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Public company info - Guotai Junan International Holdings Ltd. , 01788.HK
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Guotai Junan International Holdings Ltd., 01788.HK - Company Profile
Chairman YIM Fung
Share Issued (share) 9,619,000,000
Par Currency
Par Value 0.0
Industry Securities
Corporate Profile Business Summary: The Group is principally engaged in brokerage, corporate finance, asset management, loans and financing, financial products, market making and investments. Performance for the year: Revenue and other income (total revenue) reached approximately HK$4,878 million (2019: HK$4,250 million), which represented an increase of 15% YOY, setting a new high since its establishment. The Group recorded a profit attributable to ordinary equity holders of the Company (“Attributable Profit”) of approximately HK$1,563 million (2019: HK$895 million), which represented a significant YOY increase of 75%, setting a new high since its establishment. Business Review: The COVID-19 caused unprecedented fluctuations in the global financial market in 2020. Following the historical meltdown of the US stock market in March 2020, the major economies across the world launched large-scale quantitative easing measures and economic stimulus packages, driving the liquidity and sentiment of the financial market to gradually stabilize. During the year, the expectation and performance of the capital market was affected by various factors such as the increasing number of confirmed COVID-19 cases on a global scale, the US presidential election, the secondary listing of the China concept stocks in the Hong Kong stock market and the rollout of mass vaccination programme across the world. The Hang Seng Index (“HSI”) closed at 27,231 at the end of 2020, representing a decrease of 3% year-on-year (“YOY”) while the average daily turnover of the Hong Kong stock market experienced a YOY increase of 49% to HK$129,500 million. In 2020, industries that outperformed the HSI were in areas of renewable energy, consumption and technology, etc. Regarding the debt market, the total amount of bonds issued in Asian (ex-Japan) G3 currencies (US dollar, euro and yen) in 2020 increased by about 3% YOY to US$348.4 billion according to Bloomberg. On the other hand, the total number of initial public offerings (“IPO(s)”) in Hong Kong primary market in 2020 decreased by 16% YOY to 154, while the amount of funds raised from IPOs in the Hong Kong market rose by 27% YOY to HK$397.5 billion, setting a record high since 2011. The total amount of funds raised in the Hong Kong market, including IPOs, increased by 64% YOY to HK$743.7 billion. The Group firmly believes that risk management is the core competency of securities companies. Since 2017, the Group took initiatives to make provisions for and divest its risky assets. During the year, the loss allowance of the Company decreased significantly YOY. In addition, the Group maintained global credit ratings at Standard & Poor’s BBB+ and Moody’s Baa2 long-term issuer rating with the outlook of the Company being “stable”, which is not only the leading rating among the Chinese securities houses in Hong Kong and also ranks among the first-tier global investment banks. To offer quality products and services tailored for high-net-worth individual clients in a better way, the Group completed the internal strategic consolidation of wealth management and retail brokerage business in first half of 2020. Currently, the wealth management platform of the Group is equipped with professional teams specialized in investment consulting, customer service, wealth management for private clients and structured derivatives products, and offers a variety of asset classes not only covering regular investment portfolios such as equity and fixed income products, but also including a basket of investment products such as derivative warrants and callable bull/ bear contract (CBBC), customized wealth management products, foreign exchange, futures and private equity, etc. In addition, leveraging on its expertise in the finance products business, the Group consolidated its resources and established the structured solutions and derivatives business team in the third quarter of 2020 to cater to the increasing demands for customized services from corporate and institutional investors and provide flexible and practical investment and financing solutions continuously, so as to help clients to make optimal investment decisions and strategies under different market conditions. As new economy industries driven by technology innovation started to reshape the Group’s lifestyle and led the global financial markets in 2020, the Group established a professional team in 2020 for equity investments, to support the development of quality new economy enterprises and lay a foundation for offering differentiated and a wider range of products and investment channels to wealth management clients. During the year, the Group participated in a number of private equity projects covering various new economy industries, including companies in new energy battery asset management, recycling platform for electronic devices, artificial intelligence chips, automated driving technology and other sectors, the substance and prospects of which are highly welcomed by wealth management clients. The Group has good reputation and brand credibility with its diversified products and professional services. In 2020, the Company obtained more than 30 awards from both international and local media, not only covering wealth management, corporate finance, fixed income, structured financial derivatives, asset management and research services, but also the general management areas such as risk management, corporate governance and information disclosure which are also highly acclaimed, demonstrating the Company’s strength and advantages as a leading financial service platform. Prospects: Entering into 2021, with the introduction of Covid-19 vaccines, it is expected that the global economy will gradually return to the recovery track. Low interest rate and sufficient liquidity may become the “New Norm” for the major Western economies, but the rising potential risks such as US dollar depreciation, governmental debts and corporate debts could subject the global market to uncertainties. As one of the major economies to achieve economic growth in 2020, and supported by its moderately loose monetary policy and proactive fiscal policy, China is expected to expedite economic recovery and become the core growth engine for the global economy. The year 2021 unveils the implementation of the nation’s “Dual Circulation” new development strategy, which aims to stabilise economic growth by focusing on developing a domestic circulation economy, boosting domestic consumption and increasing investments. As it is expected that the trend of the China concept stocks returning to the Hong Kong market for secondary listing will continue, the participants in the Hong Kong capital market will have more opportunities to invest in an increasing number of listed companies that are engaged in new economy, and owing to the further implementation of the stock connect mechanism, the investment sentiment and interest will be further revived. During the process, investors will seek more quality investment channels and wealth management platforms and explore various development opportunities to participate in the development of the Chinese economy. In 2021, the Group will continue to step up efforts in implementing operational strategies to promote effectiveness: • Leveraging fintech in the securities trading platform to provide better trading experience to clients; • Taking proactive initiatives to optimise wealth management services, enhance products and services as well as investment channels for clients and strengthen the interconnectivity among wealth management and private equity, asset management, corporate finance and other businesses, continuing to create onestop financial services for clients; • Stepping up efforts to develop financial institutions and corporate clients and leveraging on the core competencies of financial products and trading system to provide clients with differentiated and customized products and services; and • Enhancing cooperation with parent company to explore new opportunities in the cross-border financial market. Over the mid-to-long run, the Group will take the Belt and Road Initiative as an opportunity to expedite its pace in exploring the Southeast Asian markets, and further facilitate the business development in Southeast Asia through its subsidiaries in Singapore and Vietnam. The Group determines to be the professional partner for domestic clients who invest globally and for overseas clients who invest in China. The Group has been implementing a solid and steady operational strategy. As always, the Company will continue to improve its risk management measures and strengthen its execution, as well as consolidate and enhance its outstanding risk management capabilities through timely identification, measurement, hedging and mitigation of risks, so as to lay a solid foundation for further business development. The Group always aims to increase the risk-adjusted return on net asset with steady and solid compound growth to reward the Group’s investors for their continuous supports.

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