First, the fixed increase of venture capital will complete the change of control right, and the trump card business is declining day by day

 First, the fixed increase of venture capital will complete the change of control right, and the trump card business is declining day by day

Shrouded in the first venture securities (002797. SZ, hereinafter referred to as the first venture) on the body of the doubt, gradually cleared.

After this operation, Beijing SASAC entered the company in a large scale. The previous major shareholders have been reducing their holdings continuously since last year and cashing out in an orderly manner.

However, the performance of the first venture, especially the ace fixed income business, is declining in the Red Sea competition. The problem in front of this small and medium-sized securities company is how to reproduce the brilliance of trump card.

First, the equity changes that lasted for many years began to move towards the end.

According to the announcement, after the company completes the fixed increase, the shares held by the first and second largest shareholders capital group and huaxixinyu will become 12.72% and 7.74%. Beijing shounong food group and Beijing Guorui state owned enterprise reform and development fund have become the third and fourth largest shareholders.

According to the companys investigation data, the two new shareholders in Beijing belong to the local state-owned assets. Included in the capital group, Beijing SASAC holds at least 22.7% of the first venture.

The state-owned assets entered the market, and the shareholders of the prophet of the Spring River were already arranged to withdraw in an orderly manner.

Hua xixinyu is a private investment platform for rich woman Zhao Yan. Before the fixed increase of the first venture capital, Hua xixinyu announced again that the exchangeable bonds issued with the first venture shares in the previous years had been passively reduced to 39.809 million shares due to the exchange of shares by the bondholders.

In addition, Hangmin group, the third largest shareholder of the former company and collective ownership, announced its plan to reduce its holdings in May last year, and will continue to sell 35.024 million shares from this month.

These cashing shareholders have not participated in the companys fixed increase this year. After this battle, the ownership structure of the first venture led by state-owned assets has become increasingly clear.

According to the regulation of one participation and one control of China Securities Regulatory Commission, any enterprise can only hold one securities company at most, while the companys major shareholder, capital group, has already owned the capital securities. Therefore, there are continuous rumors in the market that the capital group will transfer the equity of the first venture.

In this regard, investor network on the matter to verify the company, first venture answer all to the announcement, did not give a clear comment.

Three no securities companies

In the 2019 annual report. First, entrepreneurship rarely indicates that the company has three noes: no controlling shareholder, no actual controller, and no single party can decide major matters.

When asked whether the major shareholders violate the one participation and one control rule, they are repeatedly dealt with. However, this explanation is hard to convince investors.

Foshan securities, formerly known as the first venture, was acquired by the first group in 2006, and renamed so far. In 2008, with the promulgation of the one participation and one control regulation in the securities industry, the capital group began to transfer due to the fact that it had two securities dealers licenses.

In the first step, capital group sold 13.81% of the companys equity to Hangmin group, but still maintained a relative control. In the second step, Zhao Yan, a rich woman, was invited to join the board. The latter participated in the capital increase and share expansion through Hua xixinyu, becoming the largest shareholder of the first venture.

After solving the problem of one participation and one control, the company started the journey of listing. In 2015, the first venture landed in Shenzhen Stock Exchange. The Guangdong based securities company is a big guy in Beijing, and its internal senior management team still uses the staff of Foshan securities. Beijings shareholders are more likely to be involved in a successful financial investment.

The change originated in 2017. In August of that year, first venture received a notice of asset restructuring planning from Huaxi Xinyu, announcing the temporary suspension of trading, and the companys equity was also within the scope of restructuring.

After that, Reuters reported that Jingdong finance will bid $1.5 billion for 24% of the first venture. The report details that the parties involved could not reach an agreement on the valuation and could not formally finalize the transaction. Although not long after, the company announced the termination of asset restructuring and denied the acquisition of Jingdong finance, but the intention of several major shareholders was obvious.

In November last year, Hua xixinyu completed the first phase of reduction of 41.26 million shares, and capital group passively became the largest shareholder again, and touched the red line of one participation and one control for the second time.

According to the results of this round of fixed increase, Beijing has a strong desire to retain the license of the securities company. The solution can be transferred to other internal platforms or continue to introduce new shareholders through fixed increase. No matter which way, they may all belong to the state-owned assets.

The halo of trump card business is gradually fading

First, fixed income business, the trump card of entrepreneurship, is also declining.

In general, the annual reports of securities companies sort out their business lines, which are divided into brokerage, proprietary management, asset management, investment banking, etc., but in order to highlight the trump card created over the years, the first venture specially disassembles the portfolio and lists the fixed income separately.

According to the annual report, the company defines the scope of fixed income business as bond sales, bond and related derivatives transactions. In fact, the two categories are split from investment bank underwriting and proprietary investment.

On the eve of listing in 2015, during the roadshow to institutions, No.1 venture constantly emphasized the advantages of fixed income, such as the first-class dealer of the open market business of the central bank and the qualification of a number of bond underwriting businesses. Research institutes report that when it comes to the first venture, solid harvest has become a highlight that must be mentioned.

However, the bright spot is fading.

According to the 2019 annual report, although the companys sales volume of fixed income products increased last year, the total sales volume decreased by 2.94% year-on-year. First, venture capital believes that the expansion of fixed income underwriting institutions will have an impact on the companys market share.

Bond sales here are squeezed by peers, and bond trading there is also a cloud of suspicion of ups and downs.

According to the announcement, first venture lost 35.8556 million yuan of net profit in May this year, but in June after that, the same index achieved a profit of 64.2837 million yuan.

In this regard, investor net on the reasons for the loss in May to verify the company, but the other side is not willing to disclose more.

According to the annual report, the number of employees engaged in fixed income business decreased from 87 in 2018 to 68 in 2019. Nearly 20 people left, so that the lines expenditure also fell 3.6% year-on-year. Compared with the increase of 3.69% in line revenue last year, we can see that the contribution of fixed income business to the company is declining.

Source: editor in charge: Yang Qian_ NF4425