Progress in investor qualifications, rumors of mergers and acquisitions, mass departures…Founder securities executives focused on the response

2022-05-18 0 By

“The burden of history is gradually cleared, and the controlling shareholder’s boots are on the ground……”On March 31, Founder Securities executive committee member, vice president and financial officer Yin Lei stressed at the 2021 annual results press conference.In 2021, Founder Securities achieved a 5-year high in revenue of 8.621 billion yuan, an increase of 14.31%;Net profit attributable to shareholders of listed companies reached 1.822 billion yuan, an increase of 66.19% year-on-year.By the end of the year, founder Securities total assets of 172.613 billion yuan, an increase of 40.04% year on year.At the results conference, founder Securities chairman and several management made responses to the market concerns about the progress of the public fund investment qualification application, Founder Securities and Ping An Securities m&a rumors, the last year more than 20 members of the institute were poached by peers, the latest layout and planning of branches and other issues.Response 1: What is the status of the application for fund investment business qualification?Jiang Zhijun, vice president of Founder Securities, said that the company has done all the preparatory work for the fund investment qualification application and is actively promoting the application of this business.First, the relevant management system and business process of public offering fund investment and consulting business has been established, the investment decision-making committee of public offering fund investment and consulting business has been established, and a specialized and professional fund investment and consulting management team has been set up.We have designed the product strategy to be launched in the future, built a platform for fund investment, and preliminarily built a management system for public offering investment transaction and multi-account transaction.Second, it has a good foundation for the development of the fund investment business.”Our unique advantage is our large customer base, which at the end of last year was 13.3 million, ranking eighth in the industry;At the same time, the number of signed customers has reached 729,000;Professional cast customer team;The fund sales capacity is strong, and the fund sales volume will be nearly 300 billion yuan in 2021.”Response 2: In the context of the continuous closure of offline outlets in the industry, how does Founder Securities consider it?Jiang zhijun pointed out that many offline outlets and wide coverage are one of the advantages of Founder Securities to develop wealth management business.At present, the company has 387 outlets, ranking second in the industry as of last year, distributed in 30 provinces and autonomous regions across the country.In the network management, we have formed a unique business department management mode.First, the flat organizational structure, the headquarters directly to the branch management, greatly improving the efficiency of management communication, saving management costs;Second, standardization. All outlets are a set of indicators, and the business language model can be copied. Good models can be further promoted to other outlets.The third is refinement, based on customer subcontracting and quantitative assessment, to carry out quantitative assessment for each employee, each business and each activity volume;Fourth, it is flexible. On the premise of ensuring the consistency of core indicators, branches can adjust the weight of indicators according to their own endowments and encourage differentiated development of branches.”Based on the management of the four modernizations, according to the statistics in 2021, 98% of the outlets opened for three years are profitable.”Jiang Zhijun said that we positioned the network as the tentacles of the company’s various businesses in the front line. The integrated operation of the network also effectively supported the company’s wealth management to drive asset management, helped the investment bank, and promoted the development model of investment transaction business.In addition, the network plays a very important supporting role in enhancing customer trust and providing more warm service.Response 3: More than 20 people in the institute were poached by their peers last year. Will there be any adjustment in the future development thinking?”We also noticed that, and it did give us a little bit of a rethink, how do we do research?”Yin Lei expresses, the institute looks from the development demand of current whole market, still need very much.Because it is an era of great wealth, institutions have a great demand for research institutes, and research institutes also create a large income pie for securities companies.He also said that many securities firms are now starting research institutes, and people realize that this is a huge market.The work of the institute needs to continue.However, there may be some confusion in the research process. After a period of research, our research institute may adhere to the following points in the future: first, the development direction is to set up a large research store to provide research services for the market;Secondly, we should unswervingly adhere to the market-oriented assessment and incentive mechanism, and absorb high-level analysts and institutional sales to join the team, which is a consensus of the market.The third is to create a research operation platform for sustainable development, which can be used to retain people and enable them to better play their abilities here.Fourth, the research institute is not only external, but also has a great demand for research inside Founder Securities. Investment banking, investment and wealth management all need high-level research to empower them, and our research institute will also be of great use in this field in the future.Now the institute is also actively introducing excellent talents. Many excellent analysts and institutional sales staff have joined the new team in the early stage.In the future, we will continue to expand the team. Now it is only a recovery phase. We welcome those high-level people who are interested in seller research to join our team and strengthen our strength.Response four: what is the reasonable income structure of securities companies?In the future, how will we make up for the shortcomings of our business?He yagang said the wealth management business is a big advantage of the company, and will continue to maintain the competitiveness of the business in the future.But just because a long board is longer doesn’t mean it doesn’t matter.”We have a unique model, a business model based on our own endowment model.For example, wealth management drives asset management and investment banking drives investment transactions, and fintech and research drives wealth management and investment banking to achieve balanced development of all businesses.”He yagang pointed out that the process of compensating for shortcomings is very tortuous, but the effect is very good.”For example, in 2015, we had five weak points, but now it seems that all of them have been filled up. Investment trading, equity investment and research have become our strong points, which have great potential. Our two weak points in asset management and investment banking have been filled up, but they are still not long enough.”When talking about why the weak board supplementing business is not reflected in the performance, he said, on the one hand, it may be affected by the company’s financing difficulties and expensive financing, these problems have been solved now;On the other hand, there is a lag between the input and output of these businesses.”After years of nurturing, these businesses are now coming to fruition.”Cui Xiao, vice president of Founder Securities, added that one reason is that the company’s wealth management business is very strong, but another more important reason is that the investment trading business did not have enough ammunition in the first two years due to various reasons such as financing costs and financial leverage.As the restructuring comes to an end, financial leverage is gradually restored and financing costs are gradually reduced. This year, Founder Securities investment trading capacity can be released quickly, which can quickly make business types see equalization in the proportion of income.Response 5: What is the current restructuring process of Founder Group?Is a merger with Ping an Securities still possible?Shi Hua, chairman of Founder Securities, responded that the restructuring of Founder Group is progressing smoothly and has entered the substantive operation stage.According to the current Restructuring Plan of Founder Group, after the completion of asset delivery, the controlling shareholder of Founder Securities intends to change to the new Founder Group.Currently, we are dealing with the changes of controlling shareholders and actual controllers, and the relevant matters are waiting for regulatory approval, and the time of completion of the changes is uncertain.When the new Founder Group changes to the company’s controlling shareholder, Ping An China will indirectly control Fang Securities.When it comes to the possibility of a merger between Founder securities and Ping An Securities, Shi hua said, “We share the same direction with investors, that is, to make Founder Securities and Ping An Securities bigger and better.”We believe that the investors will also follow the principle of protecting the interests of all shareholders of the listed company, and on the premise of safeguarding the interests of the majority of shareholders, especially minority shareholders, solve the problem of peer competition between Founder Securities and Ping An Securities in a legal and compliant manner.Beijing News Shell finance reporter Hu Meng editor Song Yuting proofread Lu Qian