In 2018, the futures industry is struggling.
China Futures Association data show that the future of the futures industry in 2018Net profit1.29 billion yuan, a decrease of 83.65% compared with 7.945 billion yuan in 2017; revenue decreased by 4.72% compared with 2017; industry fee income totaled 13.241 billion yuan, a year-on-year decrease of 9.25%.
With the continuous disclosure of the annual report, the performance of various futures companies and the overall development profile have also been announced.BrokerChinese journalists have counted 11 futures companies listed on the New Third Board and four head brokers futures subsidiaries such as CITIC Futures, Huatai Futures, Guotai Junan Futures and Galaxy Futures.PerformanceHappening.
Overall, 80% of futures companies' revenues have grown, with a total revenue of 39.245 billion yuan; however, net profit has declined, 15 futures companies' profits are only 2.648 billion yuan, of which 10 companies' net profit fell year-on-year. , accounting for 66.67%.
In the context of the overall decline of the industry, the net profit of the six head futures companies exceeded 200 million yuan, but the net profit of five companies showed a different degree of decline in 2017.
According to industry insiders, the rapid growth of risk management subsidiaries is the main reason for futures companies to increase their revenue. The overall net profit of the industry has fallen sharply, mainly due to strong supervision. The innovative business and asset management business have been greatly affected. The traditional brokerage fee business has been declining, and the risk management subsidiaries are still in the stage of not making money.
12 futures companies' revenue growth, Guangzhou futures increased by 401%
Under the background of de-leverage and overall economic downturn, the futures industry suffered a big impact in 2018, and the industry's profits fell seriously.
Up to now, 11 futures companies listed on the New Third Board, such as Yongan Futures, Haitong Futures, Guangzhou Futures, and Changjiang Futures, have disclosed 2018 annual reports or performance reports. In order to get a glimpse of the overall development of the futures company, the brokerage Chinese reporters included four head brokers and futures subsidiaries, including CITIC Futures, Huatai Futures, Guotai Junan Futures and Galaxy Futures, with a total of 15 futures companies.
Overall, there are 12 futures companies that have achieved revenue growth with a total income of 39.245 billion yuan. However, the profit of 15 futures companies was only 2.648 billion yuan, of which 10 companies' net profit fell year-on-year, accounting for 66.67%.
Specifically, in terms of revenue, Guangzhou Futures, Chuangyuan Futures, Bohai Futures, and Guotai Junan Futures all recorded revenue growth of more than 100% year-on-year, of which Guangzhou Futures' revenue growth rate was as high as 401.17%. Guangzhou Futures said in the annual report,Operating incomeThe substantial increase was mainly due to the gradual maturity of the business model of the risk management subsidiary, and the revenue from the risk management business increased significantly from the previous year.
In terms of net profit, Bohai Futures surged by 123.24% year-on-year, ranking first among 15 futures companies, and net profit exceeded 100 million yuan. In the annual report, Bohai Futures stated that the company’s net profit increased significantly, mainly due to the increase in the fee income of the parent company and the orderly development of the subsidiaries’ businesses. In addition, the net profit of Chuangyuan Futures also increased by 64.3%.
In the head futures company, only the Galaxy futures net profit growth
In 2018, the prosperity of the futures industry has dropped significantly. How do small and medium-sized futures companies struggle? As a result of the performance of the futures companies in the industry?
According to the statistics of brokerage Chinese reporters, in 2018, the net profit of six futures companies including Yongan Futures, CITIC Futures, Guotai Junan Futures, Haitong Futures, Galaxy Futures and Huatai Futures exceeded 200 million yuan, totaling 2.391 billion yuan.
The performance report of Yongan Futures shows that the net profit in 2018 reached 863 million yuan, which is still the most profitable company in the futures industry, and more than double the net profit of the second CITIC Futures 404 million yuan. In addition, the net profit of Guotai Junan Futures and Haitong Futures also exceeded 300 million yuan.
However, in the context of the overall decline in the industry, five of the six head futures companies experienced a different degree of decline in net profit. Among them, Huatai Futures' net profit fell by a large margin, down 6.78%, and the four head futures companies such as Yongan Futures, CITIC Futures, Guotai Junan Futures and Haitong Futures all had little decline in net profit, ranging from 1% to 3%. That is, the head futures company can basically maintain a stable net profit in the context of a sharp decline in the industry.
Galaxy Futures is the only company in the head futures company with a year-on-year increase in net profit, an increase of 10.38% compared to 2017.
It is worth noting that the revenues of the six head futures companies have increased in different degrees year-on-year. The revenue growth of Yongan Futures, CITIC Futures and Guotai Junan Futures both exceeded 60%.
Yongan Futures pointed out in the report that the main reason for the increase in operating income was the expansion of the spot trading volume of risk management subsidiaries and the increase in sales revenue; the overall development of the company's various segments was balanced, overcoming market unfavorable factors and maintaining relatively stable.
Haitong Futures also pointed out that during the reporting period, the company increased its innovative business while stimulating traditional brokerage business through market means, and other agency income increased year-on-year. Compared with the previous ones, the changes are mainly reflected in two aspects: First, the net fee income decreased by 19.53% year-on-year; second, the other business income increased by 26.03% compared with the previous period, mainly due to the expansion of the business scale of the resource subsidiaries.
Why does the revenue increase and the net profit decline?
Why do the revenues of a number of futures companies have increased substantially, and the net profit has declined?
According to industry insiders, under the strong supervision, the innovation business and asset management business have been greatly affected. The traditional brokerage fee business has been declining. The risk management subsidiaries are still in the stage of not making money, and it is difficult to have good income-generating means.
Referring to the head futures company, in the past, the gross profit of traditional brokerage business has generally declined. The head futures companies are basically making innovations in their business. They first use the risk management subsidiary business to make big revenues and explore transformation.
According to the annual report data, the net income of brokerage business of Guotai Junan Futures in 2018 was 395 million yuan, down 11.6% from 447 million yuan in 2017; the net income of brokerage business of CITIC Futures was 357 million yuan, compared with 403 million yuan in the same period of 2017. The decline was 11.4%; the brokerage business income of Galaxy Futures was 315 million yuan, down 14.6% from 369 million yuan in 2017.
The industry as a whole also showed a downward trend. In 2018, the industry fee income totaled 13.241 billion yuan, a year-on-year decrease of 9.25%.
In addition, in 2018, the monthly average customer interest in the national futures market in 2018 was 405.955 billion yuan, a decrease of 4.00% compared with the same period in 2017. That is to say, the overall prosperity of the futures industry has declined in 2018.
Let's look at the risk management business of the futures company. The accumulated net profit in 2018 was -1.356 billion yuan, a year-on-year decrease of 251%. The accumulated net profit decreased more, mainly because of the company's provision for large asset impairment losses. Even so, the accumulated net profit of the remaining 78 companies was only 764 million yuan, of which 58 companies were profitable, with a total profit of 877 million yuan.
It is worth noting that the revenue of the risk management business in 2018 was 113.246 billion yuan, a year-on-year increase of 34%, but the business is still not making money.
Galaxy Futures believes that the futures industry will continue to maintain a strict regulatory trend in 2019, and homogenization competition is still the real environment faced by futures companies. The domestic economy faces multiple challenges such as trade frictions and downturns in real estate, which will form a certain suppression of the overall commodity price trend at the demand side. The normalization of stock index futures is expected to continue, commodity options will be further expanded, and the internationalization of the futures market is expected to accelerate. Some futures operating agencies are actively exploring new modes of business transformation.
(Article source: brokerage China)