Jinshang Bank Co., Ltd. (Jinshang Bank) has signed a Share Subscription Agreement to inject RMB730.00 million into Jinshang Consumer Finance Co., Ltd. (Jinshang Xiaojin). The funds will be used to acquire 500.00 million newly issued shares of Jinshang Xiaojin at RMB1.46 per share.

Upon completion, Jinshang Xiaojin’s registered capital will double from RMB500.00 million to RMB1.00 billion, lifting Jinshang Bank’s equity interest from 40% to 70%. The consumer-finance company will then be consolidated as a subsidiary in the bank’s financial statements.

The RMB730.00 million consideration was set after arm’s-length negotiations and references an independent valuation of Jinshang Xiaojin’s total shareholders’ equity at RMB731.00 million as of 31 May 2026. The valuation primarily relied on a market approach using an adjusted price-to-book (P/B) multiple of 0.7529 derived from three comparable consumer-finance capital raises—Ningyin Xiaojin (0.9955), Jincheng Xiaojin (0.4327) and Kaiji Xiaojin (0.8306). An income approach yielded RMB737.00 million; however, the market approach result was deemed more representative of fair value.

Financially, Jinshang Xiaojin reported revenue of RMB587.77 million and net profit of RMB65.55 million in 2024, followed by revenue of RMB689.64 million and net profit of RMB40.42 million in 2025. For the five months ended 31 May 2026, revenue reached RMB276.53 million with net profit of RMB5.50 million. Net assets stood at approximately RMB970.30 million as of 31 May 2026.

Strategically, the transaction positions Jinshang Bank to broaden its consumer-finance footprint and comply with the revised Administrative Measures for Consumer Finance Companies (effective March 2024), which mandate a minimum registered capital of RMB1.00 billion and a majority shareholder stake of at least 50%. Jinshang Xiaojin is currently the sole holder of a nationwide consumer-finance licence in Shanxi Province, and its integration is expected to enhance the bank’s retail capabilities and risk-management synergies.

Under Hong Kong Listing Rules, the transaction qualifies as a discloseable transaction, as the applicable percentage ratios exceed 5% but are below 25%. Payment for the subscription will be funded through Jinshang Bank’s internal resources and is expected within five days of agreement execution, subject to regulatory approval from the Shanxi Supervision Bureau of the National Financial Regulatory Administration.