Financial Performance - Operating revenue for 2023 was RMB 13,699,410 thousand, a decrease of 10.03% compared to RMB 15,225,843 thousand in 2022[24]. - Total profit for 2023 was RMB 1,739,636 thousand, down 38.03% from RMB 2,807,230 thousand in the previous year[24]. - Net profit attributable to shareholders for 2023 was RMB 1,850,117 thousand, representing a decline of 23.62% from RMB 2,422,304 thousand in 2022[24]. - Net cash flow from operating activities for 2023 was RMB 1,648,102 thousand, a significant improvement from a negative cash flow of RMB 31,350,017 thousand in 2022[24]. - Total assets at the end of 2023 reached RMB 630,709,429 thousand, an increase of 6.63% from RMB 591,513,618 thousand at the end of 2022[24]. - Total liabilities at the end of 2023 were RMB 576,394,573 thousand, up 6.96% from RMB 538,888,382 thousand in 2022[24]. - The total amount of loans and advances issued (excluding accrued interest) was RMB 360,608,206 thousand, an increase of 8.97% from RMB 330,921,097 thousand in 2022[24]. - Basic earnings per share for 2023 were RMB 0.15, a decrease of 6.25% from RMB 0.16 in 2022[24]. - The total equity attributable to shareholders at the end of 2023 was RMB 52,452,824 thousand, a 3.31% increase from RMB 50,772,566 thousand in 2022[24]. Risk Management - The company did not identify any significant risks that would adversely affect its future development strategy and operational goals during the reporting period[7]. - The report includes a detailed description of the main risks faced by the company and the measures taken to address them, found in the "Management Discussion and Analysis" section[7]. - The company is enhancing its digital risk control capabilities and optimizing corporate governance to improve operational management[15]. - The company emphasizes the importance of party leadership in financial work to ensure effective governance and operational efficiency[15]. - The company is committed to enhancing compliance management and risk control, aiming for stable and healthy business development[49]. Strategic Initiatives - The company is committed to high-quality development strategies, focusing on stability and progress, and aims to contribute to the modernization of Zhengzhou as a national central city[18]. - The company is actively participating in the "Rural Revitalization" initiative by establishing rural financial service points and promoting financial literacy in rural areas[18]. - The company is focusing on the integration of financial resources into key social development areas and addressing societal challenges through various initiatives[16]. - The company aims to strengthen the integration of talent, technology, capital, and industry chains to enhance its operational mechanisms[16]. - The company implemented a differentiated interest rate pricing mechanism to support local industries, reducing project fees and promoting interest-free renewals[16]. Subsidiaries and Investments - The company operates several subsidiaries, including Henan Jiuding Financial Leasing Co., Ltd., and various village banks[7]. - The bank's subsidiary, Jiuding Financial Leasing Company, reported total assets of RMB 35,010,000,000 and net profit of RMB 350,000,000 for the reporting period[161]. - The bank's investment in Zhongmou Zhengyin Village Bank increased its shareholding from 18.53% to 49.51% after acquiring shares from 78 shareholders[158]. - The company holds 49.51% of Zhongmu Zhengyin Village Bank and 49.58% of Yanling Zhengyin Village Bank, focusing on supporting agriculture and small enterprises[170]. Loan and Deposit Activities - A total of 16,579 microfinance loans were granted interest reductions amounting to RMB 23.34 million during the year[18]. - The bank's total deposits amounted to RMB 360.961 billion, growing by 6.89% year-on-year[41]. - Loans and advances totaled RMB 360.608 billion, reflecting an 8.97% increase from the previous year[41]. - Personal deposits reached RMB 168.643 billion, an increase of 19.55% year-on-year, while personal loans grew to RMB 84.147 billion, up 3.48%[196]. - The bank provided supply chain financial services with a loan balance of RMB 22.668 billion to core enterprises and their upstream and downstream customers by the end of the reporting period[191]. Financial Ratios and Metrics - Core Tier 1 capital adequacy ratio decreased to 8.90% in 2023 from 9.29% in 2022, a decline of 0.39 percentage points[25]. - Non-performing loan ratio slightly improved to 1.87% in 2023 from 1.88% in 2022, a decrease of 0.01 percentage points[25]. - Provision coverage ratio increased to 174.87% in 2023 from 165.73% in 2022, an increase of 9.14 percentage points[25]. - Weighted average return on equity decreased to 3.29% in 2023 from 3.53% in 2022, a decline of 0.24 percentage points[25]. - Total assets return decreased to 0.30% in 2023 from 0.45% in 2022, a decline of 0.15 percentage points[25]. Compliance and Governance - The company emphasizes strengthening risk management and compliance to ensure stable development of its subsidiaries[174]. - The capital management goals include meeting regulatory requirements and ensuring capital levels align with risk management[175]. - The company conducts regular stress tests to assess capital adequacy under adverse conditions[178]. - The capital adequacy ratio is calculated based on the regulations set by the former China Banking and Insurance Regulatory Commission[180]. Awards and Recognition - The company has been recognized with multiple awards in 2023, including the "Best Social Responsibility Bank" by the Financial Times[52].

Corporate Governance and Financial Reporting - The board of directors proposed no cash dividends, no bonus shares, and no capital reserve conversion for the 2023 fiscal year[2]. - The financial report for 2023 was audited by Ernst & Young with standard unqualified opinions issued[2]. - The report period covers from January 1, 2023, to December 31, 2023[7]. - The annual report was approved by the board of directors on March 28, 2024, with all 8 attending directors present[2]. - The company emphasizes the importance of risk awareness regarding forward-looking statements in the report[2]. - The company’s financial statements are prepared in accordance with Chinese and international accounting standards[2]. - The company did not experience any significant changes in accounting policies or estimates compared to the previous year[108]. Risk Management - The company did not identify any significant risks that would adversely affect its future development strategy and operational goals[2]. - The report includes a detailed description of the main risks faced by the company and the measures taken to address them[2]. - The bank has implemented a comprehensive risk management framework, focusing on credit, market, operational, liquidity, and information technology risks to ensure sustainable and stable operations[153]. - The bank's operational risk management framework has been enhanced, with a focus on identifying and assessing operational risks across various business activities[157]. - The bank's market risk management includes a clear structure for risk limits, stress testing, and regular reporting to ensure potential market losses are kept within acceptable levels[155]. - The bank's information technology risk management has been strengthened, with a focus on monitoring and assessing risks related to technology operations and ensuring business continuity[160]. - The bank's risk management culture emphasizes compliance and effective risk control measures to balance risk management with business development[153]. Financial Performance - Operating revenue for 2023 was RMB 13,667,290 thousand, a decrease of 9.50% compared to 2022[15]. - Total profit for 2023 was RMB 1,739,636 thousand, down 38.03% from the previous year[15]. - Net profit attributable to shareholders for 2023 was RMB 1,850,117 thousand, a decline of 23.62% year-over-year[15]. - Basic earnings per share for 2023 was RMB 0.15, a decrease of 6.25% compared to 2022[16]. - The bank's operating income was RMB 13.667 billion, a decrease of 9.50% year-on-year, while net profit was RMB 1.859 billion, down 28.48%[29]. - Non-interest income fell to RMB 1.93 billion, a decrease of 32.30% year-on-year[37]. - The bank's total operating expenses were RMB 11.93 billion, down 2.90% year-on-year[37]. Asset and Liability Management - Total assets at the end of 2023 reached RMB 630,709,429 thousand, an increase of 6.63% from the end of 2022[16]. - Total liabilities at the end of 2023 were RMB 576,394,573 thousand, up 6.96% from the previous year[16]. - The capital adequacy ratio for 2023 was 12.38%, down from 12.72% in 2022[16]. - The bank's total deposits reached RMB 360.961 billion, growing by 6.89% year-on-year[29]. - The total amount of loans and advances amounted to RMB 360.608 billion, reflecting an increase of 8.97% from the previous year[29]. - The bank's total shareholder equity amounted to RMB 54.31 billion, an increase of RMB 1.69 billion or 3.21% compared to the end of the previous year[87]. Loan and Credit Management - The non-performing loan ratio for 2023 was 1.87%, slightly improved from 1.88% in 2022[16]. - The bank's credit impairment losses were RMB 8.08 billion, a decrease of 6.75% from the previous year[37]. - The total amount of loans and advances reached RMB 360,608,206 thousand, with non-performing loans accounting for 1.87% of the total[92]. - The bank's mortgage loans amount to RMB 91.49 billion, with an NPL amount of RMB 3.08 billion, resulting in an NPL ratio of 3.37%[96]. - The bank's total corporate loans amount to RMB 253.46 billion, with an NPL amount of RMB 5.31 billion and an NPL ratio of 2.09%[94]. Strategic Initiatives and Development - The bank is focused on high-quality development and aims to contribute to the modernization of Zhengzhou as a national central city in 2024[11]. - The bank aims to enhance its service to small and micro enterprises by optimizing product offerings and implementing various supportive policies[30]. - The bank is committed to rural revitalization by developing rural inclusive financial services and launching a mobile banking version for rural areas[11]. - The bank will focus on five key areas: technology finance, green finance, inclusive finance, pension finance, and digital finance, as outlined in the central financial work meeting[166]. - The bank aims to enhance digital transformation and risk management capabilities in response to new regulatory requirements in 2024[166]. Shareholder and Capital Structure - Zhengzhou Bank's total issued shares increased from 8,265,537,599 to 9,092,091,358 due to a capital reserve conversion of 826,553,759 shares[172]. - The total number of ordinary shareholders reached 100,479, with 100,429 holding A-shares and 50 holding H-shares at the end of the reporting period[183]. - The bank's shareholding structure includes significant control by state-owned enterprises, reflecting a concentrated ownership model[192]. - The bank's major shareholder, Zhengzhou Finance Bureau, holds 1,418,761,196 shares, accounting for 20.06% of A shares and 15.60% of total issued common shares[190]. - The bank's major shareholders include Henan Guoyuan Trading Co., Ltd., which holds 329,997,429 A-shares, representing 3.63% of the total issued ordinary shares[198].

Financial Performance - Bank of Zhengzhou Co., Ltd. reported its audited consolidated annual results for the year ended December 31, 2023[1]. - Operating revenue for 2023 was RMB 13,699,410 thousand, a decrease of 10.03% compared to RMB 15,225,843 thousand in 2022[24]. - Total profit for 2023 was RMB 1,739,636 thousand, down 38.03% from RMB 2,807,230 thousand in 2022[24]. - Net profit attributable to shareholders for 2023 was RMB 1,850,117 thousand, a decline of 23.62% from RMB 2,422,304 thousand in 2022[24]. - Operating income for Q4 2023 was 3,234,752 thousand RMB, down from 3,561,061 thousand RMB in Q3 2023[32]. - The company achieved operating revenue of RMB 13.70 billion, a year-on-year decrease of 10.03%[54]. - Net profit for the period was RMB 1.86 billion, down 28.48% compared to the previous year[54]. - The net interest income was RMB 11.74 billion, representing a decline of 4.20% year-on-year[58]. - Non-interest income decreased significantly by 34.06%, amounting to RMB 1.96 billion[55]. - The company reported a pre-tax profit of RMB 1.74 billion, a decrease of 38.03% from the previous year[55]. Assets and Liabilities - Total assets at the end of 2023 reached RMB 630,709,429 thousand, an increase of 6.63% from RMB 591,513,618 thousand at the end of 2022[24]. - Total liabilities at the end of 2023 were RMB 576,394,573 thousand, up 6.96% from RMB 538,888,382 thousand at the end of 2022[24]. - The total amount of loans and advances issued (excluding accrued interest) was RMB 360,608,206 thousand, an increase of 8.97% from RMB 330,921,097 thousand in 2022[24]. - The total amount of deposits absorbed by Zhengzhou Bank was RMB 360.961 billion, growing by 6.89% year-on-year[41]. - The total amount of personal loans was RMB 84.15 billion, with an NPL ratio of 1.72%[131]. Risk Management - The company has not identified any major risks that could adversely affect its future development strategy and operational goals[7]. - The report includes a detailed description of the main risks faced by the company and the measures taken to address them[7]. - The company aims to strengthen its risk management systems and enhance digital risk control capabilities[15]. - The non-performing loan ratio slightly improved to 1.87% in 2023 from 1.88% in 2022, a decrease of 0.01 percentage points[25]. - The provision coverage ratio increased to 174.87% in 2023, up from 165.73% in 2022, an increase of 9.14 percentage points[25]. Corporate Governance and Compliance - The board of directors confirmed that the financial data is accurate and complete, with no significant omissions or misleading statements[7]. - The company plans to continue optimizing corporate governance and enhance operational management levels as a solid backing for sustainable development[15]. - The company is actively enhancing its compliance management and internal control systems to ensure stable operations[49]. - The company emphasizes strengthening risk management and compliance to ensure stable development of its subsidiaries[174]. Strategic Initiatives - The company is committed to high-quality development and aims to contribute to the modernization of Zhengzhou as a national central city[18]. - The company has initiated strategic planning adjustments to adapt to changing market conditions and maintain a focus on high-quality development[15]. - The company launched various innovative financial products, including "Technology Talent Loan" and "Intellectual Property Pledge Loan," to support the full lifecycle of technological innovation[16]. - The company is actively involved in rural revitalization efforts, including the establishment of rural financial service points and the launch of a mobile banking app tailored for rural areas[18]. - The company emphasizes the importance of serving the real economy and has implemented measures to alleviate financial burdens on enterprises[16]. Capital and Investments - The capital adequacy ratio decreased to 12.38% from 12.72% year-over-year, indicating a decline in capital strength[181]. - Core Tier 1 capital increased to CNY 40,526,517 thousand as of December 31, 2023, compared to CNY 40,383,351 thousand a year earlier, reflecting a slight growth of 0.35%[181]. - The company’s bond investments included RMB 65.74 billion in government bonds, representing 35.00% of total bond investments, up from 30.94% in the previous year[108]. - The company issued bonds totaling RMB 102.07 billion, which accounted for 17.71% of total liabilities, an increase from 17.63% in 2022[115]. Customer and Market Engagement - The bank's credit card business generated operating income of RMB 170 million, with transaction amounts reaching RMB 19.805 billion, reflecting a growth of 28.48% year-on-year[200]. - The bank's cumulative issuance of rural revitalization cards reached 171,800, with an increase of 83,000 cards compared to the end of the previous year[196]. - The bank actively promoted online supply chain services, providing financing services to over 1,000 core enterprise suppliers, with over 90% being small and micro enterprises[191]. - The bank facilitated 94 matching transactions, amounting to RMB 19.045 billion, enhancing core customer relationships[194].

Financial Performance - The operating income for Q3 2023 was RMB 3,559,444 thousand, a decrease of 14.45% compared to the same period last year[4]. - The net profit attributable to shareholders for Q3 2023 was RMB 704,012 thousand, down 19.30% year-on-year[4]. - The basic earnings per share for Q3 2023 was RMB 0.08, a decrease of 20.00% year-on-year[5]. - The group's net profit for the nine months ended September 30, 2023, was RMB 3,342,163 thousand, down from RMB 4,360,420 thousand in the same period of 2022, reflecting a decline of approximately 23.3%[34]. - The total profit for the group was RMB 3,345,512 thousand, down from RMB 4,355,769 thousand in the previous year, representing a decline of 23.2%[35]. - The net profit for the group for the nine months ended September 30, 2023, was RMB 2,848,811 thousand, a decrease of 19.6% compared to RMB 3,543,822 thousand for the same period in 2022[35]. - The net profit attributable to shareholders of the bank was RMB 2,750,645 thousand, with a decrease from RMB 3,403,445 thousand in the same period last year[35]. - The total comprehensive income for the group for the nine months was RMB 2,976,027 thousand, compared to RMB 3,750,293 thousand in the previous year, reflecting a decrease of 20.6%[37]. Assets and Liabilities - Total assets as of September 30, 2023, reached RMB 622,051,831 thousand, an increase of 5.16% from the end of 2022[7]. - The total liabilities amounted to RMB 566,450,568 thousand, reflecting a growth of 5.11% compared to the end of 2022[7]. - The group's total equity reached RMB 55,601,263 thousand as of September 30, 2023, up from RMB 52,625,236 thousand as of December 31, 2022, marking an increase of around 5.6%[33]. - The total deposits as of September 30, 2023, were RMB 363,291,631 thousand, an increase from RMB 341,797,766 thousand at the end of 2022, representing a growth of approximately 6.5%[32]. Cash Flow - The net cash flow from operating activities was RMB (552,685) thousand, a decline of 88.02% compared to the previous year[4]. - The net cash inflow from operating activities was RMB 55,484,526 thousand, up from RMB 40,202,723 thousand, indicating a growth of about 37.9%[44]. - The net cash outflow from investment activities was RMB 4,001,424 thousand, a significant decrease from a net inflow of RMB 20,897,096 thousand in the previous period[46]. - The net cash flow from financing activities for the group was RMB 6,654,275, compared to a net outflow of RMB 4,008,102 in the same period last year, indicating a significant improvement[47]. - The net increase in cash and cash equivalents was RMB 1,636,017, compared to a decrease of RMB 5,210,211 in the same period last year, showing a positive turnaround[48]. Capital and Ratios - The core tier one capital adequacy ratio increased to 9.68% as of September 30, 2023, compared to 9.29% at the end of 2022[12]. - The bank's total capital adequacy ratio rose to 13.05% as of September 30, 2023, compared to 12.72% at the end of 2022[14]. - The leverage ratio was reported at 7.75% as of September 30, 2023, slightly up from 7.69% at the end of 2022[15]. - The liquidity coverage ratio was reported at 225.04%, significantly above the regulatory requirement of 100%[16]. Investment and Loans - The bank's investment income increased by 33.92% year-on-year to CNY 903,616 thousand for the first nine months of 2023[18]. - The total loans and advances increased to RMB 353,657,644 thousand, a rise of 6.87% year-on-year[7]. - The bank's borrowing from the central bank increased by 42.51% to CNY 28,652,282 thousand compared to the end of 2022[19]. - The bank's policy-oriented sci-tech financial loans increased by 23% year-to-date, showcasing the growth in its sci-tech financial services[22]. Shareholder Information - The total number of ordinary shareholders reached 99,773, with A-share shareholders accounting for 99,723[23]. - The top 10 shareholders hold a combined 56.4% of the total shares, with the largest shareholder, Hong Kong Central Clearing Limited, holding 22.22%[24]. Strategic Initiatives - The bank has developed over 10 tailored financial products for sci-tech enterprises, enhancing its service offerings[22]. - The bank's retail business transformation is focused on enhancing customer experience and expanding consumer loan offerings[22]. - The bank approved project funding of RMB 8.6 billion and has disbursed RMB 4.2 billion to support the "guarantee delivery" initiative[20]. - The bank has supported 44 major projects with a total investment of RMB 8.2 billion during the reporting period[20].

Financial Performance - For the third quarter of 2023, the operating income was RMB 3,561,061,000, a decrease of 16.38% compared to the same period last year[3] - The net profit attributable to shareholders was RMB 704,012,000, down 19.30% year-on-year[3] - The basic earnings per share for the third quarter was RMB 0.08, a decrease of 20.00% compared to the same period last year[3] - Net interest income for the nine months ended September 30, 2023, was RMB 9,017,585, a decrease of 4.6% compared to RMB 9,455,463 for the same period in 2022[26] - Total operating income for the nine months ended September 30, 2023, was RMB 10,464,658, down 11.5% from RMB 11,822,857 in the previous year[26] - Net profit attributable to shareholders for the nine months ended September 30, 2023, was RMB 2,750,645, a decline of 19.2% from RMB 3,403,445 in the same period of 2022[28] - The company reported a net profit of RMB 734,328 for the three months ended September 30, 2023, down 19.4% from RMB 911,606 for the same period in 2022[31] - The total comprehensive income for the three months ended September 30, 2023, was RMB 687,690, a decrease of 31.9% compared to RMB 1,010,779 in the previous year[31] - The company’s net profit for the nine months ended September 30, 2023, was RMB 2,848,811, a decrease of 19.6% from RMB 3,543,822 in the same period of 2022[28] - The company reported a pre-tax profit of RMB 3,345,512 thousand for the nine months ended September 30, 2023, down from RMB 4,355,769 thousand in the same period of 2022, indicating a decline of about 23.2%[35] Cash Flow and Liquidity - The net cash flow from operating activities was RMB (552,685,000), a significant decline of 88.02% compared to the previous year[3] - The net cash flow from operating activities for the nine months ended September 30, 2023, was a negative RMB 1,019,928 thousand, compared to a negative RMB 22,743,754 thousand for the same period in 2022, indicating a significant improvement[36] - The net cash flow from investment activities for the nine months ended September 30, 2023, was negative RMB 4,001,424 thousand, down from a positive RMB 20,897,096 thousand in 2022, reflecting a substantial decrease in investment returns[38] - The net cash flow from financing activities for the nine months ended September 30, 2023, was RMB 6,654,275 thousand, compared to a negative RMB 4,008,102 thousand in 2022, showing a positive shift in financing operations[38] - The net increase in cash and cash equivalents as of September 30, 2023, was RMB 1,632,923 thousand, compared to a decrease of RMB 5,854,760 thousand in the same period of 2022, indicating a recovery in liquidity[38] Assets and Liabilities - Total assets as of September 30, 2023, reached RMB 622,051,831,000, reflecting a growth of 5.16% from the end of 2022[5] - The total liabilities were RMB 566,450,568,000, which is a 5.11% increase from December 31, 2022[5] - The company’s total liabilities as of September 30, 2023, were RMB 566,450,568, an increase from RMB 538,888,382 at the end of 2022[32] - Total liabilities and equity increased to RMB 622,051,831 thousand as of September 30, 2023, from RMB 591,513,618 thousand as of December 31, 2022, marking an increase of approximately 5.18%[34] Capital Ratios - As of September 30, 2023, the Core Tier 1 Capital Ratio is 9.68%, up from 9.29% at the end of 2022[8] - The Tier 1 Capital Ratio stands at 11.99%, an increase from 11.63% at the end of 2022[10] - The Capital Adequacy Ratio is 13.05%, compared to 12.72% at the end of 2022[10] Shareholder Information - The total number of ordinary shareholders reached 99,773, with 99,723 being A-share shareholders[19] - The largest shareholder, Hong Kong Central Clearing (Agent), holds 2,020,253,053 H shares, accounting for 22.22% of total shares[20] - Zhengzhou Finance Bureau holds 657,246,311 A shares, representing 7.23% of total shares, with 93,278,900 shares pledged[20] - Zhengzhou Investment Holding Co., Ltd. holds 608,105,180 A shares, with 207,515,000 shares under pledge[20] Investment and Financing Activities - The company approved project funding of RMB 8.6 billion and has disbursed RMB 4.2 billion to support the "guarantee housing" initiative[18] - The company visited and researched 1,849 enterprises, resulting in a total of RMB 53.9 billion in new or renewed financing[18] - The balance of green credit increased by 46% compared to the beginning of the year[18] - The company customized over 10 financial products for technology innovation, with policy-based innovation financial loans increasing by 23% year-to-date[18] Other Financial Metrics - The weighted average return on equity (annualized) was 6.50%, down 1.60 percentage points year-on-year[3] - The Cost-to-Income Ratio improved to 21.31% from 22.98% in the previous year[8] - The total net profit from investments increased by 78.82% year-on-year, reaching RMB 338,807 thousand[15] - The total amount of loans classified as "normal" increased to RMB 339,352,427 thousand, representing 95.95% of total loans[14] - The Non-Performing Loan Ratio is 1.88%, unchanged from the end of 2022[9] - The liquidity coverage ratio is 225.04%, down from 300.13% at the end of 2022[8] - The leverage ratio is reported at 7.75%, slightly up from 7.69% at the end of 2022[11] - The total assets yield (annualized) is 0.63%, an increase from 0.45% in the previous year[8] - Interest income from financial investments decreased to RMB 4,054,440 thousand for the nine months ended September 30, 2023, compared to RMB 4,657,724 thousand in 2022, reflecting a decline of approximately 12.93%[35] Reporting and Disclosure - The company has not disclosed any other significant matters outside of this report and other announcements[25] - The quarterly report is available on the Hong Kong Stock Exchange and the company's website[25]

Financial Performance - Operating income for the first half of 2023 was RMB 6,903,597 thousand, a decrease of 8.74% compared to RMB 7,564,388 thousand in the same period of 2022[16]. - Total profit for the first half of 2023 was RMB 2,526,990 thousand, down 22.14% from RMB 3,245,690 thousand in the previous year[16]. - Net profit attributable to shareholders for the first half of 2023 was RMB 2,046,633 thousand, a decline of 19.14% compared to RMB 2,531,066 thousand in the same period of 2022[16]. - Total operating income decreased to RMB 6.90 billion, a decline of 8.74% from the previous year[37]. - The company achieved a net profit of RMB 2.11 billion, a decrease of 19.67% compared to the previous year[36]. - Net interest income was RMB 5.93 billion, down 5.12% year-on-year, accounting for 85.84% of total operating income[38]. - Non-interest income fell to RMB 977.81 million, a significant drop of 25.85% year-on-year[37]. - The average yield on interest-earning assets decreased to 4.46%, while the average cost of interest-bearing liabilities was 2.40%[39]. - The net interest margin (annualized) was recorded at 2.06%[39]. - The weighted average return on equity (annualized) decreased to 9.77%, down by 2.50% from 12.27% in the previous year[17]. Assets and Liabilities - Total assets as of June 30, 2023, reached RMB 616,859,397 thousand, an increase of 4.28% from RMB 591,513,618 thousand at the end of 2022[16]. - Total liabilities as of June 30, 2023, were RMB 561,945,824 thousand, up 4.28% from RMB 538,888,382 thousand at the end of 2022[16]. - Total loans and advances (excluding accrued interest) amounted to RMB 351,144,063 thousand, reflecting a growth of 6.11% from RMB 330,921,097 thousand in the previous year[16]. - Total deposits (excluding accrued interest) reached RMB 353,415,379 thousand, an increase of 4.65% compared to RMB 337,708,162 thousand in the previous year[16]. - The total amount of debt investments reached RMB 189.74 billion, an increase from RMB 184.07 billion at the end of 2022, representing a growth of 4.54%[78]. - The bank's total liabilities amounted to RMB 561.95 billion, an increase of RMB 23.06 billion or 4.28% compared to the end of 2022[83]. Risk Management - The company did not identify any significant risks that could adversely affect its future development strategy and operational goals during the reporting period[6]. - The report includes a detailed description of the main risks faced by the company and the measures taken to address them[6]. - The company emphasizes the importance of risk awareness regarding forward-looking statements made in the report[6]. - The non-performing loan ratio stands at 1.87%, slightly improved from 1.88% at the end of 2022[17]. - The provision coverage ratio has increased to 167.45%, up from 165.73% at the end of 2022[17]. - The bank has strengthened unified credit management and risk preference policies to enhance credit risk management[168]. - The bank has implemented a comprehensive operational risk management framework to minimize operational losses[170]. Capital and Shareholder Information - The total number of ordinary shares increased from 8,265,537,599 to 9,092,091,358 due to a capital reserve conversion of 826,553,759 shares[183]. - The total number of shares held by the top 10 shareholders reflects their interests and positions as of the reporting date[199]. - The total number of ordinary shareholders at the end of the reporting period was 99,731, with 99,677 being A-share shareholders and 54 being H-share shareholders[190]. - The largest shareholder, Zhengzhou Finance Bureau, has a direct and indirect holding of 1,418,761,196 shares, which is 20.06% of the A shares[200]. - The top 10 ordinary shareholders collectively held 4,000,000,000 shares, with Hong Kong Central Clearing Limited holding 2,020,248,927 shares, representing 22.22% of the total[191]. Sustainability and Corporate Governance - The report is printed on environmentally friendly paper, reflecting the company's commitment to sustainability[4]. - The company emphasizes a customer-centric culture and aims to enhance customer experience through its "Heart Finance" philosophy[38]. - The company has implemented a talent development strategy, including a management trainee program and a comprehensive training plan[38]. - The company was awarded several honors, including recognition as an advanced unit in preventing and handling illegal fundraising[34]. - The bank has not faced any administrative penalties related to environmental issues during the reporting period[178]. Economic Context - In the first half of 2023, China's GDP reached RMB 59,303.4 billion, reflecting a year-on-year growth of 5.5%[22]. - The retail sales of consumer goods in China increased by 8.2% year-on-year in the first half of 2023, indicating a recovery in consumption[22]. - The total social financing scale increased by RMB 21.55 trillion, which is RMB 475.4 billion more than the previous year[25]. - The balance of loans to the manufacturing sector grew by 40.3% year-on-year, significantly higher than the average loan growth rate[25]. Digital Transformation and Innovation - The bank has focused on digital financial innovation to enhance service for new citizens and rural populations[32]. - The bank aims to enhance business and technology integration, accelerating digital transformation and improving data service capabilities[180]. - The bank's mobile banking platform has signed up 3.2 million customers, a 16% increase from the previous year, with transaction amounts reaching RMB 365.2 billion[164]. - The bank has implemented over 20 optimization features for corporate electronic channels during the reporting period, enhancing product service capabilities[165]. Community Engagement and Support - The company’s inclusive small and micro enterprise loans reached a balance of RMB 46.69 billion, an increase of 5.41% compared to the beginning of the year, serving 67,330 clients[159]. - The company’s community finance initiatives engaged over 1.36 million participants, generating an increase of RMB 278 million in personal financial assets[160]. - The bank has established a rural financial department to support high-quality development of rural financial services[179].

Financial Performance - The total operating income for the first half of 2023 was RMB 6,918,370, a decrease of 8.52% compared to RMB 7,562,872 in the same period of 2022[13]. - The total profit for the first half of 2023 was RMB 2,526,990, reflecting a decline of 22.14% from RMB 3,245,690 in the first half of 2022[13]. - The net profit attributable to shareholders for the first half of 2023 was RMB 2,046,633, down 19.14% from RMB 2,531,066 in the same period last year[13]. - The basic earnings per share for the first half of 2023 was RMB 0.23, down 17.86% from RMB 0.28 in the same period of 2022[13]. - The bank achieved a net profit of RMB 2.11 billion for the first half of 2023, a decrease of 19.67% year-on-year[34]. - Net interest income was RMB 5.93 billion, down 5.12% from the previous year, accounting for 85.65% of total operating income[36]. - Total operating income decreased to RMB 6.92 billion, a decline of 8.52% compared to the same period last year[34]. - Non-interest income fell to RMB 992.59 million, representing a significant drop of 24.64% year-on-year[35]. Assets and Liabilities - The total assets as of June 30, 2023, reached RMB 616,859,397, representing a 4.28% increase from RMB 591,513,618 at the end of 2022[13]. - The total liabilities as of June 30, 2023, amounted to RMB 561,945,824, which is a 4.28% increase from RMB 538,888,382 at the end of 2022[14]. - The total loans and advances (excluding accrued interest) reached RMB 351,144,063, an increase of 6.11% from RMB 330,921,097 at the end of 2022[13]. - The total equity attributable to shareholders as of June 30, 2023, was RMB 52,993,053, an increase of 4.37% from RMB 50,772,566 at the end of 2022[14]. - The total risk-weighted assets as of June 30, 2023, were RMB 447,781,750, which is a 2.99% increase from RMB 434,769,547 at the end of 2022[14]. Capital and Ratios - The core Tier 1 capital ratio as of June 30, 2023, is 9.38%, an increase of 0.09% compared to 9.29% at the end of 2022[15]. - The total capital adequacy ratio as of June 30, 2023, is 12.77%, compared to 12.72% at the end of 2022[126]. - The liquidity coverage ratio decreased significantly to 205.17% from 300.13% at the end of 2022, a drop of 94.96%[15]. - The net stable funding ratio is 115.36%, also surpassing the 100% requirement[155]. Risk Management - No significant risks were identified that could adversely affect the bank's future development strategy and operational goals[2]. - The bank's management discussed the main risks faced in operations and the measures taken to mitigate them in the report[2]. - The bank has implemented a comprehensive risk management framework to enhance credit risk management across the entire lending process[151]. - The bank has strengthened its market risk management capabilities, including sensitivity analysis and stress testing for financial market operations[152]. Governance and Compliance - The report includes a detailed description of the bank's governance and management structure[3]. - The bank's board of directors and supervisory board confirmed the authenticity and completeness of the financial report[2]. - The bank is committed to compliance and risk management to ensure stable operations[30]. - The bank has implemented measures to strengthen anti-money laundering efforts, including optimizing risk monitoring systems[161]. Shareholder Structure - The total number of ordinary shares issued by the bank increased to 9,092,091,358 shares, following a capital reserve conversion of 826,553,759 shares[167]. - The total number of ordinary shareholders at the end of the reporting period was 99,731, with 99,677 A-share shareholders and 54 H-share shareholders[174]. - The ownership structure shows a mix of direct and indirect holdings, with several shareholders having control over multiple entities[181]. - The report indicates no repurchase agreements were made by the top 10 shareholders during the reporting period[177]. Future Outlook - The bank's future plans and forecasts are not considered substantive commitments to investors, highlighting the need for risk awareness[2]. - The bank is actively pursuing new strategies for market expansion and product development in the second half of 2023[200]. - The bank aims to enhance digital transformation and improve integrated data service capabilities to support business transformation[163].

Financial Performance - Bank of Zhengzhou reported an unaudited consolidated interim performance for the six months ended June 30, 2023[1]. - Operating revenue for the first half of 2023 was RMB 6,903,597, a decrease of 8.74% compared to RMB 7,564,388 in the same period of 2022[14]. - Net profit attributable to shareholders was RMB 2,046,633, down 19.14% from RMB 2,531,066 in the previous year[14]. - The bank achieved a net profit of RMB 2.114 billion for the reporting period, a decrease of 19.67% compared to the previous year[34]. - Total operating income decreased to RMB 6.904 billion, reflecting a decline of 8.74% from the previous year[35]. - Non-interest income fell to RMB 978 million, a significant drop of 25.85% year-on-year[35]. - Net interest income was RMB 5.926 billion, down 5.12% year-on-year, accounting for 85.84% of total operating income[36]. - The bank's operating profit decreased by 22.80% to RMB 2.503 billion compared to the same period last year[35]. Assets and Liabilities - Total assets increased by 4.28% to RMB 616,859,397 from RMB 591,513,618 at the end of 2022[14]. - The bank's total liabilities amounted to RMB 561.95 billion, an increase of RMB 23.06 billion or 4.28% compared to the end of the previous year[81]. - Customer deposits totaled RMB 353.41 billion, reflecting an increase of RMB 15.71 billion or 4.65% from the previous year-end[83]. - The total amount of loans and advances increased by 6.11% to RMB 351,144,063 from RMB 330,921,097 at the end of 2022[14]. - The bank's total equity reached RMB 54.91 billion, up RMB 2.29 billion or 4.35% from the end of the previous year[86]. Capital and Dividends - The bank plans not to distribute cash dividends or bonus shares for the first half of 2023[4]. - The bank's capital reserve will be converted into shares at a ratio of 1 share for every 10 shares held, as part of the 2022 annual dividend distribution plan[6]. - The total number of issued shares increased from 8,265,537,599 to 9,092,091,358 shares due to a capital reserve conversion of 826,553,759 shares[181]. - The company implemented a capital reserve conversion, increasing the number of ordinary shares from 8,265,537,599 to 9,092,091,358, resulting in a 10% increase in shares[182]. Risk Management - The report indicates no significant risks affecting the bank's future development strategy and operational goals[4]. - The bank's non-performing loan ratio improved slightly to 1.87% from 1.88% at the end of 2022[15]. - The bank's liquidity coverage ratio decreased significantly to 205.17% from 300.13% at the end of 2022[16]. - The bank's risk management framework has been continuously optimized to enhance risk management capabilities and effectiveness[165]. - The bank has implemented online monitoring for information technology risk management, enhancing the identification of potential risks[172]. Economic Context - In the first half of 2023, China's GDP reached RMB 59.3 trillion, growing by 5.5% year-on-year, with the primary, secondary, and tertiary industries growing by 3.7%, 4.3%, and 6.4% respectively[20]. - The total retail sales of consumer goods in China increased by 8.2% year-on-year in the first half of 2023, indicating a recovery in consumer spending[20]. - The total amount of social financing in the first half of 2023 was RMB 21.55 trillion, an increase of RMB 475.4 billion compared to the previous year[23]. Customer and Market Engagement - The bank has served over 190,000 rural residents and individual businesses, adding more than 30,000 new high-quality customers during the reporting period[26]. - The bank's focus on high-quality development has led to enhanced customer management, resulting in 10,830 new corporate accounts opened during the reporting period[139]. - The bank's mobile banking customer base reached 3.2 million, a growth of 16% compared to the end of the previous year[162]. - The bank's electronic channels have opened 70,000 accounts, with transaction amounts reaching RMB 7.3 trillion during the reporting period[151]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 99,731, with 99,677 being A-share shareholders and 54 being H-share shareholders[188]. - The largest shareholder, Hong Kong Central Clearing (Agent) Co., Ltd., holds 22.22% of H shares, totaling 2,020,248,927 shares, with an increase of 183,660,203 shares during the reporting period[189]. - Zhengzhou Investment Holding Co., Ltd. holds 6.69% of A shares, totaling 608,105,180 shares, with an increase of 55,282,289 shares during the reporting period[189]. - The report indicates that there are no dilutive potential ordinary shares affecting the earnings calculations[186]. Strategic Initiatives - The bank is focused on digital financial innovation, enhancing the customer experience in online and offline consumption loans[26]. - Zhengzhou Bank aims to build a platform-based financial ecosystem by integrating trade, information, capital, and logistics flows[28]. - The bank's strategy includes supporting stable and healthy development in the real estate sector and promoting policy-oriented financial innovation[178]. - The bank has implemented measures to strengthen anti-money laundering management, including the revision of 2 internal control systems and the enhancement of risk monitoring capabilities[175].

Financial Performance - Operating income for Q1 2023 was RMB 3,318,262 thousand, a decrease of 3.01% compared to RMB 3,421,374 thousand in Q1 2022[4] - Net profit attributable to shareholders for Q1 2023 was RMB 1,188,068 thousand, an increase of 1.86% from RMB 1,166,426 thousand in Q1 2022[4] - The net profit after deducting non-recurring gains and losses was RMB 1,183,732 thousand, an increase of 1.42% from RMB 1,167,133 thousand in Q1 2022[4] - The net profit for the group for the three months ended March 31, 2023, was RMB 1,239,919 thousand, compared to RMB 1,224,125 thousand for the same period in 2022, reflecting a year-on-year increase of about 1.29%[33] - The total operating income for the group for the three months ended March 31, 2023, was RMB 3,318,262 thousand, down from RMB 3,421,374 thousand in the same period last year, indicating a decrease of about 3.02%[32] - The group’s total comprehensive income for the three months ended March 31, 2023, was RMB 1,241,778 thousand, compared to RMB 1,291,449 thousand for the same period in 2022, reflecting a decrease of approximately 3.85%[34] Cash Flow - Net cash flow from operating activities was RMB (685,074) thousand, a significant decrease of 96.48% compared to RMB (19,460,535) thousand in Q1 2022[4] - The net increase in cash flow from operating activities for the group was RMB 32,233,294 thousand, compared to RMB 14,993,150 thousand in the same period last year, representing a year-over-year increase of approximately 115.0%[35] - The net cash flow from investment activities was negative RMB 3,084,685 thousand, a decrease from a positive cash flow of RMB 9,445,113 thousand in the same period last year[37] - The cash inflow from financing activities was RMB 41,949,499 thousand, compared to RMB 30,163,256 thousand in the previous year, reflecting an increase of approximately 39.2%[38] - The net cash flow from financing activities was RMB 3,289,500 thousand, a significant increase from RMB 557,256 thousand in the same period last year[38] - The total cash outflow from operating activities was RMB 32,918,368 thousand, compared to RMB 34,453,685 thousand in the same period last year, showing a decrease of approximately 4.5%[36] Assets and Liabilities - Total loans and advances amounted to RMB 342,374,050 thousand, reflecting a growth of 3.46% from RMB 330,921,097 thousand at the end of 2022[6] - Total deposits reached RMB 356,745,019 thousand, an increase of 4.37% from RMB 341,797,766 thousand at the end of 2022[6] - The bank's total equity attributable to shareholders was RMB 51,962,493 thousand, a growth of 2.34% from RMB 50,772,566 thousand at the end of 2022[7] - The total liabilities of Zhengzhou Bank reached RMB 552,511,416 thousand, compared to RMB 538,888,382 thousand at the end of 2022[30] - The total assets of Zhengzhou Bank amounted to RMB 606,378,430 thousand, an increase from RMB 591,513,618 thousand in December 2022[29] Capital and Ratios - Core Tier 1 capital adequacy ratio was 9.42% as of March 31, 2023, up from 9.29% at the end of 2022[11] - The weighted average return on equity (ROE) was 11.49% for Q1 2023, a slight decrease of 0.01 percentage points from 11.50% in Q1 2022[4] - Non-performing loan ratio remains stable at 1.88% as of March 31, 2023, compared to 1.88% at the end of 2022[13] - Provision coverage ratio is at 159.23%, above the regulatory requirement of 150%[13] - Total assets return on equity (annualized) improved to 0.83% from 0.45% at the end of 2022[13] - The bank's liquidity coverage ratio stood at 285.83%, down from 300.13% at the end of 2022[11] Income Sources - Net income from fees and commissions decreased by 30.56% year-on-year to RMB 161,462 thousand due to regulatory fee reduction policies[18] - Investment income increased by 55.58% year-on-year to RMB 205,213 thousand, driven by trading bond investments[18] - The group’s fee and commission income for the three months ended March 31, 2023, was RMB 192,919 thousand, down from RMB 268,611 thousand in the same period last year, a decline of about 28.14%[32] Shareholder Information - The number of ordinary shareholders reached 101,100, with a significant majority being A-share holders[22] - The number of shares held by the top 10 shareholders includes 1,836,589,934 H shares held by Hong Kong Central Clearing Limited, representing 22.22% of total shares[25] Strategic Focus - The bank's strategic focus includes enhancing technology integration and launching new financial products to support innovation[20]

Financial Performance - For Q1 2023, the bank reported operating income of RMB 3,294,537 thousand, a decrease of 3.67% compared to RMB 3,419,896 thousand in Q1 2022[3] - The net profit attributable to shareholders for Q1 2023 was RMB 1,188,068 thousand, an increase of 1.86% from RMB 1,166,426 thousand in the same period last year[3] - The net interest income for Q1 2023 was RMB 2,945,535 thousand, a decrease of 4.4% compared to RMB 3,079,118 thousand in Q1 2022[26] - The total comprehensive income for Q1 2023 was RMB 1,241,778 thousand, compared to RMB 1,291,449 thousand in Q1 2022, representing a decrease of 3.8%[27] - The basic and diluted earnings per share for Q1 2023 remained at RMB 0.14, unchanged from Q1 2022[27] - The company reported a decrease in net fee and commission income to RMB 161,462 thousand in Q1 2023 from RMB 232,520 thousand in Q1 2022, a decline of 30.6%[26] - The total operating expenses for Q1 2023 were RMB 669,454 thousand, an increase from RMB 571,705 thousand in Q1 2022, reflecting a rise of 17.1%[26] - The company’s pre-tax profit for Q1 2023 was RMB 1,518,388 thousand, slightly up from RMB 1,504,566 thousand in Q1 2022, showing a growth of 0.9%[26] Asset and Liability Management - Total assets as of March 31, 2023, reached RMB 606,378,430 thousand, reflecting a growth of 2.51% from RMB 591,513,618 thousand at the end of 2022[5] - The total loans and advances amounted to RMB 342,374,050 thousand, an increase of 3.46% from RMB 330,921,097 thousand at the end of 2022[5] - The total liabilities rose to RMB 552,511,416 thousand from RMB 538,888,382 thousand, reflecting an increase of about 2.3%[28] - The total equity attributable to shareholders increased to RMB 51,962,493 thousand from RMB 50,772,566 thousand, marking a growth of approximately 2.3%[29] Capital Adequacy and Ratios - The bank's core tier 1 capital adequacy ratio was 9.42%, exceeding the regulatory requirement of 7.5%[8] - Core Tier 1 capital increased to RMB 41,886,205 thousand as of March 31, 2023, up from RMB 40,383,351 thousand at the end of 2022, reflecting a Core Tier 1 capital adequacy ratio of 9.42%[10] - The leverage ratio decreased to 7.55% as of March 31, 2023, compared to 7.69% at the end of 2022, indicating a tightening of capital relative to total assets[11] - The liquidity coverage ratio stood at 285.83% as of March 31, 2023, indicating a strong liquidity position[13] Loan Quality and Performance - The non-performing loan ratio remained stable at 1.88%, consistent with the previous quarter[8] - The total amount of loans classified as "normal" was RMB 328,940,790 thousand, accounting for 96.08% of total loans, showing a stable credit quality[14] - The non-performing loan ratio was calculated based on the total amount of non-performing loans, which showed a stable performance with a slight increase in the coverage ratio[12] Cash Flow Analysis - The net cash flow from operating activities was RMB (685,074) thousand, a significant decrease of 96.48% compared to RMB (19,460,535) thousand in Q1 2022[3] - The net cash flow from operating activities for the three months ended March 31, 2023, was RMB (685,074) thousand, compared to RMB (19,460,535) thousand for the same period in 2022, showing a significant improvement[34] - Cash flow from investing activities resulted in a net outflow of RMB (3,084,685) thousand, down from a net inflow of RMB 9,445,113 thousand in the previous year[34] - The net cash flow from financing activities was RMB 3,289,500 thousand, compared to RMB 557,256 thousand in the same period last year, indicating a substantial increase[34] Strategic Initiatives - The bank launched a new "R&D Loan" product to support enterprises' research and operational needs, enhancing its role in the innovation finance sector[17] - The bank issued RMB 5 billion in financial bonds in the first quarter of 2023, with a subscription multiple of 2.3 times, indicating strong market demand[17] - The bank's digital transformation initiatives included the launch of a wealth management platform and a new generation bill system, aimed at enhancing operational efficiency[17] Investment and Growth - Investments in associates increased by 135.93% to RMB 646,171 thousand, reflecting a strategic focus on expanding partnerships[16]