On March 31, Orient Securities Company Limited(600958) performance presentation was held online Orient Securities Company Limited(600958) chairman Jin Wenzhong and new president Lu Weiming gave a detailed interpretation of the performance and future development of the company at the meeting.
Orient Securities Company Limited(600958) disclosed the 2021 annual report on March 30, in which many businesses performed well. The annual report shows that in 2021, Orient Securities Company Limited(600958) achieved an operating revenue of 24.370 billion yuan and a net profit attributable to the parent company of 5.371 billion yuan, with a year-on-year increase of 5.34% and 97.26% respectively; Roe (weighted average return on net assets) reached 9.02%, with a year-on-year increase of 4.17 percentage points. Both net profit and roe reached a new high since 2016.
at the same time, the net profits of Dongzheng asset management (Dongfanghong asset management), huitianfu fund, Dongzheng futures and Dongzheng innovation investment reached the best level in history, the income from selling financial products on a commission basis increased by 36%, and the characteristics of big wealth management were further deepened
In addition, the performance briefing also disclosed that as of March 25, the signing scale of the company’s fund investment adviser had exceeded 10 billion yuan.
chairman Jin Wenzhong: both net profit and roe have reached a new high since 2016
On March 31, Orient Securities Company Limited(600958) chairman Jin Wenzhong said at the performance presentation meeting: in 2021, adhering to the business strategy of “stabilizing growth, controlling risks and promoting reform”, the company carried out work around “two improvements, two stabilities and one breakthrough” (i.e. improving wealth management and investment banking business, stabilizing asset management and securities investment business, and financial technology breakthrough enabling development).
According to Jin Wenzhong, the main business highlights of Orient Securities Company Limited(600958) 2021 are reflected in the following four aspects:
First, the operating performance increased significantly. In 2021, the company achieved an operating revenue of 24.37 billion yuan and a net profit attributable to the parent company of 5.37 billion yuan, with a year-on-year increase of 5.3% and 97.3% respectively; Roe was 9.0%, with a year-on-year increase of 4.17 percentage points; Both net profit and roe level have reached a new high since 2016.
Second, the effect of income balance transformation is outstanding, and light and heavy asset businesses go hand in hand. From the perspective of income structure, excluding the impact of commodity trading and other income, the company’s investment management, brokerage and securities finance, as well as securities sales and trading accounted for 33%, 35% and 26% respectively, and the income of investment banking accounted for 10.3%.
Third, the business competitiveness has been effectively improved. The net income of the company’s asset management business continues to rank first in the industry; The main indicators of investment banking business have entered the top ten in the industry; The transformation of wealth management business has been highly recognized by the market; The transformation of large proprietary business to ficc, derivatives, quantification and market making has been steadily promoted, and the investment ability and risk control ability have withstood the test of the market.
Fourth, the performance of subsidiaries broke out, and the net profits of asset management, huitianfu fund, futures and innovation investment of Eastern securities hit the best level in history, which formed a strong support for the performance of the company. The income from selling financial products on a commission basis increased by 36%, and the characteristics of big wealth management were further deepened.
With regard to the future development of Orient Securities Company Limited(600958) , Jin Wenzhong said: “in 2022, the reform of the capital market will be further deepened and the competition in the securities industry will be further intensified. The overall idea of the company’s work is to uphold the general tone of ‘taking the lead in stability and seeking progress in stability’ and promote the high-quality development of the company.”
according to Jin Wenzhong, the company’s overall strategy is to comprehensively promote the development driven by the three strategies of collectivization, digitization and internationalization, and take advantage of the momentum to promote retail finance (promoting the great development of wealth management business), institutional finance (improving the service level of the whole chain of institutions) on the basis of a good start of the new phase of strategic planning, guided by performance improvement, guaranteed by strengthening responsibility, and centered on “two improvements, two stabilities and one breakthrough” The four business clusters of Enterprise Finance (building a comprehensive service system for enterprise customers) and asset management, deepening the reform of capital, talent, mechanism, management and science and technology, continuing to strengthen compliance and risk management, and promoting the company to achieve good sustainable development
market oriented reform achieved good results
Reviewing the operation measures in 2021, Jin Wenzhong said that Orient Securities Company Limited(600958) vigorously promoted the market-oriented reform in 2021 and achieved good reform results. The main operation measures include four aspects:
First, the company successfully completed the replacement of the board of directors, the board of supervisors and the management. The new management presents the characteristics of youth and specialization. At the same time, the construction of professional teams in major business sectors has been further strengthened.
Second, strengthen capital replenishment, steadily promote the company’s a + H share allotment, and do a good job in the company’s asset liability allocation management.
Third, optimize the incentive and restraint mechanism, promote the construction of market-oriented mechanism of all business lines, improve the performance index system of all departments and subsidiaries, and clarify the roe oriented assessment system.
Fourth, improve organizational construction. The company started to absorb and merge the Eastern Investment Bank. At the same time, the company established three key project promotion groups of “financial technology, group integration and compliance penetration” to focus on key tasks.
According to the annual report disclosed by Orient Securities Company Limited(600958) on March 30, as of the end of 2021, the total assets of Orient Securities Company Limited(600958) were 326.6 billion yuan, an increase of 12.19% over the end of the previous year; The owner’s equity attributable to the parent company was 64.127 billion yuan, an increase of 6.52% over the end of the previous year. Meanwhile, the Orient Securities Company Limited(600958) classification evaluation in 2021 regained AA rating; The company was also rated as class a of brokerage culture construction practice, and Mingsheng ESG was upgraded from BBB to class A.
From the perspective of revenue composition, in the revenue of 24.370 billion yuan in Orient Securities Company Limited(600958) 2021, the revenue of brokerage and securities finance business is 14.325 billion yuan, accounting for 56.78%. Followed by investment management business (including asset management, fund management and private equity investment business), with a revenue of 5.531 billion yuan, accounting for 21.92%; Last year, the revenue of securities sales and trading business was 4.326 billion yuan, accounting for 17.15%; The revenue of investment banking business was 1.725 billion yuan, accounting for 6.84%; In addition, the revenue of the management department and other businesses last year was -679 million yuan.
new president Lu Weiming: further strengthen business transformation
On March 31, Lu Weiming also appeared at the performance briefing as president of Orient Securities Company Limited(600958) for the first time, introducing the performance and highlights of Orient Securities Company Limited(600958) 2021.
On March 30, Orient Securities Company Limited(600958) announced that Lu Weiming, the former vice president, was appointed as the president of the company, and Jin Wenzhong, the chairman of the board, was no longer the president of the company. Lu Weiming joined Orient Securities Company Limited(600958) , general manager of the company’s fixed income business headquarters from October 2014 to August 2021, vice president of Orient Securities Company Limited(600958) from September 2020, and general manager of the company’s financial derivatives business headquarters from January 2021 to March 2021.
Lu Weiming said that under the guidance of the national policy of “building a standardized, transparent, open, dynamic and resilient capital market”, the reform and development of the market will be further deepened. The registration system is about to be launched in the whole market to drain more medium and long-term funds into the market. On March 16, the meeting of the financial stability Committee clearly stressed the need to maintain the stability of the capital market, actively introduce policies beneficial to the market and prudently introduce contractive policies. The overall tone has a very obvious protective attitude towards the capital market. Later, I believe that the confidence of the market will gradually recover.
Lu Weiming said that from the perspective of the company’s operation, we should adhere to long-term development, strengthen the study and judgment of the situation, and make positive responses: first, continue to actively practice the mission of serving the development of the real economy and social wealth management, and provide customers with professional and high-quality comprehensive financial services; Second, promote the reasonable proportion of the company’s asset light business and asset heavy business, and maintain a good business structure; Third, further strengthen business transformation, reduce the proportion of directional investment, and promote the transformation to a quantitative and risk neutral investment model and sales and transaction business with customers.
for the impact of the epidemic, Lu Weiming said that the company further did a good job in prevention and control, and continued to ensure the health and safety of employees and the smooth operation of the company. For the business outlets that require to suspend the provision of on-site services, the company provides comprehensive and perfect online transactions and other services; For investment business, the company shall make emergency plans for personnel, transactions and liquidation to ensure that business activities are not affected
Dongfanghong and huitianfu funds keep leading in the industry
As Orient Securities Company Limited(600958) traditional strength, the company’s asset management business will remain the industry leader in 2021.
2021, Orient Securities Company Limited(600958) investment management business (including asset management, fund management and private equity investment business) achieved a revenue of 5.531 billion yuan, an increase of 25.89% compared with 2020, which is the main business segment with the highest growth rate
According to the annual report, as of the end of the reporting period, the revenue and profit of Dongzheng asset management, a wholly-owned subsidiary of the company, reached a new high, with a total scale of entrusted asset management of RMB 365929 billion, an increase of 23% compared with the beginning of the period. Among them, the management scale of public funds was 269622 billion yuan, an increase of 35% compared with the beginning of the period. The company takes closed products as long-term investment tools for its customers. The scale of its long-term closed equity funds is about 108 billion yuan, accounting for 69% of the scale of all equity funds of the company.
As of the end of the reporting period, the return rate of active management of stock investment of Dongzheng asset management in recent seven years was 294.35%, ranking first in the industry (data source: Galaxy Securities Fund Research Center). The absolute rate of return of the fixed income funds under the asset management of Dongzheng Securities Co., Ltd. in recent five years is 30.82%, ranking the top 1 / 5 of the industry (data source: Haitong Securities Company Limited(600837) Research Institute of financial products research center).
In addition, Orient Securities Company Limited(600958) is the largest shareholder of huitianfu fund, with a shareholding ratio of 35.412%. In 2021, the overall asset management scale of huitianfu fund exceeded 1.2 trillion yuan, and the scale of non monetary financial public funds exceeded 610 billion yuan, ranking in the forefront of the industry. In addition, huitianfu fund was successfully approved to set up an American subsidiary in 2021 and officially launched the investment consulting business of industrial fund.
For the future development of asset management business, Jin Wenzhong said at the performance briefing that the idea of asset management of Dongzheng is to strengthen the foundation and consolidate the capital, further improve its investment and research ability and realize sustainable development:
First, strengthen the construction of investment research team, strengthen the introduction and training of investment managers and professional investment research personnel, further optimize the incentive and restraint mechanism, and build a comprehensive and professional investment research team.
Second, build a professional, diversified and highly integrated investment and research integration platform to further improve the investment ability and create better returns for the holders. Investment management capability is the core competitiveness of asset management industry. On the one hand, based on the existing research values and excellent research methods, we should strengthen the initiative consciousness of the research team in the transformation from research to investment, speed up the output of research results and continue to improve the efficiency of investment transformation; On the other hand, based on the original bottom-up research advantages, we should strengthen the combination of top-down, pay attention to industrial research and industrial research, change the way of thinking, improve the investment framework, improve the specialization and efficiency of the investment and research system, and realize the positive cycle of self hematopoiesis.
Third, develop business around the ability of active investment management, expand product matrix, directly arrange industry funds with long-term vitality in terms of equity, such as medicine, ESG, dual carbon economy, high-end manufacturing, science and technology, and focus on promoting the development of private equity business and enriching the strategies of private equity products; In terms of fixed income, further enrich the product line according to the risk return characteristics and customer needs, including fixed income + products, pure debt funds and short-term debt funds; On the basis of building a professional service system, comprehensively upgrade the sales and service capacity, realize the diversification of capital sources matching the investment management capacity, including strengthening the tripartite cooperation of the Internet, developing potential cooperation channels, and expanding new long-term capital channels, so as to further improve the scale proportion of institutional customers, high net worth customers and direct sales customers, optimize the customer structure and promote the stable development of the company’s platform.
fund investment advisers signed contracts with a scale exceeding 10 billion yuan
In terms of wealth management business, the Orient Securities Company Limited(600958) annual report shows that the company’s financial product consignment business has reached a new high. By the end of 2021, the ownership scale of equity products of the company had reached 64.712 billion yuan, an increase of 43% over the beginning of the period; The holding scale of stock + mixed public funds is 42.4 billion yuan, ranking seventh among securities companies. In addition, the company actively guides customers to hold high-quality equity funds for a long time, and actively manages the closed structure of equity products, accounting for 62%.
institutional business, Orient Securities Company Limited(600958) regards institutional financial management as the core business model of institutional business, and has customized and developed an online service platform for public funds focusing on the analysis, configuration and trading of one-stop OTC funds serving institutional customers. During the reporting period, the company added 1669 institutional customers, with a year-on-year increase of 48%. The asset scale of newly introduced institutional customers reached 53.9 billion yuan, and the asset scale of institutional customers reached 545.7 billion yuan at the end of the period
It is worth mentioning that Xu Haining, vice president of Orient Securities Company Limited(600958) said at the performance briefing that the signing scale of the company’s fund investment adviser has exceeded 10 billion yuan.
According to Xu Haining, Orient Securities Company Limited(600958) in June 2021 officially obtained a letter of no objection to the pilot fund investment consulting business. In September, it passed the exhibition inspection of Shanghai Securities Regulatory Bureau and became the first organization approved for exhibition in Shanghai among the second batch of pilot institutions. After repeated thinking, careful polishing and preparation, Orient Securities Company Limited(600958) officially launched the fund investment advisory business on November 22, 2021. As of March 25 this year, Orient Securities Company Limited(600958) fund investment advisory business has served 123400 customers, with a total scale of 10.007 billion yuan and average household assets of 81100 yuan.
Xu Haining said: “we believe that the launch of the fund investment advisory business is of milestone significance. It represents the arrival of the buyer’s wealth management era. Therefore, the company combines its own resource endowment and constructs a business model from the perspective of customer demand.”
According to Xu Haining, Orient Securities Company Limited(600958) mainly focuses on the following aspects to promote the development of fund investment advisory business:
The first is incremental thinking. The fund investment consulting business is a huge incremental market. Orient Securities Company Limited(600958) focuses the customer base of this business service on the perspective of a large retail market such as Chinese residents, and plans to gradually promote this service to institutional customers including enterprises in the future, rather than just stay in the stock retail customers and stock market engaged in securities investment, so as to use a broader idea, Look at this work from a broader perspective.
The second is professional services. It is said that the fund investment consulting business emphasizes “three investment and seven investment”. “Investment” is a specialized investment, which is mainly in asset management institutions; “Gu” refers to professional consulting services, which is the resource endowment of wealth management. Therefore Orient Securities Company Limited(600958) will focus its own capacity-building on professional services from the perspective of wealth line, focusing on customers’ target income, capital attribute, risk preference and other needs; Adhere to an independent and objective perspective and proceed from the interests of the buyer, strictly select managers, fund managers and products in the whole market, build an appropriate portfolio strategy and provide professional services.
The third is systematization. The company has established the organizational structure and working procedures of fund investment advisers who perform their respective duties and cooperate in division of labor, and established the company’s decision-making committee. The specific business is in the charge of the leader in charge, led by the wealth management department, managed and supervised by the relevant management department and supported by the technology department, so as to ensure the smooth development of the fund investment advisory business.
The fourth is platform. The company is committed to the platform development strategy of fund investment advisory business, establishes a platform business development ecological training based on the buyer’s business model, financial technology as the means, content service as the basis and customer companionship as the core, and explores and absorbs more professional investment advisory talents and professional investment advisory teams based on common value proposition, so as to realize the wealth management needs of different customer groups.
self operated investment remained stable and ficc business remained the industry leader
in the large proprietary sector, the annual report shows that Orient Securities Company Limited(600958) proprietary investment business system and ficc industrial chain are basically mature, and the scale and performance of proprietary business maintain a leading position in the industry. In 2021, the company’s cash bond delivery volume in the inter-bank market increased by 12.56% year-on-year, and the trading volume of interest rate swaps ranked among the top securities companies. In terms of market making, the company’s inter-bank bond market making business achieved outstanding results, with market making trading volume increasing by 20% year-on-year, bond trading volume increasing by 11% year-on-year, and the market making of CDB bonds and agricultural development bonds ranked first in the group
In terms of business innovation and transformation of ficc, Orient Securities Company Limited(600958) quantitative trading strategies are more abundant and the business is running well. In the agent transaction of traditional standardized products with market making transaction and sales transaction as the core, it has formed a certain market competitiveness. At the same time, the company comprehensively carried out foreign exchange business and created the foreign exchange brand of “Oriental Zhihui”. The scale of proprietary trading ranked fifth in the industry, and the foreign exchange agency business actively served the real economy.
In addition, Orient Securities Company Limited(600958) derivatives business is developing rapidly. In 2021, the yield of quantitative business ranked among the top 10% of quantitative hedging products in the market; Optimize the daily trading volume of options, and actively increase the average trading volume by 500% year-on-year; The nominal principal scale of OTC derivatives business reached 29.5 billion yuan, an increase of more than 20 times over the beginning of the period.
equity financing scale ranks among the top ten in the industry
In terms of investment banking business, Orient Securities Company Limited(600958) equity financing scale index has entered the top ten in the industry. In 2021, China Eastern Investment Bank completed 26 equity financing projects, with a year-on-year increase of 23.81%, and the main underwriting amount was RMB 39.053 billion, with a year-on-year increase of 128.62%.
among them, 9 IPO projects were underwritten by Orient Investment Bank, with a total underwriting scale of RMB 13.025 billion, a year-on-year increase of 27.26%, ranking the tenth in the industry. Among them, Everdisplay Optronics (Shanghai) Co.Ltd(688538) landed on the sci-tech innovation board, setting a record of the highest financing scale of the sci-tech innovation board in the year when it was listed; In terms of refinancing, Oriental Investment Bank underwritten a total of 17 additional issues, allotments and convertible bonds, with the main underwriting amount of RMB 26.628 billion, a significant increase of 280.13% year-on-year, ranking eighth in the industry
Dongfang investment bank continued to cultivate traditional advantageous industries such as chemical industry and semiconductor, and blossomed in emerging fields such as biomedicine and high-end manufacturing, helping physical enterprises become bigger and stronger.
In terms of bond underwriting, by the end of the reporting period, the number of high-quality AAA customers served by Oriental Investment Bank had exceeded 100. In 2021, Orient Securities Company Limited(600958) interest rate bond underwriting remained the industry leader. Among them, bookkeeping treasury bond underwriting ranks third in the industry, and CDB financial bond underwriting and agricultural development bank financial bond underwriting rank second in the industry. In 2021, the company’s lead underwriting scale of non-financial enterprise debt financing instruments exceeded 30 billion yuan for the first time, ranking among the top 10 lead underwriters of securities companies.
