On April 7, Harbin Investment Co., Ltd. announced that its shareholder, Heilongjiang Dazheng Investment Group Co., Ltd. (hereinafter referred to as Dazheng Group), intends to reduce its holdings by 20,805,700 shares, not exceeding 1% of the company's total share capital. According to the announcement, since September 2020, Dazheng Group has reduced its holdings of Harbin Investment twice, with a total of 205 million yuan.
There are two other brokerage stocks that have been (proposed) reduced recently. City Power reduced its stake in Capital Securities by 2.5418% and cashed out 1.180 billion yuan. China Cinda threw out the third round of shareholding reduction plan of the other party's Zheng Securities, and the number of shares to be reduced does not exceed 1% of the total share capital.
Taizheng Group started the third round of reduction
Dazheng Group is a wholly-owned subsidiary of Heilongjiang Financial Holding Group, with a registered capital of 3.86 billion yuan as of the end of 2021. At present, Taizheng Group directly holds or holds shares in 37 enterprises, covering banking, securities, funds, real estate, education, high-tech industries and other fields.
According to the announcement of Harbin Investment Co., Ltd., as of April 3, 2024, Dazheng Group held a total of 215 million shares of the company, accounting for 10.31% of the company's total share capital, all of which are unrestricted tradable shares. Within three months after fifteen trading days from the date of the announcement of the shareholding reduction plan, Taizheng Group plans to reduce its holdings of no more than 20,805,700 shares, or no more than 1% of the total share capital, through centralized bidding transactions on the stock exchange.
The reason for Taizheng Group's proposed reduction is its own business needs, and this is not the first time it has thrown out a shareholding reduction plan. In 2016, Dazheng Group participated in the major asset restructuring of Harbin Investment Co., Ltd. with all the shares of Jianghai Securities held by it, and became the second largest shareholder of Harbin Investment Co., Ltd. after the completion of the transaction. Since then, Taisho Group has made two reductions.
From September 23, 2020 to March 21, 2021, Dazheng Group reduced its stake in Harbin Investment Co., Ltd. by 0.78%. In August 2023, Harbin Investment Co., Ltd. disclosed that Dazheng Group intends to reduce its holdings by no more than 41,611,400 shares, no more than 2% of the company's total share capital. However, by the expiration of the time period for reducing holdings on March 1, 2024, Dazheng Group has reduced its holdings of 12.0861 million shares of the company, accounting for only 0.58% of the company's total share capital.
According to previous announcements, when reducing its holdings of Harbin Investment for the first time, Dazheng Group cashed out a total of 127 million yuan. The total amount of the second reduction was 78 million yuan, and the total amount of the two reductions was 205 million yuan. According to the latest closing price of Harbin Investment Co., Ltd. of 5.25 yuan per share, Dazheng Group's upcoming shareholding reduction plan can cash out about 109 million yuan.
Harbin Investment Co., Ltd. will turn losses into profits in 2023
Similar to Taizheng Group, Harbin Investment Co., Ltd. is also a local state-owned enterprise, which operates as a dual main business of thermal power and securities. Among them, the securities business is mainly carried out through Jianghai Securities, which accounted for less than 50% of the total revenue of Harbin Investment in the last two reporting periods. In 2022, Harbin Investment Co., Ltd. will achieve a total revenue of 2.562 billion yuan and a net profit loss attributable to the parent company of 974 million yuan. Among them, Jianghai Securities lost 887 million yuan.
In 2023, the performance of Harbin Investment Co., Ltd. will usher in a turnaround. According to the performance forecast, according to the preliminary calculation of the financial department, Harbin Investment Co., Ltd. is expected to achieve a net profit of 192 million yuan attributable to the parent company in 2023, which will turn losses into profits compared with the same period last year (statutory disclosure data). Talking about the reasons, Harbin Investment Co., Ltd. said that first, the main business income of the thermal power business increased due to the increase in heating subsidies and the increase in wholesale heat, and second, the fair value change loss of financial assets in the securities business was greatly reduced due to market fluctuations.
According to the unaudited financial statements of Jianghai Securities in 2023 disclosed by Harbin Investment Co., Ltd. at the same time, the operating income was 801 million yuan, an increase of 1.155 billion yuan over the same period of the previous year, and the net profit was 173 million yuan, turning losses into profits.
In terms of business lines, the net fee income of Jianghai Securities' brokerage, investment banking and asset management businesses all declined, but the proprietary business "recovered" significantly. In 2023, Jianghai Securities' proprietary business will achieve a revenue of 371 million yuan, compared with a loss of 712 million yuan in the same period last year.
Founder Securities and Capital Securities were also reduced by shareholders
Generally speaking, after the shareholder reduction plan is sold, it will bring certain pressure to the stock price of the listed company. After the announcement of the shareholding reduction plan of Harbin Investment Co., Ltd., some investors commented in the stock bar that they "didn't expect it".
In addition, the Chinese reporter of the brokerage also noticed that China CITIC Financial Assets (i.e., China Huarong) had increased its stake in Harbin Investment at the end of 2023. CITIC Financial Assets is the third largest shareholder of Harbin Investment Co., Ltd. According to the relevant announcement, CITIC Financial Assets is committed to purchase 28.92 million shares (about 1.39% shares) of Harbin Investment Co., Ltd. according to business needs. The commitment transaction was completed on December 20, 2023, at a total cost of 167 million yuan.
From the perspective of the entire industry, not only Harbin Investment shares, but also two brokerage stocks have been reduced by shareholders recently.
According to the announcement of Founder Securities on April 3, China Cinda plans to reduce its holdings of the company's shares by no more than 82.321 million shares, accounting for about 1.00% of the company's total share capital. This is also the third time that China Cinda has thrown out a shareholding reduction plan after becoming a shareholder of Founder Securities.
In September 2021, China Cinda was approved to acquire 710 million shares held by Zhengquan Holdings, becoming the third largest shareholder of Founder Securities. On November 4, 2022, Founder Securities disclosed China Cinda's shareholding reduction plan, but did not implement the shareholding reduction plan until the expiration of the shareholding reduction period. On July 31, 2023, China Cinda once again threw out a shareholding reduction plan, planning to reduce its holdings of the company's shares by no more than 165 million shares, accounting for about 2% of the total share capital. However, as of the expiration of the shareholding reduction period, China Cinda only reduced its stake by 1%, with a reduction amount of 784 million yuan.
If the third round of shareholding reduction plan is completed, China Cinda's stake in Founder Securities will drop to 6.62%.
Capital Securities disclosed the results of the shareholding reduction of its shareholder City Power on April 2. As of the disclosure date of the announcement, City Power has cumulatively reduced its holdings of 27.33 million shares of Capital Securities through bidding transactions and 42.145 million shares through block trading. City Power reduced its holdings by a total of 69.475 million shares, accounting for 2.5418% of the total share capital of Capital Securities, and cashed out a total of 1.180 billion yuan.
Compared with the previously disclosed shareholding reduction plan, City Power has completed about 84.74% of the shareholding reduction plan. At present, City Power also holds 81.905 million shares of Capital Securities, accounting for 2.9965% of the company's total share capital, and is still the fourth largest shareholder.
Editor-in-charge: Tactical Heng
Proofreader: Li Lingfeng