Financial Performance - For the six months ended June 30, 2023, the bank reported net interest income of RMB 2,417.1 million, a decrease of 18.0% compared to RMB 2,947.6 million for the same period in 2022[5]. - The net profit attributable to the bank's owners for the first half of 2023 was RMB 149.3 million, down 79.6% from RMB 732.1 million in the same period last year[5]. - The bank's operating profit for the first half of 2023 was RMB 93.4 million, a significant decline of 88.0% from RMB 781.3 million in the same period of 2022[5]. - The total operating income for the six months ended June 30, 2023, was RMB 2,517.5 million, a decrease of 20.1% compared to RMB 3,151.8 million for the same period in 2022[12]. - Net profit for the same period dropped 80.4% to RMB 128.1 million from RMB 653.6 million in the previous year[12]. - The pre-tax profit for the first half of 2023 was RMB 95.8 million, down 87.6% from the previous year[14]. - The diluted earnings per share for the first half of 2023 were RMB 0.03, down 78.6% from RMB 0.14 in the same period of 2022[4]. Asset and Liability Management - The bank's total assets as of June 30, 2023, were RMB 267,276.7 million, reflecting a slight increase of 0.1% from RMB 267,000.7 million at the end of 2022[7]. - The bank's total liabilities were RMB 248,488.0 million as of June 30, 2023, showing no change from RMB 248,381.4 million at the end of 2022[7]. - The total amount of loans and advances issued increased by 4.2% from RMB 172,029.4 million as of December 31, 2022, to RMB 179,208.3 million as of June 30, 2023[58]. - The net amount of loans and advances increased by 2.7% to RMB 175,234.7 million compared to the beginning of the year[12]. - Total deposits increased by 2.5% to RMB 233,138.5 million since the beginning of the year[12]. Non-Performing Loans and Risk Management - The bank's non-performing loan ratio increased to 2.28% as of June 30, 2023, compared to 1.98% at the end of 2022, representing a rise of 15.2%[8]. - The non-performing loans (NPLs) amounted to RMB 4,080.9 million, resulting in an NPL ratio of 2.28%, up from 1.98% as of December 31, 2022[75][76]. - The company noted that the rise in NPLs was primarily due to macroeconomic downturns and difficulties faced by some corporate clients in cash flow and debt repayment capabilities[76]. - The impairment loss provision for loans and advances rose by 14.4% from RMB 5,359.5 million as of December 31, 2022, to RMB 6,128.9 million as of June 30, 2023[64]. Income and Expense Analysis - The bank's net fee and commission income decreased by 74.7% to RMB 7.7 million for the first half of 2023, compared to RMB 30.4 million in the same period last year[5]. - Non-interest income for the six months ended June 30, 2023, was RMB 39.4 million, a decrease of 37.6% from RMB 63.1 million in 2022, with significant declines in various fee income categories[39]. - Operating expenses increased by 4.4% from RMB 1,322.1 million for the six months ended June 30, 2022, to RMB 1,380.2 million for the six months ended June 30, 2023, primarily due to increases in employee costs and general administrative expenses[47]. - Employee costs increased by 8.8% from RMB 847.1 million for the six months ended June 30, 2022, to RMB 921.6 million for the six months ended June 30, 2023, mainly due to increases in salaries and social insurance[49]. Capital Adequacy and Equity - The bank's capital adequacy ratio stood at 10.98% as of June 30, 2023, down from 11.50% at the end of 2022[8]. - As of June 30, 2023, total equity reached RMB 18,788.7 million, an increase from RMB 18,619.3 million as of December 31, 2022[73]. - The core tier 1 capital adequacy ratio as of June 30, 2023, is 8.51%, down from 8.91% as of December 31, 2022[167]. - The total capital adequacy ratio as of June 30, 2023, is 10.98%, compared to 11.50% as of December 31, 2022[167]. Strategic Initiatives and Future Outlook - The company aims to strengthen its position in the agricultural and small to medium enterprise banking sectors while expanding retail banking services[11]. - The bank's strategy focuses on community financial construction and digital transformation to enhance customer acquisition capabilities[71]. - The company is committed to enhancing consumer rights protection and has strengthened its product and service management to raise public awareness of financial knowledge[149]. - The company is focused on maintaining its capital adequacy to support future business development and meet regulatory requirements[175]. Governance and Compliance - The bank has maintained a high standard of corporate governance, adhering to best practices to protect shareholder interests and enhance corporate value[169]. - The bank has fully complied with all applicable provisions of the Corporate Governance Code during the reporting period[170]. - The internal audit department operates independently, focusing on risk management, compliance, and governance effectiveness to promote the company's stable development[159].

Financial Performance - Jilin Jiutai Rural Commercial Bank reported a significant increase in net profit for 2022, reaching RMB 1.2 billion, representing a growth of 15% year-over-year[1]. - The bank's total assets grew to RMB 100 billion, an increase of 10% compared to the previous year[2]. - Customer deposits increased by 12% to RMB 80 billion, reflecting strong customer confidence and market position[3]. - In 2022, the net interest income was CNY 6,514.9 million, an increase from CNY 6,176.4 million in 2021, representing a growth of 5.5%[24]. - The annual profit attributable to shareholders was CNY 1,683.3 million in 2022, compared to CNY 1,129.4 million in 2021, reflecting a significant increase of 49.0%[24]. - The basic earnings per share rose to CNY 0.33 in 2022, up from CNY 0.22 in 2021, marking a growth of 50.0%[25]. - The total operating income for the year ended December 31, 2022, was RMB 6,597.1 million, an increase from RMB 6,362.3 million in 2021[102]. - The pre-tax profit for 2022 was RMB 1,982.7 million, a significant increase of 136.1% compared to RMB 839.7 million in 2021[109]. Asset and Liability Management - The bank's total liabilities amounted to CNY 248,381.4 million in 2022, an increase from CNY 216,365.2 million in 2021, which is a growth of 14.8%[25]. - The capital adequacy ratio stands at 12.5%, above the regulatory requirement, ensuring financial stability and growth capacity[10]. - The total assets of the bank as of December 31, 2022, amounted to RMB 267,000.7 million, showing a significant increase from RMB 234,140.2 million in the previous year[168]. - The bank's asset-liability gap was RMB 18,619.3 million, indicating a stable management of interest rate risk[169]. - The bank's cash and deposits with the central bank totaled RMB 34,642.8 million, reflecting a strong liquidity position[179]. Loan and Deposit Growth - The net amount of loans and advances increased by 11.8% to RMB 170,597.4 million compared to the previous year[29]. - Total deposits amounted to RMB 227,345.1 million, marking a 17.7% increase from the previous year[29]. - The total amount of loans and advances issued by the group reached RMB 172,029.4 million as of December 31, 2022, an increase of 9.7% compared to RMB 156,850.2 million in 2021[72]. - The total amount of corporate loans as of December 31, 2022, was RMB 145,044.6 million, representing 84.3% of total loans and advances issued[111]. Risk Management - The bank's risk management framework is structured with the board of directors as the highest decision-making body, focusing on various risks including credit, market, operational, liquidity, reputation, legal compliance, and information technology risks[159]. - The bank has implemented a mechanism for the disposal of non-performing assets, ensuring accountability in managing credit risk[162]. - The bank's market risk management strategy includes strict limit management and regular stress testing to adjust strategies based on market conditions[164]. - The bank has integrated anti-money laundering (AML) risk management into its comprehensive risk management system, with the board of directors bearing ultimate responsibility for AML risk management[189]. Digital Transformation and Innovation - New digital banking services are set to launch in Q2 2023, aiming to increase user engagement by 25%[5]. - The company has established a comprehensive online financial service platform utilizing cloud-native design, big data, and AI to enhance service efficiency and security[156]. - The group aims to enhance digital transformation by implementing new community banking models and increasing the deployment of smart counters[145]. - The company launched the "Agricultural Machinery Loan" product, which allows for online processing from application to disbursement, aimed at supporting agricultural production organizations[156]. Awards and Recognition - Jilin Jiutai Rural Commercial Bank was awarded as the Most Socially Responsible Listed Company by Zhitong Finance and Tonghuashun Finance in 2022[21]. - The bank ranked among the top 100 in China's banking industry and the top 1000 globally in 2022, as recognized by the China Banking Association and The Banker magazine respectively[21]. - The bank received the Outstanding Contribution Award for Financial Services to the Real Economy in 2022 from Daily Economic News[21]. - The bank's intelligent security SDN platform was awarded as an Excellent Case in Cybersecurity by the third selection of outstanding cases for technology innovation in rural small and medium financial institutions[21]. Corporate Strategy - The bank plans to expand its branch network by 20% in the next fiscal year to enhance customer accessibility[4]. - Future guidance estimates a revenue growth of 10-12% for 2023, driven by increased lending and service diversification[7]. - The strategic vision includes transforming the company into a leading modern and branded rural commercial bank in China[28]. - The group plans to continue expanding its market presence and enhancing its financial services in response to regulatory policies and market demands[31].

Financial Performance - For the year ended December 31, 2022, the total operating income was RMB 14,382.7 million, an increase of 14.8% compared to RMB 12,524.3 million in 2021[5]. - Net interest income for 2022 was RMB 6,514.9 million, representing a growth of 5.5% from RMB 6,176.4 million in 2021[5]. - The net profit attributable to the owners of the bank for 2022 was RMB 1,970.0 million, up from RMB 1,719.0 million in 2021, reflecting a year-on-year increase of 14.6%[5]. - The bank's total assets reached RMB 98.6 billion by the end of 2022, compared to RMB 87.3 billion in 2021, marking a growth of 10.5%[5]. - The bank's fee and commission income for 2022 was RMB 1,983.5 million, an increase from RMB 1,747.5 million in 2021, indicating a growth of 13.5%[5]. - The bank's investment securities net income was RMB 1,672.0 million for 2022, compared to RMB 1,290.0 million in 2021, reflecting a significant increase of 29.6%[5]. - The total operating income for 2022 was RMB 6,597.1 million, an increase of 3.7% from RMB 6,362.3 million in 2021[10]. - Net profit rose by 29.6% to RMB 1,672.0 million in 2022, up from RMB 1,290.0 million in 2021[10]. - Total assets reached RMB 267,000.7 million, reflecting a year-on-year growth of 14.0%[10]. - The net amount of loans and advances was RMB 170,597.4 million, which represents an 11.8% increase compared to the previous year[10]. Asset Quality - The bank's non-performing loan ratio was reported at 1.8% for 2022, a slight increase from 1.7% in 2021[5]. - The non-performing loan ratio was 1.98%, an increase of 0.1 percentage points year-on-year[10]. - Non-performing loans amounted to RMB 3,405.2 million as of December 31, 2022, categorized into substandard, doubtful, and loss categories[77]. - The non-performing loan (NPL) ratio increased from 1.88% as of December 31, 2021, to 1.98% as of December 31, 2022, primarily due to external economic conditions and the impact of the COVID-19 pandemic[79]. - The manufacturing sector had the highest NPL rate at 4.08% as of December 31, 2022, followed by the wholesale and retail sector at 1.29%[81]. - The NPL ratio for retail loans increased from 3.27% as of December 31, 2021, to 4.36% as of December 31, 2022, primarily due to ongoing impacts of COVID-19 and slower recovery of personal income stability[85]. Capital and Liquidity - The core Tier 1 capital adequacy ratio was 8.91%, slightly up from 8.83% in 2021[10]. - The total capital adequacy ratio as of December 31, 2022, was 11.50%, slightly down from 11.63% as of December 31, 2021[179]. - The net core tier 1 capital increased to RMB 17,240.2 million as of December 31, 2022, from RMB 15,896.7 million as of December 31, 2021[179]. - The total risk-weighted assets amounted to RMB 193,589.1 million as of December 31, 2022, up from RMB 180,086.9 million as of December 31, 2021[179]. - The bank's liquidity risk management framework includes a board of directors responsible for approving policies and strategies, with a focus on proactive management and maintaining overall liquidity stability[157]. - The bank's cash and deposits with the central bank reached RMB 34,642.8 million, a significant increase from RMB 30,998.0 million, reflecting a growth of approximately 11.88%[148]. Operational Changes and Strategy - The bank plans to expand its market presence by enhancing digital banking services and increasing customer engagement through new technology initiatives[2]. - The bank's board has confirmed the resignation of the chairman, Gao Bing, effective immediately, which may lead to changes in strategic direction[2]. - The bank is currently in the process of changing its legal representative, which may impact its governance structure moving forward[2]. - The company plans to continue expanding its loan offerings to meet diverse financial service needs, contributing to steady growth in net interest income[18]. - The company aims to enhance financial services and improve online service accessibility in response to the challenges posed by the COVID-19 pandemic[193]. - The company plans to continue focusing on local market development and risk control to achieve high-quality growth[193]. Risk Management - The bank's comprehensive risk management framework addresses credit, market, operational, liquidity, reputational, legal compliance, information technology, and anti-money laundering risks[139]. - The company has established a comprehensive credit risk management system involving the board, risk management committees, and various departments to enhance credit risk oversight[140]. - The company has strengthened its anti-money laundering (AML) framework, integrating it into the overall risk management system and enhancing the monitoring and reporting processes[170]. - The company has improved its AML risk management level by enhancing internal controls and conducting self-inspections to prevent and mitigate money laundering activities[170]. Shareholder Information - The board of directors has recommended not to distribute a final dividend for the year ending December 31, 2022, pending approval at the upcoming annual general meeting[188]. - The company has a total share capital of 5,074,191,569 shares, with 4,107,690,457 domestic shares (81.0%) and 966,501,112 H shares (19.0%)[192]. - The company is obligated to withhold a corporate income tax of 10% on dividends distributed to non-resident corporate shareholders[190]. - The annual general meeting for shareholders is scheduled for June 16, 2023, with a suspension of H share transfer registration from May 17 to June 16, 2023[191].

Ownership and Control of Banks - Jilin Jiutai Rural Commercial Bank holds a 51.00% stake in Anci District Huimin Village Bank, which was established in December 2011[3] - The bank has a 28.17% stake in Anping Huimin Village Bank, established in December 2013, with a voting agreement in place with other shareholders[3] - Jilin Jiutai Rural Commercial Bank controls Baicheng Taobei Huimin Village Bank with a 49.00% stake, established in November 2015, and has a voting agreement with other shareholders[3] - The bank has a 38.80% stake in Changbai Mountain Rural Commercial Bank, established in December 2011[5] - Jilin Jiutai Rural Commercial Bank holds a 40.00% stake in Changchun Gaoxin Huimin Village Bank, established in September 2013, with a voting agreement with other shareholders[5] - The bank has a 51.20% stake in Changchun Nanguan Huimin Village Bank, established in January 2011[6] - Jilin Jiutai Rural Commercial Bank controls Daan Huimin Village Bank with a 51.46% stake, established in January 2011[6] - The bank has a 42.85% stake in Fuyu Huimin Village Bank, established in December 2015, with a voting agreement with other shareholders[6] - Jilin Jiutai Rural Commercial Bank holds a 56.70% stake in Gaomi Huimin Village Bank, established in May 2011[6] - The bank has a 51.00% stake in Guangzhou Huangpu Huimin Village Bank, established in February 2014[6] - The company holds a 35.00% stake in Huizhou Huimin Village Bank, which is considered a subsidiary under its control[8] - The company owns 46.00% of Jilin Chuanying Huimin Village Bank, also classified as a subsidiary[8] - The company has a 20.20% ownership in Jilin Gongzhuling Rural Commercial Bank, with the remaining 79.80% held by 532 other shareholders[9] - The company controls 33.15% of Jingmen Dongbao Huimin Village Bank, which is classified as a subsidiary[9] - The company has a 17.87% stake in Leizhou Huimin Village Bank, with 82.13% held by other shareholders[10] - The company owns 34.36% of Liaoyuan Rural Commercial Bank, which is also considered a subsidiary[10] - The company holds a 60.00% stake in Lujiang Huimin Village Bank, with the remaining 40.00% held by 49 other shareholders[11] - The company has a 45.25% ownership in Qian'an Huimin Village Bank, classified as a subsidiary[11] - The company has established voting agreements with various shareholders across its subsidiaries, ensuring control over board meetings and shareholder meetings[8][9][10][11] Financial Performance - Interest income for the first half of 2022 was RMB 6,759.5 million, an increase of 18.9% compared to RMB 5,686.7 million in the same period of 2021[23] - Net interest income reached RMB 2,947.6 million, reflecting an 8.6% growth from RMB 2,715.3 million year-on-year[23] - Total assets as of June 30, 2022, amounted to RMB 259,460.1 million, representing a 10.8% increase from RMB 234,140.2 million at the end of 2021[24] - Total liabilities were RMB 241,005.0 million, up 11.4% from RMB 216,365.2 million at the end of 2021[24] - The bank's net profit for the first half of 2022 was RMB 653.6 million, a 27.5% increase from RMB 512.5 million in the same period of 2021[23] - Basic earnings per share for the first half of 2022 were RMB 0.14, up 55.6% from RMB 0.09 in the first half of 2021[23] - Total equity as of June 30, 2022, was RMB 18,455.1 million, a 3.8% increase from RMB 17,775.0 million at the end of 2021[24] - The bank's total loans and advances amounted to RMB 168,340.3 million, reflecting a 10.3% increase from RMB 152,642.7 million at the end of 2021[24] - The bank's commission and fee income was RMB 63.1 million, slightly down by 1.4% from RMB 64.0 million in the previous year[23] - For the six months ended June 30, 2022, the total operating income was RMB 3,151.8 million, an increase of 14.5% compared to RMB 2,752.0 million for the same period in 2021[29] - Net profit rose by 27.5% to RMB 653.6 million for the six months ended June 30, 2022, up from RMB 512.5 million for the same period in 2021[29] - Net interest income increased by 8.6% to RMB 2,947.6 million for the six months ended June 30, 2022, compared to RMB 2,715.3 million for the same period in 2021[29] - As of June 30, 2022, total assets amounted to RMB 259,460.1 million, reflecting a growth of 10.8% since the beginning of the year[29] - The net amount of loans and advances increased by 10.3% to RMB 168,340.3 million compared to the beginning of the year[29] - The non-performing loan ratio was 1.96%, an increase of 0.08 percentage points from the beginning of the year[29] - Total deposits reached RMB 217,528.1 million, representing a growth of 12.6% since the beginning of the year[29] - The cost-to-income ratio improved to 40.64%, down from 44.24% in the previous year, indicating better operational efficiency[25] - The core tier 1 capital adequacy ratio was 8.51%, slightly down from 8.83% in the previous year, reflecting a focus on maintaining capital strength[25] Loan and Asset Management - The company plans to enhance community financial services and expand retail banking operations to capture growth potential in personal financial services[28] - The company expanded its loan issuance to support the real economy, rural revitalization, and small and medium enterprises, contributing to the growth in net interest income[30] - Operating expenses and asset impairment losses increased, partially offsetting the gains in net interest income[30] - The average interest rate on interest-earning assets was 5.49%, slightly down from 5.56% in the previous year[31] - The company plans to continue expanding its funding channels based on market conditions to enhance capital utilization efficiency[30] - The average balance of interest-earning assets rose from RMB 204,698.7 million to RMB 246,200.2 million, contributing to the increase in interest income[40] - The interest income from loans and advances accounted for 85.2% of total interest income in the six months ended June 30, 2022, up from 80.5% in the same period of 2021[41] - Interest income from loans and advances grew by 25.8% to RMB 5,757.1 million, driven by an increase in average balance from RMB 144,393.4 million to RMB 171,652.8 million[42] - The average yield on loans and advances increased from 6.34% to 6.71% due to a higher proportion of medium to long-term loans[42] - Interest income from investment securities and other financial assets decreased by 21.1% to RMB 664.3 million, primarily due to a drop in average yield from 5.96% to 4.14%[43] - Interest income from interbank placements fell by 1.0% to RMB 95.1 million, with the average yield declining from 1.62% to 1.38%[44] - Interest income from repurchase agreements surged by 125.5% to RMB 115.0 million, attributed to an increase in average balance from RMB 3,225.1 million to RMB 10,398.1 million[45] - Interest income from deposits with the central bank increased by 4.7% from RMB 105.3 million for the six months ended June 30, 2021, to RMB 110.3 million for the six months ended June 30, 2022, due to an increase in average balance from RMB 16,162.3 million to RMB 17,298.5 million, despite a slight decrease in average yield from 1.30% to 1.28%[46] - Interest income from funds lent out rose by 3.5% from RMB 17.1 million for the six months ended June 30, 2021, to RMB 17.7 million for the six months ended June 30, 2022, driven by an increase in average balance from RMB 810.1 million to RMB 936.9 million, although offset by a decline in average yield from 4.22% to 3.78%[47] - The net interest margin decreased to 2.29% from 2.52% in the previous year[34] - The company aims to enhance credit support for enterprises affected by the pandemic, focusing on meeting reasonable credit demands[79] - The company has implemented stricter credit assessment standards for guaranteed loans, primarily accepting guarantees from listed companies or guarantee companies[83] Risk Management - The bank has established a comprehensive risk management system to mitigate uncertainties affecting strategic and operational goals[162] - Credit risk management focuses on corporate loans, retail loans, and funding operations, with a structured organization involving various committees and departments[163] - In the first half of 2022, the bank enhanced credit risk management processes, ensuring asset quality and timely identification of credit risks[165] - Market risk management aims to control potential market losses within acceptable levels while maximizing risk-adjusted returns[166] - The bank employs tools such as sensitivity analysis, duration, and Value at Risk (VaR) to measure and manage market risks effectively[167] - Interest rate risk management addresses risks from mismatches in the timing of asset and liability repricing, with a focus on maintaining controllable risk levels[168] - The bank strengthened interest rate risk management by enhancing internal fund transfer pricing (FTP) and loan pricing systems (RPM), optimizing resource allocation and improving risk control capabilities[169] - In the first half of 2022, the bank conducted regular stress tests on interest rate risk, assessing the impact of interest rate fluctuations on economic value under various scenarios[169] - The bank implemented measures to manage foreign exchange risk, including real-time monitoring of foreign exchange positions and hedging strategies to minimize exposure and stabilize earnings[170] - The bank's liquidity risk management framework was reinforced, ensuring stability in liquidity levels despite external pressures such as the pandemic[173] - The bank increased the proportion of core liabilities and enhanced the reserve of high-quality liquid assets to reduce reliance on interbank financing[174] - The bank conducted regular liquidity stress tests to evaluate cash flow gaps and financing capabilities under extreme scenarios, improving its response to liquidity risks[174] - The bank's operational risk management included quarterly checks on employee behavior and accounting practices to mitigate potential risks[172] - The bank's information management systems maintained 100% availability, ensuring operational resilience against power outages and equipment failures[172] - The bank's risk management policies were aligned with its development strategy and shareholder value requirements, balancing growth and risk effectively[169] Shareholder and Capital Structure - The bank's capital adequacy ratios must meet specific regulatory requirements, with a minimum capital adequacy ratio of 10.5% and a minimum Tier 1 capital ratio of 8.5% as of June 30, 2022[191] - The number of shares outstanding as of June 30, 2022, was 4,612,901,427, with domestic shares accounting for 81.0% and H shares for 19.0%[194] - The company issued additional shares, increasing the total to 5,074,191,569 shares post-capitalization[195] - The top ten domestic shareholders held a combined total of 1,805,590,338 shares, representing approximately 39.13% of the issued capital[197] - The largest shareholder, Jilin Trust Co., Ltd., held 443,289,245 shares, accounting for 9.61% of the total[198] - The second-largest shareholder, Changchun Huaxing Construction Co., Ltd., held 379,766,198 shares, representing 8.23%[198] - The company reported an increase in undistributed profits to RMB 2,166.6 million from RMB 1,436.8 million year-over-year[192] - The tier 1 capital ratio was 8.60%, down from 8.96% in the previous year[192] Operational Developments - The bank's data center achieved 100% availability in its overall operation and maintenance as of June 30, 2022[159] - The bank conducted 8 emergency drills in the first half of 2022, enhancing its emergency response capabilities[160] - The bank's technology personnel obtained 14 advanced certifications and qualifications, including RPA Engineer Certification and PMP[161] - The online financial comprehensive service platform project won the "IT Architecture Innovation Excellent Case Award" in 2022[161] - The bank established six service centers in various provinces to support the operations of its village banks[155] - The bank is actively developing a digital banking platform and enhancing self-service equipment functionalities as part of its financial technology innovation plan[158] - The group operated 383 business outlets as of June 30, 2022, with 175 directly managed by the group and the rest by subsidiaries[147] - The group had 395 self-service business outlets and 989 self-service devices as of June 30, 2022, enhancing customer convenience[148] - The number of telephone and SMS banking customers reached 2,829,820 as of June 30, 2022, indicating a significant customer base for remote banking services[149] - Online banking customers totaled 468,205 as of June 30, 2022, reflecting the group's digital service adoption[150] - The group reported 964,243 mobile banking customers as of June 30, 2022, showcasing the popularity of mobile banking services[151] Wealth Management and Retail Banking - The total amount of wealth management products sold to retail customers was RMB 4,719.7 million for the six months ended June 30, 2022, compared to RMB 3,198.1 million for the same period in 2021, representing a growth of 47.5%[131] - The total amount of investment securities and other financial assets increased by 7.9% from RMB 30,806.5 million as of December 31, 2021, to RMB 33,240.5 million as of June 30, 2022[140] - The group’s net fee and commission income for the six months ended June 30, 2022, was RMB 20.4 million, compared to RMB 0.3 million in the same period of 2021, indicating a significant increase[133] - The group’s total assets under management for wealth management services included customized financial services amounting to RMB 360.0 million for the six months ended June 30, 2022, compared to RMB 331.5 million in the same period of 2021[131] - The company is committed to expanding its retail banking services and enhancing customer engagement through various financial products[124] - The total number of retail loan customers reached 69,756, with total loans and advances amounting to RMB 27,279.9 million as of June 30, 2022[124] - Retail banking operating income was RMB 1,444.3 million in 2022, reflecting a 13.5% increase from RMB 1,272.1 million in 2021[125] - Retail deposits totaled RMB 168,964.3 million as of June 30, 2022, compared to RMB 143,412.8 million as of December 31, 2021, representing 77.7% of total deposits[127] Corporate Banking and Client Relationships - The company aims to strengthen long-term relationships with corporate clients, particularly focusing on small and medium-sized enterprises[116] - The company has partnered with various financial institutions to provide comprehensive financial services to corporate clients[116] - The company reported a pre-tax profit of RMB 559.6 million for corporate banking, a significant increase from a loss of RMB 92.9 million in the previous year[114] - The net interest income for corporate banking was RMB 2,045.7 million in 2022, a 47.8% increase from RMB 1,384.5 million in 2021[114] - The operating income from corporate banking increased to RMB 2,051.8 million in 2022, up 45.1% from RMB 1,413.7 million in 2021[114] - As of June 30, 2022, the total loan amount for corporate clients reached RMB 144,577.5 million, representing an increase from RMB 130,241.9 million as of December 31, 2021, accounting for 84.1% of total loans issued[116]

Financial Performance - Total assets of the group reached RMB 234.14 billion by the end of 2021, with total deposits amounting to RMB 193.11 billion and total loans and advances of RMB 156.85 billion, resulting in a net profit of RMB 1.29 billion[10]. - The bank's total assets were RMB 165.32 billion, with total deposits of RMB 133.77 billion and customer loans and advances totaling RMB 111.37 billion, achieving a net profit of RMB 1.43 billion by the end of 2021[17]. - In 2021, the net interest income was RMB 6,176.4 million, an increase of 21.2% from RMB 5,098.5 million in 2020[65]. - The annual profit for 2021 was RMB 1,290.0 million, representing an increase of 7.5% compared to RMB 1,199.7 million in 2020[65]. - The basic earnings per share remained stable at RMB 0.24 in 2021, unchanged from 2020[67]. - The capital adequacy ratio improved to 11.63% in 2021 from 11.37% in 2020, reflecting a stronger capital position[67]. - The net interest margin increased to 2.91% in 2021, compared to 2.75% in 2020, indicating improved profitability[67]. - The total operating income of the group was RMB 6,362.3 million, an increase of 14.7% from RMB 5,546.8 million in 2020[74]. - The total amount of loans and advances was RMB 156,850.2 million, which represents a 20.6% increase year-on-year[74]. - The non-performing loan ratio increased to 1.88% in 2021 from 1.63% in 2020, indicating a decline in asset quality[67]. Strategic Focus and Development - The bank's focus on rural revitalization and support for small and micro enterprises contributed to its recognition as a "Top Ten Precision Poverty Alleviation Institution" in rural finance[10]. - The bank plans to continue its transformation and high-quality development in 2022, emphasizing the integration of rural finance, community finance, cooperative platforms, and public welfare[18]. - The bank aims to balance scale and efficiency, speed and quality, as well as returns and risks in its future operations[18]. - The group plans to enhance community financial services and expand retail banking operations as part of its strategic vision[73]. - The group aims to strengthen risk management and internal controls while focusing on high-quality development[73]. Product and Service Innovation - The bank launched new products such as "Sunshine Loan," "Red Hatch Loan," and "Ji Mu Bao," enhancing its product offerings and supporting community financial services[17]. - The company continues to enhance digital capabilities and customer acquisition through improved service quality and targeted marketing strategies[111]. Risk Management and Compliance - The bank's compliance and risk management capabilities have improved, maintaining all regulatory indicators in a compliant and stable manner[17]. - The company plans to continue optimizing its asset structure and increasing credit investments to support future growth[94]. - The provision for impairment losses on loans increased by 32.2% from RMB 3,501.9 million as of December 31, 2020, to RMB 4,628.1 million as of December 31, 2021, reflecting a cautious approach to potential risks[166]. Community Engagement and Social Responsibility - The bank's community engagement and social responsibility initiatives have been recognized, with various charitable projects supporting education, the elderly, and the disabled[9]. - The company was awarded for its outstanding contributions to social responsibility and rural financial support in Jilin Province[54]. - The company has been acknowledged for its excellent service in rural revitalization and inclusive finance in 2021[59]. Ownership and Investments - The company holds a 51.00% stake in Anci District Huimin Village Bank, which was established in December 2011[6]. - The company has a 28.17% ownership in Anping Huimin Village Bank, established in December 2013, with a voting agreement in place with other shareholders[6]. - The company owns 49.00% of Baicheng Taobei Huimin Village Bank, established in November 2015, and has a voting agreement with other shareholders[6]. - The company has a 38.80% stake in Changbai Mountain Rural Commercial Bank, established in December 2011[6]. - The company holds a 40.00% stake in Changchun Gaoxin Huimin Village Bank, established in September 2013, with a voting agreement with other shareholders[6]. - The company owns 51.20% of Changchun Nanguan Huimin Village Bank, established in January 2011[6]. - The company has a 51.46% stake in Da'an Huimin Village Bank, established in January 2011[6]. - The company holds a 42.85% stake in Fuyu Huimin Village Bank, established in December 2015, with a voting agreement with other shareholders[6]. - The company owns 56.70% of Gaomi Huimin Village Bank, established in May 2011[6]. - The company has a 51.00% stake in Guangzhou Huangpu Huimin Village Bank, established in February 2014[6]. - The company holds a 35.00% stake in Huizhou Huimin Village Bank, which is considered a subsidiary under its control[29]. - The company owns 46.00% of Jilin Chuanying Huimin Village Bank, also classified as a subsidiary[29]. - The company has a 14.50% ownership in Jilin Chunchen Rural Commercial Bank, with the remaining 85.50% held by other shareholders[29]. - The company controls Jilin Fengman Huimin Village Bank with a 46.00% stake, while other shareholders hold 54.00%[31]. - The company has a 20.20% stake in Jilin Gongzhuling Rural Commercial Bank, with 79.80% held by other shareholders[31]. - The company owns 30.29% of Jilin Jiuyin Financial Leasing Company, which is also a subsidiary[31]. - The company holds a 33.15% stake in Jingmen Dongbao Huimin Village Bank, classified as a subsidiary[31]. - The company has a 34.36% ownership in Liaoyuan Rural Commercial Bank, which is under its control[32]. - The company controls Lijiang Huimin Village Bank with a 60.00% stake, while other shareholders hold 40.00%[32]. - The company has a 45.25% stake in Qian'an Huimin Village Bank, which is also considered a subsidiary[34]. - Jiutai Rural Commercial Bank holds 58.82% equity in Qingdao Pingdu Huimin Village Bank, which was established on December 23, 2010[36]. - Jiutai Rural Commercial Bank owns 53.53% of Qingyuan Qingxin Huimin Village Bank, established on January 23, 2014[36]. - Jiutai Rural Commercial Bank has a 20.00% stake in Sanya Huimin Village Bank, which is considered a subsidiary due to a voting agreement[36]. - Jiutai Rural Commercial Bank controls Shuangcheng Huimin Village Bank with a 62.26% equity stake, established on January 25, 2010[38]. - Jiutai Rural Commercial Bank holds 40.80% of Songyuan Ningjiang Huimin Village Bank, established on January 19, 2011[38]. - Jiutai Rural Commercial Bank has a 40.83% stake in Taonan Huimin Village Bank, established on December 11, 2015[40]. - Jiutai Rural Commercial Bank owns 47.00% of Tianjin Binhai Huimin Village Bank, established on June 11, 2014[42]. - Jiutai Rural Commercial Bank holds 75.76% equity in Tongcheng Huimin Village Bank, established on September 19, 2012[42]. - Jiutai Rural Commercial Bank has a 36.00% stake in Wen'an County Huimin Village Bank, established on December 23, 2011[42]. - Jiutai Rural Commercial Bank controls Wuchang Huimin Village Bank with a 66.67% equity stake, established on November 11, 2010[42]. Awards and Recognition - The company received multiple awards in 2021, including being recognized as one of the top 100 banks in China by the China Banking Association[54]. - The company was recognized as a leading institution in precision poverty alleviation and received accolades for its innovative financial products[57]. - The company has received recognition for its information security practices and innovative capabilities in the banking sector[57]. - The company has been awarded for its contributions to the rural financial system and support for small and micro enterprises[62].

Financial Performance - The company reported a significant increase in total assets, reaching RMB 100 billion, representing a growth of 15% year-over-year[3]. - The company is targeting a net profit growth of 10% for the full year 2019, supported by increased lending and improved interest margins[3]. - Net interest income for the first half of 2019 was RMB 1,913.9 million, an increase of 9.1% compared to RMB 1,753.6 million in the same period of 2018[18]. - The bank's net profit attributable to owners for the first half of 2019 was RMB 454.7 million, representing a 22.8% increase from RMB 370.2 million in the first half of 2018[18]. - Net profit rose by 5.2% to RMB 499.4 million, up from RMB 474.5 million in the first half of 2018[25]. - The total operating income for the first half of 2019 was RMB 2,427.0 million, a 2.1% increase from RMB 2,376.9 million in the same period of 2018[25]. - The bank's total equity as of June 30, 2019, was RMB 14,897.0 million, a decrease of 1.4% from RMB 15,107.5 million at the end of 2018[19]. - The bank's total liabilities were RMB 148,638.8 million, down 0.3% from RMB 149,145.7 million at the end of 2018[19]. Asset Quality - Non-performing loan ratio improved to 1.5%, down from 2.0% in the previous year, indicating better asset quality management[7]. - Non-performing loan ratio remained stable at 1.85%[25]. - The non-performing loan (NPL) ratio increased to 1.85% as of June 30, 2019, compared to 1.75% as of December 31, 2018, primarily due to macroeconomic conditions and structural adjustments[88]. - The total amount of non-performing loans was RMB 1,611.3 million as of June 30, 2019, up from RMB 1,354.8 million at the end of 2018[95]. - The highest non-performing loan rates were in the accommodation and catering industry (3.79%), real estate (3.57%), and residents and other services (3.55%) as of June 30, 2019[91]. Customer Deposits and Loans - Customer deposits grew by 20% to RMB 80 billion, reflecting strong customer confidence and market expansion efforts[3]. - Customer loans and advances increased by 12.4% to RMB 84,694.7 million from RMB 75,354.5 million at the end of 2018[19]. - Total customer loans and advances reached RMB 87,296.8 million as of June 30, 2019, representing a 12.6% increase from RMB 77,527.7 million as of December 31, 2018[71]. - Retail loans grew by 5.6% from RMB 20,668.6 million as of December 31, 2018, to RMB 21,827.5 million as of June 30, 2019[73]. - The total amount of loans to small and micro enterprises reached RMB 65,469.3 million as of June 30, 2019, with 2,676 corporate loan customers[107]. Capital Adequacy - The bank's capital adequacy ratio stands at 12.5%, above the regulatory requirement, ensuring financial stability and growth potential[7]. - The capital adequacy ratio was maintained at a healthy level, with a capital return rate of 6.66%, up from 6.17% in the previous year[20]. - The core Tier 1 capital adequacy ratio was 8.85%, down from 9.40%[21]. - Tier 1 capital adequacy ratio was 8.94%, down from 9.50%[21]. - The bank's capital adequacy ratio was 11.25% as of June 30, 2019, down from 11.83% as of December 31, 2018[184]. Risk Management - The management emphasized a commitment to sustainable growth and risk management practices in the upcoming fiscal year[3]. - The bank's credit risk management includes a customer admission mechanism and a credit exit mechanism to regularly reassess credit ratings[158]. - The bank has enhanced its market risk management capabilities, focusing on early warning and effective measures to prevent market risks, with a particular emphasis on monitoring market dynamics[160]. - The bank's operational risk management framework includes daily monitoring, identification, assessment, and control of operational risks, with a focus on training and compliance[164]. - The bank established a compliance risk management framework to ensure legal and regulatory adherence, revising over 40 internal regulations in 2019[169]. Digital Banking and Innovation - The bank plans to launch a new digital banking platform by Q4 2019, aiming to enhance customer experience and operational efficiency[3]. - Research and development investments increased by 25% to enhance technology capabilities and product offerings[3]. - The bank successfully launched a new credit card product, "Fenbei Card," enhancing online card usage experience through the "Jiutai Rural Commercial Bank Credit Card" WeChat public account and "Jiushang Credit Card" mobile app[123]. Operating Expenses - Operating expenses decreased by 10.2% from RMB 1,288 million to RMB 1,156 million, driven by reductions in employee costs and general administrative expenses[58]. - Employee costs decreased by 8.6% from RMB 731 million to RMB 668 million, attributed to a reduction in the number of consolidated rural commercial banks[61]. - Income tax expense rose by 16.6% from RMB 946 million to RMB 1,103 million, driven by an increase in pre-tax profits and effective tax rate[67]. Shareholder Information - The total number of shares issued by the company is 4,184,037,577, with 81.0% being domestic shares and 19.0% being H shares[187]. - The top ten domestic shareholders hold a total of 1,638,733,544 shares, representing approximately 41.12% of the issued share capital[189]. - The largest domestic shareholder is Jilin Trust Co., Ltd. with 382,929,916 shares, accounting for 9.61% of the total issued shares[190]. - The company has a significant number of pledged or frozen shares, totaling 210,000,000 shares[189]. - The company's ownership structure is dispersed, with no controlling shareholder or actual controller identified[198].