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].

Core Viewpoint - The 2024 annual reports of listed banks reveal significant performance salary clawbacks, with a total amount exceeding 113 million yuan across nine banks, indicating a growing trend in enforcing accountability in executive compensation [1][4]. Summary by Category Performance Salary Clawbacks - Nine listed banks have disclosed their performance salary clawback situations in their 2024 annual reports, including major banks like Bank of China, Zhejiang Commercial Bank, and Bohai Bank [1][4]. - The total amount of clawbacks reported by these banks exceeds 113 million yuan, with Bank of China leading at 32.5 million yuan [1][4]. - The average clawback amount per person was highest at Bohai Bank, reaching 39,264.71 yuan, while Bank of China and Harbin Bank also reported significant average clawbacks exceeding 10,000 yuan [2][4]. Year-on-Year Comparison - Compared to 2023, several banks, including China Merchants Bank and Weihai Bank, did not disclose specific clawback amounts for 2024, despite having reported significant figures in the previous year [6]. - In 2023, China Merchants Bank had the highest clawback amount at 43.29 million yuan, affecting 4,415 employees with an average clawback of approximately 9,805 yuan [6]. Disclosure Trends - Zhejiang Commercial Bank and Zhongyuan Bank disclosed specific clawback amounts for the first time in 2024, indicating an improvement in transparency [7]. - Bohai Bank and Dongguan Rural Commercial Bank have consistently disclosed their clawback amounts for three consecutive years, showing a commitment to accountability [5][6]. Regulatory Context - The regulatory framework for performance salary clawbacks has been strengthened over the years, with guidelines established by the former China Banking Regulatory Commission and the China Banking and Insurance Regulatory Commission [10][11]. - As of 2023, over 95% of banking institutions have implemented performance salary clawback mechanisms, reflecting a significant shift towards more robust governance in the banking sector [11].

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].

威海银行创新落地"林业碳汇预期收益权，质押 +CCER开发挂钩"贷款 为深入贯彻国家"双碳"战略部署，威海银行积极探索绿色金融服务模式创新，近日成功为天津市蓟州区 某苗圃企业发放1000万元"林业碳汇预期收益权质押+CCER（国家核证自愿减排量）开发挂钩"贷款， 通过以"碳"换"贷"盘活林业资源，破解企业融资难题，为区域绿色经济发展注入新动能。 业务办理过程中，威海银行携手天津排放权交易所，借助专业评估模型，对林业碳汇预期收益权价值进 行精准量化，为林业生态产品赋予了清晰的"价格标签"，确保贷款质押物价值的科学性和合理性。该笔 业务的成功落地，实现了环境效益与经济效益的深度协同，丰富了信贷增信担保方式，为区域绿色金融 领域打造出可复制、可推广的创新产品模板，开辟了以生态权益质押的新融资渠道，帮助山间"绿叶 子"变成致富"钱袋子"。 下一步，威海银行将持续深耕绿色金融，聚焦打造"绿色成金"特色品牌，探索"碳汇+"模式，持续挖掘 金融支持绿色经济发展的新方向、新渠道，以金融之力激活生态资源的经济价值，助力区域经济高质量 发展与生态保护协同共进。 天津市蓟州区农林产业集聚，威海银行聚焦区域特色优势，主动对接当地农林 ...

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]

Financial Performance - The unaudited interim results for Weihai City Commercial Bank for the six months ended June 30, 2024, were announced[1]. - 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[9]. - Total operating income reached RMB 4,556.0 million, reflecting a growth of 4.76% from RMB 4,349.0 million year-on-year[9]. - The bank's net profit for the first half of 2024 was RMB 1,188.2 million, a 2.90% increase from RMB 1,154.7 million in the same period of 2023[9]. - The total comprehensive income for the period amounted to RMB 1,987,611 thousand, a significant increase of 41.1% from RMB 1,408,546 thousand in 2023[200]. - The bank's basic and diluted earnings per share remained stable at RMB 0.18 for both 2024 and 2023[200]. - The net income attributable to shareholders was RMB 1,074,481 thousand, slightly up from RMB 1,047,456 thousand in the same period last year[199]. - The bank reported a decrease in commission income, with net commission income falling to RMB 259,033 thousand from RMB 343,901 thousand, a decline of 24.8%[199]. - The bank's investment securities net income increased to RMB 680,330 thousand, up 21.8% from RMB 558,287 thousand in the previous year[199]. - The bank's asset impairment losses were slightly reduced to RMB 2,169,585 thousand from RMB 2,192,199 thousand, indicating improved asset quality management[199]. 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 and the measures taken to address them in the report[4]. - The bank has established a comprehensive risk management system covering various risk types, including credit risk, market risk, operational risk, and liquidity risk, ensuring sustainable and healthy business development[128]. - The bank's credit risk management framework includes differentiated credit access policies and a robust monitoring mechanism, with a focus on early detection and response to potential risks[129]. - The bank closely monitors liquidity risk, adjusting asset-liability structures dynamically to ensure liquidity risk remains safe and controllable, meeting regulatory requirements[132]. - The bank has set specific limits for interest rate risk management for 2024, regularly monitoring compliance with these limits[133]. - The bank has strengthened its information technology risk management, enhancing system maintenance and monitoring to ensure stable operation[135]. - The bank 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]. Capital and Assets - The bank's 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[10]. - The total equity attributable to shareholders increased by 5.76% to RMB 23,416.6 million from RMB 22,140.8 million at the end of 2023[10]. - The bank's core Tier 1 capital adequacy ratio improved to 8.97% as of June 30, 2024, up from 8.77% at the end of 2023[12]. - The total capital adequacy ratio increased to 13.55% from 13.38% at the end of 2023[124]. - Total liabilities as of June 30, 2024, amount to RMB 393,542 million, an increase of RMB 2,967.3 million or 8.15% from the end of 2023[70]. - The total amount of loans and advances issued as of June 30, 2024, is RMB 205,424.9 million, an increase from RMB 189,965.2 million as of December 31, 2023, representing a growth of 8.06%[59]. Loans and Deposits - The total loan amount increased by 8.14% to RMB 205,424.9 million from RMB 189,965.2 million at the end of 2023[10]. - Total deposits increased by RMB 15.14 billion, growing 5.68% from the end of 2023[16]. - As of June 30, 2024, total deposits amounted to RMB 289.61 billion, an increase of RMB 15.63 billion or 5.70% compared to the end of 2023[72]. - The amount of mortgage loans is RMB 66,629.5 million, accounting for 32.43% of the total loans as of June 30, 2024, compared to 34.35% (RMB 65,258.2 million) at the end of 2023[59]. - The amount of guaranteed loans is RMB 72,194.9 million, representing 35.14% of the total loans as of June 30, 2024, compared to 36.58% (RMB 69,487.2 million) at the end of 2023[59]. 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[144]. - The largest shareholder, Shandong High-speed 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 report date[146]. - The bank's major shareholders include entities with over 5% equity, such as Shandong High-Speed Group and Weihai Municipal Finance Bureau, which can influence management decisions[153]. - The bank's governance is influenced by major shareholders, which include state-owned enterprises and local government entities[154]. 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[178]. - The board of directors has formed six specialized committees to provide advice on decision-making and oversee financial activities[178]. - The company adheres to the remuneration management system in compliance with national laws, including performance-based and long-term incentive pay[172]. Digital Transformation and Innovation - The bank is focused on digital transformation to enhance core competitiveness and has established a dedicated internet finance department[111]. - The bank is advancing its digital transformation strategy, emphasizing data standardization and online intelligence[118]. - The integration of technology and business operations is enhancing service efficiency and innovation capabilities[119]. - 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]. Employee and Customer Engagement - The total number of employees reached 3,320, with 55.9% being female and 22.4% aged 30 or below[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 emphasizes talent development through various training programs to enhance the core competitiveness of its workforce[173]. - The company is committed to improving employee and customer satisfaction indices, focusing on making employees happy and customers satisfied[143].

Financial Performance - Net interest income for 2023 reached RMB 6,623.5 million, a 2.68% increase from RMB 6,450.5 million in 2022[13]. - Net profit attributable to shareholders for 2023 was RMB 1,933.8 million, reflecting a 1.44% increase from RMB 1,906.4 million in 2022[13]. - Total operating income for 2023 was RMB 8,735.4 million, up 5.36% from RMB 8,290.9 million in 2022[13]. - The bank's asset impairment losses increased to RMB 4,493.3 million, a 7.75% rise from RMB 4,170.0 million in 2022[13]. - Total assets increased to RMB 391,876.8 million, a 14.02% increase from RMB 343,703.0 million in 2022[14]. - Total loans reached RMB 189,965.2 million, reflecting a 15.62% growth compared to RMB 164,297.2 million in the previous year[14]. - Total liabilities rose to RMB 363,868.9 million, marking a 14.43% increase from RMB 317,970.4 million in 2022[14]. - Total equity increased to RMB 28,007.9 million, an 8.84% rise from RMB 25,732.6 million in 2022[14]. - The bank's liquidity ratio improved to 86.52%, compared to 79.09% in the previous year[15]. - The non-performing loan ratio improved slightly to 1.45%, compared to 1.46% in the previous year[15]. Risk Management - The company has not identified any significant risks that could adversely affect its future development strategy and operational goals[4]. - The report includes a detailed description of the main risks faced by the company and the measures taken to address them[4]. - The bank's risk management system includes a comprehensive structure with specialized committees under the board of directors, including the Risk Management Committee and the Audit Committee[138]. - The bank aims to ensure stable development of credit business and asset quality while balancing risk and return through a well-defined credit risk management policy[142]. - The bank has implemented a differentiated credit approval policy to enhance risk control and ensure compliance with regulatory requirements[142]. - Market risk management focuses on controlling interest rate and exchange rate risks, with established processes for risk identification, measurement, monitoring, and reporting[143]. - The bank has set market risk limits for 2023, ensuring that all market risk indicators remain within the approved thresholds[144]. - The bank's operational risk management framework has been strengthened, focusing on the identification, monitoring, and assessment of key risk indicators[145]. - The bank's liquidity risk management policies emphasize the importance of maintaining sufficient funds to meet payment obligations and support business operations[146]. Corporate Governance - The bank's board consists of 15 directors, including 5 executive directors, 5 non-executive directors, and 5 independent non-executive directors, with a term of three years[177]. - The supervisory board is composed of 8 members, including 3 employee supervisors, 3 shareholder supervisors, and 2 external supervisors, also serving a three-year term[179]. - The bank's governance structure includes nominations from major shareholders for board and supervisory positions, ensuring representation[176]. - The bank's compliance with the interim measures for commercial bank equity management is highlighted, ensuring transparency in shareholder influence[175]. - The bank's leadership structure reflects a commitment to diversity and expertise, with members holding advanced degrees in finance and management[187][189]. Digital Transformation and Innovation - The bank aims to enhance customer experience through a digital transformation strategy focusing on online and offline integration[11]. - The bank's digital transformation projects are nearing completion, enhancing business growth capabilities[19]. - The bank emphasizes digital transformation and technology empowerment to enhance customer experience and marketing efficiency[95]. - The bank's digital banking strategy focuses on data standardization and online intelligence, aiming to improve operational management and service models[124]. Shareholder Structure - The total number of shares issued by the company as of December 31, 2023, is 5,980,058,344, including 4,971,197,344 domestic shares and 1,008,861,000 H shares[164]. - The top ten domestic shareholders hold a total of 3,993,000,000 shares, representing approximately 66.78% of the total shares[166]. - Shandong Expressway Group Company holds 2,126,237,528 shares, accounting for 35.56% of the total shares[166]. - The largest shareholder, Shandong Expressway Group, has a direct or indirect holding of 2,820,195,515 shares, representing 47.16% of the company's equity[168]. Future Outlook and Strategic Direction - The economic outlook for 2024 indicates a resilient Chinese economy with ongoing structural improvements and a favorable environment for financial services[160]. - The bank plans to focus on high-quality development and service provision, aligning with national financial reform initiatives[161]. - Key strategic measures for 2024 include enhancing core competitiveness, improving compliance, and promoting digital transformation[162]. - The bank aims to increase operational efficiency by controlling costs and enhancing revenue across assets and liabilities[163].