In 2021, the operating revenue was 18.972 billion yuan and the net profit was 4.743 billion yuan, an increase of 7.92% and 18.48% respectively At the explanation meeting of China Industrial Securities Co.Ltd(601377) 2021 annual performance and cash dividend held on April 12, Liu Zhihui, President of China Industrial Securities Co.Ltd(601377) company, Zheng Chengmei, vice president and Secretary of the board of directors, Lin Hongzhen, chief financial officer and sun Zheng, independent director, attended the meeting and gave detailed answers on the main business work and future development direction of China Industrial Securities Co.Ltd(601377) company in 2021.
For the future development direction of the company, Liu Zhihui said that 2022 is the year of China Industrial Securities Co.Ltd(601377) "14th five year plan" China Industrial Securities Co.Ltd(601377) will further promote the transformation of branches, continuously improve the integrated operation and management system and mechanism of the group, adhere to integrity and innovation, strengthen the empowerment of financial technology, further consolidate the new development pattern of the group of "strengthening headquarters, large branches and specialized subsidiaries", translate the achievements of the transformation and development system construction of the group in the past four years into the results of operation and development, and promote the improvement of management level, expansion of operation scale and efficiency.
() record operating performance
China Industrial Securities Co.Ltd(601377) annual report data show that in 2021, the company achieved an operating revenue of 18.972 billion yuan and a net profit of 4.743 billion yuan, an increase of 7.92% and 18.48% respectively; By the end of 2021, the total assets of the company had reached 217463 billion yuan, a year-on-year increase of 20.13%; The net assets reached 45.355 billion yuan, an increase of 11.07% year-on-year.
"During the reporting period, the group's capital strength increased steadily, its operating performance hit another record high, and its core business competitiveness continued to improve." At the performance presentation meeting, Liu Zhihui introduced the highlights of the company's operation in 2021 from the aspects of wealth management, institutional comprehensive services, proprietary business and so on.
In terms of wealth management business, the company's important indicators such as agency trading and two financing reached a new high, the scale of customers further increased, the comprehensive service ability of customers was significantly improved, the pilot qualification of fund investment adviser was officially approved, the settlement business of securities companies maintained the first mover advantage, and the ability of professional trading services was significantly enhanced; The product ecology has been continuously enriched, the management scale of public funds has maintained a steady growth, the medium and long-term performance of products has maintained the leading position in the industry, the public offering transformation of asset management of securities companies has been steadily promoted, and the active management scale of asset management has passed through the inflection point to achieve growth.
In terms of institutional comprehensive services, the ecosystem of institutional customer comprehensive services has been further enriched, and the scale of key customer groups and income generation have been significantly improved. The large investment banking business further grasped the market opportunities and improved its business layout. The income ranking of investment banking business remained at the top of the industry. The industry ranking of important indicators such as equity financing amount, bond financing amount and ABS underwriting scale was improved and ranked at the top; Research business continues to maintain the first echelon of the industry, and continues to expand in the fields of industrial research, think tank services and green finance; The asset custody outsourcing business continued its strong growth momentum and helped the group's large institutional businesses to catch up and break through with the "custody +" innovative service model.
In terms of self operated business, the self operated investment ability has been further strengthened and continued to create good returns. The yield of bond self operated investment ranks among the best among comparable funds. The structure of direct investment business has been continuously optimized and the investment income has been gradually realized.
"In addition, the company has been highly recognized in the fields of social responsibility such as green finance, cultural construction and investor education. In 2021, the company received class a AA rating in the classified rating of securities companies, the highest class a rating in the first practical evaluation of industrial cultural construction by China Securities Association, and the national entity investment and education base has received the investment and education evaluation of China Securities Regulatory Commission for three consecutive years." "And continue to contribute to the high-quality development of the national economy." Liu Zhihui said.
() outstanding business performance
According to the data of the annual report, China Industrial Securities Co.Ltd(601377) 2021, the securities brokerage business realized an operating revenue of 4.180 billion yuan, an increase of 31.06%; The operating income of asset management business was 5.317 billion yuan, an increase of 34.40%; The operating income of institutional service business was 5.738 billion yuan, down 6.87%; The operating income of self operated investment business was 3.42 billion yuan, down 21.98%; Overseas business achieved operating income equivalent to RMB 389 million, an increase of 137.14%.
In terms of revenue composition, institutional business revenue accounts for about 30%, asset management business revenue accounts for about 28%, securities brokerage business revenue accounts for 22%, proprietary business revenue accounts for 18%, and overseas business revenue accounts for 2%. Institutional business has become the main business with the largest proportion of China Industrial Securities Co.Ltd(601377) contribution.
At the performance presentation meeting, Zheng Chengmei also introduced the latest development of the company's investment banking, research, custody and other institutional businesses.
In terms of investment banking business, Zheng Chengmei said that in 2021, the company closely followed the dynamics of the capital market, actively grasped the new opportunities for the comprehensive transformation and upgrading of the business form of registration system, served the high-quality development of the real economy and the construction of multi-level capital market, effectively strengthened the professional ability of equity financing business, and continuously improved the market competitiveness. According to statistics, the company completed the lead underwriting of 11 IPO projects and 16 refinancing projects in 2021, with a lead underwriting amount of 24.372 billion yuan, ranking 13th in the industry, up three places from the previous year.
In terms of research business, Zheng Chengmei pointed out that in 2021, the company's seller's research business income reached a new high, the industry ranking and market share of seat commission income continued to remain at the forefront of the industry, and made another good performance in the mainstream selection of the industry. At the same time, the company's research advantages have fully enabled the development of various businesses and the construction of customer service ecosystem, the transformation of comprehensive benefits has been continuously strengthened, and the business model of industry research linkage has gradually matured. The brand influence of the company's think tank is increasing day by day. It undertakes major projects of the government and regulatory authorities, participates in high-level economic and financial forums and conferences, initially forms the advantage of green research, takes the lead in building an ESG evaluation system that completes benchmarking international standards and combines Chinese characteristics, and constantly widens the cooperation channels with high-level international platforms.
In terms of custody business, Zheng Chengmei said that the company incorporated custody outsourcing into the business chain of large institutions, committed to providing customers with full life cycle and all-round comprehensive financial services, and actively sought cooperation opportunities with licensed financial institutions while continuing to cultivate the custody market of private securities investment funds. In 2021, the company's asset custody and outsourcing service business maintained a strong growth trend, with 2132 private securities investment funds newly added, ranking fourth in the industry. At the end of the period, there were 4709 private securities investment funds in custody, ranking fifth in the industry.
How to transform wealth management
Under the background of steady economic development and stabilization of the capital market, the demand for residents' wealth management has maintained a growth trend. The task of the capital market to help maintain and increase residents' wealth has become clearer. The transformation of wealth management of securities companies has ushered in an important period of development opportunities and broad development space.
With regard to the development strategy and layout of wealth management business proposed by investors, Zheng Chengmei said that during the reporting period, the company's important indicators such as agency trading and two financing reached a new high, the scale of customers further increased, the comprehensive service ability of customers was significantly improved, the construction of family office mechanism was pushed forward, the pilot qualification of fund investment adviser was officially approved, the settlement business of securities companies maintained the first mover advantage, and the professional trading service ability was significantly enhanced; The product ecology has been continuously enriched, the management scale of public funds has maintained a steady growth, the medium and long-term performance of products has maintained the leading position in the industry, the public offering transformation of asset management of securities companies has been steadily promoted, and the active management scale of asset management has passed through the inflection point to achieve growth.
Looking to the future, Zheng Chengmei said that the company will adhere to customer-centered, strengthen the construction of wealth management customer service ecosystem, strictly select products to create value, continue to expand the scale of customer base, improve customer service experience and accelerate the transformation of wealth management.
Specifically, at the level of long tail and retail individual customers, strengthen the empowerment of financial technology, take the online operation mode and standardized products as the service means, transform the customer service process with internet thinking, and improve the quality and efficiency of customer service; At the level of high net worth customers, taking the fund investment adviser as the starting point, provide specialized services such as differentiated trading system, customized product investment and large category asset allocation services, and strengthen customers' brand recognition of Xingzheng wealth; At the level of ultra-high net worth and family wealth customers, it covers multiple strategies, provides multi-level, customized and cross life cycle products and service solutions, and improves customer value experience and stickiness; In terms of wealth management business for institutional clients, we will focus on institutional brokerage services, expand the number of institutional investors, and strive to provide all-round wealth management services for institutional clients.
