CLS(SZ:002945)2023-03-30 16:00Financial Performance - The company reported a total registered capital of RMB 2,700,000,000 as of December 31, 2022[12]. - The net capital of the company reached RMB 4,139,150,523.11 by the end of 2022[12]. - Total operating revenue for 2022 was CNY 1,397,680,838.67, a slight increase of 0.17% compared to CNY 1,395,355,967.10 in 2021[41]. - Net profit attributable to shareholders decreased by 3.94% to CNY 464,671,259.42 in 2022 from CNY 483,726,211.70 in 2021[41]. - The net profit after deducting non-recurring gains and losses was CNY 430,841,364.59, down 2.46% from CNY 441,694,563.58 in the previous year[41]. - The company's total assets at the end of 2022 were CNY 20,742,779,365.45, reflecting a 0.48% increase from CNY 20,644,120,722.96 at the end of 2021[41]. - The total liabilities decreased slightly by 0.04% to CNY 14,375,020,304.52 from CNY 14,380,397,501.79 in 2021[41]. - Basic earnings per share for 2022 were CNY 0.17, a decrease of 5.56% compared to CNY 0.18 in 2021[41]. - The weighted average return on equity was 7.39%, down 0.54 percentage points from 7.93% in 2021[41]. - The company reported a significant decrease in other comprehensive income, with a net amount of negative CNY 214,800,818.18 in 2022 compared to a positive CNY 5,190,914.94 in 2021, marking a decline of 4,238.01%[41]. Risk Management - The company faces various risks including market risk, credit risk, operational risk, liquidity risk, and reputational risk[3]. - The company is committed to risk prevention and compliance through its functional control line, which includes eight departments dedicated to various support functions[29]. - The company has established a comprehensive risk management system to effectively prevent liquidity risks through various measures[113]. - The company will enhance its risk management framework to address market, credit, liquidity, operational, compliance, and reputational risks[149]. - The company has established a dual credit risk management mechanism to identify and assess credit risks, focusing on credit ratings and contract management[151]. - The liquidity risk management measures include the establishment of an investment decision committee to ensure sufficient liquidity for operations and timely identification of liquidity risks[152]. Corporate Governance - All directors attended the board meeting to review the annual report, ensuring accountability for the report's accuracy[2]. - The company has a structured governance framework, including a board of directors and supervisory board, ensuring operational independence from shareholders[165]. - The governance structure includes a clear delineation of responsibilities among the shareholders' meeting, board of directors, and supervisory board, ensuring effective operation[160]. - The company maintains independence in operations, assets, personnel, and finances, adhering to legal regulations and its articles of association[161]. - The company has established an independent financial accounting system and operates separate bank accounts, with no mixed taxation situations with shareholders[164]. - The company has a dedicated human resources management department, ensuring that senior management does not hold positions in related enterprises outside of their roles in the company[163]. - The company held its annual shareholder meeting on April 22, 2022, with a participation rate of 90.20%, approving multiple key reports and proposals[167]. - The first extraordinary shareholder meeting of 2022 took place on May 16, 2022, with a participation rate of 90.12%, addressing several governance and management proposals[167]. Strategic Development - The company aims to enhance its market presence and operational capabilities through strategic expansion and technological innovation[29]. - The company plans to focus on market expansion and new product development strategies in the upcoming fiscal year[97]. - The strategic focus for 2023 includes building a comprehensive service system centered on wealth management, integrating investment banking, proprietary trading, and asset management[137]. - The company will focus on wealth management, enhancing fintech collaboration with leading internet companies, and investing in the Dolphin Wealth App to build an intelligent advisory system and a comprehensive marketing system[138]. - The company is considering strategic acquisitions to enhance its service offerings, with a budget of 300 million RMB for potential deals[7]. - Future strategies include diversifying product lines to mitigate market risks and enhance revenue streams[10]. Technology and Innovation - The company is investing in new technology development, allocating 100 million RMB towards R&D initiatives[5]. - The company aims to transform into a technology-driven financial firm, focusing on digital transformation across all business areas[55]. - The company acquired Beijing Wenxing Online Technology Co., Ltd. and the Dolphin Stock App, establishing a technology-focused subsidiary to build a future-oriented fintech ecosystem[62]. - The Dolphin Wealth App was upgraded from the Dolphin Stock App, with 10 versions released in 2022, focusing on long-term product refinement and customer experience optimization[62]. - The company is focused on enhancing its user data analytics capabilities to improve service offerings and customer engagement[35]. Market Expansion - The company is expanding its market presence through the establishment of multiple branches in key cities such as Beijing, Shenzhen, and Guangzhou[35]. - Market expansion plans include entering two new regions, which are projected to increase market share by 5%[6]. - The company plans to establish a subsidiary specializing in information technology as part of its strategic expansion[197]. - The company approved the establishment of a Hong Kong subsidiary to enhance its market presence[198]. Financial Investments - The company invested ¥4.60 billion in information technology during the reporting period, representing a year-on-year increase of 32.64%[61]. - The company reported a significant increase in investment income, rising by 288.09% from 45,974,579.29 to 178,423,950.31, attributed to a focus on fixed-income investments[109]. - The company’s alternative investment subsidiary, Huayin Innovation, had an investment scale of CNY 1.257 billion, holding stakes in 12 companies and 1 industry fund[79]. - The company’s private equity subsidiary, Huayin Capital, managed a total of 4 funds with an investment scale of CNY 224 million[80]. Human Resources and Management - The total remuneration for the chairman, Lin Li, is 614,400 CNY, while the CEO, Zhao Weixing, received 7,213,200 CNY[195]. - The company has a performance-based salary system for senior management, with the performance salary being determined based on various assessment criteria[193]. - The company has implemented a deferred payment system for performance salaries, which will be issued after the completion of the assessment work[193]. - The company reported a significant turnover in senior management, with multiple executives resigning for personal reasons, including the Chief Risk Officer and Compliance Director on June 7 and June 8, 2022, respectively[171]. - The company appointed new executives, including Guan Xiaobin as Chief Risk Officer and Peng Xiaojia as Compliance Director on June 8, 2022[172].