The IPO of Bank of Guangzhou received feedback from CSRC, a total of 51 questions need to be answered

category:Finance
 The IPO of Bank of Guangzhou received feedback from CSRC, a total of 51 questions need to be answered


However, the feedback shows that the proportion of real estate loans is relatively high, the loan concentration of the top ten customers is high, and some annual regulatory indicators are lower than or close to the target standards. In addition, shareholders and equity issues are also worthy of attention.

At present, there are 16 banks in the A-share IPO queue, of which 13 are pre disclosed and updated and 3 are fed back. Agricultural commercial banks account for more than 60%.

According to the prospectus, as of December 31, 2019, the main industries of loan customers of Bank of Guangzhou were real estate industry, leasing and business service industry, and wholesale and retail industry. Loans from the three major industries accounted for 64.34% of the total loans and advances of the company, accounting for 29.90% of the total loans and advances.

According to the prospectus, Bank of Guangzhous real estate loans include corporate loans and advances to the real estate industry and personal housing mortgage loans. As of December 31, 2019, the banks corporate loans and advances in the real estate industry were RMB 35.50 billion, accounting for 25.61% of the total corporate loans and advances, and the non-performing loan ratio was 0.90%; the banks personal housing mortgage loan was RMB 22.300 billion, accounting for 16.80% of the total personal loans, and the non-performing loan rate was 0.39%.

According to the feedback, in combination with the increasingly strict regulation and control of the real estate market, the conditions for granting loans to the real estate industry, and the specific situation of the need to provide corresponding mortgage and pledge, the issuers should supplement the reasons for the high proportion of loans to the real estate industry, whether the quality of the loans to the real estate industry has declined, and whether the loss reserves for such loans are sufficient.

The loan concentration of the top ten customers is relatively high

According to the prospectus, as of December 31, 2019, the balance of loans and advances made by the bank to the largest single customer accounted for 6.08% of the net capital, and the balance of loans and advances to the top ten customers accounted for 47.62% of the net capital.

It is worth noting that the loan concentration ratio of the top ten customers of Bank of Guangzhou has also exceeded the regulatory indicators. According to the data of the prospectus, the loan concentration ratios of the top ten customers of Bank of Guangzhou from 2017 to 2019 were 60.70%, 45.80% and 47.62% respectively. Among them, 60.70% was in 2017, which was 10.7% higher than the red line of regulatory indicators.

The risk tips part of the prospectus mentioned that the bank has a relatively concentrated loan customers. Although the bank has focused on strengthening the control of the maximum credit line of a single customer and the overall credit scale of major credit customers, and the loan concentration ratio of the largest ten customers has declined year by year, if the largest ten customers are not well managed, their solvency will decline, which may lead to the banks loan quality The decline in volume and the significant growth of non-performing loans have adverse effects on asset quality, financial status and operating performance.

According to the feedback from the CSRC, the Bank of Guangzhou is required to disclose the main information of the top ten customers during the reporting period according to the business types, and explain the reasons for exceeding the relevant regulatory index standards, whether they are subject to regulatory penalties, and whether there are defects in internal control; in addition, it is also necessary to disclose the main situation of the top ten customers who have produced non-performing assets during the reporting period, and combine with the non-performing loan enterprises The specific situation of the industry, the mutual guarantee of non-performing loan enterprises and their related enterprises, etc., indicating whether the company has sufficient provision for impairment of related industries or enterprises.

Equity issues attract attention

In terms of shareholders and equity, the CSRC has provided feedback on equity changes and equity clarity, self linked shares, share pledge and freezing, and internal employee share locking.

The CSRC requires the Bank of Guangzhou to make supplementary disclosure of relevant information. First, whether the existing shareholders of the issuer meet the legal qualifications and whether there are unqualified shareholders. If so, please disclose the specific situation and the formation process of the equity, as well as whether it conforms to the relevant provisions of the industry competent department; second, whether the fact that some shareholders have not confirmed their rights constitutes unclear equity, and whether it conforms to the initial measures Relevant regulations.

About self linked shares. According to the prospectus, from the first change of registered capital of Bank of Guangzhou to December 31, 2018, some loan shareholders used shares to repay debts, city credit cooperatives own capital contributed shares, trade union equity and so on, forming a total of 12.79 million shares. In December 2018, the Bank of Guangzhou signed the share transfer agreement with Guangzhou Development Zone Investment Group Co., Ltd., and Guangzhou Development Zone Investment Group Co., Ltd. transferred the banks own shares at the price of 3.29 yuan / share.

According to the above situation, the CSRC requires the Bank of Guangzhou to make supplementary disclosure in the prospectus of the number of shares, the formation and evolution process of the issuers own shares, as well as the current liquidation situation, the basic information of Guangzhou Development Zone Investment Group Co., Ltd. and whether there is any proxy shareholding.

On major violations of the law. According to the prospectus, during the reporting period, the Bank of Guangzhou and its branches were subject to 23 administrative penalties for violation of laws and regulations. According to the Bank of Guangzhou, the main types of administrative penalties taken by the bank and its related branches are fines. The amount involved in 23 administrative penalties accounts for a very low proportion of the latest audited net assets, and the relevant fines have been paid.

In addition, as of December 31, 2019, there were 38 major litigation and arbitration cases in which the Bank of Guangzhou was the plaintiff and the applicant, and the principal of a single dispute involved in the case was more than 10 million yuan. Among them, there are 25 litigation and arbitration cases with the principal amount of more than 10 million yuan involved in a single case, involving a total of about 1.265 billion yuan, and a total of 628 million yuan of asset loss reserves; there are 13 major litigation and arbitration cases with the principal amount of more than 10 million yuan that are not included in the table, involving a total of 565.4703 million yuan.

In view of the relevant cases, the CSRC required the Bank of Guangzhou to disclose the basic information, progress and implementation of the case, and analyze the impact of the case on the production and operation of the issuer.

Profit growth of 14.73% last year

Founded on September 11, 1996, the Bank of Guangzhou was jointly established by 46 urban credit cooperatives and Guangzhou Finance Bureau with a registered capital of 712 million yuan.

According to the prospectus, in 2019, the total assets of the Bank of Guangzhou was 561.2 billion yuan, the operating income was 13.379 billion yuan, an increase of 22.35%; the net profit was 4.324 billion yuan, with a year-on-year increase of 14.73%.

In terms of asset quality, as of the end of 2019, the non-performing loan ratio of Bank of Guangzhou was 1.19%, with a year-on-year increase of 0.33 percentage points; the provision coverage rate was 217.30%, with a year-on-year decrease of 13.96%; in terms of capital adequacy ratio, as of the end of 2019, the core tier 1 capital adequacy ratio and tier 1 capital adequacy ratio of Bank of Guangzhou were 10.14%, and the capital adequacy ratio was 12.42%.

According to the prospectus, the number of shares issued by Bank of Guangzhou this time is no more than 3.925 billion shares, with a par value of 1.00 yuan per share. The sponsor is Guotai Junan Securities. After deducting the issuance expenses, the raised funds will be used to supplement the capital of the bank, so as to improve the capital adequacy level and enhance the comprehensive competitiveness.

According to the CSRC data, there are still 16 banks lining up for A-share IPO, excluding Shanghai Rural Commercial Bank and Chongqing bank, which have passed the meeting.

Among them, 13 banks, including Lanzhou bank, Jiangsu Dafeng rural commercial bank, Maanshan rural commercial bank, Dongguan bank, Guangzhou rural commercial bank, Guangzhou Nanhai rural commercial bank, Guangdong Shunde rural commercial bank, Zhejiang Shaoxing Ruifeng rural commercial bank, Xiamen rural commercial bank, Bozhou Yaodu rural commercial bank, jiangsuhaian rural commercial bank, Jiangsu Kunshan rural commercial bank and Qilu bank were in advance Disclosure updates. The audit status of Huzhou bank, Guangzhou bank and Chongqing Three Gorges bank is feedback.