Industrial Securities’ tens-billion rights issue is here. What does Industrial Securities do?

According to an announcement from Industrial Securities, the company's allotment issue officially entered the payment period on August 17. Investors with the intention of allotment need to carry out the corresponding allotment subscription operations at the stock custody brokerage during the payment period.

So today the editor is here to sort out the relevant knowledge of Industrial Securities, let’s take a look! Industrial Securities said that the total funds raised in this placement of shares are expected to be no more than RMB 14 billion, after deducting issuance expenses.

It is planned to be entirely used to increase the company's capital, supplement working capital, serve the development of the real economy and meet residents' wealth management needs, and comprehensively enhance the company's market competitiveness and risk resistance capabilities.

According to previous relevant announcements by Industrial Securities, the funds raised from this placement will mainly be invested in four major business sectors.

First, no more than 7 billion yuan will be used to develop margin trading and securities lending business; second, no more than 1.8 billion yuan will be used to develop investment banking business; third, no more than 4.5 billion yuan will be used to develop investment trading business; fourth, no more than 700 million yuan will be used to develop investment banking business.

Used to increase investment in information systems and compliance risk control.

Industrial Securities stated in the announcement that the margin financing and securities lending business is conducive to improving investors’ capital utilization, providing investors with diversified investment opportunities and risk avoidance means, expanding targets at the regulatory level, optimizing securities refinancing transaction rules, and relaxing

Driven by policies such as price limits on stocks on the Science and Technology Innovation Board and GEM, they are increasingly favored by high-net-worth clients and professional institutional investors.

At the same time, margin trading assets do not leave the account, the risks are relatively controllable, and the securities firm that opens the account is unique. It has gradually become an important tool for major securities firms to acquire and retain high-net-worth customers, product households, and professional institutional investors. The comprehensive business effect is high

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“In recent years, the market share of Industrial Securities’ financing and financing business has continued to increase and has established a good growth trend. However, the margin financing and securities lending business is a capital-consuming business. Due to the limitation of net capital scale, the company’s business continues to grow and faces major bottlenecks. It is in urgent need of

Replenish net capital, open up space for business growth, and ensure continued growth of business scale," Industrial Securities said in the announcement.

Regarding the investment banking business, Industrial Securities said that under the background of the registration system, many securities firms have significantly improved the capital strength of alternative subsidiaries that perform the registration-based follow-up investment responsibilities in the past two years. At the same time, they have actively explored cooperation with local governments and state-owned enterprises to establish large-scale industrial funds to empower

It will strengthen the real economy, cultivate and incubate future investment banking reserve projects, and take multiple measures to seize the development opportunities of investment banking business.

In the future, Industrial Securities will increase the allocation of funds for strategic customer projects, while firmly seizing the development opportunities of national strategic emerging industries, and increasing the investment capacity of Industrial Securities Investment Management Co., Ltd. and Industrial Securities Innovation Capital, which have registration-based co-investment and primary market equity investment licenses.

Manage the capital strength of the two subsidiaries of the company, increase co-investment and industrial investment cultivation, and enhance the role of large investment banks in promoting the rapid development of potential innovative and entrepreneurial enterprises and promoting the implementation of national industrial policies and industrial structure upgrading goals.

reserve.

Industrial Securities also regards investment and trading business as a strategic business that needs to be developed in the future.

Industrial Securities stated that as the degree of institutionalization of the market increases, the investment trading business aimed at meeting the rapidly growing trading and risk hedging needs of institutional investors has gradually become a key part of the differentiated capabilities of securities firms in serving institutional customers, and the business space is broad.

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At present, some securities firms have made considerable profit contributions from their investment and trading business by virtue of their advantages in innovative licenses, capital scale and risk management.

In the future, Industrial Securities will, on the basis of adhering to the risk-neutral strategy, promote innovative license applications and business development, take advantage of the opportunities that the competitive landscape of innovative businesses has not yet solidified to achieve catch-up, and form the company's core capabilities in expanding and maintaining institutional customers as well as important future goals.

source of profit.

The last investment is focused on the two areas of information systems and compliance risk control.

Industrial Securities stated that the company plans to invest no less than 6% and 3% of the previous year’s operating income in information systems and compliance risk control in each of the next three years.

Stable performance development The securities industry's overall performance has remained at a good level in recent years, and Industrial Securities has also made breakthroughs.

In 2021, Industrial Securities achieved operating income of 18.972 billion yuan, net profit of 5.855 billion yuan, and net profit attributable to the parent company of 4.743 billion yuan, representing year-on-year increases of 7.92%, 27.74%, and 18.48% respectively, setting the best performance in history for two consecutive years.

Industrial Securities has carried out vigorous reforms and innovations in wealth management and large institutional business, which have also been the two focuses of the company's business development in the past two years.

In terms of wealth management business, the company's product sales revenue in 2021 ranks among the top ten in the industry. The medium and long-term investment performance of its holding subsidiary Industrial Securities Global Fund has been at a good level in the industry, and its performance is also very stable.

According to the data, as of the end of December 2021, the total asset management scale of Industrial Securities Global Fund was 673.002 billion yuan, of which the scale of public funds was 590.175 billion yuan, an increase of 30% from the end of the previous year.