The replenishment of capital by securities companies is in full swing. On March 17, Orient Securities Company Limited(600958) announced that the share allotment plan was approved by the CSRC. At the same time, Sinolink Securities Co.Ltd(600109) also announced that the CSRC approved the company’s non-public offering plan.
In addition, Sinolink Securities Co.Ltd(600109) also announced the institutional research from March 14 to March 17, saying that Opple Lighting Co.Ltd(603515) , GF fund and Wells Fargo fund conducted research on the company through video, and the president, vice president, Secretary of the board of directors and general manager of the finance department received them, introducing in detail the investment direction of non-public offering raised funds, development ideas of self operated business and wealth management business.
Orient Securities Company Limited(600958) to allocate 2.8 shares to 10, Shenneng group promises to subscribe in full
According to the plan issued by Orient Securities Company Limited(600958) in March last year, the total amount of funds raised in this allotment is expected to be no more than 16.8 billion yuan, and the proportion of allotment is no more than 3 shares for every 10 shares. After deducting the issuance expenses, it is proposed to increase the company’s capital, supplement working capital, optimize the asset liability structure, serve the real economy, and comprehensively improve the company’s market competitiveness and anti risk ability.
In January this year, Orient Securities Company Limited(600958) in the reply announcement to the feedback of the CSRC, it supplemented and disclosed the proportion of Allotment: 10 A shares and 2.8 H shares. The total number of shares allotted this time is 1.958 billion, including 1.671 billion A-Shares and 287 million H shares.
The specific fund-raising investment is as follows:
First, no more than 6 billion yuan. It is planned to develop the layout of investment banks in the whole business chain by increasing capital investment in investment banking, including but not limited to underwriting and recommendation business, financial consulting business, project follow-up investment, equity investment funds and other enterprise financing full cycle services.
Second, no more than 6 billion yuan is proposed to increase capital investment in wealth management and securities finance. Including but not limited to wealth management, margin trading, financial technology, etc., to further promote the transformation of the company’s wealth management business.
Third, no more than 3.8 billion yuan. It is planned to further promote the development of self operated investment business by increasing the capital investment in sales and trading business.
Fourth, no more than 1 billion yuan is proposed to be used for other working capital arrangements.
Orient Securities Company Limited(600958) in the announcement, it is pointed out that this reply is valid within 12 months from the date of approval of issuance. In addition, in the stock allotment plan, Orient Securities Company Limited(600958) also pointed out that Shenneng (Group) Co., Ltd., the largest shareholder of the company, promised to fully subscribe for the placeable shares in the stock allotment plan in cash.
before obtaining the fixed increase approval of the CSRC Sinolink Securities Co.Ltd(600109) video survey of reception institutions
Sinolink Securities Co.Ltd(600109) issued an announcement that the CSRC approved the company to issue no more than 700 million new shares in a non-public manner. If the total share capital changes due to the conversion of share capital and other circumstances, the number of shares issued can be adjusted accordingly. The reply is also valid for 12 months.
According to the plan, Sinolink Securities Co.Ltd(600109) the total amount of the fixed increase funds raised this time does not exceed 6 billion yuan (including 6 billion yuan). The net amount of the funds raised after deducting the issuance expenses is intended to be used to increase the company’s capital, supplement working capital and repay debts, expand relevant businesses, expand the company’s business scale, optimize the company’s business structure and improve the company’s market competitiveness and anti risk ability, Promote the realization of the company’s strategic development objectives and the maximization of shareholders’ interests.
It is worth mentioning that Sinolink Securities Co.Ltd(600109) also issued another announcement on the same day, disclosing the institutional research from March 14 to March 17. According to the announcement, Opple Lighting Co.Ltd(603515) , GF fund and Wells Fargo fund investigated the company through video, and the president, vice president, Secretary of the board of directors and general manager of the finance department received them.
It can be seen that Sinolink Securities Co.Ltd(600109) attaches great importance to this institutional research. The three institutions mainly asked six questions, involving not only the company’s fixed investment direction, but also the company’s personnel change, business development ideas and other details.
According to Sinolink Securities Co.Ltd(600109) introduction, the fixed increase is mainly invested in the following five aspects: the investment in capital intermediary business is no more than 2 billion yuan; Investment in securities investment business shall not exceed 1.5 billion yuan; The capital increase to the wholly-owned subsidiary shall not exceed 500 million yuan; The investment in information technology and risk control compliance shall not exceed 500 million yuan; Supplementary working capital and debt repayment shall not exceed 1.5 billion yuan.
Sinolink Securities Co.Ltd(600109) indicates that the issuing objects of this non-public offering are specific objects with no more than 35 (including 35). According to relevant regulations, the final issuing object will be determined by the board of directors and authorized persons of the board of directors and the recommendation institution (lead underwriter) authorized by the general meeting of shareholders according to the subscription quotation of the issuing object and the principle of price priority.
From the perspective of institutions participating in the fixed growth of securities companies since 2021, fund companies are one of the main forces, but there is no lack of industrial capital. For example, GF fund of Sinolink Securities Co.Ltd(600109) in this survey participated in Zheshang Securities Co.Ltd(601878) private placement in May last year. It subscribed Zheshang Securities Co.Ltd(601878) 1883 million shares at a cost of about 200 million yuan, with a fixed increase price of 10.62 yuan / share, and the share sales restriction period of 6 months. In addition, Zhejiang Longsheng Group Co.Ltd(600352) group and Time Publishing And Media Co.Ltd(600551) media also participated in the fixed increase of Zheshang Securities Co.Ltd(601878) at that time.
Therefore, the three institutions investigated Sinolink Securities Co.Ltd(600109) and asked about the fixed increase, which was interpreted by the market as being interested in the operation and development of Sinolink Securities Co.Ltd(600109) after the fixed increase regardless of whether they participated or not. From the past performance of participating in the fixed increase of securities companies’ shares, due to the certain discount given to the fixed increase price compared with the market price and the good performance of the securities industry in recent years, even if the market fluctuates, the fixed increase price still brings a certain safety cushion to the institution – Zheshang Securities Co.Ltd(601878) 2021 announced the completion of the fixed increase on May 22, 2021. At that time, the market price was close to 13 yuan per share, about 20% higher than the fixed increase price. Despite the recent market decline, the closing price of Zheshang Securities Co.Ltd(601878) 3 on March 17 is still above the fixed increase price.
institutions concerned about low leverage and other issues, and the State Council stated that “the leverage ratio did not affect the company’s roe”
In addition, the three organizations also asked Sinolink Securities Co.Ltd(600109) executives the following questions:
1. The company has recently introduced a new CIO. What is the company’s plan?
Sinolink Securities Co.Ltd(600109) answer: the company appoints Mr. Wang Hongtao as the chief information officer of the company until the expiration of the current board of directors. Mr. Wang Hongtao has rich experience in information technology and management in the securities industry, which will be conducive to the investment and development of the company in the field of information technology.
2. What is the company’s development idea for self operated business?
Sinolink Securities Co.Ltd(600109) answer: the company strictly controls investment risks and carries out various investment businesses on the premise of compliance.
In terms of fixed income investment, the company has made fine management of allocation positions according to market conditions, actively grasped all kinds of low-risk trading opportunities and steadily arranged new businesses. In terms of equity investment, the company maintains a stable investment style, deeply expands investment and research capabilities, fully grasps market opportunities, timely adjusts investment strategies, and effectively disperses investment risks.
3. What are the reasons for the company’s low leverage ratio?
Sinolink Securities Co.Ltd(600109) answer: the current asset scale of the company is in the middle of the industry. Compared with its peers of securities companies with the same scale, the leverage ratio of the company is basically the same. The funds used by the brokerage industry to improve leverage are mainly used in the securities proprietary business. The company is relatively cautious about the securities proprietary business to reduce the impact of proprietary business on the company’s performance. At the same time, the company has maintained a good level of roe and high operating efficiency, and the leverage ratio has not affected the company’s roe.
4. What are the current development ideas of the company’s wealth management business?
Sinolink Securities Co.Ltd(600109) answer: the company’s wealth management business takes “gathering, coordination and efficiency” as the overall policy, increases investment in the construction of teams, it and business platforms, and establishes a hierarchical management mechanism for business units and business lines; Upgrade and form a new business model of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integration, enrich and improve the process flow of product line, form a diversified product system with national gold characteristics, and provide closed-loop services for the whole life cycle of high net worth customers’ wealth. With the help of financial technology and digital finance, Wuxi Online Offline Communication Information Technology Co.Ltd(300959) cooperates to gather resources, improve delivery efficiency, and promote platform + manual and precision marketing strategies. While steadily operating all kinds of daily businesses, we will focus on the pilot preparations for new businesses and fund investment consulting business, and improve the investor protection system. The company has firmly transformed to the direction of wealth management business, and has achieved preliminary results in the transformation of wealth management.
5. From the perspective of customers, how can the company do a good job in wealth management business?
Sinolink Securities Co.Ltd(600109) answer: since 2018, the company has begun to lay out the transformation of wealth management. At the beginning of the transformation, the company’s wealth management committee has established a customer layered service system to clarify the logic and rules of customer circulation and outsourcing services, complete the online service aggregation, improve the overall service efficiency and ability, and form a business management structure combining “article” and “block”. From 2019 to 2020, the wealth management committee adopted the strategy of “both offensive and defensive, cultivating internal skills” and classified customers hierarchically based on am matrix
Starting from, further optimize and improve the customer layered service system, optimize and upgrade the terminal service capability of commission Jinbao, launch the important functions such as investment consulting studio and iterative financial mall, improve the performance appraisal policy, try to organize fission and other modes, stimulate the “endogenous power”, increase the investment in it construction, and reserve the scientific and technological team and resources. According to the company’s 2021 semi annual report, the number of clients of the company’s wealth management business increased by 10% compared with the end of the previous year, the assets of individual clients of wealth management business increased by 13% compared with the end of the previous year, and the number of clients and AUM of client assets maintained stable growth; At the end of the reporting period, the sales volume of equity products increased significantly, an increase of 130% over the same period of last year, and the ownership of equity products reached a record high, an increase of 33% over the end of last year.
