CMS(600999)2024-03-28 16:00Financial Performance - In 2023, the company achieved a year-on-year increase in operating revenue, net profit, and ROE by 3%, 9%, and 0.37 percentage points respectively, maintaining industry-leading profit margins and expense ratios [13]. - The company's operating revenue for 2023 reached ¥19,821,213,073.58, representing a 3.13% increase compared to ¥19,219,229,958.91 in 2022 [56]. - Net profit attributable to shareholders for 2023 was ¥8,763,959,184.96, an increase of 8.60% from ¥8,070,242,869.23 in 2022 [56]. - The company's total operating revenue for the reporting period was approximately ¥19.82 billion, representing a 3.13% increase compared to the previous year [129]. - Net profit for the period reached approximately ¥8.77 billion, reflecting an 8.57% year-over-year growth [129]. - Basic earnings per share for 2023 were ¥0.94, reflecting a 9.30% increase from ¥0.86 in 2022 [57]. - The company's net capital at the end of 2023 was ¥79,370,429,988.47, up from ¥70,444,812,948.68 at the end of the previous year [60]. - The liquidity coverage ratio decreased to 169.06% in 2023 from 210.95% in 2022 [60]. Asset and Liability Management - The company's total assets reached RMB 695.9 billion by the end of 2023, representing a 128% increase compared to the end of 2018 [15]. - Total assets at the end of 2023 amounted to 695.85 billion RMB, reflecting a growth of 13.76% year-on-year [67]. - The total liabilities increased by 15.59% to ¥573,816,058,013.50 in 2023 from ¥496,419,930,018.64 in 2022 [56]. - The total liabilities reached CNY 573.82 billion, reflecting an increase of CNY 77.40 billion or 15.59% year-on-year [149]. - The asset-liability ratio, excluding securities trading funds, was 78.89%, up by 1.70 percentage points from the previous year [151]. Business Expansion and Qualifications - The company holds a total of 56 business qualifications, with the latest being for insurance agency business in April 2020 [31]. - The company has been actively expanding its business qualifications, including recent approvals for market-making in crude oil and nickel futures in October 2018 [31]. - The company has been involved in cross-border business pilot programs since April 2018, indicating a strategic focus on international expansion [31]. - The company has qualifications for both onshore and offshore trading, including the Hong Kong Stock Connect business since October 2014 [31]. - The company has a diverse portfolio of qualifications, allowing it to engage in various financial instruments and services, enhancing its competitive edge in the market [31]. Digital Transformation and Innovation - The company plans to focus on technology finance, green finance, and digital finance as part of its new five-year strategic plan, aiming to cultivate new profit growth points [15]. - The company is focusing on enhancing its digital capabilities, having completed 10 major digital strategy projects that effectively empower core business development [19]. - The company launched the upgraded version of its wealth management app, achieving a successful online and offline integration in marketing services [171]. - The company established a digital office to enhance its digital capabilities and drive digital transformation projects, including the completion of a new core trading system based on cloud-native architecture [171]. - The company is committed to digital transformation and optimizing human resource management to improve operational efficiency and risk compliance [112]. Risk Management - The company emphasized risk management and cost control, maintaining low levels of risk losses and high asset quality [13]. - The risk management framework includes a five-tier structure, ensuring comprehensive risk management aligned with the company's operational strategy [182]. - The company has established a clear risk preference and tolerance indicator system, monitoring and reporting on risk management effectiveness monthly [188]. - The company conducts regular stress testing to evaluate liquidity, credit, and market risks under extreme conditions [189]. - The company emphasizes a robust risk management culture, integrating compliance and risk control into its corporate ethos, highlighting that "professional compliance and risk control can not only safeguard the bottom line but also facilitate business expansion" [190]. Market Position and Competitive Edge - The company maintained a top-five ranking in key market segments, including securities trading and private fund custody, with the latter achieving the highest industry ranking for ten consecutive years [17]. - The company’s private fund product custody market share reached 21.91%, maintaining the industry’s leading position for ten consecutive years [90]. - The company ranked 9th in A-share main underwriting amount, with a total of 202.08 billion yuan in 2023, down 50.74% year-on-year [96]. - The company ranked third in the number of merger and acquisition projects under review in the industry by the end of 2023 [102]. Shareholder Returns - A cash dividend of RMB 2.52 per 10 shares (including tax) will be distributed to shareholders, totaling approximately RMB 2.19 billion based on the total share count as of December 31, 2023 [6]. - The company's net profit attributable to shareholders for the year was CNY 8.76 billion, with dividends distributed amounting to CNY 1.61 billion [153]. Strategic Vision and Future Outlook - The company aims to maintain a steady growth trajectory while promoting transformation and innovation, with a focus on five key areas: technology finance, green finance, inclusive finance, pension finance, and digital finance [19]. - The company anticipates a stable improvement in industry performance despite challenges, driven by digital transformation and comprehensive financial services [176]. - The investment banking segment aims to fully advance the modernization transformation, focusing on semiconductor, biomedicine, and dual-carbon sectors, while accelerating quality IPO and refinancing project reserves [180].