200 billion listed banks make a big move! Increase holdings of village and township banks, with an equity ratio of more than 50%

The first listed rural commercial bank in Zhejiang Province, Ruifeng Bank, has new news on its foreign equity investment.

According to the announcement of Ruifeng Bank on January 2, the bank has recently increased its shareholding in Shengzhou Ruifeng Village Bank and has completed the delivery of shares. After the completion of the increase, Ruifeng Bank's cumulative shareholding in Shengzhou Ruifeng Village Bank will exceed 50%, rising to nearly 52%.

In the past 2023, Ruifeng Bank announced equity investments in 4 local small banks in Zhejiang. In addition to the above-mentioned Shengzhou Ruifeng Village Bank's shareholding process, in June last year, Ruifeng Bank also announced that it had completed its investment in Yongkang Rural Commercial Bank. In addition, the equity investment process of Ruifeng Bank in Cangnan Rural Commercial Bank and Zhuji Rural Commercial Bank is subject to further announcement.

Increased shareholding in village and township banks, with an equity ratio of more than 50%

Shengzhou Ruifeng Village Bank is a joint-stock bank initiated and established by Ruifeng Bank in Shengzhou City, Zhejiang Province in December 2008, with a registered capital of 176 million yuan.

On June 16, 2023, the board of directors of Ruifeng Bank passed the relevant proposal, agreeing that the bank will increase its shareholding in Zhejiang Shengzhou Ruifeng Village Bank to more than 51% of its total share capital by means of agreement transfer of shares, auction of transferred shares, etc., and the increase of shares shall not exceed 10% of its total share capital.

According to the latest announcement of Ruifeng Bank, the above-mentioned increase in shares has been approved by the banking regulatory authority, and the bank has transferred a total of 11.5 million shares held by some corporate shareholders of Shengzhou Ruifeng Village Bank through the transfer of shares by agreement, accounting for 6.53% of its total share capital.

After the completion of this increase, Ruifeng Bank holds a total of 91.5 million shares of Shengzhou Ruifeng Village Bank, with a shareholding ratio of 51.99%. As of now, the delivery of the shares of the above matters has been completed.

For the increase in Shengzhou Ruifeng Village Bank, Ruifeng Bank said that after the completion of the increase, the bank will further strengthen the performance of the main sponsor bank, give strong support in terms of manpower, training, capital, etc., and support Shengzhou Ruifeng Village Bank to become small and scattered.

In terms of performance, as of the end of the second quarter of 2023, the total assets of Shengzhou Ruifeng Village Bank were 4.574 billion yuan (unaudited), an increase of 12.02% from the end of the previous year, and the total liabilities were 4.093 billion yuan (unaudited), an increase of 13.46% from the end of the previous year. The revenue for the first half of 2023 was 64.58 million yuan (unaudited) and the net profit was 17.3 million yuan (unaudited).

(Shengzhou Ruifeng Village Bank performance, unit: 10,000 yuan)

At present, the direction of supervision of village and township banks has shifted to the risk disposal of existing institutions. At the end of December 2020, the former China Banking and Insurance Regulatory Commission (CBIRC) issued the Notice on Matters Concerning Further Promoting the Reform and Restructuring of Rural Banks to Resolve Risks, encouraging the promotion of risk mitigation and reform and restructuring, which mentions "supporting the introduction of qualified strategic investors to help with acquisitions and capital increases". In April 2023, the former China Banking and Insurance Regulatory Commission (CBIRC) issued the Notice on the Banking and Insurance Industry to Do a Good Job in Comprehensively Promoting Rural Revitalization in 2023, which once again mentioned the need to "accelerate the reform of rural credit cooperatives and promote the structural restructuring of village and township banks".

Since 2023, the reform and restructuring of domestic village and township banks has accelerated significantly, and there have been a large number of cases in which the initiating banks have significantly increased their holdings in their village and township banks, or absorbed and merged village and township banks and converted them into sub-branches.

Released 4 equity investment plans in one year

Headquartered in Shaoxing City, Zhejiang Province, Ruifeng Bank is one of the first rural commercial banks to be restructured and established in Zhejiang Province. Formerly known as Shaoxing County Credit Union, it was restructured into Zhejiang Shaoxing County Rural Cooperative Bank in 2005 and restructured into a rural commercial bank in 2011. On June 25, 2021, Ruifeng Bank successfully landed on the main board of the Shanghai Stock Exchange.

Ruifeng Bank is the first A-share listed bank to disclose its results for the first half of 2023, with total assets of 189.909 billion yuan at the end of June 2023 and a net profit of 730 million yuan in the first half of the year, a year-on-year increase of 16.80%.

According to the third quarter report of 2023, as of the end of the third quarter, the bank's total assets reached 192.304 billion yuan, an increase of 20.47% from the end of the previous year, the non-performing loan ratio was 0.98%, and the provision coverage ratio was 299.77%. In terms of profitability, in the first three quarters of 2023, Ruifeng Bank achieved operating income of 2.897 billion yuan, a year-on-year increase of 7.09%, and net profit attributable to shareholders of listed companies of 1.258 billion yuan, a year-on-year increase of 16.88%.

In the past 2023, Ruifeng Bank has announced that it intends to invest in 4 banks. In addition to the above-mentioned Shengzhou Ruifeng Rural Bank, Ruifeng Bank also completed its investment in Zhejiang Yongkang Rural Commercial Bank and announced plans to make equity investments in Cangnan Rural Commercial Bank and Zhuji Rural Commercial Bank.

In early July 2023, Ruifeng Bank has acquired 16,399,363 shares held by some corporate shareholders of Yongkang Rural Commercial Bank by way of agreement transfer of shares and completed the delivery, becoming the main shareholder holding 6.96% of Yongkang Rural Commercial Bank, and has sent a director to Yongkang Rural Commercial Bank to participate in its decision-making affairs, which can have a significant impact on its business decisions.

As of the end of June 2023, the total assets of Yongkang Rural Commercial Bank were 66.781 billion yuan, and the operating income from January to June 2023 was 877 million yuan and the net profit was 391 million yuan.

Subsequently, Ruifeng Bank announced in August last year that in order to further optimize the strategic layout and enhance economic benefits, it plans to carry out equity investment in Zhejiang Cangnan Rural Commercial Bank and Zhuji Rural Commercial Bank, and intends to transfer the total shares of Cangnan Rural Commercial Bank and Zhuji Rural Commercial Bank through agreement transfer and auction transfer, etc., and the total shares of Cangnan Rural Commercial Bank and Zhuji Rural Commercial Bank shall not exceed 9.8% of their total share capital. The final subscription matters and subscription quantity are subject to the approval of the banking regulatory authority.

In 2023, Ruifeng Bank will hold a general election, and the current new leadership team is mostly "post-70s" and "post-80s".

At the beginning of September 2023, Comrade Zhang Weidong, former Secretary of the Party Committee and Chairman of Ruifeng Bank, resigned from relevant positions due to age, and Wu Zhihui served as Secretary of the Party Committee and Chairman of the Bank.

Wu Zhihui was born in October 1970 and was previously the Secretary of the Party Committee and Chairman of Zhuji Rural Commercial Bank. Prior to that, he also served as Secretary of the Party Committee and Chairman of Shengzhou Rural Cooperative Bank, Secretary of the Party Committee and Chairman of Shengzhou Rural Commercial Bank, and Secretary of the Party Committee and Chairman of Xinchang Rural Commercial Bank.

The president is promoted from within. In mid-July 2023, Ruifeng Bank appointed Chen Gangliang as its president. According to the biographical information, Chen Gangliang was born in 1975 and has a rich resume, with positions in grassroots, retail, international business and board offices. He has also served as a member of the Party Committee and Vice President of Zhuji Rural Commercial Bank, a member of the Party Committee and President of Shaoxing Hengxin Rural Commercial Bank, and the Secretary of the Party Committee and Chairman of Shengzhou Rural Commercial Bank.

Editor-in-charge: Wang Lulu

Proofreading: Zhu Tianting