Current personnel changes after the nationalization of Changjiang Securities: The chairman of the “Three Gorges Department” left the scene, and Liu Zhengbin performed his duties on his behalf

(Photo source: Visual China)

Blue Whale News, March 5 (Reporter Wang Wanying)Following the equity change, the chairman adjustment of Changjiang Securities (000783.SZ) finally came into effect.

A few days ago, Changjiang Securities announced that the company’s board of directors had received a written report on Jin Caijiu’s resignation. Due to work adjustments, Jin Caijiu applied to resign as the company’s director, chairman and member of various special committees of the board of directors. At the same time, Liu Zhengbin, secretary of the company’s party committee and director, was elected to perform his duties on his behalf, and the company will elect the chairman as soon as possible in accordance with regulations.

It is generally believed in the industry that personnel adjustment is an inevitable move after the equity change of Changjiang Securities. Last year, Yangtze River Industrial Investment Group Co., Ltd.(hereinafter referred to as Yangtze River Industry Group), a subsidiary of Hubei State-owned Assets, transferred the equity held by Hubei Energy Co., Ltd.(hereinafter referred to as Hubei Energy) and Three Gorges Capital Holdings Co., Ltd.(hereinafter referred to as Three Gorges Capital), and finally held a total of 17.41%, replacing Xinliyi Group Co., Ltd.(hereinafter referred to as Xinliyi Group) owned by Liu Yiqian, becoming the largest shareholder.

Today, Jin Caijiu, a veteran of the Three Gorges Department, has resigned. Chen Jia, vice chairman of the Xinliyi Department, is unable to perform his duties on his behalf due to work conflicts. The person in charge of the representative of Hubei State-owned Assets is in power. As an important securities trader in the central region, the local government attaches great importance to Changjiang Securities. Whether there will be next management changes and what strategic adjustments will be made deserve continuous attention.

Personnel chess game after equity changes”

This personnel adjustment stems from Changjiang Securities ‘earlier shareholder changes and also kicks off a new governance pattern dominated by Hubei’s local state-owned assets.

In May last year, Hubei Energy and Three Gorges Capital transferred their shares in Changjiang Securities to Changjiang Industry Group, a subsidiary of Hubei State-owned Assets, in a non-public agreement. After the share transfer was completed, Hubei Energy and Three Gorges Capital withdrew, and Changjiang Industry Group held 17.41%, surpassing Xinliyi Group to become the largest shareholder.

As chairman of Three Gorges Capital, it is reasonable for Jin Caijiu to fade out of management as shareholders withdraw. With Liu Zhengbin, who has a state-owned shareholder background, acting as chairman, Changjiang Industry Group is also expected to exert greater influence at the board level.

According to the resume disclosed in the announcement, Liu Zhengbin, born in March 1972 and aged 53, is currently the Party Secretary and Director of Changjiang Securities. He has served as the director of the Office of the Railway Construction Leading Group of Hubei Province, and a member of the Party Leadership Group and Deputy Director of the Hubei Province Development and Reform Commission.

Regarding this personnel adjustment, the relevant person in charge of Changjiang Securities said in an interview with reporters that it was a work adjustment based on the opinions of shareholders and the company’s equity transfer.

It is noteworthy that the Articles of Association of Changjiang Securities stipulates that if the chairman is unable or fails to perform his duties, the vice chairman shall perform his duties; if the vice chairman is unable or fails to perform his duties, a director shall be jointly recommended by more than half of the directors. perform his duties. rdquo;

However, Chen Jia, the vice chairman who was originally the first in line, was unable to perform his duties on his behalf due to work conflicts. Some people believe that this may be because the state-owned shareholders were in the upper position and the Xinliyi Group, the second largest shareholder, had a say.“”“”“” Judging from his resume, Chen Jia served as the general manager, investment director of the Personnel Administration Department of Guohua Life Insurance, the general manager and chairman of the supervisory committee of the real estate investment department of the asset management center, and the general manager of Xinliyi Real Estate Investment Co., Ltd. It is rumored that Chen Jia is Liu Yiqian’s son-in-law and holds important positions in several companies in the Xinliyi Capital Territory.“”

Judging from the current high-level seats of Changjiang Securities, there are still seats in the Xinliyi Group and the Three Gorges Group. In addition to Chen Jia, director Huang Xueqiang is the financial director of Xinliyi Group, and director Chen Wenbin is the general manager of Guohua Life Insurance Asset Management Center. In addition, director Hao Wei is the director of the Planning and Development Department and the director of the Investment and Acquisition Center of Three Gorges Group.

Zhi Peiyuan, vice president of the Investment Professional Committee of Listed Companies of China Investment Association, pointed out to Blue Whale News that based on the current situation, it is not ruled out that there will be a wave of personnel exchanges at the Changjiang Securities Association.

He pointed out that on the one hand, new shareholders often hope to adjust management in accordance with their own strategic plans to better implement new development ideas. On the other hand, there may be differences between the original senior management team and the new shareholders in terms of strategic direction and business philosophy. If there is a major change in management personnel, it will inevitably have a greater impact on business continuity and team stability. There are still other senior management seats, and there are different interests and demands of all parties, which need to be properly handled and adjusted to achieve a smooth transition. rdquo;

Business faces multiple challenges

Looking at the situation of Changjiang Securities, state-owned shareholders must not only balance personnel, but also face challenges at the business level.

Judging from the situation in recent years, from 2020 to 2023, Changjiang Securities ‘revenue was 7.784 billion yuan, 8.623 billion yuan, 6.372 billion yuan, and 6.896 billion yuan respectively, with overall fluctuations. According to the performance report, the revenue in 2024 was 6.797 billion yuan, which is less than in previous years. In the same period, the company’s net profit was 2.085 billion yuan, 2.41 billion yuan, 1.509 billion yuan, and 1.548 billion yuan. However, the performance report shows that net profit in 2024 will rebound to 1.839 billion yuan.

Specifically, from 2021 to 2023, Changjiang Securities ‘brokerage and securities finance business revenue were 6.276 billion yuan, 5.640 billion yuan, and 5.563 billion yuan respectively. In the first half of 2024, the revenue of this business was 2.371 billion yuan, a year-on-year decrease of 21.5%. Changjiang Securities said that it was mainly due to the decline in income from agency trading of securities and income from leasing of trading unit seats due to market impact.

In terms of investment banking business, in 2023, its investment banking business quality rating will be downgraded from Category A to Category B, and the rating will be maintained in Category B in 2024; Hong Kong stock investment banking entities will be fined 20 million yuan by the Hong Kong Securities and Futures Commission for dereliction of duty in sponsoring 6 IPOs, and their business will be suspended for one year. Wind data shows that currently, Changjiang Securities Investment Bank subsidiary Changjiang Underwriting Sponsorship has only two projects under review, and the amount of reserves is not large.

Research business has always been a characteristic business of Changjiang Securities, but in the past two years, there have also been an intensive exodus of research talents. In recent years, the company’s commission income from division positions has also continued to decline. Wind data shows that from 2021 to 2023, the company’s commission income was 1.181 billion yuan, 955 million yuan, and 792 million yuan respectively. In the first half of 2024, the company’s commission income was 330 million yuan, a year-on-year decline of nearly 30%.

At the strategic planning level, Changjiang Securities may anchor the direction. The reporter noted that in recent institutional surveys, Changjiang Securities stated that in the future, the company’s research institute will be based on a research-driven and technology-enabled business strategy, with research + pricing as the core, strengthen primary and secondary market linkages, and broaden the boundaries of research services.“”“” In terms of investment banking, Changjiang Underwriting Sponsored grasps the national strategic orientation and transforms into key areas that are in line with high-quality development and promote the transformation and upgrading of industrial structure. In addition, in order to adapt to the new AI application empowerment model in the era of large models, the company has developed the Yangtze River Lingxi Large Model Platform to implement intelligent application services covering marketing, operations, investment research, investment banking, office, R & D and other business scenarios.“”

Zhi Peiyuan pointed out to reporters that strategic positioning may be based on many considerations. First, in line with market changes, traditional business models are facing difficulties and need to explore new development paths. The second is to give full play to its own advantages. Changjiang Securities has a certain foundation in the research field, and strengthening research + pricing can further tap its potential. The third is to respond to competitive pressure and create differentiated services to attract more customer resources and enhance market competitiveness. (Blue Whale News Wang Wanying wangwanying@lanjinger.com)