On March 15, Nanhua Futures (603093) recently released its 2020 annual report. During the reporting period, the company achieved an operating income of 9915230244.26 yuan, a year-on-year increase of 3.96%; the net profit attributable to the shareholders of the parent company was 94173413.09 yuan, a year-on-year increase of 18.47%.
During the reporting period, the net cash flow from operating activities was 4983031137.37 yuan, and the total assets by the end of 2020 was 22313912410.32 yuan.
In 2020, the company achieved operating revenue of 9915230244.26 yuan, up 3.96% year on year; operating cost of 9794366803.93 yuan, up 3.96% year on year; net profit attributable to shareholders of parent company of 94173413.09 yuan, up 18.47% year on year; earnings per share of 0.16 yuan, up 8.97% year on year; weighted average return on net assets of 3.83%, up 0.20% year on year.
In 2020, the company’s operating revenue grew steadily, mainly due to the growth of futures brokerage business revenue. In 2020, the company’s futures brokerage business revenue was 449 million yuan, a year-on-year increase of 148 million yuan, an increase of 49.07%. As one of the main businesses of the company, during the reporting period, the company adhered to the advanced service concept and positive business development strategy, and steadily improved the overall brokerage business scale of the company. The average daily equity of futures brokerage clients was 11.321 billion yuan, an increase of 49.18% over the same period last year; the final equity was 14.928 billion yuan, an increase of 99.55% over the same period last year; more than 9000 new futures accounts were opened in the whole year, an increase of 75.38% over the same period last year; and the business scale data were greatly improved.
In 2020, the company’s net profit attributable to the shareholders of the parent company increased by 18.47% year on year, mainly due to the growth of futures brokerage business profit. In 2020, the operating profit of the company’s futures brokerage business was 121 million yuan, an increase of 100 million yuan or 462.39% year on year. As a traditional business, futures brokerage business has significant homogeneity competition characteristics. Through years of transformation and development, the company innovates its business model and improves its comprehensive service ability. On the one hand, we should increase the added value in the homogenization channel, provide personalized and diversified services to customers, and broaden the incremental market; on the other hand, we should improve the service quality of stock customers, so as to enhance customer stickiness and enhance the profitability of brokerage business.
During the period, the investment income was 184513477.90 yuan, up from 159587066.42 yuan in the same period of last year, with a year-on-year increase.
According to the announcement, the total remuneration of directors, supervisors and senior managers during the reporting period was 13.592 million yuan. Luo Xufeng, chairman of the board, received a total pre tax remuneration of 1.605 million yuan from the company, Li Beixin, general manager, 1.6146 million yuan from the company, Wang Li, chief financial officer, 416300 yuan from the company, and Zhong Yiqiang, Secretary of the board of directors, 1023000 yuan from the company.
According to the disclosure of the announcement, the profit distribution plan or the plan of converting the accumulation fund into share capital reviewed by the board of directors in the report period: through audit, the company realized the net profit of 94173413.09 yuan in 2020, withdrawn 10293249.22 yuan from the legal surplus reserve, and withdrawn 13477705.21 yuan from the general risk reserve, plus the undistributed profit of 783836 yuan at the beginning of 2020, As of December 31, 2020, the profit available for shareholders’ distribution is RMB 826399273.20.
According to the measures for the administration of securities issuance and underwriting issued by the CSRC, if a listed company issues securities, if the profit distribution plan and the plan of converting accumulation fund into share capital have not been submitted to the general meeting of shareholders for voting, or the plan has not been implemented though it has been approved by the general meeting of shareholders, it shall issue after the implementation of the plan. If the company implements profit distribution in 2020, the company can not issue non-public shares before completing profit distribution. In view of the fact that the company’s non-public issuance of a shares is in the process of promoting, considering the interests of shareholders and the company’s development and other factors, the company will not carry out profit distribution in 2020, nor will the capital reserve be converted into share capital. The undistributed profits will be used to supplement the capital strength of the company.
After the completion of the non-public offering of a shares, the company plans to distribute profits and other related matters in accordance with the requirements of the regulatory authorities and the articles of association.
According to digbei.com, the main businesses of Nanhua futures are: futures brokerage business, asset management business, futures investment consulting business, securities investment fund consignment business, risk management business, overseas financial service business and public fund business.