Zheshang Securities(SH:601878)2021-03-17 16:00Financial Performance - In 2020, the company achieved a total operating income of RMB 10.637 billion, representing a year-on-year increase of 87.94%[9]. - The net profit for 2020 was RMB 1.627 billion, an increase of 68.17% compared to the previous year[9]. - By the end of 2020, total assets exceeded RMB 90 billion, with net assets reaching RMB 19 billion[9]. - The company reported a total revenue of 1.2 billion CNY for the fiscal year 2020, representing a year-over-year increase of 15%[54]. - The company reported a total revenue of 1.5 billion in 2020, reflecting a year-over-year growth of 10%[56]. - The company's operating revenue for 2020 reached ¥10,636,513,832.41, an increase of 87.94% compared to ¥5,659,478,638.09 in 2019[60]. - Net profit attributable to shareholders was ¥1,627,166,025.65, reflecting a growth of 68.17% from ¥967,557,059.43 in the previous year[60]. - The company's total liabilities at the end of 2020 were ¥71,741,242,223.76, a 36.52% increase from ¥52,548,381,570.47 in 2019[60]. - The company achieved operating revenue of 10.637 billion RMB in 2020, an increase of 4.977 billion RMB, representing a growth rate of 87.94%[134]. - The company reported a net cash flow from operating activities of -¥911,593,026.88, a significant decline compared to ¥406,222,689.05 in 2019[60]. Capital and Asset Management - The registered capital of Zheshang Securities increased to CNY 3,614,044,514.00 at the end of the reporting period, up from CNY 3,333,346,474.00 at the end of the previous year, reflecting a growth of approximately 8.4%[16]. - The net capital of the company reached CNY 18,315,126,297.54, compared to CNY 12,511,338,071.20 at the end of the previous year, indicating a significant increase of about 46.5%[16]. - The company holds a total of 99 securities business offices and 22 branches, all of which possess the necessary licenses issued by the China Securities Regulatory Commission[17]. - The company has established 24 business offices and 4 branches, all licensed for securities and futures operations by the CSRC[23]. - The company has established a total of 99 securities business departments by the end of the reporting period[51]. - The company has a diverse distribution of business departments across various provinces, including 2 in Beijing and 2 in Guangdong[51]. - The company has established 22 branch offices across various regions, enhancing its market presence[49][50]. - The company has expanded its business scope to include pricing services and basis trading as of October 2014[26]. - The asset management business reported a total asset management scale of 1,315.46 billion CNY by the end of 2020, remaining stable compared to the previous year, with actively managed assets reaching 839.21 billion CNY, up 10% from the beginning of the year[114]. Strategic Initiatives and Future Plans - The company plans to optimize capital operations through four strategies: capital replenishment, liability optimization, enhanced allocation, and improved investment capabilities[10]. - The company aims to deepen its strategic alliances and explore new models for external development[10]. - The company plans to enhance its digital marketing efforts, allocating an additional 50 million CNY for online advertising campaigns[54]. - The company plans to enhance its wealth management business in 2021 by expanding the range of equity assets and increasing revenue from wealth management[104]. - The company aims to implement refined risk management in its credit business in 2021, focusing on electronic and systematic approaches to manage securities and credit limits[100]. - The company aims to enhance its asset management capabilities in 2021 by focusing on differentiated services and improving product performance, aiming to establish asset management as a core competitive advantage[119]. - The company plans to enhance retail customer service quality and strengthen institutional client service capabilities in 2021[95]. - The company aims to deepen its presence in the Yangtze River Delta region, leveraging its geographical advantages to enhance competitiveness[88]. - The company will implement a "bank + securities" business model to leverage the strengths of both sectors and provide comprehensive financial services to clients[162]. 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[171]. - The company faces various risks, including policy, compliance, liquidity, market, credit, and operational risks, which could impact its business operations[167]. - The company has implemented measures to manage compliance risks by tracking significant regulatory changes and developing corresponding risk response strategies[173]. - The company has strengthened its reputation risk management by enhancing media relations and establishing a 24/7 monitoring mechanism for public sentiment[178]. Corporate Governance and Compliance - The company is committed to maintaining compliance with regulatory requirements and enhancing its corporate governance practices[20]. - The company has established a governance structure that includes a shareholders' meeting, a board of directors, and a supervisory board to ensure compliance with relevant laws and regulations[42]. - The company has established a clear framework for cash dividend distribution, requiring independent directors to provide opinions on proposed plans[185]. - The company emphasizes a stable and sustainable profit distribution policy, prioritizing cash dividends over stock dividends[182]. - The company has committed to enhancing anti-money laundering measures, including improving internal control mechanisms and monitoring suspicious transactions[180]. Shareholder Engagement and Profit Distribution - The independent directors have expressed support for the profit distribution plan, which is pending approval at the annual shareholders' meeting[4]. - The company reported a profit available for distribution to ordinary shareholders, but did not propose a cash profit distribution plan for 2020 due to ongoing non-public issuance of A-shares[189]. - The company plans to complete the non-public issuance of A-shares and will proceed with profit distribution in accordance with relevant laws and regulations after the issuance[189]. - The company actively engages with shareholders, especially minority shareholders, to gather feedback on dividend proposals[184]. Research and Development - Research and development investments increased by 25% to 150 million CNY, focusing on technology enhancements and user experience improvements[55]. - The company plans to enhance its research capabilities and aims to establish a leading research institute with significant market influence within one to two years[131]. - The research business achieved a sixfold increase in commission income compared to the previous year, serving 80 public institutions and 5 insurance institutions[129]. Market Expansion and Product Development - The company is focused on developing new products and technologies to meet evolving market demands and improve operational efficiency[20]. - New product launches included two innovative financial products aimed at retail investors, expected to contribute an additional 200 million CNY in revenue[55]. - The company completed a strategic acquisition of a fintech startup for 300 million CNY, aimed at enhancing digital service offerings[54]. - The company completed a strategic acquisition of a tech startup for 100 million, aimed at enhancing its technological capabilities[56].