Core Viewpoint - The recent involvement of Guoyuan Securities and its representative Sun Bin in a criminal case related to its client, Sierte, has exposed significant risks and challenges within the company's investment banking operations, highlighting issues of internal control and professional quality [1][3]. Group 1: Incident Overview - The case against Sierte's former executives for embezzlement and bribery has led to the involvement of Guoyuan Securities' representative Sun Bin, who is accused of non-state employee bribery and embezzlement [4][5]. - Sun Bin has been a long-term employee of Guoyuan Securities since 2008 and has closely collaborated with Sierte on multiple financing projects, creating a "deep binding" relationship that has now resulted in significant risks [5][7]. Group 2: Performance Issues - Guoyuan Securities has faced a high IPO project withdrawal rate of 63.16%, with 12 out of 19 projects withdrawn between 2023 and 2024, raising concerns about the firm's professional capabilities and project selection standards [8][9]. - The company has experienced a drastic decline in investment banking revenue, dropping from 766.09 million yuan in 2022 to 201.44 million yuan in 2023 and 163.33 million yuan in 2024, with consecutive losses reported [11][12]. Group 3: Regulatory Scrutiny - Regulatory bodies have criticized Guoyuan Securities for significant deficiencies in its project reviews, leading to disciplinary actions against its representatives involved in specific projects [10][11]. - The Anhui Securities Regulatory Bureau issued a warning to Guoyuan Securities, indicating issues with internal procedures and insufficient due diligence in its investment banking operations [10]. Group 4: Response and Future Outlook - In response to the ongoing challenges, Guoyuan Securities has announced a four-point rectification plan aimed at improving compliance, enhancing internal controls, and optimizing quality management processes [13]. - The effectiveness of these measures in restoring the company's investment banking operations and achieving its goal of becoming a competitive investment bank remains to be seen [13].