Financial Performance - The company achieved a net profit of RMB 10,466,720,027.50 for the fiscal year ending December 31, 2023, after deducting statutory reserves and risk provisions, leaving a distributable profit of RMB 7,326,704,019.25[4] - A cash dividend of RMB 0.43 per share will be distributed, totaling RMB 3,882,635,481.20, which accounts for 30.45% of the net profit attributable to shareholders for 2023[5] - The company reported a cumulative undistributed profit of RMB 26,560,767,758.75 as of December 31, 2023[4] - The total distributable profit available for cash distribution to investors is RMB 23,685,803,234.10 after excluding fair value changes[4] - In 2023, the group achieved total revenue of RMB 52.260 billion and a net profit attributable to shareholders of RMB 12.751 billion[12] - The total assets of the group reached RMB 905.508 billion, with total equity attributable to shareholders amounting to RMB 179.108 billion[12] - The basic earnings per share for 2023 were RMB 1.35, up 14.41% from RMB 1.18 in 2022[30] - The diluted earnings per share for 2023 were RMB 1.33, an increase of 14.66% compared to RMB 1.16 in 2022[30] - The total liabilities at the end of 2023 were RMB 723,290,957 thousand, which is a 6.57% increase from RMB 678,714,380 thousand in 2022[29] Risk Management - The company faces significant risks from macroeconomic factors, regulatory changes, and market volatility that could adversely affect its operations[6] - Compliance risks arise from potential legal liabilities and regulatory measures due to management or employee misconduct[6] - Market risks include potential asset losses due to fluctuations in interest rates, exchange rates, and commodity prices[6] - The company is exposed to liquidity risks if it cannot obtain sufficient funds to meet its obligations and operational needs[6] - The company has a comprehensive risk management framework to address operational, credit, and reputational risks associated with its business activities[6] - The company emphasizes risk management and compliance as core competencies, adapting to the scale and internationalization of its business[14] - The company has implemented measures to enhance liquidity risk management, including daily monitoring of cash flow and liquidity risk indicators[128] - The company has established a liquidity risk management framework that includes cash flow analysis and daily monitoring through information technology systems to enhance control levels[159] Corporate Governance - The board of directors has ensured the accuracy and completeness of the annual report, with no objections raised by any directors or supervisors[4] - The company emphasizes that forward-looking statements regarding future plans and strategies do not constitute a commitment to investors[5] - The company has improved its corporate governance structure, enhancing the roles of independent directors and ensuring compliance with relevant regulations[195] - The company received recognition for its governance practices, winning awards for best practices in board governance and achieving a 5A rating for its board secretary's performance[196] - The board of directors consists of 5 independent non-executive directors, accounting for over one-third of the board, ensuring independent opinions are communicated effectively[198] - The company has established a diversity policy for the board, considering factors such as gender, age, cultural background, and professional experience[199] Strategic Initiatives - The company is implementing an internationalization strategy, entering markets in the US, UK, Singapore, and Hong Kong, which presents complex regulatory challenges[6] - The company is actively pursuing market expansion and potential mergers and acquisitions to enhance its competitive position[6] - The company is investing in new technologies and product development to improve service offerings and operational efficiency[6] - The company aims to enhance its financial service capabilities by integrating technology into wealth management and institutional services[14] - The company is committed to a dual-driven development strategy focusing on wealth management and institutional services underpinned by technology[14] - The company aims to deepen the integration of technology and business operations, exploring new business models and enhancing the application of AI in the financial sector[14] Compliance and Regulatory Matters - The company has confirmed that there were no non-operational fund occupations by controlling shareholders during the reporting period[5] - The company has not violated any regulatory decision-making procedures regarding external guarantees during the reporting period[5] - The company has not been penalized or publicly reprimanded during the reporting period, maintaining compliance with regulatory requirements[186] - The company has established a robust information technology risk management mechanism, ensuring the stable operation of critical information systems without major incidents during the reporting period[163] Customer and Market Position - The company serves over 21 million customers, with customer account assets nearing RMB 5 trillion[12] - The company has over 21 million customers, with total customer account assets nearing RMB 5 trillion, positioning it among the industry's top players in terms of asset scale and profitability[51] - The company has received numerous awards, including "Best Brokerage App" and "Top 10 Private Equity Investment Institutions" in China, reflecting its strong market presence and service quality[48][49] Financial Technology and Digital Transformation - The company initiated a comprehensive digital transformation in 2019, becoming a leader in the industry with significant investments in technology and digital products, including platforms like "Zhangle Wealth" and FICC Elephant Trading[53] - The digital transformation strategy focuses on integrating technology into core business operations, aiming for platformization, intelligence, and integration[99] - The company is actively exploring AI technology applications to innovate service scenarios and enhance wealth management platform capabilities[67] Awards and Recognition - The company received several awards, including the "2022 Financial Technology Development Award" and "2023 Securities Industry Golden Bull Award," highlighting its innovation in financial technology[46] - The company's MSCI ESG rating has consistently been the highest among domestic securities firms since 2021, achieving a transition from A to AA rating during the reporting period[51] - The company has been recognized as a leading player in international business among Chinese brokers in Hong Kong, enhancing its global brand image[51] Shareholder and Capital Structure - The registered capital at the end of the reporting period was RMB 9,074,663,335, a slight decrease from RMB 9,075,589,027 at the end of the previous year[16] - The company completed the repurchase and cancellation of 925,692 A-shares in September 2023, reducing the registered capital to RMB 907,466.3335 thousand[23] - Following the second extraordinary general meeting, the company agreed to cancel an additional 45,278,495 A-shares, further reducing registered capital to RMB 902,938.484 million[172] - After the cancellations, the share structure consists of 7,310,339,160 A-shares (81% of total shares) and 1,719,045,680 H-shares (19% of total shares)[172] Social Responsibility - The company actively fulfilled its social responsibility with a total investment of RMB 44.5665 million in public welfare advertising and charitable donations in 2023, compared to RMB 42.8289 million in 2022[188] - The company aims to enhance governance levels and fulfill social responsibilities, focusing on rural revitalization and ecological protection[15]
HTSC(06886) - 2023 - 年度业绩