2021-03-25 16:00Financial Performance - In 2020, Guotai Junan achieved a consolidated operating income of 35.2 billion yuan, and a net profit attributable to the parent company of 11.1 billion yuan, representing growth of 18% and 29% year-on-year respectively[9]. - The company's operating revenue for 2020 was RMB 35.20 billion, an increase of 17.53% compared to RMB 11.12 billion in 2019[39]. - The net profit attributable to the parent company for 2020 was RMB 10.72 billion, reflecting a growth of 31.37% from RMB 8.16 billion in 2019[39]. - Total assets at the end of 2020 reached RMB 702.90 billion, a 25.67% increase from RMB 559.31 billion at the end of 2019[39]. - Total liabilities increased by 34.71% to RMB 556.66 billion in 2020, up from RMB 413.22 billion in 2019[39]. - The company's equity attributable to shareholders was RMB 137.35 billion at the end of 2020, a slight decrease of 0.11% from RMB 137.50 billion at the end of 2019[39]. - Basic earnings per share increased by 33.33% to CNY 1.20 in 2020 from CNY 0.90 in 2019[40]. - The company's total revenue for the year was 35.2 billion yuan, an increase of 17.53% compared to the previous year[94]. - The net profit attributable to shareholders was 11.12 billion yuan, reflecting a year-on-year growth of 28.77%[94]. Dividend and Profit Distribution - The company proposed a cash dividend of 0.56 yuan per share (including tax), which accounts for 44.80% of the net profit attributable to the parent company for the year[5]. - The total proposed cash dividend for 2020 is CNY 4,983,131,004, which accounts for 44.80% of the net profit attributable to the parent company[168]. - The cash buyback amount for 2020 is CNY 1,543,209,446, which is considered as cash dividend, bringing the total cash dividend to CNY 6,526,340,450, or 58.68% of the net profit attributable to the parent company[170]. - The cash dividend per 10 shares for 2020 is CNY 5.60, compared to CNY 3.90 in 2019 and CNY 2.75 in 2018[170]. - The company has established a clear dividend standard and ratio, ensuring the protection of minority investors' interests[169]. - The independent directors have expressed that the decision-making process for the profit distribution plan is complete and transparent[169]. Business Development and Strategy - The company aims to become a modern investment bank that is respected, leading, and internationally competitive, in line with the "14th Five-Year Plan" and the goal of celebrating the 100th anniversary of the Communist Party of China with outstanding achievements[11]. - The company has implemented an A-share restricted stock incentive plan to align the interests of core talent with the long-term goals of the company[11]. - The company plans to implement a three-phase strategic development plan from 2020 to 2028, focusing on consolidating market position, enhancing capabilities, and achieving international competitiveness[139]. - The company is positioned to benefit from the ongoing reforms in the capital market, which will provide significant growth opportunities[131]. - The company is leveraging technological advancements to transform its business model and improve operational efficiency[135]. - The company plans to strengthen its international business by establishing domestic and international coordination mechanisms and expanding new revenue growth points[142]. Risk Management - A four-tier risk management system has been established, including the board of directors, management, risk management departments, and other business units[144]. - The company has revised its comprehensive risk management methods and established specific risk management procedures for various business types[151]. - The company emphasizes a risk culture and has implemented a performance evaluation system that includes risk management effectiveness[147]. - The company's risk preference system considers net capital, solvency, liquidity, and future business risks, establishing specific goals for various stakeholders[152]. - The company actively managed market risk through limit management and daily monitoring of risk exposure, resulting in no significant market risk events in 2020[156]. - Credit risk management included client credit ratings and collateral management, with no major credit defaults reported in the bond investment business[158]. Client and Market Engagement - Wealth management transformation was effective, with the number of affluent and high-net-worth clients increasing by 25% and 28% respectively compared to the previous year[9]. - The number of institutional clients reached approximately 48,000, an increase of 11.8% compared to the end of the previous year, while personal financial accounts reached approximately 14.49 million, up 7.0%[62]. - The average monthly active users of the Junhong APP reached 5.06 million, ranking 2nd in the industry, with a total of 36.56 million mobile terminal users[61]. - The company maintained a market share of 5.77% in the securities brokerage business, ranking first in the industry[79]. - The company achieved a securities underwriting amount of 815.26 billion yuan in 2020, a year-on-year increase of 44.4%, ranking 3rd in the industry[64]. Social Responsibility and Community Engagement - Guotai Junan Securities donated nearly 25 million yuan in funds and medical supplies to support the fight against COVID-19 in severely affected areas like Hubei and Shanghai[11]. - The company invested over 44 million yuan in poverty alleviation over three years, successfully helping multiple counties achieve poverty alleviation and improve economic development and living conditions[11]. Compliance and Governance - The company has a strong focus on compliance and regulatory adherence, as evidenced by its multiple licenses and qualifications from various regulatory bodies[23]. - The company appointed KPMG Huazhen LLP as the domestic auditor with a fee of RMB 2.25 million for the 2020 fiscal year[179]. - The company appointed KPMG as the overseas auditor with a fee of RMB 2.3 million for the 2020 fiscal year[179]. - The total audit fees for KPMG Huazhen LLP and KPMG for the group (including subsidiaries) in 2020 amounted to RMB 10.48 million[181].