On the last trading day before the holiday, the stock price surged by 7.06%.

"Investor Network" Cui Yuechen

On the last trading day before the holiday, the stock price of Bank of Shanghai once again saw a significant increase, closing at 7.89 yuan on September 30, with a daily increase of 7.06%. So far this year, the stock price of Bank of Shanghai has risen by nearly 40%.

It can be said that the recent sharp rise in the stock price of Bank of Shanghai has not been affected by recent related rumors and the announcement of litigation by Baoneng.

Bank of Shanghai stated that by the end of 2021, the assets involved in the litigation had already been classified as non-performing assets, with corresponding collateral for credit and sufficient provision for impairment losses made. This litigation will not have a significant impact on the current period or future profits.

Industry insiders said that this litigation signifies a "cleansing" of Baoneng's negative factors, and the disposal of non-performing assets will benefit performance. At the same time, Bank of Shanghai once again announced a generous mid-year dividend, with investors set to receive a gift package exceeding 10 billion within the year, which will be bullish for the stock price.

Extremely generous dividends exceeding billions.

On September 29, Bank of Shanghai announced that the 2024 mid-term profit distribution plan was reviewed and approved, based on the total share capital of ordinary shares registered on the registration date of the equity distribution of ordinary shares, distributing a cash dividend of 2.80 yuan (including tax) per 10 shares to all ordinary shareholders.

As of the end of June 2024, the company's total common stock capital is approximately 14.207 billion shares, with a total proposed distribution of common stock cash dividends of approximately 3.978 billion yuan (including tax), accounting for 30.67% of the net income attributable to common shareholders of the parent company in the consolidated financial statements.

Since its listing, Bank of Shanghai has been continuously paying out large dividends. In June of this year, the bank announced that it had cumulatively distributed a cash dividend of 6.535 billion yuan (including tax) on ordinary shares for the year 2023, i.e., a cash dividend of 4.6 yuan (including tax) per 10 shares, accounting for 30.06% of the net income attributable to common shareholders of the parent company in the 2023 consolidated financial statements. Based on this calculation, investors will receive a dividend of 10.513 billion yuan from the bank within the year.

Bank of Shanghai is a main board listed company on the Shanghai Stock Exchange and one of the 20 systemically important banks in the country. In the first half of 2024, Bank of Shanghai achieved revenue of 26.247 billion yuan, net income attributable to the parent company of 12.969 billion yuan, a year-on-year increase of 1.04%. As of the end of June 2024, Bank of Shanghai's total assets amounted to 3223.331 billion yuan.

"Baoneng Group" turns over a new leaf.

On the evening of September 27, Bank of Shanghai disclosed in an announcement about the litigation involving the "Baoneng Group."

According to the announcement, Bank of Shanghai's Shenzhen Branch has filed lawsuits against Shenye Logistics, Baoneng Real Estate, Baoneng Land, Baoneng Investment, Baoneng Holdings, and Yao Zhenhua on the grounds of financial loan contract disputes. The amount involved in this case includes principal loan amounts of 3.4772 billion yuan, 3.899 billion yuan, as well as corresponding interests, overdue penalties, and all expenses incurred in realizing the creditor's rights.

Bank of Shanghai stated that as of the disclosure date of the announcement, the litigation has not yet been heard in court. The company classified two credits as non-performing by the end of 2021, fully provided for impairment, and expects that this litigation will not have a significant impact on the company's current or future profits.

Bank of Shanghai stated that it strictly follows regulatory requirements and classified the two credits involved in this litigation as non-performing by the end of 2021. The two credits have corresponding pledged assets, and the company has fully provided for impairment. It is expected that this litigation will not have a significant impact on the company's current or future profits. The case is currently at the stage of being filed but not yet heard in court.

Due to the failure of Shenzhen branch of Bank of Shanghai to fulfill the obligations of repayment or guarantee by Shenzhen Feiyue Logistics and others, the Bank of Shanghai Shenzhen branch has filed a lawsuit with the Guangdong Provincial High People's Court in accordance with the law.

At the same time, Bank of Shanghai requests the court to order Baoneng Investment to assume joint and several liability for all payments that Feiyue Logistics should pay in the two cases; Baoneng Holding, Yao Zhenhua assume joint and several liability for all payments that Feiyue Logistics should pay in the case of a loan principal of 3.899 billion yuan.

In terms of asset quality, Bank of Shanghai has continued to promote the construction of its credit risk management system in the first half of the year, strengthening risk control for key industries, key customer groups, key products, and key institutions, strictly controlling the increase of non-performing loans, and increasing efforts to resolve existing risks. As of the end of June 2024, the overall non-performing loan ratio was 1.21%, unchanged from the end of the previous year, with a continuous decrease in the non-performing loan ratio for corporate loans.

According to Bank of Shanghai's semi-annual report data, as of the end of June, the bank's provision coverage ratio reached 268.97%, essentially unchanged from the end of the previous year. According to data from the China Banking and Insurance Regulatory Commission, the average provision coverage ratio of commercial banks in the first half of the year was 209.32%, significantly higher than the industry average. As for the level of capital adequacy ratio, Bank of Shanghai has also shown very stable performance. The semi-annual report shows that the bank's capital adequacy ratio is 13.33%, an increase of 0.27 percentage points from the same period last year.

Some industry insiders have stated that in 2021, Bank of Shanghai had already classified these two lawsuits as non-performing assets, and had made sufficient provisions for impairment, therefore, this lawsuit will not have a significant impact on the bank's current period or future period profits. (Produced by Sina Finance) ■