Shenwan Hongyuan Group Announces 2022 Half-Year Results

Overcame market volatility and the adverse effects of the pandemic and maintained stable development

HONG KONG, August 31, 2022 /PRNewswire/ — Shenwan Hongyuan Group Co., Ltd. (“Shenwan Hongyuan Group”, “Shenwan Hongyuan” or the “Company”) (stock code: 6806.HK; 000166.SZ) announced its interim results for the six months ended June 30, 2022 (the “Reporting Period”).

During the reporting period, the Company achieved total sales and other income of 18.537 billion RMB, a decrease of 12.89% year-on-year. Net income attributable to shareholders of the Company achieved 3.362 billion RMB; basic earnings per share was RMB0.13. The total assets of the Company amounted to 624.958 billion RMBan increase of 3.98% compared to the end of 2021.

In the first half of 2022, adverse factors such as recurrent epidemics, escalating geopolitical conflicts and escalating global and regional tensions posed unprecedented challenges to China national economic development, resulting in fluctuations in the capital market. In the face of the pandemic and the pressures of economic development, the Company coordinated pandemic prevention and control measures with its operational management, committed to “seeking progress while maintaining stability”, focused on its responsibilities power plants and its trades, and made full use of its professional advantages. During the reporting period, the Company achieved steady development in its four main businesses.

H1 2022 business highlights:

The company insisted on the implementation of national strategies and achieved significant growth in terms of investment banking business. During the reporting period, the Company’s corporate finance business recorded total revenue and other revenue of 1.500 billion RMB. The Company has adopted a series of measures in the service of national strategies, helped high-tech enterprises and green environmental protection enterprises to obtain financing through multiple channels, contributed to rural revitalization and actively implemented implementation of inclusive financial policies. During the reporting period, in terms of domestic equity financing, the Company’s total domestic underwriting scale was 16.174 billion RMB. The Company acted as an underwriter for 14 companies, ranking 10th in total underwriting scale in the industry and marking a rapid rise in the Company’s ranking. The Company has proactively developed its inclusive finance business and fully promoted the development of small and medium enterprises. He has provided ongoing oversight of 578 companies listed on the National Equities Exchange and Quotations (NEEQ), ranking second in the industry in terms of scale. In terms of the number of the Company’s underwriting projects that have been adopted or are under consideration by the Beijing Stock Exchange, the Company ranked among the top three in the industry. In terms of debt financing, the Company maintained a good momentum of development and further increased its influence on the market. The number and scale of projects for which the Company has been an underwriter rank among the best in the industry. During this time, the Company took the initiative to implement what was necessary to serve national strategies and took steps to expand and designate projects to specifically serve national strategies and related specialist businesses. During the reporting period, most bond issuance proceeds were allocated to key areas such as epidemic prevention and control, dual-carbon development and technological innovation. The Company has proactively contributed to expanding funding channels for small, medium and micro-enterprises that have been hit hard by the pandemic. During the reporting period, the Company issued the first Euro-denominated bond, achieving a new breakthrough in terms of bond underwriting types.

Through its commitment to empowering fintech, the company’s brokerage business was transformed into wealth management. During the reporting period, the Company’s personal finance segment had total sales and other income of 6.535 billion RMB, representing annual growth of 2.07%. The Company has expanded the range of customers and assets in terms of its securities brokerage business, provided strong core services and enhanced its more comprehensive service capabilities. At the same time, the company has been more committed to fintech empowerment and started building a new generation of mobile terminals. For its futures brokerage business, the Company accelerated the establishment and improvement of its “one base with two wings” business structure, which defines its agency business as the “single base” and its management activities Risk and Wealth Management as the “two wings”. “, deepening the collaboration between the securities company and the futures company to improve overall competitiveness. In the first half of this year, the average daily scale of customer equity increased by 51.83 % YoY, hitting an all-time high Hongyuan Futures seized market opportunities for its brokerage business and achieved average daily client capital of 13.465 billion RMB, a year-over-year increase of 21.61%. The market making business and the OTC derivatives business grew rapidly as the number of market making products increased to 15 and the nominal new principal amounted to 14.879 billion RMB.

Overcame the negative impact of the epidemic and continued to build a whole business chain for institutional businesses. For its trading and institutional services businesses, the Company has coordinated and integrated internal and external resources in accordance with its product offerings to provide institutional clients with a comprehensive set of financial services, including research, products and transactions. . As for the PB system, its revenues continue to be among the highest in the industry. The “SWHYMatrix” high-speed trading platform has continued to improve functions and optimize performance. For the research and advisory business, SWS Research has continued to practice its “Research + Investment + Investment Banking” strategy, effectively exploited its brand advantages, focused on in-depth research, and continuously improved its influence on the market. The Company overcame the unfavorable market environment with an industry-leading level of performance thanks to its self-managed bonds. The Company has adhered to its objective of maintaining a “non-directional, low volatility, absolute return” equity sales and trading business, working towards the gradual transformation into a neutral optimized “multi-asset, multi- strategies”. With respect to its OTC derivatives business, the Company has maintained its competitive edge, with its new and existing size continuing to lead the industry.

continued to improve investment management capabilities; the quality and quantity of business saw further improvements. During the reporting period, the Company achieved total sales and other income of 927 million RMB with respect to its investment management activity, representing a year-on-year increase of 3.68%. The Company continued to focus on professional reforms as well as improving and transforming its active management capabilities, improving the construction of its product portfolio, and promoting the construction of investment systems and of research. The level of product investment management and investment performance have seen significant improvements. Net income from the Company’s asset management business ranked ninth in the industry, with assets under management increasing to 283.963 billion RMB. SWS MU officially completed the implementation of its fund investment advisory business and QDLP business during the reporting period. Fullgoal Fund’s AUM exceeded 1.4 trillion RMB, with assets under management for pension activities and special accounts reaching record levels. Building on the business advantages of NEEQ, the Company has strengthened its business structure with emphasis on those that exhibit “specialization, sophistication, differentiation and innovation”.

In the future, the Company will continue to serve the national strategy as well as the real economy, optimize its business configuration, and build a whole industrial chain of investment and financial services supported by the capital market, providing diversified financial products and services to its customers.

About Shenwan Hongyuan Group

Shenwan Hongyuan Group Co., Ltd (stock code: 6806.HK; 000166.SZ) is a leading investment portfolio group focused on the securities industry in China and committed to providing various financial products and services to its customers. The Group has established a long-standing leadership position in several business areas of the PRC securities industry with quality growth, including corporate finance, personal finance, institutional services and trading, and investment management. In January 2015, Shenwan Hongyuan was formed from the merger between Shenyin & Wanguo Securities and Hong Yuan Securities, which was the largest merger in the PRC securities industry at the time and listed on the Shenzhen Stock Exchange. In April 2019Shewan Hongyuan issued H shares and was successfully listed on the Hong Kong Stock Exchange.

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