Core Viewpoint - Gansu Bank plans to launch a convertible deposit agreement business to enhance its capital strength and improve risk resilience, with a maximum deposit amount of 3 billion yuan [1][2]. Group 1: Convertible Deposit Agreement - The convertible deposit agreement is an innovative capital tool for small and medium-sized banks, allowing local government bond funds to be injected as deposits to supplement the bank's capital [1]. - The agreement stipulates that the deposit will convert into ordinary shares upon meeting certain conditions or will be repaid with interest upon maturity [1][2]. - Gansu Bank intends to sign an agreement with the Gansu Provincial Finance Department or its designated entity to facilitate this capital injection [1]. Group 2: Capital Adequacy and Financial Performance - The bank's core tier 1 capital adequacy ratio must remain above 5.125%, or it must face a confirmed survival-threatening event for the conversion to occur [2]. - For the first half of 2025, Gansu Bank reported an operating income of 2.717 billion yuan, a year-on-year decrease of 13.9%, while profit attributable to shareholders was 398 million yuan, a year-on-year increase of 1.1% [2]. - As of June 30, 2025, Gansu Bank's total assets amounted to 427.482 billion yuan, with a non-performing loan ratio of 1.85% and capital adequacy ratios of 10.65% for total capital, tier 1 capital, and core tier 1 capital [2]. Group 3: Company Background - Gansu Bank is a provincial-level urban commercial bank directly managed by the provincial government, established through the merger of former Pingliang City Commercial Bank and Baiyin City Commercial Bank [3]. - The bank officially opened on November 19, 2011, and was listed on the Hong Kong Stock Exchange on January 18, 2018 [3].