Ping An Bank Co., Ltd. Shanghai Suhewan Sub-branch

Ping An Bank Co., Ltd. is a national joint-stock commercial bank headquartered in Shenzhen (referred to as "Ping An Bank" on the Shenzhen Stock Exchange, with stock code 000001). Its predecessor, Shenzhen Development Bank Co., Ltd., absorbed and merged with the original Ping An Bank in June 2012 and was renamed Ping An Bank in July of the same year. Ping An Insurance (Group) Company of China, Ltd. and its subsidiaries collectively hold 59% of Ping An Bank's shares, making them the controlling shareholder. As of the end of June 2015, Ping An Bank had over 35,800 employees, providing various financial services to customers through 45 branches and 855 outlets nationwide.

Ping An Bank, centering on the strategic goal of becoming the "best commercial bank," adheres to the tenet of "customer-centric externally, people-oriented internally," and consistently upholds the business philosophy of "reform, innovation, and development." With "four-wheel drive" focusing on corporate, retail, interbank, and investment banking businesses, and featuring "professionalization, intensification, integrated finance, and internet finance," the bank operates "beyond the bank" to actively innovate products and business models. Notable innovations include IoT finance, photon payment, Orange e-Net, Pocket Bank, Bank E-Connect, industrial funds, and Dai Dai Ping An, with significant results in promotion and implementation. Meanwhile, Ping An Bank continues to deepen organizational reform by fully implementing the divisional system, forming a comprehensive coverage model across seven industry chains: real estate, energy and minerals, transportation, modern logistics, modern agriculture, medical and health, and cultural tourism. The overall divisional structure has expanded to "11+6+1" (11 product divisions, 6 industry divisions, and 1 platform division). The five major strategic layouts of "healthcare, food, housing, transportation, and entertainment" are basically completed, aiming to better serve the real economy through professional operations and comprehensively create the brand image of "Ping An Bank, truly different."

As of the end of June 2015, Ping An Bank's total assets reached RMB 2,570.508 billion, up 17.56% from the beginning of the year; deposits amounted to RMB 1,655.112 billion, up 7.95%; loans and advances (including discounts) stood at RMB 1,187.834 billion, up 15.92%. Operating income was RMB 46.575 billion, a year-on-year increase of 34.09%; net profit was RMB 11.585 billion, up 15.02%; capital adequacy ratio was 10.96%, and Tier 1 capital adequacy ratio and core Tier 1 capital adequacy ratio were 8.85%, meeting regulatory standards.

In corporate banking, as of the end of June 2015, corporate deposits grew by 8.15% from the beginning of the year, corporate loans (excluding discounts) increased by 20.25%, and trade finance credit balances reached RMB 484.5 billion, up 9.31%. Ping An Bank's "Orange e-Net" is positioned as "supply chain finance + internet finance," committed to multi-party collaboration to build an ecosystem for "repeat customer business," strengthening cooperation between platforms, and establishing broad alliances with various market entities based on financial functions. The service model extends from B2B to B2C and C2B, achieving the integration of "four flows" to create an ecosystem for industry chain finance. By the first half of 2015, registered users of "Orange e-Net" exceeded 500,000. In small enterprise business, using the "Dai Dai Ping An Business Card" as a platform, the bank combines small-amount unsecured revolving loans with debit card functions and benefits, offering features such as "borrow and repay at will, interest calculated daily." From the customer's perspective, it comprehensively arranges settlement, wealth management, and value-added services, constructing a small enterprise financial business model that integrates standardization, intensification, integrated finance, and internet finance. At the end of June 2015, Ping An Bank, together with Perception Technology, released the world's first IoT financial product, with IoT movable property supervision technology and services officially launched. IoT technology enables supervision of movable property without any gaps, greatly reducing the risk of pledge of movable property. The combination of IoT and finance will profoundly change the model of supply chain finance and also address the difficulty of loans for small and micro enterprises.

In retail banking, as of the end of June 2015, retail deposit balances increased by 6.95% from the beginning of the year, and retail loans (including credit cards) grew by 8.9%; assets under personal customer management grew rapidly, with period-end balances reaching RMB 588.103 billion, up 17.2% from the beginning of the year. Channels such as private banking, wealth management, community finance, and online finance developed rapidly, while asset businesses like credit cards, auto finance, and consumer finance continued to improve steadily. Pocket Bank (mobile banking) and Ping An Orange (Ping An Direct Bank) continuously explore internet finance models, leveraging integrated finance advantages and exploring innovative business models such as mobile internet, big data, and O2O, gradually transforming from service channels to business operation platforms, exploring the construction of a retail online finance business model. Meanwhile, the industry's first intelligent "O2O platform" Pocket Community is being piloted in ten major cities across the country, including Shenzhen, Zhengzhou, Nanjing, and Hangzhou, with plans to expand usage scenarios further. Additionally, in the first half of 2015, Ping An Bank launched an innovative mobile payment technology—photon payment—which breaks through restrictions on networks, quotas, and phone models, opening a new mobile payment experience for customers.

In interbank treasury business, the "Bank E-Connect" platform continues to deepen, and the influence of the three major business brands—"Gold Business," "Option Expert," and "Smart Trading"—continues to grow. Adhering to the operational strategy of "light capital, optimized structure, strong customers, and good benefits," in the first half of 2015, treasury business accelerated the transformation of business models, continuously optimized interbank asset and liability structures, improved investment returns, reduced interbank liability costs, expanded intermediary business income channels, and continuously optimized the income structure. At the same time, Ping An Bank's Treasury Operations Center was successfully listed, becoming the second bank treasury business specialized institution approved by the China Banking Regulatory Commission.

In investment banking, as of the first half of 2015, intermediary business income reached RMB 3.695 billion, a year-on-year increase of 154%; period-end asset custody net balance was RMB 2.17 trillion, up 20% from the beginning of the year, generating custody fee income of RMB 1.519 billion, a year-on-year increase of 157%. The "industrial fund" business model continues to innovate, achieving significant breakthroughs in overseas M&A business, client equity investment, and M&A fund business in collaboration with industry leaders.

In corporate culture development, Ping An Bank values employees and cultivates talent. The bank has established scientific performance appraisal and incentive mechanisms, providing fair evaluation systems and diverse growth opportunities. We focus on talent development, fully utilizing Ping An's integrated financial resources and external high-end training resources, launching one of the first comprehensive financial management trainee programs, implementing high-potential trainee and Orange Navigation trainee development plans, and reserving talent for integrated finance development. Simultaneously, we strive to build a "home culture," conducting employee care initiatives, organizing various health and sports clubs, alleviating employee concerns, ensuring their physical and mental well-being, and creating a peaceful home where employees can entrust their entire lives.

In terms of corporate social responsibility, Ping An Bank demonstrates courage in taking responsibility and giving back to society. The bank continuously improves its social responsibility management mechanisms, incorporating sustainable development into the overall strategy. We actively develop inclusive finance, promote green credit, support innovation and development in low-carbon economy, circular economy, and small and micro economy. We engage in disaster relief, poverty alleviation and educational support, assist vulnerable groups, and carry out volunteer services, spreading positive energy and giving back to society through concrete actions.

In recent years, Ping An Bank has won multiple honors such as "Best Joint-Stock Bank of the Year," "Most Respected Top 100 Listed Companies by Investors," "Best Supply Chain Finance Service Bank," "Best Small and Medium Enterprise Bank," "Most Innovative Bank," "Best Corporate Social Responsibility Award," and "China's Most Respected Chinese Bank." "Orange E-Net" was awarded the "Top Ten Financial Product Innovation Award" by The Banker and the "2015 Excellent Online Supply Chain Finance Case Award." "Ping An Orange" received the "Best Business Model Innovation of the Year" awarded by the China Online Banking Alliance and the "Top Ten Internet Finance Innovation of the Year" by The Banker, among other major awards.

Looking ahead, Ping An Bank will firmly follow the strategic steps of the "Five-Year Plan," relying on the integrated financial platform of Ping An Group, aiming to provide customers with a comprehensive integrated financial service experience of "one customer, one account, multiple products, one-stop service." It will actively adapt to the "new normal," build core strengths in integrated finance, focus on resource integration, platform operation, and professional services, actively innovate products and business models, and create greater value for customers, employees, shareholders, and society through differentiated services, stable operations, and outstanding performance!