Gansu Bank Unveils Asset Sale, Capital Boost Plan

Bank of Gansu Co., Ltd. is undertaking a substantial disposal of underperforming assets totaling approximately RMB19.719 billion (principal and interest) to Gansu Assets Management for RMB15.3 billion. The transaction, classified as a connected transaction, aims to improve the bank's asset quality and financial indicators. Proceeds will be used for general working capital, optimizing asset structure, and enhancing risk resistance.

In parallel, Bank of Gansu plans to replenish its other tier-one capital by up to RMB3.0 billion through a convertible negotiated deposit. This deposit, sourced from special local government bonds, will convert into ordinary shares if the bank's core tier-one capital adequacy ratio falls below 5.125% or non-viability trigger events occur. The conversion price will be determined based on the higher of the average H Share trading price or net assets per share, with a minimum of RMB1.00 per share.

Both proposals are subject to shareholder approval at the EGM and class meetings on September 19, 2025. Gansu State-owned Assets Investment and Department of Finance of Gansu Province (or its designated entity) will abstain from voting on the respective resolutions due to their connected interests.