The Analysis Of Shenwan Hongyuan Securities' Transition

In the current economic new normal,brokerages mainly engaged in brokerage business are no longer adapted to the profit pattern of channels and commissions.Coupled with the external impact,taking the road of transformation has become a step that brokerages must face.Based on the existing literature research at home and abroad,this paper studies the advanced practices at home and abroad,expounds the basic situation of S company's current main business development,analyzes the necessity and importance of S company's brokerage business transformation,and expounds the course of S company's brokerage business transformation and various strategies in the transformation.On this basis,it analyzes the influence of S company's brokerage business transformation on the company.The analysis shows that :(1)S company ranks high among the enterprises of securities traded on the exchange,and the profit margin on total assets and return on equity are positive in most cases,only in a very few years when the fluctuations are large will be negative.In the long run,S company has a good growth potential.In2014,with the encouragement of national policies,S company ushered in the opportunity of development,and its operating revenue and profit both increased rapidly.However,since 2015,the total revenue of S company has dropped sharply.In 2016 and 2017,the company maintained a low level.At this stage,the company also carried out a series of reform measures.In 2018,the company's total operating revenue and operating profit started to recover again.The trend of total operating cost and total operating profit of S company is basically consistent with the total operating revenue.(2)the brokerage business transformation of S company has gone through three major stages.In the transformation,it mainly includes brand strategy,channel construction strategy,product transformation strategy,customer strategy,organizational strategy and transformation strategy to wealth management business.(3)the brokerage business transformation of S company has had an important impact on it.From 2009 to 2013,brokerage business has always been the most important sector of S company.The revenue and profit of brokerage business accounted for about 90% of the total revenue and profit of S company,which even reached a record high of 96.80% in 2013.Since 2014,S company has been transforming its businessmodel and industry diversification.From 2014 to 2017,the proportion of brokerage business profit in the total revenue and profit of S company was reduced to about50%,and this proportion will further decline in 2018 and 2019.This shows that the services provided by S company have realized the transformation from a single brokerage service mode to a diversified variety of services.In addition to brokerage business,personal finance business is also one of the pillar businesses of S company.In the future,the guarantee system of S company's brokerage business transformation can be carried out from the following aspects: establishing a CRM system to enhance customer service capabilities,developing and deepening cooperation with various channels.