Group 1 - The core objective of the issuance is to enhance the bank's capital adequacy ratio to meet regulatory requirements and support stable business growth while contributing to the development of the real economy [1] - The board has proposed to issue up to 758,020,103 domestic shares and up to 153,834,000 H-shares, with the net proceeds intended to supplement the bank's core tier one capital after deducting related issuance costs [1] - The issuance price for both domestic and H-shares is set at RMB 3.29 per share, with expected fundraising of up to RMB 2,493,886,139 from domestic shares and up to RMB 506,113,860 from H-shares [1] Group 2 - Potential subscribers for the domestic shares may include Shandong Hi-Speed Group and its subsidiaries, which are the bank's controlling and major shareholders [1] - The bank is in discussions with Shandong Hi-Speed Group regarding the specific terms of the subscription for domestic shares, which will be determined based on the subscription agreement [1]

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 全部或任何部份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。 WEIHAI BANK CO., LTD.* 威海銀行股份有限公司* （於 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司） （股 份 代 號：09677） 內幕消息 (1)建議向特定對象發行內資股 (2)建議非公開發行H股； (3)控 股 股 東 及 主 要 股 東 擬 認 購 內 資 股 的 潛 在 關 連 交 易； 及 (4)建議變更註冊資本並相應修訂公司章程相關條款 建議向特定對象發行內資股及建議非公開發行H股 董 事 會 欣 然 宣 佈，為 提 高 本 行 資 本 充 足 率 水 平，確 保 資 本 充 足 率 滿 足 監 管 要 求，保 障 各 項 業 務 穩 健 增 長，切 實 支 持 實 體 經 濟 發 展，於2025年7月31日，董 事會通過議案建議發行不超過758,020,103股內資股及不超過153,8 ...

Core Insights - Weihai Bank's Binzhou branch successfully issued a 10 million yuan loan secured by a company's core patent rights, demonstrating the effective transformation of "technological soft power" into tangible financial resources [1][2] - The financing model represents a new paradigm in the region, integrating intellectual property into asset-based financing, thereby enhancing the financial support for technology-driven enterprises [1] Group 1 - The textile technology company has been focusing on textile dyeing and processing, holding multiple patents that fill industry gaps, but faced financing challenges due to its asset-light model [1] - Weihai Bank's Binzhou branch developed a "technology flow" evaluation system that incorporates R&D investment, patent reserves, and technological barriers into credit assessments, facilitating tailored financing solutions for innovative companies [1] - The bank collaborated with professional evaluation agencies and intellectual property departments to efficiently complete patent value assessments and registration, significantly reducing the loan processing time [1] Group 2 - The successful implementation of the patent pledge loan highlights Weihai Bank's expertise in complex financial instruments and its strategic role in supporting new productive forces [2] - The bank aims to further integrate knowledge-based assets like patents and trademarks into its financial offerings, helping more technology leaders overcome financing obstacles and contributing to high-quality regional economic development [2]

Core Viewpoint - The banking industry is actively supporting the green transformation of high-carbon industries under the "dual carbon" goals, with innovative financial products being introduced to facilitate this transition [1][2]. Group 1: Financial Products and Innovations - Weihe Bank has launched a "sustainable water-saving loan" with a credit line of 270 million yuan to support energy-saving renovations for a thermal power company [2]. - Industrial Bank has issued a 200 million yuan loan to an aluminum company for its green transformation, linking loan interest rates to the company's energy consumption performance [2]. - As of the end of 2024, Industrial Bank's green financing scale for transformation sectors is expected to reach 192.7 billion yuan [2]. Group 2: Market Trends and Challenges - Transition finance is seen as a crucial supplement to green finance, focusing on supporting high-carbon industries in their orderly transition towards climate goals [3]. - Current transition financial products are primarily in the form of transition bonds and loans, with bonds dominating the market, while loan products have yet to achieve significant scale [3]. - There is a significant funding gap for low-carbon transitions in traditional high-carbon industries, indicating that transition finance could become a new growth point for financial institutions [5]. Group 3: Standardization and Policy Support - The development of transition finance is hindered by an incomplete standard system, with a need for quantifiable indicators and thresholds [5]. - The People's Bank of China is actively working on establishing transition finance standards for key industries, with pilot regions already seeing a cumulative loan amount of approximately 42.5 billion yuan [6].

Core Viewpoint - Weihai Bank is actively promoting green finance development, aligning with national strategies for low-carbon and high-quality growth, and has established a comprehensive green financial product system to support the real economy and green transformation [1][2]. Group 1: Green Financial Development - Since 2018, Weihai Bank has built a "1+3+5+N" green product system and issued 7 billion yuan in green financial bonds, with green loan balance reaching 51.513 billion yuan as of May 2025, a 38.19% increase from the beginning of the year [1][2]. - The bank has received multiple accolades, including being recognized as an advanced collective in green low-carbon high-quality development in Weihai City for two consecutive years [1]. Group 2: Strategic Initiatives - The bank has integrated green finance into its overall strategy by establishing a Green Finance Management Committee and launching a three-year action plan (2023-2025) [2]. - New innovative credit tools have been introduced, such as "Green Factory Loan" and "Technological Transformation Project Loan," with the former offering a 40 basis points reduction in loan FTP costs for green factory clients [2]. Group 3: Collaborative and Innovative Approaches - Weihai Bank has successfully implemented the first national marine sustainable development-linked loan and launched the "Green e-Chain" product to support core enterprises in green procurement [3]. - The bank has also introduced a carbon credit index insurance pledge loan for the fishery sector and a "Green Agricultural Loan" to provide low-cost financing for farmers, amounting to 440 million yuan in total support [3]. Group 4: Policy and Sustainability Focus - The bank has utilized central bank carbon reduction support tools to lower funding costs for green projects, with total project support amounting to 8.497 billion yuan as of May this year [3]. - Weihai Bank is the first urban commercial bank in Shandong Province to sign the United Nations Principles for Responsible Banking, emphasizing its commitment to sustainable development [3]. Group 5: Future Directions - The bank plans to continue enhancing its green financial services and contribute more significantly to the high-quality development of the real economy, focusing on market-oriented, professional, refined, and digital transformation [4].

Group 1 - The core viewpoint emphasizes the role of Weihai Bank in promoting green finance as a key strategy to support the real economy under the national "dual carbon" strategy [1][3] - Weihai Bank has established a comprehensive service matrix covering green technology research and development, application scenarios, and industrial transformation to meet regional green development needs [1] - The bank's innovative financial tools and optimized credit resource allocation aim to inject financial vitality into the region's green transformation [1] Group 2 - In Zibo, Weihai Bank issued a sustainable-linked loan of 45 million yuan to a pharmaceutical company, linking financing costs to water-saving efficiency [1] - The loan features a pricing mechanism that offers a 5 basis point interest rate discount if the company's water consumption decreases by 5% by mid-2025 [1] - This initiative creates a positive feedback loop for high-water-consuming industries, providing a replicable model for green transformation [1] Group 3 - In Tianjin, Weihai Bank innovatively provided an 8 million yuan loan using a "dual registration carbon quota pledge + sustainable development linkage" model [2] - The loan's interest rate is tied to the company's carbon emission reductions, offering discounts for a 10% decrease in CO2 emissions during the loan period [2] - This approach transforms energy-saving and emission-reduction achievements into "carbon benefits," exploring a market-driven path for green transformation [2] Group 4 - Weihai Bank issued a green loan of 9.5 million yuan to an agricultural development company facing cash flow challenges due to industry settlement models [2] - The loan supports seedling cultivation and procurement, alleviating short-term financial pressure while enhancing ecological benefits [2] - This initiative promotes a circular development model of "cultivating forests - carbon fixation - increasing income," achieving both economic and environmental benefits [2] Group 5 - Weihai Bank successfully supported a 300 million yuan green project loan for a plastic technology company, aimed at producing 93,600 tons of chlorinated polyethylene and 200,000 tons of polyaluminum chloride [3] - The new production is expected to save 30% in usage and 40% in costs compared to traditional products, advancing China's water treatment technology [3] - The bank's commitment to "green finance" aligns with its goal of contributing to high-quality economic development and ecological civilization [3]

Core Insights - In 2024, three listed city commercial banks in Shandong presented differentiated performance, with Qingdao Bank leading in net profit growth at 20.16%, while Weihai Bank had the highest net interest margin at 1.77% [1][2]. - Qilu Bank achieved the largest net profit of 4.986 billion yuan, followed by Qingdao Bank at 4.264 billion yuan and Weihai Bank at 1.992 billion yuan [1]. Financial Performance - Qingdao Bank ranked first in revenue with 13.498 billion yuan, followed by Qilu Bank at 12.496 billion yuan and Weihai Bank at 9.316 billion yuan, with Qingdao Bank also showing a revenue growth of 8.22% [3]. - Qilu Bank led in asset scale growth at 14.01%, with Qingdao Bank and Weihai Bank at 13.48% and 12.65% respectively [4]. Asset Quality - Qilu Bank had the highest return on equity (ROE) at 12.52%, while Qingdao Bank followed at 11.51% and Weihai Bank at 8.47% [6]. - Weihai Bank reported the highest non-performing loan (NPL) ratio at 1.41%, with Qilu Bank and Qingdao Bank at 1.14% and 1.19% respectively [7]. Business Structure - Qilu Bank's corporate banking business accounted for over 56% of its revenue, while Qingdao Bank's retail banking contributed significantly, with 27.61% of its revenue [8]. - Weihai Bank had the highest proportion of corporate banking business at 62.45%, while Qingdao Bank excelled in retail banking [8]. Loan and Deposit Growth - Qingdao Bank's total loans reached 340.69 billion yuan, growing by 12.53%, while Qilu Bank's loans were 337.14 billion yuan, growing by 12.31% [3]. - All three banks maintained double-digit growth in loans and deposits, although deposit growth rates showed a decline compared to the previous year [3].

Financial Performance - Net interest income for 2024 reached RMB 6,999.9 million, an increase of 5.68% compared to RMB 6,623.5 million in 2023[11]. - Total operating income was RMB 9,315.6 million, reflecting a growth of 6.64% from RMB 8,735.4 million in the previous year[11]. - Net profit attributable to shareholders was RMB 1,991.7 million, up 2.99% from RMB 1,933.8 million in 2023[11]. - Total assets increased to RMB 441,463.8 million, marking a 12.65% rise from RMB 391,876.8 million in 2023[11]. - Total loans amounted to RMB 210,331.2 million, a growth of 10.72% compared to RMB 189,965.2 million in the previous year[11]. - Total operating income for 2024 was RMB 93.16 billion, up RMB 5.80 billion or 6.64% from 2023[26]. - Net profit for the year was CNY 2.198 billion, an increase of CNY 0.082 billion, or 3.87% year-on-year[25]. - Operating expenses increased by 14.73% to RMB 22.38 billion in 2024, compared to RMB 19.50 billion in 2023[26]. - The company reported a significant increase in tax expenses, rising by 75.67% to RMB 3.08 billion in 2024[26]. Asset and Liability Management - Total assets reached CNY 441.46 billion, an increase of CNY 49.59 billion, or 12.65% compared to the end of 2023[23]. - Total deposits increased by CNY 26.89 billion, or 10.09%, compared to the end of 2023[23]. - Total loans increased by CNY 20.37 billion, or 10.72%, compared to the end of 2023[23]. - Total liabilities amounted to RMB 410,666.3 million, an increase of RMB 467.97 million or 12.86% from RMB 363,868.9 million[91]. - Customer deposits, the main source of funding, totaled RMB 293,489.5 million, an increase of RMB 26,893 million or 10.09% from RMB 266,596.2 million[94]. - The total amount of bonds issued by the company reached RMB 49.718 billion, an increase of RMB 12.272 billion or 32.77% from the end of 2023, driven by adjustments in the liability business structure and increased issuance of low-interest market funds[98]. Risk Management - The company has established a comprehensive risk management framework, including a board of directors, supervisory board, and specialized committees to oversee risk management policies and procedures[168]. - Credit risk management aims to ensure the safe development of credit business and asset quality, balancing risk and return while adhering to regulatory requirements[175]. - The company has implemented a full-process management system for market risk, including identification, measurement, monitoring, control, and reporting[178]. - The operational risk management policy has been revised to align with regulatory requirements, establishing a clear framework for risk identification and control[181]. - The company has established a clear and comprehensive credit risk management policy system, including guidelines for credit approval and management[175]. Digital Transformation and Technology - The bank's digital transformation strategy focuses on data standardization and online intelligence, enhancing its financial technology capabilities[149]. - The bank's total investment in information technology for 2024 is CNY 175.2555 million, accounting for 1.88% of operating income[149]. - The bank has 498 self-service banking facilities, including 239 smart devices equipped with facial recognition technology[142]. - The bank's online banking platform processed a total transaction amount of CNY 13.26434 trillion during the reporting period, serving approximately 697,700 online banking customers[144]. - The bank's mobile banking users increased by 19.22% to approximately 3.8 million, with total transactions processed amounting to CNY 209.365 billion[145]. Corporate and Retail Banking - Corporate banking business revenue increased to RMB 5,817.5 million, representing 62.45% of total revenue, up from 58.32% in the previous year[114]. - Retail banking business revenue decreased to RMB 1,691.7 million, accounting for 18.16% of total revenue, down from 20.27% in the previous year[114]. - The average interest rate for inclusive small and micro enterprise loans was 4.51%, with a total of 73,300 loan accounts supporting the funding needs of these enterprises[121]. - The balance of supply chain financing business reached 8.741 billion yuan by the end of the reporting period[123]. - Personal deposit balance increased to 142.096 billion yuan, up by 12.30% from the end of 2023[128]. Awards and Recognition - The bank has received multiple awards, including "Top Ten Urban Commercial Banks in China" and "Most Competitive Small and Medium Bank"[9]. - The company has been recognized with the highest ESG rating of "A" for two consecutive years, enhancing brand influence and social reputation[24]. - Tongda Financial Leasing was recognized as a "Leading Green Leasing Enterprise" and "Most Growth-Oriented Financial Leasing Company" in 2024[151].

Financial Performance - Weihai Bank reported a registered capital of RMB 5,980,058,344 as of December 31, 2024[10]. - In 2024, the bank's net interest income reached RMB 6,999.9 million, an increase of 5.68% compared to RMB 6,623.5 million in 2023[14]. - The bank's total assets as of the end of 2024 amounted to RMB 441,463.8 million, reflecting a growth of 12.65% from RMB 391,876.8 million in 2023[14]. - The net profit attributable to shareholders was RMB 1,991.7 million in 2024, up 2.99% from RMB 1,933.8 million in 2023[14]. - The bank's loan total reached RMB 210,331.2 million, marking a 10.72% increase from RMB 189,965.2 million in 2023[14]. - Operating income for the year was CNY 9.316 billion, an increase of CNY 0.582 billion or 6.64% year-on-year[26]. - Net profit for the year was CNY 2.198 billion, an increase of CNY 0.082 billion or 3.87% year-on-year[26]. - The cost-to-income ratio for 2024 is 22.88%, up from 21.31% in 2023[58]. - Pre-tax profit for 2024 was RMB 2.51 billion, an increase of RMB 214.6 million or 9.37% compared to 2023[64]. Risk Management - The report indicates that there were no significant risks identified that could adversely affect the bank's future development strategy and operational goals[7]. - The company has established a comprehensive risk management framework, including a board of directors, supervisory board, and senior management, to oversee credit, market, and information technology risks[170]. - The credit risk management policy aims to ensure stable development of credit business and asset quality, balancing risk and return while adhering to regulatory requirements[178]. - The company has implemented a full-process management system for market risk, including identification, measurement, monitoring, control, and reporting[181]. - The bank has successfully implemented operational risk management policies, ensuring no significant operational risk loss events occurred during the reporting period[183]. - The bank conducts quarterly liquidity stress tests to assess the impact of various risks on its operations and adjust emergency plans accordingly[187]. Capital and Equity - The bank's capital adequacy ratio stood at 13.76% in 2024, a slight increase from 13.38% in 2023[15]. - Total equity reached RMB 30.80 billion, an increase of RMB 2.79 billion or 9.96% from the end of 2023, with equity attributable to shareholders increasing by 12.46%[102]. - The core tier 1 capital ratio increased to 9.31% from 8.77% year-on-year[159]. - The total capital adequacy ratio improved to 13.76% from 13.38% year-on-year[159]. Loans and Advances - The total amount of loans and advances was RMB 210.33 billion, up RMB 20.37 billion or 10.72% from the end of 2023[106]. - The total amount of non-performing loans was RMB 2.96 billion, an increase of RMB 0.20 billion or 7.25% from the end of 2023[106]. - The non-performing loan ratio decreased by 0.04 percentage points to 1.41% as of the end of 2024[108]. - Individual loans decreased to RMB 43.30 billion, down RMB 1.10 billion or 2.48% from 2023[68]. Deposits and Liabilities - As of the end of 2024, total deposits amounted to RMB 293.49 billion, an increase of RMB 26.89 billion or 10.09% compared to the end of 2023[99]. - Total liabilities reached RMB 410,666.3 million as of December 31, 2024, an increase of RMB 467.97 million or 12.86% from RMB 363,868.9 million in 2023[94]. - The proportion of deposits in total liabilities was 73.53% as of December 31, 2024, compared to 75.30% in 2023[95]. Digital Transformation and Technology - The company aims to enhance its digital construction and service quality through technology integration with business departments[153]. - The bank's online banking platform processed a total transaction amount of CNY 13.26434 trillion during the reporting period[147]. - The number of mobile banking users increased by 19.22% to approximately 3.8 million by the end of the reporting period[148]. - The total investment in information technology for 2024 is CNY 175.2555 million, accounting for 1.88% of operating income[152]. Green Finance Initiatives - Green loan balance reached CNY 37.713 billion, an increase of CNY 11.692 billion or 44.93% year-to-date, accounting for 17.93% of total loans[26]. - The bank established a green finance department and green branches to enhance its green finance initiatives[26]. - The company actively supports key industries aligned with national policy, including green finance and supply chain financing[123]. Corporate Governance - The bank's board of directors confirmed the annual performance report for the fiscal year ending December 31, 2024, which has been audited and received a standard unqualified opinion[7]. - The report emphasizes the importance of accurate and complete financial reporting, with the board taking responsibility for the data presented[7]. - The board meeting that approved the annual report had full attendance with 15 directors present[7].

Capital and Shareholder Information - The registered capital of Weihai City Commercial Bank is RMB 5,980,058,344[8] - 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[144] - The top shareholder, Shandong Expressway Group, holds 2,126,237,528 shares, representing 35.56% of total shares[147] - The domestic shareholder count stands at 1,038 as of the reporting period[146] - The top three shareholders include Shandong High-Speed Group Company (47.16%), Weihai Finance Bureau (15.38%), and Shandong High-Speed (11.60%)[149] - The company has a significant concentration of ownership, with the top five shareholders holding over 75% of the total shares[154] Financial Performance - The report period ended on June 30, 2024, covering six months of financial performance[7] - Net interest income for the first half of 2024 was RMB 3,463.3 million, an increase of 5.21% compared to RMB 3,291.7 million in the same period of 2023[10] - Total operating income reached RMB 4,556.0 million, reflecting a growth of 4.76% from RMB 4,349.0 million year-on-year[10] - Net profit attributable to shareholders was RMB 1,074.5 million, up 2.58% from RMB 1,047.5 million in the previous year[10] - The net profit for the first half of 2024 was RMB 1.188 billion, an increase of RMB 0.034 billion, or 2.90% year-on-year[19] - The bank's total pre-tax profit for the first half of 2024 was RMB 1,415.9 million, an increase from RMB 1,288.5 million in the same period of 2023[88] Asset and Liability Management - Total assets as of June 30, 2024, amounted to RMB 422,864.1 million, representing a 7.91% increase from RMB 391,876.8 million at the end of 2023[11] - Total liabilities reached RMB 393,542 million, an increase of 8.15% from RMB 3,638,690 million at the end of 2023, primarily due to growth in deposits and issued bonds[70] - The total amount of loans and advances issued by the company reached RMB 205.42 billion, an increase of RMB 15.46 billion, or 8.14%, compared to the end of 2023[51] - The total deposits increased by RMB 15.14 billion, or 5.68%, while the total loans increased by RMB 15.46 billion, or 8.14% compared to the end of 2023[17] - The bank's liquidity ratio stood at 97.06%, significantly higher than 86.52% in the previous period[13] 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[5] - The bank has established a comprehensive risk management system covering credit risk, market risk, operational risk, liquidity risk, interest rate risk, and compliance risk, ensuring sustainable and healthy business development[128] - The bank's credit risk management framework includes differentiated credit access policies and a robust early warning system, enhancing risk monitoring and control capabilities[129] - The non-performing loan ratio remained stable at 1.45% as of June 30, 2024[13] - The company reported a total exposure of CNY 7.351 billion for significant related party transactions, accounting for 22.89% of net capital[194] Corporate Governance - The board consists of 15 members, including 5 executive directors, 5 non-executive directors, and 5 independent non-executive directors[158] - The supervisory board comprises 8 members, including 3 employee supervisors, 3 shareholder supervisors, and 2 external supervisors[160] - The company has established a comprehensive corporate governance structure, ensuring high levels of transparency and accountability[177] - The company held its 2023 annual general meeting on April 30, 2024, with 19 shareholders representing 4,811,198,888 voting shares, accounting for approximately 80.45% of the total voting shares[178] - The company has confirmed compliance with the securities trading standards for directors and supervisors during the reporting period[169] Digital Transformation and Innovation - The company implemented a digital transformation project focusing on "data standardization, online standardization, and online intelligence" to enhance business growth[18] - The bank is committed to digital transformation, enhancing its core competitiveness through technology empowerment[111] - The bank has a total of 485 self-service banking facilities, including 228 smart devices, enhancing customer service and operational efficiency[112] - The online banking platform has approximately 674,800 customers, with a total transaction volume of CNY 592.68 billion during the reporting period[114] - The mobile banking application has around 3.51 million users, processing transactions totaling CNY 106.38 billion in the reporting period[115] Shareholder and Employee Relations - The company emphasizes the importance of professional development within its workforce, aiming to build a team characterized by professionalism, expertise, and innovation[143] - The total number of employees reached 3,320, with 55.9% being female and 22.4% aged 30 or younger[170] - 96.1% of employees hold a bachelor's degree or higher, contributing to a culture of innovation and responsiveness to market changes[170] - The company is committed to improving employee and customer satisfaction indices, focusing on creating a positive environment for both[143] Compliance and Regulatory Framework - The company has launched a "Compliance Year" initiative to enhance compliance culture and address violations effectively[139] - Anti-money laundering measures were reinforced, with no incidents of money laundering or terrorist financing reported during the period[140] - Legal risk management has been improved through online document review and enhanced training on new laws and regulations[141] - The report highlights the regulatory framework governing the ownership and control of commercial banks in China[153] - The company maintained sufficient public float, complying with the minimum requirements of the listing rules[195]