Frequent Collection Of Regulatory Tickets, And Reporting Of Zhongtai Securities For Three Years Is Wrong.

The official website of the securities and Futures Commission disclosed on November 1st that Limited by Share Ltd, China and Thailand, will accept the trial of the 168th issuance of the trial committee in 2019 on November 7th (Thursday).

Zhongtai securities, formerly known as Qilu broker, was founded in 2001. It was renamed Qilu Securities in 2014 after being invested by Laigang Group. It is the only Shandong securities company.

2016 -2018, with a revenue of 8 billion 347 million yuan, 8 billion 169 million yuan, 7 billion 25 million yuan, net profit of 2 billion 533 million yuan, 1 billion 896 million yuan, 1 billion 70 million yuan "report card", China Thai securities IPO, intends to land at the Shanghai Stock Exchange, the sponsor is Soochow securities.

It is worth mentioning that, as early as March 25, 2016, China and Thailand securities disclosed the prospectus. However, in 2017, the securities and Futures Commission found that, as a new market maker of the third board company, 430309.OC, a Chinese market maker, raised market price and agreed transactions and so on, and acted as administrative punishments for Zhongtai securities. This is only one of the regulatory fines received by China Securities Corporation, and its IPO road has been stranded.

Three years later, in May 17, 2019, Zhongtai securities only updated the prospectus prospectus. However, on the eve of IPO, Sino Thai securities were also involved in the "Ningbo investor 550 million bond default" storm.

Then, in the case of A shares, such as Pacific Securities (601099.SH), Southwest Securities (600369.SH), and Western securities (002673.SZ) and other small and medium-sized brokerages, will Zhongtai securities, which will soon be on the way, become the thirty-seventh listed brokerages of A shares?

Multiple license plates

China and Thailand securities official website introduced its holdings of 01461.HK, Sino Thai capital, China and Thailand International, Sino Thai securities investment management, China and Thailand venture capital, shares of Wanjia fund, Qilu equity trading center, Zhongzheng credit and stock certificates, forming a comprehensive securities holding group integrating securities, funds, futures, private investment funds and alternative investments.

Zhongtai securities, which originated in Shandong, has obvious regional advantages.

The prospectus disclosed that as of December 31, 2018, Sino Thai securities had 41 branches and 284 business departments. There are 131 business departments in Shandong Province, accounting for 23.19% of the total business departments in China. In 2018, the share of the stock base trading volume between China and Thailand was 33.33% in Shandong Province, whether it was the number of business departments or the trading volume of stock bases, ranking the first in the Shandong area.

However, 79 of the 153 sales departments of Sino Thai securities in Shandong province are in a loss. In this regard, China and Thailand Securities said that the majority of the loss business department was newly established business department. The initial investment cost was relatively high, and the profit cycle was relatively long. In the short term, it was difficult to cover the cost of revenue.

From the perspective of business structure, China Thailand securities mainly includes securities brokerage business, investment banking business, asset management business through the holding subsidiary company, and securities proprietary business, credit business, alternative investment business, private investment fund business and so on.

Among them, the securities brokerage business is one of its core businesses. In 2016 -2018, the brokerage fees and commission net income of the brokerage business were 2 billion 820 million yuan, 2 billion 40 million yuan and 1 billion 460 million yuan respectively, accounting for 33.76%, 25.03% and 20.76% respectively.

In the same period, China and Thailand's investment banking business (including the new three Board recommended listing business) achieved 1 billion 50 million yuan, 830 million yuan and 590 million yuan in revenue, accounting for 12.57%, 10.2% and 8.4% respectively.

China and Thailand Securities said that as at the end of December 2018, there were 8 single sponsors in the trial sponsors, of which 6 were IPO projects and 2 were refinancing projects. The number of entrepreneurs listed in the new three boards was ranked third in the industry, and the number of market makers ranked ninth in the industry.

In addition, Zhongtai securities has invested 940 million yuan, 830 million yuan and 490 million yuan in its 2016-2018 year contribution through the securities asset management business of its subsidiary company.

Official website recently disclosed that in the first three quarters of 2019, China and Thailand securities achieved a revenue of 7 billion 320 million yuan, an increase of 39.89% over the same period last year, and net profit of 1 billion 907 million yuan, an increase of 102.31% over the same period last year. As of September 30, 2019, the total assets and owners' equity of the company were 150 billion 297 million yuan and 34 billion 837 million yuan respectively (Unaudited).

However, Sino Thai securities also stated in the prospectus that as at the end of December 2018, the net capital of the company was 19 billion 6 million yuan, ranking behind the large securities companies, which restricted the development of capital intermediary business, capital investment business and other innovative businesses.

To this end, IPO of the Sino Thai securities company intends to issue new shares no more than 2 billion 91 million shares of common stock (A shares), not exceeding 25% of the total share capital of the company after the issuance, and one of the fund-raising directions is to increase investment in capital intermediation and capital business.

A brokerage analyst told the twenty-first Century economic report reporter that under the current policy environment, capital has increasingly become a key condition for restricting the competitiveness of securities companies. "After all, most of the big brokerages have been listed, and even A+H is listed at the same time. The ability to replenish capital is quite strong. If small and medium-sized brokerages do not want to lag behind, then listing is the only way to go."

Over the past three years frequency supervision ticket

Referring to the wind control compliance of Sino Thai securities, the twenty-first Century economic report combing reporters found that in the past three years, China Securities has received many regulatory fines.

In September 2016, Zhongtai securities was named as the sponsor of the new three board company, 831458.OC.

In the absence of timely disclosure of related transactions and external guarantees, in September 2nd, the joint stock transfer system adopted a decision to issue self regulatory measures for warning letters. In addition, the stock exchange system believes that the securities company Zhongtai securities failed to express their views cautiously and appropriately, and did not work diligently and responsibly.

Coincidentally, in the same year, ST 832268.OC, a sponsor of Sino Thai securities, was subjected to regulatory penalties for suspected financial fraud prior to listing. The stock transfer system also believed that Sino Thai securities failed to identify problems and did not urge the company to issue a notice to expose risks to investors.

In the prospectus, Zhongtai securities also disclosed an administrative penalty, which also involves its new three board business.

In December 4, 2017, the CSRC's "administrative penalty decision" showed that during the period from August 2015 to November, the Sino Thai securities provided the market for the new third board listed companies (430309.OC) to provide market making services. There was a lifting of the easy test price and an agreed transaction, which constituted a manipulation of market behavior. It was decided to impose a fine of 1 million yuan on Yi test and Zhongtai securities, and fines and warnings for the responsible persons.

An investment bank insider close to Zhongtai Securities said, "Sino Thai securities have a relatively early layout of the new three boards, and the OTC market department was established in 2011. In March 2013, it obtained the approval of the stock transfer company as the new three board hosting broker, and in June 2014, it obtained the qualification of engaging in the market making business approved by the stock transfer company, and became one of the first batch of market makers.

In this regard, China Thailand securities in the prospectus, said the three new board business has been rectify, while the sponsor of the Sino Thai securities, the issuer lawyers believe: the above administrative penalties related violations do not belong to serious circumstances, does not constitute a legal obstacle to the issue of listing.

In May of this year, the prospectus was updated, and in May 28th, Zhongtai securities became the focus of the market again. The person named "Zhejiang Ningbo an investor" released the invitation invitation of "Sino Thai securities to induce sales to cause bond default 550 million media".

The investor said that since 2015, it has purchased the three phase crown stone series private placement product of 550 million yuan, mainly investing in the exchange traded bonds. As a trustee, China and Thailand securities have promised to "protect the principal and interest of violation", but since then, the series of products "serious liquidity risk and risk of payment" have been refused.

In this regard, in the evening of May 31, 2019, China and Thailand securities in the official website on the "Ningbo investors 550 million bond default" public response.

In this statement, Zhongtai securities first stated that the 3 products purchased by Ningbo investors were managed by Shenzhen Guan Shi, and they only acted as consignment agencies and trusteeship institutions. Secondly, Zhongtai securities denied the "lack of diligence and responsibility and failed to perform the duties of the trustee", and indicated that it had not issued any agreement or similar documents to anyone, confirming that there was no violation of capital maintenance and interest protection.

As for the reasons for the loss of the product, the Sino Thai securities explained that it was mainly "affected by the economic situation and the market environment, and some of the holdings of the bonds had downgraded, default and so on, with limited liquidity".