2024-03-26 16:00Financial Performance - The company's total revenue for 2023 was approximately CNY 2.96 billion, representing a year-over-year increase of 12.68% compared to CNY 2.62 billion in 2022[32]. - The net profit attributable to shareholders of the parent company for 2023 was CNY 671.32 million, a decrease of 12.51% from CNY 767.28 million in 2022[32]. - The net cash flow from operating activities for 2023 was negative CNY 713.98 million, compared to positive CNY 883.37 million in 2022[32]. - Total assets increased by 17.14% to CNY 87.13 billion in 2023 from CNY 74.38 billion in 2022[33]. - Total liabilities rose by 19.76% to CNY 69.01 billion in 2023 from CNY 57.62 billion in 2022[33]. - The weighted average return on equity decreased to 3.89% in 2023 from 4.62% in 2022, a decline of 0.73 percentage points[34]. - The company's net capital at the end of the reporting period was CNY 14.90 billion, down from CNY 16.36 billion at the end of the previous year[35]. - The liquidity coverage ratio improved to 167.36% in 2023 from 160.06% in 2022[35]. - Non-recurring gains and losses amounted to CNY 77.63 million in 2023, compared to CNY 37.58 million in 2022[39]. - The company reported a basic earnings per share of CNY 0.24 for 2023, down 11.11% from CNY 0.27 in 2022[34]. Business Operations and Strategy - The company’s main business is highly correlated with the domestic macroeconomic environment and capital market trends, which may significantly impact operational performance[5]. - The company’s future strategies will focus on expanding its market presence and enhancing its service offerings in the securities sector[4]. - The company is focused on enhancing customer service through the establishment of new branches[27]. - The company is actively managing its branch network to improve efficiency and reduce costs[28]. - The company is committed to maintaining a strong market presence through strategic branch management[28]. - The company plans to focus on the North Exchange IPO as a key business direction for 2024, aiming to enhance project reserves and industry ranking[59]. - The company plans to enhance bond service quality and expand market share in 2024, focusing on high-quality bond project development[63]. - The company aims to improve its asset management services and enhance its product supply capabilities across various financial sectors[69]. Risk Management - The company emphasizes the importance of risk management due to potential economic and policy changes affecting the capital market[5]. - The company has established a dynamic monitoring mechanism for risk control indicators, ensuring compliance with regulatory requirements for net capital and liquidity indicators[145]. - The risk management department is responsible for evaluating and monitoring the overall risk level of the company, providing independent risk management reports to senior management[139]. - The company has implemented a liquidity risk limit management system, dynamically managing funding usage and establishing a liquidity reserve asset management system[141]. - The company has developed a comprehensive risk management framework, including a board-level risk control committee and a dedicated risk management department[147]. - The company has a credit risk management system in place, utilizing internal credit rating systems and market tracking to assess and manage credit risk[140]. - The company has established an operational risk management system to enhance internal controls and prevent operational failures[142]. - The company has a compliance risk management system that includes monitoring, checks, and training to mitigate legal and regulatory risks[143]. Corporate Governance - The company’s board of directors and management have confirmed the accuracy and completeness of the annual report[2]. - The company has maintained compliance with regulatory requirements, with no violations reported regarding decision-making procedures for external guarantees[4]. - The company adheres to the corporate governance code of the Hong Kong Stock Exchange, meeting the majority of the recommended best practices[150]. - The company has established a governance structure that ensures checks and balances among the shareholders' meeting, board of directors, and supervisory board[150]. - The company held six shareholder meetings during the reporting period, ensuring compliance with legal and regulatory requirements[154]. - The company is focused on compliance and risk control, integrating these aspects into its compensation management system[183]. Shareholder Returns - The company plans to implement a shareholder return plan for the next three years (2024-2026) to enhance shareholder value[175]. - A cash dividend of RMB 1.42 per 10 shares will be distributed, totaling RMB 402,111,789.86, which represents 59.90% of the net profit attributable to ordinary shareholders in the consolidated financial statements[192]. - The total undistributed profit at the end of the fiscal year 2023 amounts to RMB 2,960,489,772.21, which will be carried forward to the next year[189]. - The company maintains a cash dividend policy prioritizing cash distributions when conditions allow, ensuring stability and continuity in profit distribution[187]. Employee and Management - The company reported a total of 3,586 employees, with 2,678 in the parent company and 908 in major subsidiaries[182]. - The company has a diverse professional composition, with 1,882 employees in brokerage services and 496 in investment banking[182]. - The total pre-tax remuneration for all directors, supervisors, and senior management during the reporting period amounted to 17.2625 million yuan[167]. - The performance bonus for senior management is 40% deferred for three years, distributed equally[167]. - The company is committed to enhancing employee welfare, including mandatory social insurance and supplementary medical insurance[184]. - The company emphasizes a multi-dimensional training system to improve professional capabilities in key business areas such as wealth management and financial technology[185]. Market Position and Growth - The company achieved a significant increase in market influence, being recognized as a top trading institution in the bond market and for market innovation in 2023[85]. - The company is exploring new partnerships to enhance distribution channels and expand its customer base[160]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[160]. - A strategic acquisition of a smaller tech firm is anticipated to enhance the company's product offerings and increase market competitiveness[160]. Financial Investments and Acquisitions - The company completed the acquisition of Guolian Fund for 2.226 billion RMB, holding a 75.50% stake[112]. - The company approved the acquisition of 100% equity in Zhongrong Fund during the fourth board meeting on February 7, 2023[169]. - The company launched its first global asset allocation index GCARS and introduced a pension FOF fund, enhancing product diversity in asset management[123]. Research and Development - Total R&D investment amounted to ¥29.94 million, representing 1.01% of total revenue[101]. - Research and development investments have increased by 30%, focusing on advanced technologies and sustainable practices[160].