The new “boss” qualification has just been approved, and Langfang Bank welcomes local state-owned assets to increase its holdings and become the largest shareholder.

Blue Whale News, February 12 (Reporter Jin Lei)Recently, a reply issued by the Hebei Financial Supervision Bureau of the State Financial Supervision and Administration Administration shows that Langfang Bank’s application for equity change has been officially approved by the Hebei Financial Supervision Bureau. Langfang City Investment Holding Group Co., Ltd.(hereinafter referred to as Langfang Holdings) will be transferred to Hebei Daqing Road Bridge Engineering Co., Ltd., 201 million shares held by Shahe City Xinhuitong Real Estate Development Co., Ltd. and 142 million shares held by Dachang Hui Autonomous County Runze Trading Co., Ltd.

After the completion of this equity change, Langfang Holdings will hold a total of 1.153 billion shares of Langfang Bank, increasing its shareholding ratio to 19.99%. After the completion of this equity change, Langfang Holdings will hold a total of 1.153 billion shares of Langfang Bank, increasing its shareholding ratio to 19.99%.

On January 28, Langfang Holdings issued the “Proposal on Matters Related to the Acquisition of Equity in Langfang Bank”, and the relevant equity transfer procedures were successfully completed on January 27, 2025. Langfang Holdings announced at that time that this acquisition is an important measure for Langfang Holdings to focus on its future development strategy. It combines government, enterprise and banking to better serve urban construction, corporate growth and people’s livelihood and well-being, and promotes high-quality development in Langfang. Contribution by state-owned enterprises.

According to public information, Langfang Bank was established in 2000, formerly known as Langfang City Commercial Bank. In 2008, it changed its name and completed its capital increase, with a registered capital of 375 million yuan. In the past few years, the equity structure of Langfang Bank has undergone major changes.

In 2015, Huaxia Happiness participated in the capital increase and share expansion, becoming the bank’s largest shareholder with a shareholding ratio of 19.99%. In 2019, Huaxia Happiness continued to subscribe for fixed increase in Langfang Bank and maintained its original shareholding ratio.

However, starting from 2021, as Huaxia Happiness fell into debt difficulties, it began to dispose of its shares in Langfang Bank, while Langfang State-owned Assets continued to increase its holdings in Langfang Bank. As of the end of 2023, the shareholding ratio of Huaxia Happiness and its related parties dropped to 6.74%, making it the fifth largest shareholder.

On the other hand, Langfang Bank’s performance in recent years has shown a straight decline. Financial report data shows that from 2021 to 2023, Langfang Bank achieved operating income of 5.255 billion yuan, 5.08 billion yuan, and 4.683 billion yuan respectively, of which net interest income was 4.562 billion yuan, 4.657 billion yuan, and 4.306 billion yuan; net profit was 1.438 billion yuan, 819 million yuan, and 589 million yuan.

In the first three quarters of 2024, Langfang Bank achieved operating income of 2.751 billion yuan and net profit of 313 million yuan, a year-on-year decrease of 27.5% and 64.2% respectively. During the reporting period, the amount of credit impairment losses accrued by Langfang Bank reached 1.236 billion yuan, accounting for 372.72% of the bank’s total profit for the current period.

In fact, against the background of the reform and insurance of small and medium-sized financial institutions, it is not just Langfang Bank, but also the assistance of local state-owned assets to local urban commercial banks has become a phenomenon. State-owned assets in many places have taken intensive actions to help local urban commercial banks through increased holdings and holding shares. Commercial banks, including Baoding Bank, Tai ‘an Bank, Linshang Bank, Yantai Bank, Laishang Bank, etc.

Blue Whale News noticed that Langfang Bank has recently welcomed a new head. On January 7, the Hebei Supervision Bureau of the State Financial Supervision and Administration approved that Cui Jiantao had been approved as a director and chairman of Langfang Bank. Previously, Cui Jiantao served as Party Secretary and President of Bank of China Langfang Branch. How the new head of Langfang Bank will lead Langfang Bank out of its predicament in the future is also highly expected by the market.