CICC Announces Interim Results Net Profit Grows 62.3%
(August 17, 2020, Beijing) China International Capital Corporation Limited (“CICC”，“the Group” or “the Company”, Stock code: 3908. HK) announced its interim results ended June 30, 2020. The Group’s revenue and profit in the first half of 2020 increased significantly compared with those in the corresponding period last year. In particular, the Investment Banking business and Equities business achieved a substantial growth of revenue, and the revenue of Investment Management business also increased notably.
The Group realized total revenue and other income of RMB14,292.6 million in the first half of 2020, representing an increase of 40.1% compared with that in the first half of 2019. The Group realized net profit attributable to shareholders of the Company and holders of other equity instruments of RMB3,051.8 million in the first half of 2020, representing an increase of 62.3% compared with that in the corresponding period last year. The Group’s asset structure remained relatively stable and the asset quality and liquidity maintained at a satisfactory level. As of June 30, 2020, total assets amounted to RMB438,174.9 million, representing an increase of 27.0% compared with that at the end of 2019.
In the first half of 2020, the Investment Banking business realized a revenue of RMB2,422.8 million, representing an increase of 134.7% compared with that in the first half of 2019. In the first half of 2020, the Company closed a total of 13 A-share IPOs acting as the lead underwriter, ranking No.2 in the market; closed 5 A-share follow-on offerings ranking No.3 in the market; closed a total of 4 Hong Kong IPOs acting as the global coordinator, ranking No.1 in the market. In the first half of 2020, the Company closed a total of 314 fixed income transactions, representing a year-on-year increase of 32%. The Company continued to reinforce its leadership in the M&A business. In the first half of 2020, the Company announced 23 deals, ranking No.1 in the PRC M&A market, of which it ranked No.1 in the PRC onshore M&A market, and No.2 in the PRC cross-border M&A market.
In the first half of 2020, the Equities business realized a revenue of RMB3,151.1 million, representing an increase of 68.2% compared with that in the first half of 2019 with a balanced revenue structure between the exchange and OTC markets at home and abroad, outperforming the overall market. During the first half of 2020, the Equities business made efforts to actively expand into new addressable markets and customer groups according to the overall strategy and values “One CICC” and “Two bases and Six Pillars”. In international business, the Group continued to intensify business development efforts in the international financial markets, and maintained a leading and growing customer coverage and market share in the stock connect programs.
In the first half of 2020, the FICC business realized a revenue of RMB3,027.6 million, representing an increase of 7.8% compared with that in the first half of 2019. The Company continued to steadily improve its comprehensive service capability and further strengthened the ability of serving customers. FICC delivered strong results in securitization and structured product business and further strengthened structuring of new products, and enhanced collaboration and product offerings to wealth management customers and investment banking customers.
In the first half of 2020, the Investment Management business realized a revenue of RMB1,267.4 million, representing an increase of 47.1% compared with that in the first half of 2019. The Investment Management business continued to advance the building of allocation teams and platforms for major classes of assets, strengthened critical capabilities such as product design, distribution, investment and research and vigorously grew its AUM. As of June 30, 2020, the scale of assets under the Group’s management through a variety of ways amounted to approximately RMB898.3 billion.
The Company focuses on active asset management. Always putting clients’ interests first, the Asset Management business designs and offers high-quality and innovative asset management products and services to domestic and overseas clients for the purpose of steady value appreciation over the long term. As of June 30, 2020, total AUM by the Asset Management department was RMB342,385 million, representing an increase of 15.0% compared with the end of 2019.
In the first half of 2020, CICC Fund Management continued to develop featured instrument-type products in line with selected industry themes and tracks, and gave play to its advantages in self-developed indexes and investment team’s capabilities of allocation to provide customers with high-quality long-term asset allocation products. As of June 30, 2020, the AUM of CICC Fund Management amounted to RMB35,668 million, representing an increase of RMB7,799 million compared with the end of 2019.
CICC Capital has focused on establishing a unified and open management platform. The family of funds managed by CICC Capital mainly includes government venture capital funds, RMB equity investment funds, USD equity investment funds, M&A funds and infrastructure funds. The industries covered include new generation information technology, biomedicine, cultural consumption, and high-end equipment manufacturing. As of the end of June 2020, the size of assets managed by the domestic and overseas businesses of CICC Capital reached RMB291,415 million in total, making it one of the largest business platforms in the field of private equity investment in China by AUM.
In the first half of 2020, the Wealth Management business realized a revenue of RMB3,534.2 million, representing an increase of 16.2% compared with that in the first half of 2019. In the first half of 2020, the Company seized the market opportunities to consolidate and enhance its position in trading business by leveraging research coverage, optimizing trading system, expanding distribution channel and strengthening synergies, leading to a significant rebound in its trading market share. The Company leveraged its network advantages through integration with CICC Wealth Management to expand coverage of the mass affluent customer base, and utilized financial technologies to explore the wealth management service model with the combination of online and offline channels for its mass affluent customer base. As of June 30, 2020, the number of CICC’s wealth management customers reached 3,389,550, with total customer assets of RMB2,095,429 million.
CICC research team covers global markets and serves clients both at home and abroad through the Group’s offices and platforms across the world. The scope of our research products and investment analysis ranges from macro economy, market strategy, and asset allocation to equities, commodities, and derivatives. As of June 30, 2020, our research team employed more than 100 highly experienced, high-caliber professionals and covered more than 40 sectors as well as over 1,000 stocks listed in the Chinese mainland, Hong Kong SAR, New York, Singapore, Frankfurt and London.