Jin Rong Jie·2025-12-17 11:14Core Viewpoint - CICC is planning to absorb and merge with Dongxing Securities and Xinda Securities through a share swap, with the announcement made after a 20-day trading suspension [1][2][8]. Group 1: Merger Details - The share swap prices are set at 36.91 CNY for CICC, 16.14 CNY for Dongxing Securities, and 19.15 CNY for Xinda Securities, leading to swap ratios of 1:0.4373 and 1:0.5188 respectively [2][3]. - Dongxing Securities will receive a 26% premium in the merger, while Xinda Securities will not receive such a premium [3][4]. - The merger requires approval from the board and shareholders of CICC, as well as necessary regulatory approvals [1][2]. Group 2: Stock Performance - Between October 23 and November 19, Dongxing Securities' stock rose from 11.88 CNY to 13.6 CNY, a 10.52% increase, while Xinda Securities fell from 19.37 CNY to 17.79 CNY, an 8.17% decrease [4][6]. - Dongxing Securities' market capitalization is 424.4 billion CNY, while Xinda Securities has a total market capitalization of 576.9 billion CNY but only 123 billion CNY in circulating market value [6]. Group 3: Financial Performance - For the third quarter, CICC reported revenues of 20.76 billion CNY, a 54.36% increase year-on-year, and a net profit of 6.57 billion CNY, up 129.75% [10]. - Dongxing Securities achieved revenues of 3.61 billion CNY, a 20.25% increase, and a net profit of 1.6 billion CNY, up 69.56% [10]. - Xinda Securities reported revenues of 3.02 billion CNY, a 28.46% increase, and a net profit of 1.35 billion CNY, up 52.89% [10]. Group 4: Post-Merger Projections - Post-merger, CICC's number of business outlets is expected to increase from 245 to 436, and the number of retail clients is projected to rise from 9.72 million to over 14 million [11]. - The combined total assets of the three firms will exceed 1 trillion CNY, positioning them as a major player in the securities industry [10][11].