CZBANK(HK:02016)2023-08-29 11:06Financial Performance - China Zheshang Bank reported an unaudited mid-term performance for the six months ending June 30, 2023[2]. - In the first half of 2023, the company's operating income reached 33.248 billion yuan, a year-on-year increase of 4.63%[11]. - Net profit attributable to shareholders was 7.743 billion yuan, reflecting a year-on-year growth of 11.03%[11]. - Total assets amounted to 2.91 trillion yuan, up 11.07% from the end of the previous year[11]. - The total amount of loans and advances was 1.65 trillion yuan, increasing by 8.40% compared to the end of last year[11]. - The non-performing loan ratio stood at 1.45%, with a provision coverage ratio of 182.42%, indicating an improvement in asset quality[11]. - The capital adequacy ratio was 11.83%, with a tier 1 capital adequacy ratio of 9.57% and a core tier 1 capital adequacy ratio of 8.18%, showing an increase in capital adequacy[11]. - Operating revenue for the first half of 2023 reached RMB 33,248 million, an increase of 4.63% compared to RMB 31,778 million in the same period of 2022[18]. - The average return on total assets was 0.58%, while the average return on equity was 10.71%[29]. - The cost-to-income ratio increased to 27.96%, up 3.87 percentage points year-on-year[29]. Risk Management - The company is subject to various risks, and future plans are not commitments to investors[5]. - The company emphasizes the importance of risk awareness regarding forward-looking statements[5]. - The company maintains a prudent risk appetite, focusing on "small and diversified" credit principles to support the real economy[78]. - The company has established a comprehensive risk management system, with the board of directors ultimately responsible for risk management[78]. - Credit risk management aims to keep credit risk within a bearable range, maximizing comprehensive benefits adjusted for risk[79]. - The company aims to control market risk within a reasonable range, maximizing comprehensive benefits adjusted for risk[84]. - The company employs various market risk measurement methods, including duration analysis and value at risk (VaR), to manage market risk effectively[84]. Corporate Governance - The company has implemented a governance structure that integrates party leadership with corporate governance, improving operational effectiveness[143]. - The board consists of 14 members, including 2 female directors and 12 members with postgraduate degrees, enhancing diversity[146]. - The company received the highest rating of A for information disclosure from the Shanghai Stock Exchange for two consecutive years[147]. - The company has confirmed that all directors and supervisors have adhered to the securities trading code from January 1, 2023, to June 30, 2023[150]. - The company has complied with the Corporate Governance Code as per the Hong Kong Listing Rules from January 1, 2023, to June 30, 2023, with exceptions noted[151]. Digital Transformation - The company is focusing on digital transformation and has launched the "Micro Sea" digital brand, enhancing its technological capabilities[17]. - The company continues to implement the "Technology-Driven Operations" strategy, enhancing digital infrastructure and innovation[100]. - The company achieved a digital channel transaction substitution rate of 99.78%, leading the industry[131]. - The company optimized its cash management functions, achieving a 53.97% year-on-year increase in core clients to 1,298, with transaction amounts reaching CNY 16,450.63 billion[135]. Customer Engagement - The company has implemented a customer-centric approach, enhancing consumer rights protection and improving customer satisfaction through efficient and high-quality service experiences[198]. - The company has conducted over 5,000 educational activities, reaching more than 19 million consumers, focusing on financial knowledge and consumer protection[198]. - The company reported a personal customer base of 9.1966 million, an increase of 5.30% compared to the beginning of the year[103]. Shareholder Information - The total number of ordinary shares issued by the company as of June 30, 2023, is 26,098,435,963, including 21,544,435,963 A-shares and 4,554,000,000 H-shares[154]. - The largest shareholder, Hong Kong Central Clearing Limited, holds 4,553,749,780 H-shares, representing 17.45% of the total[157]. - Zhejiang Financial Holdings Co., Ltd. increased its holdings by 796,633,132 shares, totaling 3,452,076,906 shares, which is 13.23% of the total[157]. - As of June 30, 2023, 2,561,374,733 shares, accounting for 9.81% of the total issued ordinary shares, are pledged, and 227,801,951 shares are subject to judicial freeze[159]. Compliance and Regulatory - The company has established a compliance risk management framework to ensure legal and regulatory adherence, minimizing potential legal and reputational damages[97]. - The company has launched a dual enhancement initiative for compliance awareness and execution, promoting a culture of compliance across all levels[98]. - Regular compliance training and awareness campaigns are conducted to strengthen employees' understanding of regulations and compliance[98]. Challenges and Future Outlook - The company faces challenges in the second half of 2023 due to insufficient domestic demand and global economic slowdown, but remains committed to high-quality development[141]. - The company aims to enhance its comprehensive financial service capabilities, leveraging the advantages of the Hong Kong International Financial Center and the Greater Bay Area development opportunities[138].