Zheshang Securities(SH:601878)2020-03-18 16:00Financial Performance - In 2019, the company achieved an operating income of 5.659 billion yuan, representing a year-on-year growth of 53.17%[9]. - The total profit for the year was 1.289 billion yuan, an increase of 30.04% compared to the previous year[9]. - Net profit reached 968 million yuan, reflecting a year-on-year growth of 31.29%[9]. - The company's operating revenue for 2019 was CNY 5,659,478,638.09, representing a 53.17% increase compared to CNY 3,694,801,371.08 in 2018[61]. - The net profit attributable to shareholders of the parent company for 2019 was CNY 967,557,059.43, up 31.29% from CNY 736,957,357.88 in 2018[61]. - The company's total comprehensive income increased by 100.26% to ¥968,478,595.74 in 2019 from ¥483,609,141.96 in 2018[75]. - The company reported a significant increase in the issuance of new products, with 66 new products launched in 2019, totaling over ¥16 billion in scale[115]. Dividend Policy - The company plans to distribute a cash dividend of 0.90 yuan per 10 shares, totaling approximately 300 million yuan[5]. - For 2019, the cash dividend increased to RMB 0.90 per 10 shares, amounting to RMB 300,001,182.66, which is 31.01% of the net profit attributable to shareholders[183]. - The company aims for a minimum cash dividend ratio of 80% for mature companies without significant capital expenditure plans[180]. - The company's cash dividend distribution is subject to the approval of the board and shareholders, ensuring transparency and communication with minority shareholders[181]. Market Position and Strategy - The company ranked first in both the number of bond underwriting cases and the underwriting scale within Zhejiang Province[9]. - The company aims to enhance its research capabilities, asset allocation, capital operations, customer service, and international development in 2020[10]. - The company is focused on expanding its market presence and enhancing its service offerings through strategic partnerships and business qualifications[19]. - The company plans to enhance retail customer service quality and strengthen institutional client service capabilities in 2020[97]. - The company aims to leverage its extensive network of business departments to drive growth and customer engagement[52]. Risk Management - The company faces significant risks related to macroeconomic conditions and regulatory changes in the capital market[7]. - The company has established a comprehensive risk management system, led by a Chief Risk Officer, to monitor and assess overall risk levels[172]. - The company has strengthened its compliance and risk management team, establishing compliance officers in branches and headquarters, and enhancing risk management capabilities in credit and liquidity risks[174]. - The company identifies several risks including policy, liquidity, market, credit, information technology, operational, and reputational risks that could impact business operations[169]. Asset Management and Investment - The asset management business maintained a total asset management scale of ¥1,395.74 billion by the end of 2019, with a proactive management scale of ¥747.03 billion, representing a year-on-year increase of 9.78%[115]. - The investment business generated an operating income of ¥940 million from bond self-investment, maintaining a top 10% position among similar products for three consecutive years[121]. - The company reported a revenue of ¥3.95 billion from asset management, which is a 50.07% increase year-on-year, and a net profit of ¥84.11 million, reflecting an 11-fold growth[115]. - The company is committed to building a dual-brand wealth management strategy, integrating private and public fund management to enhance product offerings[165]. Operational Expansion - The company has established a total of 101 securities business departments by the end of the reporting period[52]. - The company has diversified its locations, with branches situated in both urban and suburban areas, catering to a wide customer base[55]. - The company continues to expand its network with new branches, such as the one opened in Pingyang in May 2014[56]. - The company has maintained a consistent growth trajectory by opening new branches across various strategic locations in China[68][86]. Compliance and Governance - The company is committed to maintaining compliance with regulatory requirements and enhancing its operational capabilities in the securities industry[19]. - The company's compliance management system was strengthened with the revision of several internal regulations and the establishment of dedicated compliance personnel[88]. - The company has established a commitment to maintain fair pricing in related party transactions, adhering to legal and internal regulations[188]. Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[67]. - The company aims to enhance its core competitiveness through a "5+5+5" development strategy, focusing on core capabilities, advantages, and support[163]. - The company is set to strengthen its international business, aiming to expand its overseas operations and enhance its global market presence[164].