CICC Performance Presentation: Responding positively to external concerns about investment banking business and salary issues

On September 20th, CICC held a mid-year performance briefing for 2024.

Chen Liang, Chairman of CICC, and other senior executives attended and responded to questions from many investors.

In the first half of this year, this "investment banking aristocrat" achieved operating income of 8.911 billion yuan and a net profit attributable to the parent company's shareholders of 2.228 billion yuan. As of the end of the reporting period, the total assets of CICC Group reached 599.104 billion yuan.

Chen Liang specifically addressed market concerns regarding the outlook for investment banking business, salary issues, and other matters.

Actively Addressing the Decline in Investment Banking Business

During this performance briefing, investors expressed concerns about the decline in investment banking business revenue.

Chen Liang, Chairman of CICC, responded as follows:

Firstly, in the first half of the year, net fee income from investment banking was 1.28 billion yuan, and the significant decrease in segment operating income was mainly due to the impact of the volatility of the Sci-Tech Innovation Board's market capitalization.

Secondly, the company will continue to leverage the traditional advantages of investment banking, assume the role of "gatekeeper" in the capital market, provide "blood transfusion and oxygen supply" to the real economy, and promote the diversified and balanced development of investment banking business.

The 2024 interim report disclosed that the operating income of CICC's investment banking business was 579 million yuan, a year-on-year decrease of as much as 70.1%.

It is worth noting that investment banking became the business with the highest year-on-year decline in revenue for CICC in the first half of the year.

Actively Seizing M&A Market Opportunities

Chen Liang further revealed the future layout of CICC's investment banking business.

Firstly, in terms of equity business, it will continue to consolidate its leading position in the Hong Kong stock market and actively explore new markets and new businesses.

Secondly, actively seizing M&A market opportunities, mergers and reorganizations are encouraged by policies and are also the company's business strengths. In the future, it will explore new growth points in asset restructuring, industrial integration, and other aspects.

Thirdly, the investment banking business will continue to strengthen in-depth research on industries and industrial chains, combine regional layout, enrich and optimize project reserves, and lay a solid foundation for long-term development.

Core Business Planning

Chen Liang also revealed the business plan for the second half of the year at CICC.

For example, in the investment banking business, while focusing on key projects, it will provide customized services around the demands of listed companies in the current market environment.

Furthermore, in the stock business, it will strengthen comprehensive services such as public offering insurance, leverage global sales network resources, and expand overseas regional clients.

Moreover, in wealth management, it will consolidate the advantages of the buyer-side advisory business, seize the historical opportunity of global asset allocation, quickly deploy assets, and promote cross-border wealth management services.

Personnel Compensation Policy Orientation

In the past two years, the salary reduction and employee reduction policies of leading domestic securities firms have attracted attention.

Chen Liang stated the following regarding CICC's talent policy: grasp the principles of fairness and reasonableness, build an excellent team of financial talents, continuously improve multi-position training mechanisms, expand business horizons, and strive to build a talent system that meets the company's development needs, supporting the company in maintaining competitiveness in domestic and international financial markets.

This undoubtedly also serves as a positive response to the recent attention to compensation issues from the outside world