(A joint stock company incorporated in the People's Republic of China with limited liability) （於中華人民共和國註冊成立的股份有限公司） (Stock Code 股份代號: 1983) Should you have any queries relating to this letter, please contact the H Share Registrar at (852)2862 8688 during business hours from 9:00 a.m. to 6:00 p.m. (Hong Kong time), from Mondays to Fridays, excluding Hong Kong public holidays. Yours faithfully, By order of the Board Luzhou Bank Co., Ltd.* YOU Jiang Chairman Luzhou Bank Co., Ltd. is not an authorized instituti ...

3 September 2025 Dear registered shareholder(s), (A joint stock company incorporated in the People's Republic of China with limited liability) （於中華人民共和國註冊成立的股份有限公司） (Stock Code 股份代號: 1983) Reminder Letter regarding the Arrangement of Electronic Dissemination of Corporate Communications (Note 1) With reference to the notification letter dated 4 March 2024 titled "Arrangement of Electronic Dissemination of Corporate Communications", Luzhou Bank Co., Ltd. (the "Bank") is writing to remind you that the Bank has ...

[Company Profile](index=4&type=section&id=公司簡介) Luzhou Bank, established in 1997 and listed on the HKEX in 2018, is a commercial bank with 41 branches and a substantial asset base [Company Overview](index=4&type=section&id=一、%20公司概況) Luzhou Bank Co., Ltd. was registered in Luzhou, Sichuan Province, China on September 15, 1997, with its H-shares listed on the HKEX in 2018 - Legal Chinese name: Luzhou Bank Co., Ltd., Legal English name: LUZHOU BANK CO., LTD[8](index=8&type=chunk) - Registered capital: **RMB 2,717,752,062**[8](index=8&type=chunk) - H-shares listed on the main board of the Hong Kong Stock Exchange on **December 17, 2018**, stock code **1983**[8](index=8&type=chunk)[10](index=10&type=chunk) [Company Status](index=5&type=section&id=二、%20公司情況) Luzhou Bank operates 41 branches, reporting total assets of **RMB 192.254 billion** and customer deposits of **RMB 155.082 billion** - The bank operates 41 branches, including Chengdu, Meishan, and Suining branches[9](index=9&type=chunk) Key Scale Indicators as of the End of the Reporting Period | Indicator | Amount (RMB billion) | | :--- | :--- | | Total Assets | 192.254 | | Total Customer Loans | 117.594 | | Total Customer Deposits | 155.082 | [Financial Highlights](index=6&type=section&id=財務摘要) Luzhou Bank reported increased net profit and asset growth for H1 2025, with improved loan quality and stable capital ratios [Financial Highlights](index=6&type=section&id=財務摘要) For H1 2025, Luzhou Bank achieved **RMB 902 million** net profit, **11.65% YoY growth**, with assets up **12.43%** and deposits up **14.61%** Operating Performance for the Six Months Ended June 30 (RMB thousand) | Item | 2025 | 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Interest Income | 1,897,023 | 1,757,680 | 7.93 | | Net Fee and Commission Income | 78,660 | 82,592 | (4.76) | | Operating Income | 2,422,775 | 2,835,908 | (14.57) | | Operating Expenses | (968,254) | (898,069) | 7.82 | | Expected Credit Losses / Other Asset Impairment Losses | (215,577) | (903,809) | (76.15) | | Profit Before Tax | 1,239,926 | 1,035,133 | 19.78 | | Net Profit | 902,489 | 808,336 | 11.65 | | Net Profit Attributable to Shareholders | 902,489 | 808,336 | 11.65 | | Basic Earnings Per Share (RMB) | 0.30 | 0.26 | 0.04 | Scale Indicators as of June 30, 2025 (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | Change Rate (%) | | :--- | :--- | :--- | :--- | | Total Assets | 192,253,762 | 170,999,572 | 12.43 | | Net Customer Loans | 111,900,229 | 98,585,035 | 13.51 | | Total Liabilities | 179,260,751 | 158,559,168 | 13.06 | | Customer Deposits | 155,081,860 | 135,314,340 | 14.61 | | Equity Attributable to Shareholders | 12,993,011 | 12,440,404 | 4.44 | Asset Quality and Capital Adequacy Ratios as of June 30, 2025 (%) | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Non-performing Loan Ratio | 1.18 | 1.19 | (0.01) | | Provision Coverage Ratio | 411.53 | 435.19 | (23.66) | | Core Tier 1 Capital Adequacy Ratio | 8.01 | 8.27 | (0.26) | | Tier 1 Capital Adequacy Ratio | 9.82 | 10.15 | (0.33) | | Capital Adequacy Ratio | 12.66 | 13.12 | (0.46) | [Management Discussion and Analysis](index=8&type=section&id=管理層討論與分析) This section covers Luzhou Bank's operating environment, strategy, financial performance, asset quality, capital, and risk management [Environment and Outlook](index=8&type=section&id=1.%20環境與展望) H1 2025 saw weak global recovery, while China's economy grew **5.3%** and Sichuan's GDP **5.6%**, with banking facing challenges - H1 2025 China's GDP reached **RMB 66.1 trillion**, a **5.3% year-on-year increase**[13](index=13&type=chunk) - Sichuan Province's GDP reached **RMB 3.2 trillion**, a **5.6% year-on-year increase**, **0.3 percentage points higher** than the national average[13](index=13&type=chunk) - The banking industry faces multiple challenges, including continuous narrowing of net interest margins and intensified "involutionary" competition[14](index=14&type=chunk) [Development Strategy](index=8&type=section&id=2.%20發展戰略) Luzhou Bank will focus on high-quality development, business transformation, asset optimization, and risk control in H2 2025 - Anchor high-quality development goals, unswervingly promote business transformation, and continuously optimize asset structure[15](index=15&type=chunk) - Continuously reduce liability costs through innovative measures and increase the proportion of high-quality customers[15](index=15&type=chunk) - Further strengthen full-process credit risk control and proactively prevent reputational risks[15](index=15&type=chunk) - Continue to increase investment in financial technology and solidify the financial technology foundation[15](index=15&type=chunk) - Closely align with the Chengdu-Chongqing economic circle and Luzhou's "one body, two wings" development strategy, actively integrating into the regional economic development landscape[15](index=15&type=chunk) [Income Statement Analysis](index=9&type=section&id=3.%20利潤表分析) H1 2025 profit before tax grew **19.78%** to **RMB 1.24 billion**, net profit rose **11.65%** to **RMB 902 million**, despite revenue decline Impact of Major Profit and Loss Items on Profit Before Tax (RMB thousand) | Item | Amount | | :--- | :--- | | Profit Before Tax for the Six Months Ended June 30, 2024 | 1,035,133 | | Change in Net Interest Income | 139,343 | | Change in Net Fee and Commission Income | (3,932) | | Change in Net Gains from Trading Activities, Financial Investments, and Other Operating Income | (548,544) | | Change in Operating Expenses | (70,185) | | Change in Expected Credit Losses / Other Asset Impairment Losses | 688,232 | | Change in Share of Profit of Associates | (121) | | Profit Before Tax for the Six Months Ended June 30, 2025 | 1,239,926 | [Financial Performance Summary](index=9&type=section&id=3.1%20財務業績摘要) H1 2025 profit before tax increased by **19.78%** to **RMB 1.24 billion**, and net profit grew by **11.65%** to **RMB 902 million** - Profit before tax **RMB 1.24 billion**, a **19.78% year-on-year increase**[18](index=18&type=chunk) - Net profit **RMB 902 million**, an **11.65% year-on-year increase**[18](index=18&type=chunk) [Operating Income](index=10&type=section&id=3.2%20營業收入) H1 2025 operating income decreased by **14.57%** to **RMB 2.423 billion**, with net interest income comprising **78.30%** - H1 2025 operating income **RMB 2.423 billion**, a **14.57% year-on-year decrease**[20](index=20&type=chunk) Operating Income Composition (%) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Net Interest Income | 78.30 | 61.98 | | Net Fee and Commission Income | 3.25 | 2.91 | | Net Gains from Trading Activities, Financial Investments, and Other Operating Income | 18.45 | 35.11 | | Total | 100.00 | 100.00 | [Net Interest Income](index=10&type=section&id=3.3%20利息淨收入) H1 2025 net interest income grew **7.93%** to **RMB 1.897 billion**, driven by asset growth and lower liability costs, despite margin decline - Net interest income **RMB 1.897 billion**, a **7.93% year-on-year increase**[22](index=22&type=chunk) - Net interest margin **2.44%**, a **0.11 percentage point year-on-year decrease**; net interest spread **2.71%**, a **0.06 percentage point year-on-year decrease**[27](index=27&type=chunk) Net Interest Income Change Analysis (RMB thousand) | Item | Scale Factor | Interest Rate Factor | Net Change (Increase/Decrease) | | :--- | :--- | :--- | :--- | | Change in Interest Income | 466,459 | (339,869) | 126,590 | | Change in Interest Expense | 292,072 | (304,825) | (12,753) | | Change in Net Interest Income | 174,387 | (35,044) | 139,343 | [Interest Income](index=12&type=section&id=3.4%20利息收入) H1 2025 interest income grew **3.38%** to **RMB 3.872 billion**, primarily from interest-earning asset growth, with customer loan interest up - Interest income **RMB 3.872 billion**, a **3.38% year-on-year increase**, primarily due to growth in interest-earning assets[30](index=30&type=chunk) - Customer loan interest income **RMB 3.354 billion**, a **7.15% year-on-year increase**[31](index=31&type=chunk) - Investment interest income **RMB 421 million**, a **19.46% year-on-year decrease**, mainly due to a decline in average investment yield[34](index=34&type=chunk) [Interest Expense](index=14&type=section&id=3.5%20利息支出) H1 2025 interest expense decreased **0.64%** to **RMB 1.975 billion**, mainly due to lower average cost of interest-bearing liabilities - Interest expense **RMB 1.975 billion**, a **0.64% year-on-year decrease**, primarily due to a decline in the average cost of interest-bearing liabilities[37](index=37&type=chunk) - Customer deposit interest expense **RMB 1.713 billion**, a **2.79% year-on-year increase**[38](index=38&type=chunk) - Interbank and other financial institutions' deposit and borrowing interest expense **RMB 38 million**, a **45.85% year-on-year decrease**[41](index=41&type=chunk) - Interest expense on issued bonds **RMB 172 million**, an **8.84% year-on-year decrease**[42](index=42&type=chunk) [Net Non-Interest Income](index=15&type=section&id=3.6%20非利息淨收入) H1 2025 net non-interest income significantly decreased by **51.24%** to **RMB 526 million** - Net non-interest income **RMB 526 million**, a **51.24% year-on-year decrease**[44](index=44&type=chunk) [Net Fee and Commission Income](index=15&type=section&id=3.7%20手續費及佣金淨收入) H1 2025 net fee and commission income decreased by **RMB 3.932 million** to **RMB 78,660 thousand** - Net fee and commission income **RMB 78,660 thousand**, a **RMB 3,932 thousand year-on-year decrease**[45](index=45&type=chunk) Fee and Commission Income Composition (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Wealth Management Business Fee Income | 78,907 | 94,274 | | Agency Business Fee Income | 5,301 | 1,254 | | Guarantee and Commitment Business Fee Income | 13,342 | 3,991 | [Net Gains from Trading Activities, Financial Investments, and Other Operating Income](index=16&type=section&id=3.8%20交易活動淨收益、金融投資淨收益及其他營業收入) H1 2025 combined net gains from trading activities, financial investments, and other operating income totaled **RMB 447 million**, a **55.09% decrease** - Net gains from trading activities, financial investments, and other operating income totaled **RMB 447 million**, a **55.09% year-on-year decrease**[48](index=48&type=chunk) Composition of Net Gains from Trading Activities, Financial Investments, and Other Operating Income (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Net Gains from Trading Activities | 321,174 | 492,091 | | Net Gains from Financial Investments | 88,745 | 197,435 | | Other Operating Income | 37,173 | 306,110 | [Operating Expenses](index=16&type=section&id=3.9%20營業費用) H1 2025 operating expenses increased by **7.82%** to **RMB 968 million**, primarily due to higher staff costs - Operating expenses **RMB 968 million**, a **7.82% year-on-year increase**[50](index=50&type=chunk) Major Components of Operating Expenses (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Staff Costs | 478,589 | 444,107 | | Business and Administrative Expenses | 281,049 | 296,844 | | Depreciation and Amortization | 99,327 | 84,888 | [Expected Credit Losses / Other Asset Impairment Losses](index=17&type=section&id=3.10%20預期信用損失╱其他資產減值損失) H1 2025 expected credit losses and other asset impairment losses significantly decreased by **76.15%** to **RMB 216 million** - Expected credit losses / other asset impairment losses **RMB 216 million**, a **76.15% year-on-year decrease**[53](index=53&type=chunk) - Expected credit losses on loans (including bill discounts) **RMB 452 million**, a **28.60% year-on-year decrease**[55](index=55&type=chunk) [Analysis of Key Balance Sheet Items](index=18&type=section&id=4.%20財務狀況表主要項目分析) As of June 2025, Luzhou Bank's total assets grew **12.43%** to **RMB 192.254 billion**, liabilities **13.06%** to **RMB 179.261 billion**, and equity **4.44%** to **RMB 12.993 billion** - As of the end of June 2025, total assets **RMB 192.254 billion**, a **12.43% increase** from the end of the previous year[56](index=56&type=chunk) - As of the end of June 2025, total liabilities **RMB 179.261 billion**, a **13.06% increase** from the end of the previous year[77](index=77&type=chunk) - As of the end of June 2025, shareholders' equity **RMB 12.993 billion**, a **4.44% increase** from the end of the previous year[83](index=83&type=chunk) [Assets](index=18&type=section&id=4.1%20資產) As of June 2025, total assets grew **12.43%** to **RMB 192.254 billion**, with net customer loans up **13.51%** and corporate loans at **88.26%** Total Assets Composition (RMB thousand) | Item | June 30, 2025 Amount | Percentage of Total % | | :--- | :--- | :--- | | Net Customer Loans | 111,900,229 | 58.20 | | Financial Investments - Financial Assets at Fair Value Through Profit or Loss | 35,550,571 | 18.49 | | Financial Investments - Measured at Amortized Cost | 20,638,532 | 10.74 | | Cash and Balances with Central Bank | 11,334,465 | 5.90 | | Total Assets | 192,253,762 | 100.00 | - Total customer loans **RMB 117.594 billion**, a **13.15% increase** from the end of the previous year[60](index=60&type=chunk) - Corporate loans totaled **RMB 103.784 billion**, a **15.78% increase** from the end of the previous year, accounting for **88.26%** of total customer loans[62](index=62&type=chunk) - Personal loans **RMB 12.845 billion**, a **4.37% decrease** from the end of the previous year, accounting for **10.92%** of total customer loans[64](index=64&type=chunk) - Investment book value **RMB 63.610 billion**, a **9.88% increase** from the end of the previous year[65](index=65&type=chunk) [Liabilities](index=22&type=section&id=4.2%20負債) As of June 2025, total liabilities grew **13.06%** to **RMB 179.261 billion**, with customer deposits up **14.61%** to **RMB 155.082 billion** Total Liabilities Composition (RMB thousand) | Item | June 30, 2025 Amount | Percentage of Total % | | :--- | :--- | :--- | | Customer Deposits | 155,081,860 | 86.51 | | Issued Bonds | 14,366,963 | 8.01 | | Borrowings from Central Bank | 5,609,509 | 3.13 | | Total Liabilities | 179,260,751 | 100.00 | - Total customer deposits **RMB 155.082 billion**, a **14.61% increase** from the end of the previous year[79](index=79&type=chunk) - Issued bonds **RMB 14.367 billion**, a **12.72% increase** from the end of the previous year[82](index=82&type=chunk) [Shareholders' Equity](index=24&type=section&id=4.3%20股東權益) As of June 2025, shareholders' equity increased by **4.44%** to **RMB 12.993 billion** - Shareholders' equity **RMB 12.993 billion**, a **4.44% increase** from the end of the previous year[83](index=83&type=chunk) [Other Financial Information](index=24&type=section&id=5.%20其他財務信息) At period-end, Luzhou Bank's off-balance sheet credit commitments were **RMB 4.042 billion**, with no overdue debt and some pledged assets - Credit commitment balance **RMB 4.042 billion**[85](index=85&type=chunk) - At the end of the reporting period, the bank had no overdue and unpaid debts[86](index=86&type=chunk) - At the end of the reporting period, some of the bank's assets were pledged to the central bank as collateral in accordance with agreements[87](index=87&type=chunk) [Loan Quality Analysis](index=25&type=section&id=6.%20貸款質量分析) Total loans grew **13.13%** to **RMB 116.829 billion**, NPL ratio slightly down **0.01 percentage points** to **1.18%**, with coverage at **411.53%** - At the end of the reporting period, total loans **RMB 116.829 billion**, a **13.13% increase** from the end of the previous year[88](index=88&type=chunk) - Total non-performing loans **RMB 1.384 billion**, an increase of **RMB 156 million** from the end of the previous year; non-performing loan ratio **1.18%**, a **0.01 percentage point decrease** from the end of the previous year[88](index=88&type=chunk) Loan Distribution by Five-Category Classification (RMB thousand) | Item | June 30, 2025 Amount | Percentage of Total % | | :--- | :--- | :--- | | Normal Loans | 113,599,469 | 97.24 | | Special Mention Loans | 1,845,647 | 1.58 | | Total Non-performing Loans | 1,384,379 | 1.18 | | Total Customer Loans | 116,829,495 | 100.00 | - Corporate non-performing loans primarily include real estate, leasing and business services, and construction industries, accounting for **88.10%** of total corporate non-performing loans[92](index=92&type=chunk) - Retail loan non-performing loan ratio increased by **0.52 percentage points** to **4.18%** from the end of the previous year[98](index=98&type=chunk) - At the end of the reporting period, overdue loans **RMB 1.788 billion**, an increase of **RMB 238 million** from the end of the previous year; the ratio of overdue loans to total loans was **1.53%**, an increase of **0.03 percentage points** from the end of the previous year[108](index=108&type=chunk) - Strengthen post-loan management and risk early warning to promptly identify risk hidden dangers[111](index=111&type=chunk) - Formulate "one household, one policy" disposal plans to improve collection efficiency[111](index=111&type=chunk) - Revitalize existing judicial resources and unblock litigation collection channels[111](index=111&type=chunk) [Capital Adequacy Ratio Analysis](index=31&type=section&id=7.%20資本充足率分析) Luzhou Bank's capital adequacy ratios exceed regulatory standards despite a slight decline due to slower capital growth relative to risk-weighted assets - The bank's capital management aims to meet regulatory requirements and continuously improve capital risk resilience and capital returns[114](index=114&type=chunk) Capital Adequacy Ratio Related Indicators (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Net Capital | 16,722,739 | 16,025,971 | | Core Tier 1 Capital Adequacy Ratio | 8.01% | 8.27% | | Tier 1 Capital Adequacy Ratio | 9.82% | 10.15% | | Capital Adequacy Ratio | 12.66% | 13.12% | - During the reporting period, the growth rate of the bank's net capital was slightly lower than the growth rate of risk-weighted assets, leading to a decrease in capital adequacy ratios compared to the end of the previous year, but all levels of capital adequacy ratios remained above regulatory standards[117](index=117&type=chunk) - The liquidity ratio was **76.30%**, **51.30 percentage points higher** than the regulatory requirement[119](index=119&type=chunk)[131](index=131&type=chunk) [Risk Management](index=33&type=section&id=8.%20風險管理) Luzhou Bank manages credit, operational, market, and liquidity risks through optimized structures, enhanced approvals, internal controls, and stress testing - The bank's risk management policy aims to identify, analyze, set limits, monitor, and control various financial risks[351](index=351&type=chunk) - The Board of Directors is the highest risk management body for the entire bank, and senior management is responsible for the overall implementation of risk management[352](index=352&type=chunk) [Credit Risk](index=33&type=section&id=信用風險) Luzhou Bank strengthens credit risk management through optimizing credit allocation, enhancing approvals, intensifying post-loan management, and NPL recovery - Adhere to policy guidance, optimize and adjust credit structure, and promote the continuous healthy development of credit business[120](index=120&type=chunk) - Strengthen credit approval, strictly implement hierarchical authorization management for credit business, and enhance group credit management[120](index=120&type=chunk) - Strengthen post-loan management, strictly control risks in the post-loan stage, and promptly identify adverse changes and take control measures[123](index=123&type=chunk) - Strengthen monitoring of overdue loans and risk early warning loans, formulate "one household, one policy" plans, and intensify collection and disposal efforts[123](index=123&type=chunk) [Operational Risk](index=34&type=section&id=操作風險) Luzhou Bank strengthens operational risk prevention, aiming for zero major events by solidifying internal controls, promoting compliance, and enhancing tech risk control - As of the end of the reporting period, major operational risk events and case-related risk events were zero[122](index=122&type=chunk) - Solidify internal control levels, improve systems, processes, and standards, and strengthen special inspections and risk assessments[125](index=125&type=chunk) - Promote compliance culture, embedding the philosophy of "internal control first, compliance as fundamental"[125](index=125&type=chunk) - Strengthen case risk control, regularly investigate abnormal employee behavior, and conduct special screening work[125](index=125&type=chunk) - Enhance technological risk control, ensure secure system operation, and guarantee the completeness, compliance, and effectiveness of information technology outsourcing management[125](index=125&type=chunk) [Market Risk](index=36&type=section&id=市場風險) Luzhou Bank manages interest rate and exchange rate risks within reasonable limits through a comprehensive market risk management system - The market risks faced by the bank primarily include interest rate risk and exchange rate risk[126](index=126&type=chunk) - Interest rate risk is primarily managed by regularly measuring interest rate sensitivity gaps, assessing the impact of interest rate changes on net profit and net worth, and adjusting asset-liability product portfolios and maturity structures[127](index=127&type=chunk) - Exchange rate risk primarily arises from temporary conversion risks due to exchange rate fluctuations in interbank and customer foreign exchange settlement and sales businesses, currently within controllable limits[128](index=128&type=chunk) [Liquidity Risk](index=37&type=section&id=流動性風險) Luzhou Bank manages liquidity risk to ensure sufficient funds in all scenarios, with ratios significantly exceeding regulatory requirements - The purpose of liquidity risk management is to ensure sufficient funds in both normal operating scenarios and stressed conditions to meet maturing debt payments and business operating capital needs[129](index=129&type=chunk) Liquidity Indicators (%) | Indicator | June 30, 2025 | Regulatory Requirement | | :--- | :--- | :--- | | Liquidity Ratio | 76.30 | 25.00 | | High-Quality Liquid Assets Adequacy Ratio | 143.16 | 100.00 | | Liquidity Matching Ratio | 154.76 | 100.00 | - Strengthen deposit marketing efforts, promote growth in various deposits, and improve the overall stability of liabilities[133](index=133&type=chunk) - Continuously monitor various liquidity risk indicators and limit management through the liquidity risk management information system[133](index=133&type=chunk) - Regularly conduct liquidity risk stress tests[133](index=133&type=chunk) [Information Technology Risk Management](index=38&type=section&id=信息科技風險管理) Luzhou Bank's IT risk management ensures stable system operation, with zero major events, by addressing cybersecurity, business continuity, and outsourcing risks - As of the end of the reporting period, major information technology risk events were zero[132](index=132&type=chunk) - Implement strict network segmentation, logically isolating internet information systems from internal systems, and regularly conduct system penetration tests and vulnerability scans[135](index=135&type=chunk) - Develop a business continuity management system, identify important businesses and information systems, and formulate business continuity plans and emergency response plans[135](index=135&type=chunk) - Strengthen outsourcing management, ensure data security through de-sensitization technology, and formulate and exercise outsourcing emergency plans[135](index=135&type=chunk) [Segment Reporting](index=40&type=section&id=9.%20分部報告) Luzhou Bank reports results across corporate, retail, financial markets, and other segments, with corporate banking contributing **50.14%** of PBT Profit Before Tax by Business Segment (RMB thousand) | Item | 2025 Segment Profit Before Tax | 2025 Percentage % | 2024 Segment Profit Before Tax | 2024 Percentage % | | :--- | :--- | :--- | :--- | :--- | | Corporate Banking Business | 621,731 | 50.14 | 601,212 | 58.08 | | Retail Banking Business | 108,804 | 8.78 | 117,248 | 11.33 | | Financial Markets Business | 479,902 | 38.70 | 307,217 | 29.68 | | Other | 29,489 | 2.38 | 9,456 | 0.91 | | Total | 1,239,926 | 100.00 | 1,035,133 | 100.00 | Operating Income by Business Segment (RMB thousand) | Item | 2025 Segment Operating Income | 2025 Percentage % | 2024 Segment Operating Income | 2024 Percentage % | | :--- | :--- | :--- | :--- | :--- | | Corporate Banking Business | 1,596,677 | 65.90 | 1,732,096 | 61.07 | | Retail Banking Business | 344,775 | 14.23 | 323,213 | 11.40 | | Financial Markets Business | 444,148 | 18.33 | 769,010 | 27.12 | | Other | 37,175 | 1.54 | 11,589 | 0.41 | | Total | 2,422,775 | 100.00 | 2,835,908 | 100.00 | [Business Review](index=41&type=section&id=10.%20業務回顧) Luzhou Bank's business segments developed steadily, with corporate loans up **15.78%**, retail deposits up **7.73%**, and bond investments up **24.09%** [Corporate Banking Business](index=41&type=section&id=公司銀行業務) Corporate banking loans grew **15.78%** to **RMB 103.784 billion**, with small and micro enterprise loans at **59.46%** and customer accounts up **7.53%** - Corporate loan balance **RMB 103.784 billion**, a **15.78% increase** from the beginning of the year[141](index=141&type=chunk) - Small and micro enterprise loans **RMB 61.714 billion**, accounting for **59.46%** of total corporate loans[141](index=141&type=chunk) - Corporate banking customer accounts totaled **57,671**, a **7.53% increase** from the beginning of the year[146](index=146&type=chunk) - Inclusive small and micro loan balance **RMB 14.411 billion**, with **8,492 accounts**, and a weighted average interest rate of **5.09%**[147](index=147&type=chunk) [Retail Banking Business](index=43&type=section&id=零售銀行業務) Retail banking serves **1.5283 million customers**, with deposits up **7.73%** to **RMB 85.892 billion**, and **RMB 8.617 billion** in wealth products sold - As of June 30, 2025, the bank had **1.5283 million** retail banking customers[148](index=148&type=chunk) - Retail deposit balance **RMB 85.892 billion**, a **7.73% increase** from the end of the previous year[149](index=149&type=chunk) - Total retail loans **RMB 12.845 billion**[150](index=150&type=chunk) - In H1 2025, the bank sold wealth management products totaling **RMB 8.617 billion**, and agency-sold trust schemes totaling **RMB 989 million**[152](index=152&type=chunk)[153](index=153&type=chunk) [Financial Markets Business](index=44&type=section&id=金融市場業務) Financial markets business remained stable, with bond investments up **24.09%** to **RMB 49.380 billion**, while SPV investments decreased **26.68%** - Placements with other banks and financial institutions balance **RMB 1.571 billion**, a **584.45% increase** from the beginning of the year[158](index=158&type=chunk) - Interbank loans had no balance, a **RMB 300 million decrease** from the beginning of the year, a **100.00% reduction**[159](index=159&type=chunk) - Bond investment scale **RMB 49.380 billion**, a **24.09% increase** from the beginning of the year[164](index=164&type=chunk) - Special purpose vehicle investment scale **RMB 11.664 billion**, a **26.68% decrease** from the beginning of the year, mainly due to reduced public fund investments[165](index=165&type=chunk) [Financial Consumer Rights Protection](index=46&type=section&id=金融消費者權益保護情況) Luzhou Bank enhances consumer rights protection by integrating it into governance, establishing systems, upholding customer-centric service, and managing across the product lifecycle - Incorporate consumer rights protection into corporate governance, corporate culture construction, and business development strategies[167](index=167&type=chunk) - Establish and improve a consumer rights protection system that matches the bank's organizational structure and business development[168](index=168&type=chunk) - Adhere to the philosophy of "customer-centric" and "service creates value," providing "standardized, rigorous, honest, and reliable" financial services[169](index=169&type=chunk) - Achieve full-process, full-coverage, and all-round management of consumer rights protection in product design, service items, pricing management, agreement formulation, approval access, and marketing promotion[170](index=170&type=chunk) [Share Capital Changes and Shareholder Information](index=47&type=section&id=股本變動及股東情況) This section details Luzhou Bank's stable share capital structure, with no changes during the reporting period, and provides an overview of its major shareholders - As of the end of the reporting period, the bank's total shares were **2,717,752,062**, comprising **1,964,632,062 domestic shares** and **753,120,000 H-shares**[173](index=173&type=chunk) [Share Capital Changes](index=47&type=section&id=一、%20股本變動情況) Luzhou Bank's share capital remained unchanged during the reporting period - The bank's share capital remained unchanged during the reporting period[171](index=171&type=chunk) [Shareholding Structure Table](index=47&type=section&id=二、%20股份結構情況表) As of June 30, 2025, Luzhou Bank's total share capital was **2,717,752,062 shares**, with domestic shares at **72.29%** and H-shares at **27.71%** Shareholding Structure (shares, %) | Item | June 30, 2025 Quantity | June 30, 2025 Proportion | | :--- | :--- | :--- | | Total Share Capital | 2,717,752,062 | 100.00 | | Domestic Corporate Shares | 1,914,695,969 | 70.45 | | Domestic Individual Shares | 49,936,093 | 1.84 | | H-shares | 753,120,000 | 27.71 | [Purchase, Sale or Redemption of the Bank's Listed Securities](index=47&type=section&id=三、%20購買、出售或贖回本行之上市證券情況) During the reporting period, Luzhou Bank did not purchase, sell, or redeem any of its listed securities and held no treasury shares - During the reporting period, the bank did not purchase, sell, or redeem any of its listed securities[172](index=172&type=chunk) - As of the end of the reporting period, the bank held no treasury shares[172](index=172&type=chunk) [Shareholder Details](index=47&type=section&id=四、%20股東詳情) As of period-end, Luzhou Bank had **2,717,752,062 total shares**, with Luzhou Laojiao Group as the largest domestic shareholder at **14.37%** [Top 10 Domestic Shareholders](index=47&type=section&id=（一）%20本行內資股前10大股東持股情況) Luzhou Laojiao Group Co., Ltd. held **14.37%** of domestic shares, while Sichuan Jiale Enterprise Group Co., Ltd. and Luzhou Xinfu Mining Group Co., Ltd. each held **11.97%** Top 10 Domestic Shareholders (shares, %) | No. | Shareholder Name | Number of Shares Held | Shareholding Proportion | | :--- | :--- | :--- | :--- | | 1 | Luzhou Laojiao Group Co., Ltd. | 390,528,000 | 14.37 | | 2 | Sichuan Jiale Enterprise Group Co., Ltd. | 325,440,000 | 11.97 | | 3 | Luzhou Xinfu Mining Group Co., Ltd. | 325,440,000 | 11.97 | | 4 | Luzhou Municipal Finance Bureau | 193,853,760 | 7.13 | | 5 | Luzhou State-owned Assets Management Co., Ltd. | 173,568,000 | 6.39 | [Interests and Short Positions of Major Shareholders and Other Persons in Shares and Underlying Shares under Hong Kong Regulations](index=48&type=section&id=（二）%20香港法規下主要股東及其他人士於股份及相關股份擁有之權益及淡倉) Luzhou Laojiao Group and its controlled entities held **15.97%** of shares, Sichuan Jiale Enterprise Group and associates held **11.97%**, and OTX ADVISORY HOLDINGS, INC. held **4.99%** of H-shares - Luzhou Laojiao Group Co., Ltd. directly and indirectly held **433,920,000 domestic shares**, accounting for **15.97%** of the bank's issued shares[175](index=175&type=chunk) - Sichuan Jiale Enterprise Group Co., Ltd. beneficially owned **325,440,000 domestic shares**, accounting for **11.97%** of the bank's issued shares[175](index=175&type=chunk) - OTX ADVISORY HOLDINGS, INC. beneficially owned **135,672,000 H-shares**, accounting for **4.99%** of the bank's issued shares[178](index=178&type=chunk) [Major Shareholders of the Bank](index=52&type=section&id=（三）%20本行主要股東情況) Major shareholders are those holding over **5%** of shares or voting rights, or having significant influence on management - A major shareholder of a commercial bank refers to a shareholder who holds or controls **more than 5%** of the commercial bank's shares or voting rights, or who holds less than **5%** of the total capital or shares but has a significant influence on the commercial bank's operation and management[185](index=185&type=chunk) [Directors, Supervisors, Senior Management, and Employees](index=54&type=section&id=董事、監事、高級管理人員及員工) This section outlines the composition of Luzhou Bank's governance bodies, personnel changes, compliance, and employee demographics, training, and compensation [Directors, Supervisors, Senior Management, and Employees](index=54&type=section&id=一、%20董事、監事、高級管理人員及員工) Luzhou Bank's Board has 11 directors, the Supervisory Board has 5 supervisors, and senior management comprises 11 members - The Board of Directors has **11 directors**, including **2 executive directors**, **4 non-executive directors**, and **5 independent non-executive directors**[188](index=188&type=chunk) - The Board of Supervisors has **5 supervisors**, including **1 shareholder supervisor**, **2 employee supervisors**, and **2 external supervisors**[189](index=189&type=chunk) - The bank has **11 senior management members**, including the President, Vice Presidents, Chief Information Officer, and Board Secretary[190](index=190&type=chunk) [Changes in Directors, Supervisors and Senior Management](index=55&type=section&id=二、%20董事、監事和高級管理人員變動情況) Mr. Fan Jingdong became an independent non-executive director in April 2025, Mr. Wang Chong was appointed vice president, and Mr. Luo Huoming assumed new leadership roles - Mr. Fan Jingdong was elected as an independent non-executive director by the general meeting and took office on **April 27, 2025**, after obtaining approval for his qualifications[192](index=192&type=chunk) - There were no changes in supervisory board members during the reporting period and up to the latest practicable date[194](index=194&type=chunk) - Mr. Wang Chong was appointed as Vice President by the bank's Board of Directors on **January 23, 2025**, and will officially assume duties after obtaining regulatory approval[195](index=195&type=chunk) - Mr. Luo Huoming, the bank's non-executive director, has served as Chairman of Luzhou Development Holdings Group Co., Ltd., Chairman of Luzhou Industrial Development Investment Group Co., Ltd., and concurrently Chairman of Luzhou Tianhua (Group) Co., Ltd. since **April 2025**[196](index=196&type=chunk) [Securities Transactions by Directors and Supervisors](index=55&type=section&id=三、%20董事及監事進行的證券交易) Luzhou Bank adopted the Model Code for directors' and supervisors' securities transactions, with all confirming compliance during the period - The bank has adopted the Model Code as the code governing securities transactions by its directors and supervisors[197](index=197&type=chunk) - All directors and supervisors of the bank confirmed their compliance with the Model Code during the reporting period[197](index=197&type=chunk) [Employee Information](index=56&type=section&id=四、%20員工情況) As of June 30, 2025, Luzhou Bank had **1,615 employees** with an average age of **34.80**, **64.71%** holding bachelor's degrees or higher - As of June 30, 2025, the bank had a total of **1,615 employees**, with an average age of **34.80 years**[198](index=198&type=chunk) Employee Age Distribution | Age Group | Number of People | Percentage % | | :--- | :--- | :--- | | 20 (inclusive) to 30 years old | 490 | 30.34 | | 30 (inclusive) to 40 years old | 762 | 47.18 | | 40 (inclusive) to 50 years old | 238 | 14.74 | | 50 (inclusive) and above | 125 | 7.74 | Employee Education Distribution | Education Level | Number of People | Percentage % | | :--- | :--- | :--- | | Master's Degree and Above | 345 | 21.36 | | Bachelor's Degree | 1,045 | 64.71 | | Junior College and Below | 225 | 13.93 | - The bank has a total of **158 technology professionals**, accounting for **9.78%** of the total workforce[202](index=202&type=chunk) [Employee Training](index=57&type=section&id=五、%20員工培訓) Luzhou Bank's employee training aligns with its strategy, expanding platforms, enriching resources, and optimizing programs, with **120 sessions** for **6,000+ participants** - The bank's employee training is conducted in conjunction with its development strategic goals and the actual capabilities of its employees, continuously expanding training platforms, enriching training resources, optimizing training programs, and improving talent development mechanisms[204](index=204&type=chunk) - During the reporting period, approximately **120 types of internal and external training sessions** were organized, with **over 6,000 participants**[204](index=204&type=chunk) [Employee Compensation Policy](index=57&type=section&id=六、%20員工薪酬政策) In 2025, Luzhou Bank implemented a market-oriented compensation system with dual career paths, linking pay to performance and providing comprehensive benefits - In 2025, the bank implemented a market-oriented compensation system based on position salary, with performance-based compensation that can fluctuate upwards or downwards[205](index=205&type=chunk) - The bank established dual career paths for employee salary progression based on dual career development paths, expanding salary progression opportunities for professional series employees[205](index=205&type=chunk) - Position salary is closely linked to position value and individual ability, while performance-based compensation is closely linked to value creation, performance contribution, and performance[205](index=205&type=chunk) - The bank contributes to "five insurances and one housing fund" for employees, purchases supplementary medical insurance, and establishes an enterprise annuity plan[205](index=205&type=chunk) - A mechanism for deferred payment and clawback of performance-based compensation has been established[205](index=205&type=chunk) [Significant Matters](index=58&type=section&id=重要事項) This section covers Luzhou Bank's corporate governance, 2024 dividend, absence of major litigation or penalties, and interim financial review [Corporate Governance](index=58&type=section&id=公司治理) Luzhou Bank strictly complied with laws and Listing Rules, continuously improving its corporate governance structure and adopting the Corporate Governance Code - During the reporting period, the bank strictly adhered to laws and regulations such as the "Company Law of the People's Republic of China" and the "Commercial Bank Law of the People's Republic of China," as well as relevant provisions of the "Listing Rules," continuously improving its corporate governance structure and enhancing its corporate governance level[206](index=206&type=chunk) - The bank has also adopted Part 2 of the Corporate Governance Code in Appendix C1 of the "Listing Rules," meeting the management requirements and corporate governance standards for domestic commercial banks[206](index=206&type=chunk) [Dividend Distribution](index=58&type=section&id=股息分派) Luzhou Bank distributed a **RMB 326.13 million** final dividend for 2024 on July 29, 2025, and has no plans for a H1 2025 interim dividend - The bank distributed a final dividend for 2024 of **RMB 1.2 per 10 shares** (tax inclusive), totaling **RMB 326.13 million** (tax inclusive), to shareholders registered on the bank's share register as of **July 11, 2025**[208](index=208&type=chunk) - The bank has not declared and has no plans to declare an interim dividend for the six months ended **June 30, 2025**[209](index=209&type=chunk) [Major Litigation and Arbitration Matters](index=58&type=section&id=重大訴訟及仲裁事項) During the reporting period, Luzhou Bank had no litigation or arbitration matters that significantly impacted its operations - During the reporting period, the bank had no litigation or arbitration matters that significantly impacted its operations[210](index=210&type=chunk) [Penalties Imposed on the Bank, its Directors, Supervisors, and Senior Management](index=58&type=section&id=本行及本行董事、監事及高級管理人員受處罰的情況) During the reporting period, Luzhou Bank and its directors, supervisors, and senior management received no significant penalties from regulatory bodies - During the reporting period, the bank and all its directors, supervisors, and senior management were not subject to investigations, administrative penalties, public criticisms by the China Securities Regulatory Commission or public condemnations by the Hong Kong Stock Exchange, nor did they receive any other penalties from regulatory bodies that had a significant impact on the bank's operations[211](index=211&type=chunk) [Major Contracts and Their Performance](index=58&type=section&id=重大合同及其履行情況) During the reporting period, Luzhou Bank had no major contracts or their performance to report - During the reporting period, the bank had no major contracts or their performance to report[212](index=212&type=chunk) [Review of Interim Results](index=59&type=section&id=審閱中期業績) Luzhou Bank's unaudited H1 2025 financial information was reviewed by Deloitte Touche Tohmatsu, receiving an unmodified report, and approved by the Audit Committee and Board - The bank's unaudited interim financial information for 2025, prepared in accordance with International Financial Reporting Standards, has been reviewed by Deloitte Touche Tohmatsu, which issued an unmodified review report[214](index=214&type=chunk) - The bank's 2025 interim report and unaudited interim financial information for 2025 have been reviewed by the bank's Audit Committee and Board of Directors[215](index=215&type=chunk) [Major Asset Acquisitions, Disposals, and Business Combinations](index=59&type=section&id=重大資產收購、出售及企業合併事項) During the reporting period, Luzhou Bank did not engage in any major asset acquisitions, disposals, or business combinations - During the reporting period, the bank did not engage in any major asset acquisitions, disposals, or business combinations[216](index=216&type=chunk) [Major Post-Balance Sheet Events](index=59&type=section&id=重大期後事項) From the end of the reporting period to the latest practicable date, Luzhou Bank had no major post-balance sheet events - From the end of the reporting period to the latest practicable date, the bank had no major post-balance sheet events[217](index=217&type=chunk) [Independent Auditor's Report](index=60&type=section&id=獨立核數師報告) This section presents the independent auditor's report on Luzhou Bank's interim condensed financial statements, confirming the scope of review and an unmodified conclusion [Introduction](index=60&type=section&id=引言) Deloitte Touche Tohmatsu reviewed Luzhou Bank's H1 2025 interim condensed financial statements, prepared under HKEX Listing Rules and IAS 34 - Deloitte Touche Tohmatsu reviewed the interim condensed financial statements of Luzhou Bank Co., Ltd[218](index=218&type=chunk) - The interim condensed financial statements were prepared in accordance with the requirements of the "Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited" and "International Accounting Standard 34 – Interim Financial Reporting"[218](index=218&type=chunk) [Scope of Review](index=60&type=section&id=審閱範圍) The review, conducted under ISRE 2410, involved inquiries and analytical procedures, being less extensive than an audit, thus no audit opinion is expressed - The review was conducted in accordance with "International Standard on Review Engagements 2410 – Review of Interim Financial Information Performed by the Independent Auditor of the Entity"[219](index=219&type=chunk) - The scope of a review is substantially less than that of an audit conducted in accordance with International Standards on Auditing, and consequently, we do not express an audit opinion on these financial statements[219](index=219&type=chunk) [Conclusion](index=60&type=section&id=結論) Based on the review, no matters were identified suggesting the interim condensed financial statements were not prepared in all material respects under IAS 34 - Based on our review, nothing has come to our attention that causes us to believe that the interim condensed financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34[220](index=220&type=chunk) [Financial Statements and Notes](index=61&type=section&id=財務報表及附註) This section includes Luzhou Bank's interim condensed financial statements and detailed notes, providing essential context on its financial position and performance - The bank's main business lines include corporate banking, retail banking, and financial markets business[230](index=230&type=chunk) - This unaudited interim condensed financial statement is prepared in accordance with the requirements of "International Accounting Standard 34 – Interim Financial Reporting" issued by the International Accounting Standards Board, and the disclosure requirements of the "Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited"[232](index=232&type=chunk) - The bank has not adopted any new standards, amendments, or interpretations that are not yet effective for the current accounting period[235](index=235&type=chunk) [Interim Condensed Statement of Profit or Loss and Other Comprehensive Income](index=61&type=section&id=中期簡明損益及其他綜合收益表) H1 2025 net profit was **RMB 902,489 thousand**, total comprehensive income **RMB 874,170 thousand**, with net interest income up but overall operating income down Interim Condensed Statement of Profit or Loss and Other Comprehensive Income Summary (RMB thousand) | Item | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Net Interest Income | 1,897,023 | 1,757,680 | | Operating Income | 2,422,775 | 2,835,908 | | Expected Credit Losses | (214,757) | (903,775) | | Net Profit | 902,489 | 808,336 | | Total Comprehensive Income Attributable to Shareholders | 874,170 | 766,349 | | Basic and Diluted Earnings Per Share (RMB) | 0.30 | 0.26 | [Interim Condensed Statement of Financial Position](index=62&type=section&id=中期簡明財務狀況表) As of June 30, 2025, total assets were **RMB 192,253,762 thousand**, total liabilities **RMB 179,260,751 thousand**, and total shareholders' equity **RMB 12,993,011 thousand** Interim Condensed Statement of Financial Position Summary (RMB thousand) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Total Assets | 192,253,762 | 170,999,572 | | Customer Loans | 111,900,229 | 98,585,035 | | Financial Investments - Financial Assets at Fair Value Through Profit or Loss | 35,550,571 | 32,867,602 | | Total Liabilities | 179,260,751 | 158,559,168 | | Customer Deposits | 155,081,860 | 135,314,340 | | Total Shareholders' Equity | 12,993,011 | 12,440,404 | [Interim Condensed Statement of Changes in Equity](index=64&type=section&id=中期簡明權益變動表) As of June 30, 2025, total shareholders' equity reached **RMB 12,993,011 thousand**, driven by **RMB 902,489 thousand** net profit and **RMB 874,170 thousand** comprehensive income - As of June 30, 2025, total shareholders' equity (unaudited) was **RMB 12,993,011 thousand**[225](index=225&type=chunk) - Net profit for the period was **RMB 902,489 thousand**, and total comprehensive income was **RMB 874,170 thousand**[225](index=225&type=chunk) - Capital contributed by holders of other equity instruments was **RMB 1,799,667 thousand**[225](index=225&type=chunk) - Dividends paid to ordinary shareholders were **RMB 326,130 thousand**[225](index=225&type=chunk) [Interim Condensed Statement of Cash Flows](index=66&type=section&id=中期簡明現金流量表) H1 2025 operating activities generated **RMB 1,030,248 thousand** net cash inflow, investing activities had **RMB 1,439,896 thousand** net outflow, and financing activities had **RMB 1,438,126 thousand** net inflow Interim Condensed Statement of Cash Flows Summary (RMB thousand) | Item | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Net Cash Inflow from Operating Activities | 1,030,248 | 5,495,278 | | Net Cash (Outflow) / Inflow from Investing Activities | (1,439,896) | 455,878 | | Net Cash Inflow / (Outflow) from Financing Activities | 1,438,126 | (2,710,242) | | Net Increase in Cash and Cash Equivalents | 1,028,245 | 3,240,934 | | Cash and Cash Equivalents at End of Period | 4,550,408 | 6,321,672 | [Notes to the Interim Condensed Financial Information](index=67&type=section&id=中期簡明財務資料附註) These notes detail Luzhou Bank's background, accounting policies, financial item changes, risk management, related party transactions, and fair value measurements [General Information](index=67&type=section&id=1.%20基本情況) Luzhou Bank Co., Ltd., established in 1997 and renamed in 2019, was listed on the HKEX in 2018, with core businesses in corporate, retail, and financial markets - The bank was listed and traded on the main board of The Stock Exchange of Hong Kong Limited on **December 17, 2018**[229](index=229&type=chunk) - The bank's main business lines include corporate banking business, retail banking business, and financial markets business[230](index=230&type=chunk) [Basis of Preparation and Accounting Policies](index=67&type=section&id=2.%20編製基礎及會計政策) The unaudited interim condensed financial statements are prepared under IAS 34 and HKEX Listing Rules, reviewed by Deloitte, with no significant impact from IAS 21 (amendment) - This unaudited interim condensed financial statement is prepared in accordance with the requirements of "International Accounting Standard 34 – Interim Financial Reporting" issued by the International Accounting Standards Board, and the disclosure requirements of the "Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited"[232](index=232&type=chunk) - This interim condensed financial statement is unaudited but has been reviewed by the bank's independent auditor, Deloitte Touche Tohmatsu, in accordance with "International Standard on Review Engagements 2410 – Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the International Auditing and Assurance Standards Board[232](index=232&type=chunk) - The adoption of "International Accounting Standard 21 (Amendment): Lack of Exchangeability" has not had a significant impact on the bank's financial position and financial performance[234](index=234&type=chunk) [Net Interest Income](index=69&type=section&id=3.%20利息淨收入) H1 2025 net interest income was **RMB 1,897,023 thousand**, an increase from prior year, mainly from customer loans and financial investments Net Interest Income Composition (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Total Interest Income | 3,871,606 | 3,745,016 | | Total Interest Expense | (1,974,583) | (1,987,336) | | Net Interest Income | 1,897,023 | 1,757,680 | [Net Fee and Commission Income](index=70&type=section&id=4.%20手續費及佣金淨收入) H1 2025 net fee and commission income was **RMB 78,660 thousand**, a decrease from prior year, with wealth management fees as the main component Net Fee and Commission Income Composition (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Total Fee and Commission Income | 102,556 | 104,615 | | Fee and Commission Expense | (23,896) | (22,023) | | Net Fee and Commission Income | 78,660 | 82,592 | [Net Gains from Trading Activities](index=70&type=section&id=5.%20交易活動淨收益) H1 2025 net gains from trading activities were **RMB 321,174 thousand**, a decrease from prior year, mainly from realized bond gains Net Gains from Trading Activities Composition (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Bonds - Realized Gains/Losses | 436,561 | 403,354 | | Bonds - Unrealized Gains/Losses | (111,110) | 86,094 | | Exchange Gains/Losses | (4,277) | 2,643 | | Total | 321,174 | 492,091 | [Net Gains from Financial Investments](index=71&type=section&id=6.%20金融投資淨收益) H1 2025 net gains from financial investments were **RMB 88,745 thousand**, a significant decrease, mainly due to unrealized FVTPL gains turning to losses Net Gains from Financial Investments Composition (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Realized Gains/Losses on Financial Assets at Fair Value Through Profit or Loss | 114,766 | 137,272 | | Unrealized Gains/Losses on Financial Assets at Fair Value Through Profit or Loss | (29,286) | 59,945 | | Trading Spreads on Financial Assets at Fair Value Through Other Comprehensive Income | 3,265 | 218 | | Total | 88,745 | 197,435 | [Other Operating Income](index=71&type=section&id=7.%20其他營業收入) H1 2025 other operating income was **RMB 37,173 thousand**, a significant decrease from prior year, mainly due to lower non-current asset disposal gains Other Operating Income Composition (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Rewards and Subsidies | 34,649 | 6,248 | | Rental Income | 1,396 | 4,582 | | Gains from Disposal of Non-current Assets | 95 | 294,603 | | Total | 37,173 | 306,110 | [Operating Expenses](index=72&type=section&id=8.%20營業費用) H1 2025 operating expenses increased to **RMB 968,254 thousand**, with staff costs being the largest component, including higher salaries and defined contribution plan expenses Major Components of Operating Expenses (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Staff Costs | 478,589 | 444,107 | | Business and Administrative Expenses | 281,049 | 296,844 | | Depreciation and Amortization | 99,327 | 84,888 | | Total | 968,254 | 898,069 | Staff Costs Composition (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Salaries and Bonuses | 332,072 | 327,282 | | Defined Contribution Plans | 53,038 | 45,676 | | Employee Welfare Expenses | 32,183 | 35,126 | | Total | 478,589 | 444,107 | [Expected Credit Losses / Other Asset Impairment Losses](index=74&type=section&id=9.%20預期信用損失╱其他資產減值損失) H1 2025 expected credit losses and other asset impairment losses significantly decreased to **RMB 215,577 thousand**, with customer loan ECL remaining the largest component Expected Credit Losses / Other Asset Impairment Losses Composition (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Expected Credit Losses on Customer Loans Measured at Amortized Cost | 451,919 | 630,126 | | Expected Credit Losses on Credit-related Financial Investments | (231,868) | 22,072 | | Expected Credit Losses on Financial Investments Measured at Amortized Cost | 4,446 | 248,389 | | Total | 214,757 | 903,775 | | Other Asset Impairment Losses | 820 | 34 | [Income Tax](index=74&type=section&id=10.%20所得稅) Income tax is calculated at a **25%** statutory rate, with differences from theoretical amounts due to tax-exempt income and non-deductible expenses - Income tax is calculated based on the estimated taxable income for each corresponding year/period at a statutory rate of **25%** as determined by Chinese income tax laws[246](index=246&type=chunk) Income Tax Reconciliation (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Profit Before Tax | 1,239,926 | 1,035,133 | | Tax Calculated at 25% | 309,982 | 258,783 | | Tax Impact of Tax-Exempt Income | (35,943) | (36,924) | | Tax Impact of Non-Deductible Expenses | 52,481 | 4,938 | | Income Tax Expense | 337,437 | 226,797 | [Basic and Diluted Earnings Per Share](index=75&type=section&id=11.%20基本和稀釋每股盈利) H1 2025 basic earnings per share increased to **RMB 0.30**, with no difference from diluted EPS due to no potential dilutive shares - Basic earnings per share is calculated by dividing the net profit attributable to the bank's shareholders for the period by the weighted average number of ordinary shares outstanding during the period[248](index=248&type=chunk) Earnings Per Share Calculation (RMB) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Net Profit Attributable to Ordinary Shareholders | 807,389 | 713,236 | | Weighted Average Number of Ordinary Shares (thousand shares) | 2,717,752 | 2,717,752 | | Basic Earnings Per Share (RMB) | 0.30 | 0.26 | - As the bank has no potential dilutive shares, there is no difference between basic and diluted earnings per share[249](index=249&type=chunk) [Cash and Balances with Central Bank](index=76&type=section&id=12.%20現金及存放中央銀行款項) As of June 30, 2025, cash and central bank balances totaled **RMB 11,334,465 thousand**, with statutory reserve deposits as the main component Cash and Balances with Central Bank Composition (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash | 132,694 | 104,095 | | Statutory Reserve Deposits with Central Bank | 7,991,905 | 7,028,146 | | Excess Reserve Deposits with Central Bank | 3,168,501 | 2,924,529 | | Total | 11,334,465 | 10,234,384 | - Statutory reserve deposits are general deposit reserves and foreign exchange risk reserves deposited by the bank with the People's Bank of China as required, and cannot be used for the bank's daily operating activities[250](index=250&type=chunk) [Placements with and Loans to Banks and Other Financial Institutions](index=76&type=section&id=13.%20存放和拆放於同業及其他金融機構的款項) As of June 30, 2025, placements with and loans to banks and other financial institutions totaled **RMB 1,572,590 thousand**, a significant increase Placements with and Loans to Banks and Other Financial Institutions Composition (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Placements with Banks and Other Financial Institutions | 1,570,689 | 229,482 | | Loans to Banks | – | 300,000 | | Debt Instruments Purchased Under Resale Agreements | – | 200,000 | | Total | 1,572,590 | 729,137 | [Customer Loans](index=77&type=section&id=14.%20客戶貸款) As of June 30, 2025, net customer loans were **RMB 111,900,229 thousand**, with total ECL provisions of **RMB 5,693,367 thousand** Customer Loans Composition (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Loans Measured at Amortized Cost | 117,393,334 | 103,725,354 | | Less: Loan Credit Loss Provisions Measured at Amortized Cost | (5,693,367) | (5,342,538) | | Loans (Bill Discounts) at Fair Value Through Other Comprehensive Income | 200,262 | 202,219 | | Net Customer Loans | 111,900,229 | 98,585,035 | [Financial Investments - Credit-related Financial Assets](index=84&type=section&id=15.%20金融投資－信貸類金融資產) As of June 30, 2025, credit-related financial investments totaled **RMB 2,803,825 thousand**, primarily corporate loans via trust and asset management schemes Financial Investments - Credit-related Financial Assets Composition (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trust and Asset Management Schemes | 2,903,598 | 2,449,967 | | Less: Expected Credit Loss Provisions | (257,272) | (513,551) | | Total | 2,803,825 | 2,110,510 | [Financial Investments - Financial Assets at Fair Value Through Profit or Loss](index=87&type=section&id=16.%20金融投資－以公允價值計量且其變動計入當期損益的金融資產) As of June 30, 2025, FVTPL financial assets totaled **RMB 35,550,571 thousand**, with unlisted assets, particularly short-term financing and commercial bank bonds, as the main components Financial Investments - Financial Assets at Fair Value Through Profit or Loss Composition (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Listed Outside Hong Kong | 5,343,561 | 6,048,815 | | Unlisted | 30,207,010 | 26,690,603 | | Total | 35,550,571 | 32,867,602 | Unlisted Financial Assets Composition (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Short-term Financing Bonds | 10,033,870 | 4,069,953 | | Commercial Bank Bonds | 9,240,839 | 7,495,494 | | Fund Investments | 5,125,284 | 9,725,797 | | Total | 30,207,010 | 26,690,603 | [Financial Investments - Financial Assets at Fair Value Through Other Comprehensive Income](index=88&type=section&id=17.%20金融投資－以公允價值計量且其變動計入其他綜合收益的金融資產) As of June 30, 2025, FVOCI financial assets totaled **RMB 4,617,080 thousand**, with unlisted assets, particularly government and local government bonds, as the main components Financial Investments - Financial Assets at Fair Value Through Other Comprehensive Income Composition (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Listed Outside Hong Kong | 45,869 | 478,718 | | Unlisted | 4,498,825 | 2,773,642 | | Total | 4,617,080 | 3,349,139 | Unlisted Financial Assets Composition (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Government Bonds | 2,007,882 | 1,246,036 | | Local Government Bonds | 1,826,881 | 213,945 | | Policy Bank Bonds | 437,084 | 1,043,228 | | Total | 4,498,825 | 2,773,642 | [Financial Investments - Financial Assets at Amortized Cost](index=90&type=section&id=18.%20金融投資－以攤餘成本計量的金融資產) As of June 30, 2025, net financial assets at amortized cost totaled **RMB 20,638,532 thousand**, with unlisted assets, particularly policy bank and government bonds, as the main components Financial Investments - Financial Assets at Amortized Cost Composition (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Listed Outside Hong Kong | 2,593,594 | 2,701,168 | | Unlisted | 18,213,075 | 17,009,362 | | Less: Expected Credit Loss Provisions | (581,941) | (577,495) | | Net Amount | 20,638,532 | 19,564,015 | Unlisted Financial Investments Composition (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Policy Bank Bonds | 10,783,165 | 11,341,242 | | Government Bonds | 3,437,623 | 2,133,428 | | Collective Trust Schemes | 1,924,828 | 1,758,196 | | Total | 18,213,075 | 17,009,362 | [Investments in Associates](index=92&type=section&id=19.%20對聯營企業投資) As of June 30, 2025, investments in associates totaled **RMB 58,524 thousand**, primarily in Luxian Yuantong Rural Bank, with a **30%** stake - As of June 30, 2025, investments in associates totaled **RMB 58,524 thousand**[278](index=278&type=chunk) - The bank invested in Luxian Yuantong Rural Bank on **April 8, 2009**, holding a **30%** stake[279](index=279&type=chunk) - The share of profit after tax for the current period was **RMB 982 thousand**[278](index=278&type=chunk) [Property and Equipment](index=93&type=section&id=20.%20物業及設備) As of June 30, 2025, net book value of property and equipment was **RMB 1,069,651 thousand**, with buildings as the main component Property and Equipment Net Book Value (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Buildings | 641,115 | 662,180 | | Electronic Equipment | 53,526 | 66,370 | | Construction in Progress | 349,862 | 298,682 | | Total | 1,069,651 | 1,054,569 | [Deferred Income Tax](index=95&type=section&id=21.%20遞延所得稅) As of June 30, 2025, net deferred income tax assets totaled **RMB 1,628,913 thousand**, mainly from asset impairment provisions and employee compensation Deferred Income Tax Assets and Liabilities Composition (RMB thousand) | Item | June 30, 2025 Deferred Income Tax Assets / (Liabilities

Core Viewpoint - Luzhou Bank is innovating its service model by integrating traditional cultural elements into its financial services, enhancing customer experience and establishing a unique brand image through a themed anniversary celebration [1][2]. Group 1: Innovative Service Model - Luzhou Bank is committed to exploring financial service innovations since its establishment in 1997, aiming to create a differentiated competitive advantage [2]. - The anniversary event featured interactive activities inspired by Three Kingdoms culture, such as "Three Kingdoms Hammer" and "National Style Cuju," which incorporated financial service concepts into traditional games [2]. - The bank's approach not only improves customer experience but also strengthens its brand identity through a unique cultural fusion [2]. Group 2: Community Financial Engagement - Luzhou Bank's Chengdu Wuhou Branch focuses on regional development by deeply integrating culture with financial services to connect with local residents [3]. - The event showcased local cultural significance with gifts like Luzhou-flavored snack packages, reflecting the bank's commitment to cultural heritage [3]. - The bank plans to continue enhancing the integration of cultural creativity with financial services, optimizing customer experience and providing professional financial support for regional development [3].

Group 1 - The core viewpoint of the article highlights the stable growth in business scale, with significant increases in total assets, loans, and deposits compared to the end of 2024 [4][5] Group 2 - Total assets increased by 12.43%, reaching 1922.54 billion [4] - Total loans increased by 13.15%, amounting to 1175.94 billion [4] - Total deposits saw a rise of 14.61%, totaling 1550.82 billion [4] - The number of corporate banking clients reached 57671, while retail banking clients were reported at 152.83 million [5] - The company's operating income increased by 24.23%, reflecting a growth of 9.02% in net profit [5]

Core Insights - Luzhou Bank reported a decrease in operating income to RMB 2.423 billion, down 14.57% year-on-year, with net interest income accounting for 78.30% of total revenue [1] - The net profit attributable to shareholders increased by 11.65% to RMB 902 million, with basic earnings per share at RMB 0.30 [1] - Total assets reached RMB 192.254 billion, growing by RMB 21.254 billion or 12.43% compared to the end of the previous year, primarily driven by an increase in customer loans [1] Financial Performance - Non-interest income was RMB 526 million, representing 21.70% of total revenue [1] - Total customer loans amounted to RMB 117.594 billion, an increase of RMB 13.666 billion or 13.15% year-on-year [1] - The net customer loans reached RMB 111.9 billion, up RMB 13.315 billion or 13.51% from the previous year [1] Loan Quality - Total loans stood at RMB 116.829 billion, reflecting a growth of 13.13% compared to the previous year [1] - Non-performing loans totaled RMB 1.384 billion, an increase of RMB 156 million year-on-year, with a non-performing loan ratio of 1.18%, down 0.01 percentage points from the previous year [1] Capital Adequacy - The capital adequacy ratio was 12.66%, a decrease of 0.46 percentage points from the previous year, exceeding regulatory requirements by 2.16 percentage points [2] - The Tier 1 capital adequacy ratio was 9.82%, down 0.33 percentage points year-on-year, also above the regulatory requirement by 1.32 percentage points [2] - The core Tier 1 capital adequacy ratio was 8.01%, a decline of 0.26 percentage points from the previous year, exceeding the regulatory requirement by 0.51 percentage points [2]

Group 1 - The core point of the article is that Luzhou Bank (01983) reported its interim results for the six months ending June 30, 2025, showing a decline in operating income but an increase in net profit attributable to shareholders [1] Group 2 - Operating income for Luzhou Bank was 2.423 billion RMB, representing a year-on-year decrease of 14.57% [1] - Net profit attributable to shareholders reached 902 million RMB, which is an increase of 11.65% year-on-year [1] - Basic earnings per share stood at 0.3 RMB [1]

[Company Profile](index=3&type=section&id=Company%20Profile) Luzhou Bank Co., Ltd. was established in China on September 15, 1997, with its H-shares listed on the main board of the Hong Kong Stock Exchange on December 17, 2018 [Company Overview](index=3&type=section&id=Company%20Overview) Luzhou Bank Co., Ltd. was established in China on September 15, 1997, with a registered capital of RMB 2,717,752,062 and H-shares listed on the HKEX - Legal Chinese Name: Luzhou Bank Co., Ltd., Legal English Name: LUZHOU BANK CO., LTD[5](index=5&type=chunk) - Registered Capital: **RMB 2,717,752,062**[5](index=5&type=chunk) - H-shares listed on the main board of the Hong Kong Stock Exchange on **December 17, 2018**, stock code 1983[7](index=7&type=chunk) [Company Status](index=4&type=section&id=Company%20Status) As of the end of the reporting period, Luzhou Bank's total assets reached RMB 192.25 billion, with total customer loans of RMB 117.59 billion and total customer deposits of RMB 155.08 billion, demonstrating steady growth in scale As of the End of the Reporting Period, Key Scale Indicators | Indicator | Amount (RMB Billion) | | :--- | :--- | | Total Assets | 192.25 | | Total Customer Loans | 117.59 | | Total Customer Deposits | 155.08 | [Financial Highlights](index=5&type=section&id=Financial%20Highlights) This section provides a concise overview of Luzhou Bank's operating performance, scale, asset quality, capital adequacy, and profitability indicators [Operating Performance](index=5&type=section&id=Operating%20Performance) For the six months ended June 30, 2025, Luzhou Bank's net profit increased by 11.65% year-on-year to RMB 902 million, and pre-tax profit increased by 19.78% to RMB 1.24 billion, despite a 14.57% decrease in operating income 2025 H1 Operating Performance Overview (RMB Thousand) | Item | 2025 | 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Interest Income | 1,897,023 | 1,757,680 | 7.93 | | Net Fee and Commission Income | 78,660 | 82,592 | (4.76) | | Operating Income | 2,422,775 | 2,835,908 | (14.57) | | Operating Expenses | (968,254) | (898,069) | 7.82 | | Expected Credit Losses / Other Asset Impairment Losses | (215,577) | (903,809) | (76.15) | | Pre-tax Profit | 1,239,926 | 1,035,133 | 19.78 | | Net Profit | 902,489 | 808,336 | 11.65 | | Net Profit Attributable to Bank Shareholders | 902,489 | 808,336 | 11.65 | [Scale Indicators](index=5&type=section&id=Scale%20Indicators) As of June 30, 2025, Luzhou Bank's total assets and net customer loans both achieved double-digit growth, increasing by 12.43% and 13.51% year-on-year, respectively, indicating continuous business expansion 2025 H1 Scale Indicators (RMB Thousand) | Item | June 30, 2025 | December 31, 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 192,253,762 | 170,999,572 | 12.43 | | Of which: Net Customer Loans | 111,900,229 | 98,585,035 | 13.51 | | Total Liabilities | 179,260,751 | 158,559,168 | 13.06 | | Of which: Customer Deposits | 155,081,860 | 135,314,340 | 14.61 | | Equity Attributable to Bank Shareholders | 12,993,011 | 12,440,404 | 4.44 | [Asset Quality Indicators](index=5&type=section&id=Asset%20Quality%20Indicators) As of June 30, 2025, Luzhou Bank's non-performing loan ratio slightly decreased by 0.01 percentage points to 1.18%, while its provision coverage ratio and loan loss provision ratio both declined 2025 H1 Asset Quality Indicators (%) | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Non-performing Loan Ratio | 1.18 | 1.19 | (0.01) | | Provision Coverage Ratio | 411.53 | 435.19 | (23.66) | | Loan Loss Provision Ratio | 4.88 | 5.18 | (0.30) | [Capital Adequacy Ratios](index=5&type=section&id=Capital%20Adequacy%20Ratios) As of June 30, 2025, Luzhou Bank's Common Equity Tier 1 capital adequacy ratio, Tier 1 capital adequacy ratio, and capital adequacy ratio all decreased but remained above regulatory requirements 2025 H1 Capital Adequacy Ratios (%) | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Common Equity Tier 1 Capital Adequacy Ratio | 8.01 | 8.27 | (0.26) | | Tier 1 Capital Adequacy Ratio | 9.82 | 10.15 | (0.33) | | Capital Adequacy Ratio | 12.66 | 13.12 | (0.46) | [Other Indicators](index=5&type=section&id=Other%20Indicators) As of June 30, 2025, Luzhou Bank's liquidity ratio was 76.30%, a decrease of 7.80 percentage points from the end of the previous year 2025 H1 Liquidity Ratio (%) | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Liquidity Ratio | 76.30 | 84.10 | (7.80) | [Profitability Indicators](index=6&type=section&id=Profitability%20Indicators) For the six months ended June 30, 2025, Luzhou Bank's average return on equity increased by 0.55 percentage points to 14.62%, but average return on total assets, net interest margin, and net interest spread all decreased, and the cost-to-income ratio significantly rose by 7.97 percentage points to 37.94% 2025 H1 Profitability Indicators (%) | Item | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Average Return on Total Assets | 0.99 | 1.00 | (0.01) | | Average Return on Equity | 14.62 | 14.07 | 0.55 | | Net Interest Spread | 2.71 | 2.77 | (0.06) | | Net Interest Margin | 2.44 | 2.55 | (0.11) | | Cost-to-Income Ratio | 37.94 | 29.97 | 7.97 | [Management Discussion and Analysis](index=7&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of Luzhou Bank's operating environment, strategic direction, financial performance, asset quality, capital adequacy, and risk management [Environment and Outlook](index=7&type=section&id=1.%20Environment%20and%20Outlook) In the first half of 2025, China's economy maintained stable and positive growth, with Sichuan Province outperforming the national average, while the banking sector faced challenges from narrowing net interest margins and intensified competition - In the first half of 2025, China's GDP grew by **5.3%** year-on-year, and Sichuan Province's GDP grew by **5.6%** year-on-year, **0.3 percentage points higher** than the national average[10](index=10&type=chunk) - The banking industry faces multiple challenges, including continuously narrowing net interest margins and intensified "involutionary" competition[11](index=11&type=chunk) - Luzhou Bank's operations in the first half of the year showed a good trend of **stable scale growth, improved efficiency, and controllable risks**[11](index=11&type=chunk) [Development Strategy](index=7&type=section&id=2.%20Development%20Strategy) In the second half of 2025, Luzhou Bank will focus on high-quality development, business transformation, asset structure optimization, liability cost reduction, credit risk control, fintech investment, and integration into regional economic strategies - Anchor high-quality development goals, unswervingly promote business transformation, and continuously optimize asset structure[12](index=12&type=chunk) - Continuously reduce liability costs and increase the proportion of high-quality customers through innovative measures[12](index=12&type=chunk) - Further strengthen full-process credit risk management and proactively prevent reputational risks[12](index=12&type=chunk) - Continue to increase investment in financial technology to solidify the foundation of financial technology[12](index=12&type=chunk) - Closely align with the Chengdu-Chongqing economic circle and Luzhou's "one body, two wings" development strategy, actively integrating into the overall regional economic development[12](index=12&type=chunk) [Income Statement Analysis](index=8&type=section&id=3.%20Income%20Statement%20Analysis) In the first half of 2025, Luzhou Bank's pre-tax profit and net profit increased by 19.78% and 11.65% year-on-year, respectively, primarily due to a significant reduction in expected credit losses, despite a 14.57% decrease in operating income 2025 H1 Income Statement Key Item Changes (RMB Thousand) | Item | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Pre-tax Profit | 1,239,926 | 1,035,133 | +204,793 | | Net Profit | 902,489 | 808,336 | +94,153 | | Operating Income | 2,422,775 | 2,835,908 | -413,133 | | Expected Credit Losses / Other Asset Impairment Losses | (215,577) | (903,809) | +688,232 | [Financial Performance Summary](index=8&type=section&id=3.1%20Financial%20Performance%20Summary) In the first half of 2025, Luzhou Bank's pre-tax profit increased by 19.78% year-on-year to RMB 1.24 billion, and net profit increased by 11.65% to RMB 902 million, mainly driven by a significant reduction in expected credit losses 2025 H1 Pre-tax Profit Change Impact (RMB Thousand) | Item | Amount | | :--- | :--- | | Pre-tax Profit for the 6 months ended June 30, 2024 | 1,035,133 | | Change in Net Interest Income | 139,343 | | Change in Net Fee and Commission Income | (3,932) | | Change in Net Gains from Trading Activities, Financial Investments, and Other Operating Income | (548,544) | | Change in Operating Expenses | (70,185) | | Change in Expected Credit Losses / Other Asset Impairment Losses | 688,232 | | Change in Share of Profit of Associates | (121) | | Pre-tax Profit for the 6 months ended June 30, 2025 | 1,239,926 | [Operating Income](index=9&type=section&id=3.2%20Operating%20Income) In the first half of 2025, Luzhou Bank's operating income decreased by 14.57% year-on-year to RMB 2.42 billion, with net interest income's share rising to 78.30% and non-interest net income's share falling to 21.70% 2025 H1 Operating Income Composition (%) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Net Interest Income | 78.30 | 61.98 | | Net Fee and Commission Income | 3.25 | 2.91 | | Net Gains from Trading Activities, Financial Investments, and Other Operating Income | 18.45 | 35.11 | | Total | 100.00 | 100.00 | [Net Interest Income](index=9&type=section&id=3.3%20Net%20Interest%20Income) In the first half of 2025, Luzhou Bank's net interest income increased by 7.93% year-on-year to RMB 1.897 billion, driven by growth in interest-earning assets and a decrease in interest-bearing liability costs, despite declines in net interest margin and net interest spread - Net interest income increased by **7.93%** year-on-year to **RMB 1.897 billion**, primarily due to growth in interest-earning assets and a decrease in interest-bearing liability costs[19](index=19&type=chunk) - Net interest margin decreased by **0.11 percentage points** to **2.44%**, and net interest spread decreased by **0.06 percentage points** to **2.71%**[24](index=24&type=chunk) 2025 H1 Net Interest Income Change Analysis (RMB Thousand) | Item | Scale Factor | Interest Rate Factor | Net Increase (Decrease) | | :--- | :--- | :--- | :--- | | Change in Interest Income | 466,459 | (339,869) | 126,590 | | Change in Interest Expense | 292,072 | (304,825) | (12,753) | | Change in Net Interest Income | 174,387 | (35,044) | 139,343 | [Interest Income](index=11&type=section&id=3.4%20Interest%20Income) In the first half of 2025, Luzhou Bank's interest income increased by 3.38% year-on-year to RMB 3.872 billion, primarily driven by the growth in interest-earning assets, with customer loan interest income being the main contributor - Interest income increased by **3.38%** year-on-year to **RMB 3.872 billion**, mainly influenced by the growth in interest-earning assets[27](index=27&type=chunk) - Customer loan interest income: **RMB 3.354 billion**, a year-on-year increase of **7.15%**[28](index=28&type=chunk) - Investment interest income: **RMB 421 million**, a year-on-year decrease of **19.46%**, mainly due to a decrease in the average yield on investments[31](index=31&type=chunk) - Interest income from balances with central bank: **RMB 66 million**, a year-on-year increase of **18.16%**, mainly due to an increase in deposit size[33](index=33&type=chunk) [Interest Expense](index=13&type=section&id=3.5%20Interest%20Expense) In the first half of 2025, Luzhou Bank's interest expense decreased by 0.64% year-on-year to RMB 1.975 billion, primarily due to a decrease in the average cost of interest-bearing liabilities, with customer deposit interest expense and debt instrument interest expense being the main components - Interest expense decreased by **0.64%** year-on-year to **RMB 1.975 billion**, primarily due to a decrease in the average cost of interest-bearing liabilities[34](index=34&type=chunk) - Customer deposit interest expense: **RMB 1.713 billion**, a year-on-year increase of **2.79%**[35](index=35&type=chunk) - Interest expense on deposits from and borrowings from banks and other financial institutions: **RMB 38 million**, a year-on-year decrease of **45.85%**, mainly due to a decrease in scale[38](index=38&type=chunk) - Interest expense on debt instruments issued: **RMB 172 million**, a year-on-year decrease of **8.84%**, mainly due to a decrease in the average cost rate[39](index=39&type=chunk) [Net Non-Interest Income](index=14&type=section&id=3.6%20Net%20Non-Interest%20Income) In the first half of 2025, Luzhou Bank's net non-interest income significantly decreased by 51.24% year-on-year to RMB 526 million, primarily due to a reduction in net gains from trading activities, financial investments, and other operating income - Net non-interest income decreased by **51.24%** year-on-year to **RMB 526 million**[41](index=41&type=chunk) 2025 H1 Net Non-Interest Income Composition (RMB Thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Net Fee and Commission Income | 78,660 | 82,592 | | Net Gains from Trading Activities, Financial Investments, and Other Operating Income | 447,092 | 995,636 | | Total Net Non-Interest Income | 525,752 | 1,078,228 | [Net Fee and Commission Income](index=14&type=section&id=3.7%20Net%20Fee%20and%20Commission%20Income) In the first half of 2025, Luzhou Bank's net fee and commission income decreased by 4.76% year-on-year to RMB 78.66 million, mainly due to a decline in wealth management business fee income - Net fee and commission income decreased by **RMB 3.932 million** to **RMB 78.66 million** year-on-year[42](index=42&type=chunk) 2025 H1 Fee and Commission Income Composition (RMB Thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Wealth Management Business Fee Income | 78,907 | 94,274 | | Agency Business Fee Income | 5,301 | 1,254 | | Guarantee and Commitment Business Fee Income | 13,342 | 3,991 | | Total Fee and Commission Income | 102,556 | 104,615 | | Fee and Commission Expense | (23,896) | (22,023) | | Net Fee and Commission Income | 78,660 | 82,592 | [Net Gains from Trading Activities, Financial Investments, and Other Operating Income](index=15&type=section&id=3.8%20Net%20Gains%20from%20Trading%20Activities%2C%20Financial%20Investments%2C%20and%20Other%20Operating%20Income) In the first half of 2025, Luzhou Bank's combined net gains from trading activities, financial investments, and other operating income decreased by 55.09% year-on-year to RMB 447 million, with all components showing a downward trend - Combined net gains from trading activities, financial investments, and other operating income decreased by **RMB 549 million**, a **55.09%** decrease year-on-year[45](index=45&type=chunk) 2025 H1 Net Gains from Trading Activities, Financial Investments, and Other Operating Income Composition (RMB Thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Net Gains from Trading Activities | 321,174 | 492,091 | | Net Gains from Financial Investments | 88,745 | 197,435 | | Other Operating Income | 37,173 | 306,110 | | Total | 447,092 | 995,636 | [Operating Expenses](index=15&type=section&id=3.9%20Operating%20Expenses) In the first half of 2025, Luzhou Bank's operating expenses increased by 7.82% year-on-year to RMB 968 million, primarily due to increased staff costs, while business and administrative expenses decreased - Operating expenses increased by **7.82%** year-on-year to **RMB 968 million**[47](index=47&type=chunk) - Staff costs increased by **7.76%** year-on-year to **RMB 479 million**[47](index=47&type=chunk) - Business and administrative expenses decreased by **5.32%** year-on-year to **RMB 281 million**[47](index=47&type=chunk) [Expected Credit Losses / Other Asset Impairment Losses](index=16&type=section&id=3.10%20Expected%20Credit%20Losses%20%2F%20Other%20Asset%20Impairment%20Losses) In the first half of 2025, Luzhou Bank's expected credit losses / other asset impairment losses significantly decreased by 76.15% year-on-year to RMB 216 million, with loan expected credit losses decreasing by 28.60% - Expected credit losses / other asset impairment losses decreased by **76.15%** year-on-year to **RMB 216 million**[50](index=50&type=chunk) - Loan expected credit losses were **RMB 452 million**, a year-on-year decrease of **28.60%**[52](index=52&type=chunk) 2025 H1 Major Components of Expected Credit Losses (RMB Thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Expected Credit Losses on Loans Measured at Amortized Cost | 451,919 | 630,126 | | Expected Credit Losses on Credit-Type Financial Investments | (231,868) | 22,072 | | Expected Credit Losses on Financial Assets Measured at Amortized Cost | 4,446 | 248,389 | | Total | 215,577 | 903,809 | [Analysis of Key Balance Sheet Items](index=17&type=section&id=4.%20Analysis%20of%20Key%20Balance%20Sheet%20Items) As of June 30, 2025, Luzhou Bank's total assets increased by 12.43% year-on-year to RMB 192.25 billion, driven by loan growth, while total liabilities increased by 13.06% to RMB 179.26 billion, with customer deposits as the primary funding source - Total assets increased by **12.43%** year-on-year to **RMB 192.25 billion**, primarily due to growth in customer loans and other items[53](index=53&type=chunk) - Total liabilities increased by **13.06%** year-on-year to **RMB 179.26 billion**, mainly due to steady growth in customer deposits[74](index=74&type=chunk) - Shareholders' equity increased by **4.44%** year-on-year to **RMB 12.993 billion**[80](index=80&type=chunk) [Assets](index=17&type=section&id=4.1%20Assets) As of June 30, 2025, Luzhou Bank's total assets increased by 12.43%, with net customer loans accounting for 58.20% and financial investments for 18.49% of total assets; corporate loans grew by 15.78%, while personal loans decreased by 4.37% 2025 H1 Total Assets Composition (RMB Thousand) | Item | Amount | Percentage of Total % | | :--- | :--- | :--- | | Net Customer Loans | 111,900,229 | 58.20 | | Financial Investments - Financial Assets at Fair Value Through Profit or Loss | 35,550,571 | 18.49 | | Financial Investments - Financial Assets at Amortized Cost | 20,638,532 | 10.74 | | Total Assets | 192,253,762 | 100.00 | - Total customer loans were **RMB 117.59 billion**, an increase of **13.15%** from the end of the previous year[57](index=57&type=chunk) - Total corporate loans were **RMB 103.78 billion**, an increase of **15.78%** from the end of the previous year, accounting for **88.26%** of total customer loans[59](index=59&type=chunk) - Personal loans were **RMB 12.845 billion**, a decrease of **4.37%** from the end of the previous year, accounting for **10.92%** of total customer loans[61](index=61&type=chunk) - Investment book value was **RMB 63.61 billion**, an increase of **9.88%** from the end of the previous year[62](index=62&type=chunk) [Liabilities](index=21&type=section&id=4.2%20Liabilities) As of June 30, 2025, Luzhou Bank's total liabilities increased by 13.06%, with customer deposits accounting for 86.51% as the primary funding source, and corporate demand deposits' share of total customer deposits increasing 2025 H1 Total Liabilities Composition (RMB Thousand) | Item | Amount | Percentage of Total % | | :--- | :--- | :--- | | Customer Deposits | 155,081,860 | 86.51 | | Debt Instruments Issued | 14,366,963 | 8.01 | | Borrowings from Central Bank | 5,609,509 | 3.13 | | Total Liabilities | 179,260,751 | 100.00 | - Total customer deposits were **RMB 155.082 billion**, an increase of **14.61%** from the end of the previous year[76](index=76&type=chunk) - The proportion of corporate demand deposits to total customer deposits was **32.43%**, an increase of **2.65 percentage points** from the end of the previous year[77](index=77&type=chunk) - Debt instruments issued were **RMB 14.367 billion**, an increase of **12.72%** from the end of the previous year[79](index=79&type=chunk) [Shareholders' Equity](index=23&type=section&id=4.3%20Shareholders%27%20Equity) As of June 30, 2025, Luzhou Bank's total shareholders' equity was RMB 12.993 billion, an increase of 4.44% from the end of the previous year 2025 H1 Shareholders' Equity Composition (RMB Thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Share Capital | 2,717,752 | 2,717,752 | | Other Equity Instruments | 2,399,547 | 2,296,704 | | Retained Earnings | 2,960,546 | 2,627,492 | | Total Shareholders' Equity | 12,993,011 | 12,440,404 | [Other Financial Information](index=23&type=section&id=5.%20Other%20Financial%20Information) As of the end of the reporting period, Luzhou Bank's credit commitments amounted to RMB 4.042 billion, with no overdue debts, and some assets were pledged to the central bank as collateral - Credit commitments amounted to **RMB 4.042 billion**, representing the main component of off-balance sheet items[82](index=82&type=chunk) - There were no overdue debts at the end of the reporting period[83](index=83&type=chunk) - Some assets were pledged to the central bank as collateral in accordance with agreements[84](index=84&type=chunk) [Loan Quality Analysis](index=24&type=section&id=6.%20Loan%20Quality%20Analysis) As of June 30, 2025, Luzhou Bank's total loans increased by 13.13%, with the non-performing loan ratio slightly decreasing by 0.01 percentage points to 1.18%; corporate loan NPL ratio remained flat, while retail loan NPL ratio increased by 0.52 percentage points to 4.18% - Total loans were **RMB 116.829 billion**, an increase of **13.13%** from the end of the previous year[85](index=85&type=chunk) - Total non-performing loans were **RMB 1.384 billion**, an increase of **RMB 156 million** from the end of the previous year[85](index=85&type=chunk) - Non-performing loan ratio was **1.18%**, a decrease of **0.01 percentage points** from the end of the previous year[85](index=85&type=chunk) - Corporate loan NPL ratio remained flat compared to the end of the previous year, while retail loan NPL ratio increased by **0.52 percentage points** to **4.18%**[93](index=93&type=chunk)[95](index=95&type=chunk) [Loan Distribution by Five-Category Classification](index=24&type=section&id=Loan%20Distribution%20by%20Five-Category%20Classification) As of June 30, 2025, Luzhou Bank's total non-performing loans amounted to RMB 1.384 billion, with a non-performing loan ratio of 1.18%; the proportion of substandard and doubtful loans decreased, while loss loans increased 2025 H1 Loan Five-Category Classification Distribution (RMB Thousand) | Item | June 30, 2025 Amount | Percentage of Total % | | :--- | :--- | :--- | | Pass Loans | 113,599,469 | 97.24 | | Special Mention Loans | 1,845,647 | 1.58 | | Substandard Loans | 419,716 | 0.36 | | Doubtful Loans | 294,557 | 0.25 | | Loss Loans | 670,106 | 0.57 | | Total Non-performing Loans | 1,384,379 | 1.18 | [Loan and NPL Distribution by Industry](index=25&type=section&id=Loan%20and%20NPL%20Distribution%20by%20Industry) As of June 30, 2025, Luzhou Bank's corporate non-performing loans were primarily concentrated in real estate, leasing and business services, and construction, accounting for 88.10% of total corporate NPLs - Corporate non-performing loans mainly include real estate, leasing and business services, and construction, accounting for **88.10%** of total corporate non-performing loans[89](index=89&type=chunk) 2025 H1 Corporate Loan NPL Ratio (by Industry) | Industry | Loan Amount (RMB Thousand) | NPL Ratio % | | :--- | :--- | :--- | | Real Estate | 7,867,678 | 4.94 | | Leasing and Business Services | 35,613,768 | 0.56 | | Construction | 34,522,607 | 0.46 | [Loan and NPL Distribution by Product Type](index=26&type=section&id=Loan%20and%20NPL%20Distribution%20by%20Product%20Type) As of June 30, 2025, corporate loans' share increased to 88.83% with a flat NPL ratio, while retail loan balance decreased, its share declined, and the NPL ratio rose by 0.52 percentage points to 4.18% - Corporate loan share increased by **2.03 percentage points** to **88.83%**, with the NPL ratio remaining flat[92](index=92&type=chunk)[93](index=93&type=chunk) - Retail loan balance decreased by **RMB 587 million**, its share decreased by **2.02 percentage points** to **10.99%**, and the non-performing loan ratio increased by **0.52 percentage points** to **4.18%**[94](index=94&type=chunk)[95](index=95&type=chunk) [Loan and NPL Distribution by Region](index=27&type=section&id=Loan%20and%20NPL%20Distribution%20by%20Region) As of June 30, 2025, loans in Luzhou accounted for 66.71% of the total with an NPL ratio of 1.25%, while loans outside Luzhou accounted for 33.29% with an NPL ratio of 1.05% 2025 H1 Loan NPL Ratio (by Region) | Region | Loan Amount (RMB Thousand) | Percentage of Total % | NPL Ratio % | | :--- | :--- | :--- | :--- | |

格隆汇8月18日丨泸州银行(01983.HK)公告，董事会会议将于2025年8月28日(星期四)举行，藉以(其中包 括)考虑及批准本行截至2025年6月30日止6个月中期业绩及其发布，并考虑建议派发中期股息(如有)。 ...

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，概不會就因本公告全部或任何部分內容而產生或因 依賴該等內容而引致之任何損失承擔任何責任。 （於中華人民共和國註冊成立的股份有限公司） （股份代號：1983） 董事會會議通告 瀘州銀行股份有限公司（「本行」）董事會（「董事會」）謹此宣佈，董事會會議將於 2025年8月28日（星期四）舉行，藉以（其中包括）考慮及批准本行截至2025年6月 30日止六個月之中期業績及其發佈，並考慮建議派發中期股息（如有）。 承董事會命 瀘州銀行股份有限公司* 董事長 游江 中國瀘州，2025年8月18日 截至本公告日期，董事會成員包括執行董事游江先生及劉仕榮先生；非執行董事 潘麗娜女士、熊國銘先生、羅火明先生及陳萍女士；以及獨立非執行董事鍾錦先 生、高晉康先生、程如龍先生、韓子榮先生及范靜東先生。 * 瀘州銀行股份有限公司並非香港法例第155章《銀行業條例》所指認可機構，不受香港金融 管理局的監督，亦不獲授權在香港經營銀行╱接受存款業務。 ...