Source of this article: Times Finance Author: Liu Ziqi
Source: Diagram Worm
The equity of Reserve Bank Securities Co., Ltd. (hereinafter referred to as "Reserve Bank Securities") was auctioned again, and the starting price was discounted by 20%.
On May 16, an auction announcement disclosed by the Henan Provincial Public Resources Trading Center showed that a total of about 1.57% of the shares of the Federal Reserve Securities will be auctioned on the 22nd and 24th of this month, with a total starting price of about 118 million yuan.
Source: Henan Provincial Public Resources Trading Center
Times Finance noticed that this is the third time that this part of the shares of the Federal Reserve Securities has been auctioned, and the price has decreased significantly compared with the previous two auctions. For this equity auction and other matters, Times Finance contacted the Federal Reserve Securities, but has not received a reply as of press time.
At the beginning of the year, there were important personnel changes in the Federal Reserve Securities, and Chairman Lu Chunwei no longer served as the general manager, and Zhang Qiang, the deputy general manager of the company, took over, becoming the second general manager of the Federal Reserve Securities after moving to Qingdao.
The starting price is 20% off
According to the auction announcement, Henan Yuzheng Industrial Investment Co., Ltd. (hereinafter referred to as "Henan Yuzheng") will hold 0.31% of the equity of the Federal Reserve Securities will start at 10 o'clock on May 22, with a starting price of 23.504 million yuan, and Shandong Wuzheng Investment Holding Co., Ltd. (hereinafter referred to as "Shandong Wuzheng") holds 1.26% of the equity of the Federal Reserve Securities, which will start at 09:00 on May 24, with a starting price of 94.08 million yuan.
The two auctions involved a total of 1.57% of the equity of the Federal Reserve Securities, with a total starting price of about 118 million yuan, a decrease of 19.93% compared with the first starting price this year, which is equivalent to a 20% discount.
On April 16 this year, Henan Yu Securities auctioned 0.31% of its shares in the Federal Reserve Securities at a starting price of 29.38 million yuan, but failed to sell. On May 8, this part of the equity started at 26.442 million yuan again, and it still ended in an unsuccessful auction.
The situation encountered by the Shandong Fifth Stock Exchange is the same as that of Henan Yu Securities, and its 1.26% stake in the Federal Reserve Securities was auctioned at a price of 118 million yuan and 106 million yuan on April 18 and May 8 respectively, and the auction was finally unsuccessful.
Source: Reserve Bank Securities Annual Report
As of the end of 2023, Fed Securities has a total of 29 shareholders, with no controlling shareholder or actual controller. Among them, Beijing Zhengrun Investment Group holds 17.49% of the shares and is the largest shareholder of the Federal Reserve Securities. Shandong Fifth Stock Exchange holds 6.29% of the shares, ranking the fifth largest shareholder; Henan Yuzheng, as the last shareholder of the Federal Reserve Securities, holds 0.32% of the shares.
As early as August 2019, the shares of the Federal Reserve Securities held by Shandong Fifth Stock Exchange and Henan Yu Securities were frozen by the judiciary, with the frozen equity amounts of 10.19 million yuan and 40.7579 million yuan respectively, and their holdings were diluted due to the capital increase and share expansion of the Federal Reserve Securities in the later stage.
Times Finance noticed that in addition to the above two shareholders, the shares of the Reserve Securities and Qingdao Zhonghe Jinsheng Industrial Development Co., Ltd., Jiangsu Zhongnan Construction Group Co., Ltd., Shanghai Qiyi Industrial Development Co., Ltd., and Beijing Zhijun Huixin Investment Management Co., Ltd. have been frozen.
At the beginning of the year, a new general manager was ushered in
Founded in February 2001, Fed Securities, formerly known as Zhongcheng Securities, was jointly reorganized and prepared by five securities trading centers in Shandong, Henan, Hunan, Shenyang and Xi'an, and was headquartered in Shenzhen in the early years.
In May 2021, the headquarters of the Federal Reserve Securities moved from Shenzhen to Qingdao, and the capital was increased from 2.573 billion yuan to 3.134 billion yuan, and Qingdao local state-owned assets became the second largest shareholder of the company.
At the beginning of the Federal Reserve Securities' move to Qingdao, the chairman and general manager were respectively Lv Chunwei and Ding Ke. In August 2023, Ding Ke will retire, and the general manager will be Lu Chunwei. In January this year, Lu Chunwei, chairman of the Federal Reserve Securities, no longer served as general manager and was replaced by Zhang Qiang, deputy general manager.
Born in 1977, Zhang Qiang is 47 years old and holds a master's degree. Prior to joining Fed Securities, Zhang Qiang worked in Founder Securities, Caitong Securities, Fortune Securities, and East Asia Qianhai Securities, including Assistant to the President, Vice President, and Chief Information Officer.
As the new "second-in-command", the burden on Zhang Qiang's shoulders is not light. In recent years, Fed Securities has been repeatedly penalized by regulators. In January 2023, the Shanghai Stock Exchange took the regulatory measure of temporarily not accepting application materials related to corporate bonds for 2 months.
In December 2023, the Securities Association of China announced the results of the 2023 evaluation of the practice quality of securities companies' bond business, and the rating result of the Federal Reserve Securities was downgraded from B to C. On February 5 this year, the Reserve Bank Securities was issued a warning letter by the Shenzhen Stock Exchange for violations in the management of margin financing and securities lending business.
Source: Shenzhen Stock Exchange official website
Last year's performance was a large loss
Reserve Bank Securities is not the first local brokerage firm in Qingdao.
In 1988, Qingdao Branch of the People's Bank of China established Qingdao Securities, which was renamed Wantong Securities in 2000. Later, due to the investment and holding of CITIC Securities, it was renamed CITIC Vantone Securities in April 2004; In 2014, it was renamed CITIC Securities (Shandong) again. Since then, there have been no local brokerages in Qingdao until the Federal Reserve Securities moved in.
At present, the only fully licensed securities companies registered in Shandong Province are Fed Securities and Zhongtai Securities (600918. SH) two.
In April this year, according to the official website of the China Securities Regulatory Commission, the transfer of 46.81% of the shares of Yadong Industrial Co., Ltd., the largest shareholder of Debang Securities, to Shandong State-owned Assets has been accepted a few days ago. If Shandong state-owned assets successfully enter Debang Securities, Shandong Province will usher in a third brokerage.
Compared with Zhongtai Securities, the performance of Fed Securities is slightly insufficient.
In 2023, Zhongtai Securities will achieve operating income of 12.762 billion yuan, a year-on-year increase of 36.86%; The net profit attributable to the parent company was 1.800 billion yuan, a year-on-year increase of 204.94%. In 2023, the Federal Reserve Securities will achieve operating income of 756 million yuan, a year-on-year decrease of 24.43%; The net loss was 161 million yuan, a year-on-year decrease of 454.50%.
Source: Reserve Bank Securities Annual Report
In terms of business, brokerage business is the only business of Fed Securities, and other main businesses have declined to varying degrees. Among them, investment banking, asset management, credit and proprietary business decreased by 32.92%, 13.99%, 75.43% and 28.38% year-on-year respectively. In addition, the non-operating expenses of Fed Securities in 2023 will reach 125 million yuan, almost double compared with 2022, resulting in a further decline in net profit.
From the perspective of IPO projects, Zhongtai Securities will complete the issuance of 29 single equity lead underwriting projects in 2023, with a total underwriting scale of 19.215 billion yuan. The Reserve Bank Securities completed a total of 1 refinancing project, raising 160 million yuan, and participated in 1 IPO issuance project of the Beijing Stock Exchange and 1 private placement project of listed companies as a distributor, raising 708 million yuan.