Guangdong Golden Dragon Development Inc(000712) ( Guangdong Golden Dragon Development Inc(000712) . SZ) announced on March 9 that the company achieved an operating revenue of 1.006 billion yuan in 2021, a decrease of 39.84% over the previous year; The net profit attributable to the shareholders of the listed company was -131 million yuan, from profit to loss. In addition, the company plans to distribute a cash dividend of 0.10 yuan for every 10 shares to all shareholders, without bonus shares or conversion.
The reporter of economic information daily noted that Guangdong Golden Dragon Development Inc(000712) 2021 changed from profit to loss due to the punishment of its holding subsidiary Zhongshan securities, the relevant business was suspended and the performance fell sharply.
Guangdong Golden Dragon Development Inc(000712) main business is securities company business. Up to now, the company holds 67.78% equity of Zhongshan securities and 40% shares of Dongguan securities. The company mainly relies on Zhongshan securities and Dongguan securities to carry out securities business. As of the end of the reporting period, Zhongshan securities has set up 22 branches and 66 securities business departments, Dongguan securities has set up 29 branches and 59 securities business departments, and its business outlets are mainly distributed in the Pearl River Delta, Yangtze River Delta and Bohai economic circle.
regulatory punishment and suspension of multiple businesses
During the reporting period, Zhongshan securities, a holding subsidiary, realized an operating income of 1.051 billion yuan and a net profit attributable to the owner of the parent company of – 492088 million yuan. In 2020, Zhongshan securities achieved an operating revenue of 1.742 billion yuan, an increase of 10.57% over 2019, and a net profit attributable to the owner of the parent company of 256 million yuan, an increase of 8.54%.
The sharp decline in the performance of Zhongshan securities is related to the suspension of its related business.
Specifically, according to the announcement of Guangdong Golden Dragon Development Inc(000712) 2020 on August 20, Zhongshan securities received the decision on administrative supervision measures, and Shenzhen Securities Regulatory Bureau found that Zhongshan securities had the following problems: first, one director did not have the qualification for senior management and actually performed senior management duties; Second, the company changed the company’s seal and contract management approval process without performing the procedures specified by the company; Third, the management of seals is chaotic, and there are situations such as unclear approval authorization and process for the use of company seals, failure to strictly implement the requirements for double custody, and use of seals without completing the approval process; Fourth, other corporate governance and internal management problems such as failure to report to the board of supervisors as required, imperfect personnel salary management and inadequate management of related party transactions.
According to relevant regulations, Shenzhen Securities Regulatory Bureau has taken the following supervision and management measures: within one year from the date of the decision of this administrative supervision and management measure, suspend the filing of new capital increase management products and suspend new capital consumption businesses (including stock pledge repurchase business, margin trading business, self operated business, underwriting and recommendation business requiring follow-up investment or underwriting), Suspend counterparty transactions with related parties with its own funds or asset management funds, including bond pledge repo transactions. At the same time, Lin Bingcheng, chairman and director of the Management Committee of Zhongshan securities, Hu yinglu, President and other relevant responsible persons were punished.
In addition, the reporter of the economic information daily noted that from the perspective of the composition of Guangdong Golden Dragon Development Inc(000712) operating income, the net income from handling fees and commissions and the income from changes in fair value of the company decreased significantly year-on-year, which were all affected by Zhongshan securities.
Guangdong Golden Dragon Development Inc(000712) said that the net profit attributable to the parent company was mainly due to the fact that Zhongshan securities received the administrative supervision letter from the regulatory department in August 2020, and the new capital consuming business was suspended, resulting in a large decline in operating income. In addition, the valuation of some bonds held by Zhongshan securities fell, resulting in losses from changes in fair value.
joint stock company Dongguan securities will be listed soon
According to the announcement, Guangdong Golden Dragon Development Inc(000712) Dongguan securities, which holds 40% shares, is one of the first underwriting and recommendation institutions in China. Its business scope covers brokerage, investment consulting, financial consulting, underwriting and recommendation, securities self operation, asset management, fund consignment, futures IB, direct investment, financing and securities lending and other fields. Dongguan securities wholly owns Dongzheng Jinxin Investment Management Co., Ltd. and Dongguan Dongzheng Hongde Investment Co., Ltd., and participates in Hualian Futures Co., Ltd.
The reporter of economic information daily found that the performance of Dongguan securities has increased steadily in the past three years by consulting the annual report of Guangdong Golden Dragon Development Inc(000712) 20192021.
From 2019 to 2021, the joint-stock company Dongguan securities achieved operating revenue of RMB 2.086 billion, RMB 3.165 billion and RMB 3.701 billion respectively; The net profits attributable to the owners of the parent company were 624 million yuan, 782 million yuan and 997 million yuan respectively.
It is worth noting that the IPO of Dongguan securities has passed the meeting. On February 24, 2022, the IPO application of Dongguan securities was approved by the 19th meeting of the issuance examination committee of the 18th Issuance Examination Committee of the CSRC in 2022. Nearly seven years have passed since Dongguan securities first submitted its IPO application to the CSRC in 2015.
Dongguan securities plans to be listed on the main board of Shenzhen Stock Exchange. According to the prospectus issued by the company in 2017, the company plans to issue no more than 167 million shares to the public. All the raised funds are intended to be used to supplement the company’s capital, so as to expand the business scale, optimize the business structure and enhance the company’s market competitiveness and anti risk ability.
The announcement shows that in 2021, Dongguan securities fully implemented the “1 + 3 + n” three-year development strategy to drive the overall work, the steady development of various businesses and the orderly promotion of IPO work. Dongguan securities was again rated as class A and class A in the classified evaluation of securities companies; Class B in the evaluation of cultural construction practice of securities companies in 2020; Dongguan securities has become one of the four grade A-rated enterprises in the city’s state-owned enterprises in the assessment and evaluation of the business performance of the heads of municipal enterprises in 2020 released by Dongguan SASAC.
