Financial news on June 9th indicates that Bank of Guizhou (HKEX: 06199) has issued an announcement today. The announcement states that, in order to implement the directives from the central authorities and the State Council regarding the reform and risk mitigation of rural banks, as well as to meet regulatory requirements, the bank, as the principal sponsor of Panzhou Wanhe Rural Bank (hereinafter referred to as "Panzhou Wanhe"), has formulated a reform plan for Panzhou Wanhe based on mutual agreement under market-oriented and rule-of-law principles. This plan has been reviewed and approved by the board of directors.

According to the plan, as the principal sponsor bank, Bank of Guizhou intends to assume the deposit-related business, including associated bank card services and branch network operations, of Panzhou Wanhe. It will also arrange for the placement of Panzhou Wanhe's employees. Panzhou Wanhe will establish a trust by entrusting all its cash and asset income rights. Bank of Guizhou will receive trust beneficiary interest shares according to this plan as consideration for assuming the deposits, which will form a creditor's right from taking over Panzhou Wanhe's deposits.

Panzhou Wanhe was established in April 2012 with a registered capital of RMB 130 million. Its primary business scope includes absorbing public deposits and granting loans. As of the announcement date, Bank of Guizhou holds 26 million shares in Panzhou Wanhe, representing a 20.00% stake.