During the year, one more securities firm was added to the CSRC case.
On the morning of May 14, Bohai Securities announced that the company received a notice of filing from the China Securities Regulatory Commission on May 9. According to the announcement, due to suspected violations of laws and regulations in the financial advisory business, the China Securities Regulatory Commission filed a case against Bohai Securities on April 24 this year in accordance with relevant laws and regulations.
At the same time, Bohai Securities said that the company's current operating conditions are normal, and the incident has no adverse impact on the company's solvency. The company will actively cooperate with the relevant work of the China Securities Regulatory Commission and fulfill its information disclosure obligations in strict accordance with regulatory requirements.
According to the 2023 annual report of Bohai Securities, last year, Bohai Securities' operating income was 2.101 billion yuan and operating profit was 667 million yuan, an increase of 48.39% and 35.27% respectively compared with 2022. Among them, the annual report data shows that the operating income of Bohai Securities' securities proprietary business was 715 million yuan, a year-on-year increase of 238.19%.
The financial advisory business mentioned in this announcement was not introduced much in last year's annual report. According to the annual report, in 2023, Bohai Securities will serve the equity financing in the Yangtze River Delta region and complete the non-public issuance of shares of Jinfu Technology as a joint lead underwriter; Seizing the opportunity of the construction of the Beijing Stock Exchange, we actively supported the development of "specialized, special and new" and the listing of small and medium-sized enterprises, and completed the private placement project of Evergreen Agricultural Science and Technology New Third Board and a number of financial advisory projects of Tianjin state-owned enterprises. At the same time, the annual report mentioned that in terms of revitalizing the stock business, Bohai Securities is actively developing ABS, infrastructure public REITs financial advisory business and local government bond business.
It is worth mentioning that Bohai Securities is in the process of IPO. According to the official website of the Shanghai Stock Exchange, the IPO of Bohai Securities has been accepted on March 1, 2023, and the Shanghai Stock Exchange inquired about it on March 17 of the same year. There has been no update on the progress of the IPO since then. According to the prospectus, Bohai Securities intends to raise an amount of 2.726 billion yuan, with Everbright Securities as its sponsor.
According to the prospectus, Bohai Securities' financial advisory business mainly includes providing customers with various types of financing, financial arrangements, mergers and acquisitions, asset restructuring and other aspects of analysis, consulting, planning and other consulting services, as well as the new third board recommendation listing and continuous supervision and other related businesses.
During the reporting period, the financial advisory business income of Bohai Securities was 345 million yuan (2019), 66.9 million yuan (2020), 20.4088 million yuan (2021) and 36.1744 million yuan (January ~ June 2022) respectively.
Among them, the net fee and commission income of the financial advisory business in 2019 accounted for 82.61% of the total income of the investment banking business in that year. Bohai Securities explained: "The main reason is that the company, as a financial adviser, has completed the maturity resale and resale of many bonds such as '16 Wanda 02' and '16 Wanda 03' for customers. ”
Regarding the filing of the case by the China Securities Regulatory Commission, Silver Persimmon Finance called the secretary of the board of directors provided in the prospectus of Bohai Securities, and the other party said that he was only a staff member and not the secretary of the board of directors, and said that he could not answer the reporter's questions, and the relevant questions need to wait for the follow-up announcement of Bohai Securities.
Before Bohai Securities, there was already CITIC Securities (600030. SH), Haitong Securities (600837. SH), Soochow Securities (601555. SH) three securities firms were filed by the China Securities Regulatory Commission this year. At present, the results of the investigation of the first two securities companies by the China Securities Regulatory Commission have been announced, and there is no new progress in the investigation results of Soochow Securities.