Securities code: Tianfeng Securities Co.Ltd(601162) securities abbreviation: Tianfeng Securities Co.Ltd(601162) Announcement No.: 2022049
Tianfeng Securities Co.Ltd(601162) about
Reply to the regulatory letter on information disclosure of the 2021 Annual Report
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Tianfeng Securities Co.Ltd(601162) (hereinafter referred to as ” Tianfeng Securities Co.Ltd(601162) ” or “the company”) received the working letter on the supervision of information disclosure of Tianfeng Securities Co.Ltd(601162) 2021 annual report (shgh [2022] No. 0365) (hereinafter referred to as “the working letter”) from Shanghai Stock Exchange on May 13, 2022. After receiving the working letter, the company attached great importance to it and immediately organized relevant personnel and the annual audit accounting firm to carefully check and implement the issues concerned in the working letter one by one. Now, the reply to the relevant issues is as follows:
1、 About the company’s main business
Question 1: the annual report shows that during the reporting period, the company achieved a total investment income and income from changes in fair value of 2.232 billion yuan, a year-on-year increase of 21.99%, which is the main source of the company’s profits. The company is requested to make supplementary disclosure: (1) the profit contribution of different types of assets in the company’s proprietary business; (2) Investment of self owned funds in asset management business, including but not limited to product investment direction, investment period, net value at the end of the period and the beginning of the period, etc; (3) Whether there is any disclosure or commitment obligation to other investors. If so, please fully disclose and remind relevant risks.
reply:
(1) Profit contribution of different types of assets in the company’s proprietary business.
The types of assets involved in the company’s proprietary business include bonds, funds, stocks / equities, asset management plans, derivative financial instruments, trusts and others. The profit contribution of different assets during the reporting period is shown in the following table:
Unit: 10000 yuan
Total income from changes in fair value of category investment income
Bond 8345680 -22706646075016
Fund 35514845868884138372
Stock / equity 448271850530669535784
Asset management plan 140727210822692489541
Derivative financial instruments -1180181849366 -330815
Total income from changes in fair value of category investment income
Trust 362059 -174.54344604
Others 727.86 -13.62 714.24
Total 17041818528210922323927
(2) Investment of self owned funds in asset management business, including but not limited to product investment direction, investment period, period end and period end
Opening net value, etc.
As of December 31, 2021, the details of the company’s own funds investing in asset management products are as follows:
Unit: 10000 yuan
Product classification product investment term opening net value closing net value
45.76% investment bonds; 9.02% investment reverse repurchase;
0.15% investment in public funds; 0.73% investment in private equity
Fixed income funds; 1.07% investment cash; 2.05% investment dividends receivable 2-20 years 1048827020631464 and interest; 41.21% of investment deposits and settlement reserves
Payment and others.
Pool 39.14% to invest in stocks; 51.51% investment bonds;
Reverse repurchase of 2.16% investment in class capital; 0.06% investment in derivatives;
1.78% investment in public funds of mixed asset management; 2.75% investment cash; 3-10 years 1159900187911 1.15% investment dividends and interests receivable; 1.43% investment deposit
Deposit, settlement provision and others.
0.51% investment in stocks; 2.51% investment in derivatives;
Commodities and finance 1.33% investment in public funds; 91.12% invested in 10-year private placement fund 918.90260194 derivatives; 0.02% cash investment; 4.52% investment deposit guarantee
Deposits, settlement provisions and others.
Total — 1174006021079569
(3) Whether there is any disclosure or commitment obligation to other investors. If so, please fully disclose and prompt relevant information
Risk.
The above businesses do not have any disclosure or commitment obligations to other investors.
Question 2: the annual report shows that during the reporting period, the company’s asset management business achieved an operating revenue of 1.096 billion yuan, a year-on-year increase
25.60%, the total scale of entrusted assets at the end of the period was 115657 billion yuan, a decrease of 23.03% compared with 150267 billion yuan at the end of the previous year.
The company is requested to make supplementary disclosure: (1) in combination with market and industry conditions, revenue recognition policies, term structure of relevant products
Factors such as active management and changes in the scale of channel business indicate that the income scale of the company’s asset management business has increased, but the management scale has decreased
Causes and rationality of sliding; (2) The underlying capital investment direction, scale, yield level, term and of asset management products are
Whether related parties are involved; (3) Whether the asset management products managed by the company have potential promises and differences to investors
Supplementary information, if any, please describe the corresponding asset management products, relevant compensation arrangements and amount involved.
reply:
(1) Combined with market and industry conditions, revenue recognition policies, term structure of related products, active management and changes in channel business scale, this paper explains the reasons and rationality of the increase in the revenue scale of the company’s asset management business but the decline in the management scale.
Since the implementation of the guiding opinions on standardizing the asset management business of financial institutions, the measures for the management of private asset management business of securities and futures operating institutions and the provisions on the operation and management of private asset management plan of securities and futures operating institutions (hereinafter referred to as the “new asset management regulations”), the company has earnestly implemented the requirements of the new asset management regulations under the guidance of regulators, and vigorously rectified and reduced the scale of asset management channel business, As a result, the management scale of asset management business decreased. In 2021, the transition period of the new regulations on asset management entered the countdown, and the overall scale of the asset management industry of securities companies is still in the downward channel. According to the statistics of China Foundation Association, the scale of private asset management business of securities companies and their subsidiaries was 7.69 trillion yuan at the end of 2021, a year-on-year decrease of 4.06%. In the context of the decline in the scale of industry asset management, the company focused on reducing the channel business according to the regulatory requirements. As of December 2021, the scale of channel business decreased by 4.576 billion yuan compared with the beginning of the year, a year-on-year decrease of 81.34%.
In 2021, the revenue of asset management business increased by about 223 million yuan year-on-year, which is mainly due to the fact that after the company’s asset management business has completed the rectification of asset management products according to the requirements of the new asset management regulations, the product cannot retain the terms of risk reserves, and the risk reserves accrued in the original products are released and recognized at one time. This part of revenue is 268 million yuan. Excluding the above 268 million yuan, the revenue of asset management business in 2021 was 828 million yuan, a year-on-year decrease of 5.15%, which was less than the 23% decline of asset scale, mainly because the scale of asset management business decreased smoothly throughout the year, and the liquidation of asset management products still generated some revenue in 2021.
(2) The investment direction, scale, yield level, term of underlying funds of asset management products and whether related parties are involved
Product type bottom fund invested in net value at the end of the period weighted annualized contract term (RMB 100 million) yield
1.69% investment in stocks; 2.8% investment cash
Gold; 1.59% invest in private equity funds;
59.43% investment bonds; 1.05% investment company
Fund raised by collective asset management plan; 6.91% investment reverse repurchase; 408.25 5.10% 0-10 years 1 4.8% non-standard investment; 0.27% investment derivative
Products; 1.96% of investment dividends and receivables
interest; 19.51% investment deposit guarantee
Deposits, settlement provisions and others.
2.36% investment cash; 0.12% private investment
Raising funds; 61.32% investment bonds;
0.99% investment in public funds; 7.29% investment
Including: reverse repurchase of fixed income products; 5.15% non-standard investment; 377.31 4.21% 0-10 years 2.08% investment dividends and profits receivable
Interest; 20.69% of investment deposits
Settlement provisions and others.
1. Some products have no fixed duration. 2. Some products have no fixed duration
Product type bottom fund invested in net value at the end of the period weighted annualized contract term (RMB 100 million) yield
11.7% investment in stocks; 11.01% investment cash
Gold; 14.89% invested in private equity funds;
51.41% investment bonds; 2.54% investment company
Funds raised from mixed products; 2.53% investment reverse repurchase; 20.11 6.99% 2-10 years 3 4.17% investment derivatives; 0.37% investment
Dividends and interest receivable; 1.39% investment
Deposits, settlement provisions and
other.
99.99% of equity products are invested in stocks; 0.01% investment now 5.16 57.94% 0-1 year
Kim.
3.79% invested in stocks; 8.77% investment cash
Commodities and financial derivatives; 66.1% invest in private equity funds; 1.7%
Public offering of product investment
