Dongguan Securities Board of Directors Transition Finalized: 6 New Directors Appointed, Jinhui Holdings' Influence Diminishes

AI Performance Soars with Significant Growth, How Much Does Shareholding Structure Optimization Contribute?

Reporter: Chen Chen    Editor: Peng Shuiping

Recently, the new board of directors of Dongguan Securities has been elected, with six new directors joining. It is understood that, along with the previously approved shareholding changes by the China Securities Regulatory Commission, the shareholding ratio controlled by the State-owned Assets Supervision and Administration Commission of Dongguan has increased to 75.4%. Meanwhile, the former largest shareholder, Jinlong Shares, has reduced its stake to 20%, and the influence and seats of private shareholders on the board have also shrunk.

While the shareholding and governance structure have undergone major adjustments, Dongguan Securities has also achieved strong performance in its main business. Benefiting from the upward volatility of the A-share market, the significant increase in single-sided trading volume of stocks and funds in the Shanghai and Shenzhen markets, Dongguan Securities expects net profit attributable to the parent company’s shareholders from January to September 2025 to increase by 77.77% to 96.48% year-on-year.

Dongguan Securities’ Board Reorganization Completed, President Yang Yang Joins the Board

Recently, Dongguan Securities completed the election of its new board of directors. The current board consists of nine directors: Chairman Pan Haibiao; Directors Huang Zhicheng, Wang Chong’en, Pan Liqing, and Yang Yang; Employee representative director Sun Zhichao; and independent directors Liu Jinshan, Liu Aping, and Luo Danglun. From the personnel structure, this reorganization involved significant changes, with only Chairman Pan Haibiao and two independent directors, Liu Jinshan and Liu Aping, remaining from the previous board; the other six directors are newly appointed.

Reviewing the backgrounds of these six new directors reveals that many have extensive experience in state-owned assets and financial management. Among them, Huang Zhicheng is currently a Party Committee member and Deputy General Manager of Dongguan Investment Holding Group Co., Ltd. (hereinafter referred to as Investment Holding Group) and Chairman of Dongguan Asset Management Co., Ltd. Wang Chong’en previously served as Chairman of Dongguan Development Holding Co., Ltd. (hereinafter Dongguan Holding). He is now a director of Dongguan Road and Bridge Investment Construction Co., Ltd., Dongguan Bus Co., Ltd., and Xingfu Life Insurance Co., Ltd.

As for private shareholders, Pan Liqing, a new director, is currently a director, CFO, and head of the finance department at Jinlong Shares.

Notably, Yang Yang, the company’s core executive and President of Dongguan Securities, also joined the board during this reorganization. Looking back at his career path, in June 2024, Dongguan Securities publicly recruited a president. In February 2025, the company decided to appoint Yang Yang as President. Before joining Dongguan Securities, Yang Yang served as General Manager of China Merchants Asset Management and General Manager of the Innovation Strategy Department at China Merchants Securities Financial Markets Investment Headquarters. He is also a supervisor on the eighth Supervisory Board of the China Securities Industry Association.

Additionally, internal employee representatives and academic figures also form an important part of the board. Sun Zhichao is currently head of the Legal Affairs Department at Dongguan Securities. The newly appointed independent director Luo Danglun is a professor and doctoral supervisor at Lingnan College, Sun Yat-sen University. Luo also serves as a director of Sun Yat-sen University Press Co., Ltd., an independent director at Guangzhou Zhiyuan Electronics Co., Ltd., a director at Guangzhou Development Zone Industrial Fund Investment Group Co., Ltd., and an independent director at Guangdong Hengyi Energy Technology Co., Ltd.

Major Shareholding Changes: Three State-Owned Enterprises Hold Over 70% of Shares, Private Sector Director Seats Reduced from 2 to 1

The restructuring of the board seats essentially reflects the changes in Dongguan Securities’ underlying shareholding structure. As private shareholders’ holdings decreased, their delegated director seats also reduced from two to one, with original directors Zhang Dandan and Su Shenghong stepping down and being replaced by Pan Liqing.

By June 2025, Dongguan Securities had a total of five shareholders. At that time, three state-owned shareholders controlled by the Dongguan State-owned Assets Supervision and Administration Commission held a combined 55.40% of shares: Jinkong Group (now renamed Investment Holding Group) with 20%, Dongguan Holding with 20%, and Jinkong Capital with 15.4%. Meanwhile, private shareholder Jinlong Shares held 40%, ranking as the largest shareholder, with its concert party New Century Science and Education holding 4.6%, totaling 44.60%.

However, this pattern changed in June 2025. The CSRC approved the change of major shareholders, reducing Jinlong Shares’ stake from 40% to 20%. At the same time, the combined shareholding of the state-owned shareholders controlled by the Dongguan SASAC increased to 75.4%. After this change, Investment Holding Group held 32.9%, Dongguan Holding 27.1%, Jinkong Capital 15.4%, while Jinlong Shares and New Century Science and Education’s combined holdings dropped to 24.6%.

Dongguan Securities’ latest shareholding structure

The increase in state-owned shareholding has been met with active strategic intent from the relevant parties. Dongguan Holding stated that the rise in its shareholding to 27.1% further enhances the company’s strategic layout in regional finance. Since its strategic investment in Dongguan Securities in April 2009, Dongguan Holding has maintained long-term support and investment, achieving an annualized return of 13.27% as of June 30, 2024.

Against the backdrop of streamlined internal governance, Dongguan Securities has also delivered impressive performance forecasts. According to its latest prospectus, the company expects total operating revenue from January to September 2025 to be between 2.344 billion and 2.591 billion yuan, a year-on-year increase of 44.93% to 60.18%. Net profit attributable to the parent company’s shareholders is projected to be between 862 million and 953 million yuan, up 77.77% to 96.48% year-on-year.

Regarding the significant performance growth, Dongguan Securities analysts believe the main reasons are twofold: first, the upward volatility of the A-share market from January to September 2025, along with a substantial increase in the single-sided trading volume of stocks and funds in the Shanghai and Shenzhen markets, which likely led to increased net commission income; second, the rising major equity indices influenced by the market volatility, resulting in higher recognized investment income.