Recently, China Merchants Bank released a new annual report. In 2023, the company's revenue was 339.123 billion yuan, down 1.64 percent from the same period last year, and its net profit attributable to its parent was 146.602 billion yuan, up 6.22 percent from the same period last year. It plans to pay a cash dividend of 1.972 yuan per share (including tax). At the same time, the company announced on the Hong Kong Stock Exchange that it intends to set up a branch in the Dubai International Financial Centre (DIFC) in the United Arab Emirates.

Source: Photograph Network

Steady growth in net profit

On March 26, 2024, China Merchants Bank Co., Ltd. (securities abbreviation: China Merchants Bank; securities code: 600036.SH) released its 2023 annual report.

According to the disclosure, in 2023, China Merchants Bank achieved operating income of 339.123 billion yuan, down 1.64 percent year-on-year, achieved operating profit of 176.663 billion yuan, up 6.97 percent year-on-year, achieved net profit of 146.602 billion yuan, up 6.22 percent year-on-year, achieved net profit of 146.047 billion yuan, up 6.18 percent year-on-year.

In addition, in 2023, the company's basic earnings per share attributable to the bank's common shareholders was 5.63 yuan, up 7.03 percent year-on-year, and after deducting non-recurring gains and losses, the basic earnings per share attributable to the bank's common shareholders was 5.61 yuan, up 6.86 percent year-on-year.

In terms of scale indicators, at the end of 2023, the company's total assets were 11028.483 billion yuan, up 8.77 percent year-on-year, of which total loans and advances were 6508.865 billion yuan, up 7.56 percent year-on-year, non-performing loans were 61.579 billion yuan, and loan loss provisions were 269.534 billion yuan. At the end of 2023, the company's total liabilities were 9942.754 billion yuan, up 8.25 from the same period of last year. Among them, the total customer deposits were 8155.438 billion yuan, up 8.22 from the same period of last year. The company's customer demand deposits and time deposits were 2644.685 billion yuan and 2015.837 billion yuan respectively, with year-on-year changes of -4.27 and 20.79 respectively. Retail demand deposits and time deposits were 1829.612 billion yuan and 1665.304 billion yuan respectively, the year-on-year changes were -7.75 per cent and 48.58 per cent, respectively.

In terms of asset quality, at the end of 2023, the company's non-performing loan ratio, provision coverage ratio, and loan provision ratio were 0.95, 437.70, and 4.14, respectively, down 0.01 percentage points, 13.09 percentage points, and 0.18 percentage points year-on-year, respectively.

During the reporting period, the Company insisted on focusing on the acquisition of value customers, digging into the upgraded consumption scenarios and individual or household comprehensive consumption scenarios encouraged by national policies, and steadily developing its consumer credit business. The consumer credit business is growing steadily while the risk is generally stable.

As of the end of the reporting period, the company's consumer credit business (including credit cards) had a non-performing loan amount of 19.666 billion yuan, an increase of 1.827 billion yuan from the end of the previous year, and the non-performing loan ratio was 1.59, a decrease of 0.05 percentage points from the end of the previous year; the concerned loan rate was 2.66, compared with The end of the previous year decreased by 0.20 percentage points; the overdue loan rate was 2.74, a decrease of 0.38 percentage points.

In terms of risk management and control of small and micro loan business, as of the end of the reporting period, the company's retail small and micro loan non-performing rate was 0.61, a decrease of 0.03 percentage points from the end of the previous year; the attention rate was 0.35, a decrease of 0.05 percentage points from the end of the previous year; the overdue rate was 0.70%, a decrease of 0.03 percentage points from the end of the previous year.

In terms of dividends, according to the 2023 profit distribution plan of China Merchants Bank, a cash dividend of 1.972 yuan (including tax) will be distributed per share in 2023. The cash dividend of China Merchants Bank accounted for 35.01 per cent of the net profit attributable to the bank's common shareholders in the consolidated statement, up two percentage points from 33 per cent before.

Branch in Dubai

According to the annual report, the company's business is mainly in the Chinese market, and its distribution network is mainly distributed in major central cities in China, as well as international financial centers such as New York, London, Singapore, Luxembourg and Sydney.

by the end of 2023, the company has 143 branches and 1781 sub-branches in China, 2 branch-level exclusive institutions (credit card center and capital operation center),2226 self-service banks, 5281 self-service devices and 7603 visual devices. London branch in the UK; Singapore branch in Singapore; Luxembourg branch in Luxembourg; Sydney branch in Australia.

In March 2024, the company reviewed and approved the "Proposal on the Establishment of Dubai Branch", agreeing to establish a branch in the Dubai International Financial Center (DIFC) in the UAE, and applying to the Dubai Financial Services Authority (DFSA) for licensing. The working capital is US $50 million, and the name of the institution is "China Merchants Bank Co., Ltd. Dubai Financial Center Branch", referred to as "China Merchants Bank Dubai Branch", the final approval document of the State Administration of Financial Supervision and Administration shall prevail.

Two-way capital flows

Since 2023, a number of listed companies have invested in the Middle East.

in December 2023, Zhenjiang shares (603507.SH) plans to set up an overseas wholly-owned subsidiary company JZNEE Renewable Energy Technology Arabian LLC (proposed name) in Saudi Arabia with its own funds through its subsidiary Zhenjiang (hong kong) holding co., ltd. (proposed) with a total investment of 28 million Saudi riyals in order to meet the growing demand of Saudi Arabia's new energy market for the company's photovoltaic supports and other products and improve its competitiveness and profitability.

The company believes that the Saudi Arabian market is the largest economy in the Middle East and North Africa, with a stable local political and business environment and relatively low country risk. In recent years, the Saudi Arabian government has continued to advocate diversified energy development, using its unique lighting conditions to vigorously develop photovoltaic projects and optimize the power energy structure. This investment will help to further expand the scale of the company's overseas photovoltaic business, optimize the company's photovoltaic market layout, enhance the competitiveness and brand influence of the company's photovoltaic products in overseas markets, and obtain investment opportunities for overseas high-quality photovoltaic projects.

in September 2023, central control technology (688777.SH) said that the company planned to set up four wholly-owned subsidiaries abroad through central control international holding investment, an overseas investment holding platform, with a total investment of 1743.61 million RMB, with the source of funds raised by the company's GDR. Among them, Central Control Manufacturing (Saudi) is intended to be the company's production and integrated manufacturing base for automated control systems, analyzer cabins, robots and IoT equipment in Saudi Arabia.

in addition, the company will join hands with the middle east head energy enterprises to build an advanced intelligent manufacturing base in the middle east, covering such businesses as control system integration, analyzer cabin integration, robot assembly, internet of things equipment assembly, 5S store main warehouse warehouse, etc. to realize efficient and smooth information flow, process flow and logistics, and better demonstrate the company's advanced and reliable manufacturing technology to customers in the middle east and Africa, and Saudi Aramco as the representative of the national oil and gas, petrochemical major customers as the key breakthrough direction, expand the Middle East and Africa business, further expand the company's international business scale.

in may 2023, weilong shares (002871.SZ) plans to increase its capital to wholly-owned subsidiary weilong (hong kong) industrial co., ltd. (hereinafter referred to as "hong kong weilong") by us $2.55 million in cash. at the same time, hong kong weilong plans to invest us $2.55 million to set up a joint venture company weilong arab co., ltd. (hereinafter referred to as "joint venture"). Shareholders Hong Kong Weilong and Saudi YASTEM hold 51% and 49% of the joint venture respectively.

The company said that Saudi Arabia, as the world's largest oil producer, has strong development potential. The establishment of the joint venture company can make full use of the vast market of Saudi Arabia and the company's own technical advantages, promote the company's business development in the Middle East under the strategy of "localization process" in line with Saudi Arabia, strengthen the company's international market layout, and enhance the company's competitiveness in the international market.

In fact, in recent years, in the primary market, VC/PE have organized groups to inspect the Middle East. The "local tyrants" have invested their funds in China's "unicorns" while introducing cutting-edge technology to their own country. Chinese emerging companies have realized the two-way flow of capital.

In the secondary market, Middle East assets continue to increase their A- share investment, which has become an important force affecting the market. As of March 26, 2024, the Kuwait Government Investment Authority appeared in the top ten shareholders of 25 A- share listed companies, of which 13 had a circulating market value of more than 10 billion yuan; the Abu Dhabi Investment Authority appeared in 24 A- share listed companies Among the top ten shareholders of the company, among them, 3 have a circulating market value of more than 100 billion yuan, and 21 have a circulating market value of more than 10 billion yuan.

Data source: Choice financial terminal