The return to plan A was blocked, and the issuance of no more than 305 million H shares by Guangzhou Rural Commercial Bank was approved

On November 17, Guangzhou Rural Commercial Bank announced that it had recently received the "Reply on Approving the Issuance of Overseas Listed Foreign Shares by Guangzhou Rural Commercial Bank Co., Ltd." (Csrc. [2021] No. 3602) issued by the China Securities Regulatory Commission on November 12, 2021, and the CSRC had approved the bank's application for the non-public issuance of H shares. Approved the issuance of no more than 305 million overseas listed foreign shares (H-share issuance) with a par value of 1 yuan per share, all of which are ordinary shares.

According to the data, Guangzhou Rural Commercial Bank was established in December 2009, formerly known as Guangzhou Rural Credit Cooperative, which was founded in 1952. In June 2017, Guangzhou Rural Commercial Bank was successfully listed in Hong Kong, becoming the first listed bank in Guangzhou. As of the end of 2020, Guangzhou Rural Commercial Bank has 642 branches, of which 624 are in Guangzhou.

According to the third quarterly report, as of September 30, 2021, the total asset value of Guangzhou Rural Commercial Bank was 981.706 billion yuan, and the total value of liabilities was 914.098 billion yuan.

On November 2, Guangzhou Rural Commercial Bank issued a voluntary announcement on the main financial data for the first three quarters of 2021, in the first three quarters, Guangzhou Rural Commercial Bank achieved operating income of 17.696 billion yuan, an increase of 923 million yuan or 5.50% over the nine-month period ended September 30, 2020, and an increase of 5.899 billion yuan or 50.01% over the six-month period ended June 30, 2021. Net profit was RMB3,306 million, an increase of RMB117 million, or 3.65%, compared to the nine-month period ended September 30, 2020. In the first half of this year, Guangzhou Rural Commercial Bank achieved a net profit of 3.660 billion yuan. Based on this calculation, Guangzhou Rural Commercial Bank lost 354 million yuan in net profit in the third quarter.

As of the end of September 2021, the capital adequacy ratio of Guangzhou Rural Commercial Bank under the legal caliber is 11.77%, the core Tier 1 capital adequacy ratio is 8.04%, and the Tier 1 capital adequacy ratio is 9.63%, meeting the regulatory requirements. As of September 30, 2021, the net profit under the legal person caliber of Guangzhou Rural Commercial Bank increased compared with the audited net profit of the same period of the previous year.

It is understood that after more than a year of listing in Hong Kong, Guangzhou Rural Commercial Bank launched the "Plan back to A" and released a prospectus in March 2019. However, on December 29, 2020, the CSRC announced that Guangzhou Rural Commercial Bank had applied to withdraw the declaration materials.

In this regard, Guangzhou Rural Commercial Bank issued an announcement explaining that "based on the adjustment of strategic planning, the Bank has decided to withdraw the A-share issuance application after careful consideration and careful study with the intermediaries related to the A-share issuance application; withdrawing the A-share issuance application will not cause a material adverse impact on the Bank." The Bank will choose the opportunity to restart the application for A-share issuance according to the actual situation. ”