ZJB(SH:601860)2021-04-27 16:00Financial Performance - The company's operating income for 2020 was CNY 4,476,750, a decrease of 4.25% compared to CNY 4,675,227 in 2019[25]. - Net profit attributable to shareholders for 2020 was CNY 1,441,496, representing an increase of 1.72% from CNY 1,417,092 in 2019[25]. - The net cash flow from operating activities increased by 30.66% to CNY 13,081,997 in 2020, up from CNY 10,012,601 in 2019[25]. - Total assets at the end of 2020 reached CNY 217,664,378, an increase of 8.12% from CNY 201,318,675 at the end of 2019[25]. - The net assets attributable to shareholders increased by 7.75% to CNY 14,815,100 at the end of 2020, compared to CNY 13,749,160 at the end of 2019[25]. - Basic earnings per share for 2020 remained stable at CNY 0.39, unchanged from 2019[26]. - Diluted earnings per share decreased by 5.13% to CNY 0.37 in 2020, down from CNY 0.39 in 2019[26]. - The net profit for the year was CNY 1.441 billion, representing a year-on-year growth of 1.72%[39]. - The company reported a total of 150.614 billion RMB in liabilities, up from 133.512 billion RMB, indicating a growth of approximately 12.8%[62]. - The company’s net profit attributable to ordinary shareholders for 2020 was 1,441,496 thousand RMB, showing a slight increase from 1,417,092 thousand RMB in 2019[143]. Risk Management - The company has reported no foreseeable major risks, with effective measures in place to manage credit, market, liquidity, and operational risks[8]. - The company is committed to a comprehensive risk management system, focusing on credit, market, liquidity, and compliance risks[36]. - The company has established five mechanisms for credit risk management, including market access, loan approval, credit exit, risk warning, and non-performing asset disposal[104]. - The liquidity risk management goal is to identify, measure, monitor, and control liquidity risk, ensuring it remains within acceptable limits for sustainable operations[107]. - The company has implemented a market risk management framework that includes monitoring interest rate sensitivity and managing foreign exchange exposure to mitigate potential losses[108]. - The operational risk management framework emphasizes internal controls and compliance with regulatory requirements, focusing on key business processes to minimize potential losses[112]. Capital and Funding - The company successfully issued CNY 4.5 billion in convertible bonds to open new capital replenishment channels[40]. - The company's credit rating for the convertible bonds is AA+ with a stable outlook, indicating strong financial health and repayment capability[178]. - The company issued a total of 4.5 billion RMB in convertible bonds on July 23, 2020, with a maturity of 6 years and a coupon rate starting at 0.20% in the first year, increasing to 2.50% in the sixth year[184]. Dividend Policy - The company has a cash dividend policy that mandates a minimum of 80% of profits to be distributed as cash dividends during mature stages without major capital expenditure plans[139]. - The company plans to distribute profits in cash, stock, or a combination, with cash distributions not exceeding 30% of the average distributable profit over the last three years[140]. - In 2020, the company distributed a cash dividend of 366,089 thousand RMB, which accounted for 25.40% of the net profit attributable to ordinary shareholders[143]. - The company has committed to maintaining a stable profit distribution policy, with cash distributions in the first three years post-IPO being no less than 30% of the average annual distributable profit[140]. Loan and Deposit Growth - The deposit balance was CNY 148.175 billion, up 12.95% year-over-year, while the loan balance increased by 18.37% to CNY 120.690 billion[39]. - The company aims for a deposit growth of 10% and a loan growth of 14% in 2021, with a target for operating income to increase by over 7% and net profit by over 2%[74]. - The total balance of demand deposits increased to 64.374 billion RMB from 56.218 billion RMB, marking an increase of approximately 14.5%[62]. - The total balance of time deposits rose to 82.198 billion RMB from 72.939 billion RMB, reflecting an increase of about 12.5%[62]. Community and Social Responsibility - The company has established the "Zijin Dream Fund" for targeted poverty alleviation, donating a total of RMB 20 million during the 13th Five-Year Plan period, with an annual allocation of RMB 4 million for project construction[168]. - The company has donated RMB 1.3 million to assist economically disadvantaged households and provided over 1,700 "Zijin Love Bags" to students in need[169]. - The company has invested RMB 177.16 million in four poverty alleviation projects, helping 31 registered impoverished individuals to escape poverty[171]. - The company aims to enhance its financial services for small and micro enterprises, focusing on inclusive finance and community support initiatives[172]. Governance and Management - The governance structure includes a core leadership by the party committee, strategic decision-making by the board, and operational management by senior executives[37]. - The company has maintained a good financial condition and governance structure, continuously optimizing its asset structure[178]. - The company is focusing on expanding its market presence, as evidenced by the diverse backgrounds of its board members, which include expertise in finance and management[197]. - The company is expected to continue its focus on sustainable growth and community engagement, as reflected in the backgrounds of its leadership team[197]. Operational Efficiency - The cost-to-income ratio was 30.36%, an increase of 0.67 percentage points year-over-year[45]. - The company achieved a significant increase in cash flow from operating activities, with a net cash flow of CNY 13.081 billion, up 30.66% year-over-year[47]. - The company has optimized its business processes to quickly acquire customers through grid marketing, focusing on five key customer segments[118]. Legal and Compliance - As of the end of the reporting period, the company has 155 pending lawsuits involving a total amount of RMB 369 million, with 151 credit-related lawsuits amounting to RMB 321 million[162]. - The company has not proposed a cash profit distribution plan for the reporting period, despite having positive distributable profits[146].