August, 2017, Citi Orient Securities celebrated its 5^th anniversary of establishment. The company had achieved substantial growth in business scale, income and profit, team building, etc. Especially, on the premise of good compliance and risk control, the company had got steady development in every business section.

Business Development: Make Progress in Stability

The domestic direct financing market was facing big challenges during the early establishment of Citi Orient Securities. At that period, IPO business was suspended, investment banking business was at the stage of downturn. At its first year of complete operation, in 2013, the company’s revenue reached RMB 0.2 billion with equity and bond underwriting business volume ranking the 40^th in the market.

With the joint effort of both the shareholders and staff, the company took root in Chinese market, actively absorbed the advanced management experience and concept from Citigroup, forming the gradually balanced business structure through forward-looking business planning and devotion to innovative business. At the same time, by sticking to the bottom line of compliance, the company had been keeping good balance of rapid business expansion and risk control, made great progress in every business section.

Since its establishment, the company profit has been increasing more than 50% each year, the revenue reached RMB 1.2 billion in 2016, the number of customers in equity and bond underwriting business ranked respectively 13^th and 17^th, the market ranking of IPO business ranked top 10 for the first time, becoming one of the few underwriters with 100% IPO passing rate in recent years. As to the financial advisory business, the project amount had entered top 10 for two consecutive years (2015 & 2016) and got grade A in the business quality appraisal by Securities Association of China. The bond financing amount reached RMB 100 billion. In asset-based securities business, the company has been keeping good business relation with several customers with core values such as Bank of Ningbo, China Minsheng Bank, Ford Automotive Finance, Home Credit Group, etc. In cross-border business, several successful projects, such as Shanda’s return to China Concept Stock and Apexmic’s (renamed as Ninestar) acquisition of Lexmark, helped the company to build professional brand image in the market. All the business sections took leading position among all the joint-ventured securities companies.

Team Building: Attach Great Importance to Talents

Citi Orient Securities pursues people-oriented corporate culture. Established with only 100 staff, the company, in the following 5 years, actively introduced and built a team of competitive staff, including the bond business team, to provide good support to sustainable business development. Currently, the staff number had amounted to more than 400.

While enlarging the staff team, the company also attached great importance to staff development, aiming to build good environment of development for talents. It is worth mentioning that the company provided young key staff with good platform of development and smooth career path. By breaking the conservative mindset of promotion by seniority, a number of key staff born in 1980’s had been successfully cultivated as department heads.

Compliance and Risk Control: Strict Risk Management

Citi Orient Securities attached great importance to the building of compliance management mechanism. Under the guidance of Orient Securities, its parent company, Citi Orient Securities conducted a series of work to standardize internal control, put compliance into practice in daily operation management and ensure full implementation of compliance actions. According to the compliance management system, the department heads took the chief responsibility. The department policies were constantly revised and improved. Policy building and learning was always ongoing. The company made great efforts to meet the requirements of compliance.

Citi Orient always laid emphasis on steady development and risk control. The Risk Management Department was specially set up to build risk management system which matches the business development in both policy design and responsibility distribution. By effective management of risk control index, stress testing and daily monitoring, the company hadn’t encountered serious market risk, credit risk, operational risk and liquidity risk. All the risk control index reached the standard and far beyond the alert line.

Looking back, Citi Orient Securities wouldn’t have made the above progress without the full support from the society. The company continuously made greater efforts with gratefulness. At the beginning of the new start, the company will devote to its second phase of business pioneering and put innovative financial service into practice to serve real economy, play an active role in bridging the clients and capital market and make contribution to the development of capital market.