Guosen Securities Co., Ltd.: history, ownership, mission, how it works & makes money

A Brief History of Guosen Securities Co., Ltd.

Guosen Securities Co., Ltd., founded in 1994, has grown to become one of China's leading securities firms. Headquartered in Shenzhen, the company primarily offers brokerage, wealth management, investment banking, and asset management services. As of 2023, Guosen is recognized as one of the top 10 brokerages in China by total assets and revenue.

In its early years, Guosen focused on retail brokerage services, which contributed significantly to its growth. The firm established a reputation for reliability and customer service in the highly competitive market. By 2007, Guosen Securities had expanded its service offerings to include institutional brokerage and asset management, further diversifying its revenue streams.

Guosen Securities went public on the Shenzhen Stock Exchange in 2010, significantly boosting its capital and market presence. The initial public offering (IPO) raised approximately 3.4 billion CNY. This access to capital allowed the firm to invest in technology and expand its service offerings in both domestic and international markets.

Over the years, Guosen has pursued strategic partnerships and acquisitions to enhance its service capabilities. In 2018, they formed a joint venture with a foreign financial institution, which was pivotal in enhancing their product offerings and market expertise. By 2023, Guosen reported a total asset size of around 200 billion CNY.

In 2022, Guosen Securities reported a revenue of approximately 12.5 billion CNY, reflecting a steady growth trajectory amid challenging market conditions. The net profit for the same year was around 3 billion CNY, showcasing the firm's ability to maintain profitability through effective cost management and diversified revenue streams.

As of the first quarter of 2023, Guosen Securities continued to innovate, launching several digital financial services platforms. This move aims to attract younger investors, tapping into the growing trend of retail trading. The firm’s market share in retail brokerage services has increased to approximately 6.5% as of Q1 2023.

Guosen has also focused on compliance and risk management, especially following regulatory changes in the Chinese securities industry. The company has invested heavily in technology to improve its trading systems and customer service, allowing it to maintain a competitive edge.

Going forward, Guosen Securities aims to enhance its international presence, particularly in Asia-Pacific markets. By leveraging strategic partnerships and new technologies, the firm is positioned to navigate the complex landscape of the global financial markets.

A Who Owns Guosen Securities Co., Ltd.

Guosen Securities Co., Ltd. is a prominent financial services firm based in China, primarily involved in securities brokerage, investment banking, and asset management. As of the latest reports, the ownership structure of Guosen Securities is characterized by a mix of institutional and individual shareholders.

As of March 2023, the largest shareholders include:

• Guosen Securities Group Co., Ltd. - owning approximately 43.09% of the total shares.
• China National Petroleum Corporation - holding around 8.88% of the shares.
• Other institutional investors and individuals own the remaining 48.03%.

Below is a detailed table of the major shareholders of Guosen Securities Co., Ltd. along with their respective ownership percentages:

As per the last financial report for the fiscal year ending December 31, 2022, Guosen Securities reported total assets of approximately ¥107.5 billion, with a net income of ¥3.2 billion, reflecting a year-on-year increase of 15%.

Additionally, Guosen Securities has been expanding its operational presence, with significant strategic partnerships and joint ventures. In 2022, they launched a digital wealth management platform which has attracted over 200,000 registered users in its first six months.

The share performance of Guosen Securities on the Shenzhen Stock Exchange also reflects investor sentiment, with a current market capitalization of approximately ¥68 billion as of October 2023, showing fluctuations related to regulatory changes and market trends in the Chinese financial sector.

Guosen Securities Co., Ltd. Mission Statement

Guosen Securities Co., Ltd. is committed to providing comprehensive financial services that meet the evolving needs of its clients. The company’s mission emphasizes three core principles: client-centric service, innovation in financial products, and sustainable growth.

The mission statement reflects the company’s aim to achieve excellence through reliable, high-quality financial solutions while maintaining a strong focus on client satisfaction. Guosen Securities positions itself as a leading provider in the securities industry, catering to individual and institutional investors alike.

Core Values

• Integrity: Adhering to ethical standards in all operations.
• Innovation: Leveraging technology to create advanced financial services.
• Sustainability: Committing to responsible investment practices.
• Collaboration: Fostering teamwork to deliver optimal solutions.

Financial Overview

As of the end of 2022, Guosen Securities reported a net profit of ¥6.13 billion, reflecting a growth of 11.2% year-over-year compared to ¥5.50 billion in 2021. The company's total assets amounted to ¥137.3 billion, with a return on equity (ROE) of 7.5%.

Market Position

Guosen Securities ranks among the top securities firms in China, holding a significant market share in brokerage and asset management. The company’s trading volume reached ¥1.1 trillion in 2022. Its position in the industry is reinforced by a strong network of branches across the country.

Guosen Securities continues to invest in technology and innovation to enhance its offerings, with a dedicated budget of approximately ¥1.3 billion for digital transformation initiatives in 2023. This strategy aims to improve operational efficiency and expand the range of services available to clients.

Strategic Goals

The mission statement aligns with the company’s strategic goals to strengthen its competitive edge in the following areas:

• Enhancing client relationships through personalized services.
• Expanding market reach both domestically and internationally.
• Implementing advanced technologies to improve trading platforms.
• Developing environmentally sustainable investment options.

In the context of these objectives, Guosen Securities aims to maintain steady growth and foster trust among its stakeholders while addressing market challenges effectively. The company's mission serves as a guiding principle for all its endeavors, ensuring alignment with its long-term vision and operational practices.

How Guosen Securities Co., Ltd. Works

Guosen Securities Co., Ltd. is one of the prominent securities firms in China. It operates through a variety of segments, including brokerage services, investment banking, asset management, and wealth management. As of 2023, the company has a registered capital of approximately RMB 16.2 billion and is listed on the Shenzhen Stock Exchange, with shares trading under the ticker symbol 002736.

In the brokerage services segment, Guosen Securities provides a range of services to individual and institutional investors, including stock trading, margin financing, and securities lending. For the fiscal year ended December 31, 2022, the brokerage division reported a revenue of RMB 5.9 billion, marking a year-on-year increase of 11%.

In addition, Guosen Securities' investment banking segment is active in underwriting equity and debt securities, advising on mergers and acquisitions, and providing financial advisory services. In 2022, the investment banking division generated revenues of RMB 3.1 billion with a year-on-year growth of 8%.

The asset management arm of Guosen Securities has been expanding rapidly, managing a total of RMB 200 billion in assets by the end of 2022, with a net inflow of RMB 30 billion for that year. Revenue from this segment accounted for approximately RMB 2.4 billion, reflecting a growth of 15%.

Guosen Securities benefits from strategic partnerships and a solid client base, enabling it to serve both local and international clients effectively. Its focus on technology and digital transformation has also allowed the company to enhance its trading platforms and improve customer experiences.

As of 2023, Guosen Securities' total assets stood at approximately RMB 134 billion, with a net profit of RMB 3.8 billion for the fiscal year 2022, representing a net profit margin of around 25%.

The firm has maintained a solid capital position, with a capital adequacy ratio of 13.2%, above the regulatory minimum requirement in China. This strong capital base provides Guosen Securities the flexibility to pursue growth opportunities and enter new markets.

Overall, Guosen Securities Co., Ltd. operates a diversified business model, leveraging its strengths in brokerage, investment banking, and asset management to create value for clients and shareholders alike.

How Guosen Securities Co., Ltd. Makes Money

Guosen Securities Co., Ltd. is a major player in the Chinese financial markets, offering a spectrum of financial services that drive its revenue streams. The company generates income through various channels, including brokerage services, asset management, investment banking, and proprietary trading. Below is a breakdown of these core revenue sources.

Brokerage Services

Brokerage services constitute a significant portion of Guosen's revenue. In 2022, the company reported a brokerage commission income of approximately RMB 4.8 billion, reflecting a growth rate of 15.2% compared to the previous year. This revenue is mainly derived from retail and institutional trading activities.

Asset Management

Guosen's asset management segment has also been a crucial revenue driver. As of the end of Q3 2023, the total assets under management (AUM) stood at around RMB 350 billion, with management fees contributing roughly RMB 1.2 billion to the firm’s revenue. The asset management business has grown due to increased demand for wealth management products by affluent clients.

Investment Banking

In the investment banking arena, Guosen Securities facilitated a number of significant transactions, generating advisory fees and underwriting income. For the fiscal year 2022, the investment banking division reported revenues of RMB 2.9 billion, primarily from initial public offerings (IPOs) and mergers and acquisitions (M&A) advisory. The company acted as lead underwriter for over 30 IPOs during this period.

Proprietary Trading

Proprietary trading is another important source of income for Guosen. In the first half of 2023, the proprietary trading division achieved profits totaling RMB 1.5 billion. This segment benefits from fluctuations in equity markets and the firm’s ability to trade on its own account.

Financial Overview

Market Position and Competitive Advantage

Guosen Securities has established a robust market position, ranking among the top securities firms in China. The company’s competitive advantage lies in its extensive network and relationships with domestic and international clients, as well as its comprehensive service offerings that attract a broad client base.

Additionally, as of Q3 2023, Guosen Securities holds a market share of approximately 5.4% in the brokerage segment of the Chinese securities industry, underscoring its influence and scalability in the market.

Future Projections

Looking forward, Guosen Securities anticipates steady growth in its revenue streams. Analysts project that by 2025, total revenue could reach around RMB 10 billion, driven by continued growth in asset management and investment banking, coupled with an increase in retail trading volumes.

This outlook is supported by trends in the Chinese economy, as rising disposable incomes lead to more retail investors entering the market and institutional investors seeking diversified financial services.