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Source: Securities industry experts

The layoffs are real! The first investment bank subsidiary reported a per capita salary cut of 430000.

The annual reporting season is coming to an end, and the first quarterly reports of listed securities firms are coming out one after another. However, the annual report, performance and compensation data of the first brokerage investment banking subsidiary shocked experts.

Turn losses into profits

At the turn of the year, founder Securities underwriting and recommendation Co., Ltd. (founder Investment Bank) disclosed its 2023 annual report. As of the press release, this is the annual report of the only securities firm investment bank subsidiary of the China Securities Association.

According to the data, founder Investment Bank's operating income in 2023 was 2. 5%.Playtheroulette.17 billion yuan, down 59.36% from the same period last year; net profit was 172 million yuan, compared with-97 million yuan in the same period in 2022, turning losses into profits. The main investment banking business collected 179 million yuan, down 64.88% from the same period last year. Revenue from proprietary business was 13 million yuan, up 77.62% from the same period last year, while revenue from credit business was 11 million yuan, up 34.16% from the same period last year.

Underwriting shrinks

With regard to the performance of the main business, founder Investment Bank said that the company relies on the platform of the parent company, gives full play to its collaborative advantages, improves its business process and internal control system, adjusts and optimizes its organizational structure, actively introduces talents, adjusts collaborative planning, strengthens project contracting and reserves, and continues to improve its comprehensive financial service capacity.

The income from the equity business is 77 million yuan, with a total underwriting amount of 4.123 billion yuan, which is significantly lower than the 7.089 billion yuan in 2022. The industry ranks 25th, up 4 places from the same period last year. From the perspective of specific projects, Ningxin New Materials (839719.BJ) 1 Beijing Stock Exchange IPO project, raising 342 million yuan; China Mineral Resources (002738.SZ), Dale New Materials (300700.SZ), Guangdong Hongtu (002101.BJ) three listed companies refinancing projects, raising a total of 3.781 billion yuan. The new third board business continues to supervise 73 enterprises, including 16 in the innovation layer and 57 in the basic layer.

Bond business income of 102 million yuan, unknown year-on-year data. Including corporate bonds, corporate bonds, financial bonds, local government bonds, etc., the underwriting scale of all kinds of bonds is 19.682 billion yuan, of which corporate bonds and corporate bonds are 14.126 billion yuan, ranking 47th in the industry, while in the same period in 2022, this ranking is 28th.

In addition, founder Investment Bank won the "2023 China Securities Industry IPO sales Investment Bank Junding Award" sponsored by the Securities Times.

Pay cut and lay off staff

By the end of 2023, founder Investment Bank had 317 regular employees, down 12.19% from the same period last year, of which 232 were in the investment banking business, down 21.62% from the same period last year.

Considering that founder Investment Bank added 2 sponsor representatives during the reporting period, the total number reached 70. This means that the number of grass-roots personnel who have failed to "stand out" has decreased even more significantly.

According to the "three tables" data, founder's total compensation in 2023 was 225 million yuan, down 45.33 percent from 412 million yuan in 2022. Based on the total number of employees at the end of the reporting period, the per capita salary was reduced from 1.1402 million yuan to 709800 yuan, a reduction of 430400 yuan, or 37.75%.

Also affected are the management of founder Investment Bank. The salary of senior executives, including the chairman and managers, totaled 9.2745 million yuan in 2023, down 34.14% from the same period last year.

Founder now has five key executives, according to the China Securities Association. Mr. Yuan Yuping, who was transferred to founder Securities by Ping an Securities in early 2023, served as a member and vice president of founder Securities Executive Committee, as well as chairman, general manager and secretary of the board of directors of founder Investment Bank. According to the annual report, he received only 1.354 million yuan in salary at founder Securities. So, is the remuneration of other senior executives of founder Investment Bank not much the same?

As the first investment bank subsidiary to disclose its annual report, founder's performance and salary changes directly reflect the dilemma faced by the securities industry, especially small and medium-sized securities firms.

In the future, founder Investment Bank may need to formulate more effective strategies to optimize business structure and improve service quality in order to cope with the changing and challenges of the market. At the same time, in terms of social responsibility and cultural construction, we also need to pay attention to the salary and benefits of employees to maintain the stability and cohesion of the team.