Financial Performance - The company reported a mid-year financial performance without profit distribution or capital reserve increase in 2019[4]. - The financial report for the mid-year of 2019 has not been audited[4]. - Operating income for the first half of 2019 reached RMB 138,338 million, a 9.70% increase compared to RMB 126,103 million in the same period of 2018[15]. - Pre-tax profit for the first half of 2019 was RMB 64,873 million, reflecting a 10.06% growth from RMB 58,945 million in the first half of 2018[15]. - Net profit attributable to shareholders for the first half of 2019 was RMB 50,612 million, up 13.08% from RMB 44,756 million in the same period of 2018[15]. - The group reported a total pre-tax profit of RMB 64.87 billion for the first half of 2019, compared to RMB 58.95 billion in the same period of 2018, reflecting a growth of 10.00%[111]. Risk Management - The company emphasizes the importance of accurate financial reporting and has ensured the integrity of the financial data presented[4]. - The company has outlined major risks and corresponding mitigation strategies in the report[7]. - The company has a comprehensive risk management framework detailed in the report[4]. - The company implemented measures to optimize asset structure by focusing on strategic customers and increasing credit investments in emerging industries[188]. - The company has established a dynamic monitoring system for large risk exposures, ensuring compliance with regulatory requirements[189]. - The company achieved effective control over asset quality through various risk management initiatives during the reporting period[186]. Regulatory Compliance - The company is committed to maintaining compliance with regulatory requirements as per the China Banking and Insurance Regulatory Commission and the China Securities Regulatory Commission[6]. - The group’s capital management met the regulatory requirements set by the China Banking and Insurance Regulatory Commission, with additional capital reserves maintained[92]. Asset and Liability Management - Total assets as of June 30, 2019, amounted to RMB 7,193,181 million, a 6.63% increase from RMB 6,745,729 million at the end of 2018[17]. - Total liabilities increased to RMB 6,619,186 million, representing a 6.72% rise from RMB 6,202,124 million at the end of 2018[17]. - Customer deposits totaled RMB 4,699,738 million, up 6.80% from RMB 4,400,674 million at the end of 2018[17]. - The total amount of loans and advances reached RMB 4,323.530 billion, an increase of 9.93% year-on-year[25]. - The total amount of investment securities and other financial assets was RMB 1,726.495 billion, representing 100% of the total, with a year-on-year increase from RMB 1,692.708 billion[57]. Non-Performing Loans - The non-performing loan ratio decreased to 1.23%, down 0.13 percentage points from 1.36% at the end of 2018[23]. - Non-performing loans decreased to RMB 53.221 billion, a reduction of RMB 3.84 billion, with a non-performing loan ratio of 1.23%, down 0.13 percentage points from the previous year[73]. - The provision coverage ratio for non-performing loans improved to 394.12%, an increase of 35.94 percentage points year-on-year[73]. - The company disposed of non-performing loans totaling 23.66 billion yuan during the reporting period, with 14.04 billion yuan written off and 5.37 billion yuan collected in cash[129]. Digital Transformation and Technology - The company has deployed 13 application services on the open platform, launching 9 major products and 5 categories of solutions[121]. - The company achieved a loan approval time of T+0 for housing loans and T+2 for small micro loans, improving approval efficiency by 7% compared to the end of the previous year[118]. - The company is focusing on digital transformation and enhancing customer experience through technology integration[140]. - The company plans to enhance digital customer acquisition capabilities, focusing on a digital acquisition model to maintain sustainable growth[135]. Customer Engagement and Services - The cumulative number of users for the招商银行 App reached 92.76 million, with digital customer acquisition for debit cards increasing to 25.78%[117]. - The total assets under management for retail customers reached 7,258.84 billion RMB, growing by 6.71% year-over-year[139]. - The number of retail loan customers increased to 5.5759 million, representing a growth of 17.76% compared to the end of the previous year, primarily driven by online customer acquisition[145]. - The company plans to continue expanding its wealth management services and improve its risk management framework to ensure sustainable growth[142]. Financial Technology and Innovation - The company has launched 500 financial technology innovation projects, covering various fields including retail, wholesale, risk, and organizational culture transformation[116]. - The company has enhanced its operational risk management framework, focusing on key areas such as P2P and private equity fund risk assessments[196]. - The company has implemented a comprehensive country risk management system, with low exposure to country risk and adequate reserves set aside as per regulatory requirements[190]. Market Position and Growth - The bank was ranked 19th among the world's top 1,000 banks by tier 1 capital, improving its position by one place from the previous year[14]. - The company’s stock is listed on both the Shanghai Stock Exchange and the Hong Kong Stock Exchange, indicating its dual-market presence[10]. - The company plans to issue perpetual bonds up to CNY 50 billion to enhance capital reserves and strengthen risk resistance capabilities[134].

Customer Base and User Engagement - As of the end of 2018, the number of retail customers reached 125 million, with a combined monthly active user count of over 81 million for the "China Merchants Bank" and "Zhangshang Life" apps[9]. - The cumulative user count for the company's apps reached 148 million, a growth of 43%, with monthly active users surpassing 81 million, up 47%[15]. - The total number of retail customers reached 125 million, with the cumulative user base of the "招商银行" and "掌上生活" apps reaching 148 million[122]. - Monthly active users (MAU) for the company's apps reached 81.0467 million, a growth of 47.24% year-on-year, with 27.11% and 44.21% of traffic from non-financial services respectively[123]. - The total number of users for the "掌上生活App" reached 70.03 million, with non-credit card users accounting for 24.38%[167]. Financial Performance - The net profit for 2018 was 75.232 billion RMB, with a proposed cash dividend of 0.94 RMB per share[5]. - The bank's operating income and net profit achieved double-digit growth, showcasing strong financial performance[9]. - In 2018, the company achieved a net operating income of CNY 248.44 billion, representing a year-on-year growth of 12.40%[15]. - The net profit attributable to shareholders reached CNY 80.56 billion, with a year-on-year increase of 14.84%[15]. - The pre-tax profit for 2018 was RMB 106,497 million, reflecting a growth of 17.44% from RMB 90,680 million in 2017[34]. Risk Management and Asset Quality - The bank's non-performing loan ratio and non-performing loan balance both decreased, reflecting enhanced risk management[9]. - The company maintained a decline in non-performing loan balance and ratio, indicating improved asset quality[15]. - The non-performing loan (NPL) balance decreased to RMB 53.61 billion, down RMB 3.73 billion from the previous year, with an NPL ratio of 1.36%, a decrease of 0.25 percentage points[87]. - The provision coverage ratio for non-performing loans improved to 358.18%, an increase of 96.07 percentage points year-over-year[87]. - The company has implemented a credit risk management policy based on IFRS 9, focusing on risk cost management and customer-centered risk management perspectives[184]. Technological Innovation and Digital Transformation - The bank is focusing on technology-driven development, with significant investments in artificial intelligence, big data, blockchain, and cloud computing[9]. - The company is committed to increasing investment in financial technology to enhance service levels and customer experience[13]. - The company has initiated a digital transformation strategy that aims to redefine its service targets and operational thinking[19]. - The company aims to enhance its digital transformation in retail banking, focusing on improving customer experience and operational capabilities[141]. - The company has established a financial technology academy to enhance talent cultivation and support business development through advanced technologies like AI and big data[172]. Corporate Strategy and Business Model - The company has transitioned from a scale-driven model (1.0 phase) to a quality and structure-driven model (2.0 phase), focusing on asset quality and income structure rather than just asset size[16]. - The company aims to enter a new business model (3.0 phase) driven by technological innovation, fundamentally changing service, marketing, risk control, and operational models[19]. - The strategic focus for 2019 includes leveraging technology to transform the business model and improve customer experience[11]. - The company emphasizes a market-oriented incentive mechanism to attract and retain top talent in financial technology[13]. - The company plans to strengthen its digital infrastructure by leveraging financial technology to improve marketing, risk management, customer service, and operations[137]. Dividend and Shareholder Returns - The company plans to distribute a cash dividend of RMB 0.94 per share (including tax) based on the total share capital of A-shares and H-shares as of the dividend record date[198]. - The cash dividend per share has increased from RMB 0.84 in 2017 to RMB 0.94 in 2018, reflecting a growth in shareholder returns[199]. - For the fiscal year 2018, the company's net profit attributable to ordinary shareholders was RMB 78.901 billion, with a dividend payout ratio of 30.05%[199]. - The total cash dividend amount for 2018 is projected to be RMB 237.07 million (including tax)[199]. - General reserves will be set aside at 1.5% of risk assets, totaling RMB 6.028 billion[198]. Customer Service and Experience - The bank aims to enhance customer experience by implementing a user experience monitoring system across both retail and corporate finance sectors[20]. - The focus on user experience will drive the company's comprehensive digital transformation across all aspects of business development, organizational structure, and management[19]. - The company aims to enhance retail business advantages and improve customer service systems to drive non-interest income growth[126]. - The company launched the "Golden Sunflower Financial Planning Service System" to provide comprehensive wealth management solutions[143]. - The company has established a high-end customer service network with 68 private banking centers and 64 wealth management centers across 63 domestic cities and 7 overseas cities[144].