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Hualin Securities' 2023 annual results forecast
On January 27, 2024, Hualin Securities released its 2023 annual performance forecast, and the company expects the net profit attributable to shareholders of listed companies to be 172 million yuan to 218 million yuan, a year-on-year decrease of 53% - 63%.
Hualin Securities Revised earnings forecast
On March 19, 2024, Hualin Securities issued an announcement on the revision of the 2023 annual performance forecast, and the company's latest estimated net profit attributable to shareholders of listed companies is 25 million yuan to 37 million yuan, a year-on-year decrease of 92.04%-94.62%.
As for the main reason for the performance revision, Hualin Securities explained that the company is the manager of the "Red Expo Exhibition Trust Beneficiary Rights Asset-Backed Special Plan" (hereinafter referred to as the "Special Plan"), and in May 2022, the applicant, Bank of Dalian Co., Ltd. (hereinafter referred to as "Bank of Dalian"), filed an arbitration against the company due to a dispute over the liability for breach of contract of the special plan.
On February 28, 2024, Hualin Securities issued the Announcement on the Progress of Arbitration (Announcement No. 2024-009), disclosing the Company's receipt of the Award ([2023] Hu Mao Arbitration Zi No. 1938) (the "Award") issued by the Shanghai International Economic and Trade Arbitration Commission (Shanghai International Arbitration Center). According to the arbitration result, the company is required to reimburse the claimant Dalian Bank for the principal loss of RMB 228 million (if there is distributable property in the subsequent disposal of the underlying assets in the special plan involved in the case, the property distributed by the special plan involved in the case that the applicant can obtain after liquidation shall be deducted from the amount compensated by the respondent), and bear the lawyer's fees and arbitration fees of Bank of Dalian.
Screenshot from Tibet Securities Regulatory Bureau
On May 10, 2024, the Tibet Securities Regulatory Bureau issued a decision on issuing warning letters to Hualin Securities, Lin Li, Zhu Song, and Xie Yingming. The above behavior violates the provisions of Article 3, Paragraph 1 of the Administrative Measures for Information Disclosure of Listed Companies (Decree No. 182 of the CSRC). Lin Li, as the chairman of the board of directors of the company, and Zhu Song, as the general manager and chief financial officer of the company, failed to perform their duty of diligence and diligence in accordance with Article 4 and Article 51, Paragraph 3 of the Administrative Measures for Information Disclosure of Listed Companies (Decree No. 182 of the CSRC), and bear the main responsibility for the above acts.
In addition, after receiving the award from the Shanghai International Economic and Trade Arbitration Commission on February 18, 2024, Hualin Securities did not disclose it until February 27, 2024. The above behavior violated the provisions of Article 3, Paragraph 1 and Article 22, Paragraph 2, Paragraph 10 of the Administrative Measures for Information Disclosure of Listed Companies (Decree No. 182 of the CSRC). 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, failed to perform their duty of diligence and diligence in accordance with Article 4 and Article 51, Paragraph 2 of the Administrative Measures for Information Disclosure of Listed Companies (Decree No. 182 of the CSRC), and bear primary responsibility for the above acts.
In accordance with the relevant regulations, the Tibet Securities Regulatory Bureau decided to take supervision and management measures against Hualin Securities, Lin Li, Zhu Song and Xie Ying by issuing warning letters, and recorded the relevant information in the integrity file of the securities and futures market.
Industry insiders pointed out that as an important way to convey the company's future operating conditions to investors, its accuracy is directly related to the fairness of the market and the interests of investors. The regulator's warning is a clear signal to Hualin Securities, requiring it to improve the accuracy and timeliness of information disclosure in order to maintain the stability of the capital market and the rights and interests of investors.
It is reported that in 2023, the market as a whole will show a trend of volatility and adjustment, with the activity of stock-based trading declining, and the pace of issuance in the A-share market slowing down in stages. The 145 securities companies in the industry achieved operating income of RMB405.902 billion, an increase of 2.77% year-on-year; The net profit was RMB137.833 billion, down 3.14% year-on-year.
Hualin Securities 2023 Annual Report
According to the latest annual report released by Hualin Securities, in 2023, Hualin Securities will achieve operating income of 1.015 billion yuan, a year-on-year decrease of 27.38%; net profit attributable to shareholders of listed companies was 31.6861 million yuan, a year-on-year decrease of 93.18%.
Industry insiders pointed out that in the face of a sharp decline in net profit, Hualin Securities needs to take active measures to deal with it. First of all, it is necessary to conduct a comprehensive review of the self-operated business, identify the root causes of the decline in net profit and formulate corresponding improvement measures. Second, further enhance the sensitivity and response ability to market changes.
In the world of finance, where risks and opportunities coexist, how to find a balance in fluctuations and achieve sustainable development will always be an eternal issue that every financial institution must face. "Electric Eel Finance" will keep an eye on the future performance of Hualin Securities and its stock price trend.