Fudian Bank While preparing for the IPO, it also needs to pay attention to issues such as equity structure stability, changes and disconnection of executives
" China Technology Investment " Zhang Ting Long Qiuyue
According to Alibaba Forensic Auction Network, Fudian Bank Co., Ltd. (hereinafter referred to as "Fudian Bank") has added 20 new equity auctions. Recently, Baoshan Yongchang Investment Development (Group) Co., Ltd. (hereinafter referred to as "Yongchang Investment") split its 100 million shares of Fudian Bank into 20 transactions, and will be auctioned on the platform on October 16 this year, with a total starting price of 171 million yuan. Previously, China Railway Trust Co., Ltd. (hereinafter referred to as " China Railway Trust ") also listed and transferred 50 million shares of Fudian Bank on on Shanghai United Property Exchange, with a transfer price of approximately 116 million yuan.
It is understood that in recent years, Fudian Bank executives have frequently changed and vacant. In April 2021, Fudian Bank took office as chairman Hong Weizhi resigned; in September 2021, the bank's former president generation military was promoted to chairman. Since then, the position of president of Fudian Bank has been vacant for a year and has not yet been approved yet. At present, there are only three deputy governors of Fudian Bank.
Equity Multiple auctions and transfers
According to Alibaba Forensic Auction Network, Yongchang Investment split its 100 million shares of Fudian Bank into 20 transactions, and will be auctioned on the platform on October 16 this year, with a total starting price of 171 million yuan. The auction is divided into 5 million shares, with the appraisal price and starting price of RMB 9.49 million and RMB 8.54 million respectively. The starting price is lower than the appraisal price and is currently in a state of no registration.
As for why it needs to be split into 20 auctions, IPG China chief economist Bai Wenxi told the reporter of "China Science and Technology Investment" that bank equity auctions are related to the value of the target of the commercial dispute involved and the specific shareholders. Usually, the corresponding equity of the shareholders involved can only be auctioned, which will inevitably lead to split and auction of the equity of the bank involved, and cannot be auctioned as a whole.
Previously, China Railway Trust also listed and transferred 50 million shares of Fudian Bank on the Shanghai United Property Exchange for the second time, with a transfer price of approximately 116 million yuan. It is reported that the first listing reserve price of the equity is about 128 million yuan. If the listing and transfer is successful, China Railway Trust will withdraw from the shareholder list of Fudian Bank.
In addition, Fudian Bank's equity has been transferred by shareholders many times. In 2021, the bank's second largest shareholder, , China Datang Group Finance Co., Ltd., , released share transfer information on the Shanghai United Property Exchange, intending to transfer its 900 million shares of Fudian Bank, accounting for 14.4% of the total share capital. The ninth largest shareholder, Honghe Development Group Co., Ltd., transferred 100 million shares of the bank; the fourth largest shareholder, Guancheng Datong (600067.SH), pledged 208 million shares of the bank.
Fudian Bank once stated that in 2021, the bank will simultaneously launch the preparations for the IPO from 2021 to 2023, and complete the listing guidance work by the end of 2021. In order to prepare for the IPO, Fudian Bank also listed a capital increase and share expansion project on the Yunnan Property Exchange for 2021-2022, intending to raise no more than 6.8 billion yuan and plans to add no more than 2 billion shares. Recently, the Yunnan Property Exchange issued an announcement on the transaction of Fudian Bank's capital increase and share expansion projects from 2021 to 2022. The capital increase and share expansion project was invested and subscribed by four companies, with a total subscription amount of 430 million shares and a total raised amount of 1.329 billion yuan.
Specifically, Fudian Bank has added 4 new investors and its shareholding ratios are Kunming Transportation Investment Co., Ltd., 2.99%, Yunnan Huigang Investment Co., Ltd., 1.5%, Kunming Expressway Construction and Development Co., Ltd., 1.5%, Kunming Dianchi National Tourism Resort State-owned Assets Investment Management (Group) Co., Ltd., 0.45%. Fudian Bank's capital increase and share expansion project has not yet met its expected plan. In addition, as of now, there has been no other progress in the IPO work of Fudian Bank except for capital increase and share expansion to introduce new shareholders.
"The cold auction of some banks shows that the market is not optimistic about the asset quality and future development of these banks, which will naturally cause market confidence, market image pressure and negative impact on their capital increase, expand and replenish blood. As a city commercial bank that is willing to go public, Fudian Bank's equity is frequently pledged, auctioned and transferred, which will affect the bank's shareholder structure, even governance structure, company strategy and operation strategy, and the stability of the core team, which is very unfavorable for bank IPOs," Bai Wenxi further analyzed.
Executive changes
In recent years, senior executives of Fudian Bank have undergone frequent personnel changes. In May 2018, Hong Weizhi, then deputy mayor of Kunming, was airborne as chairman of Fudian Bank. Previously, Xiashu served as the bank's chairman for 11 years. In July 2019, Yang Min, the former president of Fudian Bank, was transferred. Two months later, Dai Jun, former vice president of Fudian Bank, was promoted to president. In April 2021, Hong Weizhi, chairman of Fudian Bank, resigned, and his tenure lasted for only three years. Subsequently, the president Dai Jun was promoted to chairman.
executives of Fudian Bank also experienced a gap. Since the former president of Fudian Bank was promoted to chairman, the bank's president position has been vacant for a year and has not yet been approved. During the vacancy of the president's position, the official seals of the President of Fudian Bank's 2021 annual report and the 2022 semi-annual report were stamped with the seals of Chairman Dai Jun and Vice President Dong Ling. In addition, Dong Ling's term of office is from 2020 to 2023 and she retires at an appropriate age.
In addition, according to the 2021 annual report of Fudian Bank, Cao Yanli, who was the bank's then deputy president, resigned. At that time, the only deputy presidents of Fudian Bank were Dong Ling and Na Ran. Recently, according to the Yunnan Provincial Commission for Discipline Inspection and Supervision, Cao Yanli was expelled from both law for serious violations of discipline and law. Until July this year, , the China Banking and Insurance Regulatory Commission approved the qualifications of Wang Keqiang, deputy president of Fudian Bank, and the bank's deputy president was restored to three.
comparison, as of the end of June this year, Fudian Bank's asset scale was 334.12 billion yuan, and Yunnan Hongta Bank Co., Ltd. is the second city commercial bank in Yunnan Province, with its asset scale of 147.478 billion yuan, and the bank is equipped with 6 deputy presidents. When the asset scale is comparable, the asset scale of Wenzhou Bank Co., Ltd. is 352.14 billion yuan, and the number of vice presidents is 5.
In recent years, Fudian Bank may have slowed down due to the interruption and changes in senior executives, and has received regulatory fines many times due to internal control issues.
According to Fudian Bank's 2022 semi-annual report, the bank's operating income and net profit attributable to shareholders were 2.902 billion yuan and 402 million yuan respectively, increased by 3.9% and 5.5% year-on-year respectively. As of the end of 2021, the bank's operating income and net profit attributable to shareholders were RMB 5.694 billion and RMB 613 million, respectively, an increase of 11.91% and 14.34% year-on-year respectively. It can be seen that the growth rate of Fudian Bank's operating income and net profit fell to single digits.
At the same time, Fudian Bank's profitability needs to be improved. In its latest tracking and rating announcement for Fudian Bank, United Credit Assessment Co., Ltd. pointed out that the large-scale bank impairment loss has a significant negative impact on profits. Among them, in 2021, the bank's credit impairment loss was 2.724 billion yuan. Due to factors such as the large write-off of non-performing assets and the decline in investment assets quality, Fudian Bank's impairment loss scale is at a high level.
According to incomplete statistics from reporters, since this year, Fudian Bank and its branches have been issued 11 fines by the China Banking and Insurance Regulatory Commission and the People's Bank of China , with a total fine of 6.395 million yuan. Specifically, the reasons for illegal and irregular activities include inadequate internal control management, credit violations, failure to fulfill customer identity identification obligations in accordance with regulations, etc. Among them, the Xishuangbanna Branch of Fudian Bank was fined 300,000 yuan by regulators for repeatedly investigating and repeatedly committing in the loan inspection and misappropriating the loan funds.
*Fudian Bank's fine situation is based on Central Bank and the official website information of the China Banking and Insurance Regulatory Commission
China Enterprise Reform and Development Research Association researcher Wu Gangliang told the reporter of "China Science and Technology Investment", "Banks should maintain the stability of the operating team, and frequent personnel changes in senior executives will have an adverse impact on IPOs. Long-term vacancy will affect the normal operation and performance indicators of the bank and increase operating risks. The board of directors' responsibilities are to determine the strategy, and the party organization plays a role in setting the direction, managing the overall situation, and promoting implementation, but frequent changes in executives will also affect the effective implementation of business strategy . In addition, changes in executives can easily cause a bad impression of management chaos and problems in the internal control system to the outside world, and thus affect the reputation of the bank. "
In response to issues related to Fudian Bank's equity auction and executive changes, the reporter sent a letter to Fudian Bank. As of press time, no reply has been received.
