CZBANK(SH:601916)2021-03-30 16:00Financial Performance - Annual operating income reached RMB 47.703 billion, with a pre-provision profit of RMB 34.529 billion[10]. - Net profit attributable to shareholders was RMB 12.309 billion, successfully meeting the "13th Five-Year Plan" target[10]. - In 2020, the bank's operating income was CNY 47.703 billion, an increase of 2.89% year-on-year[17]. - The net profit attributable to shareholders was CNY 12.309 billion, a decrease of 4.76% compared to the previous year[17]. - Operating income was RMB 47.703 billion, an increase of RMB 1.339 billion, or 2.89% year-on-year, with net interest income of RMB 37.095 billion, up by RMB 2.433 billion, or 7.02%[40]. - The company’s income tax expense was CNY 1.804 billion, an increase of CNY 0.266 billion or 17.30% year-over-year, with an effective tax rate of 12.56%[69]. - The average return on total assets was 0.65%, and the average return on equity was 10.03%[44]. Asset and Liability Management - Total assets of China Zheshang Bank exceeded RMB 2 trillion by the end of the reporting period[10]. - Total assets reached CNY 2.05 trillion, growing by 13.74% from the end of the previous year[17]. - Total liabilities amounted to CNY 1.92 trillion, up by 14.52% year-on-year[17]. - The balance of deposits reached CNY 1.34 trillion, growing by 16.78%[17]. - As of the end of the reporting period, the total assets of the group reached RMB 2,048.225 billion, an increase of RMB 247.439 billion, or 13.74% year-on-year[39]. - The total liabilities amounted to RMB 1,915.682 billion, increasing by RMB 242.923 billion, or 14.52% year-on-year, with deposits reaching RMB 1,335.636 billion, up by RMB 191.895 billion, or 16.78%[39]. Loan and Credit Management - The total amount of loans and advances was CNY 1.2 trillion, an increase of 16.26%[17]. - The non-performing loan ratio was 1.42%, with a provision coverage ratio of 191.01%[17]. - The total amount of loans and advances issued was RMB 1,197.70 billion, with a non-performing loan rate of 1.42%, compared to RMB 1,030.17 billion and a rate of 1.37% in the previous year[102]. - Corporate loans accounted for 65.80% of the total loan amount, with a non-performing loan amount of RMB 14.64 billion and a non-performing loan ratio of 1.86%[100]. - Personal loans represented 27.81% of the total loan amount, with a non-performing loan amount of RMB 2.40 billion and a non-performing loan ratio of 0.72%, down 0.18 percentage points from the previous year[98]. - The non-performing loan ratio for inclusive small micro-enterprise loans is 0.996%, indicating sustained asset quality[164]. Risk Management - The company implements a comprehensive risk management system, emphasizing a "prudent and stable" risk preference[118]. - The credit risk management aims to control credit risk within a reasonable range, maximizing risk-adjusted comprehensive benefits[119]. - The company has established a unified credit management system for corporate clients, ensuring comprehensive assessment and control of credit limits[121]. - The company actively manages credit risk for small and micro enterprises, implementing unified credit management and risk mitigation measures[122]. - The company has developed a credit evaluation system for personal loans, focusing on risk control and management mechanisms[123]. Technological Innovation and Development - The company has established a Blockchain Technology Application Research Institute, participating in 25 domestic and international standard formulations, and became the first in China to pass all tests by the Ministry of Industry and Information Technology[173]. - The company achieved a cloud system overall cloudization rate of 93%, enhancing its IaaS and PaaS cloud platform construction[174]. - The company has opened 596 API service interfaces, enhancing its technological capabilities and service offerings across various industries[172]. - The company plans to leverage blockchain and IoT technologies to drive innovation and transformation in its operations[188]. Governance and Compliance - The company held 10 board meetings and various committee meetings throughout the reporting period to ensure effective governance[190]. - The company’s governance structure includes a clear separation of powers among the shareholders' meeting, board of directors, supervisory board, and senior management[190]. - The board consists of 15 members, including 2 executive directors, 6 non-executive directors, and 7 independent non-executive directors, ensuring compliance with Hong Kong Listing Rules[194]. - The company has implemented a board diversity policy, considering factors such as gender, age, cultural background, and professional experience to enhance governance and strategic objectives[196]. - The board has reviewed and enhanced internal control systems and risk management practices during the reporting period[197]. Customer Service and Market Expansion - The company has established 183 specialized institutions for small enterprises, with inclusive small micro-enterprise loans totaling CNY 203.51 billion, an increase of CNY 32.41 billion from the beginning of the year, representing a growth rate of 18.94%[164]. - The number of credit clients reached 104,400, an increase of 14,500 clients from the beginning of the year, with a growth rate of 16.13%[164]. - The company has actively promoted the "Six Stabilities and Six Guarantees" policy, enhancing liquidity services in the foreign trade sector[152]. - The company successfully became a market maker for gold and silver futures on the Shanghai Futures Exchange, expanding its financial market business[156].