2019-03-20 16:00Profit Distribution and Financial Performance - The profit distribution plan for 2018 proposes a cash dividend of RMB 2.75 per 10 shares, totaling RMB 2,396,333,673, which accounts for 35.72% of the net profit attributable to shareholders of the parent company[4]. - The company's total revenue for 2018 was CNY 22,718,823,444, a decrease of 4.56% compared to CNY 23,804,132,903 in 2017[31]. - Net profit attributable to shareholders for 2018 was CNY 6,708,116,621, down 32.11% from CNY 9,881,544,722 in the previous year[31]. - Basic earnings per share for 2018 were CNY 1.11, a decrease of 36.94% compared to CNY 1.76 in 2017[32]. - The company achieved operating revenue of 22.719 billion RMB in 2018, a year-on-year decrease of 4.56%[42]. - The company reported a cash dividend of 2.75 RMB per 10 shares, totaling approximately 2.40 billion RMB, which represents 35.72% of the net profit attributable to shareholders for the year 2018[151]. - The cash dividend in 2017 was 4.00 CNY per 10 shares, with a total of 3,485,576,090 CNY, representing 35.27% of the net profit attributable to ordinary shareholders[153]. Risk Management and Internal Controls - The company has established an effective internal control system and dynamic risk control indicators to manage market, credit, liquidity, operational, and reputational risks[7]. - The company emphasizes the importance of risk awareness regarding forward-looking statements and future plans[5]. - The company has established a comprehensive risk management system, emphasizing the importance of risk culture and compliance for sustainable development[131]. - The company established a four-level risk management system, continuously improving it to address market, credit, operational, liquidity, and reputational risks[139]. - The company conducted stress tests for credit risk, with no credit defaults occurring in the bond investment business during 2018[145]. - The company maintained a robust risk management framework, ensuring effective identification and mitigation of potential risks across all business units[138]. - The company has established a reputation risk management mechanism to proactively identify and mitigate potential reputation risks[147]. Financial Position and Capital Structure - The company reported a total share capital of 8,713,940,629 shares as of December 31, 2018[4]. - The registered capital of Guotai Junan Securities Co., Ltd. is RMB 8,713,933,800, unchanged from the previous year[13]. - The net capital decreased to RMB 86,576,140,285 from RMB 96,365,265,819, representing a decline of approximately 10.3%[13]. - The total assets at the end of 2018 amounted to CNY 436,729,079,641, reflecting a 1.18% increase from CNY 431,648,187,078 in 2017[31]. - The total liabilities at the end of 2018 were CNY 303,055,687,860, which is a 1.71% increase from CNY 297,952,963,557 in 2017[31]. - The company's total assets reached 436.729 billion RMB at the end of 2018, an increase of 1.18% from the previous year[47]. - The company reported a significant increase in sell-back financial assets, which rose by 50.61% to CNY 70.56 billion[94]. Business Operations and Market Position - The company has expanded its business scope to include margin trading and securities lending, with relevant licenses obtained in 2012[20]. - The company is listed on both the Shanghai Stock Exchange (A shares) and the Hong Kong Stock Exchange (H shares), with stock codes 601211 and 02611 respectively[24]. - The company has a strong presence in the Hong Kong market, with a major operating address in Wan Chai, Hong Kong[22]. - The company ranked second in the industry for both operating revenue and net profit in 2018, with total assets ranking fourth[47]. - The number of institutional clients grew by 20.06% to approximately 35,000, while personal financial accounts increased by 14.07% to about 12.7 million[49]. - The company maintained a market share of 6.14% in securities brokerage business, an increase of 0.57 percentage points year-on-year, ranking 1st in the industry[65]. Compliance and Governance - The audit report issued by Ernst & Young Huaming confirms the financial report's authenticity, accuracy, and completeness[3]. - The company’s board of directors and management have confirmed the accuracy and completeness of the annual report[2]. - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties[6]. - The company has not violated decision-making procedures in providing guarantees[6]. - The company has no significant litigation or arbitration matters in the current fiscal year[172]. - The company has no major related party transactions that exceed the annual transaction limits set in the framework agreements[176]. Technological Advancements and Innovation - The company has been recognized as an industry leader in technology and innovation, winning four awards in the sixth Securities and Futures Science and Technology Awards[51]. - The company has successfully completed digital transformation in key areas, enhancing its competitive edge in intelligent applications within the industry[128]. - Technological advancements are driving the transformation of business models in the securities industry, focusing on online services and customer relationship management[122]. Strategic Plans and Future Outlook - The company aims to become a comprehensive financial service provider with significant influence, focusing on creating value through financial services, as outlined in its 2019-2021 strategic plan[125]. - In 2019, the company plans to optimize its retail and institutional client service systems, focusing on developing FICC, equity derivatives, private banking, wealth management, and private equity investment[126]. - The company is positioned to leverage opportunities from the capital market's strategic enhancements and the ongoing reforms of the Sci-Tech Innovation Board, while facing challenges from a complex economic environment and intensified competition in the securities industry[123]. Community Engagement and Social Responsibility - The company has established a long-term cooperation mechanism with three national-level poverty-stricken counties in Jiangxi, Sichuan, and Anhui to promote targeted poverty alleviation efforts[200]. - The company focuses on capital market services to support industry assistance, improve financing efficiency, and promote financial innovation[200]. - The company continues to engage in urban-rural pairing assistance, educational support in impoverished areas, and scholarships for underprivileged university students[200].