JINSHANG BANK (02558) plans to subscribe for 730 million yuan of Jinshang Consumer Finance's 500 million new shares, increasing its stake to 70%.

JINSHANG BANK (02558) announced on June 18, 2026, that the bank has entered into a stock subscription agreement with Jinshang Consumer Finance. Under this agreement, the bank agrees to subscribe to 500 million newly issued shares of Jinshang Consumer Finance at a price of 730 million RMB. After the capital injection, Jinshang Consumer Finance's registered capital will increase from 500 million RMB to 1 billion RMB, and the bank's shareholding in Jinshang Consumer Finance will increase from 40% to 70%. Therefore, Jinshang Consumer Finance will become a subsidiary of the bank, and its financial performance will be consolidated into the bank's financial statements. Established in February 2016, Jinshang Consumer Finance is the only institution in Shanxi Province with a national consumer finance license. In recent years, the consumer finance industry has gradually transitioned to standardized development. The total assets of the consumer finance industry have exceeded 1.7 trillion RMB, demonstrating the market potential and inherent value of consumer finance licenses. Leveraging its national business operations advantages, Jinshang Consumer Finance's business can complement the bank's current operations effectively. Specifically, the capital injection will help the bank expand its business scope and customer base, optimizing the bank's overall financial service layout and enhancing its financial service capabilities and synergistic development potential. Jinshang Consumer Finance has achieved stable growth in the past few years, with revenues of approximately 587.8 million RMB and 689.6 million RMB for the fiscal years ended December 31, 2024, and 2025 respectively. Jinshang Consumer Finance continuously improves its risk management system, strengthens its risk control capabilities, strictly adheres to compliance standards, and steadily improves its overall asset quality, laying a foundation for future development. Furthermore, the "Regulations on Consumer Finance Companies" implemented in March 2024 have raised higher compliance requirements for consumer finance companies, requiring minimum registered capital to be increased to no less than 1 billion RMB, with major shareholders holding no less than 50%. To meet these capital regulatory requirements and reserve space for future business growth, Jinshang Consumer Finance plans to increase its registered capital from 500 million RMB to 1 billion RMB. Through the subscription agreement and participation in capital injection, the bank (as the major shareholder) will increase its shareholding in Jinshang Consumer Finance to 70%. Therefore, Jinshang Consumer Finance will become a subsidiary of the bank, and its financial performance will be consolidated into the bank's financial statements.