Guotai Junan International Holdings Limited ("Guotai Junan International", Stock code: 1788.HK) has announced its annual results for the year 2019 (as of December 31). Looking back, the Group saw a 40% YOY increase in total revenue, recording HKD 4,246 million approximately, achieving historic high. The profit attributable to shareholders amounted to HKD 895 million, representing a YOY growth of approximately 12%. The Board recommends that the payout ratio rises to 57% and total dividends increase by 27% yearly. In 2019, the Group's revenue structure has become more balanced. In the year, the fee and commission income, interest income and investment income accounted for 33%, 36% and 31% of the total revenue, respectively. In terms of investment income, the coupon of fixed income accounted for 20% of the total revenue, and trading income recorded after fair value accounted for 11%. In recent years, the Group has been practicing strategic adjustment to improve risk-adjusted return ratio on capital. The Group's fee and commission income has greatly increased by 26% to HKD 1,419 million, achieving a record high. The income from brokerage, corporate finance and asset management has increased by 17%, 36% and 118% YOY, respectively. In 2019, the Group's wealth management platform has continuously attracted high-quality clients, brokerage income increased by 17% YOY to HKD 531 million, in which commission fee from securities trading rose by 23% to HKD 453 million. In November 2019, the Group became the third Chinese-funded financial institution to qualify to issue structured products in the Hong Kong market, and launched its Derivative Warrants and Callable Bull / Bear Contracts products. In 2019, the Group has maintained its leading role in debt capital markets, with underwriting fee increased by 23% YOY to HKD 594 million. The number of completed underwriting deals and the amount of raised funds in primary debt securities market achieved record high, with a total of 189 debt issuances, assisting corporates raising funds of nearly HKD 423.3 billion. In the future, Guotai Junan International will continue strengthening its capabilities in wealth management services and global asset allocations, offering one-stop comprehensive investment and financing solutions. Meanwhile, the Group will adhere to its core objective to increase risk-adjusted return ratio on capital and reward clients and investors for their long-term support with a steady, sustained and high compound growth. Source: Guotai Junan Securities