Group 1 - The core viewpoint is that the banking sector in China has experienced a general increase in stock prices, with notable performances from specific banks [1][2] - JiuTai Rural Commercial Bank led the gains with a remarkable increase of 11.69% [1] - China Everbright Bank followed closely with a rise of 4.76%, while several other banks, including Industrial and Commercial Bank of China, Minsheng Bank, and Postal Savings Bank, saw increases exceeding 3% [2]

Financial Performance - Jilin Jiutai Rural Commercial Bank reported a mid-year financial summary for 2024, with total assets reaching RMB 100 billion, reflecting a year-on-year increase of 15%[3]. - The bank's net profit for the first half of 2024 was RMB 1.5 billion, representing a growth of 10% compared to the same period last year[3]. - Future outlook includes a projected net profit growth of 12% for the full year 2024, driven by increased lending and improved asset quality[3]. - The net profit for the period was RMB 130.2 million, reflecting a slight increase of 1.6% compared to RMB 128.1 million for the same period in 2023[21]. - The pre-tax profit for the period was RMB 134.0 million, an increase of 39.9% year-on-year[31]. - The total operating income was RMB 2,045.2 million, a decrease of 18.8% compared to RMB 2,517.5 million for the same period in 2023[28]. - The net interest income decreased by 25.8% to RMB 1,792.7 million for the six months ended June 30, 2024, compared to RMB 2,417.1 million for the same period in 2023[21]. - The bank's total equity increased by 1.5% to RMB 19,150.2 million as of June 30, 2024, from RMB 18,864.5 million as of December 31, 2023[22]. Customer Base and Market Expansion - User data indicates that the bank has expanded its customer base by 20%, now serving over 1 million clients[3]. - Market expansion strategies include opening 10 new branches in key urban areas by the end of 2024[3]. - The company aims to enhance retail transformation and optimize operational structure to support high-quality development and regional economic growth[27]. Digital Transformation and Innovation - The bank plans to launch a new digital banking platform by Q4 2024, aiming to enhance customer experience and operational efficiency[3]. - Research and development efforts are focused on integrating AI technologies into banking services to streamline operations and reduce costs[3]. Risk Management - The bank has implemented new risk management strategies, resulting in a 5% reduction in non-performing loans[3]. - The bank has established a comprehensive risk management system to mitigate uncertainties affecting strategic and operational goals[153]. - Credit risk management involves a structured organization including the board, risk management committees, and various departments to oversee credit risk associated with corporate and retail loans[154]. - The bank's liquidity risk management aims to ensure the timely acquisition of sufficient funds to meet debt obligations, focusing on both external and internal factors[163]. Loan and Asset Management - The total amount of loans and advances increased by 1.7% from RMB 178,111.4 million to RMB 181,173.5 million, with net loans and advances accounting for 68.5% of total assets[75]. - The provision for impairment losses on loans and advances rose by 3.6% from RMB 6,554.5 million as of December 31, 2023, to RMB 6,791.5 million as of June 30, 2024, reflecting increased risk assessment[81]. - The bank's non-performing loan ratio increased to 2.44% as of June 30, 2024, from 2.34% as of December 31, 2023[24]. Shareholder and Governance Structure - The bank's board of directors consists of eight members, with significant roles in strategic decision-making and business development[193]. - The bank's management team includes Chen Xinzhe as the President, responsible for overall business operations, and several vice presidents overseeing various departments[196]. - The largest shareholder of Jiutai Rural Commercial Bank is Jilin Trust Co., Ltd., holding 487,618,170 shares, which accounts for 9.61% of the total issued share capital[191]. Financial Ratios and Capital Adequacy - The bank's capital adequacy ratio stands at 12.5%, above the regulatory requirement, indicating a strong financial position[3]. - As of June 30, 2024, the core tier 1 capital ratio increased to 8.85% from 8.72% as of December 31, 2023[183]. - The total risk-weighted assets amounted to 195,962.7 million RMB, up from 195,300.0 million RMB[183]. Operational Efficiency and Cost Management - Total operating expenses decreased by 6.3% from RMB 1,380.2 million to RMB 1,292.7 million, reflecting enhanced cost control measures[64]. - Employee costs decreased by 4.7% from RMB 921.6 million to RMB 878.0 million[65]. - The cost-to-income ratio increased to 61.79% for the six months ended June 30, 2024, compared to 53.18% for the same period in 2023[23]. Compliance and Regulatory Framework - The bank initiated a compliance risk management framework, emphasizing internal control and compliance culture to ensure lawful operations[167]. - The internal audit system is designed to promote compliance with national financial regulations and improve risk management and internal controls[172].

Financial Performance - For the six months ended June 30, 2024, the bank reported interest income of RMB 5,670.3 million, a decrease of 13.2% from RMB 6,533.5 million in the same period of 2023[5]. - Net interest income for the same period was RMB 1,792.7 million, down 25.8% from RMB 2,417.1 million year-on-year[5]. - The bank's net profit for the period was RMB 130.2 million, a slight increase of 1.6% compared to RMB 128.1 million in the same period of 2023[5]. - The total operating income for the six months ended June 30, 2024, was RMB 2,045.2 million, a decrease of 18.8% compared to RMB 2,517.5 million for the same period in 2023[11]. - The pre-tax profit for the six months ended June 30, 2024, was RMB 134.0 million, an increase of 39.9% year-on-year[13]. - The basic earnings per share for the six months ended June 30, 2024, was RMB 0.02, down 33.3% from RMB 0.03 in the previous year[5]. - The company reported a profit for the period of RMB 130,205, slightly up from RMB 128,071 in the same period of 2023, indicating a growth of 1.7%[178]. - The company’s total equity increased to RMB 19,150,215 as of June 30, 2024, from RMB 18,864,537 at the end of 2023, representing a growth of 1.5%[180]. Asset and Liability Management - The bank's total assets as of June 30, 2024, were RMB 265,068.0 million, a decrease of 1.7% from RMB 269,775.0 million at the end of 2023[6]. - Total liabilities decreased by 2.0% to RMB 245,917.8 million from RMB 250,910.5 million as of December 31, 2023[6]. - Total deposits decreased by 1.7% to RMB 232,586.4 million compared to the beginning of the year[11]. - The total amount of loans and advances issued increased by 1.7% from RMB 178,111.4 million as of December 31, 2023, to RMB 181,173.5 million as of June 30, 2024[56]. - The total amount of investment securities and other financial assets decreased by 7.2% from RMB 38,696.0 million as of December 31, 2023, to RMB 35,890.9 million as of June 30, 2024[111]. Loan and Asset Quality - The non-performing loan ratio increased to 2.44% from 2.34% at the end of 2023, indicating a deterioration in asset quality[7]. - The non-performing loans (NPLs) reached RMB 4,419.9 million, resulting in a non-performing loan ratio of 2.44%, up from 2.34% as of December 31, 2023[75]. - Retail loans saw an increase in the non-performing loan ratio from 5.56% to 6.20% during the same period, attributed to economic pressures and slow income growth for some borrowers[82]. - The impairment loss on assets decreased to RMB 616,043 thousand for the six months ended June 30, 2024, compared to RMB 1,043,898 thousand for the same period in 2023, representing a reduction of approximately 41%[198]. Interest Income and Expenses - Interest income decreased by 13.2% from RMB 6,533.5 million for the six months ended June 30, 2023, to RMB 5,670.3 million for the six months ended June 30, 2024, primarily due to a decline in the average yield on interest-earning assets from 4.94% to 4.24%[22]. - Total interest expenses decreased from RMB 4,116.4 million in 2023 to RMB 3,877.6 million in 2024, reflecting a reduction in the average interest rate from 3.20% to 2.90%[17]. - The average yield on loans and advances decreased from 6.13% to 5.20%[16]. - The average interest rate on interest-bearing liabilities decreased by 0.30 percentage points, primarily due to adjustments in deposit pricing strategies[37]. Operational Efficiency - Operating expenses decreased by 6.3% from RMB 1,380.2 million to RMB 1,292.7 million, attributed to enhanced cost control measures[45]. - Employee costs fell by 4.7% from RMB 921.6 million to RMB 878.0 million, mainly due to a reduction in salaries and bonuses[47]. - The company has three branches, 89 sub-branches, and 35 subsidiaries as of June 30, 2024, indicating a stable operational structure[186]. Risk Management - The bank implemented a comprehensive risk management system to mitigate uncertainties affecting strategic and operational goals, focusing on credit, market, operational, liquidity, reputational, legal compliance, and information technology risks[131]. - The liquidity risk management framework is established to ensure timely access to sufficient funds for debt repayment, influenced by both external and internal factors[141]. - The company conducted liquidity risk stress tests quarterly, setting appropriate stress scenarios to reflect cash flow gaps and financing capabilities under risk mitigation[142]. - The company has established a comprehensive network security protection system to respond to major threats and incidents effectively[146]. Strategic Initiatives - The bank aims to enhance retail transformation and optimize operational management to promote high-quality development[10]. - The strategic vision includes becoming a competitive professional financial service provider with a focus on supporting the real economy and local development[10]. - The company plans to continue focusing on market expansion and new product development to drive future growth[181]. - The company launched several digital financial products, including "Jiu e Loan," "Trade Union Loan," and "Cloud Car Loan," enhancing its service offerings in the first half of 2024[128].

Operational Performance - The bank has maintained a stable operational performance amidst various challenges, focusing on serving the real economy and rural revitalization initiatives [4]. - The bank's leadership expresses gratitude to shareholders, investors, and employees for their support and contributions to the bank's achievements [7]. - The bank's corporate culture emphasizes "struggle, service, compliance, and integrity," which has been fully promoted throughout the organization [4]. Retail Transformation - The bank has initiated a retail transformation, launching three major campaigns to enhance its retail business and optimize channel construction [7]. - The group plans to enhance retail transformation and optimize operational management to drive growth [33]. - The total operating income for retail banking was RMB 2,872.1 million for the year ended December 31, 2023, compared to RMB 3,313.8 million in 2022, reflecting an increase in contribution to total income [109]. Financial Performance - In 2023, the company's annual profit was RMB 178.4 million, a significant decrease from RMB 1,672.0 million in 2022 [29]. - Total assets reached RMB 269,775.0 million in 2023, slightly up from RMB 267,000.7 million in 2022 [30]. - The net profit for 2023 dropped by 89.3% to RMB 178.4 million, down from RMB 1,672.0 million in 2022 [34]. Risk Management - The bank has established a comprehensive risk management system covering all business areas and processes, with a focus on credit management and risk monitoring [4]. - The bank's comprehensive risk management framework includes credit risk, market risk, operational risk, liquidity risk, and information technology risk, with the board overseeing the risk management process [161]. - The bank's operational risk management framework includes strict separation of responsibilities across front, middle, and back offices [192]. Community Engagement and Recognition - The bank has received recognition for its community service initiatives, including being awarded as a national model for volunteer service activities [7]. - Jilin Jiutai Rural Commercial Bank received the "Outstanding Case of Banking Services for Rural Revitalization" award for 2022 from China Net [26]. - The bank was awarded the "2023 Inclusive Finance Award" by Investment Times, highlighting its commitment to financial inclusivity [27]. Asset and Liability Management - The bank's total liabilities reached RMB 250,910.5 million, with deposits from customers being the largest component [167]. - The bank's liquidity position is supported by cash and deposits with central banks totaling RMB 27,149.6 million [167]. - The bank's asset-liability gap as of December 31, 2023, was RMB 18,864.5 million, indicating a significant difference between assets and liabilities [167]. Investment and Loan Portfolio - The total amount of loans and advances rose by 3.5% to RMB 178,111.4 million as of December 31, 2023, with net loans and advances representing 65.4% of total assets [79]. - The total amount of retail loans was RMB 25,749.8 million, with a non-performing loan amount of RMB 1,430.8 million, resulting in an NPL ratio of 5.56% [102]. - The total amount of investment securities and other financial assets increased by 14.7% to RMB 38,696.0 million as of December 31, 2023, up from RMB 33,726.6 million as of December 31, 2022 [139]. Compliance and Governance - The bank has established a comprehensive internal audit system independent of business operations, ensuring effective evaluation of risk management and compliance [196]. - Legal compliance risk management aims to establish a robust compliance framework to prevent legal sanctions and financial losses [183]. - The bank's compliance culture will be promoted through a series of activities aimed at reinforcing the importance of compliance across all levels [183]. Future Outlook and Strategic Direction - The company aims to enhance market expansion strategies in the upcoming fiscal year [200]. - Future outlook indicates a focus on new product development and technological advancements [200]. - The report highlights a commitment to transparency and accuracy in financial reporting [200].

Financial Performance - The annual profit for the year ended December 31, 2023, was RMB 178.4 million, a decrease from RMB 1,672.0 million in 2022[6]. - The net profit for 2023 was RMB 178.4 million, down 89.3% from RMB 1,672.0 million in 2022[12]. - The total operating income of the group was RMB 5,514.3 million, a decrease of 16.4% compared to RMB 6,597.1 million in 2022[12]. - The pre-tax profit for 2023 was RMB 66.4 million, a decline of 96.7% compared to the previous year[15]. - Total comprehensive income for the year was RMB 250,987,000, compared to RMB 1,622,887,000 in the previous year, reflecting a significant decrease[192]. - The company incurred a net loss from trading activities of RMB 47,532 thousand for the year, compared to a gain of RMB 95,101 thousand in 2022[191]. - The company’s fee and commission income decreased to RMB 98,439 thousand, down from RMB 153,493 thousand in the previous year, reflecting a decline of approximately 35.9%[191]. - The company’s dividend income dropped to RMB 7,784 thousand from RMB 21,423 thousand in 2022, a decrease of about 63.7%[191]. Asset and Liability Management - Total assets increased to RMB 269,775.0 million in 2023, compared to RMB 267,000.7 million in 2022, representing a growth of 1.0%[8]. - Total liabilities reached RMB 250,910.5 million in 2023, an increase from RMB 248,381.4 million in 2022[8]. - The bank's total liabilities stood at RMB 250,910.5 million as of December 31, 2023, compared to RMB 248,381.4 million in 2022[68]. - The bank's cash and deposits with central banks totaled RMB 27,149.6 million, providing a strong liquidity buffer[142]. - The asset-liability gap stood at RMB 18,864.5 million, indicating a positive liquidity position[143]. - The bank's liquidity risk management framework emphasizes proactive management, maintaining a stable liquidity position despite external economic changes[151]. Loan and Deposit Trends - The total amount of loans and advances issued increased by 3.5% to RMB 178,111.4 million as of December 31, 2023, accounting for 65.4% of total assets[57]. - Total deposits reached RMB 236,654.1 million, marking a year-on-year increase of 4.1%[12]. - The bank's loan-to-deposit ratio was 75.26% in 2023, a slight decrease from 75.67% in 2022[8]. - Retail deposits accounted for 80.1% of total deposits as of December 31, 2023, up from 74.5% in the previous year[69]. - The total amount of retail loans issued by the company was RMB 25,749.8 million, accounting for 14.5% of the total loans and advances[101]. Non-Performing Loans and Asset Quality - The non-performing loan ratio rose to 2.34% in 2023, up from 1.98% in 2022, indicating a deterioration in asset quality[8]. - Non-performing loans increased to RMB 4,175.5 million, resulting in a non-performing loan ratio of 2.34% as of December 31, 2023, up from 1.98% in the previous year[75]. - The provision for loan impairment increased by 22.3% from RMB 5,359.5 million as of December 31, 2022, to RMB 6,554.5 million as of December 31, 2023, reflecting changes in loan scale and potential risk levels[63]. - The amount of loans classified as "attention" rose significantly from RMB 5,533.9 million in 2022 to RMB 10,563.5 million in 2023, indicating increased credit risk[74]. Interest Income and Expenses - Net interest income for 2023 was RMB 5,528.4 million, down from RMB 6,514.9 million in 2022, reflecting a decline of approximately 15.1%[7]. - Interest income decreased by 4.9% from RMB 14,382.7 million in 2022 to RMB 13,674.5 million in 2023, primarily due to a decline in average yield on interest-earning assets from 5.65% to 5.15%[24]. - Total interest expense increased to RMB 8,146.1 million in 2023 from RMB 7,867.8 million in 2022, with deposits accounting for 93.6% of total interest expense[32]. - The average yield on total deposits was 3.24% in 2023, slightly up from 3.22% in 2022[33]. Operational and Strategic Initiatives - The group plans to enhance retail transformation and optimize operational management to drive growth[11]. - The strategic vision includes becoming a competitive professional financial service provider with a focus on serving the real economy[11]. - The company plans to focus on expanding its interest-earning asset base to improve net interest income in the future[24]. - The company has established a village bank management department to assist in strategic development and risk management, enhancing operational support across six service centers[128]. Risk Management - The company has established a comprehensive risk management system to mitigate uncertainties affecting strategic and operational goals[134]. - Credit risk management is primarily associated with corporate loans, retail loans, and funding operations, with a structured organization involving various committees and departments[135]. - The company implements a client admission mechanism to determine target customers based on its market positioning and credit policies[136]. - The bank's operational risk management is overseen by the board, with the legal compliance department leading daily monitoring and control efforts[149]. Corporate Governance - The company emphasizes high standards of corporate governance as a key factor in enhancing its core competitiveness and has established a modern governance structure[183]. - The company has fully complied with all applicable provisions of the Corporate Governance Code during the reporting period[183]. - The board has proposed not to distribute a final dividend for the year ended December 31, 2023, pending approval at the 2023 annual general meeting[185].

Financial Performance - Jilin Jiutai Rural Commercial Bank reported a significant increase in net profit for the first half of 2023, reaching RMB 1.2 billion, representing a 15% year-on-year growth[3]. - Future guidance indicates a target net profit growth of 10-12% for the full year 2023[3]. - The bank's pre-tax profit for the first half of 2023 was RMB 95.8 million, down 87.6% from RMB 774.9 million in the same period last year[21]. - Basic earnings per share decreased by 78.6% to RMB 0.03 from RMB 0.14 year-on-year[21]. - Net profit for the first half of 2023 was RMB 128.1 million, down 80.4% from RMB 653.6 million in the first half of 2022[32]. - The total operating income for the first half of 2023 was RMB 2,517.5 million, a decrease of 20.1% compared to RMB 3,151.8 million in the same period of 2022[29]. Asset and Liability Management - The bank's total assets grew to RMB 100 billion, an increase of 10% compared to the previous year[3]. - 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[22]. - Total liabilities stood at RMB 248,488.0 million, showing no significant change from RMB 248,381.4 million at the end of 2022[22]. - The capital adequacy ratio stands at 12.5%, above the regulatory requirement, ensuring financial stability for future growth[3]. - The capital adequacy ratio was 10.98% as of June 30, 2023, down from 11.50% at the end of 2022[23]. Loan and Deposit Growth - Customer deposits increased by 12% to RMB 80 billion, reflecting strong customer confidence and market position[3]. - The total amount of loans and advances issued reached RMB 179,208.3 million as of June 30, 2023, representing a growth of 4.2% compared to December 31, 2022[86]. - Retail loans grew from RMB 26,984.8 million as of December 31, 2022, to RMB 27,514.0 million as of June 30, 2023, marking a 2.0% increase[88]. - Retail deposits totaled RMB 190,375.6 million as of June 30, 2023, an increase from RMB 173,073.1 million as of December 31, 2022, representing 81.7% and 76.1% of total deposits, respectively[147]. Non-Performing Loans and Asset Quality - The bank's non-performing loan ratio improved to 1.5%, down from 1.8% in the previous year, indicating better asset quality management[3]. - The non-performing loan ratio increased to 2.28% as of June 30, 2023, compared to 1.98% at the end of 2022, indicating a deterioration in asset quality[23]. - Non-performing loans (NPLs) reached RMB 4,080.9 million as of June 30, 2023, resulting in an NPL ratio of 2.28%, up from 1.98% as of December 31, 2022[107][108]. Digital Transformation and Innovation - The bank is investing in digital banking technologies, with a budget of RMB 200 million allocated for the development of new mobile banking features[3]. - The group has launched a digital banking initiative, including the introduction of a television bank and the establishment of unmanned banking locations[169]. - The company has received 6 software copyrights from the National Copyright Administration and a total of 33 software copyrights as of June 30, 2023, indicating a strong focus on intellectual property protection[181]. Risk Management - The company has established a comprehensive risk management system, focusing on credit risk, market risk, operational risk, liquidity risk, and compliance risk to achieve strategic and operational goals[185]. - In the first half of 2023, the bank implemented strict market risk limit management, continuously monitoring trading limits, stop-loss limits, and risk limits to provide early warnings for potential risks[192]. - The bank's operational risk management is overseen by the board of directors, with a focus on identifying, assessing, and controlling operational risks through various departments[198]. Branch Expansion and Market Presence - Jilin Jiutai plans to expand its branch network by 20% over the next year to enhance customer accessibility and service[3]. - The bank is exploring potential mergers and acquisitions to strengthen its market presence in the region[3]. Awards and Recognition - The bank received multiple awards in the first half of 2023, including recognition for its exemplary case in rural revitalization services[19]. Customer Service and Communication - The bank's customer service hotline is +86 (431) 96888, and its official website is www.jtnsh.com[15]. - The group had a total of 3,081,845 customers using telephone and SMS banking services as of June 30, 2023[171].

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]