Huatai Securities provides guarantee for its subsidiary's $169 million medium-term notes issuance

Raytheon Finance News | Feng Xiuyu Edited | Li Yihui

On March 5th, Huatai Securities (Stock Code: 601688) announced that its wholly-owned overseas subsidiary Huatai International Financial Holdings Limited, through its affiliate Huatai International Financial Limited, will issue four tranches of medium-term notes under the medium-term note program, with issuance amounts of HKD 200 million, USD 43 million, HKD 160 million, and USD 80 million, totaling USD 169 million. Huatai International provides an unconditional and irrevocable guarantee for these notes.

As of the disclosure date, the guarantee balance of Huatai International Financial is USD 2.857 billion. Huatai Securities and its controlling subsidiaries have a total external guarantee amount of RMB 51.45 billion, accounting for 26.84% of the company’s latest audited net assets.

The main purpose of this guarantee is to support business development and supplement daily operating funds. The guarantee risk is controllable and will not harm the interests of the company and shareholders.

According to Tianyancha, Huatai Securities was established on April 9, 1991, with a registered capital of RMB 902.686 million. The legal representative is Wang Huiqing, and the registered address is No. 228 Jiangdong Middle Road, Nanjing. Its main business includes securities underwriting and sponsorship (excluding government bonds, non-financial enterprise debt financing instruments, and financial bonds); financial advisory related to securities trading and investment activities; and other businesses approved by the China Securities Regulatory Commission.

Currently, the company’s chairman is Wang Huiqing, the secretary of the board is Zhang Hui, with 15,027 employees. The actual controlling shareholder is the State-owned Assets Supervision and Administration Commission of Jiangsu Provincial People’s Government.

The company has 72 associated companies, including Huatai Securities (Shanghai) Asset Management Co., Ltd., Huatai Capital Management (Hong Kong) Limited, Huatai Zijin Investment Co., Ltd., Huatai United Securities Co., Ltd., Huatai Futures Co., Ltd., and others.

In terms of performance, the company’s operating income for 2022, 2023, and 2024 was RMB 32.032 billion, RMB 36.578 billion, and RMB 41.466 billion, respectively, with year-on-year growth rates of -15.50%, 14.19%, and 13.37%. Net profit attributable to the parent was RMB 11.053 billion, RMB 12.751 billion, and RMB 15.351 billion, with year-on-year growth rates of -17.18%, 15.35%, and 20.40%. During the same period, the company’s asset-liability ratio was 80.17%, 79.88%, and 76.43%.

Regarding risks, Tianyancha data shows the company has 383 internal Tianyan risks, 18,961 surrounding risks, 776 historical risks, and 2,744 warning alert risks.