Founder Securities(SH:601901)2016-10-27 16:00Financial Performance - Operating revenue for the first nine months of 2016 was CNY 6.24 billion, a decrease of 21.95% from CNY 7.99 billion in the same period of 2015[7]. - Net profit attributable to shareholders decreased by 32.13% to CNY 2.67 billion for the first nine months of 2016, down from CNY 3.93 billion in 2015[7]. - Basic earnings per share dropped by 33.33% to CNY 0.32 from CNY 0.48 year-on-year[7]. - The company reported a decrease in net profit after deducting non-recurring gains and losses by 33.31% to CNY 2.66 billion compared to CNY 3.98 billion in the previous year[7]. - Net profit for the period was CNY 2.66 billion, down from CNY 3.93 billion in the same period last year, reflecting a decline of approximately 32.2%[40]. - Operating income for the first nine months was CNY 6.24 billion, a decrease of 21.9% compared to CNY 7.99 billion in the previous year[40]. - The net income from commission and fee-based services fell to CNY 3.30 billion, down 40.1% from CNY 5.50 billion year-on-year[40]. - The net profit margin for the first nine months of 2016 was approximately 51.3%, compared to 52.8% in the same period last year[44]. Cash Flow and Assets - Total assets decreased by 5.59% to CNY 145.80 billion as of September 30, 2016, compared to CNY 154.43 billion at the end of 2015[7]. - Net cash flow from operating activities was negative CNY 18.21 billion for the first nine months of 2016, compared to negative CNY 6.75 billion in the same period of 2015[7]. - Cash flow from operating activities was negative at -¥18,205,269,481.47, significantly impacted by reduced trading volume and increased investment scale[14]. - The company's cash and cash equivalents decreased to ¥32.62 billion from ¥47.77 billion, representing a decline of about 31.7%[33]. - The total cash inflow from operating activities for the first nine months of 2016 was ¥25,964,031,821.07, down 26.9% from ¥35,541,830,425.58 in the same period last year[46]. - The cash and cash equivalents at the end of the reporting period were 25,859,681,257.70 RMB, down from 49,794,807,412.17 RMB in the previous year[51]. - The total cash inflow from financing activities was 12,248,730,000.00 RMB, while the cash outflow was 12,580,143,213.51 RMB, resulting in a net cash flow of -331,413,213.51 RMB[50]. Shareholder Information - The number of shareholders reached 297,817 by the end of the reporting period[10]. - The largest shareholder, Peking University Founder Group, held 27.75% of the shares, with 2.28 billion shares pledged[10]. Investment and Income - Net income from commission and fee income decreased by 40.02% to CNY 3.30 billion due to reduced trading volume in a volatile market[13]. - Net income from brokerage business decreased by 47.71% to ¥2,689,364,237.26 due to reduced trading volume amid market volatility[14]. - Investment banking fees increased by 127.02% to ¥410,168,465.12 primarily due to the consolidation of Minzu Securities[14]. - Investment income rose by 101.82% to ¥2,766,182,168.08 due to gains from the disposal of available-for-sale financial assets[14]. - The investment income for the period was CNY 2.77 billion, significantly higher than CNY 1.37 billion in the previous year, marking an increase of approximately 102.5%[40]. Regulatory and Compliance - The company has not yet received the final decision from the China Securities Regulatory Commission regarding ongoing investigations[18]. - The company is actively addressing regulatory requirements and has implemented corrective measures as mandated by the Beijing Securities Regulatory Bureau[19]. - The company has committed to resolving any potential competition issues with its controlled enterprises within five years after the completion of a major asset restructuring involving the acquisition of 100% equity of Minzu Securities[25]. Other Financial Metrics - The weighted average return on equity decreased by 4.62 percentage points to 7.49% from 12.11% in the previous year[7]. - The company reported a significant increase in financial assets measured at fair value, rising from CNY 19.11 billion to CNY 23.04 billion, an increase of about 20.5%[36]. - The company's total liabilities decreased from CNY 87.83 billion to CNY 78.92 billion, a reduction of approximately 10.1%[39]. - The equity attributable to shareholders increased from CNY 33.85 billion to CNY 34.94 billion, reflecting a growth of about 3.2%[39].