Luzhou Bank to seek shareholder approval for H share issue

Luzhou Bank Co., Ltd. (HKEX:1983) announced it will seek shareholder approval for a proposed non-public issue of up to 1,000,000,000 new H Shares under a specific mandate at its Annual General Meeting (AGM) on June 30, 2025. The bank aims to replenish its core tier-one capital with net proceeds estimated at HKD1,831.5 million. Alongside the share issuance, the AGM will address key resolutions including the 2024 annual report, board and supervisory reports, a profit distribution plan proposing a cash dividend of RMB1.2 per 10 shares, and the engagement of external auditors for 2025. In a significant governance change, the bank also proposes the abolishment of its board of supervisors. As of year-end 2024, Luzhou Bank reported net profits of RMB1,276 million, with a non-performing loan ratio of 1.19%. Shareholders will vote on amendments to the Articles of Association and Rules of Procedure to reflect these changes.