2021-03-31 16:00Financial Performance - Total assets reached RMB 371.228 billion, an increase of 29.95% year-on-year[8] - Net profit attributable to shareholders was RMB 9.509 billion, up 72.85% compared to the previous year[8] - Operating revenue for the year was RMB 23.351 billion, reflecting a growth of 70.53% year-on-year[8] - The weighted average return on equity (ROE) was 18.18%, providing good returns to shareholders[8] - The company's total revenue for 2020 was approximately CNY 23.35 billion, representing a 70.53% increase compared to CNY 13.69 billion in 2019[49] - The net profit attributable to shareholders for 2020 was approximately CNY 9.51 billion, a 72.85% increase from CNY 5.50 billion in 2019[49] - The total assets at the end of 2020 amounted to approximately CNY 371.23 billion, reflecting a 29.95% increase from CNY 285.67 billion at the end of 2019[49] - The equity attributable to shareholders was RMB 67.73 billion, up 19.71% year-over-year[71] - The company reported a basic earnings per share of CNY 1.20 for 2020, up 79.10% from CNY 0.67 in 2019[50] Business Segments and Growth - Investment banking segment revenue totaled RMB 5.84 billion, up 58.99% year-on-year[71] - Wealth management segment revenue was RMB 5.44 billion, reflecting a growth of 33.07%[71] - Trading and institutional client services segment revenue reached RMB 8.61 billion, a significant increase of 132.46%[71] - Asset management segment revenue was RMB 1.64 billion, showing a modest growth of 0.55%[71] - The company completed 2,446 primary underwriting projects with a total underwriting amount of RMB 1,373.08 billion, ranking second in the industry[69] - The company ranked first in the number of IPO projects and underwriting amount, completing 40 IPOs with a total amount of RMB 83.2 billion in 2020, a significant increase from RMB 16.42 billion in 2019[74] - The company’s corporate bond underwriting reached RMB 440.66 billion from 601 projects, marking the highest underwriting scale in history[78] Digital Transformation and Innovation - The company has fully advanced its digital transformation, enhancing customer service experience and operational efficiency[11] - The company is committed to becoming a leader in digital transformation within the industry[11] - The company has invested in new technology development, allocating 10% of its annual revenue towards R&D to innovate and improve service offerings[145] - The company aims to improve its research capabilities and international service offerings in 2021, focusing on digital service enhancement and collaborative research[98] Risk Management and Compliance - The company emphasizes the importance of risk management and has developed a comprehensive risk management system over the past decade[153] - The company has established a comprehensive risk management mechanism that has been effectively implemented during the reporting period[159] - The company faces various risks including strategic, credit, liquidity, market, operational, and legal risks, with established policies to identify and manage these risks[165] - The company has implemented liquidity risk management practices, including daily position analysis and monthly liquidity assessments to ensure sufficient liquidity reserves[169] - The company has a crisis management mechanism in place to address liquidity crises and trading system failures, with regular drills conducted[163] Capital and Financing Activities - The company successfully issued $500 million in overseas bonds at a lower interest rate, reflecting strong market confidence[12] - The company raised RMB 3.884 billion through its first non-public offering of A-shares, addressing urgent capital needs and demonstrating investor confidence in future growth[12] - The company has obtained a short-term borrowing limit of RMB 32.8 billion approved by the People's Bank of China, ensuring sufficient credit from major state-owned and joint-stock commercial banks[157] - The company can utilize various financing methods including equity financing, bond issuance, and other approved means to maintain liquidity and profitability[157] Awards and Recognition - The company received multiple awards in 2020, including recognition as a "Top Ten Bull Market Securities Company" and "Best IPO Underwriter" by various financial institutions[59][60][61] - The company was included in the FTSE China A50 Index, enhancing its visibility and reputation in international markets[12] - The company has maintained an A-class AA rating from the China Securities Regulatory Commission for 11 consecutive years, reflecting its strong performance and governance[12] Shareholder and Dividend Policies - The company plans to distribute a cash dividend of RMB 3.75 per 10 shares for the fiscal year 2020, totaling RMB 2,908,760,548.88, which represents 31.83% of the net profit attributable to ordinary shareholders[178] - The company has established a cash dividend policy that mandates a minimum of 10% of distributable profits to be distributed annually, provided there are no major investment plans or cash expenditures[176] - The company emphasizes a stable and continuous profit distribution policy that balances long-term interests and sustainable development[176] Organizational Structure and Development - The company has undergone structural adjustments to optimize its branch organization, transitioning from a central operating department to a three-tiered management system[142] - The company is focused on expanding its investment management and asset management services, aiming to enhance its market position[138] - The company plans to expand its market presence by establishing new branches in 15 additional cities across China by the end of 2021[144] International Business and Market Expansion - The company is actively pursuing international business opportunities while enhancing its domestic market presence, aiming for comprehensive service integration[12] - The company aims to expand its international business, including the return of Chinese concept stocks and cross-border acquisitions, to diversify its product offerings[75] - The company’s international business in 2020 included participation in 45 offshore bond issuances and 2 private placements[77] Legal and Regulatory Compliance - The company has committed to avoiding competition with shareholders and ensuring the independence of the listed company for the long term[188] - The company has implemented several corrective measures, including strict adherence to internal review procedures for investment banking projects[200] - The company has received an administrative regulatory measure from the China Securities Regulatory Commission on October 27, 2020, due to inadequate internal controls in investment banking operations[200]