Share This

Public company info - Huarong International Financial Holdings Ltd. , 00993.HK
Input the stock code or the company name     Search  
 
 Profile   Information   Data   Financial Ratios   Profit Loss   Cash Flow   Balance   Earnings   Dividend 

Huarong International Financial Holdings Ltd., 00993.HK - Company Profile
Chairman Xu Xiaowu
Share Issued (share) 8,710,000,000
Par Currency Hong Kong Dollar
Par Value 0.001
Industry Other Financials
Corporate Profile Business Summary: The Group is securities, futures and options contracts brokerage, provision of margin financing, corporate finance and asset management services, direct investment in equities, bonds, funds, derivative instruments and other financial products. Performance for the year: The Group recorded a loss for the Year of approximately HK$2,686,240,000 as compared to a loss of approximately HK$2,686,793,000 for the Last Year. Basic loss per share was HK42.5 cents for the Year as compared to basic loss per share of HK37.6 cents for the Last Year. Business Review In 2020, the COVID-19 pandemic caused an extensive impact on the global economy, while escalating geopolitical tensions between China and the United States presented uncertainties in the market. Such factors inevitably caused an adverse impact on the financial performance of the Group. As market volatility was aggravated under the ravaging COVID-19 pandemic, the enterprises that the Group had invested in was unable to resume operation or production as scheduled, resulting in tighter cashflow and higher risk of default. As the businesses and valuations of certain companies in the Group’s investment portfolio were under pressure, the Group made an impairment provision of approximately HK$2,207,772,000 for the full year in respect of projects subject to risks. Confronting the extremely challenging external environment, the Group persisted in making progress in prudent operations by enhancing risk management and control and actively reverting to a focus on its principal business. We seized market opportunities arising in this special period and gave full play to the synergic effect of our licensed business, as we explored business opportunities with ongoing effort and expedited our business transformation and development. In the meantime, as a state-owned listed financial holding company, the Group has vigorously undertaken its corporate social responsibility and provided assistance to small and medium enterprises by offering term extension and adjusting repayment schedules, to the extent permitted by our risk preference, so that they could steer through the pandemic in a stable manner. Asset Management and Direct Investment The asset management and direct investment segment is engaged in the provision of asset management services, direct investments in stocks, bonds, funds, derivative instruments and other financial products and the provision of structured financing. In 2020, while the traditional asset management industry face unprecedented enormous challenges as a result of the impact of the COVID-19 pandemic and other factors, rare opportunities for development arose in the segment of non-performing assets. Under the austere market condition, the Group reviewed its investment portfolio in a prudent manner and strengthened risk management and control measures against market risks and credit risks. At the same time, we were also actively engaged in business development in relation to the principal business of China Huarong Group with a special focus on distressed assets and relief for corporations, as we stepped up with the development of the light-asset management business. While playing a part in risk mitigation for financial institutions, we are looking forward to providing considerable investment return for investors through these funds. The segment revenue was approximately HK$601,634,000 for the Year as compared to approximately HK$1,605,725,000 for the Last Year. Due to the completion of certain projects, the interest income of this segment decreased to approximately HK$555,668,000 for the Year from HK$1,349,763,000 for the Last Year. Net loss on financial assets at fair value through profit or loss increased from approximately HK$237,899,000 for the Last Year to approximately HK$275,108,000 for the Year. The loss for the segment result increased substantially as a result of a significant decrease in revenue. The segment result was loss of approximately HK$2,344,340,000 for the Year as compared to loss of approximately HK$1,633,662,000 for the Last Year. Securities Securities business segment includes the provision of brokerage services, margin financing, structured financing and stocks, bonds, futures and options trading services. It is also actively developing the wealth management business and provision of investment advisory services to achieve mutual benefits and win-win results. In 2020, the Group effectively addressed the adverse impact of the COVID-19 pandemic on the development of its securities business in firm adherence to the bottom line of compliant business operation and seized opportunities presented by active market trading to further enhance its marketing. As a result, the securities business bucked the trend to report growth in the revenue from principal operations, while the mobile APP “華融財富通” also went online successfully to lay a solid foundation for stable business development in 2021. For the Year, the revenue from the securities segment was approximately HK$160,766,000 as compared to approximately HK$415,712,000 for the Last Year; the segment result amounted to loss of approximately HK$227,090,000 as compared to loss of approximately HK$575,230,000 for the Last Year, due to the certain margin projects of the Group and advances to customers in margin financing were crystalized and converted into other loans and debt instruments through deeds of assignment during the Year, which resulted in a decrease in revenue in this segment for the Year and the decline of provisions. Corporate Finance The US dollar bond of Chinese companies saw roller-coaster price fluctuations in 2020. During the first half of the year, US dollar liquidity was impacted by the pandemic, as US dollar bonds of Chinese companies faced bleak conditions in the primary market and falling prices in the secondary market. In the second half of the year, market liquidity improved with the benefit of quantitative easing policies adopted by central banks across the board. However, the market for US dollar bonds issued by Chinese companies were impacted by the repeated credit risk incidents occurring in China, resulting in complicated and volatile market conditions. The Group seized opportunities in capital markets to actively advance its overseas bond underwriting business. The bond capital market business commenced operations in 2020 and completed some bond underwriting deals during the Year, which included large state-owned institutions and private enterprises that were primarily financial institutions and SOE city investment companies. The Company actively expanded its bond trading network and traded with numerous new institutional and investor counterparties during the year to enhance brand recognition in the capital market. In addition, we have strengthened collaboration with fellow financial institutions with a special focus on services for cross-border companies, laying foundation for the forging of the brand characteristic of “investment + investment banking”. The Company has also made a good start in the new share underwriting business with the completion of the first new share underwriting deal during the Year. For the Year, revenue from the corporate finance segment amounted to approximately HK$511,000 as compared to revenue of approximately HK$8,907,000 for the Last Year. The segment result for the Year was loss of approximately HK$152,000 as compared to loss of approximately HK$5,064,000 for the Last Year. Financial Services and Others As mentioned above, on 10 November 2020, the Company completed the Privatization of HRIV, whose business includes provision of finance lease services, business consulting services and other related services in Mainland of China. It is focusing on providing services to the basic industries which conform to the PRC’s industrial policy and economic development trend, by way of introducing financial leasing to those industries, including the logistics, automobile, aviation, solar energy and wind power generation and liquified natural gas sectors, to obtain constant and stable rental income. In addition, based on the Group’s domestic and overseas business network and the experience of investing in various industries, the Group also provided consulting services on macro-economy, industry analysis, financial product design and other aspects for customers. During the Year, the segment revenue was approximately HK$78,097,000 (Last Year: HK$148,035,000). Due to the fluctuation of exchange rates, exchange gains for the Year increased. The segment loss decreased to approximately HK$88,964,000 (Last Year: segment loss of approximately HK$160,600,000). Prospects: In 2021, the continued struggle against the pandemic, the sustained effect of economic deterioration caused by the COVID-19 pandemic, the complicated and volatile situation of geopolitical frictions and the rapidly soaring global unemployment rate will combine to present enormous challenges to the global economy. Nevertheless, with world nations’ increasing effort to contain the pandemic and the development of COVID-19 vaccination, the economic downside pressure resulting from social distancing measures will be alleviated to a certain extent and a new driving force for economic recovery will be generated. Year 2021 is the opening year for China’s “14th Five-Year Plan”, during which the government will continue to drive the growth of domestic consumption, support innovative development, improve the business environment and stimulate continuous recovery and growth of the Chinese economy despite the impact of the pandemic. In late 2020, the Group formulated a development plan for the next five years from 2021 to 2025 (the “Five-Year Development Plan”), under which the Group was positioned as a “specialised capital-based investment bank focused on alternative assets that serves cross-border enterprises”, with a view to exploring a path of developing itself as a differentiated, professional and distinctive investment bank. Given the currently complicated internal and external market conditions, the Group will vigorously rise to the challenge with consistent efforts to strengthen its licensed business. We will enhance our asset management, securities and investment banking businesses to take our operational development to a new level. In connection with the asset management and direct investment business, we will continue to pivot on the principal business of China Huarong Group and focus on distressed assets and relief for corporations. Meanwhile, we will also leverage the advantage of our financial license and synergetic business to further expand and develop new fund products, actively exploring innovative cross-border businesses in relation to non-performing assets while enhancing our clientele with strong effort to gradually expand the scale of our asset management business. In the securities business, the Group will make a major effort to enhance business research and market development, striving to make breakthroughs in margin financing for new share subscription, online customer acquisition via mobile APP, structured finance and wealth management in a bid to enrich its business and product portfolio while improving the quality of customer service. In corporate finance, with the ongoing demand for overseas bond issuance on the part of Chinese companies, the market for US dollar bonds issued by Chinese companies will continue with stable development. The Company will further develop its bond capital market business. In addition, in view of the ongoing optimization of the industry mix of listed companies on the Stock Exchange, the enthusiasm for the return of “China-concept” stocks to the Hong Kong stock market will continue, and the Hang Seng Index, total turnover of the stock market and level of trading activity are expected to further stabilise in 2021. The Group will gradually commence the business of share issue underwriting and sponsorship with appropriate expansion of its team to increase the commitment of resources to business development. 2021 is the commencement year for the Group’s full implementation of its Five-Year Development Plan. The Group will procure proper implementation of its tasks and secure control of operating risks to solidify its foundation and strive for a positive start. We will also leverage the advantage of Hong Kong as an international financial centre and focus on developments in the Guangdong – Hong Kong – Macau Greater Bay Area and the Yangtze River Delta region and the “Belt and Road” initiative, fulfilling our unique role as a connection between the internal market and external markets and enhancing the quality and efficiency of our operations and management through enhanced professional financial services relating to investment opportunities in cross-border non-performing companies, while implementing prudent risk management and cost control, as we continue to progress towards our goals and endeavour to add value for Shareholders.

Information from the financial statements of listed companies

Mobile | Full
Forum rule | About Us | Contact Info | Terms & Conditions | Privacy Statment | Disclaimer | Site Map
Copyright (C) 2024Suntek Computer Systems Limited. All rights reserved
Disclaimer : In the preparation of this website, 88iv endeavours to offer the most current, correct and clearly expressed information to the public. Nevertheless, inadvertent errors in information and in software may occur. In particular but without limiting anything here, 88iv disclaims any responsibility and accepts no liability (whether in tort, contract or otherwise) for any direct or indirect loss or damage arising from any inaccuracies, omissions or typographical errors that may be contained in this website. 88iv also does not warrant the accuracy, completeness, timeliness or fitness for purpose of the information contained in this website.