Company profile:

The company's business scope covers securities brokerage, securities underwriting, securities self-management, customer asset management, financial consulting and many other fields, with 22 functional management and business departments and 52 branches throughout the country. can provide a full range of services for the majority of investors and enterprises to raise financing.

Zijin Group directly and indirectly holds 34.47% of the shares of the company and is the controlling shareholder of the company. State-owned assets group is the actual controller of the company.

Current situation and prospect of the industry

With the establishment and improvement of the multi-level capital market system, the deepening of the reform of the new stock issuance system, and the promotion of institutional innovation and product innovation such as the new third board and stock index futures, China's securities market is gradually maturing. The securities market will provide investment and financing services for China's economy and other functions will become increasingly prominent and reflected.

As of December 31, 2017, there are 131securities companies in the industry; the total assets of the securities companies are 6.14 trillion yuan, the net assets are 1.85 trillion yuan, the net capital is 1.58 trillion yuan, and the market capitalization of escrow securities is 40.33 trillion yuan; in 2017, the total operating income of the whole industry is 311.328 billion yuan, and 120 companies are profitable.

Under the active guidance of the current policies to promote the development of the real economy, stimulate the vitality of market innovation, expand the breadth and depth of the market, and expand the two-way opening of the market, China's securities industry is facing huge opportunities for development.

Highlights of the company:

The management style is steady. The company was founded in 1990. In the work of business operation, compliance management, risk management and internal control, the company adheres to the enterprise spirit of "soundness, standardization, thrift and harmony". Formed a "orthodox, formal, correct" corporate culture and sound management style, accumulated a wealth of securities industry management experience.

The location advantage is obvious. Jiangsu Province is one of the richest regions in China, and its comprehensive economic strength has always been in the forefront of the country. As a comprehensive securities company headquartered in Nanjing, the company firmly grasps the opportunity brought by the regional economic development and the rapid development of the capital market, and makes a targeted layout of various businesses. In terms of brokerage business, as of December 31, 2017, the company has 86 securities business departments, of which 42 are located in Jiangsu Province, accounting for 48.84% of the total. In addition, on the basis of giving full play to the regional advantages of Jiangsu, the company has set up 15 business departments and 1 branch in Ningxia, with outlets all over most prefecture-level cities in Ningxia, and the company has strong pricing power in Ningxia market. the regional leading competitive advantage is obvious.

Fund-raising project

All are used to replenish capital, increase working capital and expand the scale of business.

Main potential risks

Risk of volatility in the securities market. The company's operating income mainly comes from the securities market, which is directly affected by economic development and the situation of the domestic securities market. it includes the speed of national economic development, macroeconomic policies, the development and prosperity of the securities industry, inflation rate, exchange rate fluctuations, long-and short-term market capital sources, capital cost and interest rate level. In addition, fluctuations in the global capital market will also have an impact on the domestic securities market, which in turn affects the company's business and operating results, financial position and liquidity.

Valuation

The issuer's industry serves the capital market, and as of May 7, 2018, the average static price-to-earnings ratio of the most recent month released by the CSI was 21.04 times earnings. Combined with the current market conditions, the initial pressure level is expected to be 9-11 yuan.