Core Viewpoint - Postal Savings Bank of China (01658.HK) announced the absorption and merger of its wholly-owned subsidiary, China Postal Huinong Bank Co., Ltd, to optimize management and business structure [1] Group 1: Merger Details - The independent legal status of Postal Huinong Bank will be canceled after the merger, with all its business, assets, debts, and rights and obligations inherited by the parent bank [1] - Customer rights and obligations of Postal Huinong Bank will remain unaffected, and existing contracts and agreements will continue to be valid [1] Group 2: Strategic Benefits - The merger aims to further optimize the bank's management and business structure, consolidate digital transformation results, improve operational efficiency, and reduce management costs [1] - As a wholly-owned subsidiary, Postal Huinong Bank's financial statements have already been fully included in the parent bank's consolidated financial statements, meaning the merger will not impact the bank's financial condition or operating results [1] - The merger aligns with the bank's long-term strategic planning [1]

Meeting Overview - The 13th meeting of the 8th Board of Directors of Jiangsu Changshu Rural Commercial Bank was held on July 24, 2025, combining in-person and video attendance, with 11 out of 13 directors present [1] - The meeting was chaired by Chairman Xue Wen, and all supervisors attended, complying with relevant laws and regulations [1] Board Resolutions - The board approved the renaming of the "Human Resources Department" to "Party Organization Department (Human Resources Department)" to oversee cadre and human resources work, with unanimous support [2] - A proposal for external investment was unanimously approved [2] - The board agreed to merge with Yancheng Binhai Xingfu Village Bank and establish a branch, pending shareholder meeting approval [2] - The board also approved the merger with Zhenjiang Runzhou Changjiang Village Bank and the establishment of a branch, subject to shareholder meeting approval [2] - The merger with Changzhou Zhonglou Changjiang Village Bank and the establishment of a branch was also unanimously approved, pending shareholder meeting approval [2] - The board decided to disband the supervisory committee, which requires shareholder meeting approval and regulatory approval from the local financial supervision bureau [2] - Amendments to the company's articles of association were approved, pending shareholder meeting approval and regulatory approval [2] - Revisions to the rules for shareholder meetings were unanimously approved, pending regulatory approval [3] - Revisions to the rules for board meetings were also unanimously approved, pending regulatory approval [3] - Adjustments to the members of the board's specialized committees were made, with Director Xu Xuefeng moving from the Strategy and Agricultural Financial Services Committee to the Audit and Consumer Rights Protection Committee [4] - The board agreed to convene the third extraordinary general meeting of shareholders in 2025 [4]

Group 1 - Chengdu Rural Commercial Bank plans to absorb and merge six village banks, accelerating the reform of small and medium-sized village banks [1][2] - The merger will be conducted through the transformation of the six village banks into branches of Chengdu Rural Commercial Bank, with no change in the registered capital of Chengdu Rural Commercial Bank, which is 10 billion yuan [2] - After the merger, the assets, liabilities, business, branches, personnel, and other related rights and obligations of the six village banks will be inherited by Chengdu Rural Commercial Bank, ensuring that the legal rights of other creditors remain unaffected [2] Group 2 - As of the end of 2024, Chengdu Rural Commercial Bank has over 9,000 employees and operates more than 500 branches in the Chengdu area, with 80% of its branches located in county-level towns [3] - The total assets of Chengdu Rural Commercial Bank exceed 910 billion yuan, with deposits over 650 billion yuan and loans exceeding 480 billion yuan as of the end of 2024 [4]

Core Viewpoint - Guangzhou Rural Commercial Bank has announced plans to absorb and merge three village banks, which will be converted into branches of the bank, pending regulatory approval. This follows a previous attempt to merge two other village banks that did not receive unanimous shareholder support [1][2][9]. Group 1: Merger Details - The three village banks targeted for merger are Xingning Zhujiang Village Bank, Heshan Zhujiang Village Bank, and Shenzhen Pingshan Zhujiang Village Bank. Post-merger, these banks will dissolve and their assets and liabilities will be assumed by Guangzhou Rural Commercial Bank [1][2]. - The registered capital of Guangzhou Rural Commercial Bank is approximately 11.45 billion yuan, while the three village banks have registered capitals of 50 million yuan, 150 million yuan, and 300 million yuan respectively. The registered capital of Guangzhou Rural Commercial Bank will remain unchanged after the merger [2][5]. Group 2: Shareholder Voting Results - The merger proposals received 90.917% approval from shareholders, with 7.4524% voting against and 1.6306% abstaining. However, this indicates a lack of unanimous support among shareholders [2][4]. - The voting results for the merger of Shenzhen Pingshan Zhujiang Village Bank showed an approval rate of 83.3297%, with a significant abstention rate of 9.2178% [3][4]. Group 3: Financial Performance - Guangzhou Rural Commercial Bank has experienced a decline in revenue for three consecutive years, with revenue dropping to 15.83 billion yuan in 2024, a decrease of 12.79% year-on-year. Net interest income and net commission income also fell by 17.9% and 33.71% respectively [5][6]. - The bank's net profit attributable to shareholders decreased by 21.02% to 2.08 billion yuan in 2024, down from 3.49 billion yuan in 2020, marking a total reduction of 3 billion yuan over the period [5][6]. Group 4: Asset Quality - The non-performing loan ratio of Guangzhou Rural Commercial Bank improved from 2.11% in 2022 to 1.66% in 2024, while the provision coverage ratio increased to 184.34% [7][8]. - The targeted village banks have shown declining financial performance, with Heshan Zhujiang Village Bank reporting a 50.83% drop in net profit to 1.54 million yuan in 2024 [11]. Group 5: Regulatory Concerns - The targeted village banks have faced regulatory scrutiny, with instances of non-compliance and penalties reported. For example, Shenzhen Pingshan Zhujiang Village Bank was fined for violating internal control procedures [11][12]. - Previous mergers by Guangzhou Rural Commercial Bank also faced challenges, as seen in the failed merger attempts of Dongguan Huangjiang Zhujiang Village Bank and Zhongshan Dongfeng Zhujiang Village Bank, which similarly did not achieve full shareholder approval [9][10].

Group 1 - Shunde Rural Commercial Bank plans to hold its first extraordinary shareholders' meeting on May 20, 2025, to discuss the merger with Shenzhen Longhua Xinhua Village Bank [1] - The bank has already completed the merger with Foshan Gaoming Shunyin Village Bank and will review additional mergers with several other village banks in Guangdong Province [1] - All the village banks involved in these mergers are located within Guangdong Province, with the majority being initiated by Anhui Ma'anshan Rural Commercial Bank [1] Group 2 - Compared to Ma'anshan Rural Commercial Bank, Shunde Rural Commercial Bank has fewer village banks under its umbrella, currently only three [2] - Local rural commercial banks are increasingly willing to transfer shares of village banks established outside their province due to management radius and talent output factors [2] - Mergers are conducted based on thorough research, with banks merging one at a time as they mature [2] Group 3 - Merging with local rural commercial banks can enhance the governance capabilities of village banks by providing mature management systems and internal controls [2][3] - Resource optimization occurs through shared technology and branding, promoting collaborative development and enhancing market share [2][3] - Village banks can improve risk management by adopting the mature systems of rural commercial banks, leading to reduced operational risks and enhanced employee capabilities through training [3]

Core Viewpoint - Shunde Rural Commercial Bank reported a slight increase in operating income for 2024, but experienced a decline in total profit and net profit, marking a third consecutive year of profit decrease [1] Financial Performance - In 2024, the bank achieved operating income of 8.377 billion yuan, a year-on-year increase of 1.40% - Total profit amounted to 3.397 billion yuan, a decrease of 7.17% - Net profit was 3.177 billion yuan, down 7.89% year-on-year [1] - The bank maintained a dividend payout ratio of over 30%, planning to distribute 1.271 billion yuan, which is 39.99% of net profit [1] Asset and Liability Overview - As of the end of 2024, total assets reached 471.991 billion yuan, a growth of 2.20% from the previous year - Loan balance was 252.240 billion yuan, increasing by 4.29% with an addition of 10.368 billion yuan - Total liabilities were 432.910 billion yuan, up 1.90% - Deposit balance was 319.205 billion yuan, with an increase of 41.87 million yuan, reflecting a growth of 1.33% [2] Revenue Structure - Interest income accounted for 71.17% of total operating income, while non-interest income made up 28.83% - Interest income for 2024 was 5.962 billion yuan, a decrease of 11.25% compared to 2023 [2] Non-Interest Income - Net fee and commission income was 308 million yuan, down 8.56% year-on-year - Investment income rose to 2.335 billion yuan, an increase of 176.52% [3] Asset Quality - Non-performing loan balance was 4.049 billion yuan, an increase of 4.74 million yuan, with a non-performing loan ratio of 1.61%, up 0.13 percentage points - Provision coverage ratio was 174.78%, down 26.97 percentage points [3] Loan Classification - The balance of special mention loans surged to 8.069 billion yuan, a year-on-year increase of 73.29% - Special mention loans accounted for 3.20% of total loans, up 1.28 percentage points from the previous year [4] Mergers and Acquisitions - The bank plans to absorb and merge multiple village banks, with a temporary shareholders' meeting scheduled to discuss the merger of Shenzhen Longhua Xinhua Village Bank [5] - Previously, the bank completed the merger of Foshan Gaoming Shunyin Village Bank, which was converted into a branch [5] Strategic Intent - The bank aims to expand its network in the Greater Bay Area by merging village banks and converting them into branches, despite not being the main initiator for several of the banks involved in the mergers [6]