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HTSC Announced 2017 Annual Results
HTSC Reported Full-year Net Profit of RMB 9.28 Billion with Accelerated Transformation of Wealth Management Business
HONG KONG, Mar 29, 2018 - (ACN Newswire) - On March 29, 2018, Huatai Securities Co., Ltd (hereinafter to be referred to as "HTSC" or the "Company") released its annual report for 2017, with total operating revenue and other income reaching RMB31.32 billion and the profit for the year attributable to the shareholders of the Company amounting to RMB9.28 billion, up by 27.17% and 47.94 % year-on-year respectively. With various major business indicators ranking among industry top and revenue structure continuously optimized, HTSC is better positioned in the market with increasing influence.
Unparalleled Proportion of Financial Advisors among Peers
As the commission rate for stock and fund trading of security firms continued its downward trend in 2017, the traditional profit model was on the wane. In response to the policy and market changes, HTSC actively expanded its customer base and assets under administration, and established a wealth management business model with integrated financial services at its core.
According to WIND, the Company's stock and fund trading volume during the reporting period totaled RMB19.01 trillion, with a market share of 7.86%, ranking the first in the industry for four consecutive years. Its accumulated number of customers reached over 12 million, with client asset exceeding RMB2.7 trillion.
HTSC made great efforts in building its investment advisor team. According to statistics from Securities Association of China, by the end of the reporting period, the number of investment advisors accounted for 25.43% of the Company's securities practitioners, a ratio that leads the industry.
HTSC's wealth management APP "ZhangLe Fortune Path" continued to lead the industry with cumulative downloads of over 37.42 million times. According to observable data, its average monthly active users were over 5.84 million in 2017, ranking the first among the APPs of security firms. During the reporting period, 1.11 million or 98.49% new accounts were opened via the mobile terminal of "ZhangLe Fortune Path".
The Company's financial product management system was improved, with the value and number of financial products distributed steadily rising, while capital-based intermediary business continued to develop with optimized customer base and enhanced risk control. By the end of 2017, the balance of margin financing and securities lending of HTSC stood at RMB58.81 billion, taking up 5.73% of market and ranking the second in the industry. The balance of stock-pledged repurchase was 90.88 billion, ranking third in the industry.
Landmark Investment Banking Deals Leading the Market
Over the past few years, the in-depth development of capital market and the continuous increase in direct financing has offered security firms with strategic opportunities for their institutional business development.
During the reporting period, HTSC improved its customer-centered integrated investment banking system, with M&A transaction amount leading its peers. The M&A and restructuring transaction volume approved by the reorganization committee reported RMB97.3 billion in 2017, ranking first in the industry. Huatai United Securities assisted Qihoo 360 Technology in completing its US stock privatization, which was the largest restructuring and listing project in terms of transaction volume (initialdisclosure) in 2017.
The brand influence of equity underwriting business has been elevated by focusing on key industries and areas and deepening relations with premium customers. According to WIND, the Company's lead equity underwriting amount (including initial public offering, follow-on offering, rights issue, preferred shares, convertible bonds and exchangeable bonds) reached RMB110.57 billion, ranking fifth in the industry.
For bond underwriting business, the Company prioritized competitive product offerings and innovation-led strategy. According to WIND, HTSC's lead bond underwriting projects amounted RMB201.6 billion in volume, among which the number of exchangeable bond underwriting projects ranked first in the industry for three consecutive years.
Assets under Active Management Ranking among the Industry Top
With the introduction of new asset management rules, asset management business started the dechannelizing process. Huatai Asset Management focused on the core of asset management to provide diversified financial products to fulfill various investment and financing needs of customers.
According to the statistics from Asset Management Association of China, by the end of the fourth quarter of 2017, the average monthly AUM of the Company was RMB 788.56 billion, ranking second place in the industry. The average monthly scale of assets under active management (AUAM) was RMB240.19 billion, ranking fourth in the industry.
During the reporting period, Huatai Asset Management issued three public fund, namely Huatai Zijin Tiantianjin Monetary ETF, Lingqianbao and Honglidibo, thereby gradually establishing a product line that covered customers with low, medium and high risk exposures with the AUM amounting to RMB 5.219 billion.
International Business Contributed to 12% of HTSC's Revenue
The two-way opening up of capital markets has accelerated the international development of security firms. During the reporting period, Huatai Financial Holdings (Hong Kong) Limited continued to drive its international business development. As shown in its annual report, international business contributed to 12.03% of HTSC's total revenue, up by 10.57 percentage points year-on-year.
AssetMark, the turnkey asset management platform (TAMP), acquired by HTSC in 2016 has scored the best performance ever in 2017. Total AUM under AssetMark platform reported USD42.4 billion in 2017, up by approximately 31% as compared with year-end 2016. During the reporting period, the platform served 7100 independent investment advisers and over 196, 000 end investor accounts, and over 900 independent investment advisers entered into cooperative agreements with AssetMark.
By the end of the third quarter of 2017, the market share of AssetMark in TAMP industry was 9.5%, ranking the third in the industry. Riding on the acquisition of AssetMark, HTSC facilitated the improvement of its investment advisor platform and service efficiency.
In terms of IT development, the Company vigorously promoted the transformation from technology-backed service to technology-driven business development. During the reporting period, the Company's IT staff accounted for 6.61% of the total, with various advanced business systems and service platforms launched including customized transaction service platform (MATIC) and market information product (INSIGHT) etc. The Company is also a frontrunner in terms of its IT investment, IT expert team and technology innovation capabilities.
Sectors: Daily Finance, Daily News
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