HZBank(SH:600926)2018-04-26 16:00Financial Performance - In 2017, the total operating income reached RMB 14,121,518 thousand, an increase of 2.83% compared to RMB 13,732,807 thousand in 2016[24]. - The net profit attributable to shareholders was RMB 4,550,365 thousand, reflecting a growth of 13.17% from RMB 4,020,927 thousand in the previous year[24]. - Total assets at the end of 2017 amounted to RMB 833,338,728 thousand, representing a 15.67% increase from RMB 720,424,176 thousand in 2016[24]. - The total loan amount increased by 15.10% to RMB 283,834,844 thousand from RMB 246,607,678 thousand in 2016[24]. - The total deposits rose by 21.81% to RMB 448,626,861 thousand compared to RMB 368,307,031 thousand in 2016[25]. - The basic earnings per share for 2017 was RMB 1.24, up from RMB 1.20 in 2016, marking a growth of 3.33%[26]. - The weighted average return on equity decreased to 11.34% in 2017 from 11.83% in 2016, a decline of 0.49 percentage points[26]. - The net cash flow from operating activities was RMB 64,104,029 thousand, down 22.98% from RMB 83,233,104 thousand in 2016[24]. - The total liabilities increased by 14.61% to RMB 781,507,770 thousand from RMB 681,862,481 thousand in 2016[25]. - The net assets attributable to shareholders rose by 34.41% to RMB 51,830,958 thousand compared to RMB 38,561,695 thousand in 2016[25]. Risk Management - The company has no foreseeable major risks, with existing risks primarily being credit risk, market risk, liquidity risk, and operational risk[10]. - The company has implemented various measures to effectively manage and control operational risks[10]. - The company maintained a "zero risk event" record in its bill business, reflecting strong risk management capabilities[51]. - The company is committed to improving risk management by consolidating its three lines of defense and enhancing credit risk management practices[161]. - The company has strengthened risk management for group customer credit, setting stricter limits than regulatory standards and enhancing monitoring[195]. Awards and Recognition - The company received the "2017 Annual Top Ten Urban Commercial Banks" award and the "China's Top 100 Enterprises Award" from the China Top 100 Listed Companies Summit Forum[21]. - The company ranked 209th in the "2017 Global Bank 1000" list by The Banker magazine, improving by 10 places from the previous year[21]. - The company received the "2017 National Banking Industry Wealth Management Information Registration Work Outstanding Unit" award for its effective management practices[53]. Corporate Governance - The report was audited by Ernst & Young Hua Ming, which issued a standard unqualified opinion[7]. - The company’s board of directors approved the annual report on April 26, 2018, with 10 out of 11 directors present[6]. - The company has no non-operating fund occupation by controlling shareholders and their related parties[9]. - The company has a commitment to maintaining the accuracy and completeness of the financial report, as stated by its management[6]. Customer and Market Expansion - The company served 4,356 technology and cultural enterprises, an increase of 812 clients or 22.91% compared to the beginning of the year[41]. - The company’s retail active customer base grew to 3.4042 million, an increase of 9.55% from the previous year[46]. - The company launched three consumer credit platforms, achieving a retail financial loan balance of 63.412 billion yuan, up 14.81% from the end of 2016[44]. - The company is focusing on retail-oriented strategies to expand its customer base, emphasizing consumer credit, wealth management, community finance, and financial technology[159]. Financial Products and Services - The company’s personal wealth management product sales reached 562.501 billion yuan, a year-on-year increase of 31.89%[46]. - The company developed a micro-loan product system, issuing a total of 1.203 billion yuan in tax loans and 7.129 billion yuan in cloud mortgage loans during the year[48]. - The company’s bond underwriting total reached 275.401 billion yuan, with notable rankings in various categories[50]. - The company achieved a year-end balance of existing wealth management products of CNY 198.583 billion, a decrease of 16.83% year-on-year[52]. Future Outlook and Strategy - The company aims for total assets to reach 910 billion RMB by the end of 2018, representing a growth of approximately 9% compared to the end of 2017[156]. - The company targets a net profit growth of over 12% for 2018[156]. - The company plans to maintain a non-performing loan ratio below 1.58%[156]. - The company is focusing on six major business strategies, including enhancing retail banking and developing wealth management products[152]. - The company is committed to digital innovation, including the development of direct banking and community financial platforms[153]. Investment and Capital Management - The company issued a secondary capital bond of 8 billion RMB with a coupon rate of 4.80%, raising a net amount of 7,985,145,000 RMB for capital supplementation[148]. - The company raised 10 billion RMB through a non-public offering of preferred shares with a dividend rate of 5.20%, resulting in a net amount of 9,979,208,508.96 RMB for other tier 1 capital[148]. - The company is actively seeking to expand its funding sources and reduce liability costs through innovative deposit organization methods and marketing strategies[160]. Asset Management - The company is enhancing its asset management capabilities by establishing a collaborative mechanism and improving investment research capabilities[160]. - The company’s investment in associates amounted to 1.024 billion RMB, an increase from 996.041 million RMB in the previous year[127]. - The company holds a 41% stake in Hangzhou Consumer Finance Co., Ltd., with total assets of RMB 1.671 billion and a net asset of RMB 456 million, reporting a revenue of RMB 49.91 million and a net loss of RMB 34.60 million for the reporting period[133].