Proposal for Zhengzhou Bank's 2023 profit distribution plan was opposed by 83.11% of the attending H-share shareholders, but it was still approved smoothly. Unlike H-shares, most of the attending A-share shareholders showed understanding of Zhengzhou Bank's 2023 profit distribution plan, with a consent rate as high as 90%. H-share shareholders of Zhengzhou Bank have a precedent of dissatisfaction with 'no dividend'.
On the capital market, small shareholders should be brave enough to express their voices, even if the results are not satisfactory.
Zhengzhou Bank issued a notice on the resolution of the 2023 shareholder annual meeting on the evening of June 27. It is worth noting that the proposal of Zhengzhou Bank's 2023 profit distribution plan was opposed by 83.111365% of the attending H-shareholders, but was eventually passed smoothly. The financial association journalist noticed that Zhengzhou Bank achieved a net profit attributable to shareholders of the listed company from 2020 to 2023 of CNY 3.168 billion, CNY 3.226 billion, CNY 2.422 billion, and CNY 1.85 billion respectively. After the dividend in 2019, it has not distributed cash for four consecutive years.
According to a previous announcement by Zhengzhou Bank, the profits in 2023 will be used to supplement the bank's capital and will not be distributed as dividends. This also means that not distributing dividends this year will become a reality. Apparently, from the opposition of 83.111365% of the H-shareholders, it can be seen that the attending H-shareholders were not satisfied with the resolution of "not distributing dividends".
It is worth noting that, unlike H shares, most of the A-shareholders attending the meeting expressed their understanding of Zhengzhou Bank's 2023 profit distribution plan, and the approval rate was as high as 90%.
H-shareholders have already demonstrated their dissatisfaction with the "no dividend" policy.
There is already a precedent of H shareholders being dissatisfied with "no dividends".
The financial association journalist found that H-shareholders of Zhengzhou Bank have already expressed their dissatisfaction with "no dividends" earlier.
For example, at the 2021 Zhengzhou Bank Shareholders' Meeting held in June, the proposal on "2020 profit distribution plan and capital reserve to transfer surplus to stock" was vetoed by the H-shareholder meeting for the first time in 2021. The core reason is that "no cash dividends will be distributed this year," but capital reserves will be transferred to stock.
According to the announcement, the proposal on "2020 profit distribution plan and capital reserve to transfer surplus to stock" was the only proposal rejected at the shareholders' meeting, with a dissenting proportion of 35.07%, failing to obtain the approval of more than two-thirds of the shareholders.
However, at the 2021 end-of-year shareholders' meeting, the 2021 first interim A-shareholder meeting, the 2021 second A-shareholder meeting, and the 2021 second H-shareholder meeting held in Zhengzhou Bank, the rejected proposal on "no cash dividends will be distributed this year" was finally approved.
Afterwards, at the 2022 shareholders' meeting, H shareholders still expressed great dissatisfaction with Zhengzhou Bank's "no dividend" policy. The voting result of the proposal on "2021 profit distribution plan of Zhengzhou Bank Co., Ltd." showed that the dissenting proportion of H-shareholders at that time was as high as 85.453599%, but the resolution still passed smoothly.
However, the situation in 2023 is different. According to the "2022 Shareholders' Annual Meeting, 2023 First A-shareholder Meeting, and 2023 First H-shareholder Meeting Resolution Announcement" released by Zhengzhou Bank in June last year, Zhengzhou Bank did not distribute dividends for that year, but the proposal for the company's 2022 profit distribution and capital reserve to transfer surplus to stock was passed smoothly, and the dissenting proportion among H shareholders was only 0.888016%.