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].

[Chapter 1 Leadership Speeches](index=5&type=section&id=%E7%AC%AC%E4%B8%80%E7%AB%A0%20%E9%A0%98%E5%B0%8E%E8%87%B4%E8%BE%AD) [Speech by the Party Committee Secretary](index=5&type=section&id=%E9%BB%A8%E5%A7%94%E6%9B%B8%E8%A8%98%E8%87%B4%E8%BE%AD) The Party Committee Secretary reviewed 2020 achievements in pandemic response and economic support, outlining five strategic pillars for the Bank's high-quality future development - In 2020, facing the pandemic challenge, the company coordinated epidemic prevention and control with transformation and development, fully implementing "six stabilities" and "six guarantees" policies, demonstrating corporate responsibility[23](index=23&type=chunk) - Future development will focus on five core areas: - **Corporate governance**: Strictly implement regulatory requirements, enhance internal management, and practice ESG principles - **Distinctive features**: Develop green finance around "carbon peaking" and "carbon neutrality", coordinate urban and rural markets, and vigorously develop financial technology - **Serving local economy**: Adhere to local market positioning and fully serve Guizhou Province's economic and social development - **Risk prevention and control**: Uphold bottom-line thinking, advance new capital agreement construction, and enhance digital risk control capabilities - **Party building**: Uphold Party leadership and deeply integrate Party building with business[23](index=23&type=chunk)[24](index=24&type=chunk) [Speech by the President](index=7&type=section&id=%E8%A1%8C%E9%95%B7%E8%87%B4%E8%BE%AD) The President summarized 2020 operating performance, noting steady growth in assets, loans, and deposits, a 3.00% net profit increase, and significant progress in retail, income diversification, and risk control 2020 Key Operating Performance | Indicator | Amount (Billion Yuan) | Growth Rate from Beginning of Year | | :--- | :--- | :--- | | Total Assets | 4,564.01 | 11.48% | | Total Loans and Advances | 2,139.23 | 18.93% | | Deposits Accepted | 2,890.43 | 11.06% | | Operating Income | 112.48 | 5.06% | | Net Profit | 36.71 | 3.00% | - Retail business grew rapidly, with personal deposits exceeding **100 billion yuan**, reaching **101.633 billion yuan**, a **24.52% increase** from the beginning of the year[26](index=26&type=chunk) - Income structure significantly improved, with net fee and commission income increasing by **283.05% year-on-year**, and non-interest income proportion rising to **10.01%**[26](index=26&type=chunk) - Asset quality remained excellent, with a non-performing loan ratio of **1.15%** and a provision coverage ratio of **334.36%** at the end of the reporting period, ranking among the top urban commercial banks nationwide[28](index=28&type=chunk) [Chapter 2 Company Profile](index=9&type=section&id=%E7%AC%AC%E4%BA%8C%E7%AB%A0%20%E5%85%AC%E5%8F%B8%E7%B0%A1%E4%BB%8B) [Basic Information](index=9&type=section&id=1.%20%E5%9F%BA%E6%9C%AC%E8%B3%87%E6%96%99) This section provides Bank of Guizhou's fundamental corporate details, including its legal name, registered address, and stock code - Bank of Guizhou Co., Ltd. (BANK OF GUIZHOU CO., LTD.) is listed on the Main Board of the Hong Kong Stock Exchange, with stock code **6199.HK**[29](index=29&type=chunk) [Company Introduction](index=10&type=section&id=2.%20%E5%85%AC%E5%8F%B8%E7%B0%A1%E4%BB%8B) Bank of Guizhou, formed in 2012, is Guizhou's first internationally listed financial institution, with 456.401 billion yuan in assets by 2020 and full provincial county-level coverage, ranking 270th globally Key Data as of End of 2020 | Indicator | Value | | :--- | :--- | | Total Assets | 4,564.01 Billion Yuan | | Total Deposits Accepted | 2,890.43 Billion Yuan | | Total Loans and Advances | 2,139.23 Billion Yuan | | Net Profit | 36.71 Billion Yuan | | Non-performing Loan Ratio | 1.15% | | Provision Coverage Ratio | 334.36% | | Number of Licensed Institutions | 223 | | Number of Full-time Employees | 5,169 | - Bank of Guizhou ranked **270th** in The Banker magazine's 'Top 1000 World Banks 2020' and **43rd** in the China Banking Association's 'Top 100 Chinese Banks 2020'[30](index=30&type=chunk) [Major Awards in 2020](index=11&type=section&id=3.%202020%E5%B9%B4%E4%B8%BB%E8%A6%81%E7%8D%B2%E7%8D%8E%E6%83%85%E5%86%B5) The Bank received multiple accolades in 2020, including top global and Chinese bank rankings, and awards for regional influence and mobile banking innovation - Ranked **270th** in The Banker magazine's 'Top 1000 World Banks 2020'[31](index=31&type=chunk) - Ranked **43rd** in the China Banking Association's 'Top 100 Chinese Banks 2020'[31](index=31&type=chunk) - Awarded 'Best Mobile Banking Innovation of the Year 2020' by China Financial Certification Authority[31](index=31&type=chunk) [Chapter 3 Summary of Accounting Data and Financial Indicators](index=12&type=section&id=%E7%AC%AC%E4%B8%89%E7%AB%A0%20%E6%9C%83%E8%A8%88%E6%95%B8%E6%93%9A%E5%92%8C%E8%B2%A1%E5%8B%99%E6%8C%87%E6%A8%99%E6%91%98%E8%A6%81) [Summary of Accounting Data and Financial Indicators](index=12&type=section&id=%E6%9C%83%E8%A8%88%E6%95%B8%E6%93%9A%E5%92%8C%E8%B2%A1%E5%8B%99%E6%8C%87%E6%A8%99%E6%91%98%E8%A6%81) In 2020, Bank of Guizhou's total assets grew 11.48% to 456.401 billion yuan, with operating income up 5.06% and net profit up 3.00%, maintaining stable asset quality with a 1.15% non-performing loan ratio 2020 Key Financial Indicators | Indicator | 2020 | 2019 | Change | | :--- | :--- | :--- | :--- | | **Operating Performance (Million Yuan)** | | | | | Operating Income | 11,247.61 | 10,705.53 | +5.06% | | Net Profit | 3,670.66 | 3,563.64 | +3.00% | | **Scale Indicators (Million Yuan)** | | | | | Total Assets | 456,401.20 | 409,388.80 | +11.48% | | Total Loans and Advances | 213,922.91 | 179,867.72 | +18.93% | | Deposits Accepted | 289,042.77 | 260,266.47 | +11.06% | | Total Equity | 36,027.82 | 33,889.24 | +6.31% | | **Asset Quality Indicators** | | | | | Non-performing Loan Ratio | 1.15% | 1.18% | -0.03pp | | Provision Coverage Ratio | 334.36% | 324.95% | +9.41pp | | **Profitability Indicators** | | | | | Average Return on Total Assets | 0.85% | 0.95% | -0.10pp | | Average Return on Equity | 10.50% | 12.01% | -1.51pp | | **Capital Adequacy Ratio** | | | | | Core Tier 1 Capital Adequacy Ratio | 11.63% | 12.30% | -0.67pp | | Capital Adequacy Ratio | 13.67% | 14.45% | -0.78pp | [Chapter 4 Management Discussion and Analysis](index=15&type=section&id=%E7%AC%AC%E5%9B%9B%E7%AB%A0%20%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) [Macroeconomic Environment and Policies](index=15&type=section&id=4.1%20%E7%B6%93%E6%BF%9F%E9%87%91%E8%9E%8D%E8%88%87%E6%94%BF%E7%AD%96%E7%92%B0%E5%A2%83) In 2020, China achieved 2.3% GDP growth, with Guizhou at 4.5%, while policies focused on interest rate liberalization, capital replenishment for smaller banks, and increased support for micro enterprises - In 2020, China's GDP grew by **2.3%**, and Guizhou Province's GDP grew by **4.5%**, **2.2 percentage points higher** than the national average[36](index=36&type=chunk) - The policy environment showed three main characteristics: deepening interest rate liberalization reform, favorable capital replenishment policies for small and medium-sized banks, and guidance to increase financial support for small and micro enterprises[36](index=36&type=chunk) [Overall Operating Performance Analysis](index=15&type=section&id=4.2%20%E7%B8%BD%E9%AB%94%E7%B6%93%E7%87%9F%E6%83%85%E6%B3%81%E5%88%86%E6%9E%90) In 2020, the Bank's overall operations improved with double-digit growth in assets, loans, and deposits, steady increases in income and profit, and excellent asset quality with a lower non-performing loan ratio 2020 Operating Performance Overview | Indicator | End of 2020 (Billion Yuan) | Year-on-Year Growth Rate | | :--- | :--- | :--- | | Total Assets | 4,564.01 | 11.48% | | Total Loans and Advances | 2,139.23 | 18.93% | | Total Deposits Accepted | 2,890.43 | 11.06% | | Operating Income | 112.48 | 5.06% | | Net Profit | 36.71 | 3.00% | - Asset quality remained excellent, with a non-performing loan ratio of **1.15%**, a **0.03 percentage point decrease** from the previous year; provision coverage ratio was **334.36%**, a **9.41 percentage point increase** from the previous year[37](index=37&type=chunk) [Income Statement Analysis](index=16&type=section&id=4.3%20%E5%88%A9%E6%BD%A4%E8%A1%A8%E5%88%86%E6%9E%90) In 2020, the Bank's pre-tax profit rose 6.45% to 4.355 billion yuan and net profit increased 3.00%, driven by strong non-interest income growth, particularly a 283.05% rise in net fee and commission income, despite a narrowing net interest margin 2020 Income Statement Summary (Unit: Million Yuan) | Item | 2020 | 2019 | Change Rate | | :--- | :--- | :--- | :--- | | Net Interest Income | 10,121.39 | 9,870.96 | 2.54% | | Net Fee and Commission Income | 362.52 | 94.64 | 283.05% | | **Operating Income** | **11,247.61** | **10,705.53** | **5.06%** | | Operating Expenses | (3,555.74) | (3,422.11) | 3.90% | | Asset Impairment Losses | (3,231.79) | (3,172.77) | 1.86% | | **Pre-tax Profit** | **4,355.30** | **4,091.39** | **6.45%** | | **Net Profit** | **3,670.66** | **3,563.64** | **3.00%** | [Net Interest Income, Net Interest Margin, and Net Interest Yield](index=17&type=section&id=4.3.1%20%E5%88%A9%E6%81%AF%E6%B7%A8%E6%94%B6%E5%85%A5%E3%80%81%E6%B7%A8%E6%81%AF%E5%B7%AE%E5%8F%8A%E6%B7%A8%E5%88%A9%E6%81%AF%E6%94%B6%E7%9B%8A%E7%8E%87) In 2020, net interest income grew 2.54% to 10.121 billion yuan, but net interest margin and yield narrowed due to market rate changes, with growth primarily driven by asset scale expansion Interest Yield and Margin | Indicator | 2020 | 2019 | | :--- | :--- | :--- | | Net Interest Margin | 2.44% | 2.75% | | Net Interest Yield | 2.55% | 2.82% | - The growth in net interest income was primarily driven by scale effects (contributing **1.511 billion yuan**), but was partially offset by the negative impact of interest rate changes (**-1.261 billion yuan**)[44](index=44&type=chunk) [Interest Income Analysis](index=19&type=section&id=4.3.2%20%E5%88%A9%E6%81%AF%E6%94%B6%E5%85%A5%E5%88%86%E6%9E%90) In 2020, interest income increased 9.32% to 19.967 billion yuan, mainly from loans and advances which grew 16.44% due to expanded loan scale, while financial investment income slightly rose - Interest income from loans and advances was **11.867 billion yuan**, a **16.44% year-on-year increase**, primarily due to expanded corporate and personal loan scales[48](index=48&type=chunk) - Interest income from financial investments was **7.285 billion yuan**, a **1.99% year-on-year increase**[47](index=47&type=chunk) [Interest Expense Analysis](index=20&type=section&id=4.3.3%20%E5%88%A9%E6%81%AF%E6%94%AF%E5%87%BA%E5%88%86%E6%9E%90) In 2020, interest expense rose 17.30% to 9.846 billion yuan, primarily due to increased interest on deposits and interbank funds reflecting liability expansion, while issued bond interest expense decreased - Interest expense on deposits accepted was **6.485 billion yuan**, a significant **48.07% year-on-year increase**, primarily due to increased deposit scale[52](index=52&type=chunk) - Interest expense on issued bonds was **2.153 billion yuan**, a **37.73% year-on-year decrease**, primarily due to reduced scale and interest rates of interbank certificates of deposit[52](index=52&type=chunk) [Non-Interest Income Analysis](index=21&type=section&id=4.3.4%20%E9%9D%9E%E5%88%A9%E6%81%AF%E6%94%B6%E5%85%A5%E5%88%86%E6%9E%90) In 2020, non-interest income showed strong performance, with net fee and commission income surging 283.05% to 363 million yuan, driven by agency and guarantee businesses, while net trading gains also increased Net Fee and Commission Income Composition (Unit: Million Yuan) | Item | 2020 | 2019 | Change Rate | | :--- | :--- | :--- | :--- | | Agency business income | 209.73 | 100.68 | 108.31% | | Guarantee and commitment business income | 125.55 | 31.58 | 297.56% | | Bank card business income | 46.04 | 33.63 | 36.90% | | **Net fee and commission income** | **362.52** | **94.64** | **283.05%** | - Net trading gains were **145 million yuan**, a **24.29% year-on-year increase**[54](index=54&type=chunk) [Operating Expenses Analysis](index=22&type=section&id=4.3.5%20%E7%87%9F%E6%A5%AD%E8%B2%BB%E7%94%A8%E5%88%86%E6%9E%90) In 2020, operating expenses increased by 3.90% to 3.556 billion yuan, reflecting good cost control, with employee costs slightly up and office expenses down Operating Expenses Composition (Unit: Million Yuan) | Item | 2020 | 2019 | Change Rate | | :--- | :--- | :--- | :--- | | Employee costs | 2,165.67 | 2,122.06 | 2.06% | | Office expenses | 353.31 | 413.21 | -14.50% | | Other general and administrative expenses | 374.40 | 268.15 | 39.62% | | **Total operating expenses** | **3,555.74** | **3,422.11** | **3.90%** | [Asset Impairment Losses](index=23&type=section&id=4.3.6%20%E8%B3%87%E7%94%A2%E6%B8%9B%E5%80%BC%E6%90%8D%E5%A4%B1) In 2020, asset impairment losses slightly increased by 1.86% to 3.232 billion yuan, mainly due to higher losses on loans and financial investments, partially offset by reversals in other areas Asset Impairment Losses Composition (Unit: Million Yuan) | Item | 2020 | 2019 | Change Amount | | :--- | :--- | :--- | :--- | | Loans and advances | 2,108.03 | 2,012.15 | 95.88 | | Financial investments | 1,041.29 | 828.06 | 213.23 | | Credit commitments | 59.61 | 136.18 | (76.57) | | **Total** | **3,231.79** | **3,172.77** | **59.02** | [Income Tax](index=23&type=section&id=4.3.7%20%E6%89%80%E5%BE%97%E7%A8%85) In 2020, income tax expense rose 29.73% to 685 million yuan, primarily due to a 51.05% increase in current income tax expense, with a stronger offsetting effect from deferred income tax Income Tax Expense Composition (Unit: Million Yuan) | Item | 2020 | 2019 | Change Rate | | :--- | :--- | :--- | :--- | | Current income tax expense | 1,235.35 | 817.84 | 51.05% | | Deferred income tax expense | (550.71) | (290.09) | 89.84% | | **Income tax** | **684.64** | **527.75** | **29.73%** | [Balance Sheet Analysis](index=24&type=section&id=4.4%20%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E8%A1%A8%E4%B8%BB%E8%A6%81%E9%A0%85%E7%9B%AE%E5%88%86%E6%9E%90) As of 2020-end, total assets grew to 456.401 billion yuan, with loans and financial investments as key components, while total liabilities reached 420.373 billion yuan, primarily deposits, and total equity increased by 6.31% [Asset Analysis](index=24&type=section&id=4.4.1%20%E8%B3%87%E7%94%A2) As of 2020-end, total assets reached 456.401 billion yuan, up 11.48%, driven by an 18.93% increase in loans and advances and a 29.91% rise in financial investments, shifting asset allocation towards investment assets Asset Structure (Unit: Million Yuan) | Item | End of 2020 | Proportion | End of 2019 | Proportion | | :--- | :--- | :--- | :--- | :--- | | Net loans and advances | 206,152.61 | 45.17% | 173,349.70 | 42.34% | | Financial investments | 192,309.00 | 42.14% | 148,034.04 | 36.16% | | Cash and balances with central banks | 48,149.56 | 10.55% | 64,150.81 | 15.67% | | **Total assets** | **456,401.20** | **100.00%** | **409,388.80** | **100.00%** | [Liability Analysis](index=28&type=section&id=4.4.2%20%E8%B2%A0%E5%80%B5) As of 2020-end, total liabilities reached 420.373 billion yuan, up 11.95%, with deposits accepted as the main source, while interbank deposits significantly increased and issued bonds decreased, reflecting liability structure adjustments Liability Structure (Unit: Million Yuan) | Item | End of 2020 | Proportion | End of 2019 | Proportion | | :--- | :--- | :--- | :--- | :--- | | Deposits accepted | 289,042.77 | 68.76% | 260,266.47 | 69.31% | | Issued bonds | 55,836.38 | 13.28% | 84,122.73 | 22.40% | | Deposits from interbank and other financial institutions | 29,995.72 | 7.14% | 16,107.37 | 4.29% | | Borrowings from central bank | 26,641.75 | 6.34% | 2,623.42 | 0.70% | | **Total liabilities** | **420,373.38** | **100.00%** | **375,499.56** | **100.00%** | [Equity Analysis](index=30&type=section&id=4.4.3%20%E6%AC%8A%E7%9B%8A) As of 2020-end, total shareholders' equity grew 6.31% to 36.028 billion yuan, primarily from increased surplus reserves, general reserves, and retained earnings, benefiting from the year's profitability Shareholders' Equity Composition (Unit: Million Yuan) | Item | End of 2020 | End of 2019 | | :--- | :--- | :--- | | Share capital | 14,588.05 | 14,588.05 | | Capital reserve | 8,840.11 | 8,840.11 | | Retained earnings | 7,015.79 | 5,443.36 | | **Total equity** | **36,027.82** | **33,889.24** | [Loan Quality Analysis](index=31&type=section&id=4.6%20%E8%B2%B8%E6%AC%BE%E5%93%81%E8%B3%AA%E5%88%86%E6%9E%90) As of 2020-end, loan quality remained stable with a 1.15% non-performing loan ratio, despite an increase in special mention and non-performing balances due to the pandemic, as the Bank optimized credit structure and disposed of non-performing assets Loan Five-Category Classification | Category | End of 2020 Balance (Million Yuan) | Proportion | End of 2019 Balance (Million Yuan) | Proportion | | :--- | :--- | :--- | :--- | :--- | | Normal | 209,602.92 | 97.98% | 176,339.23 | 98.04% | | Special Mention | 1,863.60 | 0.87% | 1,399.93 | 0.78% | | **Non-performing loans** | **2,456.39** | **1.15%** | **2,128.56** | **1.18%** | - Corporate loan non-performing ratio was **1.27%**, and personal loan non-performing ratio was **1.29%**, with increases in personal operating loans and credit card non-performing ratios due to the pandemic, but overall controllable[83](index=83&type=chunk) - The largest single borrower's loan balance was **2.033 billion yuan**, accounting for **5.64%** of net capital; the total loans to the top ten largest single borrowers accounted for **9.61%** of total loans, with concentration meeting regulatory requirements[88](index=88&type=chunk) [Segment Reporting](index=36&type=section&id=4.7%20%E5%88%86%E9%83%A8%E5%A0%B1%E5%91%8A) The Bank's three main segments are corporate, retail, and treasury, with corporate banking contributing 65.00% of operating income and 76.04% of pre-tax profit in 2020, while retail and treasury segments showed increased revenue proportions 2020 Operating Income and Proportion by Business Segment | Business Segment | Operating Income (Million Yuan) | Percentage of Total | | :--- | :--- | :--- | | Corporate Banking Business | 7,311.23 | 65.00% | | Retail Banking Business | 1,729.59 | 15.38% | | Treasury Business | 2,251.64 | 20.02% | | Other Businesses | (44.85) | (0.40)% | [Capital Adequacy Ratio and Leverage Ratio Analysis](index=38&type=section&id=4.8%20%E8%B3%87%E6%9C%AC%E5%85%85%E8%B6%B3%E7%8E%87%E8%88%87%E5%8B%9D%E6%A1%BF%E7%8E%87%E5%88%86%E6%9E%90) As of 2020-end, the Bank's capital adequacy ratio was 13.67%, with Tier 1 and Core Tier 1 ratios at 11.63%, all meeting regulatory requirements and maintaining a solid capital base despite a slight decrease from 2019 Capital Adequacy Ratio Indicators | Indicator | End of 2020 | End of 2019 | | :--- | :--- | :--- | | Core Tier 1 Capital Adequacy Ratio | 11.63% | 12.30% | | Tier 1 Capital Adequacy Ratio | 11.63% | 12.30% | | Capital Adequacy Ratio | 13.67% | 14.45% | [Business Overview](index=39&type=section&id=4.9%20%E6%A5%AD%E5%8B%99%E7%B6%9C%E8%BF%B0) In 2020, the Bank made significant progress in corporate, retail, and inclusive finance, enhanced financial market profitability, and successfully launched a new information system, becoming the sixth 'Equator Bank' in China - **Corporate Business**: Real economy financing balance of **94.295 billion yuan**, an increase of **17.16%**; green loan balance of **22.852 billion yuan**, an increase of **25.68%**; became the **sixth 'Equator Bank'** in China[94](index=94&type=chunk)[95](index=95&type=chunk) - **Retail Business**: Personal deposit balance exceeded **100 billion yuan**, reaching **101.633 billion yuan**, with a growth rate of **24.52%**[99](index=99&type=chunk) - **Small and Micro Business**: Inclusive small and micro enterprise loan balance of **20.309 billion yuan**, with a growth rate of **60.65%**[107](index=107&type=chunk) - **Financial Markets and Wealth Management**: Treasury business pre-tax profit of **645 million yuan**, with increased proportion; wealth management product outstanding balance of **23.194 billion yuan**, a **55.16% increase**, with net value-based products accounting for **92.61%**[112](index=112&type=chunk)[117](index=117&type=chunk) - **Technology Empowerment**: Successfully launched a new generation information system, enhancing technical support, customer service, and risk control capabilities[123](index=123&type=chunk) [Risk Management](index=47&type=section&id=4.10%20%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86) The Bank established a comprehensive risk management system, maintaining a prudent risk appetite amidst the pandemic by refining policies and adjusting structures, ensuring stable asset quality and compliance with regulatory liquidity and capital indicators - **Credit Risk**: Adhered to a 'prudent, stable, and compliant' risk appetite, continuously improved credit policies, promoted credit structure adjustment, and accelerated non-performing asset disposal[127](index=127&type=chunk) - **Liquidity Risk**: As of the end of the reporting period, the liquidity coverage ratio was **289.00%**, and the net stable funding ratio was **106.11%**, both meeting regulatory requirements[129](index=129&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk) - **Market Risk**: Primarily interest rate risk, monitored through duration and sensitivity analysis, actively responding to interest rate market fluctuations[132](index=132&type=chunk) - **Operational Risk**: Overall operational risk was controllable through measures such as improving systems, strengthening management tools, and enhancing outsourced risk control[133](index=133&type=chunk) [Chapter 5 Changes in Share Capital and Shareholder Information](index=56&type=section&id=%E7%AC%AC%E4%BA%94%E7%AB%A0%20%E8%82%A1%E6%9C%AC%E8%AE%8A%E5%8B%95%E5%8F%8A%E8%82%A1%E6%9D%B1%E6%83%85%E6%B3%81) [Changes in Share Capital](index=56&type=section&id=5.1%20%E8%82%A1%E6%9C%AC%E8%AE%8A%E5%8B%95%E6%83%85%E6%B3%81) As of December 31, 2020, the Bank's total share capital remained unchanged at 14,588,046,744 shares, with domestic shares at 84.92% and H shares at 15.08% Share Capital Structure | Share Class | Number of Shares | Proportion | | :--- | :--- | :--- | | 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%** | [Shareholder Information](index=56&type=section&id=5.2%20%E8%82%A1%E6%9D%B1%E6%83%85%E6%B3%81) As of 2020-end, the Bank's top three shareholders were Guizhou Provincial Department of Finance (13.15%), China Kweichow Moutai Winery (Group) Co., Ltd. (12.00%), and Guian New Area Development and Investment Co., Ltd. (7.20%), with disclosures on major shareholders' holdings and pledges Top Three Shareholders' Holdings | Shareholder Name | Shareholding Proportion | | :--- | :--- | | Guizhou Provincial Department of Finance | 13.15% | | China Kweichow Moutai Winery (Group) Co., Ltd. | 12.00% | | Guian New Area Development and Investment Co., Ltd. | 7.20% | - Major shareholder Zunyi City State-owned Assets Investment and Financing Management Co., Ltd. pledged **200 million shares** of its equity[171](index=171&type=chunk) - All shares held by shareholder Zunyi Hengtong Industrial Development Co., Ltd. were judicially frozen and voting rights restricted due to disputes[176](index=176&type=chunk) [Chapter 6 Directors, Supervisors, Senior Management, Employees, and Organizational Structure](index=69&type=section&id=%E7%AC%AC%E5%85%AD%E7%AB%A0%20%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%A3%E4%BA%8B%E3%80%81%E9%AB%98%E7%B4%9A%E7%AE%A1%E7%90%86%E4%BA%BA%E5%93%A1%E3%80%81%E5%93%A1%E5%B7%A5%E5%8F%8A%E6%A9%9F%E6%A7%8B%E6%83%85%E6%B3%81) [Directors, Supervisors, and Senior Management](index=69&type=section&id=6.1%20%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%A3%E4%BA%8B%E5%8F%8A%E9%AB%98%E7%B4%9A%E7%AE%A1%E7%90%86%E4%BA%BA%E5%93%A1%E6%83%85%E6%B3%81) This section details the composition and roles of the Bank's Board of Directors (8 members), Board of Supervisors (9 members), and senior management (7 members) as of the reporting period end - As of the end of the reporting period, the Board of Directors consisted of **8 directors**, including **2 executive directors**, **1 non-executive director**, and **5 independent non-executive directors**[180](index=180&type=chunk) - As of the end of the reporting period, the Board of Supervisors consisted of **9 supervisors**, including **3 employee supervisors**, **3 shareholder supervisors**, and **3 external supervisors**[183](index=183&type=chunk) - The Bank had **7 senior management members**, including the President, Vice Presidents, Board Secretary, and Chief Officers[186](index=186&type=chunk) [Employee Information](index=84&type=section&id=6.4%20%E5%93%A1%E5%B7%A5%E6%83%85%E6%B3%81) As of 2020-end, the Bank had 5,169 employees, with nearly 70% under 40, 52.58% female, and 83.96% holding a bachelor's degree or higher, emphasizing training and a position-value-based compensation policy Employee Composition (As of End of 2020) | Category | Number | Proportion | | :--- | :--- | :--- | | **Total Number** | **5,169** | **100%** | | **By Age** | | | | 30 and below | 1,739 | 33.64% | | 31 to 40 | 1,865 | 36.08% | | **By Education** | | | | Bachelor's degree and above | 4,340 | 83.96% | - During the reporting period, the Bank organized **50,137 person-times** of various business trainings for internal employees and nearly **50 online training sessions** with nearly **10,000 participants**[218](index=218&type=chunk) [Chapter 7 Corporate Governance Report](index=87&type=section&id=%E7%AC%AC%E4%B8%83%E7%AB%A0%20%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%A0%B1%E5%91%8A) [Board of Directors and Special Committees](index=88&type=section&id=7.2%20%E8%91%A3%E4%BA%8B%E6%9C%83%E5%8F%8A%E5%85%B6%E5%B0%88%E5%A7%94%E6%9C%83%E6%9C%83%E8%AD%B0%E5%8F%AC%E9%96%8B%E6%83%85%E6%B3%81) During the reporting period, the Board of Directors operated effectively, holding 15 meetings and reviewing 95 proposals, with its five specialized committees regularly convening to support scientific decision-making - During the reporting period, the Board of Directors held **15 meetings**, reviewed and approved **95 proposals**, with high director attendance[228](index=228&type=chunk)[229](index=229&type=chunk)[230](index=230&type=chunk) - The Board of Directors established **five specialized committees**, whose composition complied with regulations, and effectively performed their review and oversight duties during the reporting period[232](index=232&type=chunk) [Board of Supervisors and Special Committees](index=96&type=section&id=7.3%20%E7%9B%A3%E4%BA%8B%E6%9C%83%E5%8F%8A%E5%85%B6%E5%B0%88%E5%A7%94%E6%9C%83%E6%9C%83%E8%AD%B0%E5%8F%AC%E9%96%8B%E6%83%85%E6%B3%81) During the reporting period, the Board of Supervisors operated compliantly, holding 5 meetings, reviewing 69 proposals, and conducting 7 special supervisions, with its two specialized committees effectively exercising oversight functions - The Board of Supervisors held **5 meetings** throughout the year, reviewed **69 proposals**, conducted **7 special supervisions**, and its meeting procedures complied with regulations[250](index=250&type=chunk) - The Supervision Committee and the Nomination, Remuneration and Evaluation Committee under the Board of Supervisors each held **3 meetings**, conducting professional reviews on major matters and the performance of directors, supervisors, and senior management[256](index=256&type=chunk)[257](index=257&type=chunk) [Risk Management, Internal Control, and Internal Audit](index=103&type=section&id=7.16%20%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86%E3%80%81%E5%85%A7%E9%83%A8%E6%8E%A7%E5%88%B6%E8%88%87%E5%85%A7%E9%83%A8%E5%AF%A9%E8%A8%88) The Bank established a comprehensive risk management and internal control system, confirmed as effective by the Board, while the independent internal audit conducted 57 projects to prevent risk exposures - The Board of Directors bears ultimate responsibility for risk management and internal control, deeming the risk control and internal control systems fully effective as of the end of 2020[267](index=267&type=chunk)[268](index=268&type=chunk) - The internal audit department conducted **57 audit projects** during the reporting period, issued **64 audit opinions**, and supervised the rectification of **641 issues**[271](index=271&type=chunk) [Chapter 8 Board Report](index=105&type=section&id=%E7%AC%AC%E5%85%AB%E7%AB%A0%20%E8%91%A3%E4%BA%8B%E6%9C%83%E5%A0%B1%E5%91%8A) [Annual General Meeting and Dividends](index=105&type=section&id=8.2%20%E5%B9%B4%E5%BA%A6%E8%82%A1%E6%9D%B1%E5%A4%A7%E6%9C%83%E8%88%87%E8%82%A1%E6%81%AF) The Board proposed a 2020 final cash dividend of RMB 0.7 per 10 shares, totaling approximately 1.021 billion yuan (tax inclusive), pending shareholder approval - The Board of Directors proposed a final cash dividend for 2020 of **RMB 0.7 per 10 shares** (pre-tax), totaling approximately **1.021 billion yuan**[273](index=273&type=chunk) [Chapter 9 Supervisors' Report](index=109&type=section&id=%E7%AC%AC%E4%B9%9D%E7%AB%A0%20%E7%9B%A3%E4%BA%8B%E6%9C%83%E5%A0%B1%E5%91%8A) [Key Work of the Board of Supervisors](index=109&type=section&id=9.1%20%E4%B8%BB%E8%A6%81%E5%B7%A5%E4%BD%9C%E6%83%85%E6%B3%81) In 2020, the Board of Supervisors effectively fulfilled its oversight duties through 5 meetings, 69 proposals, and 7 special supervisions, focusing on performance, risk control, and strategic transformation - The Board of Supervisors held **5 meetings** throughout the year, reviewed **69 proposals**, conducted **7 special supervisions**, and attended shareholder and board meetings as non-voting observers[284](index=284&type=chunk) - Supervised the selection and performance of directors, supervisors, and senior management, and reviewed the rationality of the company's organizational structure optimization and compensation incentive policies[286](index=286&type=chunk) [Independent Opinions of the Board of Supervisors](index=110&type=section&id=9.2%20%E5%B0%8D%E6%9C%89%E9%97%9C%E4%BA%8B%E9%A0%85%E7%99%BC%E8%A1%A8%E7%9A%84%E7%8D%A8%E7%AB%8B%E6%84%8F%E8%A6%8B) The Board of Supervisors issued independent opinions on the Bank's 2020 operations, financial reports, and related party transactions, affirming compliance, truthfulness, and fairness, with no harm to shareholder interests - The Board of Supervisors believes that the Bank's operations comply with laws, regulations, and the Articles of Association, the Board of Directors' decision-making procedures are standardized, and senior management's performance is compliant[287](index=287&type=chunk) - The financial report was audited and received a standard unqualified opinion, truly and objectively reflecting the Bank's financial position and operating results[287](index=287&type=chunk) [Chapter 10 Significant Matters](index=111&type=section&id=%E7%AC%AC%E5%8D%81%E7%AB%A0%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A0%85) [Significant Related Party Transactions](index=112&type=section&id=10.5%20%E9%87%8D%E5%A4%A7%E9%97%9C%E8%81%AF%EF%BC%8F%E9%80%A3%E4%BA%A4%E6%98%93) In the reporting period, the Bank disclosed significant related party transactions, including a 6.023 billion yuan credit exposure to Guian New Area Development and Investment Co., Ltd., with all nine approved transactions priced at market rates and compliant - As of the end of the reporting period, the highest net credit exposure to a related party was to Guian New Area Development and Investment Co., Ltd., at **6.023 billion yuan**, accounting for **14.32%** of the Bank's net capital[290](index=290&type=chunk) - During the reporting period, **9 significant related party transactions** were approved, including credit and investments to Guizhou Provincial Water Conservancy Investment (Group) and Guian New Area Development and Investment Co., Ltd., as well as the bulk transfer of non-performing assets to Guizhou Provincial Asset Management Co., Ltd[291](index=291&type=chunk)[292](index=292&type=chunk)[293](index=293&type=chunk) [Chapter 11 Independent Auditor's Report](index=117&type=section&id=%E7%AC%AC%E5%8D%81%E4%B8%80%E7%AB%A0%20%E7%8D%A8%E7%AB%8B%E6%A0%B8%E6%95%B8%E5%B8%AB%E5%A0%B1%E5%91%8A) [Independent Auditor's Report](index=117&type=section&id=%E7%8D%A8%E7%AB%8B%E6%A0%B8%E6%95%B8%E5%B8%AB%E5%A0%B1%E5%91%8A) KPMG issued an unqualified audit opinion on Bank of Guizhou's 2020 financial statements, identifying key audit matters including impairment provisions, fair value assessment of financial instruments, and consolidation of structured entities - The auditor issued a **standard unqualified opinion** on the financial statements[299](index=299&type=chunk) - Key audit matters include: 1. **Determination of impairment provisions for loans and advances and financial investments measured at amortized cost**: Involves complex judgments and assumptions in the Expected Credit Loss (ECL) model 2. **Fair value assessment of financial instruments**: Especially the valuation of Level 3 financial instruments involves significant management judgment 3. **Consolidation of structured entities**: Determining control over structured entities (e.g., wealth management products, asset management plans) involves complex assessments[301](index=301&type=chunk)[302](index=302&type=chunk)[308](index=308&type=chunk)[310](index=310&type=chunk) [Chapter 12 Financial Statements and Notes](index=125&type=section&id=%E7%AC%AC%E5%8D%81%E4%BA%8C%E7%AB%A0%20%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E5%8F%8A%E9%99%84%E8%A8%BB) [Statement of Profit or Loss and Other Comprehensive Income](index=125&type=section&id=%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) In 2020, the Bank's operating income reached 11.248 billion yuan, up 5.06%, with net profit of 3.671 billion yuan, up 3.00%, and total comprehensive income of 3.160 billion yuan Statement of Profit or Loss and Other Comprehensive Income Summary (Unit: RMB Thousand) | Item | 2020 | 2019 | | :--- | :--- | :--- | | Net interest income | 10,121,385 | 9,870,959 | | Net fee and commission income | 362,523 | 94,636 | | **Operating income** | **11,247,612** | **10,705,527** | | Asset impairment losses | (3,231,786) | (3,172,769) | | **Pre-tax profit** | **4,355,303** | **4,091,386** | | **Net profit for the year** | **3,670,663** | **3,563,637** | | Other comprehensive income | (510,920) | 91,522 | | **Total comprehensive income** | **3,159,743** | **3,655,159** | [Statement of Financial Position](index=127&type=section&id=%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of 2020-end, total assets were 456.401 billion yuan, up 11.48%, with net loans and advances at 206.153 billion yuan and financial investments at 192.309 billion yuan, while total liabilities were 420.373 billion yuan and total equity was 36.028 billion yuan Statement of Financial Position Summary (Unit: RMB Thousand) | Item | December 31, 2020 | December 31, 2019 | | :--- | :--- | :--- | | **Assets** | | | | Loans and advances | 206,152,610 | 173,349,699 | | Financial investments | 192,308,994 | 148,034,046 | | **Total assets** | **456,401,199** | **409,388,800** | | **Liabilities** | | | | Deposits accepted | 289,042,772 | 260,266,471 | | Issued bonds | 55,836,382 | 84,122,732 | | **Total liabilities** | **420,373,377** | **375,499,558** | | **Total equity** | **36,027,822** | **33,889,242** | [Statement of Cash Flows](index=130&type=section&id=%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) In 2020, net cash from operating activities was 33.269 billion yuan, while investing activities used 28.571 billion yuan and financing activities used 31.670 billion yuan, resulting in a net decrease of 26.972 billion yuan in cash and cash equivalents Statement of Cash Flows Summary (Unit: RMB Thousand) | Item | 2020 | 2019 | | :--- | :--- | :--- | | Net cash generated from operating activities | 33,268,706 | 24,681,593 | | Net cash used in investing activities | (28,570,860) | (11,269,135) | | Net cash (used in) / generated from financing activities | (31,670,356) | 7,051,318 | | **Net (decrease) / increase in cash and cash equivalents** | **(26,971,857)** | **20,573,425** |