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

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Daily Economic News Reporter | Chen Chen    Daily Economic News Editor | Peng Shuiping

Recently, the new board of directors of Dongguan Securities has been elected, with six new directors joining. According to sources, along with the previously approved shareholding changes by the China Securities Regulatory Commission, the state-owned shareholders controlled by Dongguan State-owned Assets Supervision and Administration Commission (SASAC) now hold a total of 75.4% of shares. Meanwhile, the former largest shareholder, Jinlong Shares, has reduced its stake to 20%, and private shareholders’ influence and seats on the board have also shrunk.

Amid major adjustments in shareholding and governance structure, Dongguan Securities has also seen 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 grow by 77.77% to 96.48% year-on-year.

Recently, Dongguan Securities completed the election of its new board of directors. The current board consists of nine members: Chairman Pan Haibiao; Directors Huang Zhicheng, Wang Chong’en, Pan Liqing, and Yang Yang; Employee Director Sun Zhichao; and Independent Directors Liu Jinshan, Liu Aping, and Luo Danglun. The composition shows a significant change, with only Chairman Pan Haibiao and two independent directors, Liu Jinshan and Liu Aping, remaining from the previous board; the other six are newly appointed.

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

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

Notably, Yang Yang, the President of Dongguan Securities and a key executive, also joined the new board. Looking back at his career path, in June 2024, Dongguan Securities publicly recruited a president. By 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 Financial Markets Investment Headquarters’ Innovation Strategy Department at China Merchants Securities. He also currently serves as a supervisor on the eighth Supervisory Board of the China Securities Industry Association.

Additionally, internal employee representatives and academic figures are also important members of the board. Sun Zhichao is currently head of the Legal Affairs Department at Dongguan Securities. The new 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 of Guangzhou Zhiyuan Electronics Co., Ltd., a director of Guangzhou Development Zone Industrial Fund Investment Group Co., Ltd., and an independent director of Guangdong Hengyi Energy Technology Co., Ltd.

The restructuring of the board seats essentially reflects the change in Dongguan Securities’ underlying shareholding structure. As private shareholders’ holdings decrease, their representation on the board has reduced from two to one director, with former 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 Dongguan SASAC held a combined 55.40% of shares: Jinkong Group (now renamed Investment Holding Group) with 20%, Dongguan Holdings with 20%, and Jinkong Capital with 15.4%. Meanwhile, private shareholder Jinlong Shares held 40%, making it the largest shareholder, with its concert party New Century Science and Education holding 4.6%. Together, they held 44.60% of Dongguan Securities.

However, this pattern changed in June 2025. The CSRC approved Dongguan Securities’ major shareholder change, reducing Jinlong Shares’ stake from 40% to 20%. At the same time, the state-owned shareholders controlled by Dongguan SASAC increased their combined shareholding to 75.4%. After this change, Investment Holding Group held 32.9%, Dongguan Holdings 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 reflects strategic intentions. Dongguan Holdings stated that the rise in Dongguan Securities’ shareholding to 27.1% further enhances the company’s regional financial strategic layout. Since its strategic investment in Dongguan Securities in April 2009, Dongguan Holdings has maintained long-term support, 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 income 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’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 profit increase, Dongguan Securities analysts believe the main reasons are twofold: first, the upward volatility of the A-share market in January-September 2025, with a substantial rise in single-sided trading volume of stocks and funds in the Shanghai and Shenzhen markets, leading to increased net commission income; second, the rising major equity indices influenced by the market volatility, resulting in higher investment income recognized by the company.

Cover image source: AIGC