The six highlights of Caitong Securities' annual report are worth seeing, and these points are steadily improving

There is such a brokerage, in the environment of the overall poor performance of the industry last year, the company's performance has grown against the trend, and a number of business lines have performed well, which is Caitong Securities.

On April 25, Caitong Securities released its annual report, in 2023, the company will achieve operating income of 6.517 billion yuan, a year-on-year increase of 35.03%; The net profit attributable to shareholders of the listed company was 2.252 billion yuan. The weighted average return on equity was 6.67%, an increase of 1.71 percentage points year-on-year. The company plans to distribute a cash dividend of 1 yuan for every 10 shares, and the total cash dividend is expected to be 464 million yuan, and the company's interim dividend in 2023 will be 232 million yuan, accounting for 30.93% of the net profit attributable to the parent company.

Highlight 1: The number of wealth customers exceeded 3.26 million, and the scale of fund investment consulting contracts increased by nearly 70%.

Last year, Caitong's securities brokerage business maintained a steady growth trend. In 2023, Caitong's securities brokerage business will achieve a net income of 1.199 billion yuan, an increase of 1.34% year-on-year.

Caitong Securities has accelerated the transformation of wealth management and achieved gratifying results.

In 2023, the annual growth rate of the number of customers of Caitong Securities outperformed the market, the number of wealth customers and high-net-worth customers increased, and the number of customers of the parent company exceeded 3.26 million at the end of the period, an increase of 14% from the end of the previous year. The total scale of customer assets is 779.5 billion yuan.

Last year, Caitong Securities, custody, fund investment advisory and other innovative businesses developed rapidly, the contribution of securities settlement transactions increased by 157%, and the company's custody business revenue increased by 19.6% year-on-year. The company further promoted the fund investment advisory business, and the contract scale increased by 67%.

Caitong Securities revealed in its annual report that the company has further promoted the comprehensive reform of its branches and the transformation of its business institutions, focusing on the comprehensive and diversified needs of institutional customers, extending the business chain, giving full play to the operational advantages of the group army, and achieving remarkable results in the transformation of wealth business, with both the growth of financial product distribution and the scale of retention, and the increase in the proportion of business income from institutional customers.

In addition, under the weak market situation, Caitong Securities continued to build a financial product system, carried out high-quality product introduction, common prosperity product construction, strengthened the competitiveness of consignment sales, and promoted investment advisory business, so as to achieve a double increase in sales and ownership of financial products. According to the market risk appetite, we increased the design of "fixed income +" products, increased the design and promotion of common wealth products, and the sales volume of common wealth products increased by nearly 80% year-on-year. Actively explore private banking business, and provide professional, personalized and comprehensive output services for interbank, institutional, high-net-worth and private bank-level customers.

Highlight 2: Investment banks have achieved fruitful results, and the scale of debt sales has historically exceeded the 100 billion mark

In the case of a decline in the number and scale of equity financing in the A-share market last year, Caitong Securities' investment banking business surged against the trend, and the company's investment banking business achieved a net income of 761 million yuan in 2023, an increase of 68.44% year-on-year.

In terms of equity business, in 2023, Caitong Securities successfully sponsored and listed 6 IPO projects, of which 5 were enterprises in Zhejiang Province; The company has 33 IPO counseling entrepreneurs nationwide, including 26 IPO counseling entrepreneurs in Zhejiang Province.

In terms of bond business, in 2023, the full-caliber bond underwriting scale of Caitong Securities will reach 123.379 billion yuan, a historic breakthrough of 100 billion yuan, a year-on-year increase of 79.17%. Among them, the underwriting scale of corporate bonds and corporate bonds was 102.564 billion yuan, a year-on-year increase of 68.18%; The underwriting scale in Zhejiang Province was 88.747 billion, a year-on-year increase of 74.68%, and the market share in Zhejiang Province increased to 16.5%.

Caitong Securities said that the company will build a first-class modern investment bank as the "No. 1 project", based on Zhejiang's location advantages and the company's resource endowment, seize the opportunity of the expansion of the Beijing Stock Exchange, focus on "specialized, special and new" enterprises, give full play to the group army's collaborative combat capabilities, carry out special actions to serve the listing of enterprises on the Beijing Stock Exchange, adhere to the strategy of deep cultivation in Zhejiang, and set up a "1+2+N" led by the company's leaders, the heads of the investment banking line departments and the heads of the regional branches to which the company's "N" side is coordinated The regional responsibility team has further broadened the scope of business, deepened the two-way communication mechanism, and strengthened the docking and introduction of resources.

Highlight 3: The income of self-operated business has increased highly, and these points have been done right

Compared with the various business lines of Caitong Securities, the proprietary business has achieved more rapid growth. In 2023, Caitong Securities' proprietary income will be 1.757 billion yuan, a year-on-year increase of 1056.23%, mainly due to the year-on-year increase in investment income (including fair value changes) of financial instruments affected by the market.

Caitong Securities said that last year, the company's equity investment adhered to risk control, low position operation, strengthened research on key industries and individual stocks, selected tracks, focused on grasping the theme investment opportunities of information innovation and AI, and achieved excess returns compared with the index.

In terms of fixed-income investment, Caitong Securities has stepped up efforts to promote the allocation of large types of assets on the basis of consolidating the bond investment business, enriching the major types of investment, selecting allocations in various sub-categories, and reasonably regulating positions.

Caitong Securities' derivatives business has developed steadily as a whole, focusing on the three major businesses of fund market-making, quantitative proprietary trading and over-the-counter business. During the reporting period, the main market maker business of listed funds started steadily; All quantitative proprietary strategies achieved positive returns, and the investment scale of neutral strategies increased steadily. The cumulative new nominal principal of OTC derivatives was 49.5 billion, a year-on-year increase of 150%.

Highlight 4: The two financial and stock quality businesses are better than the market as a whole, and the promotion of the "credit business +" model is promoted

Last year, the market-wide margin financing and securities lending and stock quality businesses all declined, but Caitong Securities grew against the trend.

In terms of the market environment, in 2023, the average daily balance of margin financing and securities lending in the whole market will be 1.61 trillion yuan, a year-on-year decrease of 0.8%, of which the financing balance will be 1.52 trillion yuan, a year-on-year decrease of 0.4%; the balance of securities lending and borrowing was 89.8 billion yuan, a year-on-year decrease of 6.6%; the funds pledged by stock pledge on the floor were 209.7 billion yuan, a year-on-year decrease of 1.27%; The interest income from stock pledge repurchase was 11.9 billion yuan, down 9.16% year-on-year.

Last year, Caitong Securities achieved considerable growth in both financial and stock quality businesses. As of the end of 2023, the company's financial business scale was 18.912 billion yuan, an increase of 20.5% from the beginning of the year. The scale of stock pledge of self-owned funds was 3.794 billion yuan, an increase of 33.50% over the beginning of the year.

Judging from Caitong Securities' practice in credit business last year, the company adhered to the customer-centric and gold-based service concept, and promoted the continuous improvement of business indicators through the two-wheel drive of "retail + institution". Explore business innovation models and promote the promotion of the "credit business +" model. Change the management thinking of the pledge business, and focus on improving the quality of the pledge business of self-owned funds. Strengthen the application of collateral models and implement risk management and control according to stock classification. Iteratively upgrade the securities lending platform, and pilot some phased preferential interest rate policies through the comprehensive interest rate control model of "full authorization + average interest rate management" to support business expansion. Continue to do a good job in the risk monitoring and disposal of existing high-debt customers.

Highlight 5: Caitong Asset Management's fixed income exceeded 200 billion, and the scale of Caitong Fund increased by two percent

Caitong Securities' asset management business also had remarkable features last year, with the company's asset management business achieving a net income of 1.553 billion yuan last year, an increase of 6.37% year-on-year.

In 2023, Caitong Securities Asset Management Co., Ltd.'s fixed income scale will exceed 200 billion yuan, and the company will actively promote the diversification of FICC business to enrich the "+ strategy". In response to the call of the common wealth policy, we have established a hybrid FOF with partial stocks and a target risk pension FOF to improve long-term tools for asset allocation. The investment and financing business broke through against the trend, and 38 new ABS products were issued during the reporting period, with a total scale of 32 billion yuan, a year-on-year increase of more than 30%. Since its establishment, the company has issued 119 ABS, with a total scale of 96.27 billion yuan.

As of the end of 2023, the management scale of Caitong Securities Asset Management Company reached 276.5 billion yuan, a year-on-year increase of 12%. Among them, the scale of public offering and management of non-monetary funds was 98.1 billion yuan, a year-on-year increase of 13%. During the reporting period, Caitong Securities Asset Management Company achieved revenue of 1.6 billion yuan, a year-on-year increase of 6.7%.

In terms of fund business, as of the end of 2023, the total assets under management of Caitong Fund, a shareholding company, was 134.048 billion yuan, an increase of 20.55% over the beginning of 2023; The management scale of public funds was 84.222 billion yuan, the management scale of non-goods public offering was 63.263 billion yuan, the management scale of special accounts was 49.826 billion yuan, and the scale of public funds continued to grow, with a total of 47 public offering products and more than 800 special account products, and the company's overall non-stock public offering scale, special account management scale and money market fund scale showed a new trend of balanced and sustainable development.

Caitong Fund's private placement business has won a total of 1,257 private placement projects, with a participation amount of more than 273.605 billion yuan. In 2023, 162 new private placement products will be established; Participated in 199 private placement projects, with a cumulative amount of 28.069 billion yuan.

Highlight 6: Caitong's capital income increased by 1.21 times, and Caitong's new investment in innovation increased by 1.5 times

As the investment sector in the troika of "investment banking + investment + wealth" of Caitong Securities, Caitong Capital and Caitong Innovation performed well last year.

Caitong Capital's private equity investment fund business, a wholly-owned subsidiary of Caitong Securities, has shown a good development trend. As of the end of 2023, Caitong Capital has deeply served the high-quality development of the regional economy, and the scale of government industrial funds currently managed and served by Caitong Capital has reached 52.25 billion yuan, a year-on-year increase of 31%; There were 37 private equity funds under management, with a subscription scale of 20.7 billion yuan and a paid-in scale of 10.8 billion yuan, a year-on-year increase of 153%, and 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.

In 2023, Caitong Securities completed 11 investment projects with a total subscribed investment amount of 511 million yuan. As of 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.

Caitong Innovation's new investment leverage in 2023 will be 13.3 billion yuan, a year-on-year increase of 150%.

Focusing on the "315" innovation system construction project and the "415X" advanced manufacturing cluster cultivation project in Zhejiang Province, Caitong Innovation focuses on Jiangsu, Zhejiang and Shanghai, deeply cultivates Zhejiang enterprises and Zhejiang businessmen, lays out the three major scientific and technological innovation highlands of intelligent manufacturing, information technology and health care, and focuses on investing in projects with prominent main businesses, excellent quality and technological innovation, so as to promote a virtuous cycle of "science and technology - capital - industry".

Zhang Qicheng, chairman of Caitong Securities, said that the company will focus on the "137N" innovation and development strategy, focus on building "four-type Caitong", further coordinate the resources of the whole business chain such as investment banking, investment and wealth troika, serve new quality productivity, and accompany more future industrial giants. Always adhere to improving business performance and enhancing the overall value of the company, while strengthening endogenous development, continue to pay attention to the epitaxial development of the industry, seize the opportunity to become stronger and bigger, and promote the company's high-quality and sustainable development.