CITIC Securities (600030.SH) released the first annual report after the consolidation of Guangzhou Securities. The data shows that the company’s operating income in 2020 was 54.383 billion yuan, a year-on-year increase of 26.06%; the net profit attributable to shareholders of the parent company was 14.902 billion yuan, a year-on-year increase of 21.86%; the net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses was 148.996 Billion yuan, a year-on-year increase of 22.67%; basic earnings per share were 1.16 yuan.
The current CITIC Securities South China, formerly known as Guangzhou Securities, has realized operating income of RMB 951 million and net profit of RMB 202 million from the time it was included in the scope of the company’s financial statements to the end of the reporting period. It currently has 67 securities branches, 1,069 employees, and brokers. 2 people. At the same time, the operating income contributed by the Guangdong region in 2020 was 753 million yuan, an increase of 166.43% year-on-year, ranking fifth in the country.
It is worth mentioning that the financial report shows that as of the end of 2020, CITIC Securities’ net assets were 151.705 billion yuan, an increase of 13.59% year-on-year; total assets reached 1.052.962 billion yuan, an increase of 33% year-on-year, making it the first domestic company with assets exceeding one trillion yuan. Brokerage.
In terms of segmented business, in 2020, CITIC Securities’ brokerage business achieved operating income of 14.398 billion yuan, a year-on-year increase of 50.69%; asset management business achieved operating income of 9.561 billion yuan, a year-on-year increase of 29.64%; securities investment business achieved operating income of 13.406 billion yuan, a year-on-year increase An increase of 9.52%; the securities underwriting business achieved operating income of 6.487 billion yuan, a year-on-year increase of 50.59%; other businesses achieved operating income of 10.531 billion yuan, a year-on-year increase of 9%.
According to the financial report, in 2020, the company completed 158 A-share lead underwriting projects, with a lead underwriting amount of 313.599 billion yuan (including asset-based private placement), an increase of 12.08% year-on-year, and a market share of 18.94%, ranking first in the market. Among them, there were 39 IPO lead underwriting projects with a lead underwriting amount of 43.585 billion yuan; 119 refinancing lead underwriting projects with a lead underwriting amount of 270.014 billion yuan.
In addition, as of the end of the reporting period, the total asset management scale of CITIC Securities was 1,364.401 billion yuan, including collective asset management plans, single asset management plans and special asset management plans. The scales were respectively 260.124 billion yuan, 1106.168 billion yuan and 109 million yuan, of which active management With a scale of 1,052.645 billion yuan, the company’s private equity asset management business (excluding pension business, publicly offered collective products and asset securitization products) has a market share of approximately 13.5% under the new asset management regulations, ranking first in the industry.
In this regard, Huajin Securities analyst Cui Xiaoyan pointed out that in 2020, under the background of loose liquidity, the market prosperity will increase significantly, which will bring about an increase in trading activity, and all business lines of securities firms will benefit.
It is understood that during the reporting period, CITIC Securities’ new borrowings exceeded 20% of its net assets at the end of the previous year, and the leverage ratio excluding customer margin increased from 4.07 in 2019 to 4.59. Driven by the increase in leverage, the business of the three high ROA business lines of overlay brokerage, investment banking, and asset management grew rapidly. The company’s overall annual ROE reached 8.43%, an increase of 0.67% year-on-year, which was significantly higher than the industry average of 6.89%.
But the opposite of the positive performance is also worth paying attention to the company’s provision for impairment losses throughout the year. Financial report data shows that CITIC Securities’ provision for impairment losses in 2020 reached 7.076 billion yuan, an increase of 173.15% year-on-year, of which credit impairment losses amounted to 6.581 billion yuan, a surge of 247.89% year-on-year, which was higher than the sum of the previous three years.
The impairment announcement issued at the same time as the annual report also showed that under the influence of the credit impairment loss accrued in the consolidated statement for 2020, the company reduced its total profit by RMB 6.581 billion during the reporting period and reduced its net profit by RMB 4.932 billion. Credit impairment losses of RMB 1.553 billion were accrued in the fourth quarter, reducing the total profit for the fourth quarter of 2020 by RMB 1.553 billion, and reducing the net profit for the fourth quarter of 2020 by RMB 1.160 billion.