I don’t know. Securities companies did not make less provision for impairment in 2021.
Up to now, four listed securities companies have announced the provision for impairment in 2021. The total provision amount of Everbright Securities Company Limited(601788) , Guoyuan Securities Company Limited(000728) , Sealand Securities Co.Ltd(000750) , The Pacific Securities Co.Ltd(601099) securities companies is as high as 2.311 billion yuan, and the impact on the net profit in 2021 is as high as 1.915 billion yuan.
Among them, Everbright Securities Company Limited(601788) has made another provision of 733 million yuan due to the MPS event of stepping on thunder in the early years, which has become the largest single project in 2021, and Everbright Securities Company Limited(601788) has made large provision for four consecutive years. At the same time, Guoyuan Securities Company Limited(000728) also continued to accrue 444 million yuan of expected credit impairment losses due to previously defaulted stock pledge projects such as ” Shenzhen Capstone Industrial Co.Ltd(000038) “, “300317}” and ” Jiangsu Lanfeng Bio-Chemical Co.Ltd(002513) “.
4 securities companies withdrew 2.3 billion yuan last year
on January 28, Sealand Securities Co.Ltd(000750) issued an announcement on the provision for impairment in the fourth quarter of 2021. Since then, four listed securities companies have predicted the provision for the whole year of last year.
Among them, the maximum amount of Everbright Securities Company Limited(601788) provision is 1.128 billion yuan, which reduces the current net profit of 1.028 billion yuan, while the estimated net profit of Everbright Securities Company Limited(601788) in 2021 is only 3.501 billion yuan, which shows the impact of large amount provision on its performance.
It should be noted that Everbright Securities Company Limited(601788) once again accrued an estimated liability of RMB 733 million for the MPS project. Previously, from 2018 to 2020, Everbright Securities Company Limited(601788) has accrued RMB 1.4 billion, RMB 1.611 billion and RMB 1.55 billion respectively for the project for three consecutive years, and now it has been accrued for four consecutive years.
Everbright Securities Company Limited(601788) said that it announced the MPS matters and related progress involved in Everbright capital and its subsidiaries in the early stage. The provision of 733 million yuan of estimated liabilities is the result of comprehensive consideration of the progress of MPS matters, relevant litigation and arbitration judgments, as well as the corresponding payment obligations according to the judgment results.
Guoyuan Securities Company Limited(000728) and Sealand Securities Co.Ltd(000750) also made provision for impairment of 489 million yuan and 422 million yuan respectively in 2021, which also reduced their current net profit by 367 million yuan and 316 million yuan respectively. Moreover, the bulk of the provision for impairment of the two securities companies was the purchase of resale financial assets, indicating that the relevant risks were concentrated in the stock pledge repurchase business.
While The Pacific Securities Co.Ltd(601099) securities accrued 273 million yuan, of which 396 million yuan was accounts receivable. Fortunately, the purchase of resale financial assets and other creditor’s rights investment turned back 129 million yuan, which finally reduced the current net profit of 204 million yuan.
In addition, the controlling shareholder Sdic Capital Co.Ltd(600061) of Anxin securities also announced on January 28 that the net provision for credit impairment in 2021 totaled 651 million yuan, reducing the net profit by about 488 million yuan, and the above provision has been included in the unaudited financial statements of SDIC Taikang trust and Anxin securities in 2021 previously disclosed.
the risk of stock pledge business still needs to be vigilant
Compared with the announcements of the above securities companies, although Everbright Securities Company Limited(601788) and The Pacific Securities Co.Ltd(601099) securities have the return of tens of millions of yuan of buying and resale financial assets, on the whole, the impact of stock pledge risk on the withdrawal of securities companies is still not small.
Take Guoyuan Securities Company Limited(000728) as an example, in 2021, it withdrew 444 million yuan of impairment provision for financial assets for resale, accounting for 91% of the total withdrawal amount!
According to Guoyuan Securities Company Limited(000728) , this is mainly to analyze the recoverability of stock pledge projects such as ” Shenzhen Capstone Industrial Co.Ltd(000038) ” ” Jiawei Renewable Energy Co.Ltd(300317) ” and ” Jiangsu Lanfeng Bio-Chemical Co.Ltd(002513) ” defaulted in previous years, and increase the provision of expected credit impairment loss according to the further changes of financier’s credit and collateral offset value.
By synthesizing the provision in the first half, third quarter and fourth quarter of 2021, it can be found that in 2021, Sealand Securities Co.Ltd(000750) of the total provision for asset impairment of 422 million yuan, 376 million yuan was purchased and resold financial assets, accounting for 89%.
It is worth noting that the stock pledge projects involved in Sealand Securities Co.Ltd(000750) 2021 can be traced back to 2016 at the earliest. For example, in 2016, Sealand Securities Co.Ltd(000750) carried out two stock pledge repo transactions with financiers with initial transaction amounts of 399 million yuan and 110 million yuan, involving the principal balance of financed funds of 363 million yuan and 81 million yuan respectively, and the provision for asset impairment of 142 million yuan and 13 million yuan respectively in 2021.
While The Pacific Securities Co.Ltd(601099) securities reversed the provision for impairment of financial assets for resale in 2021 by 89.5799 million yuan, but increased the provision for impairment of accounts receivable by 396 million yuan. The Pacific Securities Co.Ltd(601099) securities explained that it includes 393 million yuan of individual provision for impairment, which is mainly for the items of defaulting stock pledge business transferred into accounts receivable.
According to the introduction, The Pacific Securities Co.Ltd(601099) after the comprehensive evaluation of the guarantee and collection of accounts receivable, the default probability / default loss rate method is used to measure the expected credit loss of accounts receivable. This time, the provision for impairment of defaulted stock pledge business transferred into accounts receivable was RMB 404 million, including the provision for impairment of newly withdrawn accounts receivable assets of RMB 257 million and the provision for impairment of accounts receivable transferred from resale financial assets of RMB 146 million.
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