Core Viewpoint - Weihai Bank has announced a plan to issue H-shares to Tianlian Group to raise up to RMB 493.5 million, aimed at replenishing its core Tier 1 capital [1][13]. Group 1: H-share Issuance Details - On December 21, Weihai Bank signed a subscription agreement with Tianlian Group to issue no more than 150 million H-shares at a price of RMB 3.29 per share, representing a premium of approximately 17.97% over the latest closing price of HKD 3.06 [1][13]. - The total amount to be raised from this issuance is capped at RMB 493.5 million [1][13]. - This follows an earlier announcement on July 31, where Weihai Bank planned to issue up to 758 million domestic shares and 154 million H-shares, aiming to raise a total of up to RMB 3 billion for core Tier 1 capital replenishment [3][15]. Group 2: Shareholder Participation - The major shareholder, Shandong Highway Group, has also committed to subscribing to the domestic shares at the same price of RMB 3.29 per share, with a total investment of up to RMB 348 million [3][15]. - Shandong Highway Group and its subsidiaries held a combined 47.16% stake in Weihai Bank prior to this issuance [3][15]. Group 3: Capital Adequacy Concerns - As of the end of Q3, Weihai Bank's core Tier 1 capital adequacy ratio has dropped to 8.02%, nearing the regulatory minimum of 7.50% [9][20]. - The bank's capital adequacy ratio has decreased by 129 basis points from 9.31% at the end of the previous year, indicating a trend of declining capital levels since 2018 [9][20]. - The rapid expansion of the bank's assets, from RMB 224.6 billion in 2019 to RMB 483.8 billion in mid-2023, has not been matched by a proportional increase in net profit, which has only grown from RMB 1.44 billion to RMB 1.99 billion over the same period [11][22]. Group 4: Future Outlook - The bank's current situation necessitates external financing as a means to address its capital adequacy issues, while also needing to enhance profitability to support sustainable growth [11][22].
津联集团溢价约18%加注！威海银行飞奔扩表后、再迎国资“补血”