中泰证券(600918) - 2021 Q2 - 季度财报

Company Profile and Key Financial Indicators This section covers the company's comprehensive business qualifications, key financial performance metrics, and specific items like non-recurring gains/losses and fair value measurements Company Information and Business Qualifications ZT Securities is a comprehensive securities firm with complete business licenses, including its parent company and subsidiaries, covering brokerage, investment banking, asset management, futures, and international business, and recently obtained new qualifications for debt financing and fund investment advisory services - The company's business scope is broad, encompassing core services such as securities brokerage, investment consulting, underwriting and sponsorship, proprietary trading, margin financing and securities lending, and fund distribution and custody[12] - The company holds comprehensive business licenses in asset management, futures, and international financial services through its subsidiaries, including ZT Asset Management, Luzheng Futures, and ZT International[14][15][16] - During the reporting period, the company obtained qualifications as a lead underwriter for non-financial enterprise debt financing instruments and a pilot qualification for fund investment advisory business, further expanding its business scope[31] Key Accounting Data and Financial Indicators In H1 2021, the company achieved operating revenue of CNY 5.76 billion, a 19.96% increase, and net profit attributable to parent company shareholders of CNY 1.70 billion, up 22.99%, while net cash flow from operating activities significantly decreased by 79.61% Key Accounting Data for H1 2021 | Key Accounting Data | Current Period (Jan-Jun) (CNY) | Prior Period (CNY) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 5,760,832,968.28 | 4,802,218,063.26 | 19.96 | | Net Profit Attributable to Parent Company Shareholders | 1,701,173,015.28 | 1,383,125,268.50 | 22.99 | | Net Profit Attributable to Parent Company Shareholders (Excluding Non-Recurring Items) | 1,646,169,554.34 | 1,361,164,731.90 | 20.94 | | Net Cash Flow from Operating Activities | 1,292,608,332.47 | 6,339,807,671.68 | -79.61 | | Item | End of Current Period (CNY) | End of Prior Year (CNY) | YoY Change (%) | | Total Assets | 183,825,778,245.93 | 174,509,560,415.70 | 5.34 | | Equity Attributable to Parent Company Shareholders | 34,888,807,975.59 | 33,278,256,110.96 | 4.84 | Key Financial Indicators for H1 2021 | Key Financial Indicators | Current Period (Jan-Jun) | Prior Period | Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (CNY/share) | 0.24 | 0.19 | 26.32% | | Diluted Earnings Per Share (CNY/share) | 0.24 | 0.19 | 26.32% | | Weighted Average Return on Net Assets (%) | 4.99 | 4.27 | Increased by 0.72 percentage points | | Weighted Average Return on Net Assets (Excluding Non-Recurring Items) (%) | 4.83 | 4.20 | Increased by 0.63 percentage points | Parent Company Net Capital and Risk Control Indicators (End of Reporting Period) | Item | End of Current Period (CNY) | End of Prior Year (CNY) | | :--- | :--- | :--- | | Net Capital | 27,209,956,406.39 | 25,657,836,200.06 | | Net Assets | 33,708,666,060.60 | 32,312,053,757.79 | | Risk Coverage Ratio (%) | 241.81 | 231.59 | | Capital Leverage Ratio (%) | 16.55 | 16.64 | | Liquidity Coverage Ratio (%) | 610.28 | 243.62 | | Net Stable Funding Ratio (%) | 153.74 | 149.74 | Non-Recurring Gains and Losses During the reporting period, the company's total non-recurring gains and losses amounted to CNY 55.00 million, primarily from disposal gains on non-current assets and government subsidies Non-Recurring Gains and Losses Items for H1 2021 | Non-Recurring Gains and Losses Item | Amount (CNY) | | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | 41,855,369.79 | | Government Subsidies | 11,112,000.75 | | Other Non-Operating Income and Expenses | 3,888,184.05 | | Total | 55,003,460.94 | Fair Value Measurement Items At the end of the reporting period, items measured at fair value primarily included trading financial assets, other debt investments, and other equity instrument investments, collectively impacting current period profit by CNY 1.60 billion Fair Value Measurement Items: Period-End Balance and Impact on Current Period Profit | Item Name | Period-End Balance (CNY) | Impact on Current Period Profit (CNY) | | :--- | :--- | :--- | | Trading Financial Assets | 44,830,293,706.25 | 842,423,503.81 | | Other Debt Investments | 19,521,884,477.32 | 424,952,522.40 | | Other Equity Instrument Investments | 3,733,979,518.77 | 258,166,909.24 | | Derivative Financial Instruments | 82,271,288.36 | 72,544,667.87 | | Total | - | 1,603,263,632.31 | Management Discussion and Analysis (MD&A) This section provides an in-depth analysis of the company's industry landscape, core competencies, detailed operational performance across various business segments, and a comprehensive risk assessment Industry and Principal Business In H1 2021, China's stable economic recovery and deepening capital market reforms created a favorable environment for the securities industry, enabling the company to provide comprehensive investment and financing services across various business areas - In H1 2021, capital market trading activity increased, with stock and fund transaction volume growing by 21.07% year-on-year, providing a favorable environment for securities firm business development[30] - The company's principal businesses are comprehensive, including investment banking, wealth management, institutional business, investment business, credit business, asset management, international business, and futures business, meeting diverse client financial service needs[31][32] Core Competitiveness Analysis The company's core competitiveness stems from its clear "1142" strategy, enhanced regional market presence, client-centric comprehensive financial services, robust risk control, and strong financial technology support - The company established its “one leadership, one center, four major strategies, and two supports” overall development strategy, and formulated its 14th Five-Year Plan[34] - Implementing a regional breakthrough strategy of “deeply cultivating Shandong, deploying heavily in the South, and strengthening Beijing,” the company maintained its leading market share in Shandong and achieved rapid development in the Yangtze River Delta, Pearl River Delta, and Beijing regions[35] - Wealth management served 6.96 million accounts and obtained pilot qualification for fund investment advisory; investment banking achieved historically best market rankings in multiple indicators[36] - The company continuously increased technology investment, with its self-developed XTP high-speed trading system serving nearly 300 private equity firms, contributing over CNY 5 trillion in annual trading volume and driving wealth management business transformation[39] Operating Performance of Business Segments In H1 2021, all business lines achieved steady growth, with investment banking completing 16 equity underwriting projects, wealth management client assets reaching CNY 971.25 billion, and significant growth in asset management, international, and futures businesses Investment Banking Business Investment banking performed strongly in H1, completing 16 equity underwriting projects with a scale of CNY 11.42 billion, ranking 7th in the industry, and 328 bond underwriting projects totaling CNY 71.41 billion, ranking 13th - A total of 16 equity lead underwriting projects were completed, including 7 IPOs and 9 private placements, with a combined underwriting scale of CNY 11.42 billion, ranking 7th in the industry for financing scale[41] - 328 bond underwriting projects were completed, with an underwriting scale of CNY 71.41 billion, including 135 lead underwriting projects totaling CNY 53.40 billion, ranking 13th in the industry for financing scale[42] - The New Third Board business continued to supervise 279 listed companies, maintaining a leading position in terms of recommended listings, private placement frequency, and ongoing supervision numbers[44] Wealth Management Business Wealth management transformation deepened, serving 6.96 million clients and managing CNY 971.25 billion in client assets by the end of the reporting period, with financial product distribution growing 19.41% Brokerage Business Transaction Volume (CNY billion) | Item | Jan-Jun 2021 | Jan-Jun 2020 | | :--- | :--- | :--- | | Stock Transaction Volume | 5,794.805 | 5,449.901 | | Fund Transaction Volume | 248.246 | 202.368 | | Bond Transaction Volume | 1,914.304 | 954.851 | Financial Product Distribution Holding Scale (CNY billion) | Item | June 30, 2021 | December 31, 2020 | Growth | | :--- | :--- | :--- | :--- | | Financial Product Holdings | 49.129 | 41.144 | 19.41% | Institutional Business Institutional business developed steadily, with the research institute publishing 2,286 reports and serving 107 public fund institutions, while institutional trading client numbers and asset scale achieved double-digit growth - The research institute, led by Chief Economist Li Xunlei, has 106 researchers and published 2,286 research reports in H1, cumulatively serving 107 public fund institutions[47] Institutional Trading Business Growth | Item | June 30, 2021 | December 31, 2020 | Growth | | :--- | :--- | :--- | :--- | | Institutional Trading Period-End Client Accounts | 1,479 | 1,244 | 18.89% | | Institutional Trading Period-End Asset Scale (CNY billion) | 60.525 | 52.033 | 16.32% | Investment Business The company's investment business revenue grew steadily, with fixed income and equity investments employing prudent risk management, and alternative investment subsidiary ZT Venture achieving significant revenue and net profit growth - The company's proprietary investment business revenue grew steadily, with both fixed income and equity investments adopting prudent risk management strategies[48] - Alternative investment subsidiary ZT Venture achieved operating revenue of CNY 129 million and net profit of CNY 93 million in H1, both significantly increasing from the same period last year[49] Credit Business Credit business maintained stable operations, with margin financing and securities lending balance growing 5.19% to CNY 33.59 billion, and stock pledge business scale continuously reduced by CNY 1.94 billion Margin Financing and Securities Lending Business Overview | Item | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Margin Financing and Securities Lending Balance (CNY billion) | 33.589 | 31.932 | | Period-End Maintenance Margin Ratio | 270.85% | 262.97% | Stock Pledge Business Scale (CNY billion) | Item | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Stock Pledge Repurchase Balance | 6.748 | 8.688 | | Of which: Proprietary Capital Financing Scale | 4.532 | 5.807 | Asset Management Business Asset management scale steadily increased, with ZT Asset Management reaching CNY 154.30 billion and WanJia Fund managing CNY 218.08 billion, reflecting significant growth in public fund business ZT Asset Management Business Scale (CNY billion) | Business Type | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Collective Asset Management Business | 39.600 | 33.544 | | Single Asset Management Business | 98.025 | 101.297 | | Public Fund Business | 15.361 | 10.656 | | Total | 154.304 | 146.959 | WanJia Fund Public Fund Management Scale (CNY billion) | Product Category | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Money Market Funds | 94.934 | 67.923 | | Non-Money Market Funds | 123.145 | 120.797 | | Total | 218.079 | 188.720 | Overseas Business Subsidiary ZT International was active in the Hong Kong market, completing 3 IPOs with HKD 3.11 billion in financing and 26 bond projects with USD 4.19 billion in financing, enhancing the company's international brand influence - In H1 2021, Hong Kong's IPO financing volume increased by 125% year-on-year, providing a favorable opportunity for ZT International's business development[56] - ZT International completed 3 IPO projects (financing HKD 3.11 billion), 26 bond projects (financing USD 4.19 billion), and 2 financial advisory projects in H1[57] Futures Business Holding subsidiary Luzheng Futures achieved significant performance growth, with net profit increasing by 89.75% to CNY 75.05 million in H1, and client equity rising 34.43% to CNY 14.09 billion - Luzheng Futures 2021 H1 achieved operating revenue of CNY 976 million and net profit of CNY 75.05 million, representing an 89.75% year-on-year increase[57] Luzheng Futures Client Equity (CNY billion) | Category | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Average Daily Equity | 12.716 | 9.043 | | Period-End Equity | 14.092 | 10.483 | Analysis of Key Operating Conditions During the reporting period, total assets grew to CNY 183.83 billion, operating revenue increased by 19.96%, and net profit attributable to parent company shareholders rose by 22.99%, driven by brokerage and investment banking fee income and investment gains Analysis of Major Financial Statement Item Changes | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Operating Revenue | 19.96 | Increase in brokerage and investment banking net fee income, and growth in investment income and fair value change gains | | Operating Costs | 17.86 | Increase in business and management expenses | | Credit Impairment Losses | -116.50 | Decrease in impairment provisions for funds lent and financial assets purchased under resale agreements | | Net Cash Flow from Operating Activities | -79.61 | Decrease in net cash received from client securities trading, and increase in net funds from resale and repurchase business | | Net Cash Flow from Financing Activities | 508.12 | Lower base due to repayment of CNY 6 billion perpetual bonds in the prior period | - From a business segment perspective, the gross profit margin of securities investment business increased by 22.81 percentage points year-on-year, while that of securities brokerage and asset management businesses decreased[63] - As of the end of the reporting period, the company's total assets were CNY 183.83 billion, a 5.34% increase from the end of the previous year; total liabilities were CNY 147.75 billion, a 5.47% increase from the end of the previous year, maintaining a reasonable asset-liability structure[66][67] Risk Analysis The company faces compliance, market, credit, liquidity, operational, reputational, and anti-money laundering risks, managed through a multi-layered risk management framework and various control measures - The company established a comprehensive risk management organizational structure involving the board of directors, supervisory board, management, departments, and subsidiaries to address seven major categories of risks, including compliance, market, and credit risks[79][80][82][83][84][85][86][87] - Regarding market risk, as of the end of the reporting period, the company's one-day 95% Market Risk VaR for its investment portfolio was CNY 94.73 million, accounting for 0.35% of the company's net capital, indicating controllable risk exposure[82] - In terms of liquidity risk, the company maintained sufficient liquid asset reserves during the reporting period, with both the liquidity coverage ratio (610.28%) and net stable funding ratio (153.74%) meeting regulatory standards[84][26] Corporate Governance This section details the company's corporate governance structure, including shareholder meeting resolutions and significant changes in the board, supervisory board, and senior management Shareholder Meetings During the reporting period, the company held two shareholder meetings, the First Extraordinary General Meeting of 2021 and the 2020 Annual General Meeting, with all proposals approved - The company held two shareholder meetings on January 29, 2021, and June 1, 2021, respectively, reviewing and approving important proposals such as amendments to the Articles of Association, appointment of accounting firms, annual reports, and profit distribution plans[89][90] Changes in Directors, Supervisors, and Senior Management During the reporting period, the company's Chief Information Officer and Chief Legal Counsel changed, with new appointments made, and three independent directors departed due to term expiration Changes in Senior Management | Name | Position Held | Change Type | | :--- | :--- | :--- | | Cheng Long | Chief Information Officer | Resigned | | Zhang Yong | Chief Information Officer | Appointed | | Qi Bing | Chief Legal Counsel | Dismissed | | Zhang Yunwei | Chief Legal Counsel | Appointed | Environmental and Social Responsibility (ESG) This section outlines the company's commitment to environmental protection and social responsibility, including initiatives for green development, poverty alleviation, and rural revitalization Environmental Information The company actively supports national green and "carbon neutrality" strategies by implementing internal energy-saving measures and leveraging financial expertise to promote green transformation in various industries - The company internally promotes measures such as water and electricity conservation, saving office supplies, and standardizing the disposal of hazardous waste and old equipment, advocating a green and environmentally friendly philosophy[95] - The company actively supports green, low-carbon, and sustainable development by hosting "carbon neutrality" themed investment summits, sponsoring energy-saving and environmental protection enterprises for listing, and investing in photovoltaic companies[98] Social Responsibility The company actively fulfills its social responsibility by leveraging its financial expertise for poverty alleviation, collaborating with local governments on rural revitalization, and engaging in consumer and employment support - The company leverages its full-chain financial service advantages to provide capital market services such as equity and debt financing, and mergers and acquisitions for enterprises in impoverished areas, promoting county-level economic development[98] - Actively engaged in consumer and employment poverty alleviation by purchasing agricultural products from impoverished areas (CNY 7.58 million) and arranging employment for university graduates from Xinjiang[100] Significant Matters This section reports on significant corporate events, including major litigation and arbitration cases, as well as administrative penalties and regulatory measures imposed on the company and its subsidiaries Major Litigation and Arbitration During the reporting period, the company had no new major litigation or arbitration cases exceeding CNY 10 million or 10% of net assets, but disclosed progress on several pending cases over CNY 50 million involving bond defaults and stock pledge disputes - As trustee, the company applied for arbitration against Fucheng Group regarding the default of "18 Fucheng 03" and "19 Fucheng 01" bonds; the arbitration commission has ruled Fucheng Group to pay principal, interest, and penalties, with the case currently in execution[109] - The company filed a lawsuit due to a default on a stock pledge repurchase transaction by Beijing Mianshi Fangda Investment Co., Ltd., with a subject amount of approximately CNY 335 million, and the case is currently in its first-instance trial[110] Penalties and Regulatory Measures During the reporting period, the company and its subsidiaries received administrative penalties and regulatory measures, including a CNY 0.95 million fine for anti-money laundering issues and rectification orders for information system security and employee violations - On January 28, 2021, the company was fined CNY 0.95 million by the Jinan Branch of the People's Bank of China for anti-money laundering issues, including failure to properly identify clients[111] - On May 8, 2021, the company was ordered to rectify issues by the Shandong Securities Regulatory Bureau due to an inadequate information system security monitoring mechanism[111] Share Changes and Shareholder Information This section details changes in the company's share capital, particularly the lifting of sales restrictions on shares, and provides an overview of the shareholder structure, including major shareholders Share Capital Changes The company's total share capital remained unchanged at 6,968,625,756 shares; however, 1.91 billion restricted shares were lifted on June 3, 2021, increasing unrestricted shares to 37.44% of total capital - On June 3, 2021, 1.912 billion restricted shares of the company were released from lock-up, increasing unrestricted tradable shares to 2.609 billion, accounting for 37.44% of the total share capital[127] Share Change Table | Share Class | Quantity Before Change | Quantity After Change | Proportion After Change (%) | | :--- | :--- | :--- | :--- | | Restricted Shares | 6,271,763,180 | 4,359,556,230 | 62.56 | | Unrestricted Tradable Shares | 696,862,576 | 2,609,069,526 | 37.44 | | Total Shares | 6,968,625,756 | 6,968,625,756 | 100 | Shareholder Information As of the end of the reporting period, the company had 152,424 common shareholders, with the top five being state-owned legal entities holding over 60% of the shares, led by Laiwu Steel Group Co., Ltd. at 41.32% - As of the end of the reporting period, the company had a total of 152,424 shareholders[131] Top Five Shareholders' Holdings | Shareholder Name | Number of Shares Held | Proportion (%) | Nature of Shares | | :--- | :--- | :--- | :--- | | Laiwu Steel Group Co., Ltd. | 2,879,559,900 | 41.32 | State-owned Legal Entity | | Shandong Energy Group Co., Ltd. | 458,091,900 | 6.57 | State-owned Legal Entity | | Jigang Group Co., Ltd. | 351,729,000 | 5.05 | State-owned Legal Entity | | Shandong Luxin Investment Holdings Group Co., Ltd. | 277,566,330 | 3.98 | State-owned Legal Entity | | Xinwen Mining Group Co., Ltd. | 241,737,300 | 3.47 | State-owned Legal Entity | Bond-Related Information This section provides an overview of the company's outstanding corporate bonds, company bonds, and non-financial enterprise debt financing instruments, including their terms and repayment status Overview of Outstanding Bonds As of the end of the reporting period, the company and its subsidiaries had multiple outstanding public and non-public corporate and subordinated bonds in CNY and USD, with all repayment plans and guarantees unchanged and timely - The company's outstanding publicly issued corporate bonds include various types such as "18 ZT 01", "19 ZT 01", and "20 ZT 01", with maturities covering short-term and medium-term, and interest rates ranging from 3.27% to 4.55%[142][143][144] - The company's outstanding non-publicly issued corporate bonds and subordinated bonds include "20 ZT F1" and "19 ZT C1", primarily issued to qualified or professional investors[147][148] - During the reporting period, the company's debt repayment plans and other debt servicing guarantee measures remained unchanged, with all bonds paying interest and/or principal on time and in full[146] Financial Report This section presents the company's consolidated financial statements, including the balance sheet, income statement, and detailed notes on key financial items and their composition Financial Statements As of June 30, 2021, the consolidated financial statements show total assets of CNY 183.83 billion, total liabilities of CNY 147.75 billion, and equity attributable to parent company shareholders of CNY 34.89 billion, with H1 operating revenue of CNY 5.76 billion Consolidated Balance Sheet Summary (June 30, 2021) | Item | Amount (CNY) | | :--- | :--- | | Total Assets | 183,825,778,245.93 | | Cash and Bank Balances | 41,616,371,632.78 | | Funds Lent | 34,428,225,255.77 | | Trading Financial Assets | 44,830,293,706.25 | | Total Liabilities | 147,747,438,040.41 | | Client Funds for Securities Trading | 48,841,820,142.51 | | Financial Assets Sold Under Repurchase Agreements | 27,447,886,293.64 | | Bonds Payable | 38,176,370,793.35 | | Total Owners' Equity | 36,078,340,205.52 | | Owners' Equity Attributable to Parent Company | 34,888,807,975.59 | Consolidated Income Statement Summary (Jan-Jun 2021) | Item | Amount (CNY) | | :--- | :--- | | I. Total Operating Revenue | 5,760,832,968.28 | | Net Fee and Commission Income | 2,767,367,765.16 | | Net Interest Income | 913,336,823.85 | | Investment Income | 934,583,383.09 | | Gains from Changes in Fair Value | 321,240,840.79 | | III. Operating Profit | 2,171,467,467.97 | | V. Net Profit | 1,746,412,762.45 | | Net Profit Attributable to Parent Company Shareholders | 1,701,173,015.28 | Notes to Consolidated Financial Statement Items Financial statement notes detail account compositions and changes, showing trading financial assets primarily in bonds and public funds, and securities brokerage as the largest contributor to net fee and commission income - As of the end of the period, the fair value of bonds and public funds within trading financial assets was CNY 29.996 billion and CNY 5.653 billion, respectively, constituting the main components[308] - Within net fee and commission income, net income from securities brokerage business was CNY 1.649 billion, and net income from investment banking business was CNY 702 million, serving as primary revenue sources[391] - As of the end of the period, the total book value of assets with restricted ownership or use rights was CNY 35.981 billion, primarily consisting of trading financial assets and other debt investments used for pledge repurchases and securities lending collateral[422] Securities Company Information Disclosure This section covers significant administrative licenses obtained by the company and its regulatory classification results from supervisory authorities Major Administrative Licenses During the reporting period, the company obtained two key administrative licenses: approval to increase capital in its Hong Kong subsidiary and permission to pilot fund investment advisory services - On February 8, 2021, the company was approved to increase capital in ZT Financial International Co., Ltd[534] - On June 2, 2021, the company was approved to pilot fund investment advisory business[534] Regulatory Classification Results According to regulatory classification, ZT Securities received an A-class A-level rating in 2021 - In 2021, the company's regulatory classification rating was A-class A-level[534]