Orient Securities(SH:600958)2017-03-30 16:00Dividend Distribution - The company plans to distribute cash dividends of RMB 1.50 per 10 shares, totaling RMB 932,317,801.65, based on a total share capital of 6,215,452,011 shares as of the end of 2016[3]. - The company has a total undistributed profit of RMB 4,939,168,346.15 to be carried forward to the next fiscal year after dividend distribution[3]. Financial Performance - The company's operating revenue for 2016 was CNY 6,876,939,042.20, a decrease of 55.44% compared to CNY 15,434,705,061.27 in 2015[38]. - The net profit attributable to shareholders for 2016 was CNY 2,313,974,857.75, down 68.41% from CNY 7,325,224,517.53 in 2015[38]. - The total assets at the end of 2016 amounted to CNY 212,411,087,389.26, reflecting a 2.17% increase from CNY 207,897,562,477.13 at the end of 2015[38]. - The total liabilities decreased by 0.61% to CNY 171,473,262,039.92 at the end of 2016, compared to CNY 172,521,817,128.20 at the end of 2015[38]. - The basic earnings per share for 2016 was CNY 0.41, a decline of 71.92% from CNY 1.46 in 2015[39]. - The weighted average return on equity for 2016 was 6.25%, down 18.86 percentage points from 25.11% in 2015[39]. Market Conditions and Risks - The company reported a significant reliance on the economic and market conditions in China, which could adversely affect its business performance and financial status[5]. - The company is subject to risks related to market volatility, which could affect the value and returns of its financial assets and investment portfolios[5]. - The company emphasizes the importance of managing risks associated with credit and market fluctuations in its future development strategies[7]. - The company faces intense competition from various financial institutions, which may impact its market position and operational performance[6]. - The company's future plans and strategic developments are subject to market conditions and investor sentiment, highlighting the need for caution[4]. Business Expansion and Qualifications - The company holds various business qualifications, including securities brokerage and margin financing, approved by the China Securities Regulatory Commission[18]. - The company has expanded its business scope to include financial advisory services related to securities trading and investment activities[17]. - The company is authorized to conduct online securities commission business and open-ended fund distribution, enhancing its service offerings[18]. - The company has obtained qualifications for various innovative activities, indicating a commitment to market expansion and new strategies[19]. - The company is involved in the underwriting of short-term financing bonds and mid-term notes, diversifying its revenue streams[19]. - The company has established a wholly-owned subsidiary for asset management, indicating a strategic move towards asset management services[19]. - The company is qualified to provide comprehensive services to insurance institutional investors, expanding its client base[19]. - The company has received multiple licenses for securities and futures business, ensuring compliance and operational capability in various financial markets[19]. Capital and Financing - The registered capital increased to RMB 6,215,452,011 from RMB 5,281,742,921 year-over-year, reflecting a growth of approximately 17.7%[16]. - The net capital rose to RMB 33,890,090,462.99, up from RMB 31,019,279,251.56, indicating an increase of about 9.1%[16]. - The company’s operational funding heavily relies on external financing, which poses risks if unable to secure necessary funds[6]. - The company completed a capital increase of RMB 1 billion to its wholly-owned subsidiary Dongzheng Futures, with a total registered capital now at RMB 1 billion[138]. - A capital increase of RMB 1.5 billion was completed for Dongzheng Capital, raising its registered capital to RMB 4 billion[139]. Risk Management - The company has established a comprehensive risk management system that includes risk identification, assessment, and reporting for innovative business activities[149]. - The company has a capital adequacy mechanism in place, adjusting its business scale and structure based on regulatory risk control indicators and its risk tolerance[150]. - The company implemented a pressure testing mechanism to assess overall risk before expanding business scales or profit distributions, optimizing decision-making[151]. - The company established a dynamic monitoring mechanism for risk control indicators, ensuring accurate measurement and automatic alerts for risk control metrics[149]. - The company maintained compliance with regulatory standards for risk control indicators throughout the reporting period, ensuring a safety margin[152]. Client Base and Revenue Sources - The company serves a diverse range of clients, including large state-owned enterprises, multinational corporations, SMEs, high-net-worth individuals, and retail clients, primarily located in China[196]. - The revenue generated from the company's top five clients accounted for no more than 5% of the group's total operating income in 2016[197]. - The company has no major suppliers due to the nature of its business[198]. Taxation on Dividends - For individual shareholders holding shares for less than or equal to 1 month, the actual tax burden on dividend income is 20%[199]. - For individual shareholders holding shares for more than 1 month but less than or equal to 1 year, the actual tax burden on dividend income is 10%[199]. - For individual shareholders holding shares for more than 1 year, dividend income is exempt from personal income tax[199]. - The company withholds corporate income tax at a rate of 10% on dividends paid to qualified foreign institutional investors (QFII)[200]. - QFII shareholders can apply for tax refunds if they qualify for tax treaty benefits after receiving dividend income[200].