Company Overview - In 2018, the company was listed on the Shanghai Stock Exchange, becoming the 11th domestic "A+H" listed brokerage firm[9]. - The company was established in 2005 with a registered capital of RMB 2.7 billion, where CITIC Securities contributed RMB 1.62 billion (60%) and China Construction Bank contributed RMB 1.08 billion (40%)[23]. - In 2011, the company transformed into a joint-stock company with a registered capital of RMB 6.1 billion[27]. - The company completed its initial public offering of H-shares on December 9, 2016, issuing 1,130,293,500 shares at a price of HKD 6.81 per share, raising significant capital[30]. - The company completed its initial public offering (IPO) of A-shares on June 20, 2018, issuing 400 million shares at a price of RMB 5.42 per share, increasing total shares from 7,246,385,238 to 7,646,385,238[32]. Financial Performance - Total revenue and other income for 2018 was RMB 16,492 million, a slight increase of 0.43% compared to RMB 16,421 million in 2017[51]. - Operating profit decreased by 24.40% to RMB 4,044 million from RMB 5,349 million in 2017[51]. - Net profit attributable to shareholders was RMB 3,087 million, down 23.11% from RMB 4,015 million in 2017[51]. - Total assets as of December 31, 2018, were RMB 195,082 million, a decrease of 5.25% from RMB 205,883 million in 2017[52]. - Total liabilities decreased by 9.06% to RMB 147,219 million from RMB 161,885 million in 2017[52]. - Basic earnings per share for 2018 was RMB 0.37, a decline of 27.45% from RMB 0.51 in 2017[53]. - The weighted average return on equity was 6.78%, down 3.14 percentage points from 9.92% in 2017[53]. - The total equity attributable to shareholders increased by 8.74% to RMB 47,577 million from RMB 43,754 million in 2017[52]. Capital and Funding - The registered capital as of December 31, 2018, was RMB 7,646,385,238, an increase from RMB 7,246,385,238 at the end of 2017, reflecting a growth of approximately 5.5%[15]. - The net capital at the end of the reporting period was RMB 41,030,077,201.74, compared to RMB 37,025,325,451.93 at the end of the previous year, indicating an increase of about 10.8%[15]. - The company plans to distribute a cash dividend of RMB 1.80 per 10 shares (including tax) based on the total share capital as of December 31, 2018[11]. - The company has maintained a cash dividend policy that ensures at least 10% of the distributable profit is allocated for cash dividends annually, provided there are no significant investment plans or cash expenditures[161]. Business Operations - The company achieved a continuous improvement in its investment banking business, expanding its client base significantly[9]. - The company completed the organizational restructuring of its key business lines, enhancing operational efficiency[9]. - The wealth management business underwent internal restructuring to better respond to industry cycles[9]. - The company emphasized strengthening its service capabilities for trading and institutional clients[9]. - The company actively supported private enterprises in overcoming difficulties through market-oriented solutions[9]. - The company has obtained new business qualifications in 2018, including bond business and various financial derivative trading services, expanding its operational capabilities[16]. - The company has recently acquired new business qualifications, including options market-making for cotton and corn on the Zhengzhou Commodity Exchange[18]. Risk Management - Risk compliance management was comprehensively advanced throughout the organization[9]. - The company maintains a strong commitment to compliance and risk management, ensuring the accuracy and completeness of its financial reports[12]. - The company has established a comprehensive risk management framework to address strategic, credit, liquidity, market, operational, IT, legal, compliance, and reputational risks[173]. - The company has implemented a risk management committee to enhance its governance structure[38]. - The company has established a structured approach to profit distribution, ensuring that independent directors provide objective opinions to protect investor interests[162]. Market Position and Competition - The company was recognized as one of the three securities firms rated as Class A AA by the China Securities Regulatory Commission for nine consecutive years[9]. - The company ranked 2nd in the industry for the scale of managed public funds at RMB 39.35 billion[67]. - The company’s brokerage business net income market share was 3.08%, ranking 10th in the industry, with total stock and fund trading volume of RMB 51.7 trillion[83]. - The company anticipates intensified competition in the securities industry due to regulatory changes and the entry of foreign investment firms[108]. Awards and Recognition - The company received multiple awards in 2018, including the "Best Innovative Investment Bank" and "Best TMT Investment Bank" in China[48]. Future Plans - The company plans to enhance its investment banking business and focus on project quality control and risk management in 2019[74]. - The company aims to actively participate in underwriting IPO projects and Pre-IPO in the international market in 2019[74]. - The company plans to strengthen compliance and risk management in its private equity investment business while exploring mergers and acquisitions and restructuring opportunities[106]. - The company aims to enhance risk management capabilities in margin financing and securities lending business in 2019[87].
中信建投证券(06066) - 2018 - 年度财报