According to the Hong Kong Stock Exchange, on April 10, Shenwan Hongyuan Group Co., Ltd. passed the hearing of the Hong Kong Stock Exchange, and Shenwan Hongyuan Hong Kong, Goldman Sachs, ICBC International and ABC International were its joint sponsors.
Shenwan Hongyuan is an investment holding group with securities business as its core. According to the Chinese Accounting Standards, the company's net assets as at December 31, 2018 ranked seventh among all securities companies in China, and its operating income and net profit in 2018 ranked fifth and seventh, respectively. In 2018, its weighted average ROE under China Accounting Standards ranked third among the top ten securities firms in China in terms of 2018 net assets.
In January 2015, the company completed the largest merger in Chinese securities history at that time (according to Dealogic data), integrating Shenyin & Wanguo Securities and Hongyuan Securities. Its corporate structure features "investment parent company Shenwan Hongyuan Group + securities subsidiary Shenwan Hongyuan Securities", and its main business lines are as follows:
During the Track Record Period, the year-on-year decrease in the revenue and other income of Shenwan Hongyuan's corporate finance business was mainly due to the decrease in the number of completed A-share IPOs in the market in 2018, and the cycle of its equity underwriting projects in 2018 compared to 2017 The overall market for debt financing business in older and 2017 contracted compared to 2016.
In 2016, 2017 and 2018, the total revenue and other income of Shenwan Hongyuan were RMB21718.9 million, respectively , 20924.6 million yuan and 24109.6 million yuan. As of December 31, 2016, 2017 and 2018, its total assets were RMB 275,489.3 million, RMB 299,943.3 million and RMB 347,725 million, respectively, and the total equity attributable to shareholders of the company was RMB 52,304.8 million and RMB 55,197.2 million, respectively. 10,000 yuan and 693.993 million yuan. In 2016, 2017 and 2018, the revenue of Shenwan Hongyuan (Hong Kong) and its subsidiaries were HK$416.5 million, HK$546 million and HK$519.6 million, respectively, accounting for 1.7% and 2.3% of the total revenue of Shenwan Hongyuan, respectively. and 2%.
According to Wind information, as of December 31, 2018, the total market value of Shenwan Hongyuan's client assets under custody was 2.4 trillion Yuan, with a market share of 7.1%, ranking among the top three in China's securities industry. As of December 31, 2018, the company had more than 6.5 million personal finance customers, including more than 19,000 high-net-worth customers and more than 253,100 affluent customers. According to the public information disclosure statistics of listed securities companies, as of December 31, 2017, the number of securities branches of the company ranked fourth in China's securities industry.
As of December 31, 2018, the total asset management scale of Shenwan Hongyuan's investment management business was RMB 731.7 billion. As of the same day, according to Wind Information, the total asset management scale of its securities company asset management business was 674 billion yuan, ranking fifth in the industry.
In 2016, 2017 and 2018, Shenwan Hongyuan's operating cash flow before changes in working capital was positive. In addition, as at 31 December 2016, 2017 and 2018, its net current assets were RMB84,098.8 million, RMB78,348 million and RMB92,473.7 million, respectively.