HTSC 2020 Net Profits Grow 20.23% to Record High

Mar 24, 2021 11:08 JST

Source: Huatai Securities Co., Ltd.

Accelerated Digital Transformation Augments Core Advantages

HONG KONG, Mar 24, 2021 - (ACN Newswire) - HTSC (stock code: 6886.HK; "the Company") announced its annual results for the year ended December 31, 2020. The Company hit a record-high revenue and profit in 2020. It achieved RMB 40.53 billion in total revenue and other gains with a year-on-year increase of 24.96%. Profit for the year attributable to shareholders increased 20.23% to RMB 10.82 billion. The Board has recommended the payment of a final dividend for 2020 of RMB 0.40 per share.

In 2020, the Company's technology-empowered "two-pronged" development strategy of wealth management and institutional services continued to thrive and create value. Since the launch of this strategy in 2019, HTSC has made great strides in leveraging cutting-edge technology to transform the Company's business systems and operation models through platformization and digitalization. Further advancements in the digital wealth management space continued to prosper, while the Company's institutional services has leapt forward to emerge in a new digital frontier, tremendously amplifying core strengths and greatly increasing competitiveness.

Technology-empowered Wealth Management Continues to Prosper
During the year, ZhangLe Wealth, HTSC's flagship wealth management App, has continuously been upgraded and optimized to address the evolving needs of customers. The number of monthly active users also set a new securities industry record, exceeding 10 million in July 2020, and continuing to lead the industry for the fifth consecutive year. ZhangLe Wealth is now fully integrated with the Company's investment advisory cloud system, providing investment advisors with a platform that greatly supports their decision making and improves their work efficiency. Meanwhile, ZhangLe Global now enables users to tap into the Hong Kong and US stock markets with various offerings.

These ongoing enhancements have not gone unnoticed in the market. HTSC saw 3.23 million new clients in 2020, and now boasts a total base of over 17 million. Total assets of client accounts grew significantly to RMB 4.47 trillion, up 41% year-on-year, while the scale of financial products sold increased by 88% year-on-year, amounting to RMB 705.33 billion. Buoyed by this surge in new users, HTSC's trading volume of stocks and funds was RMB 34.19 trillion, an increase of 66% year-on-year, maintaining the securities industry's top spot .

HTSC's US subsidiary AssetMark - a leading US turnkey asset management platform (TAMP) and another advanced digital platform within the Company's arsenal - also grew steadily, with total assets under management reaching USD 74.52 billion at the end of 2020, up 20.96% year-on-year, bolstering HTSC's global revenue.

Digitalization of Institutional Services Advances to New Frontier

The advent of the global COVID-19 pandemic hastened the digital transformation and platformization of HTSC's institutional services, further augmenting the Company's core advantages and adding new value to the overall business chain.

The value of HTSC Connect App, developed for institutional services, was prominently featured amid the ongoing pandemic. HTSC Connect is an open platform which features online application of IPOs, private placement and convertible bond deals, client engagement in research activities, and customization of financial products. These offerings and services were widely accepted by institutional clients, with registered users of HTSC Connect increasing 24-fold by the end of 2020 compared to the previous year, and more than 200 roadshow livestreams were conducted for listed companies.

The Company's advanced digital platforms have bolstered the competitiveness of HTSC's securities lending business, significantly augmenting the balance of the business, which increased by 984.97% year-on-year, to reach RMB 25.41 billion and gain 18.55% of the market share.

HTSC's investment trading business also benefited from the ongoing digital transformation and platformization, as evidenced by the industry leading OTC derivatives and OTC options trading volume in 2020.

Growing Financial Services Capabilities & Fruitful New Economy Projects

The Company has continued to develop its robust financial services ecosystem. HTSC sponsored 44 STAR Market listings in 2020, ranking second in the industry . And from 2015 to 2020, the number of approved M&A applications and registrations by the Company to the CSRC was 99, ranking first in the industry . The Company's principal underwriting for bonds increased by about 69% compared with 2019, ranking fifth in the industry .

Following HTSC's own inaugural listing via the Shanghai-London Stock Connect in 2019, the Company continued to further its GDR experience by participating in the GDR issuances of CPIC and SDIC Power successively. This resulted in HTSC being the only Chinese securities company so far with both GDR issuance and underwriting experience.

The Company has also been deeply immersed in China's new economy over the years and these opportunities continue to bear fruit. Since 2015, the Company has worked with WuXi App Tech on a wide range of projects including its US stock privatization as well as its Shanghai and Hong Kong IPOs. In 2020, HTSC furthered its support of China's new economy by facilitating WuXi App Tech in securing over RMB 10 billion in equity financing. HTSC's 2017 investment in RemeGene has been similarly fruitful, with the Company being the only Chinese sponsor for its Hong Kong IPO in 2020.

Furthermore, the Company continued to improve its ESG (Environment, Social and Corporate Governance) management system in 2020. HTSC provided financing services for technologically innovative and environment-friendly enterprises, while promoting the development of green finance. In 2020, the Company underwrote 27 green bonds with a total financing scale of RMB 22.12 billion.

The Company's corporate philanthropic project "Yixin Huatai" deepened its work in protecting the Yangtze River basin ecology and enhancing education quality in rural areas. HTSC also gave full play to its professional expertise in the fight against COVID-19 early in 2020, establishing a special public health fund to financially support industries and enterprises in key regions, while promptly donating pandemic prevention equipment to hospitals in Hubei Province for emergency workers, journalists and other pandemic frontline workers.

Zhou Yi, CEO of HTSC said: "Standing at the new starting point of the 30th anniversary, we are firmly convinced that technology is a key variant in breaking traditions and triggering the reform of business models. We will continue to deepen the technology-empowered 'two-pronged' strategy, refine the full-service chain system with the platform-based and ecological development philosophy and build unique brand and competitiveness."

For enquiries, please contact:
Citigate Dewe Rogerson
Benny Liu
Tel: +86 10 6567 5056
Linda Pui
Tel: +852 3103 0118
Email: HTSC@citigatedewerogerson.com

Source: Huatai Securities Co., Ltd.
Sectors: Daily Finance