ZHENGZHOU BANK(SZ:002936)2024-03-28 16:00Corporate Governance and Financial Reporting - The board of directors proposed no cash dividends, no bonus shares, and no capital reserve conversion for the 2023 fiscal year[2]. - The financial report for 2023 was audited by Ernst & Young with standard unqualified opinions issued[2]. - The report period covers from January 1, 2023, to December 31, 2023[7]. - The annual report was approved by the board of directors on March 28, 2024, with all 8 attending directors present[2]. - The company emphasizes the importance of risk awareness regarding forward-looking statements in the report[2]. - The company’s financial statements are prepared in accordance with Chinese and international accounting standards[2]. - The company did not experience any significant changes in accounting policies or estimates compared to the previous year[108]. Risk Management - The company did not identify any significant risks that would adversely affect its future development strategy and operational goals[2]. - The report includes a detailed description of the main risks faced by the company and the measures taken to address them[2]. - The bank has implemented a comprehensive risk management framework, focusing on credit, market, operational, liquidity, and information technology risks to ensure sustainable and stable operations[153]. - The bank's operational risk management framework has been enhanced, with a focus on identifying and assessing operational risks across various business activities[157]. - The bank's market risk management includes a clear structure for risk limits, stress testing, and regular reporting to ensure potential market losses are kept within acceptable levels[155]. - The bank's information technology risk management has been strengthened, with a focus on monitoring and assessing risks related to technology operations and ensuring business continuity[160]. - The bank's risk management culture emphasizes compliance and effective risk control measures to balance risk management with business development[153]. Financial Performance - Operating revenue for 2023 was RMB 13,667,290 thousand, a decrease of 9.50% compared to 2022[15]. - Total profit for 2023 was RMB 1,739,636 thousand, down 38.03% from the previous year[15]. - Net profit attributable to shareholders for 2023 was RMB 1,850,117 thousand, a decline of 23.62% year-over-year[15]. - Basic earnings per share for 2023 was RMB 0.15, a decrease of 6.25% compared to 2022[16]. - The bank's operating income was RMB 13.667 billion, a decrease of 9.50% year-on-year, while net profit was RMB 1.859 billion, down 28.48%[29]. - Non-interest income fell to RMB 1.93 billion, a decrease of 32.30% year-on-year[37]. - The bank's total operating expenses were RMB 11.93 billion, down 2.90% year-on-year[37]. Asset and Liability Management - Total assets at the end of 2023 reached RMB 630,709,429 thousand, an increase of 6.63% from the end of 2022[16]. - Total liabilities at the end of 2023 were RMB 576,394,573 thousand, up 6.96% from the previous year[16]. - The capital adequacy ratio for 2023 was 12.38%, down from 12.72% in 2022[16]. - The bank's total deposits reached RMB 360.961 billion, growing by 6.89% year-on-year[29]. - The total amount of loans and advances amounted to RMB 360.608 billion, reflecting an increase of 8.97% from the previous year[29]. - The bank's total shareholder equity amounted to RMB 54.31 billion, an increase of RMB 1.69 billion or 3.21% compared to the end of the previous year[87]. Loan and Credit Management - The non-performing loan ratio for 2023 was 1.87%, slightly improved from 1.88% in 2022[16]. - The bank's credit impairment losses were RMB 8.08 billion, a decrease of 6.75% from the previous year[37]. - The total amount of loans and advances reached RMB 360,608,206 thousand, with non-performing loans accounting for 1.87% of the total[92]. - The bank's mortgage loans amount to RMB 91.49 billion, with an NPL amount of RMB 3.08 billion, resulting in an NPL ratio of 3.37%[96]. - The bank's total corporate loans amount to RMB 253.46 billion, with an NPL amount of RMB 5.31 billion and an NPL ratio of 2.09%[94]. Strategic Initiatives and Development - The bank is focused on high-quality development and aims to contribute to the modernization of Zhengzhou as a national central city in 2024[11]. - The bank aims to enhance its service to small and micro enterprises by optimizing product offerings and implementing various supportive policies[30]. - The bank is committed to rural revitalization by developing rural inclusive financial services and launching a mobile banking version for rural areas[11]. - The bank will focus on five key areas: technology finance, green finance, inclusive finance, pension finance, and digital finance, as outlined in the central financial work meeting[166]. - The bank aims to enhance digital transformation and risk management capabilities in response to new regulatory requirements in 2024[166]. Shareholder and Capital Structure - Zhengzhou Bank's total issued shares increased from 8,265,537,599 to 9,092,091,358 due to a capital reserve conversion of 826,553,759 shares[172]. - The total number of ordinary shareholders reached 100,479, with 100,429 holding A-shares and 50 holding H-shares at the end of the reporting period[183]. - The bank's shareholding structure includes significant control by state-owned enterprises, reflecting a concentrated ownership model[192]. - The bank's major shareholder, Zhengzhou Finance Bureau, holds 1,418,761,196 shares, accounting for 20.06% of A shares and 15.60% of total issued common shares[190]. - The bank's major shareholders include Henan Guoyuan Trading Co., Ltd., which holds 329,997,429 A-shares, representing 3.63% of the total issued ordinary shares[198].