中国国际金融股份有限公司

China International Capital Corporation Limited

 (A joint stock limited company incorporated in the People’s Republic of China)

 (Stock Code: 3908)

CICC Announced 2015 Annual Results

Net Profit Achieved RMB1.95 Billion Increased by 74.6% Compared to the Same Period Last Year

(30 March 2016 - Beijing) China International Capital Corporation Limited (“CICC” or “the Company”) announced the details of its annual results for the twelve months ended December 31, 2015. In 2015, the Company reported record high revenue and net profit. In 2015, the Company achieved a total revenue and other income of RMB9.51 billion, representing an increase of 54.4% year on year; and net profit of RMB1.95 billion, representing a year-on-year growth of 74.6%. The weighted average return on net assets stood at 20.4%, representing an increase of 5.3 percentage points year on year.

In terms of capital strength, by virtue of its successful listing of H shares and the profit achieved in 2015, net assets of the Company at the end of 2015 reached RMB16.44 billion, representing an increase of 105.7% over 2014. 

After years of effort, the Company today has a more diversified business structure with a more balanced revenue mix. Its five business lines of Investment Banking, Equity Sales and Trading, FICC, Wealth Management and Investment Management, are dynamically complementary to one another and the Company’s reliance on the traditional brokerage business is significantly lower than peers. The comprehensive business lines will help CICC to better capture development opportunities and enable it to adapt to all macroeconomic environments and market pressures.

Traditional Business Maintained the Market Leading Position

In 2015, the Company’s Investment Banking seized the opportunity arising from SOE reform and industrial restructuring to maintain its leading position in major transactions, and also actively developed business opportunities in emerging industries and the private sector to further enhance its market influence. In 2015, CICC ranked first, second and fifth respectively in M&A of PRC-based enterprises, Hong Kong IPOs of PRC-based enterprises and domestic bond underwritings. The Company became the first investment bank to advise on PRC M&A transactions totaling over US$ 100 billion.

Initial Success of Transformation towards On-balance Sheet Service Business

In 2015, revenue from Equity Sales and Trading of the Company increased significantly while the revenue structure was substantially improved, with positive progress made in transforming the business model from research-centric brokerage towards comprehensive “sales, product, and trading” financial services. For FICC, the Company integrated trading, sales, debt capital markets, product design, fixed income research and futures platforms, to provide clients with customized structured products and solutions.

Wealth Management and Investment Management Business Maintained Rapid Growth

Wealth Management and Investment Management businesses are important growth drivers of the Company going forward. Being a strategic focus of the Company, and also benefiting from the robust trading activities in 2015, these two segments recorded revenue growth of 101.7% and 77.3% respectively, which collectively accounted for 29.2% of the Company’s total revenue and other income, becoming an important revenue contributor to the Company.

Cross-border Service Capability was Further Enhanced

In the past year, the Company has strengthened overseas bond and block trade businesses, to further enhance its cross-border sales capability. The Company has successfully expanded the scope of trading to more major markets, and has continued to consolidate its leadership in areas such as QFII, RQFII and Shanghai-Hong Kong Stock Connect. The Company has accelerated expansion of the wealth management platform in Hong Kong, so as to enable the Company to better capture the business opportunities brought about by the trend of global wealth allocation. In 2015, the Company’s overseas revenue maintained steady growth, at RMB1.76 billion.

Mid-and-back-office Functions were Strengthened

In 2015, the Company has increased investment in the building of IT systems and the IT team, with a focus on development and improvement of the global OTC derivatives technical trading support platform, the Hong Kong market internet trading system, the prime broker (PB) technical support platform, to provide strong technical support for business innovation globally. The Company also began to establish a balance sheet management system, to improve resource utilization efficiency and operational stability. The Company always adhered to the most stringent risk control and compliance practices, and stayed clear of major risks and compliance incidents throughout the year.

Looking forward, CICC will focus on both organic growth and potential M&A opportunities, to reinforce advantages in traditional business, continue to expand client base, sharpen focus on capital-based business, and increase investment in mid-and-back offices, and will further improve quality, expand scale and operate soundly.

Mr. Ding Xuedong, Chairman of CICC, said, “2016 is the debut year of the central government’s ‘13th Five-year Plan’ and a new launching point for CICC. We believe that as the economy enters into a ‘New Normal’ era featuring increased structural reform, the capital markets will play an increasingly important role. With the overwhelming trend of internet finance, more innovative explorations are expected to take place in the securities industry. Facing change, CICC will continue to build upon the extensive and quality base of people, franchise, shareholders, and clients, and establish ourselves as a China-headquartered, internationally renowned full service investment bank.”