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，概不對因本公告全部或任何部分內容而產生或因倚賴該 等內容而引致之任何損失承擔任何責任。 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） （股票代碼：2016） 二○二五年第一季度報告 根據中國證券監督管理委員會的規定，本公司需刊發第一季度和第三季度報告。 本季度報告內所載的財務資料均未經審計，並根據國際財務報告會計準則而編製。 本公告乃根據香港聯合交易所有限公司證券上市規則第13.09條及13.10B條及證券及期貨條例 （香港法例第571章）第XIVA部項下內幕消息條文而刊發。 浙商銀行股份有限公司 二○二五年第一季度報告 1 重要提示 2 1.1 本公司董事會、監事會及董事、監事、高級管理人員保證本報告內容的真實、準確、完整， 不存在虛假記載、誤導性陳述或者重大遺漏，並承擔個別和連帶的法律責任。 1.2 本公司第七屆董事會2025年第三次臨時會議以書面傳簽方式召開，於2025年4月29日審議 通過了本公司202 ...

( 於中華人民共和國註冊成立的股份有限公司 ) A 股股票代碼 : 601916 H 股股票代碼 : 2016 智 慧 經 營 善 本 金 融 人 文 浙 銀 重要提示 本公司董事會、監事會及董事、監事和高級管理人員保證年度報告內容的真實、準確、完整，不存在虛假記 載、誤導性陳述或重大遺漏，並承擔個別和連帶的法律責任。 本公司第七屆董事會第四次會議於2025年3月28日審議通過了《浙商銀行股份有限公司2024年度報告及摘要》。 本公司實有董事12名，親自出席的董事11名，任志祥董事委託應宇翔董事出席會議，出席人數符合《中華人民 共和國公司法》和本公司章程的規定。本公司9名監事列席了本次會議。 本公司審計師畢馬威華振會計師事務所（特殊普通合夥）和畢馬威會計師事務所已分別對本公司按照中國會計準 則和國際財務報告會計準則編製的2024年度財務報告進行了審計，並分別出具了標準無保留意見的審計報告。 本報告除特別說明外，金額幣種為人民幣。本報告所載若干金額及百分比數字已作四捨五入調整。任何表格中 總數與金額總和間的差異均由於四捨五入所致。 本公司董事會建議派發2024年度現金股息，每10股分配現金股息人民幣1.56元（ ...

Financial Performance - The total assets of China Zheshang Bank reached RMB 3.3 trillion, marking a significant milestone[10]. - The bank's revenue growth continues to lead the industry, with non-interest income showing substantial improvement[10]. - The net profit maintained positive growth, reflecting the bank's strong financial performance[10]. - In 2024, the company's operating income reached 67.702 billion yuan, an increase of 6.18% compared to the previous year[22]. - The net profit attributable to shareholders was 15.186 billion yuan, reflecting a growth of 0.92% year-on-year[22]. - Total assets amounted to 3.33 trillion yuan, up 5.78% from the end of the previous year[22]. - The total amount of loans and advances was 18.6 trillion yuan, increasing by 8.21% year-on-year[22]. - The non-performing loan ratio stood at 1.38%, with a provision coverage ratio of 178.67%[22]. - The capital adequacy ratio was 12.61%, with a Tier 1 capital adequacy ratio of 9.61% and a core Tier 1 capital adequacy ratio of 8.38%[22]. - The cost-to-income ratio for 2024 was 31.16%, slightly higher than 30.43% in 2023, indicating increased operational costs[57]. Strategic Initiatives - The bank aims to enhance its competitive edge through digitalization and scenario-based services, focusing on high-quality development[11]. - The bank's strategic focus includes strengthening management and building distinctive features to adapt to changes in the financial landscape[11]. - The company aims to enhance its customer-centric comprehensive collaborative reform and digital transformation initiatives[22]. - The company aims to become a "first-class commercial bank" and has set three strategic goals: social influence, industry competitiveness, and corporate cohesion[26]. - The company has initiated a digital reform system, focusing on five major business sectors: retail, corporate, investment banking, asset management, and cross-border finance[28]. Risk Management - The company has established a comprehensive risk management framework, emphasizing a "prudent and stable" risk preference and a "small and diversified" credit principle[31]. - The company maintains a "prudent and stable" risk preference, focusing on "small and diversified" credit principles[127]. - The company has established a unified credit management system for corporate clients, ensuring comprehensive assessment and approval processes for credit limits[156]. - The company has implemented a comprehensive risk management framework for operational risks, including internal fraud, external fraud, and technology system events[166]. - The company actively manages reputation risks through a comprehensive system that includes risk assessment, monitoring, and response measures[175]. Customer Engagement and Services - The bank has established 235 financial advisory studios and a team of over 4,200 financial advisors across 16 provinces, enhancing its service capabilities[12]. - The company has reported a total of 11.67 million personal customers, representing a growth of 20.75% compared to the beginning of the year[185]. - The total number of retail customers, including online loan customers, reached 28.39 million by the end of the reporting period[186]. - The company has focused on enhancing customer segmentation and service systems to improve retail business performance[185]. - The company has launched several influential financial brands, including supply chain finance and integrated financial services for parks[22]. Sustainable Development - The bank is committed to deepening its "Good Financial" innovation, embedding social responsibility into its financial services[12]. - The bank's credit evaluation system, "Zhiyin Credit," is gradually showing effectiveness, directing resources towards socially responsible enterprises[12]. - By the end of 2024, the balance of green loans reached CNY 247.737 billion, an increase of 21.78% compared to the beginning of the year, outpacing the growth rate of all loans[36]. - The balance of inclusive small and micro enterprise loans was CNY 355.425 billion at the end of 2024, with a net increase of CNY 35.298 billion, representing an 11% growth, exceeding regulatory targets[37]. - The company is focused on supporting national strategies and key economic sectors, reinforcing its commitment to high-quality development in the real economy[34]. Digital Transformation - The company is committed to enhancing its digital capabilities through the "Core System Upgrade" project, aiming to strengthen its technological foundation[32]. - The company has implemented a digital transformation strategy to enhance information technology governance and improve data security measures[182]. - The company has developed a new generation anti-money laundering system to enhance digital capabilities and improve data quality[183]. - The company has established a comprehensive digital risk management system for credit card (consumer finance) business, implementing unified credit management and differentiated risk control strategies based on regional and industry characteristics[158]. - The "Zhejiang Bank Digital Inclusive" brand is being developed based on a comprehensive digital product service system, including new marketing channels[199].

Financial Performance - Net profit attributable to shareholders for the first nine months of 2024 was RMB 12,905 million, a slight increase of 1.19% from the same period in 2023[4] - The net profit attributable to shareholders of the bank was RMB 12.905 billion, an increase of RMB 0.152 billion or 1.19% year-on-year[20] - For the nine months ended September 30, 2024, the total comprehensive income was RMB 14,063 million, an increase from RMB 12,931 million in the same period of 2023, representing a growth of 8.8%[21] - The net profit attributable to shareholders for the same period was RMB 13,644 million, compared to RMB 12,572 million in 2023, reflecting an increase of 8.5%[21] - Basic earnings per share attributable to shareholders for the first nine months of 2024 was RMB 0.47, a decrease of 11.32% compared to RMB 0.53 in the same period of 2023[4] - Basic and diluted earnings per share for the nine months ended September 30, 2024, were both RMB 0.47, down from RMB 0.53 in 2023, indicating a decrease of 11.3%[21] Assets and Liabilities - Total assets as of September 30, 2024, reached RMB 3,276,188 million, an increase of 4.21% compared to the end of 2023[3] - The total liabilities as of September 30, 2024, were RMB 3,077,052 million, an increase of 4.15% from the end of 2023[3] - As of the end of the reporting period, the total assets of the group reached RMB 3,276.188 billion, an increase of RMB 132.309 billion or 4.21% compared to the end of the previous year[14] - The group’s total liabilities amounted to RMB 3,077.052 billion, an increase of RMB 122.750 billion or 4.15% compared to the end of the previous year[14] - Total liabilities increased to RMB 3,077,052 million as of September 30, 2024, compared to RMB 2,954,302 million at the end of 2023, representing a growth of 4.2%[22] Loans and Advances - The total amount of loans and advances issued was RMB 1,826,183 million, reflecting a growth of 6.41% year-on-year[3] - The bank's loans and advances increased to RMB 1,781,982 million, up from RMB 1,673,272 million in 2023, reflecting a growth of 6.5%[22] Cash Flow - The net cash flow used in operating activities for the first nine months of 2024 was RMB (84,757) million, a significant decline compared to RMB (15,063) million in the previous year, representing a 462.68% increase in cash outflow[4] - The net cash used in operating activities for the nine months ended September 30, 2024, was RMB (84,757) million, compared to RMB (15,063) million in 2023, indicating a significant increase in cash outflow[24] - The net cash generated from financing activities rose to RMB 70,391 million in 2024, compared to RMB 37,091 million in 2023[25] - The net decrease in cash and cash equivalents was RMB (21,905) million in 2024, an improvement from RMB (24,873) million in 2023[25] - Cash and cash equivalents at the beginning of the period increased to RMB 170,462 million in 2024 from RMB 107,748 million in 2023[25] - Cash and cash equivalents at the end of the period reached RMB 148,557 million in 2024, compared to RMB 82,875 million in 2023[25] Capital Adequacy and Ratios - The core tier 1 capital adequacy ratio stood at 8.39% as of September 30, 2024, up from 8.22% at the end of 2023[6] - The capital adequacy ratio increased to 12.71%, up by 0.52 percentage points from the end of the previous year[15] - The liquidity coverage ratio was reported at 144.75% as of September 30, 2024, down from 166.61% at the end of 2023[9] Non-Interest Income - The non-interest income as a percentage of operating income increased to 32.24%, up by 4.54 percentage points compared to the previous year[5] - Non-interest income reached RMB 16.931 billion, an increase of RMB 3.161 billion or 22.96% year-on-year, accounting for 32.24% of total operating income[14] Other Financial Metrics - The average return on total assets (annualized) decreased to 0.55% for the first nine months of 2024, down from 0.63% in the same period of 2023[5] - The cost-to-income ratio was 28.70%, an increase of 1.01 percentage points year-on-year[14] - The non-performing loan balance was RMB 25.963 billion, with a non-performing loan ratio of 1.43%, a decrease of 0.01 percentage points from the end of the previous year[15] - The provision for expected credit losses increased to RMB 21,461 million for the nine months ended September 30, 2024, compared to RMB 19,973 million in 2023, an increase of 7.5%[24] - The net interest income was RMB 35.587 billion, a slight decrease of RMB 0.362 billion or 1.01% year-on-year[20] Cash Management - Cash received from the disposal of fixed assets, intangible assets, and other long-term assets increased significantly to RMB 510 million in 2024 from RMB 19 million in 2023[25] - Cash paid for the acquisition of fixed assets, intangible assets, and other long-term assets rose to RMB 8,313 million in 2024 compared to RMB 6,116 million in 2023[25] - Cash received from investment income increased to RMB 25,408 million in 2024, up from RMB 21,350 million in 2023[25] - Cash recovered from investments surged to RMB 3,652,728 million in 2024, compared to RMB 1,310,820 million in 2023[25] - Net cash used in investment activities improved to RMB (7,322) million in 2024 from RMB (47,497) million in 2023[25] - Cash received from bond issuance increased to RMB 441,999 million in 2024, up from RMB 381,685 million in 2023[25]

Financial Performance - In the first half of 2024, the company's operating income reached RMB 35.295 billion, representing a year-on-year growth of 6.16%[7]. - The net profit attributable to shareholders was RMB 7.999 billion, an increase of 3.31% compared to the previous year[7]. - Operating income for the first half of 2024 reached RMB 35,295 million, a 6.16% increase from RMB 33,248 million in the same period of 2023[13]. - Pre-tax profit increased to RMB 9,741 million, reflecting a 3.87% growth compared to RMB 9,378 million in the first half of 2023[13]. - Basic earnings per share decreased by 14.71% to RMB 0.29 from RMB 0.34 in the first half of 2023[13]. - Average return on total assets declined to 0.52% from 0.58% in the first half of 2023, a decrease of 0.06 percentage points[14]. - Average return on equity fell to 9.78% from 10.71%, a decrease of 0.93 percentage points[14]. - Non-interest income reached RMB 116.53 billion, a significant increase of 25.58% year-on-year[20]. - The total operating income for the first half of 2024 was 35.295 billion RMB, an increase from 33.248 billion RMB in the same period of 2023[37]. Asset and Liability Management - As of the end of the reporting period, total assets amounted to RMB 3.25 trillion, up 3.27% from the end of the previous year[7]. - The total amount of loans and advances was RMB 18.1 trillion, reflecting a growth of 5.59% year-on-year[7]. - The total liabilities increased to RMB 3,052.24 billion, up by 3.31% from the end of 2023[15]. - Customer deposits rose to RMB 1,938.48 billion, marking a 3.74% increase from the end of 2023[15]. - The total amount of loans and advances issued reached RMB 1,812.16 billion, an increase of RMB 95.92 billion or 5.59% compared to the end of last year[41]. - The net amount of loans and advances was RMB 1,767.96 billion, accounting for 54.46% of total assets, up from 53.22% at the end of last year[40]. Risk Management - The non-performing loan ratio stood at 1.43%, with a provision coverage ratio of 178.12%[7]. - The company maintains a prudent and stable risk preference, focusing on small and diversified credit principles to support the real economy[56]. - The company emphasizes the importance of comprehensive risk management, with the board of directors ultimately responsible for risk management oversight[70]. - Credit risk management aims to keep credit risk within acceptable limits while maximizing risk-adjusted returns in RMB terms[71]. - The company has implemented a smart risk control system to enhance its ability to identify and manage risks proactively[70]. Digital Transformation and Innovation - The company is committed to a digital transformation strategy, launching the "Smart Zhejiang Bank" brand and focusing on integrating advanced technologies with banking services[12]. - The company has focused on digital transformation and financial technology innovation to support the real economy[93]. - The company has established a comprehensive information technology risk management system, adhering to ISO standards[91]. - The company has launched the "1+5" cybersecurity protection system to enhance its network security measures[118]. - The company has achieved a 99.9% electronic channel transaction substitution rate, leading the industry in online financial services[120]. Customer Engagement and Market Position - The total number of retail customers reached 30.75 million, an increase of 14.84% compared to the beginning of the year[94]. - The company issued a total of 4.34 million credit cards, an increase of 111,000 cards since the beginning of the year, with a credit card loan balance of 32.26 billion yuan, an increase of 1.72 billion yuan[99]. - The company served over 3,000 digital supply chain projects, benefiting more than 55,000 upstream and downstream customers, with 76% being small and micro enterprises[103]. - The company has actively utilized digital platforms to enhance communication with investors, improving satisfaction among retail investors[139]. Governance and Compliance - The company has received the highest rating of A for its information disclosure work from the Shanghai Stock Exchange for three consecutive years[137]. - The board consists of 12 members, with 1 female member and 10 members holding postgraduate degrees, including 4 with doctoral degrees, reflecting a diverse educational background[136]. - The company has maintained a strict internal policy against insider trading and has established a management system for information disclosure[137]. - The company aims to enhance its compliance management through technology, improving the level of intelligent compliance management[89]. Environmental and Social Responsibility - The company has actively promoted green finance initiatives to support carbon neutrality goals[181]. - As of June 30, 2024, the balance of green loans reached RMB 226.764 billion, an increase of RMB 23.327 billion, representing a growth rate of 11.47%, which is higher than the growth rate of all loans[182]. - The bank committed over RMB 37 million to support rural education initiatives, benefiting over 10,000 students[183].

Financial Performance - China Zheshang Bank reported its unaudited interim results for the six months ended June 30, 2024[2]. - Net profit for the period was RMB 12 billion, representing a year-on-year growth of 10%[4]. - In the first half of 2024, the bank reported operating income of CNY 35.295 billion, a year-on-year increase of 6.16%[10]. - Operating income for the first half of 2024 reached RMB 35,295 million, a 6.16% increase from RMB 33,248 million in the same period of 2023[16]. - Net profit attributable to shareholders reached CNY 7.999 billion, reflecting a year-on-year growth of 3.31%[10]. - Total comprehensive income for the period was RMB 9,301 million, up 10.9% from RMB 8,390 million in the same period last year[197]. - The bank's basic earnings per share for the period was RMB 0.29, down from RMB 0.34 in the same period of 2023[197]. Asset and Loan Growth - The bank's total assets reached RMB 3.5 trillion, an increase of 8% compared to the previous year[4]. - Total assets amounted to CNY 3.25 trillion, up 3.27% from the end of the previous year[10]. - The total amount of loans and advances was CNY 18.1 trillion, increasing by 5.59% compared to the end of last year[10]. - The bank's loan and advance to customers increased to RMB 1,767,957 million, up from RMB 1,673,272 million, reflecting a growth of 5.6%[199]. - Total loans and advances reached RMB 1,812.16 billion, up RMB 95.92 billion or 5.59% from the end of the previous year[22]. Non-Performing Loans and Risk Management - The bank's non-performing loan ratio improved to 1.5%, down from 1.7% in the previous period[4]. - The non-performing loan ratio stood at 1.43%, with a provision coverage ratio of 178.12%[10]. - The non-performing loan ratio improved slightly to 1.43% from 1.44% at the end of 2023[19]. - The provision coverage ratio decreased to 178.12% from 182.60% at the end of 2023, indicating a slight reduction in coverage for non-performing loans[19]. - Credit impairment losses amounted to RMB 14.927 billion, an increase of RMB 0.712 billion or 5.01% year-on-year[38]. Capital Adequacy and Financial Stability - The capital adequacy ratio improved to 12.86%, an increase of 0.67 percentage points from the end of the previous year[10]. - As of June 30, 2024, the capital adequacy ratio is 12.86%, with a Tier 1 capital adequacy ratio of 9.68% and a core Tier 1 capital adequacy ratio of 8.38%[67]. - The total capital net amount is RMB 250.571 billion, with risk-weighted assets amounting to RMB 1,948.476 billion[68]. - The leverage ratio as of June 30, 2024, is 4.91%, with adjusted on-balance and off-balance sheet assets totaling RMB 3,840.678 billion[69]. Customer Deposits and Digital Banking - Customer deposits increased by 9% to RMB 2.8 trillion, reflecting strong customer confidence[4]. - The bank plans to expand its digital banking services, aiming for a 20% increase in online transactions by the end of 2025[5]. - The total amount of deposits reached RMB 1,938.48 billion, up RMB 69.82 billion or 3.74% from the end of the previous year, with individual deposits increasing by RMB 30.41 billion or 11.28%[52]. Strategic Initiatives and Future Outlook - The bank is exploring potential mergers and acquisitions to enhance its market presence in Southeast Asia[5]. - Future guidance indicates a projected net profit growth of 12% for the full year 2024[5]. - The bank's strategic focus includes digital transformation and comprehensive development across five major business segments[13]. - The company plans to implement a "321" operational strategy focusing on customer-centric comprehensive collaborative reforms and digital transformation in the second half of 2024[135]. Green Finance and Social Responsibility - The bank actively promoted green finance initiatives, aligning with national strategies for carbon neutrality[183]. - As of June 30, 2024, the balance of green loans reached RMB 226.764 billion, an increase of RMB 23.327 billion, with a growth rate of 11.47%, surpassing the growth rate of all loans[184]. - The bank invested over RMB 37 million in educational support activities, benefiting over 10,000 students[185]. - The bank has implemented a comprehensive consumer rights protection system, conducting over 4,048 financial knowledge education activities reaching approximately 53.6993 million consumers[186].

Financial Performance - Operating income for Q1 2024 was RMB 18,414 million, representing a year-on-year growth of 16.60% from RMB 15,792 million in Q1 2023[5] - Net profit attributable to shareholders for Q1 2024 was RMB 5,913 million, up 5.12% from RMB 5,625 million in the same period last year[5] - The total comprehensive income for Q1 2024 was RMB 6,295 million, an increase of 22.9% compared to RMB 5,123 million in Q1 2023[22] - The net profit attributable to shareholders for Q1 2024 was RMB 6,181 million, up from RMB 5,010 million in Q1 2023, reflecting a growth of 23.3%[22] - Basic and diluted earnings per share for Q1 2024 were both RMB 0.22, a decrease from RMB 0.25 in Q1 2023[22] Asset and Liability Management - Total assets as of March 31, 2024, reached RMB 3,161,691 million, an increase of 0.57% compared to the end of 2023[4] - Total liabilities amounted to RMB 2,965,819 million as of March 31, 2024, compared to RMB 2,954,302 million at the end of 2023[24] - The bank's total equity attributable to shareholders rose to RMB 192,425 million as of March 31, 2024, compared to RMB 186,245 million at the end of 2023[24] Cash Flow Analysis - The net cash flow used in operating activities for Q1 2024 was RMB (90,099) million, a significant increase of 136.97% compared to RMB (38,022) million in Q1 2023[5] - Cash flow from operating activities showed a positive trend with net cash flow reflecting improved operational efficiency[29] - Cash flow from financing activities decreased to $39,210 in 2024 from $50,099 in 2023, a decline of about 21.8%[29] Capital Adequacy and Ratios - The core tier 1 capital adequacy ratio as of March 31, 2024, was 8.60%, an increase from 8.22% at the end of 2023[6] - The capital adequacy ratio improved to 12.54%, an increase of 0.35 percentage points from the end of the previous year[15] Loan and Interest Management - The total loans and advances as of March 31, 2024, amounted to RMB 1,769,460 million, reflecting a growth of 3.10% from RMB 1,716,240 million at the end of 2023[4] - The net interest margin was 1.84%, a decrease of 0.26 percentage points year-on-year[15] - Interest income received increased to $22,488 in 2024 from $21,120 in 2023, reflecting a growth of about 6.5%[29] Non-Interest Income - The non-interest income as a percentage of operating income increased to 35.82%, up by 10.20 percentage points from 25.62% in Q1 2023[5] - Non-interest income reached RMB 6.60 billion, a significant increase of RMB 2.55 billion, or 63.03% year-on-year, accounting for 35.82% of total operating income[15] Investment and Cash Management - The bank's cash and deposits with the central bank decreased to RMB 145,735 million from RMB 164,723 million[23] - The bank's financial investments measured at fair value through other comprehensive income were RMB 287,028 million, down from RMB 304,185 million at the end of 2023[23] - Cash received from the recovery of investments rose to $750,257 in 2024 compared to $653,018 in 2023, marking an increase of approximately 14.9%[29] Non-Performing Loans - The non-performing loan balance was RMB 25.32 billion, an increase of RMB 0.73 billion, or 2.96% compared to the end of the previous year[15] - The provision for expected credit losses increased to RMB 5,379 million in Q1 2024 from RMB 3,894 million in Q1 2023[27]

Financial Performance - The total assets of the company exceeded RMB 3 trillion, marking a significant milestone[5] - Revenue growth has been the highest among joint-stock banks for 10 consecutive quarters[5] - Net profit returned to double-digit growth, indicating strong financial performance[5] - The bank achieved a revenue growth rate that has been the highest among national joint-stock banks for 10 consecutive quarters[10] - Zhejiang Zheshang Bank reported operating income of CNY 63.764 billion, an increase of 4.27% year-on-year[19] - Net profit attributable to shareholders reached CNY 15.048 billion, growing by 10.50% compared to the previous year[19] - Total assets amounted to CNY 3.14 trillion, reflecting a year-on-year growth of 19.91%[19] - The average return on equity for 2023 was 9.42%, an increase from 9.02% in 2022[38] - The bank's total liabilities reached RMB 2,954,302 million, up from RMB 2,456,000 million in 2022[38] - The total equity attributable to shareholders was RMB 186.245 billion, an increase of 14.31% from the previous year[81] Asset Quality - The non-performing loan ratio and provision coverage ratio have shown a trend of "one decrease and one increase" for two consecutive years[5] - The non-performing loan ratio decreased to 1.44%, with a provision coverage ratio of 182.60%, indicating improved asset quality[10] - The non-performing loan ratio stood at 1.44%, with a provision coverage ratio of 182.60%[19] - The non-performing loan ratio improved slightly to 1.44% in 2023 from 1.47% in 2022[38] - The non-performing loan ratio for 2023 was reported at 1.44%, while the provision coverage ratio stood at 182.60%[37] Strategic Focus - 56% of the annual credit increment was directed towards small and diversified assets, highlighting a strategic focus on risk management[6] - The bank's new financial strategies focus on digitalization and scenario-based financial services, aiming for comprehensive development[11] - The bank plans to deepen investments in small, dispersed assets and weak-cycle industries to ensure stable long-term growth[10] - The company aims to leverage its comprehensive operational advantages to promote internationalization and high-quality development in 2024, marking its 20th anniversary[13] - The company aims to establish a customer base that provides stable and sustainable income, focusing on small, medium, and micro clients[27] Revenue Composition - Non-interest income contributed over 80% of the revenue growth, showcasing the effectiveness of the company's diversified income strategy[6] - The revenue from economically weak sensitive assets accounted for over 33%, an increase of nearly 9 percentage points[10] - The revenue from economically cycle-insensitive assets reached CNY 20.285 billion, accounting for 33.02% of the total revenue[26] - The total amount of loans and advances was CNY 17.2 trillion, up 12.54% from the end of the previous year[19] - The non-interest income reached RMB 16.236 billion, an increase of RMB 2.146 billion or 15.23% year-on-year[46] Digital Transformation - The bank aims to implement a digital transformation strategy and develop five major business segments: retail, corporate, investment banking, asset management, and cross-border services[22][24] - The company focused on enhancing customer engagement through digital channels, contributing to the growth in deposit and loan balances[57] - The company has strengthened its digital infrastructure and technology innovation, advancing digital transformation initiatives[126] - The company established a digital operation demonstration point in collaboration with Huawei to promote technological application innovation[151] - The company's digital transformation efforts have led to improved operational efficiency and enhanced security measures[148] Risk Management - The company maintains a prudent and stable risk preference, focusing on small and diversified credit principles to support the real economy[100] - The company emphasizes a comprehensive risk management framework, with the board responsible for overall risk management and the senior management executing it through various committees[101] - Credit risk management aims to control credit risk within acceptable limits, maximizing comprehensive benefits measured in local currency[102] - The company continuously adjusts credit policies based on external and internal economic conditions, focusing on "weak sensitivity assets" to enhance competitiveness in key regions[103] - The company has established a comprehensive market risk management system, utilizing methods such as duration analysis and Value at Risk (VaR) measurement to control market risk[110] Corporate Governance - The company is committed to improving its governance quality by integrating party leadership into its governance processes[170] - The board consists of 14 members, including 4 executive directors, 5 non-executive directors, and 5 independent non-executive directors, ensuring compliance with Hong Kong Listing Rules[173] - The board's diversity policy emphasizes gender, age, cultural background, professional experience, and educational qualifications, with 2 female directors and 12 holding postgraduate degrees[174] - The board is responsible for risk management and internal control systems, with annual reviews to ensure effectiveness[175] - The company has established mechanisms to ensure independent opinions are heard, including annual assessments of independent directors' independence[176] Customer Engagement - The total number of retail customers reached 26.78 million, an increase of 34.26% compared to the beginning of the year[128] - The balance of personal deposits amounted to 269.52 billion yuan, reflecting a growth of 26.24% year-to-date, with an average interest rate of 2.47%, down 7 basis points from the beginning of the year[128] - The company has focused on enhancing customer value through a tiered retail customer management system, achieving recognition in the retail banking sector[128] - The company has actively expanded its personal customer base, optimizing the structure of personal deposits to lower funding costs[128] - The number of personal online banking certificate customers increased to 1.7141 million, a growth of 4.22% compared to the beginning of the year[155] Awards and Recognition - The company received multiple awards, including ranking 87th in the "2023 Global Bank 1000" and maintaining a dual "investment grade" rating from S&P and Moody's[34] - The company received 72 honors, including awards for digital reform applications and financial technology innovation[153] - The company’s new mixed wealth management product series won multiple awards, including the "Gold Award for Outstanding Mixed Bank Wealth Management Products"[145] - The company received multiple awards, including "Core Dealer in the Domestic Currency Market" and "Best RMB Foreign Exchange Attempt Market Maker" during the reporting period[140] - The company was recognized as an excellent practice case by the China Listed Companies Association for its board governance[170]

Investment Rating - The investment rating for the company is "Buy" with a target price of 3.45, down from the previous forecast of 4.16 [1][2]. Core Views - The report highlights that the company's asset expansion speed has improved, leading to strong profit growth. The total asset growth rate reached 19.9%, which is significantly higher than other listed banks. The profit release is positive, and the asset quality forward indicators are stable, maintaining a "Buy" rating [1][2]. Summary by Sections Financial Performance - The company's revenue and net profit growth rates for 2023 met expectations, with a net profit growth rate of 10.5%, which is higher than the average level of other listed banks by 14 percentage points [1][2]. - The annual loan balance increased by 12.4% year-on-year, maintaining a high expansion speed. The net interest margin for 2023 was 2.01%, a year-on-year decrease of 20 basis points, but still among the top in the industry [1][2]. Asset Quality - The core indicators of asset quality are stable, with a decrease in the non-performing loan ratio by 20 basis points compared to the end of Q3. The overdue rate and attention rate have also improved [1][2]. Earnings Forecast - The forecast for net profit growth for 2024-2026 is projected at 3.61%/6.57%/7.66%, with EPS estimates of 0.57 for 2024, down from the previous estimate of 0.60 [1][2]. Market Position - The company has a total market capitalization of 82,394 million, with a circulating share ratio of 100% [1][2]. The average daily trading volume is 144.28 million shares, indicating strong market activity [1][2].

Financial Performance - The total assets of China Zheshang Bank reached RMB 3 trillion in 2023, marking a significant milestone[8]. - Revenue growth has been the highest among joint-stock banks for 10 consecutive quarters[8]. - Net profit returned to double-digit growth, indicating strong financial performance[8]. - In 2023, China Zheshang Bank reported operating income of CNY 63.764 billion, an increase of 4.27% year-on-year[23]. - The net profit attributable to shareholders reached CNY 15.048 billion, reflecting a growth of 10.50% compared to the previous year[23]. - The total amount of loans and advances was CNY 17.2 trillion, representing a year-on-year increase of 12.54%[23]. - The average return on equity for 2023 was 9.42%, an increase from 9.02% in 2022[45]. - The company achieved a revenue growth rate that has maintained the highest among national joint-stock banks for 10 consecutive quarters[12]. - The company reported a significant increase in its wealth management scale, with assets under management (AUM) growing substantially[29]. Asset Quality - The non-performing loan ratio and provision coverage ratio have shown a continuous trend of "one decrease and one increase" for two consecutive years[8]. - The non-performing loan ratio decreased to 1.44%, with a provision coverage ratio of 182.60%, indicating improved asset quality[12]. - The non-performing loan ratio stood at 1.44%, with a provision coverage ratio of 182.60%[23]. - The non-performing loan ratio improved to 1.44% in 2023 from 1.47% in 2022[45]. - The company emphasizes a prudent risk culture and focused on optimizing asset allocation to support the real economy[96]. Strategic Initiatives - The bank has implemented 15 measures to benefit enterprises and the public, enhancing its service offerings[8]. - The bank has been recognized as a "first-class bank" in the financial service evaluation for small and micro enterprises for three consecutive years[8]. - The launch of the "善融资产池" (Good Financing Asset Pool) aims to support the development of innovative and small enterprises[8]. - The bank initiated the "善本信托工程" (Good Trust Project) to promote social responsibility and support entrepreneurs in charitable activities[8]. - The company aims to create a "three good bank" model, emphasizing good customers, good assets, and good employees, to foster comprehensive collaborative development[13]. Digital Transformation - The company is focused on digital transformation and plans to deepen its engagement in scenario finance and technology finance[13]. - The company launched the "Micro Sea" digital brand as part of its digital transformation, integrating cutting-edge technologies with banking services[28]. - The company has established a comprehensive online and offline integrated operation system, enhancing customer experience and satisfaction[164]. - The company is actively promoting digital transformation, enhancing operational efficiency and security through technology integration[162]. Governance and Risk Management - The company has established a comprehensive compliance risk management framework to enhance compliance culture and internal governance[132]. - The governance structure includes a clear separation of responsibilities among the board of directors, supervisory board, and senior management to ensure effective oversight[185]. - The company has implemented a digital transformation in anti-money laundering efforts, enhancing data governance and system construction[137]. - The company has established a comprehensive liquidity risk management system to ensure timely liquidity needs are met at reasonable costs[121]. Market Presence and Expansion - The bank has established 342 branches across 22 provinces and regions, including Hong Kong, effectively covering key economic areas[23]. - The company signed contracts with over 100 strategic clients, including major state-owned enterprises, enhancing its market presence[13]. - The company plans to focus on expanding its market presence and enhancing its product offerings in the coming year[48]. - The company aims to enhance financial support for key sectors such as small and micro enterprises and technology innovation[179]. Awards and Recognition - The bank received an MSCI ESG rating of A in October 2023, indicating its commitment to environmental, social, and governance practices[40]. - The bank's mobile banking platform won the Best Digital Operation Award in December 2023, showcasing its innovation in digital finance[41]. - The bank was recognized as the Best Supply Chain Finance Bank and Best Cross-Border Financial Services Bank in December 2023, reflecting its excellence in service delivery[41]. - The company received 72 honors, including awards for digital reform applications and financial technology innovation[167].