Another brokerage aimed at the A-share market.
Donghai securities announced on March 11 that the company signed a listing guidance agreement with China Securities Co.Ltd(601066) securities on the same day, and China Securities Co.Ltd(601066) securities submitted the company’s listing guidance filing materials to Jiangsu regulatory bureau of China Securities Regulatory Commission on the same dayP align = “center” Changzhou local securities companies sprint for a shares
The predecessor of Donghai securities is Changzhou securities established in 1993. In May 2003, at the turning point of the industry tide, Changzhou securities was renamed “Donghai Securities Co., Ltd.” in 2005, Changzhou securities became the first batch of the tenth innovative pilot securities company in China. In July 2013, the company was restructured into “Donghai Securities Co., Ltd.”.
On July 27, 2015, Donghai securities landed on the new third board market and became the leader of the new third board with the first net profit of that year.
As of December 31, 2020, Donghai securities has a total of 70 securities business departments, distributed in 20 provinces (municipalities / autonomous regions) across the country. There are 22 in Jiangsu, Zhejiang, Zhejiang, Tianjin, respectively, and 2 in Jiangsu, Zhejiang, Zhejiang, and Shanghai, respectively.
as of December 31, 2020, Donghai securities has seven branches in six provinces and regions: one in Shanghai, two in Jiangsu, and one in Henan, Guangdong, Fujian and Shanxi
Before landing on the new third board in 2015, the voice of A-share listing of Donghai securities had sounded. In 2007, Zhu Kemin, then chairman of Donghai securities, said at the staff training conference that Donghai securities planned to be listed in 2008 and would take 3-5 years to build Donghai securities into a securities company with international influence.
However, due to the heavy burden in history, the listing of Donghai securities has not made progress. After 2015, Donghai securities exposed many risks in its operation. Bond underwriting and investment also stepped on thunder frequently, superimposing the changes of market conditions, and the company’s performance in recent years is not optimistic; From 2015 to 2018, the net profit attributable to the parent company of Donghai securities after deducting non profits was RMB 1.816 billion, 425 million, 434 million and 470803 million respectively.
Over the past two years, the performance of Donghai securities has improved significantly. According to the 2020 annual report, Donghai securities achieved an operating revenue of 2.27 billion yuan, a total profit of 718 million yuan and a net profit attributable to the shareholders of the parent company of 439 million yuan, a year-on-year increase of 596.40%.
Proprietary business and brokerage business support half of the income of Donghai securities. According to the 2020 annual report of Donghai securities, the income from securities brokerage business accounted for 633 million yuan, accounting for 27.92% of the operating income; The self operated business income was 941 million yuan, accounting for 41.49% of the operating income; In addition, the operating income of investment banking and credit trading accounts for about 15%.
According to the unaudited financial statements of 2021 released by Donghai securities in January, Donghai securities realized an operating revenue of 1.078 billion yuan and a net profit of 151 million yuan in 2021. In terms of income structure, the company’s net income from fees and commissions is 953 million yuan, including 533 million yuan from brokerage fees and 358 million yuan from investment banking fees. In 2021, the company’s investment income reached 533 million yuan, still maintaining a high level, but the profit and loss from changes in fair value decreased from 472 million yuan in 2020 to – 487 million yuan in 2021.
Donghai Securities said in its announcement on March 11 that the audited operating income of the company in 2018, 2019 and 2020 was 1.492 billion yuan, 1.642 billion yuan and 2.269 billion yuan respectively, and the net profit attributable to the shareholders of the listed company after deducting non recurring profits and losses was 470803 million yuan, 236117 million yuan and 4244548 million yuan respectively, Meet the financial conditions for IPO p align = “center” massive changes pave the way for listing
Over the past two years, Donghai securities has made great efforts in personnel, equity and internal control, and the company’s operation has also been significantly improved. Finally, it has launched an impact on A-Shares again.
At the beginning of 2020, the chairman and President of Donghai securities changed. Qian Junwen served as party secretary and chairman, and Yin Jianhua served as president.
According to public information, Qian Junwen, a doctoral student, once served as the director of the collection, management and science and Technology Department of Jiangsu Local Taxation Bureau, the Secretary and director of the Party group of Jiangsu Changzhou Local Taxation Bureau, the Deputy Secretary of the Party committee and deputy director (director level) of Changzhou Municipal Taxation Bureau of the State Administration of taxation. Yin Jianhua is from the securities regulatory system. He used to be the director of the listing Department of Qingdao regulatory bureau of China Securities Regulatory Commission, member of the Party committee, assistant to the director and deputy director; From October 2016 to December 2019, he was a member of the Party committee and Secretary of the Discipline Inspection Commission of Jiangsu regulatory bureau of China Securities Regulatory Commission.
After the new management took over, Donghai securities has significantly improved its operation and compliance. In July 2021, the China Securities Regulatory Commission announced the classification evaluation results of securities companies in 2021, which showed that the rating of Donghai securities was upgraded from CC to a.
In addition to the drastic reform in personnel, Donghai securities also made great moves in equity. In the second half of 2021, Donghai securities completed a new round of fixed growth, raising 1.425 billion yuan. The raised funds are used to develop capital intermediary business and self operated investment business, which is the first equity financing of Donghai securities since its listing on the new third board in 2015.
Donghai Securities said in the relevant announcement that the net capital scale of the company at the end of 2019 and 2020 was 6.664 billion yuan and 7.600 billion yuan respectively, lower than the average level of 30.782 billion yuan and 34.902 billion yuan of listed securities companies. The net capital growth rate of Donghai securities in the past two years was 10.71%, lower than the average growth rate of listed securities companies of 16.31%. Compared with listed securities companies, the company’s net capital scale is small and the growth rate is not enough. The targeted issuance will increase the company’s net assets by 15.88% compared with the end of 2020, consolidate capital strength and support the sustainable development of business.
The directional issuance is Donghai securities, which actively responded to the call of China Securities Regulatory Commission on replenishing capital of securities companies, enriched net capital, enhanced risk resistance and improved business development ability. The raised funds after deducting the issuance expenses will be used to increase the capital of Donghai securities and supplement the working capital, so as to effectively improve the profitability and anti risk ability of the company, enrich the cash flow of the company, optimize the financial structure of the company, ensure the continuous operation and rapid development of the company and enhance the competitiveness of the company.
It is noteworthy that there are five investment institutions participating in the fixed increase. Except for the subscription of two shares of Dongshan financial holding capital of 500 million yuan, the other four are local institutions in Changzhou, including Changzhou investment group, Changzhou Industrial Investment Group, Changzhou Hetai equity investment and Jiangsu Jinfeng Shuini group.
as a local broker in Changzhou, Donghai securities has become more aware of the value of taking root in Changzhou in recent years. The company has established and thoroughly implemented the strategy of “taking root in Changzhou and connecting with Shanghai”, and adhered to the strategy of regional coordinated development and differentiated competition
Qian Junwen, chairman of Donghai securities, previously introduced that as a local state-owned enterprise, Donghai securities plays an important role in local economic development. In 2020, Donghai securities established Changzhou headquarters and Changzhou regional business coordination committee to comprehensively coordinate and promote Changzhou regional branches, investment banking, debt issuance, asset management, direct investment and other business in Changzhou. After more than a year of hard work and expansion, Donghai securities has achieved good results in serving Changzhou’s real economy.
According to public information, Donghai securities issued 20 corporate bonds for Changzhou issuers in 2020, raising 15.353 billion yuan.
On May 17, 2021, the bookkeeping issuance of “Changzhou Transportation Industry Group Co., Ltd. 2021 public issuance of corporate bonds (phase I)” jointly undertaken by Donghai securities, with an issuance scale of 800 million yuan, an issuance period of 3 years and a coupon rate of 3.72%, setting the lowest coupon rate of AA + rated 3-year small public corporate bonds in China since 2021. In June 2021, Donghai securities, as the co sponsor and lead underwriter of Changchai Company Limited(000570) , assisted it to successfully complete the non-public offering and listing of shares, raising a total of 635 million yuan.
