Financial Performance - The bank reported a dividend distribution of RMB 1.99 billion for the year ending December 31, 2022, at RMB 2.90 per 10 shares (tax included) [3]. - The company reported a net profit of RMB 500 million for the first half of 2023, representing a year-on-year increase of 15% [7]. - Operating income for the first half of 2023 reached RMB 7,265,200 thousand, a slight increase of 0.73% compared to RMB 7,212,689 thousand in the same period of 2022 [19]. - Net profit attributable to shareholders was RMB 3,582,891 thousand, reflecting a growth of 1.20% from RMB 3,540,384 thousand year-on-year [19]. - The net profit for the first half of 2023 was RMB 3.68 billion, an increase of RMB 0.33 billion or 0.91% year-on-year [28]. - The bank's total assets reached RMB 100 billion, an increase of 10% compared to the previous year [8]. - Total assets as of June 30, 2023, amounted to RMB 686,211,937 thousand, representing a 4.34% increase from RMB 657,689,972 thousand at the end of 2022 [19]. - The bank's total liabilities reached RMB 630,630,349 thousand, up 4.43% from RMB 603,870,043 thousand at the end of 2022 [19]. - The total equity of the group was RMB 55.58 billion, an increase of RMB 1.76 billion or 3.27% from RMB 53.82 billion at the end of 2022 [85]. 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 management emphasizes a comprehensive risk management system based on compliance and risk control [5]. - The company has established a comprehensive risk management system to effectively prevent and mitigate various risks [15]. - The bank has implemented standardized credit risk management policies and procedures, continuously improving its credit risk management system [145]. - The bank's liquidity risk management strategies include maintaining a balance between profitability and liquidity, ensuring operational safety [146]. - The bank has established a comprehensive large exposure risk management framework, ensuring compliance with regulatory requirements for large credit exposures [160]. - The bank's liquidity risk management indicators consistently met regulatory standards throughout the reporting period [147]. Strategic Initiatives - The bank's strategic plan includes the "1+12348" development framework aimed at high-quality growth through digitalization and group integration [5]. - The bank's "133" project focuses on promoting high-quality agriculture, livable rural areas, and farmer prosperity as part of its rural revitalization strategy [5]. - Future strategies focus on high-quality development, emphasizing customer-centricity, market orientation, and profitability, with a push towards digital transformation and group operations [11]. - The bank is actively supporting the "Hundred Counties, Thousand Towns, and Ten Thousand Villages" high-quality development project, aiming to enhance financial services for the real economy [169]. - The bank is committed to product service innovation, focusing on customer needs and enhancing the online and standardized improvement of personal and small micro-loan products [171]. Digital Transformation - The company focuses on digital transformation, aiming to create a smart digital bank through technology-driven value creation [15]. - The bank has implemented 66 digital transformation pilot projects in 2023 to enhance data management and business capabilities [128]. - The bank's technology investment totaled RMB 158.52 million during the reporting period, with a workforce of 695 technology personnel [140]. - The bank's digital transformation strategy includes 53 pilot projects, enhancing data governance and operational capabilities [140]. Customer Base and Services - User base expanded to 1.2 million active customers, reflecting a growth of 20% year-on-year [8]. - Retail customer base reached 20.19 million, an increase of 205,200 customers or 1.03% from the beginning of the year [130]. - The bank's personal deposit balance was RMB 288.342 billion, representing a year-on-year growth of 6.77% [129]. - The bank's small and micro enterprise loans (under RMB 10 million) totaled RMB 37.737 billion, growing by 14.45% since the beginning of the year [126]. Loan and Deposit Growth - Customer loans and advances (excluding accrued interest) totaled RMB 355,061,579 thousand, an increase of 6.95% from RMB 331,997,701 thousand at the end of 2022 [19]. - The loan-to-deposit ratio was 73.13%, an increase of 0.76 percentage points from the end of the previous year [26]. - The group's total loans amounted to RMB 355.06 billion, an increase of RMB 23.06 billion or 6.95% from the end of the previous year [27]. - Customer deposits reached RMB 493.67 billion as of June 30, 2023, an increase of RMB 28.00 billion or 6.00% from RMB 465.69 billion at the end of 2022 [80]. Non-Performing Loans - The non-performing loan ratio improved to 1.5%, down from 1.8% in the previous period [7]. - The non-performing loan ratio stood at 0.86%, a decrease of 0.04 percentage points compared to the end of the previous year, while the provision coverage ratio increased by 24.51 percentage points to 398.34% [10]. - The total amount of normal loans was RMB 346.169 billion, accounting for 97.50% of total loans, an increase of RMB 2.154 billion compared to the end of the previous year [93]. - The non-performing loan ratio for inclusive small and micro enterprise loans was 1.34%, well below the group's overall non-performing loan ratio [136]. Governance and Compliance - The company has established a governance mechanism that includes a core leadership committee, a shareholders' meeting, a board of directors, a supervisory board, and an executive management team to enhance governance and risk control [182]. - The bank has implemented a compliance culture enhancement program to improve employee awareness of compliance responsibilities [158]. - The bank has established a clear governance structure with defined responsibilities and a multi-level internal control system to ensure compliance and orderly operations [165]. Community and Environmental Initiatives - The bank's community support initiatives included donations of RMB 2 million to improve living conditions in 16 villages and communities [178]. - The bank's green credit balance reached RMB 11.064 billion, an increase of RMB 1.141 billion, representing a growth rate of 11.50% [179]. - The bank has invested RMB 9.319 billion in green bonds, supporting various environmental projects [179]. - The bank's consumer rights protection center conducted 727 consumer protection reviews, providing 69 risk mitigation suggestions with a 100% adoption rate [176].

Financial Performance - Dongguan Rural Commercial Bank reported an interim unaudited consolidated performance for the six months ended June 30, 2023[1]. - The company reported a net profit of RMB 1.2 billion for the first half of 2023, representing a year-on-year increase of 15%[5]. - Operating income for the first half of 2023 reached RMB 7,265,200 thousand, a 0.73% increase compared to RMB 7,212,689 thousand in the same period of 2022[19]. - Pre-tax profit for the first half of 2023 was RMB 3,998,415 thousand, reflecting a 1.03% increase from RMB 3,957,731 thousand in the previous year[19]. - Net profit attributable to shareholders for the first half of 2023 was RMB 3,582,891 thousand, up by 1.20% from RMB 3,540,384 thousand in the same period of 2022[19]. - The group achieved a net profit of RMB 3.68 billion for the first half of 2023, an increase of RMB 0.33 billion or 0.91% year-on-year[28][29]. Assets and Liabilities - Total assets reached RMB 150 billion, up 10% compared to the same period last year[6]. - As of June 30, 2023, the total assets of Dongguan Rural Commercial Bank reached RMB 686.212 billion, with total deposits of RMB 485.890 billion and total loans of RMB 355.062 billion[10]. - Total liabilities as of June 30, 2023, were RMB 630,630,349 thousand, which is a 4.43% increase from RMB 603,870,043 thousand at the end of 2022[19]. - Total equity attributable to shareholders increased to RMB 52,830,635 thousand, up by 3.33% from RMB 51,127,714 thousand at the end of 2022[19]. 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's strategic focus includes enhancing rural revitalization financial services and expanding its market presence through innovative financial products[9]. - The bank has implemented a "133" project for rural revitalization financial services, enhancing its competitive edge in the market[14]. - The bank's governance structure is designed to ensure a balanced shareholder representation, including state-owned, private, foreign, and individual investors[16]. - The bank has established a comprehensive risk management framework, ensuring full coverage and control of various business risks[144]. Digital Transformation and Technology - The company is focusing on digital transformation, with a budget allocation of RMB 200 million for technology upgrades[5]. - The bank's technology investment amounted to RMB 158.5152 million during the reporting period, with a total of 695 technology personnel[140]. - The bank has identified 66 pilot projects for digital transformation in 2023, aiming to enhance data management and business capabilities[128]. - The bank's online banking platform has been upgraded to improve customer experience and operational efficiency[140]. Customer and Market Expansion - User base expanded to 5 million active customers, a growth of 20% year-on-year[5]. - The bank aims for high-quality development, focusing on five core businesses: retail finance, corporate finance, microfinance, interbank finance, and digital finance, to enhance its market position[11]. - Market expansion efforts include entering two new provinces by Q4 2023[6]. - The bank's retail customer base reached 20.19 million, an increase of 205,200 or 1.03% from the beginning of the year[130]. Shareholder and Capital Structure - The total number of shares issued by the company is approximately 6.889 billion, with domestic shares accounting for about 5.740 billion (83.33%) and H-shares approximately 1.148 billion (16.67%)[183]. - The top ten shareholders hold a combined total of 30.11% of the company's shares, with the largest domestic shareholder, Guangdong Yuefeng Investment Co., Ltd., owning 4.34%[186]. - The company has not experienced any changes in share capital during the reporting period, and no new shares were issued[185]. - The bank has no shareholders holding 5% or more of the shares, excluding Hong Kong Central Clearing (Agent) Co., Ltd., as of June 30, 2023[193]. Awards and Recognition - Dongguan Rural Commercial Bank has received multiple awards, including the "Dongguan Government Quality Award" and "National Benchmark Bank" recognition from the China Banking and Insurance Regulatory Commission[10]. - In the "Forbes 2023 Global 2000" list, Dongguan Rural Commercial Bank was ranked 1,208th, improving by 70 places from the previous year[10]. - The bank was ranked 38th in the "2023 China Banking Industry Top 100" list based on core Tier 1 capital net indicators, and 5th among rural commercial banks in China[10]. Community and Social Responsibility - The bank donated RMB 2 million to support community improvement projects, enhancing the living environment for residents in 16 villages and communities[178]. - The bank organized 165 financial knowledge education activities, reaching 190,800 consumers, and published 56 online educational messages, impacting 531,400 consumers[176]. - The bank's consumer complaint resolution rate reached 100%, handling a total of 594 complaints in the first half of the year[176].

Financial Performance - The bank plans to allocate 10% of its audited net profit for 2022, amounting to RMB 586 million, to statutory surplus reserves[6]. - A cash dividend of RMB 0.29 per share (before tax) is proposed, pending approval at the 2022 annual general meeting[6]. - The bank's financial report for 2022 has been audited by KPMG and received a standard unqualified opinion[6]. - Operating income for 2022 was RMB 13,235,957 thousand, representing a year-on-year increase of 1.84%[28]. - Pre-tax profit reached RMB 6,284,062 thousand, up 4.92% compared to the previous year[28]. - Net profit for 2022 was RMB 6,082,525 thousand, reflecting a growth of 6.66% year-on-year[28]. - Total assets as of the end of 2022 amounted to RMB 657,689,972 thousand, an increase of 10.84% from the previous year[30]. - Customer loans and advances totaled RMB 331,997,701 thousand, marking an 11.37% increase year-on-year[30]. - The average return on total assets for 2022 was 0.97%, a decrease of 0.03 percentage points from the previous year[31]. - The average return on equity was 11.72%, down 1.15 percentage points compared to 2021[31]. - The net interest margin for 2022 was 1.89%, a slight decrease of 0.01 percentage points from the previous year[31]. - The cost-to-income ratio increased to 34.78%, up 0.60 percentage points year-on-year[31]. - Earnings per share for 2022 was RMB 0.86, a decrease of 7.53% compared to the previous year[29]. Risk Management - The bank has not identified any significant risks that could adversely affect its future development strategy and operational goals[6]. - The report includes a detailed description of the main risks faced by the bank and the measures taken to address them[6]. - The company has established a comprehensive risk management system based on compliance and risk control[12]. - The company has a robust governance structure with a diverse equity composition, ensuring effective management and stability[25]. - The company has established a comprehensive risk management framework, ensuring risk tolerance aligns with capital adequacy levels[144]. - The bank's liquidity risk management strategy effectively maintained liquidity risk within acceptable limits, with no significant liquidity risk events reported during the period[146]. - The bank's total credit risk was well-controlled, with the non-performing loan ratio maintained within management targets[145]. Strategic Initiatives - The company aims to enhance rural revitalization through the "133" project, focusing on high-quality agriculture, livable rural areas, and farmer prosperity[10]. - The "1+12348" strategic plan targets high-quality development by leveraging digitalization and group operations, with a focus on technology, talent, and capital as key drivers[10]. - The company is committed to a regional group operation strategy, focusing on the Guangdong-Hong Kong-Macao Greater Bay Area, with a new operational framework[12]. - The company is actively pursuing new product development and technological advancements to enhance its service offerings[12]. - The company plans to expand its market presence through strategic partnerships and potential acquisitions[12]. - The bank's management is focused on digital transformation and group development, aiming to enhance core competitiveness and achieve high-quality growth[128]. Customer Engagement and Services - The company reported a significant increase in user engagement, extending financial services to the entire industrial chain, supply chain, and value chain[12]. - The company aims to build a regional modern agricultural commercial bank group, focusing on high-quality development led by strong party governance[23]. - The company focuses on core customer groups, including modern agriculture, advanced manufacturing, and small and micro enterprises, to create a vibrant customer ecosystem[24]. - The company has established partnerships with 597 grassroots party organizations in villages, achieving a 100% coverage rate for party-building initiatives[192]. - The bank's rural financial service center has deployed nearly 4,000 financial service personnel to enhance financial service accessibility in rural areas[191]. Loan and Asset Quality - Non-performing loan ratio stood at 0.90% with a provision coverage ratio of 373.83%, reflecting strong asset quality and stable risk management[15]. - Loans to the manufacturing sector reached RMB 48.3 billion, an increase of 22.84% year-on-year, highlighting the commitment to support the real economy[16]. - Loans for rural revitalization exceeded RMB 66.7 billion, up 18.51% from the beginning of the year, demonstrating a focus on agricultural finance[16]. - The total amount of loans and advances as of December 31, 2022, was RMB 331.99 billion, with a non-performing loan (NPL) amount of RMB 2.87 billion, resulting in an NPL ratio of 0.90%[102]. - The total amount of mortgage loans was RMB 170.43 billion, with an NPL ratio of 0.83%[104]. - The total amount of guaranteed loans was RMB 84.45 billion, with an NPL ratio of 0.53%[104]. Digital Transformation - The bank's digital transformation strategy aims to create a "smart digital bank" with a focus on organizational innovation and data governance[168]. - The bank has launched 16 data empowerment projects and developed 20 self-researched machine learning algorithm models, marking a significant innovation breakthrough[129]. - The bank's smart customer service systems have improved operational efficiency in marketing, risk warning, and overdue collection[169]. - The bank has built a data governance framework and completed the planning for a data middle platform to enhance operational efficiency[168]. - The bank's new organizational structure for digital transformation includes a dedicated data management team to standardize and professionalize data management[168]. Community and Social Responsibility - The company has donated RMB 10.3612 million to support educational initiatives as part of its poverty alleviation efforts[184]. - The total amount allocated for relief assistance reached RMB 9.613 million, actively participating in rural revitalization projects[184]. - The company conducted 1,513 consumer protection education activities, reaching 2.1788 million consumers in 2022[183]. - The bank organized nearly 4,000 personnel to conduct over 600 volunteer activities in rural areas, promoting financial literacy and support[180].

Financial Performance - Dongguan Rural Commercial Bank reported a net profit of RMB 5.86 billion for the year 2022, with a proposed cash dividend of RMB 0.29 per share[5]. - The bank plans to allocate 10% of its net profit, amounting to RMB 5.86 billion, to statutory surplus reserves and general reserves[5]. - Total assets of the group reached RMB 657.69 billion, with total deposits at RMB 459.16 billion and total loans at RMB 331.99 billion, maintaining industry leadership in the region[14]. - Net profit for the group was RMB 6.083 billion, representing a growth of 6.66%, with ROA and ROE at 0.97% and 11.72% respectively, indicating stable operational efficiency and improving profitability[14]. - Operating income for 2022 was RMB 13,235,957 thousand, an increase of 1.84% compared to RMB 12,996,314 thousand in 2021[27]. - Net profit for 2022 reached RMB 6,082,525 thousand, reflecting a growth of 6.66% from RMB 5,702,920 thousand in 2021[27]. - The average return on total assets for 2022 was 0.97%, down from 1.00% in 2021[30]. - The net interest margin for 2022 was 1.89%, slightly decreased from 1.90% in 2021[30]. - The cost-to-income ratio for 2022 was 34.78%, an increase from 34.18% in 2021[30]. Risk Management - The bank's management has emphasized the importance of risk management and has detailed the main risks faced during operations in the management discussion section[5]. - The board of directors has not identified any significant risks that could adversely affect the bank's future development strategy and operational goals[5]. - The company is committed to compliance and risk control as part of its comprehensive risk management framework[9]. - The company has implemented a comprehensive risk management system, ensuring asset quality remains at a high level while promoting sustainable business development[24]. - The bank's non-performing loan ratio stood at 0.90%, with a provision coverage ratio of 373.83%, reflecting strong asset quality and manageable overall risk[14]. - The bank's non-performing loan ratio was controlled within the management target, indicating effective credit risk management[144]. - The company has implemented strict asset quality assessments in response to external economic pressures, including U.S. tightening policies and the Russia-Ukraine conflict[96]. Digital Transformation - The bank aims to enhance digital transformation by improving data analysis, precision marketing, and intelligent risk control capabilities, aiming to create a smart digital banking experience[16]. - The bank's digital transformation strategy aims to create a "smart digital bank," with a focus on organizational innovation and data governance[167]. - The bank has increased the efficiency of account opening for corporate and individual customers by 62% and 38% respectively[168]. - The company is accelerating its digital transformation through financial technology innovations, aiming to create a "smart digital bank"[24]. - The bank has built a digital ecosystem by integrating various online financial services to meet diverse customer needs[167]. Customer Service and Market Strategy - The company aims to strengthen its core competitiveness through a "four pillars and eight columns" system, focusing on customer management, core business, risk management, and organizational management[9]. - The company is committed to providing comprehensive financial services to strategic emerging industries and small and micro enterprises, aiming to alleviate financing difficulties[15]. - The company aims to enhance financial services through digital and intelligent means, focusing on product innovation and marketing[198]. - The company has established a governance mechanism that includes a core leadership committee, shareholder meetings, a strategic decision-making board, and a supervisory board to enhance risk management and decision-making processes[187]. - The bank's retail customer base reached 19.99 million, an increase of 420,200 customers or 2.15% year-on-year[131]. Loans and Financing - Loans to the manufacturing sector exceeded RMB 48.3 billion, an increase of 22.84% from the beginning of the year, highlighting the bank's commitment to supporting the real economy[15]. - Loans for rural revitalization exceeded RMB 66.7 billion, up 18.51% year-to-date, demonstrating the bank's focus on agricultural finance[15]. - The total amount of customer loans and advances was RMB 331.99 billion, reflecting an increase of 33.88 billion or 11.37%[78]. - The total amount of personal loans was RMB 114.43 billion, with an NPL balance of RMB 1.49 billion, resulting in an NPL ratio of 1.30%[103]. - The balance of loans for modern agriculture reached RMB 667.34 billion, accounting for 23.71% of the bank's general loans[129]. Governance and Compliance - The bank has established a governance structure that balances diverse stakeholder interests, ensuring stability and professionalism in management[24]. - The bank's internal audit system is led directly by the chairman, with a focus on independent and objective auditing practices[165]. - The bank has implemented a dual main audit mechanism combining business and data audits, enhancing the application of big data in auditing[166]. - No significant compliance risk events occurred during the reporting period, indicating effective compliance risk management practices[157]. - The bank has established a multi-level internal control organizational structure to ensure compliance and orderly operations[164]. Community and Social Responsibility - The company has donated RMB 10.3612 million to support educational initiatives as part of its poverty alleviation efforts, contributing to rural revitalization[183]. - The company conducted 1,513 consumer protection education activities in 2022, reaching 2.1788 million consumers, enhancing public awareness of fraud prevention[182]. - The bank's rural revitalization initiative achieved a coverage rate of 96.49% for household registration, with 349,500 households registered by the end of 2022[179]. - The company has actively supported the construction of demonstration villages with a total of RMB 9.613 million allocated for relief and assistance projects[183]. - The company has established a comprehensive risk management process for environmental and social risks, implementing strict credit approval processes for high-pollution industries[185].

Financial Performance - Operating income for the six months ended June 30, 2022, was RMB 7,212,689 thousand, an increase of 11.17% compared to RMB 6,487,923 thousand for the same period in 2021[19]. - Pre-tax profit for the same period was RMB 3,957,731 thousand, reflecting a growth of 14.04% from RMB 3,470,478 thousand in the previous year[19]. - Net profit reached RMB 3,642,068 thousand, up 12.88% from RMB 3,226,495 thousand year-on-year[19]. - The net profit attributable to shareholders was RMB 3,540,384 thousand, representing a 12.67% increase compared to RMB 3,142,240 thousand in the prior year[19]. - The basic earnings per share for the six months ended June 30, 2022, was RMB 0.51, down 7.27% from RMB 0.55 in the same period of 2021[20]. - The diluted earnings per share also stood at RMB 0.51, reflecting the same percentage decrease as the basic earnings per share[20]. - The net asset per share attributable to shareholders increased to RMB 7.09 from RMB 6.58, marking a 7.75% rise[20]. - The group achieved operating income of RMB 7.213 billion, an increase of 11.17% year-on-year[43]. - Net profit reached RMB 3.642 billion, reflecting a year-on-year growth of 12.88%[43]. - Non-interest income increased by 46.17% year-on-year, driven by the development of intermediary business and bond trading[43]. Asset and Liability Management - As of June 30, 2022, the total assets of Dongguan Rural Commercial Bank reached RMB 628.577 billion[11]. - Total deposits amounted to RMB 445.533 billion, while the total loans reached RMB 316.883 billion[11]. - The registered capital of the bank is RMB 6.888 billion[10]. - Total assets reached RMB 628.58 billion, an increase of RMB 35.22 billion or 5.94% compared to the end of last year[29]. - Total liabilities of the group reached RMB 577.05 billion, an increase of RMB 33.67 billion or 6.20% compared to the previous year, primarily driven by growth in customer deposits[93]. - Customer deposits amounted to RMB 451.32 billion, with a year-on-year increase of RMB 31.35 billion or 7.44%, accounting for 58.21% of total deposits[96]. - The group’s total equity reached RMB 51.53 billion, an increase of RMB 1.55 billion or 3.10% from the previous year, mainly due to an increase in undistributed profits[98]. Risk Management - The bank has implemented a risk management system that integrates risk culture with business and management practices[14]. - The company has established a comprehensive risk management system to ensure sustainable business development and mitigate various risks[16]. - The group maintained a controllable overall credit risk, with the non-performing loan ratio within the management target as of June 30, 2022[142]. - The liquidity risk management strategy ensures that major liquidity risk regulatory indicators meet the standards every month during the reporting period[143]. - The bank has implemented a comprehensive compliance risk management framework to mitigate legal and regulatory risks, ensuring adherence to laws and internal policies[151]. Strategic Initiatives - The bank's strategic plan for 2021-2023 focuses on high-quality development led by party building, aiming to establish a regional modern rural commercial bank group[5]. - The bank's "1+12348" strategic plan emphasizes digitalization and group development as key drivers for growth[5]. - The bank's core strategy includes a focus on digitalization and group development to achieve comprehensive customer coverage and service[14]. - The bank aims to build a modern rural commercial bank group with a strategic layout of "1+12348," focusing on digital transformation and group operations[14]. - The company is committed to improving risk management capabilities, focusing on credit risk prevention and enhancing liquidity risk management[167]. Customer and Market Engagement - The bank focuses on serving the agricultural sector, rural areas, and small and micro enterprises, aligning with the "Three Rural" strategy[7]. - The cumulative visits to rural households reached nearly 140,000, with 330,000 households registered, covering over 90% of rural families in Dongguan[32]. - The retail financial business achieved a cumulative credit card issuance of 606,700 cards, with consumer finance and credit card asset scale reaching RMB 23.635 billion[38]. - The number of personal mobile banking users reached 3.7404 million, up 11.17% from the end of last year[41]. - Customer satisfaction reached 99% based on nearly 2.06 million customer service evaluations[175]. Corporate Governance and Compliance - The bank's management has assured the accuracy and completeness of the financial report, taking legal responsibility for its content[3]. - The bank maintained a robust internal control structure, achieving no major economic cases or criminal incidents during the reporting period[158]. - The bank's strategic objectives were generally met, with ongoing monitoring of the execution of its three-year development plan (2021-2023) to ensure alignment with internal and external environments[156]. - The company emphasizes the importance of internal audit independence and effectiveness, with the board of directors ultimately responsible for these aspects[159]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes the integration of ESG principles into its operations, aiming to support rural revitalization and promote sustainable development[168]. - The bank's ESG management framework was established to enhance the quality of ESG information disclosure and fulfill social responsibility[179]. - The total amount allocated for public welfare and charity assistance reached RMB 7.613 million by the end of June 2022[175]. Shareholder Information - As of June 30, 2022, the total number of shares outstanding is approximately 6.889 billion, with domestic shares accounting for about 5.740 billion (83.33%) and H shares approximately 1.148 billion (16.67%)[181]. - The number of domestic shareholders is 57,595, with 83 institutional shareholders holding about 1.362 billion shares (19.77%) and 57,512 individual shareholders holding approximately 4.379 billion shares (63.56%)[184]. - The top ten shareholders collectively hold 30.11% of the total shares, with the largest domestic shareholder, Guangdong Yuefeng Investment Co., Ltd., holding 4.34%[185]. - No new shares were issued during the reporting period[183].

Financial Performance - The net profit for 2021 was RMB 5.703 billion, with ROA and ROE at 1.00% and 12.87% respectively, ranking among the top in H-share mainland banks[15]. - Operating income for 2021 reached RMB 12,996,314, an increase of 7.88% compared to the previous year[41]. - Pre-tax profit for 2021 was RMB 5,989,651, reflecting an 11.50% growth year-on-year[41]. - Net profit attributable to shareholders was RMB 5,589,700, showing a 15.09% rise compared to the previous year[41]. - The total assets of the group reached RMB 593.36 billion, maintaining the leading market share in Dongguan's banking industry for 26 consecutive years[15]. - The total equity attributable to shareholders reached RMB 47,378,632 thousand, a significant increase of 31.08% year-on-year[43]. - The total number of shares increased to 6,888,545,510 after the listing on the Hong Kong Stock Exchange[26]. - The average return on equity was 12.87%, a decrease of 0.77% compared to the previous year[44]. - The net profit margin decreased to 1.90%, down from 2.10% in the previous year, representing a decline of 0.20%[44]. Strategic Initiatives - The bank's strategic plan for 2021-2023 focuses on digitalization and group development, aiming to establish a regional modern rural commercial bank group[10]. - The bank's "1+12348" strategic plan aims to enhance its core competitiveness through technology, talent, and capital drivers[10]. - The bank's "133" project is designed to support rural revitalization by promoting high-quality agriculture, livable rural areas, and farmer prosperity[10]. - The bank aims to enhance modern financial services for rural revitalization, focusing on supporting agriculture, small enterprises, and the real economy[16]. - The bank is committed to digital transformation, leveraging financial technology to improve customer service and operational efficiency[17]. - The strategy includes building a vibrant and open customer ecosystem to support local economic development and stabilize supply chains[17]. - The bank's operational strategy is driven by a dual focus on organizational collaboration and technological innovation[17]. Risk Management - The bank emphasizes risk management and compliance as part of its operational strategy[10]. - The company has established a comprehensive risk management system to ensure asset quality remains strong[35]. - The expected credit loss for customer loans and advances amounted to RMB 1.991 billion, with RMB 1.948 billion related to amortized cost loans[152]. - The group's expected credit loss for customer loans and advances amounted to RMB 1.991 billion, an increase of RMB 1.692 billion year-on-year, primarily due to the growth in the scale of customer loans and advances and increased write-off efforts[106]. - The bank's compliance risk management framework includes regular assessments and a focus on compliance culture, ensuring adherence to laws and regulations[179]. Digital Transformation - A digital transformation office was established to enhance customer-centric smart banking, employing a "small steps, quick wins" strategy[15]. - The strategic focus on digital transformation is accelerating, with a commitment to building a "smart digital bank"[35]. - The bank's digital transformation strategy aims to reshape business logic and operational models, driving the development of a smart digital bank[31]. - The company has deployed 319 smart devices across 217 business institutions as part of its cloud banking project by the end of 2021[62]. Customer Service and Engagement - The bank emphasizes the importance of customer service as a key to success and aims to provide inclusive financial services[16]. - The organization emphasizes a customer-centric approach, enhancing its service capabilities across various financial sectors[34]. - The number of personal mobile banking users reached 3.36 million by the end of 2021, an increase of 334,000 users from the beginning of the year, with monthly active users (MAU) averaging 702,000, up by 115,000 year-on-year[62]. - Online channel purchases of wealth management, funds, and insurance increased by 123.20%, 172.66%, and 130.90% respectively year-on-year[62]. Capital Management - The bank plans to enhance its capital management efficiency and maximize capital value through a comprehensive integration of capital management into its operational strategy[31]. - The capital adequacy ratio improved to 16.29%, an increase of 2.29% from the previous year[46]. - The net amount of core Tier 1 capital increased to RMB 47.689 billion, up from RMB 36.475 billion at the end of the previous year[156]. Community Engagement - The company actively participated in COVID-19 prevention efforts, forming over 1,080 volunteer teams to support local communities[15]. - A rural revitalization financial service center was established, implementing a "133" project with nearly 4,000 personnel providing services directly to communities[15]. Market Position and Recognition - The company successfully listed on the Hong Kong Stock Exchange, becoming the 13th listed rural commercial bank in the country and the first financial institution in Dongguan[15]. - Dongguan Rural Commercial Bank ranked 261st globally in the banking industry based on Tier 1 capital as of December 31, 2020, and 43rd in China's banking sector according to the 2021 China Banking Industry Top 100 list[28]. - The bank has received multiple awards, including the "Dongguan Government Quality Award" and recognition as a "Benchmark Bank" by the China Banking and Insurance Regulatory Commission[28]. Loan Portfolio and Asset Quality - The non-performing loan ratio stood at 0.84%, with a provision coverage ratio of 375.34%, indicating strong asset quality and risk mitigation capabilities[15]. - The total amount of normal loans was RMB 289.99 billion, accounting for 97.27% of total loans, an increase of RMB 35.28 billion from the previous year[136]. - The total amount of loans as of December 31, 2021, is RMB 298,114,972, with a total NPL amount of RMB 2,384,062, resulting in an overall NPL ratio of 0.84%[139]. - The company plans to strengthen the collection of non-performing loans and control the quality of new loans to ensure overall loan quality improves[134].

Financial Performance - Operating income for the six months ended June 30, 2021, was RMB 6,487,923 thousand, representing a 5.11% increase compared to RMB 6,172,778 thousand in the same period of 2020[26]. - Profit before tax increased to RMB 3,470,478 thousand, up 6.55% from RMB 3,257,006 thousand year-on-year[26]. - Net profit for the period reached RMB 3,226,495 thousand, reflecting a 12.58% growth compared to RMB 2,865,997 thousand in the previous year[26]. - The net profit attributable to shareholders was RMB 3,142,240 thousand, an increase of 11.42% from RMB 2,820,264 thousand in the same period last year[26]. - The net cash flow from operating activities was RMB 10,077,499 thousand, a significant increase of 353.50% compared to RMB 2,222,152 thousand[26]. - Basic earnings per share rose to RMB 0.55, marking a 12.24% increase from RMB 0.49 in the same period of 2020[27]. - The average return on total assets (annualized) was 1.14%, down from 1.21% at the end of the previous year[28]. - The average return on equity (annualized) improved to 15.70%, up from 15.27% year-on-year[28]. - The net interest margin (annualized) decreased to 1.92%, down from 2.24% in the previous year[28]. - The cost-to-income ratio was 31.99%, slightly improved from 32.54% at the end of the previous year[28]. Risk Management - The bank's management confirmed that there are no significant risks affecting its future development strategy and operational goals[10]. - The report includes a detailed description of the main risks faced by the bank and the measures taken to manage these risks[10]. - The coverage ratio for loan loss provisions was 384.42%, indicating a strong risk mitigation capability[32]. - The bank has established a comprehensive risk management department independent of business units to enhance credit risk management[133]. - The bank's credit risk management system includes a credit risk early warning system that operates effectively throughout the lending process[133]. - The bank's market risk management employs various methods including gap analysis and stress testing to monitor and manage interest rate and exchange rate risks[138]. Asset and Liability Management - As of June 30, 2021, the total assets of the group reached RMB 583.36 billion, an increase of RMB 34.96 billion or 6.37% compared to the beginning of the period[30]. - The total liabilities reached RMB 543.02 billion, an increase of RMB 33.26 billion or 6.52% compared to the beginning of the year, primarily due to an increase in customer deposits and issued debt securities[96]. - Customer deposits amounted to RMB 407.77 billion, representing 75.09% of total liabilities, with a year-on-year increase of RMB 30.22 billion or 8.00%[97]. - The total amount of financial assets was RMB 234.72 billion, with net financial assets amounting to RMB 237.85 billion after accounting for accrued interest and impairment provisions[94]. - The total amount of off-balance sheet commitments was RMB 14,210,308 thousand, an increase of 11.86% from RMB 12,704,002 thousand at the end of 2020[105]. Loan Portfolio - Customer loans and advances (excluding accrued interest) totaled RMB 280.39 billion, up RMB 18.94 billion or 7.25% from the beginning of the period[30]. - The non-performing loan ratio stood at 0.83%, remaining stable compared to the beginning of the period[32]. - The total amount of loans is RMB 280,393,049 thousand, with a total NPL amount of RMB 2,192,903 thousand, resulting in an overall NPL ratio of 0.83%[112]. - The total amount of corporate loans is RMB 148,112,685 thousand, with an NPL amount of RMB 1,262,221 thousand, resulting in a corporate loan NPL ratio of 0.93%[112]. - The total amount of personal loans is RMB 107,130,167 thousand, with an NPL amount of RMB 930,682 thousand, resulting in a personal loan NPL ratio of 0.90%[112]. Shareholder Information - The bank's total issued ordinary shares amount to 5,740,454,510 shares, with a total capital of RMB 5,740,454,510 as of the reporting period end[155]. - The bank's total number of shareholders is 57,595, with 83 institutional shareholders and 57,512 individual shareholders, remaining stable compared to the previous year[158]. - The top 10 domestic shareholders hold a total of 961,323,233 shares, representing 16.75% of the total shareholding[159]. - There are no significant changes in the shareholding structure of the bank during the reporting period[172]. Governance and Compliance - The bank held 1 shareholders' meeting and 10 board meetings during the reporting period, discussing 118 proposals and ensuring compliance with legal regulations[192][194]. - The governance structure includes six specialized committees under the board, which convened 25 times to review 147 proposals, enhancing risk management and operational oversight[194]. - The bank's governance practices are aligned with regulatory requirements, ensuring transparency and accountability in its operations[192]. - The company implemented a "compliance creates value" culture, ensuring no major economic incidents or serious violations occurred during the reporting period[197]. Employee Information - The group has a total of 7,995 employees, with the largest functional category being personal banking, accounting for 38.86% (3,107 employees) of the workforce[182]. - The total employee compensation cost for the group during the reporting period was RMB 1.488 billion[185]. - A total of 134 training sessions were conducted in the first half of 2021, focusing on retail banking and marketing skills[186]. - The average online learning hours completed by employees in the first half of 2021 was approximately 31.32 hours[186]. Strategic Initiatives - The bank aims to enhance core customer management capabilities by focusing on the national strategy of rural revitalization and implementing a financial service project called "133" to improve agricultural quality and rural living standards[153]. - The bank is committed to accelerating digital transformation and enhancing financial technology to support business development and create a "smart digital bank"[153]. - The bank's focus on expanding its market presence includes promoting digital economy, green finance, and smart manufacturing, which are expected to provide significant growth opportunities[153].