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HTSC Announces 2018 Annual Results
Achieving Differentiated Core Competitiveness through Strategic Transformation and Technology Empowerment
HONG KONG, Mar 30, 2019 - (ACN Newswire) - Huatai Securities Company Limited ("HTSC" or the "Group") (stock code: 6886.HK) is pleased to announce its annual results for 2018, with the total revenue and other gains reaching RMB24.51 billion. The net profit deducting non-recurring profit and loss attributable to the shareholders of the parent company amounted to RMB5.01 billion, representing a decrease of 17.01% year-on-year.
In 2018, HTSC steadily strengthened its strategic transformation and vigorously promoted its market-oriented reform. While continuing to outperform peers in various businesses, the Group made enormous efforts to enhance the core competitiveness of platform-based, fully-systematized and digital-driven operations, boost the connectivity and collaboration among international businesses, and achieve leading positions in multiple business indicators.
Mobile App Users Reaching 7 Million MAU
Under the increasingly uncertain market environment in 2018, HTSC remained steadfast in building its wealth management service system to facilitate the transformation of a transaction-oriented service into an integrated financial service. During the year, the Group had nearly 13 million customers with over RMB2.46 trillion of account balances, maintaining a leading role in the industry regarding stock and fund trading volumes.
The Group is committed to building an online-to-offline integrated customer services operating model. "ZhangLe Fortune Path" APP, the wealth management online platform of the Group, reached over 45.70 million cumulative downloads thanks to the intelligent systems and smart services it provides. According to statistics from Analysys, "ZhangLe Fortune Path" has continued to rank first among all the APPs of securities firms in number of monthly active users, exceeding 7.13 million as of the end of the reporting period. With respect to offline capabilities, the Group provided asset allocation services to customers through more than 2,000 investment consultants working on 241 branches nationwide. According to statistics from the Securities Association of China, the proportion of investment consultants in the parent company accounted for 28.98% of its total staff, continuously ranking ahead of its peers.
HTSC has been steadily moving forward to establish a wealth management development model focusing on integrated financial services. To better achieve this goal, the Group is proactively exploring branch digitalization and upgrading, innovating intelligent marketing service platform, promoting the integration of online and offline resources with full-service capabilities as well as improving internal and external financial product lines.
At the same time, HTSC continued to take full advantage of AssetMark's management and operation experiences in product, service, process, and technology platforms, facilitating the transformation of the entire Group's wealth management business. With this cutting-edge synergy, the Group managed to identify customer needs, recommend investment solutions, practice precision marketing, and provide comprehensive IT support.
Leading M&A Franchise
Backed by large investment banking integrated operation system and whole business chain model, HTSC's investment banking business secured its growth against shrinking market financing scale in 2018. The amount of M&A transactions of the Group approved by the China Securities Regulatory Commission was RMB110.43 billion, ranking first in the industry, while the equity lead underwriting amount was RMB138.47 billion, ranking third in the industry.
Through efficient communications with high-quality corporate customers, Huatai United Securities, an investment bank subsidiary of HTSC, developed a deep insight into a wide range of financial needs and competently delivered multiple market benchmark projects. As the sole sponsor, Huatai United Securities helped WuXi AppTec successfully list on A and H shares with domestic and overseas team cooperation. As the sole sponsor and a joint lead underwriter, it also facilitated Mindray, a leading medical device company, to successfully accomplish A share listing.
In terms of research and institutional sales, HTSC made increasing efforts in strengthening customer development, research service capabilities, and the integration of research businesses in mainland China and Hong Kong. HTSC won second place for the 2018 Institutional Investor's All-China Research Team Award. Meanwhile, the Group consolidated distinguished business resources, enhanced trading and product creation capabilities, and improved customer service system to the next level for banks, funds, insurance and overseas institutions.
AUM Size Maintaining its Industry Leading Position
With new regulations on asset management and follow-up regulatory rules, the Group's asset management business continued to facilitate the dechannelization process, expedite the popularity of net-asset-value typed products, and eliminate regulatory arbitrage. The Group has effectively transformed itself into an active management direction, fulfilling diverse needs from retail, high-net-worth and institutional customers by consistently enriching differentiated financial products and further opening up opportunities for asset creation, asset pricing, and productization.
According to statistics from the Asset Management Association of China, the average monthly AUM of the Group was RMB812.42 billion, ranking third place in the industry. Meanwhile, its average privately-funded active AUM was RMB226.47 billion, ranking fourth place in the industry. The Group's fund companies continued to enhance their investment management capabilities. During the reporting period, China Southern Asset Management's AUM totalled RMB829.33 billion, while Huatai-PineBridge totalled RMB107.56 billion.
International Business Revenue Continuing to Rise
In 2018, the Group accelerated its development of cross-border platforms and implementation of international strategies through cross-border connectivity, resource sharing and strategic synergy among mainland China, Hong Kong and the United States. Huatai International completed its full integration of Huatai Financial Holdings (Hong Kong) into the full business chain system of the Group, officially becoming the Group's holding platform for entire international business. By the end of the reporting period, the international business performance accounted for 12.66% of the total revenue, up by 4.61% year-on-year.
During 2018, Huatai Financial Holdings (Hong Kong) maintained a well-balanced development in its diverse business mix. The paid-in capital was HKD8.80 billion, topping the industry in Hong Kong. Huatai Financial Holdings (Hong Kong) achieved outstanding performance with completion of 8 IPO projects, 1 allotment project and 11 bond issue projects. The total trading and issuance volume of 20 underwriting projects reached approximately HKD43.10 billion. In addition, it accomplished 2 financial advisory projects and 14 structured investments and financing projects. Huatai Financial Holdings (Hong Kong) was awarded "Triple A National Awards - The Best Corporate and Institutional Advisors (Broker) in Hong Kong" by The Asset Magazine.
In 2016, the Group completed the acquisition of AssetMark, a turn-key asset management platform (TAMP). By the end of the reporting period, the total AUM of the AssetMark platform exceeded USD44.86 billion, reaching a record high. The AssetMark platform served an aggregate of more than 7,500 independent investment consultants and 218,400 terminal accounts. According to Cerulli Associates and other public information, as of the end of the third quarter of 2018, AssetMark gained a market share of 10.20%, ranking third place in the US TAMP market.
In terms of information technology, the Group has been actively positioning itself from tech-support services to tech-driven business. Investment in information technology reached RMB1.08 billion, with the number of R&D personnel expanding to 740. The Group's invested resources and technological innovation capabilities continuously pioneered the industry. The Group is planning to launch and upgrade a series of digital products and platforms to create various brand-new intelligent application scenarios. It is firmly dedicated to moving towards the direction of digital transformation and to building a digital financial services ecosystem with customers.
As one of the participants of the pilot mixed-ownership reform, the Group introduced strategic investors such as Alibaba and Suning while completing the non-public offering of A shares in order to optimize the governance structure. The Group will continue to learn from advanced international experiences, accelerate the implementation of professional manager system and optimize performance incentive system to further stimulate market vitality.
About HTSC
HTSC is a leading integrated securities group in China, with a substantial customer base, a cutting-edge e-Platform and a highly collaborative full-service business model.
HTSC was established in May 1991 and was listed at Shanghai Stock Exchange with the stock code of 601688 on 26 February 2010. Over more than two decades of its operating history, the Group achieved rapid growth by successfully capitalizing on the transformation and innovation opportunities of China's capital market and securities industry. Its major financial indicators and business indicators are among the forefront of the domestic securities industry.
Currently, HTSC has controlling interests in 3 subsidiaries including Huatai United Securities Co., Ltd., Huatai Futures Co.,Ltd., and Jiangsu Equity Exchange Co., Ltd. It has 4 wholly owned subsidiaries including Huatai Financial Holdings (Hong Kong) Limited, Huatai Zijin Investment Co., Ltd., Huatai Innovation Investment Co., Ltd., and Huatai Securities (Shanghai) Asset Management Co., Ltd. It also has minority interests in China Southern Asset Management Co., Ltd., Huatai-PineBridge Fund Management Co., Ltd., Bank of Jiangsu Co., Ltd., GP Capital Co., Ltd., and E-Capital Transfer Co., Ltd.
Sectors: Daily Finance, Daily News
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