Data disclosure of Cinda Securities' business income is suspected, and the problem of internal control compliance has been repeatedly fined

Cinda Securities has been punished repeatedly, and the company has also involved multiple lawsuits and arbitration matters. At the same time, the business income, affiliated transaction data disclosed in the Prospects of Cinda Securities are obviously different from the data disclosed by the controlling shareholder and related parties.

One and a half years after the queue, the results of the meeting issued by the Securities and Futures Commission issued a review on June 30 showed that Cinda Securities Co., Ltd. (hereinafter referred to as: Cinda Securities) was first approved.

According to public information, Cinda Securities was established in September 2007. It is held by China Cinda Asset Management Co., Ltd. (hereinafter referred to as China Cinda). The controlling shareholder. In August 2020, China Cinda announced that the Demolition of Cinda Securities was listed independently. On April 30, 2021, the IPO application of Cinda Securities was given feedback from the Securities Regulatory Commission.

The prospectus shows that the number of shares issued by Cinda Securities this time does not exceed 973 million shares, accounting for no more than 25%of the total share capital after the issuance; after the public offering raised funds deducted the issuance costs, all will be used to supplement capital, increase operating funds, and operate funds, and operate funds, and operate funds, and operate funds, and operate funds, and operate funds, and operate funds, and operate funds, and operate funds, and operate funds, and operate funds. Develop the main business.

Although Cinda Securities was approved, the first inquiry question raised by the CSRC's meeting was that the company was repeatedly punished for internal control compliance issues, and the company also involved multiple lawsuits and arbitration matters. At the same time, inquiry the prospectus found that the business income, affiliated transaction data disclosed by Cinda Securities were obviously different from the data disclosed by the controlling shareholder and related parties.

In response to the above situation, it was found that the network sent an interview letter to the Cinda Securities to request a question, but as of press time, Cinda Securities did not give a reasonable explanation.

Repeatedly punished for internal control compliance, and involved multiple litigation arbitration

The prospectus shows that on March 22, 2019, Cinda Securities Fuzhou May 4th Road Securities Sales Department was fined 480,000 yuan for failing to identify customer identity in accordance with regulations; on April 29, 2020, Cinda, Cinda, Cinda Securities were fined 2.8 million yuan due to illegal acts that did not fulfill their customer identification obligations in accordance with regulations and did not submit suspicious transactions in accordance with regulations and did not submit suspicious transactions. Senior managers who were directly responsible for were fined 81,000 yuan.

From 2018 to 2020, Xinxin Fortune and Cinda Australia received a warning letter three times in Xinda Securities' subsidiaries. The net value, the raising performance comparative benchmarking the benchmark for investors.

(Picture source: Cinda Securities Prospectus)

In addition, the official website of the Securities Regulatory Commission showed that the regulatory authorities issued 6 tickets to Cinda Securities and their relevant responsible personnel during 2022, of which the general manager was interviewed twice.

On January 11, Cinda Securities Bengbu Huaihe Road Securities Business Department was ordered to make corrections due to lack of effective restraint on employee practice in violation of regulations and lack of effective restraint on employee practice. Integrity files of the securities and futures market; on April 14, Cinda Securities did not establish an effective constraint and checks and balance mechanism during the development of ABS business. It was ordered to make corrections. On April 27, Zhu Ruimin, general manager of Cinda Securities, was supervised and talked; on June 10, Cinda Securities was ordered to make corrections for failing to complete the establishment of the Hong Kong holding platform. Wu Liguang was supervised.

(Picture source: official website of the CSRC)

At the same time, the prospectus shows that the Cinda Securities and its holding subsidiaries involved 9 stock pledge repurchase disputes that have not yet ended with the target amount of more than 10 million yuan and 1 dispute over equity transfer contract. Affected by the stock pledge repurchase business, the amount of credit impairment losses provided by Cinda Securities is large. The prospectus shows that from 2018 to 2020, its credit impairment losses were 153 million yuan, 316 million yuan, and 148 million yuan, respectively. Essence

(Picture source: Cinda Securities Prospectus)

Therefore, at the meeting of the Development and Examination Commission, the first major issue raised by the regulatory authorities is to ask Cinda Securities to explain whether the relevant administrative penalties and regulatory measures constitute a major violation of laws and regulations, which shows whether there are major defects for corporate governance, internal control and risk management. Whether the internal control measures are complete and effective.

Financial data disclosure is suspicious

At the same time as the compliance issue is frequent, the business income disclosed in the prospectus in the prospectus contradiction is contradictory with the revenue disclosed by the controlling shareholder, and the company's affiliated transaction data also doubts.

The prospectus shows that the main business scope of Cinda Securities includes securities brokerage, securities investment consulting, securities underwriting and sponsor, and self -employed by securities. From 2018 to 2021, the company's total operating income was 1.659 billion yuan, 2.223 billion yuan, 3.162 billion yuan, and 3.803 billion yuan, respectively. The net profit of the mother-in-law at the same time was 70 million yuan, 210 million yuan, 820 million yuan and 1.172 billion yuan. Essence

(Picture source: Wind)

As an important source of operating income, the securities brokerage business, from 2018 to 2020, revenue was 1.407 billion yuan, 1.337 billion yuan, and 1.639 billion yuan, respectively, accounting for 84.81%, 60.13%, and 51.84%of operating income; Cinda Securities in 2021 The annual report shows that the company's securities brokerage business revenue was 1.685 billion yuan, an increase of 2.75%year -on -year.

Then, China Cinda Securities controlling shareholder China Cinda 2018-2021 annual report shows that its securities brokerage business revenue was 457 million yuan, 553 million yuan, 780 million yuan, and 917 million yuan, respectively, accounting for 27.6%and 24.9%, respectively. , 24.7%and 24.1%, the proportion of income did not exceed 30%. Compared with the data disclosed by the two, the securities brokerage business disclosed in the prospectus of Cinda Securities is 950 million yuan, 784 million yuan, 859 million yuan, and 768 million yuan higher than the disclosure of China Cinda.

(Picture source: Cinda Securities Prospectus)

(Picture source: China Xinda Annual Report)

Looking at the affiliated transactions, the prospectus shows that in regular affiliate transactions, from 2018 to 2020, Cinda Securities provided the income from the underwriting sponsorship business was 262 million yuan, 166 million yuan and 318 million yuan, respectively, involving related parties, some parties some China Cinda, Huajian International Industry (Shenzhen) Co., Ltd., Cinda Investment Co., Ltd., etc.

In 2019, Cinda Securities and Cinda Real Estate Co., Ltd. (hereinafter referred to as: Cinda Real Estate) underwriting sponsorship affiliated transaction amount of 5.8491 million yuan, no in 2018 and 2020; but in the annual report of Cinda Real Estate, it showed that in 2018 with Xinxin and Xinxin The affiliated transaction amount of Da Securities was 3.226 million yuan. The content of the affiliated transactions was amortized and sponsor fees for bond issuance.

(Picture source: Cinda Securities Prospectus)

(Picture source: Cinda Real Estate 2019 annual report)

In addition, the prospectus shows that from 2018 to 2020, Cinda Securities provided by the financial advisory business associations provided by related parties for related parties, respectively, RMB 69 million, 49 million yuan and 55 million yuan, respectively. Among them, in 2018 and 2019, the related affiliated transactions related to Cinda Securities and Cinda Real Estate were 6.2547 million yuan and 5.5358 million yuan, respectively. In the 2019 annual report of Cinda Real Estate, this related transaction amount was not reflected.

From the perspective of data, the affiliated transaction data disclosed by Cinda Securities and Cinda Real Estate cannot be confirmed by each other, so it is unknown whether the above -mentioned missing affiliated transaction amount is true. Therefore, at the meeting of the Development and Examination Commission, the regulatory authorities also requested the necessity, pricing basis and fairness of the affiliated transactions during the reporting period during the reporting period.

(Picture source: Cinda Securities Prospectus)

(Reporter Luo Xuefeng Financial Researcher Liu Lixiang)

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