China Galaxy during this painful: investment banking revenues declined over five percent set by the self-quilt

On Wednesday night, China Galaxy report card released in mid-2017, and its overall performance is worse than the industry average, excessive reliance on brokerage, investment banking fell over half, self-employed business participation set by the quilt, which is caught in the throes of business transformation in。  March 28 annual brokerage colorful evening。Both the brokerage market share of the first Huatai Securities, also the largest business department of China Galaxy, as well as the industry started the brokerage business transformation "first shot" of the State Securities。  Light from the financial data, China Galaxy in mid-2017 performance is not satisfactory。The year the company achieved operating income of 113.4.4 billion yuan, down 14 year.32%; net profit attributable to shareholders 39.8.1 billion yuan, down 22.76%。Basic earnings per share were 0.39 yuan, the weighted average return on net assets 6.33%。  According to China Securities Industry Association data, in 2017, China's securities industry revenue 311.3 billion yuan, down 5 year.09%; net profit of 113 billion yuan, down 8 year.47%; ROE 6.45%, down 1 year.68 points。China Galaxy in mid-2017 the overall performance worse than the industry average。  Brokerage business accounted for 77% of the restructuring implemented in recent years and many brokers like China Galaxy also among the changes in。In mid-2017, the company's business model is adjusted by "a nuclear wings, collaborative development" to "two-wheel drive, collaborative development"。To achieve its vision "to build the aircraft carrier brokerage, establishing a modern investment bank" that has become all-brokerage。  In this context, we look at China Galaxy in mid-2017 each business line operating conditions。The figure is China Galaxy for the general classification of business lines: China Galaxy brokerage business is still the largest source of revenue and profit。Brokerage business in 2017 operating income of RMB 87.5.8 billion yuan, down 11.99%, mainly due to the A-share market trading volume and commission rate of decline caused by shrinkage, but its accounting for up to 77 operating income.20% more than in 2016 Annual Report 75.17% even improved 2.03 points。  This is significantly higher than other large brokerages – – Annual Report 2017 mid-brokerage business has accounted for only a proportion of less than 25% of CITIC Securities revenue structure。Everbright Securities Similarly, brokerage, and wealth management business remains its highest income sectors, but the proportion has fallen to 25%。  In the case of China Galaxy, higher brokerage income share on the one hand there are historical reasons, on the other hand there is a certain relationship with the company strategy。  year 2006?In 2010, China Galaxy brokerage market share, net income from securities trading agency business, customer transactions settlement funds industry ranks first three indicators。2007 bull market, stock-based China Galaxy total transactions reached 3.01 trillion yuan, about 15% higher than the second Guotai Junan。  In recent years, China and Thailand, the State and other brokerage firms using technology to Dongfeng, seize the brokerage market through online marketing, and achieved outstanding results。Huatai Securities stock-based market share for three consecutive years won the China Galaxy declined – according to the Shanghai Stock Exchange and the Shenzhen Stock Exchange data, the company's total stock industry ranked No. 5 in market share 4.57%; by the end of 2017, the balance of the industry ranked fourth, the market share of 5.56%。  It is worth mentioning that in mid-2017 the company still contrarian increased new business department layout。China Galaxy official told the "Daily News" reporter revealed that in 2017 the company set up a 112?Sales type。"This business department, he can not take the old traditional channel business, certainly dead。The current financial technology, customers can provide more intuitive and more convenient service, not only allows small investors to enjoy the convenience, but also to attract institutional and high net worth clients has a direct effect。"According to him, with the technology and the power of marketing, have?Type business department opened a year and a half to achieve profitability, and traditional open new business department profit cycle is generally three years。  The report shows that as of the end of 2017, the number of business department of China Galaxy has as many as 470, throughout the various centers in the city; in addition to the overseas futures business outlets and 26 outlets to provide customers with extended service。By the end of 2017. The company has 9.7 million brokerage customers, an increase of 10 compared with 2016.6%; investment banking services over 350 corporate customers。How will the huge line resource for collaborative interaction in the age of technology and online, has become a major test in transition Galaxy。  From the point of view the annual report, the company's management for 2018 brokerage market cautiously optimistic: 2018 stock market as a whole has stabilized, steady upward index, trading volume gradually repair。Traditional brokerage business, led the organization will drive incremental funding to enhance the stock trading volume, the index will drive steady growth in trading activity improved, the bottom line of the industry to explore commission gradually forming consensus。  Credit business, the market risk appetite improved, the two financial scale steadily upward, two financial industry intensified price competition, have the bargaining power to further expand the customer base。  Stock pledged repo business as one cash flow-control channels listed companies, is still rising channel, the scale is expected to increase, the introduction of new information management rules will make financing brokerage and information management is subject to certain restrictions。  Institutional sales trading business, fund sub-storage, insurance and information management and QFII, RQFII market competition will become more intense, it is necessary to further improve the research capabilities and customer service levels, improve coordination, collaboration, and strengthen business innovation systematic。   – From "China Galaxy 2017 Annual Report," over half of the decline in investment banking brokerage business accounted for the bulk, other businesses are not high contribution of natural。Let us look at China Galaxy case of other business segments。  Investment banking aspects, in mid-2017 the company investment banking business achieved operating income of RMB 4.9.2 billion yuan, compared with 2016 decreased 53.78%, mainly because of the small number of pre-project reserves, three new board due to the gradual depletion of liquidity。If watching the proportion of income, it is less than 5%。  Equity financing, the company just completed 3 single-IPO project (main underwriting amount of RMB 12.3.2 billion yuan), 1 single M & cum matching funds project。  Bond financing performed relatively well in 2017, the company underwriting of debentures total 98, an increase of 42.03%, underwriting amount 714.8.1 billion, down 13 year.56%。  Three new board terms, subject to market reasons, the company completed 16 new board recommendation listing projects, reducing 28 compared with 2016; the completion of 10 new board stock issuance programs to reduce 10 compared with 2016; listed companies to raise capital of RMB 9.4.5 billion yuan, down 53 year.38%; new online market-making project 3, compared with 2016, reducing 29。  In this regard, China Galaxy said that one of the main objectives in 2018 the company investment banking business is diversified income structure change。  Equity financing to implement three: First, seize the opportunity to reform state-owned enterprises, state-owned enterprises and local governments to make state-owned platform for financial advisors; the second is based on services and manufacturing entities green finance, in response to the "Made in China 2025" strategy, support the transformation and upgrading of national manufacturing and green development; Third, aid Galaxy international Holdings and CIMB were outside layout, cross-border business, accelerate the process of internationalization。  Bond financing on the one hand to enhance the sense of innovation and product lines, to further enrich the supply varieties of bonds, the bond market to accelerate product innovation; on the other hand by means of huge outlets system, and establish different levels of sales system to further enhance sales strength。  The three new board company's business judgment, 2018 new three-panel market may be a fundamental reform opportunity appears, there are steps to the east wind to promote the company's new three-panel business transformation and upgrading。  2016 10 terms of participation A shares quilt set by the investment management business, performance is not satisfactory。  Report shows that in mid-2017 and other self-employed securities trading services operating income 3.8.4 billion yuan, compared with 2016 decreased 66.30%, operating income accounted for 3.39%。  Three reasons for the decline in revenue is – industry holdings of the company's new regulations set by the positions can not be realized as planned, revenue performance as expected。Market "bear bond market, your money," the corporate bond investment business revenue fell slightly。The Company's derivatives business profits increasingly thin margins。  Annual Report of China Galaxy and did not participate too much detail set by the position situation。However, according to financial terminals statistics, in 2016 the company has been involved in as many as 10 A-share listed companies set by the 2017 also participated in the petrochemical set by the satellite, these restricted period are set by the 12-month。In addition to satellite currently set by the foreign petrochemical 2016 were involved in succession to the lifting of the ban。Below is a detailed breakdown: As shown, including satellite, including petrochemicals, set by the initial cost of these more than 3.2 billion yuan (not including Jinhui Galaxy, Galaxy capital two subsidiaries), but is still restricted period of addition outside the satellite petrochemical, 2016 set by the participating 10 times, without exception, all appeared Fukui。Fukui largest province wide shares, price per share set by the participation of 13.$ 58 after 10 before the right to re.41 yuan, March 28 closing price of the latest 4.65 yuan, Fukui up to 55.33%。  Province wide shares since September 23, 2016 has weekly chart in the first quarter of this year, the provincial wide share price continued to fall。Late last year it closed at 5.$ 33 since the first quarter of this year fell again by 12%, so China Galaxy expand on it further losses。  The auditors even been aware of this, and said: "We recognize the equity Impairment of available for sale financial assets is a key audit issues。"Ultimately China Galaxy Financial assets available for equity provision 6.3.9 billion yuan impairment。  On December 31, 2017, equity available for sale financial assets amounted to RMB 179.0.9 billion yuan, of which fair value was RMB 176.4.1 billion at cost less impairment listed after RMB 2.6.8 billion yuan。  On December 31, 2017, for equity at fair value of available for sale financial assets, due to the fair value below cost, Fukui generated RMB 6.1.2 billion, and included in other comprehensive income。Management fell determine the fair value of the equity portion of financial assets is significant or prolonged, which in the current year provision for impairment of RMB 6.3.9 billion yuan。  For the cost of equity to listed available for sale financial assets, the cumulative impairment of RMB 1.4.8 billion yuan。Management needs to determine whether signs of impairment appear and present value of estimated future cash flows to determine the amount of impairment。This year, the management's judgment, is not listed on the cost of new equity financial assets accrued any impairment。   – "China Galaxy 2017 Annual Report," a Foreign Operation: 2016 was essentially flat with the terms of the overseas business, China Galaxy in mid-2017 the performance was quite satisfactory。  The company's overseas business income is still mainly rely on in Hong Kong, China Galaxy International Holdings achieve。Galaxy International Holdings mid-2017 operating income of RMB 3.4.6 billion yuan, compared with 2016, down 1.18%。  Based on the overseas business layout, June 6, 2017, Galaxy International Holdings and Malaysia's CIMB Group signed a "non-binding investment provisions" in the October 17, 2016, to further the signing of "CIMB Securities International Pte Ltd share Purchase agreement "。After the Closing, the company's overseas business platform will be extended to eight countries in addition to China, Hong Kong, Malaysia, Singapore, Indonesia, Thailand, India, South Korea, the United States and the United Kingdom。  Tucao bonus credited into account the investment bank said it has not allocated a word, China Galaxy this annual report, though not beautiful, but it is in the first year of a three-year transformation of poverty, plus the monthly report released every month, lower than market performance has not expected。In the annual report published the same day, the microblogging also making for a gossip about the company, it seems to add a touch of drama to publish a special color for serious Annual Report。  Well-known blogger Cao rocks March 28 afternoon micro-Bo, "Galaxy Securities, look no bonus。"Content multi-point Galaxy Securities investment bank regarding the year-end bonus is not paid。Dear friend who did a poem and fill in the word, has not been credited into ridicule bonus。  In this regard, the reporter consulted the China Galaxy stakeholders, the answer is clear: "The company has the prize money appropriated for the investment bank, investment bank last year was the transformation mechanism reform, needs to do a detailed distribution plan。"And there is one detail worth Attention – May 2017," Daily News "reporter won a January 2017 National Working Conference inside the Milky Way。Which clearly referred to: "Crisis Forced reform, 2017?2019 became Galaxy Securities no retreat back, turning crises into opportunities in transition。"October 2016, the Securities Association of China Chen Yan served as co-chairman of China Galaxy, which he surrendered the first full annual report respondents。  Mr Chan Yan, chairman, president Gu Weiguo, and a number of directors, vice-president are 55 years of age; the youngest executives are Mr. Luo Liming, director of IT and the Internet, 42 years old。  In the financial technology today, China Galaxy at the same time change, whether and how to introduce more cutting-edge power?The answer will be revealed in the river of time。