SWSC(SH:600369)2014-10-24 16:00Financial Performance - Total assets increased by 35.99% year-on-year, reaching CNY 40.79 billion[9] - Total liabilities rose by 25.76% year-on-year, amounting to CNY 23.99 billion[9] - Owner's equity increased by 53.85% year-on-year, totaling CNY 16.81 billion[9] - Operating revenue for the first nine months surged by 107.24% year-on-year, reaching CNY 2.58 billion[9] - Net profit attributable to shareholders increased by 76.23% year-on-year, amounting to CNY 890.64 million[9] - Basic earnings per share rose by 50.00% to CNY 0.33[10] - The weighted average return on net assets increased by 1.43 percentage points to 6.17%[10] - Operating revenue for Q3 2014 reached CNY 1.08 billion, a significant increase of 128% compared to CNY 472 million in the same period last year[44] - Net profit for Q3 2014 was CNY 354 million, up 75% from CNY 202 million in Q3 2013, with net profit attributable to shareholders increasing to CNY 349 million from CNY 201 million[44] - The company achieved a total comprehensive income of CNY 513 million in Q3 2014, compared to CNY 219 million in the same quarter last year, representing a growth of 134%[44] - The company reported a total comprehensive income of ¥1,072,648,444.38 for the first nine months of 2014, compared to ¥512,888,888.99 in the same period last year, an increase of 109.5%[45] Assets and Liabilities - The total long-term equity investment adjustments amounted to -78,940.47 million RMB, reflecting the impact of accounting standard changes[34] - As of September 30, 2014, the total assets of Southwest Securities amounted to CNY 40.79 billion, an increase from CNY 30.00 billion at the beginning of the year, representing a growth of approximately 36.1%[41] - The company's cash and cash equivalents reached CNY 7.45 billion, up from CNY 4.85 billion at the beginning of the year, indicating a growth of about 53.1%[41] - Client deposits increased to CNY 6.61 billion from CNY 4.08 billion, reflecting a rise of approximately 62.0%[41] - The total liabilities of the company were CNY 23.99 billion, compared to CNY 19.07 billion at the beginning of the year, marking an increase of around 25.5%[41] - The equity attributable to shareholders rose to CNY 15.87 billion from CNY 10.82 billion, showing a growth of approximately 46.5%[41] - The total liabilities rose to CNY 23.72 billion, an increase of 25% from CNY 18.95 billion at the beginning of the year[42] - The company's capital reserve increased to CNY 10.74 billion, up from CNY 6.91 billion, reflecting a growth of approximately 55%[42] - The company's total equity increased to CNY 15.66 billion, up from CNY 10.67 billion at the beginning of the year, indicating a growth of approximately 47%[42] Revenue and Income Sources - The company’s margin lending business saw a significant growth of 133.04%, with loans reaching CNY 5.18 billion[15] - Net income from fees and commissions increased by 106.36% year-on-year, totaling CNY 1.28 billion[15] - Net interest income increased to ¥262.87 million, up 121.59% year-over-year, primarily due to increased interest from margin financing and securities lending[17] - Investment income rose to ¥661.56 million, a 77.12% increase, attributed to higher returns from financial products[17] - Investment income for the period was CNY 417 million, a significant increase from CNY 47 million in Q3 2013, reflecting a growth of 786%[44] - The net income from investment banking services increased to ¥710,501,688.35 in the first nine months of 2014, up from ¥155,461,957.32 in the previous year, marking a growth of 356.5%[45] Expenses and Costs - Operating taxes and surcharges increased to ¥141.06 million, up 109.24%, driven by an increase in taxable income[17] - Business and management expenses reached ¥1.09 billion, an 87.76% increase, reflecting higher management costs due to increased operating revenue[17] - The total operating expenses for the first nine months of 2014 were ¥1,221,388,051.86, compared to ¥638,479,057.01 in the same period last year, indicating an increase of 91.1%[45] Shareholder Information - The number of shareholders reached 53,642 by the end of the reporting period[11] - The company distributed a cash dividend of 1.00 RMB per 10 shares for the 2012 fiscal year, totaling 232,255,456.20 RMB[30] - For the 2013 fiscal year, the company distributed a cash dividend of 1.20 RMB per 10 shares, totaling 338,706,547.44 RMB[30] - The cash dividend distribution ratio for 2014 was 83.46% of the cumulative distributable profit, exceeding the 30% target set in the shareholder return plan[31] - The company has committed to a three-year shareholder return plan (2012-2014) with a minimum cash distribution of 30% of the average annual distributable profit[30] Regulatory and Compliance - The company is currently undergoing normal compliance with the lock-up period for 500,000,000 shares issued in a private placement, set to expire on February 24, 2017[31] - The company is unable to disclose the specific impact of the new accounting standards on employee compensation in the third quarter report, with further details to be provided in the annual report[35] - The company plans to disclose the effects of the new accounting standards on long-term equity investments and available-for-sale financial assets in the annual report[35] - The company has maintained compliance with the commitments made regarding the lock-up period for shares, with no trading or transfer of the shares occurring[31] Strategic Initiatives - The company plans to acquire Dunpei Financial Holdings Limited, with the acquisition already approved by relevant authorities[24] - The establishment of Chongqing Xizheng Microfinance Co., Ltd. with a registered capital of $30 million has been completed[26] - Southwest Futures Co., Ltd. received a B-class rating in the 2014 classification evaluation, improving from a C-class rating in 2013[28] - The controlling shareholder, Chongqing Yufu Asset Management Group, is planning to transfer part of its shares, which may lead to a change in the largest shareholder[28] - The company has been approved to conduct pilot projects for private fund comprehensive custody services, indicating a strategic expansion in service offerings[39] - Southwest Securities has received regulatory approval to participate in the Gansu and Wuhan equity trading centers, enhancing its market presence[39] - The company has been included in the pilot program for issuing short-term corporate bonds, which may provide additional funding avenues[39] Cash Flow - The net cash flow from operating activities for the first nine months of 2014 was ¥3,389,321,421.19, a turnaround from a negative cash flow of ¥200,440,115.31 in the previous year[49] - The company reported a net increase in cash and cash equivalents of ¥2,626,902,464.13 for the first nine months of 2014, compared to a decrease of ¥169,178,517.71 in the same period last year[49] - Total cash inflow from operating activities reached CNY 9,245,227,976.09, significantly up from CNY 2,896,915,228.34 year-on-year[51] - Cash outflow from investment activities was CNY 1,742,458,704.68, down from CNY 2,128,267,503.62 in the previous year[51] - Cash flow from financing activities generated a net inflow of CNY 514,242,216.19, compared to CNY 1,769,514,175.39 in the same period last year[51] - The company raised CNY 4,250,000,000.00 from new investments and CNY 3,600,000,000.00 from bond issuance during the reporting period[51] - The net increase in cash and cash equivalents was CNY 2,665,109,830.46, contrasting with a decrease of CNY 606,842,876.41 in the previous year[51] - The ending balance of cash and cash equivalents stood at CNY 8,285,143,187.97, up from CNY 5,648,352,199.92 at the end of the previous year[51] - The company reported a net decrease of CNY 1,470,957,607.39 in cash flow from investment activities, indicating a strategic shift in investment focus[51] - Interest and commission income received increased to CNY 2,141,995,271.44 from CNY 1,151,730,057.08 year-on-year[51] - The company experienced a net increase of CNY 1,122,000,000.00 in borrowed funds, reflecting a stronger financing position[51]