ZHAOJIN MINING's financial company transferred 68.712 million H shares of WEIHAI BANK to SPIC

Zhitong
2024.10.25 08:54

ZHAOJIN MINING announced that the financial company will transfer 68.712 million H shares of WEIHAI BANK to SPIC for HKD 181 million, accounting for approximately 1.15% of its issued share capital. This move complies with the regulations of the China Banking and Insurance Regulatory Commission, which requires the clearance of non-fixed income securities investments by December 31, 2024. The transaction has no impact on the company's consolidated financial statements, and the price is lower than the market price, which the board of directors believes is in the overall interest

According to the announcement released by Zhaojin Mining (01818) on the Zhitong Finance and Economics App, on October 25, 2024, Spaco entered into a share transfer agreement with a financial company, whereby the financial company agreed to transfer the target shares to Spaco for a consideration of HKD 181 million. The target shares consist of 68.712 million H shares of Weihai Bank (09677), representing approximately 1.15% of the total issued share capital of Weihai Bank. The original cost of the financial company's acquisition of the target shares was approximately HKD 222 million.

In accordance with the provisions of the "Notice of the General Office of the China Banking and Insurance Regulatory Commission on Further Improving the Implementation of the Management Measures for Financial Companies of Enterprise Groups" (CBIRC Office [2023] No. 34) issued by the General Office of the China Banking and Insurance Regulatory Commission, enterprise group financial companies, including financial companies, are required to liquidate their non-fixed income securities investments by December 31, 2024. Therefore, the financial company should sell all its equity in Weihai Bank (i.e., the target shares) within the aforementioned deadline (the prescribed sale). The contracting parties noted the limited liquidity of Weihai Bank's H shares and considered the transaction to be the most effective way to complete the prescribed sale.

Both our company and Spaco have taken note of the operational and financial conditions of Weihai Bank, as well as its historical dividend record. Weihai Bank is a city commercial bank in Shandong Province with prominent regional advantages and a well-established network layout. From an accounting perspective, both before and after the completion of the transaction, the target shares will be accounted for as equity investments measured at fair value through other comprehensive income within the Group. The transaction is an internal transaction within the Group and will have no impact on the comprehensive income or financial statements of our company. Furthermore, the consideration for the transaction is at a discount to the market price of Weihai Bank's H shares as reported on the HKEX, and the Board of Directors believes that this is in the overall interest of our company and shareholders

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