after four and a half years, it is still in the guidance period! huishang bank has no hope of listing on the a-share market, and many shareholders are transferring their equity
2024-09-24
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today, huishang bank's revenue growth has basically stagnated, and its profit growth rate has been declining. the gap with its peers in the city commercial banks is also widening, and its a-share listing goal is getting further and further away.
with no hope of listing on the a-share market, huishang bank's shareholders have been seeking to transfer their equity holdings.in sharp contrast to the large number of equity transferors, there are only a few transferees interested in huishang bank's equity.
for many years, huishang bank has been actively preparing for its a-share ipo. even after its failed ipo on the shanghai stock exchange in 2015, it remained true to its original aspiration and began a long "listing guidance" phase. as of july 19, 2024, the intermediary agency has issued an astonishing "19th" listing guidance progress report, which is four and a half years after the "first" listing guidance progress report issued on january 6, 2020!
however, the best opportunity for huishang bank to be listed on the a-share market has long been missed. today, huishang bank's revenue growth has basically stagnated, and its profit growth rate has been declining. the gap with its peers in the city commercial banks is also widening, and the goal of listing on the a-share market is getting further and further away.
there are many transferors and few transferees
based on the performance of hong kong stocks, the transfer price is not cheap
in the past two years, the equity of huishang bank has been continuously transferred by shareholders, but with little results.according to information from the shanghai stock exchange, anhui dongfeng mechanical and electrical technology co., ltd. transferred 240,400 shares of huishang bank on september 9, accounting for 0.0001% of the total share capital. the reserve price was 536.2704 million yuan, and the transfer price was calculated to be 2.23 yuan per share.
note: the above picture shows the transfer of equity of huishang bank by anhui dongfeng mechanical and electrical company on the shanghai stock exchange website.
in the same month, anqing cssc diesel engine company reduced the price and relisted its 4.3134 million shares of huishang bank at a base price of 13.275 million yuan, accounting for 0.0311% of the total share capital of huishang bank, corresponding to a price of 3.08 yuan per share.
note: the above picture shows the transfer of equity of huishang bank by anqing cssc diesel engine co., ltd. on the shanghai stock exchange website.
in june this year, ma steel group transferred 1.7599 million shares of huishang bank at a base price of 15.716 million yuan, accounting for 0.0127% of the total share capital of huishang bank, or about 8.93 yuan per share.
note: the above picture shows the transfer of equity of huishang bank by china masteel group on the shanghai stock exchange website
in march this year, cofco transferred its shares in huishang bank on the shanghai united equity exchange. among them, cofco group plans to transfer 38.1075 million shares of huishang bank, accounting for 0.27% of the total share capital; cofco biotech co., ltd. plans to transfer 40.3095 million shares of huishang bank, accounting for 0.29% of the total share capital. the transfer price was not disclosed publicly.
note: the above picture shows the transfer of equity of huishang bank listed by cofco on the shanghai stock exchange website.
on the ali assets judicial auction platform, the intermediate people's court of shaoxing city, zhejiang province is selling a total of 93.5 million non-overseas listed shares of huishang bank held by zhuji langsheng machinery technology co., ltd., but there is no bidder at present. the 93.5 million shares were previously auctioned on june 25 and july 16, with the starting prices of 352 million yuan and 282 million yuan respectively, which is calculated to be 3.77 yuan and 3.01 yuan per share, but both failed because no one bid.
note: the above picture shows the listing of huishang bank shares on alibaba auction.com
in addition, xinkan finance found that the shanghai stock exchange platform showed that in april last year, huaibei wanli electric power engineering company terminated the listing of huishang bank shares because it failed to find a transferee in time. in addition, anhui magang mining resources group nanshan mining co., ltd. lowered its listing price several times last year, but no information on successful transfer was seen.
note: the above picture shows the termination of the listing of huishang bank shares by huaibei wanli electric power engineering company on the shanghai stock exchange website
according to the transfer prices of various entities on different platforms, the lowest is 2.23 yuan and the highest is close to 9 yuan. although the listed transfer prices fluctuate greatly, the results tend to be consistent, and there is no successful transfer. in fact, huishang bank's stock price is not without a price "anchor". in fact, huishang bank was listed on the hong kong stock market in 2013. after more than ten years of trading, the current price of webank is only 2.22 hong kong dollars per share, which is only 2 yuan per share in rmb. in this way, although some of the current auction and transfer prices seem to be greatly discounted, they actually have no advantages. after all, the hong kong stock price is an important price reference for the transferee.
the gap with other city commercial banks is widening
the best time for a-share listing has been missed
huishang bank was established in 1997. in december 2005, it officially merged five city commercial banks in anhui province, including wuhu and ma'anshan, and seven city credit cooperatives in lu'an, huainan, etc., and officially opened for business in 2006. it is the largest city commercial bank in anhui province.
six or seven years ago, huishang bank had a revenue scale similar to that of nanjing bank and significantly higher than that of hangzhou bank. according to the data in 2017, huishang bank achieved operating income of 22.5 billion that year, while hangzhou bank was only 14.1 billion and nanjing bank was 24.8 billion. it can be said that huishang bank's revenue level has surpassed nanjing bank and is significantly ahead of hangzhou bank. this situation did not last too long. from 2021 to 2023, huishang bank's revenue was basically stagnant, with growth rates of 1.45% and 0.97% in 2022 and 2023, respectively. the gap was further widened by nanjing bank and basically eliminated by hangzhou bank.
the gap in non-interest income may be the reason why huishang bank is left behind by its peers. due to the slow transformation of huishang bank, it has a shallow layout in wealth management and is highly dependent on traditional deposit and loan businesses. according to data from 2023, interest income accounts for as much as 78% of huishang bank's operating income, much higher than the 67% of hangzhou bank and 56% of nanjing bank. the diversification of income is the direction that banks are committed to developing, and the active development of intermediary business is an important way to resist risks and reduce capital occupation. hangzhou bank and nanjing bank have a higher proportion of non-interest income, which includes income from wealth management, investment banking, and bond investment. combined with traditional deposit and loan businesses, it is equivalent to having "dual-engine" growth. huishang bank relies more on interest income. against the backdrop of falling interest rates, it is no wonder that the income gap has widened.
the scale of wealth management products is an important reflection of non-interest income. in this regard, huishang bank is far behind hangzhou bank and nanjing bank. according to the 2024 interim report, the scale of nanjing bank's wealth management products is 434.5 billion, which is higher than that of other city commercial banks. hangzhou bank also has a scale of 402.4 billion. in comparison, huishang bank is less than 200 billion.
in terms of profit performance, huishang bank has shown a downward trend in recent years, with growth rates of 16.1%, 9.6% and 5.9% in 2022, 2023 and the first half of 2024 respectively.
figure: huishang bank's net profit source: enterprise early warning
in terms of deposits and loans, huishang bank's "deposit and loan mismatch" feature is quite obvious. since 2021, personal loans have stagnated. from 2020 to the first half of 2024, it only grew by 44.1 billion, while deposits grew by 361.2 billion during the same period. against the backdrop of stagnant personal loan growth, the corresponding asset quality is deteriorating. judging from the non-performing rate indicator, it has doubled in less than five years. from 2020 to the first half of 2024, the indicator rose from 0.69% to 1.42%. perhaps aware of the risks on the personal loan side, huishang bank has slowed down the pace of personal loan issuance in recent years.
source: enterprise early warning
source: enterprise early warning
the characteristics of corporate deposits and loans are completely opposite. in the past five years, huishang bank's corporate deposits have basically stabilized at around 400 billion yuan, but corporate loans have been growing year by year, doubling in about five years. this also shows that the bank's focus is still on corporate loans. from the perspective of asset quality, the company's non-performing loan rate has declined year by year since it peaked in 2020, which is reflected in the better risk-return effect achieved in corporate loans.
source: enterprise early warning
source: enterprise early warning
huishang bank has always dreamed of listing on the a-share market. it began planning an a-share ipo as early as 2011, but after failing, it switched to the hong kong stock market and was listed on the hong kong stock market in 2013. in 2015, huishang bank submitted an application for an ipo on the shanghai stock exchange, but due to multiple factors, the a-share listing plan was shelved several times. on december 12, 2018, huishang bank once again announced that it would embark on the a-share ipo road, and in 2019, it submitted a listing guidance filing and registration application to the anhui securities regulatory bureau again, and is still in the listing guidance stage.
xinkan finance found that in the progress report on the initial public offering and listing guidance work of huishang bank by the guidance brokers citic securities and guoyuan securities (no. 19), it was clearly pointed out that there are still problems at present: the equity dispute between zhongjing xinhua asset management co., ltd. and shanshan holdings co., ltd. according to the china securities regulatory commission's initial public offering registration management regulations and related requirements, the equity of a-share issuers should be clear. considering the current status of the equity dispute case between zhongjing xinhua and shanshan holdings, the result of the equity dispute between zhongjing xinhua and shanshan holdings may lead to changes in the major shareholders of huishang bank, which may have a certain impact on the issuance of a shares of huishang bank.
note: the above picture is a screenshot of the 19th listing guidance progress report of citic securities and guoyuan securities
xinkan finance believes that even without the equity uncertainty and instability issues pointed out by the counseling brokerage, it is still difficult for the bank to be listed on the a-share market. performance is the main reason: in recent years, huishang bank's revenue growth has basically stagnated, while the profit growth rate has been declining. in addition, considering that the price of hong kong stocks is significantly discounted, there are also some difficulties in how to price a-shares.
even a phd from renmin university could not save the situation due to chronic illness
yan chen, the current chairman of huishang bank, was born in the 1970s and has a high level of education and brilliant work experience.as for his academic qualifications, he studied at the university of science and technology beijing from 1989 to june 1996. after graduating with a master's degree, he studied for a doctorate at renmin university of china and graduated in 1999.unlike many people who obtained degrees after working in management, yan chen can be said to be a typical professional.after graduating with a doctorate from renmin university, he worked successively in china development bank, anhui provincial small and medium enterprises development bureau, anhui provincial economic commission, and anhui provincial economic and information commission. he then served as deputy mayor of chizhou city, anhui province, minister of organization department of xuancheng city, anhui province, deputy secretary of xuancheng municipal committee of anhui province, and chairman of anhui guarantee group.he began serving as chairman of huishang bank in 2021.
the picture above shows yan chen, the current chairman of huishang bank
yan chen's appointment was expected by the market. prior to this, huishang bank had experienced a series of troubles, especially the fall of three chairmen criticized by the market, all of which were caused by corruption: in may 2024, li hongming, the former chairman of huishang bank, was sentenced to 14 years and 6 months in prison for bribery and abuse of power by state-owned company personnel, and fined rmb 4 million. in november 2022, the former chairman wu xuemin was "double-opened". the notice stated that wu xuemin "engaged in power-for-money transactions, harmed the public and enriched himself, and caused particularly heavy losses to state-owned assets", and "was keen on drinking and self-indulgence". in the same year, dai hedi, the first chairman of huishang bank, was sentenced to 12 years in prison and fined rmb 750,000 for the crime of bribery and the crime of bribery by non-state staff. in addition, since 2019, more than a dozen senior executives have resigned one after another, and positions such as chief supervisor and shareholder supervisor have frequently changed hands.
in such an environment, can the phd from renmin university turn the tide and give the public a brand new huishang bank?
so far, it has not been achieved. in addition to the further gap between its performance and that of its peers, huishang bank has received frequent fines in the past three years, pointing out its irregular loan management and poor customer identification. in addition, huishang bank's much-anticipated a-share ipo is still nowhere in sight. this is undoubtedly a huge pressure for yan chen.
overall, as a representative city commercial bank in anhui, huishang bank has indeed been somewhat frustrated in recent years: on the one hand, the ipo process has always been pending; on the other hand, there are shareholder struggles and unstable management. in terms of corporate operations, whether it is nanjing bank, hangzhou bank, or other more market-oriented banks such as ningbo bank, they have strengthened the development of intermediary businesses in the process of operation, while huishang bank has a high degree of dependence on traditional deposit and loan businesses. in recent years, affected by the downward trend of interest rates, huishang bank has been quite passive, and the decline in performance may pour cold water on the already difficult ipo process.
editor | wu xue
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