Founder Securities(SH:601901)2014-04-15 16:00Financial Performance - The company reported a total revenue of 1.5 billion RMB for the fiscal year, representing a year-over-year increase of 12%[30]. - User data showed an increase in active users to 5 million, up from 4.5 million in the previous year, marking an 11% growth[30]. - The company provided guidance for the next fiscal year, projecting a revenue growth of 15% to reach approximately 1.725 billion RMB[30]. - New product launches are expected to contribute an additional 200 million RMB in revenue, with a focus on innovative technology solutions[30]. - The company reported a net profit margin of 25%, which is an improvement from 22% in the previous year[34]. - The company achieved a net profit attributable to shareholders of RMB 1.106 billion, representing a 96.65% increase compared to the previous year, driven by a 50.28% growth in net commission income and a 130% increase in investment income[75]. - Total operating revenue for 2013 reached RMB 3,441,541,413.44, an increase of 47.60% compared to RMB 2,331,624,078.16 in 2012[46]. - Net profit attributable to shareholders was RMB 1,105,625,249.57, reflecting a 96.65% increase from RMB 562,221,627.30 in the previous year[46]. - The company reported a significant increase in investment income, which reached RMB 705,050,012.94, a 130.00% rise from RMB 306,541,944.25 in 2012[52]. - The company’s comprehensive income totaled CNY 1.23 billion, a 104.37% increase from CNY 601.17 million in the previous year[57]. Capital Structure and Financial Health - The company's registered capital is CNY 6.1 billion, and the net capital (parent company) is CNY 8.9 billion[14]. - The asset-liability ratio increased by 24.56 percentage points to 42.74% in 2013 from 18.18% in 2012[44]. - The total liabilities rose by 57.02% to RMB 20,675,252,699.07, compared to RMB 13,167,275,087.21 in 2012[53]. - The net cash flow from operating activities was negative at RMB -4,144,678,839.72, an improvement from RMB -4,681,499,503.48 in 2012[46]. - The company’s total liabilities amounted to 118.84 billion CNY, excluding client transaction settlement funds of 87.91 billion CNY, with no significant overdue debts reported[102]. - The company’s cash and cash equivalents accounted for 32.80% of total assets, amounting to 12.01 billion RMB[96]. - The company’s net capital as of December 31, 2013, was CNY 8.90 billion, a 1.23% increase from CNY 8.80 billion in 2012[58]. Strategic Initiatives and Growth Plans - The company plans to expand its market presence in Southeast Asia, targeting a 20% increase in market share within the next two years[30]. - Future outlook includes plans for market expansion and potential mergers and acquisitions to strengthen its market position[28]. - The company is actively developing new technologies and products to stay competitive in the financial services sector[28]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[52]. - The company aims to enhance operational performance and transparency in its profit distribution policy in the future[157]. - The company plans to acquire 60% equity in Beijing Zhongqi from several entities for a total cash consideration of 359.715 million yuan, which has been approved by the board and relevant authorities[189]. Risk Management and Compliance - The company has established a risk management framework to address market, credit, liquidity, and operational risks[140]. - The company employs a stress testing mechanism to assess potential losses under extreme market conditions, including economic downturns and significant price fluctuations[143]. - The company has implemented measures to manage operational risks, including enhancing internal control mechanisms and employee ethics training[152]. - The company established a dynamic risk control indicator monitoring mechanism and a net capital replenishment mechanism in compliance with regulatory requirements[178]. - The independent directors confirmed that the company complies with regulations regarding related party transactions and external guarantees[187]. Profit Distribution and Shareholder Returns - The company plans not to distribute cash dividends for 2013 to facilitate the acquisition of 100% equity in Minzu Securities, which may affect the transaction price and structure[157]. - The company has proposed to maintain a sustainable and stable profit distribution policy post-acquisition, ensuring compliance with regulatory capital requirements[157]. - The total available profit for cash distribution to investors after adjustments is CNY 1,637,145,176.52[156]. - The company proposed a cash dividend of 0.37 RMB per 10 shares, totaling 225,700,000 RMB, based on a total share capital of 6,100,000,000 shares[154]. Operational Expansion - The company added 36 new branches in 2013, ranking 13th in the industry for new branch openings, bringing the total to 139 branches across 21 provincial regions[78]. - As of December 31, 2013, the company operated 139 securities branches, with an additional 10 branches under construction, expanding its network to 21 provinces, covering major economic areas[166]. - The company completed the relocation of 7 securities business departments within the same city during the reporting period[173]. Client and Market Engagement - The company’s client asset market share rose to 1.07%, a 10.9% increase from 2012, with the industry ranking improving to 24th[77]. - The number of new clients for the subsidiary Fangzheng Zhongqi increased by 8,324, representing a year-on-year growth of 53.8%[122]. - Fangzheng Zhongqi achieved a transaction volume of CNY 4.6 trillion, up 50.7% year-on-year, with a daily average equity of CNY 440 million, an increase of 86%[122]. Acquisitions and Mergers - The company completed the acquisition of Beijing Zhongqi and initiated the acquisition of Minzu Securities, indicating a strategic expansion[60]. - The company plans to acquire 70.01% equity of Founder East Asia Trust for a total cash consideration of RMB 285,533.98 million, with the company contributing RMB 185,533.98 million for a 45.49% stake[195]. - The acquisition of Founder East Asia Trust is subject to re-evaluation of the asset assessment report, which has expired, potentially affecting the transaction price and structure[195].