Rich Futures was ordered to rectify due to internal control problems The controlling shareholder, Jiangxi Financial Holdings, asked it to strengthen management and improve risk control

China Net Finance and Economics, December 9 (reporter Yanshan Lukai) Recently, Ricky Futures received regulatory measures from the Jiangxi Securities Regulatory Bureau due to a number of internal control problems, ordering it to rectify the relevant problems. About a week before the Jiangxi Securities Regulatory Bureau issued the fine, the main leaders of the major shareholders of Ricky Futures Holdings had just completed their investigation.

The relevant notice shows that due to the imperfect decision-making and deliberation system of Ricky Futures, the implementation of the decision-making deliberation system is not strict, the compliance risk control is missing, the management of the external system is not in place, and the practitioners' professional behavior is not effectively restrained, and the relevant provisions of Article 56 of the Measures for the Supervision and Administration of Futures Companies are violated.

At the same time, the Jiangxi Securities Regulatory Bureau said that the above problems reflected the shortcomings in the internal control of Ricky Futures, and in accordance with Article 109 of the Measures for the Supervision and Administration of Futures Companies, it was ordered to correct the supervision and management measures. China Net Finance found that in addition to Ricky Futures, in recent months, a number of futures companies, including Hengyin Futures, Caixin Futures and Qianhai Futures, have been fined for defects in internal control, and the local securities regulatory bureaus have punished mostly based on the relevant provisions of Articles 56 and 109.

In addition, the Jiangxi Securities Regulatory Bureau also requires Ricky Futures to complete the rectification before February 16, 2022, submit a written report to it, and it will also organize inspection and acceptance. For the rectification of relevant problems after receiving regulatory requirements, as well as the impact of the regulatory measures on Ricky Futures, Ricky Futures said in an interview with China Net Finance that it will be replied by the relevant responsible personnel, and as of press time, the reporter has not received a reply from the other party.

China's financial reporter noted that the Jiangxi Securities Regulatory Bureau issued the above penalty measures on December 2, and just about a week ago, on November 25, Gan Chengjiu, deputy secretary of the party committee, vice chairman and general manager of Jiangxi Financial Holdings Group, the controlling shareholder of Ricky Futures, just went to Ricky Futures to carry out business research and research, and gained an in-depth understanding of Ricky Futures' 2021 operation work and 2022 work arrangements. It is worth mentioning that Ricky Futures said that the leaders of Jiangxi Financial Holdings Group and other people helped them coordinate to solve the difficulties and problems in development, and at the same time, they clearly required Ricky Futures to strengthen management, improve risk control and compliance systems, and strengthen team building.

According to public information, Jiangxi Rich Futures Co., Ltd. was established in 1993, the scope of business is commodity futures brokerage and financial futures brokerage; its shareholders in addition to Jiangxi Financial Holdings Group (shareholding: 60.82%), but also Shanghai New Huangpu (stock code: 600638. SH; shareholding: 20%), Jiangxi Grains and Oils Group (shareholding: 10.66%) and other seven shareholders. In September this year, Jiangxi Financial Holdings Group increased the capital of Ricky Futures by 159 million yuan and 39.7862 million yuan respectively in Shanghai New Huangpu to strengthen the capital strength of Ricky Futures; after the capital increase, the registered capital of Ricky Futures rose to 600 million yuan, and other shareholders were diluted because they did not participate in the capital increase. Some industry experts said that the above-mentioned shareholders chose to increase capital when the industry was in the expansion period, which may be due to the need to expand operations.

Ricky Futures disclosed financial data show that in 2018 and 2019, the performance of Ricky Futures declined for two consecutive years, and the fee income as the main force of its revenue fell nearly for two consecutive years; net profit was negative for two consecutive years, with losses of 615,400 yuan and 1,189,700 yuan respectively, compared with the peak of 1217.34 net profit in 2017, a decline of more than 100%. Until 2020, with the overall recovery of the futures industry, Ricky Futures gradually came out of the sharp decline in performance.

In 2020, Ricky Futures achieved revenue of 365 million yuan, although it fell by 22.67% year-on-year, but its net profit rose by 3.35 times in the same period, and achieved a turnaround, recording a net profit of 2.7983 million yuan. In the first half of this year, the performance of Ricky Futures rose again, and as of June 30, it recorded a total net profit of 5.2401 million yuan, which far exceeded the level of last year, but it was still far from the net profit of hundreds of millions of yuan compared with the industry leader.

On December 3, the Mid-term Association released statistics showing that from January to October this year, the net profit of 150 futures companies nationwide was 10.969 billion yuan, an increase of 70.09% year-on-year; the fee income was 25.379 billion yuan, an increase of 66.89% year-on-year. Based on the above data, some insiders said at the 17th China (Shenzhen) International Futures Conference that the futures industry is coming to a "big year". In the future, with the vigorous development of the industry and the gradual emergence of Ricky Futures, which has gradually come out of the decline in performance, how to use the general trend of the industry to achieve the business goals of forge ahead, pioneering and innovative, and high-quality development required by its group leaders, China's net talent economy will continue to pay attention.

(Editor-in-charge: Jin Rong)