DJ EQS-Announcement: GF Securities Announces its 2017 Annual Results
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EQS-Announcement
GF Securities Announces its 2017 Annual Results
24/03/2018 / 16:10 UTC+8
The issuer is solely responsible for the content of this announcement.
*For Immediate Release 24 March 2018*
*??????????
GF SECURITIES CO., LTD.*
(A joint stock company incorporated in the People's Republic of China with
limited liability)
(Stock Code: 1776.HK; 000776.SZ)
*GF Securities Announces its 2017 Annual Results *
(March 24, 2018, Hong Kong) *GF SECURITIES CO., LTD. *("GF Securities" or
the "Company", stock code: 1776.HK; 000776.SZ, the Company and its
subsidiaries, the "Group") is pleased to announce its annual audited and
consolidated results for the year ended December 31, 2017 (the "Reporting
Period").
In 2017, facing complicated capital market conditions and the industry
regulatory environment, GF Securities insisted on the principle of changing
according to circumstances, thereby speeding up the pace of business
transformation and manage reformation. By continuously consolidating
existing advantages, upgrading business layers, optimizing resource
allocation, the Company steadily build a competitive edge in the entire
business chain and showed an overall spiraling growth trend. The Company
successfully managed to achieve impressive results in the market condition
characterized with improved economic fundamentals and tight liquidity.
Various major operation indicators continued to rank among the top in the
industry, which created good returns for its shareholders. As at the end of
2017, total assets of the Group amounted to RMB356,905 million; During the
Reporting Period, total revenue and other income of the Group was RMB28,614
million with a year-on-year increase of 4.10%, net profit attributable to
owners of the Company was RMB8,595 million with a year-on-year increase of
7.04%.
The principal business of the Group can be divided into four segments,
namely investment banking business, wealth management business, trading and
institution business and investment management business. During the
Reporting Period, the total revenue and other income from the investment
banking business segment was RMB2,766 million; the total revenue and other
income from the wealth management business segment was RMB11,306 million;
the total revenue and other income from the trading and institution business
segment was RMB7,018 million, representing a year-on-year increase of
15.53%; and the total revenue and other income from the investment
management business segment was RMB6,793 million, representing a
year-on-year increase of 12.27%.
*Investment Banking Business Segment Enjoyed Industry-leading Position *
In 2017, in order to adapt to the changes in economic structure, market
environment and regulatory policies, the Company continued to consolidate
its advantages in the field of high-quality small and medium-sized
enterprise customers and increased its efforts in securing large customers.
At the same time, the Company continued to promote cross-border investment
bank business and strive to enhance the international competitiveness of
investment banking business. During the Reporting Period, the Company
completed 61 equity financing projects for which the Company acted as a lead
underwriter, ranking 1st in the industry. Among these projects, the Company
acted as a lead underwriter for 33 IPOs, ranking 1st in the industry and the
lead underwritten amount was RMB16.965 billion, ranking 2nd in the industry.
During the Reporting Period, the Company's commission and fee income from
stock underwriting and sponsoring business was RMB1,455 million,
representing a year-on-year increase of 22.31%.
During the Reporting Period, there was an overall growth in the market of
the M&A and restructuring. The Company acted as a financial advisor for 16
material asset restructurings (including the CSRC M&A and Restructuring
Committee approved projects and non-administrative material asset
restructuring projects), ranking 3rd in the industry, the transaction amount
completed was RMB85.248 billion, and ranking 2nd in the industry. The
Company recorded the commission and fee income from the M&A and
restructuring financial advisory business of RMB313 million during the
Reporting Period, representing a year-on-year increase of 4.66%. M&A and
restructuring financial advisory service of the Company was graded as "A" by
the Securities Association of China for 3 consecutive years.
*Wealth Management Business Segment Achieved Reformation Derived by Four
Driving Forces *
During 2017, the Company continued reform of retail business. Taking
technological finance, wealth management, institutional brokerage and
integration as the four driving forces, the Company adhered to the principle
of customer focus, established customer demand-driven wealth management
products system, built customer service system of private banks, optimize
the layout and continuously promoted business transformation. The Company's
self-developed Beta Bull (???) smart investment advisory system phase II was
launched in 2017. Beta Bull has obtained the 2017 Smart Investment Advisory
Pioneer Brokerage Award by the International Finance News
(«?????»2017??????????), the Significant Contribution Award for Product
Innovation by the Financial Computerizing magazine («???????»???? ?????),
the Best Innovation Award for Financial Technology Product by the American
Institutional Investors (??«?????»???????????) and etc. The Company
continued to deepen the layout in the field of artificial intelligence and
mobile transaction terminals, completed the establishment of "Smart GF????",
a smart application strategy support platform and released a number of smart
applications such as "Smart Customer Service????", "Smart Voice
Assistant??????" and "Accurate Information????". As of the end of the
Reporting Period, the number of mobile-phone securities users exceeded 15.73
million, representing a year-on-year increase of over 50%, which gradually
became an important account opening channel; the number of subscribers of
the Company's WeChat account was over 3.17 million; during the Reporting
Period, the sales and transfer amount of products of the Yitaojin E-commerce
platform amounted to RMB115.7 billion.
In 2017, the balance of margin financing and securities lending business
experienced a volatile rise. As at the end of 2017, the closing balance of
the Company's margin financing and securities lending business was RMB56.003
billion, representing a year-on-year increase of 3.55% as compared to the
end of 2016; and the market share was 5.46%, ranking 5th in the industry on
a combined basis. During the Reporting Period, the Company recorded interest
income from the margin financing and securities lending business of RMB
4,107 million.
*Trading and Institution Business Segment Maintained Steady Revenue Growth*
In 2017, the company seized structured investment opportunities and achieved
impressive investment returns. In the meantime, the Company was awarded the
highest annual AA rating of the SSE 50ETF for options market-making business
and monthly AA rating for funds market-making business several times. During
the Reporting Period, the Company recorded net investment gains from the
equity and derivatives trading business of RMB1,517 million, realizing a
significant year-on-year increase. The Company provides high-quality asset
custody and fund services business for various asset management products, as
at the end of 2017, the total asset scale of asset custody and fund service
business provided by the Company was RMB150.847 billion, representing a
year-on-year increase of 44.50%. In addition, the Company vigorously expands
the FICC business and builds an overseas FICC investment platform mainly
through GF Global Capital, its indirect wholly-owned subsidiary, with the
assets allocated to 20 countries and regions including Asia, Europe and the
United States of America, covering the diversified investment fields
including bonds and structured products. During the Reporting Period, the
Company was one of the first batch of companies which obtained the "Bond
Conned" quotation bureau qualification and acquired the qualification of
inter-bank gold price inquiry transaction of Shanghai Gold Exchange.
The outstanding research capacity of the Company always enjoys a high
reputation. The Company's equity research covers over 750 listed companies
in the PRC in 26 industries, and over 50 companies listed on the Hong Kong
Stock Exchange. The Company's research team ranked No.1 in the "Best Local
Research Team", macroeconomic research and six industry studies for 2017 of
New Fortune. During the Reporting Period, the total revenue and other income
from the investment research business of the Company was RMB342 million,
representing a year-on-year increase of 13.78%.
*Investment Management Business Segment Realized Transformation with Organic
Growth*
In 2017, under the general regulatory direction of reducing leverage risk,
reducing channels and turning back to the original business, GF Asset
Management steadily progressed with transformation to high-quality organic
growth, such as active management, and gradually boosted core
competitiveness. The Company carries out asset management business through
its subsidiaries, namely GF Asset Management, GF Futures and GF Asset
Management (Hong Kong). During the Reporting Period, management fee income
from the asset management business of the Group was RMB1,647 million, in
which the management size of collective schemes of GF Asset Management
ranked first and the active management size ranked second as at the end of
2017.
The Group carries out public fund management services mainly through its
controlled subsidiary, GF Fund, and associate company, E Fund. As at the end
of 2017, the publicly offered funds managed by GF Fund have reached
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March 24, 2018 04:11 ET (08:11 GMT)
RMB279.938 billion, and achieved the total revenue and other income of RMB2,957 million, representing a year-on-year increase of 15.88%; the net profit was RMB948 million, representing a year-on-year increase of 22.12%. While the publicly offered funds managed by E Fund have reached RMB607.672 billion, representing an increase of 41.88% as compared to the end of 2016, and the total fund size excluding money market funds was RMB288.210 billion, ranking first in the industry. The Group mainly engages in private fund management business through its wholly-owned subsidiary GF Xinde and achieves the remarkable development. As at the end of 2017, GF Xinde set up and managed 35 private funds. The total size of customers' assets under management amounted to RMB9.329 billion. During the Reporting Period, GF Xinde realized the total revenue and other income of RMB1,413 million, representing a year-on-year increase of 124.74%; the net profit was RMB932 million, representing a year-on-year increase of 341.15%. 2017 is the year for the Company's completion of the last round five-year strategic plan and the starting of a new round of five-year strategic plan. In the future, under the mission of "Becoming a Modern Investment Bank with International Competitiveness, Brand Influence and Systemic Importance", the Company will continuously uphold its core values of "inquisitiveness, integrity, client focus and teamwork", and carry out the management philosophy of "stable growth, continual innovations, performance-driven culture and business strategies". Furthermore, the Company insists on "customer-oriented" as the consistent strategic guideline, and comprehensively promote the transformation and upgrade of all business strategies to seek further sustained, healthy and stable development, thereby maximizing customers' interests and bringing greater returns to the shareholders of the Company. *- End -* *About GF Securities Co., Ltd.* Established in 1991, GF Securities is one of the first, full-service investment banks in China. The Company was successfully listed on the main boards of the Shenzhen Stock Exchange (000776.SZ), and the Hong Kong Stock Exchange (1776.HK), in 2010 and 2015, respectively. As of December 31, 2017, the Company had a total of 20 branches and 264 securities brokerage branches, covering 31 provinces, municipalities, and autonomous regions in China. The Company is a provider of comprehensive capital market services focused on serving China's quality SMEs and affluent individuals. The Company possesses industry-leading innovation capabilities and has built a diversified business serving the varying needs of corporations, individuals, institutional investors, financial institutions and government clients. GF Securities is an industry leader across the entire spectrum of its core business lines: investment banking, wealth management, trading and institution, and investment management. GF Securities continues to be an industry leader in terms of capital strength and profitability, with a market capitalization surpassing that of many of its domestic peers. This press release is issued byWonderful Sky Financial Group Limited on behalf of *GF Securities Co., Ltd.* For further information, please contact: *Wonderful Sky Financial Group Limited* Serana Liu / Suki Feng Tel:(852) 3970 2198 / (852)3970 2271 Fax:(852)2598 1588 Email: gfs@wsfg.hk Document: http://n.eqs.com/c/fncls.ssp?u=BICIQPGEPR [1] Document title: GF Securities Announces its 2017 Annual Results 24/03/2018 Dissemination of an Announcement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. Media archive at www.todayir.com 1: http://public-cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=47c76a05de9a521b0b8cd7882cf85008&application_id=668417&site_id=vwd&application_name=news
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March 24, 2018 04:11 ET (08:11 GMT)
