Explore the investment bank model of "theme Fund + base service"
On March 31, the old brokerage China Galaxy Securities Co.Ltd(601881) released the annual report of 2021.
In 2021, China Galaxy Securities Co.Ltd(601881) profit broke through the 10 billion mark for the first time and became a "10 billion net profit club" of securities companies.
The report shows that the company achieved an operating revenue of 35.984 billion yuan, a year-on-year increase of 51.52%; The net profit attributable to shareholders of listed companies was 10.430 billion yuan, a year-on-year increase of 43.99%.
According to the unaudited data of securities companies released by China Securities Association, the company's total assets ranked sixth in the industry by the end of the reporting period; The net assets industry ranks 7th; Ranked 6th in the net capital industry; The comprehensive strength remains at the first echelon of the industry.
It is noteworthy that with the continuous progress of the reform of the registration system, the number and scale of A-share IPOs in 2021 reached a record high. However, Galaxy Securities completed only 5 IPO projects and 11 refinancing (including convertible bond financing) projects during the reporting period.
In this regard, Haitong Securities Company Limited(600837) analyst sun Ting believes that in 2021, China Galaxy Securities Co.Ltd(601881) relying on its capital strength, it has achieved rapid growth in capital intermediary and proprietary business, but investment banks continue to be under pressure and perform poorly.
However, according to the 21st Century Business Herald reporter, China Galaxy Securities Co.Ltd(601881) is exploring the development mode of "theme Fund + base service" in order to enhance the core competitiveness of investment banking business.
In addition, in terms of asset management business, affected by the new regulations and industrial policies of asset management, no new customers and scale shall be added before the standardized transformation of asset management stock business is completed. Therefore, in 2021, the company's asset management scale decreased by 18.9% and revenue decreased by 12.6%. At present, the transformation of Galaxy Jinhui products has been basically completed.
The brokerage business grew steadily and the self operated business was transformed and developed
At present, China Galaxy Securities Co.Ltd(601881) main businesses mainly include brokerage sales and trading business, investment banking business, investment management business, futures brokerage business, asset management business, private equity investment and alternative investment, overseas business and other businesses.
In 2021, the revenue from the above businesses was RMB 12.509 billion, RMB 576 million, RMB 5.058 billion, RMB 15.119 billion, RMB 507 million, RMB 513 million, RMB 1.918 billion and RMB 1.404 billion respectively.
As the traditional strength of galaxy securities, brokerage business will continue to grow in revenue in 2021. During the reporting period, the company's brokerage business achieved an operating revenue of 12.509 billion yuan, a year-on-year increase of 16.40%.
In this regard, China Galaxy Securities Co.Ltd(601881) said that mainly due to the rise of the stock market index and the rebound of trading volume, the company grasped the market opportunities, enriched business categories, provided customers with the whole business chain securities brokerage business, and promoted the transformation of wealth management. The income of Securities Trading Commission increased year-on-year.
According to the data of the annual report, in 2021, China Galaxy Securities Co.Ltd(601881) continued to build the "fortune star" wealth management business brand, and its customers and scale maintained rapid growth. During the reporting period, a total of 1157500 accounts were opened, an increase of 6.72% year-on-year. Secondly, in terms of credit business, as of the end of the reporting period, the balance of margin trading and securities lending of customers was 93.8 billion yuan, an increase of 15% over the end of 2020, with an average guarantee ratio of 286%, and the overall risk was controllable.
It is worth mentioning that in 2021, China Galaxy Securities Co.Ltd(601881) self operated business income increased significantly. Data show that during the reporting period, the company's self operated and other securities trading services achieved an operating revenue of 5.038 billion yuan, an increase of 82.53% over 2020.
China Galaxy Securities Co.Ltd(601881) said that in 2022, the company's proprietary and other securities trading businesses will expand new category investment, expand investment scale, consolidate the foundation of OTC business, vigorously develop customer demand business, actively pay attention to ABS investment business opportunities and the impact of the establishment of Beijing stock exchange, and explore the road of transformation and development from proprietary investment to "comprehensive financial service provider".
explore the mode of "theme Fund + base service"
2021 is the third year of the pilot registration system in China's capital market and the year of the establishment of the Beijing stock exchange. Under the multiple dividends, China Galaxy Securities Co.Ltd(601881) 's investment banking business is in sharp contrast to the growth of brokerage and proprietary business.
According to the data, in 2021, a total of 524 enterprises in the whole market completed IPO issuance and listing, with a year-on-year increase of 32.66%, and the total issuance scale was 542675 billion yuan, with a year-on-year increase of 15.80%.
However, Galaxy Securities completed only 5 IPO projects and 11 refinancing (including convertible bond financing) projects in 2021. During the reporting period, the total underwriting scale of the company's shares was RMB 15.222 billion, including IPO Financing of RMB 684 million and refinancing of RMB 14.538 billion.
In this regard, China Galaxy Securities Co.Ltd(601881) said that with the continuous deepening of the comprehensive reform of the capital market, the full implementation of the registration system and the continuous improvement of the construction of multi-level capital market, the company will focus on the national strategic key areas, constantly consolidate and improve the development mode of "theme fund + base service" and further enhance the core competitiveness of investment banking business.
The 21st Century Business Herald reporter learned that the development model of "theme Fund + base service" is to set up a comprehensive financial service base locally and support enterprises to connect with the capital market by setting up industrial funds and providing investment and financing services at different development stages of enterprises.
Previously, Chen Gongyan, Secretary of the Party committee and chairman of China Galaxy Securities Co.Ltd(601881) securities, said frankly that "theme Fund + base service" is conducive to the regional economy and the development of galaxy itself. Galaxy Securities fully supports industrial innovation, regional economic development and enterprise docking with the capital market by setting up industrial funds and providing investment and financing services.
Public information shows that in December 2020, China Galaxy Securities Co.Ltd(601881) securities has established the first comprehensive financial service base in China in Zhenjiang New Area, Jiangsu Province.
It is reported that since 2017, there have been three new listed enterprises in Zhenjiang New Area, Jiangsu Province, and 50 listed enterprises in Jiangsu Stock Exchange Center, of which the total refinancing of listed enterprises has reached 3.5 billion yuan.
