New Century Credit Evaluation Report shows that at the end of 2018, Huzhou Bank's non-performing loans were mainly distributed in the manufacturing and real estate industries, and the balance of non-performing loans accounted for 47.41% and 13.16% of the total non-performing loans, respectively,
A shares IPO team, another member was added. On the eve of the Spring Festival, Huzhou Bank's IPO application materials were accepted by the China Securities Regulatory Commission.
It is understood that Huzhou Bank fully launched its listing work in 2019. In March of that year, it submitted the initial public offering guidance plan and implementation plan materials to the Zhejiang Securities Regulatory Bureau, and received guidance from China International Financial Co., Ltd. (hereinafter referred to as CICC). CICC issued a summary report on tutoring work on January 13, stating that after tutoring, Huzhou Bank's operation in all aspects has been basically improved and standardized, and has the basic conditions for issuance and listing. It is reported that the bank plans to apply for the main board of the Shanghai Stock Exchange.
Investment Times researchers noticed that as the smallest city commercial bank in Zhejiang, Huzhou's banking business has relatively strong local characteristics. In terms of asset quality, manufacturing and real estate are the high-risk industries of Huzhou Bank, and the non-performing loan ratio of is far beyond the industry level.
obvious regional characteristics
Huzhou Bank was established in 1998. During the boom in batch shareholding transformation of local city commercial banks, it was renamed from Huzhou Commercial Bank in 2010. It is a local joint-stock commercial bank established by local finance, enterprises and individuals. The bank's registered capital was 100 million yuan when it was established, and it has now increased to more than 1 billion yuan.
local finance-controlled banks often have relatively strong regional characteristics in their business.
According to the report issued by the New Century Credit Assessment, most of the sources of deposits absorbed by Huzhou Bank are to public deposits (including margin deposits). From the end of 2016 to 2018, the proportion of the bank's corporate deposits to the total deposits was 59.15%, 59.75% and 61.3% respectively. At the end of 2018, the bank's top ten deposit customers were mainly local governments, public institutions and state-owned enterprises.
In terms of the bank's non-standard investment, the product forms are mainly trust and asset management plans. The investment targets are mainly credited customers of the bank, and ultimately invest in government financing platforms mainly in Huzhou and surrounding areas. The risk warning of the New Century Credit Assessment also mentioned: "Huzhou Bank has allocated a large-scale trust plan and asset management plan, and its final investment is a local government financing platform, with high concentration and increased pressure on credit risk management."
Investment Times researchers found that although Huzhou Bank has not seen the announcement, its second largest shareholder has changed.
New Century Credit Evaluation Report shows that in March last year, Huzhou Bank had planned to introduce strategic investors to enhance its capital strength. According to the "2019 Capital Increase and Share Expansion Plan for Huzhou Bank Co., Ltd." reviewed by the bank's board of directors and shareholders' meeting, it is planned to use capital increase and share expansion to target stock issuance, and the specific issuance target is Materials Zhongda Group Co., Ltd. . The issuance price of the shares issued in this targeted is RMB 3.73 per share, the number of shares issued in the targeted additional shares is 101 million, and the total amount of funds raised is expected to not exceed 378 million yuan. The plan was approved by the China Securities Regulatory Commission in July last year.
In addition, in June last year, Meidu Energy announced that it plans to sell all its shares in Huzhou Bank 114 million shares, with a price of 3.5 yuan per share, and a total transaction amount of 399 million yuan.
Huzhou Bank's 2018 financial report shows that Meidu Energy holds 114 million shares, with a shareholding ratio of 12.5%, making it the second largest shareholder.
According to the shareholder structure of the interbank certificate of deposit plan released by Huzhou Bank in early January this year, Meidu Energy is no longer among the top ten shareholders of the bank. Wusheng Zhongda Group holds 101 million shares, ranking the bank's second largest shareholder with an equity ratio of 10%.
The new shareholders include Huzhou Transportation Investment Group Co., Ltd., Deqing Lianchuang Technology New City Construction Co., Ltd., etc. These two companies are actually local government backgrounds. Whether they have taken over Meidu Energy Co., Ltd. cannot be determined yet.
Manufacturing and real estate are relatively poor
Although backed by local governments, Huzhou Bank's market share in the region is showing a downward trend.
New Century Credit Evaluation Report shows that from the end of 2016 to the end of March 2019, Huzhou Bank's loan balance was 21.835 billion yuan, 23.987 billion yuan, 28.084 billion yuan and 29.363 billion yuan, respectively, with growth rates of 21.59%, 9.85% and 17.08% in the past three years, respectively. The bank's share of loan business in the regional market showed a downward trend, with 6.52%, 6.07%, 6.06% and 5.73% from the end of 2016 to 2018 and March 2019 respectively.
In addition, Huzhou Bank's housing mortgage loan decline in 2018 was also relatively large. Data shows that due to the impact of real estate market regulation, the bank's housing mortgage loans fell by 48.66%.
In terms of asset quality, Huzhou Bank's non-performing loan rate is relatively low, and it has continued to decline since 2016, with 1.25%, 0.95%, 0.66% and 0.61% from 2016 to 2018 and the end of the first three quarters of 2019 respectively.
However, the bank's manufacturing and real estate industries have the highest non-performing loan ratio among type of loans. The New Century Credit Evaluation Report shows that at the end of 2018, Huzhou Bank's non-performing loans were mainly distributed in the manufacturing and real estate industries, and the balance of non-performing loans accounted for 47.41% and 13.16% of the total non-performing loans, respectively, and the non-performing loan rates in the industry were 1.16% and 6.96% respectively.
Huzhou Bank litigation case does not seem to be very successful in recovering funds. In 2018, Huzhou Bank involved 65 loan litigation cases, of which 65 cases have been filed as the plaintiff, involving RMB 210.3183 million, but only RMB 25.47151 million was recovered.
In the environment of strict financial supervision and a decline in banking risk appetite, Huzhou Bank's capital business mainly comes from interbank certificates of deposit, financial bonds and municipal bonds, while the scale of non-standard investment has decreased. The New Century Credit Assessment Report said that the risk warning of Huzhou Bank's interbank business: "Huzhou Bank's interbank investment and liabilities have increased rapidly. We need to pay attention to the market risk management of interbank certificates of deposit investment and the liquidity management pressure brought by interbank liabilities."
On January 8 this year, Huzhou Bank released the 2020 interbank certificate of deposit issuance plan, with the planned issuance quota of 16.5 billion yuan in 2020. In terms of capital adequacy ratio, Huzhou Bank's capital adequacy ratio was 13.55% at the end of last year's third quarter, which still meets regulatory standards. However, New Century Credit Assessment stated that in July 2016, Huzhou Bank received 304 million yuan in capital increase and share expansion, and received 304 million yuan in cash, increasing the total share capital to 912 million shares. In 2017, the bank issued two tier-second capital bonds with a total amount of 1 billion yuan to supplement secondary capital. Due to the rapid expansion of the bank's business, various capital adequacy indicators have shown a continuous decline in recent years. Overall, the bank's capital adequacy ratio is at a low level. In the future, with the further expansion of its business and the stricter supervision, the bank may face continuous capital replenishment pressure.
