Before the state-owned assets entered the shares, the quality of Nanyue Bank's own shareholders was difficult to say optimistic, and the management "blood change"
Recently, Guangdong Yuecai Investment Holdings Co., Ltd. (hereinafter referred to as "Guangdong Cai Holdings"), a state-owned enterprise in Guangdong Province, announced that the shareholder qualifications of the company's shareholding in Guangdong Nanyue Bank Co., Ltd. (hereinafter referred to as "Nanyue Bank") were approved by the Guangdong Banking and Insurance Regulatory Bureau and officially became the controlling shareholder of the bank. It is worth noting that in recent years, the equity structure of Nanyue Bank has been unstable and the quality of shareholders is worrying. At present, three of the top ten shareholders of the bank have been pledged or frozen, and the second and third largest shareholders have entered the bankruptcy reorganization and liquidation stages respectively.
In addition, in recent years, the senior management of Nanyue Bank has changed frequently, and there have been cases of file failure. In March 2017, Hong Chao, vice president of the bank, resigned, followed by the resignation of the president, assistant to the president, secretary of the board of directors and others. During this period, the post of President of Nanyue Bank was vacant for 1 year and 7 months. Industry insiders said that the frequent changes in the company's executives may have some impact on the company's short-term operations.
Shareholder quality is worrying
Before the introduction of state-owned holdings by Nanyue Bank, its main shareholders were mostly private enterprises. According to the 2020 annual report of Nanyue Bank, as of the end of 2020, only the seventh largest shareholder of the bank, Guangdong Guangsheng Holding Group Co., Ltd., the eighth largest shareholder, Zhanjiang Infrastructure Construction Investment Group Co., Ltd., was a state-owned enterprise, with a total holding ratio of 9.88%.
It is worth noting that the second largest shareholder of Nanyue Bank, Xinguang Holding Group Co., Ltd. (hereinafter referred to as "Sunbeam Holdings"), the third largest shareholder, Shenzhen Gionee Communication Equipment Co., Ltd. (hereinafter referred to as "Gionee Communications"), and the sixth largest shareholder, Guangdong Hengxing Group Co., Ltd., hold 16.5%, 8.88% and 6.4% of the shares of the bank respectively, and the three major shareholders have equity pledges or freezes. Among them, the second largest shareholder, Sunbeam Holdings, and the third shareholder, Gionee Communications, have entered the stage of bankruptcy reorganization and liquidation respectively.
*The shareholding of the top ten shareholders of Nanyue Bank, screenshot from the bank's 2020 annual report
It is reported that in 2018, Sunbeam Holdings failed to pay the "11 Sunbeam Bonds" in full and on time, constituting a substantial default. Subsequently, a number of bonds of Sunbeam Holdings defaulted, with a total amount of defaults of up to 12.539 billion yuan. Due to the collective default of the bonds issued by Sunbeam Holdings, the scale of its defaulted debts has further expanded, and it is deeply involved in a debt crisis, and has been listed by the court as a dishonest company, an executor, and a restricted high-consumption enterprise. At present, Sunbeam Holdings has entered the bankruptcy reorganization stage, and its equity in Nanyue Bank has been frozen by the court. On January 20, 2022, the Intermediate People's Court of Jinhua City, Zhejiang Province, will hold a hearing on the substantive merger bankruptcy applications of 35 enterprises, including Sunbeam Holdings.
In 2018, Gionee Communications fell into a crisis of capital chain rupture, and then applied for bankruptcy liquidation, and the court ruled that the company's accumulated liabilities were about 17.3 billion yuan. According to the official website of Tianyancha, in December 2021, Gionee Communications was again listed by the court as an executor, with an execution target of 676 million yuan, and the cause of the case was a financial contract loan dispute. As of January 2022, the company had 7 pieces of information on the executors, and the total amount of execution reached 931 million yuan. At present, the equity of Nanyue Bank held by Gionee Communications has been frozen by the court, and the company is still in the stage of bankruptcy liquidation.
In this regard, the latest appraisal report of United Credit Appraisal Co., Ltd. on Nanyue Bank pointed out that the equity pledge ratio of Nanyue Bank is high, the equity held by some shareholders with a large shareholding ratio has been frozen, and some of the corresponding related party transactions have defaulted. Considering that some shareholders are currently facing bankruptcy reorganization and bankruptcy liquidation, it is necessary to continue to pay attention to the risk of related party transactions between the bank and the above-mentioned shareholders and the possible impact on the stability of the shareholding structure on operations.
Meng Qingbin, a professor at the Business School of Chinese Min University, told the "China Science and Technology Investment" reporter, "Relatively speaking, private enterprises as the controlling shareholders of banks have a serious problem of financing constraints, and it is easy for controlling shareholders to take money from banks for self-financing through related party transactions after lack of money, which is not conducive to the operational stability of banks." If the proportion of equity pledge freezing of a bank is too high, the market will consider whether there is a lack of shareholder quality, potential bad debt risk and bankruptcy risk, which is not conducive to the bank to carry out interbank lending business, and over time, the bank's source of funds will be problematic. ”
Li Fengwen, a financial practitioner, told reporters, "Once the major shareholders of the bank are reorganized and liquidated, the quality of the equity is not good, which will affect the normal replenishment of the bank's capital, because the enterprises as shareholders are difficult to protect themselves, and how can they pay attention to the operation of the bank, how to supplement the capital of the bank, and even may sell the bank's equity to maintain their own operations." This has led to the instability of the bank's equity structure, which has seriously affected the operation of the bank. ”
Frequent executive changes
In recent years, the senior management of Nanyue Bank has changed frequently, which has aroused market attention. Since 2017, Nanyue Bank has experienced a major personnel "blood change" of the president, vice president, assistant to the president and secretary of the board of directors. In March 2017, Hong Chao, vice president of Nanyue Bank, resigned; in August 2017, Luo Yan, the president of the bank, applied to resign as a director and president, and the responsibilities of the president were performed by Gan Hongdai, executive vice president of the bank; subsequently, Huang Yuxiang, secretary of the bank's board of directors, and Tong Zeheng, assistant to the president, resigned successively.
Until October 2018, the former Guangzhou Rural Commercial Bank (01551. HK) Vice President Chen Wu assumed the long-vacant post of Governor of Nanyue Bank.
In 2019, Gan Hong, director and executive vice president of the bank, announced his resignation. In March 2019, Zhao Junhong, assistant to the president of Nanyue Bank, was promoted to vice president. In April 2019, Nanyue Bank's chairman, Han Chunjian, was transferred to party secretary, and was replaced by Jiang Dan, an executive from China Pacific Insurance (Hong Kong) Co., Ltd. In June 2019, the China Banking and Insurance Regulatory Commission (CBIRC) approved Xu Tingting, former vice president of the Guangzhou branch of Everbright Bank (601818.SH), as vice president of the bank, and Wang Yi, former president of the Zhanjiang branch of the Agricultural Bank of China (601288.SH), as the assistant to the president of the bank. In September 2019, the assistant to the president of the bank was changed to Qiu Wenrui, the former president of the Foshan branch of Nanyue Bank.
In October 2021, the Zhanjiang Municipal Non-public Economic Organization Committee of the Communist Party of China issued a notice to Nanyue Bank to adjust the main responsible person of the party committee: Han Chunjian was dismissed from the post of party secretary, and Jiang Dan, the chairman of the bank, was temporarily responsible for the work of the party committee. Previously, Han Chunjian served as the chairman of Nanyue Bank for 14 years.
*The changes in the senior management of Nanyue Bank are based on the information on the official website of the Banking and Insurance Regulatory Commission
A bank market analyst told the "China Science and Technology Investment" reporter that in general, the frequent changes in the company's executives may have some impact on the company's short-term operation. In the short term, it may lead to the lack of internal management, vague development goals, decreased work execution, difficulty in effectively implementing some work, difficult to form a team with centripetal force, and to a certain extent, it will cause the market to worry about the company's development prospects, etc., which will have a certain impact on the company's performance and financing. However, for the market, in the end, it depends on the company's operating performance and development results.
In recent years, Nanyue Bank may have been affected by the quality of shareholders and the frequent changes in senior management, its performance has been weak, and it has been frequently named by regulators due to internal control issues.
According to the information disclosed in the annual report of Nanyue Bank, from 2018 to 2020, the bank's operating income was 5.316 billion yuan, 5.648 billion yuan and 4.938 billion yuan, an increase of -0.99%, 6.23% and -12.57% respectively, and the net profit was 1.431 billion yuan, 1.637 billion yuan and 1.535 billion yuan, respectively, an increase of 8.12%, 14.36% and -6.21% respectively. As of the end of September 2021, the operating performance of Nanyue Bank has not improved, and the bank's operating income and net profit were 2.571 billion yuan and 405 million yuan, respectively; down 29.56% and 65.11% year-on-year, respectively, and the operating income and net profit have dropped sharply.
In addition, in 2021, Nanyue Bank was named by the regulator for four times. In January 2021, Nanyue Bank was fined 1.97 million yuan by the central bank for violations such as failing to perform customer identification obligations as required, and fined relevant responsible persons a total of 88,000 yuan; in April, the Ministry of Industry and Information Technology notified the "Guangdong Nanyue Bank" APP of illegally collecting personal information and the app's mandatory, frequent and excessive authority; in July, the China Association of Interbank Market Traders disclosed self-discipline sanction information, saying that Nanyue Bank, as a market maker in the interbank bond market, participated in false transactions when carrying out market making business In the same month, Nanyue Bank was fined 1.722 million yuan and warned by the central bank for four illegal acts, including violations of credit reporting management regulations.
In response to related issues such as the quality of equity and the change of senior management of Nanyue Bank, the reporter sent a letter to Nanyue Bank, and as of press time, it has not received a reply.
Source: Zhongke Finance