Financial Performance - For the first half of 2025, the company reported operating income of RMB 21,157 million, an increase of 2.25% compared to RMB 20,692 million in the same period of 2024[21]. - The pre-tax profit for the first half of 2025 was RMB 10,706 million, reflecting a growth of 5.14% from RMB 10,183 million in the previous year[23]. - Net profit reached RMB 9,328 million, up 3.81% from RMB 8,986 million year-on-year[21]. - The company's operating expenses for the first half of 2025 were RMB 49.42 billion, a decrease of 0.76% from RMB 49.80 billion in the same period of 2024[46]. - Non-interest net income for the first half of 2025 was RMB 6.627 billion, an increase of RMB 621 million or 10.34% year-on-year, primarily due to increased net gains from financial investments[40]. - The company's net profit from corporate banking for the first half of 2025 was RMB 8,013 million, accounting for 48.94% of total profits, down from 58.74% in 2024[88]. Asset and Liability Management - Total assets as of June 30, 2025, amounted to RMB 2,518,540 million, an increase of 11.82% from RMB 2,013,753 million at the end of the previous year[21]. - Total liabilities reached RMB 2,085,296 million as of June 30, 2025, reflecting a year-on-year increase of 12.59%[66]. - Customer deposits amounted to RMB 1,252,004 million, a growth of 9.92% compared to the previous year, accounting for 60.04% of total liabilities[68]. - The average balance of customer deposits was RMB 1,201.656 billion, with interest expenses amounting to RMB 11.368 billion, reflecting a cost rate of 1.91%[37]. - The capital adequacy ratio as of June 30, 2025, was 13.27%, down from 13.72% at the end of 2024[83]. Loan and Credit Quality - The total amount of customer loans and advances was RMB 1,100,533 million, representing a 9.82% increase from RMB 1,002,166 million at the end of 2024[21]. - The non-performing loan ratio improved to 0.98%, down from 1.14% a year earlier[22]. - The non-performing loan coverage ratio increased to 289.94%, up from 272.51% in the previous year[22]. - The distribution of loans by product type shows that corporate loans accounted for 63.80% of total loans, with a non-performing rate of 0.84%[72]. - The bank actively increased efforts in handling non-performing loans during the first half of 2025[71]. Interest Income and Expenses - The company's net interest margin for the first half of 2025 was 1.37%, a decrease of 20 basis points compared to the same period last year[16]. - Interest income from financial investments was RMB 9.843 billion, a decrease of RMB 651 million or 6.20% year-on-year[33]. - The company's interest expense for the first half of 2025 was RMB 18.542 billion, a decrease of RMB 489 million or 2.57% year-on-year[35]. - The average yield on customer loans and advances was 3.78%, down from 4.28% year-on-year[32]. Strategic Focus and Business Development - The bank's business strategy focuses on serving local economies, small and medium-sized enterprises, and the general public[12]. - The company aims to strengthen its growth engine by focusing on high-quality customer segments and optimizing asset-liability management[94]. - The company plans to innovate targeted financial products to support the national strategy of expanding domestic demand[94]. - The bank is committed to enhancing risk management through a comprehensive digital risk control system utilizing big data and AI technologies[96]. - The bank's strategic focus includes supporting rural revitalization and enhancing elderly financial services[160]. Shareholder Structure and Governance - As of June 30, 2025, the total number of ordinary shares is 13,889,801,211, with domestic shares accounting for 10,411,051,211 shares (74.95%) and H shares for 3,478,750,000 shares (25.05%)[164]. - The company has no controlling shareholder or actual controller[164]. - The top ten ordinary shareholders hold a total of 25.02% of the ordinary shares, with HKSCC NOMINEES LIMITED holding 3,475,339,078 shares, representing 25.02% of the total ordinary shares[166]. - The company has seen a stable shareholder base, with no significant changes in major shareholdings reported in the latest filings[171]. Risk Management - The company is implementing a "Nine Major Enhancement Projects" to strengthen its comprehensive risk management system[134]. - The bank has established a comprehensive liquidity risk management strategy to balance liquidity, safety, and profitability, ensuring sufficient funds to meet expected and unexpected cash demands[142]. - The bank's liquidity coverage ratio as of June 30, 2025, was 389.95%, with qualified liquid assets amounting to RMB 244.47 billion and a net cash outflow of RMB 62.69 billion over the next 30 days[143]. - The bank has established a robust market risk management system to control market risks within acceptable limits[138]. - The bank emphasizes anti-money laundering efforts, enhancing risk management and compliance mechanisms to prevent and control money laundering activities[151]. Employee and Organizational Development - The company employed 13,040 staff, with 25.10% holding master's degrees or higher and 51.10% being female[195]. - The company has established a three-tier compensation management system involving the board, senior management, and branch institutions, ensuring performance-based pay is aligned with strategic goals[196]. - During the reporting period, the company conducted extensive training programs, achieving a total of 718,000 learning instances and 1.172 million hours of training across various platforms[198]. - The company emphasizes employee diversity, ensuring equal rights in recruitment, position adjustments, training, and promotions[195]. - The company has restructured its governance framework, merging the IT and system development departments into a Financial Technology Department and renaming the Big Data Department to Data Management and Innovation Department[200].

Group 1 - The core viewpoint of the announcement is that Huishang Bank aims to enhance business management by establishing a performance assessment management platform that integrates business data for performance evaluation services [1] - The platform will include functionalities such as performance management, planning management, indicator management, program management, assessment evaluation, data analysis, and system management [1] - Huishang Bank is inviting qualified companies to participate in discussions regarding the development of this platform [1] Group 2 - The exchange content includes company introduction, R&D team presentation, performance assessment management platform solutions and technical architecture, implementation case studies from the banking industry over the past three years, and interactive Q&A [2] - Companies must be legally registered entities in China with good operational status and no serious violations or credit issues listed in the national enterprise credit information public system [3] - Interested companies are required to submit their registration information and relevant materials by September 1, 2025, for review and potential participation in the exchange [4] Group 3 - The specific date, location, and method for the exchange will be notified later [5]

Core Viewpoint - Huishang Bank has achieved significant milestones in its 20 years of operation, focusing on high-quality financial services and contributing to local economic development, with total assets reaching approximately 2.25 trillion yuan and a strong position in the global banking sector [2] Group 1: Financial Performance and Growth - As of June 2025, Huishang Bank's total assets are approximately 2.25 trillion yuan, with both deposits and loans exceeding 1 trillion yuan [2] - The bank has been recognized as "excellent" in serving the local economy in Anhui Province and ranked 101st in the 2025 Global Top 1000 Banks by The Banker magazine [2] - The bank's technology loan balance surpassed 200 billion yuan, growing by 19.57% since the beginning of the year [3] - Manufacturing loans reached nearly 160 billion yuan, with an increase of over 18% [3] - The balance of supply chain finance exceeded 20 billion yuan, growing by 48% [3] Group 2: Innovation and Development - Huishang Bank emphasizes innovation, launching various financial products and services, including the first batch of technology innovation bonds worth 5 billion yuan [3] - The bank's investment banking bond issuance exceeded 29 billion yuan, and its custody scale surpassed 1.2 trillion yuan [4] - The bank has developed a digital service platform and upgraded its mobile banking app, with over 11 million users [4] Group 3: Risk Management and Compliance - The bank focuses on comprehensive risk management, enhancing its credit risk digital transformation and establishing a "1+N" smart risk control system [5] - The non-performing loan ratio remains low, reflecting the bank's effective asset quality management [5] - Huishang Bank has received high ratings for compliance with regulations, demonstrating its commitment to internal control and risk management [5]

Core Viewpoint - Chinese commercial banks are committed to high-quality development amidst a complex macro environment, maintaining stable operations, enhancing capital strength, and achieving steady growth in profitability while managing risks effectively [1][2]. Group 1: Current Challenges and Opportunities - The pressure on interest margins is a significant challenge faced by commercial banks, while there remains substantial growth potential in retail banking, particularly in product management and wealth management [1][2]. - The Central Financial Work Conference emphasizes the importance of technology finance, green finance, inclusive finance, pension finance, and digital finance, marking digital finance as a key focus area for future development [2]. Group 2: Digital Financial Transformation - The application of emerging technologies is reshaping financial service scenarios, leading to a shift towards customer-centric, comprehensive financial solutions that cater to diverse consumer behaviors and preferences [5]. - Commercial banks should focus on five business objectives: digital scenarios, digital products, digital channels, digital operations, and digital risk control to leverage technology effectively [6][7][8][10]. Group 3: Financial Technology Applications - In digital scenarios, banks can collaborate with external institutions to provide personalized financial services through mobile banking and open banking, covering various aspects of customers' daily lives [6]. - For digital products, banks can create differentiated product lines based on customer characteristics and integrate blockchain technology for supply chain financing [7]. - Digital channels should be integrated to ensure seamless customer experiences across various platforms, enhancing service continuity and convenience [8]. Group 4: AI Empowerment in Financial Services - AI technologies can enhance service capabilities in various areas, including smart remote banking, smart operations, smart marketing, smart risk control, and smart office [11][12]. - In smart marketing, AI can assist customer managers in generating marketing strategies and improving customer engagement through personalized services [12]. - The integration of AI in risk control can enhance the accuracy and comprehensiveness of risk assessments, thereby improving overall risk management [12]. Group 5: Conclusion and Future Directions - The ongoing application of financial technology and AI can significantly improve the quality and efficiency of financial services provided by commercial banks, enabling them to offer superior service experiences to customers [13].

Core Viewpoint - The governance issues at Huishang Bank have become a critical topic due to the history of corruption among its past chairpersons, leading to questions about the relationship between personnel changes and governance [4][6]. Group 1: Leadership Changes - Huishang Bank announced the resignation of Chairman Yan Chen due to "work adjustment," along with the relinquishment of several key positions [4]. - The new leadership is expected to continue the trend of appointing individuals from the political sphere in Anhui [5]. Group 2: Historical Context - Since its establishment in 2005, Huishang Bank has been characterized by strong ties between politics and business, leveraging local government support for rapid growth [6]. - The bank became the first Anhui city commercial bank to list on the Hong Kong Stock Exchange in 2013, but its growth has been marred by political influences [6]. Group 3: Corruption Cases - Over its 20-year history, five chairpersons have led Huishang Bank, with three ultimately facing corruption charges, a notable statistic among city commercial banks [7]. - The first chairperson, Dai Hedi, was sentenced to 12 years for accepting bribes related to loan approvals [7]. - The fourth chairperson, Wu Xueming, was expelled from the party and investigated for severe violations, including bribery, during a critical phase for the bank [7]. - The third chairperson, Li Hongming, was sentenced to 14 years and 6 months for bribery and abuse of power, with illegal gains exceeding tens of millions [7]. Group 4: Governance and Operational Issues - The recurring theme of corruption among leadership reflects a broader issue of governance within the bank, where external political influences overshadow market-driven governance [8]. - High-level corruption has also been reported among other executives, indicating systemic issues within the bank's operational structure [10]. - The bank's ongoing efforts to return to the A-share market have been hindered by governance deficiencies, shareholder disputes, and compliance issues [11]. Group 5: Financial Performance - Despite governance challenges, Huishang Bank has achieved significant asset growth, reaching a scale of 2 trillion yuan, with projected revenues of 37.1 billion yuan and net profits of 15.9 billion yuan for 2024 [11]. - However, without strengthening governance, the potential benefits of growth may be undermined by non-performing assets and compliance risks [12].

Core Viewpoint - Huishang Bank announced a system upgrade scheduled from September 5, 2025, 18:00 to September 8, 2025, 8:00, during which various services will be temporarily suspended to enhance financial service quality and efficiency [1]. Service Suspension Details - The upgrade will affect multiple services, including third-party payment services like Alipay and WeChat, which will be suspended from September 5, 15:00 to September 8, 8:00 [2]. - Specific services and their suspension times include: - Wealth management sales (non-Huishang wealth management) from September 5, 15:00 to September 8, 8:00 [2]. - Utility payments (water, electricity, gas, etc.) from September 5, 15:00 to September 8, 8:00 [2]. - Credit card transactions, loan applications, and repayments from September 5, 15:00 to September 8, 8:00 [2]. - Debit card services (transfers, withdrawals) from September 5, 18:00 to September 8, 8:00 [2]. - The bank advises customers to prepare for any financial needs or repayments in advance due to the service interruptions [1].

Group 1 - The core viewpoint of the articles indicates that Chinese bank stocks are experiencing a collective rise, with specific banks like Agricultural Bank and Bank of Communications seeing increases of over 1% [1][2] - Morgan Stanley's report suggests that Chinese bank stocks are expected to rise further due to the stabilization of net interest margins and growth in fee income, with a potential upside of 15% for A-share banks and 8% for Hong Kong bank stocks [1] - UBS analysts express an optimistic outlook for foreign investment in the Chinese stock market, predicting that the liquidity-driven bull market rebound will last at least until September [1] Group 2 - Specific stock performance data shows Agricultural Bank at 5.470 with a rise of 1.11%, Bank of Communications at 6.910 with a rise of 1.02%, and other banks like CITIC Bank and China Merchants Bank also showing positive changes [2] - The report highlights that several banks, including China Bank, Industrial and Commercial Bank, and China Construction Bank, have recorded varying degrees of increases, contributing to the overall positive sentiment in the banking sector [2]

格隆汇8月18日丨徽商银行(03698.HK)宣布，本行将于2025年8月28日（星期四）上午9时30分举行董事 会会议，藉以（其中包括）考虑及批准本行及其附属公司截至2025年6月30日止六个月的未经审计的中 期业绩及其发布以及处理其他事项。 ...

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，概不就因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致之任何損失承擔任何責任。 Huishang Bank Corporation Limited* 徽商銀行股份有限公司 * （於中華人民共和國註冊成立的股份有限公司） （股份代號：3698） 董事會會議通告 徽商銀行股份有限公司（「本行」）董事會（「董事會」）謹此宣佈，本行將於2025年8 月28日（星期四）上午9時30分舉行董事會會議，藉以（其中包括）考慮及批准本行 及其附屬公司截至2025年6月30日止六個月之未經審計的中期業績及其發佈以及 處理其他事項。 徽商銀行股份有限公司* 董事會 中國安徽省合肥市 2025年8月18日 於本公告日期，本行董事會成員包括執行董事孔慶龍；非執行董事馬淩霄、盧 浩、王朝暉、左敦禮、Gao Yang（高央）及王文金；獨立非執行董事戴培昆、周亞 娜、劉志強、殷劍峰、黃愛明及徐佳賓。 * 徽商銀行股份有限公司根據銀行業條例（香港法例第155章）並非一家認可機構，並非受限 於香港金融管理局的監督，及 ...

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