Everbright Securities Company Limited(601788) announced that the company’s net profit in 2021 was 3.501 billion yuan, a year-on-year increase of 50%.
On January 20, Everbright Securities Company Limited(601788) announced that in 2021, the company made provision for asset impairment and estimated liabilities of RMB 1.128 billion, reducing the total profit of RMB 1.128 billion and net profit of RMB 1.028 billion in 2021. This provision includes accounts receivable (including other receivables), financed funds, finance lease receivables, debt investment (reversal), financial assets purchased for resale (reversal), estimated liabilities, other debt investment and bulk commodity inventory. Among them, the accrued liabilities for MPs are RMB 733 million.
At the same time, Everbright Securities Company Limited(601788) it is estimated that the operating revenue in 2021 will be RMB 16.705 billion, an increase of 5% over the previous year; The net profit attributable to the shareholders of the parent company was RMB 3.501 billion, an increase of 50% over the previous year.
why is MPs project accrued again?
MPs is a risk event Everbright Securities Company Limited(601788) years ago. From 2018 to 2020, the company has accrued 1.4 billion yuan, 1.611 billion yuan and 1.55 billion yuan respectively for the project for three consecutive years, and another 730 million yuan in 2021. That is, for this project, it has been accrued for four consecutive years.
According to the announcement, the company announced the MPS matters and related progress of Everbright Capital Investment Co., Ltd. (hereinafter referred to as Everbright capital) and its subsidiaries in the early stage. In 2021, Everbright capital, in accordance with the accounting standards for Business Enterprises No. 13 – contingencies, comprehensively considered the progress of MPS matters, the relevant litigation and arbitration judgments involved in Everbright capital and its subsidiaries, as well as the corresponding payment obligations to be undertaken according to the judgment results, and based on the principle of prudence, accrued an estimated liability of RMB 733 million for this matter.
According to the previous announcement of Everbright Securities Company Limited(601788) , the judgment result of China Merchants Bank Co.Ltd(600036) v. Everbright capital is that Everbright capital paid China Merchants Bank Co.Ltd(600036) 3.116 billion yuan and interest loss from May 6, 2019 to the date of actual settlement, and assumed part of litigation fees, property preservation fees and other expenses.
The judgment result of Huarui bank v. Everbright capital case is that Everbright capital paid Huarui bank the investment principal of 400 million yuan, the investment income from January 1, 2018 to the date of actual performance, and assumed legal fees, preservation fees, etc.
The arbitration result between Shenzhen Hengxiang and Everbright Baptist is to pay 150 million yuan and corresponding income, lawyer’s fees, arbitration fees, etc. to Shenzhen Hengxiang; The case of Zhaoyuan Yongjin v. Everbright capital made a judgment of first instance, which ruled that Everbright capital would compensate 30% of the investment principal of Zhaoyuan Yongjin.
From the relevant litigation and arbitration judgments involved in the above Everbright capital and its subsidiaries, it is not difficult to understand that the “undertaking corresponding payment obligations” referred to in the announcement may include the corresponding investment income, interest loss and expenses incurred in litigation and arbitration mentioned in litigation and arbitration.
On January 18 this year, new progress was made in MPS matters. Everbright Securities Company Limited(601788) announced that Everbright capital applied for retrial to Shanghai Higher People’s court for litigation related to China Merchants Bank Co.Ltd(600036) and other contract disputes of Huarui bank.
At present, Everbright capital has received the notice of acceptance of civil application for retrial cases from Shanghai Higher People’s court for the above two cases respectively. Shanghai Higher People’s court has decided to file a case for review of Everbright capital’s retrial application, and the final review result is still uncertain. It can be inferred that the judgment has not been executed in the lawsuit between Everbright capital, China Merchants Bank Co.Ltd(600036) and Huarui bank, so the unpaid contingent interest will continue to increase. On the whole, we can understand the specific reasons for withdrawing again.
In addition, the announcement shows that Everbright Securities Company Limited(601788) will assess the impact on the company according to the progress of MPS matters, and fulfill the obligation of information disclosure in accordance with relevant laws and regulations. Does retrial imply a positive turnaround?
expected net profit growth of 50% in 2021
On the same day, Everbright Securities Company Limited(601788) issued the announcement of annual performance increase in 2021. In 2021, the company’s operating revenue was RMB 16.705 billion, an increase of 5% over the previous year; The net profit attributable to the shareholders of the parent company was RMB 3.501 billion, an increase of 50% over the previous year. The performance growth was mainly due to the growth of the company’s wealth management business income, institutional business income, bond underwriting and trading business income during the reporting period compared with the same period of the previous year, and the significant decrease of asset impairment loss and estimated liabilities compared with the previous year.
MPs has been haunting Everbright Securities Company Limited(601788) for many years. Regarding whether it has an impact on the development of the company, Yan Jun, Secretary of the Party committee and chairman of the board of directors of the company, said that the company resolutely implements the requirements of the Party Central Committee of “taking the lead in stability and seeking progress in stability”, adheres to the duty of financial services to the real economy, actively practices the national strategy, actively resolves risk events, and earnestly performs its own political responsibilities Economic responsibility and social responsibility. In 2021, the company strengthened strategic guidance, returned to business origin, continuously deepened system and mechanism reform, implemented value orientation, accelerated transformation and upgrading, continuously strengthened and improved the construction of risk control and compliance system, and achieved steady progress in reform and development. In the future, the company will strengthen its determination and pace of development, actively integrate into the new development pattern and achieve high-quality development.
Although affected by the MPS incident, in recent years, Everbright Securities Company Limited(601788) has emphasized intensive management and coordinated development, showing a good trend all the way, and its performance is rapidly returning to normal and growing continuously. From 2019 to 2021, Everbright Securities Company Limited(601788) annual operating revenue reached more than 10 billion yuan and maintained a good growth rate. The revenue increased by 30.41%, 58% and 5% respectively compared with the previous year. In terms of net profit attributable to the parent company, Everbright Securities Company Limited(601788) from 2019 to 2021 were 568 million yuan, 2334 million yuan and 3.501 billion yuan respectively, with a year-on-year increase of 449.68%, 311% and 50% respectively.
