九台农商银行(06122) - 2020 - 年度财报

Chairman and President's Address Chairman's Address Chairman Gao Bing noted 2020 was an extraordinary year, with the bank achieving high-quality development amidst the pandemic and complex external environment, supporting "San Nong" and SMEs, and reaching RMB 1.2 billion net profit, while aiming for first-class modern rural commercial bank status in 2021 2020 Year-End Group Key Financial Data | Indicator | Amount (RMB) | | :--- | :--- | | Total Assets | 2,003.63 billion RMB | | Total Deposits | 1,497.63 billion RMB | | Total Loans and Advances | 1,300.77 billion RMB | | Net Profit | 1.20 billion RMB | - The bank maintained its market positioning of serving "San Nong" and SMEs in 2020, deepening community finance, strengthening risk prevention and control, and actively participating in epidemic prevention and control and targeted financial poverty alleviation[22] - Looking ahead to 2021, the bank will integrate into the "dual circulation" development pattern, coordinating the "four-in-one" construction of "San Nong" finance, community finance, cooperation platforms, and public welfare and charity[22] President's Address President Liang Xiangmin reviewed 2020 operations, highlighting the bank's stable progress despite challenges, achieving RMB 1.098 billion net profit, and significant results in supporting the real economy and risk management, with a focus on deepening reform and transformation in 2021 2020 Year-End Bank Key Financial Data | Indicator | Amount (RMB) | | :--- | :--- | | Total Assets | 1,430.71 billion RMB | | Total Deposits from Customers | 993.76 billion RMB | | Total Customer Loans and Advances | 925.21 billion RMB | | Net Profit | 1.098 billion RMB | - The bank diligently implemented the "six stabilities" and "six guarantees" initiatives, prioritizing financial resource allocation to support business resumption and overcome difficulties with market entities[26] - In terms of social responsibility, the bank fully supported epidemic prevention and control, with cumulative donations exceeding RMB 9.5 million, and diligently carried out targeted financial poverty alleviation[26] Chapter 1 Definitions and Technical Terms This chapter provides definitions for key terms and technical vocabulary used throughout the report Chapter 2 Company Profile II. History of the Bank The bank was established on December 16, 2008, through the restructuring of the former Jiutai City Rural Credit Cooperative Union, and its H-shares were listed on the HKEX on January 12, 2017, though it is not regulated by the HKMA - The bank was established on December 16, 2008, through the restructuring of the former Jiutai City Rural Credit Cooperative Union[46] - The bank's H-shares were listed on the Main Board of the Hong Kong Stock Exchange on January 12, 2017, with stock code 06122[43][46] III. Major Awards and Honors in 2020 In 2020, the Group received multiple awards and honors for its outstanding business performance and management, recognizing its contributions to financial services, innovation, inclusive finance, targeted poverty alleviation, and social responsibility - Recognized by The Banker magazine as one of the "Top 1000 World Banks in 2020"[47] - Awarded "Advanced Enterprise in the 'Ten Thousand Enterprises Helping Ten Thousand Villages' Targeted Poverty Alleviation Action" by the All-China Federation of Industry and Commerce and the State Council Leading Group Office of Poverty Alleviation and Development for its contributions to targeted poverty alleviation[49] - Awarded "Advanced Enterprise in Fighting the COVID-19 Epidemic" by the All-China Federation of Industry and Commerce for its outstanding performance in combating the COVID-19 epidemic[50] Chapter 3 Financial Summary Financial Data Summary In 2020, the Group's total assets grew to RMB 200.36 billion, with net profit at RMB 1.2 billion, while asset quality remained stable with a slight decrease in the NPL ratio to 1.63%, and capital adequacy ratios met regulatory requirements despite a slight decline Comparison of Key Financial Indicators 2019-2020 | Item (RMB million) | 2020 | 2019 | Change | | :--- | :--- | :--- | :--- | | Operating Performance | | | | | Operating Income | 5,546.8 | 5,311.4 | +4.4% | | Net Profit | 1,199.7 | 1,195.7 | +0.3% | | Assets and Liabilities | | | | | Total Assets | 200,363.3 | 173,275.5 | +15.6% | | Loans and Advances | 126,574.6 | 93,394.2 | +35.5% | | Deposits from Customers | 149,763.2 | 122,840.4 | +21.9% | | Total Equity | 16,251.2 | 15,660.1 | +3.8% | | Profitability Indicators (%) | | | | | Return on Assets | 0.64% | 0.71% | -0.07pp | | Return on Equity | 7.52% | 7.77% | -0.25pp | | Cost-to-Income Ratio | 47.96% | 51.08% | -3.12pp | | Asset Quality Indicators (%) | | | | | Non-Performing Loan Ratio | 1.63% | 1.68% | -0.05pp | | Provision Coverage Ratio | 164.82% | 167.58% | -2.76pp | | Capital Adequacy Indicators (%) | | | | | Core Tier 1 Capital Adequacy Ratio | 9.05% | 9.55% | -0.50pp | | Tier 1 Capital Adequacy Ratio | 9.15% | 9.66% | -0.51pp | | Capital Adequacy Ratio | 11.37% | 11.98% | -0.61pp | Chapter 4 Management Discussion and Analysis 4.1 Environment and Outlook The 2021 outlook anticipates global economic recovery amidst uncertainties, with China's "14th Five-Year Plan" driving strong domestic growth, offering development opportunities for rural commercial banks, as the bank focuses on serving the real economy and integrated development - 2021 marks the beginning of China's "14th Five-Year Plan", with prudent monetary policy and proactive fiscal policy expected to drive strong economic recovery[55] - The bank will coordinate the "four-in-one" construction of "San Nong" finance, community finance, cooperation platforms, and public welfare and charity, integrating into the new "dual circulation" development pattern[55] 4.2 Development Strategy The Group's strategic vision is to become a leading modern, branded rural commercial bank by consolidating its "San Nong" and SME service advantages, developing retail banking, expanding new businesses, and strengthening risk management and talent development - The strategic goal is to build a first-class modern and branded rural commercial bank in China[56] - Specific measures include: - Consolidating advantages in "San Nong" and SME banking services - Developing retail banking business - Expanding new businesses - Strengthening risk management and internal control - Building a high-quality talent team[56] 4.3 Overall Business Review In 2020, the Group achieved stable operations with total operating income growing 4.4% to RMB 5.55 billion and net profit increasing 0.3% to RMB 1.2 billion, alongside significant asset expansion and stable asset quality with an NPL ratio of 1.63% 2020 Group Overall Performance Overview | Indicator | 2020 (RMB) | 2019 (RMB) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Operating Income | 5.547 billion RMB | 5.311 billion RMB | +4.4% | | Net Profit | 1.200 billion RMB | 1.196 billion RMB | +0.3% | | Total Assets | 200.363 billion RMB | 173.276 billion RMB | +15.6% | | Total Loans and Advances | 130.077 billion RMB | 96.104 billion RMB | +35.3% | | Total Deposits from Customers | 149.763 billion RMB | 122.840 billion RMB | +21.9% | | Non-Performing Loan Ratio | 1.63% | 1.68% | -0.05pp | 4.3.a Consolidated Income Statement Analysis In 2020, the Group's net profit slightly increased by 0.3%, driven by a 22.4% rise in net interest income from expanded interest-earning assets, despite declines in fee income and trading gains, and a 1.6% decrease in operating expenses Changes in Major Items of Consolidated Income Statement 2019-2020 | Item (RMB million) | 2020 | 2019 | Change (%) | | :--- | :--- | :--- | :--- | | Net Interest Income | 5,098.5 | 4,165.4 | +22.4% | | Net Fee and Commission Income | 230.6 | 316.5 | -27.1% | | Net Trading Gains | 149.8 | 609.8 | -75.4% | | Operating Income | 5,546.8 | 5,311.4 | +4.4% | | Operating Expenses | (2,743.7) | (2,787.4) | -1.6% | | Asset Impairment Losses | (1,306.6) | (1,088.1) | +20.1% | | Profit Before Tax | 1,541.1 | 1,503.5 | +2.5% | | Profit for the Year | 1,199.7 | 1,195.7 | +0.3% | - Net interest income, the largest component of operating income, increased its share from 78.4% to 91.9%, driven by a 22.3% increase in average interest-earning assets[62][73] - Net interest margin decreased from 2.74% to 2.58%, while net interest yield remained at 2.75%, primarily due to lower average loan yields in response to national fee reduction policies and LPR decline[67][85] 4.3.b Consolidated Statement of Financial Position Analysis As of year-end 2020, total assets grew 15.6% to RMB 200.36 billion, with net loans and advances increasing to 63.2% of assets, while deposits rose 21.9% to RMB 149.76 billion as the primary funding source 2020 Year-End Consolidated Statement of Financial Position Structure | Item (RMB million) | December 31, 2020 | Share of Total (%) | December 31, 2019 | Share of Total (%) | | :--- | :--- | :--- | :--- | :--- | | Assets | | | | | | Net Loans and Advances | 126,574.6 | 63.2% | 93,394.2 | 53.9% | | Investment Securities and Other Financial Assets | 30,499.0 | 15.2% | 39,218.2 | 22.6% | | Cash and Balances with Central Bank | 25,155.0 | 12.6% | 23,626.4 | 13.6% | | Total Assets | 200,363.3 | 100.0% | 173,275.5 | 100.0% | | Liabilities | | | | | | Deposits from Customers | 149,763.2 | 81.3% | 122,840.4 | 77.9% | | Debt Instruments Issued | 7,504.5 | 4.1% | 14,220.1 | 9.0% | | Total Liabilities | 184,112.1 | 100.0% | 157,615.4 | 100.0% | - Total loans and advances increased by 35.3% year-on-year, primarily due to increased credit extended to SMEs to support epidemic prevention and control and business resumption[105][107] - Investment securities and other financial assets decreased by 22.2% year-on-year, mainly due to the Group's reduction in investments in bonds, asset management, and trust plans based on regulatory policies and market conditions[116] 4.3.c Asset Quality Analysis As of year-end 2020, the Group's asset quality remained stable, with the NPL ratio slightly decreasing to 1.63% from 1.68% due to rapid loan growth, though retail NPLs increased, primarily impacted by the pandemic and economic downturn Loan Five-Category Classification and NPL Ratio 2019-2020 | Loan Classification | 2020 (RMB million) | Share of Total% | 2019 (RMB million) | Share of Total% | | :--- | :--- | :--- | :--- | :--- | | Normal | 123,911.7 | 95.3% | 92,902.1 | 96.8% | | Special Mention | 4,040.1 | 3.1% | 1,584.9 | 1.6% | | Substandard | 577.1 | 0.4% | 521.0 | 0.5% | | Doubtful | 1,463.5 | 1.1% | 1,067.1 | 1.1% | | Loss | 84.1 | 0.1% | 28.9 | 0.0% | | Total Non-Performing Loans | 2,124.7 | 1.63% | 1,617.0 | 1.68% | - Corporate loan NPL ratio decreased from 1.60% to 1.35%, while retail loan NPL ratio increased from 1.94% to 2.86%, mainly due to a decline in repayment ability of some retail customers affected by the epidemic[133][134] - As of year-end 2020, the loan balance to the top ten single borrowers was RMB 10.15 billion, accounting for 7.80% of total loans, all classified as normal[131] 4.4 Business Review The Group primarily operates three segments: corporate banking, retail banking, and treasury business, with corporate banking revenue growing strongly to 77.5% of total in 2020, while retail banking saw steady growth and treasury business declined due to market volatility Operating Income by Business Segment 2019-2020 | Business Segment | 2020 (RMB million) | Share of Total% | 2019 (RMB million) | Share of Total% | | :--- | :--- | :--- | :--- | :--- | | Corporate Banking Business | 4,298.4 | 77.5% | 3,391.8 | 63.9% | | Retail Banking Business | 642.0 | 11.6% | 566.3 | 10.7% | | Treasury Business | 586.6 | 10.5% | 1,157.0 | 21.8% | | Other | 19.8 | 0.4% | 196.3 | 3.6% | | Total | 5,546.8 | 100.0% | 5,311.4 | 100.0% | 4.4.a Corporate Banking Business In 2020, corporate banking operating income grew 26.7% to RMB 4.3 billion, driven by strong net interest income, with corporate loans increasing 44.2% to RMB 105.63 billion, primarily supporting SMEs - Total corporate loans increased by 44.2% to RMB 105.63 billion, with 2,378 SME loan customers and a total loan amount of RMB 83.80 billion[144][147] 4.4.b Retail Banking Business In 2020, retail banking operating income increased 13.4% to RMB 640 million, with retail loans growing 7.1% to RMB 24.45 billion and retail deposits rising 29.5% to RMB 105.56 billion, while bank card business continued to develop - Retail loans increased by 7.1% to RMB 24.45 billion, accounting for 18.8% of total loans[157] - Retail deposits increased by 29.5% to RMB 105.56 billion, accounting for 70.5% of total deposits[158] 4.4.c Treasury Business In 2020, treasury business operating income decreased 49.3% to RMB 590 million, mainly due to reduced trading and investment gains, leading to a 22.2% decline in investment securities and other financial assets - Treasury business operating income decreased by 49.3%, primarily due to reduced trading gains and investment income[166] - Total investment securities and other financial assets decreased from RMB 39.22 billion to RMB 30.50 billion, a 22.2% decrease[173] 4.5 Risk Management The Group is committed to a comprehensive risk management system, with the Board as the ultimate decision-maker, managing credit, market, operational, and liquidity risks, and enhanced risk resilience through COVID-19 support measures and improved processes - The bank established a hierarchical comprehensive risk management system, with the Board as the highest decision-making body, managing eight major types of risks[196] - Credit risk management involves client access, credit exit, risk early warning, and non-performing asset disposal mechanisms, with a focus in 2020 on supporting epidemic prevention and control and business resumption[197][198] - Liquidity risk management adheres to safe and prudent principles, ensuring overall liquidity stability through optimizing asset-liability structure, strengthening monitoring and early warning, and implementing stress tests[212][213] - Legal and compliance risk management involves a three-year "compliance offensive" aimed at building a compliance and case prevention system covering all businesses and personnel[220] 4.6 Capital Adequacy Ratio Analysis As of year-end 2020, all capital adequacy ratios met CBIRC regulatory requirements, with core Tier 1 at 9.05%, Tier 1 at 9.15%, and total capital adequacy at 11.37%, though all declined from 2019 due to rapid growth in risk-weighted assets Capital Adequacy Ratios 2019-2020 | Capital Adequacy Ratio Indicator | December 31, 2020 | December 31, 2019 | Regulatory Requirement (2020) | | :--- | :--- | :--- | :--- | | Core Tier 1 Capital Adequacy Ratio | 9.05% | 9.55% | ≥7.5% | | Tier 1 Capital Adequacy Ratio | 9.15% | 9.66% | ≥8.5% | | Capital Adequacy Ratio | 11.37% | 11.98% | ≥10.5% | - The primary reason for the decline in capital adequacy ratios is the increase in total risk-weighted assets from RMB 141.84 billion to RMB 161.21 billion[235] Chapter 5 Board of Directors' Report V. Profit and Dividends The Board recommends a final dividend of RMB 0.15 per share (tax inclusive) for 2020, totaling an estimated RMB 659 million, representing 54.9% of annual profit, subject to shareholder approval 2020 Final Dividend Proposal | Item | Amount/Ratio | | :--- | :--- | | Cash Dividend Per Share | RMB 0.15 (tax inclusive) | | Total Dividend (Estimated) | RMB 659 million (tax inclusive) | | Cash Dividend as % of Annual Profit | 54.9% | VI. Capital Reserve to Share Capital Conversion Plan The Board proposes a capital reserve to share capital conversion plan of 5 shares for every 100 shares held, pending approval from shareholders and regulators - The proposed capitalization issue plan is 5 shares for every 100 shares[245] XLIII. Acquisitions and Disposals of Subsidiaries, Associates, Assets and Businesses / Corporate Mergers During the reporting period, the Bank had no significant acquisitions or disposals, but optimized its investment portfolio by selling shares in several rural commercial banks, none of which were discloseable transactions under HKEX Listing Rules - After selling part of its shares in Liaoyuan Rural Commercial Bank, the shareholding ratio decreased to 56.09%[291] - After selling part of its shares in Jilin Chuncheng Rural Commercial Bank, the shareholding ratio decreased to 15.23%[292] - After selling part of its shares in Jilin Gongzhuling Rural Commercial Bank, the shareholding ratio decreased to 20.20%[293] - All shares in Jilin Huancheng Rural Commercial Bank were fully sold, and the bank no longer holds any shares[294] Chapter 6 Supervisory Board Report II. Independent Opinions of the Supervisory Board on Relevant Matters The Supervisory Board provided independent opinions on the Bank's 2020 performance, affirming the Board and senior management's diligent performance, legal compliance, fair financial reporting, effective internal controls, and no harm to shareholder interests from asset sales - The Board of Directors and senior management diligently performed their duties, and business decision-making procedures were legal and effective[305] - The financial report truly and fairly reflects the bank's financial position and operating results[306] - The internal control system is complete and reasonable, with no major defects found[306] Chapter 7 Changes in Share Capital and Shareholder Details II. Shareholder Details As of year-end 2020, the Bank's shareholding structure was dispersed with no controlling shareholder, and Jilin Province Trust Co., Ltd. was the largest shareholder with 9.61% ownership - The bank's shareholding structure is dispersed, with no controlling shareholder or actual controller[318] Top Three Domestic Shareholders as of December 31, 2020 | Rank | Shareholder Name | Number of Shares Held | Share of Total Share Capital (%) | | :--- | :--- | :--- | :--- | | 1 | Jilin Province Trust Co., Ltd. | 422,180,233 | 9.61% | | 2 | Changchun Huaxing Construction Co., Ltd. | 361,682,093 | 8.23% | | 3 | Changchun Huamei Tourism Culture Media Co., Ltd. | 200,502,603 | 4.56% | Chapter 8 Directors, Supervisors, Senior Management, Employees and Organization II. Changes in Directors, Supervisors and Senior Management There were no changes in directors or supervisors during the reporting period, but Ms. Song Xiaoping retired as Vice President, and Mr. Liang Xiangmin resigned as President post-period, with a new President appointed pending regulatory approval - Ms. Song Xiaoping retired and ceased to serve as Vice President effective March 30, 2020[326] - Mr. Liang Xiangmin resigned as President on April 16, 2021, and the Board has resolved to appoint Mr. Chen Xinzhe as his successor, effective upon regulatory approval[326] VIII. Employees, Employee Remuneration Policy and Employee Training Programs As of year-end 2020, the Group had 6,419 full-time employees, with retail banking staff comprising 48%, and implemented a performance-based remuneration system and extensive online and offline training programs totaling 6,445 participants - As of year-end 2020, the Group had 6,419 employees, with over 59% holding a bachelor's degree or higher[352][353] - In 2020, the Group conducted 6,445 employee training sessions through online and offline methods, and organized an online comprehensive business knowledge competition[495][496] Chapter 9 Corporate Governance Report II. Corporate Governance Overview The Bank maintains high corporate governance standards with a modern structure including the Shareholders' Meeting, Board, Supervisory Board, and committees, fully complying with the HK Corporate Governance Code and implementing a board diversity policy - The bank has established a modern corporate governance structure, including the Shareholders' Meeting, Board of Directors, Supervisory Board, and eight committees under the Board[363] - During the reporting period, the bank fully complied with all code provisions of the Hong Kong Corporate Governance Code[363] IV. Board of Directors The Board, comprising 13 members including independent non-executive directors, is central to the Bank's governance, held 5 meetings to review major matters, and operates through eight specialized committees to enhance efficiency and professionalism - The Board of Directors consists of 13 members, with independent non-executive directors accounting for over one-third, meeting regulatory requirements[372][373] - The Board has eight committees: Strategic Development, Audit, Connected Transactions Control, Risk Management, Nomination, Remuneration, Consumer Rights Protection, and "San Nong" Financial Services Committees[389] V. Supervisory Board The Supervisory Board, consisting of 7 members including employee supervisors, oversees the performance of directors and senior management, financial activities, and internal controls, holding 5 meetings and operating through two committees to fulfill its oversight duties effectively - The Supervisory Board consists of 7 supervisors, with employee supervisors accounting for over one-third, in compliance with regulations[405] - The Supervisory Board has established a Nomination Committee and a Supervision Committee to enhance the professionalism of its oversight work[413] Chapter 10 Risk Management, Internal Control and Internal Audit Risk Management Organizational Structure and System The Group has established a comprehensive risk management system covering front, middle, and back offices, with the Board bearing ultimate responsibility, and an effective credit management system in place for systematic management of various risks, with no major defects found in internal controls - The bank established a comprehensive risk management organizational structure comprising the Board of Directors, Supervisory Board, senior management, and relevant departments[439][440][445][446] - The credit management system implements separation of loan approval and review, and strengthens unified credit granting, business processes, loan classification, and employee risk awareness management for group clients[455] Chapter 11 Environmental, Social and Governance Report 3. Appropriate Business Environment The Group fosters a compliant and stable business environment through robust anti-corruption and anti-money laundering measures, comprehensive risk management, customer rights protection, and information security, while also ensuring sound supply chain procurement management - The bank established a three-line-of-defense anti-money laundering management system to effectively prevent and combat money laundering risks[481] - The "Consumer Rights Protection Management Measures" were formulated and implemented to safeguard customer rights, with 17 complaints received and a 100% resolution rate in 2020[485][488] 5. Green and Low-Carbon Management The Group actively practices green operations and green finance, reducing greenhouse gas emissions by approximately 16% in 2020 through resource conservation and waste management, while directing credit towards green industries and restricting high-pollution sectors Greenhouse Gas Emissions Performance 2019-2020 | Greenhouse Gas Emissions Performance | Unit | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Total Greenhouse Gas Emissions | tons CO2e | 10,838.46 | 13,005.28 | | Emissions Intensity per Square Meter | tons CO2e/sqm | 0.027 | 0.037 | | Emissions Intensity per Employee | tons CO2e/employee | 1.69 | 2.09 | - The Group actively develops green finance, guiding credit funds towards green manufacturing, eco-tourism, and energy-saving and environmental protection industries, and establishing a green finance priority approval mechanism[513][514] 6. Fulfillment of Social Responsibilities The Group actively fulfills social responsibilities by supporting COVID-19 response with over RMB 9.5 million in donations, promoting inclusive finance for "San Nong" and the real economy, and implementing targeted poverty alleviation programs through various models - Assisted in epidemic prevention and control: cumulative donations of over RMB 9.5 million for the year, and provided credit support to SMEs affected by the epidemic[516] - Assisted in targeted poverty alleviation: helped poor villages increase collective income by over RMB 3.4 million through industrial poverty alleviation, and prevented intergenerational poverty through educational programs like "Financial Poverty Alleviation Motivation Class"[518][519] Independent Auditor's Report and Consolidated Financial Statements Independent Auditor's Report The auditor, Shinewing (HK) CPA Limited, issued an unmodified opinion on the Group's 2020 consolidated financial statements, affirming their fair presentation in accordance with IFRS and HK Companies Ordinance, with key audit matters including consolidation basis, loan impairment, goodwill impairment, and IT outsourcing - The auditor issued a standard unmodified audit opinion on the Group's 2020 consolidated financial statements[538] - Key audit matters include: - Basis of Consolidation: Reviewing management's assessment of control over non-material subsidiaries, particularly the effectiveness of concerted action agreements - Impairment of Loans and Advances: Reviewing the assessment, methodology, and assumptions of the Expected Credit Loss (ECL) model - Goodwill Impairment: Challenging the valuation model, key assumptions (e.g., growth rates, discount rates), and input data used in impairment assessments - IT System Outsourcing Arrangements: Assessing the Group's controls over IT outsourcing arrangements and monitoring procedures for service providers[540] Consolidated Statement of Profit or Loss and Other Comprehensive Income For the year ended December 31, 2020, the Group achieved net interest income of RMB 5.1 billion, a 22.4% increase, total operating income of RMB 5.55 billion, a 4.4% increase, and a net profit of RMB 1.2 billion, a 0.3% increase, with basic EPS of RMB 0.25 2020 Consolidated Income Statement Summary | Item (RMB thousand) | 2020 | 2019 | | :--- | :--- | :--- | | Net Interest Income | 5,098,430 | 4,165,427 | | Operating Income | 5,546,764 | 5,311,438 | | Profit Before Tax | 1,541,015 | 1,503,474 | | Profit for the Year | 1,199,663 | 1,195,695 | | Profit Attributable to Owners of the Bank | 1,104,416 | 1,042,146 | | Basic and Diluted Earnings Per Share (RMB) | 0.25 | 0.24 (restated) | Consolidated Statement of Financial Position As of December 31, 2020, the Group's total assets were RMB 200.36 billion, with net loans and advances at RMB 126.57 billion, and total liabilities were RMB 184.11 billion, primarily from RMB 149.76 billion in deposits, with total equity at RMB 16.25 billion 2020 Year-End Consolidated Statement of Financial Position Summary | Item (RMB thousand) | December 31, 2020 | December 31, 2019 | | :--- | :--- | :--- | | Assets | | | | Loans and Advances | 126,574,552 | 93,394,198 | | Investment Securities and Other Financial Assets | 30,499,002 | 39,218,160 | | Total Assets | 200,363,270 | 173,275,544 | | Liabilities | | | | Deposits from Customers | 149,763,189 | 122,840,400 | | Total Liabilities | 184,112,085 | 157,615,368 | | Equity | | | | Total Equity Attributable to Owners of the Bank | 13,671,531 | 13,339,953 | | Total Equity | 16,251,185 | 15,660,176 | Consolidated Statement of Cash Flows For the year ended December 31, 2020, the Group generated RMB 8.0 billion net cash from operating activities, RMB 4.39 billion net cash from investing activities, used RMB 7.95 billion in financing activities, resulting in a net increase of RMB 4.44 billion in cash and cash equivalents 2020 Consolidated Statement of Cash Flows Summary | Item (RMB thousand) | 2020 | 2019 | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 8,004,976 | 7,236,044 | | Net Cash Generated from Investing Activities | 4,388,371 | 1,450,464 | | Net Cash Used in Financing Activities | (7,951,600) | (7,962,418) | | Net Increase in Cash and Cash Equivalents | 4,441,747 | 724,090 | | Cash and Cash Equivalents at Beginning of Year | 16,820,070 | 16,095,980 | | Cash and Cash Equivalents at End of Year | 21,261,817 | 16,820,070 |