2019-03-29 16:00Financial Performance - The company achieved a net profit of RMB 5,359,763,895.61 for the year 2018, with a distributable profit of RMB 3,751,834,726.93 after statutory reserves[41]. - The cumulative distributable profit at the end of 2018 reached RMB 14,480,534,816.47, after accounting for previous years' undistributed profits[41]. - The company reported a total of RMB 12,519,320,646.17 available for cash distribution to investors after regulatory deductions[41]. - The company's operating revenue for 2018 was ¥16,108,262,271.57, a decrease of 23.69% compared to ¥21,108,534,070.71 in 2017[74]. - The net profit attributable to shareholders of the parent company was ¥5,032,737,702.70, down 45.75% from ¥9,276,520,447.68 in the previous year[74]. - The total assets at the end of 2018 amounted to ¥368,665,874,058.71, a decrease of 3.36% from ¥381,482,539,816.97 at the end of 2017[74]. - The total liabilities decreased by 9.89% to ¥263,916,270,129.20 from ¥292,892,627,415.97 in 2017[74]. - The net assets attributable to shareholders of the listed company increased by 18.39% to ¥103,393,576,924.99 from ¥87,335,937,716.47 in the previous year[74]. - The company reported a significant decline in net profit margin, with net profit down 45.14% to RMB 51.61 billion compared to RMB 94.08 billion in the previous year[198]. Dividend Distribution - A total of RMB 2,475,450,000.00 will be distributed as cash dividends, amounting to RMB 3.00 per 10 shares[41]. - The company’s total share capital is 8,251,500,000 shares, which forms the basis for the dividend distribution calculation[41]. Risk Management - The company faces various risks including policy risks, compliance risks, market risks, credit risks, liquidity risks, and operational risks due to its international expansion strategy[43]. - The company has established a comprehensive risk management system that covers all subsidiaries and business lines, enhancing risk monitoring and response capabilities[111]. - The company will continue to enhance its risk management framework for new business innovations, ensuring risks are controllable and manageable[189]. Business Expansion and Strategy - The international business of Huatai Securities has shown steady growth, with significant contributions to profitability and the establishment of a New York office[49]. - Huatai Securities is actively expanding its market presence and enhancing its digital capabilities to adapt to the evolving financial landscape[45]. - The company aims to create a seamless integration of services between clients and platforms, enhancing the quality of wealth management services[46]. - The company plans to attract more international talent and optimize its managerial incentive systems to enhance organizational vitality and resilience in the market[51]. - Huatai Securities is on a path to becoming a leading investment bank with both local advantages and global influence[49]. Digital Transformation - Huatai Securities is focusing on digital transformation by investing in emerging technologies and continuously upgrading its digital products and platforms to improve customer service experiences[50]. - The company aims to drive wealth management and institutional services through a dual-driven strategy under digital empowerment, which is seen as a core development strategy moving forward[51]. - The group has a strong focus on digital transformation, integrating online and offline resources to improve client acquisition and service efficiency[109]. Wealth Management Services - The wealth management business is primarily driven by commission income and interest income, with significant contributions from securities and futures trading services[103]. - The company provides diversified wealth management services through its "Zhang Le Wealth" mobile app and professional platforms, focusing on securities, futures, options brokerage, and financial product sales[103]. - The mobile platform "Zhang Le Wealth" accounted for 96.78% of all new customer accounts opened, indicating its critical role in customer acquisition[122]. - The average monthly scale of private asset management for Huatai Asset Management is RMB 812.42 billion, ranking third in the industry, while the average monthly scale of private active management is RMB 226.47 billion, ranking fourth[166]. Investment Banking - The investment banking segment includes equity underwriting, bond underwriting, and financial advisory services, with performance driven by advisory fees and underwriting fees[104]. - The total amount of equity underwriting by the company reached RMB 138.47 billion, ranking third in the industry[147]. - The company completed 200 bond issuance transactions in the reporting period, totaling RMB 139.75 billion, contributing significantly to its revenue[146]. - The investment banking business is expected to expand significantly due to the normalization of IPO reviews and the relaxation of refinancing policies, which will increase operational efficiency and revenue[143]. Audit and Compliance - The company has received a standard unqualified audit report from KPMG, ensuring the accuracy of its financial statements[40]. - The company has not experienced any non-operational fund occupation by controlling shareholders or related parties[42]. Client Engagement and Service Efficiency - The company has integrated internal and external resources to enhance customer service and experience, focusing on risk management and compliance[133]. - The group has developed a wealth management work platform to identify client needs and provide automated marketing solutions, enhancing service efficiency[109]. - The company aims to optimize its client service system and enhance its competitive edge in institutional services by building a transaction and product-centered ecosystem[161]. Market Environment - The Shanghai Composite Index fell by 24.59%, the Shenzhen Component Index by 34.42%, and the CSI 300 Index by 25.31% during the reporting period, indicating a challenging market environment[120]. - The average commission rate for stock trading in the securities industry has been declining, prompting a shift from traditional services to comprehensive wealth management[120].