① Following the clearance of Guodu Securities, China Energy Group Sun Company plans to list and clear 0.08% of Zhongyuan Bank's shares; ② This transfer is equivalent to about 1.8 yuan per share, which is nearly 6 times the current secondary market price of Zhongyuan Bank; ③ China Machinery Group and other central state-owned enterprises are also recently removing Zhongyuan Bank's shares.
Financial Services Association, May 15 (Reporter Zou Juntao) Central state-owned enterprises continue to withdraw their shares in small and medium-sized banks. Following the clearance of Guodu Securities, the National Energy Group continued to list and clear Zhongyuan Bank.
On May 15, the Beijing Equity Exchange showed that 285.631.07 million shares (0.08% of the total share capital) of Zhongyuan Bank Co., Ltd. (“Zhongyuan Bank”) were being listed and transferred. The disclosure of this information will commence and end from May 15 to May 28, 2024.
According to reports, the equity transferee mentioned above is Guoneng Zhumadian Thermal Power Co., Ltd. According to Tianyancha data, the company is a wholly-owned subsidiary of National Energy Investment Group Co., Ltd. (“National Energy Group”).
A Financial Services Association reporter said that the reserve price for the transfer of shares in Zhongyuan Bank by China Energy Group this time is close to six times the current secondary market price. In addition to the National Energy Group, central enterprises such as China Machinery Group have also recently withdrawn their shares in Zhongyuan Bank.
China Energy Group Sun Company plans to clear the Central Plains Bank. The listing price is equivalent to nearly 6 times the stock price
<国家能源集团关于参股经营投资自查整改工作的指导意见>According to listing information, on 2020/05, the National Energy Group Shareholders' Meeting passed the “Notice Concerning Issuance” resolution. The current transfer of shares in Zhongyuan Bank by Guoneng Zhumadian Thermal Power Co., Ltd. is based on this document.
According to information, Guoneng Zhumadian Thermal Power Co., Ltd. currently holds 28.5631.07 million shares of Zhongyuan Bank, accounting for 0.08% of the total share capital. The reserve transfer price is 53.230.4 million yuan, which is equivalent to about 1.86 yuan per share. According to Flush data, as of the close of trading on May 14 (Hong Kong stock market closed today), Bank of China (01216.HK) reported HK$0.34 per share. Currently, the exchange rate of Hong Kong dollar to RMB is about 0.93. According to rough estimates, the reserve price for this listing transfer is equivalent to 5.9 times the secondary market price, close to 6 times.
According to the announcement, the intended transferee of this share transfer must be a legal person or unincorporated organization registered and effectively existing in China (excluding Hong Kong, Macao and Taiwan regions); must have good financial status and ability to pay; must have good commercial credit; and other conditions stipulated by national laws and regulations.
Furthermore, if the shares are successfully transferred this time, it means that Guoneng Zhumadian Thermal Power Co., Ltd. will no longer hold shares in Zhongyuan Bank.
A Financial Services Association reporter noticed that on April 25, Guohua Energy Investment Co., Ltd. (“Guohua Energy Investment”), a wholly-owned subsidiary of the National Energy Group, publicly listed and transferred 7.6933% of Guodu Securities on the Shanghai Joint Property Exchange, with a reserve price of 1.09 billion yuan. The initial listing was also a clean-up equity transfer. Guohua Energy Investment is the third largest shareholder of Guodu Securities.
According to analysis by industry insiders, the background of the relevant equity transfer is that central enterprises focus on their main business and speed up the clean-up of financial institutions' shares. In September 2023, the State Council's State-owned Assets Administration Commission issued the “Interim Measures on the Administration of Shareholding of State-owned Enterprises”, which proposed: “In addition to shareholding shares that are strategically held or nurtured, state-owned enterprises should withdraw from inefficient and ineffective shareholding shares with no dividends, long-term losses, or unsustainable operations for at least 5 years. Withdrawal from shareholding investments that are seriously inconsistent with the role positioning of state-owned enterprises and do not have a competitive advantage, high risk, and difficult to grasp business conditions.”
According to Oriental Wealth Choice data, since listing on the Hong Kong Stock Exchange in 2017, Zhongyuan Bank has accumulated three dividends. The most recent dividend was in 2019.
Other central state-owned enterprises are also listing to sell related shares
In addition, according to the Beijing Equity Exchange, on 2023/12/28, Yituo (Luoyang) Diesel Engine Co., Ltd. also publicly listed and transferred 32,26227.16 million shares of Zhongyuan Bank (0.8827% of the total share capital) on the exchange. The reserve transfer price was 66,783 million yuan, equivalent to about 2.07 yuan per share.
According to the announcement, Yituo (Luoyang) Diesel Engine Co., Ltd. is a subsidiary of China Machinery Industry Group Co., Ltd. (“China Machinery Group” for short). On October 15, 2020, the board of directors of China Machinery Group passed the “Notice on Liquidation and Withdrawal of Participating Financial Companies”.
According to information, the initial listing is also a clean-up equity transfer. If the transfer is successful, Yituo (Luoyang) Diesel Engine Co., Ltd. will no longer hold shares in Zhongyuan Bank. The listing information disclosure deadline is May 16, 2024, which is tomorrow.
Also, according to the Shanghai Equity Exchange, 0.77% of Zhongyuan Bank's shares are being listed for transfer, but no information on the transferor has been disclosed.
According to data, Zhongyuan Bank was established in December 2014. In May 2022, with the approval of the China Banking Insurance Regulatory Commission, Zhongyuan Bank officially absorbed and merged Bank of Luoyang, Pingdingshan Bank and Jiaozuo China Travel Bank to become the largest commercial bank in Henan Province.
According to the latest annual report, as of the end of 2023, Zhongyuan Bank's total assets were 1346.447 billion yuan, an increase of 1.49%. Annual revenue of 26.183 billion yuan, up 2.23% year on year; net profit of 3.206 billion yuan, down 16.18% year on year; net profit attributable to shareholders of 3.21 billion yuan, down 11.75% year on year. The non-performing loan ratio was 2.04%, up 0.11 percentage points from the end of the previous year; the provision coverage rate was 154.06%, a decrease of 3.02 percentage points from the end of the previous year.