Guosen Securities(SZ:002736) Nan Fang Du Shi Bao·2025-06-24 10:37Core Viewpoint - Guosen Securities has appointed Lu Wei as the new Vice President, marking a significant transition in the company's investment banking division after a 7-month vacancy following the investigation of former Vice President Wu Guofang [2][5]. Group 1: Leadership Change - Lu Wei's term as Vice President will last until the end of the fifth board's term, indicating a strategic move to stabilize leadership in the investment banking sector [2]. - Lu Wei is described as an "investment banking veteran" with nearly 30 years of experience at Guosen Securities, including over 20 years in investment banking [5][8]. - His previous roles include various managerial positions within the investment banking division, showcasing his extensive project and management experience [5][6]. Group 2: Current Challenges - Guosen Securities' investment banking business has faced a significant decline, with the number of sponsored projects dropping from 54 in 2022 to just 19 in 2024, indicating a steep decline [8]. - The company's investment banking revenue has also decreased, with net income from this segment falling from 19.79 billion yuan in 2021 to 13.63 billion yuan in 2023 [8][9]. - In 2024, the investment banking division reported a revenue of 10.51 billion yuan, a year-on-year decrease of 25.92%, making it the only segment to experience negative growth [9]. Group 3: Regulatory and Compliance Issues - Guosen Securities has faced multiple regulatory penalties due to compliance issues, with at least four fines issued in 2024 alone [9]. - The company has struggled with maintaining the quality of its projects, leading to concerns about its reputation in the market [9]. Group 4: Market Environment - The current IPO market is experiencing a downturn, presenting a challenge for Lu Wei to stabilize and enhance the investment banking revenue amidst a complex market environment [9].