Earnings release
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Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. CHINA ZHESHANG BANK CO., LTD. ʮ̡ (A joint-stock company incorporated in the People ’s Republic of China with limited liability) (Stock Code: 2016) FIRST QUARTERLY REPORT OF 2025 Pursuant to the regulations of the China Securities Regulatory Commission, the Company is required to publish a quarterly report for each of the first and third quarter. The financial information set out in this quarterly report is unaudited and prepared in accordance with the IFRS ® Accounting Standards. This announcement is made by the Company pursuant to Rule 13.09 and Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).
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2 1 Important Notice China Zheshang Bank Co., Ltd. First Quarterly Report of 2025 1.1 The Board of Directors, the Board of Supervisors, Directors, Supervisors and Senior Management of the Company warrant that the contents in this report are true, accurate and complete and have no false representations, misleading statements or material omissions, and they will take legal responsibilities for such contents on a joint and several basis. 1.2 The 2025 third extraordinary meeting of the seventh session of the Board of Directors of the Company was convened in the form of written resolutions and the First Quarterly Report of 2025 of the Company was considered and approved thereat on April 29, 2025. 1.3 The financial statements set out in this report are prepared in accordance with the IFRS Accounting Standards and is unaudited. The unaudited quarterly report of the Company prepared in accordance with the China Accounting Standards has been published on the website of the Shanghai Stock Exchange. Unless otherwise illustrated, the financial statements herein are consolidated information of the Group and the presentation currency of such information is RMB. 1.4 Any of “CZBank ”, the “Company ” and the “Bank” in this report refers to China Zheshang Bank Co., Ltd. The “Group” refers to China Zheshang Bank Co., Ltd. and its subsidiary. 1.5 Lu Jianqiang (Chairman of the Company), Chen Haiqiang (President of the Bank (perform the duties on behalf)), Hou Bo (Principal in-charge of Finance) and Zhang Jian (Director of the Financial Department) warrant that the financial report in this report is true, accurate and complete.
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3 2 General Information China Zheshang Bank Co., Ltd. First Quarterly Report of 2025 2.1 Key Accounting Information and Financial Indicators RMB million, excluding % March 31, 2025 December 31, 2024 Increase (Decrease) as Compared to the End of Last Year (%) Scale indicators Total assets 3,443,117 3,325,539 3.54 Total loans and advances to customers 1,890,698 1,857,116 1.81 Total liabilities 3,237,334 3,122,796 3.67 Customer deposits 2,006,368 1,922,289 4.37 Equity attributable to shareholders of the Bank 201,780 198,903 1.45 Net assets per share at the end of the period attributable to shareholders of the Bank (RMB) 6.44 6.33 1.74 RMB million, excluding % January- March 2025 January- March 2024 Increase (Decrease) as Compared to the Corresponding Period of Last Year (%) Operating results Operating income 17,135 18,414 (6.95) Profit before taxation 8,040 7,638 5.26 Net profit attributable to shareholders of the Bank 5,949 5,913 0.61 Net cash used in operating activities (2,199) (90,099) 97.56 Basic earnings per share attributable to shareholders of the Bank (RMB) 0.22 0.22 – Diluted earnings per share attributable to shareholders of the Bank (RMB) 0.22 0.22 – January- March 2025 January- March 2024 Increase (Decrease) as Compared to the Corresponding Period of Last Year Profitability indicators Return on average total assets (annualized) (%) 0.72 0.76 Decrease by 0.04 percentage point Return on average equity (annualized) (%) 13.57 14.39 Decrease by 0.82 percentage point Net non-interest income to operating income (%) 30.08 35.82 Decrease by 5.74 percentage points Cost-to-income ratio (%) 27.06 28.23 Decrease by 1.17 percentage points
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4 China Zheshang Bank Co., Ltd. First Quarterly Report of 2025 2.2 Capital Adequacy Ratio RMB million, excluding % March 31, 2025 December 31, 2024 The Group The Bank The Group The Bank Net core tier-one capital 175,528 166,185 173,172 166,402 Net tier-one capital 200,911 191,180 198,536 191,397 Net capital base 255,119 243,174 260,441 251,262 Minimum capital requirement (%) 8.00 8.00 8.00 8.00 Reserve capital and countercyclical capital requirement (%) 2.50 2.50 2.50 2.50 Additional capital requirement (%) – – – – Core tier-one capital adequacy ratio (%) 8.38 8.24 8.38 8.35 Tier-one capital adequacy ratio (%) 9.60 9.48 9.61 9.60 Capital adequacy ratio (%) 12.18 12.06 12.61 12.61 Notes: 1. Measured in accordance with the relevant provisions in the Administrative Measures for the Capital of Commercial Banks (No. 4 Order [2023] of National Financial Regulatory Administration) ( (ፄ္ຖ၍ଣᐼ҅˿ 2023 ϋୋ 4 )) from 2024. 2. The Pillar 3 Information Disclosure Report for the First Quarter of 2025 of China Zheshang Bank Co., Ltd. ( ʮ̡ 2025 ϋୋ ᚣజѓ) is available for inspection on the website of the Bank (www.czbank.com). 2.3 Leverage Ratio RMB million, excluding % The Group March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 Net tier-one capital 200,911 198,536 194,225 188,690 Adjusted asset balance inside and outside the balance sheet 4,029,132 3,885,727 3,901,844 3,840,678 Leverage ratio (%) 4.99 5.11 4.98 4.91 Notes: 1. Measured in accordance with the relevant provisions in the Administrative Measures for the Capital of Commercial Banks (No. 4 Order [2023] of National Financial Regulatory Administration) ( (ፄ္ຖ၍ଣᐼ҅˿ 2023 ϋୋ 4 )) from 2024. 2. The Pillar 3 Information Disclosure Report for the First Quarter of 2025 of China Zheshang Bank Co., Ltd. ( ʮ̡ 2025 ϋୋ ᚣజѓ) is available for inspection on the website of the Bank (www.czbank.com).
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5 China Zheshang Bank Co., Ltd. First Quarterly Report of 2025 2.4 Information on Liquidity Coverage Ratio The indicators of liquidity coverage ratio calculated in accordance with the Administrative Measures for the Liquidity Risk of Commercial Banks (CBIRC Order No.3 of 2018) ( ਠุვБ (္ึ˿ 2018 ϋୋ3)) are set out as below: RMB million, excluding % The Group March 31, 2025 December 31, 2024 Liquidity coverage ratio (%) 234.77 322.75 High-quality liquid assets 359,127 382,938 Net cash outflows over the next 30 days 152,969 118,649 2.5 Explanation of Differences Between Financial Statements Prepared under China Accounting Standards and IFRS Accounting Standards The net profit attributable to shareholders of the Bank for the reporting period ended March 31, 2025 and the equity attributable to shareholders of the Bank as at the end of the reporting period presented in the financial statements prepared by the Group under the China Accounting Standards are the same with that presented in the financial statements prepared by the Group under the IFRS Accounting Standards.
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6 China Zheshang Bank Co., Ltd. First Quarterly Report of 2025 2.6 Shareholders 2.6.1 As at the end of the reporting period, the table of total number of shareholders, the shareholdings of the top ten shareholders and top ten shareholders of circulating shares (or shareholders without selling restrictions) were as follows: Unit: share, excluding % Total Number of Shareholders 218,258 Shareholdings of Top Ten Shareholders Name of Shareholders (Full Name) Number of Shares Held at the End of the Period Proportion (%) Class of Shares Number of Shares Held Subject to Selling Restrictions Pledge, Marked or Frozen Nature of Shareholders Status of Shares Number HKSCC Nominees Limited 5,919,877,320 21.55 H share without selling restrictions – Unknown – – Zhejiang Provincial Financial Holdings Co., Ltd. 3,452,076,906 12.57 A share without selling restrictions – – – State-owned legal person Hengdian Group Holdings Limited 1,615,542,387 5.88 A share without selling restrictions – – – Domestic non-state- owned legal person Zhejiang Provincial Energy Group Co., Ltd. 1,093,531,078 3.98 A share without selling restrictions – – – State-owned legal person Sinatay Life Insurance Co., Ltd. -self-owned capital 996,325,468 3.63 A share without selling restrictions – – – State-owned legal person Taiping Life Insurance Co., Ltd. 921,538,465 3.36 A share without selling restrictions – – – State-owned legal person Minsheng Life Insurance Co., Ltd. -self-owned capital 768,593,847 2.80 A share without selling restrictions – – – Domestic non-state- owned legal person Hong Kong Securities Clearing Company Limited 667,943,407 2.43 A share without selling restrictions – – – – Zhejiang Hengyi High-tech Material Co., Ltd. 660,490,068 2.40 A share without selling restrictions – Pledged 508,069,283 Domestic non-state- owned legal person Zhejiang Hengyi Group Co., Ltd. 643,052,319 2.34 A share without selling restrictions – Pledged 643,052,319 Domestic non-state- owned legal person Notes: 1. The number of shares held by HKSCC Nominees Limited was the sum of shares of the Company ’s holders of H shares which were trading in its transaction system. The number of shares held by Hong Kong Securities Clearing Company Limited represents A shares designated by and on behalf of Hong Kong and overseas investors in their capacity as nominal holders (Shanghai Stock Connect shares). 2. As at the end of the reporting period, among the top ten shareholders mentioned above, Zhejiang Hengyi High-tech Material Co., Ltd. and Zhejiang Hengyi Group Co., Ltd. have a related relationship. Apart from that, the Company is not aware of other related relationship between the above shareholders or whether they are parties acting in concert. 3. To the best knowledge of the Company, as at the end of the reporting period, none of the shareholders in the table are involved in securities refinancing and lending business. 2.6.2 The total number of preference shareholders and their shareholdings as at the end of the reporting period As at the end of the reporting period, the Company had no existing preference shares.
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7 3 Operation Performance of the First Quarter China Zheshang Bank Co., Ltd. First Quarterly Report of 2025 The scale of businesses grew in a stable and health manner. As at the end of the reporting period, total assets of the Group amounted to RMB3,443.117 billion, representing an increase of RMB117.578 billion or 3.54% as compared to that at the end of last year, of which total loans and advances to customers amounted to RMB1,890.698 billion, representing an increase of RMB33.582 billion or 1.81% as compared to that at the end of last year. Total liabilities amounted to RMB3,237.334 billion, representing an increase of RMB114.538 billion or 3.67% as compared to that at the end of last year, of which customer deposits amounted to RMB2,006.368 billion, representing an increase of RMB84.079 billion or 4.37% as compared to that at the end of last year. The operating efficiency maintained resilient. During the reporting period, operating income of the Group amounted to RMB17.135 billion, representing a decrease of RMB1.279 billion or 6.95% period-on-period, of which, net interest income was RMB11.981 billion, representing an increase of RMB163 million or 1.38% period-on-period, net interest margin was 1.76%, representing a decrease of 0.08 percentage point period-on-period, and net non-interest income was RMB5.154 billion, representing a decrease of RMB1.442 billion or 21.86% period-on-period. Net non-interest income to operating income was 30.08%, representing a decrease of 5.74 percentage points period-on-period. Cost-to-income ratio was 27.06%, representing a decrease of 1.17 percentage points period-on-period. Net profit attributable to shareholders of the Bank amounted to RMB5.949 billion, representing an increase of RMB36 million or 0.61% period-on-period. The quality of assets maintained stable. As at the end of the reporting period, the non-performing loan balance of the Group was RMB25.955 billion, representing an increase of RMB461 million or 1.81% as compared to that at the end of last year; the non-performing loan ratio was 1.38%, flat as compared to that at the end of last year; allowance to non-performing loans ratio was 171.21%, representing a decrease of 7.46 percentage points as compared to that at the end of last year; the allowance to total loans ratio was 2.36%, representing a decrease of 0.10 percentage point as compared to that at the end of last year. The capital adequacy ratio remained at a reasonable level. As at the end of the reporting period, the capital adequacy ratio of the Group was 12.18%, representing a decrease of 0.43 percentage point as compared to that at the end of last year. The tier-one capital adequacy ratio was 9.60%, representing a decrease of 0.01 percentage point as compared to that at the end of last year, and the core tier-one capital adequacy ratio was 8.38%, flat as compared to that at the end of last year.
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8 4 Significant Events China Zheshang Bank Co., Ltd. First Quarterly Report of 2025 4.1 Significant Changes in Key Financial Data and Financial Indicators and Reasons √ Applicable ½ Not applicable The following major items in the consolidated financial statements recorded an increase/ decrease of over 30% due to the following reasons: RMB million, excluding % Item January – March 2025 January – March 2024 Period-on- Period Increase (Decrease) (%) Main reasons for the changes during the reporting period Net cash used in operating activities (2,199) (90,099) 97.56 Increase in cash inflow from customer deposits 4.2 Other Key Information regarding the Company ’s Operation Performance during the Reporting Period which should be brought to the Attention of the Investors ½ Applicable √ Not applicable
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9 5 Appendix China Zheshang Bank Co., Ltd. First Quarterly Report of 2025 The financial statements prepared in accordance with the IFRS Accounting Standards are set out in Appendix I to this report. By order of the Board China Zheshang Bank Co., Ltd. Lu Jianqiang Chairman Hangzhou, the PRC April 29, 2025 As at the date of this announcement, the executive Directors of the Bank are Mr. Lu Jianqiang, Mr. Chen Haiqiang and Ms. Ma Hong; the non-executive Directors are Mr. Hou Xingchuan, Mr. Ren Zhixiang, Mr. Hu Tiangao and Mr. Ying Yuxiang; the independent non-executive Directors are Mr. Wang Wei, Mr. Xu Yongbin, Mr. Fu Tingmei, Mr. Shi Hao and Mr. Lou Weizhong.
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10 Appendix 1 China Zheshang Bank Co., Ltd. First Quarterly Report of 2025 Appendix 1 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED 31 MARCH 2025 (In RMB millions, unless otherwise stated) For three months ended 31 March 2025 2024 (Unaudited) (Unaudited) Interest income 26,950 28,859 Interest expense (14,969) (17,041) NET INTEREST INCOME 11,981 11,818 Fee and commission income 1,665 1,726 Fee and commission expense (371) (236) NET FEE AND COMMISSION INCOME 1,294 1,490 Net trading gains 1,259 2,800 Net gains on financial investments 2,137 2,061 Other operating income 464 245 OPERATING INCOME 17,135 18,414 Operating expenses (4,811) (5,397) Expected credit losses (4,284) (5,379) PROFIT BEFORE TAXATION 8,040 7,638 Income tax expense (1,928) (1,611) PROFIT FOR THE PERIOD 6,112 6,027 Attributable to: Shareholders of the Bank 5,949 5,913 Non-controlling interests 163 114
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11 China Zheshang Bank Co., Ltd. First Quarterly Report of 2025 Appendix 1 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (CONTINUED) FOR THE THREE MONTHS ENDED 31 MARCH 2025 (In RMB millions, unless otherwise stated) For three months ended 31 March 2025 2024 (Unaudited) (Unaudited) Other comprehensive income, net of tax Items that may be reclassified to profit or loss: Changes in the fair value of financial assets measured at fair value through other comprehensive income (3,065) 76 Allowance for ECLs of financial assets measured at fair value through other comprehensive income 89 36 Exchange difference from the translation of foreign operations (96) 156 Other comprehensive income, net of tax (3,072) 268 Total comprehensive income 3,040 6,295 Total comprehensive income attributable to: Shareholders of the Bank 2,877 6,181 Non-controlling interests 163 114 Earnings per share attributable to ordinary shareholders of the Bank Basic (RMB yuan) 0.22 0.22 Diluted (RMB yuan) 0.22 0.22
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12 China Zheshang Bank Co., Ltd. First Quarterly Report of 2025 Appendix 1 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 31 MARCH 2025 (In RMB millions, unless otherwise stated) 31 March 2025 31 December 2024 (Unaudited) (Audited) ASSETS Cash and balances with the central bank 142,576 129,691 Precious metals 16,474 16,956 Deposits with banks and other financial institutions 66,417 51,919 Placements with banks and other financial institutions 6,382 17,366 Derivative financial assets 39,754 41,692 Financial assets purchased under resale agreements 81,503 68,407 Loans and advances to customers 1,847,384 1,812,684 Financial investments – Financial assets measured at fair value through profit or loss 257,918 228,873 – Financial assets measured at amortized cost 450,664 469,159 – Financial assets measured at fair value through other comprehensive income 397,738 357,419 Fixed assets 33,233 31,268 Right-of-use assets 4,521 4,685 Intangible assets 823 811 Deferred tax assets 19,969 20,482 Other assets 77,761 74,127 TOTAL ASSETS 3,443,117 3,325,539 LIABILITIES Due to the central bank 42,163 77,821 Deposits from banks and other financial institutions 327,368 366,940 Placements from banks and other financial institutions 97,803 95,841 Financial liabilities at fair value through profit or loss 19,627 21,196 Derivative financial liabilities 32,048 36,085 Financial assets sold under repurchase agreements 93,689 35,287 Customer deposits 2,006,368 1,922,289 Employee benefits payable 3,875 6,323 Taxes payable 1,511 1,091 Provisions 1,052 1,094 Debt securities issued 592,704 541,533 Lease liabilities 2,928 3,131 Other liabilities 16,198 14,165 TOTAL LIABILITIES 3,237,334 3,122,796
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13 China Zheshang Bank Co., Ltd. First Quarterly Report of 2025 Appendix 1 CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED) AT 31 MARCH 2025 (In RMB millions, unless otherwise stated) 31 March 2025 31 December 2024 (Unaudited) (Audited) EQUITY Share capital 27,464 27,464 Other equity instruments 24,995 24,995 – Perpetual bond 24,995 24,995 Capital reserve 38,570 38,570 Other comprehensive income 3,275 6,347 Surplus reserve 14,012 14,012 Statutory general reserve 35,119 35,119 Retained earnings 58,345 52,396 Total equity attributable to shareholders of the Bank 201,780 198,903 Non-controlling interests 4,003 3,840 TOTAL EQUITY 205,783 202,743 TOTAL LIABILITIES AND EQUITY 3,443,117 3,325,539 The consolidated financial statements were approved by the Board of Directors on April 29, 2025. Lu Jianqiang Chen Haiqiang Chairman President (Perform the duties on behalf) Hou Bo Zhang Jian Principal in-charge of Finance Director of the Financial Department
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14 China Zheshang Bank Co., Ltd. First Quarterly Report of 2025 Appendix 1 CONSOLIDATED CASH FLOW STATEMENT FOR THE THREE MONTHS ENDED 31 MARCH 2025 (In RMB millions, unless otherwise stated) For three months ended 31 March 2025 2024 (Unaudited) (Unaudited) Cash flows from operating activities: Profit before taxation 8,040 7,638 Adjustments for: Expected credit losses 4,284 5,379 Depreciation and amortization 618 580 Interest income from financial investments (5,767) (5,646) Net investment income (3,058) (3,448) Net losses/(gains) from changes in fair value 370 (562) Net foreign exchange (gains)/losses (678) 30 Interest expense on debt securities issued 3,042 2,758 Interest expense on lease liabilities 28 33 Deferred tax expense 1,505 336 Net changes in operating assets and operating liabilities: Net (increase)/decrease in balances with the central bank (4,734) 9,892 Net decrease in deposits with banks and other financial institutions 10,561 3,572 Net increase in placements with banks and other financial institutions (2,077) (3,058) Net increase in financial assets purchased under resale agreements (6,744) (8,323) Net increase in loans and advances to customers (38,934) (57,637) Net increase in financial assets held for trading (31,618) (811) Net decrease/(increase) in other operating assets 8,812 (2,628) Net decrease in due to the central bank (35,793) (53,165) Net (decrease)/increase in deposits from banks and other financial institutions (39,832) 5,540 Net (decrease)/increase in placements from banks and other financial institutions (4,892) 10,089 Net increase/(decrease) in financial assets sold under repurchase agreements 58,428 (20,573) Net increase in customer deposits 82,439 19,772 Net (decrease)/increase in other operating liabilities (5,721) 386 Net cash flows used in operating activities before taxation (1,721) (89,846) Income tax paid (478) (253) Net cash used in operating activities (2,199) (90,099)
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15 China Zheshang Bank Co., Ltd. First Quarterly Report of 2025 Appendix 1 CONSOLIDATED CASH FLOW STATEMENT (CONTINUED) FOR THE THREE MONTHS ENDED 31 MARCH 2025 (In RMB millions, unless otherwise stated) For three months ended 31 March 2025 2024 (Unaudited) (Unaudited) Cash flows from investing activities: Proceeds from disposal of fixed assets, intangible assets and other long-term assets 11 4 Payment for acquisition of fixed assets, intangible assets and other long-term assets (3,186) (1,788) Investment returns received 8,151 5,414 Proceeds from disposal of investments 516,701 750,257 Payment for acquisition of investments (540,735) (699,508) Net cash (used in)/generated from investing activities (19,058) 54,379 Cash flows from financing activities: Proceeds from issuance of debt securities 153,851 140,859 Repayment of principal on debt securities issued (103,304) (99,435) Repayment of interest on debt securities issued (2,418) (1,988) Repayment for principal and interest elements of lease liabilities (257) (226) Net cash generated from financing activities 47,872 39,210 Effect of exchange rate changes on cash and cash equivalents (83) 197 Net increase in cash and cash equivalents 26,532 3,687 Cash and cash equivalents at the beginning of the period 133,635 170,461 Cash and cash equivalents at the end of the period 160,167 174,148 Net cash flows from operating activities include: Interest received 20,543 22,488 Interest paid (10,076) (9,459)