"The performance is getting worse every year, and the stock price plummeted." This is a helpless question from investors on the Shanghai Stock Exchange e-interactive platform. What is the reason why Pacific Securities has become a poor student in the eyes of investors? The data is the best way to tell the problem.
Judging from the ranking of listed securities companies in 2017, Pacific Securities ranked last in revenue and net profit. In addition to data, the market has more labels to Pacific Securities: lightning listing, performance at the bottom all year round, huge losses in proprietary investment, bizarre high salaries for executives, and strategies cannot keep up with the market rhythm... How did Pacific Securities, which has been listed for more than 10 years, become a poor student in the eyes of investors?
new chairman was ordered to go public for more than 10 years, and Pacific Securities is about to welcome its second chairman.
Pacific Securities issued an announcement in early June stating that the company's chairman Zheng Yanan applied to resign from his position as chairman, and the company's board of directors elected director Yang Zhifeng as the company's chairman, and he would officially take office after obtaining the qualification to serve as chairman of the securities company.
Before taking over as chairman, Yang Zhifeng was one of the directors of Pacific Securities. He served as executive director and general manager of Shenzhen Jinghuachi Technology Investment, executive partner of Beijing Jingcheng Ruizhi Investment Management Partnership (General Partnership), and executive partner of many investment companies.
The most urgent problem facing the new chairman is that the company's profitability is too weak.
According to statistics from Securities China reporters, from 2007 to 2017, Pacific Securities achieved a cumulative operating income of 11.056 billion yuan and a net profit of 3.374 billion yuan.
In 2017, 11 brokerage firms in the industry had revenue of more than 11.1 billion yuan, and 10 had net profits of more than 3.4 billion yuan. This means that the accumulated profits of Pacific Securities after ten years of hard work are not as much as those of these 10 brokerages in a year.
In addition to Pacific Securities' revenue dilemma, what is placed in front of the new chairman is also the enthusiastic expectations of the majority of investors.
From the company's secondary market performance, as of June 29, Pacific Securities fell by more than 35% this year, close to the lowest since its listing in the past few days; if it had bought and held it for more than 10 years since its listing, the decline was more than 80%.
Brokerage China reporter saw on the Shanghai Stock Exchange's Shanghai Stock Exchange e-interactive platform that many investors raised questions about Pacific Securities' performance, stock price, business, etc.
stock price is a true reflection of the fundamentals of the company and the most intuitive display of operating performance. Pacific Securities' operating data has always been at the bottom among listed brokers. In 2017, Pacific Securities ranked last in revenue and net profit.
As a small and medium-sized brokerage firm, the company's business scale naturally cannot be compared with that of large brokerage firms, but the company's other detailed indicators are also "old" in the industry. The company's return on equity (ROE) is 1.32%, the last among all listed brokerages, with an industry median value of 6.01%.
Regarding the declining performance, the company has also repeatedly stated that it will continue to steadily advance the implementation of its development strategy and business plan, actively explore business, and explore new profit growth points.
Missing the rapids and making progress in the precious decade
The past 10 years are the 10 years of great changes in the international and domestic financial landscape after the financial crisis in 2008.
Economy of emerging market countries represented by China has taken off in full swing, emerging currencies and emerging finance have risen, and a large number of financial institutions have grown rapidly. From the perspective of the securities industry alone, many securities companies have shared the huge dividends of China's development in the past 10 years.
In February 2010, Huatai Securities was listed. Although it is more than two years later than Pacific Securities, this Jiangsu-based brokerage firm has quickly become one of the top five brokers in the industry by leveraging the capital market; Guojin Securities in Chengdu has now become a new comprehensive brokerage firm, and its various businesses have grown rapidly.
is also another non-listed securities company on Beijing Road, Kunming City, Yunnan Province - Hongta Securities . It now has 46 business departments and 3 business departments under construction. The business has also spread out and gone across the country. Similar to Pacific Securities, Hongta Securities' branches are also mainly concentrated in Yunnan, where its headquarters is located. The net profit last year was almost three times that of Pacific Securities: it achieved operating income of 1.113 billion yuan, an increase of 14.22% year-on-year; and net profit of 368 million yuan, an increase of 8.70% year-on-year.
In addition, Hongta Securities has 3 wholly-owned subsidiaries and 1 holding subsidiary: Hongta Futures, Hongzheng Lide Capital, Hongzheng Mean Square Investment and Hongta Red Clay Fund, which are currently involved in public funds, futures and private equity.
In contrast, Pacific Securities has obviously missed the precious decade of advancing. The company is currently a local securities company that resides in a corner. It only has two wholly-owned subsidiaries, Taizheng Capital and Taizheng Feifan. It has a stake in Lao-China Securities overseas subsidiaries, and its financial business is extremely single.
"The company's entire development strategy is problematic, it is too backward and conservative, and has not kept up with the pace of industry development at all." said a senior industry observer.
When facing the market's doubts about the company's management and strategy, Pacific Securities is always confident. "It will steadily advance the implementation of the development strategy and business plan, further improve the company's operating management level, and control financial costs. At the same time, the company will actively expand other new businesses to improve the company's performance." But it still does its own way and slowly runs
Over the past ten years of strategic mistakes and tactics are inappropriate?
In the past 10 years, the business structure of securities companies has undergone earth-shaking changes. Traditional brokerage business has declined, and investment banking and large asset management business have risen rapidly; securities companies' businesses are rapidly becoming Internet-oriented under the driving force of technological innovation; under the premise of strict risk control and standardization, the matching of technological investment and capital strength has made securities companies' business more professional and market-oriented. In particular, in the context of net capital assessment, securities companies rely highly on capital strength in their various businesses.
Pacific Securities, as it stated, "actively expanding other new businesses to improve the company's performance level"?
For example, brokerage business, a reporter from Securities China found that in the face of fierce market-oriented commission competition, Pacific Securities only requires branches to make appropriate adjustments based on local conditions, and has not taken actual actions to improve services and enhance competitiveness.
On the other hand, under the sweeping of the Internet, the commission was not actively adjusted to the industry average, which also reflects some shortcomings of the company in terms of market awareness and management mechanism. In the industry's downturn market, many small and medium-sized investors are more sensitive to commissions. Under the new policy of other value-added services, and one-person and three-person new policy, the company's commissions have caused large-scale loss of customers.
Securities China reporter compared the first annual report of Pacific Securities' listing in 2007 and the 2017 annual report, and found that the company's statements on "operating plans and the capital needs and use plans required to realize the future development strategy" in the past 10 years, in addition to adding "strengthening institutional business development", "research institutes to do big seller research business", "mobile Internet financial business", etc.; even in the 2018 plan, the expansion actions such as "establishing or participating in holding fund management companies and mergers and acquisitions of futures companies" were deleted.
Brokerage China reporters found after interviewing the brokerage business departments of many securities companies that Pacific Securities' main revenue is highly dependent on traditional economic business. In the context of the continued decline in revenue share of other securities brokerage businesses, the company is still high. The company's brokerage business revenue accounted for 76.63% of the company's total profit in the first half of last year, while the average proportion of the overall brokerage business revenue in the entire industry was 26.37% last year; at the same time, the company's asset management business was basically unable to support the transformation of retail business; backend technology could not support the onlineization of outlets; Pacific Securities' investment banking business continued to suffer losses last year, and IPOs, private placement, and share allocations were not collected. As a listed brokerage firm in Yunnan, local projects in Yunnan were stolen by other brokers.
"I feel that companies have always been very different from other companies in recent years." The reporter's investigation also frequently confirmed the situation revealed by insiders of Pacific Securities.
"The performance is getting worse every year, and the stock price plummeted." This is a helpless question from investors on the Shanghai Stock Exchange e-interactive platform. What is the reason why Pacific Securities has become a poor student in the eyes of investors? The data is the best way to tell the problem.
Judging from the ranking of listed securities companies in 2017, Pacific Securities ranked last in revenue and net profit. In addition to data, the market has more labels to Pacific Securities: lightning listing, performance at the bottom all year round, huge losses in proprietary investment, bizarre high salaries for executives, and strategies cannot keep up with the market rhythm... How did Pacific Securities, which has been listed for more than 10 years, become a poor student in the eyes of investors?
new chairman was ordered to go public for more than 10 years, and Pacific Securities is about to welcome its second chairman.
Pacific Securities issued an announcement in early June stating that the company's chairman Zheng Yanan applied to resign from his position as chairman, and the company's board of directors elected director Yang Zhifeng as the company's chairman, and he would officially take office after obtaining the qualification to serve as chairman of the securities company.
Before taking over as chairman, Yang Zhifeng was one of the directors of Pacific Securities. He served as executive director and general manager of Shenzhen Jinghuachi Technology Investment, executive partner of Beijing Jingcheng Ruizhi Investment Management Partnership (General Partnership), and executive partner of many investment companies.
The most urgent problem facing the new chairman is that the company's profitability is too weak.
According to statistics from Securities China reporters, from 2007 to 2017, Pacific Securities achieved a cumulative operating income of 11.056 billion yuan and a net profit of 3.374 billion yuan.
In 2017, 11 brokerage firms in the industry had revenue of more than 11.1 billion yuan, and 10 had net profits of more than 3.4 billion yuan. This means that the accumulated profits of Pacific Securities after ten years of hard work are not as much as those of these 10 brokerages in a year.
In addition to Pacific Securities' revenue dilemma, what is placed in front of the new chairman is also the enthusiastic expectations of the majority of investors.
From the company's secondary market performance, as of June 29, Pacific Securities fell by more than 35% this year, close to the lowest since its listing in the past few days; if it had bought and held it for more than 10 years since its listing, the decline was more than 80%.
Brokerage China reporter saw on the Shanghai Stock Exchange's Shanghai Stock Exchange e-interactive platform that many investors raised questions about Pacific Securities' performance, stock price, business, etc.
stock price is a true reflection of the fundamentals of the company and the most intuitive display of operating performance. Pacific Securities' operating data has always been at the bottom among listed brokers. In 2017, Pacific Securities ranked last in revenue and net profit.
As a small and medium-sized brokerage firm, the company's business scale naturally cannot be compared with that of large brokerage firms, but the company's other detailed indicators are also "old" in the industry. The company's return on equity (ROE) is 1.32%, the last among all listed brokerages, with an industry median value of 6.01%.
Regarding the declining performance, the company has also repeatedly stated that it will continue to steadily advance the implementation of its development strategy and business plan, actively explore business, and explore new profit growth points.
Missing the rapids and making progress in the precious decade
The past 10 years are the 10 years of great changes in the international and domestic financial landscape after the financial crisis in 2008.
Economy of emerging market countries represented by China has taken off in full swing, emerging currencies and emerging finance have risen, and a large number of financial institutions have grown rapidly. From the perspective of the securities industry alone, many securities companies have shared the huge dividends of China's development in the past 10 years.
In February 2010, Huatai Securities was listed. Although it is more than two years later than Pacific Securities, this Jiangsu-based brokerage firm has quickly become one of the top five brokers in the industry by leveraging the capital market; Guojin Securities in Chengdu has now become a new comprehensive brokerage firm, and its various businesses have grown rapidly.
is also another non-listed securities company on Beijing Road, Kunming City, Yunnan Province - Hongta Securities . It now has 46 business departments and 3 business departments under construction. The business has also spread out and gone across the country. Similar to Pacific Securities, Hongta Securities' branches are also mainly concentrated in Yunnan, where its headquarters is located. The net profit last year was almost three times that of Pacific Securities: it achieved operating income of 1.113 billion yuan, an increase of 14.22% year-on-year; and net profit of 368 million yuan, an increase of 8.70% year-on-year.
In addition, Hongta Securities has 3 wholly-owned subsidiaries and 1 holding subsidiary: Hongta Futures, Hongzheng Lide Capital, Hongzheng Mean Square Investment and Hongta Red Clay Fund, which are currently involved in public funds, futures and private equity.
In contrast, Pacific Securities has obviously missed the precious decade of advancing. The company is currently a local securities company that resides in a corner. It only has two wholly-owned subsidiaries, Taizheng Capital and Taizheng Feifan. It has a stake in Lao-China Securities overseas subsidiaries, and its financial business is extremely single.
"The company's entire development strategy is problematic, it is too backward and conservative, and has not kept up with the pace of industry development at all." said a senior industry observer.
When facing the market's doubts about the company's management and strategy, Pacific Securities is always confident. "It will steadily advance the implementation of the development strategy and business plan, further improve the company's operating management level, and control financial costs. At the same time, the company will actively expand other new businesses to improve the company's performance." But it still does its own way and slowly runs
Over the past ten years of strategic mistakes and tactics are inappropriate?
In the past 10 years, the business structure of securities companies has undergone earth-shaking changes. Traditional brokerage business has declined, and investment banking and large asset management business have risen rapidly; securities companies' businesses are rapidly becoming Internet-oriented under the driving force of technological innovation; under the premise of strict risk control and standardization, the matching of technological investment and capital strength has made securities companies' business more professional and market-oriented. In particular, in the context of net capital assessment, securities companies rely highly on capital strength in their various businesses.
Pacific Securities, as it stated, "actively expanding other new businesses to improve the company's performance level"?
For example, brokerage business, a reporter from Securities China found that in the face of fierce market-oriented commission competition, Pacific Securities only requires branches to make appropriate adjustments based on local conditions, and has not taken actual actions to improve services and enhance competitiveness.
On the other hand, under the sweeping of the Internet, the commission was not actively adjusted to the industry average, which also reflects some shortcomings of the company in terms of market awareness and management mechanism. In the industry's downturn market, many small and medium-sized investors are more sensitive to commissions. Under the new policy of other value-added services, and one-person and three-person new policy, the company's commissions have caused large-scale loss of customers.
Securities China reporter compared the first annual report of Pacific Securities' listing in 2007 and the 2017 annual report, and found that the company's statements on "operating plans and the capital needs and use plans required to realize the future development strategy" in the past 10 years, in addition to adding "strengthening institutional business development", "research institutes to do big seller research business", "mobile Internet financial business", etc.; even in the 2018 plan, the expansion actions such as "establishing or participating in holding fund management companies and mergers and acquisitions of futures companies" were deleted.
Brokerage China reporters found after interviewing the brokerage business departments of many securities companies that Pacific Securities' main revenue is highly dependent on traditional economic business. In the context of the continued decline in revenue share of other securities brokerage businesses, the company is still high. The company's brokerage business revenue accounted for 76.63% of the company's total profit in the first half of last year, while the average proportion of the overall brokerage business revenue in the entire industry was 26.37% last year; at the same time, the company's asset management business was basically unable to support the transformation of retail business; backend technology could not support the onlineization of outlets; Pacific Securities' investment banking business continued to suffer losses last year, and IPOs, private placement, and share allocations were not collected. As a listed brokerage firm in Yunnan, local projects in Yunnan were stolen by other brokers.
"I feel that companies have always been very different from other companies in recent years." The reporter's investigation also frequently confirmed the situation revealed by insiders of Pacific Securities.In recent years, almost all brokerage businesses have been transforming into wealth management, while Pacific Securities has not yet had wealth management business; various brokers are vigorously adding branches, opening up various business lines through the branch model and expanding their business lines, while Pacific Securities still has many barriers between the various business lines; this year, most brokers' investment banking business is simplifying their operations and shrinking costs, while Pacific Securities is still recruiting troops and expanding its team; the same is true for proprietary business. Pacific Securities was greatly damaged by its heavy holdings in small stocks on the GEM last year, and has not yet recovered.
and even many research institutes admit that "we rarely pay attention to Pacific Securities and basically have not issued separate research reports on the company." A well-known non-banking researcher said that the entire research industry also rarely pays attention to this securities company.
Interestingly, in the face of shareholders' doubts, Pacific Securities stated that all employees of the company are working hard to improve the company's profitability.
Some executives' salaries rose against the trend
Pacific Securities said that the company is working hard, but the company's development is more inseparable from the company's executive team. Pacific Securities has been criticized by the most widely cited by the outside world. The high salary of executives is also the problem of high salaries of executives.
The market has always had questions about the high salary of Pacific Securities executives, but the company always simply responds that the salary system design fully considers the purpose of attracting, retaining and motivating outstanding talents. At the same time, it strictly implements the application of performance appraisal results, and measures to reduce executive compensation have been taken.
So, is this really true? How much has it been reduced?
According to Pacific Securities' 2017 annual report, among the company's executive team, the highest annual salary is General Manager Li Changwei, with a salary of 6.8407 million yuan, an increase of 16.82% year-on-year; followed by Deputy General Manager and Secretary of the Board Tang Weihua, with a salary of 5.8141 million yuan, an increase of 64.34% year-on-year.
According to incomplete statistics, among listed securities companies, more than 20 executives of listed securities companies have annual salaries of more than 5 million yuan, and 3 executives of Pacific Securities are on the list.
Pacific Securities annual report data shows that Li Changwei's annual salary from 2012 to 2017 was RMB 532,100, RMB 1.5546 million, RMB 2.1542 million, RMB 5.0974 million, RMB 5.8559 million and RMB 6.8407 million, respectively. It can be clearly seen from the data that the personal salary of the company's executives is increasing year by year, and the personal salary is the highest among the company's executives.
Li Changwei's annual salary of nearly 7 million yuan is even far exceeding the salary level of the presidents of many large listed securities companies.
The highest salary Li Changwei is the third general manager after Pacific Securities' listing and the longest-serving general manager of the company. He has served as a cadre of the Henan Economic Research Center, a teacher at the Central Party School, general manager of the Haikou Branch of Shenyin Wanguo , deputy general manager and general manager of the business department of Shenyin Wanguo Beijing headquarters, deputy general manager and inspector general of Fuguo Fund.
"The controlling shareholder trusts Li Changwei very much and basically does not interfere with Pacific Securities' affairs. The only requirement is to keep the license." Another person close to Pacific Securities revealed that Li Changwei and Tu Jian, the actual controller of Pacific Securities, are Peking University alumni. At that time, Li Changwei entered the company through a friend's recommendation and was directly appointed as the general manager.
The current major shareholder of Pacific Securities is Huaxin Liuhe, and Tu Jian, the largest natural person shareholder of Huaxin Liuhe, has also indirectly become the actual controller of Pacific Securities. An industry insider who did not want to be named revealed that "Tu Jian personally manages his own business, and the rest of the business is fully entrusted to Li Changwei."
"has neither strategy nor tactics." Analysts familiar with Pacific Securities said that Li Changwei seldom takes the initiative to "go out" to participate in industry exchanges and learning activities.
"The company's senior management is particularly stable, and external talents have basically no chance to come in." This is a common view of Pacific Securities employees. In recent years, the company has also recruited some middle and senior management personnel from the market, but because they are unable to perform their skills at Pacific Securities, they have left one after another.
"In the era of Pacific Securities under Wang Chao, a strong securities investment banking team was introduced. In the case of a small number of companies issued and listed, there were still two IPOs, and the business developed well for a while.” After the general manager changed its term in 2012, the profitability of investment banking business has been declining, from a profit of more than 50 million in 2011, less than 19 million in 2012, and even a loss of 6.16 million in 2013.
If the salary of Pacific Securities executives has been rising all the time, the company's performance is mediocre, but these high-paying managers have caused the company to receive various regulatory inquiries and fines due to lack of internal control mechanisms and management chaos, then it cannot be explained in any case.
According to incomplete statistics from reporters, since 2013, Pacific Securities has frequently received various regulatory inquiries and fines 13 times. 11 of them occurred after 2016, which is relatively rare in the securities industry. .
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” After the general manager changed its term in 2012, the profitability of investment banking business has been declining, from a profit of more than 50 million in 2011, less than 19 million in 2012, and even a loss of 6.16 million in 2013.If the salary of Pacific Securities executives has been rising all the time, the company's performance is mediocre, but these high-paying managers have caused the company to receive various regulatory inquiries and fines due to lack of internal control mechanisms and management chaos, then it cannot be explained in any case.
According to incomplete statistics from reporters, since 2013, Pacific Securities has frequently received various regulatory inquiries and fines 13 times. 11 of them occurred after 2016, which is relatively rare in the securities industry. .
million users are watching
Securities China is a new media under the Securities Times, the authoritative media of the securities market. Securities China enjoys copyright on the original content published on the platform. Reproduction is prohibited without authorization, otherwise corresponding legal liability will be pursued.
ID: quanshangcn
Tips: Enter the securities code and abbreviation on the WeChat account of Securities China to view individual stock market and latest announcements; enter the fund code and abbreviation to view the net value of the fund.
has a good habit, called like
