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Hengfeng Bank’s first annual report after two years of interruption, bad, shareholders, internal control, etc.

Hengfeng Bank’s first annual report after two years of interruption, bad, shareholders, internal control, etc.
Recently, Shandong-based Hengfeng Bank Co., Ltd. (hereinafter referred to as “Hengfeng Bank”) finally released its 2019 annual report (hereinafter referred to as “annual report”) in 2017 and after two years of interruption in 2018.According to its disclosure, at the end of 2018, Hengfeng Bank’s non-performing loan scale exceeded 150 billion yuan, and the provision coverage ratio was only 54.70%.In terms of restructuring, the AMC of the Lu nationality with assets of nearly US $ 80 billion has become its second largest shareholder.The fourth largest shareholder introduced was granted a credit line of more than 6 billion yuan by Hengfeng Bank.Regarding the disclosure of the annual report, on June 9, 2019, the Banking and Insurance Regulatory Commission ‘s news report explained in response to a reporter ‘s question, “Hengfeng Bank has not disclosed the annual report due to factors such as investigation and reorganization of the case.”On April 29 this year, Hengfeng Bank announced its long-lost annual report on the official website.The official website shows that Hengfeng Bank is one of 12 national joint-stock commercial banks. Its predecessor was Yantai Housing Savings Bank, which was approved and established by the State Council in 1987.Approved at the beginning of 2003, it was restructured and renamed Hengfeng Bank Co., Ltd.In terms of scale, as of the end of 2019, Hengfeng Bank has established first-level (direct) branches in 13 provinces (cities), with a total of 340 branches, including 16 first-level branches, 2 direct branches of the head office, and 32 second-level branches.Grade branches, 261 sub-branches and 29 branches.At the same time, Hengfeng Bank has initiated the establishment of 5 village banks in 4 provinces and cities, namely Zhejiang Tonglu Hengfeng Village Bank Co., Ltd., Sichuan Guangan Hengfeng Village Bank Co., Ltd., and Jiangsu Yangzhong Hengfeng Village Bank Co., Ltd.,Chongqing Jiangbei Hengfeng Village Bank Co., Ltd. and Chongqing Yunyang Hengfeng Village Bank Co., Ltd.At the end of 2018, the scale of non-performing loans exceeded 150 billion, and the provision coverage ratio was only 54.The 70% annual report shows that the total assets of Hengfeng Bank showed a downward trend compared with before the reorganization.As of the end of 2019, Hengfeng Bank’s total assets were 1.03 trillion yuan, the data for the same period last year was 1.05 trillion.According to the “Hengfeng Bank 2017 Tracking Rating Report” released by Lianhe Credit Rating Co., Ltd. on July 27, 2017, the assets of Hengfeng Bank merged into 1 at the end of 2015.07 trillion yuan, reaching 1 in 2016.21 trillion yuan.In this regard, Hengfeng Bank stated in its annual report that during the reporting year, the Bank took the initiative to reduce complex non-compliant non-standard businesses and comprehensively cleaned up false deposits and loans.From the financial indicators, in 2019, Hengfeng Bank achieved revenue of 137.6.3 billion, down by 14 every year.17%; Achieved a net profit of 5.99 ‰, an increase of 4 per year.36%.For the year-long decline in revenue, Hengfeng Bank explained that it was “affected by the transfer of non-performing assets.”In fact, after market-based mass transfer and clearance, and bad write-offs, changes in asset quality have become the most prominent feature in Hengfeng Bank ‘s annual report.As of the end of 2019, Hengfeng Bank’s non-performing loan scale was 149.6.6 billion yuan, compared with 1,635 in the same period last year.6.1 billion, a decrease of 1485.95 ppm; NPL ratio is 3 at the end of 2019.38%, compared with 28 in the same period last year.44%, a decrease of 25.06 foreign countries.At the same time, Hengfeng Bank’s provision coverage ratio rose to 120.83%, and the data was only 54 at the end of 2018.70%.In the annual report, according to the introduction of Chairman Chen Ying and President Wang Xifeng, Hengfeng Bank has taken “greater retailing” as its strategic main direction. Through multi-channel collaboration and external cooperation, it has accelerated the promotion of online mass customer acquisition capabilitiesAnt Financial, JD Finance, etc. have established cooperative relations.The annual report shows that Hengfeng Bank’s personal consumption loan balance in 2019 was 140.7.3 billion yuan, an increase of 193% over the beginning of the year.In addition to asset quality, the equity of Hengfeng Bank, changes in shareholders and internal control, and the disputed situation also attracted much attention.AMC with nearly 80 billion assets has become its second largest shareholder, and the fourth largest shareholder has a credit limit of more than 6 billion. Wang Xifeng said in the annual report, “In 2018-2019, Hengfeng Bank experienced a rebirth and the transformation of Phoenix Nirvana.Successfully completed the two major tasks of removing defects and introducing combat investment.”The annual report disclosed that Hengfeng Bank transferred 100 billion US dollars of investor funds through non-public issuance of common stock; of which, Central Huijin Investment Co., Ltd. 60 billion US dollars;”) Gold tube” 36 billion yuan; Singapore UOB Bank Limited, Nanshan Group Co., Ltd. (hereinafter referred to as “Nanshan Group”), Fuxin Group Co., Ltd. and other 4 billion yuan.After the capital increase and share expansion, the total share capital increased to approximately 111.2 billion yuan.Central Huijin Investment Co., Ltd., Shandong Jinguan and Nanshan Group have also become the top ten shareholders of Hengfeng Bank after restructuring.Hengfeng Bank’s top ten shareholders after restructuring (according to Hengfeng Bank’s 2019 annual report) The reporter saw that Shandong Jintong is the second largest shareholder of Hengfeng Bank after restructuring and is also the two largest licensed place in ShandongOne of AMC.At the end of the annual report period, Shandong Gold Management’s shareholding in Hengfeng Bank was 32.37%.According to the annual report, Shandong Gold Management was established in December 2014 with registered capital and paid-in capital of 366.3.9 billion US dollars, and Hengfeng Bank are registered in Jinan City, Shandong Province.The business scope of Shandong Gold Management mainly includes “outbound investment”, “management, investment and disposal of non-performing assets” and other businesses.The official website shows that as of the end of 2018, the assets of Shandong Gold Management amounted to nearly 80 billion yuan, and various operating indicators performed well, managing various private equity funds including corporate restructuring and development funds, real estate restructuring funds, and financial asset investment funds.As for the fourth largest shareholder, Nanshan Group, Hengfeng Bank mainly disclosed relevant content related to major related party transactions.The annual report shows that the sixth interim meeting of the board of directors of Hengfeng Bank in 2019 passed the conclusion of the “Lanshan Group Co., Ltd. Credit Major Related Transaction”, agreed to cooperate with Nanshan Group in credit business, and granted Nanshan Group a credit line of US $ 64 billionyuan.After the new shareholders complete the capital injection, Hengfeng Bank believes that its “capital strength has improved significantly”.At the end of the annual report period, the core Tier 1 capital adequacy ratio and Tier 1 capital adequacy ratio were reset9.68%, compared with the negative value at the end of 2018, both increased by 23.32 total; leverage reduced by 5.60%, also rose by 14.98 averages.2019 is considered to be over 10 million, 3.The annual report on bribery of senior executives behind the 2.8 billion bad “disposal plan” shows that Hengfeng Bank has gradually replaced the financial regulators by 31 times due to the untimely change of credit information users of individual branches, with a fine of 1151.040,000 yuan, the amount of regulatory confiscation decreased by 42 compared with the previous year.33%.At the same time, Hengfeng Bank said that it will seriously study violations of disciplines and liabilities of non-performing assets, strengthen case early warning education, and gradually cultivate a good integration of non-violations, daring to violate regulations, and unwillingness to violate regulations.In fact, “internal control” and “disposal of non-performing assets” and other related violations have become the focus of Hengfeng Bank’s reorganization and the focus of the supervision system of the China Insurance Regulatory Commission.On April 3 this year, at the press conference of the State Council Office, Zhou Liang, vice chairman of the China Banking and Insurance Regulatory Commission, talked about the development model of small and medium-sized banks and “named” Hengfeng Bank during corporate governance.According to Zhou Liang, because of the suspected crimes committed by the two previous chairman, Evergrande Bank had a small amount of bad assets.The regulatory authorities have also taken decisive measures to deal with this.According to the reporter’s incomplete statistics, in the past three years, from 2017 to April 22, 2020 (based on the time when the fines were issued), Hengfeng Bank received a total of 49 fines for institutions targeted by the China Banking Regulatory Commission, with a total amount of 2.01 billion.Among them, there were 9 fines directly related to “internal control” and “disposal of non-performing assets”.Hengfeng Bank’s total amount of fines related to “internal control” from 2017 to April 22, 2020 is 1.7.2 billion.Among them, on December 29, 2017, Hengfeng Bank was opened by the China Banking Regulatory Commission due to violations such as “serious loopholes in internal control management”, “some executives violated regulations to work part-time in other economic organizations”, and “unrealistic transfer of decentralized branch bad credit assets”The total amount of money for a ticket is 1.6.7 billion “Skyward Tickets”.On April 22, Hengfeng Bank was fined again for “internal control”.Penglai Sub-branch of Hengfeng Bank was fined RMB 500,000 by Yantai Banking and Insurance Supervision Bureau because of “serious violation of prudent business rules due to insufficient internal control management”.Last time together 3.In the disclosure of the 2.8 billion undesirable “solution plan” case, the bribery of the former replacement of the executives of Hengfeng Bank Beijing Branch behind the violations also surfaced.On January 8, the official website of the Beijing Banking and Insurance Regulatory Bureau issued a news.The content of the news is only one sentence-“Recently, Liu Zhiyong, member of the Party Committee of Beijing Banking and Insurance Regulatory Bureau, and Deputy Director Liu Zhiyong met with the president of Hengfeng Bank Beijing Branch Zhuang Baotai and his party, accompanied by relevant personnel of the stock office.””.9 days ago, on December 30, 2019, the Zhucheng People’s Court of Shandong Province held a trial regarding the original president of Hengfeng Bank Beijing Branch Qiu Ye, the former general manager of the company’s business development department II, Zhu Weixin, “issued a financial ticket in violation of regulations.”, Bribery” in the first-instance criminal case.On February 18 this year, the China Judges Document Network disclosed the entire court record.The defendant Qiu Ye was sentenced to 7 years in prison and fined 300,000 yuan; the defendant Zhu Weixin was sentenced to 8 years in prison according to law.The amount of bribes paid by the two defendants behind the case was converted into RMB totaling nearly 3 million (for details, see the “Thirty-two Billion Tickets” issued by Sauna Yewang on April 24, 2020.?”).Regarding Hengfeng Bank’s internal control issues, according to Wang Xifeng’s introduction in the annual report, Hengfeng Bank formulated the “Three-level Plan for the Construction of Internal Control Compliance System”, which aims to modify, effectively manage, and operate an efficient internal control compliance system.Hengfeng Bank carried out work to rectify market chaos, established a sound rectification and sales number mechanism, and hoped to completely clear the problem of empty idle increase.At the same time, Hengfeng Bank also seized the key minority, severely violated regulations and accountability, and played a deterrent effect on accountability.Establish an internal control compliance assessment system that covers the entire organization, all departments, and all positions, and guide all employees to establish an active compliance awareness.Sauna, Ye Wang Huang Xinyu Editor Li Weijia Proofreading Li Xiangling