China Renaissance Holdings Limited · HKEX:1911
China Renaissance — H1 2021 Earnings Presentation
24 slides from China Renaissance's earnings presentation, Aug 23, 2021
Slide 1: China Renaissance: 1H21 Results
China Renaissance: 1H21 Results August 2021
Slide 2: Disclaimer
Disclaimer This document is prepared by China Renaissance Holdings Limited (China Renaissance Holdings Limited and any of its subsidiaries, associated companies, and affiliates, or any of their directors, officers, agents, advisers or employees are together known as “China Renaissance”). This docume
Slide 3: Business Update
BUSINESS UPDATE
Slide 4: 1H21 Business Highlights
1H21 Business Highlights Investment gains from the Investment Management business continued to contribute to stable profitability Investment Banking business reached a Strong investment income and new record high; synergies between business Robust synergies between primary and operations drove reven
Slide 5: China Renaissance Outperformed the Market, as Market Continued to Gain Momentum
China Renaissance Outperformed the Market, as Market Continued to Gain Momentum New economy IPO number and scale increased PE investment continued to growth significantly RMB transaction volume $bn USD transaction volume $bn Fundraising size of US new economy IPO ($bn) Number of deals (right) 50 50
Slide 6: Strong Investment Income and Synergies Between Business Operations Drove Revenue Growth
Strong Investment Income and Synergies Between Business Operations Drove Revenue Growth 1H21 Revenue increased 111% YoY, Investment Management Group ROE exceeded 38% accounted for 54% of total revenue Revenue 799 942 1,004 1,578 1,622 2,731 2,458 38% (RMB million) 4% 4% 2% 12% 8% 11% 9% 14% 19% 24%
Slide 7: Investment Management — Reap Benefits from Portfolio Investments
Investment Management — Reap Benefits from Portfolio Investments AUM continued to grow, while Group’s investment gains were accumulated steadily and realized gradually AUM was over RMB61 billion Group’s capital invested in 61,745 57,443 Investment Management business （RMB million） IRR 47% IRR 37% 34
Slide 8: Investment Management — Growth in AUM and Product Diversification
Investment Management — Growth in AUM and Product Diversification to Better Balance Risk Carried interest will support the continuous growth of net profit; Fund raising of Growth Capital Fund IV and diversification of products will contribute to AUM Gross unrealized carried interest Fee-earning AUM
Slide 9: Investment Management — Upgrade the Investment Strategy, Focus on Smart Technologies
Investment Management — Upgrade the Investment Strategy, Focus on Smart Technologies Operational synergies across business segments and comprehensive research capabilities supported investment strategy upgrade; Multiple IPOs further created exit opportunities and contributed to overall fund performa
Slide 10: Significant Breakthrough in Debt Financing Capabilities, with Strong Cash position
Significant Breakthrough in Debt Financing Capabilities, with Strong Cash position and Capital Reserves Successful completion of overseas syndicated loan projects; strong reserves of cash position and capital to protect against future uncertainties and risks Overview of Group Capital Allocation and
Slide 11: Investment Banking — Improved Distribution Capacity and Public Market Position
Investment Banking — Improved Distribution Capacity and Public Market Position A number of IPOs closed in 1H21; Kuaishou’s IPO boosted China Renaissance’s market position in underwriting business List of Brokers in Hong 1H21 IPOs (Selective) Kong Market HK$48.3 billion 16 HK$28.27 billion HK$27.53 b
Slide 12: Investment Banking — Business Integration Strategy Fosters Synergies
Investment Banking — Business Integration Strategy Fosters Synergies across Capital Markets Private placement and M&A advisory services continued to grow steadily and strengthen CR’s market share in the primary market; integrated Investment Banking division provides clients with one-stop solutions I
Slide 13: Wealth Management Business Remained On Track
Wealth Management Business Remained On Track Team Product Client AUM Team structure setup completed with Centered around alternative and Clients are mainly new economy AUM：RMB7 bn optimized front/middle/back offices new economy assets related wealth customers （as of Jun 2021） Improved the organizati
Slide 14: CR Securities — Strengthen All Lines of Business; Achieved Profitability
CR Securities — Strengthen All Lines of Business; Achieved Profitability in 1H2021 Business Diversity in Rapid Gradually Build Investment Development; Enter the Capacity, Steadily Increas Revenue Implementation Cycle • Complete Unigreen's IPO on the • Continuously strengthen core STAR market of the
Slide 15: CR Securities — Business Objectives in Clear Vision
CR Securities — Business Objectives in Clear Vision, Synergistic with Business Operations ⚫ Synergies with the Group’s ⚫ Leverage the scale of the advisory and investment banking organization; Strengthen departments; Develop pipeline of collaboration between brokerage, multiple A-share IPOs and M&A
Slide 16: Financial Update
FINANCIAL UPDATE
Slide 17: Notable Revenue Contribution from Investment Management
Notable Revenue Contribution from Investment Management Total Revenue1 (RMB million) Revenue by Segment1 (RMB million) 352 43 投资银行 Investment banking 2,731 投资管理 Investment management 742 2,458 华兴证券 CR Securities 1,321 其他 Others 1,622 1,167 Revenue Percentage by Segment 14% 2% 投资银行 Investment banking
Slide 18: Significant Profit Growth
Significant Profit Growth Operating Profit (RMB million) Net Profit (RMB million) 1,228 1,405 1,038 1,125 407 438 468 247 2019 2020 1H2020 1H2021 2019 2020 1H2020 1H2021 18 18
Slide 19: Revenue and Operating Profit Driven by Diversified Sources
Revenue and Operating Profit Driven by Diversified Sources Revenue by Segment1 (RMB million) Operating Profit / (Loss) by Segment (RMB million) 1,321 995 742 643 394 284 162 352 45 277 39 194 (10) (37) 53 43 投资银行 Investment 投资管理 Investment 华兴证券 CR 其他 Others 投资银行 Investment 投资管理 Investment 华兴证券 CR 其他
Slide 20: More Efficient Cost Control Supported Profitability
More Efficient Cost Control Supported Profitability Group Cost/Income Improved Group ROE increased to 38% （Total cost/Revenue） 38% 73% 59% 60% 43% 19% 15% 5% 2019 2020 1H2020 1H2021 2019 2020 1H2020 1H2021 资管业务成本增幅低于收入增幅 Group profit margin widened notably Group (excluding CR Securities) ROE 47% 52%
Slide 21: Investment Banking: Stronger Market Position in Equity Underwriting and Brokerage Services
Investment Banking: Stronger Market Position in Equity Underwriting and Brokerage Services 1H21 Results Transaction Volume (RMB million) • Segment revenue and net investment gains: RMB742.0 million, up 168% YoY • Operating profit: RMB284 million, up 628% YoY • Segment operating margin: 38% 168,246 •
Slide 22: Investment Management: Driven by Strong Investment Performance
Investment Management: Driven by Strong Investment Performance 1H21 Results Committed Capital (RMB million) • Segment revenue and net investment gains: RMB1.3 billion, up 105% YoY 26,055 27,547 28,078 • Operating profit: RMB995 million, up 152% YoY 21,873 17,484 • 12 portfolio companies went public
Slide 23: CR Securities: Achieved Profitability
CR Securities: Achieved Profitability 1H21 Results Operating Profit / (Loss) (RMB million) • Segment revenue and net investment gains: RMB352 million, up 81% YoY 162 • Served as the sponsor for Suzhou UIGreen’s listing on the SSE STAR Market in 1H21 64 • Operating Profit: RMB162 million, up 262% YoY
Slide 24: Balance Sheet – High Liquidity and Low Leverage
Balance Sheet – High Liquidity and Low Leverage Total Assets（RMB million） Interest Bearing Liabilities (RMB million) 15,117 12,537 10,414 2,400 9,510 1,142 130 183 2019 2020 1H2020 1H2021 2019 2020 1H2020 1H2021 Cash Position1 (RMB million) Shareholders’ Equity (excluding minority) 6,889 5,896 5,010
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