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Guangfa Bank coached to get 30 billion yuan to issue "red envelopes" Wang Bin key internal control and IPO two "fire"

January 11, 2019 01:31
Author: Zhao Lin

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Summary
[Guangfa Bank changed coaches to get 30 billion yuan to issue "red envelopes" Wang Bin key internal control and IPO two "fire"] Since the application for additional shares of the company was approved by the China Securities Regulatory Commission in early December, Guangfa Bank has accelerated the issue of additional issuance. On January 3, the announcement of the issuance of additional shares and the change of share capital issued by Guangfa Bank's official website showed that the bank's nearly 30 billion yuan capital increase and share expansion funds have all been received.

Since the beginning of December last yearAdditional issuanceSince the application was approved by the China Securities Regulatory Commission, GuangfabankAccelerate the promotion of additional issues. On January 3, the results of the additional issuance and share capital changes released by Guangfa Bank's official websiteannouncementIt shows that the bank's nearly 30 billion yuan capital increase and share expansion funds have all been received.

Just a few days before the dust was settled, Guangfa Bank also issued a notice on the change of the chairman. The former chairman Yang Mingsheng resigned due to his age, and the board of directors elected Wang Bin as chairman.

At the beginning of 2019, two heavy news of Guangfa Bank were released one after another, which made the market have more expectations. However, the "Securities Daily" reporter noted that althoughChina Life InsuranceBecome bigshareholderAfter, Guangfa Bank 2017Net profitA substantial increase has been achieved, but the bank's capital adequacy ratio, Tier 1 capital adequacy ratio and core Tier 1 capital adequacy ratio are all counted down in the industry. This capital increase is undoubtedly a "timely rain" for Guangfa Bank.

30 billion yuan increase in capital

The share issuance plan of Guangfa Bank began in April 2017. inChina Life InsuranceAfter becoming the largest shareholder, Guangfa Bank has thrown out a share issuance plan with a total amount of no more than RMB 30 billion. The announcement shows that the funds raised by the share issuance will be used to supplement the capital of the bank after deducting the issuance expenses, increase the capital adequacy ratio and support the development of the bank's business. In October and December of 2018, the application for additional issuance was approved by the China Insurance Regulatory Commission and the China Securities Regulatory Commission.

According to the announcement issued by the official website of Guangfa Bank on January 3, the targeted issue of 4.285 billion sharesNew sharesThe total share capital increased to 19.687 billion shares. This additional share issue,China Life InsuranceWaiting for 52 registered shareholders to subscribe for a total of 1.911 billion shares; Jiangxi ProvincehighwayInvestment Group Co., Ltd. (hereinafter referred to as “Jiangxi Expressway”) subscribed for 1.611 billion shares; AVIC Investment Holdings Co., Ltd. subscribed for 762 million shares.

After the completion of this capital increase, China Life holds 8.6 billion shares, accounting for 43.69% of the total share capital. The shareholding ratio is the same as before the capital increase. The shareholding ratio of State Grid Yingda International Holdings Group Co., Ltd. and CITIC Trust decreased to 15.65% from the previous 20%. Jiangxi Expressway, which had not entered the top ten shareholders before, ranked fourth with 8.18% shareholding.

According to relevant data, in 2017, the capital adequacy ratio of Guangfa Bank was only 10.71%. Compared with 29 listed banks, this data is at the bottom position. At the same time, the bank's Tier 1 capital adequacy ratio and core Tier 1 capital adequacy ratio are only 8.01%, this data is only higher thanBank of NanjingwithZhengzhou BankThe overall situation is also low. In addition, data show that in the first half of 2018, the capital adequacy ratio of Guangdong Development Bank further fell to 10.27%, and the Tier 1 capital adequacy ratio and core Tier 1 capital adequacy ratio fell to 7.77%. Therefore, this "blood-filling" has a very small meaning to Guangfa Bank.

After all the funds for the capital increase and share expansion totaled 29.974 billion yuan were received, relevant persons of Guangfa Bank told the "Securities Daily" reporter that "the completion of the share issuance further increased the capital strength of the Bank and provided for business development and strategic implementation. Solid support."

The problem faced by the new chairman

The reporter noted that on December 26, 2018, before the completion of the issuance, Guangfa Bank issued a notice on the change of the chairman. The announcement showed that the former chairman Yang Mingsheng had resigned as the chairman and director of the bank on December 25 due to his personal age. The 8th Extraordinary Meeting of the 8th Board of Directors of the Bank elected Wang Bin as Chairman of the Board.

Relevant information shows that Wang Bin has served in government and financial institutions and has nearly 30 years of financial management experience. At present, Wang Bin is the chairman of China Life Insurance, the largest shareholder of Guangfa Bank.

For Wang Bin, who has many years of management experience in the financial industry, the three fires after the new official takes office may be the first to "burn" to the internal control management and listing process.

According to the statistics of the "Securities Daily" reporter, in 2018, Guangfa Bank received 23 tickets and the penalty amount was 13.58 million yuan. Among them, Wuhan Branch, Fuzhou Branch, Suzhou Branch and Nanjing Branch all have fines of more than 1 million. The reasons for violations of the law include the misappropriation of personal loan funds,CreditThe funds were misappropriated, the loan was transferred to the banknote deposit, the case risk information was not reported in time, and the payment and settlement business regulations were violated. Faced with so many fines, it undoubtedly sounded the alarm for the bank and became a problem that the new chairman had to face.

In addition, how to lead the listing of Guangfa Bank has become an important task for Wang Bin during his tenure. Since the launch of the listing plan by Guangfa Bank in 2011, the bank's IPO process has been twisted and twisted until its IPO status became "temporary suspension" in July 2017. As more and more joint-stock commercial banks successively landed in the capital market, the IPO of the Guangfa Bank came to an abrupt end, which made the outside world feel confused about the listing process.

"Achieving public listing is the only way for Guangfa Bank to further improve the company's legal mechanism, establish a long-term capital replenishment mechanism, and consolidate the foundation for sustainable development." Insiders of Guangfa Bank said in an interview: "We have always attached great importance to and actively promoted preparations. The work is generally close to the declarable status.” It is understood that the follow-up Guangfa Bank will comprehensively consider the changes in the internal and external environment and the situation, continue to promote the listing process, and establish a long-term mechanism for capital replenishment.

(Article source: Securities Daily)

                (Editor: DF407)

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