Dongguan Securities Board of Directors Undergoes a Major Shakeup, Does 75.4% State-Owned Capital Holding Clear the Core Obstacles to Listing?

Ask AI · Dongguan Securities’ state-owned shareholding increased to 75.4%. How will it reshape the governance structure?

Produced by | Zhongfang Network

Reviewed by | Li Xiaoyan

Recently, Dongguan Securities announced that it will convene the third extraordinary shareholders’ meeting and the first meeting of the fourth board of directors in 2026 to complete the board of directors’ re-election. This change not only represents a natural continuation after the adjustment of the equity structure but also signifies the formal establishment of a corporate governance system under the absolute control of the Dongguan State-owned Assets Supervision and Administration Commission (SASAC), clearing core governance obstacles for its decade-long IPO journey and injecting new momentum for optimizing its business structure.

Compared to the previous board of directors, the core changes in this re-election are reflected in two dimensions: seat allocation and governance structure optimization, thoroughly completing the reshaping of the “state-led, private participation, management incorporation” pattern. In June 2025, the Dongguan state-owned assets consortium (composed of Dongguan Development Holdings Co., Ltd. and Dongguan Financial Holdings Group Co., Ltd.) acquired 20% equity held by Jinlong Co., Ltd. for 2.272 billion yuan. After the transaction, the shareholding ratio of the Dongguan state-owned assets consortium rose significantly from the previous 55.4% to 75.4%, with the Dongguan SASAC officially obtaining absolute control; the original private shareholder Jinlong Co., Ltd.‘s shareholding ratio dropped to 20%, aligning with New Century Science and Education Expansion Co., Ltd. as a concerted actor, holding a total of 24.6% of Dongguan Securities’ shares.

The changes in the shareholder structure are directly reflected in the allocation of seats on the board of directors. In the previous board, Jinlong Co., Ltd. appointed two private background directors, Zhang Dandan and Su Shenghong from New Century Science and Education, to remain; however, in the new board of nine members, these two private shareholder representatives will not be reappointed, retaining only the board member and financial director Pan Liqing appointed by Jinlong Co., Ltd., further shrinking the voice of private shareholders. Specifically, the new board consists of nine directors: Pan Haibiao (Chairman), Huang Zhicheng, Wang Chong’en, Pan Liqing, Yang Yang, Sun Zhichao (employee representative director), as well as three independent directors Liu Jinshan, Liu Aping, and Luo Danglun. Except for the three independent directors, among the six non-independent directors, five are deeply connected with the Dongguan state-owned assets system, aside from Pan Liqing representing private shareholders—Pan Haibiao is a veteran of Dongguan Securities, having previously served as the manager of the registration department, vice president, and president, returning to serve as chairman in November 2025; Huang Zhicheng is the deputy general manager of Dongguan Investment Holding Group; Wang Chong’en is a director of Dongguan Road and Bridge Investment Construction Co., Ltd.; Sun Zhichao was formerly a level-four researcher at the Dongguan Municipal Committee Organization Department and is currently the head of the company’s legal affairs department.

Another major highlight of this re-election is that Yang Yang, the president who joined through market recruitment in February 2025, officially enters the board of directors after one year of service, marking the full implementation of the collaborative mechanism between the management and the board of directors. Yang Yang has a solid background in both international and leading domestic securities firms, with a graduate degree and master’s degree, having served as an analyst in the electronic trading department at Bear Stearns in the U.S., a senior analyst in the options trading department at Fortress Investment Group, and a senior analyst in the credit risk trading department at Goldman Sachs. After returning to China, he held key positions as a fund manager at Harvest Fund Management, general manager of the derivatives and trading department at Anxin Securities, deputy general manager at Huaxin Securities, and general manager at China Merchants Securities Asset Management Co., Ltd., possessing diverse professional capabilities in quantitative trading, risk management, and asset management. After joining the board, he will deeply participate in strategic formulation and business decision-making, promoting the integration of international professional experience with local state-owned asset governance models.

At the same time, the new board of directors has set up three specialized committees: audit, compensation and nomination, and risk control, with clear divisions of labor and effective checks and balances: the audit committee is chaired by independent director Liu Aping, covering core compliance audit aspects; the compensation and nomination committee is chaired by independent director Liu Jinshan, with Yang Yang participating, balancing market incentives and governance norms; the risk control committee is chaired by chairman Pan Haibiao, strengthening the overall risk management efforts. This structure not only ensures the strategic direction led by state assets but also fully leverages the professional capabilities of the management team, aligning with the core requirements of financial enterprises for “prudent operation and professional empowerment.”

As the board re-election takes effect, Dongguan Securities’ performance recovery trend since 2025 continues, providing solid performance support for the optimization of corporate governance. However, the issue of unbalanced business structure still needs to be addressed. According to the unaudited financial data disclosed by shareholder Jinlong Co., Ltd. for 2025, Dongguan Securities achieved an annual operating income of 3.353 billion yuan, with a year-on-year increase of 21.8%; the net profit attributable to the parent company was 1.235 billion yuan, up 33.85%, significantly outperforming the industry average growth rate. In 2024, the company achieved revenue of 2.753 billion yuan (a year-on-year increase of 27.73%) and net profit of 923 million yuan (a year-on-year increase of 45.4%), maintaining double-digit growth for two consecutive years, demonstrating strong performance resilience.

From a business structure perspective, the brokerage business is the core pillar of performance growth. In 2025, the net income from brokerage business fees reached 1.752 billion yuan, a year-on-year increase of 43.72%, accounting for 52.25% of total operating income, officially breaking through the “half-wall”; net interest income was 856 million yuan, a year-on-year increase of 16.19%, accounting for 25.54%, becoming the second-largest source of income, mainly benefiting from the expansion of margin financing and securities lending business, with the amount of funds lent reaching 17.975 billion yuan by the end of 2025, an increase of 22.82% year-on-year. Investment income remained stable, reaching 485 million yuan for the year, slightly down 0.78% year-on-year.

Behind the growth in performance, the structural issues of Dongguan Securities’ business cannot be ignored. In 2025, the net income from investment banking fees was only 124 million yuan, a sharp year-on-year decrease of 39.49%, with its revenue share shrinking to 3.70%, and the number of A-share IPO underwriting throughout the year was zero, primarily relying on equity placements and bond projects for revenue; the net income from asset management fees also significantly dropped by 47.22% to 4.3 million yuan, accounting for only 1.29%, with the core reason being the dismal yields in the bond market and some collective products not achieving excess performance sharing. This structural shortcoming sharply contrasts with leading industry peers, as the total IPO financing amount in the A-share market reached 131.771 billion yuan in 2025, a year-on-year increase of 95.6%, benefiting the overall investment banking business, but Dongguan Securities failed to seize the opportunity.

As the only broker currently queuing for an IPO on the Shenzhen Stock Exchange, Dongguan Securities’ listing process has always attracted market attention. The completion of this board re-election marks the complete removal of the core obstacles related to equity and governance that have troubled the company for many years, and 2026 is expected to usher in a critical window period for IPO review and landing. Dongguan Securities’ IPO journey has been fraught with twists and turns: it first applied in 2015, was suspended in 2017, resumed review in 2021, passed the initial issuance in 2022, and was suspended again in 2024 due to expired financial documents. In July 2024, the Shenzhen Stock Exchange resumed acceptance, and it has now been over 10 years. Previously, unclear equity structure and coordination issues between private shareholders and state-owned governance have been core bottlenecks for IPO reviews. In June 2025, state-owned assets completed a 20% equity acquisition, raising the holding ratio to 75.4%, fundamentally resolving the equity disputes; this board re-election further improved the governance structure, meeting regulatory requirements for brokers’ IPO governance standards. The company’s announcement clearly states that this re-election is a normal personnel change and will not adversely affect governance, operations, and debt repayment capabilities. The market generally believes that the stabilization of the governance structure will significantly reduce uncertainties in the IPO review, laying a foundation for subsequent accelerated reviews.

As of March 12, 2026, the IPO status of Dongguan Securities is “accepted by the main board of the Shenzhen Stock Exchange, pending the first round of inquiries,” with Dongfang Securities as the sponsor. The latest prospectus was updated to September 30, 2025. Considering industry patterns and the company’s current situation, the IPO process in 2026 presents a characteristic of “opportunities and challenges coexisting”: favorable factors include the complete clarification of equity and governance, removing core obstacles, which is the primary premise for regulatory review; steady performance growth, with net profit reaching 1.235 billion yuan in 2025, meeting the profit capability requirements of the registration system for brokers; and capital supplementation being in place, with the company approved for 6 billion yuan in subordinated debt registration in February 2026, issuing the first phase of 2 billion yuan, with a主体评级 of AAA, further enhancing net capital strength to support business expansion and capital operations post-listing.

With the implementation of the board re-election and the stabilization of the state-led pattern, Dongguan Securities’ core tasks in 2026 will focus on three major directions: promoting the smooth landing of the IPO based on governance optimization; focusing on business transformation to address structural shortcomings; and leveraging local economic services to connect with the development opportunities of the Guangdong-Hong Kong-Macao Greater Bay Area. The company will take the three-year term of the current board (March 2026 - March 2029) as a starting point, accelerating the IPO review process, actively liaising with the exchange, and preparing inquiry response materials in advance, with a focus on addressing core issues such as equity evolution, business structure, and compliance management; simultaneously, continuously improving governance mechanisms, strengthening the professional supervisory role of independent directors, and optimizing the operational efficiency of specialized committees to ensure that the governance structure aligns fully with the standards for listed companies. At the same time, the core management team composed of Pan Haibiao and Yang Yang will form a collaborative model of “steady steering + professional empowerment,” balancing the stability of state-owned governance with the flexibility of market-oriented operations.

To address the issue of unbalanced business structure, the company has clarified its transformation direction, focusing on enhancing investment banking and asset management businesses while maintaining an advantage in brokerage business: first, increasing project reserve investments, focusing on manufacturing and technology innovation enterprises in Dongguan and the Guangdong-Hong Kong-Macao Greater Bay Area, exploring business opportunities in IPO, refinancing, and bond underwriting, striving for a “zero breakthrough” in A-share IPO underwriting in 2026; second, optimizing the layout of asset management products, strengthening the investment research team, and developing asset management products that meet regional industrial needs, enhancing the proportion of performance rewards; third, advancing wealth management transformation by leveraging consumer finance innovations such as the 1499 yuan i-Moutai direct sales, creating an all-scenario wealth management service system to enhance customer stickiness.

As a key financial enterprise under the Dongguan municipal government, Dongguan Securities will deeply connect with Dongguan’s urban strategy of “smart creation of quality products, and livable harmony,” as well as opportunities for constructing the Guangdong-Hong Kong-Macao Greater Bay Area. On one hand, it will increase financial support for Dongguan manufacturing enterprises and specialized, innovative enterprises, providing comprehensive lifecycle financing, investment, and wealth management services; on the other hand, relying on its state-owned background, it will participate in key projects such as local infrastructure construction and industrial fund operations, assisting in the high-quality development of the regional economy, and creating a distinctive brokerage brand of “state-led, professional empowerment, and local service.”

Although Dongguan Securities is experiencing a dual benefit in governance and performance, it is still essential to view potential risks objectively: first, the effectiveness of the business structure transformation may fall short of expectations, with sluggish growth in investment banking and asset management businesses potentially affecting IPO review feedback and long-term profitability; second, fluctuations in the capital market may lead to performance volatility in brokerage and proprietary businesses, testing performance stability; third, the integration of state-owned governance and market-oriented operations still requires adjustment, potentially leading to challenges in decision-making efficiency and professional capacity coordination; fourth, during the IPO review process, regulators may propose new compliance requirements, affecting the pace of listing.

Overall, the re-election of Dongguan Securities’ board of directors is an important milestone in the company’s development history—it not only completes the final shaping of the state-led governance pattern but also opens the collaborative channel between management and governance. As the IPO process is expected to accelerate and business transformation gradually takes shape, the company will encounter new development opportunities in the financial market of the Guangdong-Hong Kong-Macao Greater Bay Area. However, whether it can achieve the triple goals of “improved governance, performance growth, and successful listing” still requires time to verify, with the core depending on the effectiveness of the business structure transformation and the continuous strengthening of compliance management.