證券公司年度商業(yè)計(jì)劃書【英文版】

1、1證券公司年度商業(yè)計(jì)劃書1、Profile of Western XX Asset Management Co.,Ltd. 2、Organizational Structure 3、Business Development Strategies 4、Roadmap 5、Assumptions and Forecast 6、Sales Breakdown in 200521、 Profile of Western XX Asset Management Co.,Ltd. 3Registered Capital and Share StructureRegistered Capital: RMB

2、100 millionRegistered Place: Pudong District, Shanghai, ChinaProposed Share Structure: Western Securities Co., Ltd. RMB 40 million Other foreign sponsor RMB 33 million Shaanxi Investment Group Co.,Ltd. RMB 27 million 4Business ScopeFund management and investment advisory business in China as permitt

3、ed by the applicable law. (incl. promotion, sale,issuance and management of investment funds)Other asset management business permitted by the applicable law.5Vision, Philosophy and StrategyVisionOne of the leaders in the great China wealth management PhiloshophyInvestors benefits are everythingStrat

4、egyBrand, Service and Product all in one 6Business GoalGrow the JV into one of the top 5 FMCs in China, in the following three categories: Profitability Fund Performance Total AUM Professionalism 72、Organizational Structure8FMCs Organization Chart (at the beginning)CEO(1)CMO(1)CIO(1)CEO/COO(1)Sales&

5、 CustomerService(5)Marketing&Productdevelopment (3)Head of Compliance(1)R&D(5)Fund Manager(2)BODChairman(1)Trader(2)FundAccount-ing&TA(3)IT(2)Admin&HR(2)Auditing&Compliance(2)32 persons in the 1st year(proposed)9FMCs Organizational Chart (in 3 years ) Customer Service Dept.CMOCIOCOOFund Manage-ment

6、Dept.Fund dealing Dept.R&DDept.CEOTA IT Dept.HR&Admin. Dept.FundSales Dept.Marketing Dept.Strategy researchFinance engineer-ingIndustry& Company researchCentraldealing roomCall centerFundAccount-ingMarket-ing &Productdevelop-mentDirect saleAgency saleOASystemmaintain-enceComplianceofficeAuditing&Sup

7、ervis-ingInfo.disclosureHead of Compliance10 Structure of GovernanceBoard of directorsQualification examination and compensationcommitteeCEOThe shareholders meetingBoard of supervisorsThe compliance committeeHead of Compliance11 Structure of Business OperationCEOInvestment decision committeeRisk con

8、trol committeeFund appraisal groupCMOCIOCOOHead of Compliance123、Business Development Strategies13Adding long-term value DistributionChannelsClients baseLocal market acknowledgement22 branches, strategic cooperation with ICBC, CCB etc.700，000 individual clients, main institutional clients exceed 400

9、 Excellent performance record, good reputation , Strong government support, Opportunities from the development of western China ProfessionalismInternational experienceProductdevelopmentInternational standard in FM. & research Organizational Know How;International management teamFund product innovati

10、on& importation14Outsourcing Value-addedbusinessMarket SegmentationProduct DesignPromotion/Fund DistributionResearch and DevelopmentFund Transaction/ Investment ManagementRisk Control/ Performance evaluation Non value- addedbusinessComplianceHR/ Administration IT MaintenanceCustomer ServiceTA/ Fund

11、accountingInternal AuditOutsourcing to the reliable third-party15Market SegmentationMarket analysis Market volume 182 billion units in 2003 Growth rate Aver. annual growth rate 50% New opportunities QFII,National Security Funds asset allocation Deregulation in fund issuance procedureCustomer segment

12、ationInstitutional v.s. Individual clients 40%v.s.60%(estimate) Internal sales package A.M. clients transfer into funds holders 16 Customer Needs AnlysisReturnSafetyLiquidationGovernmentOrganizationLowHighMediumInsurance CompanyHighMediumLowState-owned EnterpriseLowHighMediumPrivate-owned Enterprise

13、MediumHighHighWealthy InvestorHighMediumLowOrdinary Investor LowHighLow17Identifying the needs of domestic customers Institutional clients : Fixed income,low risk,cash flow management Individuals clients : Growth,Small and middle cap,active managementFee Structure varies according to client base Ins

14、titutional clients: Low subscription and redemption feeIndividuals clients: Varies according to the period of holdingDeciding on distribution channels, depending on target groupsInstitutional clients : Direct sales/custodian bank recommendationIndividuals clients : Agency sales via banks, securities

15、 houses etc.Customer Segmentation 18Product StrategyPresent fund products Equity,bond,balance,hybrid,index, money market,guaranty etc.Competition products Deposit, fund biding insurance, asset management, trust, underground fund etc.Development plan Meet the needs of main clients group Product frame

16、 Based on capital market environment Image/Brand19Guaranty FundMoney Market FundBond FundBalance FundHigh Risk LowEquity Fund Low Return HighProduct FrameFund Type20Distrubution Distribution methodsDirect sales to main institutional clients Agency sales through agency banks, securities firms, China

17、Unionpay etc.E-business through website and call centerDistribution channelsPresent channels banks, securities firms,internet etc.Channels selection 3-4 commercial banks,10 sec. firmsIncentive scheme front-load fee kickbacksBinding promotion flight tickets,insurance,credit card,lottery etc.21Investm

18、ent ManagementInvestment StrategiesActive / Passive BenchmarkError trackingPerformance evaluation/Risk managementReporting systemResearchTop to down /Bottom up Investment strategiesListed companies research ModelingStock-based loan22Operational managementIT frameworkTA (Self-establishment / The thir

19、d-party supporting)Software and hardware selectionCustomer service systemCompany web OAHuman resources & General AdministrationThe number of staffCore employeesJob descriptionTrainingCorporate finance and administration23ComplianceAuditing and supervisingFund and company assets auditingBehavior supe

20、rvisingRisk evaluation FirewallEmergency event handling schemePublic relationshipRelationship with CSRC, the exchanges and securities associationLegal affairs, information disclosure, international business244、Roadmap25Initial Process in Seting up JVFMC Sign the Joint Venture agreement and the artic

21、le Set up joint preparatory team Prepare application documents required by CSRCObtain the approval of establishmentRecruitment and trainingInstall the equipment and software of JVFMCs operationFund product development and key clients contactSetup of contracts with custodian bank and distributors Pro

22、motionFund issuance 26Short-/Medium-/Long Term Target SettingPeriodThe Number of Fund ,Total AUM(in billion unit)The Number of Staff,Location of BranchesShort-term(1-2 year)Num of funds: 1-2 Series funds the first year: 6-8 billion the second year: 9-15biliion32-45Beijing,Shanghai、Guangzhou、Shenzhen

23、,XianMedium-term(5 year, top 10)Num of funds: 7-8 funds Mutual funds: 30-50 billion Pension funds: 25 billion Mandates: 25 billion 60-85Major cities in China mainland & HongkongLong-term(8-10 year, top 5)Mutual funds：80-100billionPension funds & mandates：60billionInternational business：10billionOthe

24、r asset management business: 10billion 100-120 Taiwan 、Singapore and other Asian countries275、 Assumption and Forecast28Macroeconomy GDP growth rate 7%-8% annually Inflation rate Under 1% Resident Savings 20% growth annually 29Shareholder Concept2003 2004 2005 2006 200767%33%Maintain 33%Call Option

25、to 49%OrShare transferCapital Expansion 30Earning Distribution ConceptJV-FMCShare Capital& ResourceShare Capital& ResourceDividends& Service feeDividends& Service feeDividends destribution bases on share stuctureService fee based on the shareholders contribution to JVFMC under SLASLA and the payment

26、 method are to be discussed under the real legal enviroment31Market ShareOptimistic Scenario 60% 5% Realistic Scenario 45% 3.5% Pessimistic Scenario 30% 2% Total Mutual Fund The num. Of FMCs The num. Of Funds 182 billion units 47 112 Scenario Growth Rate Market Share (in 3 years) (By the end of 2003

27、)32Fee rate Structure 0.25%1-1.5% 1% 1% =3% 0-1% 0.6-0.75% 0.2% 1% = 1.5% 0-1% 1% 0.2% 1% = 1.5% 0-1% 0.33% 0.1% * NA NA* 0.25% sales service fee charged33Setup CostSpace 1000 M2 (Constructional area)Rent US$0.70/M2 / D (Aver, standard)Decoration 850 yuan /M2 0.85 million (Aver, standard) Computer C

28、enter 1 million Furniture/PCs 32 0.80 millionAutomobile 3 1.2 millionIT costs 11 million (TA,OA,hardware,software etc.)Depreciation method straight line2004.3-2005.3 12 months3435Staff Cost7 employees in establishing period aver. RMB10,000 yuan/m perOperational periodNumber of employee 32,45,55 in 2

29、003-2007Base salary according to the position Bonus 30%-120% of base salary aver. 40% in BPNo compensation for foreign staff by JVFMC 3637 Operational Cost(2005-2007)Rent 2.1 million /yIT maintenance 1.1 million/y, 10% of IT costsTraveling and meeting 3.2-6.2 millionMarketing and Promotion 11-21.5 m

30、illionResearch and development 2.1-3 millionCompliance 1.05-1.25 millionConsulting 5.175 million /yAdministration 0.6-0.84 millionSales tax 5%Income tax 15%3839Revenue,Profit and Cashflow ForecastOptimistic Scenario40Realistic Scenario41 Pessimistic Scenario426、 Sales Breakdown in 2005 43 Asset allo

31、cation of Chinese insurance Company Direct Sales19992000200120022003Bank Deposits 926 1235.4 1930.6 3026.2 4549.6Bonds 678.5 956 795.8 1107.8 1409.9Funds 14.8 133.5 209 307.8 463.3Other Assets 984.8 1049 1655.9 2052.3 1958.7Total Assets 2604.1 3373.9 4591.3 6494.1 8378.5ASSUME that funds invested by

32、 insurance companies increase by 50 percent annually and 1 percent market share taken by JVFMC; around RMB0.7bn units will be sold to insurance companies Unit: RMB 100 million yuan44 Potentials from Other Financial Institutions ex BanksTotal assets of finance companies are RMB346bn, net assets are R

33、MB32.2bn by the end of Jun. 2002 Major finance companies in China : China Electric Power Finance Co., China Petroleum Finance Co., China Petrifaction Finance Co., HuaNeng Finance Co., Zhongwu Finance Co. etc.Trust & Securities Co. owns RMB250bn assets by the end of 2002 Including: Western Trust&Inve

34、stment Co., JinSin Trust Co., Ping An of China Trust Co., Ai Jian Trust Co., Shangdong Trust Co. ect.ASSUME that 10% of total assets of these institutions are allocated into mutual funds and 1% market share taken by JVFMC; more than RMB0.55bn funds will be sold to these companies45NaCSSeF/Houese Res

35、erve/Listed CompaniesTotal assets of National Council for Social Security Fund (NaCSSeF) are around RMB124.1bn by the end of 2003 which of 40 percent is permitted to flow into securities marketTotal assets of National House Reserve are 346.7bn by the end of 2003, and 1.5% of total sum managed by Sha

36、anxi Provincial House ReserveAccording to the bulletins of China Securities Journal, trust assets of listed companies managed by securities companies exceed RMB 3bn in 2003ASSUME that around RMB20bn assets of NaCSSeF allocated into mutual funds and 1 percent market share taken by JVFMC; 0.2bn units

37、funds will be sold to NaCSSeFASSUME 5% share of Shaanxi Provincial House Reserve taken by JVFMC, that is 0.25bn units 46 State-owned Enterpirise Groups (Strategic partners)Shaanxi Provincial Investment Group State-owned investment holding company with a registered capital of RMB3bn; to manage the go

38、vernmental enterprises, real estate and financial assets more than RMB15bn by the end of 2002HanNan Airlines Group Listed company invested by American Aviation Ltd., and total assets exceeding around RMB20bn; more than sixty thousand employeesShaanxi Provincial Electric Power Co. Fully held by Natio

39、nal Electric Power Co., Ltd; total Assets exceeding RMB 24bn and by the end of 2002; sustained long-term growth and abundant cashChina HuaNeng Group, China LuNeng Group, Jiangsu Electric Power Co., Guizhou Electric Power Co., Zhejiang Electric Power Co., China International Traveling Group, Zhong Ha

40、i Group 47 Non-profit Organization (Good relationship )Universities and affiliated companies Xian Jiaotong University, Northwestern University, Northwestern Polytechnical University, Xian Fanyi University, Changan University, Tongji University, Shanhai Financial University, Fudan University, Xijing

41、University, Ouya University, Zhejiang University Tianjin University, Nankai University, Nanjing University etc.Hospitals and affiliated institutions Xi Jing Hospital, Xian Dianzi Hospital, Xian Wujing Hospital, Eastern Hospital, Huaxi University etc.Charity funds association Yanlin Agriculture Devel

42、opment Funds, Yanlin Industry Development funds, Shaanxi Architecture Industry Fund etc.48Internal Sales PackageASSUME100,000 units purchased by each top-level manager50,000 units purchased by each middle-level manager10,000 units purchased by each ordinary employeeProduct package should be well des

43、igned for individual investor, and the return should be superior to the market benchmarkEmployee can purchase JVFMCs funds at discount front-end fee rate Top-level ManagerMiddle-level ManagerOrdinaryEmployeeTotalShaanxi Provincial Investment Group7736554895931Shaanxi ProvincialElectri Power Co.50232

44、003652440226Shaanxi High-tech Industry Investment 20453042875021Western Securities955633697Total7924150469335187549Top-levelManagerMiddle-level ManagerOrdinary EmployeeTotalShaanxi Provincial Investment Group7.718.2554.8980.84Shaanxi ProvincialElectri Power Co.50.2160365.24575.44Shaanxi High-tech In

45、dustry Investment 20.426.542.8789.77Western Securities0.92.756.339.98Total79.2207.5469.33756.03Unit: RMB Million yuanInternal Sales Estimation50Retail SalesFund Assets under Custody in Chinese Commercial Banks Open-end Funds Closed-end Funds Total Num.of Branch ICBC 278.83 206 484.83 17,000China Agr

46、icultural Bank 114.21 230 344.21 4,200China Construction Bank 125.52 175 300.52 12,000Bank of China 202.11 60 262.11 7,064Bank of Communication 152.10 146 298.10China Everbright Bank 16.45 16.45 China Merchants Bank 40.87 40.87 Shanghai PudongDevelopment Bank 25.72 25.72 Unit: RMB 100 million Total