Guangfa Securities Investment Bank'S Recommendation Business Recovered After A Year'S Silence: Two New IPO Projects Were Reported In One Day, Both Of Which Were Involved In The Gem

According to the basic information table of initial public offering enterprises recently disclosed by the issuance Supervision Department of the CSRC, the IPO listing application of Shanghai Fubei pet products (hereinafter referred to as "Fubei pet") sponsored by GF Securities was accepted by the CSRC on June 24. This is also the first main board IPO project of GF Securities after the lifting of the ban on investment banking business.

In addition, according to the information disclosed on the gem of Shenzhen Stock Exchange, Chengdu Dexin Digital Technology Co., Ltd. (hereinafter referred to as "Dexin technology") and Northern Changlong New Material Technology Co., Ltd. (hereinafter referred to as "northern Changlong") were accepted by Shenzhen Stock Exchange on June 24 and May 25, respectively, and their sponsor institution was Guangfa Securities. Among them, the northern long dragon has begun to accept inquiries from the exchange.

Previously, Xu Youjun, Secretary of the board of directors of GF Securities, said at the 2020 performance conference that the company was carrying out investment banking business in an orderly manner.

On July 10, 2020, China Securities Regulatory Commission (CSRC) issued a prior notice to the administrative department on the illegal operation of GF Securities in the investment banking business related to Kangmei pharmaceutical, and planned to take the control measures of suspending the qualification of sponsor for 6 months and not accepting the relevant documents of bond underwriting business for 12 months. Based on this calculation, in January this year, GF Securities recommendation business has been restarted, but so far there are new IPO orders.

Previously, Xu Youjun, Secretary of the board of directors of GF Securities, said at the 2020 performance conference that the company was carrying out investment banking business in an orderly manner. Visual China

After one and a half years of coaching, two stock projects applied for IPO

According to the public information, both Fubei pet and Dexin technology will start marketing guidance at the end of 2019. Among them, Dexin technology passed the guidance acceptance of the local securities regulatory bureau at the end of May this year, and Fubei pet only completed the guidance acceptance in early June. The two companies were significantly affected by the suspension of investment banking business of GF Securities. Northern Changlong accepted the listing guidance of GF Securities in June 2020, and passed the supervision and acceptance of CSRC less than a year later, with the fastest speed.

As a pet food producer, Fubei pet flaunted itself as "Foxconn" in the pet industry, providing services for more than 300 brands. Dexin technology was listed on the new third board market before. In 2016, the company sought to be listed on the new third board, but it gave up the listing plan in 2019.

It is worth mentioning that in addition to the above three newly declared IPO companies, GF Securities has left a "spark" in Shanghai and Shenzhen stock markets. Weihai Baihe Biotechnology Co., Ltd., which plans to be listed on the main board of Shanghai stock market, and Sichuan Langjiu, which plans to be listed in Shenzhen Stock market, are still sponsored by GF Securities. Both enterprises were newly declared projects before GF Securities was punished in July 2020, and are still in the state of "pre disclosure and update".

According to the statistics of 21st century economic report, as early as July last year, before GF Securities was issued the notice of administrative supervision measures, there were 23 IPO projects in the company, including 14 main board and small and medium-sized board (merged into Shenzhen stock market main board), 6 gem and 3 Sci-tech Innovation Board. In addition, GF Securities also holds 66 companies to be listed on the stock exchange market.

Before that, the three Sci-tech Innovation Board companies recommended by GF Securities have been divided into Huatai united and Zhongtai securities. On the gem, except for Shenzhen Jingtai Co., Ltd., which voluntarily withdrew its IPO application, other IPO projects have also been lost.

However, according to wind data, as of June 27, GF Securities also held 48 companies to be listed on the stock market, which was not significantly lower than that before the company was punished. At present, the company's IPO project reserve has ranked 15th in the industry.

In addition, in terms of investment banking talents, GF Securities still has a certain scale. According to the statistics of the Securities Industry Association, as of June 27, there were 173 sponsor representatives in GF Securities, which was only 4 less than that before the punishment in July last year.

"Guangfa should have 200 Baodai by the end of last year. At present, many of the existing insurance agents are newly qualified personnel after the relaxation of the insurance agency qualification at the end of 2020, and some of them are newly cultivated in 2020. Of course, there are also many elderly people who have been eligible for generation insurance before 2015, but the loss of personnel still has an impact. " Some people close to GF Securities said.

Investment banking business constraints, net profit still exceeds 10 billion

The suspension of IPO recommendation business is bound to affect the overall revenue of securities investment banks.

According to the annual report data of 2020, the current revenue of GF Securities investment banking business segment was 663 million yuan, a year-on-year decrease of 54.26%, accounting for 2.27% of the operating income, a decrease of 4.08 percentage points compared with that in 2019. Among them, in terms of equity financing business, the company completed a total of 8 IPO lead underwriters in 2020, with an IPO principal underwriting amount of 4.394 billion yuan, while the number and amount of IPO lead underwriters completed in 2019 were 16 and 8.96 billion yuan respectively, showing a significant decline in the number and amount of lead underwriters.

According to the performance ranking of securities companies in 2020 disclosed by the Securities Industry Association, in 2020, the investment banking business income of Guangfa Securities was 540 million yuan, and the industry ranking dropped to 33, 24 places lower than that in 2019.

However, it is worth mentioning that although affected by the investment bank recommendation business, GF Securities will be "lame" in 2020. But the company's current revenue and net profit still show the strength of the head of securities companies.

In that year, GF Securities still maintained the fifth net profit ranking, and the net profit scale reached 10.03 billion yuan, an increase of 2.5 billion yuan year on year. With CITIC Securities, Guotai Junan and other four securities companies, one synchronous into the securities industry "10 billion net profit club.".

"As a leading securities company, GF Securities still has a strong foundation. In 2020, investment management business has become the core driving factor of the company's performance growth. Compared with the suspension of investment banking business of other securities companies for nearly three years, GF Securities is still enough to absorb the six-month suspension of recommendation business. " Some people in the securities industry in Beijing pointed out.

Since the fourth quarter of 2020, GF Securities has made internal adjustment to cope with the market after the recovery of its recommendation business. In November of that year, the company abolished the investment banking business management headquarters and investment banking department, and established the investment banking business management committee. After the adjustment, the investment banking business management committee has six first-class departments, including investment banking comprehensive management department, investment bank quality control department, capital market department, strategic investment banking department, merger and Acquisition Department, bond business department, and related industries and regional business groups.

A person close to the investment bank of GF Securities said that before the organizational structure adjustment, the investment banking business management headquarters of the company managed the entire investment banking business line, and the investment banking department was its subordinate department“ This time, the establishment of the investment bank management committee should mainly reduce the middle level, facilitate the centralized resource management and rapid expansion of business. In addition, it is also considered to strengthen the internal risk control.

GF Securities also said in the 2020 annual report that by adjusting the organizational structure of investment banking business, the company further strengthened the internal control mechanism of the company's investment banking business, improved and improved the internal control mechanism with reasonable division of labor, clear rights and responsibilities, mutual checks and balances, and effective supervision, and strengthened the overall compliance management and comprehensive risk management of investment banking business.

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