CGS(SH:601881)2023-03-29 16:00Financial Performance - The company's operating revenue for 2022 was approximately CNY 33.64 billion, a decrease of 6.51% compared to 2021[43]. - The net profit attributable to shareholders for 2022 was approximately CNY 7.76 billion, down 25.60% from the previous year[43]. - The net cash flow from operating activities decreased by 46.05% to approximately CNY 30.80 billion in 2022[43]. - Total assets at the end of 2022 reached approximately CNY 625.22 billion, an increase of 11.62% year-on-year[45]. - Total liabilities increased by 13.32% to approximately CNY 522.60 billion at the end of 2022[45]. - Basic earnings per share for 2022 were CNY 0.70, a decrease of 27.84% compared to 2021[46]. - The weighted average return on equity for 2022 was 8.21%, down 4.08 percentage points from the previous year[46]. - The company's net capital ratio to liabilities was 22.14% at the end of 2022, down from 26.68% the previous year[48]. - The company reported a total of CNY 73.84 million in non-recurring gains for 2022[50]. - In 2022, the company achieved a total revenue of RMB 33.642 billion and a net profit of RMB 7.761 billion, with total assets reaching RMB 625.216 billion and net assets of RMB 102.613 billion[53]. Dividends and Capital Structure - The company plans to distribute cash dividends totaling RMB 2,331,574,325.48, which translates to RMB 2.30 per share based on the total share capital of 10,137,279,676 shares as of the end of 2022[3]. - The registered capital of China Galaxy Securities Co., Ltd. is CNY 10,137,258,757.00, unchanged from the previous year[16]. - The company reported a registered capital increase to RMB 101.37 billion after the issuance of 600 million A shares in January 2017[31]. - The company completed the issuance of RMB 78 billion A-share convertible bonds in March 2022, with conversion starting on September 30, 2022[31]. Risk Management - The company faces significant risks including market volatility, legal compliance, and operational risks due to changes in business models and technologies[5]. - The company is committed to optimizing risk management across organizational structure, management mechanisms, and information technology to mitigate market and credit risks[5]. - The company has established a risk management framework for new business operations, including risk identification, analysis, and compliance with risk control conditions[135]. - The company emphasizes comprehensive risk assessment before launching new business initiatives, involving multiple departments and external experts[134]. - The company has implemented a comprehensive risk management framework, focusing on market, credit, liquidity, and operational risks to ensure safe business operations[144]. Business Operations and Services - The company is involved in a wide range of financial services, including fund distribution, futures intermediary services, and financial product sales[17]. - The company has various business qualifications, including securities brokerage, investment consulting, and margin financing[17]. - China Galaxy Securities is a member of both the Shanghai Stock Exchange and the Shenzhen Stock Exchange, allowing it to engage in various trading activities[18]. - The company has established qualifications for various innovative financial services, including internet securities business and private fund management[20]. - The company has expanded its market presence through strategic partnerships and acquisitions, enhancing its competitive position in the financial services sector[34]. Client and Market Engagement - The company maintained a market share of 4.62% in net income from securities brokerage, ranking 5th in the industry, with a total customer base exceeding 14 million by the end of 2022[56]. - The company’s financial product sales reached RMB 92.545 billion in 2022, with the total value of financial products sold increasing to RMB 193.331 billion, a growth of 4.74% compared to the end of 2021[59]. - The company’s margin financing and securities lending balance was RMB 79.3 billion at the end of 2022, with a market share of 5.15%, showing an increase of 0.03% from the previous year[62]. - The company’s investment advisors increased to 3,588, a growth of 7.75% from the previous year, while the number of serviced clients reached 251,900, an increase of 13.98%[58]. - The company’s high-net-worth clients had a signed net asset value of RMB 55.8 billion by the end of 2022[56]. Governance and Compliance - The company has established a complete governance structure, including a board of directors, supervisory board, and executive committee, to ensure clear responsibilities and compliance with regulations[174]. - The audit committee supervises the company's major financial decisions and the execution of the annual budget[165]. - The company has a clear governance structure, ensuring that all shareholders can exercise their rights equally during meetings[184]. - The company has not engaged in any significant business competition with its controlling shareholders, ensuring a clear operational focus[183]. - The company is committed to maintaining independence in all aspects of its operations, including finance, personnel, and business activities[182]. Strategic Development - The company plans to implement a new strategic development plan for 2023-2025, transitioning to a "five-in-one" business model[93]. - The company aims to transition into a modern investment bank by 2025, focusing on balanced business development and risk management[140]. - The company anticipates a stable recovery in the capital market, driven by coordinated macroeconomic policies and the implementation of a multi-tiered capital market system[137]. - The company will focus on creating a comprehensive financial service model, integrating various business lines and enhancing operational efficiency[140]. Technology and Innovation - The company has a strong focus on innovation, with ongoing investments in new technologies and product development to drive future growth[34]. - The company is committed to sustainable development, aligning with the "14th Five-Year Plan" to promote green investment and financing initiatives[142]. - The company is investing $50 million in research and development for new technologies aimed at enhancing user experience[192]. - The company is investing heavily in R&D, with a budget increase of 30% to enhance technology and product offerings[196]. International Expansion - The company expanded its international business network through acquisitions, covering regions including Singapore, Malaysia, and Thailand[97]. - Market expansion plans include entering three new international markets by the end of the year, projected to increase user base by 15%[192]. - The company is considering strategic acquisitions to bolster its market position, with a budget of $100 million allocated for potential deals[192].