Revenue and net profit attributable to the parent company both increased丨Interpretation of Caitong Securities' 2023 annual report

Both revenue and net profit achieved positive growth, and the growth rate exceeded 30%. On the evening of April 25, Caitong Securities disclosed a beautiful 2023 annual report.

According to the data, in 2023, Caitong Securities achieved operating income of 6.517 billion yuan, a year-on-year increase of 35.03%, net profit attributable to shareholders of listed companies of 2.252 billion yuan, and weighted average return on equity of 6.67%, an increase of 1.71 percentage points over 2022.

Flush iFinD shows that as of April 25, among the 40 listed securities companies that have disclosed annual report data (including holding brokerage companies, the same below), 15 brokerages have a net profit attributable to the parent of more than 2 billion yuan, of which only 6 have positive growth in revenue and net profit, which is Shenwan Hongyuan (000166. SZ), Caitong Securities, Huatai Securities (601688. SH), China Merchants Securities (600999. SH), Guosen Securities (002736. SZ), China Galaxy (601881. SH), among the remaining 9, 6 have negative growth in revenue and net profit, the other 1 "increase revenue without increasing profits", and 2 "increase profits without increasing income".

Caitong Securities ranked among them with a net profit of 2.252 billion yuan attributable to the parent company, and ranked second among the 15 brokerages with a net profit growth rate of 48.43% attributable to the parent company. Looking carefully at its annual report, there is an obvious feeling that in 2023, Caitong Securities will drive the three major business sectors of investment banking, investment and wealth to further integrate and optimize the company's advantageous resources.

Investment banking business: fine and deep cultivation and re-development

In 2023, due to the slowdown in IPOs, the investment banking business of the securities industry will be significantly "blocked". According to the statistics of the listing date, there will be a total of 818 full-caliber equity financing events in the A-share market in 2023, a year-on-year decrease of nearly 17% compared with 2022, and a total amount of 1.13 trillion yuan, a year-on-year decrease of 32.80%.

In such an environment, Caitong Securities regards building a first-class modern investment bank as the "No. 1 project", based on Zhejiang's geographical advantages and the company's resource endowment, to do fine and fine, invest early and invest in new and small, and the investment banking business achieved an income of 763 million yuan, a year-on-year increase of 77.04%, and a bumper harvest in equity and bond business. Among them, in terms of equity, 6 IPO projects were successfully sponsored and listed, of which 5 were enterprises in Zhejiang Province, and the number and ranking of IPO companies sponsored in Zhejiang Province reached a new high, ranking first in the provincial market, and the number of IPO counseling entrepreneurs in the country was 33, of which 26 were IPO counseling entrepreneurs in Zhejiang Province, ranking first in the province. In terms of bonds, the underwriting scale of full-caliber bonds reached 123.379 billion yuan, a historic breakthrough of 100 billion yuan, a year-on-year increase of 79.17%.

This year, Caitong Securities' role as "Zhejiang businessmen and Zhejiang enterprises' own brokerage" has also become more and more full. As of the end of 2023, Caitong Securities has established strategic cooperation with 10 prefectures and cities and 51 county and district governments in Zhejiang Province, and carried out a series of activities to enter Zhejiang Chamber of Commerce and Zhejiang enterprises, covering more than 3,000 Zhejiang merchants and enterprises.

Investment business: Precise and effective creation of characteristics

At present, strategic emerging industries and new quality productivity continue to become hot spots for equity investment.

Caitong Securities conducts alternative investment business through its wholly-owned subsidiary, Caitong Innovation. Focusing on the "315" innovation system construction project and the "415X" advanced manufacturing cluster cultivation project in Zhejiang Province, we will lay out the three major scientific and technological innovation highlands of intelligent manufacturing, information technology and health care, and promote the virtuous cycle of "science and technology-capital-industry". In 2023, Caitong Innovation will complete 11 investment projects, with a total subscribed investment amount of 511 million yuan. By the end of 2023, a total of 58 equity investment projects have been invested, with a total subscribed investment amount of 5.104 billion yuan, and a total of 8 invested companies have been listed on the IPO.

From the perspective of private equity investment fund business, in 2023, the role of the capital market in serving scientific and technological innovation will be further strengthened in the context of the comprehensive registration system.

Caitong Capital, a wholly-owned subsidiary of Caitong Securities, focuses on the strategic positioning of focusing on the two-wheel drive of equity investment funds and government industrial funds, focusing on the investment layout of five major sectors: emerging technology, advanced manufacturing, intelligent vehicles and new energy, new materials and new generation information technology, and life and health, showing a good development trend. By the end of 2023, the paid-in scale will be increased to the 16th place among private equity firms, the scale of government industrial funds currently managed and served will reach 52.25 billion yuan, a year-on-year increase of 31%, assisting the province in introducing a number of major projects, 37 private equity funds under management, with a paid-in scale of 10.8 billion yuan, a year-on-year increase of 153%, and the successful filing of 4 billion yuan of Hangzhou Chengxi Science and Technology Innovation Manufacturing Fund of Funds and 8 billion yuan of equity investment funds, achieving a year-on-year increase of 121% in management fee income. The amount of new equity investment was 5.5 billion yuan, a year-on-year increase of 190%. It has achieved the IPO listing of 7 invested companies, with a cumulative investment of more than 60 companies and a cumulative investment scale of more than 10 billion yuan.

Wealth business: Transformation accelerates and stabilizes capabilities

In 2023, there will be a structural market that rises first and then falls. According to the statistics of Wind and China Securities Association, the net income of securities companies (including seat leasing) was 98.437 billion yuan, down 12.95% year-on-year, and the net income from agency sales of financial products was 14.211 billion yuan, down 8.24% year-on-year.

The transformation of Caitong Securities' wealth business has achieved certain results. In 2023, the number of Caitong Securities customers exceeded 3.26 million, an increase of 14% from the end of the previous year, and the total customer assets reached 779.5 billion yuan, with the number of institutional customers and assets growing rapidly.

It is worth mentioning that Caitong Securities has also increased the design and promotion of "fixed income +" products and common wealth products, and the sales volume of common wealth products has increased by nearly 80% year-on-year.

At the same time, the scale of Caitong Securities' financial business will reach 18.912 billion yuan in 2023, an increase of 20.5% from the beginning of the year, the scale of stock pledge of its own funds will be 3.794 billion yuan, an increase of 33.50% from the beginning of the year, and the income of credit business will reach 595 million yuan, an increase of 8.87% from the beginning of the year.

Caitong Research Institute's performance in 2023 is also remarkable. On the one hand, its internal research service support has been further enhanced, and on the other hand, the development of the institute has brought about a significant increase in the company's public fund sub-position commission. The business income of the institute increased by 7.5 times year-on-year, the number of service institutions increased by more than 50% year-on-year, and the coverage rate of the research industry reached 80%.

In addition, Caitong Asset Management, a subsidiary of Caitong Securities, also continued to embark on a steady and progressive development curve. In 2023, the asset management business scale of the securities industry will be 8.83 trillion yuan, a year-on-year decrease of 9%. However, the management scale of Caitong Asset Management by the end of 2023 reached 276.5 billion yuan, a year-on-year increase of 12%, of which the public offering management scale of non-monetary funds was 98.1 billion yuan, a year-on-year increase of 13%.

Yongan Futures, an important shareholding company of Caitong Securities, was not only selected as the "Insurance + Futures" case of the 2023 Mid-term Association with the Quzhou pig "Insurance + Futures" project, but also achieved a year-on-year increase of 22.3% in the opening of industrial customers, added 7 varieties of market-making qualifications, and its international business segment also seized the opportunity of the US dollar interest rate hike to innovate and develop cross-border income swap business.

Three "growth against the market" password

In 2023, when the industry as a whole is sluggish, Caitong Securities has achieved steady growth, and most of its business segments have developed in a balanced manner. What is this "growth against the market" code?

In the view of Zhang Qicheng, chairman of Caitong Securities, the first growth code is a clear strategic positioning, that is, on the basis of taking root in Zhejiang, actively integrating into the Yangtze River Delta development integration, Beijing-Tianjin-Hebei coordinated development, Guangdong-Hong Kong-Macao Greater Bay Area, Chengdu-Chongqing Twin-City Economic Circle and Hainan Free Trade Port and other major strategies, Shanghai, Chongqing, Beijing, Shenzhen, Hainan and other five major business headquarters are advancing in an orderly manner, which leaves room for the development of Caitong.

The second growth password is that Caitong Securities adheres to the original intention of "financial service" and promotes the balanced development and virtuous cycle of investment and financing, which stabilizes the direction for Caitong's development.

"The third growth password comes from optimizing the layout of the business structure, which lays a solid foundation for us to achieve balanced development across cycles. Zhang Qicheng emphasized that Caitong Securities will continue to strengthen resource sharing and business linkage through the linkage mechanism of the troika of "investment + investment banking + wealth", better implement the concept of "investor-oriented", deeply cultivate Zhejiang's economy and Zhejiang's people's economy, and help Zhejiang's "sweet potato economy" to take deep roots. （CIS）