SINOLINK SECURITIES(SH:600109)2014-03-14 16:00Financial Performance - The company's operating revenue for 2013 was CNY 1,547,030,469.04, representing a year-on-year increase of 0.83% compared to CNY 1,534,328,585.49 in 2012[34]. - The net profit attributable to shareholders for 2013 was CNY 316,911,382.20, which is a 15.49% increase from CNY 274,402,582.61 in 2012[34]. - The basic earnings per share for 2013 decreased by 10.58% to CNY 0.245 from CNY 0.274 in 2012[32]. - The total assets of the company as of December 31, 2013, were CNY 13,673,989,141.35, an increase of 8.34% from CNY 12,621,348,891.41 at the end of 2012[38]. - The company's net cash flow from operating activities for 2013 was negative at CNY -559,079,585.34, compared to CNY -201,986,986.51 in 2012[40]. - The weighted average return on equity for 2013 was 4.85%, down from 8.24% in 2012, a decrease of 3.39 percentage points[32]. - The total liabilities as of December 31, 2013, were CNY 6,908,978,735.98, reflecting a 10.15% increase from CNY 6,272,264,708.76 in 2012[38]. - The company's net assets attributable to shareholders increased by 6.09% to CNY 6,728,274,841.56 at the end of 2013 from CNY 6,341,996,301.57 in 2012[34]. - The company's other comprehensive income for 2013 was CNY 160,331,020.42, a substantial increase compared to CNY 58,698.72 in 2012[38]. - The net profit for the reporting period was CNY 315.73 million, with a significant difference from the cash flow from operating activities, which was CNY -559.08 million due to various factors including margin financing and securities trading[55]. Dividend Distribution - The company plans to distribute cash dividends of RMB 0.8 per 10 shares, totaling RMB 103,525,736.16, which accounts for 32.67% of the net profit attributable to shareholders in 2013[6]. - The company implemented a cash dividend policy, distributing a total of RMB 90,585,019.14, which accounts for 33.01% of the net profit attributable to the parent company for the year 2012[151]. - The proposed cash dividend for 2013 is CNY 0.8 per 10 shares, totaling CNY 103,525,736.16, which represents 32.67% of the net profit attributable to the parent company[156]. - The company has maintained a consistent dividend payout ratio over the past three years, with 2013 at 32.67% compared to 33.01% in 2012 and 43.18% in 2011[159]. - The company aims to maintain a stable and continuous profit distribution policy, with cash dividends making up at least 80% of the total distribution in mature stages without major capital expenditures[153]. Business Operations and Strategy - The company has maintained its main business operations without significant changes since its listing in January 2008, focusing on securities brokerage and investment consulting[24]. - The company has obtained qualifications for various financial services, including margin trading and securities asset management, expanding its operational scope significantly since its listing[25]. - The company has received approval for the sale of financial products, enhancing its service offerings in the financial market[25]. - The company established a subsidiary for alternative investments and signed a strategic cooperation agreement with Tencent to explore internet finance[45]. - The company actively explored interest rate derivatives and obtained qualifications for interest rate swap transactions, contributing to its profitability[72]. - The company aims to enhance its market competitiveness by focusing on differentiated value-added services and expanding its business model across various sectors[122]. - The company plans to strengthen its brokerage business by further segmenting customer groups and actively participating in the internet finance market[124]. - The company intends to consolidate its IPO market scale while enhancing project quality and expanding services in areas like private placements and asset securitization[124]. - The company is committed to diversifying its operations through mergers and acquisitions, overseas market expansion, and focusing on niche business areas[121]. Risk Management - The company has established a comprehensive risk management framework to address operational and management risks, ensuring no significant incidents occurred during the reporting period[134]. - The company has implemented a robust internal control and compliance management system to mitigate operational risks associated with human error and fraud[130]. - The company reported that its securities brokerage business is highly dependent on market conditions, which can lead to revenue volatility due to changes in trading volume and commission rates[131]. - The company faces potential risks from policy and legal changes, which could impact its operations and regulatory compliance[129]. - The company has established a dynamic monitoring system for risk control indicators, which includes automatic alerts when risk thresholds are reached[141]. - The company has a risk control committee and an audit committee to oversee risk management and compliance with regulations[137]. - The company conducted a total of 2 comprehensive stress tests, 25 special stress tests, and 62 sensitivity analyses in 2013 to assess risk management capabilities[142]. Shareholder Structure - The total share capital of the company remains at 1,294,071,702 shares after the non-public issuance of 293,829,578 shares, which will be tradable starting December 23, 2013[190][191]. - The largest shareholder, Changsha Juzhitang (Group) Co., Ltd., holds 21.14% of shares, totaling 273,557,616 shares[199]. - Tsinghua Holdings Co., Ltd. is the second-largest shareholder with a 13.85% stake, amounting to 179,213,588 shares[199]. - Yongjin Investment Holdings Co., Ltd. holds 12.29% of shares, totaling 159,006,212 shares[199]. - The total number of shareholders at the end of the reporting period was 68,527[199]. - The report indicates that there are no pledged or frozen shares among the top shareholders[199]. Financial Instruments and Investments - The company holds a total of 3.86 billion yuan in securities investments, with a report period profit of 165.20 million yuan from these investments[96]. - The company’s financial instrument investment income for 2013 was CNY 300.37 million, an increase from CNY 192.46 million in 2012[74]. - The company invested 306.25 million yuan in new stock subscriptions and directed placements, acquiring 37,578,515 shares, resulting in an investment gain of 1.66 million yuan[100]. - The company reported a loss of 12.88 million yuan from the sale of other listed company shares during the reporting period, with a total of 44,894,854 shares remaining at the end of the period[100]. - The company’s investment in non-listed financial enterprises totaled 137.20 million yuan, with a report period loss of 13.14 million yuan[101]. Compliance and Regulatory Matters - The company adjusted its financial reporting to comply with new regulations, resulting in a reclassification of RMB 232,921,947.32 in loaned funds from "other assets" to a newly established category[149]. - The company’s adjustments in the financial statements did not impact total assets, liabilities, or cash flows, only requiring restatement of comparative period data[148]. - The company’s financial reporting changes were made in accordance with the Ministry of Finance and the China Securities Regulatory Commission's guidelines[148]. - The company recognizes the need for continuous compliance and risk management improvements to adapt to evolving legal requirements and enhance risk oversight[125].