[Announcement Statement](index=1&type=section&id=Announcement%20Statement) This announcement is a preliminary earnings report for Jiangsu Changshu Rural Commercial Bank Co., Ltd. for H1 2025, with unaudited data and investment risk warnings - This announcement is the 2025 semi-annual performance express report of Jiangsu Changshu Rural Commercial Bank Co., Ltd. The data contained herein is unaudited by an accounting firm and represents preliminary accounting data, reminding investors to be aware of investment risks[1](index=1&type=chunk)[2](index=2&type=chunk) [Key Financial Data and Indicators](index=1&type=section&id=I.%20Key%20Financial%20Data%20and%20Indicators%20for%20H1%202025) The bank's H1 2025 financial performance shows double-digit growth in revenue and net profit, with stable asset expansion and improved asset quality [Financial Data Overview](index=1&type=section&id=Financial%20Data%20Overview) In H1 2025, Changshu Bank achieved double-digit growth in operating revenue and net profit attributable to shareholders, with steady total asset growth, a decrease in non-performing loan ratio, but a slight decrease in provision coverage ratio 2025 Semi-Annual Key Financial Data and Indicators (Unit: Million Yuan, Currency: RMB) | Item | Jan-Jun 2025 (Unaudited) | Jan-Jun 2024 (Unaudited) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 6,062 | 5,506 | 10.10 | | Operating Profit | 2,440 | 2,190 | 11.42 | | Total Profit | 2,458 | 2,179 | 12.80 | | Net Profit Attributable to Ordinary Shareholders of the Bank | 1,969 | 1,734 | 13.55 | | Net Profit Attributable to Ordinary Shareholders of the Bank Excluding Non-Recurring Gains and Losses | 1,952 | 1,738 | 12.31 | | Basic Earnings Per Share (Yuan/Share) | 0.59 | 0.52 | 13.46 | | Return on Total Assets (%) | 1.10 | 1.08 | Increased by 0.02 percentage points | | Weighted Average Return on Net Assets (%) | 13.33 | 13.28 | Increased by 0.05 percentage points | | **Item** | **June 30, 2025 (Unaudited)** | **December 31, 2024 (Audited)** | **Change (%)** | | Total Assets | 401,251 | 366,582 | 9.46 | | Of which: Total Loans | 251,471 | 240,862 | 4.40 | | Total Liabilities | 369,268 | 335,913 | 9.93 | | Of which: Total Deposits | 310,777 | 286,546 | 8.46 | | Owners' Equity Attributable to Ordinary Shareholders of the Bank | 29,898 | 28,648 | 4.36 | | Share Capital | 3,316 | 3,015 | 9.98 | | Net Assets Per Share Attributable to Ordinary Shareholders of the Bank (Yuan/Share) | 9.01 | 9.50 | -5.16 | | Non-Performing Loan Ratio (%) | 0.76 | 0.77 | Decreased by 0.01 percentage points | | Provision Coverage Ratio (%) | 489.53 | 500.51 | Decreased by 10.98 percentage points | [Notes on Financial Data](index=1&type=section&id=Notes%20on%20Financial%20Data) The report clarifies the annualized nature of total asset return and weighted average return on equity, the composition of total loans and deposits, and the reason for the decrease in net assets per share - Return on total assets and weighted average return on net assets are **annualized data**[3](index=3&type=chunk) - Total loans do not include accrued interest, and total deposits do not include accrued interest[4](index=4&type=chunk) - Net assets per share attributable to ordinary shareholders of the bank decreased compared to the beginning of the year, primarily due to the conversion of capital reserves into share capital[4](index=4&type=chunk) [Explanation of Operating Performance and Financial Position](index=2&type=section&id=II.%20Explanation%20of%20Operating%20Performance%20and%20Financial%20Position) The bank maintained strong business focus, achieving double-digit growth in revenue and net profit, while expanding customer base and maintaining good asset quality - The bank consistently focused on its core business, driving down liability costs through a dual-pronged approach to assets and liabilities, expanding its customer ecosystem, achieving multi-point breakthroughs in innovative businesses, and extending its provincial footprint[5](index=5&type=chunk) - In H1 2025, operating revenue and net profit attributable to ordinary shareholders both maintained **double-digit growth**, with asset quality remaining at a relatively good industry level[5](index=5&type=chunk) 2025 H1 Key Operating Indicators | Indicator | Jan-Jun 2025 / End of June 2025 | Change from prior period / beginning of year | | :--- | :--- | :--- | | Operating Revenue | 6.062 billion yuan | Increased by 10.10% year-on-year | | Net Profit Attributable to Ordinary Shareholders of the Bank | 1.969 billion yuan | Increased by 13.55% year-on-year | | Total Assets | 401.251 billion yuan | Increased by 9.46% from beginning of year | | Total Loans | 251.471 billion yuan | Increased by 4.40% from beginning of year | | Total Deposits | 310.777 billion yuan | Increased by 8.46% from beginning of year | | Non-Performing Loan Ratio | 0.76% | Decreased by 0.01 percentage points from beginning of year | | Provision Coverage Ratio | 489.53% | Decreased by 10.98 percentage points from beginning of year | [Risk Warning](index=2&type=section&id=III.%20Risk%20Warning) This preliminary financial data for H1 2025 may differ from the final report, with an expected variance not exceeding 10% - The main financial data for H1 2025 contained in this announcement are preliminary accounting data and may differ from the data disclosed in the final semi-annual report, but the expected variance will not exceed **10%**[6](index=6&type=chunk) [Reference Documents](index=2&type=section&id=IV.%20Reference%20Documents) Reference documents include comparative balance sheets and income statements signed by key executives - Reference documents include comparative balance sheets and income statements signed and sealed by the legal representative, president, chief financial officer, and head of the accounting department[7](index=7&type=chunk) [Announcement Date and Signatures](index=2&type=section&id=Announcement%20Date%20and%20Signatures) This announcement was issued by the Board of Directors of Jiangsu Changshu Rural Commercial Bank Co., Ltd. on July 21, 2025 - This announcement was issued by the Board of Directors of Jiangsu Changshu Rural Commercial Bank Co., Ltd. on **July 21, 2025**[8](index=8&type=chunk)

Core Viewpoint - The banking sector is currently under pressure, but the market's preference for high dividend strategies is driving a notable upward trend in bank stocks. The release of policy dividends, along with increased participation from insurance funds, active funds, and passive funds, is expected to provide stable incremental capital for bank stocks, enhancing the sustainability of valuation recovery [1][2]. Group 1: Current Banking Fundamentals - The banking sector's fundamentals are still under pressure but show signs of marginal improvement. The net interest margin is expected to decline significantly less in 2025 due to the expiration of high-interest liabilities and a slowdown in loan pricing declines. The estimated net interest margins for state-owned and joint-stock banks are projected to be 1.34% and 1.55%, respectively, down 12 and 9 basis points from the end of 2024 [2]. - The asset quality is expected to improve while remaining stable. As of Q1 2025, the non-performing loan ratio for commercial banks was recorded at 1.51%, only slightly up by 1 basis point from the end of 2024. The provision coverage ratio stands at 208%, down 3.06 percentage points, indicating ample room above the regulatory requirement of 150% [2]. Group 2: Valuation Recovery and Market Dynamics - The core logic driving the current market rally is the valuation recovery fueled by the funding environment. This trend is expected to continue, supported by low interest rates and an asset shortage, which highlight the advantages of high dividends and quasi-fixed income characteristics of bank stocks. As of July 11, the banking sector's dividend yield was 4.87%, significantly enhancing its investment appeal due to stable dividends and sound operations [3]. - Continuous inflow of incremental capital is driving a noticeable recovery in bank stock valuations. Policies such as the introduction of mid- to long-term capital into the market and new regulations for public funds have significantly increased the demand for bank stock allocations. As of July 11, the banking sector's price-to-book (PB) ratio was 0.75, indicating substantial room for recovery towards a PB of 1 [3].

Core Viewpoint - A-share listed banks are experiencing a peak in dividend distribution for the 2024 fiscal year, with over thirty banks having completed their annual dividends and several others announcing dividend implementation plans [1][3][4]. Group 1: 2024 Annual Dividends - The Industrial and Commercial Bank of China (ICBC) leads with a total cash dividend of approximately 109.77 billion yuan for the previous year [3][4]. - The six major state-owned banks have collectively distributed over 420 billion yuan in dividends for 2024, with ICBC, China Construction Bank, Agricultural Bank of China, and Bank of China being the top contributors [4][6]. - Other banks such as China CITIC Bank and Beijing Bank have also announced significant cash dividends, with CITIC Bank distributing around 19.46 billion yuan [4][5]. Group 2: 2025 Mid-Year Dividend Plans - Several banks, including China Merchants Bank and Hangzhou Bank, have initiated plans for mid-year dividends in 2025, aiming to enhance investor returns [1][8][10]. - The focus on mid-year dividends is seen as a strategy to improve liquidity and provide more consistent cash flow to investors, which may support long-term stock price appreciation [10]. - Banks like Su Nong Bank and Changsha Bank have expressed intentions to implement mid-year dividend plans based on their financial performance and regulatory requirements [8][9]. Group 3: Stock Performance and Market Trends - The banking sector has shown strong performance in the A-share market, with several banks achieving significant stock price increases in the first half of the year [12][13]. - The overall dividend yield of the banking sector remains attractive, particularly in a low-interest-rate environment, making it appealing for long-term investors [10][13]. - Some banks have faced challenges in executing share buyback plans due to stock price fluctuations, indicating a cautious approach to capital management [11][14].

Core Viewpoint - The reform and risk mitigation of village and town banks in China are accelerating, with multiple cases of absorption and merger occurring simultaneously across various regions, indicating a shift from pilot exploration to large-scale replication in the sector [3][4][11]. Summary by Sections Recent Developments - Recent announcements from banks in Guizhou, Xinjiang, Sichuan, and Jiangsu indicate a trend of absorption and merger of village and town banks, with Guizhou Bank merging with Tongren Fengyuan Village Bank and Xinjiang Bank planning to absorb Xinjiang Huihe Bank [1][2]. - Chengdu Rural Commercial Bank announced plans to absorb and merge six village banks in Sichuan, with regulatory approval granted shortly after [1]. Regulatory Context - The National Financial Regulatory Administration has prioritized the reform and risk mitigation of small financial institutions, with nearly 200 small financial institutions expected to merge or be dissolved by 2024 [4][11]. - As of mid-July, 90 village banks have exited the market this year, surpassing the total of 83 from the previous year, highlighting the urgency of addressing risks in weaker economic regions [4]. Merging Strategies - The absorption and merger of village banks have developed into four distinct strategies: 1. **Branch Conversion**: The most common method, where the village bank's license is canceled, and the original branches are rebranded as branches of the parent bank [6][7]. 2. **Equity Acquisition**: Involves acquiring all shares of the village bank before merging it into a wholly-owned subsidiary [7]. 3. **Survival Mergers**: Multiple village banks controlled by the same parent bank merge into one, retaining the license of the surviving entity [8]. 4. **Cash Buyouts**: The parent bank buys out the village bank's net assets and dissolves it, integrating its assets and liabilities [9]. Market Trends - The trend of bank branch closures is evident, with 2,027 branches exiting the market this year compared to 1,673 last year, driven by high costs and the rise of mobile banking [9]. - For banks still in an expansion phase, merging village banks and establishing branch networks is seen as beneficial for market penetration [10]. Future Outlook - The restructuring of village banks is expected to accelerate, with a focus on risk mitigation and enhancing service to rural revitalization and small enterprises [11]. - Regulatory support is deemed necessary for small banks to thrive, including differentiated regulatory rules and incentives for effective risk management [11].

从上证基本面300指数持仓样本的行业来看，工业占比26.97%、原材料占比14.39%、金融占比10.86%、 信息技术占比8.52%、医药卫生占比8.34%、可选消费占比8.33%、主要消费占比5.08%、能源占比 5.03%、通信服务占比4.55%、房地产占比4.05%、公用事业占比3.88%。 资料显示，指数样本每年调整一次，样本调整实施时间为每年6月的第二个星期五的下一交易日。权重 因子随样本定期调整而调整，调整时间与指数样本定期调整实施时间相同。在下一个定期调整日前，权 重因子一般固定不变。特殊情况下将对指数进行临时调整。当样本退市时，将其从指数样本中剔除。样 本公司发生收购、合并、分拆等情形的处理，参照计算与维护细则处理。 从指数持仓来看，上证基本面300指数十大权重分别为：中芯国际（1.04%）、东吴证券（1.02%）、常 熟银行（0.98%）、亨通光电（0.86%）、赛轮轮胎（0.84%）、明阳智能（0.84%）、财通证券 （0.73%）、郑煤机（0.73%）、明泰铝业（0.71%）、三安光电（0.68%）。 从上证基本面300指数持仓的市场板块来看，上海证券交易所占比100.00%。 金融界 ...

Core Viewpoint - A-share listed banks are actively distributing dividends, reflecting strong operational performance and compliance with regulatory requirements for cash dividends [1][2] Group 1: Dividend Distribution - As of July 13, 35 out of 42 A-share listed banks have completed their 2024 annual dividend distributions, including major state-owned banks and several joint-stock and city commercial banks [1] - The trend of high dividend payouts is driven by the implementation of new policies aimed at enhancing cash dividends and improving predictability in dividend distributions [1][2] Group 2: Dividend Yield - Approximately half of the A-share listed banks have a dividend yield exceeding 4%, with six banks, including China Merchants Bank and Postal Savings Bank, surpassing 7% [2] - The high dividend yield is attributed to the banks' stable long-term operations and a lower risk appetite among investors who prioritize steady returns [2] Group 3: Market Performance - The banking sector has seen a cumulative increase of 19.34% year-to-date, driven by the appeal of high dividend yields and increased cash dividend distributions [2] - Several banks are planning mid-term dividend proposals for 2025, further enhancing their investment attractiveness [2] Group 4: Future Outlook - The current market environment is expected to support a steady upward trend in bank stocks, bolstered by strong operational performance and high dividend levels [3] - The defensive nature of bank stocks, combined with favorable macroeconomic policies, suggests continued investment value despite external challenges [3]

Core Viewpoint - The article highlights the increasing interest of institutional investors in listed banks, particularly focusing on loan allocation, interest margin trends, and capital replenishment strategies. Group 1: Investor Engagement - Multiple listed banks, including Jiangsu Bank, Suzhou Bank, and Ningbo Bank, have engaged in investor relations activities, discussing key issues with investors [1] - As of July 12, 2023, 26 listed banks have been surveyed by institutions, totaling 230 instances of engagement, primarily among small and medium-sized banks [1][3] - Changshu Bank received the highest number of surveys at 33, while Ningbo Bank attracted the most institutions, with 195 participating [3][4] Group 2: Interest Margin Trends - The interest margin remains a hot topic among institutions, with the net interest margin for banks reported at 1.43% in Q1 2025, a year-on-year decrease of 0.11 percentage points [4] - Jiangsu Bank aims to maintain a net interest margin that outperforms peers by enhancing asset research capabilities and managing loan interest rates [5] - Changshu Bank plans to consolidate its interest margin advantage by optimizing both asset and liability sides, focusing on high-yield assets and controlling high-cost deposits [6] Group 3: Capital Replenishment - Capital replenishment is another key focus for investors, with regulatory updates from the Financial Regulatory Bureau regarding advanced capital measurement methods [8] - Ningbo Bank is actively researching regulatory requirements and plans to issue up to 45 billion yuan in capital bonds [8] - Suzhou Bank reported a successful conversion of nearly 5 billion yuan in convertible bonds, enhancing its capital strength [9] - Su Nong Bank intends to issue up to 1 billion yuan in secondary capital bonds to support its operations [9]

Core Viewpoint - The A-share listed banks are experiencing a peak in dividend distribution, with total dividends for 2024 exceeding 630 billion yuan, marking an increase of 20 billion yuan from the previous year, and setting a new historical high [1][4]. Dividend Distribution - On July 11, both China Merchants Bank and Xi'an Bank distributed cash dividends, with China Merchants Bank paying 2.000 yuan per share, totaling approximately 50.44 billion yuan, resulting in a dividend yield of about 5.7% based on a hypothetical share price of 35 yuan [2][3]. - Xi'an Bank distributed 1 yuan for every 10 shares, amounting to 444 million yuan, which represents 17.37% of its net profit [2]. - On July 10, Beijing Bank and CITIC Bank also executed dividend distributions, with Beijing Bank distributing 0.2 yuan per share, totaling 4.23 billion yuan, and CITIC Bank distributing 0.1722 yuan per share, totaling 9.582 billion yuan [3]. Overall Dividend Performance - As of July 11, 33 A-share listed banks have completed their 2024 annual dividend distributions, with five more having announced their plans [3]. - The six major state-owned banks maintained a dividend payout ratio of over 30%, with total cash dividends reaching 420.63 billion yuan, led by Industrial and Commercial Bank of China with 109.77 billion yuan [4]. Mid-term Dividend Plans - Several banks are planning mid-term dividends for 2025, with institutions like Changsha Bank and Su Nong Bank expressing intentions to enhance shareholder returns through mid-term distributions [5][6]. - The trend of increasing mid-term dividends is seen as a strategy to improve investor satisfaction and share the benefits of high-quality growth [6]. Market Outlook - Analysts predict a narrowing decline in net profit and revenue for listed banks in the first half of the year, with expectations of a 0.9% year-on-year decrease in revenue and a 0.5% decrease in net profit [7]. - The current market environment is viewed as the beginning of a long-term upward trend for bank stocks, supported by low interest rates and the revaluation of RMB assets [7].

Core Insights - A-share listed banks, particularly city commercial banks and rural commercial banks, have become popular among institutional investors due to their strong performance and resilience in the current economic environment [1][2][3] Group 1: Institutional Research Trends - In the first half of the year, 25 banks received institutional research, totaling 2365 instances, marking a historical high [2] - City and rural commercial banks are the main focus of this research, with notable interest in Ningbo Bank and Changshu Bank, which attracted significant foreign institutional participation [2][4] - The research highlights a regional focus, with banks in the Yangtze River Delta and Chengdu-Chongqing economic circles receiving the most attention [2][4] Group 2: Key Areas of Focus - Institutional investors are particularly interested in credit allocation, asset quality, and dividend policies of banks [1][6] - Ningbo Bank reported an average net interest margin of 1.475%, outperforming state-owned banks, which averaged 1.33% [3] - The focus on dividend policies is evident, with banks like Chongqing Bank maintaining high cash dividend levels for over a decade [6] Group 3: Asset Quality and Future Outlook - Banks express confidence in maintaining stable asset quality, with expectations of better performance in net interest margins compared to the previous year [7] - Analysts predict continued interest in bank stocks due to their high dividend yields and stable earnings, despite potential downward pressure on interest margins [7]

Core Viewpoint - The third Low Altitude (Suzhou) Industry Innovation Ecological Conference and the 2025 Digital Low Altitude Conference was held in Suzhou, focusing on the theme "Digital Innovation Leads, Intelligent Benefits for the Future" [1] Group 1: Financial Support Initiatives - Changshu Rural Commercial Bank actively engaged in the low-altitude economy sector by leveraging its financial institution advantages to communicate with industry representatives, researchers, and experts [1] - The bank has implemented various measures to support the development of the low-altitude economy, including financial service innovation, industry chain collaboration, talent cultivation, and resource integration [1][2] - Financial products offered by the bank, such as "Patent Loan," "Talent Loan," and "Hui Ke Loan," are designed to meet the needs of technology-driven companies in the low-altitude economy, characterized by light assets and high R&D investment [1] Group 2: Comprehensive Service Coverage - The bank provides full-cycle services covering all stages of enterprise development, offering construction loans for newly introduced companies and working capital support for mature enterprises [2] - A "policy supermarket" has been established, integrating over a hundred policies, including tax incentives and technological transformation subsidies, to assist companies in matching applicable projects [2] - The bank actively builds platforms for government, banks, and enterprises to connect, supporting low-altitude economic activities and promoting technological cooperation and order matching among industry chain enterprises [2] Group 3: Talent Development and Future Plans - The bank has a dedicated team for scientific and technological innovation, conducting in-depth research on low-altitude economic trends and collaborating with universities to establish postdoctoral workstations [2] - As the low-altitude economy is a rapidly growing emerging industry, the bank aims to provide comprehensive and customized financial services to enterprises in this sector through multi-dimensional initiatives [2] - The bank plans to continue its efforts in financial innovation to empower the low-altitude economy and explore new development paths in collaboration with industry stakeholders [2]