EBSCN(HK:06178)2019-04-24 09:53Financial Performance - Total revenue for 2018 was RMB 13,482.6 million, a decrease of 8.66% compared to RMB 14,761.2 million in 2017[41]. - Net profit attributable to shareholders for 2018 was RMB 103.3 million, down 96.57% from RMB 3,016.5 million in 2017[38]. - Total assets as of December 31, 2018, were RMB 205,779.0 million, a slight decrease of 0.04% from RMB 205,864.4 million in 2017[42]. - Total liabilities increased by 0.76% to RMB 157,021.2 million in 2018 from RMB 155,841.7 million in 2017[39]. - The company's debt-to-asset ratio was 71.29% as of December 31, 2018, up from 69.65% in 2017[44]. - Basic earnings per share for 2018 were RMB 0.02, a significant drop of 96.57% from RMB 0.65 in 2017[38]. - The liquidity coverage ratio improved to 894.79% in 2018 from 233.05% in 2017[40]. - The total equity attributable to shareholders was RMB 47,203.0 million, a decrease of 2.83% from RMB 48,575.9 million in 2017[39]. - In 2018, the company achieved revenue and other income of RMB 13.483 billion, a decrease of 8.66% year-on-year[61]. - The net profit attributable to shareholders was RMB 103 million, down 96.57% year-on-year; excluding specific risk events, the net profit decreased by 55.34%[61]. Corporate Governance - The financial data disclosed in the report is prepared in accordance with International Financial Reporting Standards and audited by Ernst & Young, receiving a standard unqualified audit opinion[4]. - The report was approved by the 13th meeting of the 5th Board of Directors, with all 13 directors present for the vote[4]. - The company has a total of 13 directors, with no objections raised regarding the report from any board members[4]. - The company confirmed that there were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[4]. - The company has no violations of regulatory decision-making procedures for providing guarantees during the reporting period[4]. Business Operations - The company operates under the name "Everbright Securities Co., Ltd." and is a subsidiary of China Everbright Group, which is its largest shareholder[5]. - The company operates in various sectors including securities brokerage, investment consulting, and financial advisory services related to securities trading[13]. - Everbright Securities is a member of multiple exchanges including the Shanghai Stock Exchange and the Shenzhen Stock Exchange, enhancing its market presence[14]. - The company has expanded its market presence through various capital increases and public offerings since its restructuring into a joint-stock company in 2005[24]. - The company has been actively involved in mergers and acquisitions to enhance its market position and service offerings[32]. Market Environment - The global economic environment in 2018 showed signs of slowing growth, with increased uncertainty due to rising trade protectionism and significant fluctuations in commodity prices[48]. - China's GDP exceeded RMB 90 trillion in 2018, with a growth rate of 6.6%[49]. - The securities industry in China achieved operating income of RMB 266.3 billion, a decrease of 14.5% year-on-year, and net profit of RMB 66.6 billion, down 41% year-on-year[52]. - The Shanghai Composite Index fell by 24.59% during the reporting period, while the CSI 300 Index decreased by 25.31%[50]. - The average daily trading volume in the Shanghai and Shenzhen stock markets was RMB 371.1 billion, a year-on-year decrease of 19.5%[50]. Strategic Initiatives - The company is focused on implementing a three-pronged strategic transformation: agility, technology, and ecology, to enhance its competitive edge[54]. - The company aims to strengthen its competitive edge in wealth management and continue to expand its leading positions in bond underwriting, asset management, futures business, and overseas operations[152]. - The company plans to implement a three-pronged strategic transformation focusing on agility, technology, and ecology to build a world-class financial holding group[151]. - The company will enhance its risk management and compliance measures to ensure high-quality development and eliminate potential risks[154]. Risk Management - The company has established a four-level risk management structure, including the board of directors, supervisory board, management, and various risk management departments[155]. - The board of directors is responsible for overall risk management, including approving risk management policies and assessing major risk limits[155]. - The company has implemented a multi-level risk limit system based on its risk appetite, including market risk loss tolerance and specific business limits[158]. - Credit risk is managed through measures such as margin settlement for securities trading and strict monitoring of bond issuers' credit ratings[160]. - The company has established an operational risk management framework to enhance process management and IT system reliability[161]. Social Responsibility - The company invested RMB 20 million in 25 poverty alleviation and public welfare projects in 2018, contributing to a total of approximately RMB 50 million for 50 projects since 2016[185]. - The company helped introduce funds of RMB 4 billion to impoverished areas and provided major illness insurance for nearly 400,000 teachers and students, with a total coverage amount of nearly RMB 22 billion[185]. - The company has established a unique poverty alleviation model represented by "Securities+" and has formed a comprehensive innovative model for poverty alleviation[186]. - The company received multiple awards in 2018, including the "Outstanding Innovation Poverty Alleviation Award" and "Best 'One Company One County' Pairing Assistance Project Award" from the China Securities Association and China Futures Association[197]. - In 2019, the company plans to focus on precise poverty alleviation measures, targeting specific regions such as Xintian County in Hunan Province, while enhancing existing projects for better efficiency[198].