Summary of Results

As of December 31, 2023:

■Total assets reached RMB1,732.734 billion, an increase of RMB73.274 billion or 4.42% from the end of the previous year.

■ Closely following the trend of national economic development momentum transformation and the key direction of industrial upgrading, the balance of loans to high-tech manufacturing industries was RMB34.538 billion, accounting for 38.99% of all manufacturing loans.

■ Actively implemented the national green development concept and sustainable development strategy, and took multiple measures to deepen the connotation of green financial services, with the balance of green loans reaching RMB31.259 billion, a year-on-year increase of 14.48%.

On March 28, 2024, Bohai Bank Co., Ltd. (hereinafter referred to as "Bohai Bank" or "the Bank"; stock code: 9668.HK) HK) announced its audited results for the year ended 31 December 2023.

In 2023, the mainland's economy will rebound, its momentum will increase, and high-quality development will be steadily promoted. At the same time, Bohai Bank oversees the work of the whole bank with the principle of "revitalizing stocks, cultivating increments, and improving quality", adheres to the two core tasks of management and service, optimizes business layout, makes steady progress in asset scale, improves the quality and increment of liability business, continuously optimizes income structure, and maintains stable asset quality.

As of the end of the Reporting Period, Bohai Bank's total assets reached RMB1.73 trillion, an increase of RMB73.274 billion or 4.42% from the end of the previous year, operating income of RMB24.997 billion and net profit of RMB5.081 billion during the year, with controllable asset quality risks, non-performing loan ratio of 1.78%, loan provision ratio of 2.79% and provision coverage ratio of 156.94%, in line with regulatory requirements.

In 2023, the overall operation of the mainland's financial industry will be stable, risks will be controllable, and support for key areas and weak links of the national economy will continue to increase, helping to accelerate the construction of a modern industrial system and enhance the momentum of economic development. Wang Jinhong, Secretary of the Party Committee and Chairman of Bohai Bank, said that in 2024, Bohai Bank will implement the spirit of the Central Economic Work Conference and the Central Financial Work Conference, adhere to the principle of seeking progress while maintaining stability, promoting stability with progress, establishing first and then breaking through, continue to gain insight into the "time" and "potential", deepen "knowledge" and "action", coordinate "stability" and "progress", abide by financial laws, abide by financial goodness, seek financial truth, strengthen self-revolution and mission, do in-depth and detailed "five major articles", and promote various tasks to achieve results. We will build Bohai Bank into a modern financial enterprise with Chinese characteristics with strong political leadership, clear strategic positioning, effective corporate governance, improved business quality and efficiency, controllable overall risks, and healthy and sustainable development.

Qu Hongzhi, Deputy Secretary of the Party Committee and President of Bohai Bank, said that in 2024, Bohai Bank will fully implement the requirements of regulatory policies, adhere to the general tone of seeking progress while maintaining stability, make good use of the methodology of "stability", anchor the breakthrough point of "progress", enhance the initiative of "establishment", be pragmatic and earnest, and be pragmatic and innovative, and be proactive in transforming the mode, adjusting the structure, improving the quality and increasing the efficiency, so as to promote high-quality development and achieve new results.

The implementation of the strategy is steady and effective, and the quality of business development is stable and improving

According to the 2023 annual report of Bohai Bank, the bank achieved operating income of RMB 24.997 billion and net profit of RMB 5.081 billion during the year, with steady and effective strategy implementation and stable overall development trend.

The scale of assets has grown steadily, and the debt structure has been continuously optimized. As of December 31, 2023, Bohai Bank's total assets reached RMB1,732.734 billion, an increase of RMB73.274 billion or 4.42% from the end of the previous year. Total liabilities amounted to RMB1,618.331 billion, an increase of RMB68.822 billion, or 4.44%, from the end of the previous year, of which deposits were RMB934.594 billion, an increase of RMB70.660 billion, or 8.18%, from the end of the previous year.

While the operation stabilized, Bohai Bank's asset quality remained stable and the overall risk was controllable. As of the end of the Reporting Period, the balance of non-performing loans of the Bank was RMB16.558 billion, a decrease of RMB249 million from the end of the previous year, with a non-performing loan ratio of 1.78%, a loan provision ratio of 2.79% and a provision coverage ratio of 156.94%, in line with regulatory requirements.

At the same time, the service radius of Bohai Bank continues to expand. As of the end of the reporting period, it has been stationed in 25 provinces, municipalities and autonomous regions, 5 sub-provincial cities and the Hong Kong Special Administrative Region, covering 65 key cities across the country, and has established 36 first-level branches (including 3 directly affiliated branches in Suzhou, Qingdao and Ningbo and 1 overseas branch), 33 second-level branches, 283 sub-branches, 18 community small and micro branches, and the total number of officially opened institutional outlets has reached 370.

Grasp the essence of the "five major articles" and serve entities with new results

The Central Financial Work Conference emphasized that it is necessary to unswervingly follow the path of financial development with Chinese characteristics, accelerate the construction of a financial power, promote high-quality financial development, and put forward the "five major articles" of science and technology finance, green finance, inclusive finance, pension finance and digital finance.

Bohai Bank deeply grasps the political and people's nature of financial work, firmly establishes the political consciousness of providing high-quality financial services for economic and social development, actively serves the national strategy, and realizes the two-way rush to support the high-quality development of the real economy and itself.

According to the annual report, in 2023, Bohai Bank will continue to increase financial support for manufacturing, private small and micro enterprises, green finance, agriculture-related and other fields, and actively help expand domestic demand. As of the end of the Reporting Period, the balance of the bank's loans to the high-tech manufacturing industry was RMB34.538 billion, accounting for 38.99% of the total manufacturing loans, and the balance of green loans was RMB31.259 billion, representing a year-on-year increase of 14.48%.

At the same time, Bohai Bank thoroughly implements the state's decision-making and deployment on inclusive finance, actively connects with small and micro enterprises, accelerates the iteration and innovation of key products, and strives to improve the quality of financial services for small and micro enterprises. In 2023, the bank will continue to expand the scope of financial services for small and micro enterprises by focusing on regional characteristic industries, advantageous industrial clusters, core supply chains and characteristic industrial parks, focusing on circles, systems, platforms, ecosystems and scenarios, and will continue to iteratively upgrade its flagship product "Boyin Housing Flash Loan" and complete the docking of the two major base products of "Boyin Merchant Loan", providing customers with personalized financial services and customized marketing solutions, covering tourism, medicine, catering, logistics, agriculture, rural areas and other fields, and successfully developing "Boyin Rural Loan" in the early stage On the basis of product experience, we continue to develop inclusive agriculture-related products, and have successively launched inclusive agriculture-related innovative products such as "Bo Grain Loan", "Bo Niu Loan" and "Bo Agricultural Loan - Inclusive Agriculture and Animal Husbandry". As of the end of 2023, the balance of the bank's agriculture-related loans was RMB56.313 billion, an increase of 11.35% from the end of the previous year.

On the other hand, Bohai Bank adheres to the customer-centric, aims at the positioning of "transaction bank", returns to the origin of transactions, and improves the depth and breadth of bank-enterprise cooperation with professional, comprehensive and comprehensive solutions, so as to bring better financial services to enterprise operations and better serve the real economy.

Based on the self-built supply chain platform, the bank also promotes the joint construction of scenario platforms with core enterprises, provides comprehensive financial service solutions around various transaction links of enterprises, and strives to build a product pedigree of "Boyin e-chain" to meet the financial needs of enterprises in various aspects. During the reporting period, the supply chain finance investment reached RMB188.151 billion, a year-on-year increase of 81.89%.

As the only national joint-stock commercial bank initiated and established by a foreign bank, Bohai Bank's cross-border payment brand "Bohai Bank Global Remittance" has also undergone iterative updates from version 1.0 to 4.0, driving the international settlement business volume of 54.971 billion US dollars and adding 833 new international settlement customers through the industry's first "transparent window + dynamic map navigation" function.

Digital transformation accelerates the improvement of the quality and efficiency of financial services

Digital transformation has become the choice for financial institutions to grasp the new opportunities of the new round of technological revolution and industrial transformation, and continue to play the two-wheel driving role of digital technology and data elements to help financial institutions improve the quality and efficiency of services.

In recent years, Bohai Bank has adhered to the development vision of "a modern treasury manager with the best experience", regarded digital transformation as the core driving force for high-quality development in the new era, adhered to the drive of scientific and technological innovation, continued to promote the independence and controllability of key core technologies, actively served and done a good job in the work related to the "Five Major Articles", focused on the development of digital finance, and activated the momentum of digital operation.

By the end of 2023, the bank had 1,554 scientific and technological personnel, accounting for 11.3% of the bank's contract employees.

It is worth noting that with the continuous deepening of digital transformation, the quality and efficiency of Bohai Bank's financial services have also been significantly improved.

In 2023, Bohai Bank successfully upgraded its mobile banking to version 6.2 around the "dual-headed model" of "finance + life", achieved remarkable results in customers' online digital operation, doubled the scale of monthly active customers on mobile terminals, and focused on polishing and enriching high-frequency usage scenarios and product service areas such as "Bohai Bank E Finance", "Bohai Bank E Loan", "Bohai Bank E Payment" and "Bohai Bank E Life", so as to comprehensively improve service capabilities and customer experience.

In order to provide more comprehensive, three-dimensional, and zero-distance comprehensive financial services, Bohai Bank focuses on online user operation and portal channel construction, strengthens the ecological construction of WeChat and the linkage of ecological channels, accurately reaches target customer groups through unified identity identification of WeChat ecology, deeply cultivates high-quality customer groups, makes full use of financial technology, provides customers with companionship remote comprehensive financial innovation services, builds a new business format for remote banking operation, and improves ecological digital operation capabilities. Multi-channel linkage mechanisms such as 5G message banking can achieve accurate and rapid access to multiple customers and customer groups, and provide customers with suitable financial products and services and life rights services.

Pragmatic and dedicated, to create a responsible Bohai, professional Bohai, fine Bohai

The pace of high-quality services for the real economy does not stop, and Bohai Bank has always adhered to the unity of economic responsibility and social responsibility.

Looking forward to the future, Bohai Bank will adhere to the full implementation of the spirit of the 20th National Congress of the Communist Party of China, conscientiously implement the spirit of the Central Financial Work Conference and the Central Economic Work Conference, resolutely implement the decisions and arrangements of the Party Central Committee and the State Council, fully implement the requirements of regulatory policies, keep in mind the fundamental purpose of finance, play the first move of "three new" and "three quantities", deeply cultivate the responsibility of the seven major financial formats, and under the leadership of the Party Committee of the head office, adhere to the general tone of the work of seeking progress while maintaining stability, do in-depth and detailed "five major articles", and continue to promote the "ten special tasks" , and strive to build a responsible, professional and fine Bohai, and promote high-quality development to achieve new results.