The previously rumored Bank Of Ningbo Co.Ltd(002142) stake in Huarong consumer finance came true.
On December 27, China Huarong announced on the Hong Kong stock exchange that the company signed the unlisted state-owned property rights trading contract for financial enterprises with the transferee Bank Of Ningbo Co.Ltd(002142) and planned to transfer 70% equity of Huarong consumer finance to the other party. This equity transfer was publicly listed and sold through Beijing financial assets exchange.
According to the announcement, the initial listing price is the asset appraisal result filed by the Ministry of finance, and the benchmark date is June 30, 2021. The registered appraisal price of all shareholders’ equity of Huarong consumer finance is RMB 1038617500. Accordingly, the appraisal price of Huarong consumer finance equity transferred this time is RMB 727032300. The final transfer price of this equity transfer determined through online bidding in Beijin is RMB 109.10323 million.
According to the announcement, after obtaining the approval of relevant regulatory authorities, China Huarong and Bank Of Ningbo Co.Ltd(002142) will jointly handle the registration of equity change and complete the necessary operation processes such as industrial and commercial change; The announcement on the resolution of the fifth interim meeting of the seventh board of directors in 2021 issued on Bank Of Ningbo Co.Ltd(002142) 27 also disclosed the above transaction, and said that the equity transfer still needs to be approved by the relevant regulatory authorities.
This means that Bank Of Ningbo Co.Ltd(002142) is about to land the long-standing gold consumption license. Previously, Bank Of Ningbo Co.Ltd(002142) actively tried to establish a consumer finance company, but failed in the end; In June this year, Bank Of Ningbo Co.Ltd(002142) issued a proposal on Bank Of Ningbo Co.Ltd(002142) foreign equity investment, which said that according to the company’s strategic planning and development requirements, the company plans to invest no more than 5 billion yuan to take shares in a non bank financial institution by means of equity investment, including but not limited to trust and consumer finance companies. The shareholding ratio shall not be less than 51%. At that time, it was rumored that the “non bank financial institution” to be invested by Bank Of Ningbo Co.Ltd(002142) was Huarong consumer finance.
Now, after half a year, Bank Of Ningbo Co.Ltd(002142) has finally made progress in taking shares in Huarong consumer finance. In the view of insiders, this will further broaden the retail service radius of the bank, form complementary advantages with its “big retail” line, drive the profit proportion of big retail and light capital business to increase continuously, and enhance the sustainability of development. According to the Bank Of Ningbo Co.Ltd(002142) semi annual report, by the end of June, the bank had issued personal consumer loans of RMB 1984.424 billion, an increase of 11.24% over the end of the previous year.
In addition, in terms of Huarong consumer finance, Huarong consumer finance was established in January 2016, registered in Hefei, Anhui Province, with a registered capital of RMB 900 million. It was initiated by China Huarong as the main investor and jointly established with Hefei Department Store Group Co.Ltd(000417) , Shenzhen Huaqiang Industry Co.Ltd(000062) Asset Management Group Co., Ltd. and Anhui Xin’an Asset Management Co., Ltd., with shareholding ratios of 70%, 15.33%, 8% and 6.67% respectively.
In the first half of this year, Huarong consumer finance achieved an operating revenue of 637 million yuan, an operating profit of 1398700 yuan and a net profit of 5566000 yuan; By the end of June, the total assets of the company were 7.516 billion yuan and the total liabilities were 6.721 billion yuan.
The transfer of Huarong consumer finance equity is regarded as a major action of “slimming down” by China Huarong in the industry. In recent years, the main tone of Huarong is to return to the main business and accelerate the reduction of institutions. In addition to Huarong consumer finance, China Huarong also announced the transfer of assets such as Huarong securities, Huarong Xiangjiang bank, Huarong financial leasing, Huarong Rongda futures and Huarong Jinshang asset management company.
(First Finance)
