On February 18, the basic information form of enterprises applying for initial public offering on the main board of Shanghai Stock Exchange of the CSRC showed that they had received the withdrawal of the application from Xiamen rural commercial bank.
It is reported that this time, Xiamen rural commercial bank took the initiative to adjust the listing plan, which is intended to use the adjustment period to sort out and optimize the equity, so as to lay a solid foundation for the next steady development and re application for listing.
to optimize the ownership structure
According to the official website of Xiamen rural commercial bank, the bank, formerly known as Xiamen rural credit cooperative association, was restructured into a joint-stock bank and officially opened on July 16, 2012. At present, there are 63 sub branches, 1 directly affiliated business department and 1 franchise institution (the first interbank business center in China). It mainly initiated the establishment of three rural banks and Xiamen Financial Leasing Co., Ltd.
At the end of 2017, Xiamen rural commercial bank submitted an IPO application to the CSRC and was accepted.
According to the 2022 interbank certificate of deposit issuance plan disclosed by Xiamen rural commercial bank on January 7 this year, as of the end of September 2021, the shareholders with a shareholding ratio of more than 5% of the bank include Xiamen Xiangyu Co.Ltd(600057) assets, Xiamen Port Development Co.Ltd(000905) , Xiamen International Convention and exhibition, Xiamen Itg Group Corp.Ltd(600755) financial holding, with a total shareholding ratio of 27.73%
source: 2022 interbank certificate of deposit issuance plan of Xiamen Rural Commercial Bank
In terms of performance, from January to November 2021, the bank realized an operating revenue of 2.509 billion yuan and a net profit of 862 million yuan. By the end of November 2021, the total asset scale had reached 128.531 billion yuan.
In terms of asset quality, the bank’s non-performing loan ratio has increased in recent years. By the end of December 2019, December 2020 and November 2021, the non-performing loan ratio was 0.96%, 0.85% and 1.29% respectively. Provision coverage also decreased, from 284.33% at the end of December 2019 to 193.17% at the end of November 2021
source: 2022 interbank certificate of deposit issuance plan of Xiamen Rural Commercial Bank
For the decline in profitability, the rating report issued by zhongchengxin in July 2021 believed that it was due to the guidance of fee reduction and profit transfer policy, the intensification of horizontal competition and the decline of capital market interest rate, which reduced the average return on profitable assets of the bank.
In terms of asset quality, zhongchengxin said that this was affected by factors such as changes in the international trade environment, losses in the operation of some local enterprises and farmers, poor capital turnover, and increased difficulties in the production and operation of small and Micro customers under the background of the epidemic, which put pressure on the asset quality of the bank.
However, considering the support record of the local government in the introduction of shareholders during the restructuring, the disposal of non-performing assets and business development since its establishment, as well as the importance of the bank in the local financial system, Xiamen municipal government has a strong willingness and ability to support the bank when necessary. Finally, the credit rating of the main body of Xiamen rural commercial bank maintained by Zhongxin is AA +.
In response to the withdrawal of the application, Xiamen rural commercial bank responded that the bank’s initiative to adjust the listing plan is based on the purpose of equity optimization. It is intended to use the adjustment period to sort out and optimize the equity, so as to lay a solid foundation for the next steady development and re application for listing.
several banks withdrew their A-share listing applications
According to incomplete statistics, in recent years, Shengjing bank, Huishang bank, Harbin Bank, Guangzhou rural commercial bank and other small and medium-sized banks have proposed to withdraw their A-share listing applications. The reasons for withdrawal vary from bank to bank.
On March 27, 2015, Shengjing bank said that due to the successful listing of its H shares, the sponsor of the listing application had withdrawn the A-share listing application from the CSRC.
On February 12, 2018, Huishang bank announced that in view of the fact that the company still needs to further negotiate with individual directors and shareholders on some matters related to relevant laws and regulations and the requirements of the CSRC, it decided to withdraw the application for A-share issuance.
On December 29, 2020, Guangzhou rural commercial bank announced that in view of the adjustment of strategic planning, after careful consideration and careful study with the intermediary agencies related to the company’s A-share issuance application, it decided to withdraw the A-share issuance application.
However, the objectives and plans for the subsequent issuance and listing of small and medium-sized banks have not changed. Guangzhou rural commercial bank said that the company’s business is operating well, and the withdrawal of the A-share issuance application will not have a significant adverse impact on the bank. It will choose an opportunity to restart the A-share issuance application according to the actual situation.
According to the data, as of February 20, 12 small and medium-sized banks were still in the queue for listing, of which 10 were in the “pre disclosed and updated” state, including Huzhou bank, Dongguan bank, Guangzhou bank, Jiangsu Dafeng rural commercial bank, Anhui Ma’anshan rural commercial bank, Guangdong Shunde Rural Commercial Bank, Xiamen rural commercial bank, Bozhou Yaodu rural commercial bank Jiangsu Haian rural commercial bank and Jiangsu Kunshan rural commercial bank.
