China-Singapore Jingwei, April 26 -- On April 26, Industrial Securities released its 2023 annual report and 2024 first quarter report. It is worth noting that some shareholders disclosed that they would liquidate and reduce their holdings.
Net profit in the first quarter fell by more than 60%.
According to the announcement, in the first quarter of 2024, the operating income of Industrial Securities was about 2.377 billion yuan, a year-on-year decrease of 42.99%, and the net profit attributable to shareholders of listed companies was about 328 million yuan, a year-on-year decrease of 60.38%. The company said that mainly due to the slowdown in the pace of IPO issuance, the performance of the main indexes in the A-share market was not as good as that of the same period last year, and the trading activity was not good, resulting in a year-on-year decline in net operating income in a single quarter due to the decrease in net income from fees and commissions, investment income, etc.
Source: Announcement (the same below)
In 2023, the operating income of Industrial Securities will be about 10.627 billion yuan, a slight decrease of 0.3%, the net profit attributable to shareholders of the parent company will be about 1.964 billion yuan, a year-on-year decrease of 25.51%, and a cash dividend of 1 yuan (tax included) will be distributed for every 10 shares.
In terms of business, the operating income of securities and futures brokerage business of Industrial Securities in 2023 will be about 3.228 billion yuan, a year-on-year decrease of 14.88%, the operating income of asset management business will be about 2.832 billion yuan, a year-on-year decrease of 16.44%, the operating income of institutional service business will be about 2.846 billion yuan, a year-on-year increase of 9.31%, the operating income of proprietary investment business will be about 1.587 billion yuan, a year-on-year increase of 87.47%, and the operating income of overseas business will be about 382 million yuan, a year-on-year increase of 344.60%.
For 2024, Industrial Securities said in its annual report that it will anchor the strategic goal of building a first-class securities and financial group and further deepen the transformation of its business model.
On the same day, Industrial Securities also disclosed its shareholder return plan. In terms of cash dividend ratio, the company said that in accordance with laws and regulations, normative documents and the relevant provisions of the Articles of Association and cash dividend conditions, the company's cumulative profits distributed in cash in the next three years (2024-2026) shall not be less than 30% of the average annual distributable profits realized in the next three years.
Some shareholders plan to liquidate and reduce their holdings
On the night when Industrial Securities disclosed its results, Longxi suddenly announced that it planned to take the opportunity to liquidate Industrial Securities shares by the end of 2026.
According to the announcement, the board of directors of Longxi Co., Ltd. deliberated and passed the "Proposal on the Sale of Transactional Financial Assets", and agreed that the company will sell 54,716,874 shares of Industrial Securities held by the company in batches according to the stock price trend of the secondary market before December 31, 2026. The above-mentioned proposed transaction shall be submitted to the general meeting of shareholders for deliberation and approval before it becomes effective.
According to the announcement, as of April 15, 2024, Longxi shares held 54,716,874 shares of Industrial Securities, with a shareholding ratio of 0.63% and an average cost of 3.71 yuan per share, all of which are tradable shares. This also means that Longxi shares directly "cleared" Industrial Securities this time.
Longxi shares said that the company can obtain corresponding investment income by reducing its holdings of Industrial Securities. At the same time, the withdrawn funds are used to supplement liquidity, which can improve the liquidity and efficiency of assets and promote the development of the company's main business.
In addition, Longxi also pointed out that since the implementation of the new financial instrument standards in 2019, the shares of Industrial Securities held by the company have been listed as trading financial assets, and the change in market value has been directly included in the current profit or loss. Due to the large number of shares held by the company, the change in market value has a huge impact on the profits of listed companies, and the opportunity to sell in batches is conducive to gradually reducing and eliminating the impact of stock price fluctuations in the secondary market on the consolidated statements, restoring the true situation of the company's main business profits, and preventing the risk of unilateral decline in stock prices leading to the company's performance losses. (Sino-Singapore Jingwei APP)