Group 1 - The core theme of the activities organized by the Ministry of Culture and Tourism is "Integrating Intangible Cultural Heritage into Modern Life," focusing on youth inheritance, modern integration, and technological empowerment for heritage protection [1] - Bohai Bank, celebrating its 20th anniversary, combines intangible cultural heritage protection with financial literacy promotion, aligning with the national directive on heritage protection [1] - The bank's activities include a parent-child financial knowledge event at the China Currency Museum, where participants learned about the history of currency and methods to identify counterfeit money [3][5] Group 2 - The bank's initiatives during the Dragon Boat Festival attracted over 680,000 visitors and generated 345 million yuan in consumption, showcasing the integration of cultural events with financial education [5] - Bohai Bank set up a "Financial Consumer Protection Station" during the Dragon Boat races to educate the public on fraud prevention and financial literacy, while also researching the local "Dragon Boat Economy" for potential financial services [5] - In various cities, the bank organized educational activities that combined traditional culture with financial knowledge, such as a study tour on a special train and a video campaign addressing recent fraud trends [7][8]

Group 1 - The People's Bank of China Tianjin Branch is actively preparing for the issuance of technology innovation bonds, focusing on project identification, publicity, and policy support [1] - Three issuers, Tianjin Medicine, Bohai Chemical, and Bohai Bank, are expected to issue bonds with a total scale of 5.55 billion yuan [1] - Two equity investment institutions, Tianchuang Investment and TEDA KOT Investment, have entered the registration channel of the trading association, indicating a broadening of participation in the bond issuance [1]

Financial Performance - The company reported an increase in both operating income and net profit, indicating a successful year of financial performance despite challenging external conditions[12]. - Operating revenue for 2024 reached RMB 25,481,589 thousand, a 1.94% increase from RMB 24,997,370 thousand in 2023[43]. - Pre-tax profit increased by 3.29% to RMB 5,333,030 thousand in 2024, compared to RMB 5,163,077 thousand in 2023[43]. - Net profit rose by 3.44% to RMB 5,255,815 thousand in 2024, up from RMB 5,080,903 thousand in 2023[43]. - The net cash flow from operating activities increased by 14.27% to RMB 92,909,178 thousand in 2024, compared to RMB 81,308,605 thousand in 2023[43]. - The total equity stood at RMB 110.12 billion, a decrease of 3.74% from the previous year[113]. Asset and Liability Management - As of the reporting period, total assets reached CNY 1,843.842 billion, an increase of 6.41% year-on-year[15]. - Total liabilities amounted to CNY 1,733.717 billion, reflecting a year-on-year growth of 7.13%[15]. - The company aims to optimize its asset-liability management and improve capital management to support sustainable growth[12]. - The bank's liquidity ratio in RMB rose by 16.74 percentage points to 70.06 in 2024 from 53.32 in 2023[46]. - The capital adequacy ratio increased by 0.05 percentage points to 11.63 in 2024, compared to 11.58 in 2023[46]. Risk Management - The bank's focus on risk management has strengthened, with a proactive approach to credit risk assessment and control measures in place[149]. - The bank has implemented a unified credit management system, enhancing efficiency and risk control across 37 functional points[198]. - The bank's risk management culture emphasizes a proactive and agile approach to enhance risk management capabilities[197]. - The provision coverage ratio stands at 155.19%, with a loan provision rate of 2.73%, achieving stable asset quality and resilience against expected credit risks[197]. - The bank has established a dedicated team for monitoring and resolving risks associated with large group clients[197]. Customer and Market Engagement - The company is committed to deepening its customer relationships and product offerings through a differentiated operational approach[12]. - The total number of customers increased by 12.83% year-on-year, reaching 118,960 customers[157]. - The bank aims to enhance the quality of inclusive financial services by integrating digital technology into various business scenarios[168]. - The bank's strategy focuses on transforming into an "account bank," "wealth bank," and "ecosystem bank" to meet customer needs[170]. - The bank's retail loan balance stood at CNY 222.027 billion[174]. Digital Transformation and Innovation - The company plans to enhance its digital transformation and risk compliance measures as part of its ongoing operational strategy[12]. - The bank's technology investment reached CNY 1.337 billion during the reporting period, focusing on enhancing digital financial infrastructure and core systems[191]. - The new mobile banking version 7.0 was launched, focusing on three banking positions: account banking, wealth banking, and ecological banking[185]. - The bank's digital marketing and operational platform for retail services has been significantly advanced, enhancing customer interaction and service efficiency[191]. - The bank is exploring the construction of a smart remote banking system, enhancing online customer service experience through a dual-driven model of "channel collaboration + intelligent operation"[186]. Awards and Recognition - In 2024, the bank received multiple awards, including "Most Innovative Institution" and "Most Breakthrough Institution" from the Beijing Financial Assets Exchange[26]. - The bank was recognized as a "Top 20 in ESG Comprehensive Performance" with an AA rating in the banking sector[28]. - The bank's bond business received multiple awards, including "Annual Market Influence Institution" and "Market Innovation Business Institution" from the China Foreign Exchange Trading Center[177]. Strategic Goals and Future Outlook - The company is preparing to celebrate its 20th anniversary with a commitment to high-quality development and service to the real economy[12]. - The bank plans to continue implementing the spirit of the 20th National Congress of the Communist Party and focus on high-quality development goals in 2025[19]. - The bank aims to enhance its strategic positioning by focusing on ten key initiatives to improve operational efficiency and risk management[50]. - The bank's strategy includes optimizing the liability structure and expanding deposit products to ensure stable funding sources[55]. - The bank's credit policy for 2024-2025 emphasizes support for new industrialization and includes measures for risk preference transmission[199].

Financial Performance - The bank reported a consolidated net profit for the year ending December 31, 2024, with specific figures to be detailed in the full annual report[3]. - Operating revenue for 2024 reached RMB 25,481,589, an increase of 1.94% compared to RMB 24,997,370 in 2023[44]. - Pre-tax profit rose to RMB 5,333,030, reflecting a growth of 3.29% from RMB 5,163,077 in the previous year[44]. - Net profit increased by 3.44% to RMB 5,255,815, up from RMB 5,080,903 in 2023[44]. - Net cash flow from operating activities surged by 14.27% to RMB 92,909,178, compared to RMB 81,308,605 in 2023[44]. - Total comprehensive income for the period was 5.68 billion RMB, reflecting a growth of 5.08% year-on-year[61]. - The total operating income for 2024 was RMB 25,481,589, an increase from RMB 24,997,370 in 2023, reflecting a growth of 1.9%[129]. Assets and Liabilities - Total assets reached CNY 1,843.84 billion, a year-on-year increase of 6.41%[16]. - Total liabilities amounted to CNY 1,733.72 billion, growing by 7.13% year-on-year[16]. - The total amount of loans and advances was RMB 936.49 billion, reflecting a growth of 0.41% compared to the end of the previous year[95]. - The group’s total equity stood at RMB 110.13 billion, a decrease of RMB 4.28 billion compared to the previous year, mainly due to the redemption of perpetual bonds[112]. - The total amount of deposits absorbed by the group reached RMB 1,067.56 billion, marking a growth of 14.31% from RMB 934.59 billion in the previous year[108]. Risk Management - The bank's management has outlined the main risks faced in operations and the corresponding measures taken to mitigate these risks[9]. - The non-performing loan ratio stood at 1.76%, indicating stable overall development[16]. - The company emphasized risk management for group customer credit, enhancing the identification and prevention of overall risks associated with group clients[150]. - The company has established a comprehensive risk management framework with a three-line defense system to enhance risk control capabilities[196]. - The company actively monitors large group clients and implements measures for risk resolution, ensuring asset quality remains stable[197]. Awards and Recognition - The company received the "Most Innovative Institution" and "Most Breakthrough Institution" awards at the 2024 Annual Summary Exchange Meeting of the Beijing Financial Assets Exchange[27]. - The company ranked first in the "Rapid Progress Award" for bond underwriting in the 2024 Wind Best Investment Bank selection[28]. - The company was recognized as a "Top 20 Bank in ESG Comprehensive Performance" with an AA rating in the 2024 ESG Development Practice Case selection by the China Banking and Insurance News[29]. - The company won the "Outstanding Regional Service Bank" award at the 2024 Capital Market Summit Forum[32]. - The company received multiple awards from the National Development Bank, including "Outstanding Underwriter" and "Innovation Cooperation Award" for 2024[33]. Strategic Development - The bank's strategic development plan for 2021-2025 is referenced, indicating ongoing growth and expansion initiatives[6]. - The bank aims to enhance its operational capabilities and achieve strategic goals through structural adjustments and business model improvements in 2025[17]. - The implementation of the "9531" system and the transformation of the "Nine Major Banks" are key focuses for the bank's future development[16]. - The company aims to enhance its service quality to the real economy and increase support for key national strategic areas, including technology innovation and green development[54]. - The company is focused on optimizing its business structure and enhancing financial risk control while promoting high-quality development[54]. Digital Transformation - The bank invested CNY 1.337 billion in technology during the reporting period, focusing on building high-standard digital financial infrastructure and enhancing digital capabilities to support business development[191]. - The bank is actively exploring smart remote banking construction, enhancing online customer service experiences through a dual-driven model of "channel collaboration + intelligent operation" for improved service standardization and efficiency[187]. - The mobile banking version 7.0 includes innovative features such as family accounts and a comprehensive service system for wealth management, aiming to provide customized services throughout the customer lifecycle[186]. - The bank is enhancing its data-sharing mechanisms across channels to support seamless service delivery and improve customer experience through integrated data management[187]. Customer and Market Focus - The bank is committed to serving the real economy and enhancing its role in financial support for the community[20]. - The total number of customers reached 118,960, an increase of 12.83% compared to the end of the previous year, with effective customers totaling 71,754, up 11.60%[158]. - The balance of inclusive loans amounted to 55.27 billion yuan, an increase of 3.8 billion yuan from the end of the previous year, with a total of 129,465 loan accounts[170]. - The company is focusing on enhancing digital inclusive finance services, embedding them into various operational scenarios for small and micro enterprises[169]. - The company launched the "Bohai Bank Global Fast Remittance" service, which won the "Outstanding Innovative Case in Transaction Banking" award in 2024[164].

Capital and Financial Overview - The registered capital of China Bohai Bank is RMB 17.762 billion[15]. - The bank's H shares are listed on the Hong Kong Stock Exchange under stock code 9668[15]. - The bank's interim financial report for 2024 has not been audited[10]. - The board of directors approved the interim report on August 28, 2024, with all 13 directors present[8]. - No profit distribution or capital reserve transfer to increase share capital will be made for the interim period of 2024[9]. - The report period covers six months ending June 30, 2024[10]. - The bank's financial data and indicators are prepared in accordance with International Financial Reporting Standards[10]. - Operating revenue for the first half of 2024 was RMB 13,144,941, showing a slight increase of 0.48% compared to RMB 13,082,522 in the same period of 2023[17]. - Pre-tax profit decreased by 11.68% to RMB 4,114,362 from RMB 4,658,582 year-on-year[17]. - Net profit fell by 9.80% to RMB 3,697,109 compared to RMB 4,098,828 in the first half of 2023[17]. - Basic and diluted earnings per share attributable to ordinary shareholders decreased by 8.70% to RMB 0.21 from RMB 0.23[17]. - Total assets increased by 0.88% to RMB 1,747,995,740 as of June 30, 2024, compared to RMB 1,732,733,836 at the end of 2023[17]. - The total amount of loans and advances rose by 1.63% to RMB 947,852,113 from RMB 932,644,435[17]. - Total liabilities amounted to RMB 1,629.425 billion, with an increase of RMB 11.094 billion, a growth rate of 0.69%[33]. - Customer deposits reached RMB 952.835 billion, increasing by RMB 18.241 billion, which is a growth of 1.95%[33]. Risk Management and Asset Quality - The bank emphasizes the importance of risk management in its operations[10]. - The non-performing loan ratio increased to 1.81%, up 0.03 percentage points from 1.78% at the end of 2023[21]. - The capital adequacy ratio improved to 12.46%, an increase of 0.88 percentage points from 11.58% at the end of 2023[21]. - The bank's leverage ratio increased to 5.57% from 5.48% year-on-year, indicating a stronger capital position[102]. - The bank's non-performing loan ratio stands at 1.81% as of the end of the reporting period, indicating stable asset quality[178]. - The total impairment provision for financial assets amounts to CNY 38.039 billion, an increase of CNY 1.933 billion compared to the end of the previous year[178]. - The bank has implemented a ten-level asset quality classification management system to enhance risk control measures[178]. - The bank's credit risk management system has been further optimized, with a focus on key areas, businesses, and customer groups to improve risk identification and strategy[177]. - The bank has established a three-line defense system for risk control, with business lines as the first line of defense and the audit department as the third line[176]. Income and Expense Analysis - Net interest income was RMB 8.080 billion, down 13.37% year-on-year[40]. - Non-interest income increased by 34.89% to RMB 5.065 billion compared to the previous year[39]. - The average yield on loans and advances was 4.48%, compared to 4.78% in the same period last year[48]. - The average cost rate for deposits was 2.48%, down from 2.78% in the first half of 2023[54]. - The net interest margin decreased to 1.16% from 1.24% year-on-year[57]. - Total commission and fee income for the first half of 2024 was RMB 2,254.52 million, a decrease of 2.22% compared to RMB 2,305.68 million in the same period of 2023[63]. - Net income from commission and fees was RMB 1,695.92 million, down 3.92% from RMB 1,765.17 million year-on-year[63]. - Operating expenses decreased by 6.38% to RMB 5,018.27 million, driven by reductions in employee compensation and other general administrative expenses[68]. Loan and Deposit Performance - The balance of loans and advances was RMB 935.947 billion, with an increase of RMB 15.552 billion, marking a growth of 1.69%[32]. - The balance of green loans was RMB 37.75 billion, an increase of RMB 6.49 billion or 20.75% compared to the previous year[139]. - The balance of loans to specialized and innovative enterprises increased by 23.03% year-on-year[138]. - The amount of personal loans decreased to RMB 224,765,387 thousand, with a non-performing loan rate of 3.30% as of June 30, 2024[111]. - The company loans in the leasing and business services sector reached RMB 238,773,667 thousand, with a non-performing loan rate of 1.21%[113]. - The total deposits amounted to RMB 594.28 billion, an increase of RMB 28.11 billion or 4.96% compared to the previous year[136]. - Retail deposits increased by CNY 9.32 billion to CNY 210.32 billion by the end of the reporting period[148]. - The total number of retail customers reached 7.93 million, with a net increase of 219,300 customers during the reporting period[149]. Digital Transformation and Technology Investment - The bank's technology investment reached 640 million yuan during the reporting period, focusing on digital transformation and the development of new financial service systems[169]. - The bank's mobile banking system was upgraded to version 6.3, enhancing user engagement and increasing monthly active users and wealth product transaction volume[164]. - The bank's online financial services emphasized digital and smart finance, aiming to enhance user operations and portal channel construction[163]. - The bank's customer transaction experience was improved through optimized business processes and enhanced risk management strategies[162]. - The bank's website underwent a complete overhaul, enhancing user experience with improved navigation and accessibility features[165]. Market and Liquidity Risk Management - The bank's liquidity risk management framework is governed by a clear structure, with the board of directors ultimately responsible for liquidity risk management[182]. - The liquidity ratio of the group was 75.05% and the liquidity coverage ratio was 138.27% as of June 30, 2024[186]. - The group maintained a sufficient level of high-quality liquid assets, totaling approximately RMB 162 billion, to cover future cash outflows of about RMB 117 billion over the next 30 days[188]. - The bank's liquidity risk levels remained stable and controllable, with no significant liquidity risk events reported during the period[186]. - The bank's market risk management framework includes independent identification, measurement, monitoring, and control of market risks, ensuring alignment with strategic planning and business decisions[189]. - The bank's interest rate risk exposure was measured at 11.29% of Tier 1 capital, remaining within internal limits[191].

Financial Performance - For the first half of 2024, the company's operating revenue was RMB 13,144.94 million, a slight increase of 0.48% compared to RMB 13,082.52 million in the same period of 2023[8]. - The company's net profit for the first half of 2024 was RMB 3,697.11 million, representing a decrease of 9.80% from RMB 4,098.83 million in the first half of 2023[8]. - The total assets as of June 30, 2024, amounted to RMB 1,747,995.74 million, reflecting a growth of 0.88% from RMB 1,732,733.84 million at the end of 2023[9]. - The total loans and advances issued reached RMB 947,852.11 million, an increase of 1.63% from RMB 932,644.44 million at the end of 2023[9]. - The total deposits absorbed by the bank increased to RMB 934,621.54 million, up by 2.13% from RMB 915,161.98 million at the end of 2023[9]. - The company reported a basic earnings per share of RMB 0.21 for the first half of 2024, down 8.70% from RMB 0.23 in the same period of 2023[8]. - The weighted average return on equity decreased to 7.67%, down 1.24 percentage points from 8.91% in the first half of 2023[8]. Risk Management - The report includes a detailed description of the major risks faced by the bank in its management operations and the measures taken to address these risks[5]. - The bank is committed to enhancing its risk management framework, ensuring compliance and effective risk control across all business lines[100][101]. - The bank has implemented a ten-level asset quality classification management system to enhance risk control[104]. - The bank's liquidity risk management strategy focuses on maintaining compliance with liquidity regulatory indicators while minimizing additional liquidity costs[108]. - The bank's liquidity stress tests cover cash flow gaps over 7, 30, and 90-day windows, ensuring compliance with a minimum survival period of 30 days under various stress scenarios[109]. Capital and Equity - The capital adequacy ratio improved to 12.46%, up by 0.88 percentage points from 11.58% at the end of 2023[11]. - The net amount of core tier 1 capital increased to RMB 93.52 billion as of June 30, 2024, compared to RMB 88.81 billion at the end of the previous year[49]. - The bank successfully issued CNY 14 billion in subordinated capital bonds, significantly increasing the net amount of subordinated capital[123]. - The total nominal amount of derivative financial liabilities increased by 43.69% to RMB 1,423.38 million compared to RMB 990.61 million at the end of the previous year[45]. Shareholder Information - The total number of ordinary shares remained unchanged at 17,762,000,000, with 65.09% held by domestic shares and 34.91% by H shares as of June 30, 2024[138]. - The top shareholder, Tianjin TEDA Investment Holding Co., Ltd., holds 3,612,500,000 shares, representing 20.34% of the total shares[139]. - The bank's major shareholders include state-owned entities, with Tianjin TEDA Investment Holding Co., Ltd. being the controlling shareholder[140]. - The company did not issue any new shares during the reporting period[145]. Governance and Compliance - The governance structure includes a shareholders' meeting, board of directors, supervisory board, and senior management, ensuring effective communication and decision-making[164]. - The independent non-executive directors accounted for at least one-third of the board members, ensuring independent oversight of major decisions[169]. - The company has established a compliance system to strengthen internal control and operational risk management[137]. - The bank has strengthened its anti-money laundering internal control mechanisms and conducted on-site inspections of compliance with core obligations[127]. Digital Transformation and Innovation - The bank is focusing on digital transformation and enhancing customer service efficiency through a multi-channel approach[80]. - The bank's technology investment during the reporting period reached 640 million yuan, focusing on digital transformation and enhancing financial service quality[96]. - The mobile banking platform was upgraded to version 6.3, enhancing user experience and increasing monthly active users[92]. - The bank's digital innovation efforts include launching a personal pension investment insurance and wealth management products, improving its retirement financial service system[96]. Economic Outlook - The company anticipates continued economic recovery in China, with GDP growth projected at 5.0% year-on-year for the first half of 2024[13]. - The global economy is expected to continue its recovery trend in the second half of 2024, with a potential interest rate cut by the Federal Reserve[134]. - Credit growth in the banking sector is anticipated to continue declining, but the rate of decline is expected to slow down[134]. Employee and Operational Structure - The group in the reporting period had a total of 13,728 employees, with a gender distribution of 6,414 male and 7,314 female employees[156]. - The bank has established a total of 372 operational branches across 25 provinces, municipalities, and regions, including 35 first-level branches and 286 sub-branches[161]. - The bank's training system has been optimized, focusing on areas such as international settlement, trade financing, and risk management, enhancing the professionalism of its financial team[160]. Non-Performing Loans and Asset Quality - The non-performing loan ratio rose to 1.81% as of June 30, 2024, an increase of 0.03 percentage points from 1.78% at the end of 2023[11]. - The company reported a non-performing loan amount of RMB 1,216,976 thousand in the real estate sector, with a non-performing loan ratio of 1.38%[58]. - The bank's asset quality remains stable, with public loans in infrastructure and manufacturing sectors showing resilience against marginal increases in non-performing loans[135].

Financial Performance - Operating revenue for 2023 was RMB 24,997,370, a decrease of 5.55% compared to RMB 26,465,220 in 2022[22]. - Pre-tax profit decreased by 20.71% to RMB 5,163,077 from RMB 6,511,454 in the previous year[22]. - Net profit for 2023 was RMB 5,080,903, down 16.81% from RMB 6,107,475 in 2022[22]. - The net cash flow from operating activities increased significantly by 203.04% to RMB 81,308,605 from RMB 26,830,977 in 2022[22]. - The total amount of loans and advances (including discounts) was RMB 932.64 billion, a decrease of 2.57% from the previous year, with corporate loans increasing by 5.90%[62]. - The company achieved operating revenue of RMB 24.997 billion and net profit of RMB 5.081 billion, reflecting a decrease of 5.55% and 16.81% respectively compared to the previous year[35][41]. - The bank's net profit for 2023 was RMB 5,163,077 thousand, a decrease of 20.6% compared to RMB 6,511,454 thousand in 2022[84]. Assets and Liabilities - Total assets reached CNY 1,732.734 billion, a year-on-year increase of 4.42%[12]. - Total liabilities amounted to CNY 1,618.331 billion, growing by 4.44% year-on-year[12]. - Net assets stood at CNY 114.403 billion, reflecting a year-on-year growth of 4.05%[12]. - The total amount of issued bonds was RMB 267.92 billion, with a decrease of 3.17% compared to the previous year[66]. - The total deposits reached RMB 915.16 billion, reflecting an 8.45% growth year-over-year[67]. - The total amount of personal deposits reached RMB 201.00 billion, showing a year-over-year increase of 19.13%[67]. Risk Management - The report includes a detailed description of the main risks faced by the bank and the measures taken to address them[6]. - The bank plans to strengthen risk management and improve asset quality through coordinated strategies[12]. - The bank's focus on risk management includes a three-line defense system to enhance its risk control capabilities[142]. - The bank's liquidity risk management framework includes daily position management, maturity mismatch management, and liquidity asset portfolio management[151]. - The bank's credit policy for 2023 emphasizes support for retail inclusive finance, focusing on high-quality customer bases and risk management requirements[146]. Strategic Focus - The bank aims to enhance its operational stability and quality while focusing on serving national strategies and the real economy[8]. - The bank's strategic focus is on innovation and maintaining core business responsibilities[8]. - The bank's mission emphasizes serving national strategies, the real economy, and creating sustainable value for shareholders while fulfilling corporate responsibilities[31]. - The bank's future outlook includes a commitment to high-quality development and adherence to the new development philosophy[10]. - The bank's strategic focus includes enhancing traditional core businesses, developing intermediary services, and actively pursuing innovative business models[32]. Awards and Recognition - The bank received multiple awards, including the "2023 Annual Inclusive Finance Service Bank" and "2023 Annual Technology Empowered Financial Institution" awards[12]. - Bohai Bank was awarded the "2023 Annual Inclusive Finance Service Bank" by Securities Times[17]. - The bank received the "Outstanding Wealth Management Retail Bank Award" at the 2023 Retail Banking Awards[19]. - Bohai Bank's subsidiary, Bohai Bank Wealth Management Co., won the "Outstanding Bank Wealth Management Subsidiary Award" in 2023[19]. - The bank was recognized as the "Annual Pension Financial Service Institution" at the 2023 Asset Management Summit[20]. Compliance and Governance - The bank has enhanced its internal capital assessment procedures to align with the latest regulatory requirements and internal management needs[168]. - Compliance risk management involves the board, senior management, and various departments, focusing on proactive identification and control of compliance risks[172]. - The bank has implemented a "risk-based" approach to enhance anti-money laundering (AML) measures, with no significant AML risk events reported during the reporting period[173]. Digital Transformation - The bank is focusing on digital transformation and enhancing customer engagement through a unified identity recognition system in the WeChat ecosystem, improving operational capabilities[132]. - The bank's technology investment reached 1.4 billion yuan during the reporting period, focusing on digital transformation and innovation[136]. - The bank's mobile banking app was upgraded to version 6.2, resulting in a doubling of monthly active users on mobile platforms, enhancing customer experience and service capabilities[130]. Economic Context - In 2023, China's GDP grew by 5.2%, with retail sales increasing by 7.2% and fixed asset investment rising by 3.0%[28]. - Global economic growth is projected to decline from 2.6% in 2023 to 2.4% in 2024, with trade growth expected to be half of the average level seen in the previous decade[185]. - Domestic demand expansion is crucial for China's economic recovery, with macro policies expected to strengthen counter-cyclical adjustments[186].

Annual Report and Financial Overview - The bank's 2023 annual report was approved by the board on March 28, 2024, with all 15 directors present[7]. - The financial report for 2023 was audited by Deloitte, receiving a standard unqualified opinion[7]. - The financial data and indicators in the report are prepared according to International Financial Reporting Standards, with all amounts presented in Renminbi[8]. - The bank's 2023 annual report is available on the Hong Kong Stock Exchange and the bank's official website[1]. - The bank's board guarantees the accuracy and completeness of the information in the annual report, taking joint responsibility for any misstatements[7]. - The report outlines the bank's strategic plans and future outlook, emphasizing the importance of understanding the difference between plans, forecasts, and commitments[8]. - Total assets reached CNY 1,732.734 billion, an increase of 4.42% year-on-year[13]. - Total liabilities amounted to CNY 1,618.331 billion, growing by 4.44% compared to the previous year[13]. - Net assets stood at CNY 114.403 billion, reflecting a year-on-year increase of 4.05%[13]. - The net asset per share attributable to ordinary shareholders was CNY 5.32, up by CNY 0.25 from the previous year[13]. - The bank's H shares are listed on the Hong Kong Stock Exchange under stock code 9668[5]. Profit and Loss - Operating revenue for 2023 was RMB 24,997,370, a decrease of 5.55% compared to RMB 26,465,220 in 2022[25]. - Pre-tax profit decreased by 20.71% to RMB 5,163,077 from RMB 6,511,454 in the previous year[25]. - Net profit for 2023 was RMB 5,080,903, down 16.81% from RMB 6,107,475 in 2022[25]. - The net interest margin for 2023 was 1.19%, down 0.26 percentage points from 1.45% in 2022[28]. - Net interest income decreased by 22.16% to CNY 17.645 billion, while non-interest income increased by 93.63% to CNY 7.351 billion[44]. - The commission and fee income rose by 43.42% to RMB 5,077,664 thousand in 2023, up from RMB 3,540,479 thousand in the previous year[79]. Risk Management - The report includes a comprehensive risk management section detailing the main risks faced by the bank and the measures taken to address them[8]. - The management emphasizes the importance of risk management and maintaining asset quality amidst ongoing business transformation[14]. - The bank has implemented a comprehensive risk management framework, with a focus on proactive and agile risk control measures[143]. - The bank's unified credit management system has been upgraded, optimizing 48 management policies and processes to enhance credit risk control[147]. - The bank's liquidity risk management strategy aims to balance liquidity, safety, and profitability while ensuring sufficient high-quality liquid assets[153]. Awards and Recognition - The bank received multiple awards, including the "2023 Inclusive Finance Service Bank Award" and "2023 Cross-border Financial Leading Bank" among others[11]. - The bank was recognized as the "Annual Pension Financial Service Institution" at the 2023 Asset Management Summit Forum[23]. - The bank's wealth management products won the "Outstanding Net Value Wealth Management Product Award" at the 2023 Asset Management and Wealth Management Industry Development Conference[22]. Strategic Initiatives and Future Outlook - The bank aims to enhance financial service quality and support the real economy as part of its high-quality development strategy[12]. - The bank plans to deepen its strategic initiatives and focus on high-quality development in 2024, aligning with national economic goals[12]. - The bank's operational strategy includes revitalizing existing assets, fostering new growth, and improving service quality[11]. - The bank's strategic focus includes enhancing customer service with comprehensive solutions across various customer needs and lifecycle stages[35]. - The bank will implement ten special initiatives to promote high-quality development and enhance its service capabilities[191]. Customer and Market Performance - The total number of retail customers reached 7.71 million, an increase of 990,000 or 14.74%[116]. - Retail deposits reached CNY 201.002 billion, showing a significant increase of 19.13% compared to the previous year[41]. - The bank's market share for total deposits in mainland China was 2.16%, with a loan market share of 2.23%[76]. - The number of total customers increased by 13.61% to 105,432, while effective customers grew by 15.05% to 64,298[106]. Digital Transformation and Technology - The bank is focusing on digital transformation and data governance to support business development[192]. - The bank's technology investment reached 1.4 billion yuan during the reporting period, focusing on digital transformation and innovation[138]. - The bank's online digital operations saw a significant increase, with monthly active users on mobile banking doubling, enhancing customer experience and service capabilities[132]. - The bank's wealth management subsidiary launched on February 3, 2023, issuing a total of 504 wealth management products with a total sales amount of 771.92 billion yuan[130]. Compliance and Governance - The bank emphasizes compliance and risk control, monitoring key events and behaviors closely[192]. - The bank has strengthened its anti-money laundering (AML) management system, with no significant AML risk events reported during the reporting period[175]. - The bank's compliance risk management involves proactive identification and control of compliance risks associated with new products and major projects[174]. Economic Context - In 2023, the GDP of China grew by 5.2% year-on-year, with retail sales increasing by 7.2% and fixed asset investment rising by 3.0%[31]. - Domestic demand expansion is crucial for China's economic recovery, with macro policies expected to strengthen counter-cyclical adjustments[188]. - The bank anticipates a continued low-level fluctuation in net interest margins, with asset quality pressures remaining a concern[189].

Capital and Financial Overview - The registered capital of China Bohai Bank is RMB 17.762 billion[13]. - The bank's H shares are listed on the Hong Kong Stock Exchange under stock code 9668[5]. - The bank's interim report for 2023 was approved by the board on August 28, 2023[6]. - The bank will not distribute profits or convert capital reserves into share capital for the interim period of 2023[7]. - The financial report for the first half of 2023 is unaudited[8]. - The bank's financial data and indicators are prepared in accordance with International Financial Reporting Standards[8]. - Operating revenue for the first half of 2023 was RMB 13,082,522, a decrease of 3.03% compared to RMB 13,490,708 in the same period of 2022[15]. - Pre-tax profit decreased by 7.33% to RMB 4,658,582 from RMB 5,026,840 year-on-year[15]. - Net profit for the first half of 2023 was RMB 4,098,828, down 6.91% from RMB 4,402,916 in the first half of 2022[15]. - Basic and diluted earnings per share decreased by 8.00% to RMB 0.23 from RMB 0.25 year-on-year[15]. - Total assets increased by 1.87% to RMB 1,690,558,156 as of June 30, 2023, compared to RMB 1,659,459,902 at the end of 2022[15]. - Total loans and advances decreased slightly by 0.23% to RMB 955,012,746 from RMB 957,216,978[15]. - Total deposits increased by 6.98% to RMB 902,752,781 from RMB 843,873,695 year-on-year[15]. - The capital adequacy ratio improved to 11.55%, up 0.05 percentage points from 11.50%[19]. - The net equity of the group as of June 30, 2023, was RMB 114.22 billion, an increase of 3.88% from the previous year[91]. Risk Management - The report includes a detailed description of the main risks faced by the bank and the measures taken to address them[8]. - The bank is committed to a comprehensive risk management framework, enhancing the effectiveness and foresight of risk management practices[177]. - The bank's risk management structure includes a three-line defense system to address various risks effectively[180]. - The bank emphasizes dynamic management of key clients and regions to strengthen risk identification and control measures[184]. - The bank has implemented a ten-level asset quality classification management system to enhance risk control[183]. Income and Expenses - Net interest income for the first half of 2023 was RMB 9.33 billion, a decrease of 17.83% year-on-year[40]. - Non-interest income increased to RMB 3.75 billion, representing a growth of 75.52% compared to the same period last year[39]. - Total operating income decreased to RMB 13.08 billion, down 3.03% year-on-year[39]. - Total operating expenses for the period were RMB 5.360 billion, an increase of 11.39% year-on-year, mainly due to rising employee compensation and administrative expenses[67]. - The group recognized credit impairment losses of RMB 3.064 billion, a decrease of 16.11% compared to the previous year[70]. Loan and Deposit Performance - The non-performing loan ratio rose to 1.84%, an increase of 0.08 percentage points from 1.76%[19]. - The non-performing loan balance was CNY 17.553 billion, with a non-performing loan ratio of 1.84%, an increase of 0.08 percentage points from the previous year[35]. - The amount of normal loans was CNY 910,341,503, accounting for 95.32% of total loans as of June 30, 2023, compared to 95.35% at the end of 2022[106]. - The total amount of loans and advances was RMB 955.01 billion, a slight decrease of 0.23% from the end of the previous year[75]. - Total deposits absorbed by the group were RMB 902.75 billion, marking a 6.98% increase from RMB 843.87 billion at the end of 2022[88]. Customer and Market Development - The bank's management highlighted the ongoing economic recovery and the importance of supporting effective demand through financial services[23]. - The bank focused on enhancing customer service levels and expanding strategic customer marketing management systems[135]. - The bank's digital platform for corporate banking is under continuous development to improve customer acquisition and service efficiency[134]. - The bank's transaction banking services have introduced innovative features, enhancing cross-border payment experiences for clients[139]. - The total number of retail customers reached 7.3287 million, with a net increase of 607,300 customers, representing a growth of 9.03%[147]. Technology and Innovation - The bank's technology investment reached RMB 530 million during the reporting period, focusing on enhancing business quality and efficiency through innovation[172]. - The bank's automated marketing tools have enhanced customer acquisition and service efficiency, contributing to a 12.38% growth in personal customer service[147]. - The bank is leveraging big data and AI technologies to create a closed-loop ecosystem for financial services, focusing on customized and ubiquitous offerings[167]. - The bank's mobile banking platform has been upgraded to enhance customer service and product innovation, focusing on high-frequency usage scenarios[164]. Wealth Management and Retail Banking - Wealth management business achieved a breakthrough with the launch of the first standardized trust product, managing customer wealth assets totaling 349 billion CNY[148]. - Retail banking revenue reached 4.657 billion CNY, with retail deposits increasing by 35.828 billion CNY, a growth of 21.23% compared to the end of last year[146]. - The bank's wealth management products included 238 non-principal guaranteed products with a total sales amount of 341.677 billion CNY[154]. - Mortgage loan issuance amounted to 9.026 billion CNY during the reporting period, supporting housing loan demand[150]. Liquidity Management - The bank's liquidity risk management strategy focuses on maintaining compliance with liquidity regulatory indicators while minimizing additional liquidity costs[188]. - The liquidity coverage ratio was 125.07%, down by 1.57 percentage points compared to the previous quarter[191]. - The net stable funding ratio stood at 102.65%, a decline of 1.67 percentage points from the previous quarter[191]. - The liquidity coverage ratio's qualified high-quality liquid assets were approximately RMB 133.06 billion, down from RMB 164.16 billion in the previous quarter[195].

Financial Performance - Operating revenue for the first half of 2023 was RMB 13,082,522 thousand, a decrease of 3.03% compared to RMB 13,490,708 thousand in the same period of 2022[9]. - Pre-tax profit decreased by 7.33% to RMB 4,658,582 thousand from RMB 5,026,840 thousand year-on-year[9]. - Net profit for the first half of 2023 was RMB 4,098,828 thousand, down 6.91% from RMB 4,402,916 thousand in the previous year[9]. - Basic earnings per share attributable to ordinary shareholders decreased by 8.00% to RMB 0.23 from RMB 0.25[9]. - The total comprehensive income for the first half of 2023 was RMB 4.271 billion, a decrease of 3.02% year-on-year[26]. - The group achieved operating income of CNY 13.083 billion and net profit of CNY 4.099 billion during the reporting period, indicating steady improvement in overall operational quality[20]. Asset and Liability Management - Total assets as of June 30, 2023, were RMB 1,690,558,156 thousand, an increase of 1.87% from RMB 1,659,459,902 thousand at the end of 2022[10]. - Total liabilities amounted to CNY 15,763.36 billion, with an increase of CNY 268.27 billion or 1.73% from the previous year-end[21]. - The group's total equity reached RMB 114.22 billion, reflecting an increase of RMB 4.27 billion, or 3.88%, primarily due to an increase in undistributed profits during the reporting period[48]. - The capital adequacy ratio improved to 11.55%, up 0.05 percentage points from 11.50%[12]. - The core tier 1 capital ratio stood at 8.28%, up from 8.06% at the end of the previous year[51]. Risk Management - The report includes a detailed description of the main risks faced by the bank in its management operations and the measures taken to address these risks[5]. - The bank's risk management framework includes a three-line defense system to enhance risk control effectiveness[106]. - The bank's liquidity ratio was 59.07% as of June 30, 2023, a decrease of 10.09 percentage points from the previous quarter[114]. - The bank has implemented a comprehensive liquidity risk management strategy to ensure compliance with regulatory liquidity indicators while minimizing additional liquidity costs[112]. - The bank's liquidity risk management policies are designed to balance liquidity, safety, and profitability to support sustainable business growth[112]. Customer Deposits and Loans - Total deposits increased by 6.98% to RMB 902,752,781 thousand from RMB 843,873,695 thousand[10]. - Customer deposits reached CNY 9,244.38 billion, reflecting an increase of CNY 605.04 billion or 7% compared to the end of the previous year, indicating stable growth in deposit scale[21]. - The balance of loans and advances was CNY 9,417.61 billion, showing a slight decrease of CNY 9.62 billion or 0.10% compared to the end of the previous year[21]. - The non-performing loan ratio rose to 1.84%, an increase of 0.08 percentage points from 1.76%[12]. - The amount of non-performing loans increased to RMB 17,552,760 thousand, up from RMB 16,806,871 thousand in December 2022[59]. Shareholder Information - The total number of ordinary shares remained unchanged at 17,762,000,000, with domestic shares accounting for 65.09% and H shares for 34.91% as of June 30, 2023[142]. - The top ten shareholders hold a total of 11,000,000,000 shares, representing 61.93% of the total ordinary shares, with Tianjin TEDA Investment Holding Co., Ltd. holding 20.34%[143]. - Tianjin TEDA Investment Holding Co., Ltd. is the largest shareholder, holding 3,612,500,000 shares, while Standard Chartered Bank (Hong Kong) Limited holds 2,888,555,000 shares, representing 16.26%[143]. Corporate Governance - The board consists of 14 members, including 3 executive directors and 6 independent non-executive directors[153]. - The company has established a comprehensive internal control system, enhancing compliance management and risk prevention measures[172]. - Independent non-executive directors accounted for at least one-third of the board, ensuring objective and fair oversight of major transactions and governance matters[170]. - The company held one shareholders' meeting on May 18, 2023, with a total of 13,221,561,501 shares represented, approving 10 resolutions including the 2022 financial statements and 2023 budget report[168]. Future Outlook - The bank anticipates a moderate recovery in consumer spending and continued growth in infrastructure investment, supporting the achievement of the annual GDP growth target[138]. - The bank plans to enhance support for the real economy, focusing on key areas such as inclusive finance, green development, and technological innovation[139]. - The bank's strategy for the second half of 2023 emphasizes high-quality development and alignment with national economic policies[140].