At the critical moment of the sprint for IPO, the former chairman was investigated, casting a shadow over the IPO road of Hubei Bank.
Since the launch of the IPO in May 2021, Hubei Bank has experienced frequent "accidents". Not only have senior executives been sacked, but the company's equity structure has also changed frequently.At the operational level, Hubei Bank's NPL ratio is also higher than the industry average.
The former chairman and vice president were investigated
On May 30, according to the official website of the Central Commission for Discipline Inspection, Chen Dalin, former secretary and chairman of the Party Committee of Hubei Bank, was suspected of serious violations of discipline and law, and is currently undergoing disciplinary review and supervision investigation by the Hubei Provincial Commission for Discipline Inspection.
Chen Dalin was the first chairman of Hubei Bank.In 2010, the Hubei Provincial Government established the Bank of Hubei by means of a new merger on the basis of the original five city commercial banks, namely Yichang, Xiangyang, Jingzhou, Huangshi and Xiaogan, and was formally established on February 27, 2011.
Chen Dalin has served as the chairman of Hubei Bank since then, until his retirement in 2017, serving for 7 years.Five years after leaving office, Chen Dalin was still investigated.
During Chen Dalin's tenure as chairman, Hubei Bank had put the listing on the agenda. In its 2015 annual report, it was proposed to "start the H-share IPO first, and then return to the A-share market when the A-share IPO application path is smooth". .
It was not until May 10, 2021 that Hubei Bank officially launched the listing counseling process, and the counseling institution was CITIC Securities.In October, CITIC Securities uploaded its third-phase counseling report on Hubei Bank's IPO.
However, on the eve of launching the IPO, Hubei Bank and executives were sacked.On April 30, 2021, Wen Yaoqing, former member of the Party Committee and vice president of Bank of Hubei, was expelled from the party and from public office, and was arrested by the Hubei procuratorate according to law on May 20 of that year.
Wen Yaoqing's disciplinary violations include: colluding with confessions, falsifying evidence, transferring and concealing illicit money, and resisting organizational censorship; violating life discipline, bringing colorful entertainment, and pursuing low-level interests; Seeking benefits for others in matters such as project undertaking and bank loan approval, soliciting or illegally accepting other people’s property, the amount is particularly large, and suspected of taking bribes.
During this period, Hubei Bank was also fined and confiscated about 2.624 million yuan for 6 violations of laws and regulations, and 4 responsible persons were warned.
The fine issued by the Hubei Banking and Insurance Regulatory Bureau on July 30, 2021 shows that the main violations of Hubei Bank include: illegally providing shareholders with equity funds through the bank's wealth management business; Real estate development loans are issued for incomplete projects; the five-level classification of loans is inaccurate; credit loans are issued to related parties in violation of regulations; person and the legal representative account of its group company.
Frequent changes
in shareholding structure Cleaning up the chaotic shareholding structure is also a difficult task in the IPO process of Hubei Bank.
CITIC Securities stated in the first counseling report that among the non-natural person shareholders of Hubei Bank, Hubei Hongfan Plastic Co., Ltd. (which has been bankrupt and liquidated), the People's Bank of China Jingzhou Branch (branch), Huangshi Taoranlou Hotel, and Huangshi Electric Power Group Co., Ltd. The company's High-tech Zone Power Distribution Engineering Branch, CRRC Zhuzhou Electric Locomotive Industrial Management Co., Ltd. Xiangyang Branch, Yichang Shengzhou Commercial Service Department (deregistered), etc. do not have legal personality and need to be cleaned up.
The third phase of the counseling announcement in October 2021 shows that Hubei Bank has completed the cleanup of defective shares except for some missing shareholders, but there are still uncleaned defective shares.
Just after CITIC Securities disclosed the three-phase counseling announcement, Hubei Bank still had its shares auctioned.On December 15, 2021, the 110 million shares held by Anneng Thermal Power Group were put up for public auction. The starting price was 361.3 million yuan, which was 10% off the appraisal price. In the end, Jingmen Urban Construction Investment Holding Group bid 361.3 million yuan. acquire the equity.
In addition, Hubei Finance Department, which was the third largest shareholder of Hubei Bank, transferred its stake in Hubei Bank in April this year.
At the end of 2021, the Hubei Department of Finance will hold a 10% stake in Hubei Bank.On April 14, 2022, the Hubei Provincial Department of Finance transferred its 609 million shares of Hubei Bank to Changjiang Industrial Investment Group, and transferred 152 million shares of the bank to Hubei Hongtai Group Co., Ltd. , so far Hubei Finance Department has completely withdrawn from the list of shareholders of Hubei Bank.
The non- performing ratio is higher than the industry average.
By the end of 2021, the total assets of Hubei Bank were 350.195 billion yuan, an increase of 45.727 billion yuan or 15.02% over the end of the previous year; the total liabilities were 322.253 billion yuan, an increase of 43.797 billion yuan or 15.73% over the end of the previous year.
Hubei Bank's assets are constantly expanding, but revenue has fallen for three consecutive years.The revenue from 2019 to 2021 will be 8.002 billion yuan, 7.821 billion yuan, and 7.673 billion yuan respectively.In 2021, Hubei's revenue will decline by 1.9% year-on-year; net profit will be 1.756 billion yuan, a year-on-year increase of 13.1%.
In terms of asset quality, at the end of 2021, Hubei Bank’s non-performing loans totaled 3.808 billion yuan, compared with 3.688 billion yuan at the end of the previous year; the non-performing loan ratio was 2.10%, the capital adequacy ratio was 13.85%, and the provision coverage ratio was 217.67%.
According to the main regulatory indicators of the banking and insurance industry released by the China Banking and Insurance Regulatory Commission in the fourth quarter of 2021, at the end of the fourth quarter of 2021, the non-performing loan ratio of my country's commercial banks was 1.73%.Hubei Bank's NPL ratio is clearly higher than the industry average.
