Nanshen, a rural commercial bank from Anhui, finally failed after waiting for more than five years. On the evening of January 10, the Shanghai Stock Exchange ** updated that due to the withdrawal of the application for issuance and listing of Bozhou Yaodu Rural Commercial Bank (hereinafter referred to as "Yaodu Bank") and its sponsor Huatai**, the Shanghai Stock Exchange terminated its issuance and listing review in accordance with relevant regulations. 
Among the four provinces and cities in Shanghai, Jiangsu, Zhejiang and Anhui in the Yangtze River Delta region, Anhui is the only province that does not have a listed bank. As early as March 2018, Yaodu Bank's listing application was accepted by the China Securities Regulatory Commission, but it has been queuing for nearly five years to no avail. After the full registration system, the bank was transferred to the Shanghai Stock Exchange for review in March 2023, but after the listing application was accepted, the review was stalled again, and it did not enter the inquiry stage until this withdrawal. At present, the projects of banks in the meeting to be IPO, similar to Yaodu Bank, are relatively common, and they have been in a state of stagnation since the translation in March last year. Among them, the Shanghai Stock Exchange will have Hubei Bank, Haian Bank, Kunshan Bank, and the Shenzhen Stock Exchange will have Ma'anshan Bank, Bank of Guangzhou, Shunde Bank, Nanhai Bank and Bank of Dongguan. Subsequently, it is worth paying attention to whether more banks will withdraw their IPO applications. Increase revenue but not profitThe defect rate is rising rapidlyYaodu Bank is located in Bozhou, Anhui Province, which is known as the "Chinese Pharmaceutical Capital", and is known as "Bozhou people's own bank". As of the end of June 2022, excluding the market share of the five large national banks in the Bozhou region, among the small and medium-sized banks in the Bozhou region, the bank's deposit balance accounted for 227%, ranking second in the market, with a market share of 2611%, ranking first in the market. The bank has strong market competitiveness in Bozhou. During the reporting period, the bank mainly provided banking services to corporate and individual customers in Bozhou. In terms of revenue, its business income mainly comes from net credit-related interest income. 
In terms of growth, the operating income of Yaodu Bank during the reporting period (2019, 2020, 2021, and the first six months of 2022) was 173.3 billion yuan, 204.9 billion yuan, 22$7.8 billion and $10$4.3 billion; The corresponding net profit for each period was 51.1 billion yuan, 40.4 billion yuan, 4$7.6 billion and $27.7 billion yuan. 
It is not difficult to find that from the perspective of revenue, Yaodu Bank has maintained a growth trend, but its net profit has fluctuated. This may not be unrelated to the bank's non-performing loan ratio continuing to rise. According to the prospectus, as of December 31, 2019, December 31, 2020, December 31, 2021, and June 30, 2022, the bank's non-performing loan balances were 32.7 billion yuan, 59.7 billion yuan, 96.6 billion yuan and 1.1 billion yuan; The non-performing loan ratios are: 34%。
Obviously, the bank's NPL balance and NPL ratio are in a state of rapid growth, and the NPL rate has more than doubled in less than four years. As for the future trend, Yaodu Bank admitted in the prospectus that "although the bank's non-performing loan ratio meets the regulatory requirements, it may increase in the future due to the deterioration of the quality of the loan portfolio". There is no actual controllerThe fundraising is intended to replenish the capitalAnother major risk point of Yaodu Bank is that it does not have an actual controller. In the prospectus, the bank stated that "the shareholding structure of the Bank is relatively dispersed, and there are no legal persons, natural persons or other organizations that can control the majority of the voting rights of the board of directors of the Bank according to the proportion of equity, articles of association or agreement, so there is no controlling shareholder or actual controller of the Bank". In the March 2018 version of the prospectus, Yaodu Bank disclosed that it had a total of 2,277 shareholders as of February 28, 2018. In the March 2023 version of the prospectus, Yaodu Bank did not disclose the specific number of shareholders, but from the perspective of shareholding structure, the highly dispersed situation has not changed much. Among them, the shareholders holding more than 5% of the bank's shares are Jian'an Group, Gujing Group and SenseTime Capital, and the shareholding ratios are only respectively. 58%。
The highly dispersed shareholding structure greatly increases the probability that shareholders' equity is pledged or even frozen by the judiciary, bringing new variables to the bank's equity structure. According to the prospectus, as of June 30, 2022, a total of 45 shareholders have pledged their shares in the bank, involving 19.9 billion shares, accounting for 19 percent of the total share capital56%。At the same time, as of June 30, 2022, the shares held by 5 shareholders were frozen by the judicial authorities, involving 57 shares740,000 shares, representing 006%。In addition, there are other restrictions on the shares held by 18 shareholders, accounting for 075%。In this listing, Yaodu Bank plans to raise 163.7 billion yuan. According to the "Proposal on the Use of Funds Raised by Public Offering**" deliberated and approved by the Bank's 2016 Annual General Meeting of Shareholders, all the funds raised by the Bank's initial public offering ** will be used to replenish the capital after deducting the issuance expenses. Judging from the prospectus, the capital adequacy of Yaodu Bank decreased during the reporting period, from 1128%, down to 10. at the end of the reporting period (end of June 2022).98%。In addition, the bank's provision coverage ratio declined rapidly, from 280% at the beginning of the reporting period to 171 at the end of the reporting period41%, which is close to the lower limit of regulatory requirements. 
Edit: Captain's Review: Muyu.