1. Report Industry Investment Rating There is no information provided in the report regarding the industry investment rating. 2. Core Viewpoints of the Report - In recent years, the risks of small and medium - sized banks have gradually increased due to economic transformation, regional development differences, and bank risk events. The central government has emphasized the timely disposal of risks in small and medium - sized financial institutions [1][10]. - The business share and profitability of small and medium - sized banks have declined. Their asset quality has also deteriorated during the rapid expansion period, and they are now gradually digesting historical legacy issues [2][33]. - The operations of urban and rural commercial banks across the country have shown differentiation. Underdeveloped regions generally have higher asset - to - total ratios, and there are differences in asset quality, profitability, and business growth rates among different regions [3]. - The core path for resolving the risks of small and medium - sized banks is the reform of the rural credit system, and the reform process of provincial rural credit unions has accelerated significantly in recent years [4]. - In the disposal of major risk events of small and medium - sized banks, a large amount of public funds are often consumed, and the restoration of the subject's qualifications and regional credit usually takes a long time [5]. 3. Summary According to Relevant Catalogs 3.1 Small and Medium - Sized Bank Risk Resolution Background - **Macro - background**: Since 2010, with China's economic transformation, the profitability of the real economy has declined, and the default rate of small and medium - sized enterprises has increased, leading to a rise in the non - performing loan ratio of small and medium - sized banks from 2010 - 2020. After 2020, macro - factors have put pressure on the asset quality and operations of small and medium - sized banks. Regional economic development imbalances and the limited risk - control capabilities of small and medium - sized banks, along with events such as the Baoshang Bank incident in 2019, have attracted more attention to the risk resolution of small and medium - sized banks [1][10]. - **High concentration of rural commercial bank credit risks**: In 2023, rural financial institutions accounted for 95% of the 3936 banking financial institutions rated by the central bank, and high - risk rural financial institutions accounted for 96% of the total high - risk bank institutions [15]. - **Non - redemption of Tier 2 and perpetual bonds concentrated in urban and rural commercial banks**: All cases of non - redemption of Tier 2 and perpetual bonds occurred in urban and rural commercial banks, especially in small and medium - sized banks in Liaoning, Tianjin, Shandong and other places. Since 2023, the non - redemption ratio has continued to decline, which may indicate an improvement in the capital adequacy of small and medium - sized banks in recent years [17]. 3.2 Operating Conditions of Urban and Rural Commercial Banks - **Overview of the fundamentals of urban and rural commercial banks**: Before 2016, small and medium - sized banks rapidly expanded their scale, but since 2019, their market share has continued to decline. During the rapid expansion period, their asset quality deteriorated, and since 2020, they have gradually digested historical legacy issues. Their profitability has also decreased significantly, and there are differences in capital adequacy among different types of banks [28][33][35]. - **Operating conditions of urban and rural commercial banks in different regions**: The market status of urban and rural commercial banks shows a two - tiered differentiation. Underdeveloped regions and Jiangsu, Zhejiang, and Anhui have a high asset - to - total ratio, while developed regions have a low ratio. There are also differences in asset quality, profitability, and business growth rates among different regions. For example, in 2024, the asset quality of urban and rural commercial banks in the three northeastern provinces and the northwest was generally poor, while that in Jiangsu, Zhejiang, Anhui, Beijing, and Shanghai was relatively good [3][38][41]. 3.3 Progress and Plans for the Reform of Provincial Rural Credit Unions in Different Regions - **The reform of the rural credit system is the core path for resolving the risks of small and medium - sized banks**: The reform of provincial rural credit unions is an important part of risk resolution for small and medium - sized banks. Currently, there are two main reform models: the joint - bank model and the unified - legal - person model. The reform process has accelerated significantly in recent years [4][59][62]. - **Cases of rural credit system reform**: Examples include the Zhejiang Rural Commercial United Bank (joint - bank model), Liaoning Rural Commercial Bank (unified - legal - person model), and Henan Rural Commercial Bank (a combination of joint - bank and unified - legal - person models) [64][66]. 3.4 Cases of Risk Disposal of Small and Medium - Sized Banks - **Sources of funds for risk disposal of small and medium - sized banks**: The order of fund use in the financial risk disposal process is the shareholders and actual controllers of the disposed financial institution, market - based funds, the deposit insurance fund, local public resources, and the financial stability protection fund. In recent years, the deposit insurance fund has been widely used in major risk resolution of small and medium - sized banks, and as of July 2025, a total of 530 billion yuan of special bonds for risk resolution of small and medium - sized banks have been issued [69][70][72]. - **Cases of risk disposal of small and medium - sized banks**: After the risk exposure of Baoshang Bank in 2019, risks of small and medium - sized banks in various places broke out concentratedly. Taking Liaoning Rural Commercial Bank and Jinzhou Bank as examples, the causes of risks, disposal plans, and related risks are analyzed [76].

Group 1 - The Hong Kong Stock Exchange reported that on August 13, the shareholders of China Zhongyuan Bank (01216) transferred shares from Shanghai Pudong Development Bank to CITIC Securities Brokerage Hong Kong, with a transfer market value of HKD 162 million, accounting for 6.68% of the total shares [1] - China Zhongyuan Bank announced that it will distribute a final dividend of RMB 0.12 per 10 shares on August 5, 2025 [1]

Group 1 - The Hong Kong Stock Exchange reported that on August 13, the shares of China Zhongyuan Bank (01216) were transferred from Shanghai Pudong Development Bank to CITIC Securities Brokerage Hong Kong, with a transfer market value of HKD 162 million, accounting for 6.68% [1] - China Zhongyuan Bank announced that it will distribute a final dividend of RMB 0.12 per 10 shares on August 5, 2025 [1]

格隆汇8月13日丨中原银行(01216.HK)宣布，董事会会议将于2025年8月28日（星期四）举行，藉以（其 中包括）审议及批准本行及其附属公司截至2025年6月30日止的六个月期间的中期业绩及其发布。 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 中原銀行股份有限公司 * ZHONGYUAN BANK CO., LTD. * （於中華人民共和國註冊成立的股份有限公司） （股份代號：1216） 董事會會議通知 中原銀行股份有限公司*（「本行」）董事（「董事」）會（「董事會」）謹此宣佈，董事會 會議將於2025年8月28日（星期四）舉行，藉以（其中包括）審議及批准本行及其附 屬公司截至2025年6月30日止的六個月期間的中期業績及其發佈。 代表董事會 中原銀行股份有限公司* 郭浩 董事長 中華人民共和國，鄭州 2025年8月13日 於本公告日期，董事會包括執行董事郭浩先生；非執行董事馮若凡先生及張姝女 士；獨立非執行董事徐義國先生、趙紫劍女士、王茂斌先生、潘新民先生及高平 陽先生。 * 中原銀行股份有限公司並非一家根據銀行業條例（香港法例第155章）之認可機構，並不受 限於香港金融管理局的監督，亦不獲授權在香港經營銀行及╱或接受存款業務。 ...

Core Viewpoint - The recent approval for Zhongyuan Bank to absorb and merge with three other banks marks a significant development in the banking sector, highlighting the trend of consolidation among small and medium-sized banks in China [1][2]. Group 1: Merger and Acquisition Details - Zhongyuan Bank has received approval from the China Banking and Insurance Regulatory Commission to absorb and merge with Luoyang Bank, Pingdingshan Bank, and Jiaozuo Zhonglv Bank, taking on all their assets, liabilities, businesses, institutions, and employees [1]. - Post-merger, Zhongyuan Bank's total assets will exceed 1.2 trillion yuan, elevating its ranking among city commercial banks from 11th to 7th [1]. Group 2: Industry Trends - The pace of mergers and acquisitions among small and medium-sized banks has accelerated, with several banks like Sichuan Bank, Shanxi Bank, and Liaoshen Bank undergoing restructuring since 2020 [1]. - Regulatory encouragement has been a driving force behind these mergers, with the China Banking and Insurance Regulatory Commission advocating for quality banks and compliant institutions to participate in the consolidation of smaller banks [1]. Group 3: Benefits of Mergers - Mergers are expected to enhance banks' strength and risk resilience, as larger asset sizes correlate with better risk management capabilities [2]. - The consolidation allows banks to expand their business coverage and strengthen their core operations, particularly for profitable city and rural commercial banks seeking to invest in weaker regional banks [2]. Group 4: Performance Metrics - Zhongyuan Bank reported a revenue of 19.283 billion yuan in 2021, with a year-on-year growth of 0.8%, and a net profit of 3.565 billion yuan, growing by 8% [2]. - The bank's non-performing loan ratio stood at 2.18%, a slight decrease from the beginning of 2021, with new loan defaults maintained below 1% [2]. Group 5: Considerations for Future Mergers - Evaluating a bank's quality and risk resilience should consider not only asset size but also profitability and asset quality [3]. - Local governments should approach mergers cautiously, ensuring thorough understanding of internal equity structures and compliance to prevent potential risks during the consolidation process [3].

Core Viewpoint - The recent regulatory measures in Henan province aim to standardize auto consumer finance practices, capping the actual customer interest rate at no more than double the current one-year Loan Prime Rate (LPR), effectively addressing high commission issues and shifting the market focus from price wars to value competition [1][2][4]. Group 1: Regulatory Changes - Several banks in Henan, including Everbright Bank and Agricultural Commercial Bank of Henan, have announced new regulations to control financing costs for car buyers, setting the annualized interest rate cap at 6% and credit card installment fees at a maximum of 16% [2]. - The new regulations also prohibit auto dealers from coercing customers into high-commission financial products and aim to stabilize the auto consumer finance market in Henan [2][3]. Group 2: Market Dynamics - The previous high-interest, high-rebate model involved banks offering substantial commissions to auto dealers to boost market share, which led to unsustainable practices and risks for banks due to early loan repayments [3][4]. - The shift away from high-interest models is driven by narrowing interest margins for banks, prompting a need for strategic adjustments towards value-based competition, focusing on product design and service enhancement [4][5]. Group 3: Strategic Adjustments - Banks are beginning to adapt their auto finance strategies, with institutions like Ping An Bank enhancing their product offerings to meet comprehensive auto finance needs, including a focus on new energy vehicle loans and improved online loan processes [5].

FF301 第 1 頁 共 10 頁 v 1.1.1 | 1. 股份分類 | 普通股 | 股份類別 | H | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01216 | 說明 | H股 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 6,945,000,000 | RMB | | | 1 RMB | | 6,945,000,000 | | 增加 / 減少 (-) | | | 0 | | | | RMB | | 0 | | 本月底結存 | | | 6,945,000,000 | RMB | | | 1 RMB | | 6,945,000,000 | | 2. 股份分類 | 普通股 | 股份類別 | 其他類別 (請註明) | | 於香港聯交所上市 (註1) | | 否 | | | --- | --- | --- | --- | --- | --- | -- ...

Core Viewpoint - Zhongyuan Bank has been rated "AAA" for its second-tier capital bonds, indicating a strong financial position and competitive advantage within Henan Province [1] Group 1: Market Position and Competitive Advantage - Zhongyuan Bank maintains a high market position and strong competitive advantage as a provincial bank in Henan [1] - The bank's strategic position as a provincial financial institution is solid [1] Group 2: Management and Development - The bank has established a comprehensive corporate governance structure and has optimized its internal control and risk management systems [1] Group 3: Business Operations - Zhongyuan Bank leverages its geographical advantages for business expansion, with both deposit and loan business scales showing growth [1] - However, overall business growth is somewhat slow due to increasing competition from peers [1] Group 4: Financial Performance - The bank's non-performing loan ratio remains stable, and its provision coverage ratio meets regulatory requirements [1] - There is a presence of risk assets within investment assets, indicating a need for increased impairment provisioning [1] - Deposit stability has improved, and liquidity management pressure is manageable [1] - Net interest margin has narrowed, and the need for impairment provisioning has put pressure on profitability, with core capital facing replenishment challenges [1] Group 5: Regional Economic Context - Henan Province ranks high in national GDP, with strong local government financial strength and support capabilities, which can provide substantial backing to Zhongyuan Bank when necessary [1]

中原銀行股份有限公司 * ZHONGYUAN BANK CO., LTD.* （於中華人民共和國註冊成立的股份有限公司） （股份代號：1216） 將於2025年8月20日舉行之 2025年第一次臨時股東大會或其任何續會適用的代表委任表格 本代表委任表格相關的股份數目 （附註1） 內資股 H股 本人╱吾等 （附註2） 地址為 為中原銀行股份有限公司（「本行」） 股內資股（「內資股」）╱H股（「H股」） （附註3 （每股面值人民幣 ） 1.00元）之持有人， 茲委任大會主席或 （附註4） 地址為 作為本人╱吾等受委代表並代表本人╱吾等出席本行將於2025年8月20日（星期三）下午三時正於中國河南省鄭州市鄭東新區金融 島C3-18號中原銀行大廈實體舉行之2025年第一次臨時股東大會（「2025年第一次臨時股東大會」）（或其任何續會），並按下文所指示 於該大會上就日期為2025年7月31日（星期四）的2025年第一次臨時股東大會通告所載決議案投票，或倘無作出指示，則作為本人╱ 吾等的受委代表酌情投票。 普通決議案 贊成 （附註5） 反對 （附註5） 棄權 （附註5） 1. 審議並批准關於變更本行總部住所的議案；及 特 ...