On January 12, Citic Securities Company Limited(600030) released the 2021 annual performance express. According to the express, the operating revenue of Citic Securities Company Limited(600030) will reach 76.57 billion yuan in 2021, with a year-on-year increase of 40.8%; The net profit attributable to the shareholders of the listed company was 22.979 billion yuan, a year-on-year increase of 54.2%; The basic earnings per share was 1.77 yuan, a year-on-year increase of 52.59%.
The reporter of the daily economic news found that Citic Securities Company Limited(600030) did not elaborate on the reasons for the performance growth, but only said that the 50% increase in net profit was due to “China’s economy overcoming the impact of the epidemic, continuing to improve, the vigorous development of the capital market, and the balanced development and steady growth of the company’s investment banking, asset management and other businesses in 2021”.
provision for huge impairment in 2020
In the first three quarters of 2021, Citic Securities Company Limited(600030) achieved a net profit of 17.645 billion yuan, which means that the net profit of Citic Securities Company Limited(600030) in the fourth quarter reached 5.334 billion yuan. In the third quarter of 2021, Citic Securities Company Limited(600030) net profit was 5.447 billion yuan, so the third quarter was basically flat compared with the fourth quarter. In the first three quarters of 2021, Citic Securities Company Limited(600030) net profit increased by 39.37% year-on-year, and the annual performance growth rate in 2021 was higher than that in the first three quarters.
This is partly due to the provision of huge impairment in Citic Securities Company Limited(600030) 2020. According to the 2020 annual report, in 2020, Citic Securities Company Limited(600030) withdrew a total credit impairment loss of 6.581 billion yuan, of which 1.553 billion yuan was withdrawn in the fourth quarter alone. The most eye-catching one is Citic Securities Company Limited(600030) step on leikangdexin. Kangdexin case is an extremely sensational financial fraud case in the A-share market in recent years. Citic Securities Company Limited(600030) suffered huge losses due to the stock pledge repurchase with kangdexin’s shareholders.
Citic Securities Company Limited(600030) disclosed that due to the default of Shenzhen Qianhai Fengshi Yunlan Capital Management Co., Ltd. (hereinafter referred to as Fengshi Yunlan) in the stock pledge repo transaction with the company, Kangde Investment Group Co., Ltd. (hereinafter referred to as Kangde group) also failed to fulfill the guarantee liability in time and repay relevant debts to the company on behalf of Fengshi Yunlan. On January 22, 2019, the company filed a lawsuit with the Beijing High Court, requiring Kangde group to assume joint and several guarantee liability and repay the fund owed to the company of RMB 1.418 billion. Finally, Citic Securities Company Limited(600030) obtained 56.87 million kangdexin shares. Kangdexin has been forcibly delisted by the CSRC and is currently listed in the stock transfer system, Citic Securities Company Limited(600030) so it has suffered huge losses.
no more than 1.5 shares per 10 shares
It is worth mentioning that the performance forecast and performance express of Citic Securities Company Limited(600030) in 2022 came very early. On January 5, Citic Securities Company Limited(600030) announced that it is expected that the net profit attributable to the shareholders of the parent company and the net profit attributable to the shareholders of the parent company after deducting non recurring profits and losses in 2021 will not be lower than the level in the first three quarters of 2021, that is, not less than RMB 17.645 billion and RMB 17.531 billion respectively, an increase of not less than 18.41% and 17.66% respectively compared with the whole year of 2020. In other words, this announcement has only one meaning – there will be no loss in the fourth quarter of 2021.
For the release of this notice, the market is interpreted as cooperating with the issuance of shares as soon as possible. Because there is such a sentence in the announcement: “according to the relevant provisions of the CSRC on the public offering of allotments, the company must meet the issuance conditions such as continuous profits in the last three fiscal years, and this performance pre increase announcement is hereby issued.”
On February 26, 2021, Citic Securities Company Limited(600030) issued the share allotment plan. Both A-Shares and H shares are proposed to be allotted to all shareholders in the proportion of no more than 1.5 shares per 10 shares. The total amount of funds raised in this allotment does not exceed RMB 28 billion. The net amount of funds raised after deducting the issuance expenses is intended to be used to develop capital intermediary business, increase investment in subsidiaries, strengthen the construction of information system and supplement other working capital. Among them, the proposed investment for the development of capital intermediary business is no more than 19 billion yuan.
On November 26, 2021, Citic Securities Company Limited(600030) allotment and public offering of securities were approved and approved by the CSRC.
In addition, in terms of market performance, since the announcement of the allotment, the share price of Citic Securities Company Limited(600030) has been performing poorly, falling by nearly 9% to close in 2021.
