NSC(SH:601990)2022-04-26 16:00Financial Performance - The company reported a total revenue of 1.84 billion, reflecting a year-over-year increase of 12%[112]. - The company achieved operating revenue of 2.741 billion RMB, a year-on-year increase of 15.91%[53]. - The net profit attributable to shareholders reached 977 million RMB, reflecting a growth of 20.71% compared to the previous year[53]. - The company's operating revenue for 2021 was ¥2,741,633,842.89, representing a 15.91% increase compared to ¥2,365,296,802.01 in 2020[29]. - The net profit attributable to shareholders of the parent company for 2021 was ¥977,274,472.85, a 20.71% increase from ¥809,594,147.08 in 2020[29]. - The total assets at the end of 2021 reached ¥51,714,086,701.24, marking a 16.03% increase from ¥44,569,613,317.44 at the end of 2020[29]. - The total liabilities increased by 21.82% to ¥34,919,849,621.33 in 2021 from ¥28,665,166,023.05 in 2020[29]. - The basic earnings per share for 2021 was ¥0.27, up 12.50% from ¥0.24 in 2020[30]. - The weighted average return on equity for 2021 was 6.06%, a decrease of 0.68 percentage points from 6.74% in 2020[30]. - The company’s equity attributable to shareholders increased by 5.59% to CNY 16.79 billion from CNY 15.90 billion year-over-year[39]. Capital Structure and Shareholder Returns - The proposed profit distribution plan for 2021 includes a cash dividend of 1.00 RMB per 10 shares, totaling approximately 368.64 million RMB, which accounts for 37.72% of the net profit attributable to shareholders[3]. - The company plans to distribute a cash dividend of 1.00 yuan (including tax) for every 10 shares, totaling 368,636,103.40 yuan, which represents 37.72% of the net profit attributable to shareholders for 2021[145]. - The company has a three-year shareholder return plan approved by the shareholders' meeting, which remains unchanged[145]. - The cash dividend policy stipulates that at least 20% of the distributable profit should be distributed in cash when the company has positive net profit and retained earnings[144]. - The company emphasizes a stable and proactive profit distribution policy, prioritizing cash dividends over stock dividends[144]. - The board of directors must consider the opinions of independent directors and communicate with minority shareholders before adjusting the profit distribution policy[143]. Business Operations and Strategy - The company’s business scope includes securities brokerage, investment consulting, financial advisory related to securities transactions, underwriting, proprietary trading, margin financing, and asset management[11]. - The company has established a strong presence in the market with various qualifications for financial product distribution and asset management services[12]. - The company has been actively involved in the development of new financial services, including private fund custody and military-related consulting services[13]. - The company is focusing on technology integration in financial services, enhancing operational efficiency and customer service through financial technology[41]. - The company aims to enhance its wealth management business following the acquisition of public fund investment advisory qualifications, potentially opening new growth avenues[51]. - The company plans to enhance its wealth management and comprehensive financial services, aiming to become a leading modern investment bank in China[81]. Risk Management and Compliance - The company emphasizes compliance and risk management in its brokerage operations, enhancing supervision to prevent business risks[162]. - The company has established a comprehensive risk management system to address various risks, including policy, market, credit, liquidity, operational, information technology, and reputational risks[86]. - The company is committed to enhancing compliance and risk control effectiveness by implementing a robust risk management culture and ensuring adherence to regulatory requirements[84]. - The company has effectively managed its credit risk, primarily arising from margin financing, stock pledge repurchase transactions, and fixed-income self-investment businesses[88]. - The company has maintained a strict control over market risk exposure, utilizing a multi-level risk limit system and employing Value at Risk (VaR) as a primary indicator for market risk management[88]. Corporate Governance - The company has a governance structure that includes a board of directors with 15 members, of which 5 are independent directors, ensuring compliance with legal and regulatory requirements[100]. - The board of directors has established four specialized committees, including a compensation and nomination committee, an audit committee, and a compliance and risk management committee, with independent directors holding a majority in these committees[101]. - The company has implemented a comprehensive account management system, including various management guidelines and procedures to ensure compliance and risk management[96]. - The company has a clear commitment to maintaining operational independence from its controlling shareholders, as evidenced by its governance practices[102]. - The company has established a robust internal audit and compliance monitoring system to oversee the implementation of its account management policies[96]. Market Expansion and Client Base - The company has expanded its client base, with the number of brokerage clients increasing by 11.14% year-on-year and the scale of entrusted assets growing by 20.38%[45]. - The company launched nearly 4,000 financial products for sale, with revenue from selling financial products reaching 48.25 million yuan, a significant increase of 100.81% year-on-year[45]. - The company is exploring market expansion opportunities in Southeast Asia, targeting a 25% growth in that region by 2023[115]. - The company plans to launch three new financial products in Q2 2022, aiming to capture a 10% market share in the new segments[115]. Social Responsibility and Community Engagement - The company donated a total of 1.5 million yuan to support project assistance for families of workers in difficulty and 1 million yuan for rural revitalization efforts in Ningxia[163]. - The company actively participated in community support during the COVID-19 outbreak, sending 17 batches of volunteers to assist in various districts[164]. - The company received multiple awards for its contributions to poverty alleviation and corporate social responsibility, including recognition as a top charity organization[163]. - The company invested in the construction of a kindergarten project in Guizhou to improve rural education facilities[164]. Financial Technology and Innovation - The company has increased its investment in financial technology to improve customer service and operational efficiency, aiming for a competitive advantage[80]. - The company is leveraging financial technology, including big data and artificial intelligence, to enhance business development and operational management, with a focus on increasing user numbers for its financial technology products like the Jinluopan APP[83].