2014-03-25 16:00Financial Performance - The company reported a net profit of 205 million RMB for the year 2013, representing a 33.22% payout ratio of the net profit attributable to shareholders [10]. - The company's operating revenue for 2013 was CNY 4,019,544,554.70, representing a 10.07% increase from CNY 3,651,701,015.91 in 2012 [36]. - Net profit for 2013 decreased by 72.56% to CNY 283,563,626.68, down from CNY 1,033,424,029.57 in 2012 [36]. - The net profit attributable to shareholders was CNY 205,777,245.44, a decline of 79.48% compared to CNY 1,002,968,704.37 in the previous year [36]. - The net profit after deducting non-recurring gains and losses was CNY 554,404,837.46, down 38.86% from CNY 906,804,190.09 in 2012 [36]. - Other comprehensive income decreased by 28.18% to CNY 423,918,608.59 from CNY 590,291,004.44 in 2012 [36]. - The company reported a significant decline in net profit, indicating challenges in maintaining profitability [36]. - The decrease in comprehensive income suggests potential volatility in the company's financial performance [36]. - The increase in operating cash flow may indicate improved operational efficiency despite the drop in net profit [36]. - The financial results highlight the need for strategic adjustments to enhance profitability and shareholder value moving forward [36]. Capital Structure and Shareholder Information - The registered capital of the company is 3.418 billion RMB, with a net capital of 14.091 billion RMB as of December 31, 2013 [15]. - The company plans to distribute a cash dividend of 0.20 RMB per share, totaling 68.36 million RMB, which accounts for 97.35% of the distributable profits [10]. - The cash dividend payout ratio for 2013 is 33.22%, which is a strategic decision to balance shareholder returns and reinvestment in the company [126]. - The cumulative cash dividend over three years (2011-2013) amounts to 1,278,332,000.00 CNY, representing 46.43% of the net profit attributable to shareholders during the same period [128]. - The largest shareholder, China Everbright (Group) Company, holds 33.92% of the shares, totaling 1,159,456,183 shares [153]. - The second-largest shareholder, China Everbright Holdings Company, holds 33.33% of the shares, totaling 1,139,250,000 shares [153]. - The total number of shareholders at the end of the reporting period was 132,236, an increase from 129,055 prior to the report's publication [151]. Business Operations and Expansion - The company has expanded its business scope to include margin trading and the sale of financial products, enhancing its service offerings [15]. - The company has established several subsidiaries, including Everbright Capital with a registered capital of RMB 2 billion and Everbright Futures with RMB 600 million [25]. - The company has expanded its market presence with branches in major cities, including Shenzhen, Ningbo, and Beijing, enhancing its operational capabilities [25]. - The company is actively involved in mergers and acquisitions to strengthen its market position and expand its service offerings [25]. - The company has a total of 151 securities business departments as of the report date, an increase from 148 at the end of the reporting period [26]. - The company has established securities offices in key economic regions, enhancing its market presence and accessibility to clients [28]. - The expansion strategy includes opening new branches in cities like Shenzhen, Nanjing, and Xiamen, which are significant financial hubs [28]. - The company plans to continue expanding its brokerage network, having added 29 new branches during the reporting period [60]. Risk Management and Compliance - The company has identified one major and one important internal control deficiency related to non-financial reporting [9]. - The company emphasizes the importance of risk factors and measures taken to mitigate them in its future development outlook [6]. - The company has established a comprehensive risk management system to address market, credit, operational, liquidity, and reputational risks [113][114][116][117][120]. - The company has initiated a comprehensive risk inspection and internal control review following significant operational risk events in 2013 [116]. - The company is facing seven civil lawsuits related to the "8.16 incident," with a total claim amount of approximately 1.05 million CNY [118]. - The company has successfully completed the risk management and rectification work, allowing it to resume its underwriting business for non-financial corporate debt financing instruments [143]. - The company has maintained a good execution of commitments made by its actual controllers to avoid business competition since its IPO in August 2009 [138]. Investment and Asset Management - The company’s financing and securities lending balance reached CNY 12.1 billion, a growth of 197% year-on-year, capturing a market share of 3.48% [51]. - Total assets under management in the asset management business amounted to CNY 149.9 billion, ranking 7th in the industry [51]. - The asset management business managed a total principal amount of 149.9 billion RMB, ranking 7th in the industry, with a year-on-year revenue increase of 46% to 23.832 million RMB [68]. - The company’s investment activities resulted in a net cash outflow of CNY 3.11 billion, primarily due to investments in fixed assets and subsidiaries [58]. - The company holds significant equity stakes in various listed companies, with total investments amounting to CNY 2,758,563,267.75, reflecting a loss of CNY -700,054,242.76 during the reporting period [97]. Governance and Management - The company has a diverse board with members holding significant positions in various financial institutions and government bodies, enhancing its governance structure [167][168]. - The company is committed to maintaining transparency in executive compensation and governance practices as per regulatory requirements [164]. - The management team has extensive experience in banking and finance, which is expected to contribute positively to the company's strategic direction [167][168]. - The total remuneration for Xu Haoming, the president, during the reporting period was 2.3915 million yuan, with a deferred payment amount of 441,000 yuan [165]. - The company’s senior management performance annual salary must have at least 40% paid in deferred payments, with a minimum deferral period of 3 years [164]. - The company has made adjustments to its compensation policy to attract and retain talent in the securities industry [194]. Legal and Regulatory Issues - The company faced administrative penalties totaling RMB 523 million due to the "8.16 incident," with key executives receiving fines and market bans [140]. - The company anticipates a significant downgrade in regulatory ratings due to administrative penalties from the "8.16 incident," which may impact business operations [122]. - The company has revised its profit distribution policy to enhance transparency and protect minority shareholders' rights, with a focus on cash dividends [124]. - The company has not provided any guarantees to its controlling shareholders or related parties during the reporting period, protecting the interests of all shareholders [138]. Social Responsibility and Community Engagement - The company emphasizes its commitment to social responsibility, aligning with its mission to create value for customers, employees, shareholders, and society [129].