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From China Securities

China Cinda has taken another move to reduce its holdings.

On the evening of August 16, Founder Securities announced that shareholder China Cinda Asset Management Co., Ltd. (hereinafter referred to as "China Cinda") plans to reduce its holdings of the company's shares by no more than 82.321 million shares through centralized bidding from September 9 to December 8, 2024 due to the company's business needs, accounting for approximately 1.00% of the company's total share capital.

In fact, this is the fourth time that China Cinda has prepared to reduce its holdings in Founder Securities. Previously, in November 2022, July 2023, and April 2024, China Cinda proposed three reduction plans. In the first round of reduction, it directly reduced its holdings by 82,320,975 shares, and in the third round, it reduced its holdings by 12,565,400 shares. None of them implemented the maximum reduction plan.

As of now, China Cinda is the third largest shareholder of Founder Securities, holding 615 million shares of Founder Securities, accounting for 7.47% of the company's total share capital.

The fourth time in history that a reduction plan has been launched

On the evening of August 16, Founder Securities disclosed that the company's shareholder China Cinda, due to the company's business needs, plans to reduce its holdings of the company's shares by no more than 82.321 million shares through centralized bidding within 3 months after 15 trading days from the date of the announcement, that is, from September 9, 2024 to December 8, 2024, accounting for about 1% of the company's total share capital. If calculated based on the closing price of 7.29 yuan per share on August 16, the market value of all 82.32 million shares sold is about 600 million yuan.

China Cinda Asset Management, one of the four major AMCs whose main business is non-performing asset management, became a shareholder of Founder Securities due to the debt repayment of the former Founder Securities shareholder Zhengquan Holdings. In September 2021, China Cinda Asset Management became a shareholder of Founder Securities with a 8.62% stake.

More than a year after becoming a shareholder of Founder Securities, China Cinda initiated multiple rounds of share reduction plans. Specifically:

The first round was launched on November 4, 2022. At that time, China Cinda had just become a shareholder of Founder Securities for one year and planned to reduce its holdings of Founder Securities by 2% through centralized bidding within six months. However, when the deadline expired in May 2023, the reduction plan was not implemented and ultimately no shares were reduced;

The second time was in July 2023, when China Cinda again launched a share reduction plan and completed it on February 23, 2024. The expected 2% reduction was not fully completed, and only 1% was reduced, with an amount of 784 million yuan, and the shareholding ratio dropped from 8.62% to 7.62%;

The third time was on April 4, 2024, when a reduction plan was launched. China Cinda plans to reduce its holdings of the company's shares by no more than 82.321 million shares (about 1% of the company's total share capital) through centralized bidding transactions from April 29, 2024 to July 28, 2024. As of July 28, 2024, the implementation period of the reduction plan expired, and China Cinda's cumulative reduction accounted for 0.15% of the company's total share capital, which was less than the expected maximum of 1%, and its shareholding ratio decreased from 7.62% to 7.47%.

In addition to China Cinda, the top two shareholders of Founder Securities are New Founder Holdings Development Co., Ltd. and the National Council for Social Security Fund, holding 28.71% and 13.24% of the shares respectively.

Industry insiders analyzed that in recent years, China Cinda, as a financial asset management company, has also been actively focusing on its main responsibilities and businesses, reversing the deviation of diversified business, and highlighting its business positioning. Therefore, reducing its stake in Founder Securities is also a matter of course. Previously, China Huarong (now CITIC Financial Assets), which is also engaged in the AMC industry, has transferred its Huarong Securities shareholders to Guoxin Capital and changed its name to Guoxin Securities.

The first interim dividend plan for listed securities companies was released

Regarding Founder Securities' recent developments, the brokerage firm became the first listed brokerage to propose a mid-term dividend plan.

On August 10, Founder Securities issued an announcement stating that in order to implement the company's "improve quality, increase efficiency and focus on returns" action plan, better return to investors, share operating results with investors, and enhance investors' sense of gain, the company's executive committee proposed to the board of directors that the 2024 semi-annual dividend plan is as follows: a cash dividend of 0.48 yuan (including tax) per 10 shares will be paid to all shareholders, no bonus shares will be issued, and no public reserve fund will be converted into capital. Based on the company's total share capital of 8.232 billion shares as of June 30, 2024, the total amount of cash dividends to be distributed will not exceed 395 million yuan (including tax).

According to the first quarter report of Founder Securities this year, the company achieved total operating revenue of 1.985 billion yuan in the first quarter, an increase of 11.97% year-on-year; net profit attributable to the parent company was 784 million yuan, an increase of 41.06% year-on-year; and non-net profit was 764 million yuan, an increase of 40.69% year-on-year. Founder Securities explained that the increase in net profit was mainly due to the increase in investment and trading business income in this period.

In addition, the controversial demotion of Liu Zhangming, director of Founder Securities Research Institute, also attracted attention.

On August 9, China Securities Journal reporters learned that Founder Securities held a relevant meeting to announce new changes in the research institute. Liu Zhangming no longer serves as the director of Founder Securities Research Institute, but has been demoted to deputy director. Wu Ke, a member of the executive committee and vice president of Founder Securities, will directly serve as the director of the research institute.

Editor: Peng Bo

Proofreading: Yao Yuan

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