Investment income increased by 65%! CSC's annual report officially released!

On the evening of March 27, CSC disclosed its annual report.

The annual report shows that CSC's total operating revenue for 2024 was RMB 21.129 billion, a year-on-year decrease of 9.10%; the net profit attributable to shareholders of the parent company was RMB 7.223 billion, a year-on-year increase of 2.68%.

This "mixed" financial report reflects the business challenges faced by leading securities firms in a "hot and cold" market environment.

Wealth Management "Shines Alone"

CSC's performance in its main business over the past year is as follows:

The investment banking segment achieved total operating revenue of RMB 2.491 billion, a year-on-year decrease of 48.14%;

The wealth management segment achieved total operating revenue of RMB 6.610 billion, a year-on-year increase of 8.97%;

The trading and institutional client services segment achieved total operating revenue of RMB 8.053 billion, a year-on-year increase of 0.46%;

The asset management segment achieved total operating revenue of RMB 1.256 billion, a year-on-year decrease of 14.17%.

Investment Income Increased by 65%

CSC's financial statements show that investment income for 2024 was RMB 7.601 billion, an increase of 65% compared to 2023, explained by an increase in the income from trading financial assets.

It is noteworthy that another key financial indicator for CSC in 2024—net cash inflow from operating activities—was RMB 29.500 billion, compared to a net cash outflow of RMB 20.057 billion in the same period last year, mainly due to changes in financial instruments held for trading purposes and the variation in securities trading agency funds leading to an increase in net cash inflow from operating activities.

IPO Lead Underwriting Quantity Takes the Crown

In 2024, significant changes occurred in the policy and environment of the primary market for equity financing in China, with a decrease in the number of IPOs and equity refinancing projects issued and under review, as well as a reduction in financing scale.

Against this backdrop, CSC completed 27 A-share equity financing projects, with a lead underwriting amount of RMB 15.060 billion, ranking 2nd and 3rd in the industry, respectively.

Among them, the number of IPO lead underwritings was 12, with a lead underwriting amount of RMB 6.177 billion, ranking 1st and 3rd in the industry, respectively.

In addition, CSC completed 6 convertible bond projects for listed companies, with a lead underwriting amount of RMB 5.822 billion, ranking 1st in the industry.

ZhiShiTang also noted that CSC maintains a "leading advantage" in the debt financing sector.

The annual report disclosed that in 2024, a total of 4,021 lead underwriting projects were completed, with a lead underwriting amount of RMB 1.65 trillion, ranking 2nd in the industry.

High Net Worth Client Numbers Reach a 5-Year High

Looking at the entire annual report, CSC's wealth management business has become the engine for revenue growth Data shows: In 2024, CSC's brokerage business developed 1.9902 million new clients, a year-on-year increase of 62.73%, with the number of high-net-worth clients reaching a five-year high. The scale of financial products held is close to RMB 240 billion.

In addition, this brokerage disclosed margin financing and securities lending data, with a margin financing and securities lending balance of RMB 62.82 billion, accounting for 3.37% of the market; there are 194,900 margin financing and securities lending accounts, a year-on-year increase of 6.30%; the market share of net new credit account openings is 2.68%, a year-on-year increase of 39.99%.

Growth in "Technical Content" Business

Zhitang noticed that listed brokerages rarely disclose specific details of their prime brokerage business in annual reports, but CSC has made it a business focus.

CSC disclosed: As of the end of this reporting period, the company had 18,700 active prime brokerage (PB) service clients, an increase of 15.72% year-on-year; a total of 29 public fund companies and 10 insurance asset management institutions are using the company's algorithm trading services, with 234 clients using the company's agency entrustment services, trading a total of 350 targets.

The annual report also revealed: In 2025, the company will improve trading performance, completion rates, and automation levels through an embedded algorithm platform, providing clients with a more convenient trading experience.

Exposure of Sell-Side Team Size

CSC disclosed: As of the end of 2024, the company's investment research business has a research, sales, and operational support team of 287 people, with research divided into 10 major industry groups covering 41 research areas