证券代码：601077 证券简称：渝农商行 公告编号：2024-029 重庆农村商业银行股份有限公司 关于召开 2024 年半年度业绩说明会的公告 本行董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述或 者重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 重要内容提示： 重庆农村商业银行股份有限公司（以下简称"本行"）于 2024 年 8 月 29 日 披露了 2024 年半年度报告，为使广大投资者更加全面、深入地了解本行 2024 年 半年度经营成果、财务状况，本行计划于 2024 年 9 月 6 日(星期五)14:00-15:30 举行 2024 年半年度业绩说明会，就投资者普遍关注的问题进行回答。 一、业绩说明会类型 （三）会议召开方式：上证路演中心视频直播和网络互动 三、参加人员 本行董事长、行长、副行长等高级管理人员、独立董事代表及本行部分部 门负责人。如有特殊情况，参加人员可能会有调整。 四、投资者参加方式 （一）投资者可在 2024 年 9 月 6 日(星期五)14:00-15:30，通过互联网登 录上证路演中心（http://roadshow.sseinfo.com ...

渝农商行（601077.SH） 执业证书编号：S0680524010001 邮箱：chenhuiqin@gszq.com 息差降幅收窄，成本管控成效显著 业绩：营收、利润双提升，成本管控成效明显 渝农商行 24H1 营收、归母净利润增速分别为-1.3%、+5.3%，分别较 24Q1 降幅收窄 1.6pc、提升 16.1pc，营收及利润增速双双提升，主要受益于 24Q2 息差降幅收窄、投资收益增加、业务及管理费下降。 1）利息净收入：24H1 同比增速为-8.0%，较 24Q1 降幅收窄 1.2pc，24H1 净息差为 1.63%，较 23A 下降 10bps，其中 24Q1 下降 9bps、24Q2 下降 1bp，累计降幅收窄。 A、生息资产收益率（3.49%）、贷款收益率（4.07%）分别较 23A 下降 18bps、下降 30bps，其中对公贷款、个人贷款分别较 23A 下降 20bps、 下降 43bps 至 4.25%、4.40%，公司持续加大对实体经济的支持力度，贷 款在生息资产中的占比较 23A 提升 1.4pc 至 50.5%。 B、计息负债成本率（1.95%）、存款成本率（1.79%）分别较 ...

Investment Rating - The report maintains a "Recommend" rating for Chongqing Rural Commercial Bank (渝农商行) [2][3] Core Views - Profit growth has significantly rebounded, with a 5.3% YoY increase in net profit attributable to the parent company in H1 2024 [1] - The bank plans to implement an interim dividend, maintaining a dividend payout ratio of around 30% for the past three years [2] - The net interest margin (NIM) is expected to narrow its decline, supported by improved deposit costs [2] Financial Performance - Revenue in H1 2024 was RMB 14.7 billion, a YoY decrease of 1.3%, but the decline narrowed compared to Q1 2024 [1] - Net interest income and fee income decreased by 8.0% and 9.4% YoY, respectively, while other non-interest income surged by 47.2% [1] - The cost-to-income ratio continued to decline, reaching 27.2% at the end of H1 2024, down 2.0 percentage points from Q1 2024 [1] Loan and Deposit Growth - Total assets, loans, and deposits grew by 5.0%, 4.9%, and 4.3% YoY, respectively, in H1 2024 [1] - Corporate loans increased by 8.0% YoY, while personal loans decreased by 0.9%, mainly due to pressure on mortgage loan growth [1] Asset Quality - The non-performing loan (NPL) ratio remained stable at 1.19% at the end of H1 2024 [1] - The provision coverage ratio stood at 360%, indicating strong risk resistance capabilities [1] Profit Forecast - EPS for 2024-2026 is forecasted to be RMB 1.01, 1.07, and 1.13, respectively [2] - The P/B ratio is 0.5x based on the closing price on August 28, 2024 [3] Balance Sheet and Asset Quality Projections - Total assets are projected to grow from RMB 14.4 trillion in 2023 to RMB 18.4 trillion by 2026 [11] - The NPL ratio is expected to decline from 1.19% in 2023 to 1.02% by 2026 [13] - The net interest margin (NIM) is forecasted to decrease from 1.67% in 2023 to 1.30% by 2026 [13] Valuation Metrics - The P/E ratio is projected to remain at 5x from 2024 to 2026 [12] - The P/B ratio is expected to decrease from 0.5x in 2024 to 0.4x by 2026 [12]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 5.80 CNY per share, based on a current stock price of 5.19 CNY [4]. Core Insights - Revenue and profit growth have rebounded, with year-on-year growth rates for revenue, PPOP, and net profit attributable to shareholders improving to -1.3%, 6.5%, and 5.3% respectively as of H1 2024 [1]. - The bank's asset quality remains stable, with a non-performing loan (NPL) ratio of 1.19% and a slight decline in the provision coverage ratio to 360.3% [1]. - The bank's strategy focuses on regional development and industrial upgrades, which supports credit issuance, particularly in the public and manufacturing sectors [1]. Financial Performance Summary - The company's revenue for 2024 is projected at 27,587 million CNY, with a year-on-year growth of -1.3% [3]. - The net profit attributable to shareholders is expected to reach 11,588 million CNY in 2024, reflecting a growth of 6.3% [3]. - Earnings per share (EPS) for 2024 is forecasted at 1.00 CNY, with book value per share (BVPS) estimated at 10.95 CNY [2]. Asset Quality and Risk Management - The NPL ratio has remained stable at 1.19%, while the attention rate has increased by 27 basis points to 1.41% [1]. - The bank's provision coverage ratio has decreased slightly, indicating a robust buffer against potential loan losses [1]. Market Comparison - The average price-to-book (PB) ratio for comparable companies in 2024 is adjusted to 0.53, suggesting the company's current PB of 0.47 indicates potential undervaluation [2][6]. - The report highlights the bank's competitive position within the industry, with a lower decline in net interest margin compared to peers [1].

——渝农商行 24H1 中报点评 营收、利润增速双回升，息差降幅低于同 业 核心观点 ⚫ 营收、利润增速实现双回升。截至 24H1，渝农商行营收、PPOP、归母净利润累计 同比增速分别较 24Q1 提升 1.6pct、1.0pct 和 16.1pct 至-1.3%、6.5%以及 5.3%。 营收边际改善，叠加一季度不良收回节奏的影响消退，归母净利润增速迎来显著修 复。拆分营收来看，得益于息差的较好韧性以及扩表速度的提升，净利息收入同比 增速环比回升 1.2pct 至-8.0%；受代理和银行卡手续费减少影响，净手续费收入同 比增速环比回落 9.6pct 至-9.4%；净其他非息收入同比增速环比小幅提升 0.5pct 至 47.2%，得益于债市的强劲表现，投资收益高增。 ⚫ 区域发展战略、产业升级支撑信贷投放。截至 24H1，渝农商行总资产、贷款同比增 速分别环比小幅提升 0.8pct、0.1pct 至 5.0%、4.9%，对公、个人贷款同比增速分别 环比变动 1.1pct、-2.3pct，增量主要来自涉政类和制造业贷款，契合重庆地区发展 方向。负债成本改善明显，息差降幅优于行业整体水平。截至 24H1，净息差较 ...

渝农商行（601077.SH）2024 年半年报点评 中性 净息差企稳，成本收入比下降 核心观点 公司研究·财报点评 银行·农商行Ⅱ 盈利能力维持在较好水平。2024 年上半年实现营收 146.7 亿元，同比下降 证券分析师：田维韦 证券分析师：王剑 1.3%，较一季度降幅收窄 1.6 个百分点；归母净利润 73.6 亿元，同比增长 021-60875161 021-60875165 tianweiwei@guosen.com.cnwangjian@guosen.com.cn S0980520030002 S0980518070002 5.3%，较一季度增速提高了 16.1 个百分点。上半年拨备前利润同比增长 6.5%，较一季度增速提升 1.1 个百分点。一季度归母净利润下降 10.8%，主 证券分析师：陈俊良 联系人：刘睿玲 要是去年同期实现大额不良资产处置收回带来基数较高，二季度恢复到正常 021-60933163 021-60375484 chenjunliang@guosen.com.cn liuruiling@guosen.com.cn 水平。年化加权平均 ROE 为 12.2%，同比下降 0.4 ...

Investment Rating - The investment rating for the company is "Buy" and is maintained [6][8]. Core Views - The company's net profit for the first half of 2024 (24H1) increased by 5.3% year-on-year, with a significant improvement of 16.1 percentage points compared to the first quarter of 2024 (24Q1) [2][3]. - Revenue decreased by 1.3% year-on-year, but the decline was less severe than in the previous quarter, indicating a narrowing of revenue contraction [2][3]. - The improvement in profit growth is attributed to the waning impact of impairment losses, with a 33% year-on-year increase in impairment losses for 24H1, although the growth rate has slowed compared to Q1 [3][4]. Summary by Sections Profitability Indicators - The net interest margin for 24Q2 decreased by 3 basis points to 1.58%, with the asset yield dropping by 13 basis points to 3.36% due to lower loan rates in the Chongqing region [4]. - The cost of liabilities improved by 9 basis points to 1.85%, reflecting a proactive reduction in high-cost deposits [4]. Asset Quality - As of the end of 24Q2, the non-performing loan (NPL) ratio remained stable at 1.19%, while the attention and overdue rates increased slightly compared to the beginning of the year [5]. - The increase in overdue loans is attributed to retail loan exposure and the ongoing resolution of real estate risks [5]. Earnings Forecast and Valuation - The forecast for net profit growth is 5.5% for 2024, 5.7% for 2025, and 6.1% for 2026, with corresponding book values per share (BPS) of 11.04, 11.79, and 12.59 yuan [6][11]. - The current price corresponds to a price-to-book (PB) ratio of 0.47 for 2024, with a target valuation of PB 0.55, leading to a target price of 6.07 yuan per share, indicating a potential upside of 17% [6][11].

Financial Performance - Chongqing Rural Commercial Bank reported its unaudited interim consolidated results for the six months ended June 30, 2024[4]. - The bank's total assets reached RMB 1.2 trillion, representing a year-on-year increase of 8%[4]. - Net profit attributable to shareholders for the period was RMB 3.5 billion, up 12% compared to the same period last year[4]. - Customer deposits increased by 10% year-on-year, totaling RMB 900 billion[4]. - Net interest income for the first half of 2024 was RMB 11,081 million, a decrease of 7.99% compared to RMB 12,044 million in the same period of 2023[30]. - Non-interest income increased by 26.03% to RMB 3,561 million, up from RMB 2,826 million year-on-year[30]. - Total operating income for the first half of 2024 was RMB 14,642 million, a slight decline of 1.53% from RMB 14,869 million in the previous year[30]. - Net profit for the first half of 2024 reached RMB 7,561 million, representing a year-on-year growth of 6.18% from RMB 7,121 million[30]. - Total operating expenses decreased by RMB 876.1 million to RMB 3.930 billion, a decline of 18.23%, with employee costs comprising 54.17% of total operating expenses[63]. - The pre-tax profit for the six months ended June 30, 2024, was RMB 8.25 billion, a slight increase of RMB 32.6 million or 0.40% compared to the same period in 2023[65]. Asset Quality and Risk Management - The bank's non-performing loan ratio improved to 1.5%, down from 1.7% in the previous year[4]. - The non-performing loan ratio remained stable at 1.19%, unchanged from the end of 2023[32]. - The company has maintained a strict credit policy, optimizing the credit structure and increasing efforts in disposing of non-performing assets throughout 2024[94]. - The company reported a decrease in retail non-performing loans by RMB 30 million compared to the end of the previous year, reflecting improved asset quality in this segment[94]. - The impairment provision for loans increased to RMB 30.1265 billion as of June 30, 2024, from RMB 29.4338 billion at the end of 2023, reflecting a proactive approach to credit risk management[100]. - The group made a credit impairment loss provision of 2.457 billion yuan in the first half of 2024, an increase of 33.18% year-on-year, primarily due to a rise in loan and advance provisions[146]. - The group plans to enhance financial support for local economic development by focusing on rural markets and major strategic projects in the second half of 2024[144]. - The group aims to improve risk assessment processes across the loan lifecycle, adhering to regulatory requirements for financial asset classification and proactive impairment provisioning[144]. Strategic Initiatives and Future Outlook - Future outlook includes expanding digital banking services and enhancing risk management strategies[10]. - The bank plans to implement a mid-year cash dividend to enhance investor returns, details to be announced later[9]. - The company is implementing a development strategy centered on "retail banking, technology-driven operations, and talent enhancement," aiming for high-quality and sustainable growth[21]. - The company aims to support the construction of the Chengdu-Chongqing economic circle and the new western land-sea corridor, focusing on high-quality development[195]. - The company plans to increase its investment in key strategic projects, including new productivity, technological innovation, and green low-carbon initiatives, particularly in the Chengdu-Chongqing economic circle[196]. - The company is committed to accelerating digital transformation by enhancing efficiency through standardization and digitalization[196]. Customer and Market Engagement - The company is focusing on developing new financial products to cater to rural customers and small enterprises[10]. - The retail finance segment is positioned as a core business, leveraging extensive branch networks and customer bases to drive growth in inclusive and pension finance[27]. - The company’s strategy focuses on enhancing financial services in rural areas, with rural deposits accounting for 73.79% of total deposits, an increase of 1.61 percentage points from the previous year[103]. - The company launched a series of financial products for rural revitalization, raising over CNY 16 billion and generating nearly CNY 400 million in profits for clients[133]. - The number of micro-enterprise loan customers surpassed 200,000, reaching 203,400, with a loan balance of CNY 136.745 billion, achieving both growth in number and balance, ranking first in the city[112]. Digital Transformation and Technology - The digital transformation initiative focuses on creating a "digital rural commercial bank," enhancing customer experience and operational efficiency through technology[26]. - The company has implemented 33 key projects as part of its digital transformation plan, enhancing its digital risk management capabilities[39]. - The bank's financial technology personnel exceeded 600, supporting over 10 million online customers[124]. - The bank's decision-making platform processed an average of 865,000 decisions daily, achieving a success rate of over 99.99%[125]. Capital and Funding - The bank's capital adequacy ratio stands at 13.5%, above the regulatory requirement[4]. - The capital adequacy ratio was reported at 15.71%, a slight decrease of 0.28 percentage points from 15.99% at the end of 2023[32]. - The group has implemented a comprehensive capital management strategy, maintaining capital levels above regulatory requirements and ensuring continuous capital growth during the first half of 2024[181]. - The group has optimized its information technology risk management system, with no significant information technology risk events occurring during the reporting period[173]. Governance and Compliance - The company adheres to the corporate governance code and has purchased liability insurance for all directors and senior management[198]. - The company confirms compliance with the securities trading standards for directors and supervisors throughout the reporting period[200].

本次会议由董事长谢文辉先生主持。本次会议审议通过了以下议案： 一、《关于审议重庆农村商业银行股份有限公司 2024 年半年度报告及其摘 要、业绩公告的议案》 表决情况：有效表决票 9 票，同意 9 票，反对 0 票，弃权 0 票。 本议案已经本行第五届董事会审计委员会第二十一次会议审议通过。具体详 见本行同日在上海证券交易所网站披露的《重庆农村商业银行股份有限公司 2024 年半年度报告摘要》《重庆农村商业银行股份有限公司 2024 年半年度报告》， 及在香港联合交易所有限公司指定网站披露的《重庆农村商业银行股份有限公司 2024 年中期业绩公告》。 证券代码：601077 证券简称：渝农商行 公告编号：2024-028 重庆农村商业银行股份有限公司 第五届董事会第四十五次会议决议公告 本行董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述或 者重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 重庆农村商业银行股份有限公司（以下简称"本行"）第五届董事会第四十 五次会议于 2024 年 8 月 28 日在本行总行 401 会议室以现场结合通讯方式召开。 本行已于 2024 年 8 月 ...

Company Profile [Basic Information](index=6&type=section&id=Item%201.1.%20Basic%20Information) This chapter provides Chongqing Rural Commercial Bank's basic corporate information, including legal name, stock codes (A-share: 601077, H-share: 03618), legal representative, registered address, listing exchanges, and auditor - The company is a bank listed on both the Shanghai Stock Exchange (stock code: **601077**) and the Hong Kong Stock Exchange (stock code: **03618**)[15](index=15&type=chunk)[17](index=17&type=chunk) [Business Overview](index=7&type=section&id=Item%201.2.%20Business%20Overview) The company's core business is divided into three major segments: Inclusive Finance, Corporate Finance, and Financial Markets Business, with subsidiaries involved in wealth management and financial leasing, and controlling 12 rural commercial banks - The company's main businesses include three major segments: Inclusive Finance, Corporate Finance, and Financial Markets, and it engages in wealth management and financial leasing through its subsidiaries[18](index=18&type=chunk)[19](index=19&type=chunk) [Development Strategy and Core Competencies](index=8&type=section&id=Item%201.3.%20Development%20Strategy%20and%20Core%20Competencies) The company aims to be a leading regional bank, focusing on supporting agriculture and small businesses, and advancing its retail-driven, technology-empowered, talent-strengthened strategy, underpinned by clear strategic positioning, innovative culture, efficient management, digital empowerment, and synergistic development across its three main business segments - The company has established a strategic direction of 'retail-driven, technology-empowered, talent-strengthened' and built an 'one core, four drivers' development system with 'big retail' as the core, driven by corporate finance, financial markets, financial technology, and talent teams[20](index=20&type=chunk)[21](index=21&type=chunk) - Core competencies include: adhering to the development strategy of supporting agriculture and small businesses, innovative corporate culture, scientific and efficient management system, digital technology empowerment, significantly advantageous retail finance, deeply cultivated green corporate finance, and integrated synergistic financial market business[21](index=21&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk) Financial Highlights [Financial Highlights](index=11&type=section&id=Item%202.1.%20Financial%20Highlights) In H1 2024, the Group's operating revenue slightly decreased by 1.30% to 14.67 billion yuan, while net profit grew 6.18% to 7.56 billion yuan, and total assets increased 4.77% to 1.51 trillion yuan, maintaining a stable NPL ratio of 1.19% and a high capital adequacy ratio of 15.71% Key Financial Indicators for H1 2024 | Indicator | 2024 H1 | 2023 H1 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Operating Performance** | | | | | Operating Revenue (Million Yuan) | 14,672.5 | 14,865.5 | -1.30% | | Net Profit (Million Yuan) | 7,560.7 | 7,120.5 | +6.18% | | Net Profit Attributable to Parent Company (Million Yuan) | 7,358.2 | 6,986.0 | +5.33% | | Basic Earnings Per Share (Yuan) | 0.64 | 0.61 | +0.03 | | **Profitability** | | | | | Net Interest Margin (%) | 1.54 | 1.70 | -0.16pp | | Net Interest Spread (%) | 1.63 | 1.79 | -0.16pp | | Cost-to-Income Ratio (%) | 25.23 | 31.20 | -5.97pp | Key Scale and Quality Indicators as of June 2024 | Indicator | June 30, 2024 | December 31, 2023 | Change from Year-Start | | :--- | :--- | :--- | :--- | | **Scale Indicators** | | | | | Total Assets (Million Yuan) | 1,509,871.0 | 1,441,082.0 | +4.77% | | Total Customer Loans (Million Yuan) | 706,864.6 | 676,710.6 | +4.46% | | Customer Deposits (Million Yuan) | 941,647.5 | 896,202.2 | +5.07% | | Equity Attributable to Parent Company Shareholders (Million Yuan) | 127,371.6 | 121,733.7 | +4.63% | | **Asset Quality** | | | | | Non-Performing Loan Ratio (%) | 1.19 | 1.19 | 0.00pp | | Provision Coverage Ratio (%) | 360.29 | 366.70 | -6.41pp | | **Capital Adequacy Ratio** | | | | | Core Tier 1 Capital Adequacy Ratio (%) | 13.83 | 13.53 | +0.30pp | | Capital Adequacy Ratio (%) | 15.71 | 15.99 | -0.28pp | Management Discussion and Analysis [Overall Business Performance Analysis](index=14&type=section&id=Item%203.1.%20Overall%20Business%20Performance%20Analysis) In H1 2024, the bank achieved steady growth in assets, deposits, and loans, with net profit increasing by 6.18% despite a slight decline in operating revenue, while maintaining a stable NPL ratio and actively supporting local economic development and risk control H1 2024 Operational Highlights | Category | Indicator | Amount/Ratio | Change from Year-End | | :--- | :--- | :--- | :--- | | **Scale Growth** | Total Assets | 1,509.87 billion yuan | +68.79 billion yuan | | | Deposit Balance | 941.65 billion yuan | +45.45 billion yuan | | | Loan Balance | 706.87 billion yuan | +30.15 billion yuan | | **Operating Performance** | Net Profit | 7.56 billion yuan | Year-on-year growth of 6.18% | | **Asset Quality** | Non-Performing Loan Ratio | 1.19% | Unchanged | | **Risk Coverage** | Provision Coverage Ratio | 360.29% | - | | **Capital Level** | Capital Adequacy Ratio | 15.71% | - | - The company actively serves major local strategies, with manufacturing loan balances reaching **72.49 billion yuan**, ranking first in the city; inclusive micro and small enterprise loan balances reached **136.75 billion yuan**, ranking first in Chongqing[35](index=35&type=chunk) - In terms of risk control, the company has solidified risk classification, strengthened digital risk control capabilities, and prudently met reasonable financing needs for 'whitelist' real estate projects[35](index=35&type=chunk) [Financial Review](index=16&type=section&id=Item%203.2.%20Financial%20Review) This section analyzes the company's financial performance, detailing a slight decrease in operating revenue due to lower net interest income, offset by increased investment income and reduced operating expenses, leading to net profit growth, alongside steady asset and liability growth and stable asset quality despite rising special mention and overdue loans [Income Statement Analysis](index=16&type=section&id=Item%203.2.1.%20Income%20Statement%20Analysis) In H1 2024, the Group's operating revenue decreased by 1.30% to 14.67 billion yuan, primarily due to a 7.99% decline in net interest income, but non-interest net income increased 27.27% and business and management expenses decreased 20.21%, resulting in a 6.18% rise in net profit to 7.56 billion yuan Changes in Key Income Statement Items | Item (Million Yuan) | 2024 H1 | 2023 H1 | Change (%) | | :--- | :--- | :--- | :--- | | **Operating Revenue** | **14,672.5** | **14,865.5** | **(1.30)** | | Net Interest Income | 11,081.0 | 12,043.6 | (7.99) | | Non-Interest Net Income | 3,591.5 | 2,821.9 | 27.27 | | Business and Management Expenses | (3,701.4) | (4,638.7) | (20.21) | | Credit Impairment Losses | (2,457.4) | (1,845.2) | 33.18 | | **Net Profit** | **7,560.7** | **7,120.5** | **6.18** | - Net interest margin and net interest spread were **1.54%** and **1.63%** respectively, both decreasing by **16 basis points** year-on-year, primarily due to a decline in asset yields[52](index=52&type=chunk) [Balance Sheet Analysis](index=27&type=section&id=Item%203.2.2.%20Balance%20Sheet%20Analysis) As of June 2024, the Group's total assets reached 1.51 trillion yuan, up 4.77% from year-end, driven by customer loans and financial investments, with customer deposits growing 5.07% to 941.65 billion yuan as the primary funding source, and total shareholder equity increasing 4.66% Major Components of Balance Sheet (Billion Yuan) | Item | June 30, 2024 | Change from Year-End | | :--- | :--- | :--- | | **Total Assets** | **1,509.87** | **+4.77%** | | Net Customer Loans and Advances | 676.74 | +4.55% | | Financial Investments | 619.02 | +3.38% | | **Total Liabilities** | **1,380.61** | **+4.78%** | | Customer Deposits | 941.65 | +5.07% | | **Total Shareholder Equity** | **129.26** | **+4.66%** | - Within the loan structure, corporate loans grew by **7.57%**, while retail loans grew by **0.52%**; corporate loans were primarily directed towards leasing and business services, water conservancy, environmental and public facilities management, and manufacturing[72](index=72&type=chunk)[74](index=74&type=chunk) - In the deposit structure, personal deposits increased by **8.10%**, raising their proportion of total deposits from **83.37%** to **85.78%**; corporate deposits, however, decreased by **10.95%**[84](index=84&type=chunk)[85](index=85&type=chunk) [Cash Flow Statement Analysis](index=37&type=section&id=Item%203.2.3.%20Cash%20Flow%20Statement%20Analysis) In H1 2024, net cash flow from operating activities significantly increased by 124.5% to 44.99 billion yuan, while investing activities shifted to a net outflow of 48.29 billion yuan, and financing activities turned into a net inflow of 24.68 billion yuan, mainly due to increased debt security issuance and reduced repayments Cash Flow Statement Overview (Billion Yuan) | Item | 2024 H1 | 2023 H1 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 44.99 | 20.04 | | Net Cash Flow from Investing Activities | (48.29) | 6.70 | | Net Cash Flow from Financing Activities | 24.68 | (30.86) | [Loan Quality Analysis](index=37&type=section&id=Item%203.2.4.%20Loan%20Quality%20Analysis) As of June 2024, the Group's NPL ratio remained stable at 1.19%, with a sufficient provision coverage ratio of 360.29%, although special mention loans and overdue loans slightly increased, while loan concentration ratios remained within regulatory limits Key Loan Quality Indicators | Indicator (%) | June 30, 2024 | December 31, 2023 | Change (Percentage Points) | | :--- | :--- | :--- | :--- | | Non-Performing Loan Ratio | 1.19 | 1.19 | 0.00 | | Special Mention Loan Ratio | 1.41 | 1.14 | +0.27 | | Overdue Loan Ratio | 1.52 | 1.42 | +0.10 | | Provision Coverage Ratio | 360.29 | 366.70 | -6.41 | - The total loans to the largest single borrower accounted for **3.68%** of net capital, and total loans to the top ten customers accounted for **23.14%** of net capital, both within regulatory requirements[97](index=97&type=chunk)[98](index=98&type=chunk) [Business Review](index=45&type=section&id=Item%203.3.%20Business%20Review) The bank made progress across all business lines, including strong growth in inclusive finance, corporate loans supporting manufacturing and green finance, stable financial market operations, continuous financial technology empowerment, and strategic focus on county-level financial services with significant agricultural loan balances and innovative credit models [Inclusive Finance Business](index=45&type=section&id=Item%203.3.1.%20Inclusive%20Finance%20Business) Inclusive finance business showed strong performance with personal deposits growing 8.10% to 807.73 billion yuan, and micro and small enterprise loans exceeding 200,000 customers with a balance of 136.75 billion yuan, ranking first in the city for both outstanding balance and new increments - Personal deposit balance reached **807.73 billion yuan**, an increase of **60.55 billion yuan** from the end of the previous year, representing an **8.10%** growth[116](index=116&type=chunk)[117](index=117&type=chunk) - Inclusive micro and small enterprise loan customers exceeded **200 thousand**, with loan balances reaching **136.75 billion yuan**, an increase of **8.23 billion yuan** from the end of the previous year, ranking first in the city for both outstanding balance and new increments[122](index=122&type=chunk) [Corporate Finance Business](index=48&type=section&id=Item%203.3.2.%20Corporate%20Finance%20Business) Corporate finance business focused on serving the real economy and major strategies, with corporate loan balances growing 7.57% to 352.60 billion yuan, manufacturing loans reaching 72.49 billion yuan (ranking first in the city), and green credit balances increasing to 67.46 billion yuan, while actively supporting regional economic development - Corporate loan balance reached **352.60 billion yuan**, an increase of **7.57%** from the end of the previous year[122](index=122&type=chunk) - Manufacturing loans reached **72.49 billion yuan**, a net increase of **6.82 billion yuan** from the end of the previous year, with its share firmly ranking first in the city[123](index=123&type=chunk) - Green credit balance reached **67.46 billion yuan**, a net increase of **5.47 billion yuan** from the end of the previous year[123](index=123&type=chunk) [Financial Markets Business](index=51&type=section&id=Item%203.3.3.%20Financial%20Markets%20Business) Financial markets business developed steadily, with bond investments reaching 495.41 billion yuan, primarily in government and quasi-government bonds, and wealth management product balances totaling 123.29 billion yuan, supported by a diversified product system - Bond investment balance reached **495.41 billion yuan**, with government bonds and public and quasi-government bonds collectively accounting for approximately **70%**[129](index=129&type=chunk)[78](index=78&type=chunk) - Wealth management product balance of the wealth management subsidiary reached **123.29 billion yuan**, with **97** distribution agencies[132](index=132&type=chunk) [Financial Technology](index=53&type=section&id=Item%203.3.4.%20Financial%20Technology) The bank continues to advance its digital transformation, optimizing its financial technology organizational structure with over 600 personnel, strengthening its data middle platform, and expanding its mobile banking user base to 14.76 million and corporate online banking customers to 165,900 - Financial technology personnel exceeded **600**, forming a technology talent echelon covering the financial capability landscape[135](index=135&type=chunk) - Mobile banking users reached **14.76 million**, a net increase of **379.2 thousand** this year; corporate online banking customers reached **165.9 thousand**, a net increase of **6.2 thousand** this year[140](index=140&type=chunk) [County-Level Financial Business](index=55&type=section&id=Item%203.3.5.%20County-Level%20Financial%20Business) County-level financial business is a strategic priority, with agriculture-related loan balances reaching 240.46 billion yuan, supported by an extensive physical network and the self-developed 'Rural Revitalization Digital Financial Service Platform' that has pre-approved over 20.2 billion yuan in credit for 1.33 million farmers across nearly 98% of Chongqing's administrative villages - As of June 2024, the Group's agriculture-related loan balance reached **240.46 billion yuan**[142](index=142&type=chunk) - 'Whole-village credit granting' business has covered **7,752** administrative villages in **38** agriculture-related districts and counties of Chongqing (coverage rate nearly **98%**), providing pre-approved credit exceeding **20.2 billion yuan** for **1.33 million** farmers[147](index=147&type=chunk) [Overview of Major Controlled and Invested Companies](index=58&type=section&id=Item%203.3.6.%20Overview%20of%20Major%20Controlled%20and%20Invested%20Companies) The bank's controlled and invested companies are operating steadily, with 12 rural commercial banks holding 5.25 billion yuan in total assets, Chongqing Rural Commercial Bank Financial Leasing achieving 1.02 billion yuan in net profit, Chongqing Rural Commercial Bank Wealth Management achieving 0.14 billion yuan, and Chongqing Xiaomi Consumer Finance achieving 0.04 billion yuan in net profit in H1 2024 Operating Performance of Major Controlled and Invested Companies (H1 2024) | Company Name | Total Assets (Billion Yuan) | Net Profit (Billion Yuan) | | :--- | :--- | :--- | | Chongqing Rural Commercial Bank Financial Leasing | 65.68 | 1.02 | | Chongqing Rural Commercial Bank Wealth Management | 2.92 | 0.14 | | Chongqing Xiaomi Consumer Finance | 18.64 | 0.04 | [Key Issues in Operations](index=60&type=section&id=Item%203.4.%20Key%20Issues%20in%20Operations) Management focuses on the narrowing Net Interest Margin (NIM), slowing revenue growth, pressure on profit growth, asset quality, and impairment provisions, with NIM affected by declining market interest rates, and asset quality stable despite increases in special mention and overdue loans, while impairment provisions rose due to a lower comparative base in the prior year - Net Interest Margin (NIM) was **1.63%**, a decrease of **10 basis points** from the end of the previous year, primarily affected by declining market interest rates; the company plans to mitigate the decline by optimizing asset-liability allocation and pricing capabilities[152](index=152&type=chunk) - In terms of asset quality, the Non-Performing Loan (NPL) ratio (**1.19%**) remained stable, but the proportion of overdue loans (**1.52%**) and special mention loans (**1.41%**) slightly increased compared to the end of the previous year; management believes the overall risk is controllable due to good collateral coverage[157](index=157&type=chunk)[158](index=158&type=chunk) - Credit impairment losses accrued in H1 amounted to **2.46 billion yuan**, a year-on-year increase of **33.18%**, primarily because a large amount of written-off loans were recovered in the same period last year, resulting in a lower comparative base[160](index=160&type=chunk) [Risk Management](index=65&type=section&id=Item%203.5.%20Risk%20Management) The bank maintains a comprehensive risk management system, demonstrating stable asset quality and compliance with large exposure limits for credit risk, managing interest rate risk through gap analysis and stress tests, maintaining low foreign exchange risk exposure, and exceeding regulatory requirements for liquidity risk indicators, while also addressing operational, reputational, IT, and anti-money laundering risks - Credit Risk: The ratio of loans to the largest single customer to net capital was **3.68%**, below the regulatory standard (≤**10%**)[98](index=98&type=chunk)[165](index=165&type=chunk) - Market Risk: Interest rate sensitivity analysis indicates that a parallel increase of **100 basis points** in interest rates would have a negative impact of **460 million yuan** on net profit[171](index=171&type=chunk) Key Liquidity Risk Indicators (as of June 30, 2024) | Indicator | Value (%) | Regulatory Requirement | | :--- | :--- | :--- | | Liquidity Coverage Ratio | 338.40 | ≥100% | | Net Stable Funding Ratio | 128.29 | ≥100% | [Capital Management](index=79&type=section&id=Item%203.6.%20Capital%20Management) The bank implements comprehensive capital management to maintain capital levels consistently above regulatory requirements, with the Group's capital adequacy ratio at 15.71%, Tier 1 capital adequacy ratio at 14.53%, and Core Tier 1 capital adequacy ratio at 13.83% as of June 2024, all at high levels, and a leverage ratio of 8.20% also meeting regulatory standards Capital Adequacy Ratios (Group) | Indicator (%) | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Core Tier 1 Capital Adequacy Ratio | 13.83 | 13.53 | | Tier 1 Capital Adequacy Ratio | 14.53 | 14.24 | | Capital Adequacy Ratio | 15.71 | 15.99 | - As of June 2024, the Group's leverage ratio was **8.20%**, a decrease from **8.40%** at the end of the previous year[208](index=208&type=chunk) [Outlook](index=84&type=section&id=Item%203.7.%20Outlook) For H2 2024, Chongqing's regional economy is expected to continue its recovery, and the bank will further advance its retail-driven, technology-empowered, talent-strengthened strategy and 'one core, four drivers' development system, focusing on enhancing operational efficiency, serving overall development, accelerating digital technology empowerment, safeguarding risk bottom lines, and improving management effectiveness to drive high-quality development - Strategic priorities for the second half of the year include: tapping into rural county markets, aligning with major strategic projects, accelerating digital technology empowerment, safeguarding risk control bottom lines, and enhancing value creation capabilities[211](index=211&type=chunk)[212](index=212&type=chunk) Corporate Governance [Overview of Corporate Governance](index=87&type=section&id=Item%204.1.%20Overview%20of%20Corporate%20Governance) During the reporting period, the bank maintained a sound corporate governance structure in strict compliance with laws and regulations, holding various board and supervisory meetings, with no significant discrepancies from governance requirements, and disclosed changes in directors, supervisors, and senior management, shareholdings, employee and institutional details, and dividend distribution plans - During the reporting period, the company held **1** general meeting of shareholders, **7** board meetings, **23** board special committee meetings, **6** supervisory board meetings, and **4** supervisory board special committee meetings[215](index=215&type=chunk) - As of June 2024, the Group had **14,592** active employees, with **14,156** at the bank itself; the bank has **1,743** branches, with its network covering all **38** administrative districts and counties in Chongqing[227](index=227&type=chunk)[231](index=231&type=chunk) - The company distributed a 2023 annual cash dividend of **RMB 0.2885 yuan** per share (tax inclusive), totaling **3.28 billion yuan**, representing **30.05%** of net profit attributable to the parent company; additionally, the company plans to implement a 2024 interim dividend distribution[237](index=237&type=chunk)[238](index=238&type=chunk) Environmental and Social Responsibility [Environmental and Social Responsibility](index=96&type=section&id=Item%205.1.%20Environmental%20and%20Social%20Responsibility) The bank actively fulfills its environmental and social responsibilities by promoting green finance with 67.46 billion yuan in green credit, advancing rural revitalization with 240.46 billion yuan in agriculture-related loans, and protecting consumer rights through established mechanisms and financial literacy campaigns, handling 874 consumer complaints during the period - As of June 2024, green credit balance reached **67.46 billion yuan**, a net increase of **5.47 billion yuan** from the end of the previous year[123](index=123&type=chunk)[241](index=241&type=chunk) - As of June 2024, agriculture-related loan balance reached **240.46 billion yuan**[244](index=244&type=chunk) - During the reporting period, **3,288** financial literacy promotion activities were conducted, reaching **1.02 million** people; a total of **874** consumer complaints were handled[249](index=249&type=chunk)[250](index=250&type=chunk) Significant Matters [Significant Matters](index=101&type=section&id=Item%206.1.%20Significant%20Matters) During the reporting period, the bank and related parties strictly adhered to all commitments made at the time of listing, with no non-operating appropriation of funds by controlling shareholders or related parties, no bankruptcy reorganizations, major lawsuits, arbitrations, or significant penalties, and major related party transactions, primarily credit extensions to major shareholders, were duly approved - The bank and related parties strictly fulfilled all commitments made during the initial public offering, including share lock-up and reduction intentions[254](index=254&type=chunk)[255](index=255&type=chunk) - During the reporting period, the bank was not involved in any major lawsuits, arbitrations, bankruptcy reorganizations, or subject to significant administrative penalties[264](index=264&type=chunk)[265](index=265&type=chunk)[266](index=266&type=chunk) - Major related party transactions approved during the reporting period primarily involved credit extensions to major shareholders such as Chongqing Yufu Holding Group and Chongqing Urban Construction Investment Group, all of which underwent board or shareholder meeting review procedures[187](index=187&type=chunk)[189](index=189&type=chunk)[190](index=190&type=chunk) Share Changes and Shareholder Information [Share Changes and Shareholder Information](index=106&type=section&id=Item%207.1.%20Share%20Changes%20and%20Shareholder%20Information) During the reporting period, the bank's total share capital remained unchanged at 11.36 billion shares, with 175,010 shareholders at period-end, indicating a dispersed ownership structure with no controlling shareholder or actual controller, and Hong Kong Securities Clearing Company (Nominees) Limited being the largest shareholder representing H-share investors, while A-share major shareholders are local state-owned enterprises in Chongqing - Total share capital remained unchanged during the reporting period at **11,357,000,000** shares[273](index=273&type=chunk)[275](index=275&type=chunk) - As of the end of the reporting period, the total number of shareholders was **175,010**[274](index=274&type=chunk) - The bank's equity structure is dispersed, with no controlling shareholder or actual controller; the top three A-share shareholders are Chongqing Yufu Capital Operation Group (**8.70%**), Chongqing Urban Construction Investment Group (**7.02%**), and Chongqing Development Real Estate Management Co, Ltd (**5.19%**)[276](index=276&type=chunk)[282](index=282&type=chunk) Financial Report [Financial Report](index=116&type=section&id=Item%208.1.%20Financial%20Report) This section contains the full 2024 semi-annual financial report prepared under Chinese accounting standards, reviewed by KPMG Huazhen LLP, including consolidated and parent company balance sheets, income statements, cash flow statements, statements of changes in equity, and detailed financial statement notes - This semi-annual financial report has been reviewed by KPMG Huazhen LLP in accordance with Chinese review standards[304](index=304&type=chunk)[307](index=307&type=chunk)