Following a capital injection, Jinshang Consumer Finance Co., Ltd. (Jinshang Consumer Finance) has become a subsidiary of Jinshang Bank (02558.HK), and its financial performance will be consolidated into the bank's financial statements.

Jinshang Bank announced on June 22nd that it entered into a share subscription agreement with Jinshang Consumer Finance on June 18th. The bank plans to subscribe for 500 million new shares in the consumer finance company at a price of 1.46 yuan per share, for a total consideration of 730 million yuan. Upon completion of the capital injection, Jinshang Consumer Finance's registered capital will increase from 500 million yuan to 1 billion yuan. Jinshang Bank's shareholding will rise from 40% to 70%, making the consumer finance firm its subsidiary and leading to the consolidation of its financial results.

Meeting the New Regulatory Standards

The "Measures for the Administration of Consumer Finance Companies" implemented in April 2024 explicitly require a minimum registered capital of 1 billion yuan for such companies, with the principal contributor holding no less than 50% of the shares. Following this capital increase, Jinshang Consumer Finance will meet regulatory requirements in both registered capital and shareholding structure.

According to the announcement, per the subscription agreement, Jinshang Bank will pay the full 730 million yuan consideration in a single lump sum via telegraphic transfer within five business days of signing the agreement, using the bank's internal resources. The transaction is still subject to obtaining written approval from the Shanxi Supervision Bureau of the National Financial Regulatory Administration for the changes in registered capital and equity structure. If approval is not granted, Jinshang Consumer Finance must refund the subscription price plus interest calculated based on the Loan Prime Rate published by the National Interbank Funding Center.

Changes in Shareholding Structure

The announcement detailed the changes in equity structure. Before the capital injection, Jinshang Bank held a 40% stake in Jinshang Consumer Finance, with the remaining shares held by four independent shareholders at 25%, 20%, 8%, and 7% respectively. After the injection, these stakes will be adjusted to 70%, 12.5%, 10%, 4%, and 3.5% respectively. The announcement stated that the other shareholders and their ultimate beneficial owners are all third parties independent of Jinshang Bank and its connected persons.

Strategic Rationale and Financial Performance

Jinshang Consumer Finance was established in February 2016 and is the only institution in Shanxi Province holding a nationwide consumer finance license. Jinshang Bank stated in the announcement that this capital injection will help expand the business scope and customer base, optimizing the overall financial services layout.

According to its annual report, Jinshang Bank reported total operating income of 5.445 billion yuan for the full year 2025, with a net profit of 1.663 billion yuan and a net profit attributable to the bank's shareholders of 1.665 billion yuan. The bank disclosed unaudited financial data for the first quarter of 2026 at the end of April. As of March 31st, the bank achieved operating income of approximately 1.301 billion yuan, total profit of 497 million yuan, and a net profit of about 457 million yuan.

The announcement shows that Jinshang Consumer Finance reported operating income of approximately 689.6 million yuan for the full year 2025, with a pre-tax profit of 4.677 million yuan and a net profit of approximately 40.42 million yuan. For the first five months of 2026, the company achieved revenue of 276.5 million yuan, a pre-tax profit of 8.198 million yuan, and a net profit of 5.5 million yuan. Its net asset value as of May 31, 2026, was approximately 970.3 million yuan.