After the close of trading on April 18, Guosen Securities (002736. SZ) issued the "Announcement on the Change of One-third of the Company's Directors" (hereinafter referred to as the "Announcement").
According to the announcement, from January 1, 2024, some directors of Guosen Securities have changed: Zheng Xueding and Li Shuangyou have resigned; the company has hired Li Jinyi as the company's independent director and Li Shishan as the company's director; Jin Li has applied for resignation as the company's independent director, and the resignation application will take effect from the date of the company's shareholders' meeting to elect the new independent director. The number of these changes represents one-third of the company's directors as of January 1, 2024.
Three directors of Guosen Securities submitted written resignation reports
Guosen Securities announced the specific situation of personnel changes.
Director Li Shuangyou submitted a written resignation report to the board of directors of Guosen Securities for personal reasons, applying for resignation as a director of the fifth board of directors of Guosen Securities and a member of the special committee of the board of directors. After his resignation, Li Shuangyou did not hold any position at Guosen Securities. Li Shuangyou's resignation will take effect on January 8, 2024.
Zheng Xueding, an independent director, submitted a written resignation report to the board of directors of Guosen Securities due to the expiration of his personal term, applying for resignation as an independent director of the fifth board of directors of Guosen Securities and a member of the special committee of the board of directors. After his resignation, Zheng Xueding did not hold any position at Guosen Securities. Zheng Xueding's resignation is effective February 1, 2024.
Independent director Jin Li submitted a written resignation report to the board of directors of Guosen Securities on April 12, 2024 due to work reasons, applying for resignation as an independent director of the fifth board of directors of Guosen Securities and a member of the special committee of the board of directors, and the resignation application will take effect from the date of election of the new independent director at the general meeting of shareholders of Guosen Securities.
Guosen Securities' net profit ranking rose two places
Replacement of senior executives in charge of investment banks
According to the annual report of Guosen Securities, in 2023, the operating income will be 17.317 billion yuan, an increase of 9.08% year-on-year, and the net profit attributable to shareholders of listed companies will be 6.427 billion yuan, an increase of 5.57% year-on-year. According to wind statistics, Guosen Securities' net profit ranking in 2023 will rise from tenth in the previous two years to eighth place.
Guosen Securities' total assets at the end of 2023 were 462.960 billion yuan, an increase of 68.629 billion yuan and 17.40% from the beginning of the year, and the total assets after excluding customer funds were 406.889 billion yuan, an increase of 71.972 billion yuan and 21.49% from the beginning of the year, including 11.886 billion yuan of monetary funds and settlement reserves, 55.882 billion yuan of financing funds, 195.984 billion yuan of trading financial assets, and 8.124 billion yuan of financial assets purchased and resold. The investment in other debt was 84.445 billion yuan and the investment in other equity instruments was 15.312 billion yuan, and the total of these seven types of assets accounted for 91.33% of the total assets (deducting customer funds).
According to Red Star News, among the five major business segments of Guosen Securities, investment banking business income declined the most, down 24.58% from 1.882 billion yuan in 2022 to 1.419 billion yuan, and the operating profit margin fell by 17.51 percentage points year-on-year. In 2023, the amount of Guosen Securities' equity lead underwriting will decrease by 11.99% year-on-year to 26.045 billion yuan, of which the scale of refinancing underwriting will increase slightly, while the scale of IPO lead underwriting will shrink from 13.965 billion yuan in 2022 to 8.998 billion yuan, a year-on-year decrease of 35.57%.
Screenshot from Guosen Securities' 2023 annual report
It is worth noting that Guosen Securities' investment banking business income has declined for two consecutive years, and the investment banking income in 2021 will be 2.066 billion yuan. Despite the great pressure on the business, the number of employees in the company's investment bank has increased year by year, with 1,001, 1,115 and 1,146 employees in 2021, 2022 and 2023 respectively, accounting for 8.34%, 9.15% and 9.53% of the number of employees in the same period.
At the same time as the annual report, there was also a news of personnel changes. On April 16, at the 26th meeting of the fifth board of directors of Guosen Securities, Chen Chuanli was removed from the positions of vice president and president of the investment banking department, and was replaced by Wu Guofang. On March 28, Wu Guofang from the "old club" Galaxy Securities (601881. SH) business director and member of the executive committee resigned.
At present, Chen Chuanli has reached the age of 60 and still serves as the secretary of the board of directors of Guosen Securities and the chairman of Guosen Securities (Hong Kong) Financial Holdings Co., Ltd. In contrast, Wu Guofang is younger and also has a background in the Securities and Futures Commission.
Screenshot from Guosen Securities' 2023 annual report
Source丨21st Century Business Herald (Yin Hualu), company announcement, Red Star News
SFC
Editor of this issue: Li Yutong and intern Li Jie