Company Overview - The company's H-shares are listed on the Hong Kong Stock Exchange with a stock code of 6199.HK[13] - The company's registered address is located at No. 9 Yongchang Road, Guanshanhu District, Guiyang City, Guizhou Province, China[13] - The company's financial license number is B1383H252010001[13] - The company's unified social credit code is 915200000550280000[13] - The company's H-shares were first traded on the Hong Kong Stock Exchange on December 30, 2019[7] - The company's H-share registrar and transfer office is Hong Kong Central Securities Registration Co., Ltd[14] - The company's overseas auditor is BDO Limited, Hong Kong[14] - The company's domestic auditor is Lixin Certified Public Accountants (Special General Partnership)[14] - The company's legal representative is Mr. Yang Mingshang[13] - The company's board secretary and company secretary is Mr. Zhou Guichang[12] Financial Performance - Net interest income decreased by 13.77% to RMB 4,342.58 million in H1 2024 compared to H1 2023[16] - Total operating income declined by 7.20% to RMB 5,967.27 million in H1 2024 compared to H1 2023[16] - Net profit decreased by 3.80% to RMB 2,122.50 million in H1 2024 compared to H1 2023[16] - Total assets increased by 2.02% to RMB 588,440.54 million as of June 30, 2024 compared to December 31, 2023[17] - Total loans and advances increased by 5.03% to RMB 348,653.94 million as of June 30, 2024 compared to December 31, 2023[17] - Non-performing loan ratio improved slightly to 1.65% as of June 30, 2024, down from 1.68% at the end of 2023[17] - Provision coverage ratio increased to 290.57% as of June 30, 2024, up from 287.71% at the end of 2023[17] - Core tier 1 capital adequacy ratio stood at 11.21% as of June 30, 2024, slightly down from 11.25% at the end of 2023[17] - Total assets reached 588.441 billion yuan, an increase of 11.655 billion yuan (2.02%) compared to the beginning of the year[22] - Total loans amounted to 348.654 billion yuan, an increase of 16.705 billion yuan (5.03%) compared to the beginning of the year[22] - Operating income was 5.967 billion yuan, a decrease of 463 million yuan (7.20%) year-on-year[22] - Net profit was 2.123 billion yuan, a decrease of 84 million yuan (3.80%) year-on-year[22] - Non-performing loan ratio was 1.65%, a decrease of 0.03 percentage points compared to the beginning of the year[22] - Green credit balance reached 56.85 billion yuan, an increase of 4.656 billion yuan (9.02%) compared to the beginning of the year[24] - Technology finance loan balance was 6.884 billion yuan, an increase of 1.908 billion yuan (38.34%) compared to the beginning of the year[23] - Pension finance loan balance was 827 million yuan, an increase of 534 million yuan (182.25%) compared to the beginning of the year[26] - Provision coverage ratio was 290.57%, an increase of 2.86 percentage points compared to the beginning of the year[22] - The company provided 17.717 billion yuan in loans to 23,600 small and micro customers under inclusive finance[25] - The company's total financing balance for the real economy reached 216.621 billion yuan, an increase of 12.017 billion yuan or 5.87% compared to the beginning of the year[28] - The company's supply chain finance customers reached 980, with a trade financing balance of 12.071 billion yuan, and 85.1% of the 7.687 billion yuan trade financing was allocated to small and medium-sized enterprises, meeting the financing needs of 620 SMEs[29] - The company's cash management system served 2,030 customers, an increase of 138 or 7.29% compared to the beginning of the year, with a year-on-year growth rate of 18.51%. The system processed 29,381 financial transactions, a year-on-year increase of 29.10%, with a transaction amount of 62.974 billion yuan, a year-on-year increase of 136.22%[29] - The company's institutional deposits reached 74.396 billion yuan, an increase of 6.202 billion yuan or 9.09% compared to the beginning of the year, with institutional customers increasing by 571 or 3.31% to 17,813[30] - The company's agricultural modernization loan balance reached 27.605 billion yuan, with a cumulative issuance of 8.9 billion yuan during the reporting period[31] - The company's personal deposit customers reached 11.9214 million, an increase of 242,400 or 2.08% compared to the beginning of the year, with personal deposit balances reaching 182.758 billion yuan, an increase of 9.396 billion yuan or 5.42%[32] - The company's consumer finance loan balance reached 34.55 billion yuan, an increase of 1.971 billion yuan compared to the beginning of the year[33] - The company's inclusive small and micro enterprise loan balance reached 49.034 billion yuan, an increase of 1.606 billion yuan compared to the beginning of the year, with the number of inclusive small and micro enterprise customers reaching 62,700, an increase of 3,600[34] - The company's bond trading spread income increased by 358.62% year-on-year, and the net profit of proprietary business increased by 109.02% year-on-year[35] - The company's net profit for the first half of 2024 was RMB 2.1225 billion, a decrease of 3.80% year-on-year[38] - Interest income for the first half of 2024 was RMB 10.957 billion, a decrease of 5.45% compared to the same period last year[39] - The company's net interest income for the first half of 2024 was RMB 4.34258 billion, accounting for 72.77% of operating income[40] - The average yield on total interest-earning assets for the first half of 2024 was 4.25%, a decrease from 4.76% in the same period last year[41] - The company's net interest margin for the first half of 2024 was 1.68%, down from 2.07% in the same period last year[42] - The company's electronic channel financial transactions accounted for 99.23% of total transactions, with 336 million transactions, a year-on-year increase of 24.12%[37] - The number of mobile banking customers reached 6.7566 million, an increase of 266,300 from the beginning of the year[37] - The company's asset management business focused on fixed-income assets, with all existing wealth management products being net-value products[36] - The company's fee and commission income for the first half of 2024 was RMB 307.78 million, an increase of 9.84% year-on-year[39] - The company's investment securities net income for the first half of 2024 was RMB 887.57 million, a significant increase of 76.58% year-on-year[39] - Interest income decreased by RMB 631.98 million (5.45%) to RMB 10.957 billion in the first half of 2024 compared to the same period in 2023[47] - Customer loan interest income decreased by RMB 502 million (5.85%) to RMB 8.092 billion in the first half of 2024[48] - Financial investment interest income decreased by RMB 140 million (5.32%) to RMB 2.487 billion in the first half of 2024[50] - Interest income from deposits with central bank increased by RMB 4 million (3.06%) to RMB 149 million in the first half of 2024[51] - Interest income from deposits with other financial institutions increased by RMB 28 million (168.80%) to RMB 44 million in the first half of 2024[51] - Interest expense increased by RMB 62 million (0.94%) to RMB 6.614 billion in the first half of 2024[53] - Customer deposit interest expense decreased by RMB 31 million (0.71%) to RMB 4.377 billion in the first half of 2024[54] - Interest expense on deposits from other financial institutions increased by RMB 52 million (17.33%) to RMB 350 million in the first half of 2024[54] - Net fee and commission income increased by RMB 4.9 million (2.43%) to RMB 206.44 million in the first half of 2024[58] - Investment securities net income increased by RMB 385 million (76.58%) to RMB 888 million in the first half of 2024[60] - Employee costs decreased by RMB 320.8 million (3.08%) to RMB 10.10 billion in the first half of 2024[62][63] - Depreciation and amortization decreased by RMB 187.2 million (9.80%) to RMB 1.72 billion in the first half of 2024[62][63] - Other general and administrative expenses decreased by RMB 253.7 million (8.71%) to RMB 2.66 billion in the first half of 2024[62][63] - Impairment losses decreased by RMB 248 million (11.48%) to RMB 1.908 billion in the first half of 2024[64][65] - Income tax decreased by RMB 491.4 million (13.49%) to RMB 3.15 billion in the first half of 2024[66][67] - Total assets increased by RMB 11.655 billion (2.02%) to RMB 5,884.41 billion as of June 30, 2024[69][70] - Loans and advances increased by RMB 16.705 billion (5.03%) to RMB 3,486.54 billion as of June 30, 2024[71][72] - Corporate loans and advances increased by RMB 13.234 billion (4.85%) to RMB 2,861.95 billion as of June 30, 2024[73] - Personal loans and advances increased by RMB 1.547 billion (3.25%) to RMB 490.77 billion as of June 30, 2024[74] - Investment securities and other financial assets decreased by RMB 8.427 billion (3.98%) to RMB 2,035.30 billion as of June 30, 2024[74][75] - Total liabilities increased by RMB 9.765 billion to RMB 5,381.33 billion, a growth of 1.85% compared to the end of the previous year[79] - Customer deposits grew by RMB 14.066 billion to RMB 3,703.12 billion, an increase of 3.95%[81] - Interbank and other financial institution deposits rose by RMB 1.136 billion to RMB 26.518 billion, up 4.47%[83] - Issued bonds decreased by RMB 6.944 billion to RMB 87.323 billion, a decline of 7.37%[84] - Total equity increased by RMB 1.890 billion to RMB 503.08 billion, a growth of 3.90%[84] - Central and local government bonds accounted for 41.35% of financial investments, totaling RMB 84.151 billion[77] - Policy bank bonds made up 15.16% of financial investments, amounting to RMB 30.846 billion[77] - Corporate bonds represented 13.08% of financial investments, totaling RMB 26.625 billion[77] - Investment funds managed by public fund managers accounted for 22.44% of financial investments, amounting to RMB 45.679 billion[77] - Asset-backed securities represented 0.20% of financial investments, totaling RMB 397.26 million[77] - Total loans and advances reached RMB 348.65 billion, an increase of RMB 16.71 billion (5.03%) compared to the beginning of the year[92] - Non-performing loan (NPL) ratio decreased to 1.65%, down by 0.03 percentage points from the beginning of the year[88] - Corporate loans and advances accounted for 82.08% of total loans, a slight decrease of 0.15 percentage points from the beginning of the year[92] - Personal loans and advances accounted for 14.08% of total loans, a decrease of 0.24 percentage points from the beginning of the year[92] - The balance of bills discounting increased to RMB 13.38 billion, accounting for 3.84% of total loans, up by 0.39 percentage points from the beginning of the year[92] - The balance of non-performing loans was RMB 5.76 billion, with a NPL ratio of 1.65%[88] - The balance of special mention loans (关注类) was RMB 10.08 billion, accounting for 2.89% of total loans, down by 0.03 percentage points from the beginning of the year[88] - The balance of credit card commitments increased to RMB 14.41 billion, up from RMB 12.89 billion at the end of 2023[87] - The total balance of acceptances, letters of credit, credit card commitments, and guarantees was RMB 24.75 billion, slightly up from RMB 24.31 billion at the end of 2023[87] - The company's total loans amounted to RMB 348.65 billion, with a non-performing loan (NPL) ratio of 1.65%, a slight decrease from 1.68% at the end of 2023[94] - The real estate sector's NPL balance decreased by RMB 983 million to RMB 2.063 billion, with the NPL ratio dropping significantly by 11.85 percentage points to 28.54%[95] - The leasing and commercial services sector accounted for 33.83% of total loans, with an NPL ratio of 0.56%, a slight increase from 0.53% at the end of 2023[94] - The wholesale and retail sector's loan balance increased to RMB 43.81 billion, with an NPL ratio of 1.01%, up from 0.71% at the end of 2023[94] - The construction sector's NPL ratio increased to 1.44%, up from 1.03% at the end of 2023, with an NPL balance of RMB 278.94 million[94] - The company's mortgage loans had the highest NPL ratio at 5.27%, a decrease from 7.10% at the end of 2023[96] - The overdue loan balance increased by RMB 2.455 billion to RMB 8.901 billion, with an overdue rate of 2.55%, up from 1.94% at the end of 2023[97] - Loans overdue within 3 months accounted for 1.01% of total loans, an increase of 0.37 percentage points from the end of 2023[97] - Loans overdue between 3 months and 1 year accounted for 1.17% of total loans, an increase of 0.24 percentage points from the end of 2023[97] - The company's credit loans had an NPL ratio of 1.68%, an increase of 0.52 percentage points from the end of 2023[96] - The manufacturing industry and leasing and business services industry accounted for 1.12% and 0.92% of the total loan balance, respectively, with 30-day ratios of 7.34% and 6.04% of net capital[98] - The largest single borrower's loan balance was 3.909 billion yuan, accounting for 1.12% of the total loan balance and 7.34% of net capital[98] - The top ten borrowers' loan balance was 24.344 billion yuan, accounting for 6.97% of the total loan balance and 45.72% of net capital[98] - Corporate banking business generated net interest income of 5.379 billion yuan, while retail banking business had a net interest expense of 1.331 billion yuan[99] - The company's total operating income for the first half of 2024 was 5.967 billion yuan, with corporate banking contributing 48.34%[102] - Core tier 1 capital adequacy ratio decreased slightly from 11.25% at the end of 2023 to 11.21% at the end of June 2024[103] - Total capital adequacy ratio decreased from 13.30% at the end of 2023 to 13.22% at the end of June 2024[103] - The company's pre-tax profit for the first half of 2024 was 2.438 billion yuan, with funds business contributing the largest share at 1.138 billion yuan[99] - Fee and commission net income for corporate banking was 111.65 million yuan, while retail banking had a net expense of 9.14 million yuan[99] - Investment securities net income for funds business was 887.57 million yuan, accounting for 14.87% of total operating income[99] - Core Tier 1 capital increased to RMB 46,808.34 million as of June 30, 2024, up from RMB 44,918.43 million at the end of 2023[104] - Core Tier 1 capital adequacy ratio slightly decreased to 11.21% in 2024 from 11.25% in 2023[104] - Total capital adequacy ratio stood at 13.22% in 2024, compared to 13.30% in 2023[104] - Risk-weighted assets increased to RMB 402,878.21 million in 2024 from RMB 383,889.98 million in 2023[104] Risk Management - The company strengthened its credit risk management framework, focusing on high-quality development and optimizing policies and processes[105] - Market risk management was enhanced with improved risk identification, quantification, and monitoring, with all market

Financial Performance - Guizhou Bank reported a net interest income of RMB 4,342.58 million for the first half of 2024, a decrease of 13.77% compared to RMB 5,036.29 million in 2023[16]. - Total operating income for the bank was RMB 5,967.27 million, down 7.20% from RMB 6,429.95 million in the previous year[16]. - The bank's net profit for the first half of 2024 was RMB 2,122.50 million, reflecting a decline of 3.80% from RMB 2,206.35 million in 2023[16]. - The company achieved a pre-tax profit of 2.44 billion RMB in the first half of 2024, a decrease of 5.17% year-on-year[40]. - Net profit for the same period was 2.12 billion RMB, down 3.80% compared to the previous year[40]. - Interest income totaled 10.96 billion RMB, a decline of 5.45% from 11.59 billion RMB in the previous year[41]. - The company processed 336 million electronic financial transactions, an increase of 24.12% year-on-year[39]. - The bank's total operating expenses for the six months ending June 30, 2024, amount to RMB 1.613 billion[104]. Asset and Liability Management - The total assets of Guizhou Bank reached RMB 588,440.54 million as of June 30, 2024, representing a growth of 2.02% from RMB 576,786.03 million at the end of 2023[17]. - Guizhou Bank's total liabilities increased to RMB 332,691.36 million, up 5.08% from RMB 316,610.23 million at the end of 2023[17]. - Customer deposits reached RMB 370.31 billion as of June 30, 2024, reflecting an increase of RMB 14.07 billion or 3.95% from the end of 2023[87]. - The bank's liquidity coverage ratio decreased to 273.59% as of June 30, 2024, down from 365.70% at the end of 2023[17]. - The bank's total capital adequacy ratio was reported at 13.22%, slightly down from 13.30%[109]. Loan Portfolio and Quality - Total loans amounted to CNY 348.65 billion, up CNY 16.705 billion, or 5.03% year-to-date[23]. - The non-performing loan ratio improved slightly to 1.65% as of June 30, 2024, down from 1.68% at the end of 2023[17]. - The non-performing loan balance was RMB 57.57 billion, with a non-performing loan ratio of 1.65%, a decrease of 0.03 percentage points from the beginning of the year[94]. - The overdue loan balance increased to RMB 8.90 billion, with an overdue rate of 2.55%, up 0.61 percentage points from the beginning of the year[101]. - The proportion of normal loans was 95.46%, slightly up from 95.40% at the end of 2023, indicating stable loan quality[94]. Risk Management - The bank has established a comprehensive risk management system to support its business development and ensure stability[13]. - The bank continues to enhance its credit risk management policies and frameworks to improve overall risk management effectiveness[110]. - The bank has implemented a robust information technology risk management system, ensuring no significant technology risk events occurred during the reporting period[114]. - The bank's market risk indicators, including trading book profit and loss and Value at Risk (VaR), remained within the set limits during the first half of 2024[112]. - The bank has established a comprehensive anti-money laundering management structure involving the board of directors, supervisory board, senior management, and various functional departments[117]. Digital Transformation and Innovation - Guizhou Bank is the first bank in China to fully deploy its main trading systems on a private cloud, enhancing its operational capabilities[14]. - The bank's intelligent micro-loan platform has seen a loan balance exceed 9 billion, with over 15,000 new applications and 12,000 customers served during the reporting period[136]. - The bank's digital platform has facilitated 300,000 transactions, leading to an average daily deposit of 200 million[136]. - The bank has launched 211 digital branches, laying a solid foundation for comprehensive transformation[39]. - The bank's digital financial services have expanded into the catering and tourism industries, with significant projects like "Qian Wine Qian Cuisine" and "Xijiang Qianhu Miao Village" systems being launched[136]. Corporate Governance and Shareholder Structure - The bank's chairman is Yang Mingshang, who is also the legal representative[11]. - The board of directors consists of 13 members, including 3 executive directors and 5 non-executive directors[180]. - The top shareholder, Guizhou Provincial Finance Department, holds 20.00% of the total issued share capital[149]. - The second-largest shareholder, China Guizhou Moutai Distillery (Group) Co., Ltd., holds 12.00% of the total issued share capital[149]. - The company has undergone significant changes in its board and supervisory roles during the reporting period[185]. Social Responsibility and Community Engagement - A total of 220 million yuan was donated by the company during the reporting period, reflecting its commitment to social responsibility[144]. - The company organized 931 consumer rights protection education activities, reaching 774,500 consumers during the reporting period[143]. - The company has established 327 outdoor worker care stations to provide essential services[144].

Strategic Focus and Development - The company emphasized high-quality development as a key focus for 2023, aligning with national strategies and policies [10]. - The bank aims to enhance its operational scale, structure, quality, efficiency, and safety in line with the central government's directives for small and medium-sized banks [10]. - The strategic focus includes advancing the "Four New" initiatives and the "Four Modernizations" to drive growth in the Guizhou province [10]. Financial Performance - Net interest income for 2023 was RMB 8,750.02 million, a decrease of 13.32% compared to RMB 10,094.21 million in 2022 [26]. - Total operating income for 2023 was RMB 11,344.69 million, down 5.38% from RMB 11,989.98 million in 2022 [26]. - Net profit for 2023 was RMB 3,653.33 million, a decline of 4.60% from RMB 3,829.46 million in 2022 [26]. - Total assets increased to RMB 576,786.03 million in 2023, an 8.06% rise from RMB 533,781.34 million in 2022 [27]. - The non-performing loan ratio rose to 1.68% in 2023, up from 1.47% in 2022 [27]. - The capital adequacy ratio for 2023 was 12.16%, an increase from 11.91% in 2022 [27]. - The liquidity coverage ratio decreased to 365.70% in 2023, down from 419.41% in 2022 [27]. - The total equity to total assets ratio was 13.30% in 2023, slightly down from 13.82% in 2022 [27]. - The basic earnings per share for 2023 was RMB 0.24, a decrease of 7.69% from RMB 0.26 in 2022 [26]. - The cost-to-income ratio increased to 33.50% in 2023, compared to 30.68% in 2022 [26]. Loan and Deposit Growth - Total deposits reached CNY 356.246 billion, an increase of CNY 29.922 billion from the beginning of the year, with personal deposits increasing by CNY 24.256 billion [11]. - Total loans amounted to CNY 331.949 billion, an increase of CNY 38.421 billion year-to-date, with financing for the real economy increasing by CNY 28.534 billion [11]. - The balance of inclusive micro and small enterprise loans increased by CNY 9.493 billion, while green finance loans increased by CNY 5.564 billion [11]. - The total corporate loans reached CNY 272.96 billion, an increase of CNY 22.70 billion, representing a growth of 9.07% compared to the beginning of the year [38]. - The total corporate deposits amounted to CNY 168.23 billion, with an increase of CNY 6.02 billion, reflecting a growth of 3.71% year-to-date [38]. - Customer deposits reached CNY 356.25 billion, marking an increase of CNY 29.92 billion or 9.17% compared to the beginning of the year [35]. Digital Transformation and Innovation - The bank's digital transformation included the launch of 21 projects, improving customer insights, marketing management, and risk control [11]. - Guizhou Bank aims to develop fintech as a new growth engine, focusing on a "technology-industry-finance" cycle to support key sectors and "little giant" enterprises [15]. - The bank is accelerating its digital transformation, aiming to turn digital achievements into business advantages and improve overall digital capabilities [15]. - The bank's digital financial management system for green finance was implemented, focusing on improving digital management levels in the green finance sector [172]. - The bank's digital transformation efforts are aimed at integrating traditional business with digital technologies, enhancing operational efficiency and customer experience [171]. Risk Management - The bank emphasized risk management and governance, ensuring no systemic risks occurred during the year [11]. - The bank has established a comprehensive risk management system covering credit, market, liquidity, operational, and strategic risks [135]. - The bank has not experienced any significant technology risk events or major operational interruptions during the reporting period [139]. - The bank has established a three-line defense system for operational risk management, with the first line being the business and management departments directly managing and bearing operational risks [140]. - The bank has optimized its AML mechanisms and enhanced the use of technology to improve the identification of money laundering activities [144]. Community Engagement and Social Responsibility - The bank has conducted over 3,000 financial service activities, providing 749,900 financial services amounting to CNY 1.47 billion to rural households [177]. - The bank's public welfare donations for the year reached 7.4 million yuan, with various community service initiatives [181]. - The bank has established 82 volunteer service teams for college entrance examination support, serving nearly 10,000 candidates and their families [181]. - The bank is committed to supporting rural revitalization and green finance, continuously expanding its social responsibility practices [176]. Shareholder Structure and Ownership - The total share capital of Guizhou Bank as of December 31, 2023, is 14,588,046,744 shares, consisting of 12,388,046,744 domestic shares (84.92%) and 2,200,000,000 H-shares (15.08%) [182]. - The largest shareholder, Guizhou Provincial Finance Department, holds 2,917,500,000 shares, representing 20.00% of the total issued share capital [184]. - The ownership structure reflects a high concentration of state control over the bank's equity [189]. - The company maintains a diverse shareholder structure with significant influence from state-owned enterprises [194].

Financial Performance - Guizhou Bank announced its annual performance for the year ending December 31, 2023, in compliance with the Hong Kong Stock Exchange listing rules[1]. - The board of directors has reviewed and confirmed the annual performance results, which will be published on the Hong Kong Stock Exchange and the bank's website[1]. - Net interest income decreased by 13.32% to RMB 8,750.02 million in 2023 from RMB 10,094.21 million in 2022[23]. - Total operating income fell by 5.38% to RMB 11,344.69 million in 2023 compared to RMB 11,989.98 million in 2022[23]. - Net profit decreased by 4.60% to RMB 3,653.33 million in 2023 from RMB 3,829.46 million in 2022[23]. - Total assets increased by 8.06% to RMB 576,786.03 million in 2023 from RMB 533,781.34 million in 2022[24]. - Total liabilities increased by 7.87% to RMB 528,368.12 million in 2023 from RMB 489,810.81 million in 2022[24]. - The loan-to-deposit ratio improved to 95.01% in 2023 from 91.31% in 2022, an increase of 3.70%[24]. - The liquidity coverage ratio decreased to 365.70% in 2023 from 419.41% in 2022, a decline of 53.71%[24]. - The total amount of loans and advances issued by the bank reached CNY 331.95 billion, an increase of CNY 38.42 billion, reflecting a growth of 13.09% year-on-year[88]. Governance and Compliance - The bank's board includes both executive and non-executive directors, ensuring a diverse governance structure[2]. - The bank's corporate governance report will provide insights into its governance practices and compliance with regulatory requirements[3]. - Guizhou Bank is not classified as an authorized institution under the Banking Ordinance of Hong Kong and is not regulated by the Hong Kong Monetary Authority[2]. - The company emphasizes compliance with Chinese laws regarding the tenure of directors and supervisors[195]. - The company maintains a diverse board composition to enhance governance and oversight[195]. Risk Management - The bank is committed to enhancing risk management capabilities, ensuring no systemic risks occur, and has strengthened internal governance and compliance management[13]. - The company has established a comprehensive risk management system covering credit, market, liquidity, operational, and strategic risks, aligning with regulatory requirements[120]. - The market risk management framework has been enhanced, with all market risk indicators remaining within limits during the reporting period[123]. - The bank's information technology risk management has been strengthened, with no significant technology risk events reported during the year[124]. - The bank's liquidity risk management strategy includes maintaining a reasonable level of active liabilities and enhancing the management of maturity profiles[142]. Digital Transformation and Innovation - The bank has launched 21 digital transformation projects, including smart micro-loans and online mortgage loans, enhancing customer insights and risk control[12]. - The bank's digital financial ecosystem aims to provide services to over 179,000 agricultural customers through the Huinong platform[156]. - The bank's software project construction resulted in 81 computer software copyrights, ranking first among financial institutions in the province[154]. - Active users of the BI business intelligence data analysis tool increased by 384% year-on-year, while the number of data operations surged by 737%[157]. - The average data processing time was reduced from 3 days to 1-4 hours, significantly enhancing decision-making efficiency[157]. Community Engagement and Social Responsibility - The company engaged in various social responsibility activities, contributing a total of 7.4 million yuan in charitable donations throughout the year[165]. - The company established 82 volunteer service teams to support nearly 10,000 students and parents during the college entrance examination[165]. - The bank conducted 2,381 financial consumer education activities, reaching approximately 2.775 million consumers throughout the year[145]. - The bank's consumer rights protection efforts included training for 5,180 staff members to improve awareness and capabilities in consumer rights protection[145]. - The company conducted over 3,000 financial knowledge promotion and anti-fraud service activities, providing 749,900 financial services amounting to CNY 1.47 billion[161]. Shareholder Information - As of December 31, 2023, the total share capital of the company is 14,588,046,744 shares, consisting of 12,388,046,744 domestic shares and 2,200,000,000 H shares[167]. - The largest domestic shareholder is the Guizhou Provincial Finance Department, holding 2,917,500,000 shares, which is 20.00% of the total[170]. - The top ten domestic shareholders hold a total of 6,855,000,000 shares, representing approximately 46.93% of the total issued share capital[170]. - The company is not aware of any other individuals holding 5% or more of the shares as of December 31, 2023[175]. - Guizhou Provincial Finance Department holds 20.00% of shares as of December 31, 2023, up from 18.29% in 2022[178]. Employee and Management Structure - As of the report date, Guizhou Bank has 5,523 employees and 222 branches, with a presence in 88 counties in Guizhou Province[20]. - The board of directors consists of 16 members, including 3 executive directors, 6 non-executive directors, and 7 independent non-executive directors[195]. - The company has a total of 7 senior management personnel, including the chairman and executive director, who resigned on March 7, 2024[200]. - During the reporting period, the company organized 1,347 training programs, with 86,738 participants, enhancing the quality of its talent pool[166]. - The company has implemented a talent retention strategy, enhancing its compensation management system and broadening the talent development pathway[166].

Company Overview - Guizhou Bank was officially established on October 11, 2012, and listed on the Hong Kong Stock Exchange on December 30, 2019, under the stock code 6199.HK[10] - The bank's headquarters is located in Guiyang, Guizhou Province, China, and it was formed through the merger of several local commercial banks[10] - The bank operates under the financial license number B1383H252010001, approved by the National Financial Supervision and Administration Bureau[10] - The bank's unified social credit code is 915200000550280000, indicating its legal entity status in China[10] - The bank's external auditor is Hong Kong Lixin Dehao Accounting Firm Limited, while the domestic auditor is Lixin Accounting Firm (Special General Partnership)[10] - Guizhou Bank's main business address in Hong Kong is located at 40th Floor, Daxin Financial Center, 248 Queen's Road East, Wanchai[9] - The bank's contact number is (86) 0851-86987798, and its email address is irm@bgzchina.com[9] Financial Performance - The bank's mid-term report was approved by the board of directors on August 31, 2023, covering the six months ending June 30, 2023[8] - The total profit for the reporting period reached RMB 2.571 billion, with a net profit of RMB 2.206 billion, reflecting a 2.26% and 1.00% increase respectively compared to the previous year[14] - The total assets amounted to RMB 575.418 billion, representing a 7.80% increase from the end of 2022, while total liabilities were RMB 528.497 billion, up by 7.90%[15] - The non-performing loan ratio improved to 1.38%, down from 1.47% at the end of 2022, indicating enhanced asset quality[15] - The provision coverage ratio increased to 367.84%, up from 351.21%, demonstrating a stronger buffer against potential loan losses[15] - The bank's average return on total assets was 0.80%, slightly down from 0.85% in the previous year, while the average return on equity decreased to 9.71% from 11.01%[14] - The net interest margin was recorded at 2.16%, down from 2.30%, reflecting a tightening in interest income[14] - The total amount of loans and advances reached RMB 320.992 billion, a 9.36% increase compared to the end of 2022[15] Business Operations - The bank has expanded its distribution network, covering all 88 counties in Guizhou Province, enhancing customer access to services[12] - Guizhou Bank ranked 252nd in the "2023 Global Top 1000 Banks" list and 46th in the "2023 Top 100 Chinese Banks" list, reflecting its growing market presence[12] - Retail banking revenue reached RMB 1.377 billion, an increase of RMB 283 million, representing a growth of 25.84% year-on-year[28] - Pre-tax profit for retail banking was RMB 862 million, up RMB 285 million, with a growth rate of 49.32% year-on-year[28] - Personal deposits totaled RMB 166.874 billion, an increase of RMB 17.768 billion, reflecting an 11.92% growth since the beginning of the year[28] - The number of personal deposit customers reached 11.3401 million, a year-to-date increase of 4.22%[28] Risk Management - The bank's market risk management framework has been enhanced, with market risk indicators such as VaR remaining within limits during the first half of 2023[99] - The bank has established a comprehensive information technology risk management system, with no significant technology risk events reported during the reporting period[100] - Operational risk management policies have been clarified, and the bank has conducted a comprehensive review of credit operations to strengthen risk management[102] - The bank's credit risk management framework has been reinforced, maintaining stable asset quality throughout the reporting period[97] Shareholder Structure - As of June 30, 2023, the total share capital of the company is 14,588,046,744 shares, consisting of 12,388,046,744 domestic shares (84.92%) and 2,200,000,000 H shares (15.08%)[129] - The number of domestic shareholders is 5,296, including 10 state shareholders, 62 state-owned legal entity shareholders, 118 social legal entity shareholders, and 5,106 individual shareholders[131] - The top three domestic shareholders hold the following shares: Guizhou Provincial Finance Department (2,668,500,000 shares, 18.29%), China Guizhou Moutai Distillery (Group) Co., Ltd. (1,750,000,001 shares, 12.00%), and Zunyi State-owned Assets Investment Management Co., Ltd. (955,477,904 shares, 6.55%)[132] Governance and Leadership - The board consists of 17 members, including 3 executive directors and 7 independent non-executive directors[156] - The term for directors is three years, with independent non-executive directors limited to a cumulative term of six years[156] - The company has a total of seven senior management personnel, with positions including the president and vice presidents[159] - The leadership team has a combined experience of over 30 years in financial management and economic research, which supports the company's growth strategy[196] Digital Transformation - The bank's digital transformation is progressing rapidly, focusing on enhancing digital capabilities and leveraging data value[121] - The bank has established a digital finance department and planned 66 transformation tasks for 2023, with 37 key tasks included in the high-quality development assessment system[122] - The bank has developed an intelligent micro-loan system, achieving a loan application process of "3 minutes application + 1 minute approval + 0 manual intervention" for products like "Business Quick Loan" and "Agricultural Loan"[123] Community Engagement - The bank organized 960 educational events for consumer rights protection, reaching 522,700 consumers[127] - The bank actively participated in over 400 youth volunteer service activities, serving nearly 50,000 people[128]

Company Overview [Company Profile and Basic Information](index=4&type=section&id=2.%20Company%20Introduction) Guizhou Bank, established in 2012 and listed in 2019, reported **575.418 billion yuan** in total assets by mid-2023 and ranked 252nd globally among banks - Guizhou Bank was established through the merger and restructuring of Zunyi, Anshun, and Liupanshui City Commercial Banks, and was listed on the Main Board of the Hong Kong Stock Exchange on December 30, 2019[8](index=8&type=chunk) Key Financial Indicators (As of June 30, 2023) | Indicator | June 30, 2023 | | :--- | :--- | | **Total Assets** | 575.418 billion yuan | | **Total Loans and Advances** | 320.991 billion yuan | | **Total Deposits** | 357.648 billion yuan | | **Non-performing Loan Ratio** | 1.38% | | **Provision Coverage Ratio** | 367.84% | | **Capital Adequacy Ratio** | 13.24% | | **Branches** | 225 (within Guizhou Province) | - Guizhou Bank ranked **252nd globally** in The Banker magazine's 2023 Top 1000 World Banks list[8](index=8&type=chunk) Financial Highlights [Core Financial Indicators](index=7&type=section&id=Chapter%202%20Accounting%20Data%20and%20Financial%20Indicators%20Summary) In H1 2023, the bank saw **6.90%** revenue growth and **1.00%** net profit increase, with asset quality improving despite a decline in profitability metrics Operating Performance (H1 2023) | Operating Performance (H1 2023) | Amount (Million Yuan) | YoY Change (%) | | :--- | :--- | :--- | | **Operating Revenue** | 6,429.95 | 6.90% | | **Net Interest Income** | 5,036.29 | -0.40% | | **Net Fee and Commission Income** | 201.54 | -19.85% | | **Total Profit** | 2,570.56 | 2.26% | | **Net Profit** | 2,206.35 | 1.00% | Scale and Asset Quality (As of June 30, 2023) | Scale and Asset Quality (As of June 30, 2023) | Value | Change from End of 2022 | | :--- | :--- | :--- | | **Total Assets (Million Yuan)** | 575,418.14 | 7.80% | | **Total Loans and Advances (Million Yuan)** | 320,991.28 | 9.36% | | **Total Deposits (Million Yuan)** | 357,647.53 | 9.60% | | **Non-performing Loan Ratio** | 1.38% | -0.09 percentage points | | **Provision Coverage Ratio** | 367.84% | +16.63 percentage points | | **Capital Adequacy Ratio** | 13.24% | -0.58 percentage points | - Profitability indicators declined: net interest margin decreased from **2.30% to 2.16%**, net interest yield from **2.26% to 2.07%**, and average return on assets (ROA) and average return on equity (ROE) also decreased by **0.05 and 1.30 percentage points**, respectively[9](index=9&type=chunk) Management Discussion and Analysis (MD&A) [Operating Performance Analysis](index=9&type=section&id=3.1.%20Operating%20Performance%20Analysis) In H1 2023, the bank achieved robust business growth with nearly **10%** increase in assets, deposits, and loans, alongside stable asset quality and improved operating efficiency - The bank established seven key development directions, including focusing on "Four Modernizations" construction, expanding rural markets, developing green finance, strengthening small and micro businesses, accelerating digital transformation, solidifying risk management, and actively supplementing capital[12](index=12&type=chunk) Core Operating Indicators (As of June 30, 2023) | Core Operating Indicators (As of June 30, 2023) | Amount/Ratio | Increase from Beginning of Year | | :--- | :--- | :--- | | **Total Assets** | 575.418 billion yuan | 7.80% | | **Total Loans and Advances** | 320.991 billion yuan | 9.36% | | **Total Deposits** | 357.648 billion yuan | 9.60% | | **Operating Revenue (H1)** | 6.430 billion yuan | 6.90% (YoY) | | **Net Profit (H1)** | 2.206 billion yuan | 1.00% (YoY) | | **Non-performing Loan Ratio** | 1.38% | -0.09 percentage points | [Corporate Banking Business](index=11&type=section&id=3.1.3%20Business%20Overview) Corporate banking saw steady growth in deposits and loans, improved asset quality, and significant lending increases in agricultural modernization and new industrialization Corporate Banking Core Data (As of June 30, 2023) | Corporate Banking Core Data (As of June 30, 2023) | Amount/Ratio | Growth from Beginning of Year | | :--- | :--- | :--- | | **Corporate Deposits** | 175.585 billion yuan | 8.24% | | **Corporate Loans** | 269.578 billion yuan | 7.72% | | **Corporate Loan NPL Ratio** | 1.23% | -0.14 percentage points | - Strong loan growth in areas focused on serving the "Four Modernizations" initiatives: - **Agricultural Modernization Loans**: Balance of **20.327 billion yuan**, up **34.30%** from the beginning of the year[16](index=16&type=chunk) - **New Industrialization Loans**: Balance of **22.507 billion yuan**, up **27.22%** from the beginning of the year[16](index=16&type=chunk) - **Tourism Industrialization Loans**: Balance of **18.622 billion yuan**, up **6.67%** from the beginning of the year[16](index=16&type=chunk) - **New Urbanization Loans**: Balance of **160.582 billion yuan**, up **1.94%** from the beginning of the year[16](index=16&type=chunk) - Continued growth in green finance and rural revitalization loans: - **Green Credit Balance**: **50.879 billion yuan**, an increase of **4.249 billion yuan** from the beginning of the year[18](index=18&type=chunk) - **Rural Revitalization Loan Balance**: **59.139 billion yuan**, an increase of **8.190 billion yuan** from the beginning of the year, a **16.08%** increase[19](index=19&type=chunk) [Retail Banking Business](index=12&type=section&id=3.1.3%20Business%20Overview) Retail banking saw significant revenue and profit growth, steady increases in personal deposits and loans, and strong expansion in inclusive small and and micro enterprise lending Retail Banking Core Data (H1 2023) | Retail Banking Core Data (H1 2023) | Amount/Ratio | YoY/Growth from Beginning of Year | | :--- | :--- | :--- | | **Business Revenue** | 1.377 billion yuan | 25.84% (YoY) | | **Pre-tax Profit** | 0.862 billion yuan | 49.32% (YoY) | | **Personal Deposits** | 166.874 billion yuan | 11.92% (from beginning of year) | | **Personal Loans** | 43.913 billion yuan | 12.88% (from beginning of year) | - Inclusive small and micro business grew rapidly, with loan balance reaching **44.930 billion yuan** by the end of the reporting period, an **18.44%** increase from the beginning of the year; customer count reached **48,100**, a significant **47.09%** increase from the beginning of the year[22](index=22&type=chunk) - Consumer finance asset balance reached **30.64 billion yuan**, an increase of **1.966 billion yuan** from the beginning of the year; cumulative credit card issuance reached **829,100**, a **24.30%** year-on-year increase[23](index=23&type=chunk) [Financial Markets and Asset Management Business](index=13&type=section&id=3.1.3%20Business%20Overview) Financial markets business saw steady growth in net financial investments and treasury revenue, while asset management focused on net-value products and "fixed income plus" strategies Financial Markets Business Core Data (As of June 30, 2023) | Financial Markets Business Core Data (As of June 30, 2023) | Amount/Ratio | Change from Beginning of Year/YoY Change | | :--- | :--- | :--- | | **Net Financial Investments** | 217.125 billion yuan | 7.53% (from beginning of year) | | **Treasury Business Operating Revenue (H1)** | 1.720 billion yuan | - | | **Outstanding Wealth Management Products Net Value Scale** | 23.795 billion yuan | - | - The bank adheres to a safety and liquidity-first strategy, dynamically adjusting its asset portfolio and continuously expanding the breadth and depth of interbank cooperation[27](index=27&type=chunk) [Income Statement Analysis](index=14&type=section&id=3.2%20Income%20Statement%20Analysis) H1 2023 net profit grew **1.00%** to **2.206 billion yuan**, driven by strong non-interest income growth despite a slight decline in net interest income Key Income Statement Items (H1 2023) | Key Income Statement Items (H1 2023) | Amount (Million Yuan) | YoY Change (%) | | :--- | :--- | :--- | | **Net Interest Income** | 5,036.29 | -0.40% | | **Net Fee and Commission Income** | 201.54 | -19.85% | | **Net Trading Gains** | 506.88 | 88.23% | | **Net Gains on Investment Securities** | 502.65 | 24.67% | | **Operating Revenue** | 6,429.95 | 6.90% | | **Operating Expenses** | (1,695.35) | 3.17% | | **Asset Impairment Losses** | (2,155.54) | 15.69% | | **Net Profit** | 2,206.35 | 1.00% | - The primary reason for the decrease in net interest income was the narrowing net interest margin. The scale effect (**+436 million yuan**) was insufficient to offset the negative impact from interest rate changes (**-456 million yuan**), resulting in a year-on-year decrease of **20 million yuan** in net interest income[35](index=35&type=chunk) - Net fee and commission income decreased by **19.85%**, primarily due to reduced income from guarantee and commitment business and fund supervision and advisory business, which decreased by **19.30%** and **50.23%** year-on-year, respectively[42](index=42&type=chunk) [Balance Sheet Analysis](index=22&type=section&id=3.3%20Analysis%20of%20Key%20Balance%20Sheet%20Items) By mid-2023, total assets grew **7.80%** to **575.418 billion yuan**, driven by increases in loans and financial investments, supported by a **9.60%** rise in deposits Asset Structure (As of June 30, 2023) | Asset Structure (As of June 30, 2023) | Amount (Million Yuan) | % of Total Assets | | :--- | :--- | :--- | | **Net Loans and Advances** | 307,132.23 | 53.39% | | **Financial Investments** | 217,125.20 | 37.73% | | **Cash and Balances with Central Banks** | 22,987.28 | 3.99% | | **Total Assets** | 575,418.14 | 100.00% | Liability Structure (As of June 30, 2023) | Liability Structure (As of June 30, 2023) | Amount (Million Yuan) | % of Total Liabilities | | :--- | :--- | :--- | | **Deposits Absorbed** | 357,647.53 | 67.67% | | **Debt Instruments Issued** | 93,332.67 | 17.66% | | **Borrowings from Central Banks** | 37,591.80 | 7.11% | | **Total Liabilities** | 528,496.90 | 100.00% | - Total loans and advances increased by **9.36%** from the beginning of the year, with corporate loans growing by **7.72%** and personal loans by **12.88%**[53](index=53&type=chunk)[55](index=55&type=chunk) - Among deposits absorbed, corporate demand deposits and personal time deposits grew relatively fast, increasing by **11.08%** and **15.54%** respectively from the beginning of the year[63](index=63&type=chunk) [Loan Quality Analysis](index=29&type=section&id=3.5%20Loan%20Quality%20Analysis) By mid-2023, asset quality improved with NPL ratio at **1.38%**, though real estate NPLs remained high, and loan concentration risk was notable Loan Five-Category Classification (As of June 30, 2023) | Loan Five-Category Classification (As of June 30, 2023) | Amount (Million Yuan) | % of Total | | :--- | :--- | :--- | | **Pass Loans** | 308,201.74 | 96.01% | | **Special Mention Loans** | 8,372.89 | 2.61% | | **Substandard Loans** | 1,571.87 | 0.49% | | **Doubtful Loans** | 2,209.64 | 0.69% | | **Loss Loans** | 635.14 | 0.20% | | **Total Non-performing Loans** | 4,416.65 | 1.38% | - The non-performing loan ratio for the real estate industry remained high at **19.13%**, but decreased from **20.21%** at the beginning of the year, with the NPL balance reducing by **421 million yuan**[72](index=72&type=chunk)[73](index=73&type=chunk) - The non-performing loan ratio for personal loans increased from **2.29%** at the beginning of the year to **2.49%**, primarily due to rising NPLs in personal business loans and credit cards[69](index=69&type=chunk)[70](index=70&type=chunk) - As of the end of the reporting period, the overdue loan ratio was **1.86%**, consistent with the beginning of the year, while the proportion of loans overdue for more than three months increased[76](index=76&type=chunk) [Segment Reporting](index=34&type=section&id=3.6%20Segment%20Report) Corporate banking remained the largest revenue contributor at **51.75%**, while retail banking and treasury business significantly increased their revenue and profit contributions Operating Revenue by Business Segment (H1 2023) | Operating Revenue by Business Segment (H1 2023) | Amount (Million Yuan) | % of Total Revenue | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Corporate Banking** | 3,327.61 | 51.75% | -12.07% | | **Retail Banking** | 1,376.75 | 21.41% | 25.84% | | **Treasury Business** | 1,719.95 | 26.75% | 51.50% | Pre-tax Profit by Business Segment (H1 2023) | Pre-tax Profit by Business Segment (H1 2023) | Amount (Million Yuan) | YoY Change (%) | | :--- | :--- | :--- | | **Corporate Banking** | 1,226.48 | -2.11% | | **Retail Banking** | 861.72 | 49.32% | | **Treasury Business** | 489.43 | -29.15% | [Capital Adequacy Ratio](index=36&type=section&id=3.7%20Capital%20Structure) By mid-2023, all capital adequacy ratios met regulatory requirements despite slight declines due to increased risk-weighted assets Capital Adequacy Ratio Indicators | Capital Adequacy Ratio Indicators | June 30, 2023 | December 31, 2022 | Change | | :--- | :--- | :--- | :--- | | **Common Equity Tier 1 Capital Adequacy Ratio** | 10.93% | 11.20% | -0.27% | | **Tier 1 Capital Adequacy Ratio** | 11.84% | 11.91% | -0.06% | | **Capital Adequacy Ratio** | 13.24% | 13.82% | -0.58% | | **Total Risk-Weighted Assets (Million Yuan)** | 382,838.30 | 356,341.99 | +7.44% | [Risk Management](index=37&type=section&id=3.8%20Risk%20Management) The bank maintained a comprehensive risk management system, with all major risks, including credit, market, and liquidity, remaining controllable and within regulatory limits - The bank's risk management adopts a "three lines of defense" model: business departments as the first line, risk and compliance departments as the second, and audit departments as the third[83](index=83&type=chunk)[87](index=87&type=chunk) - Credit risk management: Adhering to a "prudent and balanced" risk appetite, strengthening credit fundamental management, and maintaining stable asset quality[83](index=83&type=chunk) - Market risk management: Primarily interest rate risk, managed through Value-at-Risk (VaR), limit management, and sensitivity analysis, with all risk indicators within limits during the reporting period[84](index=84&type=chunk)[85](index=85&type=chunk) - Liquidity risk management: As of the end of the reporting period, the liquidity coverage ratio was **374.64%** and the net stable funding ratio was **111.29%**, both meeting regulatory requirements and indicating ample reserves[99](index=99&type=chunk)[100](index=100&type=chunk) - During the reporting period, the bank experienced no significant technology risk, operational risk, money laundering risk, legal risk, or reputational risk events[86](index=86&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk) [Information Technology and Digital Transformation](index=43&type=section&id=3.10%20Progress%20in%20Digital%20Transformation) In H1 2023, the bank advanced digital transformation by establishing a dedicated department, launching an intelligent micro-loan system, and implementing digital projects across various business areas - A Digital Finance Department was established to coordinate bank-wide digital transformation efforts, with **66** transformation tasks formulated[103](index=103&type=chunk) - An intelligent micro-loan system was built, centralizing credit operations, and enabling rapid development and launch of "Business Express Loan" and "Rural Prosperity Loan" products[104](index=104&type=chunk) - Data governance was deepened, with **5** data development knowledge bases established; active users on the BI platform increased by **142%** year-on-year, and operation frequency grew by **488%**, demonstrating significant data-driven decision-making empowerment[105](index=105&type=chunk) [Social Responsibility](index=44&type=section&id=3.11%20Social%20Responsibility%20Status) The bank actively fulfilled social responsibilities through rural revitalization, inclusive and green finance, establishing **2,100** rural service points, and growing inclusive small and micro enterprise loans by **18.44%** - Fully supporting rural revitalization, cumulatively establishing **2,100** rural benefit service points to bridge the "last mile" of financial services[106](index=106&type=chunk) - Dedicated to developing private small and micro businesses, inclusive small and micro enterprise loan balance increased by **6.995 billion yuan** from the beginning of the year, a growth rate of **18.44%**[106](index=106&type=chunk) - Actively developing green finance, successfully launching Guizhou Province's first carbon emission reduction support loan by a local legal entity financial institution[107](index=107&type=chunk) - Organized over **1,600** financial literacy education and promotion activities, reaching over **620,000** consumers[107](index=107&type=chunk) Share Capital and Shareholder Information [Share Capital Structure](index=45&type=section&id=4.1%20Changes%20in%20Share%20Capital) By mid-2023, the bank's total share capital remained unchanged at **14.588 billion shares**, with domestic shares comprising **84.92%** and H-shares **15.08%** Share Class | Share Class | Number of Shares | % of Total Share Capital | | :--- | :--- | :--- | | **Domestic Shares** | 12,388,046,744 | 84.92% | | **H-Shares** | 2,200,000,000 | 15.08% | | **Total Share Capital** | 14,588,046,744 | 100.00% | [Major Shareholders and Share Pledges](index=46&type=section&id=4.2%20Shareholder%20Information) By mid-2023, the top two shareholders held **18.29%** and **12.00%** respectively, with significant share pledges by some major shareholders restricting voting rights for **6.23%** of total share capital Top Three Shareholders | Top Three Shareholders | Shareholding (%) | | :--- | :--- | | **Guizhou Provincial Department of Finance** | 18.29% | | **China Guizhou Maotai Distillery (Group) Co., Ltd.** | 12.00% | | **Zunyi State-owned Assets Investment and Financing Management Co., Ltd.** | 6.55% | - Major shareholder share pledge status: - **Zunyi State-owned Assets Investment and Financing Management Co., Ltd.**: Holds **955 million shares**, of which **475 million shares** (approx. **49.7%**) are pledged[133](index=133&type=chunk) - **Renhuai State-owned Assets Investment and Financing Management Co., Ltd.**: Holds **104 million shares**, of which **100 million shares** (approx. **95.9%**) are pledged[133](index=133&type=chunk) - Due to shareholders pledging **50%** or more of their holdings in the bank, the voting rights for a total of **909 million domestic shares** (accounting for **6.23%** of total share capital) held by **13** domestic shareholders are restricted[134](index=134&type=chunk) Directors, Supervisors, Senior Management, and Employees [Overview of Directors, Supervisors, and Senior Management](index=55&type=section&id=5.1%20Information%20on%20Directors,%20Supervisors%20and%20Senior%20Management) By the end of the reporting period, the bank's Board of Directors had **17** members, the Board of Supervisors **7**, and senior management **7**, with some personnel changes - The Board of Directors consists of **17** directors, including **3** executive directors, **7** non-executive directors, and **7** independent non-executive directors (of whom **5** new directors' qualifications are pending approval)[137](index=137&type=chunk)[138](index=138&type=chunk) - The Board of Supervisors consists of **7** supervisors, including **3** employee supervisors, **2** shareholder supervisors, and **2** external supervisors[140](index=140&type=chunk) - The senior management team comprises **7** members, including the President, **3** Vice Presidents, Board Secretary, Chief Compliance Officer, and Assistant President[142](index=142&type=chunk) [Employee Information](index=68&type=section&id=5.4%20Employee%20Information) By June 2023, the bank employed **5,366** staff, with over **70%** under **40** and **86.50%** holding bachelor's degrees or higher Employee Composition (As of June 30, 2023) | Employee Composition (As of June 30, 2023) | Number of Employees | % of Total | | :--- | :--- | :--- | | **Total Employees** | 5,366 | 100% | | **40 years old and below** | 3,789 | 70.61% | | **Female Employees** | 2,810 | 52.37% | | **Bachelor's degree and above** | 4,641 | 86.50% | Corporate Governance [Corporate Governance Overview](index=69&type=section&id=Chapter%206%20Corporate%20Governance) The bank maintained a robust corporate governance framework, complying with Hong Kong Listing Rules and ensuring effective oversight through its Board, Supervisory Board, and their respective committees - During the reporting period, the bank complied with all code provisions of the Corporate Governance Code in Appendix 14 of the Hong Kong Listing Rules[177](index=177&type=chunk) - The Board of Directors has six specialized committees: Strategy and Development, Audit, Nomination and Remuneration, Risk and Connected Transactions Management, Compliance Management, and ESG Management[183](index=183&type=chunk) - The Board of Supervisors has two specialized committees: the Supervision Committee and the Nomination, Remuneration and Appraisal Committee[187](index=187&type=chunk) - The bank adopted the "Model Code" to regulate securities transactions by directors, supervisors, and relevant employees, with all relevant personnel confirming compliance during the reporting period[191](index=191&type=chunk) Significant Matters [Dividends and Connected Transactions](index=77&type=section&id=7.1%20Profit%20and%20Dividends) The bank distributed a **875 million yuan** final dividend for 2022 but no 2023 interim dividend, while approving two significant connected transactions under fair terms - The bank distributed a final dividend for 2022 totaling **875 million yuan**, but will not declare an interim dividend for 2023[202](index=202&type=chunk) - Two significant connected transactions were approved during the reporting period, both conducted on terms no more favorable than comparable transactions with non-connected parties, in compliance with regulatory requirements[205](index=205&type=chunk) [Major Litigation and Penalties](index=78&type=section&id=7.3%20Major%20Litigation,%20Arbitration%20and%20Significant%20Cases%20During%20the%20Reporting%20Period) By mid-2023, the bank had **5** pending plaintiff cases totaling **1.982 billion yuan** and **2** defendant cases totaling **199 million yuan**, with no material adverse impact expected or significant penalties received Major Pending Litigation/Arbitration (As of June 30, 2023) | Major Pending Litigation/Arbitration (As of June 30, 2023) | Number of Cases | Principal Amount Involved (Million Yuan) | | :--- | :--- | :--- | | **As Plaintiff/Applicant** | 5 | 1,982 | | **As Defendant/Respondent** | 2 | 199 | - During the reporting period, the bank, its directors, supervisors, and senior management were not subject to investigations by competent authorities, compulsory measures, or significant administrative penalties[208](index=208&type=chunk) Interim Financial Information Review Report [Auditor's Review Opinion](index=80&type=section&id=Chapter%208%20Interim%20Financial%20Information%20Review%20Report) The bank's interim financial information received an unmodified review opinion from BDO Limited, Hong Kong, confirming its preparation in accordance with IAS 34 - BDO Limited, Hong Kong, issued an unmodified review report on the interim financial information[215](index=215&type=chunk)[217](index=217&type=chunk) - The scope of a review is significantly narrower than an audit, thus the auditor does not express an audit opinion[216](index=216&type=chunk) Financial Statements and Notes [Income Statement](index=83&type=section&id=Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) H1 2023 saw operating revenue grow **6.9%** to **6.430 billion yuan** and net profit increase **1.0%** to **2.206 billion yuan**, primarily driven by non-interest income Income Statement Summary (For the Six Months Ended June 30, 2023) | Income Statement Summary (For the Six Months Ended June 30, 2023) | Amount (Thousand Yuan) | YoY Change | | :--- | :--- | :--- | | **Net Interest Income** | 5,036,294 | -0.4% | | **Net Fee and Commission Income** | 201,536 | -19.9% | | **Operating Revenue** | 6,429,950 | +6.9% | | **Asset Impairment Losses** | (2,155,535) | +15.7% | | **Profit Before Tax** | 2,570,558 | +2.3% | | **Net Profit** | 2,206,348 | +1.0% | | **Total Comprehensive Income** | 2,826,046 | +25.4% | [Balance Sheet](index=85&type=section&id=Statement%20of%20Financial%20Position) By mid-2023, total assets reached **575.418 billion yuan** (+**7.8%**), driven by loans and deposits, with total equity growing **6.7%** Balance Sheet Summary (As of June 30, 2023) | Balance Sheet Summary (As of June 30, 2023) | Amount (Thousand Yuan) | Change from Beginning of Year | | :--- | :--- | :--- | | **Total Assets** | 575,418,143 | +7.8% | | **Loans and Advances** | 307,132,233 | +9.8% | | **Financial Investments** | 217,125,201 | +7.5% | | **Total Liabilities** | 528,496,898 | +7.9% | | **Deposits Absorbed** | 357,647,528 | +9.6% | | **Debt Instruments Issued** | 93,332,673 | +10.1% | | **Total Equity** | 46,921,245 | +6.7% | [Statement of Changes in Equity](index=87&type=section&id=Statement%20of%20Changes%20in%20Equity) By mid-2023, total equity reached **46.921 billion yuan**, primarily increasing from net profit and perpetual bond issuance, offset by **875 million yuan** in dividend distributions - Beginning-of-period total equity was **43.971 billion yuan**, increasing to **46.921 billion yuan** by period-end, a net increase of **2.951 billion yuan**[230](index=230&type=chunk) - Key items affecting equity changes include: - **Net Profit**: **+2.206 billion yuan** - **Other Comprehensive Income**: **+620 million yuan** - **Issuance of Perpetual Capital Bonds**: **+1 billion yuan** - **Appropriation to General Risk Reserve**: **+520 million yuan** (internal transfer) - **Distributions to Shareholders**: **-875 million yuan**[230](index=230&type=chunk) [Cash Flow Statement](index=89&type=section&id=Cash%20Flow%20Statement) H1 2023 saw operating cash flow improve to **392 million yuan**, driven by increased deposits, with significant financing cash inflows from bond issuance Cash Flow Statement Summary (For the Six Months Ended June 30, 2023) | Cash Flow Statement Summary (For the Six Months Ended June 30, 2023) | Amount (Thousand Yuan) | | :--- | :--- | | **Net Cash Flow from Operating Activities** | 391,913 | | **Net Cash Flow Used in Investing Activities** | (1,339,866) | | **Net Cash Flow from Financing Activities** | 8,279,051 | | **Net Increase in Cash and Cash Equivalents** | 7,335,350 | | **Cash and Cash Equivalents at End of Period** | 62,163,586 | Supplementary Financial Information [Regulatory Indicators](index=188&type=section&id=1%20Liquidity%20Coverage%20Ratio%20and%20Leverage%20Ratio) By mid-2023, the bank's liquidity coverage ratio of **374.64%** and leverage ratio of **7.77%** significantly exceeded regulatory requirements, indicating strong financial health Regulatory Indicators | Regulatory Indicators | June 30, 2023 | Regulatory Requirement | | :--- | :--- | :--- | | **Liquidity Coverage Ratio** | 374.64% | ≥ 100% | | **Leverage Ratio** | 7.77% | ≥ 4% |

Financial Performance - The total assets of Guizhou Bank reached CNY 533.78 billion by the end of 2022, with total loans amounting to CNY 293.53 billion and total deposits of CNY 326.32 billion[33]. - The bank achieved an operating income of CNY 11.99 billion and a net profit of CNY 3.83 billion for the year, with a tax contribution of CNY 2.38 billion[33]. - Net profit for 2022 was RMB 3,829.46 million, representing a 3.34% increase from RMB 3,705.71 million in 2021[46]. - Total operating income reached RMB 11,989.98 million, reflecting a growth of 2.15% from RMB 11,737.16 million in the previous year[46]. - The bank's total liabilities reached RMB 489,810.81 million, an increase of 5.36% from RMB 464,892.34 million in 2021[47]. - The bank's net profit for the period was CNY 3.83 billion, an increase of CNY 124 million, which is a growth of 3.34% compared to the previous year[53]. - The total amount of loans and advances was CNY 293.53 billion, an increase of CNY 43.04 billion, reflecting a growth of 17.18% year-on-year[53]. - The bank's total operating income for the year ended December 31, 2022, was RMB 11,989.98 million, a slight increase from RMB 11,737.16 million as of December 31, 2021[131]. Loan and Deposit Growth - The balance of loans to the real economy reached CNY 176.07 billion, an increase of 22.42% year-on-year[24]. - The balance of inclusive small and micro enterprise loans reached CNY 37.935 billion, growing by 36.04%, with the number of loan accounts increasing by 78.12% to 32,700[27]. - The total personal deposits reached CNY 149.106 billion, an increase of CNY 27.393 billion, or 22.51% year-to-date[62]. - Personal loan balance increased to RMB 38.902 billion, up RMB 4.989 billion, with a growth rate of 14.71%[123]. - The balance of loans supporting rural revitalization was CNY 50.949 billion, an increase of CNY 4.056 billion, or 8.65% year-to-date[59]. - The balance of green loans for corporate clients was CNY 46.42 billion, with a growth rate of 33.16%, accounting for 21.52% of corporate loans[24]. - The balance of financing for the real economy was CNY 176.070 billion, an increase of CNY 32.247 billion, or 22.42% year-to-date[57]. Risk Management - The non-performing loan ratio stood at 1.47%, with a provision coverage ratio of 351.21%, both exceeding the national average for commercial banks[33]. - The bank's non-performing loans (NPL) amounted to RMB 43.22 billion, an increase of RMB 14.41 billion, resulting in a non-performing loan ratio of 1.47%, up by 0.32 percentage points from the previous year[121]. - The bank's focus on risk management led to an increase in the amount of loans under special attention to RMB 79.04 billion, up by RMB 29.58 billion year-over-year[121]. - The company has established a comprehensive risk management policy to enhance credit risk management and optimize the credit management organizational structure[135]. - The bank has established a "three lines of defense" framework for operational risk management, with the first line being business departments responsible for direct management[140]. Digital Transformation - The bank's digital transformation efforts included the establishment of a dedicated digital finance department and a three-year digital transformation plan, enhancing online service capabilities[29]. - The bank's digital transformation efforts led to significant improvements in operational support capabilities and system security, achieving the longest continuous and secure operation record since its establishment[38]. - The bank aims to enhance its digital transformation strategy, focusing on integrating financial technology with business management to improve service efficiency and competitiveness[50]. - The bank's digital transformation efforts led to significant improvements in data support capabilities, with zero late reports for regulatory submissions in 2022[163]. Green Finance Initiatives - The company is committed to the development of green finance, aligning with the "green bank," "Equator bank," and "carbon-neutral bank" strategies[24]. - The issuance of the second batch of CNY 3 billion green financial bonds was successfully completed[24]. - The bank's green loan balance reached CNY 46.630 billion, an increase of CNY 11.659 billion, with a growth rate of 33.34%[165]. - The bank issued green financial bonds worth CNY 3 billion to support key projects in modern industry, water quality improvement, ecological tourism, and green agriculture[165]. Customer Engagement and Services - The number of personal deposit customers exceeded 10.88 million, marking a significant milestone[25]. - A total of 2.71 million third-generation social security cards were issued, ranking second in the province with a market share of 14.68%[25]. - The bank conducted 2,733 consumer education activities, distributing 157,800 promotional materials, reaching 1.5045 million consumers[160]. - The bank received a total of 1,836 customer complaints, achieving a resolution rate of 100%[161]. - The bank organized 744 sessions focused on inclusive financial knowledge, reaching 108,700 consumers and distributing 75,200 promotional materials[166]. Shareholder Structure - As of December 31, 2022, the total share capital of the bank was 14,588,046,744 shares, with 12,388,046,744 domestic shares (84.92%) and 2,200,000,000 H shares (15.08%)[170]. - The top shareholder, Guizhou Provincial Finance Department, held 2,668,500,000 shares, representing 18.29% of the total issued shares[172]. - The ownership structure reflects a concentration of shares among a few major state-owned entities[175]. - The largest shareholder, Qianxinan Prefecture State-owned Assets Supervision and Administration Commission, holds 310,487,000 H shares, representing 14.11% of the total issued share capital[174].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 截至2022年12月31日止年度之年度業績公告 貴州銀行股份有限公司*（「本行」）董事會（「董事會」）欣然宣佈本行截至2022年12月31日止 年度的年度業績，連同2021年同期的比較數字。 會計數據和財務指標摘要 截至12月31日止年度 2022年比 2022年 2021年 2021年 2020年 2019年 2018年 （除另有註明外，以人民幣百萬元列示） 經營業績 利息淨收入 10,094.21 9,514.49 6.09% 10,121.39 9,870.96 8,326.29 手續費及佣金淨收入 363.13 427.87 (15.13%) 362.52 94.64 21.30 營業收入 11,989.98 11,737.16 2.15% 11,247.61 10,705.53 8,769.61 營業費用 (3,836.78) (3,729.77) 2.87% (3,555.74) (3,42 ...

Regulatory Approvals and Listings - Bank of Guizhou received approval from the China Banking and Insurance Regulatory Commission for its financial license B1383H252010001[16] - The bank's H shares were first listed on the Hong Kong Stock Exchange on December 30, 2019[18] Financial Performance - Total assets reached RMB 528.27 billion, an increase of 4.84% compared to the end of 2021[23] - Net interest income for the first half of 2022 was RMB 5.06 billion, up 7.55% from RMB 4.70 billion in 2021[22] - Net profit for the first half of 2022 was RMB 2.18 billion, representing a 2.79% increase from RMB 2.13 billion in 2021[22] - The bank achieved an operating income of CNY 6.015 billion, a year-on-year increase of CNY 296 million, representing a growth rate of 5.18%[27] - Net profit reached CNY 2.185 billion, up CNY 59 million from the previous year, with a growth rate of 2.79%[27] - The bank's financial investment net amount reached 197.715 billion yuan, an increase of 8.703 billion yuan, with a growth rate of 4.60%[44] Asset Quality and Risk Management - Non-performing loan ratio stood at 1.17%, slightly up from 1.15% at the end of 2021[23] - Provision coverage ratio improved to 432.54%, up from 426.41% at the end of 2021[23] - The bank's asset quality remained stable, supported by a robust credit policy and risk control measures in key areas[106] - The bank's credit risk management framework includes a three-line defense system, ensuring effective oversight and management of credit risks[106] Customer Deposits and Loans - Customer deposits totaled RMB 324.38 billion, a growth of 6.17% from RMB 305.52 billion at the end of 2021[23] - Total loans and advances reached RMB 278.55 billion, an increase of 11.21% from RMB 250.49 billion at the end of 2021[23] - The balance of inclusive small micro loans was 33.582 billion yuan, up 5.696 billion yuan, a growth rate of 20.43%[40] Operational Efficiency - The cost-to-income ratio improved to 26.04%, down from 28.98% in 2021[22] - The bank's electronic channel financial transactions accounted for 99.09%, totaling 202 million transactions, a year-on-year increase of 45.98%[42] Corporate Governance - The board of directors consists of 15 members, including 3 executive directors, 5 non-executive directors, and 7 independent non-executive directors[152] - The company is committed to enhancing corporate governance in accordance with regulatory requirements, which is essential for risk prevention and high-quality development[198] - The company has adhered to the corporate governance code as per the Hong Kong Listing Rules during the reporting period[198] Shareholder Information - The total share capital of the company as of June 30, 2022, is 14,588,046,744 shares, consisting of 12,388,046,744 domestic shares (84.92%) and 2,200,000,000 H shares (15.08%)[126] - Guizhou Provincial Finance Department holds approximately 20.33% of the total issued shares of the company[130] Employee and Training Initiatives - As of June 2022, the bank had a total of 5,269 contracted employees, with 33.92% aged 30 or below and 52.53% being female[190] - During the reporting period, the bank trained a total of 984 employees across various departments, and 1,118 employees obtained job qualification certificates[192] Community Engagement and Social Responsibility - The company has actively participated in social welfare activities, conducting 41 volunteer service activities benefiting approximately 3,000 people[125] - A total of 744 activities were held to promote inclusive financial knowledge, reaching 108,700 consumers and distributing 75,200 promotional materials[125]

Financial Performance - Total assets of Bank of Guizhou reached CNY 503.88 billion, an increase of 10.40% year-on-year[25]. - Total loans and advances amounted to CNY 250.49 billion, reflecting a growth of 17.09%[25]. - Total deposits reached CNY 305.52 billion, with a growth rate of 5.70%[25]. - Annual operating income was CNY 11.74 billion, marking a 4.35% increase[25]. - Net profit for the year was CNY 3.71 billion, with a growth of 0.95%[25]. - Return on average total assets (ROA) was 0.77% and return on equity (ROE) was 9.88%[25]. - Non-performing loan ratio stood at 1.15%, with a provision coverage ratio of 426.41%[25]. - Operating income was CNY 11.74 billion, with a growth rate of 4.35%[32]. - Net profit reached CNY 3.71 billion, an increase of 0.95%[32]. - The non-performing loan ratio maintained at 1.15%, indicating stable asset quality[32]. - Coverage ratio for provisions increased to 426.41%, up by 92.05 percentage points from the beginning of the year[32]. - The bank achieved a pre-tax profit of CNY 4.19 billion and a net profit of CNY 3.71 billion for the year 2021[38]. - Net interest income for 2021 was RMB 9,514.49 million, a decrease from RMB 10,121.39 million in 2020[42]. - Total operating income reached RMB 11,737.16 million, reflecting a growth of 4.35% compared to RMB 11,247.61 million in 2020[42]. - Net profit for the year was RMB 3,705.71 million, slightly up from RMB 3,670.66 million in 2020, indicating a growth rate of 0.95%[42]. - The average return on total assets was 0.77%, down from 0.85% in 2020[42]. - The basic earnings per share remained stable at RMB 0.25, consistent with the previous year[42]. Risk Management - The bank has established a comprehensive risk management system, maintaining good asset quality and stability in regulatory ratings[34]. - The bank's liquidity risk management framework is robust, with no liquidity risk events reported during the period, ensuring compliance with regulatory requirements[123]. - The bank has implemented a comprehensive credit risk management strategy, focusing on supporting private and small enterprises affected by the pandemic[121]. - The bank's risk management includes a proactive approach to identifying and mitigating operational risks, with no significant operational risk events reported[126]. - The bank's market risk management focuses on interest rate risk, utilizing gap analysis and stress testing to monitor and control exposure[125]. - The bank's operational risk management framework includes a three-line defense model to enhance risk control and compliance[126]. - The bank has established a self-assessment mechanism for information technology risk control, requiring departments to identify, register, and assess IT-related risks[127]. - The bank has implemented a strict legal review system to provide timely and professional legal support for new product development and major projects, effectively preventing legal risks[128]. - The bank has enhanced its compliance risk management system, focusing on major risk areas and ensuring compliance with regulations, with no major compliance risk events reported[130]. Business Strategy and Development - The bank aims to enhance business transformation and expand customer base, focusing on supply chain finance[26]. - The strategy includes improving retail business efficiency and expanding market presence in urban and rural areas[26]. - The bank is positioned to leverage new national policies for high-quality development in Guizhou[24]. - The bank is focused on expanding its business transformation and enhancing service quality in line with the new national development policies[34]. - The bank aims to leverage opportunities from the new national development policies to drive high-quality development and service the economic growth of Guizhou Province[34]. - The bank's focus on high-quality development includes transforming corporate business and expanding retail operations[107]. - The company aims to enhance its green finance initiatives and strengthen its brand as a leading corporate bank, focusing on key projects and advantageous industries[143]. - The company plans to expand its rural market presence and improve customer management, aiming to enrich product offerings and accelerate the development of its retail business[143]. - The company is committed to optimizing its online service network and enhancing service accessibility through a "online + offline" service channel strategy[143]. Customer Engagement and Digital Transformation - The bank's digital transformation efforts have been recognized with awards, including the "Outstanding Contribution Award for Financial Scene Construction" from the People's Bank of China[34]. - The bank's mobile banking users reached 4.44 million, an increase of 29.85%, with monthly active users (MAU) at 561,500, up 40%[119]. - The electronic channel financial transaction volume accounted for 98.84%, totaling 312 million transactions, a year-on-year increase of 56.78%[119]. - The bank launched several new credit products, including "Yin Xue Bao" and "Yin Cai Dai," enhancing its product offerings and supporting small and micro business development[120]. - The bank's wealth management products reached a total sales of CNY 70.89 billion for the year, with a net value ratio of 100%, successfully meeting regulatory requirements ahead of schedule[118]. Shareholder Structure and Governance - As of December 31, 2021, the total share capital of the company was 14,588,046,744 shares, consisting of 12,388,046,744 domestic shares (84.92%) and 2,200,000,000 H shares (15.08%)[144]. - The top ten domestic shareholders held significant stakes, with the Guizhou Provincial Finance Department owning 2,518,500,000 shares (17.26%) and China Guizhou Moutai Distillery (Group) Co., Ltd. holding 1,750,000,001 shares (12.00%)[146]. - The company has a diverse shareholder base, including state-owned enterprises and investment management firms[156]. - The bank's board includes nominees from various government entities, indicating strong governmental influence in corporate governance[167]. - The bank has a structured governance framework with clear roles for executive, non-executive, and independent directors[172]. - The company is actively managing its board composition to ensure compliance with Chinese regulations[174]. - The bank's governance structure includes a supervisory board and independent directors to ensure compliance and oversight[198]. Community and Environmental Impact - The bank provided a total of 7.853 billion yuan in rural revitalization loans, supporting the strategy to enhance farmers' income in Guizhou Province[140]. - The outstanding balance of microloans reached 35.33 billion yuan, an increase of 6.453 billion yuan, representing a year-on-year growth of 22.35%[140]. - The bank supported 237 energy-saving and environmental protection projects, contributing to a reduction of carbon emissions by 3.8162 million tons during the reporting period[141]. - The bank aims to become a leading green bank by 2025, with a focus on green finance as a strategic development direction[141].