东北证券(000686) - 2020 Q4 - 年度财报

Financial Performance - Total revenue for 2020 was CNY 6,609,613,343.83, a decrease of 17.06% compared to 2019[26]. - Net profit attributable to shareholders for 2020 was CNY 1,333,325,683.24, an increase of 32.40% year-over-year[26]. - Basic earnings per share for 2020 was CNY 0.57, up 32.56% from CNY 0.43 in 2019[27]. - The company reported a net profit of CNY 1,325,843,612.81 for the parent company in 2020, a significant increase of 74.61% from 2019[28]. - The net profit excluding non-recurring gains and losses for the parent company was CNY 1,324,329,906.34, an increase of 82.84% year-over-year[28]. - The company's total operating revenue for 2020 was 6.610 billion RMB, a decrease of 17.06% compared to 2019, with net commission income increasing by 24.92% to 1.948 billion RMB[100]. - Investment income rose by 64.46% to 1.925 billion RMB, while fair value changes in income decreased by 54.35% to 502 million RMB[101]. - Total operating expenses decreased by 28.36% to 4.794 billion RMB, with business and management fees accounting for 49.55% of total expenses[103]. - The company experienced a net decrease in cash and cash equivalents of 245.93 million RMB, a 103.51% decline from the previous year[107]. - The net profit for the period reached CNY 1,467,467,840.99, representing a 40.65% increase compared to CNY 1,043,345,906.73 from the previous period, indicating improved company performance[119]. Dividends and Profit Distribution - The company plans to distribute a cash dividend of 1.00 RMB per 10 shares, totaling 234,045,291.50 RMB based on 2,340,452,915 shares as of December 31, 2020[3]. - The net profit attributable to the parent company for 2020 was CNY 1.33 billion, with cumulative undistributed profits at CNY 5.20 billion after the dividend distribution[173]. - The company has maintained a consistent cash dividend policy over the past three years, with the same cash dividend amount of CNY 234.05 million each year[170]. - The company has not made any adjustments to its profit distribution policy during the reporting period[166]. - The company emphasizes investor relations management, ensuring timely and accurate communication with investors[165]. Business Operations and Structure - The company operates in various financial services, including securities brokerage, investment consulting, and asset management, with no changes in main business during the reporting period[9]. - The company has established 141 branches across 68 major cities in 28 provinces, autonomous regions, and municipalities[19]. - The company operates 39 subsidiaries, including 36 regional brokerage subsidiaries, and 102 securities business departments[19]. - The company has a total of 37 securities business departments in Jilin Province, with 9 in Shanghai and 9 in Zhejiang Province[21]. - The company is listed on the Shenzhen Stock Exchange under the stock code 000686[8]. Risk Management - The company emphasizes a comprehensive risk management system to address market, credit, liquidity, and operational risks[7]. - The company has maintained a strong risk management and compliance framework, ensuring stable operations amid market fluctuations[52]. - The company has implemented a comprehensive risk management system, focusing on risk identification, assessment, measurement, response, monitoring, and reporting mechanisms[146]. - The company is actively managing liquidity risk by monitoring financing sources and ensuring that available funds cover future cash needs, maintaining all liquidity indicators in a safe state[149]. - The company has established a reputation risk management framework to proactively identify and respond to potential reputation risks, aiming to minimize negative impacts on its image[149]. Qualifications and Licenses - The company holds various qualifications for securities business, including securities underwriting and sponsorship qualifications approved by the China Securities Regulatory Commission[13]. - The company has qualifications for online trading and open-end fund distribution, enhancing its service offerings in the financial market[13]. - The company is qualified to conduct margin trading and securities lending, which is expected to boost its revenue streams[13]. - The company has obtained qualifications for private investment fund management and alternative investment business, indicating its expansion into diverse financial services[16]. - The company has qualifications for futures brokerage and trading settlement, allowing it to participate in the futures market effectively[16]. Market and Client Focus - The company focuses on providing comprehensive financial services for small and medium-sized enterprises, emphasizing investment banking and wealth management[39]. - The company is actively expanding its institutional client business, leveraging market opportunities to provide comprehensive services[57]. - The company is focusing on wealth management transformation, integrating customer needs into a five-dimensional wealth management framework[56]. - The company aims to enhance its core competitiveness by focusing on small and medium-sized enterprise investment banking and wealth management as its strategic positioning[136]. Compliance and Governance - The company maintains a clear governance structure, ensuring effective operation mechanisms among its decision-making and supervisory bodies[47]. - The company has committed to maintaining transparency and compliance with regulations regarding profit distribution and investor communication[174]. - The company has established a comprehensive related transaction system and has complied with all decision-making procedures for related transactions[198]. - The company has not faced any delisting risks or warnings regarding its stock trading status[185]. Financial Technology and Innovation - The company aims to enhance its competitive edge by accelerating its layout in the financial technology sector[46]. - The company will increase its financial technology investments to support a comprehensive digital transformation[136]. - The company is committed to improving product innovation and design capabilities, particularly in the development of "fixed income plus" products to diversify investment strategies[141]. Audit and Financial Reporting - The company received a standard unqualified audit report for the 2020 financial statements from Zhongjun Accounting Firm[178]. - The domestic accounting firm Zhongjun CPA has been reappointed for the 2020 audit, with a total audit fee of RMB 700,000, which includes internal control audit fees[183]. - The company has not made any changes to its consolidated financial reporting scope compared to the previous year[181]. Strategic Adjustments and Changes - The Shanghai branch was officially closed on November 12, 2020, following a board resolution[131]. - The company established four new branches in Yantai, Yiwu, Xiaoshan, and Guangzhou, completing the necessary licensing during the reporting period[132]. - The company merged and closed three branches in Hebei, Yunnan, and Jiangsu as part of its strategic adjustments[134].