Since landing in the A-share market in January 2019, Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) ‘s performance has been difficult to be optimistic.
According to the financial report data released by Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) release, as of the end of the first quarter of this year, the bank’s total assets were 228 billion yuan, an increase of 21.3 billion yuan or 10.3% over the beginning of the year. Last year, the bank’s operating revenue was 4.502 billion yuan, a year-on-year increase of only 0.57%; The net profit was 1.515 billion yuan, with a year-on-year increase of 5.11%.
compared with the listed banks that have released their performance, the performance of Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) is weak, ranking lower among the listed banks, regardless of the increase in revenue or net profit. Without strong performance support, Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) , which once enjoyed the highlight of “the first A-share listed provincial capital city rural commercial bank”, is now silent, and the share price has fallen by nearly 70% compared with that time
revenue growth is hard to match that of peers
april 29, Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) released the annual report of 2021 and the performance of the first quarter of 2022. By the end of the first quarter of this year, Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) total assets were 228 billion yuan, an increase of 21.3 billion yuan or 10.3% over the beginning of the year. In 2021, Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) annual operating revenue was 4.502 billion yuan, a slight increase of 0.57% year-on-year; The net profit was 1.515 billion yuan, a year-on-year increase of 5.11%
Compared with the listed banks that have released their performance, the performance of Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) is weak in terms of both revenue and net profit growth, ranking lower among the listed banks. Among the current A-share rural commercial banks, Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) , which is the “first provincial capital city rural commercial bank with A-share listing”, actually, the year-on-year increase in revenue in 2021 (0.57%) is only better than Jiangsu Jiangyin Rural Commercial Bank Co.Ltd(002807) (0.46%), ranking the lowest. In addition, Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) is also the bottom level in deducting the increase of non net profit, with only 8.35%.
In terms of asset quality, as of the end of the first quarter of this year, Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) non-performing loan balance decreased by 4 million yuan compared with the beginning of the year, and the non-performing loan ratio was 1.35%, 0.1 percentage point lower than the beginning of the year. Horizontal comparison shows that the non-performing loan ratio of Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) at the end of 2021 and the end of the first quarter of this year is not high in the ranking of listed urban rural commercial banks. At the end of the first quarter, the bank’s capital adequacy ratio was 14.59%, down 0.61 percentage points from the end of the previous year; Over the same period, the provision coverage rate was 241.31%, an increase of 9.31 percentage points over the end of the previous year.
Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) , founded in March 2011, is headquartered in Nanjing, Jiangsu Province. It is formed by the merger of four credit unions in the former urban area of Nanjing, Jiangning District, Pukou District and Liuhe District. In January 2019, the bank was listed on the Shanghai Stock Exchange, becoming the first provincial capital city rural commercial bank with A-share listing in China. By the end of last year, Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) had 135 branches, forming the management structure of the head office, branches, primary and secondary branches, including 1 business department directly under the head office, 3 branches, 9 primary and 122 secondary branches.
senior management personnel are in frequent turmoil
On April 28, Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) announced that the board of directors of the bank agreed to appoint Shi Wenxiong as the president, Xu Yan, Wang Qingguo, Xu Guoyu and hang Haojun (whose qualifications need to be approved by the regulatory authority) as the vice presidents, and Wu Fei as the Secretary of the board of directors of the bank Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) also said that the above personnel changes are normal personnel adjustments and will not have an adverse impact on its daily operation and management.
Following the announcement of the change of the chairman in January this year, Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) followed by the announcement of the change of relevant senior executives. In mid March, the bank issued the announcement of the resolution of the third meeting of the Fourth Board of directors and passed the proposal to elect Zhu Ming as vice chairman of the Fourth Board of directors. In fact, in just three years after listing, Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) has replaced three chairmen, and many directors, supervisors and senior executives have resigned. The frequent personnel turbulence of senior executives inevitably adds uncertainty to the development path of Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) .
In 2019, Huang Weiping, vice chairman of Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) was asked by relevant departments to cooperate with the investigation due to personal reasons, and then officially left office shortly after. In 2020, Zhang Xiaojun, chairman of Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) company, ceased to serve as the bank’s chairman due to his age, and Tang Yu took over as another “leader” of the bank. However, on November 15, 2021, Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) issued two announcements in succession, saying that the chairman and the chairman of the board of supervisors of the bank were changed together. Specifically, the board of directors of the bank considered and elected Zhao yuankuan as the chairman of the Fourth Board of directors, and Tang Yu no longer served as the chairman due to work adjustment, which is less than a year since Tang Yu’s qualification as chairman of the board of directors was approved by the supervision.
Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) frequent change of leadership is rare in the industry. In addition to the board of directors, the board of supervisors of the bank has also changed. In November last year, Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) announced that Zhou Shihua would no longer serve 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 public information, Chen Ya previously served as Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) vice president and former party secretary and chairman of Lishui rural commercial bank.
state owned shareholders choose to reduce their holdings
At the end of March this year, Huihong International Group, a provincial state-owned holding company in Jiangsu Province, announced that the company held the 26th meeting of the ninth board of directors, deliberated and approved the proposal on reducing the holdings of Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) shares by Huihong Zhongjin and Huihong Zhongding. The board of directors agreed that the holding subsidiaries of the company, Huihong Zhongjin and Huihong Zhongding, according to the securities market environment, stock market and capital situation, The shares of the two companies are reduced by 20 million shares respectively.
The board of directors of Jiangsu Huihong international group 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 use efficiency of the company’s assets.
Specifically, the total number of Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) shares reduced by Huihong Zhongjin and Huihong Zhongding companies does not exceed 564032 million shares, accounting for no more than 1.54% of Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) total share capital. The above announcement also indicates that if Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) implements share distribution, capital reserve conversion to share capital, allotment and other share changes during the planned reduction, the number of shares reduced will be adjusted accordingly.
According to the regulations, if the shares held by the above two companies before Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) IPO and listing are reduced through centralized bidding trading, the total number of shares reduced shall not exceed 1% of Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) total share capital (i.e. no more than 36609576 shares) within any continuous 90 natural days; In case of reduction through block trading, the reduction shall not exceed 2% of Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) total share capital (i.e. no more than 73219152 shares) within any continuous 90 natural days.
executives increase their holdings without changing the decline
Since listing, Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) has little “highlight” in performance. As a young A-share listed bank, the performance of Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) did not bring strong support to the stock price. At the close of April 29, Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) closed at 2.90 yuan, with a total market value of 10.617 billion yuan, ranking lower in the market value of agricultural and commercial banks.
In the absence of strong support from the performance side, the pressure faced by Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) share price is self-evident. Since its listing in 2019, the bank’s share price has reached an all-time high in March of that year (former resumption of rights), i.e. 11.5 yuan / share. Since then, it has started to decline and kept falling all the way.
In order to reverse the situation, Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) executives started the measures to increase their holdings, but the effect is not outstanding at present. Since last year, the bank has repeatedly issued plans to stabilize the stock price. On December 30, 2021, Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) issued the announcement on the plan of stabilizing stock price, which showed that due to the starting conditions for the implementation of measures to stabilize stock price triggered by stock price, Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) decided to perform the obligation of stabilizing stock price by increasing the shares held by the directors (excluding independent directors) and senior managers who received remuneration in the bank, with the amount of increase not less than that of such directors The senior managers received 25% of the after tax income from the company in the previous year, that is, the total amount of increase in shareholding shall not be less than 1.7361 million yuan.
As of March 9, 2022, Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) said that the increased holding entities had increased their holdings of 173000 shares of the company by means of centralized bidding with their own funds through the trading system of Shanghai Stock Exchange, accounting for 0.0047% of the total share capital of the company. The accumulated increased holding amount was 546400 yuan, 31.47% of the increased holding plan was completed, and the transaction price range was 3.13 yuan ~ 3.19 yuan / share.
