Bank of Zhengzhou : First Quarterly Report of 2022 （H Share）2022-04-29

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Bank of Zhengzhou Co., Ltd.*

ቍψვБٰ΅Ϟࠢʮ̡ *

(A joint stock company incorporated in the People's Republic of China with limited liability)

(H Shares Stock Code: 6196)

(Preference Shares Stock Code: 4613)

FIRST QUARTERLY REPORT OF 2022

The board of directors (the "Board") of Bank of Zhengzhou Co., Ltd.* (the "Bank") hereby announces the unaudited first quarterly results of the Bank and its subsidiaries for the three months ended 31 March 2022 (the "Reporting Period"), which was prepared in accordance with the International Financial Reporting Standards ("IFRS"). This announcement is made in accordance with Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and Rule 13.09 and Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

By Order of the Board

Bank of Zhengzhou Co., Ltd.*

WANG Tianyu

Chairman

Zhengzhou, Henan, the PRC

April 28, 2022

As at the date of this announcement, the Board comprises Mr. WANG Tianyu, Mr. SHEN Xueqing and Mr. XIA Hua as executive directors, Ms. WANG Dan, Mr. LIU Bingheng, Mr. SU Xiaojun, Mr. JI Hongjun and Mr. WANG Shihao as non-executive directors, and Ms. LI Yanyan , Mr. LI Xiaojian, Mr. SONG Ke and Ms. LI Shuk Yin Edwina as independent non-executive directors.

*The Bank is not an authorized institution within the meaning of the Banking Ordinance (Chapter 155 of the Laws of Hong Kong), not subject to the supervision of the Hong Kong Monetary Authority, and not authorized to carry on banking and/or deposit-taking business in Hong Kong.

IMPORTANT NOTICES

• 1. The Board, the board of supervisors, directors, supervisors and senior management of the Bank warrant the truthfulness, accuracy and completeness of the contents of this first quarterly report of 2022 of the Bank (the "Report"), and that there are no false representations or misleading statements contained in or material omissions from the Report, and they jointly and severally accept responsibility for the Report.

• 2. Financial information set out in the Report has been prepared in accordance with the IFRSs. Unless otherwise specified, the financial information contained herein was derived from the consolidated financial statements of the Bank and its subsidiaries, i.e. Henan Jiuding Financial Leasing Co., Ltd., Fugou Zhengyin County Bank Co., Ltd., Xinmi Zhengyin County Bank Co., Ltd., Xunxian Zhengyin County Bank Co., Ltd. and Queshan Zhengyin County Bank Co., Ltd. (collectively, the "Group" or "Bank").

• 3. Mr. WANG Tianyu, the legal representative of the Bank and chairman of the Board, Mr. SHEN Xueqing, the president, Mr. SUN Haigang, the person-in-charge of accounting, and Ms. GAO Chenxin, the head of accounting department of the Bank hereby declare and warrant the truthfulness, accuracy and completeness of the financial information in the Report.

• 4. The quarterly financial report of the Bank has not been audited.

I. MAJOR FINANCIAL DATA

(I) Major accounting data and financial indicators

During the Reporting Period, unless otherwise specified, the Bank is not required to make retrospective adjustments to or restatements of the accounting data of the previous years.

Unit: RMB'000

Increase/ decrease as compared with the corresponding period of the

January to January to previous year

Item

March 2022 March 2021

(%)

Operating income(1)

3,419,896

3,187,295 7.30

Net profit attributable to shareholders of the Bank

Net cash flows used in operating activities Net cash flows used in operating activities per share (RMB/share) (2)

1,166,426 (19,460,535)

1,125,256 3.66

(2,687,681) 624.06

Basic earnings per share (RMB/share) (2) Diluted earnings per share (RMB/share) (2) Weighted average return on net assets (%)

(2.35) 0.14 0.14 11.50

(0.33) 612.12

0.14 0.14

- -

(on annualised basis)(2)

12.08 Decreased by 0.58 percentage point

Notes:

• (1) Operating income includes net interest income, net fee and commission income, net trading gains, net (losses)/gains arising from investments and other operating income.

• (2) Basic earnings per share, diluted earnings per share and weighted average return on net assets were all calculated according to Compilation Rules for Information Disclosures by Companies that Offer Securities to the Public (No.9): Calculation and Disclosure of Rate of Return on Equity and Earnings per Share (2010 Revision).

  In December 2021, the Bank issued one new share to the ordinary shareholders for every 10 shares held by way of capitalisation issue. After the implementation of the capitalisation issue, the number of ordinary shares of the Bank increased from 7,514,125,090 shares to 8,265,537,599 shares. Net cash flows used in operating activities per share, basic earnings per share and diluted earnings per share for the comparison periods were recalculated based on the number of shares after the capitalisation issue. Weighted average net assets deducted other equity instruments.

Unit: RMB'000
Increase/
decrease as
compared with
the end of the
31 March	31 December	previous year
Scale indicators	2022	2021	(%)
Total assets	575,109,347	574,979,662	0.02
Loans and advances to customers
Corporate loans	207,150,308	199,784,576	3.69
Personal loans	77,022,076	76,138,099	1.16
Discounted bills	22,372,512	13,104,993	70.72
Gross loans and advances to customers	306,544,896	289,027,668	6.06
Add: Accrued interests	1,546,402	1,439,787	7.40
Less: Provision for impairment losses(1)	9,193,569	8,068,364	13.95
Book value of loans and advances
to customers	298,897,729	282,399,091	5.84
Total liabilities	514,406,358	515,568,122	(0.23)
Deposits from customers
Corporate deposits	161,277,469	163,370,197	(1.28)
Personal deposits	126,487,487	121,680,427	3.95
Other deposits(2)	34,402,353	33,762,827	1.89
Total deposits from customers	322,167,309	318,813,451	1.05
Add: Accrued interests	2,993,926	2,760,764	8.45
Book value of deposits from customers	325,161,235	321,574,215	1.12
Share capital	8,265,538	8,265,538	-
Shareholders' equity	60,702,989	59,411,540	2.17
Equity attributable to shareholders of
the Bank	58,999,932	57,766,182	2.14
Equity attributable to ordinary
shareholders of the Bank	41,175,569	39,941,819	3.09
Net assets per share attributable to ordinary
shareholders of the Bank (RMB/share)	4.98	4.83	3.11
Notes:

(1) Provision for impairment losses excludes provision for impairment losses on forfeiting and discounted bills, which is included in other comprehensive income.

(2)Other deposits include pledged deposits, remittances outstanding and temporary deposit.

• (II) Explanations on differences between consolidated financial statements prepared in accordance with IFRSs and China Accounting Standards for Business Enterprises

  There are no differences between the net profit attributable to shareholders of the Bank for the Reporting Period ended 31 March 2022 and the equity attributable to shareholders of the Bank as at the end of the Reporting Period as presented in the Group's consolidated financial statements prepared under IFRSs and those prepared under China Accounting Standards for Business Enterprises.

• (III) Supplementary financial indicators

  Regulatory	31 March	31 December	31 December	31 December
  Regulatory indicators	standards	2022	2021	2020	2019
  Core tier-one capital adequacy ratio (%) (1)	≥7.5	9.36	9.49	8.92	7.98
  Tier-one capital adequacy ratio (%) (1)	≥8.5	13.44	13.76	10.87	10.05
  Capital adequacy ratio (%) (1)	≥10.5	14.55	15.00	12.86	12.11
  Leverage ratio (%) (2)	≥4	8.93	8.72	6.63	6.34
  Liquidity ratio (%) (2)	≥25	60.87	63.72	70.41	56.44
  Liquidity coverage ratio (%) (2)	≥100	253.97	339.61	353.94	300.37
  Non-performing loan ratio (%) (3)	≤5	1.80	1.85	2.08	2.37
  Allowance to non-performing loans (%) (3)	≥150	171.62	156.58	160.44	159.85
  Allowance to total loans (%) (3)	≥2.5	3.10	2.90	3.33	3.79
  Return on total assets (%)
  (on annualised basis)	0.85	0.61	0.63	0.70
  Cost-to-income ratio (%) (4)	15.53	23.06	22.53	26.62
  Notes:

  • (1) The capital adequacy ratios and relevant data are calculated by the Bank in accordance with the Administrative Measures for the Capital of Commercial Banks (Trial Implementation) issued by China Banking and Insurance Regulatory Commission and relevant requirements and based on statutory financial statements prepared under China Accounting Standards for Business Enterprises.

  • (2) Among the above regulatory indicators, leverage ratio, liquidity ratio, and liquidity coverage ratio are all data reported to the regulatory departments.

  • (3) Non-performing loan ratio was calculated by dividing total non-performing loan principal (excluding accrued interests) by gross loans and advances to customers (excluding accrued interests); the allowance to non-performing loans was calculated by dividing allowance for impairment losses on loans and advances to customers by total non-performing loan principal (excluding accrued interests); and the allowance to total loans was calculated by dividing allowance for impairment losses on loans and advances to customers by gross loans and advances to customers (excluding accrued interests).

  • (4) Calculated by dividing operating expenses (after deducting tax and surcharges) by operating income.