Jiutai Rural Commercial Bank has once again postponed the release of its financial report.

On the evening of August 19, Jiutai RCB (06122.HK) announced that due to the bank's need for more time to collect and organize required materials and documents for auditors to complete the audit procedures for 2024 annual performance, the 2024 annual performance and 2024 annual report will be further delayed. Consequently, the bank will also delay the publication of its 2025 interim results and 2025 interim report. The specific release timing requires further confirmation with auditors and will be announced separately.

On the same day, Jiutai RCB issued a profit warning, expecting a net loss of approximately 898 million yuan for the first half of this year. The primary reason cited was the group's strengthened forward-looking and refined risk management assessment in response to changes in the external market environment.

Regarding this matter, Jiutai RCB stated in its announcement that the aforementioned performance has not been reviewed by the bank's independent auditors or the board's audit committee, and may be subject to adjustments upon further review. The actual interim performance may differ from the content disclosed in this announcement.

Jiutai RCB's predecessor was Jiutai City Rural Credit Cooperative Union, which was formally restructured into Northeast China's first rural commercial bank in December 2008. On January 12, 2017, Jiutai RCB successfully listed on the Hong Kong Stock Exchange, becoming the second rural commercial bank nationwide to list in Hong Kong after Chongqing Rural Commercial Bank. As of the end of September 2024, the bank's total assets amounted to 262.078 billion yuan.

**Plans for Hong Kong Stock Delisting**

Since 9:00 AM on March 12 this year, Jiutai RCB has been suspended from trading on the Hong Kong Stock Exchange, with the suspension lasting five months to date. The bank's closing price on the last trading day before suspension was HK$0.41 per share, with a total market value of approximately HK$2.1 billion.

Shortly after the suspension, Jiutai RCB announced it would delay the publication of its 2024 annual performance report. The reasons given at the time were the large number of loan and deposit customers requiring lengthy confirmation procedures, with the response rate not yet meeting auditors' review requirements, and the need for more time to organize impairment provision basis for some loans.

Due to the inability to release the performance report on time, on April 25, Jiutai RCB announced on the China Money Network that both the 2024 annual report and Q1 2025 information disclosure report would be postponed.

Notably, the bank had mentioned in its suspension progress announcement on April 17 that it was involved in a restructuring transaction, which surfaced three months later.

On July 3, the bank announced that China International Capital Corporation would represent Jilin Financial Holding Group Co., Ltd. (Jilin Financial Holding) in making a voluntary conditional general cash offer for all issued H shares, with an H share offer price of HK$0.7 per share and domestic share offer price of 0.63 yuan per share.

Jiutai RCB currently has 966.5 million H shares and 4.108 billion domestic shares. If all relevant shares are successfully acquired, Jilin Financial Holding would spend approximately 3.206 billion yuan. After the H share offer becomes unconditional (including shareholder approval of delisting at an extraordinary general meeting and independent H share shareholder approval at an H share class meeting), Jiutai RCB will apply for delisting according to listing rules.

If Jiutai RCB successfully delists, it will become another mainland bank to delist after Jinzhou Bank. Notably, both Jinzhou Bank and Jiutai RCB are from Northeast China.

It appears that Jiutai RCB's delisting path may be similar to Jinzhou Bank's. On January 20, 2023, at 9:00 AM, Jinzhou Bank's H shares were officially suspended, with the pre-suspension price at HK$1.38 per share.

On January 26, 2024, Jinzhou Bank announced that its second-largest shareholder, Liaoning Financial Holding Group Co., Ltd., would make a takeover offer for all issued H shares and domestic shares. Upon completion of the acquisition, Jinzhou Bank would delist.

In April 2024, Jinzhou Bank announced it had applied to the Hong Kong Stock Exchange for delisting, which was approved. The bank's H shares' last trading day was April 9, 2024, and it officially withdrew its listing status from the Hong Kong Stock Exchange at 4:00 PM on April 15.

**Performance Shift from Profit to Loss**

Although the 2024 annual report has not been published, the bank issued a profit warning stating an estimated net loss of 17-19 billion yuan for 2024. The main reasons cited were proactive implementation of fee reduction and profit concession measures to support the real economy and reduce customer financing costs, leading to decreased interest income compared to the same period last year. Additionally, affected by the external economic environment, some industries and customers continued to face pressure, and through implementing stricter prudent asset risk classification and fully assessing credit asset risk conditions, the bank correspondingly increased provision allocation to enhance risk resistance capabilities.

In terms of performance, from 2018 to 2022, Jiutai RCB achieved revenues of 5.038 billion yuan, 5.311 billion yuan, 5.547 billion yuan, 6.362 billion yuan, and 6.597 billion yuan respectively, maintaining continuous growth. Net profits attributable to shareholders for the same periods were 983 million yuan, 1.042 billion yuan, 1.104 billion yuan, 1.129 billion yuan, and 1.683 billion yuan respectively.

Until 2023, the bank delivered its worst performance since listing, achieving annual operating revenue of 5.514 billion yuan and net profit attributable to shareholders of 168 million yuan, declining 16.41% and 90.00% year-on-year respectively. The dramatic drop in net profit was due to a significant increase in asset impairment losses, rising from 1.361 billion yuan in 2022 to 2.11 billion yuan.

In the first three quarters of 2024, Jiutai RCB recorded a net loss of 85.7986 million yuan, marking its first loss. For the full year 2024, the estimated net loss is between 1.7-1.9 billion yuan.

On the other hand, Jiutai RCB's non-performing loan ratio has also been increasing. From 2020 to 2023, its non-performing loan ratios were 1.63%, 1.88%, 1.98%, and 2.34% respectively. By the end of June last year, the bank's non-performing loan ratio had reached 2.44%, with non-performing loan scale at 4.42 billion yuan, an increase of 246 million yuan compared to the same period the previous year.

Beyond rising non-performing loan ratios, Jiutai RCB's capital adequacy levels have also come under pressure. As of the end of Q3 2024, on a consolidated basis, Jiutai RCB's total capital adequacy ratio dropped to 11.13%, Tier 1 capital adequacy ratio at 8.69%, and core Tier 1 capital adequacy ratio at 8.59%. However, on a parent bank basis (excluding subsidiaries), its Tier 1 capital adequacy ratio was only 8.05%, falling below the regulatory minimum of 8.5%.

Additionally, Jiutai RCB's stock price has been persistently weak. On its listing debut on January 12, 2017, the bank's stock price closed at HK$4.87 per share, up 6.8% from the issue price. Since November last year, the bank's stock price has continued declining, falling below HK$1 per share and touching a low of HK$0.33 per share. Before suspension, the bank's stock price was HK$0.41 per share.

**Northeast Region Listed Banks Overview**

Excluding the delisted Jinzhou Bank, the three northeastern provinces currently have only three listed commercial banks: Shengjing Bank, Harbin Bank, and Jiutai RCB, all listed on the Hong Kong stock market.

Previously, Northeast China had witnessed the spectacular scene of three city commercial banks queuing for A-share listings simultaneously. In March 2012, when the CSRC released its first batch of IPO application companies for that year, Shengjing Bank, Dalian Bank, and Jinzhou Bank were all on the list, attempting to break into A-shares.

In 2013, Dalian Bank's A-share listing was "terminated for review," becoming the first to exit the A-share listing competition queue, as its self-inspection materials could not be submitted within the final deadline, making it the only bank to terminate its listing at that time.

Subsequently, after years of unsuccessful A-share IPO attempts, Shengjing Bank made the decision to "abandon A-shares for H-shares" and achieved breakthrough in the Hong Kong stock market. With Jinzhou Bank switching its listing venue to Hong Kong stocks in 2015, the original Northeast three-province city commercial bank queue in the A-share market "completely withdrew."

By taking the Hong Kong stock shortcut, Harbin Bank, which had always remained outside the A-share bank IPO queue, managed to overtake Shengjing Bank, which had the highest listing expectations, and listed on the Hong Kong Stock Exchange main board in March 2014, becoming the first listed bank in Northeast China.

In 2024, Harbin Bank achieved operating revenue of 14.243 billion yuan, up 7.56% year-on-year, and net profit of 1.082 billion yuan, up 21.88% year-on-year. As of the end of 2024, the bank's total assets amounted to 916.232 billion yuan.

From a stock price perspective, since first falling below HK$1 per share to become a "penny stock" in September 2020, Harbin Bank's stock price has consistently hovered around HK$1 per share. After May 2021, it continued declining, reaching a low of HK$0.24 per share. As of the close on August 20, the bank's stock price was HK$0.43 per share.

Another bank, Shengjing Bank, is the earliest established and largest headquarters bank in Northeast China. Its predecessor was Shenyang City Commercial Bank, renamed Shengjing Bank after completing restructuring in 2007. In December 2014, Shengjing Bank listed on the Hong Kong Stock Exchange with an issue price of HK$7.56 per share.

In 2024, Shengjing Bank achieved operating revenue of 8.577 billion yuan, down 14.57% year-on-year, and net profit attributable to shareholders of 621 million yuan, down 15.21% year-on-year. As of the end of 2024, Shengjing Bank's total asset scale reached 1.12 trillion yuan, up 4% year-on-year. On August 29, 2025, Shengjing Bank will hold a board meeting to review the bank's 2025 interim results.

In recent years, Shengjing Bank's stock price has continued declining. Since September 2023, Shengjing Bank's stock price began sliding from nearly HK$6 per share. In December 2023, the bank's stock price fell below HK$1 per share and has since hovered around HK$1 per share.

On August 14 this year, Shengjing Bank announced that H share trading would be suspended on the Hong Kong Stock Exchange from 9:00 AM on August 15, 2025. This suspension was at the company's request to publish announcements constituting inside information under the Hong Kong Code on Takeovers and Mergers. Before suspension, Shengjing Bank closed at HK$1.14 per share.

In fact, for most small and medium-sized bank stocks listed in Hong Kong, light trading is the norm, with some even frequently showing zero transactions. For example, Weihai Bank, Yibin Bank, and Luzhou Bank all had zero trading volume on August 22.

Regarding the reasons for weak Hong Kong bank stock prices, Fragrant Harbor Capital executive Shen Meng explained that mainland banks lack sufficient business and performance high-growth potential, mostly belonging to stable development categories that won't drive stock price increases in secondary markets. Therefore, most investors seeking price volatility returns are unwilling to invest, with only those seeking stable dividends showing interest in bank stocks.

Notably, some banks in Northeast China, although not listed, have shown commendable performance. For example, Bank of Jilin has maintained relatively stable performance in recent years. From 2022 to 2024, the bank achieved operating revenues of 9.926 billion yuan, 12.463 billion yuan, and 13.645 billion yuan respectively, and net profits of 1.540 billion yuan, 1.889 billion yuan, and 1.415 billion yuan respectively. As of the end of Q1 2025, the bank's total assets surpassed the 800 billion yuan mark, reaching 801.217 billion yuan.