Zhao Yun, editor of Wang Yandan, a journalist

Near the end of the disclosure of the first quarterly reportCrashbandicootnsanetrilogyswitchOn the evening of Friday, April 26th, a number of brokerages released their quarterly reports one after another, among which the performance of Citic Securities (600030), the "number one brother" in the industry, attracted a lot of attention.

A reporter from the Daily Business News noted that under the influence of market shocks, Citic Securities' income and net profit fell in the first quarter of 2024, achieving operating income of 137.Crashbandicootnsanetrilogyswitch.55 billion yuan, down 10.38% from the same period last year; net profit was 4.959 billion yuan, down 8.47% from the same period last year; basic earnings per share was 0.32 yuan, down 11.11% from the same period last year, and the weighted average return on net assets was 1.88%.

Specifically, Citic Securities has seen a decline in performance in many business lines, among which the decline in investment banking business is the most obvious.

In the first quarter of 2024, the net income of brokerage fees of CITIC Securities was 2.442 billion yuan, compared with 2.592 billion yuan in the same period last year, down 5.78% from the same period last year. The net income of investment banking fees was 869 million yuan, compared with 1.98 billion yuan in the same period last year, down 56.11% from the same period last year. The net income of asset management fees was 2.358 billion yuan, compared with 2.498 billion yuan in the same period last year, down 5.59% from the same period last year. The net interest income was 325 million yuan, compared with 583 million yuan in the same period last year, down 44.18% from the same period last year. The company said the decline was due to higher interest payments on short-term financing bills and repo sales compared with the same period last year.

A reporter from the Daily Business News noted that in the first quarterly report, Citic Securities also disclosed the latest progress of two important litigation issues.

The first is the dispute over the contract between the company and Juli. According to the announcement, the company filed a lawsuit with the Beijing No. 3 Intermediate people's Court on January 21, 2019 because of the breach of the stock pledge repurchase transaction of Xiamen Poly Investment Partnership (Limited Partnership) (hereinafter referred to as Polihui). The company is required to repay a total of 100.8 million yuan in unpaid principal, interest and liquidated damages. On December 26, 2019, the third Intermediate people's Court of Beijing issued a judgment of first instance in support of the company's claim. In October 2021, the company applied to the Beijing third Intermediate people's Court for enforcement, which was filed and accepted on October 21. However, on March 18, 2024, the company received an executive order from the third Intermediate people's Court in Beijing, and the case was terminated.

The second is the contract dispute between the company and Zhengyuan Real Estate, Hunan Zhengyuan, Dalian Haihui and Fu Yanbin. Because of the risk of default in the bonds issued by Zhengyuan Real Estate held by the company, the company sued the Beijing third Intermediate people's Court, requiring the issuer to pay the principal, interest, liquidated damages and the cost of realizing the creditor's rights, and asked the guarantors Hunan Zhengyuan, Dalian Haihui and Fu Yanbin to bear the guarantee liability. On April 2, 2020, the court formally accepted the case, and made decisions of first instance and second instance respectively on April 12 and November 16, 2021, both of which supported the company's claim, and then the company applied to the court for enforcement. On July 6, 2023, Dalian Intermediate people's Court decided to pre-restructure Zhengyuan Real Estate, and the company has declared its creditor's rights as required. On February 26, 2024, the people's Court of Ningxiang City, Hunan Province decided to pre-restructure Hunan Zhengyuan, the guarantor, and the company has declared its creditor's rights as required.

Citic Securities pointed out that the potential losses involved in the case have been fully calculated in accordance with the relevant regulations. During the reporting period, there were no major litigation or arbitration matters in which the amount of money involved in the Shanghai Stock Exchange listing rules required to be disclosed exceeded RMB 10 million and accounted for more than 10% of the company's latest audited net assets.