Central China Securities Co.Ltd(601375) welcomes the new president.
On April 29, Central China Securities Co.Ltd(601375) announced that the company plans to appoint Li Zhaoxin as president and deputy director of the Executive Committee of the company through the selection procedures such as organizing registration, qualification examination and comprehensive evaluation. Previously, the company issued a recruitment announcement to select the president of the company for social marketization. It is understood that Li Zhaoxin has some supervision experience and has been a member of Central China Securities Co.Ltd(601375) Party Committee since November 2017.
On the same day, Central China Securities Co.Ltd(601375) also announced a fixed increase plan of 7 billion yuan. The purposes of fund-raising include capital intermediary business, investment and trading business, capital increase of wholly-owned subsidiaries at home and abroad, etc Central China Securities Co.Ltd(601375) said the move was to enhance the company’s market competitiveness and anti risk ability.
Central China Securities Co.Ltd(601375) also released the first quarter report of 2022. The report shows that the company’s revenue in the first quarter was 388 million yuan, a year-on-year decrease of 63.90%; The net profit attributable to the shareholders of the listed company was 184329 million yuan, a year-on-year decrease of 84.76%. For the decrease in revenue, the company said that it was mainly due to the decrease in the income of secondary market investment business, investment banking business and subsidiary commodity sales business in the current period.
public selection and appointment of president
On April 29, 2022, Central China Securities Co.Ltd(601375) announced that upon nomination by the remuneration and Nomination Committee of the board of directors, the seventh meeting of the seventh board of directors of the company reviewed and agreed to appoint Li Zhaoxin as president and deputy director of the Executive Committee of the company. The term of office starts from the date of deliberation and approval of the current board of directors to the expiration of the term of office of the current board of directors. Li Zhaoxin has no relationship with the company’s directors, supervisors, senior managers, actual controllers and shareholders holding more than 5%.
Previously, Central China Securities Co.Ltd(601375) issued an announcement on the open recruitment of president. “In order to implement the relevant deployment requirements of the Central Committee, Henan provincial Party committee and Henan provincial government on deepening the reform of state-owned enterprises and establish a market-oriented personnel selection and employment mechanism, one president of the company is selected and employed for the social market according to the needs of Central China Securities Co.Ltd(601375) reform and development and the regulations on the management of professional managers of financial enterprises in Henan Province.” On April 4, Central China Securities Co.Ltd(601375) published the above recruitment announcement on the official website. The registration time is from the date of announcement to April 16, 2022.
According to the requirements of the announcement, the basic quality standards for the recruitment of President include high political quality and professional ethics, qualifications required for holding corresponding positions, professional knowledge and work experience suitable for holding positions, organizational management ability and professional ability commensurate with holding positions, good physical and mental quality and work quality.
In addition, the qualification criteria for other positions also include: in principle, having been engaged in relevant financial work for 10 years or more, understanding the current situation and development trend of the securities industry, being familiar with the operation mode of securities companies, having served as senior managers (including equivalent positions) of large international and Chinese financial institutions for more than 3 years or at the department level or above of industry regulators, and having relatively rich social resources in the industry. It is worth mentioning that one of the criteria is: management experience in domestic and foreign listed securities companies is preferred.
Central China Securities Co.Ltd(601375) said that the company signed employment contracts, labor contracts, letters of responsibility for business performance objectives and other relevant legal documents with the employed personnel, and implemented tenure system and contractual management. The employment agreement specifies the rights, obligations and responsibilities of the employed personnel, as well as the performance indicators, task objectives, assessment standards, remuneration, performance guarantee, reward and punishment methods and termination conditions of the term of office and each year, as well as the conditions for post dismissal.
It is understood that Li Zhaoxin has been engaged in financial work in Henan reform through labor bureau and Henan Prison Administration Bureau from July 1991 to October 2004, and worked in Henan SASAC from October 2004 to November 2017. He has successively served as deputy director of property right management office, researcher of planning and development office and director of comprehensive office (Research Office). Since November 2017, he has been a member of Central China Securities Co.Ltd(601375) Party committee. From January 2018 to now, he has served as Central China Securities Co.Ltd(601375) chief accountant and financial director. He has been a member of the Executive Committee of the company since January 2022. At present, he is also a member of the professional committee of financial accounting of China Securities Association.
proposed non-public fund raising not exceeding 7 billion yuan
April 29, Central China Securities Co.Ltd(601375) also announced the fixed increase plan of A-Shares
The funds raised in this non-public offering will not exceed 7 billion yuan (including 7 billion yuan). After deducting the issuance expenses, all of them will be used to supplement the company’s capital and working capital, so as to enhance the company’s market competitiveness and anti risk ability.
Specifically, Central China Securities Co.Ltd(601375) the raised funds are mainly used in the following aspects: it is proposed to use no more than 3.3 billion yuan to develop capital intermediary business; It is proposed to use no more than 2.1 billion yuan to develop investment and trading business; It is proposed to use no more than 800 million yuan to increase the capital of wholly-owned subsidiaries at home and abroad; It is proposed to use no more than 200 million yuan for information system construction and compliance risk control investment; It is proposed to use no more than 600 million yuan to repay debts and supplement working capital.
As for the background and purpose of this financing, Central China Securities Co.Ltd(601375) said that the superposition effect of major strategies in Henan Province is increasing, the comprehensive competitive advantage is expanding, and the economic growth potential is huge. During the 14th Five Year Plan period, Henan Province clearly proposed to cultivate multi-level capital market and diversified financial subjects, deepen the project of “introducing gold into Henan” and improve and strengthen the “financial Henan army”.
As the only legal person securities company registered in Henan Province, the company urgently needs to enhance its capital strength through this non-public offering and seize the 14th five year plan of Henan Province “Develop opportunities, deeply participate in and serve the national strategy; further improve the company’s market competitiveness and anti risk ability, and bring richer returns to all shareholders while continuously improving the ability to serve the real economy and promote the better and faster development of the company’s business.” Central China Securities Co.Ltd(601375) indicates.
Central China Securities Co.Ltd(601375) said that after the completion of the non-public offering, the company’s total assets, net assets and net capital will increase accordingly, and the asset liability ratio will also decrease, which will help to optimize the company’s capital structure, effectively reduce financial risks, and achieve more stable operation and healthy and sustainable development.
