, which was established with many well-known shareholders, has its profitability still at a low level. Its membership qualification for gold trading was recently cancelled
"China Technology Investment " Zhang Ting Long Min
Recently, Shanghai Gold Exchange (hereinafter referred to as "Shangjinshou") issued an announcement stating that in view of the long-term failure of Fujian Huatong Bank Co., Ltd. (hereinafter referred to as "Huatong Bank") and other two units have been unable to fulfill the basic obligations of membership and have not taken effective rectification measures, according to relevant regulations, after the review and approval of the Shanghai Gold Exchange Board, it was decided to cancel the membership of the above two units.
, and Huatong Bank also issued an announcement two days later, stating that the gold trading business was suspended as early as 2019 and the gold trading membership was cancelled on October 10, 2022. Judging from the revenue composition of Huatong Bank, the intermediary business revenue has continued to decline in recent years. As of the end of 2021, the net income from handling fees and commissions was -133 million yuan, a year-on-year decrease of 56.6%.
In addition, Fujian Sansheng Real Estate Development Co., Ltd. (hereinafter referred to as "Sansheng Real Estate"), the major shareholder of Huatong Bank, has recently frozen the amount of equity of in Huatong Bank of 3 million yuan, and has become the person subject to execution 6 times, with a total amount of 9.7879 million yuan. As the first private bank in Fujian Province, Huatong Bank was established in 2017, but so far, many major shareholders have pledged or frozen their equity in Huatong Bank. Affected by this, Huatong Bank's performance has also fluctuated in recent years.
Gold trading membership has been cancelled
At present, Shanghai Gold Exchange has not disclosed the specific violations of Huatong Bank, but according to Article 24, Article 49 of the "Shanghai Gold Exchange Member Management Measures" and Article 24 of the "Shanghai Gold Exchange Violations Handling Measures", there are 10 cases where Shanghai Gold Exchange cancelled membership.
specifically includes those that seriously violate the exchange's articles of association, trading rules and relevant regulations; those that are recognized by regulatory agencies as prohibited from entering the market; those that will contract membership or trading seats for others to manage or operate; those that have not conducted transactions for three consecutive months without a legitimate reason, etc.
Shangjinsuo stated that during the member supervision process, it has the right to take regulatory measures such as oral warnings, written warnings, request rectification, appointments and conversations, and special investigations based on the facts confirmed by the investigation. If a member fails to make rectification within a time limit, the transaction ownership shall suspend its related business until the membership is cancelled.
, and Huatong Bank also issued an announcement on October 12, stating that due to the adjustment of strategic business direction, the bank's gold trading business was suspended as early as 2019 and officially canceled its gold trading membership on October 10, 2022.
Insider of a banking industry told a reporter from China Technology Investment, "Currently, some banks have adjusted related transactions according to changes in the market environment, which is a normal business adjustment, but does not mean that related businesses will be closed forever. It is expected that as the precious metals market becomes clear, some banks are expected to readjust their business. Judging from past experience, some banks restrict personal precious metals trading business mainly to increase the transaction costs of , tightening new account openings, suspending related businesses, etc., based on the current complex market environment, many banks have adjusted their business, and it is expected that some banks will still join the tightening ranks. "
Huatong Bank was established in January 2017. According to the 2018 financial report, the bank mainly involves interest rate risks and precious metals risks in market risk management, but as of the end of 2018, Huatong Bank did not hold in precious metals business, and its risk exposure was zero. Since then, Huatong Bank has not disclosed data on precious metals business in its financial report.
However, from the perspective of operating income composition, Huatong Bank's intermediate business revenue has continued to decline in recent years.From 2019 to 2021, Huatong Bank's net income from handling fees and commissions was -23 million yuan, -85 million yuan and -133 million yuan, respectively, with year-on-year decline rates of 4044.93%, 268.10% and 56.6% respectively.
Previously, the "Fujian Huatong Bank Co., Ltd. 2021 Subject Credit Rating Report" released by Oriental Jincheng International Credit Evaluation Co., Ltd. pointed out that from the perspective of business composition, net interest income from deposits and loans is the main source of Huatong Bank's income and profit . The bank's online deposit customer acquisition and drainage fees are relatively high, and the net income from handling fees and commissions is negative, which has a certain erosion of operating income.
Multiple major shareholders pledged and frozen equity
Huatong Bank is the first private bank in Fujian Province. It was jointly initiated and established by 8 Fujian private enterprises including Yonghui Supermarket (601933.SH), Sunshine Holdings Co., Ltd. (hereinafter referred to as " Sunshine Holdings "), Fujian Panpan Biotechnology Co., Ltd. (hereinafter referred to as "Panpan Bio"), Sansheng Real Estate, Fujian Shengnong Food Co., Ltd. and other 8 Fujian private enterprises.
Qichacha shows that Sansheng Real Estate has been the person subject to execution 6 times, with a total amount of execution of 9.7879 million yuan. At the same time, Sansheng Real Estate has recently frozen its equity amount of RMB 3 million in Huatong Bank. The execution court is the People's Court of Minhou County, Fuzhou City, with a freezing period of two years.
In addition, Sansheng Real Estate pledged 16,800 shares of Huatong Bank, and the pledgee is Minshang Holdings (Pingtan) Co., Ltd. (hereinafter referred to as "Minshang Holdings"). As of the end of 2021, Sansheng Real Estate, Panpan Bio and Sankeshu Paint Co., Ltd., were ranked as the fifth largest shareholder of Huatong Bank. holds 168 million shares, and the shareholding ratio is 7%.
It is worth noting that the top two shareholders of the pledgee Minshang Holdings are Zhang Xuansong and Sunshine Holdings, with shareholding ratios of 29.33% and 28% respectively, and Zhang Xuansong is the chairman of Yonghui Supermarket. As of the end of 2021, Yonghui Supermarket, the former two shareholders of Huatong Bank, held 27.50% of its shares, and Sunshine Holdings held 26.25%.
Among them, Sunshine Holdings has pledged 309 million shares of Huatong Bank, accounting for 12.86% of Huatong Bank's total share capital. Yonghui Supermarket also became the person subject to execution in October this year, with the execution target of 1,395 yuan.
However, the crisis facing Yonghui Supermarket and Sunshine Holdings is much more than that. Yonghui Supermarket's latest performance shows that its debt-to-asset ratio reached 83.33% in the first half of 2022, and 389 stores have been closed in the past three years, with a market value of about 80 billion yuan evaporated compared with the highest level. Chairman Zhang Xuansong has reduced his holdings and cashed out nearly 5 billion yuan since 2018.
In addition, Sunshine City (000671.SZ) under Sunshine Holdings also disclosed at the end of August this year that the company's liquidity was temporarily tight. The total amount of the debt principal that the company has matured and has not paid is 35.766 billion yuan, of which the overseas open market bond failed to pay the principal on time, and the domestic open market bond 14.903 billion yuan was not paid the principal on time. According to the third quarter report of 2022, Sunac's net profit attributable to shareholders of listed companies was 5.937 billion yuan.
And since its establishment, Huatong Bank's performance has also been ups and downs. From 2017 to 2020, Huatong Bank's operating income continued to grow positively, but as of the end of 2021, its operating income was 313 million yuan, a year-on-year decrease of 36.34%; by the end of June 2022, Huatong Bank's operating income was 272 million yuan, and increased by year-on-year, but it was still lower than the operating income at the end of 2021.
From the perspective of net profit, from 2017 to 2018, Huatong Bank was in a loss state, turned losses into profits after 2019, and further grew in 2020. However, by the end of 2021, its net profit was 5.1741 million yuan, a year-on-year decrease of 50.44%. As of the end of June this year, Huatong Bank's net profit was 30 million yuan, an increase from the end of last year, but still fell by 40.03% year-on-year compared with .
financial commentator Zhang Xuefeng told the reporter of "China Science and Technology Investment", "The performance development of major shareholders will affect the bank's operating conditions to a certain extent. If the performance development of major shareholders is good, it will be a positive impact for the bank, otherwise the impact will be relatively negative for the bank. The bank's main business is to earn interest spreads between deposits and loans. If the performance development of major shareholders is unfavorable, it may also lead to a trust crisis for bank customers to the bank."
reporter sent a letter to Huatong Bank on gold trading business, equity and other issues. As of now, no reply has been received.
