Sou Hu Cai Jing·2025-09-08 11:59Core Viewpoint - The article discusses the recent legal and compliance challenges faced by Guolian Minsheng Securities, highlighting the implications of past financial misconduct and ongoing regulatory scrutiny on the company's operations and governance structure [1][2][3]. Group 1: Legal and Financial Issues - Guolian Minsheng Securities is liable for nearly 14 million yuan due to a lawsuit related to false financial statements from Longli Biological, which was under the supervision of its subsidiary Huaying Securities [1]. - The company reported a significant increase in revenue and net profit for the first half of 2023, with operating income reaching 4.01 billion yuan (up 269.4%) and net profit of 1.13 billion yuan (up 1185.2%) [2]. - Despite strong financial performance post-merger, the lingering legal responsibilities from the Longli Biological case indicate that historical risks have not been fully resolved [2]. Group 2: Compliance and Regulatory Challenges - The company has faced multiple administrative regulatory measures from authorities, indicating deficiencies in compliance management and internal controls, particularly in investment banking and bond operations [3][4]. - Specific compliance issues include failure to report significant matters timely and inadequate internal control systems, leading to regulatory warnings and required corrective actions [3][4]. - The company has been rated as C-class in the 2024 annual evaluation of investment banking quality, reflecting a decline in performance and ongoing compliance issues [4]. Group 3: ESG Rating and Industry Comparison - Guolian Minsheng Securities maintains a B rating in the latest MSCI ESG assessment, indicating it is below the industry average in areas such as environmental impact financing and human capital development [6]. - Among 42 A-share brokers, 12, including Guolian Minsheng, are rated in the lower ESG performance tier, which correlates with lower average revenue and net profit compared to higher-rated peers [6][7]. - The company’s average revenue for the first half of 2025 was 2.957 billion yuan, and net profit was 1.047 billion yuan, both below the average levels of the industry [7].