LeTV's influence has gone?Can Zhongtai Securities Sustainable Secondary Bonds be issued smoothly?

When feedback the application documents of the secondary corporate bonds, the China Securities Regulatory Commission requires the impact of China -Thailand Securities Evaluation LeTV investors' claims on the ability to settle the solvency of Zhongtai Securities Bonds as one of the defendants. In the first half of this year, the company's performance reduction was also greater than the industry

"Investment Times" researcher Tian Wenhui

For Zhongtai Securities Co., Ltd. (hereinafter referred to as Zhongtai Securities, 600918.SH), the impact of the underwriting business of the non -public issuance business of LeTV in 2016 has continued to this day. When reviewing the company's permanent secondary corporate bond financing, it is also considering the impact of relevant cases on debt repayment.

According to the information of the CSRC's official website, on August 19, the association raised questions in the feedback of the Sustainable Securities Securities Issuance of Sustainable Secondary Corporate Bond Application Documents, and requested that China -Thailand Securities Evaluation LeTV investor claiming case as the defendant was the defendant's defendant. The impact of the solvency of Zhongtai Securities and Bonds.

Zhongtai Securities is one of the joint underwriters of LeTV's non -public offering of stock projects in 2016. According to Zhongtai Securities, because the above cases have not yet opened, the amount involved in the final case is uncertain and cannot judge the impact on profit.

Since the beginning of this year, China -Thailand Securities and subsidiaries have been taken twice in regulatory measures to involve bond business and asset management business.

The company's performance in the first half of this year was not satisfactory. The revenue decreased by 12.96%year -on -year, and the net profit attributable to shareholders of the parent company decreased by 46.42%year -on -year. The speed reduction was greater than the industry.

The "Investment Times" sent a communication letter to Zhongtai Securities on issues related to the issuance of the issued bonds of the above -mentioned perpetual secondary company, taking supervision measures, and declined performance. Relevant sources of Zhongtai Securities said that some issues can be announced according to the semi -annual report and other announcements.

The LeTV network affects the issuance of sustainable secondary debt?

The market may not be expected that the China Securities Regulatory Commission's announcement on the feedback on the application feedback of the China -Thailand Securities Sustainable Secondary Corporate Bond Application specifically mentioned the impact of LeTV's investor claiming case on the debt capacity of China -Thailand Securities.

According to the information of the CSRC's official website, on August 19, the CSRC issued the "Feedback on the Application Documents of Sustainable Secondary Corporate Bonds Application Documents to Professional Investors". According to the CSRC, the CSRC has reviewed the application documents of the China -Thailand Securities to publicly issue perpetual sub -corporate bond application documents to professional investors in accordance with the law to form feedback. In accordance with relevant regulations, please ask CITIC Construction Investment Securities to implement the issues in the feedback one by one and submit written reply opinions and electronic documents within 30 working days.

According to the disclosure of the application materials, in January 2022, China -Thailand Securities received the "Civil Prosecution" delivered by the Beijing Financial Court. Fourteen natural persons such as their executives, three securities companies, and three accounting firms, including Zhongtai Securities, were the defendants, and the defendant asked the defendant to pay the plaintiff's investment losses caused by false statements, totaling 4.6 billion yuan. In the case of the progress of the case of CITIC Securities, it is requested to refer to the rationality of the estimated liabilities confirmation, and evaluate the impact of the above lawsuit on the ability to settle the solvency of China -Thailand Securities and Bonds.

According to reports, China -Thailand Securities responded that after careful research and verification, the issue of LeTV's lawsuits involved in the issue, the company has explained in various announcements disclosed since 2022.

The announcement of Zhongtai Securities in January this year shows that China -Thailand Securities was requested to be ordered to assume liability for compensation. The plaintiff believes that the three securities companies and three accounting firms such as Zhongtai Securities and three accounting firms have undertaken the financial fraud due to their diligence and failure to find LeTV's financial fraud, and bear the liability for compensation.

Zhongtai Securities stated in the announcement that the company was one of the joint underwriters of LeTV's non -public issuance stock projects in 2016, non -sponsoring agency. Because the above case has not yet begun, and the amount involved in the final case is uncertain, the company cannot judge the impact on the current profit or post -period profit.

In the semi -annual report of this year, Zhongtai Securities still stated that the case has not yet begun in the first instance.

The Sino -Thailand Securities Half -year report shows that at the end of the first half of this year, the company's estimated liabilities were 1.4358 million yuan, an increase of 0.37%over the end of the previous year. Among them, the estimated losses were expected to be 558,500 yuan, an increase of 0.94%over the end of the previous year.

In terms of bond financing, in the first half of this year, the company received the cash received by bonds 20.952 billion yuan, an increase of 19.65%year -on -year. The company's net cash flow generated by fundraising activities has decreased significantly.

At the end of the first half of this year, the company's debt to assets was 82.94%, which was 1.09 percentage points higher than the end of the previous year.

Information on the website of the Securities and Futures Commission also shows that since this year, Zhongtai Securities and subsidiaries have been taken twice in regulatory measures.

On August 15, the Shandong Supervision Bureau of the CSRC decided to take the responsibility to make correction supervision measures on China -Thailand Securities. The existence of Zhongtai Securities includes: First, the business system of "Regulations on the Inspection Regulations of the Equity, Credit and Council of the Investment Bank of Zhongtai Securities Co., Ltd." and other business systems such as the inspection of the on -site inspection of the quality control of related business "and other business systems are not detailed, and the internal control constraints and management in the practice of individual bond projects The mechanism is not in place; the second is that after the termination of individual bond projects, the project team fails to timely terminate the project information reporting to the quality control department into the termination of the project database; the third is the incomplete or irregular retention of individual bond projects.

On March 3, the Shanghai Supervision Bureau of the China Securities Regulatory Commission decided to take the order of corrections to China -Thailand Securities (Shanghai) Asset Management Co., Ltd.. The company has the following behaviors in the process of conducting business: First, the company's individual asset management plans have long adopted the historical closing price valuation for a long time when the bonds they invested in the bonds. Relevant regulations; the second is the incomplete transaction system, and the system of affiliated transaction pricing is not standardized in the system. The net profit of returning to the mother is more than 40 %

China -Thailand Securities' performance fell faster in the first half of this year, and the speed dropped faster than the peers.

The Sino -Thailand Securities Half -annual report shows that the company's operating income in the first half of this year was 50.014 billion yuan, a year -on -year decrease of 12.96%; net profit attributable to shareholders of the parent company was 912 million yuan, a year -on -year decrease of 46.42%. According to data from the China Securities Industry Association, in the first half of this year, the operating income of securities companies decreased by 11.4%year -on -year; net profit decreased by 10.06%year -on -year.

In the first half of this year, Zhongtai Securities' operating income, the net revenue of handling fees and commissions was 2.642 billion yuan, a year-on-year decrease of 4.52%; the revenue of fair value changes was -922 million yuan, which was 321 million yuan in the same period last year, a year-on-year decrease of 1.243 billion yuan. Become the most important factor affecting the company's revenue and net profit growth in the current company.

Among them, among the fees and commissions net income, the net income of investment banking business fees was 459 million yuan, a year -on -year decrease of 34.67%. Mainly due to the decrease in securities underwriting income.

The fair value change of Zhongtai Securities has changed from profit to loss due to profit market fluctuations that lead to changes in the fair value of financial assets.

In the first half of this year's business expenditure, the total loss of credit impairment and the impairment of other assets was 18.2336 million yuan, and the same period of the previous year was -22.5586 million yuan.

The researcher of the Investment Times also noticed that in the first half of this year, China -Thailand Securities added 4 unsuccessful lawsuits and arbitration cases involving an amount of more than 50 million yuan (excluding LeTV), involving a total of about 756 million yuan.

Among them, there are two lawsuits between Zhongtai Securities and its subsidiaries as the plaintiff, involving 485 million yuan; 2 lawsuits of Zhongtai Securities and its subsidiaries as the defendant, involving about 271 million yuan.

The case includes bond transaction disputes, asset management contract disputes, electrolytic aluminum agreed ordering back business disputes, loan project disputes, etc.

Some financial data of Zhongtai Securities in the first half of the year

Data source: Company's half -annual report of 2022

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