Shen Zhen Shang Bao·2025-11-05 13:01Core Insights - Zhengzhou Bank reported a revenue of 9.395 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 3.91%, and a net profit of 2.279 billion yuan, up 1.56% year-on-year. Despite this growth, the bank's stock has declined by 2% this year [1][2]. Financial Performance - In Q3 2025, Zhengzhou Bank achieved a revenue of 2.705 billion yuan, a 2.15% increase year-on-year, with a net profit of 652 million yuan, up 0.22% year-on-year [2]. - Non-interest income for the first three quarters reached 1.579 billion yuan, showing significant growth, but was heavily influenced by investment income and fair value changes, which are volatile and do not provide stable profit support [2]. - The bank's credit impairment losses rose significantly, reaching 4.359 billion yuan in Q3, an increase of 313 million yuan or 7.74% year-on-year, primarily due to increased losses from loans and advances [2][3]. Capital Adequacy - The bank's capital adequacy ratios have been declining for three consecutive years, with the core tier 1 capital ratio dropping from 9.29% at the end of 2022 to 8.76% by Q3 2025. The tier 1 capital ratio fell from 11.63% to 10.74%, and the total capital ratio decreased from 12.72% to 12.00% [3]. Shareholder Issues - Zhengzhou Bank has faced challenges with executive share reductions, judicial auctions of shares, and severe share pledges. The largest shareholder, Zhengzhou Municipal Finance Bureau, holds 657 million shares, accounting for 7.23% of total shares, with a significant portion pledged [4]. - Henan Guoyuan Trading Co., one of the top ten shareholders, has continuously reduced its holdings, selling 20.8488 million shares in 2023, 9.4066 million shares in 2024, and 88.8012 million shares in the first half of 2025, reducing its stake from 3.53% at the end of 2024 to 1.76% by the end of September 2025 [4]. Market Performance - In the Hong Kong stock market, institutional investors like Yuanta Financial Holdings and Yunnan Energy Investment Group have reduced their holdings in Zhengzhou Bank's H-shares from 11.99% to 10.81% [6]. - As of November 5, 2025, Zhengzhou Bank's A-shares closed at 2.04 yuan per share, down over 50% from their historical peak, while H-shares reached a low of 0.68 HKD, currently trading at 1.28 HKD [6].