On April 30, BOC Securities disclosed its 2023 annual report and 2024 first quarter report.
According to the annual report, in 2023, BOC Securities achieved operating income of 2.94 billion yuan, a slight decrease of 0.64% year-on-year, and net profit attributable to the parent company of 901 million yuan, an increase of 11.51% year-on-year. It should be noted that the operating income of BOC Securities has declined for two consecutive years. In the first quarter of 2024, BOC Securities' revenue was 615 million yuan and net profit attributable to the parent company was 202 million yuan, down 10.07% and 19.92% year-on-year, respectively.
From the perspective of the main business, the company's securities brokerage business income is the company's main source of revenue. According to the annual report, in 2023, the company's securities brokerage business income will be 1.682 billion yuan, a slight decrease of 0.99% year-on-year, and the income of asset management business will be 530 million yuan, a year-on-year decrease of 30.83%.
In addition, since 2023, BOC Securities has been punished by the regulatory authorities many times. In February 2023, BOC Securities was issued a warning letter by the regulatory authorities for violations involving sponsorship business.
Revenue declined for the second year in a row
According to the annual report, in 2023, BOC Securities achieved operating income of 2.94 billion yuan, a slight decrease of 0.64% year-on-year, and net profit attributable to the parent company of 901 million yuan, an increase of 11.51% year-on-year. It should be noted that the operating income of BOC Securities has declined for two consecutive years, and in 2022, BOC Securities will achieve revenue of 2.959 billion yuan, a year-on-year decrease of 11.23%.
In the first quarter of 2024, BOC Securities' revenue was 615 million yuan and net profit attributable to the parent company was 202 million yuan, down 10.07% and 19.92% year-on-year, respectively. As of the end of March 2024, the company's total assets were 62.887 billion yuan, a decrease of 9.44% from the end of the previous year.
The asset management business came under pressure
From the perspective of the company's main business, the income from securities brokerage business is the main source of the company's revenue, accounting for 57.19% of the operating income, and the income from asset management business and investment banking business account for 18.03% and 8.66% respectively.
According to the annual report, in 2023, the company's securities brokerage business income will be 1.682 billion yuan, a slight decrease of 0.99% year-on-year, the income of asset management business will be 530 million yuan, a year-on-year decrease of 30.83%, and the investment banking business income will be 255 million yuan, an increase of 128.44% year-on-year.
In terms of asset management business, as of the end of December 2023, the total scale of the company's asset management business was 468 billion yuan, a decrease of 110.4 billion yuan from the end of the previous year.
In terms of investment banking business, the total amount of equity financing lead underwriting in 2023 was RMB5.956 billion, a decrease of RMB3.142 billion or 34.5% from the same period of last year, and the lead underwriting scale of bond financing was RMB254.965 billion, an increase of RMB32.239 billion or 14.47% over the same period of last year.
He has been issued a warning letter by the regulator for sponsorship business violations
According to the statistics notified by the regulatory authorities, since 2023, BOC Securities has been punished by the regulatory authorities many times.
In February 2023, BOC Securities received the "Decision on Issuing Warning Letters to BOCI Securities Co., Ltd. and its sponsor representatives, Wu Zhechao and Ren Lan" issued by the China Securities Regulatory Commission.
According to the "Decision", "after investigation, I will find that in the process of sponsoring the initial public offering and listing of Hongsheng Huayuan Tower Group Co., Ltd. (hereinafter referred to as the issuer), you did not diligently perform your relevant duties, failed to fully verify the situation of the issuer's shareholding enterprises, did not find that the prospectus information disclosure was incomplete, and did not find that some of the evaluation reports had calculation errors and unreasonable analysis reasons."
In addition, in December 2023, the Dandong Sanjing Street Securities Business Department of Bank of China Securities received the "Decision [2023] No. 24 on Issuing a Warning Letter to the Dandong Sanjing Street Securities Business Department of BOC International Securities Co., Ltd. issued by the Liaoning Securities Regulatory Bureau. According to the "Decision", "the actual business premises of the business department are inconsistent with the business premises recorded in the securities and futures business license; the default commission rate and minimum charging standard are not publicized; the marketing, compliance and risk control, and account business handling posts of the business department are not separated; and the important blank contracts with overprinted official seals are not registered, registered, and invalidated."
(Article Serial Number: 1785124277113196544)
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