FCSC(SZ:002797) Xin Lang Zheng Quan·2025-12-08 11:21Core Viewpoint - First Capital announced that its wholly-owned subsidiary, First Capital Securities, received an administrative penalty notice from the Jiangsu Securities Regulatory Bureau regarding its failure to diligently supervise the Hongda Xingye convertible bond project [1][3]. Group 1: Administrative Penalty Details - First Capital Securities is accused of not adequately verifying the use and repayment of raised funds during the continuous supervision of the Hongda Xingye 2019 convertible bond project [3]. - The Jiangsu Securities Regulatory Bureau plans to impose a total penalty of approximately 16.98 million yuan, which includes a fine of 12.73 million yuan and the confiscation of 4.245 million yuan in underwriting income [3]. - The responsible personnel, Fan Benyuan and Song Yao, will receive warnings and fines of 1.5 million yuan each [3]. Group 2: Impact on Hongda Xingye - Hongda Xingye is expected to delist in 2024 due to its stock price remaining below par value, and its convertible bonds will transition to a delisting board [4]. - The company has indicated that it will likely be unable to pay the principal and interest on the "Hongda Delisting Bonds" due on December 16, 2025, as it has not secured the necessary funds [4]. Group 3: First Capital's Business Performance - First Capital reported a net profit of 41.56 million yuan from its investment banking business in the first half of 2025, a significant improvement from a loss of 3.19 million yuan in the same period last year, although the recent penalties will still adversely affect its performance [8]. - The company has faced challenges in its IPO sponsorship quality, with 6 out of 8 IPO projects since 2022 being terminated, one suspended, and one currently under inquiry [10]. Group 4: Strategic Vision and Compliance Issues - First Capital aims to become a leading investment bank with a unique business model and strong performance, but the recent penalty highlights significant shortcomings in its compliance and project quality control mechanisms [12].