Guotai Junan International Holdings Limited · HKEX:1788
Guotai Junan International — H1 2021 Earnings Presentation
37 slides from Guotai Junan International's earnings presentation, August 2021
Slide 1: 2021 Interim Results
Stock Code: 1788.HK Guotai Junan International 2021 Interim Results August 2021 Guotai Junan International Holdings Ltd | Stock Code:1788.HK | WeChat Account: GTJA_GJ | www.gtjai.com
Slide 2: Disclaimer
2021 Interim Results Disclaimer： By attending the meeting where the presentation is made, or reading the presentation materials, you agree to the following limitations and notifications. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities or finan
Slide 3: Contents
2021 Interim Results Contents Overview Page 4 Macroeconomic Environment | Results Summary Financial Review Page 6 Financial Indicators | Revenue Structure | Dividends | Costs | Revenue Breakdown Balance Sheet | Liquidity Management | Credit Rating | Sustainable Finance Position and Outlook Page 17 M
Slide 4: Macroeconomic Environment: The Recovery Process with the Uncertainties
Macroeconomic Environment: The Recovery Process with the Uncertainties 2021 Interim Results The Global Economic Recovery in 1H2021 Global Policies in 1H2021 • Hang Send Index Up 5.86% • China GDP Up 12.7% YOY • The prudent monetary policy of People's Bank of China is flexible, precise, • Shanghai A
Slide 5: Interim Results Summary
Interim Results Summary 01 Revenue Increased by 40% to HK$2,513 million YOY, with increase in brokerage, corporate finance, asset management, financial products and margin financing Stock Index & Fee and commission increased by 60% to HK$987 million YOY. Wealth management segment increased by
Slide 6: Financial Review
Member of FTSE ESG Index 2021 Interim Results Financial Review Indicators Revenue Mix Dividends Costs Revenue Breakdown Balance Sheet Liquidity Management Credit Rating Sustainable Finance
Slide 7: Key Financials: Full Increase across different business lines with stable ROE
Key Financials：Full Increase across different business lines with stable ROE 2021 Interim Results P&L extracts 1H 2021 1H 2020 YOY1 HOH2 Revenue recorded historical high (HKD’000) (HKD’000) HK$ Million Fee and Commission3 986,852 618,481 60% 4% - Commission for securities trading 422,311 230,566 83%
Slide 8: Revenue Mix: Non-Investment contributed 90% of revenue
Revenue Mix： Non-Investment contributed 90% of revenue as WM continued to drive growth 2021 Interim Results Fee and Commission income with record high again HKD million Nature Segment 987 Up 60% Fee and Commission1 Wealth Management4 618 39% 40% Institutional Investor Services5 Interest2 36% 51% 1H2
Slide 9: Dividend: Consistent and Stable with Historical High 2021 Interim Dividend
Dividend: Consistent and Stable with Historical High 2021 Interim Dividend 2021 Interim Results HKD Thousand Reaffirmed in FTSE4Good Index 1,000,000 In July 2021, GTJAI was reaffirmed as constituent 51% of FTSE4Good Index by global index provider 54% 50% 800,000 50% 50% FTSE Russell, owned by the Lo
Slide 10: Cost Structure: costs-to-income ratio optimized
Cost Structure：Benefited from the scale effect, costs-to-income ratio optimized 2021 Interim Results Cost items 1H 2021 1H 2020 YOY1 2H 2020 HOH2 (HKD’000) (HKD’000) Staff Costs 424,539 329,919 29% 818,791 (48)% Commission to account 143,684 74,574 93% 113,808 26% executives Other commission 20,619
Slide 11: Revenue Breakdown (Nature)
Revenue Breakdown（Nature） 2021 Interim Results Fee and Commission Securities Breakdown3 Funds Others6 HKD’000 1H2021 1H2020 YOY1 2H2020 HOH2 3% 2% Stock Connect Brokerage 463,086 276,450 68% 373,021 24% 5% - Commission for 422,311 230,566 83% 324,173 30% securities trading Institutions OTC Corporate
Slide 12: Revenue Breakdown (Segment)
Revenue Breakdown (Segment) 2021 Interim Results 2021 Segment Results Matrix Individual Finance 40% Revenue Nature Wealth Corporate finance Institutional Investment Others HKD’000 /Segment management Investor management Mainly comes from wealth management and retail brokerage clients, including: ser
Slide 13: Balance Sheet: Increase driven by loans, A/R and other client's assets
Balance Sheet: Increase driven by loans, A/R and other client’s assets 2021 Interim Results Unit: HK$ 000 30 June 2021 Contribution1 31 Dec 2020 Contribution1 Assets Loans and Advances to Customer Financial Assets Loans and Advances to Customers 28,047,113 20% 15,604,244 12.8% Receivable from Revers
Slide 14: Liquidity Management
Liquidity Management 2021 Interim Results Funding Sources Banking facilities Cash HK$ million 30 June 2021 31 Dec 2020 Change1 8% Total banking facilities 30,018 25,964 16% MTN Total Funding 42% Bank loans utilized 12,082 9,716 24% Resources Bi Lateral HK$60.1bn 43% Available outstanding banking fac
Slide 15: Credit Ratings: Leading position among Chinese Financial Institutions in Hong Kong
Credit Ratings Leading position among Chinese Financial Institutions in Hong Kong 2021 Interim Results Milestone of Credit Rating Peers Comparison BBB+ BBB+ BBB+ BBB+ July 2021: Moody's and S&P reaffirmed Company's investment grade credit ratings BBB+ and Baa2 BBB BBB July 2020 S&P reaffirmed Compan
Slide 16: Sustainable Finance
Sustainable Finance 1H2021: exceeds 70 billion+ 04 01 Green Bonds Underwriting HK$ 37.2 billion CORPORATE ESG The debt capital market team assisted the corporate clients to raise a total of HK$37.2 billion through 港股市场 green bonds, an increase of 464% year-on-year 香港地区客户托管资产量相对中国 Established the
Slide 17: Position & Outlook
Member of FTSE ESG Index Position & Outlook Milestone Position and Evolution Big Wealth Management Era
Slide 18: Milestone: Seized the opportunities and created values for shareholders
Milestone: Seized the opportunities and created values for shareholders 2021 Interim Results • Strategic integration of Wealth Management and Launched 1st fund Launched Investment Banking (FICC) business Launched Financial products. （Guotai Junan Greater China Growth Launched Financial Warrants and
Slide 19: Positions and Evolutions: Differentiated Competitiveness
Positions and Evolutions：Differentiated Competitiveness 2021 Interim Results Key Focus 关键能力 Brokerage- Oriented Integrated Financial Services Provider Channel Business High Net worth Client 综合金融服务商 Brokerage, margin financing and financial products Corporate Issuers and Concentrated and Institutions
Slide 20: The Big Wealth Management Era: Synergy creates potentials
The Big Wealth Management Era：Synergy creates potentials 2021 Interim Results Facilitate various function and Fin-tech enhance cross-selling and (Strong Support) Compliance efficiency “Big Wealth Efficiency Booster Management Platform” 大财富管理时代 Allocation for IPO Assets Allocation for New Solution fo
Slide 21: Products & Services
Member of FTSE ESG Index 2021 Interim Results Products & Services Wealth Management | Private Equity | Structured Solutions & Derivatives | Corporate Finance and Capital Market | Asset Management
Slide 22: Wealth Management Update: Clients' AUC Increased while turnover beat the market
Wealth Management Update：Clients’ AUC Increased while turnover beat the market 2021 Interim Results Total Assets under Custody HK$ 100 million or above HK$ 8 million or above HK$ Billion HSI Up by 6% Group’s AUC up by 14% 235.0 90% Number Up to 206.7 Out of total assets HK$ 100 HK$ 8 million or abov
Slide 23: WM Client's Quality: Meet Clients' needs to enhance revenue stability
WM Client’s Quality：Meet Clients’ needs to enhance revenue stability Annualized ARPU for General & HNW As at end of June 2021 Unit: US$ 54,756 GTJAI and peers Average Revenue per Paying Clients General Clients US$ 4,370 US$ 2,308 4,370 General Client High Net Worth Client US$ 821 Note: Threshold as
Slide 24: High ARPU Strategy: Enhance Revenue & ROE Stability
High ARPU Strategy：Enhance Revenue & ROE Stability 2021 Interim Results Cross-selling Higher Financial Lower Compliance Risk Edge Stability Leveraging existing large- Better control of customers scale integrated financial Reduce fluctuations due to Compliance issue services market volatility Continu
Slide 25: Wealth Management Milestone: Steady Client Acquisition with Continuous AUC Growth
Wealth Management Milestone: Steady Client Acquisition with Continuous AUC Growth 2021 Interim Results Products & Services | 25
Slide 26: Loans & Financing: Focus on Products, Win with Clients
Loans & Financing: Focus on Products, Win with Clients 2021 Interim Results Lowered interbank offered rates including HIBOR Competitive Abundant Efficient Live update of HIBOR dropped substantially. 1-month HIBOR slid to 0.11% (1H2020: interest rate optimal pricing investment approval 1.41%) and 1-m
Slide 27: Private Equity Fund: Immersing Innovation in Economic Growth
Private Equity Fund: Immersing Innovation in Economic Growth for Visionary Wealth Products 2021 Interim Results Guotai Junan International Private Equity Fund Selected To establish a strategic layout in the private equity business, in 2020 GTJAI launched its Private Equity Fund which Portfolio speci
Slide 28: Structured Solutions & Derivatives: Tailor-made for Clients
Structured Solutions & Derivatives1: Tailor-made for Clients 2021 Interim Results Various structured notes Different risk appetites of clients Participant Notes (参与型) Leading credit rating Innovative as long-term issuer Trustworthy team Yield enhancement Total Return Swap (收益互换) Integrity, Diligence
Slide 29: Debt Capital Market: Maintained Leading Market Share
Debt Capital Market: Maintained Leading Market Share 2021 Interim Results Primary market: With issuance willingness and progress impacted by the pandemic, Asia (ex-Japan) G3 currency 01 Market Review bond issuance increased by 20% throughout the year. Secondary market: Amid intense volatility, I
Slide 30: Equity Capital Market, IPO Sponsorship & Advisory
Equity Capital Market, IPO Sponsorship & Advisory 2021 Interim Results Total Fundraising from Primary & Secondary Equity Markets 02 —— 10 Deals Submitted for IPO —— HKD billion 60.5 Advisory & IPO Sponsorship 39.9 Increase in number of compliance advisory clients has driven relevant revenue 27.6 01
Slide 31: Asset Management: Joining China and the World
Asset Management: Joining China and the World 2021 Interim Results Performance of Domestic GTJA Asia High Income Fund Market Stock Connect QFII Program Domestic Investors Big 4 state-owned banks Regional banks Bond Funds Offshore Equity Bonds Funds Chinese corporate bonds Foreign corporate bonds AUM
Slide 32: Honors & Branding
Member of FTSE ESG Index 2021 Interim Results Honors & Branding
Slide 33: Awards & Honors: Awarded Prizes
Awards & Honors : Awarded 13 Prizes 2021 Interim Results • 2nd in Best Investor Relations in China’s financial-banking Jun 2021 sector (sell-side) Institutional Investor • Respected Company • Excellence Award of Securities Company of the Year (the Greater Bay Area) Jun 2021 • Excellence Award of Ris
Slide 34: Appendix
Member of FTSE ESG Index 2021 Interim Results Appendix Controlling Shareholder | Risk Management
Slide 35: Controlling Shareholder: Parent backed by Shanghai SASAC & Shenzhen SASAC
Controlling Shareholder ：Parent backed by Shanghai SASAC & Shenzhen SASAC 2021 Interim Results Shareholding Structure About Guotai Junan Securities (Parent Company) SASAC SASAC Comprehensive financial service provider with a long-term, (Shanghai) (Shenzhen) sustainable and overall leading position
Slide 36: Risk Management System
Risk Management System 2021 Interim Results Credit Risk: We manage credit risk for borrowers and their counterparties from different businesses (traditional lending Audit Committee activities, counterparty exposure, issuer exposure, contingent Board of Directors exposure from third party’s credit en
Slide 37: Thanks!
Member of FTSE ESG Index 2021 Interim Results IR Contacts: Jason Yan, CFA Jason.yan@gtjas.com.hk Thanks! +852 2509 5487 Follow us on WeChat Mia Wu, Mia.wu@gtjas.com.hk +852 2509 2138 Helen Feng Helen.feng@gtjas.com.hk
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