news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

China Fund News reporter Maureen

As Zheshang Securities took over, Guodu Securities had another share listed for sale!

Recently, JD.com's judicial auction website showed that 19.291 million shares of Guodu Securities will be auctioned on August 25, with a starting price of 25.2713 million yuan, equivalent to about 1.31 yuan per share.

The announcement shows that the above-mentioned Guodu Securities' New Third Board stocks that are about to be auctioned are unrestricted tradable shares and are held by Beijing's Haidian District Xinhua Agriculture and Industry Company.

As of press time, no one has signed up for the equity auction, but more than 1,300 people are watching and seven people have set reminders.

As of the close of July 25, Guodu Securities closed at 1.34 yuan per share, not much different from the current auction reserve price.

Zheshang Securities just became the largest shareholder

According to the auction details, the above-mentioned shares being auctioned have been judicially frozen, and the court enforced the auction based on the application of the applicant.

Details disclosed in the execution ruling show that there was a pledge contract dispute between Quanzhou Bank Kaiyuan Branch and Beijing Haidian District Xinhua Agricultural and Industrial Company, but the latter did not execute according to the court's decision.

Finally, the court ruled to freeze and transfer the bank deposits of approximately RMB 41.47 million and interest of the executed party, Beijing Haidian District Xinhua Agricultural and Industrial Co., Ltd., or to seal up, seize, freeze, transfer, auction, and sell the property of corresponding value of the executed party, Beijing Haidian District Xinhua Agricultural and Industrial Co., Ltd.

Industry insiders believe that after Zheshang Securities took over Guodu Securities, the previously entrenched old shareholders chose to exit one after another, which may be a good thing for Zheshang Securities.

On July 17, Zheshang Securities announced that the China Securities Regulatory Commission has accepted Guodu Securities' application to change its major shareholder and actual controller in accordance with the law. Zheshang Securities will become the largest shareholder of Guodu Securities, holding 34.25% of the shares.

According to previous announcements, the shares of Guodu Securities held by Zheshang Securities were acquired from different shareholders such as Chongqing International Trust and Tongfang Venture Capital through transfers and auctions in three times, with a total cost of about 5.128 billion yuan. Data shows that the average transaction price of the three acquisitions was 2.52 yuan per share.

In other words, if the shares of Guodu Securities mentioned at the beginning of the article are won at the reserve price, it means that the new shareholder's holding cost will be lower than that of Zheshang Securities.

Investment banking and asset management businesses have suffered setbacks

On July 18, Guodu Securities released its unaudited semi-annual financial report for 2024. During the reporting period, the company achieved operating income of 693 million yuan and net profit of 345 million yuan, down 16.74% and 19.43% respectively from the same period last year.

In terms of business, the company's self-operated business income rose slightly in the first half of the year, while the performance of other main business lines declined to varying degrees. Among them, the net income from brokerage business fees was 100 million yuan, a year-on-year decline of 17.58%; the net income from investment banking business fees was 3.1791 million yuan, a year-on-year decline of 77.52%; the net income from asset management business fees was 1.6545 million yuan, a year-on-year decline of 40.22%.

It is worth noting that in April last year, Guodu Securities was ordered to correct its violations and restrict its business activities due to suspected violations of laws and regulations in corporate governance and investment banking business.

According to the previous notification, the Beijing Securities Regulatory Bureau decided to suspend Guodu Securities' sponsorship and underwriting business related to stock issuance, as well as corporate bond underwriting business, asset securitization business, and non-listed public company recommendation business from April 12, 2023 to October 11, 2023.

In addition, in May 2023, Guodu Securities was also punished by the Beijing Securities Regulatory Bureau for problems in its private asset management business. The content of the regulatory letter shows that Guodu Securities' private asset management business has the following problems: First, some products have no clear termination date and the duration is indefinite; second, the transaction management system is not implemented in a standardized manner, and some investment decision-making processes are not implemented in place; third, the stress test interval regulations do not meet the requirements, and the liquidity risk emergency plan is not updated in a timely manner.

The investment banking business was put on hold and the asset management business was warned. The series of fines undoubtedly exposed many problems in Guodu Securities' internal control and compliance management. Judging from the sharp decline in revenue from asset management and investment banking businesses in the first half of this year, Guodu Securities was "seriously hurt."

However, Zheshang Securities stated in the announcement that the acquisition of Guodu Securities will help the company optimize resource allocation, strengthen resource integration, further enhance the influence and market competitiveness of the company's securities business, give full play to the synergy between the company's existing business advantages and Guodu Securities' business, and benefit the interests of the company and investors.

According to the announcement of Guodu Securities, if the board of directors is reorganized in the future, Zheshang Securities may become the controlling shareholder of Guodu Securities, and Jiaotong Group, the actual controller of Zheshang Securities, may become the actual controller of Guodu Securities. It is reported that after this acquisition, Zheshang Securities will adjust the main business of Guodu Securities; adjust the board of directors, supervisory board and management; improve the existing organizational structure; and make major disposals of Guodu Securities assets.

Editor: Xiaomo

Audit: Wooden Fish

Copyright Notice

"China Fund News" enjoys the copyright to the original content published on this platform. Reproduction without authorization is prohibited, otherwise legal liability will be pursued.

Contact person for authorized reprint cooperation: Mr. Yu (Tel: 0755-82468670)