Yangtze River Business Daily reporter Xu Jia
Hualin Securities (002945. SZ) received a regulatory fine for the disclosure of its earnings forecast.
A few days ago, Hualin Securities disclosed that the company received the decision of the Tibet Securities Regulatory Bureau on administrative supervision measures, due to the large difference between the net profit attributable to the parent company and the revised net profit attributable to the parent company, and the company delayed the disclosure of the "ruling", the Tibet Securities Regulatory Bureau decided to issue a warning letter to Hualin Securities, the company's chairman Lin Li, general manager and chief financial officer Zhu Song to take supervision and management measures, and the relevant situation will be recorded in the securities and futures market integrity file.
The Yangtze River Business Daily reporter noticed that Hualin Securities was fined for inaccurate performance forecasts, which was related to the arbitration case of the Red Expo Exhibition. At the end of February this year, Hualin Securities disclosed that the company received the "Award" issued by the Shanghai International Economic and Trade Arbitration Commission, and according to the arbitration results, Hualin Securities needed to repay the applicant Dalian Bank for the principal loss of 228 million yuan.
In addition to the impact of the arbitration case, Hualin Securities' own operating performance was also not satisfactory. The annual report shows that in 2023, Hualin Securities will achieve operating income of 1.015 billion yuan, a year-on-year decrease of 27.38%; net profit was 31.6861 million yuan, a year-on-year decrease of 93.18%; The net profit after deducting non-recurring gains and losses (net profit after deducting non-net profit, the same below) was 203 million yuan, a year-on-year decrease of 52.87%.
Among them, as the "winner and loser" of the performance of securities companies in 2023, Hualin Securities' proprietary business income was -42.4837 million yuan, a decrease of 129.66% from 143 million yuan in the same period of the previous year. In addition, the company's wealth management and investment banking business income decreased by 5.98% and 39.33% respectively.
The company and its three senior executives were all fined
Involved in the arbitration case of the Red Expo Exhibition, Hualin Securities was fined for large differences before and after the performance forecast.
According to the data, Hualin Securities is the manager of the "Red Expo Exhibition Trust Beneficiary Right Asset-backed Special Plan". In September 2017, Bank of Dalian subscribed for "17 Hongbo 04", "17 Hongbo 05" and "17 Hongbo 06" asset-backed securities. Due to the failure of Harbin Hongbo Exhibition Shopping Plaza Co., Ltd., the service provider of the special plan, to collect the cash flow generated by the underlying assets in a timely and full amount to the supervision account of the special plan, the specific original owner Harbin Institute of Technology High-tech Industrial Development Co., Ltd. failed to perform the obligation of repayment of the trust loan and the obligation to pay the difference, and the guarantor Harbin Institute of Technology Group Co., Ltd. failed to perform the guarantee liability, resulting in the failure of the special plan involved in the case to complete the income distribution on time on October 8, 2018, triggering the default clause of the special plan.
Due to a dispute over the liability for breach of contract under the above-mentioned special plan, Bank of Dalian initiated arbitration against Hualin Securities in May 2022.
At the end of February this year, Hualin Securities disclosed that the company received the "Award" issued by the Shanghai International Economic and Trade Arbitration Commission. According to the arbitration result, Hualin Securities was required to repay the claimant, Dalian Bank, for the loss of principal of RMB 228 million.
At the end of January this year, when the performance forecast was released, the arbitration matter had not yet been adjudicated, and because the underlying assets of the special plan really existed, the Harbin Red Expo Exhibition Shopping Center was operating normally, the disposal of the underlying assets had progressed, and the appraised value was higher than the amount of the subject matter of the arbitration, Hualin Securities expected that the possibility of economic benefits outflow due to arbitration matters was small.
Until the receipt of the above-mentioned "Award", Hualin Securities recognized the estimated liabilities based on the principal loss payable to Bank of Dalian, simultaneously considered the impact of the corresponding taxes, and adjusted part of the withholding business and management fees in 2023 in light of the operating conditions, so as to reduce the net profit in 2023.
According to the "Decision on Administrative Supervision Measures" issued by the Tibet Securities Regulatory Bureau, Hualin Securities did not consider the risk signs in the Red Expo and Exhibition arbitration case in the performance forecast, and failed to accurately accrue business and management fees, resulting in a large difference between the net profit attributable to the parent company of 172 million to 218 million yuan in the 2023 annual report performance forecast and the net profit attributable to the parent company of 25 million to 37 million yuan in the 2023 performance forecast revision announcement, which violated relevant regulations.
Not only that, the Tibet Securities Regulatory Bureau also pointed out that Hualin Securities violated relevant regulations by not disclosing it until February 27, 2024 after receiving the "Award" of the Shanghai International Economic and Trade Arbitration Commission on February 18, 2024. Lin Li, as the chairman of the company, Zhu Song, as the general manager of the company, and Xie Yingming, as the secretary of the board of directors of the company, are primarily responsible for the above acts.
The Tibet Securities Regulatory Bureau decided to take supervision and management measures of issuing warning letters to Hualin Securities, Lin Li, Zhu Song, and Xie Yingming, and recorded the relevant situation in the integrity file of the securities and futures market.
Only asset management revenue increased in the five major business segments
Aside from the impact of the arbitration case at the Red Expo, Hualin Securities' own performance was not ideal.
The Yangtze River Business Daily reporter noticed that in the first performance forecast, Hualin Securities had expected a year-on-year decrease of 53% to 63% in net profit in 2023.
At that time, Hualin Securities said that in 2023, the A-share market as a whole will fluctuate, the industry structure will be significantly differentiated, and the company's fair value change profit and loss will decrease year-on-year; At the same time, the decline in market trading activity and the phased tightening of IPO and refinancing have comprehensively led to a year-on-year decline in the company's operating income and net profit is expected to decline year-on-year.
Finally, the annual report released by Hualin Securities shows that in 2023, the company will achieve operating income of 1.015 billion yuan, a year-on-year decrease of 27.38%; net profit was 31.6861 million yuan, a year-on-year decrease of 93.18%; The net profit after deducting non-recurring gains and losses was 203 million yuan, a year-on-year decrease of 52.87%.
This is also the third consecutive year of decline in the performance of Hualin Securities. Previously, from 2020 to 2022, Hualin Securities achieved operating income of 1.49 billion yuan, 1.395 billion yuan, and 1.398 billion yuan respectively, a year-on-year increase of 47.42%, -6.34%, and 13.98%; The net profit was 812 million yuan, 484 million yuan and 465 million yuan, a year-on-year increase of 83.96%, -40.46% and -3.94%.
According to the annual report, in 2023, due to the decline in market trading activity, the wealth management business income of Hualin Securities will be 819 million yuan, a year-on-year decrease of 5.98%. Due to the phased tightening of IPO and refinancing, Hualin Securities' investment banking income was 104 million yuan, a year-on-year decrease of 39.33%.
It is worth noting that as the "winner and loser" of the performance of securities companies in 2023, the proprietary business income of Hualin Securities will be -42.4837 million yuan, a decrease of 129.66% from 143 million yuan in the same period last year. Due to the year-on-year decrease in the fair value change profit and loss of the alternative investment business, Hualin Securities achieved other business income of 85.332 million yuan, a year-on-year decrease of 50.83%.
In 2023, among the five major business segments of Hualin Securities, only the income of asset management business increased by 26.87% year-on-year to 49.7992 million yuan. Hualin Securities said that the main reason is that the company continues to vigorously develop the collective asset management business, the scale of the collective product has increased and the net value has risen, and the performance remuneration has increased.
In the first quarter of this year, Hualin Securities achieved operating income of 273 million yuan, a year-on-year increase of 12.02%; net profit was 54.8272 million yuan, a year-on-year decrease of 12.83%; The non-net profit was 72.7763 million yuan, a year-on-year increase of 19.29%. Among them, the net fee income of Hualin Securities' investment banking business in the first quarter was only 2.8569 million yuan, a year-on-year decrease of 73.79%.
Exclusive In-Depth Recommendations:
He Jianfeng is backed by the United States, keen on mergers and acquisitions, holding three companies, film and television are now failing, and the prospect of losing again is to be examined
Chongqing Rural Commercial Bank's revenue and net profit in the first quarter both declined, and the growth rate was at the bottom of the A-share rural commercial bank
Zhang Xiaoquan's net profit fell twice in a row, the stock price fell by 60%, and the two actual controllers were limited
Five executives of Yunnan Baiyao were investigated and shook the industry, Wang Minghui lost 2.5 billion yuan in two years of stock speculation, causing a roller coaster of performance
Zongheng shares were reported to be fraudulent, and the stock price fell 9.6%, and five of the top ten shareholders reduced their net profits for three consecutive years
Ding Xiongjun's crazy cross-border change was accused of being fancy, and Zhang Deqin took over the high-quality development of Kweichow Moutai in the 200 billion era
Aier Ophthalmology's share price plummeted by 70%, which seriously deviated from the performance, and the impairment of 1.4 billion was still 6.5 billion, and the goodwill was still hanging over
Minsheng Bank's revenue fell continuously, and executive compensation was 46.81 million, ranking first in the industry, with overdue loans of 87.9 billion yuan, and nearly 500 million fines in four years
North China Pharmaceutical deducted 4 consecutive losses and was seriously untrustworthy, and the financial expenses were as high as 473 million yuan, and the debt ratio was 70%
BAIC Blue Valley lost 22.6 billion yuan in four years, with a debt ratio of 79.87%, and Jihu had a debt of 9.6 billion yuan, which was 4.6 times its assets and was insolvent
Junzheng Group's net profit fell three times in a row, its cash flow decreased by 3.1 billion, the annual dividend was 2.7 billion, and the Du Jiangtao family was 1.44 billion
The inventory of Gujing Gongjiu was 7.5 billion yuan, an increase of 120% in three years, and the sales fee exceeded 5.4 billion, ranking second among A-share wine companies
Li Liangbin's wealth shrank by 50 billion yuan, and he lost the richest man in Jiangxi, Ganfeng Lithium's net profit fell by 75%, and Li Chenglin took over the baton with 25 billion debts
Yiling Pharmaceutical's first year of handover was a rare single-quarter loss of 400 million, Wu Xiangjun was under pressure, and Lianhua Qingwen's income plummeted by 51%