Guolian Securities is resolute in expanding its balance sheet, and throws another 7 billion fixed increase plan after a year

Image source: Visual China

Reporter | Wang Xin

See also the brokerage’s generous refinancing!

On the evening of September 28 , Guolian Securities ( 601456.SH , 01456.HK ) threw out a fixed increase plan, the company plans to non-publicly issue 600 million new shares, and the total amount to be raised will not exceed 7 billion yuan.

After deducting the issuance costs , the raised funds will be invested in three areas, of which 2 billion yuan will be used for credit businesses such as margin financing and securities lending and equity pledge, 4 billion yuan will be used for self-operated investment business, and the remaining 1 billion yuan will be used to repay debts.

In terms of issuance procedures, this fixed increase plan has been reviewed and approved by the board of directors of Guolian Securities, and it still needs to be reviewed and approved by the company’s general meeting of shareholders, the A – share class meeting, and the H – share class meeting . After approval, it needs to be approved by the China Securities Regulatory Commission. The whole process will take six months to one year.

In recent years, Guolian Securities has taken a firmer road to expand its balance sheet. The company landed on A -shares at the end of July 2020 , and raised 2.02 billion yuan in its initial offering . After just over a year after its listing, it implemented a fixed increase. At that time, it was expected to raise 6.5 billion yuan, and it finally raised 5.09 billion yuan. A year later, the company plans to increase again .

Affected by the self-operated business, the performance of securities companies in the first half of the year was under pressure, and Guolian Securities achieved growth against the trend. According to the financial report, the company’s operating income in the first half of 2022 was 1.274 billion yuan, a year-on-year increase of 12.71%; the net profit attributable to shareholders of the listed company was 437 million yuan, a year-on-year increase of 15.37 % .

Due to the increasingly fierce competition in the industry homogenization, in recent years, securities companies have frequently replenished capital through fixed increase, allotment and other means. (For details, please refer to: Why do brokerage stocks fight so hard without fear of a stock price crash? )

Wind data shows that since 2020 , 18 listed brokerages have raised a total of 124.3 billion yuan through private placement, and 13 listed brokerages have raised 108.8 billion yuan through allotment .

At present, there are also four securities companies including Zhongyuan Securities, Guohai Securities, Huachuang Yangan, and Jinlong Co., Ltd., which have released fixed increase plans, and plan to raise funds of 7 billion yuan, 8.5 billion yuan, 8 billion yuan and 3.2 billion yuan respectively. CICC plans to raise 27 billion yuan through a rights issue.