HONG KONG, March 31, 2022 /PRNewswire/ -- Shenwan Hongyuan Group Co., Ltd ("Shenwan Hongyuan Group", "Shenwan Hongyuan" or the "Company") (stock code: 6806.HK; 000166.SZ) announced its annual results for the 12 months ended December 31, 2021 (the "Reporting Period").
During the Reporting Period, the Company continued to rank among the top in industry on the back of steady financial performance. Shenwan Hongyuan achieved total revenue and other income of RMB46.17 billion, representing a year-on-year increase of 17.92%. Net profit attributable to shareholders of the Group reached RMB9.40 billion, representing a year-on-year increase of 21.02%. Basic earnings per share was RMB0.38, representing a year-on-year increase of 22.58%. A weighted average return on equity of 10.26% represented a year-on-year increase of 1.21 percentage points.
In 2021, in view of the high-quality economic development in China, deepening supply-side structural reform, and increasing proportion of direct financing, the capital market further strengthened its function as a hub to promote technological innovation and the transformation and upgrading of the real economy. Benefitting from the continually positive policies, the securities industry recorded stable performance. Shenwan Hongyuan proactively adapted to the new situation, tasks and requirements to fully support and serve the national strategy. By accelerating the construction of a comprehensive financial service system featuring "investment + investment banking", the Company strived to serve the development of the real economy.
Business Highlights in 2021:
Registration system reform progressed steadily, and the establishment of the Beijing Stock Exchange supported the investment banking business. During the Reporting Period, the enterprise finance business of the Company recorded total revenue and other income of RMB3,998 million, representing a year-on-year increase of 33.42%. Placing service of the national strategy as the top priority, the Company deeply participated in the reform of state-owned enterprise, and proactively supported the development of emerging industries to fulfil the responsibilities as a state-owned financial enterprise. In terms of equity financing, total underwriting scale was RMB34.565 billion; the Company was the underwriter for 29 enterprises, ranking ninth in respect of underwriting scale in the industry (Source: Wind, based on the data on the issuance date), representing a rapid climb in the industry ranking. In addition, the Company proactively promoted "Niche" strategies and vigorously developed inclusive financial business, to fully promote the development of small and medium-sized enterprises. The number of NEEQ-listed enterprises supervised by the Company ranked second in the industry; among which, the number of innovative enterprises ranked first in the market. In terms of debt financing, the Company completed the issuance of 329 bonds (inclusive of corporate bonds, financial bonds and enterprise bonds) amounting to RMB225.764 billion, representing a year-on-year increase of 51.40% (Source: Wind, based on the data on the issuance date), which ranked eighth both in number and scale of issuance. The Company developed all types of fixed-income financing business and completed a number of first bond projects in the country. In terms of principal investment business, centering on the new situation and new requirements during the "14th Five-year Plan" period, the Company further focused on the capital market and securities business on the basis of strict risk control. Through business synergy, it proactively optimized business transformation layout, continuously strengthened investment and research capabilities, improved institutional investment capacity and enhanced market competitiveness.
Following the trend of wealth management to achieve continuous increment in the scale of futures brokerage business. During the Reporting Period, the personal finance business of the Company recorded total revenue and other income of RMB14,184 million, representing a year-on-year increase of 10.38%. In 2021, the capital market recovered overall, the Company proactively built an interactive online and offline customer service system in terms of securities brokerage business and put great efforts on introducing and activating assets from customers to improve the wealth management system. During the Reporting Period, client's securities under the custody of the Company amounted to RMB4.38 trillion, and the net income from the agency trading business amounted to RMB4,345 million, ranking among the top of the industry. In terms of sales of financial products business, the Company proactively integrated internal and external resources to provide professional and diversified product services to customers. The amount of sold financial assets reached RMB354.147 billion, representing a year-on-year increase of 37.04%; net income of the agency sale of financial product business was RMB452 million, representing an increase of 104.49% over the same period last year. Meanwhile, the Company proactively carried out its margin financing and securities lending business under controllable liquidity risks; the balance of the financing business of the Company totaled RMB72,592 million, and the balance of the securities lending business of the Company was RMB5,793 million. The Company also further decreased the scale of stock-backed lending business to RMB5,876 million. The futures brokerage business achieved historical high in daily average customer equity, while the futures brokerage business scale of Shenwan Futures continuously increased, and Hongyuan Futures promoted innovative upgrade of the brokerage business.
Steady development of institutional business; entire built industry chain one step closer. The Company's institutional services and trading business recorded total revenue and other income of RMB25,731 million, representing a year-on-year increase of 22.99%. The Company utilized products to coordinate and integrate internal and external resources to provide customers with comprehensive financial services, including research, products and transactions. The revenue of trading units leasing represented an increase of 46.31% over the previous year, retaining its top ranking in the industry; a total of 926 PB System customers of the Company was recorded, representing an AUM of RMB269.20 billion. The Company also successfully built contacts with a number of top quantitative private equity funds with a size of RMB10 billion. The product scale of the SWHY Matrix platform, a professional trading solution for private equity managers, exceeded RMB28 billion; the number of newly added mutual funds and private funds under custody ranked among the top in the industry. On the proprietary business front, the Company created a complete FICC business chain, steadily engaged in fixed-income investments, adhered to risk control and structure adjustment, and promoted the transformation of investment style. As a result, investment yield of the bond business significantly exceeded the market index; equity sales and trading business underwent accelerated transformation, with "non-directional, low volatility, absolute return" as the investment goal; the Company also placed the focus on OTC derivatives business and swap business with the scale of OTC derivatives business growing rapidly, with the new and existing scale steadily ranking at the forefront of the industry.
During the final year of the reform of new regulations on asset management, mutual and private funds developed at their own pace. During the Reporting Period, the total revenue and other income of the investment management business segment was RMB2.258 billion. The Company vigorously developed "fixed income+", FOF, equity and quantitative products, established "carbon neutrality" and green finance-themed products, issued inclusive finance products, and launched the first snowball product, resulting in further improvement of the product layout. Active equity management products, quantitative equity products and fixed income investment products saw outstanding returns; in terms of the asset securitization business, various benchmark projects newly released in 2021 garnered recognition from the industry. Shenwan Hongyuan Securities leveraged on its advantage of being in the first batch of securities traders conducting pilot mutual fund investment advisory business to build and improve the asset allocation research system, transaction risk control system and supporting marketing service promotion system, amongst others. During the Reporting Period, the mutual fund investment advisory business had 95,000 contracted clients with the size of assets of over RMB 3 billion, ranking top among the industry. SWS MU and Fullgoal Fund had outstanding performance in the mutual fund business, while the Company's subsidiaries Hongyuan Huifu and Shenyin & Wanguo Investment promoted the transformation of the private fund management business from the perspective of comprehensive financial services.
The capital market saw unprecedented improvement during the Reporting Period, and the pivotal role of "a slight move in one part may affect the situation as a whole" became increasingly obvious. With the continuous improvement in the establishment of laws and rules, and the acceleration of multiple reforms in the capital market, the proportion of direct financing has been further increased and the investor structure continuously optimized, ushering in huge opportunities for development in the securities industry. Looking ahead, based on the principle of making progress while maintaining stability, Shenwan Hongyuan will adhere to the vision of "Simple Finance, Fulfillment of Dreams", unswervingly promote business transformation, strive to improve institutional investment capabilities, and proactively build a high-quality development system integrating the investment business and securities business, to create greater value for shareholders, customers and investors.
About Shenwan Hongyuan Group
Shenwan Hongyuan Group Co., Ltd (Stock code: 6806.HK; 000166.SZ) is a leading investment holding group focused on the securities business in China and committed to providing diverse financial products and services to its clients. The Group has established a longstanding leading position across multiple business lines in the PRC securities industry with quality growth, including enterprise finance, personal finance, institutional services and trading, and investment management. In January 2015, Shenwan Hongyuan emerged from the merger between Shenyin & Wanguo Securities and Hong Yuan Securities which was the largest merger in the PRC securities industry at that time and listed on Shenzhen Stock Exchange. In April 2019, Shewan Hongyuan issued H-shares and was successfully listed on the Hong Kong Stock Exchange.
