Company code: China Merchants Securities Co.Ltd(600999) company abbreviation: China Merchants Securities Co.Ltd(600999) China Merchants Securities Co.Ltd(600999)
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 http://www.sse.com.cn. The website carefully reads the full text of the annual report. 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 Deloitte Touche Tohmatsu (special general partnership) and Deloitte guanhuang Chenfang certified public accountants have issued standard unqualified audit reports to 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
In 2021, the company did not withdraw the statutory surplus reserve. Based on the total share capital registered on the date of equity distribution, the company distributed a cash dividend of 5.40 yuan (including tax) to all shareholders for every 10 shares, without giving bonus shares or converting the capital reserve into share capital.
Based on the total number of 8696526806 shares of the company as of December 31, 2021, the total distributed profit is 469612447524 yuan. If the total share capital of the company changes on the date of equity distribution, the company plans to maintain the total amount of distribution unchanged and adjust the amount of distribution per share accordingly.
The above cash dividends are valued and announced in RMB and paid to A-share shareholders in RMB and H-share shareholders in Hong Kong dollars. The actual distribution amount in Hong Kong dollars shall be calculated according to the average benchmark exchange rate of RMB to Hong Kong dollars published by the people’s Bank of China five working days before the shareholders’ meeting of the company to review the profit distribution plan.
After the profit distribution plan of the company in 2021 is reviewed and approved by the 2021 annual general meeting of shareholders, the company will distribute the cash dividend of 2021 before August 30, 2022. The company will give further notice on the record date of this H-share dividend distribution, the period of suspension of shareholder transfer registration, as well as the equity registration date and specific distribution date of A-share dividend distribution.
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 China Merchants Securities Co.Ltd(600999) China Merchants Securities Co.Ltd(600999) —
H-share Hong Kong Stock Exchange China Merchants Securities 6099–
Contact person and contact information secretary of the board of directors securities affairs representative
Name: Wu Huifeng Luo Li
Office address: No. 111, Fuhua 1st Road, Futian street, Futian District, Shenzhen
Tel: 075582943666075582960432
E-mail [email protected]. [email protected].
Joint company secretary
Name: Wu Huifeng Kuang Yanping
Contact address: 40 / F, Daxin financial center, 248 Queen’s Road East, Wanchai, Hong Kong, No. 111, Fuhua 1st Road, Futian street, Futian District, Shenzhen
2. Introduction to the company’s main business in the reporting period
In 2021, the 21st century epidemic continued to repeat around the world, and the momentum of global economic recovery weakened. China scientifically coordinated epidemic prevention and control and economic and social development. The national economy continued to recover, its development resilience continued to increase, and its economic operation was generally stable. The annual GDP increased by 8.1% year-on-year, realizing a good start to the 14th five year plan. China’s capital market reform and innovation continued to deepen, and equity financing, bond financing, trading volume of secondary market stock funds and balance of margin trading and securities lending all showed a good growth trend and reached a record high. The A-share market presents a structural market, the overall operating performance of the securities industry has maintained growth, and the asset scale and profitability have been steadily improved.
In 2021, the company will unswervingly implement the new development concept, serve and build a new development pattern. With the goal of achieving high-quality development, the company will concentrate and forge ahead, offer a generous gift to the 30th anniversary of the establishment of the company with excellent achievements, and make a successful start to the development of the 14th five year plan. First, the ranking of business performance reached a record high. In the whole year, the total operating revenue was 29.429 billion yuan, a year-on-year increase of 21.22%, and the net profit attributable to shareholders of listed companies was 11.645 billion yuan, a year-on-year increase of 22.69%; The weighted average return on net assets was 11.52%, with a year-on-year increase of 0.67 percentage points; Second, the transformation of “customer-centered” business model has achieved remarkable results. The company further promoted the reform tasks of “double hundred actions” and “taking the lead” in the reform of state-owned enterprises, and achieved important breakthroughs in key reforms such as “six capabilities” mechanism construction, core business transformation, integrated operation at home and abroad, collaborative mechanism construction and digital development. Third, it maintained steady operation under the complex operation situation. The company coordinated epidemic prevention and control and safe production, made forward-looking research and judgment to deal with business risks in specific fields, obtained AA rating of industry classification evaluation for 14 consecutive years, and was among the first batch of finalists in the “white list” of securities company supervision published by China Securities Regulatory Commission.
The company’s business is mainly divided into four sectors: wealth management and institutional business, investment banking, investment management, investment and trading. 1. Wealth management and institutional business
The company’s wealth management and institutional business mainly includes brokerage and wealth management, capital intermediary and comprehensive services for institutional customers.
With the rapid growth of Chinese residents’ wealth and the policy guidance of “housing without speculation”, the demand for residents to optimize asset allocation is becoming increasingly urgent; At the same time, affected by the new regulations on asset management, the channel business has been continuously standardized, the residents’ demand for financial management has increased significantly, and the wealth management business of securities companies is facing broad development space. In 2021, the company’s wealth management and institutional business advantages were solid, and the net income from agency trading (including seat leasing) ranked third in the industry.
(1) Brokerage and wealth management
In 2021, the unilateral trading volume of A-share market stock funds was 268.01 trillion yuan, a year-on-year increase of 24.66%; The average net commission rate of the industry was 0.249 ‰, a year-on-year decrease of 7.88%, continuing the downward trend year by year. The unilateral trading volume of stocks in Hong Kong market was HK $37.14 trillion, a year-on-year increase of 24.70%.
During the reporting period, the company innovated the marketing and service mode through Wuxi Online Offline Communication Information Technology Co.Ltd(300959) two wheel drive, and the number of new accounts opened in the whole year reached a record high, with a year-on-year increase of 81.77%. At the end of 2021, the number of customers of the company was about 14.79 million, with a year-on-year increase of 29.07%. The assets of entrusted customers were 4.45 trillion yuan, with a year-on-year increase of 16.51%.
The company adheres to customer-centered, increases the transformation to wealth management, and actively creates the core advantages of wealth management with brokerage characteristics and differentiation. Continue to give full play to the research advantages of securities companies and build a preferred product system with “private placement 50” and “public offering optimization” as the core; Actively expand the scale of wealth consulting team, improve professional ability, strengthen training and empowerment, establish a layered service system for investment advisers, strengthen the buyer’s investment advisory service ability, and build a professional team to meet the needs of different customers; Launch the “Zhiyuan private bank” brand to provide asset allocation, exclusive customization and family trust services for high net worth customers. By the end of 2021, the company had 563500 wealth management customers and 1.67 trillion yuan of wealth management customer assets, with a year-on-year increase of 24.12% and 21.90% respectively, and 30600 high net worth customers, with a year-on-year increase of 26.97%; In 2021, the company won the pilot qualification of fund investment consulting business, and launched the “E-bidding investment” fund investment consulting brand in November, with a signing scale of nearly 2.4 billion yuan at the end of the year.
In 2021, the company’s net income and ranking of financial products sold on a commission basis reached a record high. According to the data of China Securities Association, the company’s net income from selling financial products on a commission basis (parent company) ranked fifth in the industry, up 2 places year-on-year. At the end of the reporting period, the number of financial products held by customers increased by 17.89% year-on-year. According to the data of China Securities Investment Fund Industry Association, the company’s stock plus mixed public funds and non money market public funds in the fourth quarter were 49.8 billion yuan and 53.1 billion yuan respectively, ranking fifth in the securities industry.
The company continues to strengthen the characteristics of digital development, actively explore private traffic operation, and build a wechat social service ecosystem to support the transformation of the company’s wealth management by opening up ” China Merchants Securities Co.Ltd(600999) wealth +” applet, enterprise wechat and China Merchants Securities Co.Ltd(600999) app. In 2021, the company served about 2.9 million users through wechat ecosystem. The monthly number of active users (MAU) of APP increased by 15.45% year-on-year, and Mau ranked among the top 5 large securities companies.
Year on year changes in operating indicators from 2021 to 2020
A-share trading volume (trillion yuan) (Note 1) 26.27 18.26 43.87%
The market share of A-share based trading volume was 4.90% and 4.25%, an increase of 0.65 percentage points
The market share of the net income of securities trading business decreased by 0.05 percentage points from 4.80% to 4.85%
Number of wealth consultants 12081002 20.56%
Net income from selling financial products on a commission basis (100 million yuan) (Note 2) 10.06 6.27 60.45%
Number of wealth management clients (10000) (Note 3) 56.35 45.40 24.12%
Wealth management client assets (trillion yuan) 1.67 1.37 21.90%
Number of high net worth customers (10000) (Note 4) 3.06 2.41 26.97%
Source: Shanghai and Shenzhen Stock Exchange, securities industry association, internal note: 1. The trading volume of the company’s stock fund is bilateral trading volume;
2. The net income from selling financial products on a commission basis is the statistical data of the Securities Industry Association;
3. Wealth management clients refer to individual clients with Custody Assets of 300000 yuan or more in the company;
4. High net worth customers refer to customers with Custody Assets of more than 8 million yuan in the company.
In terms of stock option brokerage, we continued to strengthen business promotion and customer expansion, and further optimized system and risk management. According to the data of Shanghai Stock Exchange, by the end of December, the cumulative number of customers of the company’s stock options and the market share were 8.73%, ranking first in the industry for four consecutive years; The cumulative trading volume during the reporting period ranked fifth in the securities industry.
In terms of futures brokerage business, in 2021, the fluctuation range of commodity prices increased, the innovation of futures varieties continued to advance, and the futures option product system was more perfect. The cumulative trading volume of China’s futures market was 7.514 billion, with a turnover of 581.20 trillion yuan, an increase of 22.13% and 32.84% respectively year-on-year. At the end of the year, the rights and interests of customers in the whole market reached 1.18 trillion yuan, a year-on-year increase of 43.65%. China Merchants futures paid close attention to the wave of market institutionalization and strengthened the construction of institutional team. The rights and interests of customers increased by 60% year-on-year, and the net fee income increased by 87.25% year-on-year.
In terms of overseas markets, China Merchants Securities International actively expanded its sales force and deepened business coordination. The number of trading accounts increased by 15.20% year-on-year, and the asset scale of custody customers was HK $237061 billion, a year-on-year increase of 27.26%; The trading volume was HK $296905 billion, a year-on-year increase of 54.87%, ranking a new high in recent seven years.
(2) Capital intermediary business
The company’s capital intermediary business mainly includes margin trading, stock pledge repurchase business, etc.
In 2021, the margin trading business in the A-share market developed steadily. At the end of December, the balance of margin trading was 1.83 trillion yuan, a year-on-year increase of 13.17%, of which the balance of financing was 1.71 trillion yuan, a year-on-year increase of 15.52%; The securities lending business was adversely affected by the decline in new demand. At the end of December, the market scale was 120.14 billion yuan, a year-on-year decrease of 12.3%. The stock pledge repo business continued to standardize business development and improve risk management measures. The amount of funds released at the end of December was 2,
