Guotai Junan International Holdings Limited · HKEX:1788
Guotai Junan International — H1 2022 Earnings Presentation
34 slides from Guotai Junan International's earnings presentation, August 2022
Slide 1: Guotai Junan International 2022 Interim Results
2022 Interim Results Constituent of FTSE’s ESG Index Guotai Junan International 2022 Interim Results August 2022 Guotai Junan International Holdings Ltd | Stock Code: 1788.HK | WeChat Account: GTJA_GJ | www.gtjai.com
Slide 2: Disclaimer
Disclaimer： This presentation does not constitute an offer or invitation to purchase or subscribe for any securities or financial instruments or the provision of any investment advice, and no part of it shall form the basis of or be relied upon in connection with any contract, commitment or investme
Slide 3: Agenda
2022 Interim Results Agenda Overview Page 4 Summary | Markets | Results Summary Financial Review Page 7 Financial Indicators | Dividend | Cost | Revenue breakdown | Balance Sheet | Risk Management | Credit Rating | Liquidity Management Sustainability Page 16 ESG | Sustainable Finance Business Develo
Slide 4: Overview
2022 Interim Results Overview 2022 Interim Results In the first half of 2022, under the influence of unfavorable factors such as tightening global monetary policy, continuing geopolitical risks and repeated COVID-19 epidemics, the overall market conditions were sluggish. Resolutely implemented high-
Slide 5: Markets: HK Markets Encountered Second Half Years with Intensive Volatility
Markets: HK Markets Encountered Second Half Years with Intensive Volatility 2022 Interim Results Hang Seng Index Total HK IPO HSI 2022 1H: -7% Fundraising Last 12 months: -24% Amount Average Trading Volume - 91% YoY -27% YoY HSCEI March Hit the lowest in 10 years The market growth slowed Both
Slide 6: Results Overview
Results Overview 2022 Interim Results Profit Attribute to Shareholders increased 3% HoH1 to 161 HK$ million Driven by the significant increase in demand of cross-border financial products business, the interest income from financial products increased by 16% YoY to HK$199 million Continued to assist
Slide 7: Financial Review
2022 Interim Results Constituent of FTSE’s ESG Index Financial Review Financial Indicators | Dividends | Costs | Revenue Breakdown | Balance Sheet | Risk Management | Credit Rating | Liquidity Management 7
Slide 8: Key Financials: Attributable Profits Grew 3% and Dividends per share Increased 3 times
Key Financials: Attributable Profits Grew 3% and Dividends per share Increased 3 times (Half-on-Half) 2022 Interim Results P&L Extracts 1H 2022 1H 2021 YOY1 HOH7 (HKD’000) (HKD’000) Attributable Profit Maintained Growth Fee and commission2 451,312 986,852 (54%) (29%) HK$ Million - IPO financing amou
Slide 9: Dividend: Special Dividend Declared to Overcome the Difficulties with the Market
Dividend: Special Dividend Declared to Overcome the Difficulties with the Market 2022 Interim Results HKD Thousand 2022 Interim Payout Ratio 60% 1,600,000 54% 1,400,000 50% 50% 1,200,000 46% Historical Average 1,000,000 40% 38% Dividend Pay out Ratio 38% 37% (Interim) 43% 37% 800,000 30% 31% 600,0
Slide 10: Cost Structure: Finance Costs Dropped. Provision Recovered for the First Time
Cost Structure: Finance Costs Dropped. Provision Recovered for the First Time 2022 Interim Results Cost items 1H 2022 1H 2021 YOY1 (HKD’000) (HKD’000) Impairment Staff Costs (337,345) (424,539) (21%) Provision Recovered Commission to account (75,590) (143,684) (47%) executives Depreciation (38,908)
Slide 11: Revenue Breakdown: Diversified Development to Enhance Revenue Resiliency
Revenue Breakdown： Diversified Development to Enhance Revenue Resiliency 2022 Interim Results Fee and Commission Securities breakdown3 HKD’000 1H 2022 1H 2021 YOY1 2H 2021 HOH2 Others6 2% Stock Connect Brokerage 264,426 463,086 (43%) 342,896 (23%) 10% Corporate finance 106,116 337,268 (69%) 184,425
Slide 12: Balance Sheet: Driven by Clients and Empowered by Risk Management
Balance Sheet: Driven by Clients and Empowered by Risk Management 2022 Interim Results HKD’000 30 Jun 2022 Contribution* 31 Dec 2021 Contribution* Assets Assets Distribution (30 Jun 2022) Loans and Advances to Customers 10,476,454 9.4% 15,854,687 14.9% Receivable from Reverse Repurchase Agreement 4,
Slide 13: Risk management: Focuses on Client Demand-driven Business to Greatly Reduce Market Risk
Risk management: Focuses on Client Demand-driven Business to Greatly Reduce Market Risk 2022 Interim Results Reduced Market Risk: Increased Assets for Client demand-driven business: Cumulative decline in value-at-risk (VaR) of almost 90% Moving to High-quality Credit Risk Note: The Company measures
Slide 14: Credit Ratings: First tier of Chinese Financial Institutions in Hong Kong
Credit Ratings: First tier of Chinese Financial Institutions in Hong Kong 2022 Interim Results Milestone of Credit Rating Peers Comparison July 2022 S&P reaffirmed Company's investment grade credit ratings BBB+ BBB+ BBB+ BBB+ BBB+ BBB+ July 2021: BBB Moody's and S&P reaffirmed Company's investment g
Slide 15: Liquidity Management
Liquidity Management 2022 Interim Results Funding Sources Banking facilities Cash 5.5% HK$ million 30 Jun 2022 31 Dec 2021 Change1 Total banking 36,694 33,594 9.2% facilities MTN Funding Resources Bank loans 46.1% 4,536 5,268 (13.9%) HK$75.9bn utilized Bi Lateral 43.1% Available outstanding 32,158 2
Slide 16: Sustainability
2022 Interim Results Constituent of FTSE’s ESG Index Sustainability ESG | Sustainable Finance
Slide 17: ESG and Sustainable Finance
ESG and Sustainable Finance 2022Interim 2022 Interim Results Results Green Projects Green and Sustainable Bond issuance business • From Jan to Jul 2022, the Group assisted in issuing 18 green or sustainable bonds. • In July, the Group assisted Ningbo Shanshan (New energy) in issuance of GDRs with a
Slide 18: Business Development
2022 Interim Results Constituent of FTSE’s ESG Index Business Development Wealth Management | Institutional Solutions & Derivatives | Corporate Finance and Capital Market
Slide 19: Big Wealth Management: Operational Efficiency and Customer Experience
Deepen Synergy, Invest in Technology and Enhance Big Wealth Management： Operational Efficiency and Customer Experience 2022 Interim Results Facilitate various function and Fin-tech enhance cross-selling and (Strong Support) Compliance efficiency “Big Wealth Efficiency Booster Management Platform” 大财
Slide 20: Wealth Management: Maintained Stable Market Share and Offered More High-quality Products
Wealth Management : Maintained Stable Market Share and Offered More High-quality Products 2022 Interim Results Total Assets under Custody1 Number of Clients with assets over HK$50 million Offered More Financial Products HK$ 100Million Hang Seng Technology 2,350 2,351 Index adjusted sharply 1,909 Num
Slide 21: Wealth Management: Diversified Financing Products for High-net-worth Clients
Wealth Management: Diversified Financing Products for High-net-worth Clients 2022 Interim Results Sharp rise in global interbank offered rates and HIBOR Competitive Abundant Efficient Live update of The short-term HIBOR rose sharply in the past 12 months, and 1-month interest rate investment approva
Slide 22: Wealth Management Milestone: Steady Client Acquisition with Continuous AUC Growth
Wealth Management Milestone: Steady Client Acquisition with Continuous AUC Growth 2022 Interim Results Please read the Disclaimer page carefully Business Development | 22
Slide 23: Institutional Solutions & Derivatives: Tailor-made for Clients
Institutional Solutions & Derivatives1: Tailor-made for Clients 2022 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, Dilige
Slide 24: Institutional Solutions & Derivatives: Cross-border Financial Products with Regulatory Approval
24 2022 Interim Results Institutional Solutions & Derivatives: Cross-border Financial Products with Regulatory Approval 2022 Interim Results Northbound Overseas Financial Domestic Products Domestic index、 Qualified ETF、A shares、 Foreign Clients Public funds BBB+/Baa2 BBB+/Baa1 Fee Income Interest In
Slide 25: Equity Capital Market, IPO Sponsorship & Advisory
Equity Capital Market, IPO Sponsorship & Advisory 2022 Interim Results 01 Number of Equity Underwriting Deals from Primary & Secondary Markets Market Review Deals In the primary market, the number of 15 13 IPOs in 1H 2022 was 27, a sharp 11 03 decrease of 41.3% compared to the 8 same period in 2021;
Slide 26: Debt Capital Market: Maintained Leading Market Share
Debt Capital Market: Maintained Leading Market Share 2022 Interim Results Primary market: With issuance willingness and progress impacted by the pandemic, Asia (ex-Japan) G3 01 Market currency bond issuance fell over 20% in 1H 2022. Total Fundraising Amount Review Secondary market: Extremely volatil
Slide 27: Honors and Branding
2022 Interim Results Constituent of FTSE’s ESG Index Honors and Branding 27
Slide 28: Honors and Branding: Awarded Company Prizes
Honors and Branding: Awarded 19 Company Prizes 2022 Interim Results • Excellence Award of Risk Management • Excellence Award of Wealth Management Platform Jul 2022 Bloomberg Businessweek (the Greater Bay Area) • Excellence Award of ESG • Asia’s Best CEO (sell side) • Asia’s Best IR Professional (sel
Slide 29: Appendix
Constituent of FTSE’s ESG Index 2022 Interim Results Appendix Regulatory Licenses Milestone Positions and Evolutions Controlling Shareholder 29
Slide 30: Regulatory Licenses
Regulatory Licenses: 2022 Interim Results Issued by the Securities and Futures Commission of Hong Kong Issued by China Securities Regulatory Commission Type 1 (Dealing in securities) (1 April 2003) Qualified Foreign Institutional Investors (21 February 2013) Type 2 (Dealing in futures contract
Slide 31: Milestone: Seized the Opportunities and Created Values for Shareholders
Milestone: Seized the Opportunities and Created Values for Shareholders 2022 Interim Results Launched 1st fund Launched Investment Banking Launched Financial Launched PE business, Incorporated in （Guotai Junan Greater China Growth focusing in new economy (FICC) business Equity Derivative Launched co
Slide 32: Positions and Evolutions: Differentiated Competitiveness
Positions and Evolutions: Differentiated Competitiveness 2022 Interim Results Key Focus 关键能力 Brokerage- Integrated Financial Oriented Services Provider Channel Business 综合金融服务商 High Net worth Client Brokerage, margin financing and financial products Corporate Issuers and Institutions Corporate finan
Slide 33: Controlling Shareholder: Parent backed by Shanghai SASAC & Shenzhen SASAC
Controlling Shareholder: Parent backed by Shanghai SASAC & Shenzhen SASAC 2022 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 34: Thanks!
Constituent of FTSE’s ESG Index 2022 Interim Results IR Contacts: Jason Yan, CFA Thanks! Jason.yan@gtjas.com.hk +852 2509 5487 Follow us on WeChat Mia Wu, Mia.wu@gtjas.com.hk +852 2509 2138 Helen Feng Helen.feng@gtjas.com.hk 34
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