CICC Announces 2020 Annual Results Net Profit Achieves RMB7.21 Billion Increases by 70% Year on Year
In 2020, CICC posted
total revenue and other income of RMB32.40 billion, representing an increase of 42.2% year on year；
net profit(note) of RMB7.21 billion, representing an increase of 70.0% year on year;
weighted average return on net assets of 13.5%.
As of December 31, 2020, the Company had
total assets of RMB521.62 billion, representing an increase of 51.2% compared with that at the end of 2019;
net assets(note) of RMB71.63 billion, representing an increase of 48.3% compared with that at the end of 2019.
China International Capital Corporation Limited ("CICC" or "the Company", 601995.SH, 3908.HK) announced its annual results for the year ended December 31, 2020. As at the end of 2020, the total assets of the Company amounted to RMB521.62 billion, representing an increase of 51.2% compared with that at the end of 2019; net assets(note) amounted to RMB71.63 billion, representing an increase of 48.3% compared with that at the end of 2019. The Company recorded total revenue and other income of RMB32.40 billion, representing an increase of 42.2% year on year; and net profit(note) of RMB7.21 billion, representing an increase of 70.0% year on year, with a weighted average return on net assets of 13.5%.
In 2020, confronted with the impact of COVID-19 pandemic as well as the complex and harsh market environment, CICC has actively coped with the challenges and done well in pandemic control and business operations. By focusing on serving the overall situation of “ensuring six priorities” and “safeguarding the stability in six areas” for steady economic momentum, and implementing the strategic development initiatives, our businesses maintained rapid development, with operating continuously improving efficiency, and we delivered sound returns for our shareholders. Our network and customer coverage was further strengthened, our product and customer service capabilities continuously improved, our business collaboration and digital transformation achieved positive results, and our research and information technology foundation was further strengthened. We continued to explore into domestic market and develop strong cross-border advantages, and strive to enhance our franchise and market influence, so as to significantly accelerate our growth in both scale and strength.
Realizing Comprehensive and High-quality Development in Six Major Businesses
Our investment banking business continued to fully serve the real economy financing. In 2020, our Company ranked first in terms of global IPO underwriting amount by PRC-based issuers, No.2 in terms of A-share IPO underwriting amount, first acting as JGC in terms of Hong Kong IPO underwriting amount, which further consolidated our first-mover advantages in the new economy industry. Our Company ranked fourth among securities firms in terms of onshore bond offerings, and first among Chinese securities firms in terms of the underwriting amount of investment-grade USD bond offerings by PRC-based issuers, making our innovative structured business remain ahead. As for the M&A business, our Company has remained No. 1 on the league table in China, and played a leading role in a number of large-scale industrial restructuring projects for state-owned and private enterprises. Our Company actively grasped the opportunities in the primary market, consolidated our advantages in benchmark projects, and explored innovative financing instruments, so as to provide all-round financing services for deepening the supply-side structural reforms and accelerating the development of the new economy.
Our equities business further consolidated its leading position in the market. In 2020, our equities business maintained development momentum by focusing on the “dual-cycle and dual-capital” platform. We actively expanded institutional coverage, improved our product innovation capabilities, strengthened cross-border business presence, promoted systems development and digitalization, and endeavored to provide the one-stop comprehensive financial services covering “sales, trading, investment and research, products and cross-border business” for domestic and foreign professional investors. In 2020, the prime brokerage business platform in Mainland China improved continuously; the derivative products business achieved rapid customized and standardized development; the stock connect business ranked top and grew steadily in terms of turnover and market share; and the capital introduction business developed steadily and helped expand the ecosystem of institutional customers.
Our FICC business structure and foundation continued to improve. In 2020, our FICC foreign exchange business made breakthroughs and the commodities business grew significantly, which further improved the business structure, forming into the domestic and foreign business system covering interest rate, credit, structuring, commodities and foreign exchange, and contributing to the improvement of our comprehensive service capabilities. In spite of the volatile market environment, our trading business achieved steady investment income by virtue of strong trading and risk control capabilities. In the meantime, the business foundation was further strengthened, as the three platforms of capital, operation and system offered strong support for business development.
The comprehensive service capabilities of our asset management business improved comprehensively. As at the end of 2020, the AUM of the asset management segment exceeded RMB560 billion, representing a significant year-on-year increase of 75%, which further demonstrated our advantages as a comprehensive platform. On the basis of continuously improving the product layout and enhancing the research capability, we made efforts to strengthen the coverage of domestic and foreign institutional customers, and vigorously expand the retail channels and overseas channels, thereby steadily improving the sustainable development capability of our asset management business. The active management capability of CICC Fund Management has been further intensified, and our mutual fund products performed better than those on the market. In the meantime, CICC has made great efforts to seize new business opportunities such as the public offering of REITs proactively, in an attempt to develop a complete product line with CICC features.
We maintained industry-leading position in terms of the total assets under management of private equity investment. As of the end of 2020, the AUM of CICC Capital amounted to over RMB300 billion. We maintained industry-leading position even under the harsh market environment of great fundraising pressure. On the basis of sound business foundation, we positively strengthened cooperation with multinational corporations and large-sized industrial groups, and continued to deepen business presence in key regions. Therefore, our products such as industrial funds, green funds and new special account management funds developed well and our product lines were further enriched. CICC Capital will accelerate the construction of a unified and open management platform to realize resource concentration and management collaboration internally and to form an open platform ecosystem externally.
We achieved remarkable results in transformation and development of our wealth management business. In 2020, our wealth management business grew significantly in terms of product assets, trading market share and total assets in customers’ accounts, with steady improvement of our market competitiveness. The buy-side investment advisory business led the development of the industry, so we tried to improve the assets holding experience of customers through multiple asset allocation approaches; as the hierarchical service system for customers was further improved, the scale of our private wealth management business expanded rapidly; as the digital transformation continued to advance, we made great breakthroughs in the technology-driven customer service systems. The continual improvement of our professional products and service systems has laid a solid foundation for the all-round transformation and development of our wealth management business.
Continuing to Realize Solid Progress in Research and Information Technology
Our research work helped enhance the market influence at home and abroad. Our research business focused on the global market, and provided comprehensive research services and investment analysis covering macro-economy, market strategy, fixed income, asset allocation, stocks, commodities and derivative products for domestic and foreign customers. These research products were widely recognized by the investors at home and abroad for their independence, objectivity and thoroughness. In 2020, a number of in-depth research reports aroused strong response from the market, and remarkable business development results were achieved driven by research. CICC Global Institute was established as a new think tank to contribute more CICC research wisdom to public policy-making and financial market development.
Information technology continued to strengthen our business support capabilities. In 2020, our IT organizational structure was further improved. We established dedicated teams to support main business lines to strengthen business interaction and integration, and to enhance the response capability and efficiency of IT personnel. The front, middle and back office information systems were further enhanced to fully improve our online and digital operation and management level, and to support the plan for remote and shared office. We seized the opportunities arising from digital transformation to accelerate the optimization of IT governance system, the construction of integrated management platform and the integration of system and data. Therefore, the supporting capability and driving effect of science and technology for business development were continuously enhanced.
Capital Operation and Integration
The Company attaches great importance to capital operation and regards it as an important approach for realizing rapid development. In November 2020, the Company accurately grasped the market window to complete the listing of A Shares, and raised total proceeds of RMB13 billion, further expanding our capital strength. In the future, the Company will make overall use of the “A+H” dual financing platform to fund the sound and rapid development of our businesses.
We established Jinteng Technology, a joint venture technology company, as an important vehicle to invest in financial technology. In June 2020, CICC and Tencent set up a joint venture financial technology company named Jinteng Technology, which set a precedent in the domestic securities industry. Jinteng Technology and CICC Wealth Management jointly carried out targeted marketing to affluent customers through data-based operations, in an attempt to explore a new operating model combining both online and offline activities.
We further promoted the integration of wealth management businesses to materialize potential synergy. In 2020, the wealth management segment was well integrated, as the integration of OTC trading system was implemented, and the integration of personnel management was accelerated. The Company will steadily promote the “1+1>2” integration effect by continuously focusing on systerms integration and management mechanism innovation.
2021 will be a critical year for CICC to deepen strategy implementation and digital transformation. The Company will focus on the “Three + One” strategies, i.e. “digitization, regionalization and internationalization” and “One CICC”, and strive to enter a higher stage of development in terms of both scale and quality by increasing resource investment, improving network layout, accelerating transformation and development, and consolidating the middle and back-office capabilities.
Note：Net assets refer to total equity attributable to shareholders of the Company.Net profit refers to net profit attributable to shareholders of the Company.