Reporter Li Yuwen, editor Liao Dan
On April 14, according to the website of the CSRC, Jiangsu Dafeng Rural Commercial Bank (hereinafter referred to as “Dafeng rural commercial bank”) failed to pass the initial public offering. This is the first bank to attend the meeting this year and the first bank to reject the IPO of a shares.
It is reported that the meeting of the development and Examination Committee of the CSRC raised questions on whether the bank, as a regional bank, has a more comprehensive competitiveness, the impact of the epidemic on asset quality, and its relationship with the associated press of Jiangsu Province.
Since the IPO materials were delivered in November 2017, Dafeng rural commercial bank has lined up for more than four years. At the end of 2021, the bank’s total assets were only 53.975 billion yuan, less than half of Ruifeng bank, which has the smallest A-share assets.
Competitiveness, asset quality and relationship with provincial associated press have attracted attention
From the issues concerned at the meeting of the development and Examination Commission, Dafeng rural commercial bank is a regional rural commercial bank, and its customers are mainly concentrated in Dafeng District, Yancheng City. The CSRC requires it to explain whether it has a more comprehensive competitiveness and the measures taken to improve its core competitiveness and their effectiveness in combination with the regulatory policies and regional economic development trend of the cross regional exhibition of rural commercial banks.
Statistics show that Dafeng rural commercial bank is a district level rural commercial bank in Dafeng District, Yancheng City, Jiangsu Province. It was established on November 26, 2011. During the bank’s IPO queue, Zijin bank and Bank of Suzhou in Jiangsu Province successively landed a shares. At present, there are 9 A-share listed banks in Jiangsu Province, including 3 urban commercial banks and 6 rural commercial banks.
The CSRC also asked the bank to explain how to maintain sustainable profitability under the continuous downward trend of China’s interest rate in combination with the fact that the net interest margin and net interest yield are lower than the average level of comparable companies in the same industry; In addition, in combination with business area, capital strength, science and technology investment and other factors, explain the measures taken to improve the anti risk ability and effectiveness, and whether the relevant risk factors are fully disclosed.
The quality of the bank’s assets has also attracted attention. The SFC requires it to explain the impact of its external assets on the quality of its assets, combined with the external operation of the main business areas and the influence of COVID-19. At the same time, in combination with the migration of various loans of the bank, explain the effectiveness of the implementation procedures of the five level classification and relevant internal control measures, and whether the provision for loan impairment is sufficient; Explain the reasons why the loan balance of some group customers exceeds the total credit, and whether the relevant internal control systems are effectively implemented; Whether individual savings deposits are legal and compliant, and whether the growth of time savings deposits is sustainable.
According to the data, at the end of 2021, Dafeng rural commercial bank absorbed 44.435 billion yuan of deposits, a year-on-year increase of 4.47%; Loans and advances were 34.451 billion yuan, an increase of 11.27% year-on-year. The bank’s non-performing loan balance was 381 million yuan, and the non-performing loan ratio was 1.07%, down 0.03 percentage points from the beginning of the year; The provision coverage rate was 331.4%, an increase of 5.93 percentage points over the beginning of the year.
In addition, as Dafeng rural commercial bank is supervised by Jiangsu Provincial Associated Press, and its core system is developed, constructed and operated by Jiangsu Provincial Associated Press, the CSRC requires it to explain its relationship with Jiangsu Provincial Associated Press, and the responsibilities and management of Jiangsu Provincial associated press on the composition of the board of directors, senior management appointment, daily supervision, operation management, risk management, development and construction of important information systems and operation and maintenance management, Whether it affects the independence of the bank and the fairness of information disclosure; The investment and other capital transactions between the bank and the provincial Associated Press, the relationship between creditor’s rights and debts, and whether there is any allocation of management fees; The bank’s decision-making procedures, pricing mechanism and disclosure of related party transactions, whether it involves the occupation of funds by related parties, and whether there is significant dependence on related parties for operating revenue or net profit.
13 lost statements were issued last year
In terms of equity structure, by the end of 2021, the shareholders holding more than 5% of shares in Dafeng rural commercial bank were Yancheng Agricultural Water Conservancy Development Investment Group Co., Ltd. (9.90%), Hongdou Group Finance Co., Ltd. (9.07%), Yancheng Dafeng District Urban Construction Group Co., Ltd. (6.00%), and Jiangsu Huifeng Biological Agriculture Co., Ltd. (hereinafter referred to as “St Huifeng”) (5.69%).
At the end of 2021, the total assets of Dafeng bank were 53.975 billion yuan, less than half of the scale of Ruifeng bank, which has the smallest A-share assets. In 2021, the bank achieved an operating revenue of 1.333 billion yuan, a year-on-year increase of 5.87%; The net profit was 573 million yuan, a year-on-year increase of 12.33%.
From the IPO prospectus disclosed previously, Dafeng rural commercial bank plans to log on to the Shenzhen Stock Exchange, and the number of shares to be issued shall not be less than 10% (including 10%) of the total share capital after issuance, and shall not exceed 25% (including 25%) of the total share capital after issuance. After deducting the issuance expenses, all the funds raised by the issuance will be used to enrich the capital.
By the end of 2021, the bank’s capital adequacy ratio was 14.75%, down 0.33 percentage points from the beginning of the year; Tier 1 capital adequacy ratio and core tier 1 capital adequacy ratio were 13.6%, down 0.34 percentage points from the beginning of the year.
In addition, in recent years, Dafeng rural commercial bank has repeatedly issued a statement of loss. Search the “lost statement” on the official website of Dafeng district natural resources and Planning Bureau, and nearly 50 are related to Dafeng rural commercial bank, of which 13 were released in 2021. The lost items involve certificates and documents such as “house other items certificate”, “house registration notice certificate”, “real estate registration certificate”, etc.
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