- Continued Advancements in Digitalization and Diversification Bore Fruit
HTSC (HKG: 6886; the Company), a leading global financial services provider, today announced its annual results for the year ended December 31, 2021.
2021 continued to be an unusual year filled with global economic challenges, market fluctuations, and the persistent impacts of COVID. HTSC weathered these winds by evolving from a traditional intermediary to a global financial services provider with a comprehensive arsenal of digital tools. In 2021, this resilience was underpinned by a younger client base, globally connected institutional services and upgraded ESG rating of “A” from MSCI, underlining the management’s resolution to join its international peers.
Total revenue and other gains amounted to RMB 51.93 billion, an increase of 28.10% compared to the previous year, primarily driven by revenue growth in the wealth management segment of 34.31% to RMB 26.16 billion and institutional services segment of 18.72% to RMB 12.50 billion.
Profit for the year attributable to shareholders was RMB 13.35 billion, exhibiting a year-on-year increase of 23.32%, primarily due to growing market share and enhanced profitability.
Basic earnings per share was RMB 1.47, an increase of 22.50% from last year. The Board has recommended the payment of a final dividend of RMB 0.45 per share.
Total Assets was RMB 806.65 billion by the end of reporting period, representing an increase of 12.54% year-on-year. Net Assets was RMB 152.04 billion, representing an increase of 14.91% year-on-year.
The Company’s personal and institutional clients added up to 20 million. MAU of ZhangLe Wealth exceeded 11 million, boasting a 40% Gen Z user base, with cumulative downloads amounting to 65.32 million, an increase of 7.24 million from 2020.
BUSINESS AND STRATEGIC UPDATES
Total Number of Clients Reached 20 Million
As of December 31, 2021, the Company provides service for over 20 million personal and institutional clients, solidifying the Company’s leading position in the industry.
HTSC’s wealth management segment reported an annual revenue growth of 34.31% to RMB 26.16 billion year-on-year, accounting for 50.38% of the Company’s total. HTSC’s institutional services segment continued to thrive in the second half of 2021, with annual revenue growing 18.72% to RMB 12.50 billion year-on-year, accounting for 24.06% of the Company’s total.
Revenue attributable to the investment management business segment increased 2.26% to RMB 4.16 billion year-on-year as the market is undergoing structural transformation. The Company’s international business segment maintained its upward trend, with revenue increasing 42.19% to RMB 7.89 billion year-on-year.
As of December 31, 2021, ZhangLe Wealth, HTSC’s flagship wealth management App, saw its MAU surge to over 11 million. The app boasts cumulative downloads of 65.32 million, an increase of 7.24 million from 2020, while commanding a 40% Gen Z user base.
As of December 31, 2021, total assets of clients exceeded RMB 5.4 trillion. The trading volume of stocks and funds in 2021 amounted to RMB 42.29 trillion, retaining the top spot in the industry . According to data released by the Asset Management Association of China (AMAC), HTSC was ranked second in the sales of equity and mixed mutual funds and non-money-market mutual funds. HTSC’s fund advisory service platform has more than 700,000 users, and the size of authorized assets has grown to RMB 19.51 billion.
Cross-Border Business on the Rise
As of December 31, 2021, Huatai International had total assets of over HKD 200 billion, maintaining its best-in-class ranking among Chinese securities companies in Hong Kong. The Company’s international business continued to expand to accommodate institutional clients with more diverse and complex needs amid market volatility.
HTSC’s US subsidiary AssetMark – a leading US turnkey asset management platform (TAMP) which serves 8,649 investment advisors with 11.1% market share – saw strong growth, with total assets under management reaching USD 93.49 billion at the end of the reporting period, an increase of 25.45% over the previous year.
In 2021, the Company sponsored six Hong Kong IPOs and two US IPOs and successfully sponsored 109 listings in the STAR and ChiNext market, ranking in the top three among peer companies. The Company also acted as the underwriter of a handful of landmark A-share IPOs, including that of China Mobile, China Telecom and China Three Gorges Renewables.
As of December 31, 2021, the Company’s principal underwriting for equities was RMB 176.25 billion. Principal underwriting for bonds which focused on local government bonds and corporate bonds amounted to RMB 931.10 billion. The Company’s bond and equity underwriting businesses retained their industry third and fourth rankings respectively.
According to the China Securities Regulatory Commission (CSRC), HTSC advised on 16 M&A and 16 restructuring projects, ranking first in the industry. Of the projects, nine were approved by the CSRC, including that of Energy China and Jiangsu Eastern Shenghong, with a total transaction volume amounting to RMB 64.89 billion, securing a top three position in the industry for both the number of approved transactions and total transaction volume.
Technology Empowerment Remains Key to Growth
Heralding the third year in HTSC’s digital transformation strategy, the Company continued to invest in its technological innovation and R&D capabilities. As of December 31, 2021, the Company’s R&D personnel accounted for 22% of all employees, while total investment in technology amounted to RMB 2.23 billion with a CAGR of 27.1% from 2018 to 2021.
In 2021, HTSC’s Securities Lending Path 3.0 – the first securities lending platform in the industry – had new user growth of 215%, while the Company’s balance of securities lending amounted to RMB 24.71 billion, with a market share of 20.56%. The ZhangLe Wealth App was updated 28 times in 2021, and is now at version 8.0. The HTSC Connect App was also upgraded to offer full coverage for 29 industries, and saw an 50% increase in institutional users, with the volume of sub-position transactions for mutual funds reaching RMB1.43 trillion.
The Company also entered into strategic partnerships with various cloud computing and AI companies, to create synergy and enable the acceleration of the Company’s digitalization.
ESG Strategy Instrumental to HTSC’s future
In 2021, HTSC was given an upgraded ESG rating of “A” from MSCI, the highest rating among all domestic security companies. As cornerstone of the Company’s strategy, ESG adds long-term value to all business segments, ultimately benefiting all stakeholders within HTSC’s ecosystem.
In this year, Huatai Asset Management, a fully-owned subsidiary, launched the first asset management product which proactively finances green industries while donating a portion of the management fee into biodiversity protection. In July 2021, Huatai Asset Management became a signatory of the United Nations-supported Principles for Responsible Investment (UNPRI), and is the largest asset management company among domestic signatories.
Furthermore, the ecological conservation project “Yixin Huatai – One Yangtze River” was recognized in “100+ Biodiversity Positive Practices and Actions Around the World”, published by 15th Conference of the Parties (COP15) of the Convention on Biological Diversity (CBD)’s.
In 2021, the Company donated RMB20 million to establish the Huatai Foundation and will continue to support the foundation accordingly, representing the Company’s dedication toward sustainable development.
For enquiries, please contact:
Citigate Dewe Rogerson
Tel: +86 10 6567 5056
Tel: +852 3103 0118