Financial Performance - Net profit attributable to shareholders was RMB 13,724 million, a decrease of 6.94% compared to the same period last year[5]. - Operating income decreased by 14.95% year-on-year to RMB 36,634 million, with net interest income down 18.71%[5]. - Basic earnings per share decreased by 8.82% to RMB 0.31[5]. - The net profit attributable to shareholders for the reporting period was CNY 13.724 billion, a decrease of CNY 1.023 billion, or 6.94% year-on-year[13]. - Operating revenue for the period was CNY 36.634 billion, down CNY 6.438 billion, or 14.95% year-on-year, primarily due to a decrease in loan interest income by CNY 4.040 billion[13]. - The total comprehensive income for Q1 2022 was RMB 12,239 million, a decrease of 21.5% from RMB 15,509 million in Q1 2021[49]. - The bank's fee and commission income was RMB 6,540 million, down 20.0% from RMB 8,173 million year-over-year[48]. - The bank's investment income increased to RMB 3,199 million, compared to RMB 1,248 million in the same period last year[48]. Assets and Liabilities - Total assets reached RMB 7,157,698 million, an increase of 2.95% compared to the end of the previous year[3]. - The bank's total liabilities increased by 3.03% to RMB 6,558,951 million[3]. - The total amount of loans and advances was CNY 4,189.399 billion, up CNY 143.707 billion, or 3.55% year-on-year, accounting for 58.53% of total assets[14]. - Total liabilities increased to CNY 6,558.951 billion, up CNY 192.704 billion, or 3.03% from the end of the previous year[15]. - The bank's equity attributable to shareholders reached RMB 586,407 million, compared to RMB 574,280 million at the end of 2021, indicating a growth of about 2.0%[46]. Deposits and Loans - Total deposits rose by 4.39% to RMB 3,941,615 million, with personal deposits increasing by 9.73%[3]. - The bank's loans and advances to customers stood at RMB 4,112,635 million, compared to RMB 3,967,679 million at the end of 2021, marking an increase of about 3.6%[44]. - Retail loan balance was CNY 1,759.222 billion, a slight decrease of CNY 6.35 billion year-on-year, with mortgage loans increasing by CNY 25.46 billion[21]. - The bank's small and micro loans amounted to 3.615341 trillion yuan, an increase of 14.591 billion yuan from the end of the previous year[25]. Customer Base and Transactions - The number of retail customers reached 111.91 million, an increase of 1.77 million compared to the end of the previous year, with credit card customers totaling 45.57 million, up 1.54%[23]. - The bank added 1.0854 million new personal customers during the reporting period, a year-on-year growth of 3.35%, with effective new customers increasing by 13.53%[22]. - Electronic payment transaction volume reached 142.06 billion yuan, a year-on-year increase of 29.61%, with transaction counts at 306 million, up 13.62%[24]. - Retail online platform users reached 95.71 million, a year-on-year increase of 2.30%, while monthly active users grew by 8.00% to 23.84 million[35]. Risk and Asset Management - The non-performing loan ratio improved to 1.74%, down from 1.79% at the end of the previous year[3]. - The non-performing loan (NPL) total was CNY 73.03 billion, with an NPL ratio of 1.74%, down 0.05 percentage points from the previous year[37]. - The bank's risk management system added 17 new monitoring models, covering 32 mid-to-high frequency trading scenarios for precise risk identification[34]. Cash Flow and Investments - Cash flow from operating activities increased significantly by 132.37% to RMB 142,204 million[5]. - The total cash inflow from investment activities for Q1 2022 was RMB 311,451 million, an increase of 17.4% compared to RMB 265,347 million in Q1 2021[51]. - The net cash flow from investment activities was RMB (21,237) million, a decline from RMB (8,900) million in Q1 2021[51]. - The cash flow from the recovery of investments was RMB 291,427 million, up from RMB 245,831 million in Q1 2021[51]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 427,905[8]. - The top shareholder, Hong Kong Central Clearing Limited, holds 8,284,807,550 shares, accounting for 18.92% of total shares[8]. - The second-largest shareholder, Dajia Life Insurance Co., holds 4,508,984,567 shares, representing 10.30%[8]. - The total number of preferred shareholders at the end of the reporting period is 26[10]. - The largest preferred shareholder, Bosera Fund, holds 20,000,000 shares, accounting for 10.00% of preferred shares[10]. Regulatory and Compliance - The liquidity coverage ratio was 139.78%, exceeding regulatory requirements by 39.78 percentage points, and improved by 6.36 percentage points from the previous year[41]. - The core tier one capital adequacy ratio stood at 9.01%, a decrease of 0.03 percentage points compared to the end of the previous year[39].

Financial Performance - Net profit attributable to shareholders decreased to RMB 13,724 million, down 6.94% year-on-year[5] - Operating income fell to RMB 36,634 million, a decline of 14.95% compared to the same period last year[5] - Basic earnings per share decreased to RMB 0.31, down 8.82% year-on-year[5] - The bank's weighted average return on equity (annualized) decreased to 11.17%, down from 12.63% year-on-year[5] - The group's net profit attributable to shareholders was RMB 13,724 million, a decline of 6.9% compared to RMB 14,747 million in the same period last year[48] - The group's total profit before tax was RMB 15,530 million, down 8.0% from RMB 16,886 million in Q1 2021[48] - Net interest income for the group was RMB 27,547 million, down 18.6% from RMB 33,889 million year-over-year[47] Asset and Liability Management - Total assets increased to RMB 7,157,698 million, up 2.95% from the end of last year[4] - Total liabilities amounted to RMB 6,558.951 billion, an increase of RMB 192.704 billion, representing a growth of 3.03%[20] - Total deposits reached RMB 3,941.615 billion, an increase of RMB 165.854 billion, with a growth rate of 4.39%[20] - The total equity attributable to shareholders is RMB 586,407 million, compared to RMB 574,280 million at the end of the previous year[46] Loan and Credit Quality - Total loans and advances reached RMB 4,189,399 million, reflecting a growth of 3.55%[4] - Non-performing loan ratio improved to 1.74%, down from 1.79% at the end of last year[4] - The average yield on loans and advances decreased, leading to a reduction in interest income from loans by RMB 4.04 billion, a year-on-year decrease of 40.40%[19] - The non-performing loan amount was RMB 73.03 billion, an increase of RMB 0.69 billion from the end of the previous year, with a non-performing loan ratio of 1.74%, down 0.05 percentage points[35] Customer and Market Growth - Customer deposits totaled RMB 3,941,615 million, an increase of 4.39% from the previous year[4] - The number of ordinary shareholders at the end of the reporting period was 427,905, with the top 10 shareholders holding a total of 18.92% of the shares[11] - The number of retail customers grew by 1.77 million to 111.91 million, with credit card customers increasing by 1.54% to 45.57 million[25] - The bank's effective corporate clients increased to 2.2751 million, a growth of 7,024 clients or 2.62% year-over-year[22] Cash Flow and Liquidity - Cash flow from operating activities surged to RMB 142,204 million, a significant increase of 132.37% compared to the previous year[5] - The net cash flow from operating activities reached RMB 142,204 million in Q1 2022, a 132.37% increase from RMB 61,197 million in Q1 2021[12] - The liquidity coverage ratio as of the reporting period end is 139.78%, exceeding the regulatory requirement by 39.78 percentage points, and has increased by 6.36 percentage points compared to the end of the previous year[40] - The net cash outflow over the next 30 days is RMB 652,426 million, reduced from RMB 717,163 million at the end of the previous year[41] Digital Transformation and Innovation - The company is advancing its digital transformation, focusing on building an "ecological bank" and a "smart bank" to enhance digital financial service capabilities[31] - The ecological banking project has made significant breakthroughs, with 25 ecological financial scenarios planned and over 10 scenarios implemented, launching the first batch of ecological financial products[32] - The company has launched innovative data-based credit financing products, achieving automated credit approval and online issuance for customs guarantee letters[32] Shareholder and Governance - The bank's independent directors actively participate in board meetings and provide independent opinions to ensure compliance and protect shareholder rights[42] - The company has established a data compliance sharing mechanism and enhanced data quality through comprehensive data governance[34]

Financial Performance - The group achieved operating revenue of RMB 165.6 billion and net profit attributable to shareholders of RMB 34.4 billion for the year 2021[8]. - Operating income for 2021 was RMB 165,554 million, a decrease of 8.94% compared to RMB 181,807 million in 2020[46]. - Net profit attributable to shareholders reached CNY 34.381 billion, a year-on-year increase of 0.21%[19]. - The net profit attributable to shareholders was RMB 34,381 million in 2021, a slight increase of 0.21% from RMB 34,309 million in 2020[47]. - The cost-to-income ratio increased to 29.74% in 2021 from 26.64% in 2020[47]. - The average return on total assets was 0.50%, and the weighted average return on equity decreased to 6.59% in 2021 from 6.81% in 2020[47]. - The net cash flow from operating activities was RMB 155,417 million in 2021, a significant recovery from a negative RMB 82,402 million in 2020[47]. - The total operating income for the group is RMB 165,554 million for the year ended December 31, 2021, compared to RMB 181,807 million for the previous year[139]. Asset and Liability Management - Total assets and equity attributable to shareholders at year-end were RMB 6.95 trillion and RMB 574.3 billion, respectively[8]. - Total assets amounted to CNY 6.95 trillion, growing by 0.04% compared to the end of the previous year[19]. - The total liabilities decreased slightly by 0.67% to RMB 6,366,247 million compared to RMB 6,408,985 million in 2020[48]. - The total deposits increased by 1.28% to RMB 3,775,761 million, with personal deposits rising by 8.79% to RMB 825,423 million[48]. - The total amount of loans and advances reached RMB 4,045,692 million, reflecting a growth of 4.98% from RMB 3,853,931 million in the previous year[48]. - The total amount of interbank and other financial institution loans and repurchase financial assets was RMB 252.68 billion, a decrease of RMB 42.78 billion or 14.48% from the previous year, representing 3.63% of total assets[96]. - The total amount of collateral assets was RMB 5,471 million, down from RMB 6,180 million the previous year[122]. Risk Management - The non-performing loan generation rate for 2021 was 2.26%, a decrease of 1.37 percentage points year-on-year, while the year-end non-performing loan ratio was 1.79%, down 0.03 percentage points from the previous year[12]. - The bank's focus on risk management has led to a stable improvement in asset quality, with ongoing efforts to manage risks in the real estate sector[16]. - The provision coverage ratio for loan losses increased to 145.30%, up 5.92 percentage points from the previous year, indicating enhanced risk mitigation capabilities[154]. - The bank's management has indicated that there are no foreseeable major risks, maintaining a positive outlook for future operations[2]. - The bank aims to enhance risk management and asset quality, with a focus on improving compliance and internal control systems[23]. Strategic Initiatives - The bank has developed a five-year development plan (2021-2025) focusing on becoming the best bank for private enterprises and enhancing service quality[9]. - The bank aims to build an ecological bank and accelerate the construction of a smart bank while optimizing basic products and services[9]. - The bank initiated a comprehensive digital transformation strategy, establishing a dedicated department for ecological finance and launching multiple major projects[13]. - The bank aims to enhance its service capabilities and competitiveness through reforms in customer marketing systems and risk management processes[15]. - The bank is committed to social responsibility practices, including green finance initiatives and community support programs[14]. Customer Growth and Engagement - The number of deposit customers with balances and new deposit customers both achieved a year-on-year increase, with the effective customer growth for corporate and retail segments being three times that of 2020[11]. - The number of VIP clients grew by 10.4%, while private banking clients increased by 14.23%[21]. - The bank's retail business pre-tax profit grew by 28.79% year-on-year, totaling 28.082 billion CNY, while retail operating income decreased by 1.04% to 70.391 billion CNY[176]. - The number of retail customers increased by 5.41% year-on-year, reaching 5.110 million, with a new customer acquisition rate of 9.30%[178]. - The total number of strategic customers reached 332, with average daily deposits of CNY 656.953 billion, an increase of CNY 95.391 billion, or 16.99%[170]. Digital Transformation - Digital transformation efforts led to a 30.17% increase in monthly active users for corporate online platforms[22]. - The bank is enhancing its digital transformation through big data and AI applications, aiming to build an end-to-end digital risk control system[31]. - The bank aims for a comprehensive digital transformation to create an agile and efficient digital banking experience, focusing on four key ecosystems: corporate supply chain, personal life journey, institutional platforms, and interbank fund transactions[39]. - The account opening time for corporate clients has been significantly reduced to 2-3 days, while personal account opening time has decreased from an average of 25 minutes to under 15 minutes[39]. Financial Products and Services - The bank has developed a comprehensive green finance product system, including innovative business models like "photovoltaic loans" and "emission reduction loans" to support clients' low-carbon development[28]. - The bank is committed to providing a "one-stop" comprehensive financial solution, enhancing its product offerings in account management, payment settlement, and wealth management[29]. - The bank's marketing strategy emphasizes a unified approach for strategic clients, enhancing cross-regional and cross-product collaboration[38]. - The bank introduced innovative financial products targeting supply chain finance and rural revitalization, expanding its service offerings[37]. Social Responsibility and Community Engagement - The bank is committed to supporting the real economy and green finance initiatives, aligning with national strategies for low-carbon transformation and rural revitalization[162]. - The bank's commitment to social responsibility and customer service is reflected in its brand culture, aiming to build trust and respect among clients[40]. - The bank's focus on inclusive finance and rural revitalization, increasing online product innovation to better serve small and micro enterprises[32].

Financial Performance - In 2021, China Minsheng Bank achieved operating income of RMB 168.8 billion and net profit attributable to shareholders of RMB 34.4 billion[8]. - Operating income for 2021 was RMB 168,804 million, a decrease of 8.73% compared to RMB 184,951 million in 2020[49]. - Net interest income decreased by 6.99% to RMB 125,775 million in 2021 from RMB 135,224 million in 2020[49]. - Non-interest income fell by 13.47% to RMB 43,029 million in 2021 compared to RMB 49,727 million in 2020[49]. - The net profit attributable to shareholders was RMB 34,381 million, a slight increase of 0.21% from RMB 34,309 million in 2020[49]. - The total assets of the group reached CNY 6.95 trillion, growing by 0.04% compared to the previous year[17]. - The total amount of loans and advances increased by 4.98% to RMB 4,045,692 million in 2021 from RMB 3,853,931 million in 2020[50]. - The non-performing loan ratio improved to 1.79% in 2021 from 1.82% in 2020[50]. - The capital adequacy ratio increased to 13.64% in 2021 from 13.04% in 2020[50]. - The net cash flow from operating activities was RMB 155,417 million, a significant recovery from a negative RMB 82,402 million in 2020[49]. Asset Quality and Risk Management - The non-performing loan ratio was 1.79%, a decrease of 0.03 percentage points from the end of the previous year[17]. - The bank's asset quality showed a steady improvement, supported by reforms in credit approval and risk management systems[21]. - The bank is focused on improving its risk management framework to ensure compliance and enhance asset quality control[21]. - The provision coverage ratio improved to 145.30%, an increase of 5.92 percentage points from the end of the previous year, while the loan provision ratio rose to 2.60%, up by 0.07 percentage points[28]. - The bank's credit impairment losses were RMB 77.398 billion, a reduction of 16.77% from RMB 92.988 billion in the previous year[66]. - The non-performing loan generation rate was 22.26%, a decrease of 1.37 percentage points year-on-year, with both corporate and retail business non-performing loan generation rates declining[163]. Loan and Deposit Growth - The balance of inclusive small and micro enterprise loans exceeded RMB 500 billion, representing a nearly 13% increase compared to the end of the previous year[9]. - The balance of medium and long-term loans to the manufacturing sector grew by nearly 14%[9]. - The balance of loans to the agricultural sector reached CNY 316.416 billion, an increase of 3.44%[18]. - The balance of loans to the manufacturing sector was CNY 346.685 billion, growing by 15.41%[18]. - The number of new corporate effective accounts increased by 21,000, which is 2.8 times that of the previous year[19]. - The number of new retail effective accounts increased by 410,000, which is 3.1 times that of the previous year[19]. - The bank's deposit total was CNY 3,775.761 billion, an increase of CNY 47.587 billion, or 1.28% year-on-year[60]. - The balance of green credit reached CNY 107.317 billion, a significant increase of 103.76% compared to the previous year[18]. Strategic Focus and Development Plans - China Minsheng Bank is focusing on becoming the best bank for private enterprises, emphasizing service to the real economy, financial risk prevention, and deepening financial reform[8]. - The bank's five-year development plan (2021-2025) aims to enhance its core competitiveness and service capabilities[8]. - The bank aims to enhance its service capabilities and competitiveness through comprehensive reforms, focusing on supporting the real economy[22]. - The strategic period from 2021 to 2025 is divided into two phases: foundational consolidation (2021-2022) and sustainable growth (2023-2025)[24]. - The bank plans to strengthen its focus on key areas such as rural revitalization, manufacturing, and green finance in its credit allocation[22]. - The bank is committed to building a comprehensive financial service platform, integrating various financial products to meet diverse customer needs[28]. Digital Transformation and Customer Experience - The bank increased its technology investment to nearly 3% of total operating income, enhancing digital transformation and service quality[20]. - Monthly active users on corporate and retail online platforms grew by 30.17% and 21.84% year-over-year, respectively[20]. - The bank is focusing on digital transformation and enhancing customer experience through the establishment of a customer experience management system and the application of big data and AI technologies[31]. - The bank aims to strengthen its comprehensive service capabilities by optimizing basic products and services, enhancing customer service efficiency, and innovating online products[32]. - The bank's retail customer Net Promoter Score (NPS) has improved by 5.22 percentage points compared to 2020, indicating enhanced customer satisfaction[39]. Financial Products and Services - The bank launched the "E-series" supply chain financial products and various rural revitalization scenario services, enhancing service efficiency and customer satisfaction[37]. - The bank is committed to building a specialized product service platform for institutional clients, enhancing asset management and investment trading capabilities[33]. - The bank's strategy emphasizes sustainable and green development, transitioning from a focus on scale and speed to a more stable and sustainable growth model[35]. - The bank launched new products such as "Photovoltaic Loan" and "Emission Reduction Loan" to support low-carbon transformation[173]. Talent and Organizational Development - The bank emphasizes a talent-driven culture, focusing on young, professional, and performance-oriented personnel to enhance organizational effectiveness[40]. - The bank has established a dual-channel talent development system to promote professional value in key business processes[40]. - The bank's strategic focus includes enhancing its brand culture centered on customer service and social responsibility[40].

[Company Strategic Positioning and Initiatives](index=5&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%88%B0%E7%95%A5%E5%AE%9A%E4%BD%8D%E8%88%87%E8%88%89%E6%8E%AA) The company defines its mission as "serving the public, caring for people's livelihood" and aims to become a first-class commercial bank within five years, focusing on being a bank for private enterprises, agile and open, and customer-centric [Mission, Vision, and Strategic Positioning](index=5&type=section&id=%E4%B8%80%E3%80%81%E4%BD%BF%E5%91%BD%E9%A1%98%E6%99%AF%E8%88%87%E6%88%B0%E7%95%A5%E5%AE%9A%E4%BD%8D) The company's mission is "serving the public, caring for people's livelihood," with a vision to be a "long-lasting bank, a century-old Minsheng," aiming to become a first-class commercial bank in five years by focusing on private enterprises, agility, and customer-centric services - The company has established three strategic positions: "**Bank for Private Enterprises, Agile and Open Bank, and Customer-Centric Bank**," aiming to leverage its unique advantages in serving private enterprises, enhance service efficiency and experience through digital transformation, and build an integrated customer-centric collaborative system[11](index=11&type=chunk) - The company has set a five-year development goal to become a distinctive, continuously innovative, value-growing, and prudently managed first-class commercial bank[10](index=10&type=chunk) [Strategic Initiatives](index=6&type=section&id=%E4%BA%8C%E3%80%81%E6%88%B0%E7%95%A5%E8%88%89%E6%8E%AA) To achieve its strategic positioning, the company has formulated eight strategic initiatives, centered on a "**four-wheel drive**" business layout and "**four major guarantees**" support system, focusing on retail, SME, corporate, and financial market businesses, supported by digitalization, regional development, risk management, and institutional mechanisms - At the business level, the company proposes four core strategies: strengthening retail finance, deepening small and micro enterprise finance, enhancing corporate finance, and reinforcing financial market business, forming a "**four-wheel drive**" development model[12](index=12&type=chunk) - At the support level, the company emphasizes accelerating digital transformation, focusing on four key regions including the Guangdong-Hong Kong-Macao Greater Bay Area and the Yangtze River Delta, improving its comprehensive risk management system, and ensuring strategic implementation through institutional safeguards such as optimizing governance structure and establishing efficient coordination mechanisms[12](index=12&type=chunk)[13](index=13&type=chunk) [Company Profile](index=7&type=section&id=%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E6%B3%81%E7%B0%A1%E4%BB%8B) China Minsheng Bank, established in **1996**, is China's first national joint-stock commercial bank primarily initiated by private enterprises, listed on SSE (A-share: **600016**) and HKEX (H-share: **01988**) [Company Profile](index=7&type=section&id=%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E6%B3%81%E7%B0%A1%E4%BB%8B) China Minsheng Bank, established in **1996**, is China's first national joint-stock commercial bank primarily initiated by private enterprises, listed on SSE (A-share: **600016**) and HKEX (H-share: **01988**) | Item | Information | | :--- | :--- | | Company Name | CHINA MINSHENG BANKING CORP., LTD. | | Legal Representative | Gao Yingxin | | Establishment Date | 1996年2月7日 | | A-share Listing Information | 上交所，股票簡稱：民生銀行，股票代碼：600016 | | H-share Listing Information | 香港聯交所，股票簡稱：民生銀行，股份代號：01988 | - The company is China's first national joint-stock commercial bank primarily initiated by private enterprises, with a business scope covering various core commercial banking operations[18](index=18&type=chunk)[19](index=19&type=chunk) [Financial Highlights](index=9&type=section&id=%E6%9C%83%E8%A8%88%E6%95%B8%E6%93%9A%E5%92%8C%E8%B2%A1%E5%8B%99%E6%8C%87%E6%A8%99%E6%91%98%E8%A6%81) In H1 **2021**, the Group's operating performance faced pressure, with both operating income and net profit declining year-on-year, while total assets grew steadily, but asset quality indicators showed some deterioration [Key Financial Indicators](index=9&type=section&id=%E4%B8%80%E3%80%81%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%95%B8%E6%93%9A%E5%92%8C%E8%B2%A1%E5%8B%99%E6%8C%87%E6%A8%99) In H1 **2021**, the Group's operating performance faced pressure, with both operating income and net profit declining year-on-year, while total assets grew steadily, but asset quality indicators showed some deterioration | Operating Performance (RMB million) | H1 2021 | H1 2020 | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Operating Income | 86,350 | 96,759 | -**10.76%** | | Net Interest Income | 65,753 | 69,020 | -**4.73%** | | Net Profit Attributable to Shareholders | 26,556 | 28,453 | -**6.67%** | | Basic EPS (RMB) | **0.56** RMB | **0.61** RMB | -**8.20%** | | Scale Indicators (RMB million) | June 30, 2021 | Dec 31, 2020 | Change from Prior Year-End (%) | | :--- | :--- | :--- | :--- | | Total Assets | 7,069,708 | 6,950,233 | **1.72%** | | Total Loans and Advances | 4,031,900 | 3,853,931 | **4.62%** | | Total Deposits | 3,852,340 | 3,728,174 | **3.33%** | | Total Equity Attributable to Shareholders | 575,436 | 529,537 | **8.67%** | | Asset Quality and Capital Adequacy (%) | June 30, 2021 | Dec 31, 2020 | Change (percentage points) | | :--- | :--- | :--- | :--- | | Non-Performing Loan Ratio | **1.80%** | **1.82%** | -**0.02** | | Provision Coverage Ratio | **142.87%** | **139.38%** | **3.49** | | Core Tier 1 Capital Adequacy Ratio | **8.52%** | **8.51%** | **0.01** | | Capital Adequacy Ratio | **13.43%** | **13.04%** | **0.39** | [Management Discussion and Analysis](index=12&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This section reviews the macroeconomic environment, outlines the company's strategic goals and initiatives, provides an overview of overall operations, and analyzes key items from the income statement, balance sheet, loan quality, and capital adequacy [Macroeconomic Environment Review](index=12&type=section&id=%E4%B8%80%E3%80%81%E7%B6%93%E6%BF%9F%E9%87%91%E8%9E%8D%E8%88%87%E6%94%BF%E7%AD%96%E7%92%B0%E5%A2%83%E5%9B%9E%E9%A1%A7) In H1 **2021**, the global economy stabilized with a "two-track" recovery, while China's economy maintained steady recovery, with macro policies remaining consistent and the banking sector seeing improved asset quality despite narrowing net interest margins - China's economy showed a "**stable with solidifying and improving trends**" posture, with Q2 GDP two-year average growth rebounding from **5.0%** in Q1 to **5.5%**[27](index=27&type=chunk) - The macro policy tone was "**no sharp turns**," with prudent monetary policy guiding overall financing costs to be stable with a slight decrease through LPR reform and optimized deposit rate regulation[27](index=27&type=chunk) - In the first half, the banking sector's net interest margin narrowed, but benefiting from economic recovery and improved asset quality, commercial banks collectively achieved a net profit of **RMB 1.1 trillion**, a year-on-year increase of **11.1%**[28](index=28&type=chunk) [Goals and Strategies](index=13&type=section&id=%E4%BA%8C%E3%80%81%E7%9B%AE%E6%A8%99%E5%8F%8A%E7%AD%96%E7%95%A5) The company steadfastly advanced its strategic transformation, focusing on supporting the real economy, deepening its private enterprise strategy, promoting digital financial transformation, building a customer-centric service system, focusing on key regional development, and enhancing risk and refined management capabilities - The company firmly adheres to its mission of "serving the public, caring for people's livelihood," strengthening financial support for the real economy, including small and micro enterprises, manufacturing, and inclusive finance[29](index=29&type=chunk) - Promoting digital financial transformation aims to achieve a "**fully distributed**" architecture through enhanced technology and data capabilities, providing more efficient and convenient services to customers[29](index=29&type=chunk) - Implementing a key regional strategy, focusing on the four major regions of Guangdong-Hong Kong-Macao Greater Bay Area, Yangtze River Delta, Beijing-Tianjin-Hebei, and Chengdu-Chongqing, and formulating differentiated operating strategies to enhance market competitiveness[30](index=30&type=chunk) [Overall Operating Performance](index=14&type=section&id=%E4%B8%89%E3%80%81%E7%B8%BD%E9%AB%94%E7%B6%93%E7%87%9F%E6%A6%82%E6%B3%81) In H1 **2021**, net profit attributable to shareholders decreased by **6.67%** to **RMB 26.56 billion**, and operating income decreased by **10.76%** to **RMB 86.35 billion**, primarily due to fee concessions, real estate credit controls, and reduced non-standard investments | Indicator | H1 2021 | Y-o-Y Change | | :--- | :--- | :--- | | Net Profit Attributable to Shareholders | **RMB 26.56 billion** | -**6.67%** | | Operating Income | **RMB 86.35 billion** | -**10.76%** | | Annualized Return on Average Total Assets | **0.76%** | -**0.07** percentage points | | Annualized Weighted Average Return on Net Assets | **10.43%** | -**1.05** percentage points | | Indicator | June 30, 2021 | Change from Prior Year-End | | :--- | :--- | :--- | | Total Assets | **RMB 7.07 trillion** | +**1.72%** | | Total Loans and Advances | **RMB 4.03 trillion** | +**4.62%** | | Total Deposits | **RMB 3.85 trillion** | +**3.33%** | | Non-Performing Loan Ratio | **1.80%** | -**0.02** percentage points | | Provision Coverage Ratio | **142.87%** | +**3.49** percentage points | [Income Statement Analysis](index=15&type=section&id=%E5%9B%9B%E3%80%81%E5%88%A9%E6%BD%A4%E8%A1%A8%E4%B8%BB%E8%A6%81%E9%A0%85%E7%9B%AE%E5%88%86%E6%9E%90) The Group's operating income decreased by **10.76%** and net profit attributable to shareholders by **6.67%** year-on-year, mainly due to a narrower net interest margin and a significant drop in non-interest net income, partially offset by reduced credit impairment losses [Net Interest Income and Net Interest Margin](index=16&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%E5%88%A9%E6%81%AF%E6%B7%A8%E6%94%B6%E5%85%A5%E5%8F%8A%E6%B7%A8%E6%81%AF%E5%B7%AE) Net interest income decreased by **4.73%** to **RMB 65.75 billion**, and net interest margin narrowed by **0.20** percentage points to **2.02%**, primarily due to lower asset yields from policy implementation and asset allocation shifts | Indicator | H1 2021 | H1 2020 | Change | | :--- | :--- | :--- | :--- | | Net Interest Income (RMB billion) | **65.753** billion RMB | **69.020** billion RMB | -**4.73%** | | Net Interest Margin (annualized) | **2.02%** | **2.22%** | -**0.20** percentage points | | Net Interest Spread (annualized) | **1.93%** | **2.24%** | -**0.31** percentage points | - The decline in net interest margin was primarily attributed to lower asset yields, including reduced yields on new loans, a decrease in the proportion of high-yield real estate development loans, and a shift in the investment portfolio towards low-yield, high-liquidity standardized bonds[52](index=52&type=chunk) - From the perspective of influencing factors, asset expansion contributed **RMB 7.41 billion** positively to net interest income, but interest rate changes (net interest margin narrowing) resulted in a negative impact of **RMB 10.68 billion**[41](index=41&type=chunk) [Non-Interest Net Income](index=20&type=section&id=%EF%BC%88%E5%9B%9B%EF%BC%89%E9%9D%9E%E5%88%A9%E6%81%AF%E6%B7%A8%E6%94%B6%E5%85%A5) Non-interest net income significantly decreased by **25.75%** to **RMB 20.60 billion**, driven by a **12.90%** drop in net fee and commission income due to business adjustments, and a **39.95%** decrease in other non-interest net income from reduced non-standard investments and less favorable bond market conditions | Item (RMB million) | H1 2021 | H1 2020 | Change (%) | | :--- | :--- | :--- | :--- | | Net Fee and Commission Income | 12,684 | 14,562 | -**12.90%** | | Other Non-Interest Net Income | 7,913 | 13,177 | -**39.95%** | | **Total Non-Interest Net Income** | **20,597** | **27,739** | -**25.75%** | - The significant decline in other non-interest net income was primarily due to: **1**) a **RMB 4.58 billion** reduction in related income from decreased non-standard investment scale; and **2**) a lack of bond market trading opportunities, leading to a **RMB 2.83 billion** year-on-year decrease in trading gains[56](index=56&type=chunk) [Balance Sheet Analysis](index=22&type=section&id=%E4%BA%94%E3%80%81%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E8%A1%A8%E4%B8%BB%E8%A6%81%E9%A0%85%E7%9B%AE%E5%88%86%E6%9E%90) Total assets reached **RMB 7.07 trillion**, up **1.72%** from year-end, with loan proportion increasing to **57.03%**; total liabilities grew **1.15%** to **RMB 6.48 trillion**, with deposits up **3.33%** and optimized structure; total shareholders' equity increased **8.51%** due to retained earnings and perpetual bond issuance | Item (RMB million) | June 30, 2021 | Dec 31, 2020 | Change from Prior Year-End (%) | | :--- | :--- | :--- | :--- | | **Total Assets** | **7,069,708** | **6,950,233** | **1.72%** | | Net Loans and Advances | 3,956,091 | 3,782,297 | **4.59%** | | Net Financial Investments | 2,029,466 | 2,120,650 | -**4.30%** | | **Total Liabilities** | **6,482,413** | **6,408,985** | **1.15%** | | Deposits | 3,892,249 | 3,768,151 | **3.29%** | | Bonds Issued | 701,144 | 957,880 | -**26.80%** | | **Total Shareholders' Equity** | **587,295** | **541,248** | **8.51%** | [Loan Quality Analysis](index=27&type=section&id=%E5%85%AD%E3%80%81%E8%B2%B8%E6%AC%BE%E5%93%81%E8%B3%AA%E5%88%86%E6%9E%90) Asset quality remained stable, with NPL ratio slightly down to **1.80%** and special mention loans decreasing to **2.86%**; corporate loan NPL ratio rose to **1.92%**, while personal loan NPL ratio significantly dropped to **1.63%**, with NPLs concentrated in mining, manufacturing, and wholesale/retail | Loan Classification | June 30, 2021 (RMB billion) | Proportion (%) | Dec 31, 2020 (RMB billion) | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Normal Loans | **3.844099** trillion RMB | **95.34%** | **3.669206** trillion RMB | **95.20%** | | Special Mention Loans | **115.410** billion RMB | **2.86%** | **114.676** billion RMB | **2.98%** | | **Non-Performing Loans** | **72.391** billion RMB | **1.80%** | **70.049** billion RMB | **1.82%** | - Personal loan quality improved significantly, with the NPL ratio decreasing from **1.96%** to **1.63%**, and both small and micro enterprise loans and credit card NPL ratios showing a notable decline; meanwhile, the corporate loan NPL ratio increased from **1.72%** to **1.92%**[82](index=82&type=chunk)[83](index=83&type=chunk) - Corporate non-performing loans were primarily concentrated in mining (**NPL ratio 12.42%**), manufacturing (**3.15%**), and wholesale and retail (**3.27%**), with these three industries collectively accounting for **66.34%** of corporate non-performing loans[84](index=84&type=chunk)[85](index=85&type=chunk) [Capital Adequacy Ratio Analysis](index=32&type=section&id=%E4%B8%83%E3%80%81%E8%B3%87%E6%9C%AC%E5%85%85%E8%B6%B3%E7%8E%87%E5%88%86%E6%9E%90) All capital adequacy ratios met regulatory requirements and improved from year-end, with Core Tier **1** Capital Adequacy Ratio at **8.52%**, Tier **1** Capital Adequacy Ratio at **10.31%**, and Capital Adequacy Ratio at **13.43%**, while leverage ratio also increased to **7.50%** | Capital Adequacy Ratio Indicators (%) | June 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Core Tier 1 Capital Adequacy Ratio | **8.52%** | **8.51%** | | Tier 1 Capital Adequacy Ratio | **10.31%** | **9.81%** | | Capital Adequacy Ratio | **13.43%** | **13.04%** | | Leverage Ratio | **7.50%** | **6.93%** | [Key Business Review](index=36&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E4%B8%BB%E8%A6%81%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The company steadily advanced its businesses, optimizing deposit structure and reducing costs, while loans grew, shifting towards retail, SME, and manufacturing. Corporate banking deepened customer operations, retail banking grew clients and assets through digitalization, and other businesses also progressed [Deposit and Loan Business](index=36&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E5%AD%98%E8%B2%B8%E6%A5%AD%E5%8B%99) Deposit structure optimized with a **73.91%** reduction in structured deposits, lowering deposit costs by **0.21** percentage points; loan growth was **4.60%**, with credit resources tilting towards inclusive small and micro enterprises and manufacturing, and retail loans increasing to **41.78%** - Deposit structure optimization yielded significant results, with structured deposit balances substantially decreasing by **RMB 125.76 billion** (**-73.91%**) from the end of the previous year, leading to a year-on-year decrease of **0.21** percentage points in the deposit cost rate to **2.15%**[113](index=113&type=chunk) - Credit structure continued to optimize, with inclusive small and micro enterprise loan balances growing by **8.38%** and manufacturing loans by **6.42%** from the end of the previous year, both higher than the bank's average loan growth of **4.60%**[114](index=114&type=chunk) [Corporate Banking Business](index=37&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E5%85%AC%E5%8F%B8%E9%8A%80%E8%A1%8C%E6%A5%AD%E5%8B%99) Corporate banking deepened customer segmentation, achieving growth across strategic, institutional, and SME client segments. Corporate deposit structure optimized with higher average daily balance of demand deposits and lower cost. Investment banking maintained market position, with bond underwriting reaching **RMB 165.45 billion** - Corporate deposits reached **RMB 3.01 trillion**, an increase of **2.25%** from the end of the previous year, with the average daily proportion of demand deposits increasing by **2.28** percentage points year-on-year, and the average cost rate of corporate deposits decreasing by **0.21** percentage points year-on-year[118](index=118&type=chunk) - In investment banking, the underwriting and issuance scale of various bonds reached **RMB 165.45 billion**, ranking tenth among lead underwriters of interbank non-financial enterprise debt financing instruments[119](index=119&type=chunk) [Retail Banking Business](index=40&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%E9%9B%B6%E5%94%AE%E9%8A%80%E8%A1%8C%E6%A5%AD%E5%8B%99) Retail banking, as a long-term strategy, is driven by "**digitalization + ecosystem**." During the reporting period, retail business operating income proportion increased to **44.01%**, and pre-tax profit grew by **31.52%** year-on-year. Total retail customer assets exceeded **RMB 2 trillion**, reaching **RMB 2.02 trillion** | Retail Business Indicators | June 30, 2021 | Change from Prior Year-End | | :--- | :--- | :--- | | Managed Retail Customer Assets | **RMB 2.02 trillion** | +**5.76%** | | Retail Loans and Credit Card Overdrafts | **RMB 1.67 trillion** | +**RMB 82.792 billion** | | Retail NPL Ratio | **1.63%** | -**0.33** percentage points | | Small and Micro Loan NPL Ratio | **2.21%** | -**0.59** percentage points | | Credit Card NPL Ratio | **2.84%** | -**0.44** percentage points | - Digital marketing and risk control capabilities improved, achieving precise marketing through over **900** user tags, with online non-mortgage consumer loan scale growing by **33.42%** while the NPL ratio decreased from **0.52%** to **0.45%**[124](index=124&type=chunk)[125](index=125&type=chunk) [Treasury Business](index=47&type=section&id=%EF%BC%88%E5%9B%9B%EF%BC%89%E8%B3%87%E9%87%91%E6%A5%AD%E5%8B%99) Treasury business continued to optimize its structure. Net investment decreased by **4.26%** from the end of the previous year. Wealth management transformation progressed, with net-value product scale reaching **RMB 671.05 billion**, increasing its proportion to **78.70%**, and legacy assets orderly reduced - Wealth management business transformation yielded significant results, with the scale of net-value products compliant with new asset management regulations reaching **RMB 671.05 billion**, an increase of **26.95%** from the end of the previous year, and its proportion of total wealth management product scale increasing from **61.38%** to **78.70%**[143](index=143&type=chunk) - Precious metals business trading volume totaled **RMB 352.26 billion**, ranking among the top ten traders in inquiry trading on the Shanghai Gold Exchange[145](index=145&type=chunk) [Risk Management](index=55&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86) The company adhered to a prudent risk management philosophy, comprehensively strengthening control over various risks including credit risk, market risk, operational risk, and liquidity risk, while continuously reshaping compliance culture and enhancing anti-money laundering effectiveness - Credit risk management: strengthened credit policy guidance, supported private and small and micro enterprises, strictly controlled risks in key areas such as real estate and government platforms, and explored digital approval using big data and AI technologies[169](index=169&type=chunk) - Market risk management: improved the management system based on the principle of full coverage, adopted differentiated measurement methods for banking book and trading book, and monitored through a limit system, stress tests, and other means[170](index=170&type=chunk) - Liquidity risk management: closely monitored market conditions, ensured the bank's liquidity safety and stability by strengthening the customer base, optimizing liability structure, and increasing reserves of high-quality liquid assets, with all regulatory indicators maintained within a reasonable range[172](index=172&type=chunk) [Outlook](index=58&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%89%8D%E6%99%AF%E5%B1%95%E6%9C%9B) For H2, external environmental uncertainties persist, and the foundation for domestic economic recovery remains unstable. Macro policies will maintain continuity, focusing on supporting the real economy. Banking assets are expected to grow steadily, with credit targeting inclusive, green, and tech innovation sectors, but net interest margins will still face pressure - It is expected that macro policies will remain stable in the second half, with monetary policy focusing on cross-cyclical design and paying more attention to supporting small and micro enterprises, manufacturing, and other key areas[179](index=179&type=chunk) - The main risks faced by the company include: external environmental uncertainties, credit risk in areas such as real estate and local government debt, financial market volatility risk, and operational and information technology risks arising from the development of online businesses[180](index=180&type=chunk) [Share Changes and Shareholder Information](index=60&type=section&id=%E8%82%A1%E4%BB%BD%E8%AE%8A%E5%8B%95%E5%8F%8A%E8%82%A1%E6%9D%B1%E6%83%85%E6%B3%81) This section details changes in share capital and the company's shareholder structure, including major shareholders and any share pledge situations [Shareholder Information](index=61&type=section&id=%E4%BA%8C%E3%80%81%E8%82%A1%E6%9D%B1%E6%83%85%E6%B3%81) As of the reporting period, the company had **431,313** common shareholders, with a dispersed equity structure and no controlling shareholder or actual controller. Top shareholders include Dajia Life Insurance, China Oceanwide, Tongfang Guoxin, and New Hope Liuhe - As of the end of the reporting period, the company had no controlling shareholder or actual controller. The largest single shareholder was Dajia Life Insurance Co., Ltd. - Universal Product, with a shareholding ratio of **10.30%**[191](index=191&type=chunk) | Top 5 Common Shareholders | Shareholding Ratio (%) | Number of Shares | | :--- | :--- | :--- | | HKSCC Nominees Limited | **18.92%** | **8,284,494,733** shares | | Dajia Life Insurance Co., Ltd. - Universal Product | **10.30%** | **4,508,984,567** shares | | Dajia Life Insurance Co., Ltd. - Traditional Product | **6.49%** | **2,843,300,122** shares | | China Oceanwide Holdings Group Co., Ltd. | **4.61%** | **2,019,182,618** shares | | Tongfang Guoxin Investment Holdings Co., Ltd. | **4.31%** | **1,888,530,701** shares | [Preferred Share Information](index=67&type=section&id=%E5%84%AA%E5%85%88%E8%82%A1%E7%9B%B8%E9%97%9C%E6%83%85%E6%B3%81) This section provides details on the company's preferred shares, including issuance, redemption, conversion, and dividend distribution [Preferred Share Information](index=67&type=section&id=%E5%84%AA%E5%85%88%E8%82%A1%E7%9B%B8%E9%97%9C%E6%83%85%E6%B3%81) During the reporting period, there were no new preferred share issuances, repurchases, or conversions, nor any restoration of preferred share voting rights. The company's outstanding domestic and overseas preferred shares are accounted for as other equity instruments, with no dividend distribution in the period - The company's outstanding domestic preferred shares "Minsheng You **1**" have a total issuance amount of **RMB 20 billion** with a coupon dividend rate of **4.38%**; overseas preferred shares have a total issuance amount of approximately **RMB 9.93 billion** with an initial dividend rate of **4.95%**[197](index=197&type=chunk)[535](index=535&type=chunk) - During the reporting period, the company had no preferred share dividend distribution, repurchase, conversion, or voting rights restoration events[201](index=201&type=chunk) [Bond Information](index=69&type=section&id=%E5%82%B5%E5%88%B8%E7%9B%B8%E9%97%9C%E6%83%85%E6%B3%81) This section outlines the company's outstanding bonds, including types, issuance, redemption, interest payments, and credit ratings [Bond Information](index=69&type=section&id=%E5%82%B5%E5%88%B8%E7%9B%B8%E9%97%9C%E6%83%85%E6%B3%81) As of the end of the reporting period, the company's outstanding bonds primarily included Tier **2** capital bonds, perpetual bonds, and special financial bonds for small and micro enterprises. A **RMB 4 billion** subordinated bond was redeemed, and interest payments were made for several outstanding bonds, all rated **AAA** with stable outlook - During the reporting period, the company completed the redemption of the **RMB 4 billion** "**11** Minsheng **02**" subordinated bond on March **18**, **2021**[204](index=204&type=chunk) - On April **19**, **2021**, the company newly issued **RMB 30 billion** in perpetual bonds (**21** Minsheng Bank Perpetual Bond **01**) with a coupon rate of **4.30%**, used to supplement additional Tier **1** capital[213](index=213&type=chunk) - As of the end of the reporting period, all of the company's outstanding bonds held a credit rating of **AAA** with a stable outlook[206](index=206&type=chunk)[207](index=207&type=chunk)[208](index=208&type=chunk)[210](index=210&type=chunk)[211](index=211&type=chunk)[212](index=212&type=chunk)[214](index=214&type=chunk) [Corporate Governance](index=74&type=section&id=%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86) This section describes the company's corporate governance structure, including the board of directors, supervisory board, and compliance with regulatory requirements [Overview of Corporate Governance](index=74&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E7%B6%9C%E8%BF%B0) The company continuously improved its corporate governance system, organically integrating Party leadership with corporate governance and actively implementing regulatory standards, enhancing the quality of decision-making and oversight through optimized board and supervisory board operations, in compliance with relevant laws and codes - During the reporting period, the company's Board of Directors held **6** meetings, reviewing **59** proposals; the Supervisory Board held **2** meetings, reviewing **14** proposals, with each governance body effectively fulfilling its duties[217](index=217&type=chunk) [Employee Information](index=81&type=section&id=%E4%B8%83%E3%80%81%E5%93%A1%E5%B7%A5%E6%83%85%E6%B3%81) As of the end of the reporting period, the Group had **57,090** employees, with **54,481** at the company. **99.1%** of employees held college degrees or above. The company conducted **311** training programs for **57,000** participants | Item | Number | | :--- | :--- | | Group Employees | **57,090** people | | Company Employees | **54,481** people | | Subsidiary Employees | **2,609** people | | Proportion of Employees with College Degree or Above | **99.1%** | [Environmental and Social Responsibility](index=84&type=section&id=%E7%92%B0%E5%A2%83%E5%92%8C%E7%A4%BE%E6%9C%83%E8%B2%AC%E4%BB%BB) This section details the company's initiatives and performance in environmental protection and social responsibility, including financial services for rural revitalization [Financial Services for Rural Revitalization](index=84&type=section&id=%E4%BA%8C%E3%80%81%E5%85%A8%E9%9D%A2%E6%8E%A8%E9%80%B2%E9%87%91%E8%9E%8D%E6%9C%8D%E5%8B%99%E9%84%89%E6%9D%91%E6%8C%AF%E8%88%88) The company actively fulfilled its social responsibility by prioritizing financial services for rural revitalization, establishing a leadership group and principles, focusing on two designated poverty alleviation counties (Huaxian, Fengqiu) through consumption, industrial, and talent support to create a "Minsheng model" for rural revitalization - The company established a rural revitalization working group and formulated a specific work plan, clarifying the assistance principles of "**two focuses, three non-reductions, five enhancements**," demonstrating its high regard and systematic planning for the rural revitalization strategy[247](index=247&type=chunk) [Significant Matters](index=85&type=section&id=%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A0%85) This section covers significant events such as major litigation, arbitration, and profit distribution [Major Litigation and Arbitration Matters](index=85&type=section&id=%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E8%A8%B4%E8%A8%9F%E3%80%81%E4%BB%B2%E8%A3%81%E4%BA%8B%E9%A0%85) During the reporting period, no major litigation or arbitration significantly impacted operations. As of period-end, the company was involved in unresolved lawsuits as plaintiff totaling approximately **RMB 23.41 billion** and as defendant totaling approximately **RMB 1.75 billion** | Litigation Role | Number of Cases | Amount Involved (RMB 10,000) | | :--- | :--- | :--- | | As Plaintiff | **3,123** | **2,340,736** 10,000 RMB | | As Defendant | **173** | **174,587** 10,000 RMB | [Profit and Dividend Distribution](index=86&type=section&id=%E5%85%AB%E3%80%81%E5%88%A9%E6%BD%A4%E5%8F%8A%E8%82%A1%E5%88%A9%E5%88%86%E9%85%8D%E6%83%85%E6%B3%81) The company implemented its **2020** profit distribution plan, paying a cash dividend of **RMB 0.213** per share (tax inclusive), totaling **RMB 9.33 billion**. The Board of Directors decided against profit distribution or capital reserve capitalization for H1 **2021** - **2020** dividend: cash dividend of **RMB 0.213** per share (tax inclusive), totaling **RMB 9.33 billion**[258](index=258&type=chunk) - H1 **2021** profit distribution plan: no profit distribution or capital reserve capitalization[259](index=259&type=chunk) [Financial Report](index=88&type=section&id=%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A) This section presents the company's unaudited interim consolidated financial statements for H1 **2021**, including the income statement, statement of comprehensive income, statement of financial position, statement of changes in equity, and cash flow statement, along with related notes and supplementary financial information [Financial Report](index=88&type=section&id=%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A) This section contains the company's unaudited interim consolidated financial statements for H1 **2021**, reviewed by PricewaterhouseCoopers in accordance with International Standard on Review Engagements **2410**, resulting in an unmodified conclusion review report - This interim financial report is unaudited but was reviewed by PricewaterhouseCoopers in accordance with International Standard on Review Engagements **2410**, resulting in an unmodified conclusion review report[4](index=4&type=chunk)[265](index=265&type=chunk)[267](index=267&type=chunk)