High-level personnel frequently ＂change＂. Where does Everbright Securities go？
Source: Global Tiger Finance app
Author: Chen Bin
The chairman and supervisor of Everbright Securities both resigned on the same day, which is the third wave of high-level turmoil experienced by Everbright Securities following the "816 Oolong Finger" case in 2013 and the MPS project explosion in 2018. After a series of high-level personnel shocks, when will Everbright Securities get out of the quagmire?
In fact, the high-level personnel changes of Everbright Securities have never been just a problem of Everbright Securities, but they have a profound impact on the future of this veteran brokerage firm.
On the morning of May 6th, Everbright Securities held a meeting to announce the candidates for the new Party Secretary and Deputy Party Secretary of Everbright Securities. Zhao Ling, former vice president and secretary of the board of directors of Everbright Bank, and Liang Yi, former senior expert of the Internal Control and Compliance Department/Legal Department of Everbright Group, took over.
Zhao Ling and Liang Yi were the personnel supplements after the former chairman Yan Jun was removed and the supervisor Liu Jiping was demoted on April 19th. Liu Qiuming, president of Everbright Securities, was admonished and talked with the chairman and supervisor. Fan Hongbo, secretary of the Disciplinary Committee, was warned; Vice President Zhong Wang and Vice President Mei Jian were criticized and educated.
It is reported that the main reason for the "mass extinction" of the senior management of Everbright Securities is that it violates the spirit of the eight central regulations. Yan Jun, the former chairman, is currently identified as violating eight regulations, including illegal banquets in Beijing, illegal reimbursement, etc. Whether other circumstances are involved remains to be investigated and dealt with; As the chairman of the board of supervisors, Liu Jiping was accused of failing to perform his duties in supervision and management.
In fact, this is not the first time that Everbright Securities has suffered a shock at the top. In the "816 Oolong Finger" incident in 2013, the president resigned; The MPS project exploded, and the chairman and other senior officials resigned; Repeated risk exposure is a "torture" to the internal control and investment decision of Everbright Securities.
High-level "mass destruction",
Chairman and supervisor have left their posts.
Yan Jun summed up Xu Haoming’s "Oolong Finger" incident and Xue Feng’s MPS incident. He thought that he could enjoy the success without making trouble during his term of office, but in the face of temptation and nepotism, Yan Jun made a mistake.
On April 20th, Everbright Securities announced that Chairman Yan Jun and Chairman Liu Jiping resigned due to work adjustment, and Mr. Liu Qiuming, the company’s director and president, performed the duties of chairman on his behalf.
Yan Jun was born in Zhengzhou, Henan Province in 1970. Graduated from Tianjin University, Nankai University and China Academy of Social Sciences, with bachelor’s degree in engineering, master’s degree in economics and doctor’s degree in economics.
After graduation, Yan Jun went to work in ICBC. He once worked in the positions of deputy director, deputy director, director and deputy general manager of the circulation trade credit department of the head office of ICBC.
In November 2007, ICBC Financial Leasing Co., Ltd. was approved to start business. At that time, Yan Jun became a member of the first leadership team of the company as a vice president.
After leaving ICBC Financial Leasing, Yan Jun went to ICBC Jiangxi Branch as the vice president. In 2015, he was transferred back to the headquarters of ICBC, and this time he served as the general manager of ICBC’s special financing department.
Yan Jun’s career began to shine after leaving ICBC and entering Everbright Group. After joining Everbright Group in 2018, he first served as the executive deputy director of the office in the Group’s "Leading Group for Comprehensively Deepening Reform".
The turnaround occurred in 2019. Because of the MPS risk incident, at that time, Xue Feng, the chairman of Everbright Securities, and other senior executives were successively held accountable around 2019. On January 17, 2019, the Party Committee of Everbright Group decided to replace Xue Feng with Yan Jun as the member and secretary of the Party Committee of Everbright Securities.
From the banking system to the brokerage system, he changed jobs across industries. At the beginning, he "recruited talents" and openly recruited a number of key positions for the society and the company, with the intention of bringing fresh blood to Everbright Securities. But not long after, Yan Jun began to "cronyism" and "change blood" in important positions to cultivate his confidant.
Many professional positions, including auditing and compliance, have been affected. The drastic personnel changes have caused internal people’s hearts to float, and there have been many discussions. Many years of business backbones have begun to leave.
In May 2020, Peng Wensheng, chief economist of Everbright Securities, left for CICC; In August, Zhang Wenlang, chief macro analyst of Everbright Securities, resigned and went to CICC. In December, Hu Yali, director of Everbright Securities Research Institute, Jin Xing, assistant to the director and chief analyst of household appliances consumption group, Qiu Xiaofeng, deputy director and chief analyst of petrochemical industry, left their posts successively.
The above-mentioned resignees were once the backbone of Everbright Securities Research Institute, and their "departure" caused great damage to the vitality of Everbright Research Institute.
After Hu Yali left, Wang Hanqing, who served as the general manager of the human resources department of Everbright Securities and the head of the propaganda department of the Party Committee, became the new director.
It is worth noting that the brokerage research institute is a department with very high professional requirements, and it can be seen from Wang Hanqing’s past resume that he has not participated in the research business, which is very rare in the brokerage research institute.
The appointment and removal of such posts is only the tip of the iceberg. During Yan Jun’s administration, he also transferred a number of heads of middle and back-office functional departments to the front desk to be business leaders, and middle-level rotation often occurred. Such a management style that amateurs command experts has caused employees to be quite dissatisfied.
In addition, Everbright Securities under Yan Jun turned a blind eye to the mistakes made by confidants. At the end of 2020, Rendong Holdings experienced 14 down limits, and a number of brokers totaled nearly 3 billion yuan to step on the financing business of Lei Rendong Holdings.
Among them, Xu Junjie, the shareholder of Rendong Holdings, held 4,485,600 shares in the customer credit transaction guarantee securities account of Everbright Securities. According to the high price of more than 60 yuan at that time, the market value of the position reached over 270 million. The continuous down limit in the later period also made it impossible to sell the shares in the financing account.
According to the first financial report, the case of financing business of Rendong Holdings made Everbright Securities have to deduct a large amount of credit impairment losses. As the head of the credit business department, Wang Zhen is Yan Jun’s old department, and he has not been severely punished after causing losses to the company.
Counting Yan Jun’s three years in office, although he didn’t make a big mistake in the business like the two top leaders mentioned above, during his tenure, there were serious loopholes in cost control, and many important positions trained confidants, and the shackles such as one-word-of-mouth continued to consume the financial resources accumulated by Everbright Securities for many years, making its business performance mediocre.
Yan Jun was at the helm for three years.Industry rankings are "spinning" in place.
Old wounds have not healed and new marks have been added.
The frequent replacement of top leaders directly affects the operation of Everbright Securities.
Since the "816 Oolong Finger" incident in 2013, the company’s top management has experienced a round of replacement. Since then, Everbright Securities has entered the top ten in terms of revenue and net profit.
According to the data of China Securities Association, Everbright Securities ranked 11th in the industry in terms of operating income in 2014; In 2015, it remained in the 11th place; In 2016, revenue fell by over 40% year-on-year, and the industry ranking fell to 15th place.
From 2017 to 2020, the ranking of Everbright Securities in terms of revenue has been hovering between 12 and 15, and the fluctuating revenue has never surpassed 2015. It was not until 2021 that the revenue barely surpassed 2015.
The net profit has plummeted due to the impact of the MPS project, from the 12th in 2014 to the 39th in 2019. Until 2021, the net profit has not reached the level of 2015.
2019 is the year when Yan Jun began to take the helm of Everbright Securities. In the three years when Yan Jun took the helm, Everbright Securities has been accruing impairment losses for the MPS project. It took three years, and its revenue barely surpassed that of 2015 in 2021, but its net profit is far away, and its industry ranking remains the same.
According to the 2021 annual report, Everbright Securities recorded a revenue of 16.706 billion yuan and a net profit of 3.484 billion yuan, ranking 16th among brokers.
The sharp decline in net profit was from 2018, when the net profit was only 100 million. Since then, Everbright Securities has accrued liabilities for the MPS project for three consecutive years, with a total loss of 4.552 billion yuan for the MPS project for three years. In August 2020, Everbright Securities announced that its subsidiary Everbright Capital was sentenced to pay 3.116 billion yuan to China Merchants Bank and 400 million yuan to Huarui Bank, totaling 3.516 billion yuan.
The 2021 financial report shows that Everbright Securities has accrued an estimated debt of 5.284 billion yuan for MPS and other risk events. Such a high loss has seriously eroded the net profit of Everbright Securities in recent years.
"816 Oolong Finger" incident; Mine explosion in MPS project; The chairman of the board of directors, the chairman of the board of supervisors and other high-level officials violated eight provisions; The successive exposure to risks is not only an invisible mockery of Everbright Securities’ risk control and investment decision-making, but also a wake-up call.
Yan Jun resigned,
The high-level shock of Everbright Securities may have just begun.
From the "816 Oolong Finger" incident to the MPS risk explosion, Everbright Securities, which has just stepped out of the darkness, has violated eight regulations.
In 2013, due to the "816 Oolong Finger" incident, the management of Everbright Securities changed dramatically, and the former president Xu Haoming resigned.
Xue Feng, then deputy secretary of the Party Committee of Everbright Securities, was ordered to assume the responsibilities of Party Secretary, President and Vice Chairman of Everbright Securities.
It took two years, and with the spring breeze of the bull market in 2015, Everbright Securities came out of the "August 16 Incident". In November 2016, Xue Feng shouldered the three major positions of Chairman, Party Secretary and President of Everbright Securities. On October 10, 2017, Xue Feng resigned as the president of Everbright Securities and continued to serve as party secretary and chairman.
However, the good times didn’t last long. In the first half of 2019, the MPS risk event broke out, and Everbright Securities immediately experienced a round of senior management exchanges.
In April 2019, Xue Feng, chairman of Everbright Securities, announced his resignation, and Yan Jun, secretary of the Party Committee, succeeded Xue Feng as the chairman of the company. In August of the same year, Wang Yong, the chief risk officer, resigned; In October, CEO Zhou Jiannan resigned and compliance director Chen Lan left. At the same time, vice presidents Xiong Guobing, Wang Cuiting, director Ju Hao and business director Pan Jianyun left in the same year.
It is worth mentioning that Chen Lan became the compliance director of Everbright Securities in December 2008, and it has been 11 years since 2019. Xiong Guobing became the company’s vice president in May 2010, and he also served for 10 years when he resigned.
At the beginning of 2020, Liu Qiuming, the former chairman and general manager of Zhongmin Investment, took over the position of president of Everbright Securities. Liu Qiuming’s arrival temporarily put an end to this high-level shock.
Now, with the departure of both the chairman and the supervisor, when will the high-level shock of Everbright Securities stop?