Securities underwriting income drops more than 30 %!How far is the open source securities of grabbing the beach IPO from the "first -class securities dealer"?

The company's net profit attributable to mother in 2021 decreased by 12.44%year -on -year. The reason for the low performance growth rate is that the industry is more than the industry's business income and self -operated investment business income decline

"Investment Times" researcher Tian Wenhui

Open source securities Co., Ltd. (hereinafter referred to as open source securities), which has more than 20 years of history (hereinafter referred to as open source securities), admits that compared with leading companies in the same industry, there is a large disadvantage in asset size, capital strength, and customer foundation. The big dream of securities firms. The capital market is the place where the company can use to realize its dreams. After the launch of the New Third Board in 2018, the eyes of open source securities were invested in A shares.

According to the information of the CSRC's official website, the materials on the "Company's first public offering of the shares (A -Share Shanghai Stock Exchange and the Main Board of Shenzhen Stock Exchange, B -share) for the company" were completed on June 23, and they were accepted on June 29. Subsequently, on July 5, the company pre -disclosed the "Open Source Securities Co., Ltd. to publicize the first public offering of the stock prospectus (declaration draft)" (hereinafter referred to as the prospectus).

According to the prospectus, open source securities are planned to be listed on the Shenzhen Stock Exchange. It plans to issue shares of no more than 1.153 billion shares, and the total share capital after issuance does not exceed 5.767 billion shares. After deducting the total amount of funds raised by this issue, all are used to supplement the company's capital, increase operating funds, and develop main business.

The prospectus shows that the performance of open source securities has fluctuated in the past two years. In 2020 and 2021, the net profit of returning home was 48.12%and -12.44%year-on-year, respectively. The net profit of the corresponding time industry increased by 27.98%and 21.32%year -on -year, respectively. In 2021, the growth rate of open source securities increased lower than the industry.

Open source securities declined in 2021 due to the decrease in handling fees and net commission revenue by 4.36%year -on -year, 6.02%year -on -year investment income, and a change of fair value changes by 60.84%year -on -year.

In the net income of handling fees and commissions, the net income of investment banks' business handling fees decreased by 30.45%year -on -year, of which the securities underwriting business handling fee and commission revenue decreased by 37.47%year -on -year, down faster. The decline in self -operated business income such as investment income and fair value changes is related to the significant decline in the return on investment yields of the company's equity category.

The prospectus shows that the strategic goal of open source securities is to create "first -class securities companies" and "best intermediary service providers in the capital market". In the next five years, the company will actively implement the company's business strategy and financial comprehensive service provider strategy and other business strategies.

The New Third Board and the Bei Stock Exchange business is the business of open source securities. However, in 2021, the company's investment bank business fee net income decreased faster year -on -year. Strategic goals formed a certain challenge.

The "Investment Times" sent a communication letter to open source securities on issues such as the above IPO work, decline in performance, and the decline in net income of investment banking business fees.

Last year's revenue and mother net profit declined

The performance of open source securities in the past two years is significantly higher than the industry. Among them, the performance of last year has declined significantly, which has a large deviation compared with the industry. Open source securities also remind the risk of operating performance fluctuations in the prospectus.

From 2019 to 2021, the operating income of open source securities was 2.084 billion yuan, 2.835 billion yuan, and 2.7 billion yuan, of which 36.06%and -4.76%were increased by 36.06%and -4.76%in 2021. 591 million yuan and 517 million yuan, of which 48.12%and -12.44%were increased by 48.12%and -12.44%in 2020 and 2021.

According to the official website of the China Securities Association, in 2020 and 2021, the operating income of the securities industry increased by 24.41%and 12.03%year -on -year; net profit increased by 27.98%and 21.32%year -on -year, respectively.

Open source securities operating income and net profit ranking also declined in 2021, even below 2019. From 2019 to 2021, the company's operating income industry ranks 42nd, 40th, and 45th, and the net profit ranking is 54th, 50th and 58th, respectively.

Open source Securities stated in the prospectus that the company's business balance needs to be improved, and the income structure needs to be optimized. Compared with the highest levels of business and the overall level of the industry, the company's overall strength and market competitiveness of the company are still insufficient compared with the new third -board business, the North Stock Exchange business, and bond business. It is still blank, financial technology innovation application capabilities have yet to be broken.

Open source securities declined in 2021, mainly due to the decline in the return of handling fees and net commissions, investment income, and changes in fair value changes. 100 million yuan. Among them, the biggest impact is the decline in fair value changes.

Specifically, the company's handling fee and commission revenue in 2021 was 1.645 billion yuan, a year -on -year decrease of 4.36%; investment income was 467 million yuan, a year -on -year decrease of 6.02%; the change in fair value changes was 65 million yuan, a year -on -year decrease of 60.84%; The business and management costs were 1.969 billion yuan, an increase of 3.14%year -on -year.

Among them, investment income and fair value changes are the main part of the self -operated business income.

The prospectus shows that the self -operated business of open source securities mainly includes the investment business of fixed income securities, the investment business of equity securities, and the New Third board business. Among them, from 2019 to 2021, the average daily investment scale of equity securities was 1.029 billion yuan, 2.304 billion yuan and 2.752 billion yuan, respectively, and the scale gradually increased, but the investment yields decreased year by year, 28.94%, 22.77%, and 6.85. %. Moreover, the total income also fluctuated, with the corresponding years of 298 million yuan, 525 million yuan, and 188 million yuan, of which 64.19%were decreased year -on -year in 2021. According to open source securities, in 2021, due to the fluctuations of the stock market and the commodity market, the yield of equity investment has decreased significantly.

From 2019 to 2021, the revenue of the securities self -operated investment business of open source securities was 427 million yuan, 728 million yuan, and 720 million yuan, respectively. The revenue in 2021 decreased by 1.1%year -on -year.

One of the uses for open source securities IPOs to raise funds to strengthen support for securities self -operated business. According to open source securities, the expansion of self -operated business depends on the company's strong capital strength. The company urgently needs to supplement capital to cope with business transformation and industry competition, promote the sustainable and healthy development of securities' self -operating business, and optimize the revenue structure.

Open source Securities 2019-2021 revenue and net profit attributable to mother (100 million yuan)

Data source: open source securities prospectus

The net income of investment banking business fees decreases by 30 %

In addition to the self -operated business, another important factor in the decline in open source securities in 2021 is that the faster decline in the investment bank's business has caused a decline in handling fees and net commission income.

In the net income of the 2021 handling fee and commission of open source securities, the net income of the brokerage business fee was 745 million yuan, an increase of 63.38%year -on -year; the net income of the investment bank's business handling fee was 717 million yuan, a year -on -year decrease of 30.45%; The income was 157 million yuan, a year -on -year decrease of 26.58%.

Among the investment bank business fees and commissions income, the securities underwriting business handling fee and commission revenue was 514 million yuan, a year -on -year decrease of 37.47%.

From 2019 to 2021, the operating income of open source securities investment banks was 854 million yuan, 1.037 billion yuan, and 721 million yuan, of which the revenue decreased by 30.47%year -on -year; corresponding time, the revenue revenue accounted for 40.97, respectively. %, 36.58%, and 26.69%have continued to decline.

According to open source securities, in 2021, the scale of the company's bond underwriting and the number and scale of stock underwriting decreased compared with the previous year, which led to a significant decline in operating income of the company's investment bank's business branch compared with the previous year.

The investment banking business, especially the New Third Board and the Beijing Stock Exchange, is a business sector that is proud of open source securities.

According to open source securities, in the future, the company will take the construction of the special securities firms of the Beijing Stock Exchange as its development strategy, relying on the national “Belt and Road” and “Western Development” strategy to radiate the country in Shaanxi and radiate the country.

The investment banking business of open source securities mainly includes bond underwriting business, stock sponsorship and underwriting business, New Third Board business, financial advisory business, asset securitization business, etc.

In terms of bond underwriting, from 2019 to 2021, the number of bond underwriting completed by the main underwriter of open source securities was 95, 125, and 123, respectively, and the main inheritance amount was 68.847 billion yuan, 67.414 billion yuan, and 45.730 billion yuan, respectively. Decrease; main inheritance revenue was 473 million yuan, 628 million yuan, and 415 million yuan, respectively, showing fluctuations. In 2021, the bond owner's underwriting revenue dropped by 33.92%year -on -year.

In terms of stock sponsors and underwriting business, as of May 31, 2022, the number of companies that Kaishang Securities had spoken listed on the Beijing Stock Exchange and the number of companies in the Northern Stock Exchange in the number of companies in the number of companies in the Northern Stock Exchange were at the forefront of the industry. According to open source securities, the sponsor listing business of the Peking Stock Exchange is the company's advantageous business. In the future, it will lead the company's business development focus to lead the company's other business lines steadily.

The New Third Board business corresponding to the North Stock Exchange business is the star business of open source securities. In 2021, the new third board of open source securities continued to supervise the number of industries. However, from 2019 to 2021, the company recommends 56, 33 and 28 companies listed on the New Third Board, and the recommended listed companies continue to decline.

The use of the funds raised by the IPO of open source securities also includes comprehensively improving the business strength of investment banking. The company said that it will open up the comprehensive financial service industry chain of the Bei Stock Exchange and the New Third Board market, and then build a boutique investment bank with open source securities characteristics. Some raised funds will also be used to supplement investment bank risk reserve, thereby expanding the scale of investment banking.

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