Bank Of Guiyang Faces Shareholder Opposition Over Village Bank Acquisition

Deep News11-28

Several days ago, Bank Of Guiyang Co.,Ltd. held its third extraordinary general meeting of shareholders in 2025 at its headquarters, attended by 674 shareholders and proxies. The meeting, chaired by Chairman Zhang Zhenghai, saw eight out of ten directors present, with Zhou Yejun and Zhang Qingfen absent due to official duties.

Two key proposals—electing Bai Xue and Dong Qun as directors—passed with over 95% approval. However, the bank’s leadership stability remains uncertain. Director Yu Rui resigned on November 10 after failing to secure regulatory approval for his role, echoing a similar case in July when Director Liang Cheng stepped down under comparable circumstances.

Market attention, however, focused on the contentious proposal to acquire Xifeng Development Village Bank as a subsidiary. Nearly 27.23% of votes, primarily from minority shareholders, opposed the move.

Xifeng Development Village Bank, in which Bank Of Guiyang holds a 37.4% stake, reported a net loss of RMB 3.32 million in H1 2025, with total assets of RMB 422 million. The acquisition’s limited scale benefits and potential drag on profitability raised concerns. Notably, two of the three village banks under Bank Of Guiyang’s portfolio are loss-making.

The bank’s financial performance has been shaky, with consecutive declines in revenue (-13.73% YoY) and net profit (-1.39% YoY) for the first three quarters of 2025. Its net interest margin also narrowed to 1.6%, down 0.2 percentage points year-on-year.

Despite maintaining its position as Guizhou’s largest financial institution, with total assets reaching RMB 746.59 billion, the bank faces rising non-performing loan ratios (1.63%, up 0.05 percentage points from 2024).

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