On April 12, Capital Securities announced that due to the adjustment of work arrangements, Chairman Su Zhaohui resigned, and the former general manager Bi Jinsong took over the position. At the same time, Zhang Tao from Dongxing Securities was appointed as the general manager.
On the same day, Capital Securities released its 2023 annual report: revenue of 1.927 billion yuan, a year-on-year increase of 21.33%, and net profit attributable to the parent company of 701 million yuan, a year-on-year increase of 26.33%. In terms of business, the revenue of the previously outstanding asset management business has declined, but the business scale and industry ranking have made steady progress, and the investment business has almost supported half of the revenue, with a total revenue of 900 million yuan in 2023.
In terms of salary, the average salary per capita increased slightly to 418,100 yuan. The vast majority of directors, supervisors and senior management experienced a decline in annual salaries.
The chairman and general manager both changed
The management of Capital Securities is relatively stable, with few changes in the past two years, and many directors, supervisors and senior executives have (were) served in the system of its controlling shareholder, Capital Group. Su Zhaohui, the outgoing chairman, joined Beijing Capital Group as deputy general manager in 2011 and became chairman of Beijing Capital Securities in September 2021, and has been the chairman of Beijing Capital Securities for more than two years.
According to his resume, Su Zhaohui's career began as a reporter, he was the head of the editorial department of China Gold News, and later served as a deputy director-level researcher in the Office of the Gold Administration of the State Economic and Trade Commission, and then joined China Gold Group, successively serving as director of the office (Party Committee Office) and general counsel.
Su Zhaohui is 55 years old this year, and his resignation is due to work arrangements. According to the official website, he is still a member of the Standing Committee of the Party Committee and deputy general manager of Capital Group.
Capital Securities also thanked Su Zhaohui for his contributions during his tenure, saying that "during his tenure as chairman of the company, he fulfilled his duties, worked diligently and responsibly, actively promoted the company's standardized operation, continuously improved the level of corporate governance, led the company's management to study and formulate the company's '14th Five-Year Plan' development plan and resolutely implemented it, and continued to promote the company's initial public offering and listing, opening a new chapter in the company's high-quality development."
Succeeded by Su Zhaohui is Bi Jinsong, who has been the general manager of Capital Securities for 13 years. Bi Jinsong served as the chief staff member of the Financial Management Department of the People's Bank of China in the early days, and later worked in securities companies, serving as the general manager and party secretary of Guotai Junan Securities Beijing Branch, the chairman and president of Zhongfu Securities Co., Ltd., and the vice president of Minsheng Securities Co., Ltd.
Correspondingly, the position of general manager of Capital Securities has also changed, and Zhang Tao has taken over. Zhang Tao is an external fresh blood introduced, and his past experience is mainly focused on investment banking, which is a relatively weak business of Capital Securities.
According to the biographical information, Zhang Tao has worked in Huatai Securities for 13 years, serving as the secretary to the president of the president office of Huatai Securities, the business manager of the first investment bank, the deputy director of the Fuzhou office, the deputy general manager (presiding) of the investment banking business department of the Shanghai headquarters, the deputy general manager of the Shenzhen headquarters and the general manager of the business department of Caitian Road in Shenzhen, the secretary of the board of directors and the assistant to the president and the director of the office of the board of directors, vice president, and the chairman of Huatai Futures Co., Ltd. After joining Dongxing Securities in 2018, Zhang Tao successively served as the financial director of Dongxing Securities, the chairman of Dongxing Investment, and the general manager since February 2019.
The revenue of the asset management business declined, and the investment business continued to strengthen
According to the industry data currently available to the China Securities Association, in 2017, Capital Securities' revenue and net profit ranked 71st and 57th respectively in the industry, and in 2021, it rose to 57th and 43rd. In 2022, the China Securities Association will no longer disclose industry data. According to Wind data, in 2022, Capital Securities ranked 47th in revenue and 31st in net profit.
According to the 2023 annual report disclosed on the same day as the personnel changes, during the reporting period, Capital Securities' revenue and net profit attributable to the parent company increased by more than double digits year-on-year. Among the four major business segments, the investment business almost supported the "half" of Capital Securities' revenue, the revenue of asset management business and investment banking business both fell by nearly 20% year-on-year, and the revenue of retail and wealth management business fell by 9.24%.
Specifically, in 2023, the asset management business of Capital Securities will achieve an income of 558.9416 million yuan, a year-on-year decrease of 19.96%, and the proportion of contribution to the overall income will also decrease from 43.98% in the previous year to 29.01%. In this regard, Capital Securities said that it was mainly due to the decline in performance remuneration income of asset management business.
However, according to the Chinese reporter of the brokerage, although the revenue has declined to a certain extent, as the core characteristic business of Capital Securities, Capital Securities will focus on increasing its development support in 2023. The asset management business focuses on investment research and analysis, product design, channel expansion and other aspects, and the business scale and industry ranking are stable and improving.
The investment business replaced the asset management business and became the main force driving the overall performance. In 2023, the investment business will achieve revenue of 900 million yuan, accounting for 46.74% of the operating income in 2023, an increase of 94.03% year-on-year. In terms of separation, the fixed income investment trading business achieved revenue of 855.2738 million yuan, a year-on-year increase of 20.76%, and the income of equity securities investment business and alternative investment business turned losses into profits.
Capital Securities' investment banking business, retail and wealth management business revenue decreased by 19.64% and 9.24% respectively. Among them, the decline in retail and wealth management business was mainly due to the decline in interest income from margin trading and stock pledged repurchase business.
Salary per capita increased slightly
In terms of profit distribution, Capital Securities will continue to pay a high proportion of dividends this year, and plans to distribute a cash dividend of 1 yuan (tax included) for every 10 shares, with a total cash dividend of 273 million yuan (tax included), accounting for 38.99% of the company's net profit attributable to the parent company in the consolidated statement for 2023. In the previous year, Capital Securities paid a total cash dividend of 506 million yuan (including tax), accounting for 91.36% of the net profit attributable to the parent company in the consolidated statement for 2022.
In terms of salary, the average salary of Capital Securities increased slightly. In 2023, the per capita salary (per capita salary = increase in employee remuneration payable in the current period / total number of employees) will be 418,100 yuan. In the same period last year, the average salary per capita was 392,200 yuan.
Capital Securities' 2023 annual report mentions that employee compensation is composed of post salary, performance pay and benefits. In accordance with regulatory requirements and drawing on common practices in the industry, the company has established a deferred mechanism and a recourse clawback mechanism for performance wages, and at the same time established a salary guarantee mechanism for compliance, risk control and internal control personnel.
In terms of management compensation, excluding the two who served for less than 2 years and left office, only the chief information officer Fu Jinsong increased his salary, and the annual salaries of other senior executives declined slightly, and the total amount did not exceed 2.5 million yuan. Fu Jinsong's salary in 2023 will be 1.9321 million yuan, an increase of 116,200 yuan year-on-year. Director Cheng Jialin is the only one whose annual salary has decreased by more than 100,000 yuan year-on-year, and his salary in 2023 will be 2.1157 million yuan. The highest annual salary is General Manager Bi Jinsong, with an annual salary of 2.4209 million yuan in 2023, a year-on-year decrease of 66,900 yuan.
However, the above-mentioned annual salary is pre-tax remuneration, which includes the remuneration accrued and paid for the positions of directors, supervisors and senior executives during the reporting period and the remuneration paid by the assessment of the annual performance salary for 2021 in the reporting period, but does not include deferred remuneration. For example, in 2023, Bi Jinsong will also receive 2.0448 million yuan in deferred salary, Cheng Jialin will receive 705,200 yuan, and Fu Jinsong will receive 1.1264 million yuan.
Talking about the way to play in 2024, Capital Securities said that it will focus on business development, consolidate business advantages, accelerate transformation and breakthroughs, build differentiated and characteristic core competitiveness, and promote the company's operation and management to a new level.
Source: Brokerage China
Editor-in-charge: Li Dan
Proofreader: Liu Rongzhi
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The general manager took over as chairman
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