A-Share IPO Journey Of Cinda Securities: The Pain Of Chairman'S Resignation And Transformation Is Not Over, And It Is Expected To End The Guidance And Apply For Listing At The End Of The Year

AMC is a securities company, Xinda securities listed on the way to another snag.

Recently, a source close to Cinda securities disclosed to the 21st century economic report that Xiao Lin, the chairman of the company, suddenly resigned on October 20, and the post was concurrently held by AI Jiuchao, the Secretary of the board of directors of Cinda, the parent company. It is only one and a half years since Xiao Lin served as the chairman of Cinda securities.

According to the exclusive understanding of 21st century economic report, the internal information of Cinda securities shows that Xiao Lin will return to China and Cinda will continue to work.

Although he only served for one and a half years, Xiao Lin, as chairman of the board of directors of Cinda securities, once put forward the plan of "realizing A-share listing within three years" together with the leading group. At present, Cinda securities is in the listing guidance period, and the company's strategic reform promoted by him has not disappeared.

"Shock wave" continues to change gears

Zhang zishuai, the former vice president of the Party committee of AMC and one of the former chairman of China AMC group in June 2019. At the same time, the chairman and general manager of Cinda securities, a key subsidiary of China Cinda securities, also changed. Xiao Lin, chairman of Cinda capital, will replace Zhang Zhigang as the chairman of Cinda securities; Zhu Ruimin, chief financial officer of galaxy securities, will "parachute" replace Yu Fan as the general manager of Cinda securities. Before that, she had worked as an executive in Dongxing securities, another AMC securities company.

The arrival of "Xiao Zhu" and "Xiao Zhu" was called "coming with a task" within the company. They quickly and comprehensively investigated Xinda securities and put forward the long-term strategic concept of "realizing A-share listing within three years and becoming a competitive securities company". At the same time, the internal reform of Xinda securities was officially launched.

It is understood that in August 2019, Cinda securities officially abolished the institutional business department and adjusted the corresponding functions to the newly established strategic customer department. The original institutional business department was responsible for the public offering sub warehouse and research and sales business, then transferred to Cinda Securities R & D center. At the same time, Cinda securities also canceled the OTC market department responsible for the new third board business.

The adjustment of the organizational structure inevitably arouses the change of personnel.

"Since last year's adjustment, the company has faced a large-scale job transfer and resignation. This year, the asset management department after the bonus payment, there is a wave of large-scale resignation, the investment banking department can be regarded as normal flow. The biggest change in personnel is also in the R & D center. " Xinda securities insiders said.

"Now the situation in the R & D center is that if you are an old man, you will feel that you have joined a new company because you don't know the people around you. Only 20% of the original old employees are left. " A source close to Cinda Securities said.

For the situation of frequent internal staff turnover after the reform, Cinda Securities said internally that the company did not have more senior positions to match it after the improvement of staff ability. In this regard, the above sources close to Cinda Securities said that the change of salary and organizational structure is one of the reasons for employees' resignation. In addition, some newly introduced department heads of the company can not "convince the public" in terms of management ability, which aggravates the resignation situation.

As the above-mentioned sources said, the change of department head and other key positions is also the key to the reform of Cinda securities.

According to the reporter of 21st century economic report, in the first half of 2020, Xinda securities had four key positions changed.

Specifically, Li Feng, general manager of Cinda securities legal compliance department, was transferred to general manager of Dahe securities compliance department, and Wang Xueyun, former investment manager of Minsheng securities, took over his post; Cui Yuhong, general manager of Cinda securities financial accounting department, was transferred to the post of director of Cinda securities Office; baijiangjiang, director of risk control department of Cinda securities, was appointed as risk control director of DBS securities. In addition, Wu Guowei, deputy general manager of Xinda Innovation Investment Co., Ltd., has also left.

In contrast, the middle-level positions of Cinda securities will change intensively in 2019. Only in Cinda Securities headquarters, there will be changes in five business department heads or above, including the company's chief information officer, the head of the research and development center, the head of the planning and capital department, the business unit of the asset management department, and the head of the investment banking business department.

Among the new directors mentioned above, Cheng Yuan, the new deputy general manager of R & D center, has caused the biggest controversy within the company.

According to public information, Cheng Yuan has worked in the headquarters of Dongxing securities investment bank, Dongxing Securities Research Institute, Huatai Securities Research Institute, and Dongxing securities fund business department successively. He has not made outstanding achievements in the research field of subdivided industries. He has never been selected by analysts such as "new wealth". On the contrary, because the performance of public funds managed by Dongxing securities was at the bottom of the list, a lot of people were attracted The storm of public opinion.

Although Xinda Securities R & D center in the reform, although the overall flow is frequent, it has also obtained a great expansion of personnel. "At present, including the sales backstage, there are 70 people in total. The department leaders mean to expand the capacity to 120 people." The source close to Cinda securities disclosed.

From the perspective of the R & D center, however, the internal development of Cinda has not been brought.

"The buyer's research industry is a highly convoluted industry. If you are willing to spend money, you can recruit a team in minutes. However, one or two years have passed since we have provided research services, points shortlisted, account opening, re service and scoring until the Commission is paid. We can't see performance in the short term. " Some industry insiders who understand the industry ecology of analysts said.

According to the source, after the expansion, Cinda Securities R & D center has chosen the way of "taking soft Commission" in order to see benefits in the short term.

Specifically, securities companies will hand over their own funds to the R & D center to participate in the fund products being raised by public funds, expand the fund raising scale and speed up the fund raising, so as to attract social funds to participate. After the end of the raising period, the mutual fund will return the securities companies' own funds and pay a part of the Commission, which is called "soft Commission".

"The benefits do not come from R & D. taking soft Commission is undoubtedly a means to rapidly expand benefits, but it is not conducive to the long-term development of the Department." The industry said.

Stable performance and clear listing path

Although the company's internal turmoil is still continuing, Cinda securities' performance has improved significantly in 2020.

In 2019, Cinda securities has ended the negative growth of revenue for many years. According to the financial statement data of the parent company, in the first half of 2020, Cinda securities realized an income of 1.57 billion yuan, a year-on-year increase of 34.9%.

Specifically, the company's securities brokerage business increased by nearly 9% year-on-year. Although the asset management business only achieved more than 41.4 million yuan in revenue, it increased by 46.2% year-on-year. However, in the first half of the year, the company's most outstanding business was investment banking, with a total revenue of 264 million yuan, up nearly 300% year-on-year.

"In the past, Cinda securities investment banking business mainly relied on the collaborative business with its parent company, that is, the business opportunities brought by the disposal of China Cinda's non-performing assets, and the investment bank focused on bond projects." A source close to the investment bank department of Cinda Securities said that, however, since 2020, Cinda securities has sponsored and mainly underwritten two IPO projects, namely Heshun oil listed on the main board and otwey listed on the science and technology innovation board. In addition, in the refinancing business, Cinda securities also participated in the main underwriting of two convertible bonds. "This is a big breakthrough for Cinda securities."

According to the data released by the Securities Industry Association, in the first half of 2020, Cinda securities realized income of 266 million yuan from investment banking, including 262 million yuan from underwriting and recommendation business, ranking 25th and 24th respectively in the industry. In 2019, Cinda securities still ranked 49th and 46th in the industry. The investment banking income of the company in the first half of 2020 exceeded that of the whole year of 2019.

However, it is reported that Cinda securities's newly established strategic customer department in 2019 has not yet become a profit department.

"The new Department is mainly engaged in the development of strategic customers and group collaboration. Some customers can not be served by the strength of one department alone. They need to mobilize the power of the whole company, including the senior management of the company. " According to the internal staff of Cinda securities, we hope to retain customer resources in the future and provide them with a full set of investment and financing, custody and trading services. "But at present, the business is still relatively primary, not a profit department."

With the performance of the same concern, there is Cinda securities listing progress. In August 2020, China Cinda, the parent company of Cinda securities, announced that it was considering the spin off of its wholly-owned subsidiary, Cinda securities and its subsidiaries, which were listed independently on a Chinese stock exchange. And Cinda securities almost at the same time accepted the listing guidance of China Securities construction investment, and planned to be listed on the main board.

"We are all going according to the schedule. We haven't heard of any accident. We are expected to end the counseling and formally apply for listing at the end of the year." Sources close to Cinda Securities said.

For the resignation of chairman Xiao Lin, Cinda securities internal said that there was no impact on the company's listing.

"The group still focuses on the marketization reform and listing of Cinda securities. Chairman Xiao Lin started the process of market-oriented reform and helped the company clear the barriers to listing. " Cinda Securities pointed out in the internal paper. AI Jiuchao, the Secretary of China Cinda, who takes over Xiao Lin as the chairman of the company, is responsible for China Cinda's listing in Hong Kong, information disclosure and corporate governance, which promotes the A-share listing of Cinda securities.