Due to a number of violations in the private asset management business, Hualin** was named by the regulator. On January 29, the China Securities Regulatory Bureau ordered Hualin** to correct a number of violations in its private asset management business, suspended the supervision and management measures for the filing of new private asset management products for 6 months, and took regulatory measures against the two responsible persons. At the same time as being punished for business violations, the performance of Hualin** is also difficult to be optimistic. The recently released 2023 annual performance forecast shows that although the net profit attributable to the parent company of Hualin** is profitable, it is expected to decline year-on-year. Judging from the revenue and net profit in the first three quarters of 2023, Hualin** is at the bottom of the 43 directly listed securities companies in A-shares. From the perspective of the company's strategy, Hualin** said that the company firmly implements the strategy of technological and financial transformation and builds a differentiated brokerage with technology, wealth and trading as its core competitiveness.
On January 29, the China Securities Regulatory Bureau issued an announcement stating that after investigation, it was found that Hualin**'s private asset management business had individual asset management products investing in the related bonds of the final investor, which had the characteristics of channel business; Imperfect management of investment targets and counterparty alternative databases; There are defects in the setting of risk control indicators in the trading system; Deficiencies in the management of the duration of non-standard investments; omissions in information disclosure; The control mechanism for related-party transactions is not perfect; There are seven problems in total, including the imperfection of personnel and salary management mechanisms.
Due to the violation of a number of regulations in the above situation, reflecting the imperfection of the company's internal control, the China Securities Regulatory Bureau decided to order Hualin** to make corrections and suspend the filing of new private asset management products for 6 months (except for newly issued products for the continuation of unexpired assets invested in existing products, but no new investment is allowed), and recorded in the market integrity file.
At the same time, the China Securities Regulatory Bureau also pointed out that Tao Zhao, then the investment sponsor of Hualin, and Zhai Xiaohua, the then senior executive in charge of private asset management business and head of the asset management department, were directly responsible for the above violations, and decided to take supervision and management measures against the two respectively, and recorded them in the market integrity file.
In response to the above situation, Hualin ** also issued the "Announcement on Receiving the Decision on Administrative Supervision Measures of the Securities Regulatory Bureau" on January 27, and said that the company attaches great importance to this and has actively promoted rectification in accordance with regulatory requirements. The suspension of the filing of new private asset management products will not affect the normal operation of the company's existing net-worth products, and will have little impact on the company's revenue and profit. At present, the company's business operations are normal.
The securities firm was ordered to make corrections and suspend the filing of new private asset management products for 6 months, which may affect the new products and business development. In the future, relevant institutions need to further strengthen their business capabilities and compliance capabilities, do a good job in business and products on the basis of compliance, and create distinctive and creative products to enhance customer stickiness and competitiveness. Financial commentator Guo Shiliang said.
As one of the A-share listed brokers, Hualin**'s performance in recent years is hardly optimistic. According to the 2023 annual performance forecast previously released by Hualin**, in 2023, Hualin**'s net profit attributable to shareholders of listed companies is expected to be 17.2 billion — 21.8 billion yuan, a year-on-year decrease of 53%-63%; Net profit after deducting non-recurring gains and losses is expected to be 15.2 billion — 19.8 billion yuan, down 5394%—64.72%。Basic earnings per share were 006—0.08 yuan shares, compared to basic earnings per share of 0$17 shares.
Regarding the changes in performance, Hualin** mentioned in the performance forecast that in 2023, the overall volatility of the A** field, the differentiation of the industry structure is obvious, and the company's fair value change profit and loss will decrease year-on-year; At the same time, the decline in market trading activity and the phased tightening of IPOs and refinancing have comprehensively led to a year-on-year decline in the company's operating income, and the net profit attributable to shareholders of listed companies is expected to decline year-on-year.
If you look at the performance in the first three quarters of 2023, the data shows that in the first three quarters of 2023, Hualin**'s operating income was 75.3 billion yuan, and the net profit attributable to the parent company was 18.7 billion yuan, all of which are at the bottom of the 43 directly listed brokerages in A-shares.
In response to how to boost performance in the future, a reporter from Beijing Business Daily issued an interview with Hua Lin**, but did not receive a reply as of press time. However, Hualin** also mentioned in the aforementioned performance forecast that the company firmly implements the strategy of technological and financial transformation and builds a differentiated brokerage with technology, wealth and trading as its core competitiveness.
Beijing Business Daily reporter Li Haiyuan.