Shenwan Hongyuan Group Announces its 2022 Interim Results

Overcame market volatility and adverse impacts from pandemic and maintained steady development

HONG KONG, Aug. 31, 2022 /PRNewswire/ — Shenwan Hongyuan Group Co., Ltd. ("Shenwan Hongyuan Group", "Shenwan Hongyuan" or the "Company") (stock code: 6806.HK; 000166.SZ) announced its interim results for the six months ended June 30, 2022 (the "Reporting Period").

During the Reporting Period, the Company achieved total revenue and other income of RMB18.537 billion, representing a year-on-year decrease of 12.89%. Net profit attributable to shareholders of the Company reached RMB3.362 billion; basic earnings per share was RMB0.13. The Company’s total assets amounted to RMB624.958 billion, representing an increase of 3.98% as compared with the end of 2021.

In the first half of 2022, adverse factors such as recurring pandemic outbreaks, escalating geopolitical conflicts, and intensifying global and regional tensions brought unprecedented challenges to China’s national economic development, leading to fluctuations in the capital market. In the face of the pandemic and economic development pressures, the Company coordinated pandemic prevention and control measures with its operational management, committed to "seeking progress while maintaining stability", focused on its central responsibilities and businesses, and made full use of its professional advantages. During the reporting period, the Company achieved steady development in its four main businesses.

Business Highlights in 1H 2022:

The Company insisted on implementing the national strategies and achieved significant growth in terms of investment banking business. During the reporting period, the enterprise finance business of the Company recorded total revenue and other income of RMB1.500 billion. The Company adopted a series of measures to serve the national strategies, assisted high-tech enterprises and green environmental protection enterprises in financing through multiple channels, contributed towards rural revitalization, and actively implemented inclusive financial policies. During the reporting period, in terms of domestic equity financing, the Company’s total underwriting scale domestically was RMB16.174 billion. The Company acted as underwriter for 14 enterprises, ranking 10th in respect to total underwriting scale in the industry and marking a rapid rise in the Company’s ranking. The Company has proactively developed its inclusive finance business and fully promoted the development of small and medium-sized enterprises. It provided continuous supervision for 578 NEEQ-listed (National Equities Exchange and Quotations) enterprises, ranking second in the industry in terms of scale. Regarding the Company’s number of underwriting projects that have passed and or are under review by the Beijing Stock Exchange, the Company ranked among the top three in the industry. In terms of debt financing, the Company maintained good momentum with its development and further expanded its market influence. The number and scale of projects the Company was underwriter for ranked among the forefront of the industry. Meanwhile, the Company took the initiative to implement what was required to serve the national strategies, and took steps to expand and designate projects to specifically serve the national strategies and related specialized businesses. During the reporting period, most of the proceeds from bond issuances were applied in key areas such as epidemic prevention and control, dual carbon development, and tech innovation. The Company proactively helped to expand the financing channels of small-, medium- and micro-sized enterprises that were severely affected by the pandemic. During the reporting period, the Company issued the first euro-denominated bond, achieving a new breakthrough in terms of bond underwriting types.

Through commitment to empowerment from financial technology, the Company’s brokerage business has been transformed into wealth management. During the reporting period, the Company’s personal financial business segment achieved total revenue and other income of RMB6.535 billion, representing a year-on-year growth of 2.07%. The Company enlarged the scale of customers and assets in terms of its securities brokerage business, solidly provided basic services, and improved its more comprehensive service capabilities. At the same time, the Company further committed to the empowerment of fintech and started the construction of a new generation of mobile terminals. For its futures brokerage business, the Company accelerated the establishment and improvement of its "one base with two wings" business layout, which sets its agency business as the "one base" and its risk management business and wealth management business as the "two wings," deepening the collaboration between the securities company and futures company to enhance overall competitiveness. In the first half of this year, the average daily customer equity scale increased 51.83% year-on-year, reaching a record high. Hongyuan Futures seized market opportunities for its brokerage business and achieved an average daily customer equity of RMB13.465 billion, representing a year-on-year increase of 21.61%. The market-making business and over-the-counter derivatives business saw rapid developments as the number of market-making products increased to 15, and the new nominal principal amounted to RMB14.879 billion.

Overcame the adverse impact of the epidemic and continued to build a whole business chain for institutional business. For its institutional trading and service business, the Company coordinated and integrated internal and external resources in accordance with its product offerings to provide institutional customers with a comprehensive package of financial services, including research, products, and transactions. As for the PB System, its revenue continues to be in the top tier of the industry. The "SWHYMatrix" high-speed trading platform continued to improve functions and optimize performance. For the research and consultant business, SWS Research continued to practice its "Research + Investment + Investment Banking" strategy, effectively leveraged its brand advantages, focused on in-depth research, and continuously improved market influence. The Company overcame the unfavorable market environment with an industry-leading level of performance with its self-operated bonds. The Company adhered to its goal of maintaining "non-directional, low volatility, absolute return" equity sales and trading business, working towards the gradual transformation into a neutral "multi-asset, multi-strategy" optimized portfolio. In terms of its over-the-counter derivatives business, the Company maintained its competitive advantage, with its new and existing scale continuing to be at the forefront of the industry.

Continued to improve investment management capabilities; business quality and quantity saw further improvements. During the reporting period, the Company achieved a total revenue and other income of RMB927 million in regards to its investment management business, representing a year-on-year increase of 3.68%. The Company continued to focus on professional reforms as well as the enhancement and transformation of its active management capabilities, improving the construction of its product portfolio and promoting the construction of investment and research systems. The level of product investment management and investment performance saw significant improvements. The net income of the asset management business of the Company ranked ninth in the industry, with AUM increasing to RMB283.963 billion. SWS MU officially completed the implementation of its fund investment advisory business and QDLP business during the reporting period. The AUM of Fullgoal Fund exceeded RMB1.4 trillion, with the AUM of the pension business and special account business hitting record highs. Relying on the business advantages of the NEEQ, the Company strengthened its layout of enterprises with a focus on those featuring "specialization, refinement, differentiation, and innovation."

Looking ahead, the Company will continue to serve the national strategy as well as the real economy, optimize its business layout, and build a whole industry chain of investment and financial services supported by the capital market, providing clients with diversified financial products and services.

About Shenwan Hongyuan Group

Shenwan Hongyuan Group Co., Ltd (Stock code: 6806.HK; 000166.SZ) is a leading investment holding group focused on the securities business in China and committed to providing diverse financial products and services to its clients. The Group has established a longstanding leading position across multiple business lines in the PRC securities industry with quality growth, including enterprise finance, personal finance, institutional services and trading, and investment management. In January 2015, Shenwan Hongyuan emerged from the merger between Shenyin & Wanguo Securities and Hong Yuan Securities which was the largest merger in the PRC securities industry at that time and listed on Shenzhen Stock Exchange. In April 2019, Shewan Hongyuan issued H-shares and was successfully listed on the Hong Kong Stock Exchange.

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