On March 24, Everbright Securities Company Limited(601788) released the annual report of 2021, which showed that the company achieved an operating revenue of about 16.707 billion yuan in 2021, an increase of 5.3% year-on-year; The net profit attributable to shareholders of listed companies was 3.484 billion yuan, a year-on-year increase of 49.28%; The basic earnings per share was 0.72 yuan, a year-on-year increase of 44%. The distribution plan is to distribute a cash dividend of 2.28 yuan (including tax) for every 10 shares.
wealth management business cluster contributes more than 60% of revenue
Everbright Securities Company Limited(601788) the main business segments are divided into wealth management business cluster, enterprise financing business cluster, institutional customer business cluster, investment transaction business cluster, asset management business cluster and equity investment business cluster.
In 2021, the income of wealth management business cluster reached 10.2 billion yuan, accounting for 61%, which is the main source of income of the company.
Everbright Securities Company Limited(601788) pointed out that in 2021, the company’s retail business will accelerate the transformation of wealth management and build a “financial product system, asset allocation system and securities investment advisory system” to create the core competitiveness of the transformation.
The company’s product consignment amount, product ownership and product customer coverage all achieved effective growth year-on-year. In 2021, the sales scale of the company’s public funds (non monetary funds) increased by 22% year-on-year, and the sales scale of equity private placement products increased by 127% year-on-year; The sales amount of financial products was 47.4 billion yuan, a year-on-year increase of 21%. According to the data of China Fund Industry Association, by the end of 2021, the holding scale of the company’s stock + mixed public funds was 20.3 billion yuan, and the holding scale of non money market public funds was 21.7 billion yuan; Securities companies raised 15.4 billion yuan and issued a total of 15.4 billion products.
By the end of 2021, the market share of the company’s net income from securities trading (excluding seat leasing) ranked 16th, which was the same as that at the end of 2020. There were 730000 new customers in the whole year, with a year-on-year increase of 35%. The total number of customers reached 4.81 million, an increase of 17% over the end of 2020. The total assets of customers increased to 1.43 trillion yuan.
By the end of 2021, the balance of margin trading and securities lending of the company was 45.038 billion yuan, an increase of 3.20% over the end of 2020. Among them, the financing balance was 43.962 billion yuan. At the end of 2021, the overall guarantee ratio of the company’s margin trading business was 276.25%.
The enterprise financing business cluster mainly includes equity financing business, debt financing business, overseas investment banking business and financial leasing business. In 2021, the business cluster achieved business revenue of 2 billion yuan, accounting for 12%.
In terms of equity financing, in 2021, the company completed a total of 17.777 billion yuan of equity underwriting business, a year-on-year increase of 2.96%, including 11.645 billion yuan of IPO Financing, a year-on-year increase of 7.17%. 23 equity Underwriters (excluding exchangeable corporate bonds); 18 IPO projects of the company will be reviewed at the meeting.
In terms of bond underwriting, the number of corporate bond underwriting projects in 2021 was 1132, a slight decrease over the same period; The underwriting amount was 363133 billion yuan, with a market share of 3.21%, ranking ninth in the industry. In 2021, the main underwriting income of corporate bonds ranked fourth in the industry, up one place from 2020.
two subsidiaries suffered losses
Everbright Securities Company Limited(601788) also disclosed the data of major subsidiaries:
Among them, Everbright Prudential achieved an operating revenue of 654 million yuan in 2021, a year-on-year increase of 4.97%; The net profit was 163 million yuan, a year-on-year increase of 2.52%.
As of December 31, 2021, Dacheng Fund has total assets of 4.820 billion yuan, net assets of 2.869 billion yuan and net profit of 389 million yuan in 2021.
Everbright capital and Everbright fuzun suffered losses. As of December 31, 2021, Everbright capital had total assets of 2.870 billion yuan, net assets of -2.976 billion yuan and a loss of 534 million yuan in 2021. Everbright fuzun has total assets of 2.033 billion yuan and net assets of 1.907 billion yuan, with a loss of 66 million yuan in 2021.
The MPS project led by Everbright capital and storm group exposed risks in February 2019. In May 2016, Everbright capital and storm group led the establishment of Jinxin fund, which completed the acquisition of 65% equity of MPs, a British sports copyright company, at a transaction price of about 5.2 billion yuan. MPS was once a popular sports copyright company in the world. Its business covered more than 200 countries and regions around the world and owned more than 90 global event property rights. However, in the end, due to poor management and MPs bankruptcy, Jinxin fund failed to exit according to the original plan. As it was agreed in the balance replenishment letter stamped by Everbright capital presented by the priority limited partner of Jinxin fund that “when the priority partner cannot exit, Everbright capital shall bear the corresponding balance replenishment obligation”, Everbright capital exposed a huge risk exposure, The relevant bank accounts and a number of assets of the company and its subsidiaries have been frozen by the judiciary. In addition, the company has accrued huge and estimated liabilities for many consecutive years.
Due to MPS related litigation matters, Everbright Securities Company Limited(601788) has accrued huge estimated liabilities for many consecutive years. According to the annual report of 2021, according to the latest progress of relevant litigation and arbitration and the information obtained at present, and considering the requirements of relevant laws and regulations, the company has recognized the estimated liabilities of RMB 5.284 billion on December 31, 2021, compared with RMB 4.552 billion on December 31, 2020, which means that the provision of RMB 732 million has been increased again in 2021. However, from the initial transaction amount, MPs impairment should have been accrued and financial risk released.
3 was asked to refund the underwriting fee of about 18 million yuan
In addition, Everbright Securities Company Limited(601788) in its annual report, it also disclosed two new litigation (Arbitration) in 2022:
On January 14, 2022, Everbright happiness leasing filed a lawsuit against Shanghai Jinhui General Aviation Co., Ltd. due to the dispute over the confirmation of bankruptcy creditor’s rights, involving an amount of about 200 million yuan. The case has been accepted by Shanghai Fengxian District People’s court. This is Everbright happiness leasing as the plaintiff. In 2021, Everbright happiness leasing operated steadily. As of December 31, 2021, Everbright happiness leasing had total assets of 2.887 billion yuan, net assets of 1.247 billion yuan and net profit of 37 million yuan in 2021.
However, there is also an interesting arbitration involved in Everbright Securities Company Limited(601788) recently: the annual report shows that on March 3, 2022, Jilin Urban Construction Holding Group Co., Ltd. applied to China International Economic and Trade Arbitration Commission for arbitration with the company as the respondent in respect of the dispute over the underwriting agreement, requesting the company to refund the underwriting fee of 181908 million yuan and pay the corresponding interest. The case has been accepted by China International Economic and Trade Arbitration Commission.
The case has just been accepted for 20 days, and the details are unclear. However, it seems rare for issuers to ask investment banks to refund underwriting fees. The reporter of “daily economic news” will continue to pay attention to the follow-up progress.
