A total of 121 million shares (approximately 1.33% of total equity) of Bank of Zhengzhou will be auctioned in early December via Alibaba's judicial auction platform, with a starting price of RMB 1.83 per share, totaling RMB 221 million.

The shares are held by Henan Guoyuan Trading Co., Ltd., one of the bank’s top ten shareholders. The company previously participated in Bank of Zhengzhou’s capital increases in 2011 and 2020, purchasing 195 million shares at RMB 2.72 per share and 100 million shares at RMB 4.64 per share, respectively, with a total investment of RMB 994.4 million—far exceeding the current auction price.

As of October 29, Bank of Zhengzhou’s closing price was RMB 2.02 per share.

**121 Million Shares Under Judicial Auction** The 121 million shares held by Henan Guoyuan Trading are post-IPO restricted shares, set to be released on November 27, 2025, and are currently under a freeze order.

The first auction, starting December 4, involves 90.2 million shares with a starting price of RMB 165.066 million and a deposit requirement of RMB 30 million. The second auction, starting December 11, covers 30.8 million shares at RMB 56.364 million, with a RMB 10 million deposit.

The combined starting price for both auctions is RMB 221.43 million, or RMB 1.83 per share. As of October 29, no bidders had registered, with only a few setting reminders and over a hundred views recorded.

Bidders must comply with regulatory requirements, including a cap on cumulative holdings (no more than 30% of the bank’s issued shares).

**Declining Stake of Henan Guoyuan Trading** As of October 2024, Henan Guoyuan Trading holds 3.21% of Bank of Zhengzhou’s shares. The company has been reducing its stake since 2023, cutting holdings from 4.24% to 3.63% in 2023, then to 3.53% in 2024, and further to 2.55% by mid-2025.

**Historical Participation in Capital Raises** Henan Guoyuan Trading, established in 2005 with RMB 200 million in registered capital, is controlled by Zhu Zhihui, who has served as a shareholder supervisor since June 2015.

Bank of Zhengzhou, founded in 1996, became the first city commercial bank listed on both the Hong Kong Stock Exchange (2015) and Shenzhen Stock Exchange (2018).

In 2011, Henan Guoyuan Trading invested RMB 530.4 million to acquire 195 million shares at RMB 2.72 per share. By 2020, it spent another RMB 464 million to buy 100 million shares at RMB 4.64 per share in a private placement.

**Management Changes and Performance Challenges** Bank of Zhengzhou underwent significant leadership changes in recent years. Former Chairman Wang Tianyu resigned in March 2023 amid corruption allegations. Zhao Fei, who joined in 2022, succeeded as chairman in July 2023.

In November 2024, Li Hong, former deputy head of Postal Savings Bank of China’s Beijing branch, was appointed as the new president.

The bank faced criticism for suspending dividends from 2020 onward but resumed payouts in 2024, distributing RMB 0.02 per share (RMB 18.2 million total) with a payout ratio of 9.69%.

In 2024, Bank of Zhengzhou reported RMB 12.877 billion in revenue (down 5.78% YoY) and RMB 1.876 billion in net profit (up 1.39% YoY), marking its first profit growth in three years. No interim dividend was declared for 2025.