China Zheshang Bank injects nearly 1bn yuan into leasing unit

On September 1, 2025, China Zheshang Bank (CZBANK) entered into a capital increase and subscription agreement with Zheyin Financial Leasing. Under the agreement, Zheyin Financial Leasing will issue 700m new shares at a subscription price of 1.9875 yuan per share. CZBANK will subscribe for 500m of these new shares, totaling 993.75m yuan. Zhoushan Marine Investment, another shareholder of Zheyin Financial Leasing, will subscribe for the remaining 200m shares at the same price.

This transaction will increase CZBANK's stake in Zheyin Financial Leasing from 51.00% to an expected 54.04%, ensuring it remains a controlled subsidiary. The capital increase aims to replenish Zheyin Financial Leasing's core capital, enhance its capital adequacy ratio, and support sustainable business development. It is also expected to improve CZBANK's return on capital and strategic synergies.

The subscription price was determined based on Zheyin Financial Leasing's evaluated net asset value per share as of the end of 2024. The agreement is subject to approval by regulatory authorities. This transaction constitutes a connected transaction for CZBANK under Chapter 14A of the listing rules, requiring reporting and announcement but exempt from independent shareholder approval.