Bank of Jiujiang announced on the evening of February 10 that it has received a Letter of Intent from Industrial Bank regarding the subscription to its private placement. The letter indicates that Industrial Bank intends to subscribe to the bank's domestic shares, with the total subscription amount not exceeding its current shareholding percentage of the total funds actually raised in this private placement.

The funds raised from this issuance will primarily be used to supplement the bank's Core Tier 1 capital. As of the end of the first half of 2025, the bank's Core Tier 1 capital adequacy ratio was 8.62%, a decrease of 0.82 percentage points from the 9.44% recorded at the end of 2024.

In addition to Industrial Bank's agreement to subscribe, the Jiujiang Municipal Finance Bureau has also expressed its intention to subscribe to domestic shares with a total value not exceeding RMB 500 million.

Regarding the support from these two major shareholders, Bank of Jiujiang stated that it reflects their positive outlook on the bank's future and their support for its long-term development. This move is conducive to optimizing the bank's capital structure and enhancing the core competitiveness of its main business.

On the evening of February 10, 2026, Bank of Jiujiang publicly disclosed Industrial Bank's Letter of Intent and announced its plan to convene the first extraordinary general meeting of 2026 on February 28 to review proposals, including the non-public issuance of shares.

Special resolution proposals include reviewing and approving the proposal for a special authorization non-public issuance of domestic shares and H-shares. This involves details such as the type and par value of the shares to be issued, the number of shares, and the target subscribers. The meeting will also review and approve the proposal to amend the company's registered capital following the completion of this issuance.

This capital increase initiative originated from an announcement made by Bank of Jiujiang on October 31, 2025. At that time, the bank's board of directors announced a plan to issue up to 860 million domestic shares and up to 175 million H-shares to qualified subscribers.

The domestic shares have a par value of RMB 1 per share. The bank stated that the actual number of shares issued will be determined based on approvals from relevant regulatory authorities, market conditions, and the bank's specific circumstances. The H-shares also have a par value of RMB 1 per share, and the number of H-shares to be issued will be determined with reference to the actual number of domestic shares issued.

Subsequently, on January 23 of this year, Bank of Jiujiang announced that the Jiujiang Municipal Finance Bureau intends to subscribe to domestic shares with a total value not exceeding RMB 500 million. This amount would not exceed the Bureau's direct shareholding ratio in the bank as of the date of the letter of intent, which is approximately 12.85%. Industrial Bank's intended subscription amount would not exceed 10.34% of the total funds actually raised in this issuance.

The Jiujiang Municipal Finance Bureau and Industrial Bank, which have agreed to participate in the private placement, are the bank's largest and third-largest shareholders of domestic shares, respectively.

According to the 2025 interim report, the top five shareholders of the bank's domestic shares are the Jiujiang Municipal Finance Bureau, Beijing Automotive Group Co., Ltd., Industrial Bank Co., Ltd., Fangda Carbon New Material Co., Ltd., and Foshan Gaoming Jindun Hengye Computer Special Printing Co., Ltd. Their respective shareholding ratios are 12.85%, 12.85%, 10.34%, 4.78%, and 3.37%.

"The net proceeds from this issuance, after deducting related issuance expenses, will be entirely used to supplement the bank's Core Tier 1 capital," stated Bank of Jiujiang. The capital increase is primarily aimed at effectively replenishing Core Tier 1 capital, substantially enhancing risk resilience, and optimizing the equity structure.

As of the end of June 2025, Bank of Jiujiang's Core Tier 1 capital adequacy ratio was 8.62%, down 0.82 percentage points from 9.44% at the end of 2024. Its Tier 1 capital adequacy ratio was 11.15%, down from 11.97% at the end of 2024. Its total capital adequacy ratio was 11.18%, a decrease of 1.99 percentage points from 13.17% at the end of 2024. In the first half of 2025, the bank reported a net profit of RMB 379 million and operating revenue of RMB 5.343 billion.

Bank of Jiujiang, formerly known as Jiujiang City Commercial Bank, was established on November 18, 2000. It was listed on the Main Board of the Hong Kong Stock Exchange on July 10, 2018. It was the second prefecture-level city commercial bank in China, the first in the central region, and the first in Jiangxi Province to be listed on the Main Board of the Exchange.

Bank of Jiujiang stated that the intended subscription by these major shareholders demonstrates their confidence in the bank's future prospects and their support for its long-term development. This is beneficial for optimizing the bank's capital structure, strengthening the core competitiveness of its main business, and creating greater value for shareholders.