Core Viewpoint - The banking industry is facing ongoing pressure on net interest margins, prompting various strategies to stabilize these margins, including a recent competition held by Ruifeng Bank to showcase effective margin management practices [1][2]. Group 1: Industry Overview - The net interest margin (NIM) for the banking sector is under downward pressure, although the rate of decline has shown signs of narrowing [1]. - In the first half of the year, among 42 A-share listed banks, the highest NIM was 2.58% (Changshu Bank), while the lowest was 1.08% (Xiamen Bank) [4]. - Only three banks (Xi'an Bank, Chongqing Bank, and Qilu Bank) reported an increase in NIM, while 18 banks experienced a decline of over 10 basis points [4][5]. Group 2: Ruifeng Bank's Performance - Ruifeng Bank reported a NIM of 1.46% in the first half of the year, a decrease of 4 basis points from the previous year [3]. - The bank's revenue growth was 3.91%, and net profit attributable to shareholders grew by 5.59%, ranking third among listed rural commercial banks [3]. - As of the reporting period, Ruifeng Bank's total assets amounted to 230.07 billion yuan, placing it seventh among listed rural commercial banks [3]. Group 3: Margin Management Strategies - Ruifeng Bank held a competition to highlight effective NIM management practices, attended by senior leadership and various department heads [2]. - The competition aimed to foster a culture where every employee is engaged in NIM management, emphasizing the importance of clear responsibilities and strong execution [2]. - The bank's leadership stressed the urgency of NIM management and the need for a comprehensive approach across all business processes [2]. Group 4: Deposit Trends - The trend of increasing the proportion of time deposits continues, with 30 banks reporting a rise in time deposit ratios compared to the end of the previous year [6][7]. - Ruifeng Bank, along with Zhejiang Bank and Changsha Bank, saw an increase of over 5 percentage points in time deposit ratios [7]. - The banking sector is expected to have further room for downward adjustments in both loan and deposit pricing, particularly as existing business matures and undergoes repricing [7].

Investment Rating - The report maintains a "Recommended" investment rating for the banking sector, expecting the sector index to outperform the benchmark index by over 5% in the next 3-6 months [4][24]. Core Insights - The overall asset quality of commercial banks has improved in the first half of 2025, with a slight decrease in the non-performing loan (NPL) ratio to 1.49% [7][8]. - Retail loan asset quality remains under pressure, particularly in specific areas such as credit cards and personal business loans, due to ongoing economic recovery challenges [8]. - The report emphasizes the importance of long-term capital inflows and public fund reforms, suggesting that banks with high dividend yields and solid asset quality present good investment opportunities [8][9]. Summary by Sections Corporate Sector - The corporate lending sector shows improved asset quality, driven by government policies aimed at stabilizing growth, with a focus on high-tech manufacturing and key policy-supported areas [3]. - The NPL ratio in the corporate real estate sector has increased by 10 basis points to 3.59%, but the peak risk exposure phase is considered to have passed [3][8]. Retail Sector - Retail loan quality is closely linked to employment, income expectations, and consumer confidence, with the NPL ratio for mortgages, credit cards, and consumer loans showing increases of 10bp, 9bp, and 6bp respectively [8]. - The report highlights that the recovery of household balance sheets may take longer, impacting the retail loan sector's performance [8]. Investment Recommendations - The report suggests a diversified investment strategy focusing on state-owned banks and robust regional banks with high provisioning coverage, such as China Merchants Bank and CITIC Bank [8][9]. - It also recommends attention to undervalued joint-stock banks with potential for return on equity (ROE) improvement, specifically mentioning浦发银行 (Shanghai Pudong Development Bank) [8]. Performance Metrics - The banking sector's absolute performance over the past month is reported at 5.0%, with a 17.3% increase over six months and 17.7% over twelve months [5]. - The report provides earnings per share (EPS) and price-to-earnings (PE) ratios for key banks, indicating a positive outlook for banks like 宁波银行 (Ningbo Bank) and 招商银行 (China Merchants Bank) [10].

Investment Rating - The report maintains an "Increase" rating for the banking sector, indicating a positive outlook for the industry [1]. Core Insights - In the first half of 2025, the contribution of financial asset disposal gains from AC and OCI accounts to revenue reached 5.2%, an increase of 2.9 percentage points compared to 2024 [1][2]. - The investment income growth rate for 42 listed banks was 23.6%, with AC, OCI, and TPL gains showing year-on-year growth rates of 134.7%, 79.0%, and -8.4% respectively [1]. - The report highlights that the increase in disposal gains does not necessarily indicate a significant increase in asset disposal scale, as market conditions and strategies vary among banks [2]. Financial Asset Disposal Gains - The contribution of AC and OCI financial asset disposal gains to revenue was 5.2%, up 2.9 percentage points from 2024, with AC asset disposal gains contributing 2.6% [2]. - Among different types of banks, rural commercial banks had the highest contribution from AC and OCI disposal gains, reaching 11.0%, an increase of 6.2 percentage points from 2024 [2]. - Specific banks such as Jiangyin Bank, Sunong Bank, and Zijin Bank had high disposal gain ratios relative to their revenue, at 28.9%, 26.7%, and 22.7% respectively [2]. OCI Floating Profit Situation - The overall OCI floating profit decreased compared to the end of the previous year, accounting for 12.6% of the estimated profit for 2025 [3]. - Major state-owned banks like CCB and ABC reported significant OCI floating profits, with balances exceeding 30 billion [3]. - The average contribution of OCI floating profits to profits for city and rural commercial banks was notably high, with Ningbo Bank's ratio reaching 35% [3][6]. Sector Trends - The banking sector is expected to benefit from expansionary policies aimed at stabilizing the economy, with a focus on real estate and consumer spending [7]. - The report suggests a focus on banks with improving fundamentals, such as Ningbo Bank, and those with dividend strategies like Jiangsu Bank and Chengdu Bank [7]. - Attention is also drawn to banks with potential convertible bond conversion expectations, including Shanghai Bank and Industrial Bank [7].

Investment Rating - The report maintains a positive outlook on the banking sector's allocation value, suggesting continued investment interest in the sector [4][10]. Core Viewpoints - The performance of listed banks in the first half of 2025 shows a marginal improvement in revenue and profit margins, with year-on-year growth of 1.0% in revenue and 0.8% in net profit attributable to shareholders [4][5]. - The recovery in the bond market during the second quarter has alleviated some of the pressures on bond investment returns, contributing to the overall performance improvement [4][5]. - The report anticipates that the banking sector's revenue and net profit growth will remain around 1% year-on-year for 2025, despite ongoing pressures on the banking fundamentals [4][10]. Summary by Sections Performance Overview - In the first half of 2025, listed banks experienced a year-on-year revenue growth of 1.0% and a net profit growth of 0.8%, with quarter-on-quarter improvements of 2.8 percentage points and 2 percentage points respectively [4][5]. - The growth in interest-earning assets was 9.7% year-on-year, with a stable credit growth of 8% and a significant increase in financial investments by 14.9% [4][11]. - The net interest margin for the first half of 2025 was 1.33%, showing a year-on-year decline of 13 basis points, which is less than the decline seen in the same period last year [4][5]. Non-Interest Income - Non-interest income showed a positive trend, with a year-on-year increase of 10.8% in other non-interest income and a 3.1% increase in fee income [4][5][10]. - The report highlights that the recovery in the capital market has contributed to the improvement in non-interest income [4][10]. Asset Quality - The report notes that while the non-performing loan ratio remains stable, there is an increase in the generation rate of overdue and non-performing loans, particularly in retail banking [4][10]. - The provision coverage ratio remained stable, with an increase in provisioning efforts during the first half of 2025 [4][10]. Future Outlook - The banking sector is expected to face continued pressure in 2025, but signs of a potential turning point are emerging, with improved net interest margins and non-interest income [4][10]. - The report suggests that the demand for bank stocks will increase from long-term funds, driven by favorable policies encouraging investment in the banking sector [4][10].

Market Performance - The rural commercial bank sector experienced a decline of 0.73% on September 5, with Jiangyin Bank leading the drop [1] - The Shanghai Composite Index closed at 3812.51, up 1.24%, while the Shenzhen Component Index closed at 12590.56, up 3.89% [1] Individual Stock Performance - The closing prices and changes for key rural commercial banks are as follows: - Yunnan Rural Commercial Bank: 6.47, unchanged - Changshu Bank: 7.57, down 0.39% - Ruifeng Bank: 5.50, down 0.54% - Qingnong Bank: 3.27, down 0.61% - Zijin Bank: 2.92, down 0.68% - Wuxi Bank: 5.92, down 0.84% - Zhangjiagang Bank: 4.42, down 0.90% - Sunong Bank: 5.22, down 0.95% - Hunan Rural Commercial Bank: 8.72, down 1.13% - Jiangyin Bank: 4.80, down 2.04% [1] Capital Flow Analysis - The rural commercial bank sector saw a net inflow of 33.67 million yuan from main funds, while retail funds experienced a net outflow of 29.91 million yuan [1] - The detailed capital flow for individual banks indicates: - Zijin Bank: Main net outflow of 26.33 million yuan, retail net outflow of 3.10 million yuan - Sunong Bank: Main net inflow of 12.23 million yuan, retail net outflow of 7.43 million yuan - Wuxi Bank: Main net inflow of 6.05 million yuan, retail net inflow of 2.68 million yuan - Jiangyin Bank: Main net outflow of 10.44 million yuan, retail net inflow of 7.44 million yuan [2]

Core Viewpoint - The A-share market experienced a widespread decline in bank stocks, with several major banks seeing significant drops in their share prices [1][2]. Group 1: Stock Performance - Postal Savings Bank of China saw a decrease of 2.03%, with a total market capitalization of 751.8 billion [2]. - CITIC Bank's shares fell by 2.00%, with a market value of 437.4 billion [2]. - Bank of China experienced a decline of 1.60%, with a market capitalization of 1.7818 trillion [2]. - Agricultural Bank of China dropped by 1.46%, holding a market value of 2.5934 trillion [2]. - Other banks such as Everbright Bank, Construction Bank, and Shanghai Pudong Development Bank also reported declines of over 1% [1]. Group 2: Year-to-Date Performance - Agricultural Bank of China has the highest year-to-date increase at 45.00% [2]. - Postal Savings Bank of China and CITIC Bank have year-to-date increases of 15.63% and 14.78%, respectively [2]. - Shanghai Pudong Development Bank has a notable year-to-date increase of 36.48% despite the recent decline [2].

Core Viewpoint - The financial performance of listed rural commercial banks in China is showing a trend of increasing differentiation, with significant revenue growth observed in specific banks like Changshu Bank and Jiangyin Bank, while others lag behind [1][2][3]. Group 1: Revenue Performance - In the first half of 2025, the top two performing banks were Chongqing Rural Commercial Bank and Shanghai Rural Commercial Bank, with revenues of 14.741 billion and 13.444 billion respectively, both nearing 15 billion [2]. - Changshu Bank and Qingnong Bank followed with revenues exceeding 6 billion, while the remaining banks had revenues below 3 billion [2]. - Changshu Bank and Jiangyin Bank reported significant year-on-year revenue growth, both exceeding 10%, which is notably higher than other banks [3]. Group 2: Non-Interest Income - In a declining net interest margin environment, listed rural commercial banks are increasingly relying on non-interest income to stabilize revenue [5]. - Investment income has become a crucial component of non-interest income, with most banks reporting significant increases compared to the previous year, particularly Zijin Bank and Jiangyin Bank, which saw increases of 95.41% and 81.44% respectively [5]. - Chongqing Rural Commercial Bank was the only bank to report a decrease in investment income year-on-year, while its interest income ratio increased, helping maintain stable overall revenue [5][6]. Group 3: Mid-Year Dividends - Several listed rural commercial banks announced their first-ever mid-year dividend plans, including Changshu Bank, which proposed a cash dividend of 0.15 yuan per share, totaling 497 million yuan [7]. - Jiangyin Bank and Su Nong Bank also introduced mid-year dividends, aiming to enhance investor returns and boost long-term holding confidence [7][8]. - The overall trend indicates a shift towards more frequent dividend distributions, moving from annual to semi-annual payouts, which is expected to improve dividend yields in the coming years [8].

Meeting Overview - The shareholders' meeting of Zhejiang Shaoxing Ruifeng Rural Commercial Bank Co., Ltd. is scheduled for September 11, 2025, at 14:00 [1] - The meeting will take place at the bank's headquarters in Shaoxing, Zhejiang Province [1] Meeting Agenda - The meeting will include the announcement of the start, content discussion, shareholder inquiries, attendance declaration, voting, and legal opinions [1][2] - Shareholders have the right to vote, speak, and inquire during the meeting [2] Voting Procedures - Voting will be conducted through both on-site and online methods, with each share granting one vote [2][3] - Votes must be clearly marked as "agree," "disagree," or "abstain," and improperly filled ballots will be considered as abstentions [3] Resolutions Proposed - Proposal to abolish the supervisory board and delegate its powers to the audit committee of the board of directors [4] - Proposal to amend the business scope and revise the company's articles of association, including changes to the governance structure [4][6] Governance Changes - The bank will no longer establish a supervisory board, and current supervisors will cease their roles [4] - The governance structure will be adjusted to enhance the board's authority and streamline operations [4][6] Business Scope Amendments - The bank's business scope will be updated to include various banking services, with specific exclusions for foreign exchange operations [6][16] - The revised articles of association will reflect these changes and require approval from regulatory authorities [6][16] Legal Compliance - The bank will ensure compliance with relevant laws and regulations during the restructuring process [4][6] - Legal opinions will be provided by Jiangsu Century Tongren Law Firm during the meeting [3]

| | | 2025 年第一次临时股东大会会议资料 浙江绍兴瑞丰农村商业银行股份有限公司 股东大会议程 会议时间：2025 年 9 月 11 日（星期四）下午 14:00 会议地点：浙江省绍兴市柯桥区笛扬路 1363 号瑞丰银行三 楼一号会议室 2025 年第一次临时股东大会会议资料 浙江绍兴瑞丰农村商业银行股份有限公司 2025 年第一次临时股东大会会议资料 2025 年 9 月 11 日 会议召集人：公司董事会 一、主持人宣布会议开始 二、会议内容 1 1.审议《不再设立监事会》； 2.审议《变更经营范围及修订<公司章程>》； 3.审议《修订<股东大会议事规则>》； 4.审议《修订<董事会议事规则>》。 三、股东质询 四、宣布股东大会现场出席情况 五、投票表决、计票 六、宣布表决结果 七、律师宣读法律意见书 八、主持人宣布大会结束 2025 年第一次临时股东大会会议资料 浙江绍兴瑞丰农村商业银行股份有限公司 股东大会会议须知 为维护全体股东的合法权益，确保股东大会的正常秩序和议 事效率，保证股东大会的顺利召开，根据《中华人民共和国公司 法》《上市公司股东大会规则》《浙江绍兴瑞丰农村商业银行股份 有限公司章 ...

Market Overview - On September 4, the rural commercial bank sector declined by 0.61% compared to the previous trading day, with Hu Nong Bank leading the decline [1] - The Shanghai Composite Index closed at 3765.88, down 1.25%, while the Shenzhen Component Index closed at 12118.7, down 2.83% [1] Individual Stock Performance - Among the rural commercial banks, Changshu Bank saw a closing price of 7.60 with a gain of 1.20%, while Hu Nong Bank closed at 8.82, down 1.34% [1] - The trading volume and turnover for various banks were reported, with Changshu Bank having a trading volume of 565,700 shares and a turnover of 4.25 billion yuan [1] Capital Flow Analysis - The rural commercial bank sector experienced a net inflow of 384,700 yuan from institutional investors, while retail investors saw a net inflow of 11.7 million yuan [1] - The table of capital flow indicates that the majority of the funds were flowing into certain banks, with Yu Nong Bank receiving a net inflow of 73.51 million yuan from institutional investors [2] Detailed Capital Flow by Bank - Yu Nong Bank had a net inflow of 73.51 million yuan from institutional investors, while it faced a net outflow of 41.89 million yuan from speculative funds [2] - Changshu Bank experienced a net inflow of 19.16 million yuan from institutional investors, but a significant outflow of 51.75 million yuan from speculative funds [2] - Other banks like Zijin Bank and Su Nong Bank also reported net outflows from institutional and speculative funds, indicating varied investor sentiment across the sector [2]