Self -employment is restricted for half a year, and H1 net profit has pre -decreased by more than 60 %!Huaxi Securities is unfavorable?

Huaxi Securities has been restricted to play a new half a year due to the violation of the purchase of new shares of the Science and Technology Board of New Stocks. In the first half of this year, the company's net profit attributable to shareholders of listed companies is expected to decrease by 66.67% -70.97% year -on -year

"Investment Times" researcher Tian Wenhui

In the first few months of this year, the downturn in the capital market brought a heavier impact on brokers. Even if the market gradually recovered in the second quarter, the disappointing results in the first quarter inevitably lowered the overall performance of the broker in the first half of the year. Huaxi Securities Co., Ltd. (hereinafter referred to as Huaxi Securities, 002926.SZ) in the first half of this year was a significant decline on the basis of losses in the first quarter.

The company's online subscription violations also seem to remind the risk of not fully recovering vitality after market adjustment.

According to the information of the China Securities Association's official website, Huaxi Securities has recently been restricted by the association's self -operated account for a new half year for violation of the purchase of new shares of the Science and Technology Board.

"Investment Times" researcher found that the company's investment business revenue, mainly self -operated investment, has continued to decline in nearly two years. Among them, 17.54%year -on -year in 2021.

According to the performance forecast issued by West China Securities, the company's net profit attributable to shareholders of listed companies in the first half of this year fell by 66.67%-70.97%year -on -year, mainly due to the decline in market performance affected by the market.

In the first quarter of this year, the company's investment income and fair value changes, which were both losses, with a total loss of about 419 million yuan. The change in investment income and fair value changes is the main part of the self -operated business.

From 2019 to 2021, the net profit attributable to shareholders of listed companies by listed companies increased by 69.39%, 32.75%, and -14.11%year-on-year. Among them, the net profit in 2021 did not increase and decline, which was reversed with the net profit of the securities industry that year.

Huaxi Securities said in an annual report of 2021 that the company's comprehensive strength ranks leading in the Western securities company. Adhering to the development goals of the national first -class securities financial service provider, the company adheres to the value -driven, vibrant and characteristic national first -class securities financial service providers, and strive to create three pillar businesses: wealth management, investment banking, and investment management.

According to data from the China Securities Industry Association, in 2021, the total assets and operating income of Huaxi Securities ranked 26th among 106 securities firms, and the net profit ranked 30th.

Today, self -employment is limited to half a year. It may affect the company's self -operated investment business for half a year.

The researcher of the "Investment Times" has sent a communication letter to West China Securities on the above -mentioned self -operated account, the expected net profit decline in the first half of the year, and the loss of investment income in the first quarter, and has not received a reply as of the press time.

Paralysis of self -operating for half a year

This year, due to the downturn in the early stock market, it is not uncommon for new shares to break, and it has changed from the business of stable earnings to risks and opportunities. As a result, the abandonment after the winning is also a common phenomenon. However, for the institution, the punishment is not light for the offer to subscribe online.

On July 13, the China Securities Industry Association issued the "Announcement of the List of Listing List of the Institute of Stocks for the first publicly issued shares". The announcement stated that according to relevant regulations, the association decided to issue it under the issue of new stock issuance projects such as the science and technology innovation board "Sanyi Energy" and other new stock issuance project networks. During the purchase process, there was a violation of the "Rules of the Investor Management Rules for the first publicly issued under the register of the registered system" (hereinafter referred to as the "Rules"). The list includes West China Securities' self -operated account, which is limited from July 14, 2022 to January 13, 2023.

Article 20 of the "Rules" stipulates that the distribution objects managed by investors on the Internet shall not exist after quoting the initials of the science and technology board and the GEM, but shall not provide a valid quotation but not involved in the purchase or fail to purchase in full. Do not pay the subscription funds and brokerage commissions in full on time, and subscribe for the same time online.

According to the announcement of the issuance results of the issuance of Sanyi Heavy Energy Co., Ltd. (688349.SH, hereinafter referred to as Sanyi Energy), during the online subscription, the number of shares of West China Securities' self -employed account was 32,647 shares, and the total amount of payment should be about 977,700 yuan The actual payment amount is 0 yuan, and the number of subscribed shares is 32,647 shares.

According to reports, Huaxi Securities responded that the company had made a mistake in the transfer of transfer of transfer money in the company, which caused the subscription money to fail to arrive in time. In this regard, the company attaches great importance to it and has taken corresponding rectification measures to avoid similar situations in the future.

Huaxi Securities 'financial report shows that the company's investment business mainly includes the company's self -operated stocks, bonds, funds and other investment, as well as subsidiaries' alternative investment business. Huaxi Securities reported in 2018, 2019 and 2020 that the company's self -operated investment revenue accounted for more than 90%of the income of investment business.

From 2018 to 2021, Huaxi Securities' investment business revenue was 592 million yuan, 1.274 billion yuan, 1.022 billion yuan, and 843 million yuan. Among them, in 2020 and 2021 continued to decline.

The 2019 annual report shows that in the company's self -invested investment in 2018 and 2019, the total stock income was 21 million yuan and 312 million yuan, respectively.

At the event of Huaxi Securities Investor Relations on July 14, the company said that the investment business sector has long contributed a lot to the company's performance. Essence In the future, in the process of investment business transformation and development, the company hopes to obtain the relevant business qualifications that have not been obtained by the science and technology board as a market business, derivative category, etc., and strengthen the creation of the talent team to FICC (generally referring to FIXED Income, Currency and Commodities, That is, the transformation of fixed income, foreign exchange and commodities) improves the overall stability of investment income. In terms of self -investment, it can be divided into directional and non -directional. The traditional self -operated business of securities firms is mostly directional businesses such as stock investment in the direction of betting, with high volatility. Non -directional business includes off -site derivatives business, which obtain non -directional absolute returns. At present, some securities firms have greatly reduced the scale of directional investment to increase the scale of non -directional investment. However, non -directional investment also needs to consume a lot of capital.

Huaxi Securities said that the company's capital scale does have a certain pressure. Regarding directional self -investment, the company will definitely do it, and it is not appropriate to completely compress. From the perspective of in recent years, the structural market is particularly obvious, and it will always be able to dig into some sectors' investment opportunities in the future. However, it will not blindly expand the scale of self -investment in the direction. It is necessary to combine the market trend and comprehensively adjust its own capacity and risk management capabilities.

Interestingly, the Sanye Chung Energy of Huaxi Securities closed up 37.45%on the day of the listing on June 22. On July 21, the stock closed at 50.52 yuan, an increase of 69.53%from the issue price of 29.8 yuan.

In the first half of the year, the net profit premedted over 60 %

Due to the loss of losses in the first quarter, even in the second quarter, Huaxi Securities's performance in the first half of the year was still ugly. The important reason for the decline in performance of the company is the influence of self -investment investment business.

On the evening of July 14, Huaxi Securities released the semi -annual performance forecast in 2022. The company's net profit attributable to shareholders of listed companies in the first half of this year was 270 million yuan to 3.10 million yuan, a year -on -year decrease of 66.67%-70.97%.

Huaxi Securities said that in the first quarter, the company had a certain loss due to the multiple influence of market conditions and related industry bond valuation adjustment pressure. Since the second quarter, the company has further strengthened its advantageous business and promptly adjusted investment strategies in a timely manner. The operating income has shown a rapid increase in the ring and a narrow year -on -year decline. The month -on -month increase is large. But overall, in the first half of 2022, the company's net profit attributable to shareholders of listed companies decreased compared with the same period of the previous year, mainly due to the decline in the performance of the investment business.

The first quarter report of Huaxi Securities showed that the company's total operating income of the company was 439 million yuan, a year-on-year decrease of 54.03%; the net profit attributable to shareholders of listed companies was -170 million yuan, and the same period last year was 321 million yuan.

Among the total operating income, the net revenue of handling fees and commissions was 537 million yuan, a year-on-year decrease of 16.49%; investment income was -174 million yuan, which was 456 million yuan in the same period last year; It was -382 billion yuan.

In the net income of handling fees and commissions, the net income of the brokerage business handling fee was 469 million yuan, a year -on -year decrease of 2.29%; the net income of the investment bank's business handling fee was 40 million yuan, a year -on -year decrease of 71.38%, mainly due to the decline in underwriting business income.

Regarding the investment income from profit to loss, Huaxi Securities said that due to the fact that it was affected by the first quarter of the market, financial investment suffered losses. The company also said that due to the market conditions in the first quarter, the fair value of financial investment has decreased year -on -year.

At the same time, in the first quarter of this year's operating expenditure this year, credit impairment losses were 146 million yuan, an increase of 1233.15%year -on -year. The main reason is that due to the market conditions in the first quarter, the impairment of other creditor's investment has increased.

"Investment Times" researcher noticed that the growth rate of Huaxi Securities has also slowed down in the past three years, of which net profit in 2021 declined.

From 2018 to 2021, the net profit attributable to shareholders of listed companies was 845 million yuan, 1.432 billion yuan, 1.9 billion yuan, and 1.632 billion yuan, respectively, of which 69.39%, 32.75%, and--respectively from 2019 to 2021, respectively. 14.11%.

According to data from the official website of the China Securities Association, from 2019 to 2021, the net profit of the securities industry increased by 84.77%, 27.98%, and 21.32%year -on -year. Although the growth rate also showed a downward trend, it was still growing in 2021.

In 2021, the decline in net profit of Huaxi Securities was mainly due to changes in fair value and income loss and credit impairment losses. Among them, the company's fair value changes in that year were -565 million yuan, which was 292 million yuan in the previous year; credit impairment loss was 205 million yuan, a year-on-year increase.

Huaxi Securities's first half of the year's performance trailer

Data Source: Company Announcement

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