Northeast Securities(SZ:000686)2022-04-14 16:00Financial Performance - Total revenue for 2021 reached ¥7,477,801,881.89, an increase of 13.14% compared to ¥6,609,613,343.83 in 2020[34]. - Net profit attributable to shareholders was ¥1,623,994,253.62, reflecting a growth of 21.80% from ¥1,333,325,683.24 in the previous year[34]. - Operating cash flow for 2021 significantly increased by 85.89% to ¥4,309,580,415.93, compared to ¥2,318,368,435.84 in 2020[34]. - The total assets at the end of 2021 amounted to ¥80,131,868,330.60, a 16.66% increase from ¥68,685,835,383.56 at the end of 2020[34]. - The total liabilities increased by 19.84% to ¥61,443,858,762.29 from ¥51,272,623,429.33 in 2020[34]. - Basic earnings per share rose to ¥0.69, up 21.05% from ¥0.57 in 2020[34]. - The weighted average return on equity improved to 9.37%, compared to 8.28% in the previous year[34]. - The company's net capital at the end of 2021 was ¥13,120,712,498.88, a decrease of 11.57% from ¥14,837,136,549.23 in 2020[43]. - The net profit for the parent company was ¥1,176,156,561.71, down 11.29% from ¥1,325,843,612.81 in 2020[35]. - The total revenue for the parent company in 2021 was ¥3,757,340,165.89, a slight increase of 1.57% from ¥3,699,396,129.72 in 2020[35]. Risk Management - The company emphasizes a comprehensive risk management system to address market, credit, liquidity, and operational risks[3]. - The company has established a scientific risk identification and assessment mechanism to ensure controllable operational risks[5]. - The company encourages investors to maintain awareness of risks associated with forward-looking statements regarding development strategies and future plans[2]. - The company acknowledges various risks, including market, credit, liquidity, reputation, compliance, operational, and money laundering risks, which could impact its operations[139][140][141][142][143][144][145]. - To mitigate risks, the company is enhancing its comprehensive risk management system and adopting prudent strategies to manage market risks effectively[146][147]. - The company has established a comprehensive credit risk management system, utilizing internal credit ratings and various assessment methods to identify and control credit risks[148]. - The company actively monitors liquidity risk through real-time tracking of financing sources and quality liquid assets, ensuring liquidity indicators remain at safe levels[149]. - The company has integrated reputation risk management into its overall risk management framework, implementing systematic monitoring and reporting mechanisms to mitigate negative impacts[150]. - The company has maintained a strong compliance management system, achieving no major legal violations and being included in the "white list" of securities companies[151]. - The company has developed a robust operational risk management framework, including self-assessment, loss databases, and crisis management protocols[152]. Corporate Governance - The company has established a mature corporate governance structure, adhering to relevant laws and regulations to ensure effective operation[156]. - The company has revised multiple governance documents to strengthen its operational framework and compliance[157]. - The company held 3 shareholder meetings, 11 board meetings, and 6 supervisory meetings during the reporting period, demonstrating effective governance operations[159]. - The company disclosed a total of 54 announcements through various channels, ensuring timely and accurate information for investors[160]. - The company has established independent financial management systems, maintaining separate bank accounts and tax registrations, ensuring financial independence[168]. - The company received multiple awards for governance, including the "Excellent Board Award" and "Gold Quality - Corporate Governance Award" in 2021[159]. - The company emphasizes investor relations through various communication channels, including a dedicated investor relations section on its website and participation in investor events[161]. - The company has a complete and independent asset management system, ensuring no asset or fund misuse by the largest shareholder[166]. - The company has implemented a comprehensive corporate culture initiative, aligning its values with industry standards and promoting employee understanding of corporate culture[164]. - The company operates independently from its largest shareholder, with no shared management or financial resources[170]. Business Operations and Strategy - The company has undergone a change in its main business focus from oil and petroleum products to securities services since its listing[13]. - The company aims to focus on small and medium-sized innovative enterprises for investment banking and wealth management services[47]. - The company has established a comprehensive product and service system for asset management, targeting financial institutions and high-net-worth clients[50]. - The company is committed to optimizing its capital structure and enhancing its funding capabilities to support business development[53]. - The company’s wealth management business saw significant growth in high-net-worth and institutional clients, with a continuous increase in the volume of financial products sold, achieving a new high in market share for net income from sold financial products[57]. - The company is enhancing its digital transformation and financial technology capabilities to support its asset management and public fund businesses[94]. - The company plans to enhance its wealth management and quantitative investment capabilities, focusing on digital transformation and international market expansion[131]. - The company aims to strengthen its core business capabilities in wealth management, equity business, and quantitative private equity, while integrating resources for better customer service[133]. - The company plans to improve its fixed income investment business by enhancing research capabilities and maintaining a stable wealth creation model through innovative strategies[136]. - The company is focusing on alternative investments by deepening strategic partnerships and enhancing research capabilities in niche sectors[137]. Shareholder Engagement - The company has a structured plan for shareholder returns from 2021 to 2023, indicating a commitment to returning value to shareholders[173]. - The first extraordinary general meeting of 2021 had an investor participation rate of 44.0511% and approved 11 proposals, including the 2020 annual financial report and the 2021-2023 shareholder return plan[173]. - The 2020 annual general meeting had an investor participation rate of 43.5041% and included discussions on the 2020 board and supervisory reports, as well as the appointment of the 2021 audit institution[173]. - The second extraordinary general meeting of 2021 had an investor participation rate of 43.6870% and focused on amendments to the company's articles of association and management systems[173]. Leadership and Management - The current chairman, Li Fuchun, has been in position since January 15, 2016, and the current president, He Junyan, since October 21, 2015[175]. - The company has a robust leadership team with members recognized for their contributions to the industry and local governance[178]. - The board includes independent directors with academic and legal expertise, enhancing corporate governance and compliance[179]. - The management team emphasizes the importance of innovation and technology in driving future growth[178]. - The company is focused on expanding its market presence and enhancing its financial services through strategic leadership[178]. Financial Position - The company reported a total registered capital of RMB 2,340,452,915 as of December 31, 2021[9]. - The registered capital of the company increased to RMB 1.2 billion after the restructuring in October 1997[22]. - The registered capital was further increased to RMB 1,010,222,500 following the merger with Jilin Trust Investment Company in June 2000[22]. - The company has a 100% ownership stake in Dongzheng Runtong Investment Management Co., Ltd., with a registered capital of RMB 600 million[30]. - The company has a 96% stake in Bohai Futures Co., Ltd., which has a registered capital of RMB 500 million[30]. - The company has a 57.60% stake in Dongfang Fund Management Co., Ltd., with a registered capital of RMB 333.33 million[30]. - The company's net assets attributable to the parent company stood at RMB 18.045 billion[114]. - The company reported a decrease in other equity instrument investments by 82.15% to RMB 10.216 million due to the disposal of certain non-trading equity investments[117]. - The company’s derivative financial assets increased to RMB 12.636 million, compared to zero at the beginning of the year[117]. - The company’s long-term equity investments rose to RMB 839.166 million, up from RMB 760.034 million at the beginning of the year[115].