GF SECURITIES(000776)2024-03-28 16:00Financial Performance and Key Metrics - Total operating income for 2023 was RMB 23.3 billion, a decrease of 7.29% compared to 2022[34] - Net profit attributable to shareholders in 2023 was RMB 6.98 billion, down 12.00% year-on-year[34] - Basic earnings per share (EPS) for 2023 was RMB 0.83, a decline of 18.63% from 2022[34] - Total assets at the end of 2023 reached RMB 682.18 billion, an increase of 10.52% compared to the end of 2022[34] - Total liabilities increased by 9.96% to RMB 541.51 billion in 2023, compared to RMB 492.46 billion in 2022[35] - Net profit attributable to shareholders decreased by 11.00% to RMB 6.98 billion in 2023, down from RMB 7.85 billion in 2022[35] - Core net capital increased by 4.66% to RMB 65.52 billion at the end of 2023, compared to RMB 62.60 billion at the end of 2022[42] - Risk coverage ratio improved significantly by 46.78 percentage points to 233.36% in 2023, up from 186.58% in 2022[43] - Total assets grew by 10.65% to RMB 584.61 billion in 2023, compared to RMB 528.34 billion in 2022[35] - Operating cash flow turned negative at RMB -3.41 billion in 2023, a sharp decline from RMB 42.85 billion in 2022[35] - Basic earnings per share decreased by 17.00% to RMB 0.83 in 2023, down from RMB 1.00 in 2022[35] - Net capital to net assets ratio increased by 1.29 percentage points to 77.48% in 2023, compared to 76.19% in 2022[43] - Total equity attributable to shareholders increased by 14.74% to RMB 120.25 billion in 2023, up from RMB 104.80 billion in 2022[35] - Non-recurring gains and losses amounted to RMB 470.19 million in 2023, a decrease from RMB 783.58 million in 2022[41] - Total revenue decreased by 11.31% to RMB 14.51 billion in 2023 compared to RMB 16.36 billion in 2022[45] - Net interest income dropped by 23.53% to RMB 3.14 billion in 2023 from RMB 4.10 billion in 2022[45] - Investment income increased by 20.94% to RMB 5.30 billion in 2023 from RMB 4.38 billion in 2022[45] - Net profit attributable to parent company shareholders declined by 12.00% to RMB 6.98 billion in 2023 from RMB 7.93 billion in 2022[45] - Monetary funds decreased by 8.02% to RMB 118.82 billion in 2023 from RMB 129.18 billion in 2022[44] - Settlement reserves increased by 24.68% to RMB 34.51 billion in 2023 from RMB 27.68 billion in 2022[44] - Trading financial assets grew by 36.93% to RMB 216.07 billion in 2023 from RMB 157.80 billion in 2022[44] - Derivative financial assets surged by 90.51% to RMB 5.03 billion in 2023 from RMB 2.64 billion in 2022[44] - Short-term borrowings increased by 52.23% to RMB 6.84 billion in 2023 from RMB 4.49 billion in 2022[44] - Other comprehensive income rose by 82.15% to RMB 1.34 billion in 2023 from RMB 734.94 million in 2022[45] - The company achieved a total operating revenue of 23.3 billion yuan and a net profit attributable to shareholders of 6.978 billion yuan in 2023[48] - Total assets of the group reached 682.182 billion yuan, an increase of 10.52% compared to the end of 2022[66] - Operating revenue for the group was 23.3 billion yuan, a decrease of 7.29% year-on-year[66] - Net profit attributable to shareholders of the listed company was 6.978 billion yuan, a decrease of 12.00% year-on-year[66] - Total liabilities amounted to 541.506 billion yuan, an increase of 9.96% year-over-year[111] - Shareholders' equity totaled 140.676 billion yuan, an increase of 15.883 billion yuan, up 12.73%, primarily due to the issuance of perpetual subordinated bonds and net profit contributions[111] - The fair value of financial assets at the end of the period was RMB 36,610,050,190, with a total increase of RMB 5,829,865,190 during the period[112] - Derivative financial assets increased by 90.51% to RMB 5,034,080,928.93 at the end of 2023[114] - Other equity instrument investments surged by 682.78% to RMB 5,696,950,862.18 at the end of 2023[114] - Short-term borrowings increased by 52.23% to RMB 6,838,049,471.57 at the end of 2023[114] - The total debt financing at the end of the reporting period was RMB 155,782,000,000, including short-term borrowings, short-term financing payables, and bonds payable[117] - The company's total debt at the end of the reporting period was RMB 332,184,000,000, with 68.82% being short-term debt (within one year) and 31.18% being long-term debt[118] - The fair value change loss of financial assets was RMB -1,011,206,857.32 in 2023, primarily due to changes in the fair value of trading financial assets[114] - The net cash flow from operating activities was RMB -8,918,975,156.38 in 2023, mainly due to a decrease in net cash generated from financing and repurchase businesses[115] - Total investment in the reporting period was RMB 0, a 100% decrease compared to the same period last year[120] - The company's securities investments totaled RMB 35.98 billion, with a fair value change loss of RMB 101.12 million and a total profit of RMB 726.75 million for the reporting period[123] - The company raised HKD 32.08 billion through H-share issuance, with RMB 125.04 billion allocated to wealth management business, RMB 49.86 billion to investment management, investment banking, and trading & institutional business, and RMB 34.43 billion to international business[124] - As of December 31, 2023, RMB 41.26 billion of the H-share proceeds was temporarily used for working capital and short-term investments, with plans to allocate the remaining funds to international business by December 31, 2025[125] - GF Futures achieved a net profit of RMB 3.41 billion, with total assets of RMB 51.02 billion and operating revenue of RMB 14.20 billion[127] - GF Qianhe's net profit increased by RMB 303 million year-on-year, primarily due to increased income from trading financial instruments[129] - GF Asset Management's net profit decreased by RMB 329 million year-on-year, mainly due to reduced management fee income, government subsidies, and trading financial instrument investment income[129] - GF Fund Management reported a net profit of RMB 1.95 billion, with total assets of RMB 17.01 billion and operating revenue of RMB 7.64 billion[127] - E Fund Management, an associate company, achieved a net profit of RMB 3.38 billion, with total assets of RMB 25.36 billion and operating revenue of RMB 12.50 billion[127] Business Operations and Subsidiaries - The company's subsidiaries include GF Fund Management, GF Holdings (Hong Kong), GF Securities (Hong Kong) Brokerage, and GF Asset Management (Hong Kong)[6] - The company's main business has not changed since its listing[11] - The company's wealth management business maintained steady growth, and the transformation towards wealth management continued to improve[49] - The company's asset management business saw continuous growth in total assets under management[49] - The company's investment banking business made progress in key regions and industries, with a significant increase in project reserves[49] - The company's research business remained leading, winning the first place in the "Most Influential Research Institution" award by New Fortune[49] - The company's cross-border business advanced steadily, with its Hong Kong subsidiary's equity and bond financing business ranking rising among Chinese-funded securities firms in Hong Kong[49] - The company's ESG governance was recognized, and it was included in the Hang Seng Sustainability Index Series[50] - The company's main business indicators rank among the top in the industry during the reporting period[53] - The company's wealth management business has over 4,400 securities investment advisors, ranking first in the industry (parent company basis)[62] - As of December 2023, the company's non-monetary public fund sales scale ranks 3rd in the industry[63] - As of December 2023, GF Fund and E Fund rank 3rd and 1st respectively in public fund management scale excluding money market funds[63] - The company has 349 branches and business offices nationwide, covering 31 provinces, municipalities, and autonomous regions as of December 2023[64] - The company's average management team experience in securities, finance, and economics is approximately 27 years, with an average tenure of over 18 years at the company[59] - The company established China's first financial enterprise postdoctoral workstation in 1999, continuously shaping and exporting professional talents for 25 years[59] - The company's major shareholders (Jilin Aodong, Liaoning Chengda, and Zhongshan Public Utilities) have remained the top three shareholders for 24 years[61] - The company's wealth management and brokerage business includes securities trading, margin financing, and financial product distribution[56] - The company's investment banking business includes equity financing, debt financing, and financial advisory services[56] - Equity financing business completed 17 underwriting deals with a total underwriting amount of 16.367 billion yuan[69][70] - Debt financing business saw a 72.05% increase in underwriting amount to 244.442 billion yuan, with 416 underwriting deals[71][72] - Green bonds, technology innovation bonds, rural revitalization bonds, and Yellow River Basin high-quality development bonds underwriting amount increased by 226.67% to 25.634 billion yuan[71] - The number of listed companies on the New Third Board reached 6,241, with 239 companies listed on the Beijing Stock Exchange[73] - The company served as the sponsor for 34 listed companies on the New Third Board, with nearly 70% being "specialized and sophisticated" enterprises[73] - The subsidiary GF Financing (Hong Kong) completed 47 underwriting and financial advisory projects[73] - Wealth management and brokerage business: The company's stock and fund trading volume in Shanghai and Shenzhen markets was 18.57 trillion yuan in 2023, a year-on-year decrease of 6.71%[75] - Financial product sales: The company's financial product sales and transfer amount on the Yitaojin platform reached 216.8 billion yuan in 2023[75] - Market share: The company's total trading volume in 2023 was 683,847.08 billion yuan, with a market share of 4.59%[76] - Financial product sales and redemptions: The total sales amount of financial products in 2023 was 644.26 billion yuan, with redemptions totaling 587.75 billion yuan[77] - Overseas wealth management: The company's Hong Kong subsidiary saw a 22.58% increase in net income and a 30.86% increase in wealth management income in 2023[78] - Margin trading: The company's margin trading balance at the end of 2023 was 88.989 billion yuan, a year-on-year increase of 7.18%, with a market share of 5.39%[80] - Stock pledge business: The company's stock pledge repurchase business balance was 12.326 billion yuan at the end of 2023[81] - Equity investment: The company provided market-making services for 48 new三板 enterprises by the end of 2023[84] - Derivatives business: The company issued 38,678 new products in 2023, with a total issuance scale of 528.826 billion yuan[86] - Alternative investments: The company's subsidiary, GF Qianhe, invested 1.454 billion yuan in 30 new projects in 2023[87] - Investment research business covers 28 industries and 958 A-share listed companies in China, as well as 141 Hong Kong and overseas listed companies[88] - Asset custody and fund service product scale reached 5,605.64 billion yuan by the end of 2023, an increase of 8.29% compared to the end of 2022[89] - GF Asset Management's net asset scale of collective asset management plans decreased by 43.68% and special asset management plans decreased by 10.65% by the end of 2023 compared to the end of 2022[90] - GF Asset Management's single asset management plan net asset scale increased by 48.57% by the end of 2023 compared to the end of 2022[90] - GF Fund Management's public fund scale totaled 12,209.82 billion yuan by the end of 2023, a decrease of 2.30% compared to the end of 2022[93] - E Fund Management's public fund scale totaled 16,773.40 billion yuan by the end of 2023, an increase of 6.65% compared to the end of 2022[93] - GF Xinde's managed fund paid-in scale exceeded 17 billion yuan according to the fourth-quarter average scale data disclosed by the Asset Management Association of China[94] - Operating revenue in 2023 was RMB 23.30 billion, a year-on-year decrease of 7.29%[96] - Net fee and commission income decreased by 11.31% to RMB 14.51 billion, mainly due to declines in securities brokerage and asset management businesses[96] - Net interest income decreased by 23.53% to RMB 3.14 billion, primarily due to increased interest expenses on repurchase agreements[96] - Investment income increased by 20.94% to RMB 5.30 billion, driven by gains from trading financial instruments[96] - Fair value change income improved by RMB 1.17 billion, mainly due to changes in the fair value of trading financial assets[96] - Operating cash flow turned negative at RMB -8.92 billion, a significant decline from RMB 50.02 billion in 2022[101] - Investment cash flow improved to RMB 3.34 billion, compared to RMB -31.40 billion in 2022[101] - Wealth management business maintained a high operating profit margin of 60.65%, with revenue of RMB 10.53 billion[103] - Trading and institutional business revenue grew 29.43% to RMB 3.71 billion, with operating profit margin increasing by 11.62 percentage points[103] - Investment management business revenue decreased by 20.64% to RMB 7.89 billion, with operating profit margin declining by 9.40 percentage points[103] - Guangdong region's operating income decreased by 10.17% to 2.60 billion yuan in 2023 compared to 2.90 billion yuan in 2022[105] - Shenzhen's operating income dropped by 12.49% to 190.40 million yuan in 2023 from 217.57 million yuan in 2022[105] - Shanghai's operating income fell by 5.96% to 429.67 million yuan in 2023 from 456.93 million yuan in 2022[105] - Fujian region's operating income saw a significant decline of 21.24% to 132.33 million yuan in 2023 from 168.02 million yuan in 2022[105] - Overseas subsidiaries (including Hong Kong and Macau) experienced a 67.84% increase in operating income, reaching 664.80 million yuan in 2023 compared to 396.08 million yuan in 2022[106] - Total operating income for the parent company decreased by 3.76% to 14.60 billion yuan in 2023 from 15.16 billion yuan in 2022[106] - Domestic subsidiaries' operating income dropped by 15.08% to 9.66 billion yuan in 2023 from 11.38 billion yuan in 2022[106] - Guangdong region's operating profit decreased by 12.94% to 1.49 billion yuan in 2023 from 1.72 billion yuan in 2022[107] - Shenzhen's operating profit fell by 20.83% to 63.15 million yuan in 2023 from 79.77 million yuan in 2022[107] - Total operating profit for the parent company decreased by 16.51% to 7.10 billion yuan in 2023 from 8.51 billion yuan in 2022[108] - Total assets of the group reached 682.182 billion yuan at the end of 2023, an increase of 10.52% compared to the previous year[110] - Monetary funds and settlement reserves decreased by 3.531 billion yuan, a drop of 2.25%, mainly due to reduced customer deposits[110] - Funds lent out increased by 8.285 billion yuan, a rise of 10.00%, driven by growth in margin trading and securities lending business[110] - Trading financial assets surged by 58.274 billion yuan, up 36.93%, primarily due to increased investments in bonds, stocks, and funds[110] - Other debt investments decreased by 4.643 billion yuan, a decline of 3.23%, mainly due to reduced bond investments[110] - Short-term financing liabilities increased by 8.055 billion yuan, up 21.59%, mainly due to the issuance of short-term corporate bonds and income certificates[111] - Securities sold under repurchase agreements rose by 28.691 billion yuan, a 22.94% increase, driven by growth in pledged repurchase business[111] - Bonds payable decreased by 12.307 billion yuan, a drop