Zheshang Securities Visual China data map
In 2023, Zheshang Securities Co., Ltd. (hereinafter referred to as "Zheshang Securities", 601878) will achieve a double increase in revenue and profit.
On the evening of April 10, Zheshang Securities announced its 2023 annual report. During the reporting period, the operating income of Zheshang Securities was 17.638 billion yuan, a year-on-year increase of 4.90%, the total profit was 2.202 billion yuan, a year-on-year increase of 4.96%, and the net profit attributable to shareholders of listed companies was 1.754 billion yuan, a year-on-year increase of 6.01%.
In terms of distribution plan, Zheshang Securities plans to distribute a cash dividend of 1.40 yuan (tax included) to all shareholders for every 10 shares, with a total cash dividend of 538 million yuan (tax included), accounting for 30.65% of the net profit attributable to shareholders of listed companies in the consolidated statements in 2023.
"In 2023, in the context of intensified volatility in the capital market, the overall operating pressure of the securities industry has increased. At the same time, the reform of the capital market is accelerating, the positioning of the securities industry is also undergoing reshaping, under the requirements of financial services for the real economy, the securities industry fee reduction and profit concession continue to deepen, the company in the complex market environment, overcome multiple pressures, to achieve growth against the market. Zheshang Securities said in its annual report.
Zheshang Securities mainly has eight major sectors: brokerage business, wealth management business, credit business, investment banking business, asset management business, investment business, futures business and research business. Among them, brokerage business, investment banking business, investment business, asset management business, and futures business are the main businesses, and in 2023, except for the decline in brokerage business, other main businesses have achieved positive growth.
In terms of brokerage business, Zheshang Securities will achieve a revenue of 3.512 billion yuan in 2023, a year-on-year decrease of 4.3%, and a gross profit margin of 48.7%, a year-on-year decrease of 8.22 percentage points. Zheshang Securities said that in 2023, affected by the decline in the securities market index, trading volume and commission rates, the company's brokerage business will face downward pressure on operation, however, Zheshang Securities said that the scale of brokerage business and industry competitiveness have been significantly improved, and the statistics of the association show that the industry share of net income from agency trading securities business in 2023 will be 1.24%, an increase of 2bp compared with 2022, and it has achieved growth for 4 consecutive years.
In terms of investment banking business, Zheshang Securities will achieve revenue of 856 million yuan in 2023, an increase of 12.54% year-on-year, but the gross profit margin will decrease by 8.01 percentage points to 39.73%. In 2023, Zheshang Securities will complete a total of 320 equity and bond lead underwriting projects, with a total financing scale of 148.3 billion yuan. In terms of equity, a total of 11 equity lead underwriting projects were completed throughout the year, an increase of 1 over the previous year, and the total underwriting scale was 7.65 billion yuan, a slight decrease from 8.059 billion yuan in the previous year. In terms of bonds, a total of 309 bond lead underwriting projects were completed throughout the year, compared with 182 in the previous year, with a total underwriting scale of 140.68 billion yuan, an increase of 73% over the scale of 81.286 billion yuan in the previous year.
In terms of asset management business, Zheshang Securities achieved a revenue of 485 million yuan in 2023, an increase of 16.68% year-on-year, and a gross profit margin of 5.23 percentage points to 22.97%. As of the end of 2023, the existing assets under management were 91.1 billion yuan, slightly lower than the previous year's 91.7 billion yuan. In 2023, the total sales of public funds and various collective products will be 79.789 billion yuan, of which 158 products will be launched for the first time, with a total issuance scale of 7.471 billion yuan, and 203 products will be continuously marketed, with a total continuous marketing scale of 72.318 billion yuan.
In terms of investment business, Zheshang Securities will achieve 845 million yuan in 2023, a year-on-year increase of 225.94%, and a gross profit margin of 66.72%, an increase of 20.73 percentage points year-on-year. Zheshang Securities conducts investment business through its self-operated branch of Shanghai Securities and two subsidiaries, Zheshang Investment and Zheshang Capital. In 2023, Shanghai Securities Self-operated Branch adhered to multi-asset and multi-strategy investment, implemented large-scale asset allocation, and achieved a significant year-on-year increase in investment income, and continued to grow steadily in sales and trading business.
In terms of futures business, Zheshang Securities achieved a revenue of 12.623 billion yuan in 2023, and the gross profit margin decreased slightly by 0.07 percentage points to 2.67%. By the end of 2023, Zheshang Securities had completed a total of 150,116,200 futures agency transactions, a year-on-year increase of 55.99%, an average daily customer equity of 36.146 billion yuan in 2023, a year-on-year increase of 47.22%, and an asset management business of 2.818 billion yuan at the end of the period.
In terms of employee income, in 2023, the total pre-tax remuneration received by directors, supervisors and senior managers of Zheshang Securities from the company will be 17.8041 million yuan, an increase from 16.0104 million yuan in 2022. Among them, Wu Chenggen, chairman of Zheshang Securities, will receive a total pre-tax remuneration of 2.145 million yuan in 2023, compared with 2.1682 million yuan in the previous year.