Dividend Distribution - The company plans to distribute a cash dividend of RMB 3.50 per 10 shares (including tax) for the 2018 profit distribution proposal, pending shareholder approval[4]. - The cash dividend per 10 shares for 2018 is proposed to be RMB 3.50, inclusive of tax[169]. - The company plans to distribute cash dividends amounting to RMB 4,240,917,940.00, which represents 45.16% of the net profit attributable to shareholders for 2018[169]. - The company has maintained a cash dividend payout ratio exceeding 30% from 2016 to 2018, aligning with regulatory requirements and its profit distribution policy[167]. - In 2017, the cash dividend distribution was RMB 4.00 per 10 shares, accounting for 42.39% of the net profit attributable to shareholders[168]. - The total undistributed profits carried forward to the next year after the 2018 dividend distribution will be RMB 27,604,217,258.14[169]. - The company will not allocate any statutory reserve for 2018 as the accumulated statutory reserve has reached 50% of the registered capital[169]. - The cash dividends will be paid in RMB to A-share shareholders and in HKD to H-share shareholders, based on the average exchange rate prior to the dividend declaration[170]. - The company has consistently conducted cash dividends annually since its establishment[167]. Financial Performance - Total revenue for 2018 was RMB 51,061 million, a decrease of 10.36% compared to RMB 56,960 million in 2017[47]. - Operating profit for 2018 was RMB 11,734 million, down 24.64% from RMB 15,570 million in 2017[47]. - Net profit attributable to shareholders for 2018 was RMB 9,390 million, a decline of 17.87% from RMB 11,433 million in 2017[47]. - Basic earnings per share for 2018 were RMB 0.77, down 18.09% from RMB 0.94 in 2017[49]. - The weighted average return on equity for 2018 was 6.20%, a decrease of 1.62 percentage points from 7.82% in 2017[49]. - The total assets as of December 31, 2018, reached RMB 653,133 million, an increase of 4.41% from RMB 625,575 million in 2017[48]. - The total liabilities as of December 31, 2018, were RMB 496,301 million, up 5.05% from RMB 472,432 million in 2017[48]. - The total amount of external investments as of December 31, 2018, was RMB 319.72 billion, an increase of RMB 67.86 billion or 26.94% year-on-year, accounting for 57.57% of total assets[124]. - The total amount of issued debt instruments and long-term borrowings increased by RMB 10,284 million or 13.06% year-on-year[135]. Risk Management - The company has established a comprehensive risk management framework to address various operational and compliance risks[10]. - The company emphasizes the importance of effective risk management and internal controls for successful operations, establishing a comprehensive risk management system to monitor and manage financial, operational, compliance, and legal risks[147]. - The risk management structure includes a three-tier system with the board of directors overseeing overall risk management, operational management layers making decisions, and business units being responsible for frontline risk management[148]. - The company established a risk management committee under the board of directors to monitor daily risk management activities and ensure risks are controlled within reasonable limits[149]. - The company’s risk management committee is supported by specialized working groups focusing on market, credit, liquidity, and operational risks, ensuring timely responses to identified issues[149]. - The company has implemented strict risk management standards across various dimensions, including pledge rates and liquidity, to manage credit risk exposure effectively[158]. - The company has maintained good communication with regulatory bodies and shareholders to manage market risk exposure effectively[154]. - The company has established a liquidity adjustment stress testing framework to evaluate and manage potential losses under extreme conditions[153]. Business Operations - The company operates in various sectors including securities brokerage, investment consulting, and asset management, with qualifications approved by the China Securities Regulatory Commission[12][13]. - The company has a total of 12,116,908,400 shares, comprising 9,838,580,700 A-shares and 2,278,327,700 H-shares[11]. - The company is listed on the Shanghai Stock Exchange under the stock code 600030 for A-shares and 6030 for H-shares on the Hong Kong Stock Exchange[16]. - The company has a significant presence in various provinces, with the highest number of business departments located in Zhejiang (64) and Shandong (57)[27]. - The company has been actively expanding its business scope, including qualifications for gold and precious metals spot contract agency and self-operated business in 2014[22]. - The company has established 33 securities branches across various regions including Beijing, Shanghai, Guangdong, and others[141]. Awards and Recognition - The company received multiple awards in 2018, including Best Green Financial Broker and Best Investment Bank, highlighting its strong market position and recognition in the financial sector[30]. - The company was recognized as a top performer in various categories, such as Best Domestic Bond Market Broker and Best Underwriter for Chinese A-shares, indicating its leadership in capital markets[34]. - The company achieved significant accolades in asset management, including being named the Best Broker for Asset Management and receiving multiple awards for its collective asset management plans[33]. - The company was awarded the Excellent Underwriter and Outstanding Market Maker by the National Development Bank, showcasing its capabilities in underwriting and market-making[33]. - The company ranked first in overall regional research and sales in Asia (excluding Australia and Japan), demonstrating its strong research capabilities and market presence[35]. - The company was recognized as a leading institution in the asset securitization market, indicating its expertise in this area[34]. Compliance and Governance - The company has established a comprehensive risk control system to mitigate compliance and operational risks in its service products[93]. - The compliance department provides regulatory advice and supervises the legality of management activities across departments[150]. - The internal audit department is responsible for overseeing the implementation of internal control systems and preventing various risks[150]. - The company has purchased insurance for its directors against legal liabilities arising from their duties, with no claims made against them during the year[177]. - The commitment to avoid competition from the major shareholder, CITIC Group, remains effective and is being fulfilled[187]. Market Position - The company has been included in multiple indices, enhancing its market image and visibility[20]. - The company has been a target stock for both Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect since their respective launches[20]. - The company maintained a strong position in the offshore RMB investment-grade bond and high-yield bond trading, ranking among the top three in commercial banks and brokerages[97]. - The company achieved a total asset custody of RMB 4.1 trillion, with retail customers reaching nearly 8.2 million and institutional clients at 34,000[86]. - The company’s asset management scale as of December 31, 2018, was RMB 1,343.12 billion, with a market share of 10.40%[110]. Investment and Growth Strategy - The company aims to become a globally trusted domestic leader and international first-class investment bank, striving for top rankings in the domestic industry and the Asia-Pacific region[69]. - The company is focused on transforming into wealth management, shifting from a business-centered to a customer-centered approach[64]. - The company plans to enhance its debt financing services and strengthen its coverage of key enterprises and regional clients in 2019[77]. - The company aims to increase its market share in asset securitization, focusing on consumer finance and supply chain finance in 2019[77]. - The company will actively pursue cross-border M&A opportunities to provide comprehensive solutions for domestic and foreign clients[80]. Legal Matters - The company is involved in a dispute with Zhifeng Leather Industry Co., Ltd. regarding a private bond default, claiming a total of RMB 46.09 million in principal and unpaid interest[193]. - The company has initiated arbitration against customer Hao Feng for a total debt of RMB 19.18 million related to margin trading, with a ruling in favor of the company[194]. - The company is pursuing claims against Shanghai Shenghe and Guoneng Commercial Group for a bond repurchase dispute, with the case still pending arbitration[195]. - The company has successfully claimed RMB 406.73 million from Harbin Institute of Technology High-tech Development Co., Ltd. for margin trading defaults, with enforcement proceedings currently ongoing[197]. - The company has won a lawsuit against Jiangsu Overseas Chinese Real Estate Development Co., Ltd. regarding property disputes, with the court confirming the property value at approximately RMB 17.5 million[198]. - The company is seeking RMB 92 million from Shanghai Daole Investment Co., Ltd. for a default in stock pledge repurchase transactions, with the case currently in enforcement proceedings[199]. - The company is pursuing RMB 394.65 million from Shanghai Jinxin Industrial Co., Ltd. for a default in stock pledge repurchase transactions, with arbitration and court proceedings ongoing[200].
中信证券(06030) - 2018 - 年度财报