Company code: Everbright Securities Company Limited(601788) company abbreviation: Everbright Securities Company Limited(601788) Everbright Securities Company Limited(601788)
Summary of annual report 2021
Section I important tips
1 the summary of this annual report comes from the full text of the annual report. In order to fully understand the company’s operating results, financial status and future development plan, investors should carefully read the full text of the annual report on the website of Shanghai Stock Exchange. 2. The board of directors, the board of supervisors and the directors, supervisors and senior managers of the company guarantee that the contents of the annual report are true, accurate and complete without false records, misleading statements or major omissions, and bear individual and joint legal liabilities. 3. All directors of the company attend the board meeting. 4 Ernst & Young Huaming Certified Public Accountants (special general partnership) issued a standard unqualified audit report for the company. 5. The profit distribution plan or the plan of converting accumulation fund into share capital in the reporting period adopted by the resolution of the board of directors
The company’s profit distribution plan for 2021 approved at the 12th meeting of the sixth board of directors of the company is as follows: on December 31, 2021, the total share capital of the company’s A-Shares and H shares is 4610787639 shares. It is proposed to distribute cash dividends of 2.28 yuan (including tax) for every 10 shares to all A-Shares and H shares, with a total of 105125958169 yuan of discovered stock profits. The above distribution plan will be submitted to the general meeting of shareholders of the company for deliberation and implementation after being deliberated and approved by the general meeting of shareholders.
Section II basic information of the company
1 company profile
Company stock profile
Stock type stock exchange stock abbreviation stock abbreviation before stock code change
A-share Shanghai Stock Exchange Everbright Securities Company Limited(601788) Everbright Securities Company Limited(601788) not applicable
All H shares of Hong Kong joint stock exchange Everbright Securities Company Limited(601788) 6178 not applicable
Limited company
Contact person and contact information secretary of the board of directors securities affairs representative
Name: Zhu Qin
Office address: No. 1508, Xinzha Road, Jing’an District, Shanghai
Tel: 02122169914
E-mail [email protected]. [email protected].
2. Introduction to the company’s main business in the reporting period
2.1 description of the industry during the reporting period
In 2021, although China’s economy was disturbed by multiple short-term factors such as epidemic, flood and commodity price rise, it remained stable
Show momentum. According to the data of the National Bureau of statistics, GDP increased by 8.1% year-on-year, with an average of 5.2% in two years, and CPI increased by 0.9% year-on-year. While accelerating economic recovery, prices at the consumer end have remained relatively stable, giving policy room for structural adjustment. Monetary policy and fiscal policy as a whole are “self-centered”, with stability at the head and accurate regulation. When major countries start tightening policies, they can still maintain a relatively stable liquidity marginal easing operation. However, since the second half of the year, PPI has remained at a high level, real estate has been cooling down, the epidemic has rebounded locally and other structural problems have become prominent, the pressure for steady growth has increased, and the profitability of enterprises has begun to decline.
The CSRC has fully implemented the concept of “building systems, non intervention and zero tolerance”, guided intermediaries to better serve the real economy, and supported small and medium-sized enterprises, scientific and technological innovation and green development. On the one hand, institutional supervision has been further tightened, and intermediary responsibilities have been significantly increased. From the “opinions on strictly cracking down on illegal securities activities according to law” issued by the central office and the state office to the “capital traffic light” of the central economic work conference, the supervision has continuously compacted the gatekeeper responsibility of intermediary institutions, and the number of cases of illegal punishment has increased significantly during the year. On the other hand, the construction process of “marketization, legalization and internationalization” is accelerated, and the capital market continues to deepen reform and accelerate development. The small and medium-sized board and Shenzhen main board were merged, the new Third Board relaxed the entry threshold for investors, upgraded the selected layers and established the Beijing stock exchange, and the multi-level market system became more perfect; The issuance pricing of the pilot sector of the registration system has accelerated the marketization, and the central government has further put forward the requirements of the comprehensive registration system to continuously consolidate the foundation for the high-quality development of the capital market; The cross-border financial link and bond southbound link have been successively implemented, the first wholly foreign-owned securities firm and fund have been approved, and the two-way opening has developed in depth.
The operating performance of securities companies maintained an overall growth momentum. According to the statistics of China Securities Association, 140 securities companies achieved an operating revenue of 502.41 billion yuan in 2021, with the main business revenue of 154518 billion yuan, 69.983 billion yuan, 5.457 billion yuan and 31.786 billion yuan respectively; The net profit was 191119 billion yuan. By the end of 2021, the total assets of the securities industry were 10.59 trillion yuan, the net assets were 2.57 trillion yuan and the net capital was 2.00 trillion yuan.
2.2 main businesses of the company during the reporting period
Wealth management business cluster: provide brokerage, investment consulting and fund investment consulting services to retail customers to earn handling fees and commissions, hold cash on behalf of customers to earn interest income, and sell financial products developed by companies and other financial institutions on a commission basis to earn handling fees; Earn interest income from margin trading, stock pledge repo trading, agreed repo trading and equity incentive exercise financing business of listed companies.
Enterprise financing business cluster: provide one-stop direct financing services such as equity financing, debt financing, M & A financing, new third board and structural financing, asset securitization and financial consultant for enterprise customers and government customers, earn handling fees and commissions, and earn income from the financial leasing business of Everbright happiness leasing.
Business cluster of institutional customers: provide comprehensive services such as investment research, main broker and custody outsourcing, customized financial products and package solutions, market making, bond package / distribution and transaction investment consulting for various institutional customers, and earn handling fees and commissions.
Investment and trading business cluster: on the premise of value investment and stable operation, it engages in investment and trading of stocks, bonds, derivatives and other varieties to earn investment income.
Asset management business cluster: provide various brokerage asset management services and fund asset management services for institutional and individual customers, and earn management and consulting fees.
Equity investment business cluster: income from private equity investment, alternative investment and PPP business.
2.3 main business conditions during the reporting period
(I) main business conditions during the reporting period
In 2021, the company adhered to the leadership of the party, focused on the main business of securities companies, continued to improve the ability of financial services to the real economy, promoted the rolling optimization of medium and long-term strategies, gradually improved the business coordination ecosystem, solid and effective internal and external coordination, strengthened risk compliance control, and gradually showed its competitive advantage. The transformation and upgrading of traditional businesses were accelerated, breakthroughs were made in innovative businesses, and the main financial indicators increased year-on-year. During the reporting period, the company won the category a AA rating, was shortlisted in the first batch of regulatory “white list” of China Securities Regulatory Commission, and won the category a evaluation of cultural construction practice evaluation of securities companies.
The main business segments of the company include 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.
1. Wealth management business cluster
The company’s wealth management business cluster mainly includes retail business, margin trading, stock pledge business, futures brokerage business and overseas wealth management and brokerage business.
In 2021, the business cluster achieved revenue of 10.2 billion yuan, accounting for 61%.
(1) Retail business
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.
Throughout the year, the company promoted the transformation and development of retail business through the following measures. First, actively shape the “Golden Sunshine” service brand, launch the three service brands of golden sunshine housekeeper, Golden Sunshine Investment consulting and golden sunshine configuration, build a “n + 1 + 1” service system, and promote wealth services such as investment consulting information, investment portfolio and investment consulting live broadcast. Second, precision marketing strategy, strengthen marketing organization, focus on the three tasks of expanding customers, capital increase, product sales and professional investors, and pay close attention to the market outlet and layout key businesses by carrying out marketing activities such as “making a good start” and “striving for the upper reaches”. Third, the account opening project is coordinated and linked with China Everbright Bank Company Limited Co.Ltd(601818) to promote “110 + action”, and continuously improve the customer expansion efficiency with the help of innovative tools and channels such as “cloud sharing” and “benefit sharing”. Fourth, improve the specialty, strengthen the assessment, promote the transformation of the marketing team, accelerate the recruitment, cultivation and assessment of wealth managers, eliminate inefficient manpower, and carry out business skills research, practice and competition through a series of competition and training projects such as “light source classroom”, “a-war general special training camp” and “regional wealth director core competence forging camp”, so as to accelerate the success of Wu Yucheng, improve the quality and efficiency of the professional marketing team. Fifth, optimize the mechanism, upgrade management, improve the reform plan of branch management system, and continuously improve the network, personnel and operation efficiency. Sixth, the fund investment advisory pilot qualification was officially approved, laying the foundation for in-depth promotion of professional investment advisory services.
The company won the “top ten ETF sellers” of Shanghai Stock Exchange in 2021. Chengdu Wucheng Street business department, Cixi Sanbei West Street business department and Dongguan Nancheng Hongfu Road Business Department of the company won the “top 100 ETF business department” of Shanghai Stock Exchange in 2021. The company’s Golden Sunshine app won the honor of “best professional intelligent service app of the year” in the 7th brokerage app list.
The company’s product consignment amount, product ownership and product customer coverage all achieved effective growth year-on-year, and the transformation of wealth management continued to be effective. 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. The company actively seized the layout of the new track of settlement products of public securities companies, issued 13 settlement products of public securities companies in total, with an issuance scale of 15.4 billion yuan.
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.
(2) Margin trading
In 2021, the company’s margin trading business grasped market opportunities, strengthened regional marketing, established a multi factor pricing mechanism, strictly controlled the business concentration, continuously optimized the business structure, and maintained the growth of business scale. 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%.
(3) Stock pledge business
In 2021, the company’s stock pledge business strictly controlled the project quality and vigorously resolved the stock risk. By the end of 2021, the company’s stock pledge balance was 3.658 billion yuan, a decrease of 39.01% over the end of 2020, of which the company’s own capital stock pledge balance was 1.784 billion yuan, a decrease of 56.74% over the end of 2020. The weighted average performance guarantee ratio of the company’s stock pledge projects is 97.49%, and the weighted average performance guarantee ratio of self owned fund funded projects is 125.64%.
(4) Futures brokerage business
The futures brokerage business is mainly carried out through the wholly-owned subsidiary of Everbright futures. In 2021, Everbright futures seized the opportunity of market expansion, adhered to the institutional development strategy, strengthened the direction of business innovation and transformation, continued to increase customers’ rights and interests, and reached a new high in market share. Everbright futures has been awarded the annual excellent member Gold Award of Dalian Commodity Exchange for the fourth consecutive year, and won three individual awards for OTC market construction, Shenzhen Agricultural Products Group Co.Ltd(000061) industrial service and option market service; For the fifth consecutive year, he was awarded the annual excellent member of Zhengzhou Commodity Exchange, and received 14 commendations such as industrial services, institutional services and excellent risk management companies; For the second consecutive year, it won the excellent investment and research team award of Shanghai Futures Exchange.
In 2021, the average daily margin of Everbright futures customers was 21.6 billion yuan, a year-on-year increase of 99.63%; The market share of trading volume was 2.61%, an increase of 0.17 percentage points over the end of the previous year. With the original intention of serving the real economy, it helps enterprises operate price risk through warehouse receipt services and OTC options. In 2021, the market shares of Everbright futures in CICC, SSE, Dachang, Zhengshang and energy center were 1.56%, 1.86%, 3.58%, 4.10% and 1.34% respectively, and the cumulative market share of Shanghai stock option trading was 2.21%.
(5) Overseas wealth management and brokerage business
The company carries out overseas wealth management and brokerage business through its Hong Kong subsidiary. In 2021, adhering to the customer-oriented core service concept, the Hong Kong subsidiary continued to deepen the hierarchical management of customers and provide customers with diversified product platforms and professional wealth management services. It won many awards, such as Bloomberg BusinessWeek / Chinese financial institution wealth management platform Excellence Award, “2021 China Securities Industry Junding Award” – China Securities Industry Hong Kong stock broker Junding award, and Treasury magazine Hong Kong best broker.
By the end of 2021, the company has been overseas
