Financial Performance - Guangzhou Rural Commercial Bank reported a significant increase in net profit, reaching CNY 1.2 billion, representing a year-on-year growth of 15%[27]. - Net interest income for 2023 was RMB 16,583.43 million, a decrease of 10.76% compared to RMB 18,582.02 million in 2022[41]. - Total operating income decreased by 19.47% to RMB 18,154.13 million in 2023 from RMB 22,544.65 million in 2022[41]. - Pre-tax profit fell by 35.42% to RMB 2,912.88 million in 2023, down from RMB 4,510.35 million in 2022[41]. - Net profit attributable to shareholders of the parent company decreased by 24.56% to RMB 2,634.42 million in 2023 from RMB 3,492.16 million in 2022[41]. - The net profit for 2023 was RMB 3,259.51 million, reflecting a decline of RMB 778.27 million or 19.27% from the previous year[62]. - Total assets increased by RMB 80,588 million to RMB 1,314,042.45 million in 2023, compared to RMB 1,233,454.45 million in 2022[41]. - The average return on total assets decreased to 0.26% in 2023 from 0.34% in 2022, a decline of 0.08 percentage points[43]. - The cost-to-income ratio increased to 36.08% in 2023 from 31.37% in 2022, an increase of 4.71 percentage points[43]. - Future guidance estimates a revenue growth of 12% for the upcoming year, driven by increased lending and service fees[27]. Asset Quality and Risk Management - The asset quality management has shown solid results, maintaining low levels of new business risks[12]. - The non-performing loan ratio improved to 1.87% in 2023 from 2.11% in 2022, a decrease of 0.24 percentage points[43]. - The bank's overall credit risk remains controllable, with asset quality indicators meeting expected targets[164]. - The bank has implemented a comprehensive responsibility mechanism for credit business, tightening accountability for risk management[164]. - Credit risk management has been strengthened, with a focus on optimizing asset business structure and enhancing risk identification capabilities[164]. - The bank's asset quality remains stable, with risk compensation levels improving through enhanced risk classification and impairment provisions[158]. Business Strategy and Development - The bank's strategic focus remains on serving agriculture, rural areas, and small enterprises[11]. - The bank aims to enhance profitability significantly within two years through a "Year of Efficiency Improvement" initiative[16]. - The bank plans to enhance its focus on rural finance, small and micro enterprises, and green development in its business strategy[52]. - New product offerings include "Rural Revitalization Agricultural Loan" and "Advanced Manufacturing Enterprise Loan" to support key industries[55]. - The bank's retail business strategy includes expanding its customer base among young professionals and healthcare workers[55]. - The bank is committed to talent development, optimizing human resource structure, and enhancing team cohesion[12]. Digital Transformation and Technology - The bank is implementing a "300 billion project" to optimize business processes and enhance digital transformation[11]. - Investment in new technology has increased by 25%, focusing on digital banking solutions to enhance customer experience[30]. - The bank's digital transformation efforts included significant investments in technology resources, with stable operation of key information systems[145]. - In 2023, the bank launched 33 system development projects, including a new mobile banking platform and a 5G smart flagship outlet information system, to support the digital transformation of small and medium asset businesses[147]. - The bank achieved a "zero incident" goal in network and data security, with no major information security events reported during the period[149]. Awards and Recognition - The company received the "Top 10 Retail Banks Award" for 2022 from "Retail Banking" and "Digital Banking" in January 2023[36]. - The company ranked 184th in the "Global Bank Brand Value Top 500" by Brand Finance in February 2023[36]. - The company achieved a ranking of 31st in the "Top 100 Chinese Banking Institutions" by the China Banking Association in July 2023[36]. - The company was recognized as the "Outstanding Private Banking Service" by "New Express" in November 2023[38]. - The company was awarded the "Outstanding Small and Micro Service Award" by "Financial界" in December 2023[38]. Capital Management - Total share capital increased from 11,451,268,539 shares to 14,409,789,327 shares, representing an increase of 2,958,520,788 shares[192]. - The company aims to optimize its capital structure and enhance its risk resilience through these capital activities[194]. - The company completed the issuance of RMB 150 billion in Tier 2 capital bonds on April 3, 2023, with all raised funds used to strengthen Tier 2 capital[195]. - The capital adequacy ratio improved to 13.67% in 2023 from 12.59% in 2022, an increase of 1.08 percentage points[43]. Customer Engagement and Services - User data indicates a rise in active accounts, with a total of 5 million active users, up 20% from last year[27]. - The company launched the "Golden Rice Enterprise Steward" one-stop mobile financial service and upgraded its online banking platform to 3.0, enhancing service quality and efficiency[122]. - The bank's mobile banking customer base reached 4.147 million, representing a year-on-year growth of 4.3%[143]. - The bank's online banking signed customer base reached 30,500, with a transaction amount of 1.0609 trillion yuan[143]. - The credit card business achieved a total of 30,000 large installment transactions in the reporting period, representing a year-on-year increase of 48%, with a total amount of 3.68 billion yuan, up 79% year-on-year[132].

General Information - The registered capital of Guangzhou Rural Commercial Bank is RMB 11,451,268,539.00[5] - The bank operates a total of 14 branches, including locations in Huadu and Nansha districts[7] - The report period covers six months from January 1, 2023, to June 30, 2023[4] - The bank's stock is listed on the Hong Kong Stock Exchange under the code 1551.HK[5] - The bank's main business scope includes monetary financial services[5] - The bank's legal representative is Mr. Cai Jian[5] - The bank's contact information includes a customer service phone number: +8695313[5] - The bank's registered address is No. 9 Yingri Road, Huangpu District, Guangzhou, China[5] - The bank's website is www.grcbank.com[5] Financial Performance - Net interest income for the six months ended June 30, 2023, was RMB 8,560.54 million, a decrease of 5.94% compared to RMB 9,101.21 million for the same period in 2022[11] - Total operating income decreased by 16.14% to RMB 9,401.40 million from RMB 11,210.56 million year-on-year[11] - Net profit attributable to shareholders of the parent company was RMB 2,103.18 million, down 16.76% from RMB 2,526.58 million in the previous year[11] - Total assets increased by 2.46% to RMB 1,263,850.35 million as of June 30, 2023, compared to RMB 1,233,454.45 million at the end of 2022[12] - The non-performing loan ratio rose to 2.25% from 2.11% at the end of 2022, indicating a slight deterioration in asset quality[14] - The average return on total assets decreased to 0.38% from 0.49% year-on-year[13] - The cost-to-income ratio increased to 31.36% from 27.59%, reflecting higher operational costs relative to income[13] - The capital adequacy ratio improved to 13.21% from 12.59%, indicating a stronger capital position[14] Loan and Deposit Information - Customer loans and advances net amount increased by 2.81% to RMB 687,928.22 million from RMB 669,117.87 million at the end of 2022[12] - As of June 30, 2023, total customer deposits reached RMB 923.03 billion, an increase of RMB 12.55 billion or 1.38% compared to the end of 2022[47] - Personal deposits accounted for 59.60% of total deposits, increasing by RMB 33.47 billion or 6.48% year-over-year, while corporate deposits decreased by RMB 12.74 billion or 3.56%[47] - Corporate loans totaled RMB 449.70 billion, accounting for 63.05% of total loans, with an increase of RMB 9.117 billion, or 2.07%[40] - Personal loans reached RMB 170.51 billion, representing 23.91% of total loans, with an increase of RMB 4.548 billion, or 2.74%[40] Income and Expenses - Total interest income decreased to RMB 20,811.54 million, a decline of RMB 946.13 million or 4.35% year-on-year[20] - The average yield on interest-earning assets fell by 42 basis points to 3.62%, while the average cost of interest-bearing liabilities decreased by 13 basis points to 2.19%[19] - The net interest margin decreased by 29 basis points to 1.43%, and the net interest yield dropped by 20 basis points to 1.49%[19] - The company reported a significant decline in trading net income, which fell to RMB 63.98 million, down 93.42% year-on-year[16] - Fee and commission income was RMB 685.69 million, a slight increase of 0.16% year-on-year, while fee and commission expenses rose by 37.09% to RMB 165.11 million[16] - The total operating expenses for the first half of 2023 amounted to RMB 3,062.65 million, down RMB 162.85 million or 5.05% year-on-year[30] Risk Management - The overall credit risk is under control, with the non-performing loan ratio maintained within the set management target[93] - The bank has implemented liquidity risk management measures, ensuring that liquidity risk indicators meet targets and no liquidity risk events occurred in the first half of 2023[95] - The bank has enhanced its credit risk management by launching a "Compliance Construction Year" initiative, improving risk awareness among employees[92] - The bank has optimized its credit management system to improve operational efficiency and risk control quality[92] - The bank has established a comprehensive risk management framework covering all business sectors and types of risks, ensuring clear responsibilities across its organizational structure[90] Corporate Governance - The board of directors consists of 12 members, including 1 executive director and 6 independent non-executive directors[138] - The company has adopted a code of conduct for securities transactions that meets or exceeds the standards set out in the Listing Rules[146] - The company has implemented a performance evaluation system focusing on core development, operational efficiency, compliance risk, and business development, enhancing resource allocation efficiency[149] - The company has established a comprehensive internal control system to ensure compliance with legal and policy frameworks[158] - The company has proposed amendments to its articles of association, reflecting ongoing governance improvements[157] Shareholder Information - The total number of shares held by major shareholders amounts to 3,124,589,712 shares, with significant contributions from Guangzhou Metro Group and Guangzhou Urban Renewal Group[124] - The ownership structure indicates a significant concentration of shares among a few major shareholders, primarily state-owned enterprises[128] - The bank's domestic shares involved judicial freezes of 137,445,296 shares, representing 1.20% of the total share capital, and 808,054,752 shares were pledged, accounting for 7.06%[114] - The top ten shareholders hold a total of 5,419,613,784 shares, which is 47.33% of the total share capital[118] Awards and Recognition - The bank was recognized as one of the top ten retail banks in 2022 and ranked 184th in the 2023 Global Banking Brand Value 500 list[9] - The bank's asset management business received two industry awards, highlighting its excellence in cash management and overall capabilities in the sector[81] - The company has received two external awards for excellence in private banking and wealth service capabilities in 2023, reflecting its commitment to high-quality financial services[74] Digital Transformation and Innovation - The company has launched a one-stop mobile financial service platform, "Jinmi Enterprise Manager," enhancing online banking capabilities and customer service experience[70] - The bank has strengthened its information security capabilities by implementing 12 security protection projects, enhancing its ability to respond to financial technology and cybersecurity incidents[87] - The bank has implemented a digital transformation strategy in its transaction banking business, enhancing service efficiency and customer experience[70] Economic Environment - In the first half of 2023, the domestic GDP grew by 4.5% year-on-year in Q1, accelerating by 1.6 percentage points compared to Q4 2022[110] - The company anticipates a stable recovery in consumption indicators in the second half of 2023, with automotive consumption being a major growth driver[111] - The company expects industrial production to accelerate as major industries complete inventory destocking, leading to increased output and revenue[111]

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之內 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之 任何損失承擔任何責任。 Guangzhou Rural Commercial Bank Co., Ltd.* 廣 州 農 村 商 業 銀 行 股 份 有 限 公 司 * （於中華人民共和國註冊成立的股份有限公司） （H股股份代號：1551） （優先股股份代號：4618） 截 至2023年6月30日 止 六 個 月 中 期 業 績 公 告 廣 州 農 村 商 業 銀 行 股 份 有 限 公 司*（「本 行」）董 事 會（「董 事 會」）宣 佈 本 行 及 附 屬 公 司（「本 集 團」）截 至2023年6月30日 止 六 個 月 之 未 經 審 計 的 合 併 中期業績（「中期業績」）。本業績公告列載本集團截至2023年6月30日止六 個月之中期業績，其內容是根據適用的香港聯合交易所有限公司（「香港 聯交所」）證券上市規則披露要求及按照國際財務報告準則編製。董事會 及董事會審計委員會已審閱此中期業績。 本 業 績 公 告 於 ...

Financial Performance - Total assets of the company reached RMB 1,233.5 billion, a year-on-year increase of 6.18%[5] - Customer deposits grew by 7.15% year-on-year[5] - Total loans and advances increased by 5.22% year-on-year[5] - Net profit attributable to shareholders rose by 9.98% year-on-year[5] - Net interest income decreased by 5.00% to RMB 18,582.02 million in 2022 compared to 2021[19] - Fee and commission income increased by 4.78% to RMB 1,382.08 million in 2022[19] - Total operating income decreased by 3.99% to RMB 22,544.65 million in 2022[19] - Net profit attributable to shareholders increased by 9.98% to RMB 3,492.16 million in 2022[19] - Total assets increased by 6.18% to RMB 1,233,454.45 million in 2022[19] - Interest income increased by 1,252.45 million RMB (2.94%) to 43,818.40 million RMB in 2022 compared to 2021[32] - Interest expense rose by 2,229.59 million RMB (9.69%) to 25,236.38 million RMB in 2022[32] - Net interest income decreased by 977.14 million RMB (5.00%) to 18,582.02 million RMB in 2022[32] - Net profit increased by 261.49 million RMB (6.92%) to 4,037.78 million RMB in 2022[32] - Pre-tax profit grew by 53.06 million RMB (1.19%) to 4,510.35 million RMB in 2022[32] - Credit impairment losses decreased by 1,914.17 million RMB (15.26%) to 10,626.00 million RMB in 2022[32] - Net interest margin (NIM) declined to 1.69% in 2022 from 2.00% in 2021[33] - Customer loans and advances averaged 664,045.00 million RMB with an average yield of 4.93% in 2022[33] - Total interest-bearing liabilities averaged 1,107,332.82 million RMB with an average cost rate of 2.28% in 2022[33] - Total interest-earning assets averaged 1,097,359.84 million RMB with an average yield of 3.99% in 2022[33] - The group's overall interest-earning assets average yield decreased by 37 basis points to 3.99% in 2022, while the average cost rate of interest-bearing liabilities decreased by 7 basis points to 2.28%[34] - Net interest margin decreased by 31 basis points to 1.69% in 2022[34] - Interest income increased by RMB 1.25245 billion in 2022, driven by a RMB 5.20983 billion increase due to scale factors and a RMB 3.95738 billion decrease due to interest rate factors[34] - Interest expense increased by RMB 2.22959 billion in 2022, with a RMB 3.28806 billion increase due to scale factors and a RMB 1.05847 billion decrease due to interest rate factors[34] - The group achieved interest income of RMB 43.818 billion in 2022, an increase of RMB 1.252 billion or 2.94% year-on-year[35] - Customer loan and advance interest income was RMB 32.73973 billion in 2022, an increase of RMB 258 million or 0.79% year-on-year, with an average yield decrease of 37 basis points to 4.93%[36] - Interest income from receivables from other financial institutions decreased by RMB 79 million or 3.52% year-on-year to RMB 2.17314 billion in 2022[37] - Interest expense increased by RMB 2.230 billion or 9.69% year-on-year to RMB 25.236 billion in 2022[39] - Customer deposit interest expense increased by RMB 1.318 billion or 7.42% year-on-year to RMB 19.07819 billion in 2022, with an average cost rate decrease of 2 basis points to 2.22%[40][41] - Interest expense on payables to other financial institutions decreased by RMB 292 million or 14.06% year-on-year to RMB 1.78264 billion in 2022, mainly due to a decline in interbank liability interest rates[42] - Fee and commission net income in 2022 was RMB 13.82 billion, an increase of RMB 0.63 billion, or 4.78% YoY, accounting for 6.13% of total operating income[43] - Trading net income in 2022 was RMB 1.077 billion, primarily from interest income and fair value changes of financial investments measured at fair value through profit or loss[44] - Net income from financial investments in 2022 was RMB 510 million, mainly from fair value changes of financial investments measured at fair value through other comprehensive income and gains from financial investments measured at amortized cost[45] - Other operating net income in 2022 was RMB 993 million, primarily from PBOC interest rate swap incentives and exchange gains/losses[46] - Operating expenses in 2022 were RMB 7.346 billion, an increase of RMB 926 million, or 14.42% YoY, with employee costs being the largest component at RMB 4.855 billion, up 23.16% YoY[47][48] - Asset impairment losses in 2022 were RMB 10.688 billion, with credit impairment losses accounting for RMB 10.626 billion, a decrease of 15.26% YoY[51] - Total assets as of December 31, 2022, were RMB 1,233.454 billion, an increase of RMB 71.826 billion, or 6.18% YoY, driven by growth in loans and advances (up 5.22% YoY) and financial investments (up 11.20% YoY)[53][54] - Total loans and advances increased by RMB 34.309 billion (5.22%) to RMB 6,919.72 billion as of December 31, 2022, with corporate loans growing by RMB 33.558 billion (8.24%) to RMB 4,405.85 billion[55] - Personal loans increased by RMB 7.529 billion (4.75%) to RMB 1,659.59 billion, while bill financing decreased by RMB 6.778 billion (7.35%) to RMB 854.29 billion[55] - Working capital loans, fixed asset loans, and financial lease receivables increased by RMB 23.113 billion (14.53%), RMB 13.435 billion (6.00%), and RMB 2.094 billion (11.17%) respectively, reaching RMB 1,821.95 billion, RMB 2,373.04 billion, and RMB 208.42 billion[56] - Personal mortgage loans and personal business loans increased by RMB 2.27 billion (0.31%) and RMB 5.951 billion (9.12%) respectively, while personal consumption loans and credit card balances grew by RMB 948 million (9.44%) and RMB 403 million (4.13%)[57] - Bank acceptance bill financing decreased by RMB 15.965 billion, while commercial acceptance bill financing increased by RMB 9.187 billion[58] - Mortgage loans, pledged loans, and credit loans increased by RMB 7.155 billion (2.20%), RMB 919 million (2.55%), and RMB 27.120 billion (20.43%) respectively, while guaranteed loans decreased by RMB 885 million (0.54%)[58] - Total investments increased by RMB 35.199 billion (11.20%) to RMB 3,494.37 billion, with financial assets measured at amortized cost growing by RMB 39.113 billion (24.85%) to RMB 1,965.17 billion[59] - Total liabilities increased by RMB 70.462 billion (6.56%) to RMB 11,452.05 billion, with customer deposits growing by RMB 60.718 billion (7.15%) to RMB 9,104.85 billion[62] - Customer deposits increased by 7.15% to RMB 910.485 billion, with personal deposits growing by 13.90% to RMB 516.654 billion and corporate deposits decreasing by 5.71% to RMB 358.236 billion[64] - The proportion of demand deposits decreased by 2.92 percentage points to 32.97%, while the proportion of time deposits (excluding margin and other deposits) increased by 0.92 percentage points to 63.12%[64] - The non-performing loan (NPL) ratio increased by 0.28 percentage points to 2.11%, and the proportion of special mention loans rose by 3.59 percentage points to 7.71%[68] - The total shareholder equity reached RMB 88.249 billion, with paid-in capital at RMB 11.451 billion, capital reserve at RMB 18.951 billion, and undistributed profits at RMB 19.995 billion[65] - The leasing and business services sector accounted for 37.50% of the total non-performing corporate loans, with an NPL ratio of 3.57%, up from 25.13% and 2.64% respectively in the previous year[70] - The wholesale and retail trade sector accounted for 37.34% of the total non-performing corporate loans, with an NPL ratio of 7.60%, slightly up from 7.35% in the previous year[70] - The real estate sector's non-performing loans increased to 13.50% of the total, with an NPL ratio of 2.83%, up from 5.66% and 1.00% respectively in the previous year[70] - The manufacturing sector's non-performing loans accounted for 4.78% of the total, with an NPL ratio of 1.18%, down from 1.54% in the previous year[70] - The construction sector's non-performing loans decreased to 1.55% of the total, with an NPL ratio of 0.50%, down from 2.36% in the previous year[70] - The health and social work sector's non-performing loans accounted for 1.17% of the total, with an NPL ratio of 5.76%, down from 7.02% in the previous year[70] - The non-performing loan ratio increased to 2.11% at the end of 2022, up by 0.28 percentage points compared to the previous year[74] - Corporate loans accounted for 81.38% of total loans, with a non-performing loan ratio of 2.70%[73] - Personal loans accounted for 18.62% of total loans, with a non-performing loan ratio of 1.64%[73] - Overdue loans decreased by RMB 4.813 billion to RMB 26.936 billion, with the overdue loan ratio dropping by 0.94 percentage points to 3.89%[76] - Restructured loans and advances increased by RMB 3.473 billion to RMB 23.004 billion[77] - The capital adequacy ratio decreased to 12.59% at the end of 2022, down by 0.50 percentage points[79] - The leverage ratio stood at 6.09% at the end of 2022[80] - Corporate banking business contributed 50.78% to total operating income, while retail banking contributed 39.62%[81] - Off-balance sheet items included RMB 51.149 billion in acceptance bills, RMB 32.556 billion in issued guarantees, and RMB 150.325 billion in loan commitments[82] - Corporate deposits reached 363.1 billion yuan, an increase of 11.6 billion yuan from the beginning of the year, ranking third in Guangzhou[84] - Corporate loan balance increased by 34 billion yuan to 396.5 billion yuan by the end of 2022[86] - Successfully issued the first green financial bond of 3 billion yuan, expanding funding sources and reducing financing costs for green enterprises[86] - Launched the "Green Enterprise Loan" and "Specialized and Sophisticated Loan" to support green finance and specialized enterprises[86] - Retail deposit scale ranked second in Guangzhou, with annual deposit growth reaching a historical high[89] - Introduced 14 differentiated and scenario-based deposit products targeting rural, education, and small customer segments[89] - Upgraded Huadu Branch to a Green Finance Reform and Innovation Pilot Zone Branch, elevating green finance to a strategic level[85] - Obtained approval for cross-border trade and investment facilitation services in the Nansha New Area, becoming the first local bank in Guangzhou with this qualification[87] - Won multiple awards for bond underwriting, including the Best Credit Bond Underwriter Award for four consecutive years[88] - Enhanced digital transformation in transaction banking, launching electronic letter of credit systems and supply chain factoring services[87] - Retail loan business grew steadily in 2022, with the company launching multiple mortgage loan products and establishing strategic partnerships with leading real estate developers and mortgage intermediaries[90] - The company's consumer loan business improved in quality and efficiency in 2022, with the launch of the "Jinmi Consumption e-Loan" and expansion of customer groups for the "Jinmi Fingertip Loan"[90] - Platform loans saw significant growth in 2022, with the successful launch of three major platform loans and the development of a second batch of bank-type platform loans[90] - Wealth management business focused on customer service management, product system construction, investment advisory services, and system support upgrades in 2022[91] - The company's wealth management business won multiple awards in 2022, including the "Golden Bull Award for Wealth Management Banks" and the "Golden Ding Award for Wealth Management Banks"[92] - The company issued a "Jinmi Rural Revitalization Card" debit card and the first cross-branch social security card in Guangdong Province in 2022[93] - Credit card business saw a 5.6% year-on-year increase in cumulative card issuance, reaching 1.9931 million cards by the end of 2022[94] - Financial market business achieved steady growth in scale and quality in 2022, with optimized asset and liability structures and reduced liability costs[95] - The company's core capabilities in financial market business were enhanced in 2022, with total transaction volume exceeding 11.8 trillion yuan by the end of the year[96] - The company explored new business models in financial markets in 2022, including bond reverse repurchase transactions and bond borrowing and lending[96] - The bank's wealth management product balance reached 69.946 billion yuan by the end of 2022[98] - The bank issued 19.341 billion yuan in small business loans, benefiting 5,192 customers, ranking first among local legal entities in the province[100] - The bank provided 7.643 billion yuan in loan repayment extensions, assisting 2,184 customers[100] - The bank completed interest subsidies for 273 first-time borrowers (individuals and enterprises), involving 908 million yuan in loans, ranking first among local legal entities in the province[100] - The bank's WeChat banking service had 1.2637 million customers by the end of 2022[102] - The bank's "Jinmi Market" e-commerce platform generated nearly 3 million yuan in sales for agricultural products in 2022[103] - The bank has 605 branches (including 1 specialized institution), with 586 in Guangzhou, ranking first in the region[103] - The bank has 2,065 self-service terminals, including 1,044 ATMs, 473 self-service inquiry terminals, and 548 intelligent service terminals[104] - The bank has 255 smart banking outlets with 548 STM devices[104] - The bank achieved stable operation of all major information systems in 2022, with no unplanned system interruptions[105] - The company successfully launched 46 projects in 2022, including a risk management system, a small and micro financial service platform, a corporate intelligent marketing system, and an intelligent voice outbound system, effectively supporting the development and management of various business lines[109] - The company introduced new technologies such as RPA robots and federated learning, reducing manual workload and enhancing business processing efficiency[110] - The company achieved a customer service satisfaction rate of 99.12% in 2022, with 1,263 consumer complaints handled across all channels, all resolved in a timely manner[111] - The company conducted consumer rights protection education activities, covering approximately 15 million people, and received multiple awards from regulatory authorities[111] - The company established a comprehensive risk management governance structure, covering all business lines, branches, and subsidiaries, and continuously optimized its risk management framework[112] - The company strengthened credit risk management by improving the organizational structure, establishing a cross-departmental post-loan management supervision group, and enhancing the credit approval process[114] - The company promoted the use of a "credit investigation APP" for pre-loan processes, optimized review tools for mid-loan processes, and revised post-loan systems to strengthen risk monitoring[115] - The company enhanced risk asset control by revising management measures, optimizing risk management assessment mechanisms, and increasing the weight of asset quality assessment indicators[115] - The company completed the second phase of the risk system project group, with all functions within the project scope successfully launched, and implemented electronic management of credit files[116] - The company established a scientific liquidity risk management mechanism to ensure timely fulfillment of liquidity needs and payment obligations under normal or stressed conditions[117] - The company's liquidity coverage ratio reached 397.90% and the net stable funding ratio was 118.62% at the end of 2022[118] - The company conducted regular liquidity risk stress tests and increased testing during sensitive periods to enhance monitoring and prevention[118] - The company's market risk indicators were all within acceptable limits, and stress tests showed the ability to withstand valuation changes impacting revenue, net profit, and capital adequacy[119] - The company strengthened operational risk management by setting up quantitative monitoring indicators and conducting internal control checks[120] - The company implemented multiple measures to enhance information technology risk management, including issuing new regulations and conducting emergency drills[121] - The company focused on compliance risk management by improving the system construction and conducting case risk investigations[122] - The company continued to strengthen legal risk management and improved the risk prevention and control capabilities[123] - The company completed key projects in anti-money laundering system reconstruction and self-assessment of money laundering risks[124] - The company established a sound reputation risk management mechanism to effectively respond to negative public opinion events[125] - The

Financial Performance - Total assets reached RMB 1,233.5 billion, an increase of 6.18% year-on-year, ranking among the top three rural commercial banks in China[6]. - Customer deposits grew by 7.15%, while total loans and advances increased by 5.22%[6]. - Net profit attributable to shareholders rose by 9.98%[6]. - Revenue for the quarter reached $500 million, a 15% increase compared to the previous quarter, driven by strong performance in the digital banking sector[14]. - The company reported a significant increase in net profit, reaching 1.2 billion RMB, representing a 15% year-over-year growth[180]. - The total operating income for 2022 was RMB 22,544.65 million, reflecting a decline of 3.99% compared to RMB 23,480.53 million in 2021[20]. - The company achieved a pre-tax profit of RMB 4.51 billion, an increase of 1.19% year-on-year, and a net profit of RMB 4.04 billion, up 6.92% year-on-year[33]. - The company reported a net profit margin of 12%, up from 10% in the previous year, reflecting improved operational efficiency[9]. Customer Engagement and Growth Strategies - The bank implemented a "Customer Doubling Plan" focusing on small and micro enterprises and retail customers, enhancing service efficiency[7]. - The company plans to implement a "Customer Doubling Plan" to expand its customer base and improve service quality[9]. - The company reported a significant increase in user data, with a total of 1.5 million new accounts added in Q3 2023, representing a 25% year-over-year growth[13]. - The company is expanding its market presence by opening 10 new branches across key urban areas, aiming to increase its customer base by 30% in the next year[14]. - The company aims to achieve a return on equity of 12% by the end of the fiscal year, up from 10%[182]. - The company is actively seeking to expand its market presence through strategic appointments and governance improvements[166]. Risk Management and Compliance - A comprehensive risk management system was established, featuring a seven-level classification and four-level management mechanism for asset risk[8]. - The company emphasizes risk management and aims to reduce existing asset risks while enhancing capital strength[10]. - The bank has strengthened compliance risk management by enhancing the regulatory framework and conducting risk assessments to prevent legal and regulatory breaches[123]. - The bank has established a comprehensive anti-money laundering risk management system, enhancing internal inspection and training to prevent money laundering risks effectively[125]. - The company has improved its consumer rights protection framework, conducting extensive educational campaigns that reached approximately 15 million people[112]. Technology and Innovation - Investment in technology R&D has increased by 40%, focusing on enhancing cybersecurity measures and improving user experience[15]. - The company has invested in new technologies such as RPA and federated learning to enhance operational efficiency and information security[111]. - The bank has a strong focus on technology and innovation, with leaders like Mr. Li, who has extensive experience in the technology department of various banks[184]. - The company is focusing on optimizing its product system and improving service efficiency as part of its "Customer Doubling Plan"[29]. - The company has successfully completed all objectives of its information technology innovation plan for 2022, receiving multiple awards for its digital transformation initiatives[111]. Asset Quality and Financial Health - The non-performing loan ratio increased to 2.11% in 2022 from 1.83% in 2021, reflecting a change of 0.28%[22]. - The provision coverage ratio decreased to 156.93% in 2022 from 167.04% in 2021, a decline of 10.11%[22]. - The capital adequacy ratio fell to 12.59% in 2022 from 13.09% in 2021, a decrease of 0.50%[22]. - The company has established a seven-level classification and four-level management mechanism for asset risk classification and management[31]. - The actual credit impairment loss for 2022 was RMB 10.626 billion, a decrease of RMB 1.914 billion or 15.26% from 2021[52]. Shareholder Structure and Governance - Total share capital as of December 31, 2022, is 11,451,268,539 shares, with no changes during the reporting period[134]. - The largest shareholder, Guangzhou Municipal Government, has a significant influence over the company's strategic decisions due to its majority stake[144]. - The company has multiple beneficial owners, including individuals with substantial indirect holdings through controlled corporations[146][147]. - The company’s board of directors and senior management underwent changes, with several new appointments and resignations in 2022 and early 2023[162]. - The company is committed to maintaining a strong leadership team to drive future growth and strategic initiatives[167]. Employee and Organizational Structure - As of the end of 2022, the total number of employees in the group is 13,975, with 13,342 under labor contracts and 633 dispatched personnel[197]. - The gender distribution of employees shows 7,333 males (52.47%) and 6,642 females (47.53%)[198]. - Employee education structure indicates that 3,655 employees (26.15%) have an associate degree or below, 9,048 employees (64.75%) hold a bachelor's degree, and 1,272 employees (9.10%) have a graduate degree or above[198]. - The company has implemented a continuous improvement policy for the compensation management and performance evaluation system for directors and senior management[195]. - The management team includes individuals with extensive backgrounds in finance and banking, enhancing the company's expertise[165].

Company Overview - The registered capital of Guangzhou Rural Commercial Bank is RMB 11,451,268,539[6]. - The bank operates under the Hong Kong Stock Exchange with the stock code 1551.HK[6]. - The bank's main business scope includes monetary financial services[6]. - The bank has multiple branches across Guangzhou, with a total of 11 listed in the report[10]. - The bank's legal representative is Mr. Cai Jian[6]. - The bank's financial report period covers six months from January 1, 2022, to June 30, 2022[5]. - The bank's contact number for investor relations is (8620) 28019324[6]. - The bank's registered address is No. 9 Yingri Road, Huangpu District, Guangzhou, China[6]. - The bank's major operating address in Hong Kong is 40th Floor, Dah Sing Financial Centre, 248 Queen's Road East, Wanchai[6]. - The bank's auditor is PricewaterhouseCoopers[6]. Financial Performance - Net interest income for the first half of 2022 was RMB 9,101.21 million, a decrease of 5.78% compared to RMB 9,659.72 million in the same period of 2021[13]. - Total operating income decreased by 4.96% to RMB 11,210.56 million from RMB 11,796.21 million year-on-year[13]. - Pre-tax profit fell by 28.82% to RMB 3,172.40 million, down from RMB 4,457.16 million in the previous year[13]. - Net profit attributable to shareholders decreased by 19.27% to RMB 2,526.58 million compared to RMB 3,129.78 million in the same period last year[13]. - Total assets increased by 6.46% to RMB 1,236,655.46 million from RMB 1,161,628.63 million at the end of 2021[14]. - Customer loans and advances net amount rose by 5.05% to RMB 669,738.62 million from RMB 637,553.81 million[14]. - Non-performing loan ratio increased to 2.03% from 1.83%[16]. - The coverage ratio for provisions decreased to 151.47% from 167.04%[16]. - The capital adequacy ratio decreased to 12.35% from 13.09%[16]. Income and Expenses - Interest income for the same period was RMB 21.75767 billion, an increase of RMB 1.29424 billion or 6.32% compared to the previous year[20]. - The company's total interest-bearing assets averaged RMB 1,078.14228 billion, with total interest-bearing liabilities averaging RMB 1,092.01423 billion[21]. - The net interest margin decreased by 34 basis points to 1.69% compared to the previous year[22]. - The company reported a significant reduction in commission income, with net commission income dropping by 18.74% year-on-year[18]. - Interest expenses for the first half of 2022 totaled RMB 12.656 billion, an increase of RMB 1.853 billion, representing a growth of 17.15%[27]. Customer Deposits and Loans - Customer deposits accounted for RMB 885.997 billion, representing 77.10% of total liabilities, an increase from 79.07% at the end of the previous year[48]. - The total loans and advances reached RMB 690.941 billion, up by RMB 33.278 billion or 5.06% from the end of the previous year, with corporate loans increasing by 4.39% and personal loans by 3.80%[43]. - The proportion of mortgage loans in total loans was 48.15%, while pledged loans accounted for 5.22%[46]. - The group’s personal mortgage loans, personal operating loans, personal consumption loans, and credit card balances were RMB 749.89 billion, RMB 687.67 billion, RMB 102.92 billion, and RMB 104.05 billion, respectively[45]. Risk Management - The bank's credit risk management framework was enhanced in the first half of 2022, with the establishment of a credit management department to streamline risk management processes[94]. - The bank's liquidity risk management measures included monthly monitoring of liquidity indicators and quarterly liquidity risk stress tests, ensuring overall liquidity risk remained controllable[95]. - The bank's overall credit risk was deemed controllable in the first half of 2022, supported by enhanced risk management capabilities[94]. - The bank has established a compliance risk management mechanism to effectively identify, assess, prevent, and address compliance risks, ensuring legal and regulatory compliance in operations[99]. Shareholder Information - The total share capital of the bank as of June 30, 2022, was 11.45 billion shares, with non-overseas listed shares accounting for 9.33 billion shares, representing 81.44% of the total[110]. - The top ten shareholders held a combined 47.33% of the bank's shares, with the largest shareholder, Hong Kong Central Clearing Limited, holding 2.12 billion shares, or 18.56%[113]. - The company does not have a controlling shareholder or actual controller as of the reporting period[116]. - The company has a diverse shareholder base with significant stakes held by various investment and government entities[120]. Employee and Governance - Total number of employees as of the reporting period is 13,993, a decrease of 175 compared to the end of 2021[142]. - The company organized 155 offline training programs covering over 30,000 employee instances, and conducted 152 online live training sessions with an average of 32 hours of online learning per employee[144]. - The company’s governance structure includes various committees such as the Strategic and Investment Committee and the Audit Committee, ensuring comprehensive oversight[151]. - The bank's management is tasked with regular reporting to the board on operational matters and compliance with governance standards[153].

Financial Performance - The total asset scale of Guangzhou Rural Commercial Bank reached CNY 1,161.6 billion, ranking second among rural commercial banks in China[8]. - The bank raised CNY 9.677 billion in capital to support stable operations and enhance growth momentum[8]. - The bank's operating indicators, including deposits and loans, continued to show good growth, indicating a solid financial performance[8]. - In 2021, Guangzhou Rural Commercial Bank's total assets reached CNY 1,161.6 billion, with deposits of CNY 849.8 billion and loans of CNY 657.7 billion[11]. - Net interest income for 2021 was RMB 19,559.16 million, an increase of 10.83% compared to RMB 17,647.48 million in 2020[22]. - Total operating income reached RMB 23,480.53 million, reflecting a growth of 10.66% from RMB 21,218.41 million in the previous year[22]. - The net profit attributable to shareholders of the parent company decreased by 37.51% to RMB 3,175.21 million from RMB 5,081.30 million in 2020[22]. - The total assets increased to RMB 1,161,628.63 million, up by 13.03% from RMB 1,027,871.65 million in 2020[22]. - The average return on equity decreased to 4.43% from 7.10% in the previous year[23]. - The cost-to-income ratio improved to 26.08%, down from 31.95% in 2020[23]. - The capital adequacy ratio increased to 13.09% from 12.56% in 2020[24]. - The bank's customer loans and advances net amount rose to RMB 637,553.81 million, a significant increase of 84,385.47 million from RMB 553,168.34 million in 2020[22]. Strategic Goals and Development - The bank aims to become a leading rural commercial bank by 2023 and a first-class commercial bank in China by 2025[8]. - The bank's strategic plan for 2021-2025 aims to achieve high-quality development and improve its overall business structure[11]. - The bank's vision is to become a leading commercial bank in China, guided by Xi Jinping's thoughts on socialism with Chinese characteristics for a new era[10]. - The bank's commitment to innovation and reform is expected to drive its future growth and market expansion[8]. - The bank plans to strengthen rural finance, industrial finance, consumer finance, and wealth finance, with a commitment to support small and medium enterprises and enhance retail credit, especially consumer loans[9]. Risk Management - The bank actively managed risk assets with a comprehensive approach, focusing on controlling new risks and resolving existing ones[8]. - The bank will continue to optimize its risk monitoring and approval processes to build a robust risk management culture[9]. - The bank's leadership emphasizes the need for a proactive approach to risk management and a customer-centric business philosophy[12]. - The company implemented a comprehensive risk management framework, focusing on credit risk management and optimizing asset structure to support local enterprises and small businesses[115]. - The company conducted liquidity risk management measures, ensuring that all important liquidity risk indicators met targets each month[119]. - The company maintained overall market risk control, with all key market risk indicators meeting targets and stress test results indicating resilience against valuation changes[120]. Awards and Recognition - The bank has received multiple awards, including the "China Financial Innovation Award" and "Annual Regional Influence Bank," reflecting its competitive position in the market[11]. - The bank's wealth management business received multiple awards, including the "Annual Wealth Management Award" and "Gold Quality Financial Brand Award" in 2021, reflecting its strong market recognition[88]. Capital Structure and Shareholder Information - The registered capital of Guangzhou Rural Commercial Bank is RMB 11,451,268,539[13]. - The total share capital increased from 9,808,268,539 shares at the end of 2020 to 11,451,268,539 shares by the end of 2021, representing an increase of 1,643,000,000 shares[132]. - The company issued a total of 1.643 billion shares during the reporting period, raising approximately RMB 9.663 billion for core tier one capital[134]. - The company distributed cash dividends of approximately RMB 1.202 billion (including tax) for the fiscal year 2021, proposing a payout of RMB 1.05 per 10 shares[153]. Governance and Management - The company’s governance structure was strengthened with the appointment of new supervisory board members, enhancing oversight and compliance[157]. - The company’s board of supervisors saw new external supervisors appointed on February 23, 2021, including Mr. Zhan Li Yuan and Mr. Han Zhen Ping[157]. - The company has established a performance assessment system that emphasizes risk management and high-quality development, with various indicators for core development, operational efficiency, compliance risk, and business transformation[180]. - The board of directors consists of 14 members, including 3 executive directors and 5 independent non-executive directors[189]. Customer and Market Engagement - The bank's retail deposit scale reached CNY 360.1 billion by the end of 2021, an increase of CNY 40.8 billion, representing a growth rate of 12.7%, outperforming the industry average by 3.22 percentage points[84]. - The bank's credit card issuance reached 1.8873 million cards by the end of December 2021, a growth of 7% year-on-year, with intermediary income from credit card business amounting to CNY 184 million and operating income of CNY 725 million in 2021[89]. - The bank's mobile banking customers numbered approximately 4.02 million, with a transaction volume of 17.71 million and a total transaction amount of 493.005 billion RMB[101]. Employee Development - The total number of employees in the group as of December 31, 2021, was 14,168, an increase of 227 employees or 2% compared to the previous year[177]. - The company organized over 450 training programs in 2021, covering more than 60,000 employee training sessions, with an average of 66 hours of online learning per employee[178]. - The compensation structure for employees includes fixed salaries, variable pay, and benefits, with total compensation being dynamically adjusted based on various factors including economic performance and risk control[179].

[Company Profile](index=3&type=section&id=Company%20Profile) [Company Overview](index=3&type=section&id=Company%20Overview) Guangzhou Rural Commercial Bank Co., Ltd. (GRCB), established in 2009 and listed in 2017, operates diverse financial services with a registered capital of RMB 9.81 billion - The company's legal Chinese name is 廣州農村商業銀行股份有限公司, abbreviated as "廣州農村商業銀行"[5](index=5&type=chunk) - The company's legal English name is Guangzhou Rural Commercial Bank Co., Ltd., abbreviated as "GRCB"[5](index=5&type=chunk) Company Basic Information | Indicator | Content | | :--- | :--- | | Registered Capital | RMB 9,808,268,539.00 | | H-share Listing Exchange | The Stock Exchange of Hong Kong Limited | | H-share Abbreviation and Code | GRCB (1551.HK) | | Overseas Preference Share Abbreviation and Code | GRCB 19USDPREF (4618.HK) | | Business Scope | Monetary financial services | [Branch Network](index=4&type=section&id=Branch%20Network) As of the reporting period, the bank operates 635 branches, with 617 in Guangzhou and 18 in other Guangdong cities, leading in Guangzhou's branch count - As of June 30, 2021, the bank had **635 branches**, including **617 in Guangzhou** (1 specialized institution) and **18 in other Guangdong cities**[551](index=551&type=chunk) - The bank's Guangzhou branch network ranks first among banks in the Guangzhou area[551](index=551&type=chunk) - The bank has **5 off-site branches**, **12 sub-branches**, and **1 banking outlet** in Foshan, Qingyuan, Heyuan, Zhaoqing, and Zhuhai[551](index=551&type=chunk) [Major Honors in H1 2021](index=5&type=section&id=Major%20Honors%20in%20H1%202021) In H1 2021, GRCB achieved significant recognition, ranking 159th in global bank brand value and 30th in China's banking industry Major Honors in H1 2021 | No. | Honor Name | Awarding/Granting Body | Award Time | | :--- | :--- | :--- | :--- | | 1 | Top 500 Global Banking Brands 2020, ranked 159th | Brand Finance & The Banker | Feb 2021 | | 2 | Golden Lion 20-Year Public Welfare Partner Award | Information Times | May 2021 | | 3 | Top 100 Chinese Banking Industry 2021, ranked 30th | China Banking Association | Jul 2021 | [Financial Highlights](index=6&type=section&id=Financial%20Highlights) [Operating Performance](index=6&type=section&id=Operating%20Performance) In H1 2021, the group's operating performance showed steady growth, with net profit increasing by 10.17% and basic earnings per share rising to RMB 0.26 H1 2021 Operating Performance (RMB millions) | Item | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | Change Amount | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Net interest income | 9,659.72 | 9,390.31 | 269.41 | 2.87 | | Net fee and commission income | 694.19 | 600.04 | 94.15 | 15.69 | | Operating income | 11,796.21 | 11,793.68 | 2.53 | 0.02 | | Profit before tax | 4,457.16 | 4,094.65 | 362.51 | 8.85 | | Net profit | 3,660.08 | 3,322.26 | 337.82 | 10.17 | | Net profit attributable to equity holders of the parent | 3,129.78 | 3,085.66 | 44.12 | 1.43 | | Basic earnings per share (RMB) | 0.26 | 0.25 | 0.01 | 4.00 | [Scale Indicators](index=6&type=section&id=Scale%20Indicators) As of June 30, 2021, the group's total assets exceeded RMB 1 trillion, growing 6.17% from year-end, with double-digit growth in net customer loans and deposits H1 2021 Scale Indicators (RMB millions) | Item | As of June 30, 2021 | As of December 31, 2020 | Change Amount | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Total assets | 1,091,302.07 | 1,027,871.65 | 63,430.42 | 6.17 | | Of which: Net customer loans and advances | 619,653.42 | 553,168.34 | 66,485.08 | 12.02 | | Total liabilities | 1,014,276.54 | 951,986.34 | 62,290.20 | 6.54 | | Of which: Customer deposits | 829,957.30 | 778,424.85 | 51,532.45 | 6.62 | | Equity attributable to equity holders of the parent | 70,248.29 | 69,487.08 | 761.21 | 1.10 | | Total equity | 77,025.53 | 75,885.31 | 1,140.22 | 1.50 | [Profitability Indicators](index=7&type=section&id=Profitability%20Indicators) In H1 2021, the group's average return on equity improved, while average return on total assets, net interest margin, and net interest spread slightly decreased H1 2021 Profitability Indicators | Item | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | Change Amount | | :--- | :--- | :--- | :--- | | Average return on total assets | 0.69% | 0.71% | (0.02) | | Average return on equity | 10.08% | 9.24% | 0.84 | | Net interest spread | 2.04% | 2.23% | (0.19) | | Net interest margin | 2.03% | 2.26% | (0.23) | | Net fee and commission income to operating income ratio | 5.88% | 5.09% | 0.79 | | Cost-to-income ratio | 28.59% | 22.23% | 6.36 | [Asset Quality Indicators](index=7&type=section&id=Asset%20Quality%20Indicators) As of June 30, 2021, the group's non-performing loan ratio, provision coverage ratio, and loan loss allowance ratio all decreased, indicating stable and slightly improved asset quality H1 2021 Asset Quality Indicators | Item | As of June 30, 2021 | As of December 31, 2020 | Change Amount | | :--- | :--- | :--- | :--- | | Non-performing loan ratio | 1.77% | 1.81% | (0.04) | | Provision coverage ratio | 154.05% | 154.85% | (0.80) | | Loan loss allowance ratio | 2.73% | 2.81% | (0.08) | [Capital Adequacy and Other Indicators](index=7&type=section&id=Capital%20Adequacy%20and%20Other%20Indicators) As of June 30, 2021, the group's core Tier 1, Tier 1, and total capital adequacy ratios slightly decreased, while the loan-to-deposit ratio increased, reflecting stable capital structure and liquidity management H1 2021 Capital Adequacy and Other Indicators | Item | As of June 30, 2021 | As of December 31, 2020 | Change Amount | | :--- | :--- | :--- | :--- | | Core Tier 1 capital adequacy ratio | 8.87% | 9.20% | (0.33) | | Tier 1 capital adequacy ratio | 10.34% | 10.74% | (0.40) | | Capital adequacy ratio | 11.98% | 12.56% | (0.58) | | Total equity to total assets ratio | 7.06% | 7.38% | (0.32) | | Loan-to-deposit ratio | 76.73% | 73.09% | 3.64 | - The group reclassified credit card installment income from fee income to interest income, restating net interest margin and net fee and commission income to operating income ratio[20](index=20&type=chunk) [Management Discussion and Analysis](index=9&type=section&id=Management%20Discussion%20and%20Analysis) [H1 2021 Financial Review](index=9&type=section&id=H1%202021%20Financial%20Review) In H1 2021, the group achieved a profit before tax of RMB 4.46 billion and a net profit of RMB 3.66 billion, with steady asset and liability growth and stable asset quality - In H1 2021, the group achieved **profit before tax of RMB 4.46 billion**, an increase of **RMB 363 million**, or **8.85%** year-on-year[21](index=21&type=chunk) - **Net profit was RMB 3.66 billion**, an increase of **RMB 338 million**, or **10.17%** year-on-year[21](index=21&type=chunk) - **Total assets were RMB 1.09 trillion**, an increase of **RMB 63.43 billion**, or **6.17%** from year-end[500](index=500&type=chunk) - **Total liabilities were RMB 1.01 trillion**, an increase of **RMB 62.29 billion**, or **6.54%** from year-end[507](index=507&type=chunk) [Income Statement Analysis](index=9&type=section&id=Income%20Statement%20Analysis) In H1 2021, net interest income and net fee and commission income grew, but net gains from financial investments and other income declined, while operating expenses increased significantly H1 2021 Income Statement Key Data (RMB millions) | Item | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | Change Amount | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Net interest income | 9,659.72 | 9,390.31 | 269.41 | 2.87 | | Net fee and commission income | 694.19 | 600.04 | 94.15 | 15.69 | | Net trading gains | 1,180.64 | 1,035.95 | 144.69 | 13.97 | | Net gains from financial investments | 159.31 | 363.55 | (204.24) | (56.18) | | Other income, gains or losses | 102.35 | 403.83 | (301.48) | (74.66) | | Operating income | 11,796.21 | 11,793.68 | 2.53 | 0.02 | | Operating expenses | (3,503.41) | (2,720.87) | (782.54) | 28.76 | | Credit impairment losses | (3,826.94) | (4,976.55) | 1,149.61 | (23.10) | | Profit before tax | 4,457.16 | 4,094.65 | 362.51 | 8.85 | | Net profit | 3,660.08 | 3,322.26 | 337.82 | 10.17 | [Net Interest Income](index=10&type=section&id=Net%20Interest%20Income) In H1 2021, net interest income reached RMB 9.66 billion, growing 2.87% due to scale, despite a decline in average yield on interest-earning assets and net interest margin - In H1 2021, the group achieved **net interest income of RMB 9.66 billion**, an increase of **RMB 270 million**, or **2.87%** year-on-year[22](index=22&type=chunk)[23](index=23&type=chunk) - Net interest income accounted for **81.89% of total operating income**, primarily driven by scale benefits[22](index=22&type=chunk) - The average yield on overall interest-earning assets decreased by **17 basis points** year-on-year to **4.31%**, while the average cost of overall interest-bearing liabilities increased by **2 basis points** to **2.27%** year-on-year[25](index=25&type=chunk) - Net interest spread decreased by **19 basis points** year-on-year to **2.04%**, and net interest margin decreased by **23 basis points** year-on-year to **2.03%**[25](index=25&type=chunk)[33](index=33&type=chunk) - Interest income from customer loans and advances was **RMB 15.46 billion**, an increase of **RMB 1.42 billion** year-on-year, but the average yield decreased by **41 basis points** to **5.14%**, mainly due to policies guiding lower loan interest rates[481](index=481&type=chunk) - Interest expense on customer deposits was **RMB 8.25 billion**, an increase of **RMB 1.28 billion**, or **18.41%** year-on-year, with the deposit cost rate rising by **2 basis points** to **2.13%**, mainly due to higher interest rates on individual time deposits[484](index=484&type=chunk) [Non-Interest Income](index=15&type=section&id=Non-Interest%20Income) In H1 2021, net fee and commission income grew 15.69% driven by syndicated loans, while net trading gains increased, but net gains from financial investments and other income significantly declined - Net fee and commission income was **RMB 694 million**, an increase of **RMB 94 million**, or **15.69%** year-on-year, primarily due to growth in syndicated loan business fees[487](index=487&type=chunk) - Net trading gains were **RMB 1.18 billion**, mainly from interest income and fair value changes of financial investments measured at fair value through profit or loss[488](index=488&type=chunk) - Net gains from financial investments were **RMB 159 million**, primarily from trading spreads of financial investments measured at fair value through other comprehensive income, a **56.18% decrease** year-on-year[21](index=21&type=chunk)[489](index=489&type=chunk) - Other income, gains or losses were **RMB 102 million**, a **74.66% decrease** year-on-year, mainly due to PBOC interest rate swap incentives and exchange losses[21](index=21&type=chunk)[489](index=489&type=chunk) [Operating Expenses](index=16&type=section&id=Operating%20Expenses) In H1 2021, total operating expenses reached RMB 3.50 billion, a significant 28.76% year-on-year increase, mainly due to higher staff costs and taxes and surcharges H1 2021 Major Components of Operating Expenses (RMB millions) | Item | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | Change Amount | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Staff costs | 2,379.53 | 1,719.03 | 660.50 | 38.42 | | Taxes and surcharges | 130.51 | 98.97 | 31.54 | 31.87 | | Depreciation and amortization | 457.27 | 394.05 | 63.22 | 16.04 | | Others | 536.10 | 508.82 | 27.28 | 5.36 | | Total operating expenses | 3,503.41 | 2,720.87 | 782.54 | 28.76 | - Staff costs, the largest component of operating expenses, increased by **38.42%** year-on-year, mainly due to the cessation of COVID-19 social insurance relief policies and an increase in employees[492](index=492&type=chunk)[493](index=493&type=chunk) - Taxes and surcharges increased by **31.87%** year-on-year, primarily because certain tax exemptions enjoyed in the prior year due to COVID-19 were no longer applicable[494](index=494&type=chunk) [Impairment Losses](index=18&type=section&id=Impairment%20Losses) In H1 2021, credit impairment losses decreased by 23.10% year-on-year due to fewer non-performing loan write-offs, but impairment losses on assets taken in lieu of debt significantly increased H1 2021 Major Components of Impairment Losses (RMB millions) | Item | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | Change Amount | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Credit impairment losses on loans and advances | 2,541.63 | 3,662.02 | (1,120.39) | (30.59) | | Credit impairment losses on financial investments | 803.42 | 982.79 | (179.37) | (18.25) | | Other credit impairment losses | 481.89 | 331.74 | 150.15 | 45.26 | | Total credit impairment losses | 3,826.94 | 4,976.55 | (1,149.61) | (23.10) | | Impairment losses on assets taken in lieu of debt | 8.70 | 1.61 | 7.09 | 440.37 | - Total credit impairment losses decreased by **RMB 1.15 billion**, a **23.10% decrease** year-on-year, mainly due to fewer non-performing loan write-offs in the current period[497](index=497&type=chunk) [Income Tax Expense](index=18&type=section&id=Income%20Tax%20Expense) In H1 2021, income tax expense was RMB 797 million, an increase of RMB 25 million year-on-year, primarily due to higher profit before tax, with an effective tax rate of 17.88% - Income tax expense was **RMB 797 million**, an increase of **RMB 25 million** year-on-year, mainly due to higher profit before tax[498](index=498&type=chunk) - The effective income tax rate was **17.88%**[498](index=498&type=chunk) [Statement of Financial Position Analysis](index=19&type=section&id=Statement%20of%20Financial%20Position%20Analysis) As of June 30, 2021, total assets reached RMB 1.09 trillion, growing 6.17% from year-end, with increased loans and financial investments, while customer deposits remained the primary funding source H1 2021 Statement of Financial Position Key Data (RMB millions) | Item | As of June 30, 2021 | Percentage of Total (%) | As of December 31, 2020 | Percentage of Total (%) | | :--- | :--- | :--- | :--- | :--- | | Net loans and advances | 619,653.42 | 56.78 | 553,168.34 | 53.82 | | Financial investments | 276,662.81 | 25.35 | 262,524.19 | 25.54 | | Total assets | 1,091,302.07 | 100.00 | 1,027,871.65 | 100.00 | | Customer deposits | 829,957.30 | 81.83 | 778,424.85 | 81.77 | | Total liabilities | 1,014,276.54 | 100.00 | 951,986.34 | 100.00 | | Total equity | 77,025.53 | 100.00 | 75,885.31 | 100.00 | [Assets](index=19&type=section&id=Assets) As of June 30, 2021, total assets reached RMB 1.09 trillion, a 6.17% increase from year-end, driven by growth in total loans and advances and financial investments - Total assets were **RMB 1.09 trillion**, an increase of **RMB 63.43 billion**, or **6.17%** from year-end[500](index=500&type=chunk) - Total loans and advances were **RMB 636.83 billion**, an increase of **RMB 67.90 billion**, or **11.93%** from year-end, mainly due to increased support for the real economy[500](index=500&type=chunk)[501](index=501&type=chunk) - Financial investments were **RMB 276.66 billion**, an increase of **RMB 14.14 billion**, or **5.39%** from year-end, mainly due to optimizing asset structure and increasing bond investments[500](index=500&type=chunk)[505](index=505&type=chunk) - Total bill discounts were **RMB 85.44 billion**, an increase of **RMB 36.70 billion**, or **75.30%** from year-end[501](index=501&type=chunk) - Mortgage and pledged loans accounted for **55.71%** of total loans, reflecting prudent risk management policies[504](index=504&type=chunk) [Liabilities](index=22&type=section&id=Liabilities) As of June 30, 2021, total liabilities reached RMB 1.01 trillion, a 6.54% increase from year-end, with customer deposits growing 6.62% and individual deposits accounting for 52.52% - Total liabilities were **RMB 1.01 trillion**, an increase of **RMB 62.29 billion**, or **6.54%** from year-end[507](index=507&type=chunk) - Customer deposits were **RMB 829.96 billion**, an increase of **RMB 51.53 billion**, or **6.62%** from year-end, representing the group's most important funding source[507](index=507&type=chunk)[509](index=509&type=chunk) - Individual deposits accounted for **52.52%**, with a balance increase of **RMB 39.67 billion**, or **10.01%** from year-end[509](index=509&type=chunk) - Demand deposits accounted for **36.15%**, a decrease of **1.57 percentage points** from year-end; time deposits accounted for **60.71%**, an increase of **1.63 percentage points** from year-end[509](index=509&type=chunk) [Composition of Shareholders' Equity](index=24&type=section&id=Composition%20of%20Shareholders'%20Equity) As of June 30, 2021, total shareholders' equity was RMB 77.03 billion, a 1.50% increase from year-end, with stable share capital and reserves, and increased retained earnings H1 2021 Composition of Shareholders' Equity (RMB millions) | Item | Amount as of June 30, 2021 | Percentage of Total (%) | Amount as of December 31, 2020 | Percentage of Total (%) | | :--- | :--- | :--- | :--- | :--- | | Share capital | 9,808.27 | 12.73 | 9,808.27 | 12.92 | | Preference shares | 9,820.73 | 12.75 | 9,820.73 | 12.94 | | Capital reserve | 10,919.38 | 14.18 | 10,952.99 | 14.43 | | Surplus reserve | 5,055.78 | 6.56 | 5,055.78 | 6.66 | | General risk reserve | 12,944.07 | 16.81 | 12,944.07 | 17.06 | | Retained earnings | 21,700.49 | 28.17 | 21,138.63 | 27.86 | | Total shareholders' equity | 77,025.53 | 100.00 | 75,885.31 | 100.00 | - Paid-in capital was **RMB 9.81 billion**, and capital reserve was **RMB 10.92 billion**, both unchanged from year-end[510](index=510&type=chunk) [Loan Quality Analysis](index=25&type=section&id=Loan%20Quality%20Analysis) As of June 30, 2021, the non-performing loan ratio decreased to 1.77%, and special mention loans also declined, indicating continuous asset quality improvement, despite an increase in total overdue loans - Non-performing loan ratio was **1.77%**, a decrease of **0.04 percentage points** from year-end[513](index=513&type=chunk) - Special mention loans accounted for **3.76%**, a decrease of **0.66 percentage points** from year-end[513](index=513&type=chunk) - Non-performing corporate loan balance was **RMB 9.65 billion**, an increase of **RMB 871 million** from year-end, mainly due to increased non-performing loans in wholesale and retail trade and construction industries[515](index=515&type=chunk)[517](index=517&type=chunk) - Total overdue loans were **RMB 19.36 billion**, an increase of **RMB 6.82 billion** from year-end, with overdue loans over 3 months increasing by **RMB 4.86 billion**[518](index=518&type=chunk) - Restructured loans and advances were **RMB 6.25 billion**, a decrease of **RMB 424 million** from year-end[519](index=519&type=chunk) [Five-Category Loan Classification](index=25&type=section&id=Five-Category%20Loan%20Classification) As of June 30, 2021, normal loans accounted for 94.47%, and the non-performing loan ratio was 1.77%, a slight decrease from year-end, indicating a stable loan risk classification structure H1 2021 Five-Category Loan Classification (RMB millions) | Item | Amount as of June 30, 2021 | Percentage of Total (%) | Amount as of December 31, 2020 | Percentage of Total (%) | | :--- | :--- | :--- | :--- | :--- | | Normal | 601,611.59 | 94.47 | 533,499.04 | 93.77 | | Special Mention | 23,912.37 | 3.76 | 25,117.15 | 4.42 | | Substandard | 4,541.05 | 0.71 | 2,829.24 | 0.50 | | Doubtful | 6,125.65 | 0.96 | 6,211.36 | 1.09 | | Loss | 634.33 | 0.10 | 1,269.38 | 0.22 | | Total loans and advances | 636,824.99 | 100.00 | 568,926.17 | 100.00 | | Non-performing loan ratio | 1.77 | – | 1.81 | – | [Distribution of Non-Performing Corporate Loans by Industry](index=26&type=section&id=Distribution%20of%20Non-Performing%20Corporate%20Loans%20by%20Industry) As of June 30, 2021, total non-performing corporate loans were RMB 9.65 billion, with wholesale and retail, leasing and business services, and construction being major sources, and increases in wholesale and retail and construction H1 2021 Non-Performing Corporate Loan Distribution (RMB millions) | Item | Amount as of June 30, 2021 | Percentage of Total (%) | NPL Ratio (%) | Amount as of December 31, 2020 | Percentage of Total (%) | NPL Ratio (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Wholesale and retail trade | 2,485.22 | 25.76 | 3.78 | 1,376.26 | 15.68 | 2.22 | | Real estate | 1,126.18 | 11.68 | 1.87 | 1,217.20 | 13.87 | 2.06 | | Leasing and business services | 2,672.98 | 27.71 | 2.81 | 2,921.50 | 33.29 | 3.42 | | Manufacturing | 731.24 | 7.58 | 1.78 | 643.66 | 7.33 | 1.66 | | Construction | 1,115.70 | 11.56 | 2.88 | 312.59 | 3.56 | 0.80 | | Transportation, warehousing and postal services | 766.42 | 7.94 | 7.44 | 1,065.51 | 12.14 | 10.54 | | Agriculture, forestry, animal husbandry and fishery | 497.30 | 5.15 | 4.87 | 975.09 | 11.11 | 9.49 | | Total non-performing corporate loans | 9,647.30 | 100.00 | 2.40 | 8,776.70 | 100.00 | 2.31 | - Non-performing loans in wholesale and retail trade increased from year-end, mainly due to individual clients' stock price declines, tight liquidity, and the impact of the pandemic[515](index=515&type=chunk) - Non-performing loans in the construction industry increased from year-end, mainly due to developers' arrears on project payments and tight liquidity caused by the pandemic[515](index=515&type=chunk) [Distribution of Non-Performing Loans by Product Type](index=27&type=section&id=Distribution%20of%20Non-Performing%20Loans%20by%20Product%20Type) As of June 30, 2021, total non-performing loans were RMB 11.30 billion, with corporate loans having the highest proportion, and individual operating loans having the highest NPL ratio among personal loans H1 2021 Non-Performing Loan Product Type Distribution (RMB millions) | Item | Amount as of June 30, 2021 | Percentage of Total (%) | NPL Ratio (%) | Amount as of December 31, 2020 | Percentage of Total (%) | NPL Ratio (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Corporate loans | 9,647.30 | 100.00 | 2.40 | 8,776.70 | 100.00 | 2.31 | | Personal loans | 1,653.73 | 100.00 | 1.11 | 1,533.28 | 100.00 | 1.09 | | ├─ Personal mortgage loans | 280.90 | 16.99 | 0.40 | 288.65 | 18.83 | 0.43 | | ├─ Personal operating loans | 887.14 | 53.64 | 1.46 | 728.60 | 47.52 | 1.34 | | ├─ Personal consumption loans | 201.24 | 12.17 | 2.14 | 221.45 | 14.44 | 2.33 | | └─ Credit card balances | 284.45 | 17.20 | 3.19 | 294.58 | 19.21 | 3.30 | | Total non-performing loans | 11,301.03 | 100.00 | 1.77 | 10,309.98 | 100.00 | 1.81 | [Overdue Customer Loans](index=28&type=section&id=Overdue%20Customer%20Loans) As of June 30, 2021, total overdue loans were RMB 19.36 billion, accounting for 3.04% of total loans, an increase from year-end, with a significant rise in loans overdue for more than 3 months H1 2021 Overdue Customer Loans (RMB millions) | Item | Amount as of June 30, 2021 | Percentage of Total (%) | Amount as of December 31, 2020 | Percentage of Total (%) | | :--- | :--- | :--- | :--- | :--- | | Non-overdue loans | 617,464.55 | 96.96 | 556,383.67 | 97.80 | | Overdue loans | 19,360.44 | 3.04 | 12,542.50 | 2.20 | | ├─ Within 3 months | 6,942.53 | 1.09 | 4,983.21 | 0.87 | | ├─ Over 3 months to 1 year | 7,721.77 | 1.21 | 5,606.14 | 0.99 | | ├─ Over 1 year to 3 years | 4,384.45 | 0.69 | 1,603.10 | 0.28 | | └─ Over 3 years | 311.69 | 0.05 | 350.05 | 0.06 | | Total loans and advances | 636,824.99 | 100.00 | 568,926.17 | 100.00 | | Loans overdue for more than 3 months | 12,417.91 | 1.95 | 7,559.29 | 1.33 | [Restructured Loans and Advances](index=28&type=section&id=Restructured%20Loans%20and%20Advances) As of June 30, 2021, the balance of restructured loans and advances was RMB 6.25 billion, a decrease of RMB 424 million from year-end, indicating a reduction in restructured loan volume H1 2021 Restructured Loans and Advances (RMB millions) | Item | Amount as of June 30, 2021 | Percentage of Total (%) | Amount as of December 31, 2020 | Percentage of Total (%) | | :--- | :--- | :--- | :--- | :--- | | Restructured loans and advances | 6,245.31 | 0.98 | 6,669.32 | 1.17 | [Capital Adequacy Ratio Analysis](index=29&type=section&id=Capital%20Adequacy%20Ratio%20Analysis) As of June 30, 2021, the capital adequacy ratio was 11.98%, a 0.58 percentage point decrease from year-end, primarily due to risk-weighted assets growing faster than net capital, though still meeting regulatory requirements H1 2021 Capital Adequacy Ratio Indicators (RMB millions) | Item | As of June 30, 2021 | As of December 31, 2020 | | :--- | :--- | :--- | | Core Tier 1 capital adequacy ratio | 8.87% | 9.20% | | Tier 1 capital adequacy ratio | 10.34% | 10.74% | | Capital adequacy ratio | 11.98% | 12.56% | | Net capital | 82,211.77 | 82,469.59 | | Risk-weighted assets | 686,307.86 | 656,572.37 | - Capital adequacy ratio decreased by **0.58 percentage points**, mainly because the growth rate of risk-weighted assets exceeded that of net capital from year-end[521](index=521&type=chunk) - Net capital decreased by **RMB 258 million**, a **0.31% decrease**, primarily due to dividend provisions and reduced excess loan loss provisions in H1[521](index=521&type=chunk) - Risk-weighted assets increased by **RMB 29.74 billion**, a **4.53% increase**, mainly due to increased credit risk-weighted assets for on- and off-balance sheet items and market risk-weighted assets[521](index=521&type=chunk) [Leverage Ratio Analysis](index=30&type=section&id=Leverage%20Ratio%20Analysis) As of June 30, 2021, the group's leverage ratio was 6.12%, which complies with regulatory requirements H1 2021 Leverage Ratio (RMB millions) | Item | As of June 30, 2021 | | :--- | :--- | | Net Tier 1 capital | 70,996.58 | | Adjusted on- and off-balance sheet assets | 1,159,234.34 | | Leverage ratio (%) | 6.12 | [Segment Information](index=30&type=section&id=Segment%20Information) The group primarily operates in Guangdong Province, China, with corporate banking and retail banking being the main revenue contributors in H1 2021, accounting for 52.89% and 30.87% of total operating income, respectively - The group primarily operates in Guangdong Province, China, with major customers and non-current assets located in Guangdong Province[523](index=523&type=chunk) H1 2021 Operating Income Segment Summary (RMB millions) | Item | Amount for Six Months Ended June 30, 2021 | Percentage of Total | | :--- | :--- | :--- | | Corporate banking business | 6,239.51 | 52.89 | | Retail banking business | 3,641.66 | 30.87 | | Financial markets business | 1,738.43 | 14.74 | | Others | 176.61 | 1.50 | | Total operating income | 11,796.21 | 100.00 | [Off-Balance Sheet Items](index=30&type=section&id=Off-Balance%20Sheet%20Items) As of June 30, 2021, the group's off-balance sheet items included significant amounts of loan commitments, accepted bills, unused credit card limits, issued guarantees, and issued letters of credit - As of June 30, 2021, the balances of loan commitments, accepted bills, unused credit card limits, issued guarantees, and issued letters of credit were **RMB 136.05 billion**, **RMB 30.39 billion**, **RMB 15.95 billion**, **RMB 43.25 billion**, and **RMB 2.54 billion**, respectively[524](index=524&type=chunk) [Contingent Liabilities and Pledged Assets](index=30&type=section&id=Contingent%20Liabilities%20and%20Pledged%20Assets) Details regarding the group's contingent liabilities and pledged assets are available in Notes 40 and 42 to the condensed consolidated financial statements - Details of contingent liabilities and pledged assets can be found in Notes 40 and 42 to the condensed consolidated financial statements[525](index=525&type=chunk) [Business Operations](index=31&type=section&id=Business%20Operations) In H1 2021, the group achieved steady development across corporate, retail, financial markets, inclusive finance, and "Sannong" (agriculture, rural areas, and farmers) businesses, enhancing financial services through innovation and technology [Corporate Banking Business](index=31&type=section&id=Corporate%20Banking%20Business) The bank's corporate banking focused on deposit growth, leveraging its municipal bank status to expand government platform deposits, supporting the real economy, and innovating loan products and digital transaction banking services - The bank focused on the "deposit-first" philosophy, consolidating traditional village and community business advantages, strengthening corporate deposit marketing, and expanding government platform deposits[526](index=526&type=chunk) - Corporate loan business supported real economic development, contributed to the Guangdong-Hong Kong-Macao Greater Bay Area construction, and launched innovative products like "Jinmi College Loan," "Jinmi Project Loan," and "Jinmi Carbon Emission Right Mortgage Loan"[527](index=527&type=chunk) - Transaction banking focused on product R&D and system platform construction, creating "Cloud Treasury" cash management services, optimizing bank-enterprise cloud connectivity, and promoting online supply chain finance and cross-border financial services[528](index=528&type=chunk)[529](index=529&type=chunk) [Personal Banking Business](index=32&type=section&id=Personal%20Banking%20Business) The bank's personal banking business centered on customers, achieving steady deposit growth, supporting housing demand, exploring digital transformation in loans, focusing on low-to-medium risk wealth management products, and expanding bank card services - Personal deposit business focused on high-frequency daily scenarios, creating differentiated and exclusive deposit products, maintaining the second rank in personal savings deposit scale among peers in Guangzhou[530](index=530&type=chunk) - Personal loan business continued to implement real estate regulation policies, supported residents' housing needs, and intensified exploration of digital transformation for consumer loans[531](index=531&type=chunk) - Personal wealth management focused sales on low-to-medium risk products, innovatively launching the "Jinmi Jiafu" series of net-value wealth management products, promoting net-value transformation[532](index=532&type=chunk) - Bank card business actively expanded to special customer segments, upgraded social security card services, issued **376,200 new personal debit cards**, and accumulated **1.83 million credit cards**[533](index=533&type=chunk) [Financial Markets Business](index=34&type=section&id=Financial%20Markets%20Business) In H1 2021, the bank's financial markets business optimized investment decisions, enhanced research capabilities, and significantly advanced net-value wealth management, with product balances growing 57.87%, and bill rediscount transaction volume increasing 162.94% - The bank continuously improved its investment decision-making mechanism, enhanced investment research and market judgment capabilities, optimized investment structure, and effectively controlled investment duration[534](index=534&type=chunk) - As of the end of June 2021, the balance of net-value wealth management products was **RMB 50.09 billion**, an increase of **57.87%** from the beginning of the year[534](index=534&type=chunk) - In the Puyi Standard Q1 2021 national wealth management capability ranking, the bank ranked first among rural financial institutions in overall wealth management, operational management, and investor service systems[534](index=534&type=chunk) - In H1 2021, bill rediscount business transaction volume increased by **162.94%** year-on-year, and the rediscount balance increased by **75.16%** from the beginning of the year[534](index=534&type=chunk) - Actively promoted cross-border financial cooperation innovation in the Guangdong-Hong Kong-Macao Greater Bay Area, launched Guangzhou's first interbank lending business with a Macao RMB clearing bank, and participated in the subscription of the first batch of infrastructure public REITs nationwide[535](index=535&type=chunk) [Inclusive Finance Business](index=35&type=section&id=Inclusive%20Finance%20Business) The bank's inclusive finance business actively responded to regulatory policies, with inclusive small and micro enterprise loan balances reaching RMB 35.52 billion, growing 12.47%, and an NPL ratio of 1.06%, enhancing service accessibility through network expansion, product innovation, and fintech - Inclusive small and micro enterprise loan balance was **RMB 35.52 billion**, an increase of **RMB 3.94 billion** from the beginning of the year, a growth rate of **12.47%**[536](index=536&type=chunk) - The number of small and micro enterprise customers was **29,564**, an increase of **5,016** from the beginning of the year, with a small and micro loan NPL ratio of **1.06%**, meeting targets[536](index=536&type=chunk) - Actively implemented the PBOC's re-lending policy for small businesses, disbursing **RMB 42.53 billion** in eligible loans and obtaining **RMB 18.06 billion** in re-lending funds[537](index=537&type=chunk) - Improved the inclusive finance specialized system, establishing **13 inclusive and small and micro business centers** and **2 inclusive finance community banks** in Guangzhou[538](index=538&type=chunk) - Launched "Jinmi Small and Micro Loan • Entrepreneurship Guarantee Loan" and optimized "Jinmi • Poverty Alleviation Microcredit" products, actively connecting with government public data platforms to enhance intelligent risk control capabilities[539](index=539&type=chunk)[540](index=540&type=chunk) - Promoted grid-based inclusive small and micro financial services in villages, communities, and specialized markets, with **RMB 5.36 billion** in operating loans disbursed to villages and communities[541](index=541&type=chunk) - Actively built "whole village credit" demonstration credit villages for rural finance, promoting rural credit system construction[542](index=542&type=chunk) ["Sannong" Financial Business](index=37&type=section&id=Sannong%20Financial%20Business) The bank continued to deepen its "Sannong" finance, with agricultural-related loan balances reaching RMB 40.80 billion, growing 6.36%, and inclusive agricultural-related loans growing 8.29%, supporting rural revitalization through policy optimization, re-lending, product innovation, and "Internet+Finance" models - As of the end of the reporting period, the bank's agricultural-related loan balance was **RMB 40.80 billion**, an increase of **RMB 2.44 billion** from the beginning of the year, a growth rate of **6.36%**[544](index=544&type=chunk) - Inclusive agricultural-related loan scale reached **RMB 6.71 billion**, an increase of **RMB 513 million** from the beginning of the year, a growth rate of **8.29%**[544](index=544&type=chunk) - Launched optimized "Sannong" business policies, established a strategic positioning for agricultural support, strengthened performance appraisal and financial resource allocation, and set up green approval channels[545](index=545&type=chunk)[546](index=546&type=chunk) - Disbursed **RMB 3.66 billion** in agricultural-related loans meeting re-lending policy requirements, benefiting **1,161 farmers and agricultural enterprises**[547](index=547&type=chunk) - Innovatively launched "Jinmi Rural Revitalization Forest Easy Loan" (Guangzhou's first loan product secured by ecological public welfare forest compensation rights), and promoted "Jinmi Rural Revitalization Agricultural Loan," "Jinmi Rural Revitalization Pig Farming Loan," and "Jinmi Urban Renewal Village Park Loan"[548](index=548&type=chunk) - Continued to advance the "Ten-Hundred-Thousand Demonstration Project" for mobile payment applications in rural areas, improving the rural payment environment, with **845 merchants** in Guangzhou completing "one-code-for-all" mobile payment upgrades[549](index=549&type=chunk) [Distribution Channels](index=39&type=section&id=Distribution%20Channels) The bank's diversified distribution channels include 635 physical branches, 2,595 self-service devices, 242 smart bank outlets, and internet finance platforms, with internet finance customer numbers and transaction volumes growing, and the e-commerce platform supporting "Sannong" and rural revitalization - As of June 30, 2021, the bank had **635 branches**, including **617 in Guangzhou** and **18 in other Guangdong cities**[551](index=551&type=chunk) - The total number of ATMs, self-service inquiry terminals, and smart service terminals reached **2,595**, with **242 smart bank outlets**[551](index=551&type=chunk) - Mobile banking had approximately **3.92 million customers**, with **8.60 million financial transactions** totaling **RMB 241.14 billion**[552](index=552&type=chunk) - Online banking had approximately **1.94 million individual customers**, and **25,300 corporate online banking customers**, with **RMB 584.84 billion** in transactions[553](index=553&type=chunk) - Direct banking had approximately **1.09 million customers**, with **347,800 financial transactions** totaling **RMB 10.31 billion**[554](index=554&type=chunk) - The e-commerce platform (Jinmi Market) accumulated **960,000 customers**, with **82,000 orders** for agricultural poverty alleviation and a transaction volume of **RMB 3.8 million** in H1[556](index=556&type=chunk) [Major Subsidiaries](index=41&type=section&id=Major%20Subsidiaries) The group owns 30 subsidiaries, including 25 Pearl River Village Banks, 1 Pearl River Financial Leasing Co., Ltd., and 4 strategically controlled rural commercial banks, operating in 9 provinces and cities across China - As of June 30, 2021, the bank had established **25 Pearl River Village Banks** in **9 provinces and cities** nationwide[557](index=557&type=chunk) - The bank wholly-owned and established Pearl River Financial Leasing Co., Ltd., with a registered capital of **RMB 1 billion**[557](index=557&type=chunk) - Strategically controls four rural commercial banks: Hunan Zhuzhou Pearl River Rural Commercial Bank, Chaozhou Rural Commercial Bank, Guangdong Nanxiong Rural Commercial Bank, and Shaoguan Rural Commercial Bank[557](index=557&type=chunk) [Information Technology](index=42&type=section&id=Information%20Technology) In H1 2021, the bank's information systems operated stably, with no unplanned outages. The bank enhanced tech governance, information security, and business continuity, investing in fintech and launching 13 projects - In H1 2021, all important information systems of the bank operated stably, with no unplanned system outages[558](index=558&type=chunk) - Strengthened technology governance capabilities, promoted digital transformation and fintech development, and deepened the integration of business and technology[559](index=559&type=chunk) - Continuously strengthened the information security assurance system, upgraded security protection equipment in key network areas, and conducted information security assessments and all-staff training[560](index=560&type=chunk) - Conducted disaster recovery drills for important information systems in the same city and business continuity drills to enhance emergency response capabilities[561](index=561&type=chunk) - Continuously increased investment in fintech resources, applying big data, cloud computing, artificial intelligence, and other emerging technologies, with **13 fintech projects** launched in H1[562](index=562&type=chunk) [Human Resources Management](index=43&type=section&id=Human%20Resources%20Management) As of June 30, 2021, the group's total employees were 13,810. The bank focused on enhancing employee professional quality through "Pearl River Business School" training, organizing 166 programs covering over 22,000 participants - As of June 30, 2021, the group's total number of employees was **13,810**, a decrease of **131** from the end of 2020[563](index=563&type=chunk) - In H1 2021, the bank organized **166 training programs**, including **59 online live training sessions**, covering over **22,000 participants**, with an average of **50 hours** of online learning per person[564](index=564&type=chunk) - Held workshops for retail and corporate client manager curriculum system development, optimizing learning and growth paths to cultivate specialized talent[564](index=564&type=chunk) [Risk Management](index=43&type=section&id=Risk%20Management) In H1 2021, the group comprehensively advanced risk management, enhancing credit, liquidity, market, operational, reputational, and IT risk controls, maintaining overall controllable risks and effective internal controls - The group comprehensively promoted risk management to address shortcomings, improve overall risk management, and effectively enhance risk prevention and mitigation capabilities[565](index=565&type=chunk) - During the reporting period, the group's risks were generally controllable, internal control management was effective, and risk management capabilities and levels continuously improved[565](index=565&type=chunk) - In H1 2021, the group's credit risk was generally controllable, with the non-performing loan ratio within the control target[567](index=567&type=chunk) - In H1 2021, the group's liquidity risk was generally controllable, with no major liquidity risk events, and all key liquidity risk indicators met targets each month[569](index=569&type=chunk) [Credit Risk Management](index=43&type=section&id=Credit%20Risk%20Management) The group continuously optimized risk control policies, strengthened full-process credit risk management, implemented a principal responsibility system, and advanced risk management system construction to enhance credit risk prevention - Optimized risk control policies, strengthened access management in high-risk areas, and enhanced financial support for the real economy[567](index=567&type=chunk) - Strengthened full-process credit risk management, enhancing risk prevention and control throughout pre-loan, in-loan, and post-loan stages[567](index=567&type=chunk) - Introduced a principal responsibility system for operations, strengthening the principle of equal rights, responsibilities, and benefits for operating principals[567](index=567&type=chunk) - Promoted the construction of risk management system clusters, expanding the introduction of external risk information to support intelligent and digital risk management[567](index=567&type=chunk) [Liquidity Risk Management](index=44&type=section&id=Liquidity%20Risk%20Management) The group strengthened centralized liquidity risk management through fund position management, liquidity risk limit monitoring, stress testing, and emergency drills, maintaining overall controllable liquidity risk in H1 2021 - Utilized a fund position system for daily position management, centralizing dispatch, timely monitoring, and timely replenishment to ensure payment safety[569](index=569&type=chunk) - Set liquidity risk limits quarterly, monitored monthly, and assessed quarterly the implementation of risk limits to ensure controllable liquidity risk[569](index=569&type=chunk) - Conducted quarterly liquidity risk stress tests to assess the group's ability to withstand liquidity risk pressure and its risk mitigation capabilities[569](index=569&type=chunk) - Regularly conducted liquidity risk emergency drills to improve the group's response efficiency in crisis situations[569](index=569&type=chunk) [Market Risk Management](index=45&type=section&id=Market%20Risk%20Management) The group continuously monitored monetary policy and market price fluctuations, enhancing market risk management through basic investment policies, a low-risk appetite, a comprehensive credit bond risk monitoring mechanism, and professional talent development - Formulated basic investment policies, maintained a low-risk appetite, and promoted business transformation towards fixed income, trading, position management, and active management[570](index=570&type=chunk) - Established a comprehensive on- and off-balance sheet credit bond risk monitoring mechanism, implementing the look-through principle to dynamically track underlying bond holdings[570](index=570&type=chunk) - Strengthened the professional talent team, enhancing cooperation and exchange with external excellent investment research teams to continuously improve employee professionalism[570](index=570&type=chunk) [Operational Risk Management](index=45&type=section&id=Operational%20Risk%20Management) The group continuously strengthened operational process management, revised operational risk management methods, set key risk indicators, addressed business continuity risks, and enhanced IT outsourcing risk assessment and employee behavior screening to prevent operational risk events - Revised the bank's operational risk management methods, further clarifying responsibilities and management requirements, and setting **54 key risk indicators**[572](index=572&type=chunk) - Continuously addressed business continuity risks, revised the bank's business continuity plan, and improved drill effectiveness[572](index=572&type=chunk) - Conducted security assessments for important IT outsourcing risks such as card issuance, system hosting, and IT R&D[572](index=572&type=chunk) - Strengthened employee behavior screening, investigating and verifying long-standing undisclosed cases of employee misconduct[572](index=572&type=chunk) [Reputational Risk Management](index=46&type=section&id=Reputational%20Risk%20Management) In H1 2021, the bank established and improved its reputational risk management mechanism, actively preventing and responding to negative public opinion, effectively maintaining a good market image, with no major reputational risk events occurring - Established and improved the reputational risk management mechanism, actively preventing reputational risks and responding to negative public opinion events[573](index=573&type=chunk) - During the reporting period, the bank experienced no major reputational risk events[573](index=573&type=chunk) [Implementation of Basel Capital Accord](index=46&type=section&id=Implementation%20of%20Basel%20Capital%20Accord) The group continued to implement the new Basel Capital Accord, optimizing risk-weighted asset measurement systems, improving data quality, formulating annual risk appetite statements, and participating in the PBOC's annual banking FSAP stress test - Continuously optimized the construction of risk-weighted asset measurement systems, improving basic data quality and enhancing automated data collection and refined calculation levels[574](index=574&type=chunk) - Formulated annual risk appetite statements and indicator systems, and initiated the non-retail internal rating optimization and upgrade project[574](index=574&type=chunk) - Cooperated in completing the People's Bank of China's annual banking FSAP stress test[574](index=574&type=chunk) [Anti-Money Laundering Status](index=46&type=section&id=Anti-Money%20Laundering%20Status) In H1 2021, the group strictly adhered to regulatory requirements, increased human resources, strengthened internal controls, improved its AML organizational structure, optimized information systems, and conducted AML awareness and training programs - Strictly implemented regulatory requirements, increased human resource investment, strengthened internal controls, and improved an AML organizational management system with clear responsibilities and coordinated divisions of labor[575](index=575&type=chunk) - Improved internal control systems, detailing management regulations for customer due diligence and money laundering risk assessment[576](index=576&type=chunk) - Continuously optimized and upgraded AML information systems and related systems to enhance technical support for money laundering risk management[576](index=576&type=chunk) - Diligently organized AML awareness and training programs to enhance public awareness of AML and the professional quality of frontline staff[576](index=576&type=chunk) [Information Technology Risk Status](index=47&type=section&id=Information%20Technology%20Risk%20Status) In H1 2021, the bank continuously strengthened its IT risk monitoring, assessment, and disposal mechanisms, revised quantitative risk indicators, conducted IT outsourcing risk assessments, and completed customer service system disaster recovery drills - Continuously strengthened IT risk monitoring, assessment, and disposal mechanisms, reviewing and revising quantitative IT risk monitoring indicators[577](index=577&type=chunk) - Conducted IT outsourcing risk assessments, strengthening risk management for important outsourcing suppliers such as card issuance, R&D outsourcing, and system hosting[577](index=577&type=chunk) - Completed disaster recovery drills for the customer service system in the same city, ensuring timely and high-quality implementation of business continuity risk remediation requirements[577](index=577&type=chunk) [Internal Audit](index=47&type=section&id=Internal%20Audit) The bank established an independent and vertical audit management system, with the Audit Department fulfilling its supervisory role as the third line of defense, actively innovating management and expanding audit coverage to identify and prevent major risks - The bank established an independent and vertical audit management system, with the Audit Department coordinating the bank's audit work under the leadership and guidance of the Board of Directors, Party Committee, and Supervisory Board[578](index=578&type=chunk) - The Audit Department fully exercised its audit and supervision function as the third line of defense, continuously improving the bank's operations management, risk management, internal control compliance, and corporate governance through auditing, evaluation, and supervision of rectification[578](index=578&type=chunk) - During the reporting period, the Audit Department actively promoted management innovation, categorized audit projects, adopted integrated and embedded organizational methods, and strengthened project process control[579](index=579&type=chunk) - Guided by risk, the department focused on key areas, matters, businesses, and links to expand audit supervision coverage, timely identify major risk hidden dangers, and play a role in "curing existing problems and preventing future ones"[579](index=579&type=chunk) [Outlook](index=48&type=section&id=Outlook) China's economy recovered quickly in H1 2021, but growth momentum is expected to slow in H2. The bank maintained stable operations in H1 and will focus on rural, industrial, wealth, and consumer finance to enhance competitiveness in the Greater Bay Area - In H1 2021, China's macroeconomy recovered rapidly from the pandemic's impact, but growth momentum is expected to slow in H2, with slow consumption recovery, weak infrastructure, and easing pressure from rising commodity prices[580](index=580&type=chunk) - Economic growth is projected to return to its potential level in Q4, with full-year growth around **8%**[580](index=580&type=chunk) - The bank maintained stable operations in H1 2021, with steady growth in assets and liabilities, stable asset quality, and resilient profitability[580](index=580&type=chunk) - In H2, the bank will focus on four core business directions: rural finance, industrial finance, wealth finance, and consumer finance, optimizing credit resource allocation, enhancing business and product innovation, and deepening its presence in the Greater Bay Area to improve core competitiveness[580](index=580&type=chunk) [Changes in Share Capital and Shareholder Information](index=49&type=section&id=Changes%20in%20Share%20Capital%20and%20Shareholder%20Information) [Table of Changes in Share Capital](index=49&type=section&id=Table%20of%20Changes%20in%20Share%20Capital) As of June 30, 2021, the bank's total share capital remained 9.81 billion shares, with non-H shares accounting for 81.44% and H shares for 18.56% Changes in Share Capital (Shares, %) | Item | Number as of December 31, 2020 | Proportion | Change in Reporting Period | Number as of June 30, 2021 | Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Share Capital | 9,808,268,539 | 100 | – | 9,808,268,539 | 100 | | Non-H Shares | 7,987,933,539 | 81.44 | – | 7,987,933,539 | 81.44 | | H Shares | 1,820,335,000 | 18.56 | – | 1,820,335,000 | 18.56 | - As of the end of the reporting period, the bank had **29,147 non-H share shareholders** and **90 H-share shareholders**[582](index=582&type=chunk) - **37,258,888 non-H shares** of the bank were subject to judicial freezing, accounting for **0.38%** of the bank's total share capital[582](index=582&type=chunk) [Shareholder Holding Status](index=49&type=section&id=Shareholder%20Holding%20Status) As of June 30, 2021, the bank's total share capital was 9.81 billion shares, with a dispersed ownership structure and no controlling shareholder. The top ten shareholders collectively held 41.56% - As of June 30, 2021, the bank's total share capital was **9.81 billion shares**, including **7.99 billion non-H shares** and **1.82 billion H shares**[583](index=583&type=chunk) - There were **715 non-H share corporate shareholders** holding **5.51 billion shares**, accounting for **56.20%** of total share capital; **28,432 non-H share individual shareholders** holding **2.48 billion shares**, accounting for **25.24%** of total share capital[583](index=583&type=chunk) - The bank has no controlling shareholder or actual controller[587](index=587&type=chunk) Top Ten Shareholders as of June 30, 2021 | No. | Name | Shareholder Type | Shareholder Nature | Number of Shares | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | 1 | HKSCC Nominees Limited | H-share | Other | 1,819,982,900 | 18.56 | | 2 | Guangzhou Financial Holdings Group Co., Ltd. | Non-H share | State-owned legal person | 366,099,589 | 3.73 | | 3 | Guangzhou Zhujiang Industrial Group Co., Ltd. | Non-H share | State-owned legal person | 338,185,193 | 3.45 | | 4 | Guangzhou Wanli Group Co., Ltd. | Non-H share | State-owned legal person | 319,880,672 | 3.26 | | 5 | Guangzhou Radio Group Co., Ltd. | Non-H share | State-owned legal person | 310,728,411 | 3.17 | | 6 | Shanghai Dazhan Investment Management Co., Ltd. | Non-H share | Non-state-owned legal person | 250,000,000 | 2.55 | | 7 | Guangzhou Commercial Trade Investment Holdings Group Co., Ltd. | Non-H share | State-owned legal person | 191,749,019 | 1.95 | | 8 | Nanjing Gaoke Co., Ltd. | Non-H share | Non-state-owned legal person | 180,000,000 | 1.84 | | 9 | Guangdong Zhujiang Highway Bridge Investment Co., Ltd. | Non-H share | Non-state-owned legal person | 160,020,000 | 1.63 | | 10 | Shenzhen Weilv Investment Holdings Co., Ltd. | Non-H share | Non-state-owned legal person | 140,010,000 | 1.43 | | Total | | | | 4,076,655,784 | 41.56 | - As of June 30, 2021, the bank had **5,689 internal employee shareholders** holding **371 million shares**, accounting for **3.78%** of total share capital[587](index=587&type=chunk) [Information on Overseas Non-Public Issuance of Preference Shares](index=57&type=section&id=Information%20on%20Overseas%20Non-Public%20Issuance%20of%20Preference%20Shares) The bank issued USD 1.43 billion in non-cumulative perpetual overseas preference shares in June 2019, listed on HKEX, with proceeds used to supplement Tier 1 capital, and a dividend of USD 93.74 million distributed in June 2021 - The bank issued **USD 1.43 billion** in non-cumulative perpetual overseas preference shares on June 20, 2019, listed on the Hong Kong Stock Exchange on June 21, 2019 (stock code: 04618)[597](index=597&type=chunk) - The total proceeds from this overseas preference share issuance were approximately **RMB 9.84 billion**, all used to supplement the bank's other Tier 1 capital and improve its Tier 1 capital adequacy ratio[597](index=597&type=chunk) - As of the end of the reporting period, the bank had **1 overseas preference shareholder**[598](index=598&type=chunk) - On June 20, 2021, a dividend of **USD 93,744,444.44** was distributed for overseas preference shares, with **USD 84,370,000** paid to holders and **USD 9,374,444.44** withheld for income tax[601](index=601&type=chunk) - During the reporting period, there were no repurchases, conversions to ordinary shares, or restoration of voting rights for overseas preference shares, nor did any trigger conditions for mandatory conversion to H shares occur[602](index=602&type=chunk) [Information on Directors, Supervisors, and Senior Management](index=59&type=section&id=Information%20on%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) [The Bank's Directors](index=59&type=section&id=The%20Bank's%20Directors) As of the latest practicable date, the Board of Directors comprised 15 members, including 3 executive, 7 non-executive, and 5 independent non-executive directors, with new appointments in February 2021 - As of the latest practicable date, the bank's Board of Directors consisted of **15 directors**: **3 executive directors**, **7 non-executive directors**, and **5 independent non-executive directors**[603](index=603&type=chunk) - Mr. Cai Jian serves as Party Committee Secretary and Chairman, Mr. Yi Xuefei as Deputy Party Committee Secretary, Vice Chairman, and President, and Mr. Zhang Jian as Deputy Party Committee Secretary[603](index=603&type=chunk) - On February 23, 2021, the bank held its first extraordinary general meeting in 2021, appointing directors for the third Board of Directors[603](index=603&type=chunk) [The Bank's Supervisors](index=59&type=section&id=The%20Bank's%20Supervisors) As of June 30, 2021, the Supervisory Board comprised 9 members, including 3 employee supervisors, 3 external supervisors, and 3 shareholder supervisors, with new appointments in February 2021 - As of June 30, 2021, the bank's Supervisory Board consisted of **9 supervisors**: **3 employee supervisors**, **3 external supervisors**, and **3 shareholder supervisors**[604](index=604&type=chunk) - The bank completed the re-election of the third Supervisory Board in February 2021[604](index=604&type=chunk) [The Bank's Senior Management](index=59&type=section&id=The%20Bank's%20Senior%20Management) As of June 30, 2021, the bank's senior management team included 7 members, with Mr. Tan Bo appointed as Board Secretary and Mr. Li Yaguang proposed as Vice President - As of June 30, 2021, the bank's senior management team comprised **7 members**, including Mr. Yi Xuefei (President), Mr. Zhao Wei (Head of Discipline Inspection and Supervision Group), Mr. Chen Jianming and Mr. Lin Ripeng (Vice Presidents), Mr. Tan Bo (Assistant President), Ms. Chen Linjun and Ms. Yang Xuan (Business Directors)[605](index=605&type=chunk) - Mr. Tan Bo was appointed as the bank's Company Secretary and obtained his qualification approval on July 23, 2021[606](index=606&type=chunk) - Mr. Li Yaguang's appointment as the bank's Vice President was approved by the Board of Directors on August 13, 2021, pending regulatory approval of his qualifications[606](index=606&type=chunk) [Biographies of the Bank's Directors, Supervisors, and Senior Management](index=60&type=section&id=Biographies%20of%20the%20Bank's%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) This section provides detailed educational backgrounds and professional experiences of the bank's directors, supervisors, and senior management, highlighting the team's expertise and extensive experience - Mr. Cai Jian currently serves as Party Committee Secretary and Chairman of Guangzhou Rural Commercial Bank, holding an MBA and a Master's degree in Management, and is a Senior Economist[607](index=607&type=chunk) - Mr. Yi Xuefei currently serves as Deputy Party Committee Secretary, Vice Chairman, and President of Guangzhou Rural Commercial Bank, holding a Master's degree in Economics, an EMBA from Sun Yat-sen University, and is an Economist[607](index=607&type=chunk) - Ms. Wang Xigui currently serves as Chairwoman of the Supervisory Board and Employee Supervisor of Guangzhou Rural Commercial Bank, holding a Bachelor's degree in Economics and is an Accountant[612](index=612&type=chunk) [Securities Transactions by Directors and Supervisors](index=71&type=section&id=Securities%20Transactions%20by%20Directors%20and%20Supervisors) During the reporting period, all directors and supervisors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers, with no non-compliant transactions - The bank has adopted a code of conduct for securities transactions by directors, supervisors, and relevant employees that is no less stringent than the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix 10 of the Listing Rules[618](index=618&type=chunk) - Following specific inquiries to all directors and supervisors, each director and supervisor confirmed their continuous compliance with the aforementioned code during the six months ended June 30, 2021[618](index=618&type=chunk) [Interests and Short Positions of Directors, Chief Executive, and Supervisors in the Bank](index=71&type=section&id=Interests%20and%20Short%20Positions%20of%20Directors%2C%20Chief%20Executive%2C%20and%20Supervisors%20in%20the%20Bank) As of the latest practicable date, some directors and supervisors held interests in the bank's shares or associated corporations, including Mr. Yi Xuefei with 500,000 non-H shares, and Mr. Feng Yaoliang and Mr. Lai Zhiguang through controlled corporations Interests and Short Positions of Directors, Chief Executive, and Supervisors in the Bank | Name | Position | Nature of Interest | Class of Shares | Long/Short Position | Number of Shares Held Directly or Indirectly | Approximate Percentage of the Bank's Interest | Approximate Percentage of the Bank's Relevant Class of Shares | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Yi Xuefei | Director | Beneficial owner | Non-H shares | Long | 500,000 | 0.005% | 0.006% | | Feng Yaoliang | Director | Interest in controlled corporation | Non-H shares | Long | 100,010,000 | 1.019% | 1.252% | | Lai Zhiguang | Director | Interest in controlled corporation | Non-H shares | Long | 62,500,000 | 0.637% | 0.782% | | Liao Wenyi | Director | Beneficial owner | Non-H shares | Long | 1,103,000 | 0.011% | 0.013% | | Lai Jiaxiong | Supervisor | Beneficial owner | Non-H shares | Long | 452,224 | 0.005% | 0.006% | - Mr. Feng Yaoliang holds **100,010,000 shares** through Guangzhou Huaxin Group Co., Ltd., representing approximately **1.019%** of the bank's issued share capital[619](index=619&type=chunk) - Mr. Lai Zhiguang holds **62,500,000 shares** through Guangzhou Dongsheng Investment Co., Ltd., representing approximately **0.637%** of the bank's issued share capital[620](index=620&type=chunk) [Corporate Governance](index=73&type=section&id=Corporate%20Governance) [Overview of Corporate Governance](index=73&type=section&id=Overview%20of%20Corporate%20Governance) During the reporting period, the bank continuously improved its corporate governance structure and standards, complying with relevant laws, regulations, and most provisions of the Corporate Governance Code, with one deviation - The bank strictly adhered to the "Company Law of the People's Republic of China," "Commercial Bank Law of the People's Republic of China," and other laws, regulations, and Listing Rules, continuously improving its corporate governance structure and standards[622](index=622&type=chunk) - During the reporting period, except for a deviation from Corporate Governance Code Provision A.5.1, the bank consistently complied with the code provisions in Appendix 14 of the Listing Rules, "Corporate Governance Code," and most recommended best practices[622](index=622&type=chunk) [Responsibilities of the General Meeting](index=73&type=section&id=Responsibilities%20of%20the%20General%20Meeting) The General Meeting, as the bank's highest authority, determines operational policies, investment plans, elects directors and supervisors, approves financial reports, profit distribution, capital changes, and other major matters - The General Meeting is the bank's highest authority, determining its operational policies and investment plans[623](index=623&type=chunk) - Its powers include electing and replacing directors and supervisors not representing employees, reviewing and approving reports from the Board of Directors and Supervisory Board, and reviewing financial budgets, final accounts, profit distribution, and loss recovery plan

ジェー州衣商银行 guangzhou rural commercial bank 廣州農村商業銀行股份有限公司 ( 於中華人民共和國註冊成立的股份有限公司 ) 股份代號 : 1551 / 2020年度報告 目錄 公司簡介 2 | --- | --- | |-------|-------| | | | | | | | | | | | 10 | | | 12 | | | 13 | | | 55 | | | 66 | | | 77 | | | 100 | | | 111 | | | 119 | | | 120 | | | 131 | | | 139 | | | 292 | | | | 財務數據摘要 7 黨委書記致辭 行長致辭 管理層討論與分析 股本變動及股東情況 董事、監事及高級管理人員 企業管治報告 董事會報告 監事會報告 重要事項 三農金融服務報告 獨立審計師報告 財務報表及附註 未經審計補充財務信息 釋義 295 公司簡介 | --- | --- | --- | --- | |-------------------|-------|----------------|---------------------- ...