Incidents:
On March 7, 2021, Huachuang Yangan announced a plan for the non-public offering of A-shares, raising no more than 8 billion yuan; the number of shares issued did not exceed 512 million shares, accounting for 29.99% of the company's total share capital before issuance. The pricing benchmark date for this issue is the first day of the issuance period, and the issue price is not less than 80% of the average trading price of the company's stock for the 20 trading days prior to the pricing benchmark date.
Comments:
1. The capital market is booming, the company's performance outperforms the market, is superior to that of its peers, actively grasping market opportunities, and various businesses are developing well. In 2020, the capital market developed well, and the securities market was at a high level of sentiment. The average daily stock trading volume for the whole year was 907.8 billion, +68% year on year; the IPO scale was 470 billion, +86% year on year; the Shanghai and Shenzhen 300 rose more than 27% for the whole year. In this context, the securities industry achieved operating income of 448.5 billion yuan in 2020, +24% year on year; net profit of 157.5 billion yuan, +28% year on year. The company disclosed its 2020 performance forecast, taking advantage of the momentum to achieve net profit of 658 million yuan, +153% year on year, far exceeding the industry. Looking at various business segments, the company's main business revenue, such as net income from investment banking fees and net revenue from brokerage fees, all increased significantly compared to the previous year.
2. The industry actively operates equity financing. The company's current fixed increase is in line with industry trends. Since 2020, many securities companies in the securities industry have intensively replenished capital. On the one hand, market sentiment is high, and the scale of customer demand businesses, such as two finance, is expanding rapidly. On the other hand, the industry's exhibition model has changed, and investment banks are putting higher demands on the financial strength of securities companies, such as sponsoring projects and following investment. According to statistics, during the period of 2020.1.1-2021.3.8, 26 listed securities companies announced equity financing, involving an amount of 216.3 billion dollars. The amount of equity financing that has been completed exceeds 100 billion dollars. Of these, 9 have passed fixed increases and 6 have passed allotment of shares.
The announcements currently in progress include 8 fixed increases and 3 allotment shares, which are expected to raise an estimated amount of 10.24 billion dollars. This time, the company is carrying out targeted promotions in line with the expansionary development trend of the industry. All of the funds raised will be used to increase the capital of Huacheng Securities, a wholly-owned subsidiary, and the supplementary working capital will focus on supporting the development of various securities businesses.
3. The company takes collaboration as a starting point, focuses on fintech empowerment in the field of fintech, and promotes wealth management. In line with industry trends, the company insists on strengthening IT service support, enhancing the ability to obtain high-quality projects, strengthening financial product marketing and post-investment management, and continuously improving differentiated core competitiveness. The 2020 semi-annual report shows the company's securities brokerage business revenue of 400 million yuan. Among them, the revenue from the consignment sale of financial products was 100 million yuan, an increase of 3620% over the previous year.
The company actively invests in fintech companies. Currently, the company's main holding and participating fintech companies include Huazheng Zhitong Technology Co., Ltd., Datong Data Operation Co., Ltd., and Sichuan Xintong Digital Technology Co., Ltd., which focus on Internet information services and big data services. In the future, collaboration between these companies in the field of fintech and the company's existing traditional securities business will be another major focus of the company.
4. The employee stock ownership plan has been successfully implemented, and the corporate governance mechanism has been continuously optimized. Since 2019, the company has actively implemented the employee stock ownership plan. Currently, the two phases have been successfully implemented, accounting for 5.66% of the total share capital.
It was implemented in two phases. The first phase was completed in September 2019. The lockdown period was 1 year, accounting for 2.82% of the total share capital, at a price of 15.26 yuan/share; the second phase was completed in January 2020, with a lockdown period of 1 year, accounting for 2.84% of the total share capital, and the price was 8.51 yuan/share.
Risk factors: The fixed increase plan has undergone major changes, the securities market has fluctuated greatly, industry policies have become stricter, and industry competition has intensified