Capital and Financial Overview - The registered capital of Weihai City Commercial Bank is RMB 5,980,058,344[9]. - Total assets increased to RMB 376,481.3 million, representing a growth of 9.54% from RMB 343,703.0 million at the end of 2022[12]. - Total equity reached RMB 27.14 billion, an increase of RMB 1.41 billion or 5.47% compared to the end of 2022, primarily due to an increase in undistributed profits[75]. - The total amount of loans and advances was RMB 181,421 million, up RMB 17,124 million or 10.42% from the end of 2022, with corporate loans increasing by 13.72%[51]. - The total amount of issued bonds was RMB 34.51 billion, a decrease of RMB 0.92 billion or 2.60% from the end of 2022, due to adjustments in liability structure[74]. Financial Performance - Net interest income for the first half of 2023 was RMB 3,291.7 million, an increase of 2.60% compared to RMB 3,208.2 million in the same period of 2022[11]. - Total operating income reached RMB 4,349.0 million, reflecting a growth of 2.65% from RMB 4,236.6 million year-on-year[11]. - Net profit attributable to shareholders was RMB 1,047.5 million, up 5.57% from RMB 992.2 million in the previous year[11]. - Net profit for the first half of 2023 was RMB 1.155 billion, an increase of RMB 65 million, representing a growth of 5.92% year-on-year[19]. - The company reported a pre-tax profit of RMB 1,288.5 million for the first half of 2023, an increase from RMB 1,203.7 million in the same period of 2022[88]. Risk Management - The bank has not identified any significant risks that could adversely affect its future development strategy and operational goals during the reporting period[3]. - The bank's risk management and future outlook are detailed in the "Management Discussion and Analysis" section of the report[3]. - The non-performing loan ratio stood at 1.45%, slightly improved from 1.46%[14]. - The capital adequacy ratio was reported at 13.44%, down from 13.83% at the end of 2022[14]. - The bank has established a comprehensive credit risk management system, including differentiated credit access policies and internal rating systems[129]. Digital Transformation and Innovation - The company is advancing its digital transformation with a focus on standardization and online intelligence, with most projects already operational[18]. - The bank's digital transformation efforts focus on improving customer experience and operational efficiency, with a strong emphasis on data governance and application[118]. - The bank has initiated over 10 IT projects, including upgrades to the corporate CRM system and the launch of a smart marketing platform, enhancing digital capabilities[119]. - The bank's electronic banking channels, including online, mobile, and video banking, serve as a comprehensive extension of its branch services, providing a wide range of financial services[113]. - The mobile banking application has around 2.89 million users, with total transactions amounting to RMB 134.48 billion in the reporting period[115]. Corporate Governance - The board consists of 15 members, including 5 executive directors, 5 non-executive directors, and 5 independent non-executive directors[159]. - The company has adopted a corporate governance framework that meets regulatory requirements and enhances transparency and accountability[180]. - The bank's governance is influenced by shareholders holding 5% or more of the voting rights, which includes Shandong High-Speed Group Company and Weihai Municipal Finance Bureau[156]. - The supervisory board consists of 8 members, including 3 employee supervisors, 3 shareholder supervisors, and 2 external supervisors[162]. - The company has established a comprehensive risk management framework covering credit, market, operational, liquidity, strategic, information technology, and reputational risks[188]. Shareholder Information - The top shareholder, Shandong Expressway Group Co., holds 2,126,237,528 shares, representing 35.56% of total shares[148]. - The top five shareholders collectively hold over 80% of the bank's equity, indicating a high concentration of ownership[156]. - As of the report date, the total number of domestic shareholders is 1,038[147]. - The total number of issued shares is 5,980,058,344, with domestic shares totaling 4,971,197,344[171]. - The annual shareholders' meeting held on May 30, 2023, had 17 participants representing 4,730,025,247 voting shares, accounting for 79.10% of the total voting shares[181]. Operational Highlights - The bank's liquidity ratio was 78.26%, indicating a stable liquidity position[14]. - The company has established a green finance leadership structure to enhance its green finance development[96]. - The balance of inclusive small and micro loans was CNY 27.269 billion, increasing by CNY 3.307 billion, a growth of 13.80%[95]. - The company reported no major investments or acquisitions during the reporting period[196]. - The company has a total of 3 major related party transactions approved during the reporting period[197].

Financial Performance - Net interest income for the first half of 2023 was RMB 3,291.7 million, an increase of 2.60% compared to RMB 3,208.2 million in the same period of 2022[12]. - Total operating income reached RMB 4,349.0 million, reflecting a growth of 2.65% from RMB 4,236.6 million year-on-year[12]. - Net profit for the first half of 2023 was RMB 1,154.7 million, up 5.92% from RMB 1,090.2 million in the previous year[12]. - Total assets as of June 30, 2023, amounted to RMB 376,481.3 million, representing a 9.54% increase from RMB 343,703.0 million at the end of 2022[13]. - The total loan amount increased by 10.42% to RMB 181,421.0 million from RMB 164,297.2 million year-on-year[13]. - The bank's total deposits reached RMB 259,034.3 million, a 12.87% increase from RMB 229,493.7 million year-on-year[13]. - The company's pre-tax profit for the first half of 2023 was RMB 1,288.5 million, compared to RMB 1,203.8 million in the same period of 2022[49]. - The company's financial investments increased by RMB 12,588 million or 9.82% compared to the end of 2022[50]. Risk Management - The report indicates that there are no major risks affecting the bank's future development strategy and operational goals[4]. - The bank's management discussed the main risks faced in operations and the measures taken to address them in the "Management Discussion and Analysis" section[4]. - The non-performing loan ratio stood at 1.45%, slightly improved from 1.46% at the end of 2022[15]. - The total amount of credit commitments was RMB 60.10 billion at the end of the reporting period[78]. - The bank has established a comprehensive credit risk management system, including differentiated credit access policies and internal rating systems[130]. - Market risk indicators remained within the limits set by the board for 2023, ensuring manageable exposure to market risks[131]. - The bank closely monitored liquidity risk, adjusting asset-liability structures to ensure safety and control of liquidity risk[133]. - The bank implemented concentration risk management measures, including stress testing and limit controls, ensuring compliance with regulatory requirements[139]. Compliance and Governance - The board confirmed that the financial data in the report is accurate and complete, with no significant omissions or misleading statements[4]. - The report complies with the Hong Kong Stock Exchange's listing rules and International Accounting Standard 34 for interim financial reporting[200]. - The bank launched a "Compliance Struggle Year" initiative to enhance compliance management, including a "Three Zero One Improvement" control system and a "Heavy Reward and Heavy Penalty" mechanism[140]. - The company has established a comprehensive corporate governance structure, ensuring high levels of transparency and accountability[181]. - The board consists of 15 members, including 5 executive directors, 5 non-executive directors, and 5 independent non-executive directors[160]. - The company adheres to the corporate governance code and continuously reviews its governance practices to meet shareholder expectations[181]. Digital Transformation - The company has initiated a digital transformation strategy focusing on standardization and online intelligence[19]. - The bank's digital transformation strategy emphasizes customer experience and revenue generation, aligning with its vision of becoming a "smart digital bank"[119]. - The bank is focused on building a comprehensive digital risk management system, improving customer risk assessment and due diligence processes[120]. - The bank's digital financial services are being enhanced through a dedicated internet finance department to strengthen core competitiveness[112]. - The mobile banking application has around 2.89 million users, with a transaction total of RMB 134.48 billion processed through the platform[116]. Shareholder Information - The company has issued a total of 5,980,058,344 shares, including 4,971,197,344 domestic shares and 1,008,861,000 H shares, with a registered capital of RMB 5,980,058,344[146]. - The largest shareholder, Shandong Expressway Group, holds 2,126,237,528 shares, accounting for 35.56% of total shares[149]. - The company has a total of 1,038 domestic shareholders as of the reporting period[148]. - The top five shareholders collectively hold over 75% of the equity in Shandong High-Speed, indicating a concentrated ownership structure[156]. Operational Highlights - The bank has expanded its branch network to 126 locations across cities including Jinan, Tianjin, and Qingdao, achieving full coverage in Shandong Province[11]. - The company reported a total of 17,300.5 million in loans to the top ten borrowers, which accounted for 51.18% of the net capital[86]. - The company maintained stable credit asset quality while achieving steady growth in credit assets[79]. - The company has not implemented any share schemes during the reporting period[178]. Employee and Management - The total number of employees reached 3,272, with 56.1% being female and 23.4% aged 30 or younger[174]. - 95% of employees hold a bachelor's degree or higher, contributing to a culture of innovation and responsiveness to market changes[174]. - The bank's chairman and CEO, Meng Dongxiao, has been in position since February 2018[165]. - The bank's risk director, Zhang Xiaodong, was appointed in June 2021[165]. Financial Position - Total liabilities reached RMB 349.34 billion, an increase of RMB 31.37 billion or 9.87% compared to the end of 2022[70]. - Total equity reached RMB 27.14 billion, an increase of RMB 1.41 billion or 5.47% compared to the end of 2022, with retained earnings contributing significantly[76]. - The total capital adequacy ratio as of June 30, 2023, was 13.44%, down from 13.83% at the end of 2022[125]. - The bank's leverage ratio was 6.12%, exceeding the regulatory requirement of 4%[127].

Financial Overview - The bank's registered capital is RMB 5,980,058,344[6]. - The 2022 annual financial report was audited by Lixin CPA and received a standard unqualified opinion[3]. - The bank's board of directors unanimously approved the 2022 annual report on March 30, 2023, with all 15 attending directors present[3]. - The report indicates no significant risks affecting the bank's future development strategy and operational goals[3]. - The financial data and indicators are presented in RMB, with rounding adjustments made to certain amounts and percentages[3]. - The bank operates under the supervision of the China Banking and Insurance Regulatory Commission[4]. - The bank's stock is listed on the Hong Kong Stock Exchange under the stock code 9677[6]. - The bank has not disclosed any major adverse impacts on its future development strategy during the reporting period[3]. Risk Management - The report includes a detailed description of the main risks faced by the bank and the measures taken to address them[3]. - The bank emphasizes the importance of understanding the difference between plans, forecasts, and commitments in its forward-looking statements[3]. - The company has established a comprehensive credit risk management policy system, including credit approval, limit management, and post-loan management, to ensure compliance with regulatory and internal management requirements[148]. - The company has implemented a differentiated authorization and professional approval mechanism to strengthen risk control and ensure effective management of credit risks[148]. - The company has enhanced its digital transformation efforts to improve credit risk management capabilities through optimized loan management platforms and credit systems[148]. - The company has a dedicated risk management department that oversees the implementation of policies and procedures across branches, ensuring consistent risk management practices[147]. - The company has a structured risk management framework involving the board, senior management, and specialized committees to oversee risk management activities[146]. Financial Performance - Net interest income for 2022 reached RMB 6,450.5 million, an increase of 6.66% compared to RMB 6,047.5 million in 2021[10]. - Total operating income for 2022 was RMB 8,290.9 million, reflecting a growth of 12.38% from RMB 7,377.4 million in 2021[10]. - Net profit attributable to shareholders for 2022 was RMB 1,906.4 million, a rise of 9.22% from RMB 1,745.4 million in 2021[10]. - Total assets as of the end of 2022 amounted to RMB 343,703.0 million, representing a 12.87% increase from RMB 304,520.8 million at the end of 2021[11]. - Total loans increased by 14.66% to RMB 164,297.2 million in 2022, up from RMB 143,292.7 million in 2021[11]. - Total deposits reached RMB 229,493.7 million, marking a 12.59% increase from RMB 203,833.6 million in 2021[11]. - The average return on total assets was 0.64%, a decrease of 0.02 percentage points from 2021[12]. - The company reported a significant increase in net gains from trading and investment securities, which rose by RMB 425.2 million or 57.63%[18]. Digital Transformation - The bank's strategic direction focuses on digital transformation and enhancing customer experience through financial technology[8]. - The company is advancing its digital transformation strategy to enhance customer experience and profitability[16]. - The bank's digital transformation vision, "SAIL+", aims to enhance data governance and service-oriented application architecture[130]. - The bank has established a comprehensive internal capital adequacy assessment framework to ensure compliance with regulatory capital requirements[133]. - The bank's total IT investment for 2022 amounted to CNY 316.27 million, accounting for 3.81% of operating income, representing a year-on-year increase of 40.89%[129]. - During the reporting period, the bank launched 41 digital transformation projects, including a unified portal and mobile office, significantly enhancing operational efficiency[130]. - The bank introduced 37 technology professionals during the reporting period to strengthen its technology capabilities and support digital transformation efforts[131]. Shareholder Information - The total number of shares issued by the company is 5,980,058,344, consisting of 4,971,197,344 domestic shares and 1,008,861,000 H shares[167]. - The top shareholder, Shandong Expressway Group, holds 2,126,237,528 shares, representing 35.56% of total shares[170]. - The company has not experienced any changes in its share capital during the reporting period[167]. - The company emphasizes a focus on three major transformations: digital model transformation, control model transformation, and business model transformation[166]. - The total number of domestic shareholders is 1,038 as of the reporting period end[169]. Corporate Governance - The board consists of 15 members, including 5 executive directors, 5 non-executive directors, and 5 independent non-executive directors[180]. - The term for directors is three years, with the possibility of re-election; independent non-executive directors cannot serve more than six years cumulatively[180]. - During the reporting period, there were changes in the board, including the resignation of non-executive director Zhao Yue and the appointment of Li Jie and Wang Yong as new directors[185]. - The supervisory board comprises 9 members, including 3 employee supervisors, 3 shareholder supervisors, and 3 external supervisors[182]. - The bank's management team includes key positions such as the president and vice presidents, with appointments dating back to 2018 and 2021[184]. Social Responsibility and Compliance - The bank's commitment to social responsibility and green finance has been recognized, becoming the first "Equator Bank" in Shandong province[8]. - The company has increased its focus on environmental and social risk management, particularly in green finance, aligning credit resource allocation towards low-energy and low-pollution industries[148]. - The bank actively supports green finance initiatives, aligning with national policies and regulatory requirements to promote sustainable economic development[104]. - The bank has implemented a compliance risk management framework to effectively identify and manage compliance risks, promoting lawful operations[159]. - The bank has organized various compliance training and awareness activities to enhance employees' compliance consciousness[159].

Financial Reporting and Compliance - The audited annual financial report for the year ending December 31, 2022, has been prepared in accordance with Chinese accounting standards and has received a standard unqualified audit opinion from the auditing firm [4]. - The board of directors confirmed that the financial data presented in the report is true, accurate, and complete, with no false statements or significant omissions [4]. - The report indicates that there are no major risks that could adversely affect the company's future development strategy and operational goals [4]. - The financial data and indicators are presented in Renminbi, with adjustments made for rounding, which may cause discrepancies in totals [4]. - The company has not disclosed specific performance metrics or user data in the provided content, focusing instead on governance and compliance aspects [4]. - The report will be made available to shareholders and published on the Hong Kong Stock Exchange and the company's website [1]. - The board meeting that approved the annual report had full attendance from the 15 directors [4]. - The company emphasizes the importance of understanding the difference between plans, forecasts, and commitments in its forward-looking statements [4]. Risk Management - The report includes a section on risk management and future outlook, detailing the main risks faced by the company and the measures taken to address them [4]. - The company has established a comprehensive credit risk management policy system, including credit approval, limit management, and post-loan management, to ensure compliance with regulatory and internal management requirements [149]. - The company has implemented a differentiated authorization and professional approval mechanism to strengthen risk control and ensure a balanced risk-reward relationship [149]. - The market risk management system includes risk identification, measurement, monitoring, control, and reporting, ensuring safe and stable operations within acceptable market risk levels [150]. - The company has focused on enhancing environmental and social risk management, particularly in green finance, by implementing a "one-vote veto" system for environmental compliance [149]. - The company has adopted a digital transformation strategy to improve credit risk management processes and enhance the timeliness and effectiveness of credit management [149]. Financial Performance - Net interest income for 2022 was RMB 6,450.5 million, an increase of 6.66% compared to RMB 6,047.5 million in 2021 [12]. - Total operating income reached RMB 8,290.9 million, reflecting a growth of 12.38% from RMB 7,377.4 million in the previous year [12]. - The net profit attributable to shareholders was RMB 1,906.4 million, up 9.22% from RMB 1,745.4 million in 2021 [12]. - Total assets increased to RMB 343,703.0 million, representing a 12.87% rise from RMB 304,520.8 million at the end of 2021 [13]. - The total loan amount reached RMB 164,297.2 million, a growth of 14.66% compared to RMB 143,292.7 million in 2021 [13]. - The non-performing loan ratio stood at 1.46%, slightly improved from 1.47% in the previous year [14]. - The weighted average return on equity was 8.63%, an increase from 8.55% in 2021 [14]. - The cost-to-income ratio improved to 21.80%, down from 20.50% in the previous year [14]. - The core tier 1 capital adequacy ratio was 8.81%, a decrease from 9.35% in 2021 [14]. - The liquidity ratio improved significantly to 79.09%, up from 63.22% in the previous year [14]. Digital Transformation and Technology - The company is advancing its digital transformation strategy, engaging KPMG for the implementation of a digital transformation PMO project [18]. - The company aims to optimize its business structure by focusing on retail, inclusive finance, and specialty businesses [18]. - The company launched 41 digital transformation projects during the reporting period, including a unified portal and mobile office, significantly enhancing operational efficiency [130]. - The company introduced 37 technology professionals to strengthen its technology capabilities, supporting its digital transformation efforts [131]. - The total investment in information technology for the year 2022 was CNY 316.2721 million, accounting for 3.81% of operating income, with a year-on-year growth of 40.89% [129]. Shareholder Information - The total number of shares issued by the company is 5,980,058,344, including 4,971,197,344 domestic shares and 1,008,861,000 H shares [168]. - The top shareholder, Shandong Expressway Group Co., holds 2,126,237,528 shares, representing 35.56% of total shares [171]. - The company has not experienced any changes in its share capital during the reporting period [168]. - The company emphasizes a focus on three major transformations: digital model transformation, control model transformation, and business model transformation [167]. - The top ten domestic shareholders collectively hold a significant portion of the company's shares, with the top three shareholders alone accounting for over 62% [171]. Governance and Management - The board consists of 15 directors, including 5 executive directors, 5 non-executive directors, and 5 independent non-executive directors [181]. - The term for directors is three years, with the possibility of re-election; independent non-executive directors cannot serve more than six years cumulatively [181]. - The supervisory board consists of 9 members, including 3 employee supervisors, 3 shareholder supervisors, and 3 external supervisors [183]. - The company has maintained stability in its senior management, with no significant changes reported outside of those mentioned [188]. - The company has a structured governance framework with clear roles and responsibilities for its board and management team [190]. Future Outlook and Strategic Initiatives - The company anticipates a positive economic recovery in 2023, supported by enhanced financial policies and reforms, with a projected increase in the fiscal deficit ratio by 0.2 percentage points to 3% [164]. - The company aims to implement a digital-driven retail banking model, focusing on high-quality development and integrating regulatory requirements and reform initiatives [165]. - The company plans to actively seize policy and market opportunities to identify new growth points [167]. - A strategic acquisition is planned, which is projected to enhance the company's service offerings and increase customer base by 30% [196]. - The company is investing heavily in technology development, allocating 100 million for R&D in the upcoming year [197].

Financial Performance - Net interest income for the first half of 2022 was RMB 3,208.2 million, an increase of 9.91% compared to RMB 2,919.0 million in the same period of 2021[9]. - Total operating income reached RMB 4,236.6 million, reflecting a growth of 16.46% from RMB 3,637.8 million year-on-year[9]. - Net profit attributable to shareholders was RMB 992.2 million, up 12.38% from RMB 882.9 million in the previous year[9]. - Operating income for the first half of 2022 was RMB 4.24 billion, up RMB 598 million, a growth of 16.46% compared to the same period last year[17]. - Net profit for the first half of 2022 was RMB 1.09 billion, an increase of RMB 128 million, representing a growth of 13.35% year-on-year[17]. - The company's pre-tax profit for the reporting period was RMB 1.204 billion, an increase from RMB 1.164 billion in the same period last year[47]. Assets and Liabilities - Total assets as of June 30, 2022, amounted to RMB 332,659.5 million, a 9.24% increase from RMB 304,520.8 million at the end of 2021[10]. - Total liabilities reached RMB 307.62 billion, an increase of RMB 27.27 billion or 9.73% compared to the end of 2021, primarily due to increased deposits and repurchase agreements[74]. - Customer deposits, the main source of funding, amounted to RMB 229.54 billion, up RMB 22.69 billion or 10.97% from the end of 2021[76]. - The company's cash and deposits with the central bank were RMB 25.89 billion, accounting for 7.78% of total assets, compared to 8.00% at the end of 2021[50]. - The total amount of loans and advances was RMB 159.08 billion, up RMB 15.79 billion or 11.02% from the end of 2021, with corporate loans increasing by RMB 12.63 billion or 13.38%[51]. Capital and Equity - The registered capital of the bank is RMB 5,980,058,344[6]. - Total equity reached RMB 250.37 billion, an increase of RMB 8.66 billion or 3.58% from the end of 2021[81]. - The capital adequacy ratio decreased to 13.58% from 14.59% at the end of 2021[12]. - The core Tier 1 capital adequacy ratio stands at 8.69%, down 0.66 percentage points from the end of 2021[129]. - The bank's total capital net amount is RMB 28,332.8 million, slightly down from RMB 28,397.0 million at the end of 2021[132]. Risk Management - The bank has established a comprehensive risk management system covering various types of risks, including credit, market, and operational risks[135]. - The bank has implemented measures to enhance credit risk management, including differentiated credit access policies and early warning monitoring[136]. - The bank has implemented comprehensive measures to prevent operational risks, with no significant operational risk loss events reported during the period[138]. - The bank closely monitored market liquidity changes and adjusted liquidity management measures dynamically, ensuring all liquidity indicators met regulatory requirements[139]. - The bank has established a legal risk management process to effectively identify, assess, and respond to legal risks associated with its operations[149]. Digital Transformation and Innovation - The bank's strategy focuses on digital transformation and the development of a differentiated retail banking model[8]. - The bank initiated 48 out of 57 digital transformation projects, with 15 already launched, aiming to enhance customer experience and profitability[16]. - The bank aims to continue expanding its digital banking capabilities and innovative product offerings to better serve its customer base[8]. - The company is actively enhancing its technology infrastructure and has made significant improvements in its technology capabilities through talent acquisition and organizational restructuring[125]. - The bank has established a Data Governance Committee to enhance data governance, focusing on professionalization, lean management, and agility in its digital transformation strategy[126]. Shareholder Information - The total number of shares was 5,980,058,344, with domestic state-owned legal person shares accounting for 52.88%[155]. - The top shareholder, Shandong High-speed Group, held 2,216,423,498 shares, representing 37.06% of total shares[157]. - The second-largest shareholder, Weihai Finance Bureau, owned 919,671,509 shares, which is 15.38% of total shares[157]. - The total number of domestic shareholders was 1,038 as of the end of the reporting period[156]. - The bank's equity structure shows a significant concentration of ownership among the top shareholders, indicating potential influence on corporate governance[157]. Compliance and Governance - The bank has implemented a series of compliance management activities, including quarterly compliance checks and training programs to enhance employee compliance awareness[146]. - The bank's governance includes nominations from major shareholders for board and supervisory positions[166]. - The supervisory board consists of 9 members, including 3 employee supervisors, 3 shareholder supervisors, and 3 external supervisors, with a term of three years[171]. - The company has adopted the standards set out in the Listing Rules for securities trading by directors and supervisors, confirming compliance during the reporting period[181]. - The company has established a comprehensive risk management framework covering credit, market, operational, liquidity, strategic, information technology, and reputational risks[195]. Customer and Market Engagement - The bank aims to strengthen its digital transformation and improve its operational models to achieve high-quality development[153]. - The total number of debit cards issued reached 4.4188 million, an increase of 198,700 cards or 4.71% compared to the end of 2021[112]. - The total transaction amount through debit cards was RMB 3.813 billion during the reporting period[112]. - The bank raised RMB 74.174 billion in wealth management funds, with a total of 32 products maturing and a total redemption amount of RMB 80.899 billion[117]. - The number of online banking customers reached approximately 571,500, with a total transaction amount of RMB 499.009 billion processed through the platform[121]. Future Outlook - The bank plans to focus on six key areas for growth in the second half of the year, including enhancing customer service and promoting product innovation[152]. - The economic outlook for the second half of the year remains positive, with expectations for gradual recovery and stable growth supported by government policies[151]. - The bank will continue to support small and micro enterprises, technology innovation, and green development through increased lending efforts[151].

Financial Performance - Net interest income for 2021 was RMB 6,047.5 million, an increase of 29.82% compared to RMB 4,658.3 million in 2020[13]. - Total operating income reached RMB 7,377.4 million, reflecting a growth of 22.26% from RMB 6,034.0 million in the previous year[13]. - The net profit attributable to shareholders was RMB 1,745.4 million, up 15.63% from RMB 1,509.5 million in 2020[13]. - Total assets increased to RMB 304,520.8 million, representing a growth of 13.80% from RMB 267,601.6 million in 2020[14]. - The total loan amount reached RMB 143,292.7 million, a rise of 19.12% compared to RMB 120,293.4 million in 2020[14]. - Customer deposits totaled RMB 203,833.6 million, an increase of 14.85% from RMB 177,481.1 million in 2020[14]. - The bank's liquidity ratio improved to 63.22%, up from 52.61% in 2020[15]. - The capital adequacy ratio stood at 14.59%, down from 15.18% in the previous year[15]. - The weighted average return on equity was 8.55%, slightly up from 8.42% in 2020[15]. Risk Management - The bank did not identify any significant risks that could adversely affect its future development strategy and operational goals during the reporting period[3]. - The report includes a detailed description of the main risks faced by the bank and the measures taken to address them, found in the "Management Discussion and Analysis" section[3]. - The bank aims to enhance risk management capabilities through advanced technology, establishing a precise risk warning system[12]. - The bank has established a comprehensive credit risk management policy system, including credit approval, limit management, internal rating, and post-loan management[143]. - The bank has strengthened liquidity risk management by enhancing deposit marketing efforts, leading to stable growth in deposit business[147]. - The bank has implemented strict liquidity limit management in accordance with regulatory requirements, continuously optimizing liquidity indicators[147]. - The bank has established a comprehensive information technology risk management system to ensure data integrity, confidentiality, and availability during system development and maintenance[150]. Corporate Governance - The board of directors proposed a cash dividend of RMB 10 per 100 shares for ordinary shareholders, subject to approval at the 2021 annual general meeting[3]. - The board of directors and supervisory board confirmed that the data in the report does not contain any false records or misleading statements[3]. - The company reported changes in the board of directors, with Mr. Zhang Renhao and Mr. Bi Qiubo resigning due to age reasons on June 11, 2021[182]. - The company has a diverse executive team with extensive experience in finance and management, enhancing its operational capabilities[186][187][188]. - The company maintains a commitment to regulatory compliance and effective management practices, as evidenced by the timely approval of executive qualifications[183]. Strategic Initiatives - The bank's strategic direction focuses on digital transformation, emphasizing a "two-end retail banking" model with a commitment to innovation in product offerings[10]. - The bank initiated a digital transformation plan aimed at enhancing customer experience and profitability[19]. - The bank's development strategy includes strengthening financial technology capabilities to create a "smart digital bank" with excellent customer experience[11]. - The bank's operational management strategies and future outlook are discussed in detail, emphasizing the importance of risk awareness for investors[3]. Shareholder Structure - The bank's shareholder structure includes major state-owned enterprises, providing robust support for long-term development[12]. - The total number of shares issued by the bank remains at 5,980,058,344, consisting of 4,971,197,344 domestic shares and 1,008,861,000 H-shares[162]. - The top shareholder, Shandong High-Speed Group Co., Ltd., holds 2,216,423,498 shares, representing 37.06% of total shares[165]. - The bank's equity structure shows a strong presence of state-owned entities, with state-owned legal person shares comprising over 52% of total shares[163]. Operational Highlights - Weihai City Commercial Bank has established a comprehensive branch network with 122 branches, including 51 in the Weihai area, achieving full coverage in Shandong Province[11]. - The bank's mobile banking users increased by 44.10% to approximately 1.95 million compared to the end of 2020, with transaction volume through the mobile banking platform totaling RMB 220.081 billion during the reporting period[120]. - The bank's online banking platform processed a total transaction amount of RMB 881.772 billion during the reporting period[119]. - The bank has established a video banking service channel to enhance customer service capabilities and improve customer experience[121]. Awards and Recognition - The bank has been recognized as one of China's top ten urban commercial banks and has received multiple awards, including AAA credit rating and various excellence awards in financial services[11]. - The bank was recognized as one of the "Top Ten Urban Commercial Banks" in China for several consecutive years[19].

Financial Performance - Net interest income for the first half of 2021 reached RMB 2,919.0 million, an increase of 48.12% compared to RMB 1,970.7 million in the same period of 2020[12]. - Total operating income was RMB 3,637.8 million, reflecting a growth of 20.23% from RMB 3,025.7 million year-on-year[12]. - Net profit for the first half of 2021 was RMB 961.8 million, up 9.02% from RMB 882.2 million in the first half of 2020[12]. - Total assets as of June 30, 2021, amounted to RMB 288,378.4 million, representing a 7.76% increase from RMB 267,601.6 million at the end of 2020[13]. - Customer loans and advances reached RMB 136,673.6 million, a 16.07% increase from RMB 117,749.1 million year-on-year[13]. - The capital adequacy ratio was 13.97%, down from 15.18% at the end of 2020[15]. - The average return on total assets for the first half of 2021 was 0.70%, slightly down from 0.74% in the same period of 2020[14]. - The company achieved a pre-tax profit of RMB 11.64 billion, an increase of RMB 0.75 billion, or 6.84% year-on-year[20]. Dividends - The bank declared a cash dividend of RMB 598 million for the 2020 fiscal year, distributing RMB 10 per share to shareholders[5]. - The bank did not declare an interim dividend for the 2021 fiscal year[5]. Risk Management - The report indicates no significant risks affecting the bank's future development strategy and operational goals[5]. - The non-performing loan ratio stood at 1.47% as of June 30, 2021, unchanged from the previous year[15]. - The bank has established a comprehensive credit risk management system, focusing on maintaining strict credit approval standards and enhancing large credit client management[143]. - Market risk indicators remained within the limits set by the board, ensuring that market risks are controlled within acceptable ranges[144]. - The bank has not experienced any significant operational risk loss events during the reporting period, indicating effective operational risk management[145]. Digital Transformation and Strategy - The bank's strategy focuses on digitalization and comprehensive retail banking, aiming to enhance service quality and operational efficiency[11]. - The company has initiated a digital transformation strategy in collaboration with Tencent and Huawei[19]. - The company has implemented a digital banking strategy to enhance online services and customer experience, including the introduction of paperless processes and electronic contract management[132]. - The bank has successfully launched its direct banking services, enhancing customer access to various financial products and services since its inception in September 2016[130]. Shareholder Information - The bank's total share capital amounts to 5,980,058,344 shares, consisting of 4,971,197,344 domestic shares and 1,008,861,000 H shares[159]. - The top shareholder, Shandong Expressway Group, holds 2,216,423,498 shares, representing 37.06% of total shares[162]. - The top three shareholders collectively control over 75% of the bank's equity, indicating a concentrated ownership structure[169]. Corporate Governance - The bank has established a comprehensive corporate governance structure in compliance with listing rules, ensuring high levels of transparency and accountability[194]. - Independent non-executive directors fulfilled their responsibilities and provided objective opinions during board meetings[198]. - The bank held one annual general meeting on June 11, 2021, with 29 shareholders representing 4,824,573,678 shares, accounting for 80.68% of the total share capital[195]. Employee Information - As of the reporting period, the total number of employees reached 2,961, with 26.4% aged 30 or below and 93.4% holding a bachelor's degree or higher[187]. - The company has adopted a compensation policy that includes social insurance and benefits such as pension, medical insurance, unemployment insurance, work injury insurance, maternity insurance, housing provident fund, and corporate annuity[188]. Loan and Deposit Information - The total amount of loans and advances increased to RMB 139.65 billion as of June 30, 2021, up 16.09% from RMB 120.29 billion at the end of 2020[56]. - As of June 30, 2021, total deposits amounted to RMB 193.41 billion, an increase of RMB 13.83 billion or 7.70% compared to the end of 2020[80]. - The balance of personal operating loans reached RMB 18.216 billion, an increase of RMB 2.511 billion, reflecting a growth of 15.99% compared to the end of 2020[117]. Financial Investments - Financial investments amounted to RMB 104.2962 billion, an increase of RMB 3.075 billion or 3.04% from the end of 2020[70]. - The value of financial investments measured at fair value through other comprehensive income was RMB 22.2358 billion, up RMB 3.964 billion or 21.69% from the end of 2020[74]. Operational Performance - The company's working capital loans were RMB 61.73 billion, an increase of RMB 9.39 billion or 17.93% from the end of 2020, indicating a strong response to government calls for economic support[61]. - The bank's retail customer assets reached RMB 122.079 billion, an increase of 15.15% compared to the end of 2020[113]. - The bank's online banking platform processed transactions totaling RMB 420.327 billion during the reporting period, with approximately 499,600 online banking customers[128].

Financial Performance - In 2020, the net interest income was RMB 4,658.3 million, an increase of 40.90% compared to RMB 3,306.2 million in 2019[17]. - The net fee and commission income reached RMB 463.7 million, reflecting a growth of 70.67% from RMB 271.7 million in the previous year[17]. - Total operating income for 2020 was RMB 6,034.0 million, representing a year-on-year increase of 21.97% from RMB 4,947.2 million in 2019[17]. - The pre-tax profit amounted to RMB 1,951.3 million, up 7.59% from RMB 1,813.7 million in 2019[17]. - The net profit attributable to shareholders was RMB 1,509.5 million, an increase of 4.85% compared to RMB 1,439.7 million in 2019[17]. - Net profit for the year was RMB 1.65 billion, an increase of RMB 0.125 billion or 8.17% compared to the previous year[22]. - The company achieved operating revenue of RMB 6.034 billion in 2020, an increase of RMB 1.087 billion or 21.97% compared to 2019[24]. - The company raised a net amount of HKD 3.277 billion during its IPO on October 12, 2020, to strengthen its core tier one capital[15]. Risk Management - The company did not identify any significant risks that could adversely affect its future development strategy and operational goals during the reporting period[6]. - The report includes a detailed description of the main risks faced by the company and the measures taken to address them[6]. - The bank's risk management capabilities are being enhanced through advanced technology applications and a precise risk warning system[16]. - The company has established a comprehensive risk management system to ensure sustainable and healthy business development[152]. - The risk management framework includes a board of directors, supervisory board, and senior management, ensuring effective oversight and implementation of risk policies[156][157][158]. - The bank has strengthened liquidity risk management by increasing deposit marketing efforts and dynamically adjusting asset-liability structures[164]. - The bank conducts quarterly liquidity stress tests and adjusts asset-liability structures based on test results to mitigate liquidity risks[164]. - The bank has implemented a reputation risk monitoring mechanism operating 24/7 to identify and manage potential reputation risks[169]. Asset and Liability Management - Total assets reached RMB 267.60 billion, an increase of RMB 42.97 billion or 19.13% compared to the end of 2019[18]. - Total liabilities amounted to RMB 245.93 billion, an increase of RMB 39.22 billion or 18.97% from RMB 206.71 billion in 2019, primarily due to rapid growth in deposits[85]. - As of December 31, 2020, total deposits amounted to RMB 179.59 billion, an increase of RMB 35.36 billion or 24.51% compared to the end of 2019, representing 73.02% of total liabilities[87]. - The capital adequacy ratio stood at 15.18%, reflecting a stable financial position[19]. - Provision coverage ratio was 173.39%, indicating strong risk management capabilities[19]. Loan and Deposit Growth - Customer loans and advances amounted to RMB 117.75 billion, up RMB 30.67 billion or 30.67% year-on-year[18]. - Customer deposits increased by RMB 35.28 billion or 24.51% compared to the end of 2019[18]. - The total amount of loans and advances issued was RMB 120.293 billion, an increase from RMB 92.452 billion at the end of 2019[73]. - The balance of personal mortgage loans was RMB 13.914 billion, an increase of RMB 3.945 billion or 39.57% from the end of 2019[121]. - The balance of personal consumption loans was RMB 3.174 billion, an increase of RMB 1.193 billion or 60.25% compared to the end of 2019[71]. Shareholder Information - The company reported a total paid-in capital of RMB 5,980,058,344[11]. - The top shareholder, Shandong High-speed Group, holds 37.06% of the total shares, followed by Weihai Finance Bureau with 15.38%[183]. - The company’s shareholding structure includes 4,971,197,344 domestic shares and 1,008,861,000 H-shares[181]. - The company has a total of 1,038 domestic shareholders as of the end of the reporting period[182]. - The bank's major shareholders have significant influence over its management and decision-making processes[188]. Corporate Governance - The board consists of 15 members, including 5 executive directors, 5 non-executive directors, and 5 independent non-executive directors[193]. - The supervisory board is composed of 9 members, including 3 employee supervisors, 3 shareholder supervisors, and 3 external supervisors[195]. - The company has a chief audit officer, Liu He, appointed in December 2008[197]. - There were no other significant changes in the board or senior management during the reporting period[200]. Digital Transformation and Innovation - The company aims to enhance its digital banking strategy through a three-step approach: online transformation of offline services, diversification of online services, and strategic development of digital banking[15]. - The company aims to enhance digital transformation and strengthen its competitive edge through technology empowerment[108]. - The bank has enhanced its electronic banking channels, including online, mobile, and direct banking, to provide comprehensive financial services[134]. - The bank has implemented various new products and services, including automated loan approvals and electronic contract management, to improve operational efficiency[139]. Economic Context - In 2020, Shandong Province's GDP was RMB 7,312.9 billion, showing a year-on-year growth of 3.6% despite the pandemic impact[176]. - The bank's impairment losses did not significantly increase due to the COVID-19 pandemic, indicating stable asset quality and liquidity[175].