After this equity change, the overall shareholding ratio of "Wanxiang System" in MYbank remains unchanged.
China Science and Technology Investment" Long Min.
Recently, Zhejiang MYbank Co., Ltd. *** hereinafter referred to as "MYbank") introduced a new shareholder, Minsheng Life Insurance Co., Ltd. *** hereinafter referred to as "Minsheng Life") and Wanxiang Sannong Group *** hereinafter referred to as "Wanxiang Sannong") reached a transaction with 30.5 billion yuan of ** transfer of Wanxiang Sannong held by MYbank 7200 million shares, transaction amount 219.6 billion yuan.
Lu Weiding, chairman and actual controller of Minsheng Life Insurance, is also the chairman and general manager of Wanxiang Sannong, the second largest shareholder of MYbank. If the equity change is completed, the shareholding ratio of Wanxiang Sannong will be reduced to 1582%, but it will not change the overall shareholding ratio of "Wanxiang" in MYbank.
In recent years, MYbank's business has developed rapidly, and its revenue and net profit have shown an upward trend, but it is still facing the need for capital replenishment. According to the data, since its establishment in 2015, MYbank's NPL rate has increased from 018% rose to 1. at the end of 202294%, and the capital adequacy ratio increased from 18 to 18 in the same period51% down to 1150%, with a further decline to 1140%。
The trading target is 1096% equity
According to the "Announcement on the Information Disclosure of Major Connected Transactions on the Transfer of Zhejiang MYbank Shares Held by Wanxiang Sannong Group" issued by Minsheng Life Insurance, the subject of this transaction is MYbank 1096% equity.
On December 28, 2023, Minsheng Life Insurance and Wanxiang Sannong signed the "Agreement on the Transfer of Shares of Zhejiang MYbank".05 yuan shares of ** transfer of Wanxiang Sannong held by MYbank 7200 million shares, with a transaction amount of 219.6 billion yuan, after the completion of the transaction, Minsheng Life's shareholding in MYbank will be about 1096%。
The amount of this connected transaction exceeded 1% of Minsheng Life's net assets at the end of 2022, constituting a major connected transaction of the company's capital utilization. According to the official website of Minsheng Life Insurance, on December 25, 2023, the general meeting of shareholders deliberated and passed the "Proposal of Minsheng Insurance on Investing in Zhejiang MYbank Shares", and related shareholders abstained from voting, but the affirmative votes only accounted for 65 of the shares held by non-affiliated shareholders attending the shareholders' meeting17%, and another negative vote accounted for 34% of the shares held by non-affiliated shareholders attending the general meeting83%。
The special feature of this transaction is that Lu Weiding, the chairman and actual controller of Minsheng Life Insurance, is also the chairman and general manager of Wanxiang Sannong, the second largest shareholder of MYbank, and has a significant influence over Wanxiang Sannong, as well as MYbank, so Wanxiang Sannong and MYbank are affiliated legal persons of Minsheng Life.
According to the enterprise investigation, the major shareholder of Minsheng Life Insurance is China Wanxiang Holdings, hereinafter referred to as "Wanxiang Holdings"), and the controlling shareholder of Wanxiang Sannong is Wanxiang Trust Co., Ltd., which is also a subsidiary of Wanxiang Holdings. Lu Weiding also serves as Deputy Secretary of the Party Committee, Executive Director of the Board of Directors and President of Wanxiang Group.
According to the 2022 financial report, there are 6 major shareholders of MYbank, including Ant Technology Group Co., Ltd., Wanxiang Sannong, Ningbo Jinrun Asset Management, Shanghai Fosun Industrial Technology Development, Hangzhou Dr. He, E-commerce, Jinzi Food, hereinafter referred to as "Jinzi Food"), and the shareholding ratios are respectively65%。
If the equity change is completed, the shareholding ratio of Wanxiang Sannong will be reduced to 1582%, but it will not change the overall shareholding ratio of "Wanxiang" in MYbank.
MYbank officially opened in June 2015 and is one of the first private banks in China approved by the former China Banking Regulatory Commission (CBRC) with an initial registered capital of RMB 4 billion. This equity change is the first time that MYbank has introduced new shareholders since its establishment.
However, between 2016 and 2019, MYbank's shareholding structure also changed twice. In 2016, Golden Ham (002515SZ) transferred its 3% stake to its wholly-owned subsidiary, Jinzi Food, in order to implement business integration. Three years later, the original six shareholders jointly invested more than 2.5 billion yuan to increase the capital and shares of MYbank, increasing its registered capital from 4 billion yuan to 657.1 billion yuan.
In this regard, some industry insiders believe that the equity transfer has not changed the actual controller of MYbank, so the overall impact is limited. At the same time, insurance companies and banks have their own advantages in terms of business models, customer groups and risk management, which can achieve resource integration and complement each other's advantages, and improve their overall competitiveness and market share.
The defect rate continues to rise
In terms of performance, MYbank is still in the development stage due to its relatively short establishment time.
From 2016 to 2022, MYbank's operating income was 263.7 billion yuan, 427.5 billion yuan, 628.4 billion yuan, 662.8 billion yuan, 861.8 billion yuan, 1390.3 billion and 156$8.6 billion; Net profit for the same period was 31.6 billion yuan, 40.4 billion yuan, 67.1 billion yuan, 125.6 billion yuan, 128.6 billion yuan, 209.2 billion and 353.8 billion yuan.
As of the end of the third quarter of 2023, MYbank's operating income was 1337.4 billion yuan, a year-on-year increase of 2030%；Net profit 273.7 billion yuan, a year-on-year increase of 007%, down from the previous year. Interest income for the same period was 1621.4 billion yuan, a year-on-year increase of 2946%；Net interest income was 1076.7 billion yuan, an increase of 39 percent year-on-year98%。
In terms of asset scale, as of the end of September 2023, MYbank's total assets were 4,8473.2 billion yuan, compared to 4410 at the end of 20228.9 billion yuan, an increase of 4364.3 billion yuan. During the same period, MYbank's total liabilities were 4,6057.2 billion yuan, and the total owner's equity was 2416.1 billion yuan, an increase from the end of the previous year.
However, as the scale continues to expand, MYbank's asset quality has not improved. From 2015 to 2022, MYbank's NPL rate increased from 018% to 194%, and the capital adequacy ratio has increased from 18.2015 in the same period51% fell to 1150%, with a further decline to 1140%。
According to the information disclosed by Yindeng Center, in 2023, MYbank transferred a total of 3 non-performing asset packages, making it the only private bank to transfer non-performing assets at Yindeng Center in 2023.
Among them, in December 2023, MYbank issued an announcement on the transfer of the right to income from non-performing assets in the third phase of Huiwei in 2023, and intends to carry out the transfer of the right to income from credit assets with Shanghai International Trust *** hereinafter referred to as "Shanghai International Trust"), with a total amount of about 419.6 billion yuan. The asset loans covered by this transfer are classified as losses at the fifth level, involving 255174 debtors, mainly distributed in Henan, Guangdong and other regions.
The types of loans mainly include loans to individual industrial and commercial households, loans to small and micro business owners, loans to micro enterprises, loans to small enterprises, and other personal business loans, involving wholesale and retail trade. Eventually, MYbank ended with 33.8 billion yuan was transferred to Shanghai International Trust, which is equivalent to Shanghai International Trust obtaining the non-performing assets package of MYbank with less than 1% of **.
In addition, in March and October 2023, MYbank transferred the "Right to Income from Non-performing Assets in the First Phase of Huiwei 2023" and "The Right to Income from Non-performing Assets in the Second Phase of Huiwei in 2023" respectively, and the five-level classification of loans includes subordinated, doubtful, and loss, and the original amount of assets is 114.3 billion yuan, 80.1 billion yuan, the transferee was Guangdong Yuecai Trust *** Shanghai International Trust, and the final actual transfer amount was 18.1 billion yuan, 07 billion yuan, which is about 1% off the original amount.
Shanghai New Century Credit Rating Investment Service*** pointed out in MYbank's 2023 credit rating report that in recent years, the rapid development of MYbank's business has driven the continuous growth of the bank's revenue scale and profitability. However, the balance of the bank's non-performing loans is on the rise, and with the rapid growth of the business and the increase in credit risk exposure, the bank's provisions have increased, which has brought certain challenges to its profitability.
The reporter sent a letter to MYbank on issues such as equity transfer, performance, and non-performing assets, but has not received a reply so far.