Core Viewpoint - Xiamen Bank is set to issue up to 9 billion RMB in capital supplement tools to address declining capital adequacy ratios, which have dropped significantly in recent years [2][3]. Capital Adequacy and Financial Performance - Xiamen Bank's capital adequacy ratio fell to 14.11% in the first half of 2025, down 1.19 percentage points from the beginning of the year, with core tier 1 capital adequacy ratio at 9.10% and tier 1 capital adequacy ratio at 11.28% [3]. - The bank's asset scale reached 434 billion RMB, an 8.92% year-on-year increase, but operating income decreased by 7.02% to 2.689 billion RMB, and net profit attributable to shareholders fell by 4.59% to 1.158 billion RMB [3][7]. Capital Management Strategy - Xiamen Bank has developed a capital management plan for 2024-2026, focusing on internal capital accumulation and external financing to maintain adequate capital levels [4]. - The plan includes enhancing profitability, controlling non-performing assets, and utilizing various capital tools such as ordinary shares, preferred shares, and perpetual bonds [4]. Recent Capital Raising Activities - This is not the first instance of external capital supplementation for Xiamen Bank; it has previously issued green financial bonds and fixed-rate bonds to optimize its capital structure [5]. - As of mid-2025, the bank's bond payable balance was 948.84 billion RMB, reflecting a 3.77% increase from the previous year [5]. Revenue and Profit Trends - Xiamen Bank has faced declining revenues, with operating income experiencing negative growth in recent years, including a 4.96% decline in 2023 [7]. - In the first half of 2025, net interest income was 1.992 billion RMB, a slight decrease of 0.47% year-on-year, while non-interest income dropped by 21.72% to 697 million RMB [7]. Asset Quality Concerns - The bank's non-performing loan ratio increased from 0.74% at the end of the previous year to 0.83%, with the provision coverage ratio declining significantly from 391.95% to 321.67% [8].

Core Viewpoint - Xiamen Bank is set to issue up to 9 billion RMB in capital supplement tools to address declining capital adequacy ratios, which have dropped significantly in recent years [2][3] Group 1: Capital Adequacy and Regulatory Compliance - Xiamen Bank's capital adequacy ratio fell to 14.11% in the first half of 2025, down 1.19 percentage points from the beginning of the year, with core tier 1 capital adequacy ratio at 9.10% and tier 1 capital adequacy ratio at 11.28% [3] - The bank's capital adequacy ratios still meet regulatory requirements, which stipulate a minimum core tier 1 capital adequacy ratio of 7.5%, tier 1 capital adequacy ratio of 8.5%, and total capital adequacy ratio of 10.5% [3] Group 2: Financial Performance - Xiamen Bank's total assets reached 434 billion RMB, an 8.92% year-on-year increase, but operating income decreased by 7.02% to 2.689 billion RMB, and net profit attributable to shareholders fell by 4.59% to 1.158 billion RMB [3][7] - The bank's net interest income for the first half of 2025 was 1.992 billion RMB, a slight decrease of 0.47% year-on-year, although it showed a 3.56% increase in the second quarter compared to the same period last year [7] Group 3: Capital Management Strategy - Xiamen Bank has developed a capital management plan for 2024-2026, focusing on internal capital accumulation supplemented by external financing, aiming to maintain sufficient capital levels [4][5] - The bank plans to utilize various capital tools, including common stock, preferred stock, convertible bonds, perpetual bonds, and subordinated debt, while also exploring innovative capital instruments [5] Group 4: Recent Capital Raising Activities - This is not the first instance of external capital supplementation for Xiamen Bank; it has previously issued green financial bonds and fixed-rate bonds to optimize its capital structure and support business development [6][8] - As of June 30, 2025, the bank's bond payable balance was 94.884 billion RMB, an increase of 3.77% from the previous year, primarily due to the issuance of new general financial bonds [6]