Seized market opportunities
Businesses developed steadily
HONG KONG, Oct. 29, 2022 /PRNewswire/ -- Shenwan Hongyuan Group Co., Ltd. ("Shenwan Hongyuan Group", "Shenwan Hongyuan" or the "Company") (stock code: 6806.HK; 000166.SZ) announced its results for the nine months ended September 30, 2022 (the "Reporting Period").
During the first nine months of the year, total revenue and other income of the Company was RMB18.057 billion. Net profit attributable to shareholders of the Company reached RMB4.279 billion, basic earnings per share was RMB0.17, and return on equity was 4.43%.
Key highlights of the first nine months are as set out below:
Proactively served the national strategy, with the investment bank business continuously improved. During the Reporting Period, the equity financing business and its industry ranking were significantly improved. The Company adopted a series of measures to serve national strategies, including the expansion of initiating strategic projects and specialty products, assistance for the financing on hi-tech and environmentally friendly enterprises, and implementation of rural revitalization and inclusive finance policies. The Company completed 22 IPO and refinancing projects, with the financing scale exceeding RMB26 billion. Forty-five projects of private placement on the NEEQ (National Equities Exchange and Quotations) were completed, with RMB1.1 billion in proceeds. The Company also completed over 300 equity underwriting projects, with the scale exceeding RMB180 billion.
Carried out investment and transaction business in orderly manner to seize market opportunities. During the Reporting Period, the Company seized the opportunity of portfolio trading amid market volatility, steadily carried out fixed income investment, insisted on risk control and structure adjustment, and steadily promoted the transition of investment style. The Company also continuously improved its capabilities of pricing and hedge transaction by empowering investment research and financial technologies, and continuously provided clients with differentiated products. At the same time, the Company strengthened the construction of integrated systems both domestically and overseas and scaled up efforts in return swap and cross-border business. The Company was awarded "Securities House of the Year" at AsiaRisk 2022 for its advantages in investment banking and leading derivatives business as well as advanced risk management capabilities. Meanwhile, the Company actively promoted business innovations and received the qualification of market making on the STAR market, and also completed the pilot transaction of the Shanghai Stock Exchange's portfolio credit protection contract (CDX) as the first batch of participating institutions. The Company also attached great importance to the REITs business and served local economic development with the number of REITs market-making ranking first in the industry.
While professionally revolutionizing asset management, the Company adhered to the wealth management concept. The Company's asset management segment continued to transform through professional reform and active management capability enhancement. It constructed an investment research system in three aspects: team building, management mechanism optimization, investment system and brand building. The Company aimed to provide clients with suitable investment strategies and products based on its comprehensive advantages and realized the value preservation and appreciation of clients' assets. In terms of wealth management, the Company further strengthened its basic client assets, enhanced financial technology empowerment, actively transformed to a buyer-side investment model, and continued to build a distinctive Shenwan Hongyuan wealth management brand.
Adhered to the concept of sustainable development and actively practiced social responsibility. In terms of environmental governance, the Company has been implementing the concept of sustainable development around the national strategic goal of "carbon peak and carbon neutrality", incorporating ESG performance into the decision-making process of its own investment and expanding the positive impact on the environment through financial investment transactions. In terms of social responsibility, the Company attaches great importance to assistance and rural revitalization and established the "Shenwan Hongyuan Assistance Program" that can be used for reference, replication and promotion during the assistance and practice work. In July 2022, the Company was awarded the "Best Practice Case of Rural Revitalization of Listed Companies" by the China Association for Public Companies. In terms of corporate governance, Shenwan Hongyuan strengthened the formation of the Board of Directors, continuously benchmarked the best practices, and improved governance efficiency and the quality of information disclosure. In the information disclosure assessment work of the Shenzhen Stock Exchange, Shenwan Hongyuan received an "A" class evaluation for seven consecutive years.
In 2022, uncertainties such as the Covid-19 pandemic, geopolitics and economic development disruption have brought challenges to the capital market and the brokerage industry, however, the China Securities Regulatory Commission issued a series of policies to maintain stable operation of the capital market. The Company will spare no effort to seek progress while maintaining stability and practicing the responsibility of state-owned financial enterprises. It will continue to strengthen the strategic coordination of "investment + investment bank" to help to stabilize the market and the economy so as to serve and ensure "Stability on Six Fronts" and "Security in Six Areas".
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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.
