Zhejiang Shaoxing Ruifeng Rural Commercial Bank Co.,Ltd. (ASX: 601528) has once again received share purchases from its executive team. On July 31 evening, the bank announced that the National Financial Regulatory Administration's Shaoxing branch approved the appointment of Huang Fei and Sheng Lidan as vice presidents. Simultaneously, the two newly appointed executives plan to buy no fewer than 160,000 shares of the bank through centralized bidding.

Earlier, from April to June 2026, seven senior managers, including the chairman and president, spent over 12.05 million yuan on share purchases. However, by the close on July 31, the bank's stock price stood at 5.07 yuan per share, down 7.34% for the year. This performance ranked 40th among 42 A-share listed banks and was the weakest among all listed rural commercial banks.

Alongside the management reshuffle and sluggish share price, the lender is grappling with earnings pressure. In the first quarter of 2026, it posted operating revenue of 1.068 billion yuan, down 3.68% year-on-year, marking three consecutive quarters of negative growth. Net profit attributable to shareholders fell 0.5% to 422 million yuan, declining for two straight quarters.

As of end-March 2026, the bank's non-performing loan (NPL) ratio had risen to 1.09%, up 0.1 percentage points from the end of last year. This marks the first time in three years that the NPL ratio has climbed back above 1%, since the first quarter of 2023.

Two New Vice Presidents Quickly Unveil Purchase Plans

On the evening of July 31, Zhejiang Shaoxing Ruifeng Rural Commercial Bank Co.,Ltd. disclosed the regulatory approval of Huang Fei and Sheng Lidan as vice presidents. In April 2026, Executive Director and Vice President Qin Xiaojun resigned due to a job transfer, leaving the bank entirely. In May, another Executive Director and Vice President Yan Guoli stepped down due to a role adjustment but moved to serve as a party committee member and discipline inspection secretary.

Subsequently, the board appointed Luo Miaojuan, Huang Fei, and Sheng Lidan as vice presidents, with Luo also becoming the chief financial officer. President and Chief Compliance Officer Chen Gangliang no longer holds the CFO role concurrently. Among the two newly approved vice presidents, Huang Fei previously worked at Xiaoshan Rural Commercial Bank for many years, bringing extensive human resources experience. Sheng Lidan has spent her career within Zhejiang Shaoxing Ruifeng Rural Commercial Bank Co.,Ltd., serving as general manager of the retail finance department and corporate finance department.

Notably, the two new vice presidents wasted no time in announcing share purchases. On the same evening, the bank revealed that Huang Fei and Sheng Lidan plan to buy at least 160,000 A-shares via centralized bidding within three months from the announcement date, with no price range set. Huang Fei currently holds no shares, while Sheng Lidan owns 16,600 shares, representing 0.0008% of the total.

In April 2026, the bank had launched a collective executive purchase plan involving Chairman Wu Zhihui, President Chen Gangliang, then-Vice President Yan Guoli, then-Discipline Commission Secretary Luo Miaojuan, Vice President Ning Yiran, Board Secretary Zhang Guojiang, Employee Director Zhang Hongfeng, and heads of headquarters departments and branches. They planned to buy at least 2.47 million shares within three months. By June 22, the purchasers had acquired 2.50039 million shares for a total of 12.0591 million yuan, completing the plan. Seven executives, including Wu, Chen, Yan, Luo, Ning, Zhang, and Zhang, collectively bought 470,030 shares worth 2.2724 million yuan. The department and branch heads purchased 2.03036 million shares worth 9.7867 million yuan.

First-Quarter Earnings Slip as Investment Income Drops 70%

The executive buying spree is closely tied to the bank's weak stock price. As early as March 2025, Zhejiang Shaoxing Ruifeng Rural Commercial Bank Co.,Ltd. had formulated a "2025 Valuation Enhancement Plan." However, because the stock's closing price remained below the audited net asset value per share attributable to ordinary shareholders for 12 consecutive trading days, the bank revised and strengthened its "Valuation Enhancement Plan and 'Improve Quality, Increase Efficiency, and Emphasize Returns' Action Plan" in March 2026. This plan encourages management to buy shares and guides major shareholders to either hold or increase their stakes, signaling confidence in the bank's sustainable development and long-term value.

According to Flush data, as of July 31, the stock closed at 5.07 yuan, down 7.34% year-to-date. Its year-to-date gain ranked 40th among 42 A-share listed banks and was the lowest among all listed rural commercial lenders. With the entire banking sector trading below book value, the bank's price-to-book ratio stands at just 0.49 times.

Headquartered in Keqiao District, Shaoxing, a region known for its active manufacturing and vibrant private economy, the bank has expanded into Yuecheng, Yiwu, Binhai, and Shengzhou, building a strong retail foundation. In 2025, it posted operating revenue of 4.408 billion yuan, up 0.53%, and net profit of 1.966 billion yuan, up 2.3%. However, on a quarterly basis, revenue fell 4.41% to 1.098 billion yuan in Q3 2025 and slipped 1.06% to 1.052 billion yuan in Q4 2025.

In Q1 2026, revenue dropped 3.68% to 1.068 billion yuan, marking three consecutive quarters of negative growth. Net profit fell 0.5% to 422 million yuan, declining for two straight quarters. Excluding non-recurring items, net profit was 420 million yuan, down 1.92%. Investment income was a key drag, plunging 72.7% to 113 million yuan in Q1 2026. Meanwhile, net interest income rose 12.57% to 879 million yuan, and fee and commission income increased 29.43% to 21.707 million yuan. The net interest margin improved 0.04 percentage points to 1.5%.

As of end-March 2026, total assets reached 253.186 billion yuan, up 4.84% from end-2025, while total loans stood at 145.657 billion yuan, up 3.15%. The NPL ratio rose to 1.09%, up 0.1 percentage points from end-2025. While this is the first time since Q1 2023 that the ratio has exceeded 1%, it remains relatively healthy compared to industry peers. The provision coverage ratio fell 28.82 percentage points to 297.69%.

Multiple analysts suggest that the rising NPL ratio may be linked to ongoing risk exposure in the bank's small and micro business segment. At the end of 2025, the personal loan NPL ratio was 1.99%, up 0.23 percentage points from the end of 2024.