CHINA ZHESHANG BANK CO., LTD. 浙商銀行股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：2016） 海外監管公告 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴 該等內容而引致的任何損失承擔任何責任。 本公告乃根據香港聯合交易所有限公司證券上市規則第13.10(B)條作出。 如下公告已於上海證券交易所網站刊登，僅供參閱。 特此公告。 承董事會命 浙商銀行股份有限公司 陳海強 執行董事、行長 中國，杭州 2025年8月28日 截至本公告日期，本行的執行董事為陳海強先生及馬紅女士；非執行董事為侯興 釧先生、任志祥先生、胡天高先生及應宇翔先生；獨立非執行董事為汪煒先生、 許永斌先生、傅廷美先生、施浩先生及樓偉中先生。 浙商 银 行 股 份 有 限 公 司 CHINA ZHESHANG BANK CO., LTD. 二〇二五年半年度报告摘要 A 股股票代码：601916 二〇二五年八月二十八日 浙商银行 2025 年半年度报告摘要(A 股) 1 重要 ...

Core Viewpoint - Lin Jingran, Vice President of Zhejiang Commercial Bank and President of Shanghai Branch, emphasizes the integration of financial services with social responsibility and the development of the real economy, aiming to create a "first-class commercial bank" through innovative and comprehensive financial solutions [3][4]. Group 1: Financial Services and Social Responsibility - "Good finance" is a distinctive label of Zhejiang Commercial Bank, focusing on reshaping financial service models to prioritize social value and support the real economy [4]. - Lin Jingran leads initiatives in technology finance, green finance, inclusive finance, pension finance, and digital finance, aligning with the central government's direction to enhance financial services for the real economy [5][6]. - The Shanghai Branch has established a financial advisory team to serve as "financial family doctors" for enterprises and local governments, enhancing the bank's social image through various public welfare activities [6]. Group 2: International Financial Center Development - The Shanghai Branch is actively contributing to the construction of the Shanghai International Financial Center by enhancing international business and supply chain finance services [7][8]. - Lin Jingran views international business as a key connector between global capital and the Chinese market, focusing on cross-border settlement and offshore financing [7]. - The bank's supply chain finance initiatives support the integration of financial services across the Yangtze River Delta, providing efficient financing solutions for small and micro enterprises [8].

Group 1 - The core event "Chuang Zai Lan" focused on supporting young entrepreneurs in Lankai City, with Tai Long Bank's Jinhua branch providing comprehensive financial services to boost the vitality of the regional private economy and assist youth entrepreneurship [1] - Tai Long Bank launched the "Firewood Plan" series of policies aimed at individual businesses and small micro-enterprises, offering ten supportive services that include funding guarantees, smart business tools, online and offline traffic generation, brand promotion, and management training to enhance efficiency, sales, income, and value for small shops [1][2] Group 2 - The bank upgraded its payment collection tool "Tai Hui Shou Smart Management," providing tailored smart dining and retail solutions for individual businesses, along with free training and consulting services through various formats such as video series and expert sharing sessions [2] - Tai Long Bank leverages its resources to offer free online and offline customer acquisition support for small micro-businesses, utilizing its "Tai Long Life" local service platform to invite quality merchants for free entry and promote sales through community activities and consumer subsidies [3] - The bank introduced "old-for-new" and "smart renewal" policies to help individual businesses implement low-cost operational strategies [4]

Core Viewpoint - The meeting of Zhejiang Commercial Bank aims to discuss the 2024 annual report and various governance and operational reports, emphasizing the bank's commitment to high-quality development and compliance with regulatory requirements [1][2][4]. Group 1: Meeting Agenda and Governance - The meeting will cover the announcement of the meeting start, reading of meeting notes, election of vote counters, and deliberation of various proposals including the 2024 annual board report and financial budget for 2025 [2][4]. - The bank's governance structure includes a board of directors and a supervisory committee that evaluates the performance of the board and senior management [1][2][16]. Group 2: Financial Performance and Strategy - As of the end of 2024, the bank's total assets reached 3.33 trillion yuan, with a capital adequacy ratio of 12.61% and a non-performing loan ratio of 1.38%, indicating stable financial health [5][6]. - The bank aims to enhance its strategic focus on digital transformation, customer-centric services, and comprehensive collaborative reforms to drive high-quality growth [6][8]. Group 3: Social Responsibility and Community Engagement - The bank has implemented a "good finance" approach, promoting financial services that support social welfare and economic development, including initiatives for education and rural finance [7][8]. - The bank's efforts in community engagement have led to the establishment of over 100 "warm stations" to support local communities and promote financial inclusion [7][8]. Group 4: Risk Management and Compliance - The bank emphasizes comprehensive risk management, adhering to prudent lending practices and enhancing internal controls to mitigate risks effectively [12][29]. - The supervisory committee actively monitors compliance with regulations and internal policies, ensuring that the bank's operations align with legal and ethical standards [19][20]. Group 5: Future Outlook and Goals - For 2025, the bank plans to strengthen its governance framework, enhance capital management strategies, and continue to focus on customer-centric reforms [30][31]. - The bank aims to deepen its commitment to social value creation and sustainable financial practices, aligning with national economic goals [30][31].

Core Viewpoint - The current economic environment presents a common challenge for commercial banks to maintain their fundamentals while leveraging policy opportunities for business upgrades. Zhejiang Commercial Bank has demonstrated resilience by achieving growth in both net interest income and net profit amidst industry pressures [1]. Financial Performance - As of March 31, 2025, Zhejiang Commercial Bank reported a revenue of 17.105 billion yuan and a net interest income of 11.981 billion yuan, reflecting a year-on-year growth of 1.38%. The net profit attributable to shareholders reached 5.949 billion yuan, with a growth of 0.61% [1]. - The bank's total assets exceeded 3.4 trillion yuan, growing by 3.54% from the previous year, with total loans and advances amounting to 1.89 trillion yuan, an increase of 1.81% [3]. Asset and Liability Management - The bank has focused on optimizing its asset-liability structure, with total liabilities reaching 3.24 trillion yuan, a growth of 3.67%. Total deposits amounted to 2.01 trillion yuan, up by 4.37% [3]. - The bank is transitioning from an "asset-driven" to a "liability-driven" model, successfully reducing the deposit interest rate for four consecutive years, which has helped mitigate the pressure from narrowing interest margins [4]. Risk Management - The non-performing loan ratio has decreased for three consecutive years, reaching 1.38% by the end of Q1 2025, indicating improved asset quality and risk management capabilities [4]. Strategic Initiatives - Zhejiang Commercial Bank has implemented the "Five Major Articles" strategy to enhance its service to the real economy, focusing on small and micro enterprises. By the end of 2024, the bank had added over 6,200 first-time loan clients, with a loan balance for small and micro enterprises reaching 355.425 billion yuan, a growth of 11.03% [7]. - The bank has also developed a "Talent Bank" to provide financial services to high-level talent startups, serving 30,712 technology enterprises with a financing balance of 367.4 billion yuan by the end of 2024 [8]. Social Responsibility and Sustainable Development - The "Good Financial" concept emphasizes the importance of social value and sustainable development in the financial sector. This approach has led to the establishment of a comprehensive financial service model that supports the real economy [10]. - The bank's financial advisor system has facilitated over 10,330 enterprises in securing financing exceeding 1.08 trillion yuan, demonstrating its commitment to supporting private enterprises and industrial upgrades [11].

Core Viewpoint - Zhejiang Commercial Bank demonstrates strong operational resilience and stability in its Q1 2025 report, despite the challenging economic environment, by actively optimizing its business structure [1][2]. Financial Performance - As of March 31, 2025, the total assets of Zhejiang Commercial Bank exceeded 3.4 trillion yuan, reflecting a growth of 3.54% compared to the end of the previous year [1][2]. - The bank achieved an operating income of 17.105 billion yuan, with net interest income increasing by 1.38% year-on-year [1]. - The net profit attributable to shareholders reached 5.949 billion yuan, marking a year-on-year growth of 0.61% [1][4]. Business Strategy - The bank has shifted its focus from scale and speed to improving quality and serving the real economy, aligning with a long-termism approach [2]. - As of Q1 2025, total loans and advances amounted to 1.8907 trillion yuan, an increase of 1.81% from the previous year [2]. - Total liabilities reached 3.2373 trillion yuan, up 3.67%, with deposits increasing by 4.37% to 2.0064 trillion yuan [2]. Risk Management - The bank maintains a stable asset quality with a non-performing loan ratio of 1.38%, unchanged from the previous year, and a provision coverage ratio of 171.21% [5][6]. - The core Tier 1 capital adequacy ratio stands at 8.38%, consistent with the end of the previous year [5][6]. Digital Transformation and Customer Service - Zhejiang Commercial Bank has initiated a comprehensive reform centered on customer service, leveraging digitalization to enhance service capabilities and break down internal barriers [4]. - The bank has made significant strides in digital financial services, particularly in supply chain finance, serving over 70,000 upstream and downstream clients, with more than 75% being small and micro enterprises [4].

Core Viewpoint - After a prolonged leadership vacancy and internal turmoil, Zhejiang Commercial Bank has appointed Chen Haiqiang as the new president, who emphasizes microfinance and risk management. However, the bank faces significant compliance and operational challenges, highlighted by recent regulatory penalties and declining profitability metrics [1][3][4]. Regulatory Issues - Zhejiang Commercial Bank's Changzhou branch was fined 500,000 yuan for inadequate verification of trade backgrounds in bank acceptance bill operations [1][2]. - The bank has faced over 20 regulatory penalties in 2025 alone, totaling more than 20 million yuan, which is double the total fines from 2024 [3][12][14]. Financial Performance - In 2024, Zhejiang Commercial Bank reported total assets of 3.33 trillion yuan, a year-on-year increase of 5.78%, with net profit growth slowing to just 0.92% [4][6]. - The bank's net profit growth has significantly declined from double digits in previous years to below 1% in 2024, indicating a troubling trend in profitability [4][7]. Asset Quality and Risk Management - The bank's non-performing loan ratio stood at 1.38%, which, while improved, remains high compared to peers like Hangzhou Bank [9]. - Credit impairment losses reached 28.2 billion yuan in 2024, with cumulative losses exceeding 80 billion yuan over three years, severely impacting profitability [9][11]. Market Position and Competition - Zhejiang Commercial Bank's market share and asset scale are under pressure from rising competitors in the Jiangsu and Zhejiang regions, such as Hangzhou Bank and Ningbo Bank [7][8]. - The bank's aggressive expansion strategy has led to a high concentration of real estate loans, raising concerns about its risk resilience [9][10]. Leadership and Management Challenges - The bank has experienced significant leadership instability, with multiple executives facing corruption investigations, which has adversely affected internal controls and market confidence [16][17]. - Chen Haiqiang's leadership aims to shift the bank's focus from rapid growth to sustainable value creation, addressing previous compliance and operational deficiencies [17][18].

Summary of the Conference Call Company Overview - The conference call involved Zhejiang Commercial Bank, with key attendees including the Chairman, Vice Chairman, and various directors and executives of the bank [1][2]. Core Industry Insights - The banking sector is undergoing significant changes, with a focus on digital transformation and high-quality development [7][19]. - The bank has maintained a leading position among joint-stock banks, achieving a cumulative revenue of 192.4 billion with a year-on-year increase of 4.39 billion, reflecting a growth rate of 7.5% over three years, which is approximately 10 percentage points higher than the average for similar banks [4][19]. Financial Performance - The bank's core Tier 1 capital adequacy ratio stood at 8.38%, an increase of 0.16 percentage points from the previous year [18]. - Total loans issued reached 1.86 trillion, with an increase of 8.2%, while deposits amounted to 1.92 trillion, up by 2.9% [19]. - The non-performing loan (NPL) ratio was reported at 1.38%, a decrease of 0.06 percentage points from the previous year, with a provision coverage ratio of 178.67% [19][51]. Strategic Initiatives - The bank has implemented a "Smart Management" strategy to enhance operational efficiency and customer service, focusing on digital transformation and comprehensive system reforms [17][47]. - The bank has prioritized risk management, successfully reducing historical non-performing assets and improving asset quality [37][52]. - A significant emphasis has been placed on inclusive finance, with a 21.78% increase in green loans and an 11.03% increase in loans to small and micro enterprises [19][25]. Key Challenges and Responses - The bank faces challenges from low interest rates and high competition, prompting a shift from asset-driven to liability-driven management [47][48]. - The bank has adopted a long-term perspective, focusing on sustainable growth rather than short-term profits [46][47]. Noteworthy Achievements - The bank has been recognized as the most satisfactory bank for private enterprises in Zhejiang for five consecutive years [20]. - It has successfully implemented a comprehensive financial ecosystem, serving over 10,000 enterprises and facilitating financing exceeding 1 trillion [9][21]. Additional Insights - The bank's leadership emphasized the importance of political and cultural construction within the organization to navigate challenges effectively [35][36]. - The concept of "Good Financial Practices" has been introduced, focusing on social responsibility and ethical banking [8][42]. Conclusion - Zhejiang Commercial Bank is positioned for continued growth through strategic reforms, digital transformation, and a commitment to high-quality service, while effectively managing risks and enhancing asset quality [16][19][49].

Core Insights - Zhejiang Commercial Bank has achieved a continuous decline in non-performing loan (NPL) ratio for three consecutive years, with an improvement in core Tier 1 capital adequacy ratio and other indicators [1][2] - The bank's risk management strategy has become more robust, with a 30% increase in the disposal of non-performing assets compared to the previous year, and a proactive reduction in real estate loans [1][2] Group 1: Asset Quality and Risk Management - In 2024, Zhejiang Commercial Bank reported stable asset quality and enhanced risk management capabilities, attributing this to significant efforts in risk disposal, a more prudent risk control strategy, and improved industry research capabilities [2] - The bank's management highlighted a notable reduction in the real estate NPL ratio to 1.55%, down 0.93 percentage points from the beginning of the year [2] Group 2: Strategic Initiatives - The bank is focusing on four key areas for improvement: industry research, risk disposal, professional review, and digital risk control, aiming to maintain a stable and improving asset quality [2] - The "Smart Management" approach is being implemented to enhance competitive advantages and promote high-quality development, shifting from traditional collateral-based financing to scenario-based financing [5] Group 3: Financial Performance - In 2024, the bank's deposit balance grew by 2.87% year-on-year, reaching 1.9 trillion yuan, while the interest rate on deposits has decreased for four consecutive years to 2.10% [5]

Core Viewpoint - Zhejiang Commercial Bank reported steady growth in key financial metrics for 2024, emphasizing a strategic shift towards low-risk, sustainable revenue generation amidst ongoing external challenges [2][4][12]. Financial Performance - In 2024, Zhejiang Commercial Bank achieved operating income of 67.65 billion yuan, a year-on-year increase of 6.19%, marking three consecutive years of growth [2][4]. - The bank's net profit attributable to shareholders reached 15.19 billion yuan, up 0.92% from the previous year [2]. - Total assets exceeded 3.33 trillion yuan, growing by 5.78%, while total liabilities reached 3.12 trillion yuan, increasing by 5.70% [2]. Income Composition - Interest income was 45.16 billion yuan, down 4.99%, while non-interest income surged to 22.49 billion yuan, a 39.05% increase, now accounting for 33.25% of total revenue [4][5]. - Investment income rose to 11.34 billion yuan, up 28.21%, driven by enhanced research capabilities [4][5]. Risk Management - The non-performing loan (NPL) ratio decreased to 1.38%, continuing a three-year downward trend [2][8]. - The bank's proactive risk management strategies included reducing high-risk loans and increasing low-risk mortgage loans [6][11]. Strategic Focus - Management emphasized a shift towards "smart management," prioritizing long-term sustainability over short-term gains, and focusing on a diversified revenue model [12][14]. - The bank aims to enhance its research capabilities and digital transformation to support sustainable growth [4][12]. Future Outlook - For 2025, the bank anticipates a continued decline in net interest margin, but at a reduced rate compared to 2024 [7]. - The focus will remain on stabilizing the real estate sector and managing risks associated with small and micro enterprises [11].