EQS-Announcement
GF Securities Announces 2019 Interim Results
30/08/2019 / 00:31 UTC+8
The issuer is solely responsible for the content of this announcement.
*To: Business Editor [For Immediate Release]*
*GF Securities Announces 2019 Interim Results*
*Comprehensive Financial Services Leading the Industry with*
*Balanced Structure and Development of Multiple Business Lines*
(29 August 2019, Hong Kong) *GF Securities Co., Ltd. *("*GF Securities*" or
the "*Company*", together with its subsidiaries, the "*Group*"; *HKSE:
1776;* *SZSE: 000776*), one of the most influential securities companies in
China, announces its interim results for the six months ended 30 June 2019
(the "*Reporting Period*"). During the Reporting Period, the Group's total
revenue and other income recorded RMB15,655 million, representing a
year-on-year increase of 37.08%. The net profit attributable to owners of
the Company rose by 44.84% year-on-year to RMB4,140 million. As of the end
of June 2019, several of the Group's main operating indicators still ranked
in the forefront of the industry, with its total assets, net assets,
operating revenue and net profit ranking top 5.
*Investment banking business segment: industry-leading position in equity
financing and significant growth in debt financing*
During the first half of 2019, under the macro environment of comprehensive
reform such as the launch of SSE STAR Market and the pilot
registration-based IPO system for the issuance of shares, the Company kept
up with changes in policies and continued to take advantage of its strength
in its balanced and versatile investment banking business to expand the
coverage of leading enterprises in major industries. The Company formed a
dedicated group for the SSE STAR Market business to coordinate and actively
expand the reserve of technology innovative enterprises that meet the
requirement of the SSE STAR Market. During the Reporting Period, the Company
continued its industry-leading position in equity financing business by
completing 14 equity financing projects, for which it acted as a lead
underwriter, ranking 3rd in the industry. The equity financing lead
underwritten amount was RMB12.234 billion, ranking 6th in the industry.
Among these projects, the Company acted as a lead underwriter for 3 IPOs,
ranking 5th in the industry and the lead underwritten amount was RMB1.043
billion.
For the debt financing business, the Company continued to make firm progress
in its strategic transformation, focus its strength on developing premium
customers, and gradually optimize the structure of its clients and business.
By continuing to enhance comprehensive risk management, the Company
strengthened risk control efforts, and promoted the sustainable and steady
development of debt financing business. During the Reporting Period, the
Company acted as the lead underwriter for 78 tranches of bond offerings,
with a total lead underwritten amount of RMB78.429 billion, representing a
year-on-year increase of 178.29%.
*Wealth management business segment: Going Deep in FinTech and forging
competitive edges in products and systems*
During the Reporting Period, under the circumstances of stricter regulatory
requirements in the industry and continuous decrease in commission rate,
securities and firms faced increasing competition in respect of customer
acquisition, customer suitability, product structure, service model and
attracting outstanding talents. Faced with fierce market, GF Securities
continued to establish a customer demand-driven wealth management product
system and promote business development and transformation, by taking wealth
management, institutional brokerage, technological finance and integration
as the four driving forces and taking the compliance risk control and system
reform as its forceful support.
The Company achieved good results by continuing to go deep in its scientific
and technological financial model and consistently enhancing its scientific
and technological financial capability. As of the end of the Reporting
Period, the number of the Company's mobile-phone securities users exceeded
25.33 million, representing an increase of approximately 15% as compared to
the end of last year. During the Reporting Period, the sales and transfer
amount of products of the Yitaojin (???) E-commerce platform amounted to
RMB203.4 billion, and the Company's trading volume of shares and fund
products increased by 25.97% year-on-year to RMB6.16 trillion (bilateral
statistics).
*Trading and institution business segment: capture market opportunities with
adherence to value investment *
During the first half of year, amid the significant fluctuation in the A
Share market, GF Securities adhered to the idea of value investment and
focuses on blue chip stocks investments, which contributes to the yield rate
of the Company's equity and derivatives trading business exceeding that of
index. Meanwhile, leveraging on its professional services and extensive
industry experience, the Company obtained the approval of business
qualification of lead market-maker for listed funds from SSE for the first
time in March 2019.
Furthermore, the Group's trading and institution business segment also
includes fixed income sales and trading business, OTC sales and trading
business, alternative investment business, investment research business and
asset custody business. With close eyes on the industrial trend, the Company
firmly seized the opportunities in different periods to achieve favorable
development in business. For instance, the Group carried out alternative
investment business with its own funds through GF Qianhe, a wholly-owned
subsidiary. During the Reporting Period, GF Qianhe completed an aggregate of
12 equity investment projects with an amount of RMB616 million. And the the
total asset scale of asset custody and fund service business provided by the
Company as at the end of June 2019 was RMB209.463 billion, representing an
increase of 12.21% as compared to the end of 2018.
*Investment management business segment: well-positioned to achieve quality
growth*
For the investment management business segment, the Group carried out asset
management business, public fund management business and private fund
management business through its controlled subsidiaries and associate
companies, being well positioned and obtaining a number of qualifications in
China. Among all, for the asset management business, GF Asset Management,
which is under the Group, steadily progressed with transformation to
high-quality organic growth under the direction of new policies in relation
to asset management. As of June 30, 2019, the scale of specific asset
management schemes of GF Asset Management increased by 33.01% as compared
with December 31, 2018 and the total asset management fee income grew to
RMB752 million for the Reporting Period from RMB632 million for the same
period last year.
For the public fund management service business, E Fund, of which the
Company held 25% equity interest and being one of the three parallel largest
shareholders, and GF Fund, a subsidiary of which the Company held 51.135%
equity interest, ranked the 1st and the 8th respectively in the industry in
terms of the total fund size excluding money market funds and short-term
wealth management bond funds. The Group mainly engages in private fund
management business through its wholly owned subsidiary GF Xinde. During the
Reporting Period, GF Xinde and the funds under its management have completed
various equity investment deals, with the investment amount of billions.
*Mr. Sun Shuming, the Chairman of GF Securities Co., Ltd.*, said: "During
the first half of year, we closely monitored the trends in the market and of
policies, and actively to adjust our business strategies accordingly to
realize balanced development of different business lines, thus remaining our
leading position of major indicators in the industry. Looking forwards, we
will continue to adhere to our management philosophy of 'stable growth,
continual innovations, performance driven culture and business strategies',
and give a full play to the synergies of our associate companies and
subsidiaries, with an aim to realize continuous, healthy and stable
development in comprehensive financial services, and maximize the return to
shareholders."
- 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 (Stock code: 000776.SZ), and the Hong
Kong Stock Exchange (Stock code: 1776.HK), in 2010 and 2015, respectively.
Relying on excellent business performance, risk management and quality
services, the company achieves sustained and steady development, and is one
of the most influential securities companies in China. The Company possesses
industry-leading innovation capabilities and has built a diversified
business portfolio serving various corporations, individuals, institutional
investors, financial institutions and governments. As of December 31, 2018,
the Company operates 264 brokerage branches, providing extensive national
coverage to 31 provinces, cities, and autonomous regions throughout China.
For four consecutive years in 2015 and 2018, GF Securities ranked in the
forefront of "Hurun's Top Brands List" amongst listed Chinese securities
companies. The Company is actively committed to social responsibility and
caring, focusing on education and poverty through "GF Securities Social
Charity Foundation", and as a result has enjoyed a continuously growing
reputation and an influential brand.
The press release is issued by *Porda Havas International Finance
Communication Group* on behalf of GF Securities Co. Ltd. For enquiries,
please contact:
*Porda Havas International Finance Communication Group*
Ms. Angela Shi +852 3150 6778 angela.shi@pordahavas.com
Ms. Tracy Chen +852 3120 6514 tracy.chen@pordahavas.com
Fax: +852 3150 6728
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August 29, 2019 12:31 ET (16:31 GMT)
