In the first half of 2016, Harbin Investment shares (600864.CH/ 11.25, unrated) achieved operating income of 615 million yuan (excluding Jianghai Securities), down 6.54% from the same period last year; net profit of shareholders belonging to the parent company was 86.7929 million yuan, down 8.80% from the same period last year; and basic earnings per share was 0.16 yuan, down 5.88% from the same period last year. The rate of return on net assets was 2.32%, an increase of 0.21 percentage points over the same period last year. The total assets were 5.422 billion yuan, down 13.00% from the same period last year; the net assets were 3.612 billion yuan, down 6.58% from the same period last year; and the leverage ratio was 1.50 times lower than the same period last year.
In the first half of 2016, electricity sales were 154.28 million kilowatt-hours, 47 percent of the annual plan, 8.43 million gigajoules of sales, 54 percent of the annual plan, operating income of 615.27 million yuan, 56 percent of the annual plan, and total profits of 115.2 million yuan, 260 percent of the annual plan.
Hartou shares received 16.1729 million yuan in dividends from China Minsheng Banking Corp in the second half of 2015, an increase compared with the annual plan; the company's main business is cogeneration, and because of the particularity of the industry, the profit during the heating period is more than that in the non-heating period. After the company stopped heating in late April, it began to carry out a comprehensive overhaul and maintenance of equipment and the implementation of technical transformation projects, and the expenses incurred in maintenance and technical renovation are generally settled in September and October. In addition, with the implementation of the revenue reform and increase policy this year, some of the expenses planned to occur in the first half of the year will occur in the second half of the year, resulting in an increase in profits in the first half of the year. To sum up, several factors caused the company's total profits in the first half of the year to exceed the total planned profits for the whole year.
The board of directors of the company on December 30, 2015 and the shareholders' meeting on January 29, 2016 examined and passed the relevant proposals on issuing shares to purchase assets and raising matching funds and related transactions: Harbin Investment Group Co., Ltd. in the form of a non-public offering of shares, Harbin Investment Group Co., Ltd. a total of 99.946% of the shares held by nine trading parties, including Jianghai Securities Co., Ltd. (issue price 9.53 yuan / share, issue about 1.032 billion shares).
At the same time, the company intends to raise supporting funds from no more than 10 qualified non-public offerings of shares by way of inquiry, with a total amount of no more than 5 billion yuan. All the supporting funds for issuing shares and raising funds shall be used to supplement the capital of the securities business.
On June 23, 2016, the application for major asset restructuring was approved by the China Securities Regulatory Commission. As of the reporting date, the transfer of ownership of the underlying assets and the registration of the change of new shares have been completed, and the acquisition of shares in Jianghai Securities has been completed. In the next stage, the company will implement the integration of the company and Jianghai Securities in accordance with the relevant requirements of the China Securities Regulatory Commission and the reorganization report; at the same time, the related work of raising supporting funds for non-public offering shares is under active preparation. After the completion of supporting financing, the total share capital of Harbin Investment shares will be increased from 546 million shares to 2.103 billion shares.
In 2015, Jianghai Securities achieved operating income of 2.065 billion yuan and net profit of 855 million yuan, ranking 65th.
The return on equity is 22.07%, with a leverage ratio of about 3.82 times. The market share of stock turnover for the whole year was 0.332%, which was lower than the 0.384% of the first venture securities (002797.CH/ RMB 33.87, not rated), slightly lower than the 0.379% of Guosheng Securities, and higher than the 0.244% of Pacific Securities (601099.CH/ RMB 6.09, bought).
By the end of 2015, Jianghai Securities had total assets of 19.19 billion yuan and net assets of 5.024 billion yuan. The industry ranks 67th and 61st respectively. If 5 billion of the matching financing is completed, the net assets of Jianghai Securities will nearly double, and the ranking of the net assets industry will be raised to about 40.