长沙银行(601577) - 2025 Q2 - 季度财报

Important Notes Statement from the Board of Directors and Senior Management The Board and senior management guarantee the report's authenticity, accuracy, and completeness, while the unaudited financial report was reviewed by Tianjian Certified Public Accountants - The Board of Directors and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, free from false records, misleading statements, or material omissions, and assume individual and joint legal liability[4] - This semi-annual financial report is unaudited but has been reviewed by Tianjian Certified Public Accountants (Special General Partnership)[4] Profit Distribution Plan The Board approved the 2025 semi-annual profit distribution plan, proposing a cash dividend of RMB 2.00 per 10 shares, totaling RMB 804.311 million 2025 Interim Dividend Distribution Plan | Item | Amount/Quantity | | :--- | :--- | | Share Capital Base | 4,021,553,754 shares | | Cash Dividend per 10 Shares | RMB 2.00 (tax inclusive) | | Total Cash Dividend Distribution | RMB 804,311 thousand | Risk Statement and Disclosure The report's forward-looking statements are not substantive commitments, and the Bank faces manageable risks including credit, operational, market, and liquidity risks - Forward-looking statements in this report do not constitute substantive commitments to investors, who should be aware of investment risks[4] - The Bank has no foreseeable material risks; operational risks mainly include credit, operational, market, liquidity, compliance, reputational, and information technology risks, which are effectively managed and controlled[5] Definitions Definition of Terms This section defines key terms used in the report, including company names, regulatory bodies, and financial units, to ensure clarity Key Term Definitions | Term | Meaning | | :--- | :--- | | The Company, The Bank, The Issuer | Bank of Changsha Co., Ltd. | | CSRC | China Securities Regulatory Commission | | Reporting Period | January 1, 2025 to June 30, 2025 | | End of Reporting Period | June 30, 2025 | Company Profile and Key Financial Indicators Company Information This section provides basic information about Bank of Changsha, including its name, legal representative, contact details, and stock information - The company's legal representative is Zhao Xiaozhong[11] - The company's registered address was changed on January 5, 2018, to Block B, Cailin Business Center, 53 Binjiang Road, Yuelu District, Changsha[13] - The company's stock is listed on the Shanghai Stock Exchange with the ticker "Bank of Changsha" and stock code "601577"[15] Honors and Awards Bank of Changsha received multiple honors in H1 2025, ranking 184th in The Banker's Top 1000 World Banks and winning several digital banking innovation awards - Bank of Changsha ranked 184th in The Banker's 2025 Top 1000 World Banks list[17] - Bank of Changsha was rated "Excellent" in Hunan Province's rural revitalization assessment for the fifth consecutive year[17] - The Bank received the "Digital Banking Innovation Award" at the 8th Digital Banking Summit and the "Excellent Practice Award for Digital Transformation" at the 10th BDIE Asia Pacific Banking Digital Innovation Summit17 Key Accounting Data and Financial Indicators for the Last Three Years Operating revenue grew 1.59% to RMB 13.249 billion, while net profit attributable to parent company shareholders rose 5.05% to RMB 4.329 billion Key Accounting Data and Financial Indicators for the Last Three Years (RMB in thousands) | Indicator | Jan-Jun 2025 | Jan-Jun 2024 | YoY Change (%) | Jan-Jun 2023 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 13,249,374 | 13,042,446 | 1.59 | 12,623,919 | | Net Profit Attributable to Parent Company Shareholders | 4,328,903 | 4,120,765 | 5.05 | 3,961,823 | | Basic Earnings Per Share | 1.08 | 1.02 | 5.88 | 0.99 | Key Scale Indicators for the Last Three Years (RMB in thousands) | Indicator | June 30, 2025 | December 31, 2024 | Change from Beginning of Period (%) | December 31, 2023 | | :--- | :--- | :--- | :--- | :--- | | Total Assets | 1,247,385,086 | 1,146,747,921 | 8.78 | 1,020,032,943 | | Total Liabilities | 1,165,090,274 | 1,066,397,629 | 9.25 | 951,713,564 | | Total Deposits (Principal) | 759,184,233 | 722,974,547 | 5.01 | 658,856,634 | | Total Loans and Advances to Customers (Principal) | 602,691,594 | 545,108,561 | 10.56 | 488,391,053 | - Return on weighted average equity (ROE) decreased by 0.27 percentage points to 6.28%[18] Quarterly Key Financial Data for 2025 Q2 operating revenue was slightly lower than Q1, but net profit remained stable, and net cash flow from operating activities turned positive Quarterly Key Financial Data for 2025 (RMB in thousands) | Item | Q1 (Jan-Mar) | Q2 (Apr-Jun) | | :--- | :--- | :--- | | Operating Revenue | 6,809,292 | 6,440,082 | | Operating Profit | 2,598,958 | 2,534,076 | | Net Profit Attributable to Parent Company Shareholders | 2,173,115 | 2,155,788 | | Net Cash Flow from Operating Activities | -52,785,184 | 6,386,784 | Non-recurring Profit and Loss Items and Amounts The net non-recurring profit and loss attributable to parent company owners was -RMB 10.559 million, mainly affected by non-current asset disposals and government grants Non-recurring Profit and Loss Items and Amounts (RMB in thousands) | Non-recurring Profit and Loss Item | Amount | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -4,487 | | Government Grants Recognized in Current Profit or Loss | 3,800 | | Other Non-operating Income and Expenses | -15,100 | | Other Items Meeting the Definition of Non-recurring Profit or Loss | 3,058 | | Subtotal | -12,729 | | Less: Corporate Income Tax Impact | -3,133 | | Minority Interest Impact (After Tax) | 963 | | Net Non-recurring Profit and Loss Attributable to Parent Company Owners | -10,559 | Supplementary Financial Indicators Capital adequacy ratios met regulatory requirements, while the non-performing loan ratio remained stable at 1.17%, though provision coverage and net interest margin declined Supplementary Financial Indicators (%) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Capital Adequacy Ratio | 13.60 | 14.20 | | Tier 1 Capital Adequacy Ratio | 11.30 | 11.81 | | Core Tier 1 Capital Adequacy Ratio | 9.73 | 10.12 | | Non-performing Loan Ratio | 1.17 | 1.17 | | Provision Coverage Ratio | 309.71 | 312.80 | | Loan Provision Ratio | 3.62 | 3.66 | | Net Interest Spread | 1.97 | 2.20 | | Net Interest Margin | 1.87 | 2.11 | Management Discussion and Analysis Industry and Main Business Overview As Hunan's first listed bank, the Bank's main business covers a full range of commercial banking services, including deposits, loans, settlements, and investment banking - The Bank is the first listed bank and the largest local legal-person financial institution in Hunan Province[26] - Its main business includes taking public deposits; granting loans; domestic and international settlements; issuing financial bonds; inter-bank lending; foreign exchange; bank card services; and agency services for insurance and fund sales[26] Discussion and Analysis of Operating Performance In H1 2025, the Bank achieved steady growth with total assets reaching RMB 1.247 trillion and net profit at RMB 4.329 billion, while maintaining a stable NPL ratio - As of the end of the reporting period, the Bank's total assets reached RMB 1,247.385 billion, an increase of 8.78% from the beginning of the year[27] - During the reporting period, the Bank achieved a net profit attributable to parent company shareholders of RMB 4.329 billion, a year-on-year increase of 5.05%[27] - As of the end of the reporting period, the Bank's non-performing loan ratio was 1.17%, remaining unchanged from the beginning of the year[27] Deepening County-level Finance The Bank advanced its county-level finance strategy, resulting in a 6.10% increase in county deposits and a 13.80% rise in county loans - County-level deposits reached RMB 248.468 billion, an increase of RMB 14.294 billion or 6.10% from the beginning of the year[28] - County-level loans amounted to RMB 229.169 billion, an increase of RMB 27.797 billion or 13.80% from the beginning of the year[28] - The number of county-level customers reached 6.9368 million, an increase of 142,700 from the beginning of the year[29] Advancing Retail Business Development The retail business deepened its transformation, achieving an 8.08% growth in personal deposits and a 7.94% increase in retail AUM - Personal deposits totaled RMB 417.724 billion, an increase of RMB 31.235 billion or 8.08% from the beginning of the year[31] - Personal loans amounted to RMB 192.036 billion, an increase of RMB 2.519 billion or 1.33% from the beginning of the year[31] - Retail customer assets under management (AUM) reached RMB 491.330 billion, an increase of RMB 36.122 billion or 7.94% from the beginning of the year[31] Stabilizing Corporate Business Corporate business grew steadily, with corporate loans increasing by 16.87% and green finance loans showing strong growth of 20.60% - Corporate loans reached RMB 404.924 billion, an increase of RMB 58.453 billion or 16.87% from the beginning of the year[34] - Corporate deposits totaled RMB 310.703 billion, an increase of RMB 11.948 billion or 4.00% from the beginning of the year[34] - Green finance loans amounted to RMB 63.714 billion, an increase of RMB 10.885 billion or 20.60% from the beginning of the year[36] - Inclusive loans to small and micro enterprises reached RMB 72.241 billion, an increase of 5.80% from the beginning of the year[37] Sustaining Efforts in Financial Markets The financial markets business achieved high-quality development, with financial investments growing 6.71% and trading financial assets surging 65.07% - Financial investment balance was RMB 523.256 billion, an increase of 6.71% from the beginning of the year[38] - Trading financial assets balance reached RMB 182.429 billion, a significant increase of 65.07% from the beginning of the year[38] - Intermediate business income from wealth management products was RMB 163 million, a year-on-year increase of 11.43%[39] - Assets under custody reached RMB 53.422 billion, an increase of RMB 40.434 billion from the beginning of the year[39] Enhancing Quality and Efficiency with FinTech The Bank advanced its digital finance strategy by establishing a large model lab and building an AI computing pool to empower business innovation - A large model lab and AI computing pool were established, creating generalized AI capabilities in intelligent Q&A, data query, reporting, and image recognition[41] - As of the end of the reporting period, the number of online channel users reached 11.9305 million, with monthly active users (MAU) at 2.7378 million[41][42] - During the reporting period, online banking transaction volume reached RMB 1,786.366 billion[42] Comprehensively Strengthening Risk Control The Bank enhanced risk control by refining credit policies, strengthening product-level risk management, and improving digital risk control capabilities - Refined credit policy management in line with national policy guidance and Hunan's "4×4" modern industrial system[43] - Strengthened product-level risk management by improving monitoring, early warning, and post-review mechanisms[43] - Enhanced digital risk control capabilities and expanded anti-fraud measures to improve risk identification and mitigation[43] Analysis of Core Competitiveness The Bank's core competitiveness is rooted in regional economic growth, sound governance, effective business transformation, and a stable professional team - The Bank benefits from Hunan's strong economic growth, with the province's GDP reaching RMB 2.617 trillion in H1 2025, a 5.6% increase[46][47] - The Bank has a high-quality, diversified, and balanced shareholder structure, forming a mixed-ownership model with state-owned capital as the mainstay[48] - The Bank has become a leading local financial institution in Hunan with the most comprehensive business qualifications, deepest network, and strongest customer base[49] - The Bank leverages its local advantages with a short decision-making chain and high efficiency to enhance market insight and differentiated services[50] - The Bank's asset-liability structure is increasingly reasonable, with a high and stable proportion of deposits and loans, and a relatively low cost of funds[52] - The Bank adheres to a "talent-driven" strategy, continuously invigorating the organization and its employees through a comprehensive value management system[53] Key Operating Performance The Bank's operating revenue grew 1.59% to RMB 13.249 billion, driven by an 11.78% increase in non-interest income, while the NPL ratio remained stable at 1.17% - During the reporting period, the Bank's operating revenue was RMB 13.249 billion, a YoY increase of 1.59%; net profit attributable to parent company shareholders was RMB 4.329 billion, a YoY increase of 5.05%[54] - The Bank's net interest income was RMB 9.659 billion, a YoY decrease of 1.74%, accounting for 72.90% of operating revenue[57] - The Bank's net non-interest income was RMB 3.590 billion, a YoY increase of 11.78%, mainly driven by growth in investment income and net fee and commission income[72] - As of the end of the reporting period, the Bank's total assets reached RMB 1,247.385 billion, an increase of 8.78% from the beginning of the year[91] - As of the end of the reporting period, the Bank's total liabilities were RMB 1,165.090 billion, an increase of 9.25% from the beginning of the year[112] - As of the end of the reporting period, the Bank's non-performing loan ratio was 1.17%, flat with the beginning of the year, while the provision coverage ratio decreased by 3.09 percentage points to 309.71%[121] Income Statement Analysis Operating revenue grew 1.59% to RMB 13.249 billion, supported by a 118.82% surge in investment income that offset a 1.74% decline in net interest income - The Bank's net interest income was RMB 9.659 billion, a year-on-year decrease of 1.74%, accounting for 72.90% of operating revenue[57] - The Bank's net interest margin was 1.87%, a year-on-year decrease of 0.25 percentage points; net interest spread was 1.97%, a year-on-year decrease of 0.30 percentage points[59][60] - The Bank achieved an investment income of RMB 3.184 billion, a year-on-year increase of 118.82%[77] - The Bank recorded a gain from changes in fair value of -RMB 548 million, a year-on-year decrease of 150.18%, mainly due to reduced unrealized gains on bond and fund investments[79] - The Bank's operating and administrative expenses were RMB 3.565 billion, a year-on-year increase of 1.37%[83] - The Bank recognized credit and other asset impairment losses of RMB 4.421 billion, a year-on-year increase of 2.39%[85] Asset Analysis Total assets grew 8.78% to RMB 1.247 trillion, driven by a 10.56% increase in loans and a 65.07% surge in trading financial assets - As of the end of the reporting period, the Bank's total assets were RMB 1,247.385 billion, an increase of 8.78% from the beginning of the year, mainly due to increased lending and investment in trading financial assets[91] - The Bank's total loans and advances to customers (principal) amounted to RMB 602.692 billion, an increase of 10.56% from the beginning of the year[93] - Corporate loans amounted to RMB 404.924 billion, an increase of 16.87%, accounting for 67.19% of total loans[93] - The Bank's trading financial assets balance was RMB 182.429 billion, an increase of 65.07% from the beginning of the year, primarily in bonds, funds, and wealth management products[96] - Total financial investments reached RMB 523.256 billion, an increase of 6.71% from the beginning of the year[101] Liability Analysis Total liabilities grew 9.25% to RMB 1.165 trillion, primarily driven by a 5.01% increase in customer deposits and growth in borrowings from the central bank - As of the end of the reporting period, the Bank's total liabilities were RMB 1,165.090 billion, an increase of 9.25% from the beginning of the year, mainly due to growth in deposits and borrowings from the central bank[112] - The Bank's total deposits (principal) amounted to RMB 759.184 billion, an increase of 5.01% from the beginning of the year[114] - Borrowings from the central bank increased by 62.02%[113] Asset Quality Analysis The non-performing loan ratio remained stable at 1.17%, while the provision coverage ratio decreased slightly to 309.71% - As of the end of the reporting period, the Bank's non-performing loan balance was RMB 7.046 billion, with an NPL ratio of 1.17%, unchanged from the beginning of the year; the provision coverage ratio was 309.71%, a decrease of 3.09 percentage points[121] - The NPL ratio for corporate loans was 0.59%, while the NPL ratio for personal loans was 2.20%[124][125] - As of the end of the reporting period, the Bank's overdue loans totaled RMB 13.405 billion, accounting for 2.22% of total loans[135] - As of the end of the reporting period, the total loan balance of the top ten loan customers was RMB 40.260 billion, accounting for 6.68% of total loans and 41.66% of net capital[133][134] Analysis of Cash Flow Statement Changes The period saw a net cash outflow from operating activities of RMB 46.398 billion and net inflows from investing and financing activities Net Cash Flow (RMB in thousands) | Item | Jan-Jun 2025 | Jan-Jun 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -46,398,400 | -51,046,478 | N/A | | Net Cash Flow from Investing Activities | 39,854,830 | -15,477,497 | N/A | | Net Cash Flow from Financing Activities | 19,086,500 | 67,935,538 | -71.90 | Analysis of Changes in Shareholders' Equity Shareholders' equity increased by 2.42% to RMB 82.295 billion, primarily due to net profit realization and profit distribution during the period Changes in Shareholders' Equity (RMB in thousands) | Item | June 30, 2025 | December 31, 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Equity Attributable to Parent Company Shareholders | 79,943,422 | 78,013,645 | 2.47 | | Minority Interest | 2,351,390 | 2,336,647 | 0.63 | | Total Shareholders' Equity | 82,294,812 | 80,350,292 | 2.42 | | Retained Earnings | 36,941,317 | 34,301,467 | 7.70 | Capital Management All capital adequacy ratios met regulatory requirements, with the Core Tier 1, Tier 1, and overall capital adequacy ratios at 9.73%, 11.30%, and 13.60% respectively Capital Adequacy Ratios (%) | Item | June 30, 2025 | | :--- | :--- | | Core Tier 1 Capital Adequacy Ratio | 9.73 | | Tier 1 Capital Adequacy Ratio | 11.30 | | Capital Adequacy Ratio | 13.60 | - The leverage ratio was 6.12%[150] Explanation of Items in Financial Statements with Changes Exceeding 30% Significant fluctuations were noted in investment income, fair value changes, and trading financial assets, mainly due to bond investment activities and market value changes - Investment income increased by 118.82% YoY, primarily due to higher returns from bond investments[152] - Gains from changes in fair value decreased by 150.18% YoY, mainly due to reduced unrealized gains on certain trading financial assets[152] - Trading financial assets increased by 65.07%, mainly due to an increase in the scale of bond investments[152] - Borrowings from the central bank increased by 62.02%, reflecting increased borrowing from the central bank[152] - Trading financial liabilities increased by 274.22%, mainly due to an increase in bond lending activities[152] Off-Balance Sheet Items with Significant Impact on Financial Position and Operating Results The Bank's off-balance sheet items included credit commitments of RMB 91.96 billion and capital expenditure commitments of RMB 449 million - Total credit commitments amounted to RMB 91,959,538 thousand, including bankers' acceptances of RMB 39,404,333 thousand[154] - Capital expenditure commitments totaled RMB 448,962 thousand[155] - Assets pledged as collateral amounted to RMB 135,524,423 thousand[155] Risk Management during the Reporting Period The Bank maintained a comprehensive risk management system, effectively controlling credit, operational, market, liquidity, and other key risks - The Bank continuously optimized credit risk management by refining policies, improving product risk monitoring, and enhancing digital risk control capabilities[157][158] - The Bank has established a complete operational risk management system adapted to its business nature, scale, and complexity, ensuring stable operations[160] - The Bank's liquidity risk indicators remained healthy, with a liquidity coverage ratio of 258.33% and a net stable funding ratio of 130.35%[163][164] - The Bank enhanced compliance management through internal controls, digital compliance tools, and fostering a strong compliance culture[165] - During the reporting period, information technology risk was well-controlled, with no major incidents and an availability rate of over 99.99% for critical information systems[168] Investment Analysis Total external equity investments amounted to RMB 1.897 billion, primarily consisting of investments in subsidiaries, with no major new investments during the period Overview of External Equity Investments (RMB in thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Investment in Subsidiaries | 1,477,691 | 1,477,691 | | Other Equity Investments | 419,433 | 407,671 | | Total | 1,897,124 | 1,885,362 | - The Bank had no major equity investments during the reporting period[172] - The Bank had no major non-equity investments during the reporting period[173] Major Asset and Equity Sales No major sales of assets or equity occurred during the reporting period - The Bank had no major asset or equity sales during the reporting period[174] Analysis of Major Holding and Associated Companies The Bank's main subsidiaries include consumer finance and village banks, with no single subsidiary contributing over 10% to the Bank's net profit - The Bank's main holding subsidiaries include Hunan Changyin 58 Consumer Finance Co., Ltd., Xiangxi Changhang Village Bank Co., Ltd., and Yizhang Changhang Village Bank Co., Ltd[175] - The Bank plans to merge with Yizhang Village Bank, with the proposal approved by the Board of Directors and shareholders' meeting[175] - During the reporting period, no major subsidiary or associated company had a net profit impact of 10% or more on the Bank[176] Tiered Management and Branch Distribution As of the reporting period end, the Bank operated 411 branches, with 166 located in the Changsha area and others spread across Hunan and Guangzhou - As of the end of the reporting period, the Bank had a total of 411 branches[177] - There are 166 branches in the Changsha area, including 144 sub-branches, 17 community sub-branches, and 5 small enterprise credit centers[177] - The Bank also has 13 branches and their 232 subordinate institutions in other cities within Hunan Province and in Guangzhou[177] Information on Structured Entities Details regarding structured entities controlled by the Bank are provided in the notes to the financial report - For information on structured entities controlled by the Bank, please refer to Note "VI. Interests in Other Entities" in the financial report[179] Performance of Wealth Management, Securitization, Custody, Trust, and Other Businesses The Bank's wealth management and custody businesses grew, with assets under custody increasing significantly, while asset securitization activity was dormant - As of the end of the reporting period, the balance of wealth management products was RMB 51.592 billion, generating intermediate business income of RMB 163 million[180] - As of the end of the reporting period, the outstanding balance of asset-backed securities issued by the Bank was zero[181] - As of the end of the reporting period, assets under custody reached RMB 53.422 billion, an increase of RMB 40.434 billion from the beginning of the year[39] - The outstanding scale of agency trust business was RMB 4.95 billion, and 3 insurance trust products were established[184] - As of the end of the reporting period, the number of wealth management clients increased by 8.15% to 1.4328 million, and retail customer assets under management grew by 7.94% to RMB 491.330 billion[186] Innovative Business Products The Bank launched innovative products across retail, corporate, and financial market segments, while also establishing a large model innovation lab to drive AI applications - In retail banking, innovative projects such as the "Changsha Youth Card" were launched[188] - In corporate banking, a new bill management function was created, completely restructuring the bill business segment[189] - In financial markets, a traffic-driven approach was integrated with bond, bill, and foreign exchange businesses to expand scale and optimize operations[189] - The Bank established a large model innovation lab to promote research and application of large model technology in financial scenarios[190] Potential Risks The Bank faces dual challenges from a complex external environment and the pressures of transformation common to small and medium-sized banks - The external environment is characterized by a combination of geopolitical risks, domestic economic transition, and policy challenges[191] - Small and medium-sized banks face reform pressures, including declining asset yields, rigid liability costs, competition from large banks, and the need for digital transformation[191][192] Progress on the "Improving Quality, Increasing Efficiency, and Emphasizing Returns" Action Plan The Bank advanced its action plan by focusing on key financial areas, improving business quality, enhancing shareholder returns, and increasing market value recognition - Focused on the "Five Key Areas": tech finance loan balance reached RMB 86.721 billion; green finance loan balance grew 20.60% to RMB 63.714 billion; inclusive SME loan balance grew 5.80% to RMB 72.241 billion[193][194] - Business operating quality improved: operating revenue increased by 1.59% to RMB 13.249 billion, and net profit attributable to parent company shareholders grew by 5.05% to RMB 4.329 billion[196] - Continuously enhanced shareholder returns: implemented cash dividends for 7 consecutive years and approved an interim dividend of RMB 804 million for 2025[197] - Increased market value recognition: conducted 36 investor research activities, engaging with over 80 institutions[198] - Innovated in information disclosure: published its first Sustainability (ESG) Report, leading to an upgrade in its Wind ESG rating from BB to A[199] Corporate Governance, Environment, and Society Corporate Governance The Bank has refined its modern corporate governance structure and reformed its supervisory mechanism by abolishing the supervisory board and transferring its duties - The Bank continuously improves its modern corporate governance structure, featuring a shareholders' meeting, a board of directors, and senior management, and has actively reformed its supervisory mechanism[201] - As of the disclosure date, the Board of Directors consists of 11 members, including 4 independent directors and 1 employee director[202] - During the reporting period, the Board of Directors held 6 meetings and reviewed 64 proposals[202] - The Bank no longer has a supervisory board; its former duties are now exercised by the Board's Audit Committee[203] Changes in Directors, Supervisors, and Senior Management The Bank completed the election and appointment of a new Board and senior management team, and the supervisory board members departed following its dissolution - Zhao Xiaozhong was elected Chairman, and Zhang Man was appointed as President[205] - Peng Jingen was appointed as Board Secretary and Chief Risk Officer[205] - On May 21, 2025, the shareholders' meeting approved the abolition of the supervisory board, and its members departed upon the expiration of their terms[206] Interim Profit Distribution Plan The Board approved a 2025 interim dividend of RMB 2.00 per 10 shares, totaling RMB 804.311 million Proposed Interim Profit Distribution Plan for the Semi-Annual Period | To Distribute or Convert | Yes | | :--- | :--- | | Bonus Shares per 10 Shares | - | | Cash Dividend per 10 Shares (RMB) (tax inclusive) | 2.00 | | Shares Converted from Capital Reserve per 10 Shares | - | - The Bank proposes to distribute a 2025 interim cash dividend of RMB 2.00 per 10 shares (tax inclusive) based on the total share capital as of June 30, 2025, totaling RMB 804.311 million[208] Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentives No equity incentive plans, employee stock ownership plans, or other employee incentive measures were implemented during the reporting period - During the reporting period, the Bank did not implement any equity incentive plans, employee stock ownership plans, or other employee incentive measures[209] Employee Remuneration Policy and Training The Bank adheres to a market-oriented remuneration system that links pay to performance and ensures salary growth does not exceed profit growth - The Bank follows a market-oriented remuneration philosophy of "efficiency first, fairness considered," establishing a value-oriented system based on ability, performance, and job matching[210] - The total salary budget is determined annually based on profit growth, ensuring that salary growth does not exceed profit growth, with basic salary not exceeding 35% of the total[212] - The Bank has implemented a deferred payment and clawback mechanism for performance-based remuneration for senior management and key risk-related positions[215][216] - The Bank actively implements a "talent-driven" strategy, building a systematic talent development system to support employee growth[217] Environmental Information Disclosure While not a mandatory disclosure entity, the Bank actively promotes green finance and sustainable development, with green loans growing 20.60% - The Bank is not listed as a company required to disclose environmental information by law[218] - The Bank places great importance on environmental protection and sustainable development, actively practicing green and low-carbon principles[219][220] - As of the end of the reporting period, the green finance loan balance was RMB 63.714 billion, an increase of 20.60% from the beginning of the year[220] - The Bank published its first Sustainability (ESG) Report and has built a green operational system encompassing green office, travel, and lifestyle practices[221] Efforts in Consolidating Poverty Alleviation Achievements and Rural Revitalization The Bank supported rural revitalization with agriculture-related loans growing 12.90% and continued its targeted poverty alleviation and social charity initiatives - As of the end of the reporting period, the agriculture-related loan balance was RMB 69.564 billion, an increase of 12.90% from the beginning of the year[222] - The Bank has created a distinctive credit product system for the Hunan region, such as "Xiangcun Express Loan" and "Xiangnong Express Loan"[223] - A dedicated work team was dispatched to Hualin Village to support its development in infrastructure and characteristic industries[224][225] - The Bank actively engages in public welfare projects, including judicial aid and educational support, to assist disadvantaged groups[226][227] - The "Bank of Changsha · Happy Home Volunteer Team" was named the "Best Volunteer Service Organization in Hunan Province"[231] Consumer Rights Protection The Bank strengthened consumer rights protection by embedding it into its corporate governance and product development processes and conducting extensive financial education - The Bank integrates consumer rights protection into its corporate governance, corporate culture, and business development strategy[232] - Consumer protection reviews are mandatory in the product and service development process, with 506 reviews conducted during the period, achieving 100% coverage and 100% adoption of recommendations[234] - During the reporting period, 1,095 online and offline educational activities were conducted, reaching 2.184 million consumers to improve financial literacy and risk awareness[236] Important Matters Fulfillment of Commitments The Bank and related parties have strictly fulfilled all commitments made during the initial public offering, including share lock-up and transfer restrictions - Commitments include a 36-month lock-up period for certain shareholders, with subsequent annual sales not exceeding 15% of their holdings[238] - Certain shareholders committed that if they sell shares within two years after the lock-up period, the price will not be lower than the issue price[238] - Directors, supervisors, and senior management are restricted from transferring more than 25% of their total shares annually while in office and are prohibited from transferring any shares within six months of their departure[238] Non-operational Fund Occupation by Controlling Shareholders and Their Affiliates No instances of non-operational fund occupation by controlling shareholders or their affiliates occurred during the reporting period - There were no cases of non-operational fund occupation by controlling shareholders or other related parties during or prior to the reporting period[239] Irregular Guarantees No irregular guarantees were provided by the Bank during the reporting period - There were no cases of irregular guarantees provided by the Bank during or prior to the reporting period[240] Bankruptcy and Reorganization The Bank was not involved in any bankruptcy or reorganization proceedings during the reporting period - The Bank was not subject to any bankruptcy or reorganization proceedings during the reporting period[241] Major Litigation and Arbitration The Bank was the plaintiff in 74 pending litigation cases with a total amount of RMB 5.663 billion and had no major litigation as a defendant - As of the end of the reporting period, the Bank was the plaintiff in 74 unresolved litigation cases with claims over RMB 10 million, totaling RMB 5,662,938.5 thousand[242] - The Bank was a third party in 1 unresolved case with a claim over RMB 10 million, involving RMB 13,739.7 thousand[242] - The Bank had no unresolved cases as a defendant with claims over RMB 10 million[242] Violations, Penalties, and Rectifications Involving the Company, Directors, Supervisors, Senior Management, and Controlling Shareholders The Bank, which has no controlling shareholder, and its management were not subject to any investigations, penalties, or disciplinary actions during the period - The Bank has no controlling shareholder or actual controller[243] - During the reporting period, the Bank was not subject to any legal investigations, criminal penalties, administrative penalties from the CSRC, or disciplinary actions from the stock exchange[243] - During the reporting period, no directors, supervisors, or senior management members were subject to compulsory measures, criminal penalties, CSRC investigations, or stock exchange disciplinary actions[243] Statement on the Integrity of the Company, its Controlling Shareholder, and Actual Controller The Bank maintained a strong record of integrity with no major defaults or unfulfilled court judgments and has no controlling shareholder - During the reporting period, the Bank operated with integrity and had no unfulfilled court judgments or significant overdue debts[244] - The Bank has no controlling shareholder or actual controller[244] Related-Party Transactions Major related-party transactions included credit lines of RMB 8.9 billion and RMB 886 million extended to two affiliated companies under fair market conditions - The Bank granted a credit line of RMB 8.9 billion to Hunan Changyin 58 Consumer Finance Co., Ltd. for a one-year term on a credit basis[246] - The Bank granted a credit line of RMB 886 million to Hunan Friendship & Apollo Holding Co., Ltd. for a one-year term, secured by mortgage, pledge, and guarantee[246] - As of the end of the reporting period, the loan balance to related natural persons was RMB 174,625.6 thousand[247] Major Contracts and Their Performance No major custody, contracting, leasing, or other significant contracts that would materially impact profits were executed during the reporting period - The Bank had no major custody, contracting, or leasing matters during the reporting period[248] - Apart from guarantee business within its approved scope, the Bank had no other major guarantee matters[249] - There were no contracts during the reporting period that contributed to a profit or loss exceeding 10% of the Bank's total profit[250] Appointment and Dismissal of Accounting Firm The Bank reappointed Tianjian Certified Public Accountants (Special General Partnership) as its auditor for the 2025 fiscal year - The shareholders' meeting approved the reappointment of Tianjian Certified Public Accountants (Special General Partnership) as the Bank's auditor for the 2025 fiscal year[251] Analysis of Changes in Accounting Policies and Estimates Details on changes in accounting policies and estimates are provided in the "Financial Report" section of this document - For an analysis of the reasons for and impact of changes in accounting policies and estimates, please refer to "III. Significant Accounting Policies and Estimates - (XXXI) Changes in Significant Accounting Estimates" in the "Financial Report"[252][253] Other Important Matters The Bank received approval to issue up to RMB 15 billion in new financial bonds in 2025 and is awaiting approval for an RMB 11 billion A-share convertible bond issuance - The Bank is authorized to issue financial bonds with a new balance not exceeding RMB 15 billion in 2025 and a year-end balance not exceeding RMB 65 billion[254] - The Bank has already issued several tranches of financial bonds in 2025, including a RMB 10 billion general bond, a RMB 5 billion SME loan bond, and a RMB 4 billion technology innovation bond[254] - The Bank plans to publicly issue up to RMB 11 billion in A-share convertible bonds, which is currently under review by the Shanghai Stock Exchange[254] Changes in Share Capital and Shareholders Changes in Share Capital The Bank's total share count and capital structure remained unchanged during the reporting period - The Bank's total number of shares and share capital structure did not change during the reporting period[256] - There was no change in the total number of the Bank's common shares during the reporting period[257] - There was no change in the number of the Bank's restricted shares during the reporting period[258] Shareholder Information As of the period end, the Bank had 33,515 common shareholders, with Changsha Finance Bureau as the largest shareholder holding 16.82% - As of the end of the reporting period, the total number of common shareholders was 33,515[259] - Changsha Municipal Finance Bureau is the largest shareholder, holding 676,413,701 shares, which accounts for 16.82% of the total share capital[261][270] - Changsha Real Estate (Group) Co., Ltd. has pledged 84,500,000 shares, and Changsha Tongcheng Industrial (Group) Co., Ltd. has pledged 75,100,000 shares[261] - The shareholdings of current and former directors, supervisors, and senior management did not change during the reporting period[269] - Hunan Communications Industry Services Co., Ltd. and its wholly-owned subsidiary collectively hold 501,468,304 shares, representing 12.47% of the total share capital[271] Changes in Preferred Shares and Shareholders The Bank's "Changyin You 1" preferred shares have an adjusted dividend rate of 3.84%, with 28 shareholders at the end of the period - The Bank's preferred shares (code: 360038, name: Changyin You 1) were issued in December 2019 and listed in January 2020 at a price of RMB 100 per share[275] - Effective from December 25, 2024, the dividend rate for the second interest period of Changyin You 1 was adjusted to 3.84%[275] - As of the end of the reporting period, the total number of preferred shareholders was 28[276] - No redemption or conversion of preferred shares occurred during the reporting period[280] Financial Report Notes to the Financial Report The Bank's 2025 semi-annual financial report is unaudited but has been reviewed by Tianjian Certified Public Accountants (Special General Partnership) - The Bank's 2025 semi-annual financial report is unaudited[284] - Tianjian Certified Public Accountants (Special General Partnership) has reviewed the Bank's 2025 semi-annual financial report and issued a review report[284] Review Report Tianjian Certified Public Accountants found no indication that the financial statements were not prepared in accordance with accounting standards or did not fairly reflect the Bank's financial position - Tianjian Certified Public Accountants (Special General Partnership) reviewed the semi-annual financial statements of Bank of Changsha Co., Ltd. for 2025[293] - Based on the review, nothing has come to the accountants' attention that causes them to believe the financial statements are not prepared in accordance with enterprise accounting standards or do not fairly reflect the financial position, operating results, and cash flows of Bank of Changsha in all material respects[293] Consolidated and Parent Company Balance Sheets As of June 30, 2025, consolidated total assets were RMB 1.247 trillion, and total liabilities were RMB 1.165 trillion Consolidated Balance Sheet (RMB in thousands) | Item | Closing Balance | Opening Balance | | :--- | :--- | :--- | | Total Assets | 1,247,385,086 | 1,146,747,921 | | Total Liabilities | 1,165,090,274 | 1,066,397,629 | | Total Shareholders' Equity | 82,294,812 | 80,350,292 | Parent Company Balance Sheet (RMB in thousands) | Item | Closing Balance | Opening Balance | | :--- | :--- | :--- | | Total Assets | 1,190,083,495 | 1,093,774,401 | | Total Liabilities | 1,111,699,081 | 1,017,303,381 | | Total Shareholders' Equity | 78,384,414 | 76,471,020 | Consolidated and Parent Company Income Statements For H1 2025, consolidated total operating income was RMB 13.249 billion, with a net profit attributable to the parent company of RMB 4.329 billion Consolidated Income Statement (RMB in thousands) | Item | Current Period | Prior Period | | :--- | :--- | :--- | | Total Operating Income | 13,249,374 | 13,042,446 | | Net Profit | 4,356,124 | 4,232,065 | | Net Profit Attributable to Parent Company Owners | 4,328,903 | 4,120,765 | Parent Company Income Statement (RMB in thousands) | Item | Current Period | Prior Period | | :--- | :--- | :--- | | Total Operating Income | 11,931,601 | 11,389,619 | | Net Profit | 4,312,520 | 4,006,375 | Consolidated and Parent Company Cash Flow Statements For H1 2025, consolidated net cash outflow from operating activities was RMB 46.398 billion, while investing and financing activities generated net inflows Consolidated Cash Flow Statement (RMB in thousands) | Item | Current Period | Prior Period | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -46,398,400 | -51,046,478 | | Net Cash Flow from Investing Activities | 39,854,830 | -15,477,497 | | Net Cash Flow from Financing Activities | 19,086,500 | 67,935,538 | Parent Company Cash Flow Statement (RMB in thousands) | Item | Current Period | Prior Period | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -46,536,917 | -52,490,720 | | Net Cash Flow from Investing Activities | 37,422,420 | -15,244,515 | | Net Cash Flow from Financing Activities | 19,302,257 | 68,549,600 | Consolidated and Parent Company Statements of Changes in Shareholders' Equity As of June 30, 2025, consolidated total shareholders' equity reached RMB 82.295 billion, an increase of RMB 1.945 billion from the beginning of the year Consolidated Statement of Changes in Shareholders' Equity (RMB in thousands) | Item | Opening Balance | Change during Period | Closing Balance | | :--- | :--- | :--- | :--- | | Total Shareholders' Equity | 80,350,292 | 1,944,520 | 82,294,812 | | Equity Attributable to Parent Company Shareholders | 78,013,645 | 1,929,777 | 79,943,422 | Parent Company Statement of Changes in Shareholders' Equity (RMB in thousands) | Item | Opening Balance | Change during Period | Closing Balance | | :--- | :--- | :--- | :--- | | Total Shareholders' Equity | 76,471,020 | 1,913,394 | 78,384,414 | Notes to the Financial Statements The notes provide detailed disclosures on accounting policies, financial instrument risks, fair value, related-party transactions, and capital management - The Bank's financial statements are prepared on a going concern basis, with RMB as the functional currency[312][316] - Financial assets are classified at initial recognition into three categories: amortized cost, fair value through other comprehensive income, and fair value through profit or loss[323] - The Bank recognizes impairment provisions for financial assets based on an expected credit loss model[337] - The main financial instrument risks faced by the Group include credit risk, market risk, liquidity risk, and operational risk[514] - The Group's capital adequacy ratios are calculated in accordance with the "Capital Management Rules for Commercial Banks" and meet all regulatory requirements[569][570] Directory of Documents for Inspection List of Documents for Inspection This section lists the reference documents for the semi-annual report, including signed financial statements and the original review report from the accounting firm - Financial statements signed and sealed by the Bank's legal representative, chief financial officer, and head of the accounting department[286] - The original review report from the accounting firm, sealed and signed by the certified public accountants[286] - The original semi-annual report signed by the Chairman of the Board[286] - Originals of all company documents and announcements publicly disclosed during the reporting period[286]