Northern Trust's capital has been approved for an increase to Rmb2.344bn.

【Lead-in】North Trust Capital Increase and Share Expansion Land, Actual Control Person Not Changed

On February 12, North International Trust Co., Ltd. (hereinafter referred to as North Trust) announced that the regulatory approval was granted to increase its registered capital from RMB2.002 billion to RMB2.344 billion.

Capital Increase and Share Expansion Officially Implemented

According to the announcement of North Trust, the Company's capital increase and share expansion and adjustment of equity structure were approved by the 2024 first temporary shareholders' meeting and reported to the Tianjin Regulatory Bureau of the National Financial Supervision and Administration.

At the same time, according to the "Tianjin Financial Regulatory Bureau's Approval on the Change of North International Trust Co., Ltd.'s Registered Capital and Change of Equity", the Company's registered capital was increased from RMB2.002 billion to RMB2.344 billion, and Tianjin Bohai Chemical Industry Group Co., Ltd. became the Company's first shareholder through capital increase and equity transfer.

This capital increase and share expansion and adjustment of equity structure does not involve a change in the Company's actual controller, and the articles of association have been modified accordingly. As of now, the Company's capital increase and share expansion and adjustment of equity structure have completed the market subject change registration.

It is reported that North Trust's capital increase amounted to RMB340 million, and its net owner's equity increased by RMB1 billion to RMB6.957 billion. At the same time, Tianjin Bohai Chemical Industry Group Co., Ltd., a state-owned enterprise under the jurisdiction of Tianjin, and China Chengtong Holdings Co., Ltd., a wholly-owned subsidiary of China Chengtong Holdings Group Co., Ltd., a central enterprise, became new shareholders through capital increase and equity transfer.

First Capital Increase in 2024

According to public information, North Trust was originally Tianjin Economic and Technological Development Zone Trust Investment Co., Ltd., which was approved by the People's Bank of China Tianjin Branch in October 1987, with a registered capital of RMB20 million. It is a state-controlled mixed-owned enterprise co-established by large state-owned enterprises, listed companies and private enterprises.

Regarding this capital increase and share expansion, North Trust said that it would take this opportunity to further play the role of the only state-owned trust company in Tianjin around the goal of "building a 'table, specialized, strong and excellent' regional trust company".

In recent years, the transformation and development of the trust industry has entered a crucial stage, especially under the new business classification guidelines, strengthening its own capital strength is very important for the transformation and development of trust companies.

Shuai Guoruan, a researcher of Usetrust, said that capital increase can improve the capital level of trust companies, cope with the pressure of transformation, optimize the business structure of the Company, and meet the requirements of the regulatory authorities for strengthening the risk prevention and disposal capabilities of trust companies.

However, the number of trust companies that have increased their capital has decreased since 2024. According to a rough calculation, only Shanxi Trust and Dongguan Trust were approved to increase their capital last year, while 12 trust companies were approved to increase their capital in 2023.