Dongguan Bank plans to acquire village and town banks across provinces, pursuing IPOs, cross-border, and cross-province multi-pronged strategies

Questioning AI · Why is Anhui the first choice for Dongguan Bank’s cross-province integration?

After completing the integration of its village and township banks within Guangdong Province, Dongguan Bank is extending its reform efforts outside the province. Recently, Dongguan Bank issued a notice that it will hold the 2025 annual shareholders’ meeting on April 17, 2026, to review 21 proposals, including the acquisition and establishment of Zongyang Taiye Village and Township Bank and the restructuring of branches. In 2024-2025, Dongguan Bank has completed the integration of three village and township banks within Guangdong Province. This announcement of absorbing and merging Zongyang Taiye Village and Township Bank marks the official launch of its reform to integrate village and township banks outside the province. Noticing that revenue and net profit have been declining consecutively, Dongguan Bank is demonstrating a multi-pronged approach involving IPO, cross-province, and cross-border expansion.

Planning cross-province acquisition of village banks, having previously merged three provincial village banks

The Zongyang Taiye Village and Township Bank planned for acquisition and restructuring is one of three village banks outside the province initiated by Dongguan Bank. Public information shows that Zongyang Taiye Village and Township Bank was established in March 2011, with its registered location in Zongyang County, Tongling City, Anhui Province. Dongguan Bank holds an 84.55% stake, and Zongyang County State-owned Capital Investment Operation Co., Ltd. holds 10%.

From operational data, as of the end of June 2025, Zongyang Taiye Village and Township Bank had total assets of 661 million yuan, net assets of 55.19 million yuan, and achieved revenues of 4.34 million yuan and net profits of 580k yuan in the first half of 2025. Although its profit scale is modest, the bank has turned profitable in recent years. According to corporate warning data, in 2016, Zongyang Taiye Village and Township Bank suffered a loss of nearly 22 million yuan.

Source: Company Announcement

Outside Guangdong Province, Dongguan Bank also holds stakes in two other village banks. These include Chongqing Kaizhou Taiye Village and Township Bank, in which it owns 63.1%; and in 2025, through acquiring shares from multiple shareholders of Guangxi Lingshan Taiye Village and Township Bank, it has increased its holdings to 40 million shares, raising its stake from 30% to 80%, making this village bank a controlled subsidiary.

In recent years, Dongguan Bank has accelerated the integration of its village and township banks. In 2024-2025, it completed the absorption and merger of its village banks within Guangdong Province, including Dongguan Houjie Huaye Village and Township Bank, Dongguan Changan Village and Township Bank, and Yuanyuan Taiye Village and Township Bank, all of which have established branches and officially opened.

It is noteworthy that Dongguan Bank has already opened a branch in Hefei, Anhui Province. Choosing Zongyang Taiye Village and Township Bank, also in Anhui, as the first step in external village bank integration may help reduce the difficulty of the process.

Performance pressure, with IPO, cross-border, and cross-province expansion happening simultaneously

Public information shows that Dongguan Bank was established in September 1999. It has branches in Guangzhou, Shenzhen, Huizhou, Foshan, Qingyuan, Shaoguan, Zhuhai, Zhongshan, Heyuan, Nansha Free Trade Zone in Guangzhou, Changsha in Hunan Province, Hefei in Anhui Province, and Hong Kong SAR.

As of the third quarter of 2025, Dongguan Bank’s total assets reached 580k yuan, a year-on-year increase of 3.85%, significantly slower than the 6.97% growth at the end of 2024. In the first three quarters of 2025, the bank achieved revenue of 681.27B yuan, down 9.39% year-on-year; and net profit of 6.92B yuan, down 20.66%, continuing the trend of declining revenue and net profit since 2024. As of the end of June 2025, the non-performing loan ratio was 1.08%, rebounding from 1.01% at the end of 2024.

While facing performance pressures, Dongguan Bank’s IPO journey has also been lengthy. The bank first applied for listing in 2008, but in 2014, the review was terminated by the China Securities Regulatory Commission (CSRC) due to incomplete pre-disclosure materials. After restarting the IPO application in 2019, the review process repeatedly stalled due to “expired financial data,” cycling between “suspension” and “resumption.” By the end of December 2025, the IPO review status was changed from “suspended” back to “accepted,” returning to the queue for listing.

In addition to integrating provincial and external village banks and advancing IPO plans, Dongguan Bank is also continuously expanding in cross-border finance. According to regulatory approval, the bank has invested in establishing a Hong Kong subsidiary. On October 31, 2024, Dongguan Bank (International) Limited received a banking license from the Hong Kong Monetary Authority; it officially opened on August 11, 2025. This makes Dongguan Bank the first city commercial bank nationwide to establish both a subsidiary and a branch in Hong Kong.

However, cross-regional operations also carry potential risks. The bank’s prospectus warns that due to limited understanding of the economic and cultural environment outside Dongguan, whether its management capabilities and experience can meet the demands of cross-regional business expansion remains to be tested in practice.

From internal village bank integration to cross-province acquisitions, from opening a Hong Kong subsidiary to restarting the IPO marathon, Dongguan Bank is advancing on multiple fronts. Whether it can maintain stability amid expansion and achieve breakthroughs amid challenges remains to be seen by the market.

Reported by: Huang Shunwei, Nandu · Wan Cai She