CGS(SH:601881)2017-03-30 16:00Dividend Distribution - The company plans to distribute a cash dividend of RMB 1,571,275,107.34 (including tax), which translates to RMB 1.55 per share based on a total share capital of 10,137,258,757 shares[2]. - The company's profit distribution plan has been approved by the board and is pending approval from the shareholders' meeting[4]. - The total distributable profit for 2016 is RMB 13,717,443,538.77 after statutory reserves and risk provisions[199]. - The company emphasizes a stable and continuous profit distribution policy, prioritizing cash dividends while considering long-term development and shareholder interests[196]. - The company has a policy to distribute at least 10% of the annual distributable profit as cash dividends, barring significant investments or adverse conditions[196]. - The cash dividend distribution proposal has been approved by the board and is pending approval from the shareholders' meeting[200]. - The company has maintained a consistent dividend distribution strategy over the past three years, with cash dividends of RMB 3,130,010,721.86 in 2015 and RMB 1,205,961,401.12 in 2014[198]. - The company’s profit distribution policy is designed to protect the interests of minority investors and ensure compliance with regulatory requirements[200]. Financial Performance - The company's operating revenue for 2016 was CNY 13,239,917,400.53, a decrease of 49.58% compared to CNY 26,259,945,241.09 in 2015[36]. - The net profit attributable to shareholders of the parent company was CNY 5,153,546,221.82, down 47.60% from CNY 9,835,510,426.14 in the previous year[36]. - The net cash flow from operating activities was negative CNY 14,810,065,033.11, compared to positive CNY 10,800,919,401.88 in 2015[36]. - Total assets at the end of 2016 were CNY 245,880,521,017.15, a decrease of 18.22% from CNY 300,655,551,920.15 in 2015[36]. - The total liabilities at the end of 2016 were CNY 187,526,621,348.41, down 22.96% from CNY 243,406,136,533.60 in 2015[36]. - The basic earnings per share for 2016 was CNY 0.54, a decrease of 51.35% from CNY 1.11 in 2015[37]. - The weighted average return on equity for 2016 was 8.97%, down 12.36 percentage points from 21.33% in 2015[37]. - The company's cash and cash equivalents amounted to RMB 69.06 billion, down 32.67% year-on-year, primarily due to a significant reduction in client funds[58]. Risk Management - The company has faced various risks including legal and compliance risks due to regulatory changes, strategic risks from market changes, and operational risks from business model transformations[5]. - The company has implemented risk prevention measures across organizational structure, management mechanisms, and information technology to mitigate market and credit risks[5]. - The company’s risk management department is responsible for assessing and monitoring various business risks, including market, credit, and operational risks[184]. - The company has established a three-tier risk management system, focusing on risk authorization for innovative business types, with comprehensive risk assessments conducted[154]. - The company actively implemented risk management measures, including risk assessment and control processes, to ensure the safe operation of innovative businesses[152]. - The company has a robust internal control mechanism to manage operational risks, including regular evaluations and training programs[173]. - The company has established a liquidity risk monitoring system, ensuring compliance with regulatory liquidity coverage ratio (LCR) and net stable funding ratio (NSFR) requirements[174]. Business Operations - The company operates 360 securities business departments distributed across 31 provinces, autonomous regions, and municipalities in China[32]. - The company has a total of 36 branches, each with a registered capital of RMB 5 million, enhancing its operational reach across various regions[29]. - The company is focused on expanding its market presence through the establishment of new branches and subsidiaries in key regions[29]. - The company is actively transitioning its brokerage business to a comprehensive wealth management model, enhancing its service capabilities and product offerings[70]. - The company aims to enhance its research capabilities and expand services to over 210 institutional clients[77]. - The company has strengthened its IT infrastructure and risk management systems, achieving significant improvements in operational efficiency and risk management capabilities[66]. Market Position - The company's net income from brokerage services ranked 2nd in the industry with a market share of 5.36%[60]. - The total trading volume of stocks and funds ranked 3rd in the industry with a market share of 4.84%[60]. - The company's financing and securities lending balance ranked 5th in the industry with a market share of 5.63%[60]. - The company has participated in the top ten IPO projects in China's securities market, with a cumulative underwriting amount of RMB 254.368 billion from 105 equity financing projects, ranking 8th in the industry[64]. - The company has underwritten 415 bond financing projects with a total amount of RMB 570.398 billion, also ranking 8th in the industry[64]. Capital Structure - The registered capital of China Galaxy Securities is RMB 9,537,258,757, unchanged from the previous year[15]. - The net capital decreased to RMB 53,108,748,426.14 from RMB 65,221,481,357.26, representing a decline of approximately 18.5%[15]. - The company maintains a robust capital structure with significant investments in its subsidiaries, supporting future growth initiatives[27]. - The company has a strong presence in major cities, with 17 departments in both Beijing and Shanxi[32]. - The company has established branches in various regions, including Gansu, Ningxia, Guizhou, and Guangxi, all with similar capital structure[31]. Regulatory Compliance - The company does not have any non-operational fund occupation by controlling shareholders or related parties[5]. - The company has not violated any decision-making procedures regarding external guarantees[5]. - The company’s financial report adheres to both Chinese accounting standards and international financial reporting standards[4]. - The company has established a structured governance framework in compliance with relevant laws and regulations, enhancing operational mechanisms for the shareholders' meeting, board of directors, supervisory board, and management[26]. Future Outlook - Future outlook includes strategic acquisitions and partnerships to bolster market position and drive revenue growth[29]. - The company plans to enhance its active management capabilities and optimize its product structure in response to regulatory changes in 2017[105]. - The company plans to accelerate the transformation towards a comprehensive wealth management business model in response to changing market conditions[79]. - The company aims to enhance risk control and project quality while expanding its traditional underwriting business and exploring innovative financing opportunities[94].