With Ruida Futures Co.Ltd(002961) a paper exit announcement, the “Three Kingdoms struggle for hegemony” for the bankruptcy and reorganization of Wangxin securities came to an end.
After hours on December 24, Ruida Futures Co.Ltd(002961) announced that according to the results of due diligence on wechat securities and careful evaluation, it decided not to participate in the public recruitment and selection of investors in the bankruptcy reorganization of wechat securities, and sent the communication letter on terminating the public recruitment and selection of investors in the bankruptcy reorganization of wechat securities to the administrator.
Not long ago, on November 5, Ruida Futures Co.Ltd(002961) guanxuan passed the preliminary screening of investors in the reorganization of Wangxin securities and became the third company to participate in the competition after Haomai wealth and Beijing Compass Technology Development Co.Ltd(300803) . So far, the scene of “three countries competing for hegemony” in which three-party sales institutions, financial data terminal companies and futures companies strive for a securities license has become a hot topic in the capital market.
After due diligence and reverse due diligence, Ruida announced to give up
Before announcing the public recruitment of investors who withdrew from the bankruptcy reorganization of wechat securities, Ruida Futures Co.Ltd(002961) when answering the question about whether the company is sure to win wechat securities on the investor relations platform on December 10, “At present, the company is carrying out due diligence on Wangxin securities as required and accepting the reverse due diligence of the manager. The investors in the bankruptcy reorganization of Wangxin securities are publicly recruited and selected for the society, with the participation of multiple investors. There is still uncertainty about whether they can become the final reorganization investors.”
As of the closing on December 24, Ruida Futures Co.Ltd(002961) closed at 24.71 yuan, with a total market value of 11 billion yuan. Within one year, its share price was as high as 30.1 yuan and the lowest point was 18.41 yuan. In addition, according to the quarterly report of the third quarter of Ruida Futures Co.Ltd(002961) 2021, the scale of its public funds is 290 million yuan. In the third quarter, the main business income was 1.653 billion yuan, a year-on-year increase of 116.04%; Deduct non net profit of RMB 358 million, a year-on-year increase of 183.59%; In the third quarter of 2021, the company’s main revenue in a single quarter was 590 million yuan, a year-on-year increase of 84.79%; The net profit attributable to the parent company in a single quarter was 132 million yuan, a year-on-year increase of 119.49%; The non net profit deducted in a single quarter was 125 million yuan, a year-on-year increase of 149.19%; The debt ratio was 86.49%, and the investment income was 158 million yuan.
Let’s look at the main business of Ruida Futures Co.Ltd(002961) , covering futures brokerage business, futures investment consulting business and asset management. And Ruida Futures Co.Ltd(002961) also actively carried out risk management business, overseas financial service business and public fund business. According to the statement made by the Board Secretary of Ruida when answering investors, Ruida International Securities (Hong Kong) Co., Ltd. submitted the application materials for class I securities trading license to the Hong Kong Securities Regulatory Commission in May 2021, and then replied to the relevant inquiries of the Hong Kong Securities Regulatory Commission. At present, it is still waiting for the approval of the Hong Kong Securities Regulatory Commission.
Undeniable, license is the most important threshold for securities business. The license of Wangxin securities can help the acquirer expand business space and open the door to the era of wealth management. In addition, it has to be mentioned that the difficulty factor of applying for domestic brokerage license is much greater than that of applying for overseas brokerage license. According to the data of HKEx in November, there are 640 licensed securities brokers in Hong Kong, while the data of China Securities Association in the first half of 2021 shows that there are 139 A-share licensees. Ruida Futures Co.Ltd(002961) actively applied for licenses abroad, but gave up the “cake” of Wangxin securities after due diligence, which made the market speculate what was found in the due diligence and anti due diligence?
the restructuring of wechat securities is not favored by the industry
According to preliminary estimates, the bankruptcy and reorganization of Wangxin securities requires at least RMB 1 billion. Due to the small volume, high debt and non prominent business, the industry was not optimistic about the recruitment of restructuring investors at first, but Wangxin securities not only received the registration of a number of intended restructuring investors, but also three institutions passed the preliminary screening of restructuring investors.
Wangxin securities was established on April 18, 1995 with a registered capital of 500 million yuan. According to its 2020 annual report after audit, Wangxin securities realized an operating revenue of 51.6917 million yuan, a net profit of – 59.7981 million yuan, a total asset of 703 million yuan, a total liability of 4.279 billion yuan and a net asset of – 3.576 billion yuan last year. In the classification results of securities companies by CSRC in 2018, wechat securities was rated as CCC, and then from 2019 to 2021, wechat securities was continuously rated as grade D, ranking the bottom of the whole industry.
According to the financial report of the first half of 2021, Beijing Compass Technology Development Co.Ltd(300803) company’s Book Monetary Funds and short-term financial products have an unlimited fund of no less than 1 billion; Ruida Futures Co.Ltd(002961) the book monetary capital is 9.024 billion yuan; The book capital of Haomai wealth is about 3.396 billion yuan. As the most “rich and powerful” company among the three competitors, Ruida Futures Co.Ltd(002961) took the lead in withdrawing.
As Ruida Futures Co.Ltd(002961) was the first to withdraw from the competition for bankruptcy and reorganization of Wangxin securities, the pattern of three institutions competing for a brokerage license was broken, and only Haomai wealth and Beijing Compass Technology Development Co.Ltd(300803) were left after passing the preliminary screening.
Beijing Compass Technology Development Co.Ltd(300803) is a financial data terminal developer with certain advantages in customer resources and traffic. Some employees said that Beijing Compass Technology Development Co.Ltd(300803) main business and securities business are highly coordinated. The new third board listed companies are easy to buy wealth, and their main business is the sales of public and private funds. If they win Wangxin securities, it will greatly expand their business development space.
Ruida Futures Co.Ltd(002961) Guangdong branch was punished
As the most “wealthy” and the first competitor to withdraw from the bankruptcy reorganization of wechat securities, Ruida Futures Co.Ltd(002961) branch was issued a number of warnings and penalties by the CSRC in November.
According to the decision on administrative supervision measures of Guangdong regulatory bureau published by China Securities Regulatory Commission, Ruida Futures Co.Ltd(002961) Guangdong branch has a variety of situations, including: applying for opening the company’s customer relationship management system account for individual intermediaries; Some natural person intermediaries clock in and work on site at Ruida Futures Co.Ltd(002961) Guangdong branch. In addition to the brokerage commission paid by Ruida Futures Co.Ltd(002961) Guangdong Branch, they are paid corresponding remuneration according to the assessment standards for business personnel of the company’s internal brokerage line; Ruida Futures Co.Ltd(002961) Guangdong branch sells Ruida Futures Co.Ltd(002961) asset management products by some natural person intermediaries and pays them commissions for the sales of asset management products.
Guangdong Securities Regulatory Bureau determined that the above situation reflected that there were loopholes in the intermediary management and business risk control of the branch, which violated the provisions of paragraph 2 of Article 10 of the measures for the administration of futures practitioners (CSRC Order No. 48) and Article 56 of the measures for the supervision and administration of futures companies (CSRC Order No. 155). In accordance with Article 109 of the measures for the supervision and administration of futures companies, it is decided to take administrative regulatory measures to order Ruida Futures Co.Ltd(002961) Guangdong branch to make corrections. Ruida Guangdong branch shall submit a written rectification report to the CSRC within 30 days from the date of receiving the decision. In addition, Xiao zanwei, as the person in charge of Ruida Futures Co.Ltd(002961) Guangdong Branch, failed to be diligent and responsible, and was directly responsible for the above situation. Guangdong Securities Regulatory Bureau issued a warning letter to him.
(Financial Associated Press)
