According to Caixin Media on September 20th, Bank of Guizhou's 3.4065 million shares were officially listed for transfer on the Beijing Property Rights Exchange, with a listing floor price of 10.492 million yuan, equivalent to 3.08 yuan per share.

Caixin Media noted that in recent years, Bank of Guizhou's equity frequently appeared in auction houses, with state-owned enterprise shareholders in succession transferring and withdrawing their shares from the bank. Just half a month ago, 0.1 billion shares of Bank of Guizhou were auctioned off without any bids, with the starting price only around 0.98 yuan per share.

Data shows that in the first half of this year, Bank of Guizhou's revenue and net income both decreased by 7.20% and 3.80% respectively compared to the same period last year. Meanwhile, the bank's stock price has long been in a state of breaking, with extremely poor trading volume. As of the close on September 20th, Bank of Guizhou was at 1.45 Hong Kong dollars per share, with zero volume traded that day, and a total market value of 21.15 billion Hong Kong dollars.

Another state-owned enterprise shareholder is clearing Bank of Guizhou shares, with a transfer floor price of 3.08 yuan per share.

Specifically, the listed 3.4065 million shares account for 0.0234% of Bank of Guizhou's total share capital, owned by Zunyi CWR Labor Service Company. In terms of price, the floor price for this equity listing is approximately 10.492 million yuan, equivalent to 3.08 yuan per share.

It is understood that Zunyi CWR Labor Service Company was established in 1981, with China Railway Chengdu Bureau Group Co., Ltd. holding 100% of the Zunyi CWR. Back in August 2022, the collective enterprise reform office of China Railway Chengdu Bureau Group approved this equity transfer plan, mainly involving the collective enterprise reform implementation of units like Xinglongchang Station.

Caixin Media reporters noticed that this is not the first time Bank of Guizhou has had state-owned enterprise shareholders intending to clear shares and exit the ranks of the bank's shareholders. In recent years, actions by state-owned enterprises towards collective enterprise reform have been continuous, with adjustments to state-owned enterprise national capital shareholder structures, divestment of non-core businesses, and other activities repeatedly becoming market hot topics.

In May, China Aviation Trust Co., Ltd. listed on the Beijing Property Rights Exchange to transfer 65.002463 million shares of Guizhou Bank Co., Ltd., actively seeking potential buyers. It is understood that the project introduction disclosure date was from May 13 to November 1 this year, but so far there has been no further information on this listing.

Further back, on October 30 last year, China Aviation Engine Group's China Aviation Power Guizhou Liyang Aviation Power Co., Ltd. also released a preliminary disclosure information on the Beijing Property Rights Exchange, intending to transfer all 178.856984 million shares of Guizhou Bank it holds, accounting for 1.2261% of the equity.

At the same time, in recent years, Guizhou Bank's equity has also appeared in auction houses one after another. Just half a month ago, 1 billion shares of the bank were split into 5 lots (each with 20 million shares) and auctioned on JD.com platform. The starting price for each lot was 19.6969 million yuan, about a 30% discount compared to the valuation price, but all results ended up with no bids and were unsold.

In the view of industry insiders, whether the equity transaction of Bank of Guizhou can succeed mainly depends on its operating performance, capital market performance, equity pricing, and other factors. However, in terms of price, the equity listed for transfer this time does not seem to have a price advantage compared to the 1 billion shares auctioned half a month ago.

Significant downward trend in performance, profitability needs improvement.

In fact, in recent years, the operating performance of Bank of Guizhou has not been ideal, with not only declining revenue growth for 4 consecutive years but also a significant decrease in profit growth leading to negative growth. Data shows that from 2021 to 2023, the bank's revenue was 11.74 billion yuan, 11.99 billion yuan, and 11.34 billion yuan respectively, and the net income was 3.706 billion yuan, 3.829 billion yuan, and 3.653 billion yuan over the same period.

Since the beginning of this year, the downward trend in performance of Bank of Guizhou has continued, achieving revenue of 5.967 billion yuan in the first half of the year, a year-on-year decrease of 7.20%; achieving a net income of 2.123 billion yuan, a year-on-year decrease of 3.80%.

At the same time, with the downward trend in interest rate spread, the net interest margin of the bank is also continuously narrowing. From 2021 to 2023, Bank of Guizhou's net interest margin was 2.29%, 2.22%, and 1.77% respectively. In the first half of this year, its net interest margin further dropped to 1.68%, a decrease of 39 basis points compared to the same period last year.

Overall, due to the narrowing of the interest margin, the net income of Bank of Guizhou has declined, and the overall profitability still needs to be improved. China Chengxin International pointed out in the rating report.

Looking ahead, China Chengxin believes that the marketization of interest rates, policy requirements for reducing fees and sharing profits, and intensified interbank competition may further pressure the bank's interest margin. At the same time, the slower-than-expected macroeconomic recovery and the sluggish real estate market have led to an increase in the bank's non-performing loans. With a high concentration of asset deployment, the bank's asset quality faces downward pressure in the future, requiring continuous strengthening of liquidity risk management.

In terms of capital markets, since its listing on the Hong Kong Stock Exchange at the end of 2019, Bank of Guizhou's stock price has long been in a state of breaking. At the same time, the trading volume of the bank's stocks market has been extremely bleak, with zero transactions throughout the day becoming the norm.

It is understood that Bank of Guizhou issued its shares at 2.48 Hong Kong dollars per share, but the price dropped on the day of listing. Several months later, the bank's stock price gradually stabilized, reaching a high of 2.728 Hong Kong dollars per share. Since 2023, its stock price has once again started a downward trend. As of the close on September 20, Bank of Guizhou was trading at 1.45 Hong Kong dollars per share, with zero volume on that day, and a total market value of 21.15 billion Hong Kong dollars.