江阴银行(002807) - 2022 Q4 - 年度财报

Important Notice, Table of Contents, and Definitions This section provides standard declarations, ensuring the annual report's truthfulness and completeness, audited with an unqualified opinion, and disclosing the 2022 profit distribution plan Important Notice The company's board, supervisory board, and senior management ensure the annual report's content is true, accurate, and complete - The bank's board of directors, supervisory board, and senior management guarantee the annual report content is true, accurate, and complete, free from false statements, misleading representations, or major omissions, and assume corresponding legal responsibilities[3] - Lixin Certified Public Accountants audited the bank's 2022 financial report and issued a standard unqualified audit opinion[3] - The profit distribution plan approved by the board of directors is: a cash dividend of 1.8 yuan (tax inclusive) per 10 shares to all shareholders, with no bonus shares or capital increase from reserves[4] Company Profile and Key Financial Indicators This section presents the company's key financial performance and position, including revenue, net profit, assets, and per-share metrics Key Accounting Data and Financial Indicators In 2022, the company achieved operating revenue of 3.78 billion yuan, a 12.27% year-on-year increase, with net profit attributable to shareholders rising 26.88% to 1.616 billion yuan 2022 Annual Key Financial Data and Indicators | Indicator | 2022 Annual | 2021 Annual | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB Thousand) | 3,779,907 | 3,366,710 | 12.27% | | Net Profit Attributable to Shareholders (RMB Thousand) | 1,616,057 | 1,273,690 | 26.88% | | Basic Earnings Per Share (RMB/share) | 0.7440 | 0.5864 | 26.88% | | Weighted Average ROE | 11.87% | 10.15% | Increased 1.72 percentage points | | Total Assets (RMB Thousand) | 168,751,396 | 153,127,599 | 10.20% | | Net Assets Attributable to Shareholders (RMB Thousand) | 14,274,964 | 13,025,795 | 9.59% | Quarterly Key Financial Indicators The company's net profit attributable to parent company shareholders significantly increased in Q4 2022, reaching 699 million yuan, while operating revenue showed a slight quarter-on-quarter decline 2022 Quarterly Key Financial Indicators (Unit: RMB Thousand) | Item | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 996,031 | 1,039,989 | 929,310 | 814,577 | | Net Profit Attributable to Shareholders | 275,063 | 299,604 | 342,165 | 699,225 | Deposits and Loans As of the end of 2022, total deposit principal reached 126.709 billion yuan, up 10.70%, and total loan principal reached 103.129 billion yuan, up 12.74% Deposit and Loan Balance Changes (Unit: RMB Thousand) | Item | 2022 Year-End | 2021 Year-End | Change Rate | | :--- | :--- | :--- | :--- | | Total Deposit Principal | 126,708,995 | 114,458,689 | 10.70% | | Total Loan Principal | 103,128,878 | 91,470,973 | 12.74% | Supplementary Financial Indicators In 2022, the company's non-performing loan ratio significantly decreased to 0.98%, and provision coverage ratio increased to 469.62%, indicating improved asset quality and risk mitigation Key Regulatory and Profitability Indicators | Regulatory Indicator | 2022 | 2021 | Change | | :--- | :--- | :--- | :--- | | Capital Adequacy Ratio (%) | 13.90 | 14.11 | Decreased 0.21 percentage points | | Non-Performing Loan Ratio (%) | 0.98 | 1.32 | Decreased 0.34 percentage points | | Provision Coverage Ratio (%) | 469.62 | 330.62 | Increased 139.00 percentage points | | Cost-to-Income Ratio (%) | 30.39 | 33.40 | Decreased 3.01 percentage points | | Net Interest Margin (%) | 2.18 | 2.14 | Increased 0.04 percentage points | Capital Adequacy Ratio Details (Unit: RMB Ten Thousand) | Item | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Core Tier 1 Capital Adequacy Ratio (%) | 12.77 | 12.96 | | Tier 1 Capital Adequacy Ratio (%) | 12.78 | 12.97 | | Capital Adequacy Ratio (%) | 13.90 | 14.11 | Management Discussion and Analysis This section provides an in-depth analysis of the company's operational performance, strategic initiatives, and risk management during the reporting period Principal Business and Operations Overview In 2022, the company achieved steady improvements in scale, quality, and efficiency by strengthening deposit and loan businesses, serving the real economy, and leveraging technology - Deposit base strengthened: By the end of 2022, total deposits reached 126.71 billion yuan, an increase of 10.7% from the beginning of the year[47] - Strong credit disbursement: Total loans reached 103.13 billion yuan, an increase of 12.7% from the beginning of the year; parent company's loans to 'Sannong' and small and micro enterprises totaled 92.55 billion yuan, up 15.5%[47] - Technology empowerment: Initiated construction of a new technology information center and new core system, with mobile banking customers reaching 941,000[48] - Strengthened risk management: Non-performing loan ratio decreased to 0.98%, a 0.34 percentage point decrease from the beginning of the year[49] Core Competitiveness Analysis The company's core competitiveness stems from its regional economic integration, extensive branch network, technology leadership, efficient institutional structure, and robust risk management - Regional advantage: Deeply rooted in Jiangyin's top 100 county economy, parent company's loans to 'Sannong' and small and micro enterprises reached 92.55 billion yuan[52] - Branch network advantage: As Jiangyin's financial institution with the most branches and widest coverage, it deeply practices inclusive finance[53] - Technology advantage: Adhering to technology leadership, by the end of 2022, cumulative mobile banking users reached 941,000, and online loan balance reached 2.107 billion yuan[55] - Institutional and risk control advantages: Short decision chain, quick response, and firmly establishing a 'risk control first' philosophy to ensure high-quality development[56][58] Financial Statement Analysis In 2022, the company's operating revenue grew by 12.27% to 3.78 billion yuan, and net profit attributable to parent company shareholders increased by 26.88% to 1.616 billion yuan, driven by strong loan growth and improved asset quality Income Statement Item Analysis Net interest income, driven by loan expansion and asset structure optimization, was the core driver of revenue growth, with net interest margin improving to 2.18% and cost-to-income ratio decreasing to 30.39% Income Statement Key Item Changes (Unit: RMB Thousand) | Item | 2022 Annual | 2021 Annual | Change Percentage | | :--- | :--- | :--- | :--- | | Operating Revenue | 3,779,907 | 3,366,710 | 12.27% | | Net Interest Income | 3,193,486 | 2,830,933 | 12.81% | | Operating and Administrative Expenses | 1,148,609 | 1,124,448 | 2.15% | | Credit Impairment Losses | 896,112 | 854,200 | 4.91% | | Net Profit Attributable to Parent Company Owners | 1,616,057 | 1,273,690 | 26.88% | Net Interest Spread and Net Interest Margin | Indicator | 2022 | 2021 | | :--- | :--- | :--- | | Net Interest Spread (%) | 1.94 | 1.89 | | Net Interest Margin (%) | 2.18 | 2.14 | Balance Sheet Item Analysis As of 2022 year-end, total assets reached 168.751 billion yuan, with loans and advances to customers increasing to 103.129 billion yuan, and deposits from customers remaining the primary funding source at 129.835 billion yuan Asset Structure Overview (Unit: RMB Thousand) | Item | 2022 Year-End Amount | Proportion | 2021 Year-End Amount | Proportion | | :--- | :--- | :--- | :--- | :--- | | Loans and Advances to Customers | 98,711,057 | 58.49% | 87,706,952 | 57.28% | | Financial Investments | 55,645,227 | 32.97% | 50,842,239 | 33.20% | | Cash and Deposits with Central Bank | 8,628,153 | 5.11% | 8,634,871 | 5.64% | | Total Assets | 168,751,396 | 100.00% | 153,127,599 | 100.00% | Liability Structure Overview (Unit: RMB Thousand) | Item | 2022 Year-End Amount | Proportion | 2021 Year-End Amount | Proportion | | :--- | :--- | :--- | :--- | :--- | | Deposits from Customers | 129,834,790 | 84.12% | 117,447,493 | 83.91% | | Borrowings from Central Bank | 9,939,747 | 6.44% | 5,256,146 | 3.76% | | Bonds Payable | 6,567,623 | 4.26% | 3,867,655 | 2.76% | | Total Liabilities | 154,335,869 | 100.00% | 139,961,942 | 100.00% | Cash Flow Statement Item Analysis In 2022, net cash flow from operating activities significantly decreased by 90.39% to 392 million yuan, while investing activities turned negative and financing activities turned positive due to bond issuance Cash Flow Statement Overview (Unit: RMB Thousand) | Item | 2022 Annual | 2021 Annual | Period-on-Period Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 391,601 | 4,074,399 | -90.39% | | Net Cash Flow from Investing Activities | -2,515,187 | 718,518 | -450.05% | | Net Cash Flow from Financing Activities | 2,121,514 | -5,440,220 | 139.00% | | Net Increase in Cash and Cash Equivalents | 61,111 | -663,934 | 109.20% | Loan Quality Analysis The company's consolidated non-performing loan ratio decreased to 0.98% by 2022 year-end, a new low since listing, indicating continuous improvement in loan quality and controllable concentration risk Loan Five-Category Classification (Consolidated) | Five-Category Classification | 2022 Year-End Amount (RMB Thousand) | Proportion (%) | 2021 Year-End Amount (RMB Thousand) | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Normal | 101,172,252 | 98.10% | 89,757,780 | 98.13% | | Special Mention | 945,892 | 0.92% | 507,806 | 0.56% | | Non-Performing (Substandard+Doubtful+Loss) | 1,010,734 | 0.98% | 1,205,387 | 1.32% | - Deviation rate for loans overdue by more than 90 days (loans overdue by more than 90 days / non-performing loans) was 70.67%, a 10.45 percentage point decrease from 81.12% in the previous year, indicating more prudent asset classification[105][107] - Loan concentration is low, with single largest customer loan accounting for 3.22% of net capital, and top ten customer loans accounting for 28.48% of net capital, both meeting regulatory requirements (≤10% and ≤50%)[109][110] Risk Management The company manages various risks, including credit, market, liquidity, and information technology, through a comprehensive three-line defense system and continuous monitoring - Credit risk: As the bank's primary risk, it is controlled through a three-line defense management system, optimized credit structure, and strengthened unified credit management. As of the end of 2022, the single largest customer loan concentration was 3.22%, meeting regulatory requirements[120][125] - Market risk: Primarily interest rate risk and exchange rate risk. Interest rate liberalization reforms bring uncertainty risks to bank deposits, loans, and bond investments. The bank adheres to a neutral exchange rate risk philosophy to reduce the impact of exchange rate fluctuations[130][132][133] - Liquidity risk: All liquidity indicators meet regulatory standards. As of December 31, 2022, the liquidity ratio was 96.8%, with quarterly stress tests conducted to ensure stable and controllable liquidity[137][142][143] - Information technology risk: Faces business continuity, information security, and supply chain risks. Plans to adopt a 'two locations, four centers' architecture, aiming for an 'application-level multi-active' model to ensure 7*24 hour business availability[146][147][148] Future Development Outlook The company plans to continue its regional strategy, focusing on 'Sannong' and inclusive finance, while advancing digital and comprehensive banking services - Regional strategy: Deeply cultivate 'county areas', densely plant in 'Suzhou, Wuxi, and Changzhou', integrate into the 'Yangtze River Delta'[154] - Business brands: Build three major brands: 'Real Economy Revitalization Bank, Small and Micro Inclusive Bank, People's Livelihood Bank'[154] - Development direction: Promote the construction of a 'scenario-based, personalized, intelligent' digital smart bank and comprehensive bank[154] Corporate Governance This section details the company's governance structure, compliance, and the composition and remuneration of its leadership Basic Corporate Governance Status The company's corporate governance adheres to legal and regulatory requirements, featuring a sound structure with a board, supervisory board, and specialized committees ensuring standardized operations and fair information disclosure - Corporate governance structure is sound, operating strictly in accordance with laws and regulations such as the 'Company Law' and 'Securities Law', meeting regulatory requirements[172] - The Board of Directors has seven specialized committees: Strategy and Development, Risk Management, Audit, Related Party Transaction Control, Nomination and Remuneration, 'Sannong' Financial Services, and Financial Consumer Rights Protection[174] Directors, Supervisors, and Senior Management This section outlines the profiles, professional backgrounds, and remuneration of the company's directors, supervisors, and senior management, including recent personnel changes 2022 Senior Management Remuneration (Unit: RMB Ten Thousand) | Name | Position | Total Pre-tax Remuneration from Company | | :--- | :--- | :--- | | Sun Wei | Chairman | 113.28 | | Song Ping | Director, President | 112.75 | | Jin Wu | Chairman of Supervisory Board | 100.5 | | Zhong Guoliang | Vice President | 100.4 | | Wang Feng | Vice President | 100.03 | - Senior management changes during the reporting period: Yuan Kun (Assistant President), Guo Shengyu (Vice President), Lin Lei (Independent Director) resigned; Wang Anguo appointed as Vice President, Wang Jiqing appointed as independent director[191] Profit Distribution The company maintains a stable profit distribution policy, proposing a cash dividend of 1.8 yuan (tax inclusive) per 10 shares for 2022, consistent with previous years Recent Three-Year Profit Distribution Plans | Year | Dividend Per 10 Shares (RMB) (Tax Incl.) | Bonus Shares Per 10 Shares (Shares) | Capitalization from Reserves Per 10 Shares (Shares) | | :--- | :--- | :--- | :--- | | 2022 Proposed | 1.80 | 0 | 0 | | 2021 | 1.80 | 0 | 0 | | 2020 | 1.80 | 0 | 0 | Environmental and Social Responsibility This section highlights the company's commitment to environmental and social responsibility, particularly its efforts in rural revitalization and inclusive finance Rural Revitalization and Social Responsibility The company actively supports rural revitalization, with parent company's 'Sannong' loan balance reaching 64.91 billion yuan and inclusive 'Sannong' loans growing by 18.0% in 2022 2022 Year-End 'Sannong' Loan Situation (Parent Company Scope) | Item | Loan Balance (RMB 100 Million) | Increase from Beginning of Year (RMB 100 Million) | Growth Rate | | :--- | :--- | :--- | :--- | | 'Sannong' Loans | 649.1 | 54.3 | 9.1% | | Inclusive 'Sannong' Loans | 178.0 | 27.1 | 18.0% | - Through the 'Party Building Co-creation, Financial Assistance to Enterprises' initiative, co-building with city, town, and village-level party organizations, effectively alleviating financing difficulties for 'Sannong' enterprises[261] - Innovatively launched the special financial product 'Village Loan' to solve financing difficulties for village-level economic organizations, with cumulative disbursements of 63 million yuan by year-end[263][264] Significant Matters This section covers significant events impacting the company, including major litigation and arbitration cases Significant Litigation and Arbitration Matters The company disclosed several major litigation cases during the reporting period, primarily involving bill disputes and separate right disputes, with some cases resolved and others ongoing - Subsidiary Xuanhan Chengmin Rural Bank won the second instance of the bill dispute case with Everbright Bank Changshu Branch, and the Supreme People's Court has rejected the opposing party's retrial application[273] - Subsidiary Xuanhan Chengmin Rural Bank lost the final instance of the bill dispute case with Everbright Bank Jiaxing Branch and is applying for protest[273] - The bank's Zhouzhuang Branch won the first instance of the separate right dispute case with Jiangsu Ni Jia Xiang Group Fine Wool Textile Co., Ltd., and the judgment has become effective[273] Share Changes and Shareholder Information This section details changes in the company's share capital and provides an overview of its shareholder structure Share Changes In 2022, the company's total share capital increased by 41,353 shares due to convertible bond conversions, reaching 2,172,051,204 shares - In 2022, the bank's convertible bonds decreased by 1,717 units due to conversion, with 41,353 shares converted[291] Share Change Overview | Item | Before This Change | Increase/Decrease in This Change | After This Change | | :--- | :--- | :--- | :--- | | I. Restricted Shares | 2,573,083 | +12,850 | 2,585,933 | | II. Unrestricted Shares | 2,169,436,768 | +28,503 | 2,169,465,271 | | III. Total Shares | 2,172,009,851 | +41,353 | 2,172,051,204 | Shareholder Information As of 2022 year-end, the company had 52,262 common shareholders, with a dispersed equity structure and no controlling shareholder or actual controller - As of the end of the reporting period, the company had 52,262 common shareholders[297] - The company has no controlling shareholder or actual controller, with the single largest shareholder holding 4.18% of shares[300][301] Top Five Shareholders' Shareholding | Shareholder Name | Shareholding Proportion | Shares Held at End of Reporting Period | Pledge/Freeze Status | | :--- | :--- | :--- | :--- | | Jiangyin Xinjinnan Investment Development Co., Ltd. | 4.18% | 90,892,500 | None | | Hong Kong Securities Clearing Company Limited | 3.90% | 84,749,955 | None | | Jiangyin Huafa Industrial Co., Ltd. | 3.83% | 83,255,100 | Frozen 83,255,100 shares | | Jiangyin Zhenhong Printing and Dyeing Co., Ltd. | 3.33% | 72,267,732 | Pledged 30,111,555 shares | | Jiangyin Yangtze River Investment Group Co., Ltd. | 3.24% | 70,450,000 | Pledged 39,606,900 shares | Bond-Related Information This section provides details on the company's convertible corporate bonds, including conversion status and credit ratings Convertible Corporate Bonds The company's 2 billion yuan convertible bonds saw their conversion price adjusted to 4.14 yuan/share in 2022, with 87.90% of the issuance remaining unconverted by year-end - Due to the implementation of the 2021 profit distribution plan, effective May 13, 2022, the conversion price of 'Jiangyin Convertible Bonds' was adjusted from 4.32 yuan/share to 4.14 yuan/share[322] 'Jiangyin Convertible Bonds' Cumulative Conversion (As of 2022 Year-End) | Item | Amount (RMB) | | :--- | :--- | | Total Issuance Amount | 2,000,000,000 | | Cumulative Converted Amount | 242,047,300 | | Amount Not Yet Converted | 1,757,952,700 | | Proportion of Unconverted Amount to Total Issuance | 87.90% | - On May 30, 2022, China Chengxin International maintained the 'AA+' credit rating for 'Jiangyin Convertible Bonds'[327] Financial Report This section encompasses the audited financial statements and detailed notes, providing a comprehensive view of the company's financial performance and position Audit Report Lixin Certified Public Accountants issued a standard unqualified audit opinion on the company's 2022 financial statements, highlighting key audit matters such as loan impairment and structured entity consolidation - Audit opinion type is a standard unqualified opinion[332][333] - Key audit matters include: * Impairment of loans and advances: due to their material amount and the significant accounting estimates and judgments involved in impairment assessment * Consolidation assessment for structured entities: due to the large number of managed and invested structured entities, and the significant judgment involved in determining whether to consolidate * Recognition assessment for financial asset transfers: due to the significant judgment involved in assessing whether transferred non-performing loans meet derecognition criteria[335][336][337] Financial Statements This section presents the company's consolidated and parent company financial statements for 2022, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity Consolidated Balance Sheet Summary (Unit: RMB Thousand) | Item | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Total Assets | 168,751,396 | 153,127,599 | | Total Liabilities | 154,335,869 | 139,961,942 | | Total Shareholders' Equity | 14,415,527 | 13,165,657 | Consolidated Income Statement Summary (Unit: RMB Thousand) | Item | 2022 Annual | 2021 Annual | | :--- | :--- | :--- | | Total Operating Revenue | 3,779,907 | 3,366,710 | | Total Profit | 1,675,009 | 1,324,599 | | Net Profit | 1,616,878 | 1,284,732 | | Net Profit Attributable to Parent Company Shareholders | 1,616,057 | 1,273,690 | Notes to Major Financial Statement Items This section provides detailed explanations and supplementary information for key financial statement items, crucial for understanding the company's financial position and operating results - Loans and advances by industry: Manufacturing accounts for the highest proportion at 38.03%, followed by wholesale and retail trade at 13.30%[527] - Loans and advances by collateral type: Collateralized loans account for the highest proportion at 56.303 billion yuan, including 41.588 billion yuan in mortgage loans and 14.715 billion yuan in pledge loans[533] - In 2022, the company disposed of on-balance sheet non-performing loans totaling 243 million yuan through transfer to third parties[733]