On the evening of March 30, China International Capital Corporation Limited(601995) published the annual report of 2021.
According to the annual report, China International Capital Corporation Limited(601995) achieved a revenue of 30.131 billion yuan, a year-on-year increase of 27.35%; The net profit was 10.778 billion yuan, a year-on-year increase of 49.54%; The weighted average return on net assets was 14.64%. The company further consolidated its market position and continued to create good value returns for shareholders.
investment banking business is still the signboard of China International Capital Corporation Limited(601995) and the performance of China and cross-border business is good. In 2021, China International Capital Corporation Limited(601995) as the lead underwriter, completed 23 A-share IPO projects, with a lead underwriting amount of 100538 billion yuan, ranking second in the market. As the global coordinator, he led the underwriting of 38 Hong Kong stock IPO projects, with a lead underwriting scale of US $5.651 billion, ranking first in the market. In terms of U.S. stocks, last year China International Capital Corporation Limited(601995) as the bookkeeper, took the lead in underwriting eight U.S. stock IPO projects of Chinese enterprises, with a lead underwriting scale of $1.256 billion, ranking fourth in the market
A senior industry insider told reporters that the importance of investment banks in serving the real economy will become more and more obvious. With the transformation and upgrading of China’s economy, the proportion of direct financing will increase, and China will rely more and more on investment banks. At the same time, it also needs the efforts of investment banks to build a world-class investment bank and compete for the international voice.
main businesses developed in a balanced way, and multiple businesses increased by more than 20%
According to the annual report, the total assets of China International Capital Corporation Limited(601995) group at the end of 2021 was 649795 billion yuan, an increase of 24.57% year-on-year; The net assets were 84.422 billion yuan, a year-on-year increase of 17.85%; The operating revenue was 30.131 billion yuan, a year-on-year increase of 27.35%; The net profit was 10.778 billion yuan, a year-on-year increase of 49.54%; The weighted average return on net assets was 14.64%. The company’s comprehensive strength and market competitiveness have been steadily improved.
In terms of breakdown, the revenue of each business line has increased. The revenue of investment banks increased by 1.195 billion yuan year-on-year, with a year-on-year increase of 1.187 billion yuan; The revenue of stock business was 8.489 billion yuan, a year-on-year increase of 53.54%; Fixed income business achieved a revenue of 3.216 billion yuan, an increase of 3.1% year-on-year; The revenue of asset management business was 1.415 billion yuan, a year-on-year increase of 20.26%; Private equity business achieved a revenue of 2.444 billion yuan, a year-on-year increase of 28.56%; Wealth management business achieved a revenue of 7.538 billion yuan, a year-on-year increase of 34.17%. From the perspective of income structure, institutional businesses such as investment banking, stocks, fixed income, asset management and private equity contributed 73% of the company’s overall operating income.
China International Capital Corporation Limited(601995) said that the increase of stock business income was mainly due to the increase of net income from equity investment, resulting in the increase of total investment income and profit and loss from changes in fair value; At the same time, the increase in brokerage fees and commission income and the change in profits and losses of foreign exchange derivative financial instruments due to exchange rate fluctuations also increased the operating income.
The growth of operating income of wealth management division is mainly due to the increase of brokerage service fee and commission income and interest income of margin trading.
boost the real economy and serve the largest country
Investment banking is the advantageous business of China International Capital Corporation Limited(601995) and a powerful starting point for serving the overall situation of the country.
according to the China International Capital Corporation Limited(601995) annual report, CICC, as the lead underwriter, completed 23 A-share IPO projects in 2021, with a lead underwriting amount of 100538 billion yuan, ranking second in the market. Meanwhile, China International Capital Corporation Limited(601995) as the lead underwriter, completed 37 A-share refinancing projects, with a lead underwriting amount of 81.314 billion yuan, ranking second in the market.
In terms of debt and structured financing, last year China International Capital Corporation Limited(601995) has completed a total of 1062 fixed income projects, with a year-on-year increase of 29.4%. Among them, there are 850 domestic bond underwriting projects, with an underwriting scale of RMB 729684 billion.
Whether equity financing or debt financing, in essence, it is delivering fresh water for the real economy, helping enterprises’ transformation and upgrading, and contributing to the high-quality development of China’s economy.
The reporter noted that, specifically, CICC investment bank also showed many highlights and innovations in the process of serving the real economy, some of which are worthy of reference by the industry.
For example, in terms of serving the green development strategy, the financing scale of green stocks and bonds has exceeded 250 billion yuan, accounting for about 10% of the green financing market.. Actively respond to the carbon neutral policy and assist national energy group, Huaneng Group and other companies to complete the first batch of carbon neutral corporate bonds issued by the exchange.
Last year, China International Capital Corporation Limited(601995) also made great efforts to help enterprises to bail out, helping private enterprises to raise more than 420 billion yuan of equity, and participating in the issuance of more than 510 billion yuan of private enterprise bonds. Taking Qinghai Salt Lake Industry Co.Ltd(000792) successfully resumed listing and returned to A-Shares as an example, China International Capital Corporation Limited(601995) as Qinghai Salt Lake Industry Co.Ltd(000792) ‘s financial adviser for debt restructuring, implemented effective debt restructuring and business restructuring for the enterprise, and realized the ordering of debt risk.
Promoting the reform of state-owned enterprises is also the key work of CICC investment bank China International Capital Corporation Limited(601995) undertook China Railway Materials Company Limited(000927) major asset restructuring, the merger of Sichuan communications investment and Sichuan railway investment, Shaanxi Construction Engineering Group Corporation Limited(600248) major asset restructuring, China Railway Special Cargo Logistics Co.Ltd(001213) A-share main board listing, China Telecom Corporation Limited(601728) back to a and other benchmark projects of state-owned enterprises. We steadily promoted the reform of mixed ownership of local state-owned enterprises and participated in 14 related transactions. These projects have effectively promoted the improvement of corporate governance of state-owned enterprises and the improvement of production and operation efficiency.
The reporter noted that China International Capital Corporation Limited(601995) also participated in and completed a number of innovative listing projects: the first red chip A-share listed company China Resources Microelectronics Limited(688396) electronics, the first “same share but different rights” A-share listed company Ucloud Technology Co.Ltd(688158) , the first “no income, no profit” A-share listed company Suzhou Zelgen Biopharmaceuticals Co.Ltd(688266) etc. “These innovative projects have multiple meanings. On the one hand, they have supported the financing of innovative enterprises and promoted the development of science and technology; on the other hand, they have set a benchmark for guiding more innovative enterprises to land in the A-share market, which is worthy of learning from their peers,” a senior industry insider told reporters.
According to the above-mentioned person, in fact, the head investment bank is not only simply doing business, but also responding to the country’s strategic direction, including carbon neutralization, private enterprise rescue, scientific and technological innovation, etc Citic Securities Company Limited(600030) , China International Capital Corporation Limited(601995) and other leading investment banks have been doing so, which is the mission and responsibility of state-owned financial institutions.
participate in the global market and deliver the “voice of China”
Compared with peers, China International Capital Corporation Limited(601995) in addition to China’s leading investment banking business, cross-border investment banking business is also commendable.
According to the annual report, in 2021, China International Capital Corporation Limited(601995) as the sponsor, took the lead in underwriting 31 Hong Kong stock IPO projects and completed ideal automobile, Ctrip and other projects, with a lead underwriting scale of US $5.981 billion, ranking second in the market. As the global coordinator, he led the underwriting of 38 Hong Kong stock IPO projects, with a lead underwriting scale of US $5.651 billion, ranking first in the market. As the bookkeeper, he has mainly underwritten 41 Hong Kong stock IPO projects, with a lead underwriting scale of US $4 billion, ranking first in the market.
In terms of U.S. stocks, last year China International Capital Corporation Limited(601995) as the bookkeeper, took the lead in underwriting eight U.S. stock IPO projects of Chinese enterprises, with a lead underwriting scale of $1.256 billion, ranking fourth in the market. As the bookkeeper, he has mainly underwritten one US equity refinancing project of Chinese funded enterprises, with a lead underwriting scale of US $60 million.
Overseas bonds China International Capital Corporation Limited(601995) are also in the leading position in the industry. Last year, China International Capital Corporation Limited(601995) Chinese enterprises ranked first in the market in terms of overseas debt underwriting scale. In the subdivided areas, the number of overseas convertible bonds underwritten by Chinese enterprises ranked first in the industry, and the underwriting scale of investment grade US dollar bonds of Chinese enterprises remained the first among Chinese securities companies for six consecutive years.
Some peers commented to the reporter that China International Capital Corporation Limited(601995) has a natural internationalization gene since its establishment, and also started the international layout earlier, so it has formed a more prominent cross-border business capability China International Capital Corporation Limited(601995) annual report also said that its international business income accounted for about one quarter, and gradually won more voice and pricing power in the international capital market.
The reporter learned that China International Capital Corporation Limited(601995) currently has established an international network covering seven financial centers in Hong Kong, New York, London, Singapore, San Francisco, Frankfurt and Tokyo, and is managed vertically and uniformly according to the business lines. The vast majority of investment bank members of the company have professional qualifications in China and several overseas regions.
“China is now proposing to build a world-class investment bank, and the regulation also encourages securities companies to become bigger and stronger. An important manifestation of a world-class investment bank is the influence of our investment bank in overseas markets. China International Capital Corporation Limited(601995) and other major securities companies in China are actually making efforts in this regard. This is also a manifestation of serving cross-border capital exchanges and promoting the two-way opening of financial markets,” the above-mentioned person said.
