Group 1: Competitive Advantage and Business Strategy - The company adopts a differentiated business strategy to adapt to changes in the operating environment, focusing on high-quality development through four main approaches: deepening operational lines, strengthening professional management, accelerating technological transformation, and maintaining risk control [2]. Group 2: Asset Quality Outlook - The bank faces new challenges in asset quality management due to economic fluctuations and changes in domestic and international situations. It will focus on key areas while adhering to a strict risk bottom line, utilizing a unique service system to support economic priorities and implementing prudent credit policies [2]. Group 3: Loan Growth and Future Prospects - The company has been actively supporting key sectors such as small and micro enterprises, manufacturing, and consumer services, leading to steady loan growth. Future policies aimed at expanding domestic demand and promoting consumption are expected to further enhance financial service coverage and support the real economy [2]. Group 4: Compliance and Disclosure - During the investor relations activity, the company ensured that all communications adhered to disclosure regulations, with no significant undisclosed information leaked [2].

Group 1: Financial Data Overview - In April 2025, new social financing (社融) amounted to 1.16 trillion yuan, significantly lower than the previous month's 5.89 trillion yuan, and below the six-year average of 1.45 trillion yuan for the same period[1][3] - The year-on-year growth rate of social financing stock increased to 8.7%, up from 8.4% in the previous month[1][3] - New RMB loans in April were 280 billion yuan, down from 3.64 trillion yuan in March, indicating a year-on-year decrease of 450 billion yuan[1][4] Group 2: Credit Growth Analysis - The combination of strong social financing and weak credit growth is attributed to seasonal factors, accelerated debt collection, and tariff impacts[2][13] - The April credit growth slowdown is influenced by three unconventional factors: seasonal loan patterns, the impact of special refinancing bonds, and the ongoing US-China tariff disputes[11][13] - The M2 money supply growth rate improved to 8.0%, while M1 growth slightly decreased to 1.5%[4][16] Group 3: Future Outlook - A package of financial policies is expected to be implemented, which, along with fiscal efforts in the second quarter, may stabilize key financial indicators[2][13] - The government bond net financing in April was 972.9 billion yuan, contributing significantly to social financing growth, accounting for 84% of the new financing[3][8] - The overall financing environment remains favorable, with a decline in bond yields supporting corporate financing activities[9][15]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - In April 2025, new RMB loans were 28 billion yuan, a year - on - year decrease of 45 billion yuan, and the credit balance growth rate dropped from 7.4% to 7.2%. New social financing scale was 1.16 trillion yuan, a year - on - year increase of 1.22 trillion yuan, and the social financing stock growth rate rose from 8.4% to 8.7%. The year - on - year growth rate of M2 recovered from 7% to 8%, and the growth rate of M1 under the new caliber slightly decreased from 1.6% to 1.5%. There was an obvious overdraft effect due to the end - of - quarter credit rush, and the enterprise sector was a significant drag on credit growth. However, due to the central bank's "pre - rate cut", the market reaction was dull after the data release. With the support of the pre - issued government bonds, the social financing growth rate continued to rise. In terms of deposits, M1 was not weak, and the return of non - bank deposits supported the significant recovery of the M2 growth rate this month [1][10]. 3. Summary by Directory Non - bank Funds Flow Back to Banks, M2 Growth Rate Recovers - In the second quarter, when the financing pricing is relatively low, wealth management and other broad - based funds increase their allocation of deposits, driving the significant recovery of the M2 growth rate. In April, M2 decreased by 88.15 billion yuan, 2.7 trillion yuan less than the same period last year, driving the M2 growth rate up by nearly 1 percentage point. Non - bank time deposits were the main support, with a year - on - year increase of 1.9 trillion yuan [1][13]. - In April, it was a big month for the growth of wealth management scale. When the capital constraints were relaxed in the second quarter, non - bank institutions had abundant funds and the financing pricing was relatively low. Wealth management might choose to increase the allocation of certificates of deposit and time deposits [16]. - In the long run, official media continued to emphasize downplaying the focus on the growth rate of aggregate targets such as M2. The relationship between the money supply and economic growth is weakening, and the relationship between money and prices is also affected by multiple factors [2][21]. Credit: The Household Sector is Mediocre, and the Enterprise Sector is Obviously Overdrafted - In April, household short - term loans decreased by 40.19 billion yuan, 5.01 billion yuan more than the same period last year. The real estate transactions in April were weak, and the year - on - year growth rate of the commercial housing transaction area in 30 large and medium - sized cities weakened significantly compared with the previous month. New household medium - and long - term loans decreased by 12.31 billion yuan, close to the level of the same period last year and still in the negative range [3][22]. - After the end - of - quarter rush, the performance of enterprise medium - and long - term loans in April weakened significantly. New enterprise medium - and long - term loans in April were 25 billion yuan, 16 billion yuan less than the same period last year. The bill department still had a large - scale impulse, with new bill financing of 83.41 billion yuan in the month, which was seasonally high. Enterprise short - term loans were significantly weak, decreasing by 48 billion yuan in the month, 7 billion yuan less than the same period last year [3][26][27]. Social Financing: Government Bonds Remain the Main Support - The pre - issued government bonds were still the largest supporting item for social financing. In April, government bond issuance was fast, with new issuance of 97.62 billion yuan, a year - on - year increase of 1.07 trillion yuan, which was an important sub - item supporting the social financing growth rate. In May, the net financing of government bonds may be around 1.67 trillion yuan, still showing a significant year - on - year increase [4][35]. - The issuance of enterprise bonds rebounded, and off - balance - sheet bills were converted into on - balance - sheet ones. In April, the willingness to issue enterprise bonds rebounded, with new issuance of 23.4 billion yuan, at a seasonal level. Due to the tariff disturbance in April, the central level of bond yields declined, and the enterprise issuance willingness might have rebounded. Unaccepted bills decreased by 27.93 billion yuan in April, at a seasonal low level, and off - balance - sheet bills accelerated the conversion into on - balance - sheet ones at the beginning of the quarter [4][37]. Deposits: M1 is Seasonally Low, Non - bank Deposits Increase Significantly - The month - on - month change of M1 was close to that of the same period last year, at a seasonal low. April was a small month for deposits. Under the new caliber, M1 decreased by 4.3 trillion yuan in the month, 13.03 billion yuan more than the same period in 2024, generally at a seasonally low level. The year - on - year reading of M1 decreased slightly from 1.6% to 1.5% [5][41]. - Among the M2 sub - items, inter - bank deposits increased significantly, and household and enterprise deposits increased slightly year - on - year on a low base. In April, inter - bank deposits increased significantly by 1.5 trillion yuan, 1.9 trillion yuan more than the same period in 2024. After the central level of capital prices declined, the attractiveness of non - bank time deposits might have increased. Enterprise deposits decreased 54.28 billion yuan less year - on - year, and household deposits increased 46 billion yuan year - on - year [5][43].

Core Viewpoint - The company maintains strong profit growth and stable asset quality, with a recommendation to increase holdings based on positive financial performance and operational efficiency [1][4][5]. Financial Performance - In Q1 2025, the company's net profit attributable to shareholders and operating income increased by 17.3% and 2.2% year-on-year, respectively, consistent with preliminary performance reports [1]. - The annualized ROE and ROA improved by 0.64 percentage points and 0.02 percentage points to 20.60% and 1.11%, indicating robust profitability [1]. Credit and Asset Quality - As of the end of March, total assets, loans, and deposits grew by 15.9%, 14.3%, and 21.1% year-on-year, respectively, showing a strong lending environment [2]. - The non-performing loan ratio and provision coverage ratio remained stable at 0.76% and 530%, respectively, reflecting sound asset quality [4]. Non-Interest Income and Cost Management - Non-interest income decreased by 5.4% year-on-year, primarily due to a slowdown in other non-interest income, while fee-based income rose by 22.2%, accounting for 14.1% of total revenue [3]. - The cost-to-income ratio improved by 0.4 percentage points to 23.7%, indicating effective cost management [3]. Capital Adequacy and Valuation - As of March, the capital adequacy ratio and core tier 1 capital ratio were 14.05% and 9.01%, respectively, showing a slight increase from the end of 2024 [4]. - The company is projected to achieve net profits of 195 million, 227 million, and 264 million yuan for 2025-2027, with a target price of 17.66 yuan, reflecting a price-to-book ratio of 0.91 for 2025 [5].