On April 27, Industrial Securities disclosed its 2023 annual report and 2024 first quarter report.
From the perspective of main business, the company's securities and futures brokerage business is the main source of the company's total operating income. In 2023, the company's securities and futures brokerage business revenue will be 3.228 billion yuan, a year-on-year decrease of 14.88%, and the asset management business income will be 2.832 billion yuan, a year-on-year decrease of 16.44%.
In addition, since 2023, Industrial Securities has been punished by the regulatory authorities many times. In August 2023, Industrial Securities was issued a warning letter by the Fujian Securities Regulatory Bureau due to issues related to research and reporting business.
Revenue and net profit have declined for two consecutive years, and net profit in the first quarter fell by more than 60% year-on-year
According to the annual report, in 2023, Industrial Securities achieved operating income of 10.627 billion yuan, a slight decrease of 0.3% year-on-year, and net profit attributable to the parent company of 1.964 billion yuan, a year-on-year decrease of 25.51%. It should be noted that Industrial Securities' revenue and net profit attributable to the parent company have declined for two consecutive years.
In the first quarter of 2024, Industrial Securities' revenue was 2.377 billion yuan and net profit attributable to the parent company was 328 million yuan, down 42.99% and 60.38% year-on-year, respectively. The company said that the net operating income in a single quarter decreased year-on-year due to the decrease in net fee and commission income and investment income.
The income of asset management business decreased significantly
From the perspective of the company's main business, securities and futures brokerage business, institutional service business and asset management business are the main sources of the company's total operating income, accounting for 30%, 26% and 25% of the operating income respectively.
In 2023, the company's securities and futures brokerage business revenue will be 3.228 billion yuan, a year-on-year decrease of 14.88%, and the asset management business income will be 2.832 billion yuan, a year-on-year decrease of 16.44%.
According to the annual report, during the reporting period, the net income of handling fees and commissions of Industrial Securities was 6.15 billion yuan, a year-on-year decrease of 13.83%. Among them, the net fee income of brokerage business was 2.253 billion yuan, down 18.25% year-on-year, and the net fee income of asset management business was 148 million yuan, down 7.8% year-on-year.
He has been issued a warning letter by the regulator due to research and reporting business problems
According to the statistics notified by the regulatory authorities, since 2023, Industrial Securities has been punished by the regulatory authorities many times.
In August 2023, Industrial Securities received the "Decision on Issuing a Warning Letter to Industrial Securities Co., Ltd." issued by the Fujian Securities Regulatory Bureau.
According to the "Decision", the internal control and compliance management of the customer service behavior of Industrial Securities' securities research report business are not in place, and the content of individual analysts' speeches is not prudent enough, and the Fujian Securities Regulatory Bureau has decided to take measures to issue a warning letter to the company.
In October 2023, the Harbin Youyi Road Securities Business Department of Industrial Securities was warned by the Heilongjiang Provincial Branch of the State Administration of Foreign Exchange and fined 50,000 yuan for "failing to submit financial accounting reports, statistical statements and other materials in accordance with regulations".
(Article Serial Number: 1784764318663970816)
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