040 thousand Yuan respectively. Since 1989 it averagely increased by 29.80% each year. in 1992 reached as 2.84 times of the 1988's figure. The CIB's operate income gearing mainly made up by its interests received from investment loans. In the 5 years, the amount of investment loan increased consistently, so as to the incomes from interests of investment loans increased correspondently. 5.21. The operation expenses from 1988 to 1992 were 205,600: 426.662: 612.921: 714,900; and 867,946 thousand yuan respectively. Since 1989 it had averagely increased by 43.32% year after year. The operative expenses gearing was mainly expenses for loan interests. Alongside tne continuous expansion of the amount of loan, the amount of expenses for loan interests also relevantly increased year by year. - 54 - .TABLE 2.1. UNDER FORTH WORLD BANK INDUSTRAL LOAN / CREDIT ( LPTO DATE: JUNE 30, 1993 ) TABLE MAKER: PROJECT DEPARTMENT 1 OF CIB EXPRESSED BY USD 10 THOUSAND SDR 10 THOUSAND RMB 10 THOUSAND Loan/ Gategory Borrower USD FRMB USD SDR Credit APproved Approved Comfirmed Comfirmed No. by CIB by CIB by WB by WB 1763 A001 ZIBO TOWELS MILL 241.40 205.20 199.45 1763 A002 XIAMEN REBBER PLANT 197.60 300.80 125.55 1763 A003 YICHANG MACHINE TOOL 149.00 225.00 120.70 1763 A004 ZHONGNAN RUBBER 241.20 100.00 158.70 1763 A005 KESHAN LINEN YARN SP 135.50 201.60 0.00 91.74 1763 A007 LIAO YUN AUTOMOTIVE 259.40 369.40 183.12 1763 A009 XIANG TAN CABLE WORK 280.96 388.70 215.82 1763 A013 FIFTH ELECTRONICS EL 43.31 30.50 31.65 1763 A017 ZHU ZHOU NO.7 RADIO 73.00 0.00 53.48 1763 A039 ZHANJIANG INSTRUMENT 168.00 0.00 0.00 126.02 1763 A077 SHANDONG XINWEN CEME 150.00 220.00 87.11 1763 A084 WUHAN CABLE CORP. LT 51.53 0.00 37.20 1763 A088 CHANGSHEN CERAMICS C 247.50 0.00 158.36 1763 B001 WUXI NO 2 ELEC FAN 62.55 81.65 43.48 1763 B002 CHAOZHOU CIVIC MATER 40.00 60.00 20.09 1763 B003 N CHINA PHARMACEUTIC 65.00 80.00 37.57 1763 8005 YA-AN SHOE/LEATHER 90.00 180.00 46.48 1763 B006 JIANGIN S PARTS 92.80 68.00 32.59 1763 B007 XIAOSHAN INST S FAST 50.00 50.00 38.93 1763 B009 YULIN MEDICINE FAC 41.20 20.00 0.00 31.95 1763 8010 CHENGDU SILK PRINTIN 30.00 0.00 0.00 22.65 1763 B012 NINCHONG SILK PLANT 30.00 0.00 0.00 23.32 1763 B013 ZHEJIANG SHAOXING 103.00 130.00 0.00 80.19 1763 B014 FUAN LEATHER FAC 26.50 39.70 20.34 1763 B015 CHAOYANG RADIO PLANT 65.00 75.00 50.84 1763 B016 DAILAN RUBBER & PLAS 70.00 70.00 43.17 1763 B018 SHANGHAI NO 1 ALUMIN 159.10 356.30 123.81 1763 B019 HONG RH IRON PRINTIN 86.30 104.70 0.00 67.16 1763 B020 YANGZHOU EMBROIDERIN 62.60 79.60 48.64 1763 8021 ZHAOYUAN METALS LOCK 84.10 123.00 65.44 1763 B024 WUXI MEAT FACTORY 99.00 45.00 0.00 38.02 1763 B025 MAJIAGOU FACTORY 93.00 80.00 72.39 1763 B027 NANTONG WOLLEN MILL 78.20 63.90 60.57 1763 B029 JINGJIAN QUINJING 70.00 104.68 54.70 1763 B031 YA WORSTED MILL 83.00 0.00 64.90 1763 B032 JILIN HOSIERY FACTOR 68.00 102.50 52.40 1763 B033 SHANGHAI NO 15 TOWEL 129.60 189.80 0.00 94.66 1763 8034 QINGDAO NO.5 KNITTI 65.50 0.00 50.40 1763 B036 SHADONG LINYI NO.2 54.20 81.30 31.29 1763 B037 HAINEN LEATHER PRODU 40.00 60.00 20.03 - 55 - Loan/ Gategory Borrower USD RMB USD SDR Credit ADQroved APoroved Comfirmed Comfirmed No. by CIB by CIB bY WB bY WB 1763 B038 SHENYANG CABLE WORKS 110.00 120.00 88.26 1763 B041 CHANG ZHOU RADIO MAT 138.18 168.42 103.95 1763 B042 TIANJIN TOOL FACTORY 31.30 0.00 23.29 1763 B043 HANJLIANG GARMENT FA 28.00 45.97 0.00 18.57 1763 B044 DALIAN ZHONGCHANG IN 20.00 30.00 14.73 1763 B045 TIANJIN NO. 9 GARMEN 78.00 0.00 57.93 1763 B049 JINXI PLASTIC WORKS 120.00 87.00 1763 B159 YANTAI PRINTING FACT 161.82 118.00 1763 B160 LUZHOU TRANSPORTATIO 140.00 102.10 1763 B161 YINGKUO PHARMACEUTIC 40.00 29.00 1763 B162 TANGSHAN COMPOSITE M 117.20 116.60 81.00 1763 B163 SENDA SUPER HARD MAT 95.00 42.00 1763 B164 QINGDAO LAMINATING & 150.00 0.00 108.00 1763 B170 SHUNDE SILK FACTORY 133.15 96.60 1763 B017 LIUZHOU PHARMACEUTIC 48.00 30.00 0.00 22.14 1763 B004 ZAOYANAG BICYCLE 55.70 80.00 43.76 1783 B047 GINGDAO SECOND FOODS 64.00 68.00 46.40 2783 A012 MLUDANJIANG FEN. VULC 436.40 673.80 535.30 2783 A014 CHANGCHLJN TESTING 125.10 0.00 69.10 2783 A015 SHAOGUAN TOOL PLANT 119.89 177.96 119.89 2783 A016 NANJING WOOLEN MILL 290.00 271.00 304.02 2783 A018 CHONGQING RAMIE SPIN 185.90 264.60 185.90 2783 A019 YANTAI TANNERY MILL 195.40 224.00 194.49 2783 A020 DONGNING BUILDING CE 190.00 285.00 190.00 2783 A021 CHUZHOU MAIN FACT OF 233.00 135.00 233.00 2783 A022 SHAOGUAN POWDER META 105.30 153.90 103.15 2783 A023 SHENYANG WIRE ROD PL 489.00 950.00 491.00 2783 A024 GUILIN TYRE FACTORY 221.00 326.00 220.00 2783 A025 SHANGHAI COPPER FACT 658.70 418.00 648.69 2783 A026 FUZHOU ELECTRIC WIRE 152.54 216.70 152.54 2783 A027 HEFEI ALUMINIUM PLAN 180.00 250.00 180.00 2783 A028 XIANGTAN TEXTILE PRI 185.00 316.60 103.00 2783 A030 SHANG YU COTTON TEXT 283.60 425.40 237.71 2783 A031 GUANGZHOU RLBBER HOS 198.08 115.15 198.08 2783 A032 WUZHOU COTTON MILL 318.30 309.40 318.34 2783 A034 LIUZHOU MACHNIERY PL 250.00 400.00 248.90 2783 A035 DONGFANG CHEMICAL PL 388.20 515.20 388.22 2783 A036 SHI JIA ZHUANG TEXTI 173.70 250.00 177.14 2783 A037 DALIAN RECORDING EQU 197.00 258.00 193.80 2783 A038 HEFEI BICYCLE FACTORY 260.00 250.00 160.13 2783 A040 LINYI PRINTING & DYE 181.50 200.00 109.12 2783 A041 MUIDANJING ELECTRIC 294.40 441.60 294.40 2783 A042 QINGDAO EMBRODERY M 280.40 0.00 280.40 2783 A043 NO.1 FILM FACTORY 523.30 720.00 523.24 2783 A044 OIN HUANGDAO SHIP BU 237.10 356.50 153.52 - 56 - Loan/ Gategory Bcr-rower LSD RMB USD SDR (ed it. ADDroved ADoroved Comfirmed Cormrf i rmed No. hy CIB bY CIB by WB by WB 2783 A046 SHANGHAI SAFETY RAZO 322.90 696.90 322.90 2783 A047 (:HANGCHUN WATERPROOF 222.20 330.20 222.20 2783 A049 DANDONG NO.2 SILK FA 204.50 193.20 204.50 2783 A050 BAOTOU SPINNIN(; MILL 190.30 294.25 190.30 2783 A052 WOOLEN MILL OF TAONA 164.80 264.40 71.80 2783 A053 SHI HE ZI FOOD PRODU 144.50 190.80 144.50 2783 A054 BAOTOU GELATIN PLANT 151.87 200.00 151.87 2783 A055 JING YIN ELECT (ORP 435.30 105.20 435.30 2783 A056 QING DAO GRAPE WINER 227.35 0.00 227.35 2783 A057 FENGCHE-NG SILK MILL 246.15 157.00 175.58 2783 A058 GUANGZHOU TEXTILE CL 431.00 422.00 354.53 2783 A059 C[ENGDOU NO.2 RADIO 125.00 250.00 125.10 2783 A060 RONGCHENG PLASTIC 238.70 242.40 237.17 2783 A061 BEIJING; NO. 3 202.00 239.90 202.00 2783 A062 HAICHENG SILD MILL 381.40 587.40 381.40 2783 A063 SOUTHWEST ELECTRIC 200.00 100.00 122.83 2783 A064 SHENYANG TOWEL FAC 213.35 330.80 213.36 2783 A065 YANTAI BROADCLOTH FA 327.00 0.00 321.38 2783 A066 ANSHAN STrEEL WIRE 418.70 617.50 379.51 2783 A067 SHIDAO EMBROIDERY 164.00 202.80 149.31 2783 A068 JIANGMEN PAPER MILL 388.20 362.50 388.34 2783 A070 TIANJIN WOOLEN FABRI 360.00 60.00 360.00 2783 A071 TIANJIN NO.1 KNITTIN 274.10 0.00 274.10 2783 A072 QINGDAO NO.1 DYEING 332.00 0.00 332.00 2783 A073 HANDAN THIRD PORCELA 264.08 0.00 263.97 2783 A074 YING KOU NO.2 267.60 200.00 264.66 2783 A075 SHANGHAI 3RD BICYCLE 544.60 0.00 457.39 2783 A076 SHANHAI NO.2 TOWER 285.90 428.90 285.90 2783 A079 SHANCHUAN MACHINERY 299.00 299.00 2783 A080 JIANNAN DIE CASTING 184.10 175.60 2783 A082 JIANXI RUIFENG CERAM 295.00 278.00 2783 A083 HEZE WOLLEN TEXTILE 292.20 292.20 2783 A085 WUHAN CABLE CORP. LT 20.60 20.60 2783 A086 CHONGOING SIU4CERAMI 295.50 299.50 2783 A087 SICHUAN RUBBER PLANT 297.00 297.00 2783 A089 CHANGPU OIL SEALS CO 245.60 240.00 2783 B028 SHENYANG FIRST 96.85 146.00 96.85 2783 B030 ANOING BED SHEET 106.00 157.50 106.00 2783 B035 HUBEI AUTOMOBILE 115.33 86.50 115.33 2783 B047 YANG 12TH RADIO FACT 99.00 150.00 99.00 2783 B048 CHANGZHOU TRANSFORME 121.42 104.27 121.42 2783 B049 TIANJIN NO.25 GARM 63.00 0.00 63.00 2783 B050 YICHANG ELECTRIC WIR 96.60 120.20 65.79 2783 B051 TIANJING TOLIET SOAP 114.00 0.00 113.98 2783 B053 TIANJIN 712 FACTORY 100.00 135.00 100.00 - 57 - Loan/ Gategory Borrower USD RMB USD S-R (red I t APoroved ApProved Comf i rwed Comf i rmed No. bY CIB by CIB by WB by WB 2783 B054 TIANJIN YU-IJA DRESS 112.00 0.00 112.00 2783 B055 TIANJIN NO.1 GARMENT 66.00 0.00 65.99 2783 B057 LISHU COUNTY WOLLAST 83.40 0.00 32.60 2783 B058 HONGXING CHEMICAL FA 99.00 58.00 99.00 2783 B059 NANJING STEEL ROLLIN 72.00 86.40 61.61 2783 B060 ZHONG HU RUBBER FACT 90.50 127.19 90.49 2783 B061 WUXI SILK DYEING AND 186.00 0.00 195.68 2783 B062 HANGZHOU SOCK FACTOR 105.10 0.00 105.10 2783 B064 SHANGHAI HOUSE}IOLD C 26.50 0.00 26.50 2783 B065 SHANGHAI DAILY ClHEMI 110.00 0.00 86.40 2783 B066 FOSHAN CITY SWEETS F 49.72 0.00 49.71 2783 B067 BENXI SILK PRINTING 70.00 105.00 58.88 2783 B068 SHANGHAI DAZHIHE WOO 85.10 0.00 85.09 2783 B069 XINCHANG SOCK FACTOR 23.00 34.50 20.15 2783 B070 YIFENG ENAMEL PRODUC 243.00 45.80 218.00 2783 B071 YAN TAI WOOL MILL 94.90 60.00 60.04 2783 B072 ANHUI SHUCHENG JUTE 115.00 22.70 115.00 2783 B073 YANGZHOU BAOCHENG RA 61.40 93.00 35.81 2783 B075 RLBBER FACTORY OF SH 103.00 101.80 103.00 2783 B076 HECHUAN CHEMICAL MIL 63.30 99.70 62.67 2783 B077 YINGKOU WASHING MACH 110.00 150.00 26.05 2783 B078 NINETH INSTITUTE OF 68.81 31.40 56.42 2783 B079 WUXI ZHONGHUAN EMBRO 83.50 0.00 70.05 2783 B080 JINGMEN CHEMICAL PLA 45.00 0.00 42.40 2783 B081 WUXI KNITTING FACTOR 77.15 40.83 68.05 2783 B082 DALIAN BREWERY 90.00 140.90 90.01 2783 B083 FLLIIAN ZHANGZHOU CAN 130.30 41. 0 125.78 2783 B084 HANGZHOU PRINTING AN 108.50 142.20 45.00 2783 B085 SHANGHAI HONGYI GARM 18.50 0.00 17.00 2783 B086 CHENGDU BATTERY FACT 76.00 77.70 68.91 2783 B087 FANGSHAN NO.1 CLOTH 89.90 148.70 89.90 2783 B088 DALIAN ENAMEL INDUST 58.23 0.00 50.69 2783 B089 DUNHUA SHENGLI WOOD 39.00 37.70 39.00 2783 B091 MEIXIAN MAGNETIC MAT 84.40 125.51 83.85 2783 B093 FU SHUN LIGHT INDUST 100.40 152.00 100.40 2783 B094 HUANG SHI CITY SPRIN 78.40 117.60 31.19 2783 B095 2ND AUTO FITTINGS 98.40 89.00 50.74 2783 B096 SHANGHAI BEE HONEY 50.00 122200 50.00 2783 B097 LAO SHAN NUTRITION F 45.00 50.00 52.50 2783 B098 SHANGHAI 3D SPARE PA 26.10 14.10 28.09 2783 B099 TIANJIN WEAVING FABR 150.00 70.00 150.00 2783 B100 WORSTED POLYESTER Fl 99.80 164.00 99.80 2783 B101 HUBEI SUIZHOU BLANE 33.29 34.07 29.09 0.00 2783 B102 XIANG FAN TANNERY 93.70 108.30 93.70 2783 B103 LAOHEKOU SPECTABLE M 41.30 74.90 38.29 - 58 - Loan/ Gategory Borr'ower USD RMB USD SDR Cred it AQoroved APproved Comf irmed Comf irmed No. by CIB by CIB by WB bY WB 2783 B104 SHASHI RUBBER PLANT 66.70 131.40 48.89 2783 B106 KNITTING MILL OF HUA 34.35 33.91 33.11 2783 B107 YICHANG COTTON TEXTI 95.00 143.40 95.00 2783 B108 JING JIANG GLOUCOSE 151.89 1115.40 151.34 2783 B109 ZHEJIANG HANGZHOU HU 78.00 118.00 78.48 2783 B110 ANHUI SILK 120.00 180.00 120.00 2783 Bill ZHUZHOU EQUP 30.00 20.00 29.63 2783 B112 QINGDAO COUNTER FAC 184.00 20.00 77.45 2783 B113 TIANJIN SEMI-CONDUCT 76.00 123.00 76.00 2783 B114 HANGZHOU NO.3 KNITT 132.70 130.00 122.95 2783 B115 TIANJIN THIFD TOWER 141.00 97.00 141.00 2783 B116 HAIMEN COUJNTY HAND- 94.00 0.00 76.75 2783 B117 DALIAN LUSHUN KNITT 30.00 45.00 22.34 2783 B118 WUXI WOOLEN MILL 148.05 219.83 97.78 2783 B119 TIANJIN NO.2 KNIT 76.10 31.40 76.10 2783 B120 (;LANGDONG SHANTOU 0/ 97.00 132.00 96.94 2783 B122 NO.3 RADIO FACTORY 148.00 333.50 59.11 2783 B123 FUR SONGSHU WOOLEN K 59.40 29.20 59.40 2783 B124 ZFENJIANG PLASTICS 89.54 125.33 82.92 2783 B125 XINJIANG QIYI NO.2 51.60 55.00 48.08 2783 B126 YANG ZHOOU RADIATOR F 100.00 165.00 45.59 2783 B127 TIANJIN GLASSWARE WK 243.00 0.00 243.00 2783 8128 TIANJIN GLASS INSTRU 215.50 0.00 215.50 2783 B129 DALIAN ZHUANGHE SILK 50.00 0.00 17.08 2783 B130 YINGKOU WASHING MACH 79.23 120.00 79.23 2783 B132 ZHANGJIAGANG SWEATE 65.00 0.00 65.00 2783 B134 SHAANDONG WEIHAI WOOL 98.80 95.l20 98.64 2783 B135 DALIAN LID PROD 38.00 50.00 37.94 2783 B136 SHEWNANG MATAL FORMI 42.00 65.00 19.28 2783 B138 SHENWANG AUTOMO GEAR 144.00 140.00 144.00 2783 B139 CHENZHOU MIRROR FCTY 62.60 73.00 21.59 2783 B140 CHANG CHUN MED FAC 99.10 148.30 99.10 2783 B141 BAOTOU NO.4 FURNITUR 57.07 91.93 54.30 2783 B142 SHANGHAI FU DA INDUS 22.60 22.61 2783 B143 HUATING LEATHER 61.50 0.00 60.77 2783 B144 HOHHOT ELECTRIC TOOL 49.87 48.05 2783 B145 WEIHAI CLINICAL MACR 129.00 130.00 2783 8146 CHONGOING JINYUN CER 116.70 116.70 0.00 2783 B147 RONGCHENG LIGHT BLB 73.00 59.90 2783 B149 LUANNAN FISHNET FACT 170.00 132.60 2783 B150 TIANJIN NO.7 PLASTI 89.00 55.00 89.00 2783 B151 ZHUZHOU TV FACTORY 90.00 90.00 2783 B152 SUZHOU VICTORY RADIO 70.40 70.40 2783 B154 NANNING WALKING TRAC 49.80 49.80 2783 B156 SHISHOU PUlP WORKS 39.30 37.79 - 59- - a-n - a -t -- - - - --------- B - - - - -w -e -- -------------------- - - - ---- - ---- -- -------- )--D------ - R Loan! Gategory Borrower USD RM1B USD SDR (red It. Approved Approved Comf i rmed Comf I rmed No. by CIB by CIB by WB by WB. 2783 B157 TIANJIN METTALURGICA 86.00 85.83 2783 B158 SHENYANG ALUMINLUM PR 168.00 168.00 2783 B165 BINZHOU PACKGE PRIN 146.80 146.80 2783 B166 LIANYWUGANG DZ IND. 71.00 71.00 2783 B187 CHANGXIN SPANDEX PRO 59.50 59.50 2783 B168 INDWUSTRY & TRADE ASS 135.20 127.20 2783 B169 DAYE STEEL C0. 168.53 155.20 2783 B171 SHAOXING NO.4 CHEMI 195.10 195.10 Total 228 32572.44 28077.55 25073.00 3920.64 -60 - TABLE 2 .L) LS'I T OF TOURTEEN SLURPROJECTS TRANSFORED UP TO DATE: JUNE 30 1993 MONETARY UNIT: 10 FHOUSAND/USD/SDR/YIJAN SUB- USD RENMINBI USD RENMINBI PROJECT BORROWER APPROVED APF'ROVED CONFIRMED CONFIRMED NUMBER BY CIB BY CIB BY WB BY WB A006 HUBEI GEAR PLANT 78.60 0.08 A008 DAYE STEEL PLANT 266.00 409.00 0.08 AO10 YUSHU CTY SHOR FACTO 8.17 8.17 4.36 A011 DA AN TANNERY 16.85 24.50 7.32 B022 SHANDONG CHENGWU WOO 33.90 0.00 7.73 B026 NINGBO GRANITE 49.00 52.30 B040 GLASS TACTORY OF FEN 50.00 32.50 B046 QIYANG MATTING FACTO 45.00 48.10 A051 WUHU SILK MILL 297.00 450.00 A069 BEIJING WASHING MACH 184.00 5.35 B074 DANDONG NO.1 SILK 108.20 66.20 4.81 BO90 JINZHOU NO.1 PHARMA 67.33 90.00 2.33 B105 NANJING PLASTIC 33.00 50.00 0.31 B121 HEZE INSTRUMENT & ME 99.50 126.30 1.20 -61 - TABLE 2. 3 (OMITMENT STATE &- r BPFOJECTS UNDER THE WORLD BANK LOAN/CREDIT IV UP 10 DATE: JUNE 30 1993 MONETARY UNIT: 10 THOUSANI) USD/SDR i I |~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ I TOTAL SLJBPROJECTS I USD AF'PROVED I SDR APPROVED I I APPROVED YEAR OF I i CONFIR- I IRATE (%) RATE (%)II I RATE (%)I MATION I I OF TOTAL I IOF TOTAL I I OF TOTAL I IQUANTITY I SUB- I AMOUNT i AMOUNT I AMOUNT I AMOUNT I I I PROJEC'TS I I OF USD I I OF SDR ! I I APPROVED I !APPROVED I I APPROVED I 1987 I 67 2 9 I4431 18 I2706 69 1988 I 119 ! 52 1 16583 66 I 309 I 8 1 1989 I 6 1 3 I 284 4 1 I 87I 2 1990 i o I o I nI o I oI o I 1990 I 01 0 0 ! 0 1 0 1 0 I i991 I O I n I oi o I oI o I 1991 I 0 1 0 I 0 1 0 I 0 1 0 1992 I 10 1 4 1 578 1 2 1198 1 5 1 I I I iI I I 1993 I 26 1 12 13197 1 13 1 620 1 16 TOTAL I 228 100 I 25073 I 100 I I 100 I I -i I I I -62 - TABLE 2.4 REIMBURSEMENT OF THE WORLD BANK LOAN/CREDIT IV AS OF DATE: JUNE 30 1993 MONETARY UNIT: 10 THOUSANED USD/SDR I AMOUNT OF ACCUMULATIVE ! SHARE(X) OF ACCUMULATIVE I REIMBURSEMENT IN THE YEAR REIMBURSEMENT OF THE YEAR IN THE I I AMOUNT OF THE LOAN/CREDIT IV I 1763-CHA I 2783-CHA I 1763-CHA I 2783-CHA I EQUALI I I I SDR I USD I USD I SDR I USD 1987 I 1605 I 2086 1 23 I 39% I 0.1% 1988 I 1522 1 1978 I 5309 1 37% I 21% I I l I I 1989 i 355 I 461 I 9913 1 9% I 40% 1990 I 257 1 334 1 1635 I 6% 7% 1991 I 79 I 102 I 923 I 2% 4% 1992 1 -1006 I -1308 1 124 1 -25% 1% 1993 1 1264 ! 1769 I 6780 1 31% I 27% TOTAL I1 4076 ! I 1 1i TOTAL I 4076 I 5422 I 24707 I I I I I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ - 63 - TABLE '.5 OWNESI-Nf!P ANALYSI'S OF SUBPROJECTS' UJNDER WORLD BANK LOAN/CREDJT IV UPL) TO OATE: JLJNF: 30 199'-3 MONETARY UNIIr: 10 THOUSAND USD NUMBER OF SHARE (%) OF SHARE (%) OF' OWNERSHIF' SUBPROJECTS TOTAL AMOUNT OF TOTAL APPROVED SUBPROJECTS LOAN AMOUNT APPROVED APPROVED APPROVED STATE-OWNED ENTERPRISES 209 92 % 28.099 93 9 CELLECTIVE ENTERPRRISES 14 6 9 1.209 4 M OTHER FIRMS 5 ° 906 3 X TOTAL. 228 100 % 30,.214 100 9 - 64 - 'IABLE 2'.6 CONSTRUCT C CHARACTER'S ANALYSIS' OF ''UBRPROJECTS, UNDER WORLD BANK ..(QAN/CREDIT IV lJP TO DATE: JUNE 30 1993 MONETARY UJNIT: 10 THOUSAND USD CONSTRUCTIVE SUBPROJECTS SHARE(X) OF THE AMOUJNT' OF SHARE(X) OF CHARACTER APPROVED TOTAL SUBPRO- LOAN THE AMOUNT OF NUJMBER JECTS APPROVED APPROVED LOAN APPROVED NEW PROJECTS 41 18 % 5,839 19.3 94 OTHERS '187 82%6 24,375 80.7% TOTAL 228 100% 30,214 100% -65 - TABLE 2.7 SCALE ANALYSIS OF SUBPROJECTS UNDER WORID BANK LOAN/CREDIT IV UP lO DATE: JUNE 30 1993 MONETARY lJNIT: 10 THOUSAND U'D SCALE NUMBERS ATE (%) OF AMOUNT RATE (%) OF EXPRESSED OF THE TOTAL OF THE TOTAL BY 10 SUBPROJECTS SUBPROJECTS LOAN AMOUNT OF THOUSAND APPROVED APPROVED APF'ROVED LOAN US DOLLARS APPROVED BELOWW 50 45 20 X 1,514 5 M 50 - 100 73 3296 5,364 18 % 100-250 80 35%6 12,733 429X 250-500 27 12 6 8.896 2996 OVER 500 3 1 % 1,707 6k TOTAL 228 100% 30,214 100 % -66 - TABLE 2.8 REGIONAL DISTRUBUTION ANALYSIS OF SUBPROJECTS UNDER THE WORID BANK'3 LOAN/(CREDIT IV lJP TO DATE: JUNE 30 1993 MONETARY UNIT: 10 THOUSAND USD NUMBER OF SHARE (%) OF AMOUNT OF SHARE (%) OF REGION SUBPROJECTS THE TOTAL THE LOAN THE TOTAL APPROVED SUBPROJECTS APPROVED AMOUNT OF L.OAN APPROVED APPROVED BEIJING 5 2 906.4 3 TIANJING 19 8 2,417.1 8 HEBEI 9 4 1,510.7 5 NEIMONGGU 5 2 604.2 2 LIAOLING 15 7 2.114.9 7 SHENYANG 7 3 1,208.6 4 DALIAN 8 4 604.2 2 tJILIN 9 4 1,208.6 4 HEILONGJIANG 4 2 1,208.6 4 SHANGHAI 15 7 2,719.2 9 JIANGSU 26 11 2.114.9 7 ZHEJIANG 10 4 906.4 3 ANHUI 7 3 906.4 3 FUJIAN 4 2 302.1 1 SHANDONG 17 7 2,719.2 9 QINDAO 6 3 1,208.6 4 HUBEI 19 8 1,510.7 5 WUHAN 2 1 HUNAN 4 2 604.2 2 GUANGDONG 11 5 1,510.7 5 HUANGZHOU 2 1 604.2 2 SHENZHEN 1 GUANGXI 6 3 906.3 3 JIANGXI 1 302.1 1 SICHUAN 8 4 906.3 3 CHONGOING 5 2 906.3 3 SHAANXI 1 XINJIANG 2 1 302.1 1 TOTAL 228 100 30,214.0 100 -67 - TABLE 2.9 INDUSTRIAL DISTRIBUT ION rCj SUBPROJECTS UNDER THE WORLD BANK LOAN/CREDUT IV UP TO DATE: JUNE 30 1993 MONETARY UNIT: 10 THOUSAND U8D NUMBER OF SHARE(%) OF AMOUNT SHARE (%) OF INDUSTRIES SUBPROJECTS THE TOTAL OF THE THE TOTAL APF'ROVED SUBPROJECTS lOAN AMOUNT OF LOAN APPROVED APPROVED APPROVED LIGHT-INDUSTRY 38 17 5105 17 CONSTRUCTIVE- MATERIALS 11 5 1734 6 MACHINERY 36 16 4714 16 TEXTILE 55 24 8282 27 ELECTRONICS 20 9 2153 7 PETROCHEMICAL 16 7 2639 9 METALLURGY 8 4 1741 6 PHARMACEUTICAL 7 3 538 2 PACKETAGE 2 1 233 1 FOOD-INDUSTRY 9 4 843 2 AGRICULTURE & ANIMAL HUSBANDRY 1 133 0.4 CONSTRUCTION 1 114 0.4 SEWING 23 10 1923 6 OTHERS 2 62 0.2 TOTAL 228 100 30214 100 68 - TABLE 3.1 IMLEMENTATION PROGRESS C;r SOUBPROJLCTS UNDER THE WORLD BANK LOAN/CREDIT IV UP TO DATE: JUNE 30 1993 - SHARE (%) OF THE QUANTITY TOTAL SUBPROJECTS APPROVED OPERATING SUBPROJECTS 197 869k 1.ON TIME OR AHEAD OF SCHEDULE 124 54 '.DELAYED FOR 6 MONTHS 41 189 3.DELAYED FOR 6-12 MONTHS 26 11 m 4.DELAYED FOR 12-24 MONTHS 6 39% ACCONUT-CLEARED SUBPROJECTS 45 20 X CONSTRUCTING SUBPROJECTS 31 14 9 TOTAL 228 -69 - TABLE 3.2 SUBF'ROJECTS' OPERATIONAL STATE OF WORLD BANK LOAN/CREDIT IV AS OF DATE: JUNE 30 1993 RATE(X) OF OPERATING CAPACITY TO REACH BELOW FULLY OPERATIVE 90%-100% 70%-90% 50%-70% 50% CAPAC'ITY NUMBER OF OPERATING SUBf'ROJECTS 99 20 27 51 TABLE 3.3 ECONOMIC EFFICIENCY OF SUBPROJECTS UNDER THE WORLD BANK LOAN/CREDIT IV UP TO DATE: JUNE 30 1993 MONETARY UNIT: 100 MILLION USD/YlJAN 4LWLY NEWLY NEWLY NEWLY INCREASED INCREASED NNCREASED EXCHANGE PRO[)UC- PROFITS TAXES EARNING TIVITY AMOUNT 29.5 2.3 2 2.6 SHARE(X) IN THE FORECAST AMOUNT 90% 69% 77% 63% OF APPRAISAL - 70 - TABLE 3.4.1 COMPARISION BETWEEN SUBPROJECT'' COSTS AND INVESTMENTS MONETARY UNIT: 10 THOUSANI) YUAN/USD I I IN IT: CIB I INVESTMENT GEARING TOTAL INVESTMENT INVESTMENT I BORROWER I I I 1 USD FOR I RMB FOR IRMB FOR I FOREIGN I I FOREIGN I I TECHNIC CONSTRUCTION OTHER I EXCHANGE I RMB IEXCHANGE I RMB EQUIPMENT I AND I EXPENSE I I I I I IMPORT ENGINEERING I I ~~~~~~~Ii I GUILIN APP. I 221 1 576 1 221 1 326 1 221 1 255 1 71 TYRE FACTORY I I I i I I I A024 ACT. I 219 1 578 1 221 1 326 1 219 1 255 1 71 i ~~~I I' ! i ii KESHAN APP. I 147.3 12668 1 147.3 1 212.2 1 147.3 1 550.5 1 1764.5 LINEN YARN SP I I I I I I I A005 ACT. I 147.3 1 2710 1 147.3 1 212.2 1 147.3 1 631 1 1701 III I I!! DONGNING APP. I 240.2 11775 1 240.2 285 I 240.2 1 212.1 1 517.1 BUILDING CE i i I I I A020 ACT. i 240.2 11708 1 240.2 1 285 i 240.2 1 305.7 1 1061.3 CHANGCHUN APP. I 73 1 91 1 73 1 1 73 1 1 89 TESTING I I Ii I I I A014 ACT.I 69 1 20 1 69 I I 69 1 I 15 CHUZHOU APP. I 233 1 235 1 233 1 135 1 185 1 75 1 233 MAIN FACTO OF I I I I I I A021 ACT.I 219 1 275 1 219 1 135 1 187 1 80 1 204 DONGFANG APP. I 408 1 2962 1 388 1 515 1 326 1 80 1 1282 CHEMICAL PL. I I I I I I i A035 ACT. I 408 1 2786 1 388 1 515 1 326 1 80 1207 I I I I I I! XIMEN APP. I 198 1 822 1 198 I 300 i 198 1 315 174 RUBBER PLANT I I I I I I I A002 ACT. I 188 11126 1 198 I 300 i 188 1 516 1 62 I II! Ii JIANGMEN APP. I 388 1 921 1 388 1 363 1 281 1 234 1 69 PAPER MILL I I I i I I I A068 ACT. I 388 11033 1 388 1 362 1 306 1 336 ! 95 ZHU ZHOU APP. I 73 1 440 1 73 1 1 64 1 252 1 60 NO.7 RADIO I I I I I I ! A017 ACT. I 73 1 742.1 73 i 45 1 62 1 439 1 115 FUZHOU APP. ! 153 1 341 1 153 217 I 112. I 90 i 113 ELECTRIC WIRE I I I i i i - I A026 ACT. I 153 1 365 1 153 j217 1 138 1 139 i 32 NOTE: APP--APPRAISABLE DATA. ACT.--ACTTUALLY HAPPENED DATA. - 71 TABLE 3.4.2 COMPARISION BETWEEN IMPLEMENTING-PROGRESS ANO APPRAISABLE PROGRESS OF SUBPROJECTS *~~ ~ ~ ~ ~ ~ ~~~~~~~~~~~~ I I Ii DATE OF I DATE OF I DATE OF I DATE OF IDATE OF DATE OF LOAN PAYIN6 OFF I SUBPROJECT I LOAN IC(ONSTRUC- PUTTING IOPERAT BORROWER I APPROVAL IAGREEMENT I TION I INTO IAT FULL i FOREIGN I I SIGNITURE I I OPERATION CAPAC'ITY I EXCHANGE I RENMINBI I ~ ~ ~ ~ ~~I i I I! GUILIN APP. ! 1987.7.23 11987.10.301 1988.1 1989.2 1 1990.3 1 1992.111 1992.11 TYRE FACTORY I I I I - I A024 ACT. I 1987.7.23 11987.10.30 1 1988.1 1 1991.1 1 1991.1 1 1992.12 1 1993.12 i - I II I KESHAN APP. 1 1987.6.16 1 1987.6.18 1 1987.4 1 1988.12 1 1990.1 1 1992.8 1 1992.8 LINEN YARN SP I I I I I i I A005 ACT. 1 1987.6.16 11987.6.18 1 1987.4 1 1988.12 1 1990.5 1 1992.3 1 1992.3 DONGNING APP. 1987.7.18 11987.12.1 1 1987.9 1 1988.2 1 1990.2 I 1992.12 1 1992.12 BUILDING CE i I I I I I I A020 ACT. 1 1987.7.18 11987.12.1 1 1987.9 1 1990.4 1 1991.8 1 1991.121 1991.12 I ~ ~ ~ i i ! iii CHANGCHUN APP. 1 1988.9 11988.4 1 1989.1 1990.1 1 1 1982.121 TESTING I I I i I I A014 ACT. 1 1988.9 11988.4 1 1990.10 1 1991.7 1 1 1990.12 1 I I l I ~ ~ ~ ~ ~ ~~~~~~~~ III CHUZHOU APP. 1 1987.1 11987.7 1 1987.8 1 1988.8 1 1 1 MAIN FACTO OF I I I I I I A021 ACT. 1 1987.7.22 11987.8.8 1 1988.12 1 1989.12 1 1 1 DONGFANG APP. I 1987.8.31 11987.9 i 1988.4 1 1989.9 1 1989.11 1 1993 1 1991 CHEMICAL PL. I I I i I I I A035 ACT. 1 1987.8.31 11987.9 1 1988.4 1 1989.10 1 1989.11 1 1993 1 1990 XIMEN APP. 1 1987.5 11987.1 1 1987.6 1 1988.4 1 1989 1 1993.1 1 1993.1 RUBBER PLANT I I I I I I I A002 ACT. 1 1987.5.3 1 1987.6.15 1 1987.6 i 1989.10 1 1993.12 I 1992.12 1 1992.10 JIANGMEN APP. 1 1987.12 11987.12 i 1988.2 1989.7 1 1991 1993. ; I 1993.12 PAPER MILL I I I i i i I A068 ACT. 1 1987.12 11988.4 1 1988.2 i 1990.1 1 1992 I 1996.12 1 1996.12 I I I I I I ZHU ZHOU APP. I 1987.4 1 1987.4 1 1987.1 1 1987.12 1 1988.3 1 1990.6 1 1989.10 NO.7 RADIO I i I I I I I A017 ACT. 1 1987.7 11987.7 1 1987.7 1 1988.8 1 1988.9 1 1992.12 1 1990.12 i i i i i i i FUZHOU APP. 1 1987.8 1 1987.8 1 1987.12 1989.1 1 1990.1 i 1991.6 1 1991.6 ELECTRIC WIRE I I I I I NON- I I A026 ACT. 1 1987.8.18 1 1987.9 ! 1988.1 1 1989.10 IOPERAT. I 1990.3 1 1992.5 NOTE: APP--APPRAISABLE DATA. ACT.--ACTUALLY HAPPENED DATA. - 72 - TABLE 3.4.3 COMPARISION BETWEEN SUBPROJECTv' rINANCIAL EFFICIENCIES APPRAISED AND ACTUAL PERFORMENCE MONETARY UNIT: 10 THOUSAND YUAN I I . I I NEWLY I NEWLY I NEWLY I RATE (%) IFINANCIAL INVEST- I INCREASED INCREASED INCREAESD OF I I MENT BORROWER I ANNUAL. I ANNUAL I ANNUAL FINANCIAL I NET I PROFIT I PRODUC- I SALES I PROFIT INTERNAL I I RATIO I TIVITY i REVENUE I I INCOME I INCOME I I I I I GUILIN APP. I 270T-SET I 2700 1 448 21.67% I 2996 1 24% TYRE FACTORY I I I I I A024 ACT. I 230T-SET I 2346 1 425 20.76% I 2981 1 23% KESHAN APP. I 3T-SPINDLE I 2394 1 959 1 26.63% 3214 35.5% LINEN YARN SP I I I I I I A005 ACT. I 2.48T-SPINDLE 1982 794 20.14% I 2568 1 24.7% I I I I I I DONGNING APP. I 450T-METER I 1318 i 738 1 42.65% I 3273 1 41% BUILDING CE I I I I I A020 ACT. I 300T-METER 877 0 241 ; 18.90% I 1062 1 9.25% CHANGCHUN APP. I 220SET 570 1 181 27.57% 489 1 31.6% TESTING I I I I I A014 ACT. I 110SET I 450 1 140 1 20.97% I 325 1 40.51% I tI i I CHUZHOU APP. I lOOOT-SET I 5860 1 886 I 33.4% 1 3466 1 45.5% MAIN FACTO OF II I I I A021 ACT. I 360T-SET I 5641 1 76 i 29.8% I 1498 1 5.8% I I ~ ~ . I!II DONGFANG APP. I 3500TON I 2730 1 676 i 24.27% I 2267 1 18.27% CHEMICAL PL. I I I I I I A035 ACT. I 3500TON I 2700 1 616 1 24.27% 1 2267 I 22% XIMEN APP. I 6000SET I 1635 1 268 1 17.8% 1 602 16.2% RUBBER PLANT I I I I A002 ACT. I 6000SET I 2459 1 597 18.621% 1 398 1 .1.86% JIANGMEN APP. I 3000TON I 2769 1 441 -2.77% 1309 i 18.33% PAPER MILL I II I A068 ACT. I 2378TON 3949 1 300 12.05% I 453 1 14% ZHU ZHOU APP. I lOOOT-PIECE 795 1 270 27.2% I 669 1 32% NO.7 RADIO I I I I I A017 ACT. I 800T-PIECE I 422 1 92 19.7% 14 1 22% I IIi FUZHOU APP. I IOOOOTON 450 1 266 31.6% 835 29. 2% ELECTRIC WIRE I I I A026 ACT. I 5000TON I 3969 1 199 27.2% 1287 .L. 20% I I I NOTE: APP--APPRAISABLE DATA. ACT.--ACTUALLY HAPPENED DAlA. T-SET: THOUSANI) SETS. T-PIECE: I-HOUSAND PIECES. T-SPINDLE: THOUSAND SPINDLES. T-METER: THOUSAND METERS. - 73 - TABLE 3.4.4 COMF'ARISION BETWEEN ECONOMIC EFFICIENCIES APPRAISED AND ACCTUAL HAPPED-ECONOMIC DATA MONETARY UNIT: 10 THOUSAND YUAN/USD I NEWLY NEWLY I NEWLY I ECONOMIC IRATE ()I NEWLY INCREASED INCREASED INCREASED I OF I INCREASED BORROWER I ANNUAL I ANNUAL I ANNUAL I NET IECONOMICAL JOB I PROFIT I TAXES I EXCHANGE I INTERNAL POSITION II| I EARNING I VALUE I INCOME I I I--t--I I I GUILIN APP. I 448 499 121 I 6268 I 35.98% I TYRE FACTORY I I I I I I A024 ACT. I 425 I 1860 I 60 I 14987 I 79.85% I i I I I I I KESHAN APP. I 959 I 254 I 645.2 I 2612 I 26.84% I 785 LINEN YARN SP I I I I II A005 ACT. I 794 I 210 372 I 1513 1 17.98% I 785 DONGNING APP. I 738 I 168 I 143 I 3148 I 47.35% I 80 BUILDING CE I I I I I I A020 ACT. I 241 I 56 I 20 I 918 I 17.37% I 80 CHANGCHUN APP. 278 I 57 I 24 I 824 I 41.56% I TESTING I I I I A014 ACT. 150 I 35 I I 617 I 29.07% - -t- I ~ ~~I I I I CHUZHOU APP. I 1796 I 586 I 132 I 1848 I 27.4% I MAIN FACTO OF I I I I I I A021 ACT. I 476 I 298 I 20 I 1398 I 21.6% I i I I I I I DONGFANG APP. I 676 175 I 760 I 678 I 18.67% I CHEMICAL PL. I i I I I I A035 ACT. I 616 I 175 I 937 I 678 I 18.67% I XIMEN APP. I 555 I 259 I 72 I 1588 I 30.4% I 82 RUBBER PLANT I I I I I I A002 ACT. I 856 I 277 I 72 I 712 I 23.78% 99 I I I-I JIANGMEN APP. I 441 I 299 I 519 I 3304 I 40.67% I 70 PAPER MILL I I I I I I A068 ACT. I 300 I 199 I 1 I 2176 I 26% I 93 ZHU ZHOU APP. I 290 I 78 I 300 I 762 I 30% NO.7 RADIO I I I I I A017 ACT. 98 I 43 I 180 I 22 I 24.9% I ! ~ ~ ~ ~~I I I!I FUZHOU APP. I 270 I .20 I 140 I 1094 1 40% I 35 ELECTRIC WIRE I I I I I I A026 ACT. ! 202 1 283 1 458 I 1687 1 21% .. 35 NOTE: APP--APPRAISABLE DATA. ACT. --ACTUALLY HAPPENED DATA. - 74 - TABLE 3.4.5 CODARISION BETWEEN APPRAISED-REPAYMENT OF CAPITAL + INTERESTS AND ACTUAL PERiFO E (ABOUT TEN StBPROJECTS) EXPRESSED BY 10 TOUSD YUAN/UID I I DATE OF I DATE OF I EPAYMENT STATE OF CkAITAL + INTERESRTS I BOIONER CUfEHCY I REPAYENT REPAYMENT I I I i I I NOTE I ISTATE ATARTING I OFF l19B I 11989I19901 1991 1 19921 1993 1 ILED IAPP. I 1990.4 11992 1 01 01 611 1101 801 1 GUILIN I I ACT. I 1988.12 11992.12 1 111 171 121 271 231 1 I a TYFE FACTORY I I I I I I I I I I I A024 I FRB I APP.I 1990.4 1992 1 01 01 961 118 1 1631 I CLEARING I ACT. 1989.4 11993.12 1 1 171 231 321 281 134 1 II I. LESD IAPP.I 1989.1 l1992.8 1 1 1431 121 01 i I KESHAN i I ACT. I 1990.5 11992.3 1 1 01 01 1671 1 LINEN YAFN SP I I I I I I i I I AD005 I iB I APP.I 1990.1 119M.12 1 1 1 2641 1 1 1 I ICT.I 1991.5 119R.3 I I I 1 2641 1 1 IU;D APP. I1 1909.3 1192.12 1 1 2241 281 I I 1 DOMNNING I I CT. I 1990.5 11991.8 1 1 1 1 2461 1 1 BUILDINCI CE I I I I I I i I A020 I MB I APP.I 199. 3 1192. 12 1 1 1 3151 i I I I IACT. I 1990.5 11991.8 I I I 1 3121 1 1 l~~ ~~~ I ILED IAPP.l 1989.12 1199.12 1 1 101 151 30 1 341 1 CHIAN?CHIN I I ACT. I 1990.1 11991.12 1 1 1 181 471 1 I I I I I I - 75 - TABLE 3.4.5 COMPARISION BETWEEN APPRAISED-REPAYMENT OF CAPITAL + INTERESTS AND ACTUAL PERFORMENCE (ABOUT TEN SUBPROJECTS) EXPRESSED BY 10 THOUSAND YUAN/USO I I I DATE OF I DATE OF i EPAYMENT STATE OF CAPITAL + INTERESRTS I BORROWER CURRENCY I REPAYMENT REPAYMENT ---!.-T * , -- i NOTE i 1 STATE ATARTING I OFF i 1988 8 1989 1 1990 1 1991 11992 1 1993 i -_-__-_+- -+- -+ - -I -+ t I I +---t---__ IUSD IAPP. I 1990.4 1 1992 i 01 01 61 1 110 I 80 I GUILIN I I ACT. I 1988.12 11992.12 I 11I 17 I 12 1 27 1 231 1 I NON TYRE FACTORY I I I I I I I I I I I A024 IRMB IAPP. I 1990.4 1 1992 I OI OI 96 1 118 1 1631 CLEARING I I ACT. I 1989.4 1 1993.12 I 1 17 1 23 1 32 1 28 1 134 I i I I + i I I-------+--- IUSO IAPP. I 1989.1 1 1992.8 I I 143 1 121 O 1 KESHAN I IACT. I 1990.5 I 1992.3 I I 01 I 167I I LINEN YARN SP I I I I I I i I I A005 IRHB IAPP. 1 1990.1 1 1990.12 1 I I 284I I I I I ACT. I 1991.5 1 1992.3 I I I I 264I I _ _- I+I--!+-- ---+-- IUSD IAPP. 1989.3 1 1992.12 I 224 1 281 I I DONGNING I I ACT. I 1990.5 1 1991.8 I I I I 246 1 I I BUILDING CEI I I I I I I I I A020 I RNB I APP. I 1989.3 1 1992.12 I I I 315I I I I I ACT. I 1990.5 1 1991.8 I I I I 312I I 1USD IAPP. I 1989.12 1 1992.12 I I 10 1 15 1 30 1 34 1 CHANGCHUN I I ACT. I 1990.1 I 1991.12 I I I 18 1 47 1 I I TESTING I I I I I I I I I I I A014 IRNB IAPP. I I I I I I I I IIACT.I I I I I I I I I USD IAPP. I 1988.8 1 1993.8 I I 52 1 57 1 31 1 90 1 I CHUZHOU I I ACT. I 1989 1 1991.12 1 0.28 1 52 1 I 31 1 81 I NON MAIN FACTO OF I I I I I 1 I i A021 I RNB I APP. I 1991 1 1993.8 1 I I 50 1 50 1 I CLEARING I ACT. I 1990 1 1993.12 1 0.18 1 I 50 1 I I I - -- I -+--1 1~~~~ 1 1 + I -I +-_ I USD I APP. I 1987.9 1 1993 I I I 100 1 102 1 1061 80 I OONGFANG I I ACT. I 1990 1 1993 I I I 1001 761 801 132 I NON CHEMICAL PL.I I I I I I I I I I I A035 IRHB I APP. I 1988 1 1990 I I 102 1 43 1 I I I CLEARING I IIACT. I 1989 1 1990 I I 102 1 43I I I …_ _+_+-----H1---+-------------------- - 76 - IUSD I APP. ! 1989 11992 17 I 72 1 72 I 44 ! 38 ! XIHEN I I ACT. I 1989 11992 I 15 ! 98 1 53 I 40 ! 27I I RUBBER PLANT I I I I I I I I A002 IRNB IAPP. ! 1989 11992 I 30 I 41 41 A 144 1 168 I I I I ACT. I 1988 11992 i 76 I 61 I 31 ! 123 1 172 1 IUSD IAPP. I 1989.7 11993.12 I I 331 1131 1131 1131 139 I JIANGNEN I IACT. I 1989.7 11996.12 I I 25 1 35 1 52 ! 52 ! 44 I NON PAPER HILL I I I I I I I I I I I A068 I RNB I APP. ! 1989.7 11993.12 I I 59! 119 ! 119 ! 119 ! 66 I CLEARING I IIACT. I 1989.7 11996.12 I 91 I 93 I 107 I 36 I 10 I - -e~~~~~~~ I +- - ---- --+- IUSD IAPP. j 1989 11990 I 24 ! 49 ! I I I ZHU ZHOU I IACT. I 198B 11993.7 I i 24 ! 39! I 10 I NO.7 RADIO I I I I I I I I I I A017 IRHB IAPP. ! 1988 11989 I 30 ! 15! I I I I I ACT. I 1988 11990 I 30 ! 1 I 14! I I I -,- ,t - I I i :I I - ---- I I I I I I I 1 I. 1 IUSD I APP. ! 1989.9 11992.2 I I 52 ! 76 8 24! I I FUZHOU I IACT. 1988 11990 I I 8 135 21I I I ELECTRIC WIRE I I I I I I I I I I A026 IRNB IAPP. ! 1989.9 11992.2 I I I I I I I IIACT. I 1988 11990 I 131 151 421 81 238!1 NOTE: APP--APPRAISABLE DATA. ACT.--ACTUALLY HAPPENED DATA. - 77 - TABLE 3.5 REPAYMENT STATE OF SUBPROJECTS UNDER WORLD BANK LOAN/CREDIT IV AS OF DATE: JUNE 30 1993 MONETARY UNIT: 10 THOUSAND USD/YUAN NUMiBERF FOREIGN RENMINBI OF EXCHANGE OF SLBPROJECTS OF CAPITAL CAPITAL+ +INTEREST INTEREST ACCUMULATIVE DLE RECEIVABLE 1 151 19,038 16,237 ACCUMOULATIVE REPAYMENT OF LOAN 2 137 16,563 14,126 REPAYMENT ON TIME 3 116 14,409 12,289 LOAN OVERDUE 4 35 2,475 2.111 RATE OF 2/1 91% 87% 87% 3/1 77% 75% 77% 4/1 23% 13% 13% TABLE 3.6. ARREAR STATE BY 10 BIGER SLBPROJECTS LNDER WORLD BANK LOAN / CREDIT IV ( UPTO DATE: JUNE 30 1993 ) EXPRESSED BY DOLLAR ARREARS OF ARREARS OF SUBPROJECT NAME NO. FOREIGN EXCHANGE RENMINBI CAP ITAL+ INTEREST CAP I TAL+INTEREST NO.1 FILM FACTORY A043 162 HUBEI GEAR PLANT A006 44 154 SHANGHAI COPPER FACT A025 470 257 GUILIN TYRE FACTORY A024 133 HAICHENG SILD MILL A062 381 68 GUANGZHOU TEXT ILE CL A058 39 360 XIANG TAN CABLE WORK A009 168 125 LIAO YLN AUTOMOTIVE A007 149 WUXI NO.2 ELEC FAN 8001 3 79 DALIAN RECORDING EOU A037 100 148 TOTAL 1516 1324 - 78 - TABLE 3.7 A SUIMMARY ON CIB TRAINING UNDER WORLD BANK LOAN / CREDIT IV (UPTO DATE: JUNE 30 1993 ) EXPRESSED BY DOLLAR YEAR PERSONNEL BELOW 3 MONTHS OVER 3 MONTHS D I SBURSEMENTS 1989 23 19 4 81.988.69 1990 21 21 106,653.95 1991 19 14 5 139.457.14 1992 30 28 2 281X694.89 1993 38 38 192,183.62 TOTAL 131 120 11 801.978.29 - 79 - TABLE 3.7.1 A SUMMANY OF TRAINING COURSE IMPLEMATTION UNDER THE TECHNICAL ASSISTAME OF LOAN CREDIT IV UPTO DATE: JUNE 30 1993 EXPRESSED BY DOLLAR TRAINING COURSE TIME PERIOD PLACE TRAINEE EXPENSE SECURITIES MARKET 1989.3.7 -1989.3.14 NIKKO OF JAJAN 1 331.65 FINANCING MARKET 1989.2.22--1989.3.8 YAHAICHI SECURITIES 1 1325.54 CO. LTD OF JAPAN MICRO COMPUTER TRAINING 1989.3.3 --1989.5.27 AUSTRALIA 6 58359.25 MICRO COMPUTER TRAINING 1989.4.15-1989.6.11 AUSTRALIA, HONG KONG 2 6936.15 INTERNATIONAL FINANCE 1989.5.6 --1989.5.13 NIPON CREDIT BANK 1 1224.68 BANK MANAGEMENT 1989.4.15--1990.4.11 NIPON CREDIT BANK 1 499.62 INTERNATIONAL CLEARING 1989.9.10-1989.12.17 CREDIT SWISS 2 6974.89 DEVELOPING FINANCE 1989.10.2 -1989.10.23 JAPAN DEVELOPMENT BANK 1 2986.49 BUSINESS FINANCE 1989.6.19 -1989.6.30 INDIAN DEVELOPMENT BANK 1 1118.59 INTERNATIONAL CLEARING 1989.9.30--1990.9.30 BRITISH MANCHARSTER 3 35709.5 UNIVERSITY MICRO COMPUTER TRAIING 1989.11.6--1989.11.15 HONG KONG UN,STY CO. 1 673.83 BOND MARKET 1989.10.18-1989.11.1 YAMAICHI SECURITIES CO.LTD 1 1151.11 BANCING OPERATION 1990.3.19- 1990.3.22 INDIAN DEVELOPMENT BANK 1 375. INFORMATION NETWORK 1990.4.25-1990.4.27 TELERITELERATE HONGKONG 1 544.24 SECURITIES MARKET 1990.5.13-1990.5.20 NIPON CREDIT BANK 1 1126.71 PERSONNEL TRAINING 1990.6.16--1990.7.9 THE WORLD BANK 1 3939.99 SENIOR SIEMINAN 1990.7.29-1990.8.15 WB. BANK OF NOVA SCOTIA 14 102245.05 INTERNATIONAL FINANCE 1990.10.15-1990.11.23 BARCLAYS BANK PLC. 1 7442.69 COMMERCIAL BANK 1990.11.4-1990.11.17 GIROCREDIT BANK 1 3218.99 DEVELLPING FINANCE 1990.11.1 -1990.11.22 JAPAN DEVELOPMENT BANK 1 2130.96 SECURITIES MARKET 1991.2.27-1991.3.13 YAHAICHI SECURITIES CO.LTD 1 1347. INTERNATIONAL FINANCE 1991.3.4 --1991.3.15 SINGAPORE DEVELOPMENT BANK 1 332. SECURITIES OPERATION 1991.4.7 -1991.4.14 NIPON CREDIT BANK 1 1,s0.73 INTERNATIONAL CLEARING 1991.4.15-1991.4.27 HONG KONG CITY BANK 2 1532.15 CAPITAL MARKET 1991.5.13-1991.5.18 NIPON CREDIT BANK 1 1170.60 PERSONNEL TRAINING 1991.6.17- 1991.7.5 WORLD BANK 1 3479.12 PROJECT SUPORVISION 1991.10.30--1991.11.30 BBL. 1 3946.82 FOREIGN EXCHANG DEALING 1991.10.2--1991.10.31 NEW JAPAN SECURITIES CO.LD.1 2111.19 DEVELOPING FINANCE 1991.11.7--1991.11.28 JAPAN DEVELOPMENT BANK 1 1307.54 SECURITIES HARKET 1991.8.28--1991.9.12 YAMAICHI SECURITIES CO.LTD 1 1219.75 INTERNATIONAL FINANCE 1991.12.2--1991.12.20 HONG KONG AMERICA BANK 3 4346.28 BAND OPERATION 1991.1.9 --1992.1.10 BRITISH MANCHARSTER 5 3967.47 UNIVERSITY BANKING OPERATION 1992.3.2 -1992.3.31 DLPT. BANK SINGAPORE PDCP 7 20844.87 PERSONNEL MANGEMENT 1992.4.20-1992.5.1 PDCP. 2 8553.05 PROJECT MANGEMENT 1992.4.29-1992.6.3 PDCP. 4 22020.26 FINANCIAL SEMINAR 1992.5.25-1992.6.4 JAPAN DEVELOPMENT BANK 1 1323.54 INTERNATIONAL FINANCE 1992.11.9--1992.11.27 JAPAN DEVELOPMENT BANK 1 7466.01 SECURITIES OPERATION 1992.7. -1992.12 NIKKO. 1 32085.20 BANK MANGEMENT 1992.8.5 -1992.11.29 COMMERZBANK AG 1 19497.15 DOUBT PROJECT 1992.9.2 -1992.9.23 PDCP. 2 9004.0O ASSISTANCE TO PROJECR 1992.11.25-1992.12.9 PDCP. 7 25080.48 SLIPED -80 - ADMINISTRATION TRAINING 1992.11.25--1992.12.5 PDCP. 2 7117.84 FORERGN EXCHANGE DEALING 1992.12.2--1992.12.30 SINGAPORE 1 4105.58 FORERGN EXCHANGE DEALING 1993.2.1 -1993.2.26 SWISS PEOPLE'S BANK 1 12073.72 PROJECT APPRAISAL 1993.4.19--1993.5.6 INDUSTRY FINANCE CO.THAILAND 7 27937.91 PROJECT APPRAISAL 1993.5.17--1993.6.3 INDUSTRY FINANCE CO.THAILAND 8 30245.93 SECURITIES HARKET 1993.4.25--1993.8.27 YAHAICHI SECURITIES CO.LTD 1 978.51 FINANCE SEHINAR 1993.5.24--1993.5.29 NIPON CREDIT BANK 1 3009.61 BOND MARKET 1993.6.7 --1993.7.2 TOKYO BANK JAPAN 1 6797.96 INTERNATION CLERAING 1993.6.7 --1993.7.3 NATIONAL BANK OF PHILADEPHIA 2 13516.71 ADMINISTRATION TRAINING 1993.6.21--1993.7.9 WORLD BANK 1 2587.93 INDUSTRY FINANCE 1993.6.27--1993.7.17 l*Ht)IAlt 1 1232.59 BANK MANAGEMENT 1993.7.3 --1993.9.26 US OKLAHOMA STATE UNIVERSITY 14 240179.43 TOTAL 131 801978.29 - 81 - TABLE 4.1 CIB ORGANIZATION STRUCTURE i- OFFICE F- PLANNIG DEPT L-.- FINANCE AND ACCOUNTING DEPT L- INTERANTIONAL FINANCING DEPT L-- NO. 1 PROJECT INWESTIGATION DEPT CIB HEAD OFFICE ,- - I I- NO. 2 PROJECT INVESTIGATION DEPT I L- CREDIT MANAGEMENT DEPT I L- INTRANTIONAL CLEAING DEPT I L- INVESTIGATION AND RESEACH DEPT I I I F- CCtIPU I TER CENTER I L- PERAONNEL AND EDUCATION DEPT IL A1DMINISTRATION DEPT | L PROOF AND SUPERVISION DEPT I ,- NANHING TRAINING CENTER BRANCHES AND SUB-RUANCHES COCATED AT PROVINCES, CITIES. AUTOUOMOUS RIGENS. CITIES DIRECT UNDER THE STATE COUNCIL, AND CITIES WITH ITS OWN PLAN WITHIN STATE PLAN. I A I I I BRANCHE AGENT - 82 - TABLE 4.2 CIB PERSONNEL REMOVAL STATE AS OF JUNE 30. 1993 I I ENTRANTS I EXODUS I CREW AT THE END OF THE YEARI A A 1 I 4- I- - i I I REMOVABLE REASON I YRARI TOTAL I PROFESS- I TOTAL I PROFESS- I TOTAL I PROFESS- I RATE IX I IONAL I I IONAL I I IONAL I PROFESS-l ANALYSISY I ENTRANTS I STAFF EXODUS I STAFF I I STAFF I IONAL I I ANONGI AMONG CREW IAMONG STAFF I I I TOTAL I PERSSONS I TOTAL I I TOTAL I IN TOTAL I I I ENTRANTSI I ENTRANTSI I ENTRANTS I CREW I 19861 113 I 111 I 34 I 14 I 655 I 563 I 86 I INCREASING AND ADJUSTING ON I I I I I I I I I THE REQUIREMENTS OF I OPERATIONAL DEVELOPHET 1=~~~ 11 1 _ I 19871 378 I 328 I 58 1 48 I 975 I 843 I 86 AS SAME AS ABOVE 19881 261 1246 121 120 11314 11130 186 I * 19891 247 i213 122 122 11539 11323 186 I I 1990 165 159 128 126 11576 11356 186 I * 19911 104 1102 138 137 11642 11421 186 I * 119921 210 I 149 I 21 I 21 11831 11579 I 86 I * 199 337 287 18 15 2150 18 8- I- 1 19931 337 1 287 1 18 1 15 1 2150 1 1851 1 86 1 * L_~~~~~~ ~~~~ .L ______ I _____ I L......... I - 83 - TABLE 4.3. CIB PERSONNEL COMPLSITION (AS OF JUNE 30 1993) I I I PROFE- I ECONONIC I FINANCIAL I ENGINEEING I OTHERS I I YEAR I CREW I SSIONAL I-T-,-I I I I STAFF I STAFF I OF I OF I STAFF I OF I OF I STAFF I OF IXOF I STAFF I OF IXOF I I I I AMONG I I IPROFE- I I IPROFE-I I IPROFE- I I IPROFE- I I I I I NUMBER I CREW I SSIONAL NUMBER I CREW I SSIONAL NUMBER I CREW I SSIONAL NUMBER I CREW I SSIONAL I I I I I I STAFFI I I STAFFI I I STAFFI I I STAFFI 1 19861 655 I 563 I 325 I 49.6 I 57.7 I 84 I 12.8 I 14.9 I 84 I 12.8 I 14.9 I 70 I 10.7 I 12.4 1 I19871 975I 843 520 53.31 61.71 141 14.5 11.7 1122 112.5 14.5 60I 6.21 7.1I 119881 1314 I 1130 I 647 I 49.2 I 57.3 I 228 I 17.2 I 20.0 I 179 1 13.6 I 15.8 I 78 I 5.9 I B.9 I - +I- I - I - I I - I - I I - I -I -I - + - I 11989 1539 I 1323 I 738 I 48.0 I 55.8 I 300 I 19.5 I 22.7 I 191 I 12.4 I 14.4 I 94 I 6.1 I 7.1 I I-~ I 1 - - +-I-I I - + - I-I -I 1- i I1990 '1578 1356 762 18.3I 56.2 299 19.0 22.1 198 112.6 14.6I 97 6.2 17.2I 119911 1642 I 1421 1 790 I 48.1 I 55.8 I 327 1 19.9 I 23.0 I 201 I 12.2 1 14.1 I 103 I 6.2 I 7.3 I 19921 1837 I 1579 1 888 I 47.2 I 54.8 I 384 1 20.9 I 24.3 I 223 I 12.1 I 14.1 I 146 I 5.7 I 6.7 I I1993 I2150 1852 I1131 I52.6 11 1410 119 I22.1 210 9.7 11.3 101 4.7 5.4I I ON AVERACE I 149.51 I 117.9I I 112.21 I 16.51 I - 84 - TABLE 5.1. CIB'S CAPITAL-BEDT RATIOS EXPRESSED BY 100 MILLION YUAN r I , , I I IITEM I AMOUNT I RATE I AMOUNT I RATE I AMOUNT I RATE I I OF 1988 1 1 OF 1989 1 1 OF 1990 I ~ ~ ~ ~~~I. I. I I'* + I. I CAPITALS 15.1/67.- 122.5% 117.1/100.1 1 17.1% 119.3/136.2 114.29 1 I/ASSETS I I I I I I I , ~ ~ ~ ~~~I' , , + + . I I LOANS 144.7/67.- 166.796 176.6/100.1 1 76.5% |91.2/136.2 166.99 /ASSETS I LONG TERM I I I I ILIABILITY 1 31.2/15.1 1 2.07 1 49.2/17.1 1 2.87 171.-/19.3 | 3.68 1 I/CAPITALS | g ~ ~ ~~ ~~ F + + + ITOTAL I LIABILITY 151.9/15.11 3.44 182.9/17.1 I 4.85 116.9/19.3 1 6.06 | I /CAPITALS I PROFITS 1.56/67.- I 2.39 11.60/100.1 11.599 11.19/136.2 10.871 /ASSETS PROFITS 1.56/15.1 110.3961 1.60/17.1 19.3591 1.19/19.3 16.1696| /CAPITALS I. , , ,_ _ , , , TABLE 5.2 THE DEVELOPMENT STATE OF CIB'S INTERNATIONAL SETTLEMENT AS OF DATE: JUNE 30 1993 UNIT: 10 THOUSAND USD I ITEMS 1989 1990 1991 1992 1993.5 1.SUM OF SETTLEMENT 40,000 40,000 48.000 104,000 70,000 I I 1 2.IMPORTATION CLEARIN` 37,000 35,000 37,000 68,000 55,000 I LETTER OF CREDIT 30,000 22,000 20.000 40,000 42,000 I IMPORT RECEIPT AS AGENT 5.000 11,000 1.000 2,000 1.000 I TRANSFORED REMITTANCE 2,000 2.000 16,000 26.000 12,000 1 3.EXPORTATION CLEARING 3,000 5.000 6.000 10.000 6,000 I NOTICE OF L/C. 1,800 2,000 1.000 3,000 2,000 I EXPORT NEGOTIATED-PAYMENT 1,200 3,000 5,000 7,000 4,000 I 1 4.NON TRADE SETLLEMENT 5.000 26.000 9,000 1 I.l - 85 - TABLE 5.3 CIB'S FINANCIAL PERFOREMENCE AND OPERATIVE ACHIEVEMENTS IN 5 YEARS FROM 1988 TO 1992 UNIT: THOUSAND YUAN T ] t s~F - -T -- - --- I ITEMS I 88 1 89 i 90 I 91 1 92 1 - - - - - - - - - - - - - - - - - - - - - _---- _ _ I LOAN & INVESTMENT I 4,466,812 7,657,062 19,124,276 111,506,152 115,923,188 I I TOTAL ASSETS I 6.704.364 I10,009,166113,624,0691 17,433,510124,094.503 1 I DEPOSITS I 854,0195 1 1,358,626 11,866,411 12,982,854 1 6,134,724 I I BORROVING 3.116,5481 4,916,863 17,101.527 18.475,647 19,559,236 1 I NET VORTH I 1,512,789 11,713.683 11,930,267 11,954,813 12.059.748 1 I INCONE BEFORE TAX I 15,630 1160,045 1118,780 1116,523 1125.121 1 __ __ _ _ 1___ ' L_ LL_4{ _ _ - 86 - TABLE 5.4. M iHiall CHINA INVESTMENT BANK INCOME STATEMENT T: f h UNIT: IN THOUSNO YUAN ,~~ ~ ~~~~~ ~ ~ ~ ~ ~ ~~~~~~ , , _ I, I 11 U ((IT EM) I I a 7 1 9 8 I 1 1 0 1 1 9 I 1 9 9 2 1 ~ ~ ~ ~ -- 4 I F I I I I NCOME t A INTEREST INCOME I 220,797 1 381,693 1 623.668 I 839,879 I 854,840 11,037.332 1 I COMMISSION AND OTHER INCOME I 4,249 1 15.232 1 6,658 1 15,848 I 27,284 I 57,708 I -R~tAI I I I I II T O T A L I N C O M e 225.046I 396.925 630,326I 855.727 882,124I 1.095,040 I 1-- ~ ~ ~ ~ ~ ~ ~ ~ ~~I I I I I I IEXPENSE I I 1I I 1- 1 - 1I- 4 1- I COMMISSION AND OTHER EXPENSES I 6,345 1 22,261 I 33,578 I 109,669 1 42,381I 139,624 I I +##kXtt I I J I I I I I INTEREST EXPENSE I 123,060I 216,790 I 417,473 I 605,843 I 696,879 785,910 1 NUll 1s I 1 I 1 1 I I __ -_-- _I I 4 4 1 I ADNINISTRATIVE EXPENSE I 1,275 1 1,244 I 19,230 21,435 1 26,341I 44,385 1 TOT A L E X P E N S E I 130.8801 240,295 1 470,2811 736,9471 765,601 1 969,919 I I _: _I _ -- I I I I. I I I P R O F I T B E F O R E I 94,366I 15,6301 160,045I 118,780 I116,523 I 125,121 I ITAXRII I N COM E TAX I 0 | 95,5441 97,6271 72,456 1 71,079 I 76,324 1 I I96 -4 1-2 1 1 IN ET I N C OME I 94,3686I 61,0861 62,418 1 46,324 I 45,444 I 48,197 #~ I I - 87 - TABLE 5.5. CHINA INVESTMENT BANK BALANCE SHEET aft: fx UNIT: IN THOUSNO YUAN r r , , , I i I I 8 7 1 9 §8 8 1 981 I Is O I I i I I9 2 (ITEN) I I I I I . IASSETSIIIIIII A S. + E T I CASH AND DUE FROM OTHER BANKS I 748.687 1 1,135,524 1 935,911 1,801,963 I 1,929,466 1 2,425.330 1 INTERBANK LENDING I I j 649,871 I 1,174,511 I 1,581,067 1 2.133.378 1 ACCOUNTS RECEIVABLE I 38,370 1 65,802 1 61.557 1 91,687 1 43.842 1 206.071 ,L I I F + I I CUSTOMER'S LIABILITIES FOR I I 368,342 1 582,315 1 1,010.742 1 920.861 1 ACCEPTANCE AND GUARATEE I I I I I I I I I I - 1 +I + I LOANS AND INVESTMENT I 2.804.623 1 4,466.812 1 7,657,062 I 9,124,276 1 11.506,152 1 15,923.188 8 FIXED ASSETS (NET) I 3,669 I 7,319 1 10,698 1 15,496 I 27,967 1 34.266 OTHER ASSETS I 234.786 1 1.028,907 1 325,725 8 633.821 1 1,334,274 I 2.451,409 I I = 4 1 1 F 1 1 1 TOTAL AS S ETS I 3,830,135 1 6.704.364 1 10.009.166 1 13,624,069 I 17,433,510 I 24,094.503 1 LIABI TL I T I ES I I I F- + I- -I f I I DEPOSITS I 66.606 I 854.010 1 1,358,626 I 1.B66.411 I 2.982.B54 1 6.134,724 1 INTERBANK BORROWING I I I 531,591 1 901,055 1 1.152.495 1 2,252,650 1 F-- + I* I + I I I I BORROWING I 1,868.977 1 3,116,548 I 4.916,863 1 7.101.527 I 8.475.647 I 9,559.236 1 F + I - I - ACCOUNTS RECEIVABLE I 49,170 1 39,277 1 80.608 I 183.376 1 154.451 1 281.042 1 I OTHER LIABILITIES I 484,581 I 1,181,740 1 1,039.453 1 1,059,118 1 1.702.508 1 2.908.242 I F-- ~ ~ +- 1- 1 1 - ACCEPTANCE ON BEHALF OF CUSTOMERS I I I 368,342 1 582,315 1 1,010,742 1 920.861 1 TOTAL L I AB I L I T I ES I 2,469,334 1 5,191,575 1 8.295,483 1 11,693,802 1 15,478,697 1 22.034.755 1 ,L- I F- + F- I I I NET WORTH I 1,360,801 I 1,512,789 1 1,713.683 1 1,930,267 1 1,954,813 1 2,059.748 I ,- 1- 1 i- I - - I TOTAL L IAB I L IT I ES &8 3,830.135 1 6,704,364 1 10,009.166 1 13,624,069 1 17.433,510 1 24,094.503 1 NIET WORTH L I f______ £ _ ___ L L I IrMAGING Re-Port N:O: 147 5.5 Type: PCR'