Can the increase of executives’ holdings defeat the decline? The bank’s shareholders chose to reduce their holdings.
Jiangsu High Hope International Group Corporation(600981) march 24 announced that Huihong Zhongjin and Huihong Zhongding, the holding subsidiaries of the company, planned to reduce their holdings of Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) shares through centralized bidding trading and block trading on the Shanghai Stock Exchange. The total reduction of the two companies did not exceed 564032 million shares, accounting for no more than 1.54% of the total share capital of Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) shares.
In fact, Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) share price performance continued to be depressed. As of the closing on March 24, the bank’s share price closed at 2.99 yuan / share. Since its listing in 2019, the bank’s share price reached an all-time high of 11.5 yuan / share in March 2019, and then fell all the way. The last net asset per share with a share price of more than 4.05 yuan was traced back to the beginning of last year.
shareholder’s two subsidiaries intend to reduce their holdings
On March 24, Jiangsu provincial state owned holding company Jiangsu High Hope International Group Corporation(600981) announced that the company held the 26th meeting of the ninth board of directors, deliberated and approved the proposal on reducing the holding of Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) shares by Huihong Zhongjin and Huihong Zhongding, and the board of directors agreed that Huihong Zhongjin and Huihong Zhongding, the holding subsidiaries of the company, should, Take the opportunity to reduce Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) 28201608 shares held by the two companies respectively, and the implementation period is within 12 months from the date of obtaining the approval of the board of directors of the company.
According to the reduction plan disclosed in Jiangsu High Hope International Group Corporation(600981) announcement, its holding subsidiaries are authorized to reduce their Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) shares according to the market environment, stock market and capital conditions through centralized bidding trading or block trading of Shanghai Stock Exchange. The authorization period is within 12 months from the date of deliberation and approval by the board of directors.
It is understood that the total reduction of Huihong Zhongjin and Huihong Zhongding companies is no more than 564032 million shares, accounting for no more than 1.54% of Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) total share capital. However, the announcement also shows that if Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) implements share distribution, conversion of capital reserve into share capital, allotment and other share changes during the planned reduction, the number of shares reduced above will be adjusted accordingly.
According to the regulations, if the shares held by the two companies before Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) initial public offering and listing are reduced through centralized bidding trading, the total number of shares reduced shall not exceed 1% (i.e. no more than 3660957566 shares) of Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) total share capital within any continuous 90 natural days, and no more than 2% (i.e. no more than 7321915132 shares) of Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) total share capital within any continuous 90 natural days.
It is understood that the main businesses of Jiangsu Jiangsu High Hope International Group Corporation(600981) are supply chain operation, environmental protection, investment and finance. The main products are textile and garment supply chain, fresh food supply chain, renewable resources supply chain, pulp and paper business supply chain, green sector supply chain, pharmaceutical and chemical industry, ship Electromechanical, hardware and minerals. Jiangsu Province is one of the top 100 state-owned enterprises in China’s foreign trade industry.
The board of directors of Jiangsu Jiangsu High Hope International Group Corporation(600981) said that the reduction of Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) stock assets of its two subsidiaries is conducive to optimizing the asset structure of the company’s holding subsidiaries, revitalizing the company’s stock assets and improving the liquidity and efficiency of the company’s assets.
repeatedly touched the stock price stabilization plan
Since last year, the decline of Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) share price has not been reversed, and it is difficult to reverse the decline of share price even if executives increase their holdings.
In fact, Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) since last year, it has issued several plans to stabilize the stock price. The most recent one is the announcement on the plan of stabilizing stock price disclosed on December 30 last year.
At that time, because the bank’s share price triggered the starting conditions for the implementation of measures to stabilize the share price, it was determined that the directors (excluding independent directors) and senior managers who received remuneration in the company should increase their shares to fulfill the obligation of stabilizing the share price, and the amount of increase should not be less than 25% of the after tax income received by such directors and senior managers from the company in the previous year, that is, the total amount of increase should not be less than RMB 1736100.
From the implementation progress of the current shareholding increase plan, as of March 9 this year, the relevant shareholding increase subjects had increased their holdings of 173000 shares of the bank through centralized bidding through the Shanghai Stock Exchange, accounting for 0.0047% of the total share capital of the bank. The cumulative shareholding increase amount was 546400 yuan, 31.47% of the shareholding increase plan was completed, and the transaction price range was 3.13 yuan to 3.19 yuan per share.
executives change frequently
frequent turbulence in personnel management may also be the reason why Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) has been difficult to obtain market confidence in recent years
Since 2019, Huang Weiping, vice chairman of Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) was asked by relevant departments to cooperate in the investigation for personal reasons, and he officially resigned soon after. In 2020, Zhang Xiaojun, chairman of the bank, ceased to serve as chairman of the bank due to his age, and Tang Yu took over as the “leader” of the bank.
However, nearly a year later, on November 15, 2021, Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) successively issued two announcements, indicating that the chairman and the chief supervisor of the bank were changed together Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) the move of changing the commander twice in a year is true, which is rare in the industry.
specifically, the board of directors deliberated and approved the election of Zhao yuankuan as the chairman of the Fourth Board of directors of the bank, and Tang Yu no longer served as the chairman due to work adjustment, which is less than one year after the qualification of chairman Tang Yu was approved by the supervision
According to public information, Tang Yu has been the president of Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) since 2013 and has served in the market for more than seven years. On August 25, 2020, Zhang Xiaojun, the former chairman of the bank, was no longer in office due to his age, and Tang Yu was elected chairman. In November of the same year, the qualification of its chairman was approved by the regulator.
In terms of the board of supervisors, the announcement on November 15 showed that Zhou Shihua no longer served as the chairman of the board of supervisors, member of the supervisory committee of the board of supervisors and member of the nomination and performance evaluation committee of the board of supervisors due to his age, and elected Chen Ya as the chairman of the board of supervisors. According to the bank’s 2020 financial report, Chen Ya served as Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) vice president and former party secretary and chairman of Lishui rural commercial bank.
Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) released the annual performance express of 2021, which showed that the bank’s operating revenue last year was 4.502 billion yuan and the net profit attributable to the parent company was 1.516 billion yuan. At the end of the reporting period, the total assets were 206755 billion yuan, and all loans accounted for 67.74% of the total assets, an increase of 12.29 percentage points over the beginning of the year. At the end of the reporting period, the provision coverage rate of the bank was 232%, and the non-performing loan ratio was 1.45%.
