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].