LUZHOU BANK is set to hold its first interim shareholders' meeting of 2025. The agenda includes reviewing and approving the election of Wang Jie as a non-executive director and Qiu Wei as an independent non-executive director for the eighth board of directors.

However, more attention is drawn to the bank's deliberation on a restructuring plan for a specific credit customer. Between 2016 and 2019, the bank provided three financing facilities to three companies under the same group. Due to economic downturn, the parent company of these borrowers faced operational difficulties starting in 2020, significantly reducing repayment capacity. Consequently, all three loans were classified as non-performing in December 2024 and August 2025.

As of the latest practicable date, the group's outstanding principal with LUZHOU BANK totals 818 million yuan, with accrued interest of 144 million yuan. Recently, a state-owned enterprise has proposed acquiring certain assets of the group, involving asset restructuring. To facilitate the acquisition and improve the disposal efficiency of non-performing assets while mitigating risks, the bank will exercise its right to decide on the restructuring plan for the 818 million yuan principal and associated interest and other benefits (if any).

Notably, LUZHOU BANK's asset quality requires improvement. By the first half of 2025, the bank's total non-performing loans reached 1.384 billion yuan, an increase of 156 million yuan from the end of the previous year. The non-performing loan ratio stood at 1.18%, down 0.01 percentage points year-on-year.

Sector-wise, the bank's corporate non-performing loans are mainly concentrated in real estate, leasing and business services, and construction, accounting for 88.10% of total corporate non-performing loans. The real estate sector alone has a non-performing loan ratio as high as 4.94%.

In terms of overdue loans, LUZHOU BANK reported 1.788 billion yuan in overdue loans as of H1 2025, up 238 million yuan from year-end 2024. The overdue loan ratio rose to 1.53%, a 0.03 percentage point increase.

Beyond asset quality concerns, President You Jiang also faces profitability challenges. In H1 2025, the bank's operating income fell 14.57% year-on-year to 2.423 billion yuan, marking its first revenue decline in recent years. Non-interest net income dropped sharply by 51.24% to 526 million yuan. Meanwhile, operating expenses increased by 7.82% to 968 million yuan, with personnel costs rising 7.76% to 478 million yuan.

Additionally, the bank's retail banking business showed signs of contraction, with pre-tax profits declining 7.69% year-on-year to 108 million yuan in H1 2025.

As of June 2025, LUZHOU BANK's total assets grew 12.43% to 192.254 billion yuan, with total loans increasing 13.13% to 116.829 billion yuan. Corporate loans rose 15.78% to 103.784 billion yuan, while personal loans decreased 4.37% to 12.845 billion yuan, accounting for 10.92% of total customer loans, down 2 percentage points from year-end 2024.