Financial Performance - The net profit attributable to shareholders for 2023 was RMB 14,433 million, an increase of 7.73% compared to RMB 13,398 million in 2022[42]. - The total operating income for 2023 was RMB 36,365 million, reflecting a slight increase of 0.37% from RMB 36,230 million in 2022[43]. - The pre-tax profit for 2023 reached RMB 17,657 million, which is a 1.98% increase from RMB 17,315 million in the previous year[43]. - The net profit for 2023 was RMB 14,991 million, showing a growth of 9.56% compared to RMB 13,683 million in 2022[43]. - The basic earnings per share for 2023 was RMB 1.00, up from RMB 0.93 in 2022, marking a 7.53% increase[42]. - The diluted earnings per share also stood at RMB 1.00 for 2023, reflecting the same growth of 7.53% from the previous year[42]. - The year-end net asset value per share was RMB 8.85, an increase of 12.17% from RMB 7.89 in 2022[42]. - The total operating expenses for 2023 were RMB 10.199 billion, an increase of RMB 725 million, representing a growth of 7.65%[83]. - The total profit before impairment for 2023 was RMB 26,455 million, a decrease of 1.93% from RMB 26,977 million in 2022[129]. Asset and Liability Management - Total assets reached RMB 1,806,144 million, an increase of 14.3% compared to RMB 1,580,236 million in 2022[10]. - Total liabilities increased by 13.86% to RMB 1,659,417 million from RMB 1,457,414 million[10]. - The total amount of customer loans and advances reached RMB 874.223 billion, growing by 14.38% year-on-year, accounting for 48.40% of total assets[89]. - The total customer deposits reached RMB 1,020.16 billion, an increase of 14.09% year-on-year, accounting for 61.48% of total liabilities[105]. - The bank's total equity reached RMB 146,727 million, an increase from RMB 122,822 million, marking a growth of 19.5%[107]. - The bank's borrowings from the central bank rose to RMB 138.09 billion, up from RMB 82.91 billion, reflecting an increase of 66.67%[104]. Risk Management - The non-performing loan ratio improved to 1.26%, down from 1.49% in the previous year[48]. - The capital adequacy ratio increased to 13.21% from 12.02% in 2022, indicating a stronger capital position[49]. - The bank's focus on risk management has led to a decrease in the amount of substandard loans, which fell to RMB 56.96 million from RMB 24.42 million, reflecting improved asset quality[109]. - The bank's provision for loan impairment decreased to RMB 299.72 billion by the end of 2023, down from RMB 314.21 billion at the beginning of the year[123]. - The bank's non-performing loan (NPL) ratio improved to 1.26%, down by 0.23 percentage points from the previous year[109]. - The bank's credit risk management focuses on maintaining asset quality and enhancing risk management capabilities, with a commitment to prudent and rational risk preferences[172]. Digital Transformation and Innovation - Digital banking initiatives accelerated, with the launch of various financial technology projects, including an internet finance cloud platform[54]. - The company launched 83 financial technology projects, enhancing digital transformation and operational efficiency[60]. - The bank is enhancing its digital infrastructure, including the establishment of a private cloud platform and a new generation wide-area network architecture[187]. - The bank is focusing on the integration of business and technology, achieving significant results in key project promotion and customer experience optimization[187]. - The bank's IT personnel account for 5.51% of the total workforce, with 640 employees dedicated to information technology[186]. Customer and Market Engagement - The number of core enterprise customers increased by 110% year-on-year, while upstream and downstream customer numbers grew by 146%[143]. - The bank's cash management signed customer count reached 10,908, a growth of 26.06% year-on-year, with annual transaction volume reaching RMB 6.4 trillion, up 28.26%[143]. - The cumulative effective credit card count was 2.4375 million, with a transaction volume of RMB 33.315 billion and revenue of RMB 989 million for the year[149]. - The personal wealth management business scale reached RMB 182.695 billion, with high-net-worth customers numbering 96,600 and total wealth customers at 975,600[147]. - The bank's debit card holdings reached 19.7789 million cards, with an annual increase of 1.6316 million cards, and card deposits grew by 11.02% year-on-year to RMB 231.876 billion[148]. Awards and Recognition - The company received multiple awards in 2023, including recognition for its mobile banking app's potential development in the Yangtze River Delta region[40]. - The company was awarded for its innovative risk management case in the financial services sector in 2023[41]. - The company achieved a top five ranking in a national competition for its intelligent voice technology application in customer service[41]. Economic and Market Context - The overall economic environment in China showed stability with a GDP growth of 5.2% in 2023, contributing to the bank's performance[136]. - Anhui's GDP reached CNY 4.71 trillion in 2023, growing by 5.8%, which is 2.3 percentage points higher than the previous year and 0.6 percentage points above the national average[200]. - The province's industrial added value increased by 7.5% year-on-year, with fixed asset investment growing by 4%, and manufacturing investment surging by 20%[200]. - The total import and export volume in Anhui rose by 7.8%, indicating robust trade activity[200].

Bank Overview - Huishang Bank's registered capital reached RMB 13,889,801,211 as of the end of 2023[37]. - The bank was established through the merger of multiple regional banks and credit cooperatives, officially starting operations on January 1, 2006[37]. - The bank's headquarters is located in Hefei, Anhui Province, China[37]. - The bank's financial license was approved by the former China Banking Regulatory Commission[37]. - The bank's major operating location in Hong Kong is at 40th Floor, Daxin Financial Center, 248 Queen's Road East, Wanchai[35]. - The bank's H-shares were listed on the Hong Kong Stock Exchange on November 12, 2013, with stock code 3698[37]. - The bank is not subject to supervision by the Hong Kong Monetary Authority and is not authorized to operate banking or deposit-taking businesses in Hong Kong[2]. - The bank's official website is www.hsbank.com.cn, providing contact information and further details[35]. Financial Performance - Operating revenue for 2023 reached RMB 36,365 million, a slight increase of 0.37% compared to RMB 36,230 million in 2022[47]. - Net profit for 2023 was RMB 14,991 million, representing a growth of 9.56% from RMB 13,683 million in 2022[47]. - Total assets as of December 31, 2023, amounted to RMB 1,806,144 million, an increase of 14.30% from RMB 1,580,236 million in 2022[49]. - Customer loans and advances totaled RMB 874,223 million, reflecting a growth of 14.38% compared to RMB 764,309 million in 2022[49]. - Customer deposits reached RMB 1,020,158 million, up 14.09% from RMB 894,156 million in the previous year[49]. - Basic earnings per share for 2023 were RMB 1.00, a 7.53% increase from RMB 0.93 in 2022[48]. - The non-performing loan ratio improved to 1.26% in 2023, down from 1.49% in 2022[51]. - The capital adequacy ratio increased to 13.21% in 2023, compared to 12.02% in 2022[51]. - The return on average assets (ROA) for 2023 was 0.89%, a decrease from 0.92% in 2022[50]. Awards and Recognition - The bank ranked 123rd in the "Top 1000 World Banks" and 152nd in the "Top 500 Bank Brands" by The Banker magazine in 2023[38]. - The bank was listed 253rd in the "China Top 500" and 352nd in the "China Listed Companies Top 500" rankings[38]. - The bank was recognized as one of the top 40 companies with the highest net profit margin among the "China Listed Companies Top 500," ranking 25th[38]. - The bank received multiple awards in 2023, including recognition as one of the top 10 state-owned enterprises in tax contributions in Anhui Province[39]. - The bank was awarded for its excellent data quality in the personal credit system by the People's Bank of China in August 2023[42]. - The bank's project "Housekeeper e-Account" was recognized as one of the top five in the national digital banking innovation application competition[43]. - The bank received the "Outstanding Service Case Award" for its intelligent voice technology application in account management[43]. - The bank was acknowledged as an advanced unit in financial business and financial enterprise financial statements work by the Anhui Provincial Finance Department[43]. Digital Transformation and Technology - The company plans to continue expanding its digital supply chain financial services and enhance customer engagement through new technology initiatives[46]. - The company launched 83 financial technology projects, enhancing digital transformation and operational efficiency[60]. - The bank has initiated a new generation data warehouse project and is constructing an enterprise-level metadata information library to improve data service efficiency[184]. - The bank is building a secure and efficient digital infrastructure, including a private cloud platform and a new generation wide area network architecture, to support business development[185]. - The bank processed over 3,000 consumer rights protection reviews and conducted more than 140 training sessions, covering over 23,400 personnel, while reaching over 40 million consumers through 5,600 educational activities[189]. Risk Management - The company has implemented a comprehensive risk management framework focusing on maintaining asset quality and enhancing risk management capabilities[171]. - The company has strengthened market risk management by strictly enforcing market risk limits and enhancing the ability to identify and manage market risks[172]. - The company emphasizes the importance of ensuring sufficient liquidity while pursuing profitability growth and value creation[175]. - The company has conducted liquidity risk stress tests, showing that liquidity risk remains within a controllable range under various stress scenarios[176]. - The bank actively enhances its foreign exchange risk management through qualitative and quantitative analyses, employing hedging, limit management, and Value at Risk (VaR) calculations to control potential losses within acceptable limits[179]. - The bank's compliance risk management system is robust, with a three-line defense mechanism and a dual reporting system to ensure effective oversight and control of compliance risks[181]. Customer Engagement and Services - The bank's customer complaints increased by 20.19% year-on-year, totaling 2,423 complaints, primarily related to credit card, personal loan, account management, and internet loan services[189]. - The bank aims to enhance its financial services to support the high-quality development of the real economy, focusing on key areas such as modern industrial systems, technological innovation, and green development[192]. - The bank is committed to supporting the development of small and micro enterprises, aiming to stabilize the economy and reduce financing costs[188]. - The bank's focus on key sectors such as infrastructure, green finance, and advanced manufacturing has led to a robust growth in loans to these areas[138]. Economic Context - The macroeconomic environment in China showed a stable growth rate of 5.2% in 2023, with total economic output exceeding RMB 126 trillion[135]. - The global economic growth is expected to slow down in 2024 due to tightening monetary policies and weak global trade, according to the World Bank[190].

Financial Performance - Operating income for the first half of 2023 was RMB 19,788 million, an increase of 3.52% compared to RMB 19,115 million in the same period of 2022[26]. - Pre-tax profit rose to RMB 9,881 million, reflecting a 15.76% increase from RMB 8,536 million year-on-year[26]. - Net profit reached RMB 8,486 million, up 15.69% from RMB 7,335 million in the first half of 2022[26]. - Net profit attributable to shareholders was RMB 8,102 million, an increase of 11.86% compared to RMB 7,243 million in the previous year[26]. - Basic earnings per share attributable to shareholders increased to RMB 0.58, up 11.54% from RMB 0.52 in the same period last year[27]. Assets and Liabilities - As of June 30, 2023, total assets reached RMB 1,732.89 billion, an increase of 9.66% compared to the end of the previous year[36]. - Total liabilities amounted to RMB 1,602.04 billion, reflecting a 9.92% increase from the previous year-end[36]. - Customer deposits reached RMB 1,005.13 billion, marking a 12.41% increase compared to the end of the previous year[36]. - The total amount of customer loans and advances as of June 30, 2023, was RMB 853.124 billion, an increase of 11.62% year-on-year, accounting for 49.23% of total assets[65]. Profitability Ratios - The net interest margin for the first half of 2023 was 1.79%, a decrease of 6 basis points compared to the same period last year[39]. - The cost-to-income ratio improved to 24.60%, down from 26.15% in the previous year[31]. - The capital adequacy ratio stood at 11.80%, slightly down from 12.02% at the end of the previous year[33]. - The non-performing loan ratio improved to 1.32%, down 0.17 percentage points from the end of the previous year[37]. Income Sources - In the first half of 2023, the company achieved interest income of RMB 32.808 billion, an increase of RMB 3.150 billion or 10.62% year-on-year[45]. - The net interest income for the first half of 2023 was RMB 15.142 billion, an increase of RMB 1.408 billion year-on-year[44]. - For the first half of 2023, the company achieved non-interest income of RMB 4.646 billion, a decrease of RMB 735 million or 13.66% year-on-year, primarily due to a reduction in net fee and commission income[53]. Customer and Market Focus - The bank continues to focus on serving local economies and small to medium-sized enterprises, enhancing its comprehensive strength and management level[24]. - The bank's focus on expanding its deposit business has resulted in a significant increase in personal customer deposits, particularly in time deposits[77]. - The company is committed to supporting key areas such as rural revitalization, green finance, and infrastructure, aligning with provincial strategic deployments[105]. Risk Management - The bank's risk management strategy focuses on stabilizing asset quality and enhancing risk management capabilities, with a digital transformation in risk control[130]. - Credit risk remains the primary risk faced by the bank, with ongoing efforts to optimize asset structure and maintain stable asset quality[131]. - The bank has implemented strict risk limit management to control risks in key areas, ensuring a cautious approach to high-risk products[132]. Employee and Management Structure - As of June 30, 2023, the company had a total of 11,163 employees, with 22.77% holding a master's degree or higher[187]. - The company has a focus on creating a professional, inclusive, and diverse work environment, ensuring equal rights for employees in recruitment and promotion[187]. - The company organized 548 training programs covering over 406,000 participants, focusing on digital transformation and professional development as of June 30, 2023[189]. Shareholder Information - As of June 30, 2023, the total number of ordinary shares is 13,889,801,211, with domestic shares accounting for 10,411,051,211 (74.95%) and H shares for 3,478,750,000 (25.05%)[155]. - The top ten ordinary shareholders hold a total of 25.02% of the ordinary share capital, with the largest shareholder being HKSCC NOMINEES LIMITED, holding 3,475,267,358 shares (25.02%)[156]. - The company has no controlling shareholder or actual controller as of June 30, 2023[155]. Legal and Compliance Matters - The company has established a comprehensive risk management system to enhance operational risk management capabilities and prevent systemic risks[150]. - The company has implemented a revised related party transaction management system in accordance with the latest regulatory requirements[154]. - The bank emphasized anti-money laundering efforts, enhancing employee training and optimizing the anti-money laundering management system[146].

Bank Overview - Huishang Bank's registered capital reached RMB 13,889,801,211 as of June 30, 2023[26]. - The bank was established on April 4, 1997, and was the first regional joint-stock commercial bank formed by the merger of urban commercial banks and credit cooperatives in China[26]. - The bank's H shares were listed on the Hong Kong Stock Exchange on November 12, 2013, with the stock code 3698[26]. - The bank's headquarters is located in Hefei, Anhui Province, China[26]. - The bank's financial license is approved by the former Anhui Banking Regulatory Bureau[26]. - The bank's main operating location in Hong Kong is at 40th Floor, Daxin Financial Center, 248 Queen's Road East, Wanchai[25]. Financial Performance - As of June 30, 2023, the total assets of the company reached RMB 1,732.89 billion, an increase of RMB 152.66 billion or 9.66% compared to the end of the previous year[39]. - The total customer loans and advances amounted to RMB 853.12 billion, up RMB 88.81 billion or 11.62% year-on-year[39]. - The company reported operating income of RMB 197.88 billion for the first half of 2023, an increase of RMB 6.73 billion or 3.52% compared to the same period last year[39]. - The net profit for the first half of 2023 was RMB 84.86 billion, reflecting a year-on-year increase of RMB 11.51 billion or 15.69%[39]. - The non-performing loan ratio improved to 1.32%, down 0.17 percentage points from the end of the previous year[40]. - The pre-tax profit for the first half of 2023 was RMB 98.81 billion, an increase of RMB 13.45 billion or 15.76% year-on-year[40]. - Customer deposits totaled RMB 1,005.13 billion, an increase of RMB 110.98 billion or 12.41% from the end of the previous year[39]. Income and Expenses - Net interest income for the first half of 2023 was RMB 15.142 billion, an increase of RMB 1.408 billion or 10.25% year-on-year[42]. - Total interest income reached RMB 32.808 billion, up RMB 3.150 billion or 10.62% compared to the same period in 2022[48]. - Interest expenses amounted to RMB 17.666 billion, reflecting an increase of RMB 1.742 billion or 10.94% year-on-year[52]. - The net interest margin decreased to 1.79%, down 6 basis points from the previous year, while the net interest yield was 2.00%, down 8 basis points[42]. - Non-interest net income for the first half of 2023 was RMB 4.646 billion, a decrease of RMB 735 million or 13.66% year-on-year, primarily due to a decline in net fee and commission income[56]. - Net fee and commission income for the first half of 2023 was RMB 1.787 billion, a decrease of RMB 1.156 billion or 39.28% year-on-year, mainly due to a reduction in agency business fee income[59]. Asset and Liability Management - As of June 30, 2023, total liabilities amounted to RMB 1,602.04 billion, an increase of 9.92% compared to the end of the previous year, primarily driven by steady growth in customer deposits[79]. - The bank's equity attributable to shareholders was RMB 127.28 billion as of June 30, 2023, an increase from RMB 119.61 billion at the end of 2022[81]. - The capital adequacy ratio stood at 11.80%, a slight decrease from 12.02% at the end of the previous year[36]. - The allowance for loan impairment was RMB 30.86 billion, representing 1.78% of total loans, slightly improved from 1.99% at the end of 2022[68]. Loan Portfolio - The total amount of customer loans and advances reached RMB 853.12 billion, an increase of 11.62% compared to the end of 2022, accounting for 49.23% of total assets[68]. - The corporate loans accounted for RMB 565.53 billion, representing 66.29% of the total loans, with an NPL amount of RMB 0.84 billion and an NPL ratio of 1.49%[83]. - Personal loans amounted to RMB 256.91 billion, making up 30.11% of total loans, with an NPL amount of RMB 2.79 billion and an NPL ratio of 1.09%[83]. Risk Management - The bank is focusing on enhancing risk management capabilities and maintaining asset quality stability amid complex risk conditions[133]. - The bank aims to optimize its asset structure and strengthen credit risk management tools to support sectors like green finance and rural revitalization[134]. - The company has implemented a dynamic risk monitoring system for large key clients, enhancing risk control measures in the real estate sector[135]. Corporate Governance - The company emphasizes the integration of party leadership with corporate governance to enhance operational efficiency and compliance[194]. - The company has maintained a stable governance structure with no changes in major responsibilities of the board and supervisory committees during the reporting period[194]. - The company has established a comprehensive risk control mechanism for related party transactions to improve the precision of its management[157]. Employee and Management - As of June 30, 2023, the company had a total of 11,163 employees, with 22.77% holding a master's degree or higher, and 51.06% holding a full-time bachelor's degree[190]. - The company appointed Mr. Kong Qinglong as the CEO on April 14, 2023, with his qualifications approved by the regulatory authority[186]. - The company emphasizes a professional, inclusive, and diverse work environment, respecting differences in the workplace[190]. Digital Transformation and Innovation - The bank has completed the implementation of key projects in its fintech strategy, including the launch of an internet financial cloud platform and the development of mobile banking systems[150]. - The company is focusing on digital transformation and enhancing operational efficiency through the construction of a new generation wide area network and a unified monitoring platform[151]. Legal and Compliance Issues - The ongoing litigation regarding the equity transfer disputes has not reached a final judgment as of the latest report[179]. - The financial implications of these disputes and share transactions could impact the company's market position and shareholder equity[178].

Financial Performance - In 2022, the company's operating income reached RMB 36,230 million, a 2.02% increase from RMB 35,514 million in 2021[41]. - The pre-tax profit for 2022 was RMB 17,315 million, reflecting a significant growth of 27.91% compared to RMB 13,537 million in 2021[41]. - The net profit attributable to shareholders was RMB 13,398 million, up 16.91% from RMB 11,460 million in the previous year[41]. - The company achieved a net profit of RMB 13.683 billion in 2022, representing a year-on-year increase of 16.11%[62]. - The bank's total profit before impairment for 2022 was RMB 26,977 million, slightly down from RMB 27,085 million in 2021[133]. Asset and Liability Management - Total assets as of December 31, 2022, amounted to RMB 1,580,236 million, representing a 14.21% increase from RMB 1,383,662 million in 2021[42]. - Total liabilities were RMB 1,457.41 billion, up 14.56% year-on-year[50]. - Customer deposits reached RMB 894,156 million, which is a 16.33% increase from RMB 768,668 million in the previous year[42]. - The bank's total equity attributable to shareholders was RMB 119.61 billion, an increase from RMB 108.56 billion in the previous year[109]. Loan and Deposit Growth - Customer loans and advances totaled RMB 764,309 million, marking a 16.72% increase from RMB 654,795 million in 2021[42]. - The balance of loans for rural revitalization strategy reached RMB 200.18 billion, an increase of RMB 42.28 billion from the beginning of the year[56]. - The balance of inclusive loans for small and micro enterprises was RMB 104.56 billion, with an increase of RMB 21.65 billion[56]. - The personal loan segment accounted for RMB 254.08 billion, representing 33.24% of total loans, with an NPL amount of RMB 2.29 billion and an NPL ratio of 0.90%[117]. Non-Performing Loans and Asset Quality - The non-performing loan (NPL) ratio improved to 1.49%, down from 1.78% in the previous year[50]. - The coverage ratio for non-performing loans increased to 276.57%, up from 239.74% year-on-year[47]. - The non-performing loan balance decreased to RMB 11.361 billion, with a non-performing loan ratio of 1.49%, down 0.29 percentage points from the previous year[60]. - The impairment losses on assets in 2022 were RMB 9.662 billion, a decrease of RMB 3.886 billion or 28.68% year-on-year, indicating improved asset quality[87]. Capital Adequacy and Risk Management - The core Tier 1 capital adequacy ratio was 8.60%, slightly up from 8.45% in the previous year[47]. - The capital adequacy ratio as of December 31, 2022, was reported at 12.02%, with a Tier 1 capital ratio of 9.53% and a core Tier 1 capital ratio of 8.60%[129]. - The bank's liquidity coverage ratio reached 292.78% by the end of 2022, with qualified high-quality liquid assets amounting to RMB 133.287 billion[173]. - The bank's credit risk management focused on optimizing credit structure and enhancing asset quality, with significant improvements in risk asset disposal during the reporting period[169]. Digital Transformation and Innovation - The company aims to build a professional, standardized, collaborative, and agile local mainstream bank through digital transformation efforts[187]. - The company completed the construction of a DevOps development management platform to enhance agile development capabilities in personal finance and corporate client management[182]. - The bank is accelerating digital transformation, focusing on online services for supply chain, microfinance, and personal loans to enhance customer experience[188]. - The bank's information technology personnel number stands at 517, accounting for 4.62% of the total workforce, focusing on enhancing technological support capabilities[181]. Customer Engagement and Market Expansion - The number of mobile banking customers reached 8.48 million, a year-on-year increase of 20.33%, with mobile banking transactions totaling 226.81 million, amounting to RMB 1.72 trillion[156]. - The bank's market share for personal deposits increased to 9.32%, a rise of 1.32 percentage points, marking the highest growth in history[193]. - The cash management business signed 8,657 clients, a growth of 70.35% year-on-year, with an annual transaction volume of RMB 4.99 trillion, up 1.22%[143]. - The company launched various marketing campaigns and financial products to enhance market expansion and digital transformation[145]. Compliance and Risk Management - The bank emphasizes anti-money laundering (AML) efforts, implementing a risk-based management approach and utilizing advanced technologies such as machine learning for customer relationship analysis and monitoring model optimization[180]. - The bank's compliance risk management system is robust, with a three-line defense mechanism and a dual reporting system to ensure effective compliance risk control[178]. - In 2022, the bank conducted ongoing compliance risk assessments and enhanced its internal control system, maintaining a good external regulatory evaluation[179]. - The bank's operational risk management system was strengthened, focusing on key risk indicators and enhancing information technology systems to mitigate operational risks[172].

Bank Overview - The registered capital of Huishang Bank Corporation Limited as of the end of 2022 was RMB 13,889,801,211[36]. - Huishang Bank was established on April 4, 1997, and officially commenced operations on January 1, 2006, after merging several regional banks and credit cooperatives[36]. - The bank's H shares were listed on the Hong Kong Stock Exchange on November 12, 2013, under stock code 3698[36]. - The bank's headquarters is located in Hefei, Anhui Province, China[36]. - The bank is a regional joint-stock commercial bank formed by the merger of urban commercial banks and credit cooperatives[36]. - The bank's financial license is approved by the Anhui Banking and Insurance Regulatory Bureau[36]. - The bank's business address is at Huijin Building, 1699 Yungu Road, Hefei, Anhui Province, China[36]. - The bank's major operating location in Hong Kong is at 40th Floor, Daxin Financial Center, 248 Queen's Road East, Wanchai[36]. Financial Performance - Operating income for 2022 reached RMB 36,230 million, a 2.02% increase from RMB 35,514 million in 2021[45]. - Pre-tax profit increased by 27.91% to RMB 17,315 million from RMB 13,537 million in the previous year[45]. - Net profit rose by 16.11% to RMB 13,683 million compared to RMB 11,785 million in 2021[45]. - Total assets as of December 31, 2022, amounted to RMB 1,580,236 million, reflecting a 14.21% growth from RMB 1,383,662 million in 2021[46]. - Customer loans and advances totaled RMB 764,309 million, marking a 16.72% increase from RMB 654,795 million in the previous year[46]. - Total liabilities reached RMB 1,457,414 million, up 14.56% from RMB 1,272,146 million in 2021[46]. - Customer deposits amounted to RMB 894,156 million, a 16.33% increase from RMB 768,668 million in 2021[46]. - Basic earnings per share attributable to shareholders increased by 22.37% to RMB 0.93 from RMB 0.76 in 2021[46]. - Return on average total assets (ROA) improved to 0.92% from 0.89% in the previous year[47]. - Return on average equity (ROE) increased to 12.77% compared to 12.33% in 2021[47]. Income Composition - Net interest income accounted for 79.23% of total operating income in 2022, up from 75.62% in the previous year[48]. - Non-interest income decreased to 20.77% of total operating income, down from 24.38% in 2021, reflecting a decline of 3.61%[48]. - Interest income from customer loans and advances was RMB 35.224 billion, up RMB 2.580 billion or 7.90% year-on-year, driven by a scale increase of RMB 4.914 billion[74]. - Interest income from securities investments reached RMB 19.336 billion, an increase of RMB 0.673 billion or 3.61% year-on-year, with scale growth contributing RMB 2.087 billion[76]. - Total interest expenses amounted to RMB 32.258 billion, an increase of RMB 2.001 billion or 6.61% year-on-year[78]. Asset Quality - The non-performing loan ratio improved to 1.49% by the end of 2022, down from 1.78% at the end of 2021, a decrease of 0.29%[49]. - The provision coverage ratio for non-performing loans was 276.57%, an increase of 36.83 percentage points year-on-year[64]. - The total amount of non-performing loans was RMB 113.61 million in 2022, slightly down from RMB 116.60 million in 2021[114]. - Normal loans accounted for 97.15% of total loans in 2022, compared to 96.14% in 2021, indicating a stable loan quality[114]. - The company strengthened credit risk management, leading to a significant reduction in asset impairment losses compared to the previous year[89]. Customer and Market Position - The bank's market share for personal deposits in the province reached 9.32%, marking a historical high[61]. - The cumulative balance of newly launched financial products exceeded RMB 35 billion, including "per mu project loan" and "urban renewal loan"[61]. - The bank's asset management volume reached RMB 928.82 billion, providing strong support for stable development[61]. - The company maintained its leading position in corporate loans and deposits among commercial banks in Anhui Province[144]. - The company’s market share for personal deposits increased by 1.32 percentage points to 9.32%, marking the highest growth in history[196]. Digital Transformation and Innovation - The digital transformation initiatives included the development of a personal customer management platform and the establishment of a data middle platform[61]. - The company is advancing its digital transformation by enhancing data governance and developing various data application models, including online anti-fraud and anti-money laundering prediction models[185]. - The company is collaborating with the Antelope Industrial Internet platform to innovate in industrial interconnectivity[196]. Green Finance and Sustainability - The bank is actively promoting green finance and sustainable development, aligning with national policies on carbon neutrality[198]. - The bank's green credit balance totaled RMB 54.576 billion, an increase of RMB 22.396 billion, representing a growth of 69.59% compared to the end of 2021[165]. - The bank has established a comprehensive green financial product system, including green credit, green bonds, and green investments, to support the green and low-carbon economy[164]. Risk Management - The bank's risk management framework focuses on maintaining asset quality and enhancing risk management capabilities amid challenging external conditions[172]. - The bank has implemented measures to improve market risk management, including value assessment, sensitivity analysis, and stress testing[174]. - The company has established a comprehensive compliance risk management system, implementing a three-line defense mechanism and a dual reporting system to effectively control compliance risks[181]. Corporate Social Responsibility - The company actively fulfills its corporate social responsibility, supporting small and micro enterprises and promoting green credit initiatives to stabilize the economy[186]. - The company is committed to enhancing employee well-being and fostering a positive corporate culture to support overall development[186]. Future Outlook - The bank aims to accelerate digital transformation and enhance risk management capabilities by integrating technology with business operations[191]. - The bank plans to focus on five key service areas to support the economic and social development of Anhui province, including innovation, urban quality, green finance, open economy, and wealth management[191]. - The company is advancing its strategic transformation with a focus on integrating online and offline services for SMEs and enhancing branch capabilities[196].

Financial Performance - Operating income for the first half of 2022 was RMB 19,115 million, an increase of 8.80% compared to RMB 17,569 million in the same period of 2021[31]. - Pre-tax profit rose to RMB 8,536 million, reflecting a growth of 16.77% from RMB 7,310 million year-on-year[31]. - Net profit increased by 20.40% to RMB 7,335 million, up from RMB 6,092 million in the first half of 2021[31]. - Net profit for the first half of 2022 was RMB 73.35 billion, an increase of RMB 12.43 billion or 20.40% year-on-year[39]. - Basic earnings per share rose to RMB 0.52, a 15.56% increase from RMB 0.45 in the first half of 2021[32]. - The total profit before credit risk impairment for the first half of 2022 was RMB 14,867 million, a 7.63% increase from RMB 13,814 million in the same period of 2021[104]. Assets and Liabilities - Total assets reached RMB 1,578,684 million as of June 30, 2022, representing a 14.09% increase from RMB 1,383,662 million at the end of 2021[33]. - Total liabilities amounted to RMB 1,460,719 million, up 14.82% from RMB 1,272,146 million at the end of 2021[33]. - Customer loans and advances totaled RMB 743,929 million, a 13.61% increase from RMB 654,795 million at the end of 2021[33]. - Customer deposits increased by 19.58% to RMB 919,180 million, compared to RMB 768,668 million at the end of 2021[33]. Profitability Ratios - Return on average assets (ROA) improved to 0.99% for the first half of 2022, up from 0.92% in the same period of 2021[34]. - Return on equity (ROE) increased to 14.01% in the first half of 2022, compared to 13.12% in the same period of 2021[34]. - The cost-to-income ratio improved to 23.10%, a decrease of 1.35 percentage points compared to the previous year[35]. Loan Quality - The non-performing loan ratio decreased to 1.56%, down 0.22 percentage points from the end of the previous year[39]. - The coverage ratio for non-performing loans increased to 272.97%, up 33.23 percentage points from the end of the previous year[36]. - Normal loans accounted for 96.87% of total loans as of June 30, 2022, compared to 96.14% at the end of 2021, showing stability in loan quality[88]. - Corporate loans represented 59.94% of total loans, with a non-performing loan rate of 2.08%, while retail loans accounted for 33.15% with a lower non-performing loan rate of 0.94%[89]. Interest Income and Expenses - Net interest income for the first half of 2022 was RMB 137.34 billion, up RMB 6.48 billion or 4.43% year-on-year[42]. - The net interest margin for the first half of 2022 was 1.85%, a decrease of 13 basis points compared to the same period last year[44]. - Interest expenses amounted to RMB 15.924 billion, an increase of RMB 1.069 billion or 7.20% year-on-year[52]. - Customer deposit interest expenses were RMB 8.942 billion, up RMB 1.023 billion or 12.92% year-on-year[53]. Customer and Market Engagement - The bank's cash management business transaction volume reached RMB 2.1 trillion in the first half of 2022, reflecting significant growth in service capabilities[117]. - The bank processed a total of USD 5.966 billion in cross-border settlements, a 33% year-on-year increase, and provided USD 503 million in international trade financing, up 49% from the previous year[117]. - The bank's wealth management business scale (excluding direct banking) reached RMB 233.502 billion, growing by RMB 17.461 billion, representing an 8.08% increase[120]. Risk Management - The bank has focused on enhancing risk management capabilities, particularly in credit risk, market risk, operational risk, and liquidity risk management[143][145][146][147]. - The bank's credit risk management framework includes optimizing credit structure and improving asset quality through effective risk measurement and management policies[144]. - The bank has implemented a comprehensive compliance risk management system, with a three-line defense mechanism and a dual reporting system to ensure effective compliance risk control[152]. Corporate Governance - The company has established a comprehensive corporate governance structure, ensuring compliance and sustainable development through clear responsibilities among shareholders, the board, and management[186]. - The board currently consists of 14 members, which does not meet the requirement of 15 to 19 members as per the articles of association[194]. - The supervisory board has 8 members, meeting the legal minimum but not the required 9 to 11 members as per the articles of association[194]. Shareholder Structure - The top ten shareholders held a total of 8,000,000,000 shares, representing 57.65% of the total ordinary shares, with the largest shareholder being HKSCC Nominees Limited, holding 3,474,932,658 shares (25.02%)[162]. - The ownership structure indicates that Qingdao State-owned Assets Supervision and Administration Commission has full ownership of several subsidiaries controlling Golden Harbour's shares[175]. - The report indicates a complex web of ownership and control among various entities, emphasizing the need for clarity in shareholder rights and equity management[175].

Company Overview - As of the end of 2021, Huishang Bank's registered capital was RMB 13.89 billion[18]. - The bank employed 10,701 staff and operated 21 branches and 478 business outlets as of December 31, 2021[18]. - Huishang Bank was established on April 4, 1997, and officially commenced operations on January 1, 2006, after merging several local banks and credit cooperatives[18]. - The bank's headquarters is located in Hefei, Anhui Province, China[18]. - Huishang Bank has four subsidiaries and holds stakes in Chery Huishang Auto Finance Co., Ltd. and Inner Mongolia Merchants Bank Co., Ltd.[18]. Market Positioning and Recognition - Huishang Bank ranked 132nd in the "Top 1000 World Banks" by The Banker magazine and 20th among domestic banks in the "Global 2000" list by Forbes[18]. - The bank's market positioning focuses on serving local economies, small and medium-sized enterprises, and the general public[18]. - The company was recognized as a "Digital Inclusive Finance Model Case" by the People's Bank of China in June 2021[24]. - The company received the "Best Direct Bank" award at the 2021 Digital Momentum and Finance Summit in November 2021[27]. - The company was recognized as a "Leading Institution in Anti-Money Laundering" with an A rating in April 2021[21]. Financial Performance - Operating income for 2021 reached RMB 35,514 million, a 9.98% increase from RMB 32,290 million in 2020[30]. - Pre-tax profit rose to RMB 13,537 million, reflecting a 12.03% growth compared to RMB 12,083 million in the previous year[30]. - Net profit attributable to shareholders increased by 19.75% to RMB 11,460 million from RMB 9,570 million in 2020[30]. - Total assets as of December 31, 2021, amounted to RMB 1,383,662 million, an 8.80% increase from RMB 1,271,701 million in 2020[32]. - Customer loans and advances totaled RMB 654,795 million, marking a 14.28% increase from RMB 572,954 million in the prior year[32]. Asset Quality and Risk Management - The non-performing loan ratio improved to 1.78% from 1.98% in 2020, indicating better asset quality[34]. - The coverage ratio for non-performing loans increased significantly to 239.74% from 181.90% in the previous year[34]. - The provision for loan impairment increased to RMB 27,953 million by the end of 2021, up from RMB 20,660 million at the beginning of the year[114]. - The bank actively promoted risk management strategies, focusing on maintaining asset quality and enhancing risk management capabilities amid challenging domestic and international conditions[164]. - The bank's credit risk management emphasized optimizing credit structure and improving asset quality, with a focus on key institutions and projects for risk mitigation[165]. Digital Transformation and Innovation - Digital transformation initiatives led to an increase of RMB 27.12 billion in cumulative loan balances for online products[44]. - The bank has developed various data application models, including anti-fraud, customer relationship, and risk warning models, leveraging big data and machine learning technologies[178]. - The bank launched innovative financial products, including "Technology E-loan" and "Carbon Emission Rights Pledge Financing," enhancing its service offerings[48]. - The bank aims to become a leading medium-sized bank with a focus on customer experience, risk control capabilities, and diversified services[180]. - The bank is committed to developing financial technology, aiming to create a digital banking model that integrates online and offline services[185]. Customer Engagement and Services - The number of personal effective customers increased, with savings deposits market share exceeding 8%, achieving a new high in growth[48]. - The bank's consumer rights protection hotline operates 24/7, enhancing complaint handling and customer satisfaction[181]. - The total number of debit cards issued reached 22.73 million, with a balance of RMB 154.88 billion, reflecting a year-on-year growth of 16.88%[141]. - The bank's retail loan pricing levels have been continuously improved, contributing to the growth of retail loan business scale[139]. - The bank's total assets exceeded RMB 1 trillion, serving over 42 million customers, with a domestic savings deposit market share exceeding 8%[193]. Corporate Social Responsibility and Sustainability - The bank actively promotes green credit and supports low-carbon economy initiatives, contributing to rural revitalization and small and micro enterprise development[180]. - The balance of green loans reached RMB 32.181 billion, an increase of RMB 11.265 billion, representing a growth of 53.86% compared to the beginning of the year[195]. - The bank emphasizes corporate social responsibility, achieving recognition and awards for its efforts in economic, environmental, and social benefits[180]. - The company implemented measures to support pandemic control and economic recovery, including loan extensions for small and micro enterprises[192]. - The bank's employee training platform saw 1.1701 million participants with an engagement rate of 99.18% in 2021, reflecting a commitment to staff development[199].

Financial Performance - Operating income for the first half of 2021 was RMB 17,569 million, a 7.13% increase from RMB 16,399 million in the same period of 2020[48] - Pre-tax profit rose to RMB 7,310 million, reflecting a 13.51% increase compared to RMB 6,440 million in the first half of 2020[48] - Net profit attributable to shareholders increased by 18.00% to RMB 6,195 million from RMB 5,250 million year-on-year[48] - Basic earnings per share for the first half of 2021 was RMB 0.45, up from RMB 0.43 in the same period of 2020, reflecting a 4.65% increase[48] - The net asset value attributable to shareholders increased to RMB 6.73 per share from RMB 6.16 per share, a 9.25% increase year-on-year[48] - Net profit for the first half of 2021 was RMB 6.09 billion, representing an increase of RMB 0.76 billion or 14.29% year-on-year[53] - The total pre-tax profit for the first half of 2021 was RMB 7,310 million, representing a 13.5% increase from RMB 6,440 million in the same period of 2020[118] Assets and Liabilities - Total assets as of June 30, 2021, reached RMB 1,389,831 million, a 9.29% increase from RMB 1,271,701 million at the end of 2020[49] - Total liabilities increased by 9.59% to RMB 1,277,842 million from RMB 1,166,028 million at the end of 2020[49] - Total customer loans and advances amounted to RMB 637,973 million, marking an 11.35% increase from RMB 572,954 million at the end of 2020[49] - Total customer deposits reached RMB 782,378 million, a 9.74% increase from RMB 712,953 million at the end of 2020[49] - As of June 30, 2021, the total assets of the company reached RMB 1,389.83 billion, an increase of RMB 118.13 billion or 9.29% compared to the end of the previous year[53] - The total amount of customer loans and advances reached RMB 637.973 billion, an increase of 11.35% year-on-year, accounting for 45.90% of total assets[82] - As of June 30, 2021, the total liabilities of the company amounted to RMB 1,277.84 billion, representing a growth of 9.59% compared to the end of the previous year[95] Loan and Deposit Quality - The non-performing loan ratio improved to 1.66%, a decrease of 0.32 percentage points from the end of the previous year[53] - The non-performing loan coverage ratio increased to 223.18%, up 41.28 percentage points compared to the end of the previous year[53] - The total amount of non-performing loans was RMB 105.84 billion, with the majority classified as substandard, doubtful, and loss loans[102] - The bank's retail loans accounted for 36.38% of total loans, with a non-performing loan rate of 0.82% as of June 30, 2021[105] - The non-performing loan ratio for the mortgage loans was 1.17%, while the ratio for credit loans was 3.31% as of June 30, 2021[108] Income and Expenses - The bank achieved interest income of RMB 29.488 billion in the first half of 2021, representing a year-on-year increase of 10.84%[62] - Customer loans and advances interest income reached RMB 16.021 billion, up RMB 2.562 billion or 19.04% year-on-year[63] - Interest expenses totaled RMB 14.855 billion, an increase of RMB 2.589 billion or 21.11% compared to the same period last year[67] - Customer deposit interest expenses amounted to RMB 7.919 billion, reflecting a year-on-year increase of RMB 1.880 billion or 31.13%[68] - Non-interest income for the first half of 2021 reached RMB 4.388 billion, an increase of RMB 825 million or 23.15% year-on-year, primarily due to the rise in other non-interest income[72] Capital and Risk Management - The bank's capital adequacy ratio remained stable, reflecting effective risk management and asset quality maintenance despite external challenges[101] - The bank's capital adequacy ratio as of June 30, 2021, was 11.80%, with a Tier 1 capital ratio of 9.73%[114] - The provision for loan impairment increased to RMB 2.36 billion as of June 30, 2021, compared to RMB 1.46 billion at the end of 2020[113] - The bank has established a comprehensive risk management system to control various risks, including credit, market, operational, and liquidity risks[159] - The bank emphasizes a prudent management philosophy to ensure business prudence and objective asset classification[155] Strategic Focus and Market Position - The company continues to focus on serving local economies and small to medium-sized enterprises, enhancing its operational capabilities and market position[46] - The company plans to enhance its market position through digital transformation and comprehensive management strategies in the second half of 2021[125] - The bank's wholesale banking business has maintained a leading position in Anhui Province, with rapid growth in investment and transaction banking services[126] - The bank is actively promoting green credit and supporting low-carbon economy initiatives as part of its corporate social responsibility[170] - The bank's strategy focuses on digital transformation and enhancing service channels to meet the financial needs of various customer segments[138] Shareholder Structure - As of June 30, 2021, the total number of ordinary shareholders was 17,060, with 15,596 being domestic shareholders and 1,464 being H-share shareholders[175] - The total number of ordinary shares increased to 13,889,801,211, with a significant increase of 1,735,000,000 shares during the reporting period[174] - The largest shareholder is Hong Kong Central Clearing Limited, holding 3,474,852,858 shares, which accounts for 25.02% of the total ordinary shares[176] - The company has undergone changes in its major shareholders, with the Deposit Insurance Fund being a key player in the ownership structure[179] - The ownership structure reveals a complex network of subsidiaries and partnerships, indicating potential implications for governance and control over Huishang Bank[189] Governance and Management Changes - The bank's board proposed the election of Mr. Ma Lingxiao and Mr. Wang Zhaoyuan as non-executive directors, with their qualifications pending approval[198] - The bank's governance structure saw significant changes with multiple resignations and appointments aimed at enhancing operational efficiency[199] - The bank's board of directors includes 13 members, with key positions held by Yan Chen as Chairman and Zhang Renfu as President[197] - The bank's executive director and chairman, Mr. Yan Chen, no longer holds positions in several other companies, including Anhui Credit Financing Guarantee Group[200] - The bank's shareholder supervisor, Mr. Chen Rui, is now the chairman of Hefei Xingtai Guarantee Asset Management Co., previously known as Hefei Xingtai Guarantee Industry Fund Operation Co.[200]

Financial Performance - Operating revenue for 2020 was RMB 32,290 million, an increase of 3.63% compared to RMB 31,159 million in 2019[23]. - Pre-tax profit decreased by 1.77% to RMB 12,083 million in 2020 from RMB 12,301 million in 2019[23]. - Net profit attributable to shareholders was RMB 9,570 million, down 2.54% from RMB 9,819 million in 2019[23]. - Total assets as of December 31, 2020, reached RMB 1,271,701 million, a growth of 12.37% from RMB 1,131,721 million in 2019[24]. - Total customer loans and advances increased by 23.49% to RMB 572,954 million from RMB 463,985 million in 2019[24]. - Total liabilities rose by 11.88% to RMB 1,166,028 million compared to RMB 1,042,228 million in 2019[24]. - Total customer deposits increased by 20.06% to RMB 712,953 million from RMB 593,834 million in 2019[24]. - Equity attributable to shareholders grew by 18.15% to RMB 103,041 million from RMB 87,209 million in 2019[24]. - Basic earnings per share for 2020 was RMB 0.72, a decrease of 7.69% from RMB 0.78 in 2019[22]. - The average return on assets (ROA) for 2020 was 0.83%, down from 0.92% in 2019, reflecting a decrease of 0.09 percentage points[27]. - The non-performing loan ratio increased to 1.98% in 2020 from 1.04% in 2019, indicating a rise of 0.94 percentage points[27]. - The cost-to-income ratio (including taxes and surcharges) was 23.71% in 2020, compared to 22.76% in 2019, an increase of 0.95 percentage points[27]. Capital and Assets - Total assets of Huishang Bank reached RMB 1.2 trillion, with customer loans and advances exceeding RMB 100 billion, marking a historical high[35]. - Customer deposits increased by RMB 119.1 billion, totaling over RMB 710 billion, with a 2.65 percentage point decrease in the proportion of deposits from peers and other financial institutions[36]. - The bank issued RMB 10 billion in microfinance bonds and reduced fees, saving nearly RMB 200 million for various business operations[35]. - The bank's capital adequacy ratio improved through the issuance of RMB 8 billion in tier 2 capital bonds[31]. - The bank's liquidity coverage ratio stood at 181.71%, with qualified liquid assets amounting to RMB 137.24 billion and a net cash outflow of RMB 75.53 billion over the next 30 days[163]. - As of the end of 2020, the net stable funding ratio was 102.09%, with available stable funding of RMB 77.04 billion and required stable funding of RMB 75.47 billion[163]. Customer and Loan Growth - The number of corporate clients rose to nearly 210,000, an increase of 15,600, while individual clients exceeded 14 million, growing by 1.91 million[36]. - The total amount of customer loans and advances was RMB 572.954 billion, representing a year-on-year growth of 23.49%, and accounted for 45.05% of total assets, an increase of 4.05 percentage points[71]. - The total amount of corporate loans amounted to RMB 325.112 billion, an increase of 23.25% compared to the end of the previous year, accounting for 56.74% of total customer loans and advances[73]. - Retail loans totaled RMB 220.082 billion as of December 31, 2020, reflecting a growth of 23.41%, with personal housing mortgage loans at RMB 112.373 billion, making up 51.06% of retail loans[76]. - The balance of personal housing loans was RMB 111.78 billion, with a year-on-year increase of 22.04 billion, or 24.55%[136]. Awards and Recognition - The company received multiple awards in 2020, including the "Best Development Award for Syndicated Loans" from China Banking Magazine[15]. - The company was recognized as a "Top Digital Innovation Award Silver" for content marketing by the Central Committee of the Communist Youth League[14]. - The company achieved a "Comprehensive Intelligent Platform Silver Award" in the 2020 China Financial Technology Innovation Competition[15]. - The company was awarded the "Outstanding Unit" in the evaluation of financial institutions' service to local economic development by the Anhui Provincial Local Financial Institution Management Bureau[15]. - The company was recognized for its "Outstanding Performance in RMB Financial Bond Underwriting" during the pandemic recovery efforts[14]. - The company won the "Best Progress Award" for its contributions to the pandemic recovery in the RMB Financial Bond Underwriting category[14]. Digital Transformation and Innovation - The bank's focus on digital transformation and high-quality development aligns with the new development philosophy and the 14th Five-Year Plan[33]. - The bank's digital transformation strategy has led to the initial success of big data applications, enhancing marketing models and risk warning systems[170]. - The bank is actively exploring new processes, architectures, and technologies for information system development to promote financial technology product innovation[171]. - The bank has established a national A-level certified data center to ensure the stable operation of information systems and enhance emergency response capabilities[171]. - The bank's digital transformation efforts have led to significant improvements in online banking services, enhancing brand value[186]. Risk Management - The bank's risk management framework emphasizes a comprehensive approach, focusing on credit, market, operational, and liquidity risks[160][161]. - The bank has implemented a strategic transformation to enhance risk pricing levels and improve the management of interest rate risk exposure[164]. - The bank's operational risk management system has been strengthened, focusing on key risk indicators and enhancing information technology risk management[160]. - The bank's liquidity management strategy is designed to balance liquidity, safety, and profitability, ensuring sufficient funds to meet expected and unexpected demands[161]. - The bank has established a risk management committee under the board to oversee liquidity risk policies and strategies[161]. Corporate Social Responsibility - The bank has received multiple awards for its corporate social responsibility efforts, ranking 48th in the "2019 China Corporate Social Responsibility Rankings" and 9th among national banks[172]. - The bank emphasizes green credit initiatives to support low-carbon economies and small and micro enterprises, aiming to reduce financing costs[172]. - The bank's focus on environmental sustainability is evident in its support for green finance initiatives and compliance with environmental policies[189]. Employee Development - The bank's employee compensation structure emphasizes efficiency and fairness, enhancing external competitiveness and employee stability[191]. - The online and offline training platform provided 197,500 learning sessions through the "Zhi Niao" mobile learning platform, with an engagement increase of 57.33% year-on-year[193]. - The company enhanced career development management in 2020, optimizing non-management evaluation and providing diverse career paths and development opportunities[193].