Peng Chunxia/Cartography
Securities Times reporter Sun Xiangfeng
Recently, the Beijing Equity Exchange disclosed that a securities company controlled by Fujian State-owned Assets intends to introduce a number of strategic investors with strength and resources through capital increase and share expansion. The Securities Times reporter asked for confirmation that the company is Great Wall Guorui Securities.
A relevant person from great wall Guorui said in an interview with the Securities Times reporter that after completing the company's capital increase and share expansion, the shareholding system transformation was immediately launched. At the same time, the use of three to five years to achieve operating income ranking to the industry midstream level.
In recent years, with the increasingly fierce competition in the securities industry, the "Matthew effect" has become more and more obvious. The head securities companies with capital, brand, talent and other advantages of the large-scale expansion, small and medium-sized securities companies under pressure on the capital demand is also getting higher and higher, more securities companies hope to raise funds through IPO, but due to the limited scale of business, frequent compliance risks and other reasons, small and medium-sized securities companies listing is still difficult.
Great Wall Guorui Recruitment "Battle Toss"
"This capital increase and share expansion plans to introduce a number of strategic investors who meet the regulatory requirements such as the equity management regulations of securities companies and can hold and support the development of the company for a long time." Investor selection criteria focus on a variety of high-quality institutions that have the advantage of shareholder synergy and can provide business resources to securities companies. The relevant person of the Great Wall Guorui told the Securities Times reporter, "After completing the company's capital increase and share expansion, the shareholding system transformation was immediately launched." ”
For the development plan after the capital increase and share expansion, Great Wall Guorui said that the company's strategic positioning fully considers the uniqueness of the securities company's own license and the relevance of the group system, on the one hand, the company actively promotes the market-oriented reform, cultivates the core competitiveness, and strives to become a branded, distinctive and influential medium-sized listed securities company through three to five years of efforts; on the other hand, closely around the main business of the group, relying on the resources of the group, on the basis of doing fine professionalism, by straightening out the interest relationship with all parties in the group system. Effectively coordinate the main business of the group, become a professional service platform with unique functions to help the development of the group's main business, give full play to the unique brokerage service function of Great Wall Guorui in the group system, and jointly achieve high-quality development with the group company.
In addition, Great Wall Guorui said that through this battle, the company will continue to improve the market-oriented mechanism, strengthen the introduction of talents and shareholder collaboration, enhance core competitiveness, and then improve the overall return on shareholder investment. In 2020, the annualized yield of corporate bond investment is 11.6%, after this capital increase, the company will further improve the scale and efficiency of capital investment, promote the integration of self-operated investment and research, and vigorously develop bond underwriting, mergers and acquisitions and restructuring businesses adhering to the business advantages of shareholders.
Great Wall Guorui, formerly known as Xiamen Securities, was established on July 16, 1988. In more than 20 years of development, the company's equity has changed many times, and after the equity change in 2017, the company's shareholders are China Great Wall Asset Management Company (now China Great Wall Asset Management Co., Ltd.) and Dedao Investment and Development Group Co., Ltd., with a shareholding ratio of 67% and 33% respectively.
In 2020, Great Wall Guorui achieved operating income of 640 million yuan, an increase of 1.86% year-on-year; total profit of 82.5927 million yuan, an increase of 454 million yuan year-on-year; net profit attributable to the parent company of 61.4081 million yuan, an increase of 370 million yuan.
Small and medium-sized securities companies are busy raising funds
In recent years, regulators have directly or indirectly linked the net capital of securities companies to business qualifications and the upper limit of scale, making the desire for capital of securities companies more obvious. With the development of securities companies, businesses such as two financing and strategic investment have higher and higher requirements for the capital of securities companies, and it is imperative for small securities companies to raise funds and replenish blood.
In order to better finance, many securities companies have struggled to achieve listing in the past two years. Since 2020 alone, BOC Securities, Zhongtai Securities, Guolian Securities, CICC and Caida Securities have been listed on A-shares.
"Small securities companies have a poor business foundation and low anti-risk ability, and they do not all have good listing conditions, but in the past two years, the requirements for listing performance have been relaxed under the registration system, which has provided more opportunities for some small securities companies." A brokerage analyst told the Securities Times reporter.
For securities companies that have not yet been listed, the pressure of fundraising is more obvious, and some securities companies can only increase capital and expand shares. For example, kaiyuan securities headquartered in northwest China, the securities company completed the seventh capital increase and share expansion payment verification work in 2020, and Shaanxi Coal Industry Chemical Group Co., Ltd., Shaanxi Caijin Investment Management Co., Ltd., and Shaanxi Geopower Equity Investment Co., Ltd. jointly injected 2.8 billion yuan.
However, the capital increase and share expansion of small securities companies are not all smooth. Joaquin Securities has been listed twice around 2017 to increase capital and expand shares, the first time without a problem, and the second listing after Joaquin Capital to buy shares. However, Joaquin Capital and Joaquin Securities were brothers at the time, and the shareholders were Zhuhai Huachuang Investment Management Co., Ltd., a subsidiary of zhuhai State-owned Assets Supervision and Administration Commission.
Therefore, a number of securities companies have put listing financing on the agenda. At present, Huabao Securities, Huajin Securities, Bohai Securities, China Development Bank Securities, Hualong Securities, etc. are all conducting listing counseling, while Cinda Securities has completed the listing counseling work.
Although each has its own magic, on the whole, it is not easy for small and medium-sized securities companies to raise funds, and the core reason is that most of the small and medium-sized securities companies have limited profitability.
According to statistics, the industry achieved a net profit of 157.534 billion yuan in 2020. Among them, the net profit of CITIC Securities is as high as 15.517 billion yuan, accounting for nearly 10%; there are 5 companies with net profits of more than 10 billion yuan, occupying more than 40% of the market share. At the same time, there are 17 companies with net profits of less than 100 million yuan, and 11 companies such as Huarong Securities and Pacific Securities have losses. In the case of the strong Hengqiang, the living space of small and medium-sized brokers has been fully compressed.
The above-mentioned analysts believe that the homogenization competition of securities companies is still very serious, large securities companies rely on the advantages of capital, brand, talent and other advantages to expand vigorously, small and medium-sized securities companies in addition to the license is fully backward, want to have a breakthrough in operation is not small.
In addition, securities companies also have a low overall return rate of the industry. From the perspective of ROE, the overall quality of the listed securities companies with good operating quality, the overall ROE in 2018 was as low as 3.5%, even if the overall operation of the industry improved in the past two years, in the context of the continuous increase in industry leverage, the average ROE of listed securities companies in the first half of 2021 calculated by Zheshang Securities was only 8% (annualized).