2014-03-28 16:00Financial Performance - The company's operating revenue for 2013 was RMB 10.45 billion, an increase of 14.38% compared to RMB 9.14 billion in 2012[52]. - Net profit attributable to shareholders for 2013 reached RMB 4.04 billion, reflecting a growth of 32.84% from RMB 3.04 billion in 2012[52]. - The total assets of the company at the end of 2013 amounted to RMB 169.12 billion, representing a 33.71% increase from RMB 126.48 billion in 2012[52]. - The total liabilities increased by 58.99% to RMB 105.02 billion in 2013, up from RMB 66.05 billion in 2012[52]. - The net assets attributable to shareholders were RMB 61.51 billion, a 4.82% increase from RMB 58.68 billion in 2012[52]. - The total revenue from commission and fees reached CNY 5,902,484,102.84, marking a 34.72% increase from CNY 4,381,339,388.64 in 2012[65]. - The company's total operating income reached RMB 10,454,954,029.51, an increase of 14.38% compared to RMB 9,140,881,964.45 in 2012[99]. - The company's net profit attributable to the parent company for 2013 was RMB 4,035,024,048.18, while the net profit for the parent company was RMB 3,466,158,149.71[190]. Dividend Distribution - The company distributed cash dividends of 1.20 RMB per 10 shares, totaling 1,150,166,541.60 RMB, which accounts for 47.40% of the available cash distribution profits for 2013[5]. - For the 2013 fiscal year, the proposed cash dividend is RMB 1.20 per 10 shares (including tax), amounting to RMB 1,150,166,541.60, which represents 47.40% of the cash distributable profit for the year[190]. - The cash dividend payout ratio for 2013 is 28.50% of the net profit attributable to shareholders[193]. - The company has maintained a consistent dividend policy, with the cash dividend amount for 2012 being RMB 1,150,166,541.60, which was 38.09% of the net profit[193]. - The company distributed a cash dividend of RMB 0.12 per share (including tax), totaling RMB 1,150,166,541.60 for the 2012 fiscal year[189]. - The company extracted 10% of the 2013 net profit for statutory surplus reserves, totaling RMB 346,615,814.97[190]. - The retained earnings at the end of 2013 amounted to RMB 10,420,631,417.59 after accounting for the dividend distribution[190]. - The cash dividend distribution will be conducted within two months after the annual general meeting approval[191]. Business Expansion and Strategy - The company acquired Hengxin Financial Group, entering the financing leasing market, which enhanced its core competitiveness and diversified its revenue streams[12]. - The company aims to accelerate the development of innovative businesses such as internet finance, wealth management, and alternative investments, while enhancing compliance and risk control systems[13]. - The company is committed to enhancing its brand influence and operational performance through strategic international expansion and business diversification[12]. - The company has established a robust international business platform, including a branch in the Shanghai Free Trade Zone, to capture cross-border business opportunities[114]. - The company plans to continue expanding its domestic and international financing channels to ensure stable and controllable funding sources for future growth[94]. - The company has achieved notable progress in internationalization, including obtaining QFII and RQFII qualifications and acquiring overseas brokerages, with plans to further increase international investments[159]. - The company is focusing on developing internet finance solutions to enhance customer experience and service offerings[95]. - The company has established three special purpose entities to support its overseas investment and financing activities[145]. Risk Management - The company faces risks related to market volatility, macroeconomic conditions, and regulatory changes that could adversely affect its financial performance[17]. - The company has implemented internal risk management structures but acknowledges limitations in predicting future risks, especially in extreme market events[20]. - The company has established a compliance and risk control framework, led by the Chief Risk Control Officer[35]. - The company has strengthened its risk management framework, ensuring compliance with regulatory requirements for risk control indicators[177]. - The company has implemented a real-time monitoring system for new products and business risks, ensuring compliance and effective execution of risk management measures[171]. - Credit risk management is emphasized through strict procedures in securities trading and financing services, with a focus on high credit-rated products[164]. - The company has established a net capital replenishment mechanism to address situations where net capital reaches warning levels, including reducing high-risk investments and issuing subordinated debt[175]. - The company has a significant amount of liquid assets, contributing to a low liquidity risk profile[165]. Market Position and Competitiveness - The company emphasizes the importance of maintaining competitive advantages amid intense market competition, which has led to declining commission rates in brokerage services[18]. - The company's market share in retail brokerage reached 5.48%, ranking second, while the overall stock trading volume market share was 4.73%, ranking fourth[74]. - The average daily client equity in the futures business grew by 31% year-on-year to RMB 7.9 billion, with a market share of 5.95%, an increase of 1.55 percentage points[75]. - The company maintained a leading position in the industry with total assets and net assets ranking second among Chinese securities firms from 2009 to 2013[112]. - The company had a total of 272 securities and futures business outlets in China by the end of 2013, with over 4.7 million clients, ranking first in the industry[112]. Financial Instruments and Investments - The company reported a significant decrease in asset impairment losses, down to negative RMB 0.18 billion from RMB 8.23 billion in 2012, due to improved recovery of receivables[89]. - The company successfully issued offshore USD bonds and domestic corporate bonds in 2013, enhancing its financing channels[55]. - The company successfully issued USD 900 million in corporate bonds and RMB 12 billion in corporate bonds during the year, enhancing its financing channels[71]. - The company has implemented a diversified investment strategy and used stock index futures for hedging to effectively manage market risks[161]. - The total value of securities investments at the end of the reporting period was CNY 54.25 billion, with a year-on-year increase of 3.26%[120]. - The company actively engaged in hedging and ETF arbitrage, with an increase in the number of shares bought/sold and the amount of funds used compared to the previous year[127]. Operational Efficiency - The company has invested in IT governance and system upgrades to support business development and improve operational efficiency[172]. - Research and development expenditures amounted to RMB 34.82 million, aimed at enhancing operational efficiency and adapting to new trading products[92]. - The company has improved its corporate governance structure, ensuring equal treatment of all shareholders and enhancing the role of the board of directors[170]. - The company has maintained a sound capital structure and low operational risk levels throughout the reporting period[177]. Future Outlook - The company’s future outlook is optimistic, with expectations of substantial demand from the transitioning Chinese economy and opportunities arising from comprehensive reforms[13]. - The company plans to accelerate the transformation of brokerage business and strengthen investment banking innovation in 2014[155]. - The company expects to see continued growth in financing and securities lending businesses, which are capital-intensive and require significant funding[158].